The Birmingham age-herald., 1916-05-10

may come to it through assisting thereby in increasing the industrial activity in Birming ham.
 AN INITIAL LOSS
 This company is prepared to accept this initial loss for the good of the com munity in the hope that it will ultimately overtake the same through material in crease in gas consumption, but it cannot, in the light of the experience had, agree, regardless of the business which 1t may be able to secure in the future, to assent to a further reduction of 10c in one year I and of 200 in two years.
 .'The ooc maximum would involve, after giving a consumer the benefit of the en- tire saving in the use of by-product gas, loss to the company of materially over B per cent of it's gas revenue and busl- ness prudence would not justify this com pany in speculating upon Birminghams pl osperity resulting in a sufficiently large consumption of gas in fixed period of time to justify such enormous price re- auctions. JITNEY COMPETITION
 ''The embarrassment to the company in this respect is accentuated by the uncer- ta;nty of business conditions incident 10 the uncertain duration of the war coupled with the possibility of this country be- coming involved; the fact that Birming- ham is the only city of any magnitude
  ways against unregulated iitney competl- ton; the further fact that the company has already been subjected during the accentuated period of business depression to marked reduction in electric light rates, and the existing agitation which may possibly further adversely affect its rev enues from this latter source As ob- viously the mere lapse of time has no bearing on the question of gas rates, your suggestion of the reduction of the max imum at the end of the first year to 60 cents, and at the end of the second year to 50 cents, is evidently based upon the assumption that with the present promis- ing growth of the city of Birmingham and it's increasing business activity, the gas consumption will grow so rapidly as to warrant the company in making these re- auctions without serious injury to itself If the company could be assured that this would be the case. it would cheerfully acQuiesce in your proposition
 ARBITRARY REDUCTIONS l While the company sincerely hopes that the future may justify your assump- 1 ton in this respect, it does not feel, Tn consideration of the facts hereinbefore | stated, that it should be asked and that l your fairness and that of it's patrons l will demand that 1t should commit itself l to arbitrary reductions, determined solely | by lapse of time. To the contrary, we believe that you will agree that the only | just and fair basis for determining the l time when such reductions in maximum
 rates should become effective should be the net revenue derived from gas con- sumption On this basis the officers of this company will cheerfully cooperate with your commission and it's engineer to determine what amount of revenue re- ceived will justify reduction from the initial maximum progressively to the 50- cent maximum. We will agree in the | amended contract to facilitate your com mission to ascertaining the time when such reduced maximum should become controlling; to furnish monthly statements showing the revenue received from the gas scld during the preceding P months. and 70 give your commission through recognized chartered accountant of your own selection, an opportunity to verify such statements from all available gas records and statistics within the posses sion of the company.
 FIVE-CENT STEPS
 Tn this connection we would suggest that instead of making the deductions from 70 cents to 50 cents by two steps of 10 cents each, it would be more to the | advantage of the community to make it i. steps of . cents each, as the consum- CTS Of gas would, at an earlier date, re- ceive partial reduction from the 70-cent and 60- cent maximuins respectively, while they would attain the So-cent and 50-cent ] maximums at an equally early date. Of course, the advantage te the con | sumer in this respect would be to the detriment of our company, but we make | the suggestion because we wish to demon strate to you and our customers that neither your commission nor the public
 can approach. the Birmingham Railway, Light and Power company on broad ! guaged business proposition in the inter 1 est of this community which we will not only meet half way, but if our financial
 ability permits. will meet more than half way ! COMPANIES OFFER
 ITO make perfectly clear the offer made to the city by this company we wish to
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