Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-07-17

ity to make such investigation by the
public service commission, have attended
to their duties and respectfully report to
Your Exccllency, as follows;
| our Investigation has covered each tcle-
/ phone company doing business in this
! state. which is If any substantial size
and Importance. and while the territory
Of all the companies has not been trav-
| "rsod by us. wa have made n thorough
ana complete investigation of a sufficient
number Of the several classes of such
companies ~ enable us to study intelli-
gently the data and information gathered
concerning all of the companies.
We further state that the officers of the
New England company and its subsi-
diaries have conceded that the companies
and territory, which have been the sub
iect of our more careful examination and
Investigation. are typical and standard Of
all the companic, and territory in the
state.
We find that the New England rcle-
phone q Telegraph company, corpora
tion organized under the laws of New
York, owns or dominates substantially all
of IN" telephone business OF this State
TIL" business controlled ny tn" New Eng
land company is accomplished 10y owner
ship of a majority OF stock of certain sub
Sidiary companies. which it has either
organized or purchased, and are located
and doing business In different sections Of
the STATE, which subsidiary companies
cover all of the congestcd sec
tons OF population In the State
not covered by the New Eng
land company itself, and which said sub
sidiarY companies We're created or ac-
CURED in our opinion. for the sole and
express purpose Of driving competition
from the field of telephone business in the
State Of Vermont
TRAFFIC. CONTRACTS CONTROL
The other companies in the State doing
any business of Importance. are dominat-
ed 10y the New England company. hv roa.
son OF certain connecting. traffic and pur-
chasing contracts. The traffic contra ct
so-called provides substantially the terms
on which the independent company may
connect with the New England lines: die
tates rules and regulations to he oh
served by such connecting company. fur.
nishes the tariff of toll rates TO be
charged and collected by such company:
prohibits the connection by such inde.
pendent company with any other COM
New England lines. without first obtain.
ing the consent Of the New England com.
pany; and prohibits the inva sion of the
territory Of one company by another.
This contract is also entered into ny the
New England company with all its sub
sldiarv companies In this state
The purchasing contract. so-caned. has
been made betowoen the New England
rt,, aud III Al
with a large number at least OF the So
called independent connecting companies
which provides that such subdiary COM
panY or connecting company, respective
~, will, during the term of the agreement
order and purchase from the New Eng
land company. all telephone equipment
and other articles required by ii
in the conduct OF It's telephone business
except certain small articles for emer-
Sency use. also prohibits such subsidiary
or connecting company from selling any
of the equipment or material so purcha sed
to any other company or individual. We
all those contracts. both as to
traffic arrangements and the purchase OF
material and equipment, unqualitiedly
pernicious, against public policy, and In
of law.
toNSll)fIh A MiJNOIol.N.
We do not think it should be the policy
of the State Of Vermont to sanction or
permit the existence of such contracts. or
protect any corporation or Individual In
any rights or privileges obtained there. |
under. We consider such contracts a per-
feet exemplihca lion of monopoly.
The officers and agents of the New Eng
ahd company and its subsidiary compan-
les, claim 10 MS that they are not making
any profit from the business conducted in
this state, but we are thoroughly con-
Slnccd from our Investigation that their
contention is not well founded in fact.
This proposition at the outset involves
The methods of bookkeeping adopted bv
these companies. and the correctness,
fairness and honesty of the same. and
the unfairness of their contracts and
methods of operation. to the State Of
Vermont and the business done i'm Yer
mont.
For instance, We find that the New Eng
and company leases to all of IFS subsi-
iiary companies i'm this State, and 10 a
arge majority Of its connecting COM
lanics all the receivers and transmitters
used by them in their respective terrific.
les Tho cost price of receiver and
ranSmitter for each ,c'cphono complete
$ 500 and the New England company
Nacts from such controlled or connect
M companies, In some Instances, an an
iua rental Of u cents for each such re-
oiyCr and U1nsmlttor so leased and
rom others an annual rental of Sl.25 And
rom our Investigation we find that the
natural life Of "A receiver and ira nsmit-
er Is from ten TO fifteen years We also