L. 145]

Subscribers of the Herington company have no toll connections, and are unable to communicate with subscribers of the United company. The proposed acquisition will enable them to secure unlimited long distance service, and will eliminate existing duplication. The service they now receive will be further improved by the substitution of more modern equipment.

The United company is, and after the consummation of the proposed transaction will be, subject to the Interstate Commerce Act.

Upon the facts presented, we find that the acquisition by the United company of the properties of the Herington company under the terms of the contract described in the application will be of advantage to the persons to whom service is to be rendered and in the public interest. certificate to that effect will be issued.

CERTIFICATE.

A

A hearing and investigation of the matters and things involved in this proceeding having been had, and said Division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which said report is hereby referred to and made a part hereof,

It is hereby certified, That the acquisition by The United Telephone Company of the properties of The Herington Co-operative Telephone Exchange, under the terms of the contract described in the application and report aforesaid, will be of advantage to the persons to whom service is to be rendered and in the public interest.

December 1, 1923.

ALABAMA.

Public Service Commission.

In re APPLICATION OF THE HEFLIN TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES.

Docket No. 4444.

Decided November 19, 1923.

Increase in Rates Authorized.

ORDER.

The petition in this cause was filed with the Commission on October 27, 1923. The town of Heflin, it mayor and other citizens of Heflin have had due notice of the petition and the date for hearing same, as required by law. In accordance with the notice issued in said cause, the application was heard by the Commission at the court house in Talladega, Alabama, on the sixteenth day of November, 1923. Petitioner appeared by its manager, Mr. J. S. Morrison. No one appeared in opposition to the petition.

Upon consideration of the petition and the testimony in the cause, the Commission finds that petitioner's monthly expense of operation is approximately $173 and that its gross income is approximately $163, which results in a net deficit of $10.00 per month. Petitioner estimates its investment as $2,000. The Commission has made no investigation as to the fair value of the property, but this is not necessary in passing upon a petition where the gross income is insufficient to cover the cost of operation. Petitioner has filed in the case a certified copy of the minutes of the meeting of the mayor and council of Heflin on October 20, 1923, in which it appears that four of the council voted for a motion that the council recommend a 50-cent per month raise on all telephones belonging to petitioner's system, and one councilman voted against said motion. The petitioner states that the raise in rates is necessary

L. 145]

and is desired by it to enable it to renew and improve its equipment and to buy equipment to improve the service. It appears from the testimony that petitioner's financial condition is such under existing circumstances that the credit of the business would not be sufficient to enable it to obtain funds necessary for these purposes.

The Commission finds that petitioner is entitled to have an increase in rates and that it is necessary for petitioner to renew and improve its equipment, or a large part thereof.

It is, therefore, ordered by the Commission, That said application be granted and that the following rates be, and they are hereby, fixed for petitioner's telephone service namely:

Residence

Business

Per Month

$2.00

3 00

Said charges shall be payable in advance and will be due on the first day of the month and delinquent on the tenth day of the month.

This order shall be effective on and after December 1, 1923.

November 19, 1923.

In re PETITION OF THE STANTONVILLE TELEPHONE COMPANY FOR AUTHORITY TO SELL PROPERTY TO THE SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY.

Docket No. 4445.

Decided November 24, 1923.

Sale and Purchase of Property Authorized.

ORDER.

Pursuant to notice given to all necessary parties herein, this cause was heard at the chamber of commerce building in Tuscaloosa, Alabama, on Tuesday, November 20, 1923,

at 11 o'clock A. M. The town of Red Bay appeared by its mayor, Hon. James Copeland, and filed a written agreement that said cause be heard at said time and place. The petitioner appeared by its president, Mr. W. N. McAnge, Jr. The Southern Bell Telephone and Telegraph Company appeared by its state manager, Colonel Walter E. Bare.

By order of the Commission made in this cause on November 9, 1923, the Southern Bell Telephone and Telegraph Company was made a party respondent in this proceeding, it not having been joined as co-petitioner.

Petitioner offered its evidence in the case. No one appeared to object to the granting of the petition. Included in the testimony offered by the petitioner is a certified copy of ordinance by the mayor and board of aldermen of the said town of Red Bay adopted prior hereto, which tends to show that it is the judgment of the municipal authorities of said town that it is to the best interest of Red Bay and its citizens and the telephone subscribers of petitioner therein, that the proposed sale and transfer of petitioner's franchise, telephone plant and properties to the Southern Bell Telephone and Telegraph Company be approved, and the said proposed purchaser be authorized to operate said telephone plant and properties under said franchise.

It further appears that in the event said sale and transfer is approved, that it is the intention of said Southern Bell Telephone and Telegraph Company to maintain and operate said telephone system in Red Bay, and in the State of Alabama, and to make repairs and additions thereto.

The commission judicially knows that the Southern Bell Telephone and Telegraph Company is organized and equipped to take over said telephone system and to maintain, operate and improve the same.

The Commission finds, therefore, that the public interest will be served by the sale and transfer of said franchise and telephone system to the Southern Bell Telephone and Telegraph Company and the maintenance and operation of same by the said last-named company.

C. L. 145]

It is, therefore, ordered by the Commission as follows: (1) That said petition be, and it is hereby, granted.

(2) That the sale and transfer of petitioner's franchise to operate in said town of Red Bay, and in the State of Alabama, together with its telephone system, plant and physical properties to said Southern Bell Telephone and Telegraph Company be, and the same is hereby, approved.

(3) That the acquirement by the said Southern Bell Telephone and Telegraph Company of petitioner's said franchise, telephone system, plant and physical properties be, and the same is hereby, approved.

(4) That said Southern Bell Telephone and Telegraph Company be, and it is hereby, authorized and directed, upon the consummation of the sale and transfer of said franchise, telephone system, plant and properties of petitioner, to proceed with the operation and maintenance of said franchise, telephone system, plant and properties in Red Bay, and in the State of Alabama.

This order shall be effective at once.

November 24, 1923.