The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1931-06-18

DISCUSS VALUE
n v | COMPANY

At an unofficial meeting with
two members of the Board of Co.
unity Commissioners June 15th,.
1881, the Northwestern Improve
ment Company, through its Chief
Clerk and Local Counsel, explain
ed to the Board rumor that has
started concerning the taxable
value of the company properties
in Red Lodge. The information
had first been given out that the
total assessed value of the light
ing plant of the company in Red
Lodge was only S12,000.00, where
as the records show that the as
sessed value is many times that
amount. The S12,060.00 value
represents onlsr the poles, wires
and transformers, ETC., in the City
and does not take into considera-
ton any value whatever upon the
boilers, generator plant or other
equipment which are necessarily
used in maintaining the lighting
system.
The Company officials also poi
nted out that there are at present
four methods of State and County
taxation upon the company prop
erty, namely. An assessed value
of $4,000 per acre on all coal land,
whether used or not; the personal
property tax upon all personal
property of the Company; the pro-
ceeds tax, which, while called net
proceeds, does not compute de-
probation or taxes, or various
other items which must be deduct
ed in determining the net profits,
and in addition there is now the
new five cent tax upon each ton
of coal mined. All of these taxes
are assessed against company
property. They also explain the
ranor that there had been a dis
crepency between the assessed
value and the value fixed by the
Public Service Commission for rate
making by showing that neither
has any direct bearing uopn the
other of these values, as pointed
out by the Supreme Court of the
| United States in the recent Miss,
ouri rate cases.
1t was particularly pointed out
that the public, noting the net
proceeds of the Company upon
which the net proceeds tax is de-
tremined, concluded that this
means net profit to the company.
This is far from the fact for out
of these net proceeds which are
used to determine the net pro-
ceeds tax, and not at all to deter
mine profit, there must be deduct
ed approximately $23,00000 paid
by the Company to. the County as
taxes, and in addition there must
be deducted depreciation on the
plant and equipment, depletion of
various items, interest on the cap
ital investment and the proportion
ate share of the office expense at
Seattle. After deducting these
items there is little comparison
between the net proceeds and net
profits of the company.
The assessed value should be the
cash value, or what the property
would bring if put up at auction
at this time, while the value for
rate making should be the invest
ment actually made by the stock
holders, with reasonable deprecia-
ton.
The representatives of the Com
pany also stated that the books of
the company showed that during
the past three months the Com
pany had been operating at a
loss running into thousands of dol
lars each month and pointed out
that the taxable value reported on
their personal property had not
been reduced beyond the reduced
values caused by closing of part
of the mines and the obsolete
equipment, in fact, the figures
submitted for 1881 assessment are
liberal because of the fact, that
great deal of their machinery that
was in operation last year is now
idle.
The representatives of the Com
pany explained that the explana-
ton was made to the members OF
the Board at this time for the
reason that the rumors started
were unjustifiable from any stand
point, and they requested the Com
mlssioners to investigate the facts
thoroughly if there is any ques-
ton as to their statements. Adv. |