St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1908-10-21
The Telephone Situation.

feUuOnS fIOlSSllng Against INC Au-
vance in Rates Have over Three
Hundred Names. Report of Mr.. Cary'S
Remarks at the last Meeting of the
Business Men.
The st. Johnsbury House parlors
proved far too small to contain the
people that attended the meeting Fri
day night to protest against the pro-
posed advance in rates and many were
obliged to stand in the lobby. The COM
mttee who are canvassing the town
reported that over 300 had signiied
their intention of taking out their in
struments if the company advanced the
rates, and about % names were added
to the petitions at the meeting.
The principal feature of the meeting
was the remarks of George c. Cary, one
of our leading business men and a
director in the Passumpsic Telephone
Company Much that Mr. Cary said
during the evening was elected by
questions from the business men present.
In answering these questions Mr..
Cary said St. Johnsbury should have
better telephone service. The ten party
lines should be changed to not more
than six subscribers on a line, and as
far as possible the one and two party
services should be taken. This will help
the community. Business can be done
better and more business can be done.
! 1t will cost the company several
| thousand dollars, he said, to make these
changes. Mr.. Cary called attention to
the fact that Rutland with but COM
paratively few more telephone users
than St. Iohnsbury, has 129 one party
line subscribers to st. Johnsbury's 81;
and 80 two party subscribers to st.
| Iohnsburys SO. This cut down the
busy line" response in Rutland to
practically nothing. and makes it pos
sible for business men to do business
accurately and without delay. Mr..
Cary said he had no hesitation in ap-
proving the measures adopted by the
company to put the telephone service
on an improved basis, believing it to be
worth the small advance required and
tending to promote the prosperity and
business welfare of the community. In
reply to question about the rates in
Rutland, Mr.. Cary stated positively
that the lowest rates in Rutland are
sos and SIS for business and residence
service respectively.
Speaking Of the organization, capital
ization, earnings, ETC., of the Passump-
sic Company, Mr.. Cary stated that the
territory of what is now known as the
Passumpsic Telephone Company was set
off from that OF the New England Tee-
phone and Telegraph Company about a
year and half ago to better adapt the
| management Of the business to the
special needs of the territory. The New
England Telephone Company owns a
majority of the capital stock. Prominent
citizens in several towns in the territory
were induced to serve as directors and
give to the management the aid of their
counsel, based upon their acquaintance
with the communities which the COM
pauy serves. They are always consult
ed in regard to the company's business,
their opinion is sought and given as
much weight as that of any of the direc-
tors representing the parent company.
The amount of the companys capital
stock is $3.50, 300. Not a dollar of it is
water. 1t represents the actual value,
determined by careful appraisal of the
switch boards, pole lines and wires, ap-
paratus, etc, in use in the territory oper-
ated by the company. That this capital
ization is conservative, Mr.. Cary show
ed by stating that, dividing the amount
of the capital stock-S150, 300 by the
number OF subscribers stations-27O0-
gives $55.66 as the average capitaliza-
tion per station, whereas the average
capitalization per station of all the COM
panies in the American Telephone and
Telegraph Company, as shown by a
recent report, is S104.
Replying to a question relative to the
company's toll revenues, Mr. Cary
stated that the method of division was
that in vogue by telephone companies
throughout the United States, and gen
orally employed by railroad companies.
The Passumpsc Company gets com
mission upon all business originating in
its territory, and pro rata compensa-
tion for the distance over which the
business is hauled over its lines. On
the inward business it gets its proper
share for the haul and a delivery fee
The method is absolutely fair and bust
ness like Speaking of the growth of
the business in st. Johnsbury Mr.. Cary
showed that eight years ago the st.
Johnsbury exchange had 262 sub
scribers; the rates were the same then
as now. Today the exchange has 1886
subscribers. In other words, the COM
pany is giving four times as much for
the money as it did eight years ago.
The revenues, however, have not been
sufficient to give proper return upon
the money invested. In this connection
Mr.. Cary stated that the stock of the
company has never received a dividend
and that nothing is being laid aside for
the depreciation that is constantly going
on. The revenue, he showed from a
statement of the earnings and expenses
for the six months ending June 80, 1908,
barely covered the actual operating
expenses, including pay rolls of oper-
ators, maintenance men, bookkeepers,
rent, light and heat, material, taxes etc.
Before the meeting adjourned it was
voted to have the president of the meet
ing appoint a conference committee, with
himself as chairman, to confer with the
officials of the Passumpsic Telephone
Company upon the situation. DR.. Stiles
has since appointed c. M. Berry, A.
H. Gleason, F. A. Scott and Louis N.