The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-07-16
GOVERNOR URGES
ACTION BY P. S.
COMMISSION
Report Of Special Committee on
Telephone Cases
ABUSES BY A MONOPOLY
Governor Fletcher Decares That Re
ief Must Be demanded at
Once.
ABUSES BY A MONOPOLY

Montpelier, July 15.-The report of
the special counsel to inquire into
the complaints regarding telephone
service and rates in the northern
counties of the state and the COM
munication of Gov. Fletcher to the
public service commission was made
public tonight. The governor re-
quests the public service commission
to take such steps and to issue such
orders, based on liberal and reason
able Interpretation of it's powers, as
will speedily relieve existing condi-
tons and finally determine the
states right to regulate and control
the telephone companies. The COM
mission, which received the reply
from the governor, is considering
what kind of an order shall De is
sued since it is generally believed
that an order covering the main
features of the report should be
forthcoming. The telephone inquiry
was made on account of complaints
concerning service and rates made to
Gov. Fletcher. The investigation.
was conducted by W. r. Graham of
Bellows Falls and Il. A. Cook of Lyn.
don, special counsel to the governor
and clothed with authority as special
investigators for the public service
commission.
They have examined substantially
all the telephone companies doing
business in the state and they find
that the New England Telephone and
Telegraph company owns or domin-
ates the entire telephone situation
in Vermont, partially by ownership
of stock and partially by certain al
legged 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-
pied to such degree as 10 be unlaw-
full 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 Eng
land company. They find unfairness
in the division Of tolls, unfairnsss in
the method and manner OF bookkeep-
ing and covering up of gain for the
purpose 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 fur
nish them with important informal
ion facts and figures and copies o..
contracts and documents requested
by them.
They find that the American Tele-
phone and Telegraph company con-
trolls the New England company, the
Western Electric company and other
companies with which the New Eng
land deals and through the New
England the subsidiary and connect
ing companies in Vermont, and that
such control by the American Tele-
phone and Telegraph company vital.
ly affects the business in this state,
and in this connection suggest that a
national investigation is needed.
Upon request by the officers OF
the New England and subsidiary com
! panies, a hearing was granted at st.
Adams, at which managers, officers
and general counsel of the New Eng.
land and subsidiary companies were
present, but no person was present
with any information as to the ex-
pense of building, equipping and run.
! ming a telephone business.
The investigation discloses that
substantially all of the independent
companies as well as connecting
! companies have kept their lines in