The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1913-11-04
NEW ENGLAND HAS
DEPRECIATION FUND
Seventeen Per Cent Held for This
Purpose by Telephone Company
President Says.

MONTPELIER, Nov 4-President
Spaulding Of the New England Tele
phone and Telegraph company con
Guided his testimony before the public
service commission yesterday afternoon.
Attorney Cook continued his cross-eX
animation, taking up number of points
that had been referred to in the direct
testimony.
At Mr.. Cook 5 request Mr.. Spaldi z
applied his New England standard OF
depreciation charges to the plant Of the
Champlain Valley Telephone company,
and figured that il would represent S.33
[per cent calculated upon the total val
ne
/ TO some of the questions asked he
said he did not have first hand informa-
tion and that this data would he sup
piled by the general auditor.
The four subsidiary companies were
not under contract with the New Eng
| land company to use American Tele-
phone and Telegraph company trans
mitters, he said, but inasmuch as the
| New England company felt that this
was the most economical thing to do
the subsidiaries naturally did likewise
As a matter of fact, he said. the
subsidiaries really get all the benefits Of
the services received on account Of the
~ per cent payment to the American
Telephone and Telegraph company,
without contributing their fair proper
tion Of the expense.
Mr.. Cook asked Mr.. Spalding If he
was not quite sure he Mr.. Spalding) was
mot asking for an increase of rates.
Mr.. Spaulding said he knew of no such
petition and of no such intent, Mr..
Cook asked if Mr.. Spalding did not
know that he Mr.. Cook had made
a kick about an increase in the Pas
sumpsic rates last spring.
The witness said he had some recol-
lection of that fact. but didn I remem-
her that the commission had ever re-
ported this raise was objected to. The
point OF this line Of inquiry appeared
to be contained in an extract from a
letter from the president of the Pas
sumpsic company to the clerk OF the
public service commission, which read
ae follows:
Il trust the commission viii allow
the rates rs fled, rescrving the right te
open up the rcasonahlcncss of these
rates upon complaint
Mr.. Spalding said that neither tho
New England company nor its subsidi
! aries carried value upon any Of it,
franchises.
i NJ b. Jones, general counsel for tn,
New England company, asked mum
Der Of questions to make clear som,
points on the records and to furnish
certain statistical information asked fol
F., by the commission.
Mr.. Spalding gave it as his persona
opinion that great changes in the tele
phone field were stii probable not
withstandiug the rapid advancement
already made, mentioning two posi-
bile points OF development, namely
wireless telephony ana automatic o
i | semi automatic switchboards.
He said his company had accumulate
depreciation fund of l. per cent o
its value, but had spent 100000 NOR
this year than it ala the year before
and he said that lie thought this deprc
citation reserve ought to he allowed L
increase until II had reached - pc
cent. In order To make duc provision
for the safety Of the investment. an
for making such changes rs condition
might demand.