C. L. 146 result of such a change, however, would be the discontinuance of service by those subscribers that are now on the line and a decided curtailment in the usefulness of the telephone service. In fact, the present rate places the service where it is not available to some. The alternate method, the adoption of which has been asked by applicant, contemplates the opening of several exchanges and connecting subscribers with these exchanges. Under this arrangement the subscriber is entitled to unlimited switching to other subscribers connected to the same exchange and is required to pay a toll for each connection to toll stations or subscribers in other exchanges. This has the tendency of placing the burden on the heaviest users and at the same time making it possible for the small user to have the service available, if needed, by the payment of a comparatively low flat monthly rate, thus greatly increasing the usefulness of the service in the several communities. It appears that the greater portion of the public would be better served under this arrangement, and I recommend that the application be granted.

The telephone rates, as contained in the order following, assume that the exchanges will be agency operated and that applicant will make every reasonable effort to render the best possible service.

Applicant has asked that the subscribers on the line between Pinehurst and Cedarbrook be allowed a toll rate from Dunlap rather than Pinehurst on account of ownership of the line between Dunlap and Pinehurst by these subscribers. If this were done a preferential rate would be established, which I do not believe should be permitted. Applicant may pay the owners of this portion of the line such compensation as may be proper, but all subscribers should be charged similar rates for similar service without discrimination.

Applicant has also asked, in its proposed rates, that farmer line subscribers own and maintain their lines to the central offices of the proposed exchanges. Inasmuch

as it is assumed that it is the intention of applicant not to permit farmer line stations within its primary rate areas, it would be a matter of good practical policy for applicant to own and control all facilities within its primary rate areas for providing service to farmer lines. I recommend, therefore, that applicant be required to provide facilities for rendering farmer line service from its switchboard to the primary rate area boundaries.

I submit the following form of order.

ORDER.

Reedley Telephone Company, having applied to the Railroad Commission for permission to change its ReedleyPinehurst line from a combination suburban and toll line to a toll line, and for an order declaring that public convenience and necessity require the establishment of exchanges at Squaw Valley, Dunlap and Pinehurst, a public hearing having been held, the matter submitted and being now ready for decision,

The Railroad Commission hereby finds as a fact that applicant's Reedley-Pinehurst line should be changed from a suburban and toll line to a toll line; that public convenience and necessity require the establishment of exchanges at Squaw Valley, Dunlap and Pinehurst, and that the rates and charges as set forth in Exhibit A attached hereto are just and reasonable rates to be charged and collected by Reedley Telephone Company for exchange, toll and telegraph service.

Basing its order on the foregoing findings of fact and on other findings of fact contained in the opinion which precedes this order,

The Railroad Commission of the State of California hereby declares that public convenience and necessity require Reedley Telephone Company to establish telephone exchanges at Squaw Valley, Dunlap and Pinehurst, and

It is hereby ordered, That Reedley Telephone Company shall:

[Cal.

C. L. 146]

1. Establish telephone exchanges at Squaw Valley, Dunlap and Pinehurst on or before October 31, 1923.

2. Operate the so-called Reedley-Pinehurst line on and after November 1, 1923, solely as a toll line.

3. Discontinue suburban service now rendered from the so-called Reedley-Pinehurst line on October 31, 1923, at 12 o'clock midnight.

4. Establish a line running due east and west bisecting a straight line connecting Pinehurst and Miramonte, as the southerly boundary of the Pinehurst exchange.

5. Charge and collect the rates and charges for exchange, toll and telegraph service rendered on and after November 1, 1923, as set forth in Exhibit A, attached hereto.

6. File with the Railroad Commission on or before October 1, 1923, the rates and charges as set forth in Exhibit A, attached hereto.

7. File with the Railroad Commission on or before October 1, 1923, rates, rules and regulations governing exchange, toll and telegraph service.

8. Provide facilities from its central office to the boundary of the primary rate area at each of the exchanges, Squaw Valley, Dunlap and Pinehurst, for each farmer line circuit built to that point whose owners desire service.

9. Notify, in writing, not later than September 24, 1923, each and every subscriber at present served by the Reedley-Pinehurst line, that a change in service is to be made on October 31, 1923, and include with such notice a schedule. of exchange rates for various classes of service rendered on and after November 1, 1923.

The foregoing opinion and order are hereby approved and ordered filed as the opinion and order of the Railroad Commission of the State of California

Dated at San Francisco, California, this nineteenth day of September, 1923.

Applicable to individual and party line, flat rate service within the primary rate areas of Squaw Valley, Dunlap and Pinehurst exchanges. The primary rate area of each of these exchanges includes all territory within a one-quarter mile radius from company's central office.

Grabaphone equipment 50 cents per month additional to rate for wall

Applicable to general service outside the primary rate area of Squaw Valley, Dunlap and Pinehurst exchanges.

Rate:

Individual line, business and residence service....
Two-party line, business and residence service....
Conditions:

Monthly Rate Per

Quarter Mile or Fraction Thereof (Air Line Distance)

$0 50 per station

35 per station

The charge for service under rate above is in addition to the regular flat rate charges given under Schedule No. A-1.

EXCHANGE SERVICE - SCHEDULE No. A-6.

Farmer Line Service:

Applicable to farmer line service outside the primary rate area.

Rate:

Rate per year, per station..

Business Residence

$6.00

$3.00

[Cal.

C. L. 146]

Minimum Charge:

The minimum charge is $15.00 per year, per circuit.

Conditions:

(1) The company installs, owns and maintains the necessary central office equipment and service, line facilities to the boundary of the primary rate area, one listing in the directory and a code ring card.

(2) The subscriber installs, owns and maintains at his expense the necessary facilities from the company line at the boundary of the primary rate area to the subscriber's instrument.

(3) The subscriber installs, owns and maintains at his expense his telephone instrument and battery.

General Service:

TOLL SERVICE - SCHEDULE No. B-1.

Applicable to station-to-station, person-to-person and appointment and messenger toll service charges between any two toll stations or exchanges.

Rate:

(1) Station-to-station day service.

(a) The following initial period rates applicable to station-to-station toll messages where the distance between the exchanges or toll points does not exceed 40 miles by direct air line measurement.