The Birmingham age-herald., 1921-04-10
ALABAMA POWER
 COMPANY ID SELL
 HUGE BOND ISSUE
Big Corporation Will Expend $25,0O0,0O0 on Develop ment Work in This State.
 Projects Are Approved
By FRED H. GORMLEY Montgomery Bureau, The Age-Heral 221-2 First National Bank Buiidiu

Montgomery, April 9.-(Special.)- )- In preparation for the extensive de- velopment of potential electric power in Alabama which is now in contem- platiOn, the Alabama Power company Saturday was granted permission by the public service commission to is- sue and sell mortgage bonds to the value of $25,OOO,00O and to issue and sell additional preferred stock.
 Although nothing in the petitions in- dicated what immediate developments are proposed, it is known that the Alabama Power company proposes to construct another unit of it's hydro- electric development at Duncans Rltfle and that a petition for the construc- ton of the dam, which has already been approved by the public service commission, is before the federal water power commission for approval
 HOW EXPENDED
 The authority of the public service commission for the sale of the new mortgage bonds and of the new issue of preferred stock was sought under the new public utilities act, which re- quires a public utility to obtain the consent of the commission before placing new securities on the market and before beginning new develop ments.
 Referring to the purposes of the is suance of additional bonds and pre- ferred stock, the following statement was made by the Alabama Power company at the time the public serv- ice commission granted the petitions:
 '"rhe total authorized issue of new bonds will be $25,000,000, of which probably $2,000,000 will be issued in the near future. The mortgage will provide for issuing new mortgage bonds against the pledge of the .5 per cent bonds of the company heretofore authorized to be issued, and, further, the new bonds can only be issued un- der substantially the conditions of the present mortgage, viz: For 80 per cent of the cost of additions and improve ments to the company's system, pro- Vided the net earnings of the company are twice the interest. charges on all bonds issued and then proposed to be issued.
 BONDS ATTRACTIVE
 'The purpose of the issuance of new bonds will be to take care of the addi- tions and improvements to the com pany's system, including new hydro electric developments, and to provide for the retirement of it's $2,900O00 of per cent notes due in 1922.
 The company has heretofore found a ready market for it's 5 per cent bonds, but due to the present demands for money it will be necessary to sell bonds with which to carry on it's pro- posed developments at a higher rate of interest, which necessitates the new mortgage and the new issue of bonds The sale of these bonds will not in- terfere with the sale of the company's preferred stock, which is being suc- cessfully carried on throughout the state In fact, at the same time the company is asking permission to issue new mortgage bonds. it is asking per- mission to put upon the market a new ] issue of preferred stock, as heretofore the commission has only authorized the sale of 10000 shares of preferred stock, nearly all of which has already been sold"