The Birmingham age-herald., 1916-03-26
Unwilling to Act in Matter Without First Obtaining Consent of the City Commission
CITY IS OFFERED
 OPTION TO BUY IT
 WITHIN FIVE YEARS
Forney Johnston, Attorney for the Bondholders, Is- sues Statement Explain ing the Situation

The Birmingham Railway, Light and Power company stands ready to take over the properties of the Tidewater lines, according to a statement made last night by Forney Johnston, attor- ney for the bondholders of the latter company, which has been in the hands of receiver for sometime.
 MT. Johnston states that the Bir- min gham Railway, Light and Power company had expressed a willingness to take over the property on basis of s1,500,0O0, which is much less than the cost of the system, provided the city commission approves.
 MT. Johnston proposes that under the terms of the agreement the city retain the right to take over the line at any time within the next five years at the price now offered by the Birming- ham Railway Light and Power com pany without interest The losses sus- tsined by the Birmingham Railway, Light and Power company in the oper- ation of the line pending the city's de- cision would not be taken into con sideration.
 OUTLINES DIFFICULTIES
 In his. statement of the case Mir. Johnston outlines the difficulties which would confront any purchaser of the line other than the Birmingham Railway, Light and Power company. The fact that the Tidewater lines have had no connecting link and no feed- cil ho inability of the system to pay its i'm terest on bonds.
 Since there Is some doubt as to the legal right of the city to purchase the Tidewater lines. and since the price offered by the city is only a fraction of the cost of the lines MT. Johnston suggests that the city allow the Bir- mingham Railway. Light and Power company to take over the system, sub city to take the line at the price paid by the Birmingham Railway, Light and Power company at any time with in the next five years.
 GIVE CITY AMPLE TIME
 This plan, in the opinion of MT. JOnnSlOI, WOulU SlNc lAC ClIy duthOlA r ties ample time to map out and put into effect their plans with regard to municipal light system and other plans for the city ownership of util- ities It is pointed out by MT. John st on that the line can be acquired by the Birmingham Railway, Light and Power company with the approval of the public service commission, but it is not considered advisable to do this without the consent of the city. The statement of MT. Johnston fol- lows:
 q find that there is some misap- prehension as to. the proposal relative to the reorganization of the Tidewater lines which has been informally con- sidered by the board of commission CTS.
 "A committee representing practi- cally all the bondholders-between 50U and 1000 in number-acquired the sys- tenn through the recent foreclosure sale, and has very carefully consid- cred the question of reorganization. The conclusion was reached that, to assure it's success as an independent system considerable extensions would be necessary. "The bondholders, whose faith in the city and district made the system pos sible, are widely scattered and are for the most part, people of limited re- sources, who are unable to provide the additional cash funds necessary to make these extensions and complete 1 the system. The committee reluctantly reached the conclusion that. although the property is of great potential value lrresent conditions do not warrant them lin going forward with the system 1T the present crippled and incomplete condition.
 INVITED AN EXPRESSION For this reason. realizing that the Bir mingham Railway, Light and Power com pany was the only possible purchaser which could operate the property econom | ically in connection with an existing sys | tenn. and, at the same time. improve ths service by routing the cars into the cen ter of the city, and perhaps by affordins transfers, the committee representing ths bcrdholders invited an expression iron officials of the Birmingham Railway Light and Power company as to theil
 (COuttnued on Page Elcvenl