L. 145] mission would be secured on calls to Grange Hall subscribers, and better service in consequence, if the Range Line company's lines were connected directly to the Grange Hall switchboard. In cases where neighboring exchanges have in effect a toll charge for interexchange service, the connection of rural telephone lines to both exchanges is often undesirable because it is found to lead to an improper use of these lines to avoid payment of toll charges. In this case, however, there is no toll charge between Maiden Rock and Grange Hall, so that this reason for disapproving the proposed connection does not exist. We believe that it is entirely proper that the Range Line company's lines be connected both at Maiden Rock and Grange Hall, but we do not believe that we can require the Maiden Rock and Grange Hall exchanges to furnish this service at $3.00 per telephone. The present $6.00 rate of the Maiden Rock exchange covers certain fixed charges incident to the investment which that exchange must have to furnish service. to the Range Line subscribers. It covers also operators' and clerical wages. If the lines are connected to the Grange Hall central, the amount of operators' time required at Maiden Rock will be decreased, but the fixed charges and some of the other expenses will not be decreased. We believe, therefore, that although the Range Line company should be authorized to connect its two lines to the Grange Hall switchboard, maintaining its present connection with the Maiden Rock switchboard, it should not be authorized to obtain this service at the present total cost of $6.00 per subscriber. Facts now available are not sufficient to enable us to determine with great accuracy the cost of this service at each exchange, but we believe that an annual charge of $3.75 per subscriber for connection at each end of these lines is substantially a correct charge. It is, therefore, ordered, That the applicant, the Range Line Telephone Company, may, if it so desire, connect its two lines, serving territory between Maiden Rock and Grange Hall, with the Grange Hall switchboard, maintain ing its present connections with the Maiden Rock switchboard, and that when such connections are made it shall pay for service at Grange Hall and at Maiden Rock, $3.75 per year, per telephone, to the company operating each exchange, for each of the telephones on lines so connected, and It is further ordered, That the lawful rate of the Grange Hall Telephone Company and of the Lake Pepin Telephone Company (Maiden Rock exchange) for switching service on lines connected both at Maiden Rock and at Grange Hall, shall be, and is hereby, established at $3.75 net, per telephone, per year. The rate hereby fixed for each of the companies shall be subject to collection rules now in effect. It is further ordered, That unless the Range Line company shall elect to take service as provided for in this order, it shall not be permitted to connect its lines to the switchboard at Grange Hall except upon further order of the Commission in a proper proceeding, and in case either or both of its lines shall be so connected at the time this order is issued and the Range Line company shall not elect to pay the rates herein established, such line or lines shall he disconnected from the Grange Hall switchboard not later than December 31, 1923. Dated at Madison, Wisconsin, this eighteenth day of December, 1923. [Wis L. 145] In re APPLICATION OF THE WISCONSIN TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES AT NEW LONDON AND MAYVILLE. U-2939, U-2940. Decided December 18, 1923. To Measure Cost of Exchange by Average Cost of Other Exchanges able Increased Rates as Applied for Authorized Al- OPINION AND DECISION. The petitions of the Wisconsin Telephone Company seeking authority to increase rates at its New London. and Mayville exchanges were filed with the Commission October 6, 1923. Hearings were held at Madison, Wisconsin, November 6, 1923, when J. F. Krizek and F. M. McEniry appeared for the applicant. There were no appearances in opposition. The lawful rates per month at present in effect at the Mayville and New London exchanges are for magneto service and are as follows: 2.00 25 Rural, within 6 miles of central office (wall set)...... 2 25 fraction thereof ... Roadway service (switched lines), per station.. 6212 The company's standard rates for private branch exchanges, schools, newspapers, charitable institutions, joint users, private lines, employees, as well as its charges for excess mileage, and miscellaneous equipment and service, are also effective at the two exchanges whose rates are under consideration. A demand has been made on the applicant to install common battery service at the New London and Mayville exchanges. The applicant requests that permission be given to charge the following rates when this type of equipment is ready for service: No changes in rates are requested for miscellaneous service, nor in the charges now being made to the rural and roadway subscribers. The latter two classes of service will continue to be served by magneto equipment. The applicant serves more than 2,200 subscribers at its New London and Mayville exchanges. The following shows the classification of subscribers as to exchange and class of service: CLASSIFICATION OF SUBSCRIBERS-NEW LONDON & MAYVILLE EXCHANGES. WISCONSIN TELEPHONE COMPANY. [Wis C. L. 145] The book value of the Mayville exchange on December 31, 1922, was $76,959.73. During the year the investment. had been increased by $23,450.54, of which $21,300 or thereabouts, was spent for underground and aerial cable, prerequisites to common battery service. An additional expenditure of about $21,000 in switchboard and its appurtenances will be necessary before this type of service can be offered. The investment in the New London exchange at the end of 1922 was $39,689.16. This sum, however, represents only the investment in the old magneto plant, and, before common battery service can be rendered, investments similar to those shown for the Mayville exchange must be made. At the date of the hearing, something over $13,000 had been expended at New London on the outside plant preparatory to establishing the common battery service. The applicant's estimates of investments in these two plants when complete for common battery service are Mayville New London $97,000 91,000 These estimates are in excess of the average book values of similar sized exchanges. It would not be reasonable, however, to measure the costs of these two exchanges by the average costs of other similar exchanges when the latter were built during a period of much lower price levels. The only exchange of similar size constructed during the period of the present increased costs is that at Waupun. In that exchange the costs of plant were in excess of $100 per telephone. We do not believe, therefore, that the applicant's estimates for Mayville and New London, which average less than $100 per telephone are much out of the way. Reasonable returns upon these investments and adequate depreciation allowances upon the properties which they represent will apparently necessitate annual charges about as follows: Mayville exchange New London exchange $13,095 00 12.290 94 |