I In re PETITION OF THE PEOPLES COOPERATIVE TELEPHONE COMPANY OF CLARKS HILL FOR AUTHORITY TO ADJUST RATES. No. 7213. Decided November 2, 1923. Increase in Exchange and Toll Rates Authorized. OPINION AND ORDER. On June 26, 1923, the Peoples Cooperative Telephone Company of Clarks Hill, Indiana, filed with the Commission its petition, alleging that its principal place of business is at Clarks Hill, Indiana; that it is a public utility engaged in the management and operation of a public utility in the town of Clarks Hill, Indiana, and that as such public utility it is subject to the provisions of the laws of Indiana; that it has been and is now operating at a loss. Wherefore, petitioner asks the Commission to investigate and, after hearing and investigation, to make an order granting such rates as it may find to be equitable in the premises. Said petition was signed by the entire board of directors of said Peoples Cooperative Telephone Company of Clarks Hill, Indiana. After due notice, this cause was heard on October 3, 1923, at ten o'clock A. M. in the court house at Lafayette, Indiana. The books of the company, by its secretary, were placed in evidence. The evidence shows that on September 1, 1923, petitioner had 225 subscribers paying 50 cents per month with an assessment at the end of the year of 50 cents per month; that they now have 40 miles of wire; that the assessed valuation for taxes was $3,400; that the service was good, and the switchboard comparatively new; that the territory covered by this company is approximately 5 miles square, and is well covered and is surrounded by other exchanges, which precludes growth in the future; that they employ one operator and one lineman; that they also own a long distance line to Lafayette, C. L. 144] for which the rate on file gives them authority to collect 5 cents per message upon all outgoing messages; that the taxes payable the past year amounted to $83.98; that the company now has outstanding accounts in the amount of $400; that since the filing of the last schedule of rates and charges with the Commission, the contract for long distance service with Lafayette has been changed so that petitioner must pay an average charge for all outgoing calls of .078 cents, thereby causing a loss of .028 cents upon every outgoing message; that in the future much repair work will be needed upon the lines and the pole lines. upon all of the state highways will have to be reset, thereby causing much additional expense. The Commission, being fully informed, is of the opinion that the rates of petitioner are inadequate and that its rates should be revised, and it will be so ordered. It is, therefore, ordered by the Public Service Commission of Indiana, That the Peoples Cooperative Telephone Company be, and it is hereby, authorized and directed to charge and collect the following schedule of rates, tolls and charges, effective January 1, 1924: The net rates shall be charged on bills rendered monthly if paid on or before the fifteenth of the month in which service is rendered. The net rates shall be charged on bills rendered quarterly if paid on or before the fifteenth of the second month of the quarter in which service is rendered, otherwise the gross rates shall be charged. When the fifteenth falls on Sunday or any other legal holiday, the first business day thereafter shall be included in the discount period. It is further ordered, That the Peoples Cooperative Telephone Company be, and it is, authorized to make a toll charge of 10 cents on all calls to Lafayette, Indiana. It is further ordered, That on or before January 1, 1924, the Peoples Cooperative Telephone Company shall file with the tariff department of this Commission, and shall post and keep posted in its office in full view of the public during the entire period such schedule is in effect, a printed or typewritten copy of such schedule of rates, as required by Sections 41-47 of the Public Service Commission Act. November 2, 1923. In re PETITION OF THE BROOKVILLE TELEPHONE COMPANY No. 7318. Decided November 9, 1923. Issue of Stock Authorized Rates for Common Battery Service OPINION AND ORDER. On August 28, 1923, the Brookville Telephone Company filed with the Commission its petition, asking authority to increase its capital stock from $60,000 to $70,000, and for authority to issue $10,000 of 5 per cent. preferred stock, same to be redeemable at the option of the company at any dividend paying period after two years from date of issue, the above-mentioned preferred stock to consist of 200 shares with a par value of $50.00 per share, with interest at 6 per cent., payable semi-annually. Petitioner also asks permission to charge certain rates on new classes of service which it will be in position to render after new equipment is installed, such new rates to be optional with the subscriber. The petition sets out that the rates now charged and in effect are for magneto service and the rates asked to be installed, which rates are optional with the subscribers, are for common battery service for which a charge will be made of 50 cents above the magneto rate. After due notice, the matter was heard in the town of Brookville on November 6, 1923. The evidence shows that the switchboard now in serv [Ind. C. L. 144] ice is old and worn out, having been in service for over fifteen years, and the capacity is too small for the present needs of the petitioner; that there has been purchased and is now being installed a new Kellogg-Universal switchboard, at a cost of $9,000; that the balance of the proceeds of the sale of the securities will be used to remodel the exchange building; and any balance remaining will be applied on new construction; that the new switchboard is so arranged that when the new equipment is fully installed both the magneto service and common battery service can be used, and the company has submitted to its subscribers both services, leaving optional with the subscriber the class of service he desires; and that they have now a book value of $64,119 exclusive of the improvements now about to be made. The engineering department of the Commission made an appraisal of this plant as of June 1, 1921, showing a present value of $60,420. Since that time there has been added additions and betterments to the value of $4,000. The evidence further shows that as soon as possible the old switchboard will be sold and the money thus obtained will be put into new equipment. The Commission, being fully advised, is of the opinion that the Brookville Telephone Company should be granted authority to issue $10,000 of its 5 per cent. preferred stock, same to be redeemable at the option of the company at any dividend paying period after two years from the date of issue, same to be sold at par, bearing not more than 6 per cent. interest, payable semi-annually; the abovementioned preferred stock to consist of 200 shares of the par value of $50.00. The Commission is also of the opinion that the petition to charge higher rates on optional new classes of service should be granted. It is, therefore, ordered by the Public Service Commission of Indiana, That the Brookville Telephone Company be, and it is hereby, authorized to issue and sell at not less par, $10,000 of its 5 per cent. preferred stock, same to be redeemable at the option of the company at any divi than dend paying period after two years from date of issue, and to consist of 200 shares with a par value of $50.00 each, bearing interest at not more than 6 per cent., payable semiannually; the proceeds from the sale of said stock to be used to purchase and install a new Kellogg-Universal switchboard and to remodel its exchange building, any balance remaining to be applied on new construction. It is further ordered, That the Brookville Telephone Company, immediately upon completion of the betterments herein proposed, shall file with the Commission an itemized acount of the expenditures of said $10,000 received from the sale of said preferred stock. It is further ordered, That the Brookville Telephone Company be, and it is, authorized and directed to charge and collect the following schedule of rates, effective thirty days after filing with the Commission, and until further order of the Commission; said class of service to be optional with the subscriber: $4.25 $3 75 5.00 4 50 Party line, residence (rural) . . . . . It is further ordered, That before issuing or selling any of such securities, the Brookville Telephone Company shall pay to the Treasurer of State, through the secretary of this Commission, the sum of $15.00, the fee for the issuance of such securities prescribed in Section 95 of the Public Service Commission Act. November 9, 1923. [In |