Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1914-02-06
TELEPHONE
COMPANY'S
BRIEF
SERVICE CRIPPLED IF
RATES ARE REDUCED

no oral argument OF the telephone rate
case before the public service com
mission today. Major Graham, OF
counsel for the state, said he had no
brief to exchange aud did not desire
to argue orally. Counsel for the New
England Telephone and Telegraph
company and its subsidiaries said
that if no brief on the part of the COM
p.ainants was to be answered, they
would not ask to be heard orally but
would rest their case with the filing
OF a brief.
In this brief to show cause why an
order should not be issued reducing
local and toll rates, they protest that
such an order would be unjust and
oontiscatory; that no evidence to sup
port the allegation that the rates are
unreasonable has been adduced; and
that the uncontroverted testimony OF
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, II not lower, than
the rates charged for like service in
other sections. .f
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 for
the New England company considered
separately.
The erect 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,
600, which deficit would be increased
for 1914 by some SIS, 900 resulting
from the increased taxation of these
companies.
In this state the New England COM
pany claims to have 3.59 percent of
its plant investment, which invest
ment contributes only 239 percent OF
its gross revenue. In Massachusetts,
1t Is able to get thirty five subscribers
to the average square mile OF terri
tory, while In that section Of Vermont
operated by the New England COM
pany 1t gets an average Of only So
subscribers to the square mile, and
only 51a subscribers to the square mile
in the territory served by the New
England company and its four sub
salaries when considered as unit.
The brief begins with a short state
ment OF the case and of the issues
presented, and says there is really
only one issue involved-the reason
sbsness 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 complainants, 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
| earnings 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 q consulting telephone ex-
| pert In attendance for several weeks,
and with reference to its own pre-
sentation says: 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
oath, with all the solmenity of pro-
ceedings In court of justice. We
| insist that facts SO established, With
out contradiction from any source
are proved and proved to the extent
that these defendants are entitled to
have findings in accordance there
with. These defendants, and the
people OF the state OF Vermont are
entitled TO have facts found as they
are proven, and to have allegations
which are not proven--but which are
clearly and emphatically disproven-
90 branded '' @aii y" 0
1.-THE inevitable effect OF reduc-
hon In rates upon the telephone ser
vice Of the state of Vermont, (" says
the brief, in closing, must be a
gripping OF the service That the
telephone using public does not want
nor does 1t ask or desire that the ser
vide should be operated at an abso-
lutte loss, or, in fact, at less than a
fair profits. HGleF Ga4
Amy action on the part OF any
public service commission, It goes
on, to reduce rates to a point where
the service must necessarily be Grip
pied or impaired Is a violation Of its
prime duty to the public What the