The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-11-06
AUDITOR EXPLAINED
TELEPHONE MERGER
Profits of Operating Exchanges in
Champlain Valley Small - Ad
iournment Today.

MONTPELIER. Noy. 6.-N esterdaS :
session OF the telephone inquiry before
the public service commission dealt with
the organization and financial details OF
the Champlain Valley Telephone company
and the Franklin County Telephone com
pany. these two being subsidiary compa
MES in Vermont OF the New England
Telephone and Telegraph company.
Attorney Deavtt cross examined Gen
eral Auditor Longley with reference to
the Champlain Valley company and con
Quoted an exhaustive inquiry into its or
ganization and affairs. 1t appeared that
it was originally intended to have only
one company covering the territory now
covered by the Champlain Valley com
pany.
1t was expected that Frank +. Chan
dlcr, who had telephone plant in Bran
don. would come into the merger, and
after the first plan had been arranged it
was found necessary to rearrange 1t be-
cause Of Mr. Chambers refusal to do so
He preferred to be in charge Of his own
| plant and he made TINS the nucleus OF the
Peoples Telephone company. \ few years
later the Peoples company was merged
with the Champlain Valley company and
the plan as originally conceived was ear
rled into execution.
! Dcductrng the expenses from the reve-
me left a net revenue OF 81 stool.
! The Franklin County Telephone com
pany was organized Nov. l., 1900, and
was owned by NJ. p. Abbott and others.
In June, 1903. the New England com
pany became interested in the Franklin
County company 1t surrendered the field
in and about St Adams to the Franklin
County company and effected an agree
mcnt by which il turned over its prop
erty in that territory 10 the franklin
tCounty company. taking stock of the par
value of 100000 in the Franklin company
in exchange for it, property.
Not until after this consolidation did
the company begin to pay dividends. Tho
dividend rate fer 1904 was 1 per cent
for 1865, 1906 and 1907. > per cent; fo1
1908, SA per cent; fm 1909, , per cent
for 1910 and 1871. > per cent; for 1912
~ per cent; and during 1913 there have
been paid three dividends at the rate q
~ per cent each.
1t appeared that the company on 1unt
30 1913. had accumulated surplus earn
iugs and undivided profits amounting I,
$5S15.97. but it was explained that thi
accumulation represented profits since tb
organization Of the company in 1900. ]
III had pdld = per cent there would he N
surplus. the company'S attorneys dc
clared, because the earnings required t
Tray 6 per cent would be $4,000 nor
than the actual earnings.
General Auditor Longey SAID that tn
(hamplain Valley company had a dcprt
cation reserve amounting to S9951, an
in explaining how this reserve might i
needed said that at the present time /
Nergennes they We're contemplating II
moving from one Of the streets there
the request OF the city authorities a Ian
Of poles which would have to be replace
10y two new lines on adjacent propert,
The cost Of this change viii approxinai
$1,000, and viii have to be made up frol
the depreciation reserve
The commission will adjourn tonigl
until Tuesday noon. to enable ATTORNEY
who arc engaged in the telephone hcarr
to appear in their eases in Supreme cou