Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-09-10
STATE HOUSE
Next Meeting Of Governor Council M, Friday Sept H.

operating revenues in Maine for the
year 1924 showed exchange revenue
amounting to $2,253,371.74, and the
toll revenue amounting to SILL
1868. There were also miscellan-
eous operating revenues for tele-
graph commissions, directory adver-
tising, rentals, etc. The Company's
payment to the American Telephone
Il Telegraph Company for the use of
telephone instruments and for var
ious engineering, financial, account
7 ing, and legal services under its IL
per cent license contract amounted
in this State to $1.S5 per telephone
for the year 1924.
The statement Of operating expen-
ses in Maine, as presented by Mr..
Moore, was shown under three head
ings, namely, maintenance expenses,
(the upkeep of the plant) $1,0SS,-
1905; traffic, expenses (switch-
board operation, etc. 1854 ,913.0S;
and commercial department expen-
ses, $261 1856. The general and
miscellaneous expenses for Maine
amounted to SIS, 1858.
It appeared that out of net tele-
phone operating revenues of $685.
S03.58 the taxes assignable to opera
tions represented deduction
amounting in 1924 to $256, 1853.
Other deductions from net telephone
revenue brought the net telephone
earnings in this State for the year
1924 (plus interest charged con-
struction revenue) down to $707,-
099.51.
Another exhibit showed that the
total gross additions to telephone
plant and general equipment in this
State for the year 1924 amounted to
81, 921 ,143.77. This was an actual
expenditure, but the net figure, by
charges to a depreciation reserve for
property displaced, was reduced to
81 AIS. 1888.
Over $4,000 of this total was
represented by charges against the
new addition to the Portland divis-
ion headquarters building at 45 For
est Avenue, which also houses the
two Portland central offices. Addi-
tional equipment at central offices
absorbed $247, 800 more, among the
offices profiting therefrom being
Portland, Old Orchard, Lewiston,
Bangor, Augusta and Biddeford. Ex-
change aerial cable called for an ex-
penditure of $112,11S.93. The places
where this particular Kind of work
was done were Augusta, Hallowell,
Waterville, Northeast Harbor, Bidde-
ford, Scarboro, Rockland, Thomas
ton, Portland, Old Town, South
Portland. Winterport. Tenants Har-
Dor and Dark Harbor. Exchange
underground conduit called for an
expenditure of $50,191. and exchange
underground cable for Sill, 100.
Mr.. Moore explained the taxation
figure previously given, stating that
In addition to the taxes on real es-
tate, the State collected 6 per cent
tax on the gross revenue from tele-
phone operations within the State,
and the Federal income tax amount
ed to u IL per cent of the net in
come before local taxes were de-
Quoted, or about II 2-7 net.
Four charts were then submitted
which Mr.. Moore described as 1.-The
nut of his case" They covered a
period of 10 years. from 1917 to 1927
and dealt respectively with the
population in that portion of the
State served by the New England
Telephone and Telegraph Company,
the growth of telephones, the total
cost OF plant and equipment, and the
cost per telephone for plant and
equipment.
The first chart showed that the
New England Telephone & Tele-
graph Company served, in that por-
ton Of the State in which it operat-
ed during the year 1924, a population
OF 46I,OOO as against a population
of 486. OO0-125,O 600 greater-for the
year i917. This drop in population
was due to transfers of certain por-
lions of its territory to the Eastern
Telephone & Telegraph Company
and to other companies since that
time.
nevertheless. as indicated bv an
other chart showing the growth in
.eiepnones, instead of correspond
ing railing off in telephones, there
mas been an extraordinary increase
:. lnelr number. From 1917 to 1921
tals increase in telephones was from