Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1913-11-19
MORE PASSUMPSIC FACTS
CONTINUED FROM PAGE ONE

@. Now, was there anything al
lowed in connection with the purchase
of the Vermont Peoples Telephone
company for going concern value?
A. No, nothing was allowed for
going concern value.
O. Was anything allowed for going
concern value in connection with the
purchase of the Essex Telephone conf
pany. about which you testified last
week.
A. Nothing was allowed directly
for going concern value in connection
with the purchase, but it was bought
for an amount which was slightly
larger than the appraised value of the
property. namely. the amount paid was
SIS. 500, and the inventory was $14.-
GIT 70; the difference being 1882 %.
@. And, did that have any relation
to going concern value whatever?
A. None whatever.
@. Simply the difference between
the sellers demands and the purchas-
er's first idea of value?
A. Yes, wholly.
@. Now, do you find on examining
the inventory that anything was al
lowed for going concern value in con-
! Citizens Telephone exchange?
| A. A small sum was allowed name
ly, So, 772.
@. And, was anything allowed in
connection for going concern value in
connection with the Mcclure property.
purchased by the P assumpsic company?
A. In connection with the purchase
of the MCGUIRE property, the appraisal
as originally made had added to it
81, 844 as something in connection with
the going concern value. The final
price paid for the property however,
resulted in eliminating part of that
amount, so that the amount paid for
the property finally was 1884 in excess
of the appraisal for the physical plant.
@. And, did that sum have any
relation to going concern value of the
property?
A. There is no relation whatever !;
the size of 1t is so small that it is
wholly immaterial.
O. Now, was anything allowed in
connection with the item of going
concern value on any of the subsequent
purchases of the Passumpsic company
that is. after the purchase from Nc
CURE?
A. No; there were two other pur
chases, one purchase from the New
England Telephone & Telegraph COM
pany; the amount of this purchase
being 81, 436 80. and nothing being
allowed for going concern value and the
other being a purchase of the Green's
boro and Glover Telephone company
for 81, $50 and nothing being allowed in
that case for going concern value.
Also there was purchase of a small
bit Of plant from the Citizens Tele.
phone company for SOL g. and nothing
being allowed for going concern value
in connection with that purchase.
Comparison of rates were given
between the Passumpsic and Cham
plain Valley companies. which varied ir
some Instances in favor of the Pas
sumpsic and in other in favor Of the
also shown that the rates in ST. Johns.
bury were higher than in the rest OF
the Passumpsic territory.
The questions of bad bills, reserves
supplies on hand, etc., were taken up
Regarding supplies on hand the follow
: ing will be of interest.
Q. In view of the fact, Mr.. Long
!; ley, that during the six months of 191;
| which you gave US. you put into new
) construction only 81, 920 49, should yol
, think the keeping of from $4,000 tt
$500 worth of supplies on hand, i
they were new supplies that had beer
; purchased new, was good business?
A. l don't think that would b,
) generally the fact, but if they hav,
; the supplies, and don't know wha
| they can do with them, they cam
l sellEthem. If an exchange of the New
! England became overstocked witt
supplies it could transfer those supple
to some other exchange, but it is no
: as elastic conducting business in
separate company like the Passumps
7 company, as it is in connection witt
5 the exchange of the New Englan
company, that is, having acquire
supplies and paid for them it woul
not be as easy matter to sell thos
supplies back to the New Englah
: company, for the New England com
r pany would not want to buy them a
, discount and the Passumpsic com
pany would not want to sell them at
discount
: Q. You would consider it goo
a management to have those supplies O
e hand the first of January and accumu
! late new supplies and run in debt fo
Z them to the extent of $50. 600 the frs
!, of July.
> A. Not to buy supplies you didn'
: need.
@. Do you know of any need Q
Il that company having the S1S. 90
e worth of supplies, buying S12. 600 NOR
Il during the six months from Jan. ] t
e July l, 1913?
$ A don't think it did. my impress
n sion is that it added to considerabl
= = extent through the removal of plar
u and that | think we can make state
ment showing how much comes frol
= the removal of plant.
n Tcn,+ tr,,o fbo4
n dollars worth of plant removed 70
v put in additional new plants?
. A. Not always
r. At another time IN speaking of goin
concern charges Mr.. Longley said:
The number of stations in the teri
tory of the Passumpsic company @
= June l. 1907. was 1859. | testife
| yesterday in regard 70 partial chare
l oh