The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-01
100000 PRICE
PAID AT AUCTION
FOR Big UTILITY

ton Mr.. L. B. Hatch today bought the
properties in at foreclosure sale and
later in the day or tomorrow will vest
such operating properties in Birming-
ham Electric company, an Alabama cor
poration, which has been organized to
take over and hereafter operate such
properties. Until the confirmation of
the sale by Judge Grub and the actual
delivery of deeds the properties win
be operated by the receivers for account
of Birmingham Electric company.
more than $4,000, 900 of debts of
the old company will be paid off in full
thus laying the basis for a sound pro-
gram for future financing. Among the
debts so to be paid will be the 1871 900
of first mortgage per cent bonds of
Birmingham Railway and Electric
company which fall due on July 1 of
this year. 1t is expected that arrange
ments will be made so that the holders
OF these bonds can get principal and
accrued interest at any time on sur
render.
Alabama Institution
'In line with modern practice Bir-
mingham Electric company will have
non-par value stock, both preferred and
comman. 1t will be an Alabama and
Birmingham institution in every
sense of the word.
mo change is contemplated in the
present executive management. of Bir-
mingham Electric company. The tenn
porary board of directors Of Birming-
ham Electric company will continue to
function for the time being, but it is
expected that the permanent board of
directors will be composed, for the
most part, of residents of Birmingham.
"a new modern serial mortgage will
be created and bonds will be issued to
pay a part of the debts of the old COM
pany. Between 100000 and $5,000,-
600 Of the present companys so-called
senior securities will be shifted into
common stock as a result Of the re-
organization"
Will Pay All Debts
As result, the holders Of all the
overdue and sunpaid debts of the COM
panyS totalling nearly 100000, will
be paid in full both principal and in
terest. Inasmnch as the bidder must
take the property subject to outstand-
ing bonds not due, aggregating approx
mately $9,500,O 900, and must also as
sumo all the receivers debts, Ntotalling
about ,$2,000,000, the bid price equals
about $50 ,O00, 900 fer the properties
sold.
1t was stated by Mr.. Hatch that he
acted as bidder in the interests of the
National Power and Light company,
the owner Of the capital stock of the
Birmingham Railway, Light and Pow
er company, and for the purpose of
turning the property over under the
plan Of reorganization to Birmingham
Electric company, which will be the
name of the reorganized company.
Operation OF Tidewater
J. s. Pevear issued the following
statement
"No bidder has appeared for the
properties of the Tidewater and, &C.
cordingly, the sale of these properties
has been further adjourned to April IA,
1924, at IL o'clock, noon, in front of
the Third avenue entrance of the JEFF
ferson county court house i'm Birming-
ham, Ala. ~, -
"Recognizing that the elimination Of
ttc IldzaEuSf 9At .VPcrAtIoA over many
crossings at grade and the handling of
the Tidewater properties in such way
as to make them part of the city
street railway system instead of an in
dependent and, separate operation were
probably essention. to sale Of the
property the. receivers have made ev-
cry effort to secure the necessary, ap-
proval by the proper authorities to a
Encouragement of the operations and
franchises of the .Tidewater lines to
such an extent as would make them at
least not an unattractive purchase and
assure the preservation of the i'm
portant parts Of the lines for those peo-
pie who use them and rely upon them
for transportation. The receivers eff
forts to this end have been without re-
suit and apparently unless some bid
der appears on the date to which the
sale has been adjourned, the receiver
ship of the Tidewater must continue.
AS long as the present receivers con-
tinue in office they will, of course, make
every effort to see that the Tidewater
line render the best service possible and
consistent with operating income.