The people's voice. [volume] (Helena, Mont.) 1939-1969, 1949-11-11

ologist that its gas supply was ample
for twenty-five years from it's pres
ont system and the further statement
Inv the same geologist that any ex-
handing needs should be met from
gradual expansion of the present
system. Attorney Ronald Colgrove re-
presenting the Eastern Montana con-
sumers also pounded away on these
statements in his cross-eXamination
of Gamble.
MDU Stockholders Couldn't Lose on
This One
In attacking the financial setup of
the proposed new line, Judge Erickson
in his examination of Gamble forced
him to admit that only stockholders
of the Northumberland Utilities
Company could buy the new stock in
the dummy corporation whose Of
ficers were the same as the officers
of the Montana-Dakota Utilities
Company. He likewise forced Gamble
to admit that a 1917 stock dividend
was to be paid for the first five years
so that each $40 share of stock would
receive $6.10 in stock dividends dur
ing the five-year period and that from
then on those stockholders would re-
ceive 1917 interest on $16.10 and not
on SO, the amount actually invested.
1t was pointed out in this cross-ex-
animation by Judge Erickson that
an investment of 500 would return
in excess of $3.50 in actual cash in a
twenty-year period and that in adj
dition the holder of stock originally
worth 500 would have certificates
valued at $161.05 and that those
originally investing $1,500,000 at the
end of twenty years would own nine
million dollar pipeline free and clear
Of all debts and charges.
Gamble admitted that 40@6 of the
Montana-Dakota Utilities Company
was owned by the Heskett and Wood
son families and that holders of the
parent company stock could assign
their rights to other stockholders.
Gamble attempted to deny that
the financial setup was as stated but
then attorneys for the consumers
brought forward the testimony by
Gamble on rate hearing before the
Montana Railroad & Public Service
Commission and made him admit from
his own testimony that the financial
setup was exactly as contended by
the consumers representatives.
Curtailment Orders Brought to Light
Much time was devoted by the con-
sumer's attorneys to the present cur
tailment orders of the Montana and |
Nnrth Dakota Railroad Commissions. |
Mr.. Gamble reluctantly admitted that
those orders were made solely on the
application of the Montana-Dakota
Utilities Company. He was forced to
admit that nothing was said when
those applications were made in 1947
or 1913 about any shortage of gas.
That the sole reasons given for Sc
curing the curtailment orders were
shortage of steel pipe and drilling
equipment. Jurge Erickson's ques-
tions finally forced him to admit that
there was now plenty of steel pipe
anu t1hlPiiiChO anu Ciiet1 AAOiAS
of the reasons originally given for
the curtailment orders any longer ex-
list. Apparently the answers were
brought out in order to permit the
consumers to take immediate action
before the Railroad & Publice Ser
vice Commission to secure the can
collation. of the orders. 1t is reported
that several applications are now be-
ing prepared on behalf of veterans
groups and others who are trying to
force the company to fulfill the re-
quirements of their franchises and
make gas available for new homes,
most of which are being built for vet
Grams.
Other questions brought forth the
that under the contract
between the Northumberland Util-
tiles Company and the Pure Oil Comp
any, the OF company had only agreed
to sell any surplus gas itanight have
while the utilities company was bind
ing itself to take up to $50 million
cubic feet day. Both the attorney
or the Power Commission and the Ex-
aminer Baron went into this feature