The Birmingham age-herald., 1923-02-15
GAS COMPA ANY |S PUT BENEATH NET
 IF KRONER BILL
Revaluation of Mobile Utility Will Be Made by Commis- sion Under Terms of
 New Law
STATE CAPITAL BUREAU !
 THE AGE-HERALD Man&ox... An. Url


 Acting under the Brewer bill, which became a law Tuesday, the pubic service commission late today notified the Mobile Gas company that it will set aside the valuation placed on it's property in Mobile and will make a revaluation. The decision was reached following an informal conference with Harry T. Smith, counsel for the company. and R. I. Speer. general manager. and after proposal of the company for the establishment of a valuation of s1,965,565 on the prop erty had been rejected by the com mission.
 In making the revaluation the com mission announced that it will use such of the information in the former case as is regarded as proper and will make further inquiry into the values of the various items which constitute the gas manufacturing and gas distribution of the company
 COmpany's Contention
 Counsel for the company did not in- dicate what attitude it will take as the result of the decision of the com mission to make another valuation, but had already indicated the belief that the setting aside of the valua- lion would be violation of the con- stitution.
 During the informal conference the company suggested tha. the issue be- tween the commission and company be settled by the establishment of the valuation of the property at the amount of the tentative valuation fixed by the commissioners 1, ,965, 565 which was later reduced to s1,700, 900. It also suggested that the com mission permit the company to make an increase in gas rates to small consumers in Mobile and decrease Tn the rate to large consumers.
 In making this suggestion, repre- sentatives of the cor pany contended that present rates t. small consum- CTS cause monthly loss to the com pany and that it should be permitted to earn return on gas sold to small consumers. In suggesting a decrease in 'he rate to large consumers the company said there would be a great CT consumption of gas.
 Proposal Rejected
 Following the conference. the com mission conferred with it's engineer. l. r. Mcdonnell, and accountant. N. w. -Aldridge, and reached the con- clusion that the company's proposal would not be accepta ble
 The effect of the company's reval- uation decision on the case in the i,, jal r IS seeking a permanent injunction preventing the commission from re- ducing gas rates in Mobile. has not been determined, though it has been suggested that since the commission lad cancelled the rate which 1t had sought to enforce the case in federal court will become a moot one and subject to dismissal on motion. WHITE GETS NEW JOB
 Hugh White of Gadsden. who has been secretary of the public service commission, has been named special assistant attorney general and as- signed to the commission for duties. Announcer ment of the appointment of MT. White was made Wednesday aft ernoon by Harwell G. Davis, attor- ney general. While attached to the state legal department. MT. Whites duties will be to represent the com mission in all litigation which may arise; to give advice to the com mission regarding the enforcement the public utility and transportation laws.
 The public service commission and Governor Brandon approved the ap- pointment of MT. White and he will take up his new work at once. Much of the commission lltigat ton in re- cent months has been handled by MT. White.
 John Brandon. brother of Cover nor Brandon, was elected secretary
 (Continued on Page Eleven.)