The Birmingham age-herald., 1923-04-16
Clayton Verdict Upon Mo- bile Gas Company Suit De- nies State Service Commits sion Permission to Exam-
 inc Books ot Corporation
STATES CONTRACT IS DECLARED lRREV0CABLE
Brewer Law May Be Declared
 Void in Reference to Big
 Utilities Whose Rates Were Fixed Before It Was Enacted by the Alabama Legislature
STATE CAPITAL BUREAUt
 THE AGE-H HERALD } Mnntoonery Ala AurtI 15


 If Judge Henry Claytons opinion in the Mobile Gas case stands, the valua- ton of ss3,s43.0o0, placed on the property of the Alabama Power com- pany by B. H. Cooper and 8. P. GaiI- lard, former associate members of the public service commission, shortly be- fore they retired. will become final and the application of the Alabama Mining institute for a rehearing in will become ineffective.
 Judge Ciayton,s decision denied the motion of the public service eommis- sion for an order permitting further examination of the books and records of the Mobile Gas company. and his opinion held that the valuation placed on the property of the gas company became final and established con tract between the state and the com- pauy which was irrevocable.
 Under this decision, if sustained on appeal to the United States supreme court, the Brower law enacted this year permitting the commission to revalue the property of utilities would be void in so far as the case of the Alabama Power company and Mobile Gas company are concerned.
 
 before the Brewer law passed.
 Dent Hearing Case.
 Shortly after the public service l-commission issued it's valuation orr der in the Mobile Gas company's csse. which reduced the previous valuation of s1965,000 to s1.700,oO0 and ordered rate reductions. the company applied to the federal court for an order pro- hibiting the reductions. Three fed eral judges heard the petition at Jacksonville. Fla. Judge William L. bama Power company, was present q Jacksonville when the gas companyts case was submitted. The judges granted the temporary injunction The case is now being heard by s. H Dent. Jr., special master. on the re- quest for permanent injunction. The public service commission sought th- order for a further examination of the gas company's records In connec- tion with this case.
 White Starts Probe.
 An investigation will he started by Hugh White. special assistant attor- ney general, to determine whether or not the right of appeal from the decision can be found.
 The commission must pass upon the application of the Alabama Mining institute for rehearng in the valu- ation case of the Alabama Power company by May 12. under the terms of the Brewer act. The act requires the commission to dispose of the case within 90 days after the law was passed
 The valuation order in the Alabama Power company's case esta blished the valuation of the property as of June 30, 1920. at s33,S43000 The company did not appeal or protest, and the pc tition for rehearing was filed by the Alabama Mining institute. dTo this valuation. if it has become final, must be added the value of all property ac- quired by the Alabama Power conn pany since June 30, 1920, including the gas system, electric system and street railroad in Montgomery, ths public utilities at Selma and the de- velopment at Mitchell dam.