Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1916-08-23
WHAT THE PAPERS SAY.
Page and His Banking.

The Randolph Herald and News is
about right when it says that the bank !
commissioners charges against Senator
Page are more serious as an index of
his mental attitude toward right and |
wrong than their bearing on the COM
mission OF the acts themselves. The |
very fact that Commissioner Williams |
had to work six years before he could |
induce Senator Page to mend his bank |
ing methods would seem to indicate
that the gentleman from Hyde Park
possesses what might charitably be
called a defective moral vision. And
such possession is dangerous thing
for United States senator to have
Brattleboro Reformer
Same Old Telephone Story.
Some interesting evidence was given
at the telephone rate inquiry before
the Quebec Utilities commission at
Sherbr0oke, Friday. For instance, it
was stated by the secretary of the E. T.
company, that at the time of the
merger the E. T. company assumed
the liabilities of the old Peoples COM
pany took over the Bell plants sat
price agreed upon" the Bell company
receiving bonds and stock in proportion
to the value of the assets it had put in,
or about one-third more than the
Peoples company. To be exact the
Bell company received $50, 425 in COM
mon stock, $22, 325 in preferred stock
and S64, 900 in bonds. The old shares
of the Peoples company were ex-
changed for shares in the E. T. COM
pany. The Peoples company had
S44, 500 at the time Of the merger, and
these were exchanged dollar for dollar.
The plants were old and run down ;;
nobody seems to have put real money
into the enterprise to build it up, but
the old holders received out of stock
and bonds upon which it was apparently
expected to reap a harvest. The two
companies had each maintained indie
pendent lines along the same highways
for many miles, and independent ex-
changes in towns and villages. Great
economies were to be effected by the
union. At the time of the merger, SUBJ
scribers were told that the old rates
would be maintained. Soon afterwards
all connection with outside territory
began to be Topped off, and later on
the price boosting began. The old
price was SIS, the new one $25, the old
territory was the county, the new one
the local exchange.
The present physical value of the E.
I. plant, as given, by the secretary of
the company, is S126, 375. SO, and
against this is bond issue of $108, 100
The most remarkable bit of evidence is
thatain arriving at this total, no allow
ance had been made for depreciation.
If man bought a secondhand auto
mobile, banged it over the rough roads
for four years. and then put it in at
the price Of new one, he would be in a
ri wit no FOL
we have several times pointed out, the
old Peoples company served useful
purpose in keeping the rates within
bounds. but subscribers of today could
hardly be expected to furnish the prof
its the old company failed to make
1t the plants of the two companies
which went into the merger had been
put IN at their actual value at that
time, IT the new company's affairs had
been wisely and prudently managed
since, and if the arrangements with
the Bell company in regard to tolls be
a reasonable one, then it would be only
fair that stockholders as we'll as bond
holders should receive reasonable in
come. But subscribers should not be
bled in any effort to create an income
on absurd values. One of the COM
pany's contentious is that it does not
Ayers Cliff exchange may talk with
any subscriber on the Rock Island
exchange, without toll, but every sub
scriber on the Rock Island exchange
must pay for connection with any sub
scriber on the Ayers Cliff exchange.
Of course there is no discrimination
about that. 1t is only fair, however,
that final judgment on the whole
affair should be withheld until the
commission has complete its inquiry
The telephone is a necessity. Ii the
E. T. company can show that its vaIua-
tions are right, that it is not being
impoverished by the Bell interests, and
that it is being skilIfully managed, by
all means let the holders have a fair
income on their investments even if We
have to pay 500 for a phone. But
some companies have furnished teIe-
phone service at a much lower figure
and that with profit TO themselves. -
Stanstead (P. Q }, Journal
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