The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-05-11
OLD VAL UAT|ON Of
ALABAMA POWER
COMP ANY SLASHED.
New Commission Repudiates
Valuation Of Old Mem
berS

against the excessive valuation and
demanded reduction. The associ-
ate commissioners fixed the higher
valuation just 80 days before their
term of office expired.
There was serious doubt after the
order Of the associate commissioners
was issued on December IS, 1922,
establishing the tentative valuation
at $5S,S4S,252, whether any but the
utility could protest against the val
uation and ask for a rehearing dur
ing the 30-day period allowed under
the law. The Alabama Power COM
pany lodged no protest, but the Ala
bama Mining institute, representing
large consumers of power, protested
against the valuation and demanded
rehearing.
Rehearins Refused.
Holding that there was not suf
ficient time in which to give proper
consideration to the petition or to de-
termne the power of the commission
in rehearing asked by persons other
than the utility involved. Associate
Commissioners Gaillard and Cooper
refused to grant rehearing. The
associate commissioners, however. is
sued an order postponing finality of
the valuation. The application for
rehearing was therefore left as un-
Frank p. Morgan succeeded Commits
sioners Cooper and Gaillard.
In the meantime the Legislature by
overwhelming vote in both houses
amended the Alabama public utility
act SO as to establish the right of
others to apply for rehearings in
valuation cases and to grant author
ity to the commission OF Its own
violation to order revaluations. State
Senator Walter S. Brewer of Jeffer-
son introduced the amendment in
the senate and following it's passage
the Alabama public service commits
sion issued an order for revaluation
of the properties of the Alabama
Power company on April 70, 1928.
Before issuing the valuation order
the commission issued an order con-
firming its previous action in calling
for a revaluation.
In reaching the new valuation, the
commi ssion considered the evidence
submitted in the original case and
made new Investigations into the va
rious phases of the case. The valua
tion covers all property CT the com
pany as of June 80, 1920, the date
involved in the original proceeding.
To this value must be added property
acquired since that time, including
the utilities of Montgomery. the
utilities at Selma, the development at
Mitchell Dam ana other small pants
which have been purchased since
June 80, 1920
The new valuation is about s15,-
000,O less than the final valuation
placed by Hagenah & Erickson, en-
gineers, who made an inventory and
appraisal of the property for the
commission after the valuation case
was docketed in 1920. Hagenah &
Erickson's original report placed the
valuation at approximately $4,000
600, but conferences between them
and l. F. Mcdonnell, engineer for the
commission, caused a reduction of the
valuation to approximately $4,000
900.
o o o
McDonnelfs Estimate Prevails
Mr.. Mcdonnell made a check of
the valuation recommended by Hage-
nah & Erickson and of the valuation
of Nc iris Knowles, who was en-
ployed by large consumers of power,
and his recommendation to the COM
was the establishment of the
valuation at S29,000,0o0. This rec
ommendation was made to the COM
during the past few days. Up
to this time Mr.. Mcdonnell had never