The Barre daily times. (Barre, Vt.) 1897-1959, 1913-07-16
N. E. TELEPHONE co.
HAS A MONOPOLY
Committee Recommends a
Reduction in Rental and
Toll Charges

yesterday afternoon to Governor fleteh-
err at Montpelier, and he in turn pre-
scented the matter to the states public
service commission with the recommen-
dation that the commission issue such
orders "as will speedily relieve exist
ing conditions and finally determine the
states right to regulate and control
these corporations" The special coun-
sci had reported that the New England
company has virtual monopoly in YER
mont and that some of its contracts are
unlawful
In transmitting the counsers report to
the public service commission, Governor
Fletcher said:
This report speaks for itself and re-
quires no comment at my hands except
perhaps to suggest, that in view Of all
the circumstances particularly the re-
| fusal and neglect of the telephone com
pany to give certain information that
the burden should properly rest upon the
telephone company to show that the
present rates are fair, just and equit-
able
Conditions as described in the report
of these gentlemen make il imperative
| for the state to obtain relief for its
citizens. and | wish to express my be-
lief that it is your plain duty TO take
such steps and to issue such orders based
upon liberal and seasonable interpreta-
ton of your powers as will speedily re-
leve existing conditions and finally de-
termine the states right to regulate and
control these corporations.
| "lf by reason of such action on your
part, questions of law or equity present
| themselves which either the state or the
/ telephone company may elect TO appeal
! to the supreme court, the state may
properly ask an early adjudication of
the same and thus determine whether
additional legislation may be required at
the hands of the special session of the
legislature which for other reasons
shall be compelled to call"
Report To the Governor.
To His Excellency,
Allen NJ. Fletcher Governor.
| Sir:--Your special counsel, appointed
TO investigate telephone companies doing
business in this state, and given author
] ity to make such investigation by the
public service commission, have attended
to their duties and respectfully report
to Your EXcelency, as follows:
Our investigation has covered each
telephone company doing business in this
state, which is of any substantial size
and Importance, and while the territory
of all the companies has not been ira
yersed by us, We have made thorough
and complete investigation of sufficient
number of the several classes of such
companies to enable us to study intelli-
gently the data and information gath
cred concerning all of the companies.
| We further state that the officers OF
the New England company and its sub
salaries have conceded that the COM
panies and territory, which have been
the subject of our more careful exam
nation and investigation are typical and
standard of all the companies and ter
ritory in the state.
We find that the New England Tele-
phone g. Telegraph CO., a corporation
organized under the laws of New York,
owns or dominates substantially all OF
the telephone business in this state. The
business controlled by the New England
company is accomplished by ownership
of majority of stock of certain subsi-
diary companies, which it has either or
ganized or purchased, and are located
and doing business in different sections
of the state, which subsidiary companies
cover all the congested sections of popu-
lation in the state not covered by the
New England company itself, and which
said subsidiary companies were created
or acquired, in our opinion, for the sole
l I'D Of 1TIp On n l.
ton from the field of telephone business
in the state of Vermont.
The other companies in the state do
ing any business of Importance, are dom
mated by the New England company
by reason of certain connecting, traffic,
and purchasing contracts. The traffic
contract, so-ealled, provides substantially
the terms on which the Independent
company may connect with the New
England lines; dictates rules and regi-
lations to be observed by such connect
ing company; furnishes the tariff of toll
rates to be charged and collected by such
company; prohibits the connection by
such independent company with any 9TH
er company not having connection with
the New Egland lines, without first OBJ
tanning the consent of the New England
company; and prohibits the invasion OF
the territory of one company by anoth-
err This contract is also entered into
by the New England company with all
its subsidiary companies in this state.
The purchasing contract, so-called. has
been made between the New England
company and all of the subsidiaries and
with large number at least of the So
called independent connecting companies
which provides that such subsidiary com
pany or connecting company, respective
iy, will, during the term of the agree.
ment, order and purchase from the New
England company, all telephone equip
ment. material and other articles re-
quired by it in the conduct of its tele'
phone business, except certain small ar
ticles for emergency use; also prohibits
such subsidiary or connecting company
from selling any of the equipment OF
material so purchased to any other com,
pany or individual. We consider all
those contracts both as 70 traffic ar,
rangements and the purchase Of material
aud anttipuent 1tnoua iifiedly UoTnIClOuS