appraisal was made by L. V. Estes and Company, and included the property under consideration here. The engineering department of the Commission prepared an inventory and an original cost appraisal of this same property as of the same date. The cost of reproduction new, less depreciation, as of March 1, 1921, of the property involved herein as shown by the Estes company's appraisal, is $9,620. The original cost of this same property as shown by the appraisal submitted by the engineering department of the Commission, is slightly higher than this figure. Deducting 5.45 per cent. per annum from March 1, 1921, to October 1, 1923, would make the purchase price of this property as of October 1, 1923, $8,266. After careful consideration of the record, the Commission is of the opinion, and finds: 1. That The Illinois Telephone Company and Home Telephone Company of Bluffs, Illinois, are public utilities within the meaning of Section 10, Article 1, of the Illinois Commerce Commission Law. 2. That the purchase by the Home Telephone Company of Bluffs, Illinois, and the sale by The Illinois Telephone Company of the latter's local exchange property in the city of Bluffs, Illinois, together with certain toll lines hereinbefore described, will result in the combining of the telephone properties now operating in Bluffs, and in an improvement in the telephone service furnished. 3. That this petition should reasonably be granted and that the public will be convenienced thereby. It is, therefore, ordered by the Illinois Commerce Commission as follows: Section 1. That the consent and approval and authorization of the Illinois Commerce Commission be, and the same is hereby, given to the purchase by the Home Telephone Company of Bluffs, Illinois, and the sale by The Illinois Telephone Company of a certain portion of the latters property described as . L. 144] the Bluffs exchange property; the toll pole line running north to Meredosia by way of Sycamore Grove, with fixtures and one No. 12 iron circuit; and the toll pole line running from Bluffs to Meredosia by way of Naples (recently purchased from the Illinois Bell Telephone Company), together with fixtures and one No. 12 iron circuit, with pay station at Naples and the booth and telephone in Meredosia." Section 2. That The Illinois Telephone Company shall deliver the property described in the application to the Home Telephone Company of Bluffs, Illinois, for the consideration agreed upon by and between the parties. herein, free of all encumbrances. Section 3. That the complete transfer of the property, as approved herein, shall be effected within sixty days from the date of this order, and that the purchaser, Home Telephone Company of Bluffs, Illinois, shall make a verified report of same to this Commission. Section 4. That the Commission is not at this time finally passing upon the value of the property involved in this proceeding, nor does the Commission by permitting the transfer of this property for the consideration named, in any way bind itself in regard to the value of the property transferred in case the same is involved in any future proceedings before the Commission. By order of the Illinois Commerce Commission, at Springfield, Illinois, this third day of October, 1923. In re PROPOSED ADVANCE IN RATES OF THE ELMWOOD TELE- On January 30, 1923, the Elmwood Telephone Exchange filed with the Commission Rate Schedule Ill. C. C. 2, in which it is proposed that rates for telephone service in Elmwood, county of Peoria, and vicinity, be advanced and in which it is further proposed that such advanced rates. become effective on April 1, 1923. It having appeared from an investigation of the said schedule that a hearing should be held concerning the reasonableness of the rates, the same were suspended until July 27, 1923, and subsequently resuspended pending a complete investigation. All interested parties having been notified, the matter came on for hearing before the Commission on April 19, 1923, and on September 6, 1923. The Elmwood Telephone Exchange and certain objectors to the proposed advance in rates were represented by counsel. In the schedule of rates filed with the Commission on June 30, 1923, the only change in the rates shown in the schedule was the elimination of free service between Yates City and Elmwood and Brimfield and Elmwood, and the application of the 10-cent toll charge in lieu of the free service now furnished. Considerable objection was raised to the application of the toll rate between the aforesaid cities, and on September 6, 1923, the Elmwood Telephone Exchange asked leave to withdraw sheets 1 and 2 of Ill. C. C. 2, as filed January 30, 1923, and to substitute in lieu thereof revised sheets 1 and 2 of Ill. C. C. 2. The revised schedule of rates, it appears from the evidence of record, was agreed upon by and between the Elmwood Telephone Exchange and the objectors in this cause and by agreement between the company and objectors, the Elmwood Telephone Exchange was to withdraw its application for an increase in toll rates and to substitute therefor an increase in local rates which would be sufficient to pay a fair return upon the investment of the company. The objectors, in turn, agreed to the revised schedule of rates for local telephone service. The present schedule of rates and those proposed in Rate Schedule I. P. U. C. 2, as revised, are as follows: At the hearings held in this matter, evidence pertinent to the issue herein was received and the file in Case No. 8977* wherein the Commission on July 22, 1919, entered an order establishing rates for telephone service in Elmwood, and vicinity, was made a part of the record in this case. * In the order entered by the Commission in Docket Case No. 8977, the Commission found the fair value of the property of the Elmwood Telephone Exchange to be at least $18,400. A report submitted by the accounting section of the Commission shows that net additions from May 1, 1919, to July 1, 1923, amounted to $3,952. It appears, therefore, that the fair value of the property of the Elmwood Telephone Exchange as of July 1, 1923, is at least $22,340. In the order entered by the Commission in Docket Case No. 8977* the Elmwood Telephone Exchange was ordered to set aside as a reserve for accruing depreciation $1,356 per annum, plus 6 per cent. of all additions that may be made to the plant of the Elmwood Telephone Exchange in the future. It therefore appears that on the basis of this order, the Elmwood Telephone Exchange should set aside annually for depreciation reserve on the property as it existed on July 1, 1923, the amount of $1,583 per annum. The present annual operating revenue of the Elmwood Telephone Exchange as shown by the reports submitted See Commission Leaflet No. 94, p. 1172. by the accounting staff of the Commission, including toll and miscellaneous revenue, was $8,791. The operating expenses for the same period, including taxes and $1,583 for depreciation of plant and equipment, are $8,832, thus resulting in a deficit of $41.00. The application of the proposed rates would increase the revenue of the Elmwood Telephone Exchange by approximately $950, thereby resulting in a net annual income of $909, which is 5.9 per cent. on $22,350. The Commission after having carefully considered all of the evidence of record herein, is of the opinion, and finds, that the proposed rates for telephone service at Elmwood, and vicinity, as shown in Rate Schedule Ill. C. C. 2, of the Elmwood Telephone Exchange, as amended, on September 6, 1923, are not excessive upon any fair value that might be placed on the property of the Elmwood Telephone Exchange and should be approved. It is, therefore, ordered by the Illinois Commerce Commission as follows: Section 1. That the Elmwood Telephone Exchange, be, and the same is hereby, permitted and authorized to place in effect the schedule of rates on file with the Commission, designated as Ill. C. C. 2, covering telephone service in the city of Elmwood, county of Peoria, and vicinity, effective October 1, 1923, provided written notice of the effective date of the said schedule of rates is filed with the Commission not later than ten days from the date of service of this order, or effective at any subsequent date, provided written notice of the effective date of the said schedule of rates is filed with the Commission not less than ten days prior thereto; and when notice of the effective date of the said schedule has been filed with the Commission as specified herein, and the said schedule of rates is posted or filed in the office of the public utility, all as required by the Illinois Commerce Commission Act, and General Order No. 28,* as amended, adopted by the Com * See Commission Leaflet No. 104, p. 962. |