The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1936-06-12
RAPE OF NIAGARA
CONTINUED from Page u

|
Power company for a period Of
fifty years. The rental was to be.
gin at $1,000 per month and grad
uallv increased. The work was to
be started within the year and be
| pressed to completion diligently.
The work was started in 1881 but
abandoned about year later. The
lease was forfeited but there is a
proposal now to renew the lease
and commence work again and it
is reported the renewal is about to
be granted.
At the letting of the contract six
years or more ago Walter Wheeler
prominent engineer of Minneapo-
lis, Mimi, bid for the lease (the
proposed terms were very favor
able to the U. S. but the Rocky
Mountain Co. was the successful
bidder. This latter company
claimed an advance payment of
$4,000 as promotion charges.
The promotion charges included
large expenditures for liquor used
in Indian feasts and other charges
of like kind. About $4,000 was
finally eliminated from the pre-
lease costs, leaving a net of
about $4,000 as legitimate charge
against the project. The Rocky
Mountain company now claims a
capital investment of over $1,000
600, but the various items of ex-
penditure are not available. No
detailed statement is on file in
the capitol at Helena.
The lease or permit is long and
very wordy as it was intended to
be. Many words conceal thought.
The meat of the contract when fl
nally dug up, is about as follows:
The Rocky Mountain Power Co.
is incorporated under the laws of !
Delaware for a capital stock of |
S25, 900. 1t is agreed that the Mon
lana Power Company, New Jer-
5ey corporation operating most of
the power lines and power pro-
ects in Montana shall FURNISH !
The MONEY as requested by the
Rocky Mountain company at inter-
est not named, to build the pro-
ect taking mortgage SECURITY
IN ALL THE PROPERTY. The
Montana Power Company shall
lave an option to buy all or any
'art of the electricity generated
except certain uni1nportant speci-
led power to be delivered to the
ndians), shall pay to the Rocky
Mountain THE COST OF OPERA
ION, THE TAXES, THE INTER
Isl, THE RENT PAID THE u.
}. AND 8 PER CENT ON THE y
INVESTMENT. OBJ |
erye that by juggling the figures {
this way the interest on the in !
estment is paid and a second s
barge of 8 per cent on the capital I
1vestment is paid by the Montana [
over Company which in turn is Y
assed on over to the consumer. U
he Rocky Mountain Co. makes a a
lear 8 per cent on the investment t
nd it has not over $25OO.OO in g
ested. Some finance. The inter t
st, that is the rate of interest is h
etermlned by the two power COM n
anleS between themselves and the Il
gher the rate of interest the more u
le consumer pays for his cleo b.
1clty. Detailed reports NAV dis IL
ose the rate of interest charged. n
IL available records are filed not IL
carer than Washington. CT
The machinery purchased RI N
Iulp the plant and other equip OF
ent charges are reported to the b,
'vernment and considered when b,
e plant or any unit is finished. p
ne longer the delay the greater
'portunity to pad the cost. In n;
rest is paid on any cost padded W,
ID real, annually and the 8 per fir
MT capital investment each wear re
the end Of the fifty year term D,
e successor pays the FILL, IN
)ST of the project as determined M
the filed reports. In
1t is apparent on the face of The re
use that the two power COM wI
mes are owned by the same peo- co
e. Mr.. }. J. Ryan signed as m,
Of the Rocky Mountain &C
q Stlllman as secretary of The &c a..
Ontana Power Co. It is we'll -
own Ehat Ryan was at the time
~ leading man in both companies m.
the time this contract was made CT
y SIX years ago. The preper- a.
! costs were attempted to he ~,
uued by nearly 100 per cent M M
lat Will the two companies lin nc 10
mel do when +ho,x N 20
themselves? u SCH Oe
0fhco..-.- Xxx