The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1929-03-01
POWER TAXATION
From The Montana Free Press)

A. u,oo+ino Of the house committee on taxation
d ro,onue at the Placer Hotel Monday night United
States District Attorney Wellington d. RANKIN drove
home the principle that the Montana POWER Company
and other hydro electric power companies IN Mohea@
ro ino water power natural resource belonging TO
the people, and hence should pay license 'aA Oh INC
e of electric power provided for by the state constr
tuition He read statistics to the committee showing
that eighteen states including of the most con-
sentative impose such taxes on hydro-eectrc power
companies He also told the committee that, whetner
the legislature should pass such tax law or not
the people eventually will impose it, because OF It's IN
nate Justice and equity and the constitutional warrant
for it.
Frank G. Edwards of Helena pointed out that gov
eminent engineers estimate that the cost OF power per
klwatt production at the Boulder dam will be less
than $780, while the sale of it at one cent per hour
brings in $7 as against that COST and at 10 cents the
returns are S870 He said that productive property is
taxable on its physical and intangible value and non
W REsd g shd rs angBa Valuation 8O
OOO making the $51 100000 which constitutes its total
value But he added at the state tax boards office
he found the property had been given valuation of
S9SOO0OOO and he thought the committee should in
oure into that matter and discover on what ground IL
stands The Montana Power company sold out a year
ago to the American Light and Power Company for
s8SOOOOOO, as announced in the newspapers.
Sam W. Teagarden addressed the committee on the
subject of the Montana grain farmers ability to pay
taxes and made it clear that more taxes could IN
fairness be levied upon the farmers. number OF
other speakers addressed the committee Protests Dy
representatives of steam power companies met by
the statement by Mr. Rankin that Representative Ben
iamn author of the bill to tax the hydroelectric power
companies had agreed to elimination of steam power
companies from its purvew, since they were not tax
ing natural resource of the state in water power bu
manufactured their power from COAL
The principal opponents of the bill Frank Ker
of the Montana Power company, Dan Kelly of the An
aconda Copper Mining companys legal staff and legls
lative lobbyist, Attorney w. NJ Bickford of Missoula
Attorney M. S. Gum of Helena, Attorney E. G. Too
mey of Helena who spoke for steam power company
J. W. Walker, former member of the state tax board
and some others.
Their main contentious were that the Montana Pow
er company and other hydro-eectric POWER companie
of the state paying enough taxes; that instead o
taxing these concerns, the state should aid in buidin
them up that, if the taxes these companies to
low the way to remedy that is to have the state
board raise their assessments that steam power con
panies are small and having struggle; that the Nor
tana Power company is already taxed too much; thu
the hydro-eectric power company at Missoua consent
to be assessed than its physical value becaus
Rava county needs the taxes; that eastern compani
afford to pay taxes than those of Montan
because they serve more people in city block tina
the Montana companies serve in whole town.
Answering of these arguments, Mr.. Edward
said that forty years ago the state urged to e
courage industries by letting them go untaxed an
that the same argument probably will be made II
years hence, and Mr.. Rankin read a letter from o
valid Garrison Willard editor of The Nation viii,
said that the Montana Power company, through its r
cent sale, had become part of the gigantic hydro-ele
trio trust of America AS part of Mr. Kelly's arg
men he belttled the state debt of 100000 as not
ing compared to the total taxable wealth of the stat
and said debt of half billion should not worry Mo
tana people.
The state tax commission not present; at lea
there was not cheep from any of its members
tax commission should be such job. 1t should ha
been there with authoritative facts and figures VIII
is the good of tax board that fails to function
Montanas tax board at present is worse than nothir
The hearing, whatever effect it had upon the legis
tive committee or members of the legislature prese
should convince the legislators of one thing-that I
lcksons tax commission is absolutely worthless in
present emergency.