The frontiersman., 1952-07-31
US. Seizes Local Phone Company For Taxes
MVTC Property Up For Auction Aug. l8; Service Continues Under City Custody

enue for the district of Wash lngton and Alaska has seized all property of the Matanuska Val ley Telephone Company, Inc. for assessed taxes owed the United States Government. The seizure order was posted in the telephone company office and in the U. s. Commissioners office, Palmer precinct, at 3 pm. yesterday, July 30.
 Simultaneously, the city of Palmer was appointed custodian ot the telephone property with authorty to continue operation of the telephone company. This was done through contract that went into effect at midnight last night as the seizure order, transferring control of the property to the government, went into effect This timing coincided with the expira- ton of the city's option to pur- chase the MVTC and the agree ment whereby the city managed the telephone company during the effective period of the option.
 Property Up for Auction
 The citv's custodianship is eff tectlVe only for fifty-day period, during which time the Collector of Internal Revenue will seek to dispose of the property through public auction for the amount of the tax lien against the corpora ton. The first public auction of the telephone property will take place at the MVTC office at ? pm. Monday, August 18, 20 days after the seizure order was posted. Sometime before this first auction beglns, the Department of Internal Revenue will announce the amount of the minimum bid. Pre- sumably, the minimum figure will cover the total amount of the tax liens filed against the com pany. This total is approximately Sl3,OOO. If no acceptable bid is made August Is, there will be a second auction 30 days later. If no acceptable bid is made at the second auction, the telephone company becomes the property of the U. s. government to dispose of as it sees fit.
 The first tax lien against the property was filed July 1. l949 for the amount of S1, 1,9O8.25, cover Ing withholding and employment taxes due December 31, 1948 and for telephone and telegraph ser vice taxes collected over the peri od of October, 1948 through April, l949. Four other tax liens have been filed, the last one dated July P, 1852. The unpaid taxes listed in the five liens plus the flllng fees amount to Sl1,959.58, Interest and penalties listed on 16 separate warrants for distraint is- sued from 1949 to July of 1852 boost the figure owed the govern ment. The 16 penalties Give per I'cent of the total listed on each of the warrants of distraint) amount to total of $592.46. Copies of the warrants for distraint and tax liens are attached to the seizure order.
 No City Franchise
 The property seized by the gov- ernment is itemized on a list in cluded with the seizure order. It includes a Western Electric switchboard, a 1850 model Inter national pickup truck, approxi- mateIy 200 telephones in use and approximately 200 telephone poles, 20-25 miles of telephone line, several items of office equip ment and telephone supplies, and
 any unexpired city and Territor- ial license to do business" The last item is important. If MVTC had been granted a franchise by the city, any company or private individual who made an accep- table bid on the property would be able to operate the telephone company until the franchise ex- pired. The crux of the matter is: There is no franchise. Without, it, the property is worthless as a telephone business.
 Acting for Clark Squire, Col lector of Internal Revenue for the Washington and Alaska dis trict, was A. Verle Collar, assist ant chief field deputy in charge of Alaska. Accompanied by John J. Marx, deputy from the Anchor
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