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C. L. 146]

And the Union Telephone Company is hereby authorized and empowered to charge to and collect from its subscribers to be served at and through its exchange at St. Johns, Michigan, the following rates, rentals and charges, that is

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Manual type switchboard (non-mu tiple) and operator set:
First position ...

6 00

Each additional position.

5 00

Manual type switchboard (multiple), the rate shall be based

on the installed cost of the apparatus and associated
w.ring.

Trunk line, 50 cents per month more than the above one-
party business rate.

S.ations located not more than 660 feet from the branch

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Maximum capacity, 20 lines, all stations to be located on
same premises, subscriber to bear the cost of labor and
materials for cable in excess of 30 feet per station.
Trunk line:

Business, 50 cents per month more than above one-party
business rate.

Residence, 50 cents per month more than above one-party

residence rate.

Stations:

Business, each

Residence, each

Service station (switching) for roadway companies or
associations owning their own lines and telephones, per
station..

(M'nimum charge, $4.64 per line, per month.)

2.50

250

58

The basic area of rates above established at St. Johns for the Union Telephone Company shall be the present corporate limits of the city of St. Johns.

The rates now in force for both the Union Telephone Company and the Clinton Telephone Company shall remain in full force and effect until the sale, purchase and consolidation herein provided for shall be brought about, and when the same shall have been completed, this Commission shall be notified, and if it shall find upon investigation that such consolidation has been so made as to render reasonably adequate telephone service, it shall so certify and notify said telephone companies, respectively, whereupon the rates herein provided for shall, and not otherwise, go into full force and effect.

The rates, rentals and charges above, and as authorized, are based upon the rendition of reasonably adequate telephone service, and in case said telephone companies, or either of them, shall neglect, fail or refuse to render reasonably adequate telephone service, then, and in such case, this Commission reserves the right to reduce said rates, either with or without notice.

Each of said telephone companies shall, upon the receipt of a certified copy of this order, and upon the rates herein authorized going into effect, make and file with this Commission a schedule of all of the rates, rentals and charges, rules, regulations and conditions of practice, in force or to be in force by said telephone companies, respectively, and shall have a copy of the same on file and open to public inspection at the principal office and place of business of each of said telephone companies.

Dated at Lansing, Michigan, this twenty-sixth day of December, 1923.

[Mich

MINNESOTA.

Railroad and Warehouse Commission.

In re APPLICATION OF THE NORTHWESTERN BELL TELEPHONE COMPANY TO CHANGE AND INCREASE ITS RATES FCR TELEPHONE EXCHANGE SERVICE IN THE CITY OF WILL

MAR.

M-1285.

Decided January 18, 1921.

Increase in Rates as Applied for Authorized.

Hearing in the above matter was held in the court house, in the city of Willmar, November 1, 1923. E. A. Prendergast, general solicitor, appeared for the telephone company, and R. W. Stanford, city attorney, for the city of Willmar. No one appeared to protest the application.

The present rates for main station telephone service at Willmar are as follows:

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The petitioner seeks authority to establish and place in effect, the following schedule of rates and charges at Willmar, Minnesota:

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Private branch exchange rates and other miscellaneous charges

as set forth in petitioner's application.

A discount of 25 cents will be allowed from the monthly charge if paid on or before the fifteenth day of the month in which it is due.

The Northwestern Bell Telephone Company is a corporation, organized under the laws of the State of Iowa, and is engaged in the conduct of a general telephone business in the State of Minnesota and other states. It owns and operates a public telephone exchange system in the city of Willmar, Kandiyohi County, Minnesota, from which it is now serving approximately 1,227 town stations and performing rural switching service for 196 rural stations.

During the years 1920 and 1922 the telephone company placed considerable conduit in the streets and alleys at Willmar in advance of the city's paving program, so as to be prepared to place their cables underground.

Due to an ordinance passed by the city council, the company was obliged to remove their poles, cables and wires. from streets located in the business district.

In order to do this, it became necessary to place cables underground in the conduit already installed and otherwise rearrange the method of serving their patrons and subscribers. From 1919 to August 31, 1923, the records show that $61,717 had been expended for this work and it is estimated that an additional expenditure of approximately $5,827 will be necessary to complete the estimate, making a total gross expenditure of about $67,644. The exhibits submitted by the petitioner at the hearing show a reproduction cost new depreciated of the plant in service at the close of the work in progress to be $115,617, which includes working capital and going concern value of $11,323. The book value of the physical property, exclusive of working capital and going concern value, is approximately $96,919.49.

The Commission has taken into consideration the valuation of this property in connection with the valuation of all the properties of the Northwestern Bell Telephone Company in Minnesota, covered by the Commission's order* of January 20, 1922, and has carefully analyzed all exhibits submitted by the petitioner.

[Minn.

*See Commission Leaflet No. 123, p. 658.

C. L. 146]

Upon review of all the facts, the Commission finds that the present rates are unfair and unreasonable; that the petitioned rates are fair and reasonable, and will not yield more than sufficient revenue to provide for the necessary operating expenses, depreciation and a 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 February 1, 1924, the following schedule of rates and charges at Willmar, Minnesota :

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Private branch exchange rates and other miscellaneous charges,

as set forth in petitioner's application.

A discount of 25 cents per month is allowed on all gross rates if bill is paid on or before the fifteenth day of the month in which the service is rendered.

Dated at St. Paul, Minnesota, this eighteenth day of January, 1924.

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