Montana labor news., 1944-12-28

pany. a mining company and to the 10
cal utility operating in Great Falls. Butte
Electric was the principal retailer Of
electric energy and operated in Butte
and other communities. It owned sew
eral water power sites and developments
on the Madison river, the most impor-
tant Of which was the Hebgen reservoir.
The United Missouri company owned
several hydroelectric sites and deveolp-
ments on the Missouri river and solo
large amounts Of power to Anaconda
Copper company. It also had lines into
Butte which could readily be used to
serve the retail market there and United
Missouri was casting covetous glances at
that market
Butte Electric" said Goldberg, feared
this competition and believed that an
alliance with John D. Ryan would en-
able it to fight off an invasion Of its
market, because Ryan, as director and
president Of Anaconda, as vel as man
aging director Of Anaconda's parent,
Amalgamated Copper company, was rec
ognized as occupying a dominant posi-
ton in the state. The evidence" he
said. SHOW" it was conceded by Butte
Electric that Ryan and the copper COM
pany we're supreme in the vicinity and
fully able TO carry out any program
they saw fit.
Butte Eelectric achieved what it was
after in 1906 when it entered into part
nership with Ryan in the ownership and
operation Of the electric and railway
utilities in Great Falls. The ownership
was placed in a company known as
Great Falls Electric Properties and
Ryan and his associates managed the
properties.
THAT was the situataion up to 1908.
In that year. a catastrophe hit the Unit
ed Missouri company. It's Hauser Lake
dam was washed out and the bulk OF
the power supply for the mines went
with it, The mines we're required to
rely upon more expensive steam power
This was Ryans opportunity. After he
had secured power contracts from the
mining companies to serve the mines for
their life, he purchased the stock OF
Great Falls Power and Townsite COM
many from James j. Hill for Sl,5000OO.
Thereafter, as the result Of negotiations,
Butte Electric purchased so per cent Of
the stock from Ryan and his associates
in 1909 for s2,5OOOO par value Of Sc
curities and bonds. with that sale, Ryan
financed his purchase Of the sites and
was out Of pocket nothing; he secured
financial assistance from uBtte Electric
for further developments; obtained the
assistance of experienced public utility
men. and became the largest stockholder
of Butte Electric as well as q member
of the board Of directors and Of the eX-
ecutive committee.
IN 1910 Ryan and his partners formed
Great Falls Power company and Great
Falls Townsite company. All Of the
power assets were transferred to Great
Falls Power company and in the process
they wrote up the property again. From
1910 on Butte Electric and the Great
Falls system operated under common
MANAGEMENT and were interconnected.
IN 1912 Butte Electric purchased the
United Missouri company which was in
Ireceivership, and Ryan purchased the
Thompson Falls and Missoula power
sites from the Chicago, Milwaukee & st.
Paul railway for 100000. These he
turned in to the Thompson Falls Power
company which he had organized for
that purpose, for S5,oOO,O0o.
"On February II, 1913, a contract was
executed by which Ryan was to receive
l175.OOO shares Of Montana Power COM
pany stock and $4,000 shares Of Mon
tana's preferred for the half interest
which Ryan then owned in Great Falls
Power and Townsite company the frsi
half interest Of which he had sold Il