principal office in the village of Rossville, Vermilion County, Illinois, and that it is a public utility, subject to the jurisdiction of this Commission; that it owns and operates a telephone system and telephone exchanges in said village of Rossville and territory adjacent thereto, and is duly authorized by its articles of incorporation so to do.

That the balance sheet of the petitioner as of August 31, 1923, copy of which is attached as Exhibit G to said amended application, shows on the asset side thereof its plant and equipment account in the aggregate amount of $74,532.09, and on the liability side thereof is shown its outstanding capital stock (all common) in the aggregate par amount of $40,000, its outstanding funded debt, consisting of first mortgage bonds in the aggregate principal amount of $20,000, and its notes payable in the aggregate principal amount of $11,600.

That said outstanding first mortgage bonds are due serially in the principal amount of $2,000 on February first each year until 1930, bear interest at the rate of 7 per cent. per annum, and that $6,000 principal amount of said bonds are now past due; that said bonds were issued in 1913 and the proceeds therefrom were used for the acquisition of property or the construction, extension or improvement of or addition to the petitioner's facilities; that said outstanding notes bear interest at the rate of 7 per cent. per annum and have been renewed from time to time, the original notes having been given for moneys used for the acquisition of property or the construction, extension or improvement of or addition to the petitioner's facilities; and that the petitioner now proposes to discharge and retire all the aforesaid bonds and notes now outstanding.

That the petitioner has actually expended from its treasury during the period within five years next prior to the filing of the application herein and ended June 30, 1923, the sum of $3,554.13 for the acquisition of property or the construction, extension or improvement of or addi

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tion to its facilities, as shown by Exhibit F attached to said amended application, and for which no stocks, bonds, notes or other evidences of indebtedness have been issued; that the petitioner proposes to expend for sundry additions and betterments to its facilities during the period ended December 31, 1923, a sum estimated at $445.87, as shown by said Exhibit F; that the petitioner proposes to expend for the acquisition of property to be used as an exchange building the sum of $1,750, as shown by Exhibit C attached to said amended application, and a sum estimated at $2,650 for additional cables, improvements to its pole lines, etc., as shown by Exhibit D attached to said amended application; and that said expenditures heretofore made and proposed to be made for the. aforesaid purposes were, and are, reasonably necessary and required.

That the petitioner proposes to execute and deliver its first and refunding mortgage or trust deed, dated October 1, 1923, to E. C. Smith of Rossville, Illinois, as trustee, covering all its property now owned or hereafter acquired, and providing for the issuance thereunder of bonds in the total principal amount of $60,000, of which Series A bonds in the principal amount of $40,000 may be immediately issued and Series B bonds in the principal amount of $20,000 may be hereafter issued under the terms set forth in said mortgage; said bonds to be dated October 1, 1923, to mature September 30, 1933, to bear interest at the rate of 6 per cent. per annum, payable semi-annually; any or all of said bonds outstanding to be redeemable on September 30, 1928, or on any interest date thereafter, at the petitioner's option, at a premium of 5 per cent.; and said proposed mortgage containing other usual and appropriate provisions, and to be executed and delivered in form substantially the same as the copy thereof attached. as Exhibit B-7 to the amended application herein.

That the petitioner now desires the consent and approval of the Commission for authority to execute and deliver its first and refunding mortgage or trust deed and to issue and sell thereunder $40,000 aggregate principal

amount of its first and refunding mortgage bonds, for the purpose of discharging and retiring its outstanding bonds and notes, reimbursement of its treasury for expenditures actually made for the acquisition of property, or the construction, extension or improvement of or addition to its facilities within five years next prior to the date of the application herein, and to provide funds for the proposed acquisition of property, or the construction, extension, improvement of or addition to its facilities, all as hereinbefore mentioned.

The Commission having considered the amended application and the evidence presented in support thereof, and being fully advised in the premises, is of the opinion, and finds, that the moneys to be procured by the petitioner from the issuance and sale of its bonds, for which authority is sought, are reasonably required for the purposes hereinbefore stated; that the expenditures actually made and proposed to be made for said purposes were, and are, reasonably necessary and required and that the same are not in whole or in part reasonably chargeable to operating expenses or to income; and that the prayer of the petitioner for authority to execute and deliver its proposed mortgage or trust deed and to issue and sell thereunder $40,000 aggregate principal amount of its first and refunding mortgage bonds, for the aforesaid purposes, are reasonable and should be granted, in accordance with the terms and conditions hereinafter provided and authorized.

It is, therefore, ordered by the Illinois Commerce Commission, That The Rossville Telephone Company be, and it is hereby, authorized to execute and deliver its first and refunding mortgage or trust deed dated, October 1, 1923, to E. C. Smith of Rossville, Illinois, as trustee; that said mortgage shall contain the provisions hereinbefore mentioned and shall be executed and delivered in form. substantially the same as the copy thereof attached as Exhibit B-7 to the amended application herein.

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It is further ordered, That The Rossville Telephone Company be, and it is hereby, authorized to issue and sell $40,000 aggregate principal amount of its first and refunding mortgage gold bonds, Series A, dated October 1, 1923, maturing September 30, 1933, bearing interest at the rate of 6 per cent. per annum, payable semi-annually, and to be issued under and secured by its first and refunding mortgage or trust deed herein authorized to be executed and delivered.

It is further ordered, That the authority for the issuance and sale of said bonds be, and the same is hereby, granted upon the following conditions and not otherwise:

(1) That the petitioner shall sell $20,000 aggregate principal amount of the bonds herein authorized to be issued so as to net said company not less than the principal amount thereof, besides accrued interest thereon, and that the proceeds therefrom shall be applied only for the purpose of the discharge or retirement of $20,000 aggregate principal amount of its first mortgage bonds now outstanding, as set forth in Exhibit E attached to the amended application herein.

(2) That the petitioner shall sell $20,000 aggregate principal amount of the bonds herein authorized to be issued so as to net said company not less than 90 per cent. of the principal amount thereof, besides accrued interest thereon, and that the proceeds therefrom shall be applied only for the purposes of (a) the discharge or retirement of its promissory notes, as set forth in Exhibit E attached. to the amended application herein, $11,600; (b) the reimbursement of its treasury for moneys expended therefrom during the five years next preceding the date of the filing of the application herein, as shown by Exhibit F attached to the amended application herein, $3,554.13; (c) the acquisition of property as shown by Exhibit C attached to the amended application herein, $1,750; (d) the construction, extension or improvement of or addition to its facilities, as shown by Exhibit D attached to the amended

application herein, $2,650; and as shown by Exhibit F attached to the amended application herein, $445.87.

(3) That all discounts, commissions and expenses in connection with the approval, issuance and sale of the bonds herein authorized to be issued, shall be amortized out of the income of said company, prior to the maturity of said bonds, by the payment of equal annual or monthly installments sufficient for such purpose; provided, however, that said company may at any time prior to the complete amortization of said items, charge to profit and loss the entire amount thereof then remaining unamortized.

(4) That said company shall keep separate, true and accurate accounts showing the sale or disposal of the bonds herein authorized to be issued and the application of the proceeds therefrom, and such accounts, vouchers and records of said company shall be open to audit and may be audited by accountants or examiners designated by the Commission for such purpose; that within sixty days after the date of this order and within every ninety days thereafter, if necessary to show full compliance with this order, said company shall file with the Commission a report (in duplicate), signed and verified by an executive officer of said company having knowledge of the facts, which report shall show: (a) amount of bonds sold during such period; (b) amount of proceeds realized from the sale of said bonds; (c) amount of such proceeds applied to the purpose (or each of the purposes) authorized by this order; (d) amounts expended for new construction, itemized to show the expenditures for each item or project referred to in Exhibits C, D, and F attached to the amended application herein. If during any such period no bonds are sold or proceeds applied, a report shall be filed stating such facts. Final report shall be filed forthwith when all transactions are completed in compliance with this order.

(5) That upon the discharge or retirement of the first mortgage bonds or the promissory notes herein authorized