Montana labor news., 1932-09-08

ital stock, converted into assets upon
which the consumers of electricity in
those western states must pay a re-
turn through all eternity.
"As of December 81, 1880, this
total initiation of ~s94,33O,246 was
equal to all of the book value of
the common stock outstanding
amounting to sac, 0OO, OOO-all of
which was owned by Electric Power
& Light Corporation, and to S4,330,-
246 or 1863 per cent, of the total
book value of the preferred stock out
standing. In previous years, when
the total of the preferred stock out
standing was less the percentage
thereof represented by initiation was
correspondingly greater.
No Cash Investment.
"The Electric Power & Light Cor
poration has no cash investment in
the common stock of the Utah Power
& Light Co. except accumulated
earnings to the amount of ~$4,979,474,
left in the business as surplus.
yet it received-remember, it has
no cash investment in the common
stock of the Utah Power g. Light
Co. except those accumulated earn
ings of less than $4,000, OOO-yet it
received in cash dividends thereon
| $1,000, 900 from 1925 to 1880, in
elusive. In other words, it got nearly
$4,000, 900 more in dividends in five
years than its entire investment in
the property; it received S6,1O0,O0O
in cash dividends on the S30,000,00 0
of common stock, all of which was
water when issued.
"We must not tax a corpora
ton like thatl
ooh, we must take the tax off
that power concern and put it on
the poor fellow in his humble
home, Upon the labOrer, upon the
small business man, scatter it over
and make the consumers pay it,
add this additional burden to the
one who is already ove~rburdened,
but, for Gods sake, do not touch
the corporation that is getting over
six million dollars out Of an invest
ment of nothing on earth but waterl
"In addition the Electric Bond
& Share Co. received S201 900 in cash
commission on the sale of bonds of
Utah Securities Corporation and fees
in cash paid to Electric Bond &
Share Co. and its Incorporated con-
struction department, Phoenix Util-
ity Co., to the amount of $2,974,029
from 1912 to 1880, inclusive. They
received in dividends in five years
&c. 100000 without the investment
of a single cent of cash and in addi-
ton got nearly 100000 in fees
from 1912 to $780,"
These samples of financing are
enough to show that if the Utah
Power & Light Co. were threatened
with bankruptcy the draining off
of money by its controlling interests
would be responsible.
But it appears that, even with
this manipulation of the operating
company for all the direct and indi-
rect profits it can be made to pro-
duce, the Utah Power & Light Co.
has had big profits left.
viii Smoot Tell Us?
We wonder if Senator Reed Smoot
will tell us where he finds any evil
dence of impending bankruptcy of the
power trust.
Does this evidence tend to show
that the great Utah Power g. Light
Co. is SO poor that it cannot and
could not have paid the light tax
that was levied on it by the U. S.
senate?
1t looks as though the only real
fear of the power barons control
ling these Utah properties was
that their W profit might be
reduced.
In other words, what they were
struggling against was further cur
tailment of the million dollars a
year or more they have been taking
out of the Utah Power g. Light
Co. in dividends on common stock,
which is all water, and which never
cost them a single cent.-Utah
Labor News.