Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-11-13
COMPANY AFFAIRS
EXPOSED To VIEW
Passumpsic Telephone Co.. in
Which Complaint Originated,
Is Taken Up.

Montpelier, Nov. G.--Thc affairs of the
Passumpsc Telephone company, within
Nhose confines originated the complaint
WAT has resulted in the present inquiry,
were spread out before the public scrv-
lee commission to-day. When adjourn
mcnt was taken this evening, the attor-
ucys for the company had not completed
the presentation of their side Of the case.
THIS company was organized in 19o, and
has outstanding common stock to the
value of sl5OS1j, and preferred stock to
lhc value Of SllG,2so. 1t paid no divi-
h,nds from 1907 until 1911 In the latter
year and i'm 1872, six per cent. dividends
were declared on the preferred stock
During 1913 TWO quarterly dividends of
=. per cent. each were paid but the dlvi-
dend for the third quarter was passed
No dividends have ever been paid on the
common stock. During 1872, the net in
come was st1169.o0, on property valued
a. $3362l7.S1 This was the substance
Of their presentation.
When the cross examination is rca, he'd
It is expected to be particularly Interest,"
| Ing because Attorney Cook one of the
counsel for the State was one of the or
rated 10y the Passumpsc Telephone COM
pauy
The proceedings " the day began with
"a crosse examination Of General Audi
or Longlcy by Attorney Graham with
."tcrcnce to the affairs Of the Franklin
county company Considerable time
vas given to some discussion as to
whether going concern value" should
| 40 s'1ara1 IL, ia
erty As Mr.. Graham read decision
F IN the Iowa reports of the case of the
| Cedar Rapids Gas company VS. Cedar
Rapids this item of value should be ex-
cluded. but as Counsel Jones for the Tel
ephone company read more fully from
that same case, it seemed to be the in
I tention Of the court to recognize and in
clude It. The commission finally decided
to put the report in evidence and con- |
strue it for itself later on
one OF the Interesting features or the /
cross-eXamination was the bringing ont
Of the fact that in 1908 the Franklin
County company had to pay judgment
amounting to $3.50 a. which was charged .
against the maintenance account Of that
company. This represented verdict on
account Of the injury to an employc and
necessitated a dividend cut for three wears
Tho attorney for tho plaintiff i'm this
case was John W. Redmond. who repre-
scnts the passumpsic Telephone company
in this inquiry.
At the afternoon session the balance !
sheet of the Passumpsic Telephone com
pany was presented showing the follow .
Ing assets: Land and buildings, s1,575.4G: /
outside plant and equipment. $500, 1862:
office furniture, etc, s42l1.74; supplies
SA6l3.5i; working capital, sl5.O76.44, maxi
Ing total of assets amounting 10 ,336.-
.1ISI In addition there was presented
a figure of s9s,oo0 as representing the cost
of establishing the business
The total revenue for the wear 1872
was given as s9SOS1.3l, made mp as fol-
lows: Exchange revenue. %79.1S g; other
exchange income, 1856; tolls, sl7,SO3 q:
other toll income slG9l7.
The total expenses were sS692not. d.
u vidod into the following items: Execu-
tive, accounting, financial anil legal.
Sl,63' 81; operating, S2,2o9S; repairs. s32.-
u@-o; station removals, s2495. SO; rights
and privileges, S3,o59.2s; insurance. Sl.2la.-
81 taxes. S2,26401; depreciation. $4,000
The net revenue represented 81 per
rent on the total investment
The net earnings by wears were given
as follows. For 1907. *.5149S: on property
valued al $4,000
For 1905 S92lG. on a $4,000 worth Of
property 1t further appeared that there
was really net loss this year of 81 49,. 50,
which left in the surplus account only
k9a62
In 1900, the earnings were swallowed
up by expenses and no profits were shown
pm property valued at sl5436l10
In 1910 the loss was $S7oos. on an in
Eestment of $22l S3S4.
In 1911 the profits were si,S62l3, on
property amounting to s2is 695,Oi
In 1912, the net income was Sl1,163O9. on
average assets amounting to 1886. HIS
The amount of Indebtedness outstand-
ing June 30, 1919, sl2S, Till The amount
aid by as depreciation reserve as of
he same date was s12,43213 This was
Fmaller than for the preceding year, and
he explanation for the smaller figure
was the construction of a new switch
board at St Johnsbury.
The new addition made to the Passum-
Fic property from 1907 We're given in de-
all and amounted TO $50, 1851
At this point in the case adjournment
vas taken until next Tuesday afternoon
two O'Clock.
Inventory Of Champlain Valley Tee-
hone company filed this afternoon for
he year ending June So 1918:
TELEPHONE ASSETS
land and buildings. outside plant
and equipment ..,,,,,... ........ so Oot.9S
Jfice furniture, teams, tools. etc. $50 "a
supplies ....,.. ........... .,...,... 25OLb
Working capital ..,.. ......,. ..... 5.l29 20
Total telephone assets .......... S7S, AIS col
% which should be added mot
carried on the books cost to
establish business as a going
concern" ....... ....... ......... 90, 300 90
500, us 20 {
REVENUE. l.