The people's voice. [volume] (Helena, Mont.) 1939-1969, 1943-12-17
Fakery


discoveries with electric companies
have been startling to say the least
During year it's research into the
of these companies it found that millions OF dollars We're
expended annually influence public opinion through the
ownership of the employment OF vena educators
to upon the evils and nefcency of public ownership
the writing publishing of so-caled educational material
distributed in the schools of the land paid ministers OF
churches for propaganda other conceivable
form of propaganda private enterprise At the time the
investigation started the general control of all propaganda
was in the hands an organization called the National Electric
Light Association supported by the industry It's activities
were pessy pubczed by the results of the investigation
that its name was changed to the edison Institute
probably performing all of the same functions as It's
of the results of the investigation was passage
an act which supposed eliminate holding companies
However the this still not too noticeable
Montana, local operating company the Mon
ana Power Company controlled by the American
and Light Company which controls group OF western
operating companies The American Power and Light Com
pany together with of other holding
panes owned and controlled by the Electric Bond and Share
Company of New York
from the local operating company by It's owners and
that finally John Public ALL for both service and tribute
to the holding companies Incidentally while has not been
disclosed by any scrutiny of the Montana Power
Company the probability is that included in its operating
paid out to the burden OF the deficits
by control of most of the daily OF the state
the time the natural line from the oil fields to
Mssou Helena and Butte constructed this writer called
the fact that the construction work was done by
the Phoenix Utility Company subsidiary organization set
up by the Electric Bond and Share The construction was on
cost plus At the time investigation showed that
Phoenix Utility Company with only nominal capitaiza
dents who undoubtedly drew salaries which were included
in the costs of construction under the cost plus plan And
the rates for fixed the basis OF costs by the
Public Service Commission the Montana public pays that bill
also.
This year. the Federal Power Commission result of
Investigations by its staff ordered Electric Bond and Share
subsidiaries eliminate 100000 of wrieups in their
valuations which their rates based and another
will be cut out unless proper explanations are
forthcoming
The Federal Commission charged that most of
wre-ups have resulted from fake sales between
panie the Electric Bond and Share SYSTEM resulting in
fictitious values for rate making purposes In the decision OF
the Commission cutting out S2OO0ooOo wrteup IN the
Minnesota Power and Light Company of Duluth
the explains how the bookkeeping transactions
are worked 1t says:
brushing accounting and legal accourements
which the transactions embellshed and viewing
them in their true light recognize familiar practice often
used to write up plant accounts.
Securities or properties first acquired by holding
company They then transferred to operating sub
dary the holding sometimes organized for that
purpose The subsidiary which, needless to controlled
holding company surrenders to it's parent amount
securities Consisting of stock preferred stock
and bonds far exceeding the cost to the holding company
of the properties and securities transferred t
The subsidiary establishes its plant accounts the basis
fictitious value of the securities thus issued and the
parent company the bonds and preferred stock and
recoups public substantially all the investment it
made properties The stock is retained by the
parent with the ultimate result that owns and controls the
subsidiary at little actual cost T
Time and time again efforts have been made in the Mon
pay taxes valuation used for rate making
These attempts have all been in vain we beeve that
high time that thorough investigation be made of this
company and its monopoly practices. e
this company like the railroads in the state
loudly of the tremendous taxes pays when actually
company taxes. The taxes all paid by the
people their services And they also the profits
Recently this companys officials have taken very active
opposing proposed developments of water of
state by Federal Their opposition
welcomed connection with iconceived project How
to find them the forefront we'll be-
lind the opposition construction of ANY dams
the the state because of the threat
which construction of development of public
which it's monopoly Moreover its attitude made
amply clear by the suit which pending the circuit
oo1ar Of To
ro and practical ownership of the waters of the Missouri r.
and by which seeks to deprive the Broadwater county
their of the Missouri waters for irrigation
oses That makes it's attitude toward general public
interest covered by the saying of early profteer
The public be damned
H. I'll &c Da.,I.nn2