The Birmingham age-herald., 1921-06-24
RECEIVER OF CAR
 COMPANY TELLS OF
 PLANT RENOVATION
Discusses Heavy Expendi- lures Made In Bringing the Service Back Toward
 Normal

SoPAIoA eAPeHultureS Dy the receiver
 Tn improving and rehabilitating the
 properties in another statement is-
 sued last night. by Lee c. Bradley, receiver of the properties.
 MT. Bradley points out that while the capital expenditures have totaled : sl,ooo,0oo, the city commissioners had expressed qualification with most of these expenditures, and some wei even made under contract with the city. The city was advisor in each case of the proposed expendi- lures. and far from expressing the dfsapproval intimated by the citys attorney, pleasure at the improve ments were expressed by the com missioners, says Mir. Bradley.
 Chief Expenditures
 The chief expenditures consisted of installation of the new water-ga.s set the replace the worn out plant which failed to function properly. the construction of the gas main to the by-product plant enabling the city to get plenty of gas at lower rates, the purchase of new street cars, the rebuilding ofealI the worn out cars, installation of new motors and general rehabilitation of the worn and rundown property so that reasonable service miAht be furnished. All, these improvements had been heartily approved by the city commission, states Mir. Bradley. AT expenditure of s240 GOO for pavement of Tuscaloosa avenue was made under contract with the city. Much of the other investment went for installation of street lights de- manded by the city and extensions ia light and gas service for new homes. In many cases the city required the installation of arc lights, which cost $100 or more, for which the citv pays the rate fixed by the city. only SIS per year. Interest depreciation and urkeep cost $15, leaving only s3 her year to go to the company. which scm etimes pays more than. s10O tor installation.
 The receiver declares that gas ex tensions are now asked by the city. i which will cost s200,000, from which little revenue can be hoped for years to come. Yet, he declares. the city constantly demands greater and greater expenditures, but refuses to provide the means to spend the l money.
 ] Capital Expenditures
 In detail, Mr. Bradley says:
 Reference is also made in MT Johnston's statement to capital ex- penditures. The total capital expen- ditures during receivership have been approximately $1,000,000, but the re- ceiver's obligations unpaid and out standing amount to approximately 1 $2,000,o00. In other words. although the capital expenditures have only been s1,000,000, yet the receivers ob . | Hgatons are twice that amount due to insufficient earning and work ing capital.
 1 Judge Grubb in his recent opin- ion mentioned among the duties de- | volving upon the receivership the making of such extensions as are necessary to provide for the growth of the community" Mir Johnston,
 without argument or reason, says that this is q mi ption," and contends. as I understand him, that this sconception has resulted in throwing business upon the receiver ship which ought not to be there.
 MT. Johnston has not favored Judge l Grubb or the receiver with his req sons for the opinion expressed. Nor mas he at any time complained or protested at the course pursued
 Frankly, I do hot understand his view. The Alabama statute Is very plain. It says, Every utility shall | render adequate service to the pub lie. and shall make such reasonable extensions, Improvements and en- i largements of it's plant, facilities and I equipment as is necessary to meet the demand of the territory it is un- 1 der duty to serve"
 But let us see what the principal capital expenditures have been. Commission Was Gratified ."(a) The first capital expenditure l was for the new water-gas set in the summer of 1919. The gas plant had become inadequate and was virtually orn cut. It was obvious that th, | gas plant could not during the win ter of 1919-20, without this addition, furnish gas of proper quality or sui ficient amount. The city commission, when I told them of my purpose, unanimously expressed qualification. | "(b) Th> next capital ex. enditure was largely for new motor SC. equipments for the cars. At the time l this purchase was made, the equip 1 ment was in miserable condition. The installation of these new motor set | equipments was made in our own shops and in the most economical way | RNSS<StS' AhSii Q0INHdSS SOQPiCd l with ths repair md rehabilitation of l other motor sets in the shops which were not worn out. represented in . large measure the improvement in 1 the running condition of the cars. "(c) The next capital expenditure of importance was the purchase, first of 20 one-man cars, and later of IS additional of that type. Their pur- chase was hailed with delight on all sides and they have proved a success Until they were purchased, the shops could not go forward with proper rehabilitation of the cars. because 1 there was no surplus.
 Paving Financed by Citv I td) The next capital expenditure of importance was the paving Of Tuscaloosa avenue and the recon struction incidental to it. This was done upon the insistent demand of the city and under contract with the city. Indeed. the city financed tue expenditure.
 l (e) The next capital expenditure of importance was the new gas main from the Sloss- Sheffield Steel and Iron company's by-product coke ovens to the city gaa plant. This was done under contract with the city.
 ] tf) The city has itself demanded numerous light extensions which have cost a good many thousands of dollars, and have on an average en- tailed loss to the estate because of the rate paid by the city for its light ing. Birmingham pays SIS per an mum per arc. whereas Bessemer and Fairfield pay s24 per annum per arc. Birmingham fixed it's own price at the time when the city was empow- cred to regulate electric rates. These