The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1930-03-14
FRIDAY, MARCH ID, 1880


ONE BUSINESS MAKES MONEY
Sen. Lynn ]. Frazier of North Dakota mailed
the Producers News special marked copy of the
Congressional record for Friday, February 28th,
containing some very Illuminating information rel
ative to the profits of the Montana Power Com
pany, and the power trust in general, which every
reader of the Farmers paper will be interested in
studying
The article read into the records by Sen.
Sheppard of Texas: it is the radio speech delivered
the night before by Sen Black of Alabama on the
"Power Trust"
The opening paragraph states:
In this day of unemployment, languish-
ing business, and depressed agriculture,
information revealed by the Federal Trade
Commission shows that industry in
this Nation marches steadily forward
with ever-increasing dividends and pro-
fits. This is the power business, general
ly designated the Power Trust
Then Sem Black continued with the following
remarks, very interesting and especially enlight-
ening to Montana people:
For instance, the Federal Trade Com
missiCn dischOses that for every dollar
taken from the consumer of electricity by
the Montana Power Co., SO cents
available for interest profit and surplus.
Power stocks mount higher and higher.
Special groups known power million
aires are created as III by magic. CaSn
amounting to $1,50O,00O invested in pow
er stock in 1906 pays dividends of $12,-
100000 in % years time, and that same
stock now has book value of $45,OOO,-
OOO
Another company, formed as holding
company in April, 1926, with $S50O,OOO
common stock, to-day shows this same
stock its books to be valued at $780,
600. The customers of this power
company are supposed to pay price for
it's electricity sufficient to pay dividends
on this book value. HEARINGS BE-
FORE THE FEDERAL POWER COM
MISSION ALSO SHOW THAT OUT OF
EVERY $48.2O PER HORSEPOWER
YEAR PAID BY THE CUSTOMERS OF
THE MONTANA POWER CO., $SO.56 OF
THIS AMOUNT WAS AVAILABLE TO
THE COMPANY FOR PROFITS AND
INTEREST.
After disclosing the above sensational facts,
Sen. Black continues
These amazing revelations have caused
people to wonder why this particular line
of business activity should roll torrents of
gold into the laps of the promoters of
hydrOeectric power developments. Farm
ers' homes are weighted down by mort
cages. Manufacturing enterprises re-
strcting production Labor organizations
announce extraordinary unemployment.
Merchants stand upon the verge of bank
ruptcy. The question naturally arises as
to whether not it is in accordance with
natural economic laws that such enormous
profits should be reaped from pOwer-cOm-
pany investments in contrast to general
business conditions.
The farmers of Montana should be especially
interested in the statements of Sen. Black. Out
of every $4820 per horsepower year collected by
the Montana Power Company from it's customers,
$3056 is profit and interest. 1t cost the Montana
Power company to produce that horsepower year
$1764. This paid for all labor, accounting, man
agement repairs requirements, political contribu-
tons, attorneys and taxes leaves $3O56 available
for interest on bonds and dividends stock: for
cry dollar of cost of operatin, nearly So for in
terest and dividends.
How would the farmers of Montana like a
graft like this? Just think of It'll For every
dollar of cost in farming operations, two dollars
in returns, available to pay interest, provide
money for paying off mortgages and the rest for
dividends after liberal allowance for salary for
the farmer had been figured in the costsl Wouldn't
that be fine?
Is there any wonder that the power boys are
for Hoover, and Hoover prosperity?
Hoover prosperity is real thing to them.
And remember when you pay your taxes next
fall, that this Montana Power Company is also
cheating on its taxes. That it don't pay one-halt
what it should pay, and that the taxes that it does
not pay made up by you.
The people who own the power plants don't be-
leve that the government should stabilize prices
for farm products. Neither does Mr.. Hoover
They believe in more business in government
and less government in business Why shouldn't
they?
During the very years when $15OO,000 invested
in power stock paid s12,5OO,OOO in dividends, and
gained book value of $45,OOO,OO0, the farmers of
America have gone broke, and the book value of
their farms have decreased by two-thirds
That is what ails America today.
But what are we going to do about it?
FARM POPULATION DECREASES