The people's voice. [volume] (Helena, Mont.) 1939-1969, 1945-09-28
AN OPEN
LETTER

September "a, 1916
To the Montana Railroad &
Public Service Commission
Helena Montana.
Gentlemen:
At the hearing concluded in Butte
some months ago, the Federal Power
Commission after an exhaustive in
vestigation which involved the finan-
cial manipulations of the Montana
Power Company, declared that about
SAT, 100000 should be wrung out of
its book valuations.
| After this hearing the Montana Rail-
road and Public Service Commission
ordered the Montana Power Company
to reduce its book valuation by some
100000 as of January list, 1887.
Just how the public servants of this
state arrived at this figure is beyond
the average citizens ability to COM
prehend, as also is the arbitrary date
of January 1st, 1887, when in the in
vestigation by the Federal Power Com
mission it showed that the write up
of these book valuations occurred
some thirty years ago, or at the time
of the organization of the company.
The Montana Public Service Com
mission in its order to the Montana
Power Company to reduce its book
valuation by some $19,000000 admitted
that this watered valuation has ex-
listed, and has been part of the COM
panys rate base all these years, and
which represents about 20% of the
valuation on which the rates for serv-
ices has been based. This of course
means that the consumer, the citizen
of Montana, has been overcharged
some 20qo not for the past eight years
that you gentlemen of the commission
so reluctantly gave them, but for the
thirty years the Federal Power Com
mission justified in their investiga-
ton.
The Montana Power Company OPP
crates under state franchise or IL
cense which guarantees; or should
guarantee, public protection against
overcharges by public utilities. The
Montana Public Service Commission
seemingly has been derelict in its
duties or functions by it's own admis-
sion in its order to the Montana Power
Company to reduce its book valua-
1887, which must have shown to them
an overcharge to the consuming public
of approximately 20% on the Montana
Power Company's fictitious rate base
as shown by the Federal Power Com
not been to the benefit of the state
of Montana, we would rather surmize !
that it did go into the pockets Of
the controlling out-of-state companies |
such as the American Power and |
Light and the Electric Bond and Share |
who we understand control the COM
mon stock of the Montana Power Co. |
1t is our contention that the Mon
tana Power Company has collected |
revenues from the citizens Of this
state for power and light services on
a rate base that has been found fic-
sion-on its watered book valuations.
This has been partly substantiated by
the Montana Power Commission, our
own state servants. 1t is therefore
The request of this organization, the
Great Falls Mill & Smeltermen's I'm
ion that the Montana Public Service
Commission institute proceedings
against the Montana Power Company
'or payment or rebate to the con-
sumner public of power and light, Gus
.omers of this same Montana Power
Company.
We are making this request with
he firm belief that 1t is the duty of
he Public Service Commission to in
Ititute such proceedings. 1t is also
he intent of this organization to have
he people of this state likewise petit
Continued on Page Four)