The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1935-06-06
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National Topics Interpreted "a fTM7T1I{
by William Bruckart kn<H
BY William Bruckart

sC1iettSSS dS d ISScIFc lOl uCPlCCid-
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Assuming a very conservative
rate of valuation consumption for
example, per cent, the amount Of
depreciation, based upon the value
at which the properties In question
were capitalized by the authority,
would be approximately $1,000,00
per annum Il. Eth. .5.
"a larger revenue will proper
tionately increase the reserve for
depreciation at the present 10 per
cent method of amortization, but
to accumulate a reserve on the 10
per cent plan equivalent to the
amount that would be charged to
depreciation on valuation basis
at 2 per cent, the gross revenue
would have to be more than ten
times the present amount of about
$4,000, 900 per annun1.
There is very little basis for as
Stunning that revenues will ever
reach that figure" Lilo
Much to Criticise
The comptroller's report touched
on many phases of iva affairs
which he found subject to criticism
and he made mention Of q factor
that, it seems to me, ought to be
of vital Importance to communities
thruout the country. That factor
is taxation. It Is to be remember
ed that government agencies, fed
eral, national, state or local, pay
no taxes into the treasury of its
Jurisdiction. Consequently, the
government which fosters q NUM-
cipally owned power plant simply
must not forget, for taxation pur-
poses, that such property exists
within its domain. Likewise, such
a plant is not required to consider
interests on the investment in the
shape of dividends to the stockhold-
ers who, in turn, pay taxes on their
income.
Doctor Morgan and other direc-
tors Of the iva were subjected to
questioning of q type about as Sc
we're as any witnesses before q !
house committee In recent months.
They had friends on the committee
who attempted continuously to 4
shield them from the fire If iva
opponents, but apparently Chair
nan MCSWain was unable tc ;fpke
off the attack by such men as Rep.
Mclean of New Jersey
md others who doubt the advisable
ty Of the federal government en-
raging In power production.
There appeared just no way az
Ill In which friendly members OF
he house committee could JUSTIFY
he action Of the iva board In
is attempts to block private power
It was shown IN the
of the hearing that iva
aad gone far away from its base
If operation to buy two small par
.els of land-one not much larger |
han city block and the other on !,
y a few acres In extent. Under |
iva directors admit
ed this land lay in the middle OF a
reservoir planned by q
private power corporation. In &C
Iuiring parcels of land the IVA
made it impossible for the private
interests to proceed with their pow
n development because the land IN
question would have been in the
middle Of the reservoir 800 feet UNI
Ter wataer. The private interests |
,ould not force the iva to sell and
without that land the whole reser-
1oir program was destroyed.
Playing the Game
Politics is politics and apparent
y politicians will play the game al
ways. If better proof be needed,
It seems to me the demonstration
over the immediate payment of
the cash bonus to war veterans
will suffice. The bonus has been
licked for this session of congress
but all indications point to q be-
lief that the country may not be so
lucky in the next session Of con-
gress which is not far ahead Of the
1896 elections.
An organized minority, the World
War veterans were very close to