Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-05-29

Of the aggregate of the properties of
each of the companies whose fran
chises and properties are to be pur-
chased. These estimates and values
have been carefully gone over by the
| Commission, and they seem to be
fair. In arriving at the value Of the
physical properties, the engineer de-
termined first the reproduction cost OF
the various units of such properties,
and used the result so obtained as
one of the elements for determination
of the present value of such proper
ties. In the case of the New England
Telephone & Telegraph Company its
plant and properties had been kept up
10 date so that the element of Obso-
lescence and inadequacy did not ma
terially decrease the present value be-
! low the reproduction cost. In the
cases of the Northern Maine Tele
phone & Telegraph Company and the
Moosehead Telephone Company OBJ
solenscence and inadequacy reduced
the reproduction cost about IS per
| cent, and this Was necessary on ac-
count of the manner in which the
originally built. the failure to make
necessary repairs and the failure of
each company to keep its plant and
equipment up to date, resulting in the
| necessity of expanding a considerable
amount of new money in bringing
each of these plants to condition
where proper service could be given
| Although the authorized capital
stock Of the Moosehead Telephone &
| Telegraph Company is s25o,00o. the
petition asks only for the present is
sue Of $4,000, which is the exact
amount required to purchase the
| franchises and properties of the other
three companies al the value fixed by
! the engineer and agreed to by the
three selling corporations at meetings
properly called and held. The issue
| of the balance of such capital stock
is not at present asked for, but such
balance is to remain in the treasury
until such time as its sale becomes
necessary in order to produce money
to make improvements. extensions ano
additions to the plant of the purchas-
ing company.
The amount fixed as the value OF
the franchises and properties of the
Northern. Maine Telephone & Tele-
graph Company. and agreed upon by
that company, is $21,600: Of the
Moosehead Telephone Company s27,-
$50; and of the New England Tele-
phone & Telegraph Company s12O95o
| These values, upon the evidence pre-
sented, are approved by this Commits
sion.
| 1t may not be out of place to say
word in regard to the Milo Tele-
phone Company and the Brownville
Telephone Company. Each Of these
corporations is organized under the
General Law and is doing business in
it's respective territory. While the
franchises of the New England Tele-
phone & Telegraph Company author
ICED it to do business in the same ter
ritory, 1t has not done and is not ac-
| tually doing any business in such
territory, except to make connections
4 at the switchboards of the Milo and
Brownville Companies for toll bust
ness. The only objection Of these two
companies arose out Of an apprehen
sion that the newly formed company
might obtain authority to do bust
ness within the territory occupied by
the Milo Telephone Company and the
BrOwnville Telephone Company. 1t
appearing, however. that the new
company does not propose so to do,
4 and that in any event it would have
to comply with Sections q and % of
the Utilities Act before it could serve
such territory. the objections Of the
Milo and Brownville companies ap
rear not to be we'll grounded.
After hearing all the evidence pre-
I sented and maturely considering the
same. it appears to US that the sale
by the New England Telephone &
/ Telegraph Company, the Northern
Maine Telephone & Telegraph Com
pany and the Moosehead Telephone
Company of the franchises and prop
critics described in the pending petit
ton. and the purchase of the same
by the Moosehead Telephone & Tele-
graph Company, is reasonable. desir-
able and necessary in the interests OF
the public, and that an order author
| izing the same ought to be made. 1t
/
capital stock of the Moosehead Tele-
phone & Telegraph Company to the
amount of $4,000 is required in GOOD
faith for the purposes enumerated IN
Section IS. Chapter 1es. Public
Laws of 1913, and that the issue
thereof, under the conditions herein
after imposed, is consistent with pub
lie policy, and 1t is ordered.
! /. That the petitioner, the Moose.
head Telephone & Telegraph Co.. be-
and hereby is authorized to issue OF
| its capital stock and amount equal tc
the par value of $4,000. and use the
same for the purchase Of the fran
chises and properties of the New Eng
land Telephone & Telegraph Co.. the
Northern Maine Telephone & Tele-
graph Co. and the Moosehead Tele-
phone Co., fully set forth and described
| in the pending petition.
! 2. That the New England Telephone
& Telegraph Co. is hereby authorized
to sell to the Moosehead Telephone &
Telegraph Co. the properties and fran