Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-10-02
OVER F0URTHOF
CONF PAN|ES HEARD
Public Service Commission Dis.
poses of 29 Out of 1O6
in Two Days.
PHONE DEVELOPMENT TOLD
PrOprietOrs of Small Concerns
Figure Increase in Rates Is
Needed to Create
Reserve Fund.
PHONE DEVELOPMENT TOLD

! Montpelier, oct l.-Governor A. NJ
Fletcher was an interested spectator at
the telephone hearing before the public
service commission at the State House
to-day. The attendance was smaller than
! on the opening day, as those representa-
tiVes who had been heard and those who
did not desire to be heard in opposition
| to the proposed order for the reduction
of rates had gone home
Representatives of four So-called inde-
pendent companies We're heard, thought it
developed in the case of one of them,
the Heath company, that the New Eng
land Telephone and Telegraph company
was the largest stockholder and was
represented on the board of directors The
hearing adjourned with Mr. Newell of
that company under cross-.xamnation.
The examination of the special coun-
sci for the commission is searching and
complete, covering cost of construction
and operation and relations with other
companies.
OF the 1906 companies on whom notice
was served % have been disposed of by
hearing or otherwise.
MAY ADJOURN FOR y WEEK.
1t is probable that an adjournment
will be taken Friday afternoon over next
week, r. II. Deavitt, OF special counsel
for the commission, and J. c. Sargent
of counsel for the New England COM
pany. are members of the board of bar
examiners and it will be necessary for
next week.
Three independent companies We're dis
posed of at the morning session, f. A.
English of Hartiand, j. Ralph Pierce
who. with his brother, operates the Fair.
lee company, and j. w. Farnsworth of
Colchester.
Mr.. English operates only a small
local line. a large part of the business
of the Fairlee company is I'm New
Hampshire.
Mr. Farnsworth, who charges his
subscribers so a year or SIG, where
one subscriber has two phones. told an
interesting story. He first built a short
line for his own convenience and ex-
tended it at the request of his neigh
bors He built most of the line him
self, using small poles, one inch and a
half at the top. which cost him % cents
each The switch board is in his house
and until recently all the work of
operation, repair and extension has
been done by his family. Mr. Farms
worth is jeweler and has made most
of the transmitters he has i'm use. The
present rates are proving too low, per-
mitting no reservation for a deprecia-
tion fund and he believes it will be
necessary to raise them.
T. B. Newell, representing the Heath
Telephone company a Massachusetts
corporation, presented statement show
ing that his companys business, after
paying six per cent. dividend produced
n surplus of 1925 last year. and that if
the proposed reductions We're to be put
into effect there would be a yearly deficit
of s1057O2
This company, with 10000 of stock is
sued has % stockholders in Vermont, own
ing 80 shares. with a par value of 81, iG0
The New England Telephone company
owns or controls 1.3SS shares.
Mr.. Newell protested that fiat rate
reduction would be very unjust, that
some companies might hrow rich on ra tes
that would ruin others.
-NolltfS 70 dpbtdl 1T tnlS nearing We're
served on the companies individually and
II is possible that if any order is issued
by the commission ordering a reduction
in rates it will not be general but will be
made with regard to the conditions of
each company.
Mr. Newell testified on cross-examina-
tion that his company furnished free
telephones to town offices in Massachu-
In
know how this custom originat ted nor
could he give any reason for continuing
1t.
He stated, as did several Others that
he had purchasing contract with the
New England company. and that most
of the supplies were of the Western
Electric company's make, bought
the New England company,
and that on these purchases aside
from receivers and transmtters, a
commission was paid the New Eng
land company. lie stated, as others
did yesterday, that he bought supplies
in this manner because they were re-
liable and he could buy as cheaply as
anywhere else.
EXPLAINS GROWTH OF EXPENSES.
The cost of operating "A telephone sys-
TEN, said Mr. Newell is greater pro
as the business increases
In size because as new subscribers are
added the number of calls per station
is increased.
There Is a great similarity in the his
tory of these small companies. and their
history epitomizes the history of the
telephone business of the country.
Some man builds a short line for his
own use or for the convenience of a few
neighbors others ask for an extension
to accommodate them. and the business
gradually grows from the pressure of
demand rather than through the efforts
of the original builder or promoter
Then follow relations with other COM |
panies and larger companies, necessary
for the development and extension of the
service. division and restriction of terri |
tory, connection contracts, switching
charges, purchasing contracts, commits |
sions, division of tolls. until the little