C. L. 146] CERTIFICATE. A hearing and investigation of the matters and things involved in this proceeding having been had, and said Division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which said report is hereby referred to and made a part hereof, It is hereby certified, That the acquisition by the Northwestern Bell Telephone Company of certain properties of the Adel Mutual Telephone Company, and the acquisition by the latter company of certain properties of the Northwestern Bell Telephone Company, as described in the application and report aforesaid, will be of advantage to the persons to whom service is to be rendered and in the public interest. January 15, 1924. ALABAMA. Public Service Commission. In re PETITION OF GREENVILLE TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES. Docket No. 4380. Decided January 23, 1924. Increase in Rates Authorized. OPINION. The Greenville Telephone Company has filed with the Commission for its approval a revised schedule providing for increase in rates for telephone service. At a hearing held in the office of the Commission on June 11, 1923, in accordance with the statutes in such cases made and provided, Messrs. Powell and Hamilton appeared for the petitioner and Mr. O. A. Lane, city attorney, appeared for the protestants. The Commission instructed its engineer to make an investigation as to the value of the exchange property, its expenses and income, and as there were some service complaints, a special investigation was to be made as to the service. The following tabulation shows the present rates and the proposed rates and for comparative purposes the Southern Bell Telephone and Telegraph Company's rates for similar exchanges are also shown: C. L. 146] The above are net rates applicable if bill is paid within ten days. The present gross rates are 10 per cent. more and the proposed gross rates are 25 cents more than the above rates. No discount allowed by the Southern Bell Telephone and Telegraph Company. The above proposed rates to apply only when the subscriber is within a radius of one mile from the central office and within the established routes. Whenever a subscriber is one-fourth mile or a fraction thereof beyond said zone, there is proposed to be added 60 cents per month for a business telephone and 30 cents per month for a residence telephone. The engineer's report shows that the amount carried on the petitioner's books on October 1, 1923, as investment in plant equipment, material and supplies, is $21,812.56 and recommends that this amount be accepted as a basis for rate calculation in the present case. This value is not recommended by the engineer as a permanent basic valuation of these properties for future rate-making purposes, and is not so taken by the Commission, but is considered by the Commission as an approximate estimate of such value, and is accepted by the Commission for the purposes of the present case only and not as a permanent basic valuation for future rate-making purposes. The engineer's report also shows a budget for the next twelve months' operating expenses as follows: Repairs, wire plant and equipment... Station removal and changes... Depreciation of plant and equipment.. Operators' wages Other traffic expense. Other general expense.. TOTAL EXPENSES $2,380 00 100 00 1,313 00 24 00 2,893 00 300 00 3,420 00 900 00 575 00 $11,624 00 1,737 00 Return on investment... ΤΟΤΑΙ INCOME REQUIPED. $13,361 00 The schedule of rates proposed with the present number of subscribers will yield somewhat in excess of the amount required to pay operating expenses and a reasonable return on the investment, and the Commission, therefore, prescribed the following schedule of rates: The Commission's inspector made a special investigation of the service at Greenville on the nights of December 3-4, 1923, without the petitioner's knowledge. Another investigation was made later and the service condition of the property was thoroughly inspected. The reports before the Commission indicate that the service is at present satisfactory and that the plant is capable of rendering satisfactory service. The Commission grants an increase in rates at this time with the provision that the present good service shall be continued and improved and that the property shall be reasonably maintained. The Commission, therefore, finds from all the evidence that the existing rates and charges of the said Greenville Telephone Company are unreasonable and inadequate to the extent that such rates and charges are less than those herein prescribed, which we find are just and reasonable rates. [Ala C. L. 146] It is, therefore, ordered by the Commission, That on and after February 1, 1924, the Greenville Telephone Company shall charge for service the following rates: The above discount to apply only when bills are paid on or before the tenth of the month. Rates for service connections, moving, changing and wiring for telephones, and other charges of the company now in force to remain the same as present rates. No additional rates will be allowed for subscribers beyond the one mile limit. The opinion of the Commission hereinabove set out is made a part of this order. It is further ordered by the Commission, That the company shall mail to the Commission during the month of April, 1924, and every three months thereafter, a detailed quarterly operating statement. The Commission retains full jurisdiction in this case. Done at Montgomery, this twenty-third day of January, 1924. |