Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1914-03-19

the New England company organized the
Peoples company, took back from the
Champlain company its Brandon prop
crty, which had been previously sold to
the Champlain company, and put said
property into the newly organized Pco-
pies Telephone company and Mr. Chand-
Ter put his Brandon plant into the PeO-
pies company also The total authorized
stock Of the Peoples company consisted
of 100000 common stock and $2500000 of
preferred stock. Common stock to the
amount of $4,000 and preferred stock
to the amount of slG,91Oo0 We're issued Of
which issue the New England company
received SIG, 90 of preferred, and $1,000
of common and Chandler the remainder.
The Peoples company was operated as
a separate company until June. 1911, when
its plant was taken over by the Cham
plan company. Upon completion of these
transactions. the Champaign company had
issued for property and cash Sl6, 1000 OF
common and Sii2, $1,000 of preferred stock
which is its present capitalization, and
on June so. 1913, the New England COM
pany owned $37 5000 of the preferred and
Sll,3lOG0 of the common stock. These
transactions resulted in the effectual sup
preston of competition in the towns of
Pittsford Chttendcn, Brandon, Leicester,
Salisbury, Ripton, Goshen, Middlebury,
Nergenncs, and parts of Ferrisburg and
New Haven
AS appears from the foregoing. the New
England company owned the controlling
interest in two subsidiary companies oper-
ating in the same territory from 1906 to
1911. The only explanation given was that
Mr. Chandler, who was a minority stock
holder in one of these companies, was
dsinclined for some reason to consolidate
them, but although these two companies
were operating in this territory competi-
ton was virtually suppressed during that
time.
When the New England company trans
fcrred it's tangible property to the Cham
plain company and to the Peoples COM
pany it also transferred and received stock
for an intangible asset which was desig-
mated at this hearing as contracts and
licenses" This asset seems to have been
a part of the intangible asset called CON
tracts and licenses" then carried on the
books of the New England company and
for which stock has been issued to the
American Bell Telephone company 1t
appeared to have been the right to use
telephone instruments at a former period
when such instruments were a patented
article.
The rates ~ the Champlain Valley Tele-
phone company now IN effect are as fol-
lows:
One party, Bus. so; Pes, "A; two-party.
Bus, "a; Res, 81.
SIX or more party Bus. Il: Res. Ii.
Fifteen OF morS party. Bus, p.
/ Farmsrs' line Res, u.
| All of these rates excepting the six or
moro party business rate Of S21 and the
farmers line business rate Of SCI, do not
i substantially difre- from the rates Of the
independent companies shown in table /.
At the presont hearing. the Champlain
company presented ar inventory The
value OF It's property, with the unit costs
dete rmined on by the commission applied
thereto, Is srcwn IN table g. The earn
! ings and expenses OF the company, as
shown in table 3, when taken In connec'
ton with said inventory value OF the COM
pany's plant, show the company is earn
ing s2.ssl.2S above six per cent. upon its
! plant valuation and other assets as deter
mined by the commission. This sum Is
more than sufficient to provide for re-
! rate ana said farmers line business rate
from s2l to SIS which is the highest rate
| for similar service charged ny any indie
| pendent company.
| The commission is of the opinion that
| said rates are now unreasonable and that
such reduction of these rates is rea-
sonable. 1t Is all the moro apparent tha'
said reduction Is warranted. from the fact
/ that the statement OF the financial condl-
! ton OF the Champlain company on June
! 30 1913, marked Exhibit $780," shows tina,
after allowing six per cent. earnings on
all the assets actually carried on the
books of the company, there is sufficient
surplus earnings to warrant this reduc'
ton. therefore
IL Is ordered that the Champlaln Valley
Telephone company within 80 days from
the date Of this order reduce its six oil
more party business rate and Its Is OF
more party farmers line business rate
from SCI to SIS and file such change Of rate
with the clerk of the commission.