Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-10-21

money with which TO keep UP It's
equipment. He stated that the in
crease in switchboard charges Tor
that concern will amount to 42.5
per cent.
Secretary Mcdonald of the Port
land Chamber Of Commerce stated
that the Portland men present
were in accord in their BELIEF that
the telephone company is entitled
to a raise in rates, but feel that IN
many cases this proposed increase
is too great.
Attorney Benjamin F. Cleaves
a Argues
The belief was expressed by Secre-
tary Benjamin F. Cleaves of the AS
ISOLATED Industries of Maine, who
was the first to argue, that no group
of people and no group of single IN
dividuals .complacently contemplate
a considerable increase in the over
head of their business, and that
with the mass of bewildering figures
put in by the telephone company
the absence of such business men in
protest at the hearing does not
| mean acquiescense.
The relationship existing between
the New England Telephone & Tele-
6ioPii SOiiiPeaiiy, eAAS <AAAASA ASS~AA
phone & Telegraph Company and the
Western Telephone & Telegraph
Company was touched upon by At
torney Cleaves, who told of the value
| of the service rendered to the New
England phone company by the other
| two companies. He suggested that
the public utilities commission look
| into this relationship existing be-
| tween the three telephone companies.
| Attorney Cleaves said that the New
| England phone company wants add
tional revenue in order to pay an
eight percent dividend to stockhold-
ers, but he knew of a lot Of people in
vesting money for less than eight
percent guaranteed dividend. He said
that for every business concern max
| ing fabulous returns on their invest
ment there are 100 concerns wonder
ing where they can get their next
weeks payroll.
City Solicitor " elch of Westbrook
expressed the belief that at the pres
! ent time in making up basis of rate
that an eight percent dividend Will
work a handicap to subscribers and
drive out some of those who are now
subscribers.
| Or. A. w. PIummer of Lisbon Falls
| DR.. A. w. Plummer appearing for
the Lisbon Falls board of trade testi-
fed that the American Telephone &
! Telegraph Company for 43 years paid
dividends of IL percent, increasing
to percent and later to nine percent
and that it would seem that an ef-
| fort to secure revenue 20 pay high
er rate of dividend is not warranted
by the circumstances.
| He said that with the stock of the
New England phone company selling
at Sis and S117 on the market, pay
ing a seven percent, dividend with
prospect of eight percent. he could
not see why the company would nave
to pay an eight percent dividend IN
order to secure money with which TO
| promote its business.
Judge Sanford L. Fogg
Judge Sanford l.. Fogg, deputy at
torney general, stated the position OIL
/ the attorney generals department IN
relation to the hearing, declaring that
while they felt it their duty to pc
present at the hearing their attitude
was non partisan. for while they
might represent one class of patrons
/ they would anita goniZe another class
those who own stock in the New
| England phone company. The de-
partment's idea was to help in any
way possible in bringing out the facts
as they exist at the present time.
Contention of Telephone Company
George r. Grant, general attorney
OF the Telephone company, began
| his closing argument late yesterday
! afternoon. He departed from the
brief which he had prepared, in ord
| err to make direct reply to points
raised by Judge Cleaves inasmuch as
| the Judge was about to start for st.
| Louis and would not be present at
| today's session.
In his address to the Commission,
Judge Cleaves asked that they con-
slider the effect of these proposed
! increased rates upon the public. Mr..
Grant countered by saying that IL
| Judge Cleaves had been present dur
ing the fifteen days of direct testi-
mony by the Telephone Company he
would have raised another question:
nnamely, How can the Telephone
! Company continue to do business
without any increase in it's rates,
| In reply to Judge CIeaves's sug-
| gestion that the Commission give
close scrutiny to the relations of the
New England Co.. with the Ameri-
/ can Telephone & Telegraph Co., Mr..
Grant said that, in putting in its
case, the New England Co. had af-
| forded the fullest opportunity for
close scrutiny.
Mr.. Grant devoted considerable
share of his time during the after
noon session to the consideration of
| the proposed abolition that is known
| as district rate in Westbrook, by
| means of which some subscribers
| who are willing to pay the Portland
exchange service rate get their calls
| to Portland subscribers without pay
| ment of a toll Jcdge Cleaves had
! previously expressed his inability to
| see the need of changing long es-
tablished custom and he expressed
| the feeling that this interchange of
| service ought to be continued, even
| IL the exchange rates had to be in :
! creased. In this connection, Mr..
/ Grant said in part
THE people of Westbrook prob
ably feel that they should not lose
their district service in Portland
| The Company's position in that re-
spect is, that since we are asking
! for substantial increases in rates as
state wide proposition, we should
at the same time eliminate all dis
| criminatory conditions which result
| in greatly reduced rates to certain
subscribers. The district rate which
| gives WeStbrook subscribers local
service, plus toll service to Portland,
I all for a fiat sum somewhat in ex-
cess of the fiat rate for purely West
brook exchange service. amounts to
nothing less than a committed toll
rate. In other words, by that ar
rangement. the Company affords to
a small number of subscribers in
Westbrook the opportunity to talk
with Portland for very much less
than the regular. toll rates to Port
| land.
Although Mr.. Grant argued that
as a legal proposition the company
was entitled to earn 8 per cent upon