Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-03-19
COMMISSIONER
WARNER TAKES A
DISSENTING VIEW
Thinks There Should Be No Re-
ductiOn in Vermont Tele-
phone Rates at the
Present Time.
Continued from page six.)


plant.
In relation to comment in the majority
opinion in connection with the permission
given the Passumpsc Telephone company
for an increase In its capital stock, l sub
init herewith the following copy taken
from the 18th Biennial Report OF the Yer
mont Public Service Commission for 1912
will state in connection with this re-
port that in every instance where consent
by the public service commission was
given TO the Passumpsc Telephone COM
panv for an increase IN It's capital stock
for the purpose of purchasing other tele-
phone properties, 1t was done only after
an actual inventory OF the property had
been made.
No. o03.
STATE OF VERMONT.
PUBLIC SERVICE COMMISSION.
In re petition of Passumpsic Telephone
company for permission to increase It's
capital stock.
Hearing at Newport, December 1e, 1910.
Present: Commissioners Redmond, Jack
son, Warner and the clerk.
Appearances: Matt r. Jones. ESQ. at
torney for petitioner: W. A. Dane. ESQ.
attorney for Vermont Peoples Telephone
company: w. NJ. Wright Esq, States at
torney of Orleans county for the State of
Vermont.
REPORT.
This is a petition by tho Passumpsic
Telephone company, a corporation Or
ganized under the laws of this State.
alleging that it has entered into n
contract for the purchase of the tele
nv
the Vermont Peoples Telephone COM
pany, except its cash and bills receiv-
able: that il is necessary for the pc
titioner to increase its capital stock
for the purpose of raising funds where
with to pay for said property; ana
praying that the petitioner be author
lied to issue twenty -four hundred
shares Of six per cent cumulative pre-
ferred stock of the par value of TWEEN
ty-five dollars, a total of sixty thou
sand dollars, either for cash or di
rectly in payment of the purchase price
Of said property.
After due notice including publica-
ton thereof in the orleans County
Monitor, the Express and Standard,
| and North Troy Palladium, three news
papers published in the county of Or
leans. a hearing on this petition was
had at Newport Vermont, on the 18th
| day Of December. 1910, with the APP
| pearances noted at the head hereof.
From the evidence. we find that at
| a meeting of the stockholders of the
Vermont Peoples Telephone company
regularly held at Orleans. Vermont, on
| December 3. 1910, representing 1918 of
the 4T84 shares of the stock of said
company, it was unanimously voted TO
authorize It's directors to sell it's plant
and property. except cash on hand,
| bills receivable, and one typewriter. to
the petitioner for the sum of sixty-two
thousand dollars, which we fni to be
the fair cash value thereof; that at a
meeting OF the stockholders of the pc
TONER, regularly held at st. Johns
bury, Vermont, on the 18th day of No
vember, 1910, representing all the
stock of the corporation, the following
votes were duly passed by a unanimous
vote of all the outstanding stock OF
the corporation.
Voted That the stock of this cor
poration be increased from $l50,375
now divided into 6O15 shares of the
par value of $500 each, to $2lo,375
to be divided into Sil5 shares of the
par value of $500 each"
voted: That said stock be divided into
preferred stock and common stock as fol
lows: 400 of said shares of the par valu,
of S25 each equal to $4,000 shall be cumu
lative preferred stock, and shall he entitled
to cumulative dividends at the rate o
Is per cent. per annum before any div
dends shall he declared on the common
stock: and any net earnings after thu
payment of said cumulative dividends OF
the preferred stock and non-cumulativ,
dividends Of per cent. per annum on tn,
common stock shall be applicable to fur
Their dividends upon the preferred anC
common stock equally, as the directors
may from time to time determine UpoI
liquidation or dissolution of the corpora
ton its assets shall be applied First, T.
the payment OF the preferred stock up t,
its par value; second, to the payment o
the common stock up to its par value
third, any remaining assets shall be distri
buted among all the stockholders of TIL
corporation in proportion to their respec
tive holdings; that 6,Ol5 of said shares o
the par value of $l50375. shall be common
stock, and shall be entitled to such divi
dends, not exceeding six per cent pc
annum, out Of the, net earnings and afte
payment of cumulative dividends at tn
rate Of six per cent per annum on thu
preferred stock. as the directors MAJ
from time to time determine. any ne
earnings after the payment of said cumu
lative dividends on the preferred stool
, and non-cumulative dividends of six pc
cent. on the common stock to be apple
able to further dividends upon preferred
and common stock equally, as the direc
tors may from time to time determine"
Voted: That the directors of this cor
poration be and they are hereby au
; thorized and empowered to purchase tn
plant and property of the Vermont PEG
pies Telephone company, corporation
duly organized according to law, excep
ash on hand and bills receivable, for tn
sum of 100000, plus such additions as shall
have been made to the plant and propert,
of the company since June 2. 1910; an,
said directors are hereby authorized AM
; empowered to issue 400 shares of the pre-
ferred stock above authorized, of pa
value of SIS each, at par, in payment 70
| said plant and property, or at par TO
cash, the proceeds of the sale of said stool
, to he applied In payment for the pur
chase of said property
We find that the above recited allega
tons of said petition are true: that tn
petitioner ought to be allowed to increas
its ca pital stock from s15o375 to s2l0,375 di
vided into the shares of common stool
and of six per cent. cumulative preferre
stock. with the respective qualities Incl
| nd piplts pf