The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-06
.sl,OO0,O)O Cash IS
MADE AVAILABLE
FOR UTILITY CO.
Application Filed With p.
S. C. For Approval OF I
S8,000,0OO In Securities
PROPERTY TRANSFER
SOUGHT IN PETITION
Affairs Of Birmingham
Electric Company Round
ing Into Shape Rapidly


immediate use: filing application for
approval for the issuance of $4,000, 600
worth Of securities. and filing Of an APP
plication for permission for transfer OF
the old Birmingham Railway. Light and
Power company property to the pur-
chasers Of the utility, were the activi.
ties that came to a head Saturday
morning in the affairs Of the Birming-
ham Electric company.
Applications for permission to trans
ties were filed with the Alabama public
service commission in Montgomery.
April 16 was set as the day for hear
ing of the applications.
It is proposed to sell 10000 shares,
without par value, paying Z per cent
annual dividends. These shares are re-
deemable in the sum of S2,000,OO0.
Representatives of the old and new
companies and the receivers spent most
of last week arranging details for the
presentment before the federal court
Of data relative to the recent sale and
the adjustments necessary before filing
the applications mentioned with the
public service body,
First Application
The first application is for authority
from the Alabama public service COM
mission for a transfer OF the Birming-
ham Railway, Light and Power COM
pany properties, recently sold to the
Birmingham Electric company, subject
to the confirmation of the sale by Judge
w. /. Grub of the federal court. This
application states, among other things,
hat a rAAttIk uf fkn nsas of
the Birmingham Railway, Light and
Power company in excess Of $4,000. 900
of securities and obligations Of the Bir-
company, including its $3,500,000 of
preferred stock, now senior to its COM
mon stock, will be eliminated from Sc
curities senior to the new company's
common stock and become part of the
equity represented by the common stock.
The second application is for the APP
proval of the issuance of securities by
Birmingham Electric company, which
include $8,000,O00 of 8 per cent bonds
to be due in 1854 10000 shares of no
par value preferred stock entitled to a
dividend of 81 share each year, and
on any distribution of assets entitled
to payment Of 500 a share, or total
% 81, 000. 600, and an issue of no par
value common stock to represent the
equity in the property.
To Amorize Bonds
1t is understood that substantially
the entire proceeds of the new bonds
are required for payment of existing
5 per cent first mortgage bonds and
8 per cent refunding and extension
mortgage bonds Of the Birmingham
Railway, Light and Power company,
and the payment of claims filed in the
receivership proceedings against the Biz
mingham Railway, Light and Power
company.
With the rapid growth of Birming-
ham. it is said, since 1899, when the
present Birmingham Railway, Light and
power company came into existence.
the bonded indebtedness and preferred
stock Of the new company covered by
these applications, is not substantially
more than that of the old company in
its early days. Bonds and other securi-
ties issued by the old company, it is
pointed out, from time to time during
its existence were against actual cash
expenditures and in most cases for
only 80 to IS per cent of expenditures.
1t is the general belief in Birming-
ham business circles that the Alabama
public service commission will approve
the applications and that the federal
court will approve the recent sale of
the Birmingham Railway, Light and
Power company at auction, when the
property brought $1S,500,0OO.
Tidewater Is Puzzle
Perhaps business men and others in
terested in the development of the
utility were more interested Saturday
morning in the announcement. of the
available 81 900, 900, it being the first
instane Of ready money for needs in the
past several years of the life of the
utility. The sum made available was
taken as indicative of the new strength
of the organization, an instance OF
money talks" and did not fail to make
an impression.
One week of the two set before the
Tidewater line is again offered for sale
has gone, but there has been no sug-
gestion of an INJURY about the sale or
request for data about the property.
For the third time the Tidewater will
go on the auction block in mid-April.
None offered to buy it on the two previ-
GUS occasions. The older company,
which has been operating the Underwater,
is under no obligation, 1t is said, to con-
tinue it. The question being asked is,
how long will the federal court sane
ton the continuance Of a receivership
operation when officials report an even
break on operation and an estimated
loss of $4,000 year for maintenance?
1t was indicated Saturday that reali-
cation has dawned that the Tidewater
line has one of two things In store for
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