The Birmingham age-herald., 1923-03-28
CAS COMPANY WILL. FIGHT VALUATION
 UNTIL LAST NOTCH.
Service Commission Wants Federal Order to Examine
 All Records
STARE CAPITAL BUREAU ]
 THE AGE-HERALD MOntROmerY. Ala. March 27 1

Acting on the written declaration pc continued in the federal court, the light against the valuation of s1,7OO,- ooo on its gas property in Mobile will federal court, the public service com mission Tuesday filed with s. II Dent, Jr., special master in the inves- llgation, motion for an order re- curing the Mobile Gas company to produce all books and records indI- eating the cost of it's property within the jurisdiction of the federal cour. and to permit engineers and account ants of the public service commission to- make such investigations as they may see fit.
 The motion was filed by Hugh White. special assistant attorney gen. eral. It is alleged that the Mobile Gas company had never produced it's books and records showing the his torical cost of it's property, although the law giving the commission the right to make a valuation provides that historical cost. shall be consd- cred and that although the company IS about to bring to an end its case in the federal court, seeking per- manent injunction against the rates ordered by the commission, it had not offered to show the historical cost of it's property.
 Records In Chicago.
 The commission alleged that many of the books and records of the com pany are now without the jurisdic- tion of the federal court of Alabama. being held in the companys main of flee at Chicago, and that it Is neces- sary that the order be issued reQuir- ing the production of the records Tn Alabasna.
 In asking the order for the produc- tion of the books, the commission n stated that the evidence of books will be important in the defense oi the original order of the commission establishing valuation and requir- ing the company to establish a shced- ule of rates based on this valuation and that the evidence cannot be ob- tained in any other way than in an inspection of the books and recor is which have never been produced for inspection.
 that it sent representatives to Mobile for the purpose of making an exami- nation of the books and records showing the historical cost of the property and that the representatives were denied the right to make the inspection. It urged the special mas- tr to order the company to keep it's books and records within the juris- diction of the federal court for a period of at least three months and to give the commission the right to make it's inspections under such rules and regulations as might be pre- scribed by the special master.
 Gas Company Hustles Up.
 Simultaneously with the filing ol the motion before Special Master Dent, 1t became known that the Mo bile Gas company. through Harry T. Smith and Caffey, general counsel had notified the commission that there would be no compromise whicf would not recognize a valuation o1 Sl.969565. the original valuation fixec by the commission. This valuation was withdrawn on hearing and the commission fixed the new valuation at s1,70O,000. The rates based on this new valuation are now being resisted in the federal court.
 The letter of the general counsel of the Mobile Gas company informing the commission that there would be no compromise as long as the revised valuation stood, follows:
 AS we have frequently explained the Mobile Gas company looks upon the preservation of it's contractural right to a basic valuation of $1,969, 565 as value. It believes that any further valuation would be in excess of this amount, but as such revalua- tion would be based upon the theory that the state is no wise bound by the fact that it's valuation should form perma nent basis for rate mak- ing purposes, 1t would be of no value whatever to the utility. This com pany is compelled. therefore, to pro- tect its constitutional right againsJ the inspirement of its contract and cannot voluntarily submit such a revolution of it's property as you propose. "HuntinE For Testimony"
 "The result is. that according tc this companys view. any sweeping re-examination of this company's rec ords and properties such as you pro- pose could be useful only for the purpose of hunting for testimony lr the litigation pending, to which this company cannot consent
 Until therefore the commission concludes to set aside it's valuation ol $1,700.000 and to allow the valuation of s1.969,565 to stand, we must con tinue to seek relief through the courts. If on the other hand. the Commission should decide to set aside it's orders of March 22, 1922, and July 24, 1922 the matter Jof rates can doubtless be agreed upon. Both our cli.ntSand ourselves regret that we