would be deprived of the system service they are now permitted to enjoy, and where intercommunication was desired between subscribers in one exchange area and those located on lines in another exchange area, such interchange of communication would be had over toll lines upon the payment of a message rate or charge. A readjustment of the lines and the adoption of more up-to-date practices as to the extent of service attempted would result, beyond a doubt, in materially reducing operating costs and should permit the furnishing of a much better and higher class of service. The company might well give consideration to the adoption of sound telephone practices in regard to the distance that service should be attempted over rural party line equipment, notwithstanding the fact that some of its individual subscribers may object seriously to any curtailment in the extent of service to be furnished as local or exchange service over rural party lines.

From the record, it appears that during the past year the company has made an effort to rebuild at least a considerable portion of its main line construction. Its efforts in this connection, no doubt, have improved service conditions at least to some extent and, according to the testimony of the officers of the company, considerable replacement of pole line is expected to be made during the current year. The practice of the company as far as maintenance of line is concerned appears to have been to devote most of its attention to the main line, relying upon its subscribers to maintain the branch lines. Such practice appears to have intensified the conditions complained of and, to a large extent, the failure to properly maintain such branch lines has been very largely a contributing cause to the service conditions complained against. It is customary for a telephone company to maintain all of the equipment, branch lines as well as main line, and we are clearly of the opinion that the defendant company should be required to assume responsibility for the maintenance of all of the lines and equipment.

Another condition testified to by the complainants and

[S. D.

L. 149]

admitted by the officers of the company has reference to certain lines being constructed through the fields or across country instead of upon the highway, and because of this situation it appears that the lineman in making inspections follows the highway and, consequently, does not locate any trouble that might exist on such lines. This should be remedied as rapidly as possible; the lines in question relocated on established highways and, until such relocation takes place, the lineman should see to it that the line as actually located be inspected and such lines kept in good repair.

From a statement filed by the acting secretary of the company, it appears that on December 31, 1923, there was due from subscribers the amount of $2,687. This clearly indicates that many of the subscribers do not pay their rental promptly. If these past due rentals had been paid promptly, the company would have been in better position to have met its obligations. It costs money to provide telephone service and the subscribers of the company should pay rental and other bills with reasonable promptness, or the service should be discontinued.

Some complaint was raised at the hearing by the complainants against the present management of the company, particularly as to the failure to make or have made a proper audit of the books and accounts. In this connection, it appears that the company holds or calls an annual meeting each year at which meetings, for some years past, a quorum has not been present. Certainly the failure of the stockholders to take sufficient interest in the affairs of the company to attend the annual stockholders' meeting should not be charged against the officers of the company. It might be well to suggest that the entire situation might be helped if the stockholders of the company would take a larger interest in the affairs of the company and cooperate to a greater extent with its officers and endeavor by their united effort to bring about the establishment of good telephone practices, to the end that better service might result. One of the weaknesses apparently inherent in so-called

mutual organizations is the tendency to change officers or management frequently. We would suggest that a better policy in this regard would be for the stockholders to take an active interest in the property and thus assist in the adoption of proper and approved policies and to assist the officers of the company in the putting into effect the policies and practices thus established.

From all of the evidence, we are of the opinion, and find, that an order should be entered requiring the Rapid Valley Telephone Company to assume responsibility for the maintenance of all of the lines and equipment from and after the date of this report, and that the said company should be required to relocate, wherever feasible and practicable, its existing pole lines upon the established highways, such relocations to be accomplished as rapidly as possible. Let an order be entered accordingly.

Done in regular session, in the city of Pierre, the capital, this twenty-eighth day of April, 1924.

ORDER,

On this date, the Board having completed its investigation and having made and filed its report containing its findings of fact and conclusions thereon, a copy whereof is hereto annexed, hereby referred to and made a part hereof, and being fully advised in the premises and sufficient cause for this order appearing;

It is, therefore, ordered, That the Rapid Valley Telephone Company be, and hereby is, required to assume responsibility for the maintenance of all of the lines and equipment from and after the date of this report and order, and that the said company be, and it is hereby, required to relocate, wherever feasible and practicable, its existing pole lines upon the established highways, such relocation to be accomplished as rapidly as possible.

April 28, 1924.

[S. D.

WISCONSIN.

Railroad Commission.

In re APPLICATION OF THE LA CROSSE TELEPHONE COMPANY FOR AUTHORITY TO ISSUE PREFERRED STOCK.

S. B.-1967.

Decided March 19, 1924.

Issue of Preferred Stock Authorized.

CERTIFICATE.

Be it remembered, that on the fourth day of March, 1924, the La Crosse Telephone Company, a public service corporation, applied to the Railroad Commission of Wisconsin for authority to issue $10,000 of preferred stock, and for that purpose filed with the Commission a statement duly signed and verified by its president and secretary as required by Section 184.09 of the Statutes.

That it appears from said statement that the corporation desires to issue $10,000, par value, of its preferred stock for the purpose of securing funds with which to pay in part for additions and extensions to be made to its property and plant, more particularly set forth in said application on file with the Commission, and all for purposes properly chargeable to capital account.

That said corporation duly and satisfactorily complied with the requirements of said statute, and the Commission, after considering said statement and the evidence before it, found and determined that the proposed issue of preferred stock is lawful and for lawful purposes, and reasonably necessary for the purposes of the corporation.

Now, therefore, the Railroad Commission of Wisconsin hereby authorizes the La Crosse Telephone Company, a Wisconsin corporation, to issue preferred stock as follows:

Two hundred shares of its preferred stock of the par value of $50.00 each, making a total issue of $10,000.

Said preferred stock shall be issued and sold for money only and at not less than the par value thereof, and the funds derived therefrom shall be used for the purposes mentioned in the second paragraph of this certificate.

Said La Crosse Telephone Company shall file with the Commission verified statements showing the amount received from the sale of preferred stock herein authorized to be sold; such statements shall be filed within thirty days of the time when the unreported amount received exceeds the sum of $2,000.

Said La Crosse Telephone Company shall file with the Commission verified statements showing in detail the items to which the entire proceeds of the sale of said preferred stock have been applied; such statements shall be filed within thirty days of the time when the unreported amounts expended exceed the sum of $2,000.

Said La Crosse Telephone Company shall not issue the preferred stock herein authorized or receive any money therefor, either directly or indirectly, until this certificate shall have been recorded upon the books of the corporation.

In witness whereof, these presents have been signed and attested by the Railroad Commission of Wisconsin at its office in the Capitol in the city of Madison, Wisconsin, this nineteenth day of March, 1924.

In re APPLICATION OF THE WISCONSIN TELEPHONE COMPANY FOR AUTHORITY TO INCREASE ITS RATES AT ITS FORT ATKINSON EXCHANGE.

U-2966.

Decided March 31, 1924.

Book Value Accepted as Rate Base- Increase in Rates as Requested

Authorized with Exceptions.

OPINION AND DECISION.

The application of the Wisconsin Telephone Company in this case was dated December 1, 1923. The schedule of rates now in effect is as follows: