The Birmingham age-herald., 1914-05-23
POWER CONTRACT IS FINALLY SIGNED BY LOCAL COMPANY The Newman Interests An nounce Withdrawal of
 Opposition to Deal DETAILS, HOWEVER,
 ARE NOT GIVEN OUT Nothing Has Been Said by Officials as to Possibility of Granting
 Cheaper Rates to the
 Consumers

The Birmingham Railway Light and Power company has contracted to use electric power from the Alabama Power company
 Announcement to this effect was made yesterday by J. s. Pevear the new president of the former company. The contract was announced as signed after j. K. Newman of New Orleans had withdrawn his strenuous objec- tons Ills position was that the con tract would iniure the bonds which the Newman estate owns.
 Mir. Pevear in announcing the sign ing of the contract issued to The Age Herald this telegram;
 Lee c. Bradley and A. H. Ford, care
 Tillman, Bradley Morrow, Bir-
 mingham. Ala.
 After carefully analysing contract between Birmingham company and the power company, I have reached con- ment covering section 9. which Is agreed to. the contract fully protects the Birmingham company. l have seen plans of power company and believe their plant is one of best in the coun- try. In addition to this the power com pany has good steam station at Gads- den which can supplement water plant. Power company also has two independ- ent transmission lines. Therefore, Bir- mingham company can depend upon splendid service from the power com pany. The contract provides that the Birmingham company keeps full and complete control of the power station and can operate same in It's discretion at any time. Therefore I will withdraw opposition to contract.
 'Jy K. NEWMAN"
 The safeguards that are referred to by MT. Newman are that the local plant can control the local power situation at any time and further that as to the contract the different interests are permitted to appoint arbitrators to look over and thresh out the details As to the points to be submitted for arbi- tration. MT. Bullock and MT. Pevear were yesterday unwilling to go into the details.
 The officials did not say yesterday that the city would get cheaper cleo tric energy by reason of this contract lnaSmuCn as tnere IS a dlfferenCe of opinion about the economy of this con- tract as 1t affects the Birmingham Railway, Light and Power company the proposed or expected reduction here may be postponed until thorough trial of the service Is made.
 MT. Bullock was seemingly optimistic yesterday about the contract. He gracefully allowed to pass with a smile some banter about the contract and it is the conviction of those in touch with the situation that MT. Bullock and his associates believe that the contract is a good one. In the meantime the withdrawal of opposition to the con- tract by Jake Newman does not neces- sarily mean that the trouble which has been brewing has entirely subsided If the city insists on buying electric energy from the Alabama Power com panq. constructs line to Spaulding and brings power to this city for sale. the Birmingham Railway. Light and Power company will have an entirely new problem to handle. And it is stated that the commissioners are inclined to utilize this plan as a basis of getting some concessions in the matter of elec- tric prices,