Report to the Massachusetts Highway Commission, Being An Answer to Three Questions Asked By the Commission, Growing Out of the Investigation of the New England Telephone And Telegraph Company
Report to the Massachusetts Highway Commission, Being An Answer to Three Questions Asked By the Commission, Growing Out of the Investigation of the New England Telephone And Telegraph Company
Massachusetts. Highway Commission
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The appraisal should also extend to the whole of the operating company's property, but need not be sectionalized or carried to so much detail beyond the limits of the Commonwealth. The costs for buildings, exchange equipment, distributing lines (overhead and underground), subscribers' stations, etc., must be segregated for each district. The cost of the distributing lines must be still further divided between trunk lines and subscribers' primary lines; and a separation should be made of the tol...l lines from the subscribers' lines, as far as practicable. My conclusion that an appraisal is necessary before grounds can be found for rate-making on a basis of cost instead of a basis of expediency, seems to be concurred in by Mr. George Albree, who reported to your Honorable Body. I will quote from page 4 of the printed copy of his report, putting certain portions in italics: " In the first place, which ever of the courses is deter- mined later best to meet existing conditions, you will be Digitized by Google 11 confronted with the fact that, whether treating the Com- pany as a unit or as an aggregate of units, the three elementSj cost of plant, cost of its maintenance and cost of operation, are yet to he determined.
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