Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-12-18
PHONE EVIDENCE
NEARLY FINISHED
Testimony on Advertising, Free
Service, Holdings of Stock
and Net Earnings.

ny before the public service commission
to-day indicated that the company was
rearing the finish with the chances that
ne end OF tho week would see the full
case presented There are q few com
opnics yet to be considered like the Coos
Telephone company and others on the
state line. but they are not expected to
iCcupy much time If thcy arc taken up
low
The tive most important witnesses FOR
he telephone company, Nice-Presidcut
SAL and Auditor Lraglcy. we're both on
be stand to-day to supply the !rforma-
lon asked by counsel for the State when
hey testified on the direct and which
they were then unable 20 give until the
Information and statistical detail had
been compiled. Probably the most i'm
oortant bit of evidence in the days pro-
ceedings was the statement submitted by
Auditor Longey that the net revenue of
The New England company and its four
subsidiaries in Vermont for the year 1912
vas $50 650.43 which represented 197 per
cent. on the actual investment, this
figure making no allowance for the item
known as "cost of establishing the busi-
ness as a going concern"
According to the testimony of Vice
President Hall this morning the cost of
advertising in Il Vermont newspapers for
1912 was 81, 1892 A. The Vermont Telephone
company spent 1927 for advertising IN
three newspapers during the year and the
Passumpsic company, $24750 in seven
papers During the afternoon Mr. Graham
sought - bring out more about .he ad-
vertising and publicity department of the
company
ADVERTISING IN NEWSPAPERS.
Mr.. Graham inquired if the advertising
contracts with newspapers produced a
minimum charge for advertising which
the company paid to individual newspa-
pers YES" answered Mr. Hall, We
agree to take certain amount and they
lg1.ee to sell at least that much adVertis-
ing and by doing that we can get the
minimum rate instead Of paying the tran
'ont rate"
THAT is" asked Mr. Graham, you
nav a minimum price regardless of wheth-
er there are any insertions in the paper|
I'VE have contracted for so much
space, and If we did not use IT we would
have to pay for 1t, AS a matter of fact
we do use it."
And is that advertising charge in ac-
cordance with the contract or the amount
of space contracted for, or as the adver-
Using is inserted and the space used?'
MY impression is that for convenience
that is in fact. know, that Is charged
I'D so much month. 1t is divided by l.
and then a record kept of the insertions
from time to time, as a matter of con
venience in bookkeeping, If there is any
ovcr-run why of course that would CONF
after the other has been used up"
Asked in regard to the advertising pub
lefty department Mr.. Hall explained the
functions were ITO look after the adver
Using matter and to prepare wheneve
allied on, statement for publicity, and L
prepare circulars to subscribers. Mr.
iIall said that sometimes the matter was
furnished in plate when there was erea
acal OF it, also some OF the standard ad
vertising that is used in all sections, bu
the local advertising is locally prepared
copy.
Mr.. Hall said the department was in
charge of T. J. Fceney, who was present
at the hearing ana acting under special
instructions from him. Mr. Graham did
,ot press the question further as to what
hese instructions We're.
FREE MUNICIPAL SERVICE.
Mr. Halls testimony consisted prin-
;ipally OF answers to questions calling
or specific statistical or technical data
which he was unable to give from
memory when he first testified.
Regarding free service to municipalities
he said the company gave one free tele
phone for each 1900 Of population or le
the municipality have the option of a dis
count of one-thrd on such telephones
as were required for public use.
"a question asking for statement o.
all rebates and discounts showed tina
s11S was allowed in this way to various
hospital and charitable institution
throughout the State, and that tn
balance of the gross sum of si,l4 repre-
scented rebates to subsidiary and connect
ing companies for prompt payment o
their bills for the rental of instruments
Mr. Hall said a record of the book
disclosed no free telephones supplied 4
fraternal organizations, but that ther
were three telephones supplied at rail
road stations without charge, The place
thus favored We're Brattleboro, PoWna
and Woodstock Mr. Hall said these tel"
phones We're put in because the SUB
scrihcrs needed connection to the rail
road stations, The commission sad tina
it now had an application from al
Arlington firm for a telephone In IN" rail
road station at that point, and Chairina
Bacon said he saw no reason FOR dis
eliminating in favor Of Hrattebpr3 O
amy other TOint
CONTRACTS WITH RAILROADS.
Mr. Hall submitted a list of contract
with various railroads, most of ther
based on an agreement to swap tclephon
service for transportation and trelSt
service. and said they were now work
ing on a new contract under the tern
of which the railroads and the telephon
company would each pay fun rates f1
what it gets, and under which contrat
the telephone company would put in pa
stations In all railroad stations with e'
tension sets connected to the freigl
houses.
Mr.. Hall said, in response to anoth'
question, that during 10 years from 1902
1912 the New England company had pal
the Springfield Local Telephone compan
5000 in commissions and S,797 in "oth'
line" charges that Is, an additions
charge of five cents on a toll call fro
New England point to telephone
the territory of the connecting compan
Operators at State House booths,
iaid receive no salary from the tell
phone company while so employed.
Comparing the company's average il
vestment per station in New Englan