Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-12-04
SERVICE MUST De
WORTH THE PRICE
Under No Other Condition VIII
Public Have Telephones,
Says Pres. Spaulding.

Montpelier, Dec. AT to-day's session
of the telephone hearing by the YER
mont public service commission there vas
a colloquy on rates between Attorney
Cook. representing the state, and FRESH
dent Spaulding of the New England com
pany who was on the witness stand UNI
der cross-eXamination. Mr.. Spaulding
had testified to the small carnlngs of
his company in Vermont.
There has never been anything to
hinder your company raising the rates
here. has there, except competitions
asked Mr.. Cook.
Mr.. Spaulding said it was not 50 much
a question Of competition MS tn, ability
of the company to make the service rem
dcrcd worth a price which the public
would he willing to pay. "If the public
did not think the service worth what
they were being charged for it. they
wouldn't take 1t and nobody could make
them take it, he said.
Commissioner Warner asked whether
the telephone had not become such a
necessity that the public would be will
ing to take II at any price, that a bust
ness man would have to have a tcle-
phone even though he thought he was
paying twice what he ought to pay for
it.
MIR. Spaulding said he was quite sure
that the telephone was not such a ncces-
sity that the public would take it at any
price and that the rate that might be
charged for telephone service must bear
some direct relation to the value of that
service in the minds of the subscrlb-
ers. Let me suppose" he said, that
the Vermont public service commission
should decide that a fair schedule of
rates in Vermont was four times as high
as our existing schedule, and that we
then went out to all the subscribers In
Vermont and tried to charge them four
! times what they are now paying. DO
you imagine that we would keep the
present service? The result would be that
they wouldn't take it. and that they would
have the phones taken right out"
"And Vermont would probably he minus
a public service commission" lauehingly
lnterjected Chairman Bacon.
Mr.. Spaulding was asked whether he
would rather have five thousand sub
scrlbcrs or one thousand subscribers in
Vermont, with the same net profit m
either case, and said he would much pre-
fer to have five thousand subscribers
because of the greater benefit to the
whole company.
Asked whether there was not a very
large number of additional telephones in
stalled as a consequence of the reduction
of rates in Massachusetts. he said there
was but that the principal result of this
reduction in rates was the charging
of Subscribers having four and siX-party
line service to o%ne-party and two-party
line service.
"A fair price for service" said Mr..
Spaulding, lis determined by first, the
question whether the gross revenue as a
whole is sufficient and second. whether
the distribution Of the charges among the
different grades OF subscribers is fair
and reasonable for the amount and value
of tho service which they receive. You
cannot continuously make an unfair dis
tribution Of the burden between different
classes Of subscribers. You have got to
try to distribute" that burden as fairly as
you can, but YOU nave to look. in distri-
outing the burden, to the question OF
whether you are going to get the develop
ment and as to whether the rates will BE
fair from the basis OF value"
In establishing n rate schedule, he said
In response to a question, he did not think
It fair to segregate a portion of a state
and base an opinion as TO rates on the
returns from any small portion. As to
whether It was fair TO make n schcdu'o
for a whole state, he said there was a
difference Of opinion on this score, and
that this was not the intent of the New
England company. Its schedules We're
made for its entire territory ana its rates
or exchanges in Vermont wtrc similar
TO rates charged for like exchanges in
western Massachusetts, and New Hamp-
benefit Of the reduced rates put into effect
throughout the territory as a result of the
MASSACHUSETTS, rate decision.
Mr.. Spaulding was questioned at some
length with reference to the payments
made to the American Telephone AL
Telegraph company but practically moth
ing new was developed along this line.
Other Witnesses called - the stand
during the day were Hammond V. Hayes
former chief engineer Of tEe American
Telephone and Telegraph company whc
made the inventory for the New England
company in 1905, and George X. Manson,
chief engineer of the New England Telc'
phone and Telegraph company, who testi-
fled as to how the inventory Of last sum
NOR was made, Mr., Manson WaS ON the
stand when the days session closed.
UNIVERSITY NOTES.