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

The board. which comprises Lieu
tenant Governor +. Il. Howe, chair
man, Secretary of State Guy w. Bailey,
and state Auditor II. +. Graham, took
adjournment March 4 until this time,
to wait the report of the public serv
ice commission, at the request of the
Governor. The state was represented
to-day by the Governor, Attorney w.
A. Graham and state Treasurer f. II
Deavitt and the New England COM
pany by Matt b. Jones, general coun
| sci. of Boston, and John G. Sargent
The hearing was short as pertaining
to the big companies. being confined
to a statement made by the Governor
and reply by Mr. Jones. who requested
that the companys valuations accord
1 ing to their books and the so-called
| Manson valuation made to September
30 when the rate hearing commenced,
should be given consideration
The effect was that the State asked
to have the valuations made by the
tax commissioner reduced and the
telephone company to have them
maintained
GOVERNORS STATEMENT.
In the course of his opening statement,
Indicating the position of the State in
asking for the reduction of the appraisals
made by the tax commissioners, Cover
nor Fletcher said
las has been stated by the chairman.
the public service commission a properly
organized branch OF the government, has
been investigating the question of valua-
lions of the telephone companies of the
State for some three months or more, and
have reached a conclusion, and that con-
clusion is embodied in their report, and
the State now offers to you a certified copy
CT that, and the State at this time asks
that it be accepted as basis Of taxation
for the New England and its subsidiary
companies, and other companies
therein mentioned The State de-
slres that there shall not be two sys-
TENS of valuation, one for the purpose Of
rate-making and one for the purpose Of
taxation.
And it asks that until some court of
last resort has changed the conclusions
reached by the public service commission
that the State adopt the valuation
therein fixed for these various companies
for the purpose of taxation, 1t asks that
this board do nothing directly or in
affairs that we have double system
here in this State. And 1t further desires
that no action he taken Of any sort or
kind which interteres with a solution OF
what the State is now desiring to do,
which Is to regulate and to lay down
principle that leads to that end.
PAsSUMPsIC CASE
Permit me, to say, If you will read
that report you will discover that the
commission finds that one branch of the
State government, the then existing pub
lie service commission, by its action in
the Passumpsic territory barred the state
from any act of regulation and has left
the people of that territory with no al
tentative other than competition TO get
at what might be a fair basis for rates.
Now the State desires to avoid being in
any way placed In a position that is UNI
Just TO 1t or unjust to any OF these COM
panies. 1t does not desire to regulate
prices on the one hand and to increase
taxes on the other in an unfair and UNI
Just way.
IF you will read the history Of the
Passumpslc territory 1t viii be entirely
clear to you what tho Governor is trying
to bring to your attention. Something
Is said in the press this morning rela-
tive to the attitude of some of these
public service corporations to the other
States growing out of their relations
here In that connection / ask you
particularly to read the conditions that
developed in the Passumpsic territory
where particularly the New England was
party. the guarantee of the principal
and interest of certain stocks where
companies were to be brought together,
and the fabric was created,-which it now
says 1t cannot pay interest upon. Permit
the suggestion to you, for your con-
sheraton what was the attitude of the
New England al that time TO those other
States? What has been the attitude of
The New England on the question of
regulation Is one thing, and what has
been its attitude to the New England
stockholders in other States, Yhen II
came TO the question of suppressing COM
petiton, is another thing. Again you will
find very clearly set forth the condition
which In the minds of the public service
commission. puts an end to regulation
in that territory. So the State asks thai
you do nothing to prevent a reasonable
conclusion in what it is trying to accom-
plish, and the State leaves this whole
question in your hands, predicated upor
that report"
MR. JONES' REPLY.
Mr. Jones replied as follows: AS
stated at the other hearing. l have N
objection to this board examining, ~
far as it may desire. any TESTIMONY pre-