The Barre daily times. (Barre, Vt.) 1897-1959, 1909-09-17
WILL SUBMIT PROPOSITION.
Barre and Montpelier win Say What
They Want Of Telephone Co.

The telephone committee Of the Barre
board Of trade met the directors OF the
Montpelier board Of trade at Montpelier
last evening to discuss the proposition
offered by the Vermont Telephone and
Telegraph company to settle the contro.
versy that has arisen between the par
ties on account of the new rates which
went into effect July l.
John w. Gordon, who has made a thor.
ough examination of The situation and
has consulted 8 telephone expert Of All.
bany, N u, gave his view Of the sitna.
tion in lengthy statement He said
that the present capitalization Of the
company was SI25,000. and they claimed
q debt Of $4,000, which added to the
former would bring their capitalization
to Sl400 600 Now. the company, he said,
proposes to expeHd s47 600 in improve
ments and add> this to its capitalization
and ask the public to pay dividends on,
which he claims It should not do.
His statement was an attempt to show
what the company should do be capital
lied at, and their capitalization depends
on what they own The company, he
said, owns none Of its trunk lines, which
are worth between six and ten thousand
dollars, and they rent all of their teie-
phones at sl25 an instrument year
from the New England company. They
have $500 instruments, which are worth
S6,000 Their 2S00 stations at $50 per
year makes $4,000 which should be
the real capitalization of the company.
Where the real trouble exists. he said.
was in the fact that the instruments
which the company rents at Sl2 a year
can be purchased at $3.50 an instrument
and every two years the company pays
for the instruments, which under proper
management they should have owned af-
ter that time Instead Of the Vermont
company received Is per cent Of tie toll
business, as the experts claimed they
should they had received about one half
OF that sum each year, which in IL
years would amount to about $4,000
and they had nothing to show for tho
$4,000 invested, as they still rented the
instruments.
Mr.. DeBoer Of Montpelier stated that
there were four things that would come
into the propositions first, the present
value Of the telephone system; second,
the cost Of maintenance; third, operating
expenses, and fourth. the legitimate digi-
dends. Mr. Taira stated that one of the
first sections in the petition to the public
service commission was in regard 20 the
time for making a change IN rates ard
he thought the rate should be fixed after
the improvements had been made, in
stead OF before
Mr. Sibey made a motion to the effect
that the telephone rates existing prior to
july be insisted upon with a PER cent.
discount for payment in adyarcp ~
was finally decided that the prasider
Of the Montpelier board and one meml
Of the Barre committee should set
their proposition IN writing and pres
IL to the Vermont telephone ofieials f
their approval. This will be done G
afternoon.
Mr.. DeBoer stated that the pfopositioa
made by the telephone company woi
be accepted with the exception Of
three last sections, which relate 10 fe
turning to the new rates when the eeii-
irai energy system is installed and the
examination Of the company's books Is
made.