The Birmingham age-herald., 1923-04-17
CASE IN HANDS COM EMISSION.
Public Service Board Follow ing Defeat in Court Can- CeIs Valuation of Mobile
 Gas Company's
 Properties
STATE CAPITAL, BUREAU
 THE AGE-HERALD


 Following Its order cancelllng the valuation on property of the Mo bile Gas company and it's motion in the federal court for the dismissal of the inJutetion case brought by the company, the public service com mission tonight issued an order for the revaluation of the property of the Mobile Gas company. This latest or der casts aside the original vaIuat tion of $1,696,000 and the valuation of $1,700,000 established on rehearing, and provides for new investigation
 In taking tie last action. the com mission contends that this will re move the case from the federal court and will give the commission the right to make an examination of the records showing the historical cost of the property used and useful in the manufacture of gas in Mobile. The commission was denied the right to make this examination by Judge Henry D. Clayton in the federal court Saturday night. It insisted that the law requires the consideration of the historical cost of the property In es- tahlishing valuation, but that the company did not have this fuforma- tion available before the valuation order was issued.
 Valuation Cancelled,
 The contest between the Alabama public service commission and the Mobile Gas company over the right of the commission to order a reduction in gas rates in Mobile and suburbs took a sudden turn Monday when the commission issued an order cancel ling it's previous valuation of s1.7oo oVo and cancelling the rates which 1t ordered into effect at that time This action resulted from the order issued by Judge Clayton, denying the commissions request for the right to make a further examination Of the books of the Mobile Gas company. The final disposition of the Mobile case has become important to every seetton Of Alabama because of Judge r CIaYtons opinion, which. if sustained Will prevent the commission from considering the petition of the Ala bama Mining institute for rehear- ing of the valuation case of the Ala bama Power company.
 Judge clayton's opinion held that the establishment of the original valuation of the property of the Mo oile Gas, company which totalled Fi'VpoiVVV tdHu Wnich later was re- duced to S1,700,000) constituted a contract between the state and the company which cannot be revoked. This will mean that the commission has no authority to change the valu- ation. of s33S43.000 placed by the commission on the property of the Alabama Power company.
 O O O
 Case Set Wednesday.
 One of the acts of the commits sion Monday was to issue an order cancelling it's valuation and rates prescribed for the Mobile Gas com pany. The gas company has been contesting the right of the commits sion to establish the rates in a case in ths federal court
 Shortly after the valuation and rates were cancelled. the commits sion filed in the federal court a petition for an order dismissing the case brought by the Mobile Gas com pany, contendng that the cancella- tion order made the gas company's case moot one and removed the cause for the contest. Judge Clay ton set the hearing of the commits (Contfnued on Page TwO)