SERVICE Continued: (C. L. 146) interchange of (See Service: installation) obligation to serve, company not obliged to furnish com- from one system to another (Mo.)..... quality of (See Rates: basis of: service) radius for (See Rates: basis of: zones) toll (See Toll) unsatisfactory (See Rates: basis of: service) value (See Rates: basis of: service) zones (See Rates: basis of: zones) See also Rules and Regulations. Sale of Property. SERVICE CONNECTION CHARGES: reconnection, for, authorized STATE-WIDE THEORY: rate purposes, for, approved (Tenn.)... STOCK. See Securities: stock. STOCKHOLDERS. See Dividends. SURPLUS: PAGE 356, 361 314 459-460 held in trust pending further order, to be, after payment See also Rates: reduction: judgment. TAXES. See Operating Expenses. TELEGRAPH SERVICE. See Rates: classes of service, for. TOLL: physical connection: long distance service, for, even though both com- rates: increase, former order corrected to allow increase above that formerly authorized... initial period and overtime period, approved. interexchange service, free: 394 355, 364 354-355 299 289-290 consolidation of two exchanges, following, ap- proved (Ind.) 316-317 .... franchise, required by, binding until contract 432-437 interexchange service, toll: elimination of, application of subscribers for, ing consolidation obviating necessity of, denied preferential rate because subscriber owned line, night rates, approved. person-to-person service, authorized for. report charge, approved...... station-to-station service, authorized for.. PAGE 325-326 335-337 285 290 290 290 289 service: combination suburban and toll line authorized discon- intrastate free, company held to be without author- ity to substitute interstate toll service for, in rout- non-subscribers use of subscribers station for, upon UNIT COSTS. See Valuation of Property: basis of, various VALUATION OF PROPERTY: 283-287 437 366 basis of, in general: book value: accepted for present rate calculation but not (Ala.) 277 considered 457 inventories: subject to change if found to be incomplete or 417-418 valuations, transcripts, exhibits and, to be filed 417 exchange and toll property, allocation of 75% to ...... exchange and 25% to toll, assigned (Tenn.) . . . .... overhead costs, 7% of present value allowed for (O.) 5% of present value for supplies, made (O.)... 458, 462 457 417 326, 457 417, 418 390 417 417 417, 418 326, 457 depreciation charge balance used for property additions to WORKING CAPITAL. See Securities: issue. Valuation of Property: basis of, various items. ZONES. See Rates: basis of. xxii INTERSTATE COMMERCE COMMISSION. In re ACQUISITION OF PROPERTIES BY THE NORTHWESTERN BELL TELEPHONE COMPANY AND ADEL MUTUAL TELEPHONE COMPANY. Finance Docket No. 3335. Decided January 15, 1924. Acquisition of Properties Approved. REPORT. The Northwestern Bell Telephone Company and the Adel Mutual Telephone Company, hereinafter referred to as the Northwestern company and the Adel company, respectively, on November 20, 1923, filed a joint application under Section 407 of the Transportation Act, as amended, for a certificate that the acquisition by the Northwestern company of certain properties of the Adel company, and the acquisition by the Adel company of certain properties of the Northwestern company, will be of advantage to the persons to whom service is to be rendered and in the public interest. A hearing has been had and no objection to the granting of the application has been presented to us. The Northwestern company is one of the Bell group. It owns and operates telephone properties in Iowa, Minnesota, Nebraska, and .elsewhere, including an exchange in the city of Adel, Iowa, from which it serves 316 subscriber stations within the city, 150 rural stations, and 11 service stations. The Adel company also owns a telephone exchange in the city of Adel, from which it serves 52 subscriber stations within the city, of which 32 are duplicated by the Northwestern company, and 95 rural stations. The parties have made a tentative agreement providing that the Adel company will transfer all of its tele [I. C. C. phone plant within the city of Adel to the Northwestern company, and in consideration therefor the latter will transfer to the Adel company certain outside telephone plant and equipment serving 11 rural subscribers in the territory tributary to Adel. An appraisal made under the direction of the chief engineer of the Northwestern company fixes the value of the property to be transferred to the Northwestern company at $1,818.60, and the value of the property to be transferred to the Adel company by the Northwestern company at $1,809. The value of the property to be retired from service is estimated at $950. In 1920 the total income and disbursements of the Adel company were $1,296.24, and $1,283.95, respectively. The competitive exchanges in Adel are not connected. Subscribers of the Adel company can not communicate with subscribers of the Northwestern company, and have no toll service. The unification of the properties will eliminate existing duplication. The Northwestern company will serve all subscribers within the city limits, and the Adel company will serve only rural subscribers, such service being given on a switching basis through the switchboard of the Northwestern company. Subscribers of each company will have access to the lines of the other company upon payment of the single rental charge of the company to the service of which they subscribe, and will have direct connection with the long distance lines of the Bell System. A number of communications from representative telephone users were introduced in evidence, all recommending that the proposed transaction be consummated. The Northwestern company is, and after the consolidation of the properties mentioned will be, subject to the Interstate Commerce Act. Upon the facts presented, we find that the proposed acquisition by the Northwestern company of certain properties of the Adel company, and the acquisition by the Adel company of certain properties of the Northwestern company, as described in the application, will be in the public interest. A certificate to that effect will be issued. |