The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1921-03-31
: TELEPHONE AND POWER CON-
PANIES UNDER FIRE

People who have opinions about
the behavior of corporations such as
the Mountain States Telephone com
pany and the Idaho Power company;
people who wish to say things in the
next political campaign regarding the
soulless corporations; people who
want to make statements as to how
these companies ought to act and
those who wish to express opinions
about how their rates should be fixed
or regulated, ought to be willing to
take the present opportunity to work
on the subject and get information SO
they may speak intelligently.
The Mountain States Telephone
company asked for raises of rates
during the war and they were
granted. In order to do this they
had to show the total of their physi-
Cal valuation so that rate fixing
bodies should know what their cap
italization of the works and service
were based on. This brought up the
subject of taxation and the Mountain
States Telephone company has made
a pretty good case against the state
on the grounds that the state has
taxed them 100 cents on the dollar
while 1t has taxed other property at
various percentages from 100 per
cent down to l per cent, the bulk of
, 1t being about 80 or 35 per cent.
So long as the state taxes the tele
phone company on a higher percent
age OF assessment than it does other
property, it stands convicted of dis
crlmlnation and cannot send its
representatives to sit down on a rate |
nx1ng problem, with clean hands.
1t will be interesting to investigate
and see what is the actual physical
valuation of the Idaho Power com
pany based on the equipment and
property that has an actual value and
material existence. 1t will be in
terestlng to pursue the study and see
how they are assessed on their prop
erty, whether 100 per cent or 80 per
cent OF its true value. So long as
they Keep fixing rates for service on
valuation that does not correspond
with the valuation fixed on other
property in the state, there can be
no Just and permanent settlement of
rate problems nor of tax problems.
The claim is made by men who at
tended the recent convention to st,1dv
the power question that transformers
ana other, pieces of equipment have
been found that were inventoried by
the power company at their full cash
value at the time they were nur-
but were absolutely obsolete 6
and useless. A committee working :
IN that line of Investigations claims
% nave found about $4,000 worth of
'ronerty per day in Boise that was
'bsolete, but carried on the physical
'aluatlon at full price. They pointed
ut 10 the convention that if n til
!milar condition existed at all their al
lants scattered over the state, that ia
hey were asking for rates that of
'ould give them returns on the prop w,
l'ty that does not exist. Whether ur
he committee told the truth or not m,
7 making that statement, or mere err
ne talk, is good thing for people NJ;
ma out now. Idle gossipers and cit
can very easily sit around crt
stand around and make rash state Pc
ents f9r the consideration of the an
lbllc, but men who really have the iaI
elfare OF the public at heart and lat
no wish to do justice to people who
e carrying heavy Investments in ~ .
re state ard furnishing very es- tiU
ntlal service, have a golden oppor dis
hity 10 get into the study Of all me
~, -. u ana Lo'IoW II Ma
fu SO that they may sneak intoIi
'ntly and truthfully when thew
eFF. I'M IS nc time r agitatorsto
u, this IS time FIR men to study rep
ID to work 50 that their words when 9th
tered shall have a meaning at the by
ne they are uttered and one year Boi
d ten years afterwards. People day
10 are buying electric light and sen
ectrlc power would like to know and
truth of the situation regarding
Investments and the management ser,
these companies and if their bust side
SIS is fairly and properly conducted. of
rank and file of the public would not
e to make some investments in rate
ar stock and help them deyelop util
eir lines and their service. It is tra1
such cooperation that a great teri
te must be built up mot by fight BILE
among ourselves and allowing pait
class to impose upon another. "
elsewhere in this edition we will Won
olish a report of the convention of tba,
egates that met at Boise recently =
study the power question to form 80
ornament organization to continue y.
study. Their report is adverse "n
the power company so far as they I
'e gone, but we know enough war
'ut public records and the records nave
people conducting large operations Z
know that no committee can sit 4
Vn for two or three days and learn rais'
thing definite and decisive about divi'
n matters. 1t takes weeks and does
nths to 60 into such records and tang
I've at conclusions that are worth e
lle.- cial