The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-11-22
TELEPHONE HEARING
investigation at Montpelier Takes
New Lease Of life.

investigation at Montpelier Takes
New Lease Of life.
Montpelier, Nov. 19.--lt began to
lock RS If the telephone investigation
before The public service commission
was on the home stretch when At
t0lney Graham, for the state, began
his cross-eXamnation OF General
Auditor Longley this afternoon with
reference to the affairs of the New
England Telephone and Telegraph
company in Vermont
The end is not yet in siehj how
ever, although the inquiry into The
transactions CT the subsidiary com
panhs is practically concluded.
Evidently the examination Of ihe
affairs CT the New England company
is to be critical and exhaustive as
the state has retained the services of
Frank i. Fowle, weil-kncwn New
York telephone engineer.
Attorney Cook rcappeared this If
tcrnoon with his left shoulder band
aged on account OF injuries received
from II fall last week. Although han
dicappcd by dislocaiion and q
slight fracture, he will be able to
carry on his part Of the work.
The total capitalization OF the
New England Telephone and Tele
graph company is $43,0S5,40 Out
OF 251,716 shares the American Tele-
phone and Telegraph company owns
5S.4 per cent. It's original Interest
in the New England company was
obtained from the American Bell
company, its predecessor. That
company owned the Bell patents and
in 1888, when the New England
company was formed, it gave tht
latter company n license TO do bust
ness in this section Of the country
in exchange for stock amounting tc
426S, 000
When an inventory taken by order
cf the Massachusetts highway com
mission q few years ago disclosed 9
plaat value of more than S5o0o,oo0
n excess of thc book value of the
property this amount originally paid
lor contracts and licenses was writ
on off The books and is no longer
carried rs 20 asset.
Mr. Lcngley gave a history OF the
organization OF the New England
Telephone and Telegraph company.
Ii WIS Organized October ~. 1899
and began business on November J
Of that year, Eight diffcrcu, com
paDics were purchased.
The fetal paut so purchased az
grcgated $5.S95.OVy FV the righf
70 do business under the Boil patentr
in New England ;bc New Englanc
company gave the American Bel
Telephone company steel, TO th
value OF Si,26So00. and also issued
20 trustees $231.Go0. making the total
capitalization al that time Slo.39l.
600.
Mr.. Lonslcy was questioned In de
iail Us 20 a number of the items con
tanned in the balance sheet pruscu-.
cd yesterday. and gave figures Which
win probably be analyscd by the
cuginccr some OF ;hc more inter
estins items .wcre as follows: Cost
If ten pole lines in Vermont, SIPS
jjl.99: total ioil wlrc, SSSl.i7G.5o:
cost OF swiichbuards. S153,l37.54:
cost of The Burlington General Office.
Including land and building. Sa6.S51..
IS.
Mr.. Lonelcy in describing how the
nmount of toll income credited to
Vernon. was determined produced
several interesting calculations from
his books.
Instead Of counting the mileage on
each individual toll call a percentage
figure is obtained by averaging such
actual calls for . month and this
percentage figure is used in apport-
Joining the toll income.
Mr. Longloy said he thought this
method OF determining the appur-
tionment was not only fair to Yer
mont. hut abou, per cent larger
than it would be II an exact compu.
t;iou OF every call were made.
\ balance sheet for 1911 showed
net revenue fer the New England
company's Vermont business of s19,-
5i0.30. The 1912 balance sheet show
cd nc, earnings Of sl1.525.39. the
falling Off fer 1912 being ascrlbcd to
Increases in the cost OF operation
and Of repairs. \ balance sheet for
the year ending June 50. 1918. show.
cd net rcycnuc OF S1S.Ss-a9