The Barre daily times. (Barre, Vt.) 1897-1959, 1913-10-09
~ -,
,ot All the Telephone Com
panies of Vermont Are
Poor Investments
BIG DIVIDENDS PAID
BY TWO COMPANIES
Public Service Commission
Gets Less Gloomy
Reports

That some of the telephone companies
Of Vermont are paying good dividends
is the information secured by the Yer
mont public service commission at its
hearing in the State House at Mont.
pelier over the proposed reduction OF
rates. The most notable examples OF
this prosperity thus far are the Central,
the Citizens and the Northern Telephone
companies, of which C. L. Ovitt is the
general manager.
| Mr. Ovitt was on the stand all yes.
terday afternoon. He testified that the
Central Telephone company had paid AZ
per cent in dividends including an esti-
mated dividend of per cent this year,
since 1908, besides two stock dividends
| Of $1,000 each, which were shared by
the stockholders. In 1908 there was d
stock dividend of 5000 and 6 per cent
additional; in 1909, per cent; in I9I0,
| 8 per cent; in 1911, stock dividend of
$4,000 and s per cent; in 1912, 10 per
cent; in 1913, per cent (estimated).
The Central company is capitalized at
$4,000 and has 944 subscribers. No
tion and 10 per cent of the earnings
annually is set aside for maintenance.
The company has no insurance. 1t has
no purchasing contract with the New
England company, but it has toll and
territorial contract with that company.
Supplies are bought from several deal.
ers. Mr.. 0vitt said he valued the plant
at considerably more than the capital
stock.
The Central company took over the
Weed & Abbey firm in 1906 The lat
ter was indebted to the New England
firm for $500 The Weed & Abbey firm
had 432 subscribers; Weed was the prin-
cipal owner. Abbey not having more
than $50 worth of stock, for which he
was paid about 5000; Weed controlled
about $500 or $500 worth of stock.
After finishing the investigation Of the
Central company, the commission took
up the Citizens Telephone company, Mr..
0vitt, general manager, continuing on
the stand. The Citizens is capitalized
at $4,000 and in 1909 it paid per cent
dividends, in 1910, the same, and in
1911 and 1912, 5 per cent. The company
has /, ,407 subscribers in the towns Of
Cambridge, Hardwick and Others. He
said the New England company con-
trolled the Citizens company till Ovitt,
Weed and Others made purchase of it
in 1906.
He said that the company's rates were
as follows: Residence party lines SIS,
less rebate of So; private line residence
rates $27; private line for business
firms $50; special three party lines S24
business $27 party line residence rate
SIS; and business party line S2l.
Mr.. 0yitt presented statement show
ing that the company's dividends would
be decreased TO 21a per cent yearly if
the proposed reduction in rates was put
into effect.
The witness testified that the stock
of the Citizens company was bought of
Mr.. Van Cor of Morrisville, who had
an option on the stock from the New
England company He and his associ-
ates had paid par for the stock, or
S25 600
Mr.. Ovitt was on the stand all this
forenoon and testified about telephone
operations in connection with the Mac
Guire and Buchanan systems in the
northern part of Vermont. 1t was ex-
pecetd that Mr.. 0vitt's testimony would
be completed this afternoon.