The Birmingham age-herald., 1922-09-30

WY
 This commission also keeps regu- larly in it's employ. an expert ac- countant who is always subject to the call of the commission in making an analysis of the books and ac- counts of any utility
 'srhese experts, as well as the members of this commission, them selves. and all of it's employees are paid out of funds which are raised by the assessment against the rail- roads, telegraph companies, tele- phone companies and utilities of what is called an inspection and su- pervision fee. These fees have to be paid by every such utility operating in this state in proportion to the amount of gross intrastate business by the utility.
 All, Are Benefited
 "These fees provide a sum of money from which every city and town in the state derives a large benefit, because it is through such fees that the commission is able to employ these experts and make their services available to the people.
 Much of the greater portion of the gross sum paid in the form of such inspection and supervision fees Is paid by the railroads. Yet, these sums that are paid by the railroads help to enable this commission to furnish these expert services.
 11o City Experts
 "So far as I know. there Is not city in Alabama, which retains on its staff of municipal officers or employees an expert valuation engi- neer or an expert accountant. think 1t Is true that there are very few cities In the states. if more than one, which Is large enough to em- ploy such experts regularly. If every time the city is compelled to go into rate investigation of one of it's utilities 1t nas to go out and em- ploy such experts. the expense will be very considerable and if the city endeavors to take care of it by fees levied upon the utilities. such fees would have to be allowed as a part of the operating expense of the utii- ities. Under state regulations. each city has this expert assistance, and On cost basis which I think all must concede Is just.
 Requires Experience
 <AAy PCASOn HhO hAo hdu NAOoN contact with the settlement of the question of what is reasonable rate to utility, knows that it is ques- tion which requires not only problems to enable one to render judgment that will withstand an at- tack in the courts. The utility can not endure, of course. unless 1t has a rate which will give 1t a fair net return. But If any commission or board, whether state or municipal. should fix a rate to govern the util- ity which was held confiscatory. the rate of course. would not be upheld by the courts to which the utility would go for protection of It's rights under both the federal and state constitutions. The members of the state commission are elected for period of four years and as a rule. one or more of them serve Cor longer period than this. hence they become we'll qualified through ex- perience in handling these questions to determine what Is just and reas- enable and to deliver opinions which can be sustained in the courts. if an attack is made upon them.
 Under Federal Control
 T am also informed that under the federal statutes. there is a pro- vision that if any hydro electric company which receives It's power for the production of such energy from any navigable stream over which Congress has Jurisdiction Is not regu- lated by the state under proper statutes enacted by the state, that juri#diction over such companies be- longs to the federal power commis- ~fA nIt regulations of such company would be fixed by the commission at Wash ington.
 'I have not read the federal sta- tutes on this question, but this in- formation has been given me by some who are familiar with these statutes. If this Is correct, then If the states power to regulate the utilities In this class Is destroyed by a repeal of the Alabama public act of 1920, then Jurisdiction over such companies will pass to the federal commission, and instead of the cities bringing the power of regulation over these util- ities closer to themselves. they will be removing 1t far away from them selves by a proposed repeal of the present utility act. At the present time this phase of this question ap- plies especially to the Alabama Power company.
 Since. however, this company now determines the rate for light and power for the greater part of north Alabama. the question as to wheth- CT it will be regulated by State commission or by the Federal com mission, is one which ought to be of considerable interest to the peo- x.1A nf a ts are that it will soon be furnishing power and lights to the principal cities and towns of the entire state.
 Birmingham Situation
 Again, there are many difficulties in the way of successful regulation of utilities by the municipalities. How this municipal regulation would work out practically can be we'll H. frustrated ky reference to the street railway in Birmingham.
 Rate regulation is based funda- mentally on the proposition that the utility is entitled to a fair return on the property devote to the public use. so that the first problem Is one of valuation. The street railway hero serves at least five municipal ities. There would then have to be five different valuations of tho prop erty in each municipality. though the whole system is unit, and there are pieces of property, such as the car barns, and power house. situated in only one of the towns, which patent ly gives value to the fractions of track in all. How could these units be properly located?
 ITO compiicate the situation furth- CT. there is a large unincorporated territory served by the railway.
 In that territory, tho utility would be subject to no regulation at all. Are the residents of this territory to In no ri ierh fS n n Of