The Caledonian-record. [volume] (St. Johnsbury, Vt.) 1920-current, 1922-08-23
Telephone Company
Presents Side
CONTINUED from page one)

(COnClnued from page One)
the burden of proof the commits
sion has always been relieved of a
! decision because the operating
company has been willing to make
a showing. At the 1913 telephon,
hearing ruling was made tina
the burden was on the telephone
company to show the justice of The
increased rates, and inaSmuch az
the facts and figures and all kind
red questions are all in the posses
sion of the operating company, the
commission feel that the burden OF
rates, In view of the holding the
proof ought to be with the opera
ting company to justify increased
motion of the attorney for the
telephone company was overruled
Exceptions were taken by the
attorney for THE telephone com
pany and allowed. In opening theil
side of the case Mr.. Grant filed
with the commission the schedule
of rates for service which were
operative from Dec. /, 1919, to
May Is, 1922. The first witness
was Frederick E. Moore, genera
auditor of the New England Tele-
phone Company.
Mr.. Moore was on the stand
nearly two hours, explaining in MI
rute detail how the books of the
company were kept, particularly as
they related to the receipts and
expenditures of the telephone area
in the three counties of Caledo-
MIA, Essex and Orleans. 1t was
very evident that this did not in
forest the audience who had gath
ed for the hearing and they soon
began to leave the hall, only two
remaining through the afternoon
session. Mr. Moore stated that the
receipts for the year were $179,-
52Z.24 and the expenses SITS, 208.-
r. Adding per cent interest
i charges of $32,819.02 the annual
deficit would be 27,505$.51. Mr.
Moore said the plant was valued
at $500,316.92 to which was added
a working capital of $4,000. He
said the latter item was quite
small as at the 1913 telephone
hearing a working capital of $43,
00C was reported. Analysing the
matter of free toll calls he said
that the first month after they
we're eliminated the tolls yielded a
revenue of $1,033.20 and the sec
ond month a revenue of $1,025,-
%. On a yearly basis this would
net the company $12,354.90, reduc
ing their deficit from about ST.,
600 to SIS, 10000.
Lawyer Porter sharply cross cX-
amined the witness in the endeav-
or to establish his contention that
Mr.. Moore's figures were largely
estimates. Mr.. Porter went into
the details of the purchase of the
Possumpsic Telephone Co., for
S416,159 and questioned him about
the cost of the Citizens Telephone
plant and the disposition of the
material acquired from that COM
pany.
Before he left the stand Mr.
Moore was questioned by Chair
man Dutton of the commission and
the facts were brought out that
the New England Company is
subsidiary of the American Tel
and Tel. Co., that the latter cor
poration own So per cent of The
stock of the New England Com
pany, renting them all the trans
mitters and receivers and furnish
special Investigations for improve
ment of the service, etc.
George F. Hagerman, the en-
gineer of the New England Com
pany, said he appraised the prop
erty of the Passumpsic Telephone
Company at the time it was ac-
Quirea by the New England Com
pany. He had also made a care
full appraisal of the plant in the
three counties within three weeks
and he described how he made
these appraisals. He said there
had been numerous requirements
since the Passumpsic Telephone
Co., was acquired, citing especially
tn, work now being done between
Island Pond and Derby Line.
Since the New England Company
took over the Passumpsic Tele
phone Company they had made
betterments of 100000 This
WAS being increased right along.
He explained at the close of his
ties timony the various items entef-
ing into an appraisal, being ques-
toned by several members of the
commission as we'll as by the at
torneys.
The hearing adjourned to Q
o'clock Wednesday morning and at
this session there were no specta-
tors present.
Mr.. Moore was recalled by his |
attorney and after few questions |
by Mr.. Grant he was again cross
examined by Mr.. Porter who |
brought out the fact that the APP
praisal of the New England Tele
phone Company was $136,000,000, |
and that they had outstanding
bonds of $46,000,000 and was
bonds of $46,000,000 and cap
ital stock of 100000. !
Mr.. Porter then Intercepted the |
witness as to what this difference |
represented, declaring that the tel
ephone company was a money |
getter and that the public We're !
contributing very largely to its
treasury.
Henry F. Moses, the toll rate
engineer, said that standard toll