Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-12-15


Wynan of Augusta, treasurer; John
+. Everett of Augusta, auditor.
After the formal presentation of
the request for authority as stated,
Chairman BENJAMIN F. Cleaves Of
the commission asked Treasurer
Wyman to make statement cover
ing the situation, both for the records
off the commission and for the bene-
fit of the public and protection Of the
company. The suggestion and ans
| wer follow, verbatim:
Mr.. Cleaves-I think Mr.. wyman is
sufficiently familiar with this matter
so he can go on and make a general
| statement Of the purpose to be ac-
complished by the application, the
reasons why the company feels that
the situation sought is the proper
situation; and would like to have
our record show what we all here in
the Office know to be the fact, but
| which does not seem to be sensed by
certain newspapers, and we do not
know how many individuals, some of
whom have either in my presence or
elsewhere suggested their belief that
this attempted consolidation brings
about an absolutely new situation,
that before this application was filed,
and if it should be refused, that the
| Central Maine Power Co. and these
several other companies have no con-
nection whatever, and that it is an
attempt on the part of the Central
| Maine Power Co. to effectuate a pur-
chase of public service companies
that it now has no interest in, and
| that it is a broadening of the pow
ers, etc, of the Central Maine Power
| CO.
| "Of course we understand in this
| Office that it is not SO, but our record
! should contain the facts for your
benefit. We do not care especially,
because we know it now, but for your
protection and explanation of the
real situation 1 think our records
| should contain such matter that
when it is looked up it will show
exactly the situation, without going
to the several petitions and looking
them over. This is simply one feat
ure. Then, as I say, the other feat
! ure which I think we should have
placed before us is the result that
comes from granting of the applica-
{, ton and the reasons why you people
feel that this should be the situation
brought about"
Mr.. Wyman-"As the commission
! knows, each of the companies which
is petitioning to be allowed to con-
! solidate with the Central Maine to
sell their physical property to the
Central Maine, with the exception OF
the Scion Company, is completely
! owned at the present time by the Cen
trail Maine Power Co. and petitions
acquisition of the capital stock Of
| each of these companies, with the
exception of the Scion Company.
They have been paid at different
times, but all the capital stock has
been bought in each case. The stock
of the Bath and Brunswick Company
, was bought by the Central Maine and
! operated as a part of it. The same
; is true of the Penobscot Bay Electric
Company; and the others, with the
exception of Scion, were bought at
that date. The control of the Scion
Company was bought some years be-
! fore that, and it has been operated as
! a part of the Central Maine, although
we didn't own every share. During
! the past year we have bought such
shares as we have been able to buy
that we did not already own for IS
share, and think we now own all
but a very few shares.
'All of these companies, as far as
physical operation and rates and
management go, are operated as a
part of the Central Maine and have
been for several years, and the con
solidation which we ask for will make
no change in the relation of the prop
terty to the public. The benefit which
we expect to obtain from this con-
solidation is almost wholly one of adj
ministration. At the present time 1t
is necessary to keep a separate set Of
books for each one of these companies
and to keep separated every piece of
personal property which belongs to one
or the other of the companies, and
every month there are a great many
inter company charges which have to
be made. For instance, the Bath and
Brunswick Company has a mile of
wire in Brunswick that we want to
use in Gardiner. That has to be billed
to the Central Maine and go through
it's books; and then every month
we have to close up the books
of every one of these companies
and get trial balance and bal
ance sheet. and 1t is about seven
times as much work as to close the
books Of the Central Maine Power Co.
alone.
I'VE also expect to save some book,
keeping and bother in issuing securi-
ties, because now whenever any &C
these subsidiary companies issue any
securities. in order to get any money,
we have to ask for authority to issue
stocks or bonds of the subsidiary
companies and for the Central Maine
to buy those and in turn issue It's
own securities to the public. to secure
the capital which these subsidiary
companies need. think that th.,sc
are the principal reasons for asking
for this consolidation.
u T. L. -. n