The Birmingham age-herald., 1922-10-15
BRADLEY EXPLAINS UT|L|T|ESP POSITION
 IN CONTROVERSY
Receiver of Traction Company Issues Long Statement Set ting Forth Fully Com
 .pany's Case

In his reply given out yesterday to the letter of the committee of the Real Estate Board, Lee c. Bradley. re- ceiver of the Birmingham Railway, Light and Power company showed why the questions asked by that committee can not be answered cat egoricaily. inasmuch as there is problem to be solved and not a mere dispute to be settled
 In his letter Mr. Bradley stated some of the factors involved in this problem and said that any proposi- ton that fails to reckon from the fi- nancial condition of the estate and provide for its betterment Is impos- sibie.
 What we need and must have be- fore this utility can get on It's feet and muster financial strength to serve adequately a rapidly expand ing district Is fuller and broader understanding of It's indispensable value, it's difficulties and necessi- ties" said Mir. Bradley.
 After giving some facts and fig ures, which he considered helpful in arriving at such an understanding. Mir. Bradley said:
 We would welcome the addition to your committee of a representa- tive of every commercial and civic organization In Birmingham" and asked the committee of the Real Es- tate Board to turn to the problem which he has outlined and give to the public all pertinent Information, together with their recommendations in detail.
 If the committee will adopt the suggestions he makes to them, he thinks there Is good reasp to be- lieve that we will get some where"
 The text of Mir. Bradiey's letter to the committee follows:
 MT. Bradley's Letter
 Messrs. J. K. Brockman, I. c. Beat
 ty, Claude H. Estes, A. R. Dear
 born. O. Fl. Horton, committee. Gentlemen: Proper answer to your letter of the 18th in- stant requires . statement of the condition of the estate in. receivership. and the purpose that controls the management--for there Is a problem to be solved. and not a mere dispute to be settled.
 The condition Is that net earnings are little more than sufficient to meet interest and taxes.
 The purpose that controls the man. agement is to bring the earnings to the point of fair return on the in- vestment. if possible-and if not. at least to . point where re-organiza- ton will be warranted.
 Any proposition that falls to reck- on from the financial condition of the estate and provide for its betterment is impossible; and any step that runs counter to the purpose con trolling the management will fnevi- tably prove a backward step.
 Recetvership Inherently Temporary
 The receivership h inherently temporary. It cannot establish per manent policy and It cannot per manently finance itself.
 What we need and must have be- fore this utility can get on It's feet and muster financial strength to ade- quatsly serve . rapidly expanding district is a fuller and broader un- derstAnding of It's indispensable value. it's difficulties and necessities
 To reorzanize this utility will re- cufre around four million dollars- about two millions of past due debt contracted by the corporation before the receivership, and about two rii- lions contracted by the receiver. Ex- istinE liabilities arc usually financed by the reorganization managers, and it may be assumed that they VIII H. nance them, In this instance; but the money necessary to reorganixe will not be forthcoming until 1t Is cer- tain that 1t will be safe. And 1t will not be forthcoming until plan of future financing is made which will enable the utility to get the new money required from day to day and year to year for it's expansion. Five hundred thousand dollars per annum of new money is probably a low es- timate. The new money VIII. of course, be obtained by the sale of secnrities Sold to whom? And wheres To the patrons of the utility right here in Birmingham-just as the Birmineham Water Works has recently done. It goes without say ing that those securittes must promise . fair return and must be safe Their issusnce must be au- thorised by thu Al4bama public ser vice commission in the first instance, and then their s4ie must be author i1ed by the AlAbima stats securitiss commission, created under the .'bius- sky law. Eecvrities Nust Ye Uela te Fatrons I gay these securittes must be sold in Birmingham to the patrons If this utility. Why! What prndsnt maa
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