XN000022-1975-01-22 — Page 15

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WEDNESDAY, JANUARY 22, 1975

MR. BREMRIDGE DESCRIBED THIS AS ALMOST DISGUISED ADDITIONAL TAXATION+ ALTHOUGH HE ACKNOWLEDGED THAT IT WOULD BE HARD TO FIND AN ABSOLUTELY FAIR SOLUTION TO THE TRANSITIONAL PROBLEM OF INITIAL ALLOWANCES, HE ADDED THAT NO COMPANY MERITING INITIAL ALLOWANCES COULD AVOID THIS OUTCOME, AND ALL PREVIOUS PLANS FOR FUTURE

INVESTMENT HERE INVOLVED.

+IT IS MOREOVER RETROACTIVE LEGISLATION, WHICH IS ALWAYS TO BE DEPLORED. APART FROM OTHER COMPANIES, MAJOR” UTILITIES INCLUDING PERHAPS THE TELEPHONE COMPANY MAY EXPECT TO HAVE AN ANNUAL EXPENDITURE ON CAPTIAL INVESTMENT IN EXCESS OF $100 MILLION. NEW BILL WILL WORSEN THEIR CASH FLOW IN THE ONE YEAR DY OVER $5 MILLION,◊ HE SAID.

THIS

MR. BREMRIDGE BELIEVED THAT THE TOTAL AMOUNT OF LOSS OF ONE YEAR'S INITIAL ALLOWANCES WAS OF THE ONDEN OF $75 MILLION,

FAILING FURTHER COMPROMISÈ, HE ADDED, THE COUNCIL WOULD HAVE TO DECIDE WHETHER THIS WAS DETTER LEFT, FÖR THE TIME DEING, IN THE HANDS OF THE GOVERNMENT; BECAUSE IF INDUSTRY THUS ASUFFERED AN ADVERSE CASH FLOW IT MUST DE MIRRONED DY AN EQUIVALENT CREDIT IN THE GOVERNMENT'S HANDS.

HE FELT THAT THIS OUTCOME WOULD BE IN THE COMMUNITY'S INTERESTS, THOUGH NOT IN THE INTERESTS OF INDUSTRIAL COMPANIES WHO HAD LONG BEEN ENCOURAGED BY INITIAL ALLOWANCES TO INVEST IN CAPITAL EQUIPHENT IN ORDER TO PROVIDE MONE WORK FOR THEIR EMPLOYEES.

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