The Sidney herald., 1955-12-22
Montana This Wcok..

This Week.
curtailed powers, says it will bave
a right to appear before the ICC
or at hearings conducted by thai
arm OF the federal government
Where Montana rates are invoIv-
ed. HiVo1V
Having the Montana commits
sion represent the state and i+o
cltlzens before the ICC NAV have
some value, but I wonder wbeth
er this justifies taxpayer ax-
penSe IN maintaining freight rate
regulatory machinery that i
largely Intellectual. Aside from
freight rates, the state comrois1
sion has already lost control 70 =
great extent, over services -.
railroads. For economic reasons
wnlch In general appear valid
the railroads in Montana are Do
creaslng and in some cases dc
continuing train service. and tbara
seems to be nothing that our rail
road commission can do to co1,n-
teract this tendency.
From time to time in the leo
lSIature 1t has been proposed that
the railroad and public service
commission be abolished and that
us powers be transferred to some
other state agency. There will
remain need for public
utility regulation, but in view
OF the legal status concerning
freight rates, there appears to
De a good argument in favor of
abandoning further attempts TO
operate in a field which the in
Serstate commerce commission has
taken over.
For most of us there is Moth
ng more complex in government
and at income tax filing time
more disturbing - than taxation
aW and the regulations promul-
gated under it. And now it looks
Ike IN the months ahead we
nay become even more confused
I we try to follow and under
tand litigation due to result from
uIlngs of the state board of
'~qualization on the assessed valu-
ton OF utilities and livestock.
In 80 counties the Montana
over company has paid taxes
protest, contending that
ne board used a Fundamentally
principle in fixing the
aluationS. What appears to be
aslcally involved is whether the
ook value of the company's !
locks and bonds, or the market
aIue averaged over a five-year {
erlod, should be employed. The
oard, which says it has pro-
eeded under a formula it has
Sed many years and is used in
{ states, insists that the market
alue factor is the proper one.
Another protested tax payment
by the Yellowstone Pipe Line
'mpany, which recently built a
-pe line to transport petroleum
'oducts from Billings to Spo-
ane and intermediate points. The
here seems to be the
ethod of arriving at the valu-
ion of the physical property.
here is repeatedly a big spread
the value the company
aces on the pipe line facilities
r taxation purposes and what
e board believes the assess
ent figure should be.
action on which the
ard may soon be in court is
objection of two Sanders
unity stockmen, residents of
e Plains area, to their cattle
sessments. The boards version
that these assessments are on
scale applicable thru
t the state that the figure, as
the practice, was first reached
a consenus of county asses
IS and then approved by the
ard. The board could have
cred this amount. The protest
lowed an appeal in which the
tie board sustained the county
ard of equalization.
N all these instances it is al
ed that the assessed valuations
higher than for other classes
property. This gets us into
ne very complicated law. The
te board of equalization has
Jared that it welcomes court
rification so that the state and
payers alike may know pre-
ely where they stand.
Chairman J. F. Reid of the
tie board of equalization be-
res that creation of a special
court - which would re-
re a constitutional amendment
would be a means of disolving
re rapidly many taxation prob
S that confront Montana. Dis
t courts now have original
.sdiction in tax cases but, in