The people's voice. [volume] (Helena, Mont.) 1939-1969, 1944-04-21

Marsh and the Montana state railroad
commission the Montana Power Com
pany now claims that those sites cost
it, not the $950,000 which Ryan testi-
fled was the real value, but $5,0O0,000.
The expert" accounting witness,
John H. Buckley who has been special
ly retained by the power company
to reclassify the company's accounts,
in defiance of the Federal Power Com
mission staffs recommendations, testi-
fled that the cost was the full $5,000,-
600 on the basis of valuation made
by the power company's chief engi-
neer, Mr. H. H. Cochrane. The Coch-
rane valuation was made more than
80 years after the transaction.
Mr.. Bickley's version of the Ryan
deal was that Mr.. Ryan had bought
the Thompson Falls and Missoula
sites from the Milwaukee railway at
a bargain" However, under cross
examination by Mr. Goldberg he ad-
mitted he would have come to the
same conclusion, even if Ryan had
Immediately sold the $4,000 shares he
had received from the Montana Power
company at price of not more than
$1,000,000
Attorneys for the Montana Power
Company and attorneys for the inter-
vening $500 preferred stockholders
made every possible objection to the
a RI mi in wi in,
proceeding, of the certified copy of
the transcript of the Ryan testimony
before the Interstate Commerce Com
offered as exhibit 145. by
Federal Power Commission Attorney
Goldberg. Trial Examiner E. Marsh
has reserved his ruling on the admis-
sfbility of the exhibit and the state
commission has also reserved its rul-
ing (as it is doing with respect TO
all Of the exhibits offered by the Fed
eral Power Commission Staff
One of the principal issues in the
case is whether the prices put on
public utility properties and water
power sites in the Ryan deals with
the Motnana Power Company aiding
in the formation of that company, rep
resented real COST to that company
and the POWER and INFLUENCE,
as well as the stock interest, which
he previously had had in that COM
pany and in its predecessor the Butte
Electric and Power company, SO iden-
Tilted him with the Montana Power
company that the costs to him must
be regarded as the cost of the prop
critics to the Montana Power company.
At Tuesdays session the company's
accounting expert, Buckley testified
hat the Ryan interest was the larg-
EST single block of stock in the Butte
Electric and Power Company, as well
Is the owner of so per cent interest
n the Great Falls Power and Town
site Company, and of 100 per cent
interest in the Thompson Falls Power
company. All three companies were
merged into the Montana Power com
pany with more than $40000,00O being
added to the books in the process,
and securities Issued on the basis of
that S40,000,000 worth of water.
ne COui5c VI lu6 rtu6Tdl fOWeT
Commission staff's case indicates that
they will contend that Mr.. Ryan was
sitting on both" sides of the table
when those write-ups were put on the
books which the power company now
claims represent cost to the proper
lies on which it is entitled to earn
profits by the rates it charges con-
of electrical energy.
Another interesting effort to keep
evidence out of the record was made
~ the attorneys for the Montana
oower Company and the attorneys for
he intervening $500 preferred stock
folders, when Mr.. Goldberg in evil
lence as exhibit 240, a photostatic
opy of a memorandum found in the
lies of Ebasco Service, Inc. Ebasco
service, Inc, is a bond and share
ubsidiary company which performs
ccounting, financial and engineering
ervices flor a price, for utilities like
he Montana Power company in the
uge bond and share company system.
The memorandum which Mr.. Gold
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