The Birmingham age-herald., 1922-12-14
Associate Commissioners in
 Arbitrary Fashion HurriedIy Fix Tentative Valuation of
 Alabama Power Company's Property at S33,843,252
PATTERSON PUBLISHERS
 VAINLY TO DELAY STEP
Populated Officials Who
 Soon Retire by lnsistent Attitude Force President to Retire From Chamber When Valuation Is Voted
STATE CAPITAL BUREAU I
 THE AGE-HERALD Montgomery, Ala, Dee. I3 l


 Disregarding the protest of A. G. Patterson, president, who charged that all facts required by law had not been considered, B. II. Cooper and s. P. Gaillard, associate mem bers of the public service commis- sion, late today rendered decision establishing a tentative valuation of $33, 3,843,252 on the property of the Alabama Power company in this state.
 The valuation is subject to pro- test within 30 days by the Alabama Power company, though the law is indefinite regarding the right of the public to make any application for rehearing. If the Alabama Power company should apply for q rehearing, the decision establishing the final valuation could be ren- dered by the present commission, as Mr. Cooper and Mir. Gaillard will not retire from office until January It. gor more than 30 days from the date of the decision on the tentative val uation.
 In establishing the tentative valu- ation, the associate commissioners took about $11,000,O0O from the amount claimed by the Alabama Power company, which insisted that the value of it's property in Ala bama is s44,000,000 in round mum bers.
 The decision of the associate com missioners established the value of the company's wholesale property to $30,043,974 and the value of the retail property at $33,S43,252. This decision was rendered follow ing an opinion of IT typewritten pages in which the associate com missioners set forth their basis for the tentative valuation.
 Purpose of Valuation
 When the valuation is fixed, the commission, under the law, is re- quired to permit the public service utility to collect such rates and charges as will yield fair return on the investment. This provision ef the jaw makes the establishment of a valuation of great importance, both to the utility and to the consuming public.
 The opinion took up the various properties of the company item by item. giving the figures of Hagenah and Erieksog, engineers employed to make an inventory and appraisal. and I. F. Mcdonnell the commits slon's engineer, who made a report after checking the estimates of Ha- genah and Erickson and after mak- Ing personal investigation. The va rious items follow:
 Original cost: Hagenah and Brick son placed the original cost at $36,- S07.513.76. Mr. Mcdonnell placed it at $36,029, ,45s.si. M. w. Aldridge. ac- countant of the comm ssion, filed a report showing the cost to be s37,- 645,74l-2 -26, the working capital to be s2.297, ,457.63. making a total of ss9,- 943,19S.S9. The Alabama Power com pany filed sworn statement show ing the original cost to be s40,125,- 952.60. The commissioners declined to give consideration to the original cost figures beyond the amount which would cover the reproduction cost of the property.
 Working capital: Hagenah and Erickson and Mir. Mcdonnell agreed that the company's working capital was s1.S50.000. The company con tended that its working capital at the time of the report was S2,5s6,- 4s3.5l. The opinion stated that every public utility should be allowed a capital sufficient to take advantage of discounts by purchasing in whole sale lots and for cash where
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