The daily morning journal and courier., 1899-04-19


 not tell the average of shares held by each one of these 414 holders. Governor Waller-"Now did you take the trouble to find the number of shares the people had?" NO"
 "How can you get them?"
 From the man who keeps the stock 1 books"
 Will you have him here?" | "Yes"
 Governor Waller-"In addition to your royalties, etc, you stated you paid 4, 5 and per cent. to stockholders, and said something of charging off against your profit about $4O0O00 for stock you had given to the Bell company, didn't you?"
 T said we credited to our franchise account that amount"
 Didn't you take right out of the peo- pie of Connecticut S400000 that would have gone to dividends or into sur plus?" | Tt went into surplus" What is an honest surplus but to pay dividends or to have it go into the plant?" u WG1ll lHIO LHe JldHt.
 "'Then in addition to your dividends and $5O,000 a year in royalties, etc, didn't you make $40O0OO that you didn't pay in dividends, but which went into your plant?" q say it went into the plant" What tax do you pay to the state for your charter?"
 We pay the state 75c year for ev- cry telephone"
 What else do you pay the state?"
 Nothing else.'
 What real estate tax do you pay?"
 "On about $20O,00O worth of real es- tate"
 "Then you pay Connecticut in all this business which you want to keep for yourself. about sS,000 and tax on $2O0,OO0 worth of real estate.'
 "Well, you can figure as well as I can, governor
 Now, sir; suppose you owned little electric railway, how much tax would you pay the state?''
 q don't know
 "We.l. I will tell you; don't you know by the laws of the state that that little company pays $31 ,000 where by your figures you pay $1000O?'
 we are paying what the state law requires of us' ..,. -...
 Your bonds are selling at premium and your stock at 120, isn't it?''
 Yes"
 Now, MT. Tyler; if I understand you right, your company started with s600- 900 capital. Now you don't mean that the first little company started with that?"
 "Oh, no; l think the first little com pany in New Haven started with about s10000'
 Do you mean to say that all of that s2,5OO.0OO capital of yours was paid in in cash?"
 No"
 Out of that capital, how much is earnings?"
 Between 10 and 12 per cent, of it."
 twill you bring books here to show whether your capital of $2,500,000 is all cash or not?"
 'Well, we have a great many books"
 Ex-Governor Waller in his cross ex- animation brought out the fact tha. MT. Tyler would not object to the new company receiving a charter if he did not think that the new company would disturb the property interests which he represented. He did not think that the new company could live if it charged lower rates than the Southern New England and gave free service to mu- nicipal offices but at the same time he thought that the new company, if it was chartered in Connecticut, would injure the interests of the company al- | ready established here. Mr. Waller characterized these views as inconsist- ent.
 MT. Waller-"If the new company comes here what are you going to do to protect yourself-reduce rates?'
 MT. Tyler-"Possibly. I should con- slider that had $S,0oO,OoO worth of prop erty to protect"
 MT. Waller next questioned MT. Tyler | as to agreement between the Southern New England company and the Ameri- | can Telephone company as to use by | the former of the latter's long distance wires, and brought out the fact that the Southern New England receives 10 per cent of the rate for long distance busi- ness which it furnishes to the American Telephone and Telegraph company.
 The cross-examination then proceed ed to show that the Southern New Eng land company was under contract with he Bell company to furnish no delivery of messages because of an agreement between the Bell company and the Western Union Telegraph company MT. Waller asked: Suppose the new should get acquainted with he Postal Telegraph company, it would interfere with that monopoly of yours, wouldn't it?"
 Mir. Tyler-"I don't know.'
 Doesn't the Bell company pay the Western Union 20 per cent of all it re- ,eives on royalties to keep the Western Union from going into the telephone )usiness?"
 "I know that they pay something. I lont know how mucll--not 20 per 'ent''
 Mr. Waller then spoke of receivers md transmitters. for each of which the Southern New England pays to the Bell $3 royalty per year, and ask d: Isn't your company, under con- ract, bound not to buy receivers and 
 "Yes"
 "Could not your company buy receiv- rs and transmitters for not more than 5 cents if it was not for that con- ract?'