Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-10-09
LEARN OF LIMITED TERRITORY
Stock Ownership and Purchas-
ing Contracts Told Commits
sion by Proprietors of
Small Companies.

developed that neither the clerk Of tho
commission nor the State treasurer could
determine It.
Efforts Of special counsel for the State
are directed to showing whenever any
connection exists between any of Tho
smaller companies and the New England
company either in the way of stock
ownership, lease, purchasing contracts or
in any other way.
I'm continuation Of the examination Of
+. B. Newell Of the Heath company this
morning. it was brought out that the New
England company took more than half
a new issue Of stock last year, or $3.50
out of n total of $4,000.
This company sets aside onc-half Of
one per cent. Of it's plant account as a
maintenance reserve or depreciation
fund; AMI has accumulated surplus
OF $4,000 since it established this fund
in 1909. after cXpending what was
necessary for repairs. This fund ap-
pears to Chairman Bacon and counsel
unwarrantably large. as their line of
questioning indicated, but Mr. Newell
asserted that this amount was insult
fcient for reconstruction that must
soon be made, and he thought it woul |
he necessary to set aside a larger per-
ccntage. This is because some of the
older portions of the line must he re-
placed and because the cost of labor
and material is increasing
The company also pays one and ono
half per cent. of it's pay roll into an
Insurance. disability and pension fund
established by the American Telephone
company and carries no other disability
insurance for it's employees
INQUIRE ABOUT PAYMENTS.
Close inquiry was made regarding
payments made to the New England
company. 1t developed that the lar
ger part of these payments was for
material purchased and that $17G9 60
was paid for toll percentages
Most of the material purchased is Of
the Western Electric company's make
and on certain class of material tho
company pays a commission of two
per cent. to the New England company
through whom it is purchased. Mr..
Newell said they had found it prefer
able to buy inspected material and pay
this commission.
The cross-eXamination Of MIR Newell
ultimate details of ownership, CONSTITUTE
ton and operation.
Mrs. y. II. Skeels Of the Isle La N,otte
company, operating in Isle La Motto and
Alburg stated that the line was built by
her husband and that all but two of the
stockholders were people in the vicinity.
The New ENGLAND company has no in
tercst in the company, but there is "a
purchasing contract with that company,
recently entered into, by which a COM
mission of two per cent is paid on Ger
tain purchases.
The connection toll contract provides
for 60 per cent. to the originating COM
pany.
The company's original charge was S12
year but this has been raised to SIS,
with a rebate of 81 for prompt payments.
Inc company has 40 miles of line and
expects TO desire to raise the rate to SIS
nat 10 meet the expense OF certain re-
constructor WhicA VIII be necessary next
year
ne company is capitalized al 5000,
with plant worth about SS'oS and has
"cNel P"iu any ulN'ue"ds'
WOULD MEAN a THIRD OFF.
\ reduction of 20 per cent. in toll rates
would seriously affect the companv. rs
1t would he in effect a reduction Of
80 1-3 per cent, since the rate must bo
calculated on the nearest multiple of
five QUITS under the proposed order of
the commission. The rent has been
doubled and the wages of operators in
creased and Mrs. Skecls could not see
how, with Hat rate of Sl2 it would be
possible to raise the money required for
necessary repairs.
questioned by MI Jones OF the New
England company Mrs Skeels stated
that 'he purchasing contract was entered
lH'o voluntarily because she thought IL
W Wv "'N""'"Sc Vi i'l company anu
''"' - O'"'u NC "''''''''"eu ~ any '"'e
-, ~ ""S
- WV oP', " i'"e III
t.P
no 80 ',i
o,,o.,,,- '.,, ,. .,''' ','''S 20
~ ,r,at. a,,.,. 90 ,.
... .ia., 60
,aat ,.aor tha,. roooi,,,d GO 10, 60 a,,1 rat1
,,,t $zt-oec Ioo ,,r, hoIoroo 80 q qez n,
-, 80, ,b, 600, 90 ,,,,, ho,,,o .,.,,,t,.ol "a,
,,.,.. ,oo,,,,oonor, .ont ,ioi,. ro,tac, T.,
.,,a,. ao,,,.,,to,,,,, a,d ,,a,, It, 1,ha,.
I,od irtordod 10 roiso tho rato mic ,.o.r 70