The Birmingham age-herald., 1921-01-08

| hearing. Commissioners N. A. Barrett John Taylor ,. R. Hornady and H. P Burruss were there and made short talks in support of the contract which they have approved
 It developed during the discussion that Birmingham would probably face an increase in water rates if the pro posed contract was not ratified bv inc people a the election to be held on January 24
 norden Burr. counsel for the water company, was called on to eNP'aih Inc contract to the commit- t'.e rom Inc water works com p""Fs standpoint. He was asked the question as to whether or not me company would ask another "aeasc m ease the contract was not ratified. Mir. Burr rcpIjcd that this would depend on conditions. that Inc company was compelled to raise Sf00.00O to make immediate
 improvements, and that if tho com tract Tailed of ratification That
 m"ters would be left in confusion
 so that it might he Impossible to
 get capital to invest with the prcs-
 ent rates in effect. "In such
 case,'' said Mir. Burr. "re would
 have to ask the public service com
 mission to fix a rate that would cu-
 able to get the needed money
 for Improvements"
 Others who took an active mart in the discussion of the contract were I L. 4ancey L. Sevier, l. w. Ross, Judge II. Wilkinson. E. E. Erwin Lloyd Bowers, J. D. Dabney. Jr., A. C. Crow der, H. S. Ryall M, P Messer, Borden Burr, Arlie Barber, C. G. Davis, Harry Homer and others.
 The discussion by interested citizens was confined mostly to questions, while the talks made by officials of the city. company and engineers for both sides made brief talks in explanation of the various points
 TERMS OF CONTRACT
 As 1 see this contract and this elec- ton, it involves only the question of whether the terms of the contract shall be ratified or not" said Dr, Bar rett, president of the commission. Ut does not bind us to buy the holdings of the company if we do not care to in the future.n
 w. F. Wilcox chairman of the com mittee on investigations of the con tract of the Birmingham Civic Asso- ciation presided over the meeting c ''6S " iiNiiiSpiit SBtCldl council TOT the city in the waterworks matter. made a brief talk, in which he outlined the terms of the contract.
 The contract, of which I drew prac. tically every clause provides an cp- tlon for the city to purchase at S7.75O.- oOo, and fixes a rate making basis of SLo00,000, on which the waterworks rate making value includes only such property as is used for the service of the people, not property held for fu- ture development.
 We agreed to the figures believing If we were without contract the pub llc service commission at Montgomery would put the value vastly above the Shooo,0oO, on which the water works company had agreed
 "Only in that respect was the city allowed any voice in the making of the rates paid for by the people of Bir~ mingham, and we wanted to make it as small as possible.
 FUND FOR REPAIRS
 Some of the other points of the cons tract are fund of l per cent year Of the depreciable value of the props erty, that being fixed at 5000, 900, to be laid aside for repairs, that is a sund of s50,OO0 a year for repairs.
 provision is included that the
 company shall furnish the city q
 quarterly statements of it's finan-
 ciaI condition. The schedule Of
 rates fixed by the public service
 commission allows the company a
 return Of 7.15 per cent on its in-
 vestment. The contract contains
 clause that requires any excess
 in earnings over md above this
 amount to he set aside in n fund
 and when this fund reaches SI5O,-
 O0, water rates are automatically
 reduced. Heretofore these excess
 earnings have been paid out in the
 form of dividends. Now they are
 the property of the people, and
 are held by the water company,
 and in case they accumulate they
 reduce the water rates,
 This fund of $50,000 has been named the balance wheel fund.
 When asked why condemnation proceed ings were not resorted to the attorney for the city stated that they were long, expensive and would involve more spot cash than it would take to ac- quire the company by purchase, as in buying it the city would be allowed to assume the longtime bonded indebted MORTIMER JORDAN
 NAME SELECTED FOR