L. 148] Public Laws of 1919. In a former case presented by the same petitioner, namely, In the Matter of the Application of the New England Telephone and Telegraph Company for Order Authorizing Mortgage of Property Necessary or Useful in the Performance of its Duties to the Public, and for Order Authorizing the Issue of Bonds, U. No. 611,* P.U.R. 1923-A, 795-804, decided May 29, 1922, my reasons for dissenting were set forth in full, obviating the necessity of repeating them at this time. While deferring to the conclusions of my learned associates upon this Commission, I am nevertheless unable to believe that Section 37 of Chapter 55, as amended, is applicable in the present instance. I am, therefore, obliged to dissent from such conclusions and to express again my belief that we have no jurisdiction. March 11, 1924. * See Commission Leaflet No. 129, p. 573. MICHIGAN. Public Utilities Commission. In re APPLICATION OF THE MICHIGAN BELL TELEPHONE COMPANY FOR AUTHORITY TO INCREASE CAPITAL STOCK AND TO ISSUE AND SELL THE SAME. Application having been made March 15, 1924, by the Michigan Bell Telephone Company representing that it is a corporation organized under the laws of the State of Michigan; that it operates a public utility throughout this State, and that its principal office is at Detroit, Michigan; that it desires to increase its capital stock from $25,000,000 to $35,000,000 and to issue and sell $10,000,000, par value, of common capital stock to the stockholders thereof to retire an equal amount of demand notes of said applicant; that it now has outstanding, $26,710,465, par value, of demand notes; and the same having been brought on to be heard, and it appearing to this Commission that the money to be derived from the sale of said capital securities is reasonably required for and necessary to the proper capital purposes of said corporation; And it further appearing that said applicant has paid into the treasury of the State of Michigan, $10,000, being the fee required by law for the issuance of said capital securities, Now, therefore, it is hereby ordered by the Michigan Public Utilities Commission: (1) That said Michigan Bell Telephone Company be, and it is hereby, authorized and empowered to increase L. 148] its capital stock from $25,000,000 to $35,000,000, all of said capital stock to be represented by common stock, and to file an amendment to its articles of association in the office of the Secretary of State of the State of Michigan, and with the county clerk of the proper county providing for such increase in the capital stock of said corporation from $25,000,000 to $35,000,000. (2) That said Michigan Bell Telephone Company be, and it is hereby, authorized and empowered to issue and to sell for cash, at not less than par, $10,000,000 of the common capital stock of said corporation, and to use the proceeds to be derived from the sale thereof, for the retiral of an equal amount of demand notes of said corporation. (3). Applicant shall on July 1, 1924, and at the expiration of each six-months' period thereafter, make and file with this Commission, a statement verified under the oath of some responsible corporate officer having knowledge of the facts, showing the amount of said capital stock sold and the application of the proceeds thereof until the whole amount of said common capital stock hereby authorized to be issued and sold, shall have been so issued and sold, and the proceeds derived from the sale thereof applied to the proper capital purposes of said corporation. (4) Before the issuance and sale of any of the securities authorized by this order, a certified copy of the same shall be entered at length upon the corporate records of said applicant. March 21, 1924. MINNESOTA. Railroad and Warehouse Commission. In re APPLICATION OF THE CANTON TELEPHONE COMPANY FOR AUTHORITY TO CHANGE ITS SCHEDULE OF RATES. M-1314. Decided February 7, 1924. Increase in Rates as Requested Authorized - Practice of Furnishing Service to Rural Companies at a Message Rate Found Discriminatory and Abolished. ORDER. Pursuant to notice, hearing in the above matter was held at Canton, Minnesota, January 9, 1924, H. Wickett, president, and E. B. Babcock, secretary, appeared for the telephone company. A large number of shareholders and subscribers were present. The Canton Telephone Company is a corporation, organized April 1, 1922. This company assumed control of the telephone exchange immediately following a severe sleet storm, which completely wrecked the outside plant. The plant was entirely rebuilt during 1922, but, due to the absence of proper bookkeeping, all additions to plant were charged to repairs. These expenditures have now been properly allocated to the proper accounts. The present rates of the company are as follows: Where the telephone is owned by the business subscriber, the rate is $1.00 per month, and where the residence telephone is owned by the subscriber, the rate is 50 cents per month. The petitioner seeks authority to establish and place in effect the following schedule of rates: About one-half of the rural connecting stations receive service with Canton on a basis of 25 cents per month. The remaining stations are charged a message rate of 25 cents per message. The stations that receive service on a message basis are generally connected to another exchange where they pay a flat monthly or annual rate. Many of these stations are located on rural lines where a portion of the subscribers pay a flat rate for their service. This arrangement is impracticable from an operating standpoint. All stations directly connected to an exchange should receive service on a flat rate basis. The charge of 25 cents per message for connection from rural lines to Canton subscribers is unreasonable and discriminatory, as toll service to Canton from adjoining towns can be obtained at a lesser cost. Upon review of all the facts and an examination of the books and records of the company, the Commission finds that the present schedule of rates is unfair and unreasonable and that the petitioned rates are fair and reasonable and will not yield more than sufficient revenue to provide for the necessary operating expense, depreciation and a fair return upon a fair value of the property. It is, therefore, ordered, That the Canton Telephone Company be, and the same is hereby, permitted to establish and place in effect, as of March 1, 1924, the following schedule of rates at Canton, Minnesota : Individual line, business. Individual line, residence.. Per Month, Net 35 It is further ordered, That the Canton Telephone Company discontinue the practice of furnishing service to rural connecting company stations at a message rate of 25 cents, |