The Barre daily times. (Barre, Vt.) 1897-1959, 1913-10-16
If Proposed Rates Are Put
into Effect on New Eng
land Telephone Co.
so TESTIFIED
VICE-PRES. HALL
He Estimates an Aggregate
Loss of $108,367 a Year
in Income

That the New England Tel. & Tel. Co.
would lose an aggregate OF SlO9,3of a
year If the proposed reduction OF rates
in Vermont goes into effect was the sub
stance of tue testimony OF Vice Presi-
dent u. X. Hall before the state public
service commission at the State House
in Montpelier yesterday. Mr.. Hall tes-
titled that there would be q loss OF $751;
1857 net revenue as compared with the
exchange service revenue under the pres.
ent rates and loss in intra-state tolls
of $l6,575 and an approximate loss of
$4,000 through the abolition of the So
called reduced rate charges. The an
nual surplus would be wiped out, he
said, and there would be a deficit.
Continuing his testimony, Vice Pres.
Hall said:
"The aggregate net revenue of the
New England company and it's four sub
sidiary companies in the state OF Yer
mont amounts to $4,000 per year, which
we shall show is less than two per cent
on the property used in furnishing the
service.
"As we understand the law, we are
entitled TO earn a. least six per cent.
Accordingly any reduction in our pres
ent revenues would amount to confsca-
ton. As a matter of fact, the rates
which arc proposed in this complaint
would not only wipe out the small mar
gin of profit now existing, but would
turn the present meagre profit into a
substantial deficit.
"Let us see first whether Vermont Is
now being fairly treated. The Vermont
rates are the rates appearing in the
regular schedule OF the company, which
are in force throughout its entire ter
ritory for communities and exchanges
OF similar size. This general schedule
has been worked out under the instuc-
tions OF and with the approval of the
public service commission of another
state.
"rhat these rates are well and equit-
ably adapted to the requirements of the
citizens of Vermont is shown by the
fact that under this schedule the tele-
phone development per 100 of population
is higher in the state of Vermont than
in any other state served by the New
England company. Figures as follows
are for the average number of tele-
phones per 100 of population;
In New Hampshire all. SO per cent
In Massachusetts ........, 80 per cent
In Maine ..........,.... 30 per cent
In Vermont ........,....l 0.2 per cent
"This would seem to show conclusively
that the rates are well adapted to YER
mont requirements.
"Supposing we look at it from another
point of view What is Vermont paying
for its telephone service as compared
with other states The average revenue
for exchange service per telephone sta
tion in Massachusetts, is $3095; in New
Hampshire ii is $3.50; in Maine, S24.90;
and in Vermont, S22l0, showing that
Vermont produces per telephone station
the lowest average revenue Of any state
in the territory. Thus again, looked at
from another point of view, it would
seem that the present rate schedules
treat Vermont fairly.
yet, in spite of all facts, the com
pany undertakes to maintain just as
high q grade of service in the state of
Vermont as in the more populous and
profitable sections of its territory, and
as an illustration, | have no hesitation
in stating that the toll service between
the city of Montpelier and the city of
Boston is Just exactly as good and as
dependable as the service between Bos-
ton and New York.
@Now as result. it and its four sub