The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-12-21
M'KELLAR PARTLY RIGHT

Senator McKellar's charge that the Ala
bama Public Service Commission grants
unduly high rates to the Alabama Power
Company undoubtedly contains a germ
of truth, but very improperly and un-
justly places the blame upon the Ala
bama commission. The people of Ala
bama remember how narrowly they es-
capped paying rates at least thirty per
cent. higher than those now prevailing.
The people remember how the Power
Company almost succeeded in obtaining
from the former state commission much
higher valuation based not on the items
specifically required by law to form the
basis of such valuations for rate-making
purposes, but based on purely nominal
figure having no proportionate relation to
such items. The company sought in
every way to evade an examination of its
books, and the valuation now existing
was arrived at by a compromise rather
than by exact calculation.
This result was not due to lack of de-
sire on the part of the present commits
sion to determine equitably the proper
valuation, but was due to the commits
sions lack Of adequate auditing force
properly to examine the company's bust
ness. The last legislature, under the in
fluence of Governor Brandon, and per-
haps also of the Power Company, refused
to grant the commission that appropria-
ton necessary to employ an auditing
force of the requisite ability and num-
bers to inquire into the cost of utility
operations in this state. There is only
one organization in Alabama that knows
how much it costs to produce power in
this state, and that organization is the
Alabama Power Company. Needless to
say, the company will never tell of its
own volition.
Meanwhile, the affairs OF the company
flourish like the green bay tree, only
more so. Everybody desires that the
company shall prosper. 1t is to the pub
lie advantage that it shall prosper. But
there is strong reason to believe that it is
profiting unduly out of its present abil
ity to escape that careful and capable
examination that the public welfare re-
quires There is suspicion that the COM
pany enjoys unknown and considerable
items in it's appraisal that are direct
and an unjustified tax upon the consum-
sumers of hydro-electric current in Ala
bama, and that the very cost of its OPP
erations is under present circumstances
a sealed book to the state commission.
The commission, at the last session of
the legislature, applied for an adequate
and competent auditing force, not COM
parable with the auditing force main
tanned by even one large utility in this
state, but regarded as sufficient to pro-
tect the public interest. This force
asked for was to match itself against
the wits and talents of those in the en-
ploy of certain utilities and fighting to
prevent that thorough inspection of rec
ords and arrival at fair valuation con-
templated by law. By this shortsighted
policy of refusing the force asked for,
the governor and the legislature of Ala
bama have doubtless cost the people of
this state annually many, many times
the sum saved by the refusal. 1t is per-
tinent to remember that the Public
Service Commission was given no hear
ing on this important item of auditing
appropriation, but the application was
summarfly denied by the legislature,
Senator Mcclellan is probably right in
his statement as to power rates in Ala
bama being much higher than they should
be. But he unjustly places the blame
upon the state commission instead of
upon Governor Brandon and the legis
lature which nullified the commissions
plan to find out just how much it really
costs to produce power in this state.