Montana labor news., 1936-06-04
The Rape Of The
Niagara Of the West

cessor pays the full cost of the pro-
ject, as determined by the filed re-
ports.
1t IS a fact apparent on the face of
the lease that the two power compan-
les are owned by the same people. Mr..
J. J. Ryan signed as president Of the
Rocky, Stilman as Secretary OF the
Montana Power Co. 1t is well known
that Ryan was at the time the leading
mar in the Montana Power at the
time this contract was made Just six
years ago. The prepermit costs we're
attempted to be padded by nearly 100
per cent. What will the two COM
panies Gin name) do when they buy
and sell to themselves?
Observe further that these two COM
panies are Incorporated under the laws
OF states adjoining New York. Ac-
cording to a financial report filed in
the office Of the Secretary Of State,
Of Montana on March 18th, 1886 the
Rocky Mountain owed over 100000
necessarily to the Montana Power by
the terms of the contract and $4,000
delinquent taxes. The value OF the
headworks and residences built by the
Rocky Mountain has deprecated SO
that it is apparent the company is
bankrupt. Its resident agent as is requi-
red by law is Dan Kelly, (the manager
of the Anaconda Copper Mining Coz.
If suit is filed by the creditors of the
Rocky Mountain, Kelly's agency can
be withdrawn as was done when the
Hauser Lake Dam went out, and in
such case any laborer with wages un-
paid or person injured can have no
redress in the courts of the State of
Montana. The interest on the two
million dollars Indebtedness must also
include interest accrued during the
last four years OF inaction. Will the
federal government make a new con
tract involving millions OF dollars with
a bankrupt corporation thousands of
miles from its immovable property
A corporation that was found to have
padded its claimed capital costs to the
extent OF $85,O00!O0 at the start.
Every lawyer knows the disadvan-
tages Of trying to recover from a for
eign corporation. No corporation
should be allowed to operate power
plants in Montana unless it be incor-
porated under the laws of Montana.
Tax evasions are more frequent and
more possible by foreign corporations.
| have practiced law in the courts Of
Minnesota and Montana for ever forty
years. This is the most cunningly
drawn contract to permit and cover
fraud Of any contract | ever read or
heard about. A company without the
investment Of a dollar is to collect 8
per cent on a capital investment of
another company of millions of dollars
that the cost may be passed on through
a brother company Cf not the same
company to the consuming public. The
profiting company gets a very valuable
lease though a bankrupt, and passes it
on to an operating company in such
manner as not to bind the operating
company to do anything but at the
same time granting a monopoly to the
operating company for fifty years Of
one Of the best water power sites in
America.
Although the waters in the state (as
these are) were all granted to the state
but we get absolutely nothing out Of
them and the government does not
even consult the people or its admin
istrative or officers before leasing
these waters involving millions OF dol
lars, Indeed the corporate newspapers
OF the state are seemingly SURPRISING
the information OF the proposed new
lease at the behest Of the companies
involved.
Unless we protest loud and viger-
ously and in numbers this ultra val
liable lease OF our rights will be lost
or at least we will be forced to defend
our rights in outside courts. Wire or
air mail our Washington delegation.
If this goes through your children
and your grandchildren will pay the
price. Do your duty.
w. B. SANDS.