The Birmingham age-herald., 1923-11-01
LONG COURT FIGHT
 IS LOST BY STATE
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a revaluation. However, they granted the injunction preventing the com mission from requiring the gas com pany to produce any books and records, holding that the commission had already made an examination of such records.
 Judge Clayton did not agree with his associates regarding the con- struction of the original valuation and In his last decision held the valuation to be a contract. In reach ing the conclusion that the second valuation was illegal, Judge Clayton wrote an opinion containing more than 2S typewriter pages
 The decision followed the recom- mendation of $. H. Dent, Jr, special master in the investigation, who rendered a report to Judge Clayton several weeks ago in which he held that the original valuation should be maintained. Q State To Appeal.
 Members of the public service commission were not in Montgomery Wednesday evening and could not be advised of the decision. They had already indicated that the case would go to the circuit court of appeals re- gardless Cf the decision as the state would appeal from an unfavorable decision while the gas company would do so if it lost
 Judge Claytons' order follows:
 This cause coming on to be heard and having been submitted upon the exceptions to the masters report and the plea-aiding and the evidence fer final decree, and the matter hay ing been. considered and understood by the court, thereupon, it is ordered, adjudged and decreed by the court:
 1, That the value of the properties of the Mobile Gas company as of De- cember 31, 1921, has been definitely fixed for future rate making pur- poses by contract entered into by the state of Alabama, acting by and through the Alabama public service commission, on the one part and the Mobile Gas company, on the other part, and that the defendants in this case and their successors in office, are hereby forever enjoined from at tempting to impair the obligations of this contract by failing or refusing to accept the said valuation as a permanent basis valuation as of De- cember 31, 1921, fer all future rate making purposes.
 Entitled to Per Cent.
 2. Also, that the tariff of rates es- tablished by the Alabama public service commission by it's order of July 24, 1922, is confiscatory and void; and further that the Mobile Gas company is entitled to earn a net profit of per cent (S per cenD per annum upon 07.520.6S, consisting of $1,969,565. which was established as the permanent basic valuation Of the plaintiffs property as of De- cember 31, 1921 and $37,9556S, which covers additions to property from December 31, 1921, to December 31, 1922, and that in ascertaining said net profit the plaintiff must be al lowed a depreciation reserve of 21z per cent (21z per cent) upon the value of the property, and a further credit of $25,000, amortiZed over a period Cf five years, on account of the expenses incurred in resisting the enforcement of said confiscatory tariff of rates; and also to a fur ther credit of $27,025.77, amortizing g over period of five years, being losses imposed upon the plaintiff be- tween August 12, 1920, and Novem- Der 1, 1920 by reason of the refusal of the Alabama public service ctm- mission to permit the operation of a schedule of rates filed by the plain tiff on August 12, 1920.
 8. That defendants, Andrew G. Pat terson, Fitzhugh Lee and Frank P. i Morgan and their successors in of- | flee, as members of the Alabama public service commission be and they are hereby forever enjCined from enforcing or attempting to en- force the said tariff~~of rates pro- mulgated by the order of the Ala bama public service commission of July 24, 1922, or from establishing or attempting to enforce any other tariff of rates which is insufficient tc produce a return of per cent (S per cenD per annum upon the then value of the plaintiffs properties ffs1 in hn H ice, assuming as a basic valuation of said company's property on Decem Der 31, 1929, the sum of SHOOT 520.6S. The court reserves the power to modify said injunction at any time when, by reason of changed condi- tions, any tariff of rates, the estab- lishment and enforcement Of which is hereby forbidden, may become compensatory.
 Forever EnjOined.
 1. Also, that the defendants. and their successors in office, are hereby forever enjoined from compelling or attempting to compel the plaintiff to submit it's properties, books docu- ments, accounts and vouchers, tC ex- animation by the Alabama public service commission or it's represen- tatives for the purpose of repudiat- ing or in any wise impairing the valuation of the plaintiffs properties as of December 31, 1921, as a basic valuation for future rate making purposes.
 5. Also that a writ of permanent injunction issue from this court in accordance with this decree.
 6. The exceptions to the report of the special master are hereby over ruled, and the said report is hereby approved and confirmed.