The Birmingham age-herald., 1914-07-04
Will Go Into Effect July 1. Result of Crows Decision
 in Recent Litigation
OPEN LETTER SENT
 TO THE COMMISSION
Company Explains Its Position in the Muddle-ActiOn Will Mean Big Increase in Water Bills of
 Many Consumers

Increasing the water bills of many citi zens on scale varying from 25 to prob- ably POO per cent, the Birmingham Water works company yesterday announced that the old water rates inforce prior to 1912 would again go into effect July l, 1914
 The restoration of the old rates is result of the decision of Judge E. c, Crow of the circuit court, handed down recently in which he diSected the water works company to desist its use of meter rates or any of the rates set out In the ordinance known as SIC. which was an nulled sometime ago by referendum election.
 Ordinance SIC lowered the water rates in Birmingham in many particulars. It was passed by the city commissioners after long negotiations with the. water works company. Owing to features which the people considered objectionable. how ever chief of which was the long term contract between the city and the water company, which was part of the ordi- nance, the referendum election which was called resulted in an overwhelming defeat of the ordinance and the com missioners soon after passed another or dinance annulling SIC.
 Did Not Accept Result
 The waterworks company, however. de- clined to accept the result of the ref erendum election and since that time they have been charging rates for water as set out in this ordinance. In the re- cent quo warranto suit before Judge Crow against the waterworks company seeking to declare void it's franchise, one of the grounds set out in the pleadings -G +t. -.4. ..t.a company for the past two years had been charging water rates as set out in ordi- nance T-C, which had been annulled by the referendum.
 Therefore in rendering his decision, Judge Crow passed upon this part of the plaintiffs pleadings and held that the referendum was legal and therefore or dered the waterworks company to stop using the rates of ordinance SIC. Tha waterworks company, therefore. issues a statement saying that it has decided to have no more litigation on this point. that Judge Crows decision will be ac- cepted, the SIC water rates will be -aban- doned and the old rates will be restored
 In long statement to the city com missioners yesterday, the water com- pany requests the city to pay the differ ence in the water bills of the past two years between the rates charged and the rates which Judge Crow holds should have been charged and incidentally an ex- planation of the companys position is given. The statement to the city com mission is as follows:
 Letter to Commission
 'To the Board of Commissioners of the
 City of Birmingham:
 "Gentlemen: In the decision handed down on last Saturday by Hon. E. c. Crow, judge of the circuit court, in the case of state ex rel. Weatherly vs. the Birmingham Waterworks company, it was ordered that the Birmingham Waterworks company desist from further charging at meter rates in old Birmingham after June 30. 1914, for water for dwellings.
 While you gentlemen doubtless com- prehend the full force and meaning of this decision, it would, nevertheless appear proper and desirable that the water com pany should advise you what 1t under stands to be the effect of the decision and of the course which it seems necessary for it to pursue in view of the decision
 'The contract between the Birmingham Waterworks company and the city of Bir- mingham, adopted in July. 1912, and em- bodied in the ordinance known as ordi- nance 97-C. modified and reduced the prices to be charged by the water com pany for water furnished both to the peo- pie of Birmingham and to the city itself.
 
 dinance 97-C, the board of commissioners of the city of Birmingham passed an or dinance seeking formally to annul and set aside ordinance g7-C. The Birmingham Waterworks company, however was ad- vised that the contract embraced in or dinance G-C was not properly subject to a referendum election. and therefore was not affected by the referendum election which was held.
 New Rates Put in Force
 Tt was the desire of the Birmingham Waterworks company to preserve what ever legal rights it might have under or dinance SIC pending an authoritative ad- judication upon the effect of the referen- dunn election; and at the same time it was the desire of the Birmingham Water works company that no hardships should be inflicted upon or injustice done to any of Its patrons pending a final decision upon the validity of ordinance 97-C. The Birmingham Waterworks company has therefore accepted payments made by the city for fire hydrants and water fur nished the city as being on account and without prejudice to the rights of either party pending a decision on the validity Of the ordinance. and the Birmingham Waterworks company has advised indi- vidual consumers of water in old Birming- ham where meters were installed upon their premises pending an adjudication of the validity of ordinance 6-C, that If the payments made by consumers on a meter basis pending a decision of the right of the water company to charge upon a meter basis exceeded what the consumers would have been required to pay under the contract of 18SS and if the court should decide that ordinance 97-C had been annulled by the referendum cleo tion. then the water company would re- fund to such consumers the excess that they had paid on meter basis above what they would have paid under the con- tract of 1888. On the other hand, it has al- ways been the intention of the water con- pany that as to individual consumers other than the city, whose water bills were less under the terms of ordinance S-C than they would have been under the old contract that no additional pay. ment should be asked of such individua consumers even should ordinance 97-C be declared invalid. In other words, ir seeking to preserve it's rights under or dinance SIC. while the validity of thai ordinance was being tested. the water company has adopted policy by which if l had everything to lose and nothing tf gain. and by which no loss could possibl, be inflicted upon any consumers of water l in the city of Birmingham
 -- Big Reduction in. Bills @ | "The bills of individual consumers of water in Greater Birmin gham made out in accordance with ordinance 97-C between the first of July. 1912. and | the first of July, 1914, have aggregated been under the old contracts. With tho | { I1n< of hn