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(C. L. 147)
SUSPENSION RATES. See Service Connection Charges: .

disconnection.

PAGE

SWITCHBOARDS:

installation of new switchboard, by specified time, ordered.

555-557

TAXES. See Operating Expenses: taxes.

TELEGRAMS.

See Rates : classes of service, for.

594-595

575-577

493

TOLL:
lines :

clear, removal of all subscribers from line connecting

two exchanges, subscribers to be served from local

lines, ordered (Wis.)..
discontinuance of portion of jointly owned, which

would result in inconvenience and delay in routing
toll messages, where company in good financial con-
dition, though somewhat less than full return

earned, denied (Wis.)....

(See also Sale of Property)
rates :

appointment and messenger calls, established for....
interexchange service, free:

continuation over period of years by reason of

encroachment upon territory adjacent to other
company's exchange, and geographical and
social conditions, considered in ordering

restoration (Wis.)
expense of should be absorbed by connecting

companies if not covered under switching con-
tract, upon failure of parties to agree, terms

to be fixed (Wis.).

restoration of clear line for, ordered (Wis.)....
interexchange service, toll:

established
flat rate discontinued and charge on air line basis,

authorized .....
minimum monthly guarantee, established...
overtime period and rate, established..
person-to-person calls, established for.
report charge, established.....
station-to-station calls, established for.

597-598

597-598
596-598

493, 497

488

497
493, 497
493, 497

493
493, 497

UNIT COSTS. See Valuation of Property: basis of: various

items.

(C. L. 147)
VALUATION OF PROPERTY:

PAGE
basis of, in general:

book value reasonably representing fair value, used as
rate base (Wis.).....

580–582
company's value found reasonable for testing pro-
posed rates (Ill.).....

502
present fair value, in determining, present day costs

cannot be wholly disregarded (case noted) (Mo.).. 530
basis of, various items:
going value, allowance made for (Ill.)...

507
materials and supplies, allowance made for..

531
overhead costs, allowance made for....

507, 531
unit costs, present day costs cannot be wholly disre-

garded in determining present fair value (Mo.).. 530
working capital, allowance made for.

507, 531
rate purposes, for, fixed.....

..506-507,527-533, 536
WORKING CAPITAL. See Securities : issue. Valuation of

Property: basis of, various items.
ZONES. See Rates: basis of.

xvii

Interstate Commerce Commission.

In re PURCHASE OF PROPERTIES BY ILLINOIS BELL TELEPHONE

COMPANY.

Finance Docket No. 3425.

Decided February 19, 1924.
Acquisition of Properties Approved.

REPORT.

The Illinois Bell Telephone Company, hereinafter called the Illinois company, and Alexis B. Thielens, as administrator of the estate of Hiram D. Wagner, deceased, on January 14, 1924, filed a joint application under Section 407 of the Transportation Act, as amended, for a certificate that the acquisition by the Illinois company of certain telephone properties formerly owned by Hiram D. Wagner, deceased, will be of advantage to the persons to whom service is to be rendered and in the public interest. The Illinois Commerce Commission has entered an order* authorizing the proposed acquisition. A hearing has been had and no objection to the granting of the application has been presented to us.

The telephone properties of the Wagner estate consist entirely of toll lines, which extend from a point 6 miles west of Peoria, in a westerly direction to a point 1 mile south of Farmington, with branches from the latter point to the city limits of Yates City and Canton, a total distance of 32 miles, all in the State of Illinois. All points served are reached by the lines of the Illinois company. The Wagner lines were formerly operated in connection with exchanges owned by the Interstate Independent Telephone and Telegraph Company. In 1919 the properties of the latter company were acquired by the Bell interests,

See infra, page 498.

[I. C. ( and it is stated that the Wagner lines now constitute an unnecessary duplication of the Bell toll lines.

The Illinois company proposes to purchase the Wagner properties for $7,175 in cash. No securities will be issued to effect the proposed acquisition. An appraisal made by the chief commercial agent of the Illinois company fixes the cost of reproduction new at $32,429.64 and, less depreciation, $7,175. It is stated that it will be more economical to dismantle the property than to rehabilitate it and maintain duplicate toll facilities between the points served. The estimated salvage value is $2,891. From October 1, 1922, to September 30, 1923, the total receipts of the Wagner lines were $1,397.69, and the total disbursements, $1,037.74. In 1922, the charges to depreciation were $800. If the same amount was charged for 1923, operations for the year would show a deficit of $440.05.

The proposed acquisition will not result in withdrawing toll service from any point. All points are, and will continue to be, served by the Illinois company. Certain independent companies have connections with the Wagner lines. This service will not be interrupted or interfered with. Patrons will receive a single toll service, performed by the Bell organization, without any change in rates and with the advantages that result from the elimination of duplication. The Illinois company is, and after the consummation of the proposed transaction will be, subject to the Interstate Commerce Act.

Upon the facts presented, we find that the acquisition by the Illinois Bell Telephone Company of the telephone properties formerly owned by Hiram D. Wagner, deceased, as described in the application, will be of advantage to the persons to whom service is to be rendered and in the public interest. A certificate to that effect will be issued.

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

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