Montana labor news., 1945-07-19
A Good Suggestion

namely: People Must Help Themselves, was print
ed in the Montana Labor News July r. 1945 and was
also printed in the Peoples Voice of Helena
The Montana Labor News is fully in accord with
this editorial and pleased to reprint it from the PeO-
pies Voice.
In an article contributed to The Voice and published in
the July issue (Peope Must Help Themseves) a sug-
gesOn IS made that petitions be circulated for law max
ing it mandatory upon the Public Service Commission to
order reduction rates for service charged by the Mon
ana Power Company proportion to the findings OF lower
valuations of its property by the Federal Power Commits
son than the valuations used by the company as rate
base This is suggestion mertng earnest consideration
and the people conscious of their best interests
crete action will follow.
The contributor contends and we believe rghtfuly So,
that action for the benefit Of the people be expected
from the Public Service Commission III the state, unless
action forced by the people of the state themselves The
history of the Public Service Commission attitude in
necon with the qeson Of rates charged by the Montana
Power Company appears to substanate this view clearly
In every session Of the Montana legislature for the past
decade except in the last one bills have been introduced
requiring the Montana Power Company to be taxed on the
same valuation the valuation which based its rates
the valuation on which it based its rates being nearly
double the valuation which it taxed. ln every
sion the political influence Of the company strong
enough to defeat the attempt OF fair taxation OF its proper
ties
AS a matter of fact the values on which the company
was taxed not too much out OF line The rate base
valuations included the $51978025 Of wateed stock which
the Federal Power Commission has ordered the power
write OIL us DO0k NaIuat1OnS JnS sum
sentng no real costs or values arbitrary Wteups IN valu
atons having been made and common stock voted to off
set them and issued to the robber barons.
Ii the Montana Public Service Commission had con-
sidered the interests Of the Montana public there be
question that it would have supported the findings of
the Federal Power Commission Instead of doing how
ever the Montana commission fit to give the company
break amounting to $329764 42616 in it's findings this
amounting to nothing in the world but gift the basis
of the testimony at the hearings last year which showed
cOncusvely that the amount which the Federal Power
Commission ordered the company to write off, represented
no costs OF plant; represented nothing but financial
jugglely.
Whether or not the findings" of the Montana com
mission written by company attorneys the simple
fact is that they constitute nothing but sop thrown to
the public intended to show that consideration
shown to it, The fact that the power company in its appeal
for rehearng, used the entire Montana commissions
OpniOn and Report and Order Dated December l. 1944
it's petition for rehearng by the Federal Power Com
mission which was denied on April 27 this year, would
to indicate that the power company, had approved
this opinion and order III advance. Otherwise it does not
probable that they would so whoeheartedy endorse
the findings.
This gouging of the public on fictitious watered stock
rate basis has been going for tWentyfiy
years or more 1t would seem to be about time for the
public to be bestrrng itself The record OF the Railroad
and Public Service Commission in Montana is not to
which the public point with any pride as an agency
created by it to function in it's interests The law under
which operates perhaps too broad for the type Of men
which usually elect to serve on it, gives them too much
leeWay.
For many years. some members of the commission have
been ready to acknowledge that the rate base valuations
have been too high But the commission always had the
ready excuse that it did not have available funds with
which to undertake cost survey Of the companys plants
This has been true 1t has always been recognized by
liberal and independent members Of the legislature that
would be uess to ask for appropriation for this pur
pose because of the influence of the company the ma
ority Of the membership.
Now when an exhaustive, unprejudiced and thorough
investigation Of the financial structure Of the company has
been made by the Federal Power Commission and this
agency has found values for rate making purposes inflated
the amount of $685. 25 the Montana commssion evi
IDENTIFY inspired by superior wisdom through the efforts of
the Montana Power Company says this figure should be
$4,000 ,59SS4
Isn't it time for the public to act? We cannot be opti
mistc enough to think that the Montana Public Service
Commission will act against the company to compel
rate reduction the basis of values reduced by the
amount which its opinion and order would indicate
We hope that any legislative assembly in the
future before the political control of the monopoly
OF