The Birmingham age-herald., 1923-06-09
VALIDITY BROWER ACT SUSTAINED
 BYFEDERAL COURT
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of the act authorizes the commission
 to supervise, inspect and regulate
 public utilities for the purpose of
 fixing rates and of safeguarding the
 issuance of securities. Neither in the
 title nor in the text of the actis the
 purpose disclosed of authorizing the
 commission to enter into contracts
 as to rates with public utilities. Authority to make contracts, not being expressly granted, will not be implied from the circumstances that the expenses incident to valuation
 are required to be borne by the pub lie utility. Such expenses are in- cured in order to enable the com mission to pass intelligently upon the issuance of securities by a public utility, as well as to enable 1t to make a proper valuation so as to determine upon just and reasonable rates and in no proper sense can they be considered as consideration for contract by the commission upon the subject of rates."
 Q Q o. A The public service commission is- sued a statement Friday afternoon be able to show the court that the commission has never received the information needed from the records of the company and that 1t Will De permitted to make such examination as will disclose the facts which the commission is required by law to consider in establishing a valuation on the property.
 "The commission was highly grat- flied to find that in the opMon of
 the. United States Circuit Judges adopted by the legislature at its re- cent session to the Alabama public utility act of 1920, providing for revaluation. is a valid law and au- thorized the action of the commits the properties of the Mobile Gas company. The commission and it's attorneys In this case have never been able to understand how the Mobile Gas company could reason ably contend that the valuation of
 der the original act of 1920 consti-
 tuted contract. We did not be- lieve that the legislature ever had any such idea in Ns mind in the enactment of such lsNv, and certainly the commission never had any such idea in its mind in making the valu- ation. We are much pleased to see. therefore. that Judges Walker and Bryan expressed the view that 1t | was not contemplated in the enact ment of such law to provide that | theNvaiuation should become a con- tract.
 o o O
 Removal Of Restrictions.
 Judges Walker and Bryan say they recognize the right of the com mission to proceed to a revaluation We are confident that even that re- l straint which has been put upon the commission by the order restraining | us, at this time. from compelling the
 Mobile Gas company to produce it's records for examination. will be re- l moved when the commission has been able. to show the court, as we can do, that there Is great deal | of very material information as to tho original cost of the properties of this company which has Nnever been made available to the commis- | sion. either in the proceeding before the commission or in the proceeding now pending in the United States district court.
 The commission has no desire in this nor in any other case except to
 do justice both to the utility and the people. but 1t is the position of the commission that in all matters per- | taining to reasonable regulation of l the utilities 1t is their duty to make . full and frank disclosure of all 1 information which Is in their pos | session and which Is material to ad- | just and proper determination of the matters in issue"