Montana labor news., 1944-04-27
MONTANA POWER COMPANY HEARING
BRINGS OUT STARTLING ANSWERS

The accounting case OF the Montana
Power Company before the Federal
Power Examiner Ed March is now in its
fifth week and the Montana Power Com
pany, which had the burden of going
forward in the first instance, has about
completed putting on its witnesses and
introducing the exhibits, although several
of the company witnesses are still to be
cross-examined by the Federal Power
Commission attorneys.
Attorneys for the $500 preferred stock
holders of the Montana Power Company
put on seven witnesses at Mondays
hearing and another one on Tuesday.
In the first four weeks of the case the
State Railroad Commission attorney,
Enor Matson, had only c-ross-examined
Power Company witnesses for a total Of
about IS minutes. Observers have noted
Commissioner Leonard Young of the
state Railroad Commission occasionally
reading a newspaper on the bench While
accounting and engineering witnesses
were testifying, just as though he were a
tired chauffeur, patiently waiting for
his master.
State Commissioner Paul T. Smith has
not been sitting with the other commits
sioners since last Wednesday and Mr.. A.
F. Lamey of Billings, n of the attor-
neys for the 5000 preferred stockholders,
has also been conspicuous by his absence.
There has been no public explanation
of their absence.
In concluding the cross-examination
of M. Buckley, one Of the expert ac-
counting witnesses for the power COM
pany, Mr.. Goldberg, attorney for the
Federal Power Commission, asked Mr..
Buckley if he had any working papers
in support of his study of the company's
financial affairs, and when Mr.. Buckley
answered that he had, MI. Goldberg
asked him if he would make them avail
able to the staff of the Federal Power
Commission. At this time MI. Corette,
attorney for the Montana Power Com
pany, advised Buckley NOT to make his
working papers available to the Federal
Power Commissions staff. The $500
per share %interveners upheld Mr.. Corette
in denying the Federal Power Commits
sion's staff the opportunity Of seeing the
working papers of Mr.. Buckley, in which
he based his estimates and conclusions.
Mr.. Corette then stated that THEY had
made available to the Federal Power
Commission at a great inconvenience to
the Company everything in the office of
the Company. Every letter, every con-
tract, every memorandum they were
using in the work were made available,
At this point Mr.. Goldberg reminded
Mr.. Corette that in turning over all the
material in his files and the company
files, he had neglected to turn over
exhibit No. 24O, which the record showed
he had furnished the witness, Mr.. Bick-
ley.
Exhibit No. 24O is a photostatic copy of
a memorandum found in the files Of the
Ebasco Service, Inc. This memorandum
set forth four different proposals for
dressing up the Montana Poyer Com
pany's accounts to try in some manner
10 4lluE Of t,VuofOuU WO4L III VI WnuDAIN
stock.
MI. Goldberg then stated that the only
working papers we're made available to
the staff were two summary sheets. He
also stated that it was the first time he
had ever heard that the staff Of the
Federal Power Commission could be de-
prived of seeing the working papers of
a witness, simply because the Company
goes out to hire somebody not employed
by the company.
The trial examiner, Mr. Marsh, then
stated there was nothing to prohibit the
Federal Power Commission staff from
subpoaening Mr.. Buckley as a witness and
also to subpoena his working papers. Mr..
Matson, counsel for the State Railroad
Commission stated that the railroad COM
mission was not interested in Mr., Bick-
ley's working papers.
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