Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-01-08
PHONE COMPANIES
DEFENCE NEAR END
State Is Expected to Begin Its
Side of Case To-day or
Tomorrow.

cess OF half nm hOur was taken THIS morn
ing to allow the attorneys to attend the
opening of supreme court and the after
noon session was not resumed until three
o'clock in order that the commissioners
and counsel could be present in court
while Judge Hazeton was reading the
opinion in the case of George VS.. Consoli-
dated Lighting company involving the
constitutlonaity OF the public service
commission. which opinion sustained the
commission. and held that the powers con-
ferred on them by the act of 1908 were
constitutional This was especially pleas
ing news to Chairman r. C. Bacon, who
prepared a very able brief in behalf of
the commission, which was made a party
to the case.
The defense Of the telephone companies
is almost finished. only one remains. The
representatives of the Granville Tee-
phone company have been summoned to
appear tomorrow when their case will
be taken up. ono OF the witnesses to-
day was Allen Hollis brother Of Uni-
ted states Senator Hollis of New Hamp
shire He is president Of the White Noun
tain Telephone company. The rest of the
testimony was odds and ends to supply
statistical data asked for by counsel for
the State before Christmas adjournment.
The fact was brought out at the hearing
that under the new appraisals made by
the tax commissioner the taxes OF the
telephone companies will he doubled 1t
is expected that the state will begin it's
side of the case tomorrow or the next
day
Allen Hollis president of the white
Mountain Telephone company. said this
company was incorporated in 1907 TO CON
solidate three companies. tho Plymouth
and Canton Telephone EX.nArEe cum
pany, the telephone plant Of the Pike
Manufacturing company and the plant Of
the New ENGLAND company at WcCdsvlle
and Wells River Subsequently this COM
pany purchased the Bakers RIVER Tele-
phone company and the Woodsvnc Tele-
rhono company after an appraisal and
with the approval Of the !Iow Hamp-
shire public service commission
Mr.. Hollis said his company had never
earned or paid a dividend, except one
Car on preferred stock iesued to the
Bakers River company in part payment
of the purchase price.
For the calendar year 1911 his COM
rany represented an Investment Of sl42-
no. Tho income of the company for the
year was $3S. $40 and the expenses s3S go
leaving a net income Of 1919 so. For the
Year iHl2. the gross income VAS s47sla
md the oxpcnao $4,000. For the T. months
ending June 20. 1913, the pla 1T value wes
sl9i7o0, the income $500. and the cx
pense SA,4S4, leaving a net income Of
s2Sl5.+.
Nearly the entire net income for the
wear Mr.. Hollis said, was due to a new
traffic agreement with the New England
company, similar in terms to the new
agreement offered to all connecting COM
Danies and adopted by many of them.
Regarding his company's connection
with the New England company. he
said, that while the New England com
pany owns a majority Of the stock il
does not have a majority of the di-
rectors, and that while the managers
We're usually harmonious there were
"a few instances where the New Eng
land company was not allowed to have
its own way. He gave the details of
the traffic and purchasing agreements
with the New England company an
said he regarded both of these agree
mcnts as being entirely fair Under
the purchasing agreement they rent
cd such Instruments as they needed
ar - cents a year and for full sets
purchased from the Western Electric
company they paid $2.99. They paid
two per cent, commission for handling
stock and siXtY-one hundredths
per cent for Boston office expense in
volving bookkeeping details. His
company has only so subscribers in
Vermont, connected with Vermont ex-
changes, and only 1872 subscribers in
all Vermont.
The net effect of the proposed re-
duction in Vermont would be to re-
1ucc his companys revenue slSs a
year which would absorb the net
earnings SO far as Vermont is con-
cerned. He added that he doubted
whether at present rates his company
could earn reasonable return on the
capital invested, and that at reduced
rates it couldn't earn anything
lie volunteered the opinion that the
maintaining of good, reliable. adequate
service was the most important thing
a public utility corporation ought to
consider. A difference of 25 per cent
a month was not to be considered as
utility ought to consider first the mat
ter of service, and put its rates up to
point that would enable it to give
good service
Mr. Graham cross-eXamined the wit
ness for the purpose of making clear
some of the figures presented but
nothing of material Importance was
adducei
General Auditor Longley and Chief
Engineer Manson We're recalled by the
counsel for the telephone company to
submit various substantial computa-
tons that had been asked for during
their ross-examination by the State
but they served only to bring out fur
Their details of testimony already COW
cred
While Mr.. Longley was testifying Mr..
Stickney asked him for comparison of
the taxes paid by the New England
company ana Its subsidiaries for 1919 as
compared with the tax commissioners
assessment under the new law operative
in 1914 Mr., Longley said he had not
received the assessment for the Pas
sumpsiC company but for the other COM
panies he gave the following figures:
1913. 1914. Increase
n. +. sll,2l7o4 s25S2.50 s140ss. 4s
Vermont .... 2,422.S6 3S7500 952l4
Champaign V, S3l25 $4,000 4lS75
Mr. Longley was asked by Mr., Graham
a to the salary of the publicity man
ager, Mr. Feeney, and testified that that
official received $500