The Barre daily times. (Barre, Vt.) 1897-1959, 1913-10-10
Before Public ser Som
mission .,eN> msss osed
~ ease
ATTY. M. B. JONES
MAKES STATEMENT
Then Vice-Pres. E. X. Hall
Tells of Development of.
the Corporation

The side of the New England Tel. &
| Tel. Co. and its subsidiaries in Vermont
il now being heard bydhe Vermont pub
lie service commission at the State House
IN Montpelier over the proposal to re-
duce telephone rates in the state. The
preliminary statements of the company
were made near the close of the after
noon session yesterday, followed today
by the testimony of some of the repre-
sentatives OF the company.
/ w Is. Z. Stickney attorney for the
company, said to the commission: "As
a right of the company / represent,
company appearing before fair TIT
bunal, ! think ! should take this oppor-
tunity to say just one word in reference
/ to what has been said as to an attack
upon the jurisdiction of this commission
being authorized, sanctioned or in any
way countenaneed by the New England
! company. / wish to take this oppor-
hunity to say that, instead of attacking
tie jurisdiction of this commission, tile
Nehr England company very gladly sub.
sion IN this respect, as an agency of
the state OF Vermont, as created under
q LAW wbic the New England company
was in Ian, se degree instrumental in
putting upon ne statute books of this
state think that IS all | care to say,
and / take this op portunity to say it.
and | hope the conn hssion VIII pardon
me if | have gone on .side the record.
But, of course we do not know Just ex-
actly how widespread er-f 'ow insidions
may be the influence of !. .Sinuations
which are made in way that Snnot be
publicly met Fortunately for tn "onI-
pany this institution can be purIic!Y
met here, and / now meet it by sayiNog
what | have said"
Vice President +. X. Hall of the New
England company was the first to tell
his story of the operations of the COM
pany, from the time it was organized in
1883. Mr.. Hall said:
sIn the early DAYS of the company
the rates were experimental. There was
no way that anybody knew how to
charge for service. The only change in
rate upwards on the part of the New
England company was at the time when
they changed from ground circuit to
metallic lines. That required change
in investment and change in rates was
made at that time. That was at the
time when the trolleys came in.
"Since that time the changes that have
been made mp to within four or five
years have been downward here and
there. but never a general change in
the rate schedules so that the result is
hat the average revenue Of the company
for exchange service is per station lower
than it ever was in the history of the
This question of rates is absolutely
, question of service and has nothing
% do with the matter of rentals.
"You cannot make rate cover every
particular individual. One of the funda-
mental bases of exchange rates in q
arge territory or in community of diff
erent size, the rates must be necessar-
ly lower in the small exchange than in
he large one
CAS- the exchange grows larger, the
Expense OF service, the cost of the serv-.
&c and the value of the service win in
rease."
Mr.. Hall stated to-day that all the
wants is TO get enough money
o meet the running expense, to pro-
ect the investment of the stockholders
" keeping the plant good to pay a
easonablc return on the investment and
o allow proper margin of safety in
he form of a surplus to be used for
Extraordinary contingencies.
He then went on to say that there
re eight classes of service under the
,ew England company's system. three
i which, designed by him as Nos 6. I,
nd s, apply to Vermont. Having said
hat. the witness began an explanation
f the service in Vermont, taking up
and Burlington first of all.
Ie was in the midst OF that elucidation
'hcn the commission took an adjourn
tent over Sunday TO next Monday aft
moon 1t is probable that the hear
~ will continue for some time. as the
lew England company is scarcely more
han started on presenting its case.
New England Co.'s Side Outlined
Matt b. Jones. chief counsel for the
ew England company, made the fol-
wing statement at the opening of the
roceedings directly concerning his COM
lnv:
" nat are tne questions dJ ISSUE IN
MS proceeding? II is alleged that the
ties for exchange service and telephone
'rvice charged by the telephone com
lnies Of Vermont are unreasonable. and
rat in order to make them reasonable
schedule Of rates proposed by certain
,ecial counsel and set out in detail in
Confined on third pagel