Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-09-01
Counsel Gives Reasons
Continued from Pace One)

points to be covered and the testi-
mony of Matt B. Jones of Boston,
president of the New England Tele-
phone G. Telegraph Company. 1t is
anticipated that three weeks, at
least, will be consumed in the pres
entation of the company's side of the
case. A recess will then be taken
of about a week and then the re-
monstrants will present their evil
dence.
In addition to President Jones and
Attorney Grant, the company is rep
resented by Charles S. Pierce of Bos-
ton, vice president and general man
ager; George X. Manson, chief en-
gineer; Archie w. Favour, secretary
to the vice president and general
counsel; and Frank G. Harrington
of Augusta, special counsel.
That there will be strong oppo-
sition to the granting of the increas-
ed rates was evident by the following
appearances entered: Attorney
George F. Eaton for the City of Ban
cor: Attorney w. H. Powell for the
city of Old Town: Benjamin F.
CIeayes of Portland, for the Asso-
ciated Industries of Maine; Z. l..
and E. H. Mcdonald for the Port
land Chamber of Commerce.
President Jones of the telephone
company will continue his testimony
when the hearing is resumed this
Tuesday morning.
Outlines Case Of Telephone Company
1.-THE New England Telephone &
Telegraph Company comes before the
Public Service Commission OF Maine
at this time" said Mr.. Grant In out
lining the case to the Commission,
"to sustain the burden of showing
that the increased rates for telephone
service in this state, which it has III
ed according to law. are just ana
reasonable, and are no higher than
are necessary in order to enable the
Company to continue to render aoe-
auate. service to the public, and TO
earn a fair return on the fair value
of it's property. In fact, we SHAH
show you that the rates now under
consideration by you will earn less
than a fair return on even the DOCK
cost Of the Company's property dur
ing 1926-the first full year in which
the new rates can be in effect.
Reviewing the history of the Com
pany, Mr.. Grant said it had been en-
gagged in the conduct of the telephone
business in New England since No
vemeber /, 1888. 1t was formed by
the consolidation of a number OF
companies, then operating in Maine,
New Hampshire, Vermont and Mass
achusetts. The Southern Massachu-
sets Telephone Company was pur-
chased in 1899, and it's property and
accounts consolidated with those of
the New England Company in 1912.
The Providence Telephone Company,
operating in the State OF Rhode Is
land, was merged in 1921.
On August /, 1925, the New Eng
land Telephone and Telegraph Com
pany was operating 1,1O7,219 stations
in the five states of Maine, New
Hampshire, Vermont, Massachusetts
and Rhode Island-more than double
the number operated in 1914. These
stations were originating total of
over 100000 calls daily through 478
central offices. Other telephone COM
panies in New England operated
about 10000 additional telephone sta
lions. In some of these companies
the New England Company has f.
nancial interest; in other companies
II. has no such interest. With all
these companies, however, except a
few small companies representing
approximately 5000 telephones, it
has connecting agreements for the
interchange OF toll business. The
New England Company is also part
of the Bell System, which relation
ship enables it to render a toll serv-
ice throughout the entire United
States over the lines of the American
Telephone & Telegraph Company.
Capital Obligations Of Company
Mr.. Grant set forth in detail the
financial condition of the Company,
and summed up its capital obliga-
tons, as of July 1st, 1925, as follows:
Stock ....%............. $SS,025.400
Funded Debt .......... 46,S20,OOO
Floating Debt ........ 40,S69,2O0
s172,714,soo
It's stockholders number 1878. OF
this number 9,441 or about SEQ of the
total, own so shares or less. The
largest single stakeholder is the
American Telephone & Telegraph
Company, which owns about $3.50 Of
the stock now outstanding.
The rate increases in the State of
Maine, during the past ten years,
have increased the revenues less than
1890 on the average, he said. Prac-
tically all these increases resulted
from changes directed by the Post
master General in 1919, while the
property of the Company was being
operated by the Federal Government,
as a war measure.
Contrasting this average increase
of 1870 in telephone rates with the
increases in the cost of giving service
during the past ten years. Mr.. Grant