Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-03-19

pany by the New England Telephone q
Telegraph company through its officials, 1t
exchanged 6,006 shares Of it's common
stock. of a par value of $25, for certain
plant of the New England Company,
which was claimed at this hearing to
have been carried on the books of the
New England Company at O150
/ This plant was located in Newport and
surrounding towns of Orleans County, in
st. Johnsbury and surrounding towns of
Caledonia County and in Essex County.
| Tho total amount Of stock outstanding
after this exchange was 6,015 shares.
Each of the ten directors owned one
share and the New England Company
6,oo5 shares. The majority Of the d.
rectors were connected with the New
England Company The Vermont Peo-
pies Telephone Company then owned a
competing plant in Orleans County The
, Essex Telephone Company and Citizens
Telephone & Telegraph Company owned
competing plants In Essex and Caledonia
Counties and d. l.. Mcguire operated an
independent plant in Hardwick Albany.
Craftsbury and vicinity. There previous
ly had been competition between these
plants and the New England plant which
pany stock as aforesaid and after the ex-
change this competition continued with
rates about equal to those shown in table
one above
In November 1910 the Passumpsc
Company, apparently for the purpose of
suppressing competition. voted at stock
| holders meeting to increase it's
capital stock from 6,015 shares
IN ehnr rs I,,A
Of s25 each. the additional 2,4Oo
shares to DO preferred stock and entitled
to cumulative dividends at the rate Of G
tper cent. in priority to the 6.O15 shares Of
common stock and It was further voted
izod and empowered TO issue said
2.40o shares of preferred stock
in payment for the plant and
property OF the Vermont Peoples Com
pany or at par for cash. and to apply
the proceeds of the sale of said stock in
payment for said property. The Pas
sumpsic Company was unable to ex-
change all of said preferred stock with
the Vermont Peoples Company for it's
plant and as result the New England
Company purchased 1880 shares of said
preferred stock, paying therefor the sum
of $4,000. The Vermont Peoples Com
pany. on November 26, 1910, voted to ac-
cept the sum of SCI, 900 for it's plant and
to receive as payment said $4,000 in
cash and 1900 shares of the preferred
stock of the Passumpsic Company with
an agreement on the part of the New
England Company that it would at any
time within six months after the eXpira-
ton of five years from January list, 1911,
upon demand purchase from the then
holder of any of said shares of preferred
stock issued by the Passumpsic Com
pany to the Vermont Peoples Company
for cash. at par, plus all unpaid dividends
which might have accumulated thereon at
the rate of per cent. per annum, to-
gether with the interest upon any unpaid
or accumulated dividends from the date
when said unpaid dividends became pay
able to the date of said purchase, and
further providing that if the Passumpsic
Company, in any one year during said
period of five years, should fail to pay a
quarterly dividend at the rate of per
cent. per annum upon said preferred
stock and should continue in default of
the payment of such dividend for a
period OF one year, said agreement of
purchase upon the part of said New Eng
land Company should become Immediate
ly operative and continued operative for
period of six months from the date
when the same took effect.
A petition seeking the authorization of
said stock issue for the purpose of carry
ing out the said purchase was filed De
cember 6, 1910, with the then constituted
Public Service Commission, and on De
cember 16. 1910, said Commission author
lied the issue and the transaction was
thereafter contaminated
The Passumpsic Company voted on
May ., 1911, (the outstanding capital
stock then being S210,335 as aforesaid
to increase its capital stock to $40O, 900. 90,
divided into 10000 shares of common
stock and 5000 shares of cumulative
preferred stock, all of a par value of $25,
and further voted that the directors be
authorized and empowered to issue said
preferred or common stock. mt par for
cash, or for the purchase of property
The board of directors on the 18th day of
March, 1911, had entered into a contract
, for the purchase of the plant and property
owned by the Essex Telephone Company
for the sum of s15,5O0, and on May 5th
, 1911. the Passumpsc Company petitioned
the then Public Service Commission to
permit the company to issue 500 shares
III StOCk ana ~ SnareS or COM
mon stock both of a combined par value
of $l5,500.00 for the purchase of the
property, rights, and franchises of the
Essex Company
Permission was granted by the com
mission, by it's certificate dated May 90
1911, to issue said stock for the pur-
pose aforesaid, the Passumpsc Com
pany took over the Essex Company $
plant and paid the Essex Company $500
in cash therefor, which last named sum
J was raised by the sale of $500 of said
preferred stock issued by the New Eng
land Company.
On November 10, 1911, the officers of
the Passumpsic Company filed certif-
cate, under OATH with the Public Service
Commission stating that the company
had sold said 600 shares of preferred
stock at par and had applied the pro-
ceeds from the sale of said stock in pay
ment for the property of the Essex Com
, pany and also had delivered 20 shares of
common stock of a par value of $500 to
the Essex Company as further payment
for said property.
On May 8, 1912, the Passumpsic Com
pany petitoned the Public Service Com
mission for leave to further Issue 1850
shares of its preferred stock at par for
the purpose of raising funds to carry out
a contract for the purchase of the plant
and property OF the Citizens Telephone &
Telegraph Exchange for the sum of SAL
$50, This permission was granted nv the