The people's voice. [volume] (Helena, Mont.) 1939-1969, 1944-04-14
Highly Technical


In the reports company daily press the
hearing being held in Butte the wreups and other
infationary features the Power Companys
counts often notices that in describing the questioning of
certain witnesses the procedure described highly
technical be taken for granted that in each of such
questioning tendency bring
information that favorable the companys defense
The public should realize that not the of the
Federal Power Commission to eopardze the investment
preferred stock bondhoders the Montana Power Co.
The commission challenge actual valuation of the
Montana Power Companv's plant it challenges only the
exorban fictitious values carried its accounts in the form
of stock paid profits its organizers AS matter
fact the preferred stockholders not have their interests
represented at the hearing their stock ownership constitutes
first lien mortgage on the actual plant.
Only instance of the in which industrial
robber baron operate to enrich themselves and rob the
public by stock deals need be cited the deal made in the
Great Falls Water Power and Townste Company property of
John Ryan and his fellow punderer They purchased all of
the companys outstanding stock for about million and half
dollars Then they sold half interest in the the
Butte Electric and Power Company for $150000 cash and
S35OOOO in bonds which in effect first mortgage on
the entire Butte companys properties and plant But in
addition that they also received 600 stock
in the Butte Thus this left Ryan and his fellow
craftsmen with the remaining half of the Great Falls Water
Power and Townsite Company costing them nothing and with
million dollars worth of the Butte companys stock
costing them nothing But this still not enough to satisfy
the punderbund The Montana Power Company then
organized and for each share of the million dollars of common
stock of the Butte Electric and Power Company held by Ryan
and his associates they given four shares of the Montana
Power Company common stock
Later let us emphasize Ryan and his transferred
the remaining half of the Great Falls Water Power and Town
Company Montana Company for 5000000
preferred stock re of $17500 900 common
stock So just that deal alone which Ryan and his fellow
legal bandits had paid out about 000 they made profit
of $23, 100000.
Involved in the organization of the Montana Power Co.
other properties Thompson Falls properties Madi
River Power Company Billings and Eastern Montana
Company and the Missouri River Electric and Power
Companyand in the transactions transferring them to the
Montana Power Company we're inflated profits distributed to
the chosen few in the form of common stock.
Highly technical isn't it? And the robber barons
smart weren't they? Yes must admit that they much
than the Montana who have been
tribute the form of excessive rates basis of inflated
valuations for 80 years. and to the original companies for
longer than that And apparently kng it at least doing
nothing about it. For several sessions of the Montana leg
ature the majority of its members turned thumbs down
efforts by liberal minority compel the to
pay the valuation used for fixing its the
introduced proposing that sensible thing Mrs
Martin of Fergus county Glib 27O 1t defeated by vote
So against and 38 for its enactment But apparently the
constituents of the So who voted against their interests did not
their misrepresentation to appreciate extent
We convinced that the charges of inflated values to
the extent of than 900 the Montana Power
Company accounts made by the Federal Power Commission
and that they will be verified by the records and
the will hold that these amounts should be
written off, The final order for proportonate reduction in
charged by the will then be to the Montana
Railroad and Public Service Commission. Will Public
Service Commission issue that order will it favor the
company the public? They elective officers Watch
how they perform.
incidentally, member to be elected this year 1t
would be wise to get the candidate to commit himself this
before for him. 1t might expensive to
YOU if you don't Or is that too 'highly technical? Il