SECURITIES issue: Continued: (C. L. 145.) PAGE acquisition of property, approved for..154, 156-157, 168, 170, 233 221-222, 223, 232–233 discharging outstanding obligations, approved for... 197-198 223, 226 .244, 246, 251 new construction, approved for.... value of property for: sale of: 154, 156-157 234 171 finding as to, not to be binding in future....... portion of bond issue at, authorized (Ill.). 157 issue authorized.....140-144, 167-171, 197-198, 217-222, 223–225 232-234, 243-244, 245-246 but not in amount requested... SERVICE: hours for, twenty-four hour service ordered furnished 234-235 213, 216–217 when increased rates placed in effect.. radius for (See Rates: basis of: zones) 189-190 toll (See Toll) zones (See Rates: basis of) SERVICE CONNECTION CHARGES: directory listings, charge for extra, established... commissions, adjustment of balances due from mutual com- rates: interexchange service, free: establishment, rural line connection with two ex- upon failure, disconnection of lines, ap- interexchange service, toll: elimination of, not approved where territory PAGE 137 206 161-163 257 258-260 260 138-139 established 256-257 service, physical connection with clear line for, ordered (Wis.) 254-258 VALUATION OF PROPERTY: basis of, in general: book value plus actual cost of recent heavy additions 263 subject to change if found to be incomplete or 240 valuations, transcripts, exhibits and, to be filed and considered part of record, ordered (O.)... 240 basis of, various items: construction work in progress, estimated cost less land, reproduction cost new, allowed for.. 150-151 239 overhead charges, 7% of present value, allowed for rights of way, reproduction cost new, allowed for.... allowance made for (Ill.)... 5% of present value, allowed for (0.). depreciation, 13.2%, found to be (0.)... rate purposes, fixed for.. . . . See also Securities: issue: value. 239 239 151 239 239 .145–147, 203, 237–240 WORKING CAPITAL. See Valuation of Property: basis of, various items. ZONES. See Rates: basis of: zones. Interstate Commerce Commission. In re JOINT APPLICATION OF THE HERINGTON CO-OPERATIVE TELEPHONE EXCHANGE AND THE UNITED TELEPHONE COMPANY FOR A CERTIFICATE OF ADVANTAGE AND PUBLIC INTEREST. Finance Docket No. 3296. Decided December 1, 1923. Acquisition of Property Approved. REPORT. The Herington Co-operative Telephone Exchange and The United Telephone Company, hereinafter referred to as the Herington Company and the United Company, respectively, on October 24, 1923, filed a joint application under Section 407 of the Transportation Act, as amended, for a certificate that the acquisition by the United company of the properties of the Herington company will be of advantage to the persons to whom service is to be rendered and in the public interest. The Public Utilities Commission of Kansas has entered an order* authorizing the proposed acquisition. A hearing has been held and no objection to the granting of the application has been presented to us. The Herington company owns and operates a telephone exchange at Herington, Kansas, from which it serves about 550 subscriber stations. It also performs a switching service for approximately 120 rural subscribers, who own and maintain their own circuits. The United company owns and operates telephone exchanges, with connecting toll lines, in northern and northwestern Kansas, including an exchange at Herington serving 700 subscriber stations, of which about 150 are duplicated by the Herington company. See Commission Leaflet No. 138, p. 1181. [I. C. ( By a tentative contract made January 8, 1923, the United company agrees to purchase the properties of the Herington company and to pay therefor a sum equal to the outstanding indebtedness of that company, and further agrees to pay to the stockholders of the Herington company the par value of their stock, the total consideration not to exceed $35,000. The United company further covenants to furnish free exchange service to the telephone exchanges at Burdick, Latimer, Ramona, Delavan, Lost Springs, Tampa, Hope, Lincolnville, and Woodbine, Kansas, provided the above-named exchanges maintain a line to the city limits of Herington, over which the calls can pass. On April 30, 1923, the outstanding capital stock of the Herington company amounted to $20,337.50, and its indebtedness was approximately $12,000. An appraisal made by the valuation engineer of the United company, as of February 20, 1923, fixes the cost of reproduction new of the properties of the Herington company at $51,921.45, and, less depreciation, $39,858.83. The value of the property to he retired, less salvage, is estimated to be $15,387.36, and the estimated cost of unifying the properties is $11,949.65. In 1922 operating revenues and expenses of the Herington company were $11,889.20 and $11,746.16, respectively. The United company is an independent organization, controlled largely by local interests. Its general balance sheet, as of April 30, 1923, showed assets, $4,387,697.46; capital stock $3,287,300; current liabilities, $232,534.46; accrued liabilities not due, $113,316.45; reserves, $582,167.54; surplus and undivided profits, $172,379.01. In 1922 its operating revenues were $1,004,242.49; operating expenses $732,335.50; net income, $214,801.32. It is expected that the proposed acquisition will increase its annual gross and net revenues $8,400 and $6,000.30, respectively. Upon unification of the properties it is proposed to put into effect an increased schedule of rates, subject to the approval of the Public Utilities Commission of Kansas. |