. L. 145]

The applicant submitted statements of its operating revenues and expenses for 1922 and eight months of 1923. These exhibits show that the company has been operating its Barnum exchange at a loss, and that an increase in the operating revenue is imperative.

The petitioner operates what is known as a magneto exchange and is furnishing telephone service to its patrons between the hours of 7 A. M. and 9 P. M., daily, except Sundays and holidays, when only five hour service is rendered during three intermittent periods.

A petition was introduced at the hearing, signed by 54 of the 65 town subscribers and 229 of the 249 rural connecting subscribers, requesting that the company furnish twenty-four-hour continuous service at the Barnum exchange and that if the facts, with reference to the earnings of the company, were as represented, the subscribers would be willing to pay the rates petitioned for. The petitioner agreed to furnish twenty-four-hour service if the proposed schedule was placed in effect. No one objected to the proposed rates at the public hearing. All exhibits introduced have been carefully analyzed.

Upon review of all the facts, the Commission finds that the present rates are unfair and unreasonable; that the rates petitioned for are fair and reasonable and will not yield more than sufficient revenue to provide for the necessary operating expense, depreciation and fair return upon a fair value of the property.

It is, therefore, ordered, That the Northwestern Bell Telephone Company be, and the same is hereby, permitted to establish and place in effect, as of January 1, 1924, the following schedule of rates at Barnum, Minnesota :

1 50

Individual line, residence. . . . .

Party line, residence (not to exceed 4 stations per circuit)....

Rural switching charge....

Per Annum

$6.00

It is further ordered, That the Northwestern Bell Telephone Company furnish twenty-four-hour-service at Barnum, Minnesota, when the authorized rate rate becomes effective.

Dated at St. Paul, Minnesota, this twenty-first day of December, 1923.

MISSOURI.

Public Service Commission.

In re APPLICATION OF THE LOUISIANA LIGHT, POWER AND TRACTION COMPANY FOR A CERTIFICATE OF CONVENIENCE AND NECESSITY FOR THE CONSTRUCTION OF ELECTRIC TRANSMISSION LINE.

Case No. 2931.

Decided August 21, 1923.

Transmission Company Required to Pay Damage Sustained by Telephone Company by Reason of Inductive Interference Where Telephone Company was Prior Occupant.

REPORT.

The Louisiana Light, Power and Traction Company (hereinafter called the company) is a Missouri corporation with its principal office and place of business in the city of Louisiana, where it is engaged as a public utility in furnishing gas and electric service at and within said city, which electric energy, prior to March 30, 1921, was generated for its plant and distribution system by steam power. Shortly prior thereto, it entered into an agreement with the North Missouri Light and Power Company to purchase from said company, electric energy for the operation of its plant and distribution system, by the terms of which agreement, the point of delivery of said electric energy was at the transformer station of the North Missouri company in the village of Frankford, in Pike County, 16 miles from the city of Louisiana. In order to obtain said power and electrical energy, it became and was necessary for the company to construct, maintain and operate an electric transmission line from said village of Frankford to the city of Louisiana.

Accordingly, on the aforesaid date, the company filed with the Commission its application for a certificate of

convenience and necessity for authority to construct, maintain and operate a three-phase, 33,000 volts, 25 cycles, transmission line over, upon and along certain roads and public highways of Pike County, Missouri, between said village of Frankford and the city of Louisiana therein. The application stated

"that said proposed line will cross the St. Louis and Hannibal Railroad, and the lines of the American Telephone and Telegraph Company at Frankford, Missouri; it will cross and for a short distance, will parallel certain rural lines and certain toll circuits of the Buffum Telephone Company, and certain privately-owned rural lines connecting with the system of the Buffum Telephone Company at Frankford, Missouri, and at Louisiana."

The record discloses that the transmission line was virtually completed at the time of filing this application; that same had been constructed without authority from or consent of the Public Service Commission, as required by law; that the matter of construction of such line was first called to the attention of the Commission by the general counsel for the Southwestern Bell Telephone Company, upon receipt of which information the company was called upon by this Commission for an explanation, which resulted in the filing of the application mentioned.

A hearing was held thereon April 27, 1921, at which the Southwestern Bell, the Buffum, the Frankford, the American Telephone and Telegraph, the rural or farmer line, telephone companies, and the St. Louis and Hannibal Railroad Company were all duly represented. None of the parties in anywise objected to the construction of the transmission line applied for, only insofar as it might interfere with the rights and business of such parties. The issue was specifically raised and the point made that the construction and operation of the transmission line as applied for and then virtually completed, would materially impair, if not entirely destroy, the telephone service of the telephone companies affected, and particularly, the rural telephone lines, which were grounded systems, and the exchange through which they operated.

[Mo

C. L. 145]

The protestants further took the position that such company should make good the injury and damage done to telephone service of the companies affected. Upon the tender of such issue, the representative of the company stated in substance, that he did not know what they ought to do or could do, and was not prepared to go into that phase of the case, and requested an adjournment to a later date for that purpose. That request was granted and notice of a subsequent hearing on May 16, 1921, was given. At this hearing, none of the parties appeared.

The company had made terms with the Buffum Telephone Company, and by stipulation filed at the hearing, agreed

"to pay the entire cost of all work on the lines owned by the Buffum Telephone Company necessary to overcome substantial, inductive interference brought about by the construction or operation of the transmission line,"

in consideration for which such company withdrew its opposition to the transmission line.

No such terms apparently, were offered the Frankford lines or the rural farmer lines, as a telegram from the citizens owning and using such lines, further protesting and objecting to the transmission line, was received and made a part of the record along with the stipulation.

There was also received, filed and made a part of the record, Exhibit No. 3, being a letter from applicant company recognizing the authority of the Commission to retain jurisdiction of the case, and by proper order, require satisfaction of applicant for any damage sustained by the parties incident to the building of said line.

Upon the application made and testimony taken thereon, the Commission subsequently made and issued its report and order authorizing and granting a certificate of convenience and necessity for the building of said transmission line, specifically reciting, however, the objection of the parties interested in the various rural telephone lines affected, and that the Commission reserve jurisdiction of