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Show Court Decision Gives State $10 Million from Kennecott HY C Sharp I t.ih's l.ii'h'cst t.ip.i -t Koiimvolt lpp'r I'orp., lv t .1 $10 million mil-lion t.l tulllc' l.l.st WtvK, wtu-n tlu V S. Supreme Court iUvliiui U hear KtMiiuvotl's appeal against ag-ainst a It. ili Supreme Court decision. l'tie hi;h eourt dismissed dismis-sed the appeal "for want of a federal question." Kenneeott had appealed appeal-ed oi the basis that this case involves interstate operations which are subject to federal regulation. regu-lation. At issue in the case was apportionment of Kenneooli'.s income wilt'11' wi-lt'11' I'tah and outside the stale's boundaries. Kennecott had estinia-t'il estinia-t'il that :S per cent of ts income came from Mali in i;)t;; ;uj p,-r i'nt in l'lf.s. Tho state lav I'ouunission ruled that 7S per cent of Kennecott Ken-necott "s income had come from within the state in lilt;; ;,nd ti 1 per cent in I'. Hurton Howard, special spe-cial assistant attorney Keneral. handled the case the state. He said that under the new formula for-mula adopted by Kenne-I'otl Kenne-I'otl under a liltw state law, the company had reduced its ta by iH) Pf" cent and paid only about one-tenth as much " 1; as in l(. 1'he finn used one formula for-mula for attributing its Profits elsewhere for I'lH'poration franchise tax and used another formula for-mula for fitfui-inK Us depletion. de-pletion. This latter formula for-mula attributed much more of its income to I'tah. New Formula The state therefore was justified in developing another formula for tax-. tax-. inn Kennecott as permitted permit-ted by the 17 law, How-are How-are declared. Although $2.3 million for the years 1; and 18 was involved in the appeal, Kennecott now will owe additional taxes for li)f,9 and 1970 for the total of about $10 million mil-lion to accrue to the state, Howard said. Kennecott now is having hav-ing problems meeting federal fe-deral air pollution standards stan-dards because of sulphur dioxide and other gases emitted from its big smelter stack at Garfield. Gar-field. It also suffered a setback earlier this year when the Chilean government expropriated expropriat-ed Kennecott's holdings in that South American country. Kennecott still has a big stake in I'tah as proved prov-ed by its huge expenditures expendi-tures in recent years improving im-proving its I'tah plant facilities. Rampton Offer Back in February of 1970 Gov. Calvin Hampton Hamp-ton had offered to recommend rec-ommend to the Legislature Legisla-ture that it legalize Kennecott's Ken-necott's formula for allocating al-locating its profits to I'tah. He conditioned such a recommendation upon Kennecott's acceptance of the proposed graduated graduat-ed occupation law which would have taken about $3.9 million ayear from Kennecott for extracting copper ore. J. P. O'Keefe, then general manager of the I'tah Copper Division, declined Rampton's offer of-fer and declared that the graduated mine occupation occupa-tion tax (which was defeated) de-feated) would shorten the life of the big Bingham Canyon copper mine. Consumer Protection Atty. Gen. Vernon B. liomney announced Nov. 9 that he will seek power pow-er from the 1973 Legislature Legis-lature to subpoena witnesses wit-nesses and take testimony testi-mony before filing complaints com-plaints on consumer protect pro-tect ion cases. Such power would be of Kreat value in bolstering his fight against consumer consum-er fraud, he said. Hubert B. Hansen, deputy de-puty attorney general, said such powers would amount to virtually a civil civ-il grand jury. Komney also pledged to continue his fight to restore capital punishment. punish-ment. He is a member of a special committee of the National Association of Attorneys General. Laws are being considered con-sidered to provide the death penally for criminals crim-inals who kill prison guards or policemen or commit other violent murders, he said. Oklahoma Rise In Oklahoma the incidence inci-dence of murder rose 93 per cent in three months apparently because the U. S. Supreme Court had ruled against capital punishment, Mr. Romney said. The Constitutional Revision Re-vision Commission Nov. H began work on proposed propos-ed revisions of the executive ex-ecutive article and the judicial article of the Slate Constitution. This group headed by Neal A. Maxwell was proud of having won approval ap-proval of all four amendments amend-ments submitted to public pub-lic vote Nov. 7. Questions of whether the secretary of state should run for election in tandem with the governor gover-nor and be his executive assistant as well as heir apparent still remain to be solved. B. Z. Kastler Jr., a commission member, said the state's judicial system faces real problems. prob-lems. He labeled justices of the peace as "cankers on the judicial system." "Under the present system a paperhanger can make a pile of dough dispensing justice," he declared. Justice J. Allan Crockett Cro-ckett last week joined with Chief Justice E. R. Callister Jr. in opposing changes in the judicial system at this time. |
