St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1914-02-04
TELEPHONE CoMPANY,s BRIEF
Argue That Reduction In Rates
Would Cripple Their Service

NNOuA0 OAAPAtAO AAA0A OCAbACC
BrattIeboro, Jan. 31.-There wa
no oral argument Of the telephone rat'
case before the public service com
mission today. Major Graham, o
counsel for the state, said he had nc
brief to exchange and did not desire
to argue orally. Counsel for the New
England Telephone and Telegraph
company and its subsidiaries sale
that IL no brief on the part Of the COM
plainants was to be answered, they
would not ask to be heard orally but
would rest their case with the filing
or a BRIEF.
In this brief to show cause why an
order should not be issued reducing
such an order would be unjust ano
confiscatory; that no evidence to sup
port the allegation that the rates are
unreasonable has been adduced; an0
that the uncontrOverted testimony o.
the defendants shows that the service
in Vermont is of just as high a stand
ard as service furnished in other parts
OF its territory while the rates charged
therefor are as low, if not lower, than
the rates charged for like service in
other sections.
They further claim that on then
proved investment in the state the net
profit under existing schedules is less
than 2 percent for the combined five
companies and less than 1 percent fol
the New England company considered
separately.
The effect Of the proposed schedule,
they claim, would be to wipe out their
present small margin of profit and
leave these five companies with an
annual operating deficit of over $50,
900, which deficit would be increased
for 1914 by some SIS, 200 resulting
from the increased taxation of these
companies.
In this state the New England COM
pany claims to have 3.59 percent Oh
its plant investment, which invest
ment contributes only 2 80 percent OF
its gross revenue. In Massachusetts,
1t is able to get thir'ty-five subscribers
20 the average square mile of terri
tory, while in that section Of Vermont
operated by the New England COM
pany il gets an average of only S1b
subscribers to the square mile, and
only 51k subscribers to the square mile
in the territory served by the New
England company and its four sub
salaries when considered as a unit.
The brief begins with short state
ment of the case and of the issues
presented, and says there is really
only one issue involved-the reason
ableness or justice of the defendants
present schedule Of rates. 1t then
calls attention to the statute and case,
law casting the burden Of proof in
this case upon the compliments, a
treatment of elementary law which is
said to be necessary only because of
the anomalous nature of the COM
plant. and the effort of the complain
ants to appear as defendants before
the commission.
The preface then proceeds ito call
attention to the testimony which eff
fectually nails certain doubts and
criticisms largely immaterial to the
issue, but dexterously thrust into the
record by the compliments. As at
the hearings, so now the companies
welcome the opportunity to explain
TO the commission and to the public
OF Vermont their financial history,
their record of dividends and net
and to give the fullest detail
of the telephone business of Yer
mont"
The brief calls attention more than
once to the fact that no evidence was
presented in support of the allegation
Of unreasonable rates, although the
state had a consulting telephone ex-
pert in attendance for several weeks,
and with reference to its own pre-
sentation says: 1.-The facts upon which !
the contentious of these defendants
are based are proven by the testimony
Of substantial, reputable business |
men, given as before noted under
path, with all the solmenity of pro-
ceedings in a court of justice. We |
insist that facts so established, with
out contradiction from any source,
lre proved-and proved to the extent |
that these defendants are entitled to |
have findings in accordance there
with. These defendapts, and the
people of the state of Vermont, are
entitled to have facts found as they
ire proven, and to have allegations
which are not prover-but which are
clearly and emphatically disproven-
20 branded"
The inevitable effect of a reduc-
ion in rates upon the telephone ser
nee of the state of Vermont" says
he brief, in closing, must be a
of the service. That the
using public does not want,
Tor does it ask or desire that the SER
nee should be operated at an abso-
ute loss, or, in fact, at less than a
air profits.
ANY action on the part of any
public service commission, - it goes
N, ito reduce rates to a point where
he service must necessarily be Grip !
lied or impaired is a violation OF its |
'r1me duty to the public What the