The Birmingham age-herald., 1923-03-13
PROPOSAL 0F CAS. COMPANY TURNED
 DOWN BY BOARD
Mobile Concern Is Loser in Fight to Maintain Original
 , Va|uation-Hot Words Pass During Fight
STATE CAPITAL BUREAU
 THE AGE-HERALD
MOntgOmery. Ala. March IF

Mont tgOmery. AiH. Mafch Is The Alab bama pupIlc SerVlce com Emission declined d proposal of the Mobile Gas company for vacation aof the order establishing valuation 'sof S1,70o,000, and the order for tne 'revaluation of the company, property. The proposal of the company was that the original valuation of $1,96o,- 565 be permitted to stand and that the commission and the company en- ter into an informal discussion of the revision of. gas rates in Mobile. The commission insisted that notice of it's dntention to order revaluation should stand, but expressed d willing ness to consider revision of the gas -rates. No final decision was reached and Harry T. smith, gene1a counsel, and R. l. Speer, manager of the gas company, returned to Mobile tonight. They will determine Tuesday whetl CT a formal order for a revaluation shall be issued or whether there shall be a further discussion of the situation with the gas company.
 In a session characterized by bitter words for a few minutes, the Mobile Gas company Monday informed the public service commi ssion that it did not believe the commission had au- thority now to enter in revaluation of the property of the company and that sections of the act giving this authority to the chairman. which was passed at the recent session of the legislature, were violative of the federal and state constitutions.
 Harry l.. Smith, general counsel of the Mobile Gas company, and R. I. Speer, general manager. appeared before the commission in response to the notice that the commission proposed to begin a revaluation of the property, and Mir. Smith chal- lenged the legal right of the com mission to act. contending that the valuation established by the commis- sion several months ago, had be- come final under the law and that there could be no impairment of the contractual obligation entered into by the commission. as the represen tative or agent of the state, and the Mobile Gas company.
 Fireworks start.
 The answer filed by MT. Smith in the formal announcement of re- valuation served by the commission caused the bitter words. In it the Mobile Gas company declined to enter into any discussion of the question: declaring that the commission had already prejudged the case and in the notice had indicated that it pro- posed to change the valuation.
 The answer further charged that the proposal of the commission was like unto the case of the justice of the peace who announced that a cer- tain case then pending would be talk en. under advsement and that a judgment in favor of the plaintiff would be rendered on the following Thursday.
 8s President A. G. Patterson declared fth#t as a mefiber of the commission he resented that charge that the commission had prejudged the case and that it's decision would be in opposition to the contentious of the company He sinssted that the com mission had decided to enter into a revaluation of the property because it did not believe all elements re- quired by law to be considered he'd been considereds when the original valuation was fixed.
 Mr. Smith answered that the mo- tice served on the Mobile Gas com .pany by the commission indicated that the case had been prejudged. Hugh White, counsel for the com Emission, called MT. Smiths attention ito the recent act amending the pub lic utility act, which gives the com mission the right to make a revalua- ,tion and declared that the notice was framed in accordance with the act (which requires the commission to give the utility formal notice "of it's intention" to proceed to revalua- tion.
 o O O
 Smith's Argument.
 Mir. Smith added that he had never read the amendment to the original tact, withdrew his answer which scharged that the commission had pre- Judged the case and had acted like 1.-the justice of the peace, and pro- seeeded into an argument in support sof his contention that the valuation :established by the commission had be- icome final and had created con- !tractural obligation from which the ,commission cannot release itself. With the withdrawal of the an- sswer, Nr. Smith and President Pat A Ea6G =