KANSAS. Public Utilities Commission. In re APPLICATION OF THE NETAWAKA MUTUAL TELEPHONE COMPANY FOR PERMISSION TO INCREASE RATES. Docket No. 6143. Decided March 11, 1924. Increase in Rates Authorized. ORDER. Now on this twenty-fifth day of February, 1924, this cause comes on for hearing before the Commission at Netawaka, Kansas, Commissioner C. E. Rugh sitting; the company appears by S. C. Sorensen, its secretary, and James Warning, its vice president; and thereupon the testimony is submitted and the Commission, being duly advised in the premises, takes the same under advisement. And now on this eleventh day of March, 1924, this cause comes on for final review and order by the Commission, and the Commission after reviewing all of the evidence and after being fully advised in the premises, finds that the practice of the said applicant in charging its nonstockholders $1.00 per month for telephones and its stockholders 50 cents per month, is unjust and unduly discriminatory, and that the said charges do not produce revenues sufficient to pay the operating expenses of said plant and provide for the maintenance thereof. The Commission further finds that the following schedule of rates for service furnished by the Netawaka Mutual Telephone Company at Netawaka is just, fair and reasonable and should be approved: Business telephones Switching service Per Month $1.50 100 50 C. L. 148] Now, therefore, it is hereby considered and ordered by the Commission, That the said applicant be, and it is hereby, authorized to file with this Commission and put in force at its exchange at Netawaka, Kansas, from and after April 1, 1924, the following schedule of rates, to wit: Per Month Business telephones March 11, 1924. $1.50 100 50 MAINE. Public Utilities Commission. In re APPLICATION OF NEW ENGLAND TELEPHONE AND TELEGRAPH COMPANY FOR APPROVAL OF ISSUE OF SECURITIES. U. No. 736. Decided March 11, 1924. Issue of Securities Approved. OPINION AND ORDER. By petition dated February 6, 1924, the New England Telephone and Telegraph Company, a corporation organized under the laws of the State of New York, engaged in the transaction of a telephone and telegraph business in the States of Maine, New Hampshire, Vermont, Rhode Island and the Commonwealth of Massachusetts, requests approval by this Commission of the issuance of capital stock, under section 37 of Chapter 55 of the Revised Statutes, as amended by Chapter 128 of the Public Laws of 1919. The petitioner has disbursed for plant and equipment in Maine, from April 1, 1922, to December 31, 1923, the following amounts: April 1, 1922, to October 31, 1922.... $418,944 56 1,069,070 92 . $1,488,015 48 TOTAL Against this expenditure, bonds have been authorized by this Commission, in U. No. 611,* to the amount of $528,409, leaving net expenditures amounting to $959,606.48. * See Commission Leaflet No. 129, p. 573. C. L. 148] In U. No. 611,* the petitioner requested, among other things, authorization for an issue of bonds in the sum of $528,409, to be used in part to reimburse its treasury for money expended from March 31, 1922, to and including April 30, 1922, and in part for future extensions and betterments then contemplated. This prayer was granted, and this Commission found that during the month of April, 1922, the company had already then disbursed, for subjects which properly might be capitalized, the sum of $46,473.36, in addition to which amount the Commission authorized the issue of bonds in the amount of $481,935.64, making the total of $528,409, to which we have made reference. This amount should be applied to the account of extensions, improvements and betterments within the period from April 1, 1922, to December 31, 1923. In the company's original petition to this Commission, dated January 28, 1924, it represents that it had expended during this period the sum of $43,421.88 in excess of the proceeds of the bond issue dated June 1, 1922, authorized in U. No. 611.* This amount is clearly the discount on the sale of bonds which the Commission prescribed should be amortized over the period of the duration of the bonds, agreeably to its rules of classification of accounts. We are satisfied from examination of the evidence submitted that these expenditures have been made as alleged, that the title to the property so secured is vested in the petitioner, and that proper votes have been passed to effectuate the corporation's purpose. In the instant case, the petitioner has financed its extensions and improvements by money borrowed upon demand notes, and these notes will be discharged from the proceeds of the stock. From our investigation of the matter, It is ordered, adjudged and decreed, 1. That prior to the issue of the capital stock herein authorized, this order of the Commission be recorded in full upon the books of the New England Telephone and Telegraph Company; ⚫ See Commission Leaflet No. 129, p. 573. 2. That the sum of the capital to be secured by the issue of the stock herein authorized is required in good faith for purposes enumerated in Section 37 of Chapter 55 of the Revised Statutes, as amended; 3. That the New England Telephone and Telegraph Company be authorized to issue and to sell, at par, 9,596 shares of its capital stock of the par value of $100 each, the proceeds of which stock are to be used for the purpose of discharging its indebtedness for extensions, improvements and betterments as set forth in its petition and made the basis of this order; 4. That in the event that any of the money herein authorized to be derived from the sale of the capital stock aforesaid be not required in its entirety for the purposes for which it is authorized, such money-or such stock, if said stock be not sold-is to be held in a segregated fund and reported to this Commission, and used for no purpose other than that herein authorized, in the absence of a modification of this order; 5. That said stock shall not be pledged or hypothecated by said petitioner without previous consent of this Commission in writing; 6. That the New England Telephone and Telegraph Company report to this Commission in detail, supported by the oath of one of its principal officers, its doings hereunder, within ninety days from the day of the date hereof. giving particulars concerning the indebtedness discharged. Given under the hand and seal of the Public Utilities Commission, at Augusta, this eleventh day of March, 1924. GURNEY, Chairman: DISSENTING OPINION. It will appear from the majority opinion that this petitioner is a corporation organized under the laws of the State of New York. It seeks approval of this Commission for the issuance of stock, under Section 37 of Chapter 55 of the Revised Statutes, as amended by Chapter 128 of the [M |