The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1914-03-26
WILL APPEAL TO COURTS
Vice President Hall Tells Why Order
Cannot Be Complied Win

Cannot Be Complied Win
vice President ~ X Hall OF the
New England Telephone and Tele-
graph company made the following
statement OF the position OF that COM
pany relative TO the order issued by
the majority OF the public service
commission OF Vermont
Never before IN the history OF the
New England Telephone and Tele
graph company has II taken any ap-
peal from any order or recommended
ton by any commission, either state
or federal Circumstances surround
Ing the present case. however. are
peculiar and the finding is one which
the company is unable to understand,
IN view Of the facts and the evidence
presented TO the commission.
In Justice 10 the telephone using
public In the state OF Vermont and the
other states where the company oper-
ntes, as we'll as In justice 10 the COM
pany Itself. the officers OF the com
pany feel that II is their duty to APP
peal from the decision Of the majority
Of the commission In this case. ana
wish to state frankly why such an
action seems to be the only course
fairly open to them.
The ne, revenue Of the New England
company on It's Vermont business al
the present time represents less than
= percent return on the value Of the
property located in Vermont. The re-
auctions proposed by the majority oil
the commission would practically
wipe out all OF this net revenue
Although the commission admits In
its opinion that the company is en-
titled 10 earn al least 6 percent, IT
undertakes TO establish, by the order
OF the majority. set Of rates under
witch il would be impossible to earn
even / percent, provided the company
continued 10 maintain its plant and
the quality Of its service.
The majority opinion seeks to iusti-
~ these apparently contradictory con-
illusions by arbitrarily reducing the
value OF the company's property. as
shown by the uneontradicted evidence
in the case. 10 figure far below its
actual cost and far below what II
would cost to replace II in It's present
condition II then proceeds 10 ar6i-
irariiy reduce on paper. various ac-
tual costs Of maintaining the plant
and furnishing the service by making
various assumptions as To values and
costs which are not only not based
on any evidence presented al the
hearing. bat which are distinctly con-
trafs to The uncontfadlcted evidence
IN the case
the majority az the commission
then present compilation nf figures
based on these various assumptions
which they argue lastines the reduc-
tions suggested and which they
argue, shows how the company might
set percent Feturn on this theureti-
cal investment ny carrying these
assumptions stia further and BY arbi-
,rarily, ON paper. reducing the value
81 The c0mpary's property BY 20 per-
cent instead of BY 70 percent. II
would obviously he possible "a insti
~ On paper. still more liberal re-
cuction la the rates
Unfortunately for the company
however. upon ahnm rests The re-
sg,ona6lli,y Of furnishing the service.
these assumptions DO not help very
much IN the actual conduct 81 the
business II an article costs dollar
II o0sss dollar. and lis yalue Is not
CHANGED hy an arbitrary assumption,
on paPer that IL costs 90 eents. and
ihc tact remains ihat II the rate
schedui. as proposed b. the majority
"a the commission had been ia enec,
during %. year ending June 80. 1913,
the company aouid have been lett
~iihoai any margin q profit whatever
0sW sas above the expense Of far.
nishing ssrsies IL the state Of YER
naoni.
under these circumstances there
scsm 70 BE- fanf poaslhle courses open
10 the coinfany
Ito aeaalesce to tie majority de-
clfinG a. the eon3nslssi0n and under
take 70 have she loss on its Vermont
Business carried b lhe telephone as
ing public q TIE other states We
&C noi Believe insl tnis Is fair 70 TIE