The Birmingham age-herald., 1924-04-18
UTILITIES LINES
 TO CHANGE SOON
Entirely New Franchise Is Planned For
 Tidewater

Changing" the franchise of the Tide water line as agreed on by the city and the Birmingham Electric company con sists of the abandonment of the old franchise entirely and the introduction of a new one.
 The franchise under which the Tide water line operated was for 99 years duration, s13 years of it had been con sumed and S6 years were yet to run. Until the completion of organization by the Birmingham Electric company the old franchise will be in operation.
 When the new company is perfected At will operate under an entirely new franchise of 30 years duration. It will xrant to the Birmingham Electric company use of those streets on which the former Tidewater cars will oper- ate under the new divided service agree ment. ~-
 All streets formerly used by the Tide water, such as Fifth avenue from the intersection of Nineteenth street in old Birmingham, to Forty-first street, and other like stretches to be abandoned, will revert to the city and the car tracks will be removed from them.
 There was an old franchise granted hy the city by which a street car com pany was to have paid the city 10 per cent of its gross income. This com pany passed many years ago, it's fran schise lapsed through time limitation and it had no connection with the Tide water franchise.
 Receiversh;p of the B. R., L. & P: and Tidewater utilities virtually ended when Judge W. I. Grubb's approval ot lthe sale was given and when the Ala bama public service commission ap- sproyed the transfer of the properties to the Birmingham Electric company, although J. s. Peavear, receiver, re- mains in charge of the properties as sfhe representative of the federal court until the business of the delivery of deeds is transacted. .
 Mir. Pevear is no longer classed as the receiver, but as manager of the af- fairs of the Birmingham Electric com spany. The representatives of the Ma tional Light and Power company have officially stated that Mir. Pevear will be chosen president of that new or xanizationg when the affairs of the new Skeleton company are filled out and its lpermanent organization perfected.
 Two Units Absorbed
 Two independent units of the utility service organizations, that have never been in the hands of the receiver, 1t was announced Thursday morning, are now officially absorbed by the Bir- rningham Electric company, the Besse- mer Gas company and the Norwood Street Railway company. In addition, several minor public utilities have been taken into the particularized holdings fof the Birmingham Electric company. E The Bessemer Gas company was nan liled by the receivers and financed by them but the property was not ciassed as bankrupt.
 The Norwood Street Railway com many was organized after the older util- ities had gone into the receivership. It's capital stock was taken over for the B. R., l.. & P. Co. by the receivers.
 City Attorney W. H. Wynn of Bir- Iningham and W. B. White of Tillman, Bradley & Baldwin, counsel for the utilities, spent most of Thursday morn- ing shaping the agreements between the city of Birmingham and the Birming- ham Electric company, which will be covered by ordinances MT. Wynn is drawing to be presented before the ad' iourned meeting of the. city commis' sion Friday morning at 10 o'clock.
 Since the purchase of the Tidewater is contingent on the city carrying out jthe franchise change agreements, that transaction will not be consummated until the adoption of the ordinance by the commission.
 President D. E. McLendon of the city commission. who broke the dead lock in the Tidewater situation with his public announcement that the city would be willing to have the franchise changed to permit of the division of the lines service, has been the recipient of many expressions of commendation for his action in making the settlement of the trouble possible. Commission CTS Cloe and Dickson, who, to all in tents and purposes, backed MT. Me Lendon in his attitude, have also come in for much commendation. Commis si0ner W. L. Harrison, who took the lead in driving the bargain by which the city gained far more than was al first anticipated, has come in for a great deal of commendation.
 Severance of the utilities from con nection with the federal court is ex- pected to follow shortly after the adop- tion of the city ordinance. Within a short time after that formality it is understood the Birmingham Electric company will call meeting to further perfect its organization and place its officers in charge of the utility prop