St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1914-03-25
THE TELEPHONE DECISION
Opinion OF Papers Who Dared FIX
press One

| press One.
The latest phase of the controversy
between Governor Fletcher and the
New England Telephone & Telegraph
company for that in plain English
is the real situation is found in the
report of the Public Service commits
sion, made public today. Two mem
bers of the commission, Robert L.
Bacon of Brattleboro and Park H.
Pollard of Proctorsville who were
appointed by Governor Fletcher, join
in a mandatory order for the reduc-
ton of local rates by the New Eng
land company and its subsidiaries.
The third member of the commission,
William r. Warner of Vergennes,
not a Fletcher appointee, filed dis
senting opinion.
The majority members of the COM
mission leave the toll rates as they
now stand, the reduction ordered
pertaining to certain local rates and
services. The New England COM
pany, for the first time in its history,
serves notice that it will take an
appeal from the order. 1t has never
before appealed from the recon-
federal or state.
The Public Service commission as
constituted, was selected among other
things for the purpose of waging war
on the chief telephone service COM
pany in Vermont. Last summer the
commission was practically instruct
ed by the governor to reduce rates
and to put the telephone company on
the offensive. The situation at that
time, is well remembered. Two men,
bers of the commission, including it's
chairman, Charles DE- Watson of st.
Adams resigned inasmuch as they
were unwilling to take such an un-
usual course. The governor then
appointed Mr.. Bacon and Mr.. Pollard,
evidently being assured that they
would carry out his wishes in the
matter.
Mr.. Bacon and Mr.. Pollard for the
commission declare that the entire
appraisal of the property of the New
England company and it's subsidiar-
les is excessive. On the other hand,
Vice President E. X. Hall of the COM
pany, claims that the inventory is
reasonable and that the net revenue
of his company represents less than
two per cent annual returns on the
value of the property located in Yer
mont. The company will appeal to
the courts, inasmuch as they protest
that the order, if carried out, will
permit it to earn less than one per
cent on it's investment. The COM
mission, by its majority, states that
the company is entitled to earn six
per cent on a proper valuation.
Commissioner Warner, in his dis
senting opinion, finds that a less am
cunt of working capital than is at
present employed for the operation
of the plant of the New England
company and it's subsidiaries is i'm
practicable. He also contends that
a rate as low as six per cent income
on the property of this character is
insufficient
In this controversy, the chief con-
Germ of the public of Vermont-sfor
practically the entire public are
telephone users-is that they get
entirely satisfactory and complete
service at as low a rate as is con-
sistent with efficiency. The public
do not want lower rates at the ex-
pense of excellence. Perhaps the
present rates are too high. But of
this, it is safe to say, the bulk of
the people are probably not salts
fed. At any rate it is apparent that
the end is not yet. The Vermont
courts will have a mass of figures
and details to digest when the mat
ter is before them for adjudication
and decision.-Rutland News.