The Barre daily times. (Barre, Vt.) 1897-1959, 1914-01-07
ONLY ONE DIVIDEND PAID.
Declared Allen Hollis, Concerning the
White Mountain Telephone Co.

The case Of the White Mountain Tele
phone company was taken up when tht
hearing on rates was resumed by the
Vermont public service commission al
Montpelier yesterday. Allen Hollis, tht
president, said the company was incor-
porated in 1907 to consolidate three com.
panies, the Plymouth and Canton Tele-
phone Exchange company, the telephone
plant OF the Pike Manufacturing com
pany and the plant of the New England
company at Woodsville and Wells River
Subsequently this company purchased
the Bakers River Telephone company
and the Woodsyille Telephone company
after an appraisal and with the APP
proval of the New Hampshire public
service commission.
Mr. Hollis said his company had never
earned or paid dividend, except one
year on preferred stock issued to the
Bakers River company in part payment
of the purchase price.
For the calendar year 1911 this com
pany represented an Investment of Sl42.-
900. The income of the company for
the year was S3S,640, and the expenses
S3s 200, leaving net income of S379.s0.
For the year 1912, the gross income was
1872, and the expense $4,000. For
the II months ending June 80. 1913,
the plant value was Sl05,700, the in
come $i7 800, and the expense S44,4S4,
leaving net income of $2,Sl5.4l.
Nearly the entire net income for the
year. Mr.. Hollis said, was due to
new traffic agreement with the New Eng
land company, similar in terms to the
new agreement offered to all connecting
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 q majority of the stock it
does not have n majority of the direc
tors, and that while the managers were
usually harmonious there were few
instances where the New England COM
pany was not allowed to have its own
way. He gave the details of the traffic
and purchasing agreements with the New
England company and said he regarded
both of these agreements as being entire
" fair Under the purchasing agree
nent they rented such instruments as
they needed at rs cents a year and for
full sets purchased from the Western
Electric company they paid S2.99. They
)ah two per cent. commission for hand
ing stock and sixty-one hundredths per
,ent for Boston office expense involving
details. His company has
,nly so subscribers in Vermont, connect
ID with Vermont exchanges, and only
92 subscribers in all Vermont.
The net effect of the proposed re-
luction in Vermont would be to reduce
lis company's revenue Slss a year, which
would absorb the net earnings so far as
Vermont is concerned. He added that
lie doubted whether at present rates his
ompany could earn a reasonable re-
urn on the capital invested, and that
It reduced rates it couldn't earn any
hing.
He volunteered the opinion that the
of good, reliable, adequate
ervice was the most important thing
public utility corporation ought to
onsider. A difference of % per cent.
month was not to be considered as an
ifset to good service. A public utility
ught to consider first the matter of |
ervice, and put its rates up to point
hat would enable it to give good seryiGa-