Montana labor news., 1944-05-04
H. Y OF LEGAL
TALENT REPRESENTS
POWER COMPANY

and the Montana Railway and Public
Service Commission, the Montana Power
Company has representing them a large
array of legal talent, while the Federal
Power Commission has representing
them but two attorneys, and the State
Railroad and Public Service Commission
but one.
Heading the list for the Company is
R. H. Glover, head of the legal staff of
the Anaconda Copper Mining Company
in Montana; J. E. Corette, Jr, resident
counsel for the Montana Power Com
pany; John c.. Houck of Butte, n of
the Montana Power Company's regular
staff; Kendrick Smith. another the Mon
tana Power Company's regular staff and
a son-in-law of Austin B. Middleton,
chairman Of the State Railway and Pub
lie Service Commission, and A. j. G..
Piest of Rector Street, New York city,
one of the attorneys for the Electric
Bond and Share Company. and the
American Power and Light Company,
large holders of the common stock of
the Montana Power Company.
On the same side as the Company at
torneys in this controversy, but repre-
senting different groups of $500 pre-
ferred stockholders of the Montana
Power Company, are William Meyer and
J. A. Poore of Butte, E. j. Stromness Of
Great Falls, Edmund G.. Toomey Of
Helena, Montana attorney for the Gug-
genheim interests; Howard Toole Of
Missoula, ]. B. C. Knight of Anaconda
and A. F. Lamey of Billings, who is on
nected with a firm that represents many
corporations doing business in the state
of Montana. Representing the Federal
Power Commission are but two attorneys,
Howard Wahrenbrock and Reuben
Goldberg.
Enor Matson who is supposed to be
representing consumers of electrical en-
ergy in the state Of Montana, as attorney
for the State Railroad and Public Serv-
ice Commission. seems to be more con-
,cerned about the welfare Of the Montana
Power Company than he does about the
welfare of the people of the state. The
case is now in its sixth week and today,
Tuesday, May 2, is in the twenty-eighth
day of actual hearings over 375 exhib-
its have been introduced, and the pages
of testimony have grown to more than
1000.
Professor Thomas H. Sanders, an ac-
counting expert witness for the Montana
Power Company, in his testimony stated
that most of his experience had been
related to industrial accounting and
very little with public utilities. When
questioned by Mr.. Goldberg about the
transaction Of the Thompson Falls Power
Sites bought by Mr.. Ryan from the Mil
waukee Railroad Company for $3.50, 600
and Immediately resold for $4,000, 900,
Mr.. Sanders seemed to be of the opinion
that it was all right for the Railroad
Company to sell to one of its directors
for S95O,OOO a property that was worth
SIS, 1000, 900. To a hypothetical question
put by MI. Goldberg, regarding the actual
value of the Thompson Falls Power Sites
($95O.0OO or SIS, OO0, 0O0) Professor Sander
after many objections by Montana Power
Company counsel and intervening coun-
sci answered that the actual value Of
the power sites was $950,OOO mot $780,
600 as claimed by the Montana Power
Company. Mr.. James r. Thomas,
treasurer of the Montana Power Com
pany called as a witness by the Federal
Power Commission stated that he had
been connected with the Montana Power
Company and its predecessors since 1912.
Mr.. Goldberg at this time asked 10
have marked for Identification a letter
date Nov. II, 1886, from j. R. Thomas,
addressed to Dear Mr.. Kerr, on the sta
tionery of the Mayflower Hotel, Washing
ton, D. C..
Mr.. Goldberg asked MI. Thomas if ne
had written that letter and when be
answered he had, MI. Goldberg offered
the letter, exhibit No. 312 in, in evidence,
MI. Corette objected, but the objection
was overruled by Trial Examiner Marsh
and Austin Middleton, chairman of the
State Railroad and Public Service Com
mission, ruled 1T may go in"
On being questioned by Mr.. Goldberg,
Mr.. Thomas stated that he had testified
before the Federal Power Commission in
1886. a hearing in connection with the
proposed r%e-financing Of the Montana
Power Company.
He was then shown exhibit 312 this
letter to Mr.. Kerr wherein he informed
Mr.. Kerr, that "he could not dodge the
admission of the existence Of intangi-
bles' and was asked to explain what he
meant by ~intangibles. He stated he
meant the only kind he knew of, water
rights and water power, but made a very
poor Job of explaining why he would
attempt to dodge the admission Of the
existence of water rights and water
power in the Montana Power Company
setup.
State Railroad Commissioner Paul
Smith and Attorney Arthur Lamey, Of
Billings, who have been absent from the
hearings for about ten days, we're on
the job Monday.
No explanation has been given as to
where they were or what they were do
ing, so it might be safe to assume that
they were in washington, perhaps seek
ing a compromise settlement with the
Federal Power Commission for the Mon
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