Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1913-07-23
PHONE MONOPOLY in VT.
Special Counsel Report to Governor that
They Find Vermont in Grip of Trust.
Relief Ordered. Companies
Reply.

Reply.
AS mentioned last week in these
columns. report has been made to
Governor Fletcher by w. R. Graham
of Bellows Falls and E. A. Cook of
Lyndon, special counsel to the gov
ernor and clothed with authority as
! special investigators for the public
service commission. This telephone
inquiry was made on account of COM
plants concerning service and rates
made to Governor Fletcher by tele-
phone subscribers in Orleans and
Caledonia counties. They have ex-
amined substantially all the telephone
companies doing business in the state
and they find that the New England
Telephone and Telegraph company
owns or dominates the entire telephone
situation in Vermont, partially by
ownership of stock and partially by
certain alleged vicious and unlawful
traffic and purchasing contracts.
These contracts give the New Eng
land company control over the rates,
supplies used, transmitters and re-
ceivers furnished, and territory occu-
and monopolistic.
They find that all information that
would be of any great value. SO far as
figures are concerned is confined to
the Boston office of the New England
company. They find unfairness IN the
division of tolls, unfairness in the
method and manner of bookkeeping
and covering up of gain for the pur
pose of showing lack of profit in the
business, they say the New England
company advised them to hire corps
of accountants to audit the subsidiary
companies books, and have refused
; and neglected to furnish them with
important information. facts and
figures and copies of contracts and doc
uments requested by them.
They find that the American Tele-
phone and Telegraph company controls
l the New England company, the West
ern Electric company and other COM
= panies with which the New England
5 deals and through the New England
! the subsidiary and connecting cOmpan-
) les in Vermont, and that such control
r by the American Telephone and Tele-
graph company vitality affects the
business in this state. and in this
connection suggest that national
investigation is needed.
= Upon request of the officers Of the
| New England and subsidiary compan-
Albans, at which managers, officers
/, and general counsel Of the New England
I and subsidiary companies were present,
u but no person was present with any
information as to the expense of build
ing, equipping and running tele.
4 phone business.
The investigation discloses that sub.
stantially all of the independent
: companies as we'll as connecting
J. companies have kept their lines ir
good repair and made very satisfac.
Z tory profit upon much lower rates thar
> those charged by the New England
and subsidiary companies. This, the
e investigators say, is all the more sur
e prising when it is considered that the
independent and connecting companies
receive substantially no benefit from
. toll business. They find that a tax OF
: a per cent upon the gross earnings o:
the New England company is eXacte(
n by the American Bell company in pay
t ment for, so far as they are able tt
discover. nothing substantial excep
>, transmitters and receivers rented t.
Il the New England company; that tn
II entire gross earnings of the New Eng
land company for the year 1912 wa
is SIG, 1876, ,288, and for Vermont for tn
same year $3.50, 118. &c. The investiga
tors finally recommend that the burde1
in the first instance ought and SHOULD
f. rest upon these public utilities tt
u satisfy the public service commission
that their rates, charges and busines
= methods are fair, just and equitable
4. said commission having been estab
lished by law to protect the publ
? against unjust, unfair and unreason
y, able practices, charges and rates.
III They recommend 20 per cen
reduction of toll rates and a substan
!, tial lowering of rates for subscribers
g. g rentals that ought to be put in force
- and also recommend such orders b
the commission as will prevent an
er increase of rates, tolls or charges an
s. any Limitation of free zone territory
the future, without the consent of tn
!. public service commission.
T. 1t is recommended that the publ
r. service commission order the followin
rates for telephone rentals in Vermont
;e Business, / party $33. {
lg Business. 2 party 24.C
Business, party 21.(
Business, more than party 49,
r. Residence, l party 24.(
y Residence, 2 party 18.(
5 Residence. to party ISL
Residence, more than party 12.(
liu ~ After Gov. Fletcher had Studio
IL the report of Mr.. Graham and M
Cook he addressed a letter to II
a public service commission in which /
er says:
Conditions as described in the r
:, port of these gentleman make it in
u !" perative for the state to obtain reli,
- for its citizens, and wish to EXPIRE
my belief that it is your plain duty
en take such steps and to issue such o
nd ders based upon liberal and reason
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