The Barre daily times. (Barre, Vt.) 1897-1959, 1913-10-14
GETTING MORE THAN PAID FOR.
Telephone Users Are Thus Favored in
Some Instances.


Some Instances.
Vice President f. X Hall of the New
England Telephone company resumed the
stand when the hearing before the Yer
mont public service commission relative
to proposed reduction of rates was re.
sumed at the State House in Montpelier
yesterday afternoon
There are, he said, two elements en-
tering into the cost of telephone service
preparation and furnishing Some new
construction is necessary before service
can be commenced. and In this respect
the telephone business differs from any
commercial business. The cost OF prep
aFation can never be accurately deter
mined, nor can the cost of furnishing,
for it cannot be foretold what new con.
struction will be necessary for any sub
| scriber or what amount or character OF
service he win require.
The company tries TO make a proper
adjustment of rates so that no class
of service and no exchange shall be op-
Grated at loss.
| The cost and the value of the service
are the two important items to be con-
sidered in fixing rates, and the value OF
| the service is less in the small than
in the large exchange.
In group eight, which includes the larg
er part OF the Vermont territory, the
rates are as follows, Business S33 S24,
| $2l; residence S24, S2l, SIS. These rates
are for one, two and six party lines, re-
! spectiyely.
The preparatory cost may be as great
for residence as for business con.
neetion, but the dem for use, that
il, the service furnished, will be less.
so a lower rate is established The
higher rate in either class of service is
charged for the privilege of freer use OF
the line
The business man or the professional
man frequently receives service much in
excess OF the rate that he ought to
pay, but that does not mean that he
ought to pay higher rate for the value
of the service will be modified in the
charge by the items of cost.
The greatest value to the commounity
as a whole is to have the exchange rates
such as will bring about the greatest
use OF the telephone in the community.
1--WE believe the rates in group eight
are lust and reasonable. As we 20 from
the smaller to the larger group the use
OF the telephone increases and the cost
and the value of the service also in
creases."
While the rates are largely increased
in the larger exchanges. provision is
made for the smaller business user. by
giving measured service rate, based
on charge of five cents per call for
the two larger groups and four cents
in the third and fourth groups.
Going from the smaller TO the larg
er groups. the business rates increase
more rapidly than the residence rate
and the elements OF use, cost and value
increase more largely in business than
in residence use.
The rates for the various groups were
presented to the Massachusetts commits
sion from time to time in the course
of preparation and were approved by il,
and on such approval it was deemed
that they should be applied to the whole
system and not to Massachusetts, alone.
These rates have been put in force
in Massachusetts,, Vermont and New
Hampshire and to some extent in Maine.
and the results thus far show that it |
is better balanced than the old schedule |
There was no increase in rates by the |
adoption of the new schedule and the |
company estimates its net yearly loss at !
more than 100000.
The effect of the changed rates has |
been to increase the number of single !
party lines. In Vermont the number
of single party lines has increased from
1913 to 1874 per cent; two-party. from |
20.5 to 3S.5 per cent; while the multi |
party lines decreased from 672 to 46l. |
Mr.. Hall cited the changes made in
the different groups in Vermont, show |
ing that in all cases reduction had |
been made or that changes in the char
acter of service had been made.
In Burlington. for instance. the bust
ness rates remained the same; the one
party residence rate dropped from $50
to S27 two party from S25 to S2l, and /
six party from S2l to SIS.
The rates of the subsidiary eompan-
les do not entirely follow those of the
New England. The independent COM
panies, operating under license from
the American Bell Telephone company,
fixed the rates as they pleased and there
was a great variety.
As the New England company pur-
chased these lines il did not always,
for various reasons, make their scned-
ules conform to the standard. A sched-
ule of the rates of the four subsidiary
was submitted, which showed
that the rates are substantially the same
as the New England, but there is an oc-
,asional slight difference sometimes high
pr. sometimes lower in the charge for
certain classes of service.
4
Nlro..L,or r-.-.. "