The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-11-20
PHONE INVESTIGATION
ON THE HOME STRETCH
Auditor Longley Told How the Toll
Income Credited to Vermont
is Determined.

MONTPELIER, Nov. 20-It began
TO look as if the telephone investigation
before the public service commission
was on the home stretch when Attor-
ney Graham, for the state, began his
cross examination of General Auditor
Longley this afternoon with reference
20 the affairs OF tAe New England Tel
ephonc and Telegraph company in Yer
mont.
Attorney Cook reappeared this af-
ternoon with his left shoulder bandaged
on account of injuries received from a
fall last week Although handicapped
by n dislocation and slight fracture
lie viii Ice able to carry on his part Of
the work
The total capitalization of the New
England Telephone and Telegraph com
pany is $43, 400. Out of 251, 716
shares the American Telephone and Tel
egraph company owns 5S.4 per cent.
Its original interest in the New Eng
land company was obtained from the
American Bell company, its predecessor.
That company owned the Bell patents
and in 1883, when the New England
company was formed, it gave the lat
Ter company a license to do business
i'm this section Of the country in ex-
change fer stock amounting to S4,26S,-
coo.
When an inventory taken by order Of
the Massachusetts highway commission
a few years ago disclosed a plant value
Of more than SJ.000,000 in excess of
the book value of the property, this
amount originally paid for contracts
aud licenses was written off the books
ana is no longer carried as an asset.
Mr.. Longley gave n history Of the
organization Of the New England Tele-
phone and Telegraph company, Il was
organized October -, 1883. and began
business on November / OF that year
Eight different companies were purchas.
ell.
The total plant SO purchased acgrc-
gated $5,>95,0Qo. For the right to 10
business under the Bell patents in New
tn4land the &cw England company
gave the American Bell Telephone com
pany stock to the value of S4.26S. 600
and also issued to trustees $23f. 900
making the total capitalization at that
timc S10,394, 500.
Mr.. Longley was questioned in detail
aS to q number OF the items contaIncs
i'm the balance sheet presented HcstCr
, day, and gave figures which viii prob
: ably be maIyzed by the engineer Some
Of the more interesting items were Al
follows: Cost OF toll pole lines il
/ Vermont, $42S, 05I99; total toll wire
1851, 1850; cost of switchboards
5 53I37.54; cost of the Burlington
central office, including land an
e buildings, $26,351.S3.
, Mr.. Longlev in describing how tn
2 amount Of toll income credited to NeI
q mont was determined produced severa
: interesting calculations from his books
e Instead of counting the mileage o.
each individual call percentage figur
J., is obtained by averaging such actua
G calls for a month and this percentag
- figure is used in apportioning the tol
e income.
: Mr.. Longley said he thought thi
IA method of determining the apportior
ment was not only fair to Vermont, bu
{ about per cent larger than it woul
o be if an exact computation were mad,
y \ balance sheet for 1911 showed
II net revenue for the New England con
panv's Vermont business of $40. $40
t. The 1912 balance sheet showed NJ
., earnings of 81, $3.50. the falling o
II for 1912 being ascribed to increases
4 the cost of operation and of repairs.
g balance sheet for the year ending Jur
% 30, 1918, showed q net revenue
iSI3. SQ7 10