The Barre daily times. (Barre, Vt.) 1897-1959, 1913-10-02
CANT AFFORD
REDUCTIONS
Heath Telephone Co. Would
Meet With a Yearly
Deficit
TESTIMONY GOES ON
IN VERMONT HEARING
Bought Equipment Through
the New England
Company

In testifying before the Vermont pub
lie service commission at the State
House in Montpelier on the proposed re-
duction of telephone rates in Vermont,
f. B. Newell, representing the Heath
Telephone company, q Massachusetts
corporation, said that after paying a
six per cent dividends his company had
a surplus of $l25 last year and that II
the proposed reduction was to be made
there would be yearly deticit OF Sl,-
O57O2
This company, with 100000 of stock
issued has 25 stockholders in Vermont,
owning 81 shares, with par value OF
So, 400 The New England Telephone
company owns or controls 1888 shares
Mr.. Newell protested that a fiat rate
reduction would be very unjust, that
some companies might grow rich on
rates that would ruin others.
Mr. Newell testified on cross examina-
tion that his company furnished free
telephones to town offices in Massachu-
setts, but none in Vermont. He did not
know how this custom originated nor
could he give any reason for continuing
it.
He stated, as did several others, that
he had purchasing contract withsthe
New England company, and that most
of the supplies We're of the Western
Electric company's make, bought through
the New England company, and that on
these purchases, aside from receivers and
transmitters, commission was paid the
New England company. He stated. as
Others did, that he bought supplies in
this manner because they were reliable
and he could buy as cheaply as any
where else.
The cost of operating a telephone sys-
TEN, said Mr., Newell, is greater proper
tionately, as the business increases in
size because as new subscribers are ad-
ded the number of calls per station Is
increased.
There is great similarity in the his
tory Of these small companies, and their
history epitomizes the history of the tel
ephone business Of the country.
Some man builds short line for his
own use or for the convenience of
few neighbors, others ask for an extern
sion to accommodate them, and the bus
mess gradually grows from the pressure
of demand rather than through the ef-
forts 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
territory, connection contracts, switch
ing charges, purchasing contracts, com
missions, divisions of tolls, until the lit
tie line, originally constructed for the
of small neighborhood, be
comes part of the great telephone net
work
Mrs. H. II. Skeels, secretary and treas
urer of the Isle La Motto telephone
company, testified that her husband
bailt the system and she had managed
il since her death. She said local peo-
pie were stockholders, the New England
having no shares. The com
pany owns its transmitters. She had
purchased supplies of the New England
since April and paid com
mission OF two per cent, considering that
the best to be made.
The witness continued that her com
pany had toll line connection with the
New England company, the agreement
being that 90 per cent go to the corn
pany originating the call and the bal
anoe to be distributed pro rata, accord
ing to mileage.
The rates of the Isle La Motto com
pany started at Sl2 year and she was
an increase TO SIS, allow
ing a rebate of 25 cents a month when
quarterly bills were paid in advance.
When eross-examined by NJ. B. Jones,
counsel for the New England company,
Mrs. Skeels said she made a contract
with the New England company volun !
tanfly, believing it to be to her advan
tage to do so.
J. w. Melendy of the Melendy Tele- |
phone company of South Londonderry |
testified that he started on S. rate,
increased it to $40 and then to Sl2. |
He now has $50 phones and he expects |
10 raise the rate to $l5. He said he
bought supplies where he could get them
he cheapest, largely fro mthe Western
Electric company.
On cross examination, it developed |
mat Mr.. Melendy and his family con-
lucted a farm and that he was deputy
sheriff and some times an undertaken !
ind sometimes an auctioneer. At this
,oint the hearing was adjourned until
afternoon.