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said Illinois Southern Telephone Company and the sale by said Murphysboro Telephone Company of all of the latter's property and assets of every kind and character and wherever situated (except its corporate franchise), and (2) to the granting of a certificate of convenience and necessity to said Illinois Southern Telephone Company.

A hearing was held on said joint application at the office of the Commission in Chicago, Illinois, on December 11, 1923, at which time and place Ben B. Boynton appeared as attorney for the joint petitioners, and evidence was presented in support of said joint application. The matters involved being now dụly submitted to the Commission for disposition, it appears:

That the Illinois Southern Telephone Company is a corporation duly organized and existing under and by virtue of the laws of the State of Illinois, with its principal office in the city of Murphysboro, in Jackson County, Illinois; that at the present time it owns and operates no telephone property, although its articles of incorporation duly authorize it so to do.

That Murphysboro Telephone Company is an Illinois corporation which owns, manages and operates a telephone system in Illinois, consisting of local exchanges and connecting toll lines; that its said property is all located in the State of Illinois and extends throughout a number of counties in southern Illinois.

That Murphysboro Telephone Company has agreed to sell and Illinois Southern Telephone Company has agreed to buy, all of the former's property and assets (except its corporate franchise) for the sum of $1,125,000.

The joint petitioners presented an appraisal of the property involved herein as of September 30, 1923, and based on costs prevailing as to that date. This appraisal shows the cost of reproduction, new, to be $2,251,772 and the cost of reproduction, new, less depreciation to be $1,856,346. In Case No. 9812* by second supplemental order

* See Commission Leaflet No. 131, p. 1049,

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entered on July 27, 1922, this Commission found the fair value of the property of the Murphysboro Telephone Company as of December 31, 1921, based upon 1912-1916 costs, to be $900,000. From December 31, 1921, to September 30, 1923, the company added to its property by way of net additions, the sum of $245,152, which added to said value of $900,000, makes a total of $1,145,152 for the property.

The joint petitioners now desire the consent and approval of the Commission to the proposed purchase and sale of the aforesaid telephone property for the consideration hereinbefore stated; said Illinois Southern Telepkone Company now desires that the Commission grant to it a certificate of convenience and necessity, authorizing it to transact the business of a public utility in furnishing telephone service in the territory now served by said Murphysboro Telephone Company.

The Commission having considered the joint application and evidence presented in support thereof and being fully advised in the premises, is of the opinion, and finds :

1. That the reasonable and fair value of the property involved in the aforesaid proposed purchase and sale, for the purpose of this proceeding, is at least $1,125,000, and that the prayer of the petitioners for the consent and approval of the Commission to said proposed purchase and sale is reasonable and should be granted, and that the public will be convenienced thereby, and that the purchase and sale of said property should be authorized by the Commission, upon the terms and conditions hereinafter provided and authorized.

2. That the public convenience and necessity require the operation of a telephone system in the territory now served by the Murphysboro Telephone Company, and that the prayer of said purchaser, Illinois Southern Telephone Company, for a certificate of convenience and necessity, as aforesaid, is reasonable and should be granted.

It is, therefore, ordered, That the consent and approval and authorization of the Illinois Commerce Commission be, and it is hereby, given to the sale by Murphysboro

Telephone Company and the purchase by Illinois Southern Telephone Company, of all of the former's property and assets of

of every kind and character and wherever situated (except its corporate franchise) for the sum of $1,125,000.

It is further ordered, That the purchase and sale of the aforesaid property be, and the same is hereby, authorized upon the following conditions and not otherwise:

(1) That the transfer of the telephone property involved in said purchase and sale shall be consummated by the execution and delivery within ninety days after the date of this order, of good and sufficient deed or instrument of conveyance, copy of which, duly certified, shall be filed with the Commission within twenty days after the execution and delivery thereof; and that said purchase and sale shall not be complete until such certified copy shall have been filed with the Commission.

(2) That the finding of value for the property involved herein shall not be considered as conclusive evidence of such value should that question ever be presented to the Commission in any subsequent. proceeding affecting the rates of the Illinois Southern Telephone Company.

(3) That the present rates for telephone service in the territory involved herein shall be accepted and placed in effect by the Illinois Southern Telephone Company as its rates for said service.

(4) That the Illinois Southern Telephone Company shall set up on its books a depreciation reserve equivalent to the depreciation reserve now carried on the books of the selling company with respect to the property involved in this proceeding, and shall record its fixed capital accounts in such manner as to conform to this provision.

It is further ordered, That a certificate of convenience and necessity be, and the same is hereby, granted to Illinois Southern Telephone Company, authorizing it to construct, maintain and operate the telephone system and transact the telephone public utility business in the

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territory now served by the existing telephone system of the Murphysboro Telephone Company, and by this order authorized to be purchased by Illinois Southern Telephone Company; and that such certificate shall be issued by the secretary of this Commission and authenticated by its seal, pursuant to Section 55 of An Act Concerning Public Utilities, approved June 29, 1921, and now in force in the State of Illinois,

By order of the Commission, at Springfield, Illinois, this twelfth day of December, 1923.

In re APPLICATION OF THE ILLINOIS SOUTHERN TELEPHONE

COMPANY FOR AN ORDER AUTHORIZING THE ISSUANCE OF
SECURITIES.

Case No. 13723.

Decided December 12, 1923.

Issue of Securities Authorized.

OPINION AND ORDER. Application having been made to the Illinois Commerce Commission by the Illinois Southern Telephone Company for the consent and approval of the Commission to the issuance and sale by said company of $500,000, face value, of its common stock and $800,000 aggregate principal amount of its first mortgage 612 per cent. series gold bonds, and a hearing having been held on said application and the petitioner having presented its evidence in support thereof, and the matter having been duly submitted to the Commission for disposition, it appears:

That the Illinois Southern Telephone Company, the petitioner herein, is a corporation duly organized and existing under and by virtue of the laws of the State of Illinois, with its principal office in the city of Murphysboro, Illinois; that it is a public utility within the meaning of Section 10, Article 1, of An Act Concerning Public Utilities, (IIL approved June 29, 1921, and now in effect in Illinois; that it is not as yet engaged in the business of operating a telephone utility, although it is duly authorized by its articles of incorporation so to do.

That the petitioner has no securities issued and outstanding at this time, although by its articles of incorporation it has an authorized capital stock of $1,000,000.; that the petitioner proposes to buy the property of the Murphysboro Telephone Company for the sum of $1,125,000; it proposes to buy the property of the White County Telephone Union for the sum of $50,000; it proposes to buy certain exchange and toll line property of the Commercial Telephone and Telegraph Company for the sum of $11,500; it proposes to invest in extensions and additions to its property the sum of $113,500. That the petitioner now desires the

desires the consent and approval of the Commission to the execution and delivery of its first mortgage, in the form of a deed of trust, to be dated December 1, 1923, to Chicago Trust Company, of Chicago, Illinois, as trustee, covering all the property now owned or that may hereafter be acquired by said company for the purpose of securing a maximum issue of $2,000,000 principal amount of first mortgage gold bonds, including the proposed present issue of $800,000 principal amount of first mortgage 61/2 per cent. series gold bonds, said bonds to be dated December 1, 1923, to mature December 1, 1943, to bear interest at the rate of 612 per cent. per annum, par. able semi-annually; the said mortgage to contain the usual and appropriate provisions securing a maximum issue of $2,000,000 first mortgage gold bonds; said mortgage to be executed and delivered in form substantially the same as the copy thereof filed herein as petitioner's Exhibit A.

That the petitioner now desires the consent and approval of the Commission to the issuance of $500,000, face value, of its common capital stock and to the issuance of its said $800,000 aggregate principal amount of first mortgage 612 per cent. series gold bonds, under the terms

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