NEW YORK.

Public Service Commission.

In re PETITION OF NORTHERN NEW YORK TELEPHONE CORPORATION FOR AUTHORITY TO ISSUE PREFERRED CAPITAL STOCK.

Case No. 1251.

Decided March 12, 1924.

Issue of Stock Authorized.

ORDER.

Now, therefore, upon the foregoing record,*
It is ordered as follows:

1. That the Northern New York Telephone Corporation is hereby authorized to issue $100,000, par value, of its 62 per cent. cumulative preferred capital stock which may be sold at a price not less than the par value thereof to realize net proceeds of at least $100,000.

2. That the proceeds of said stock so authorized which shall not be less than $100,000 shall be used solely and exclusively toward the reimbursement of the treasury of the company for moneys spent from income for proper capital purposes, totaling at December 31, 1922, $352,967.05, less amount of $200,000, or $152,967.05, previously authorized by order† of the Commission, dated May 10, 1923, in this proceeding, leaving an amount unprovided for of $52,967.05.

3. That the Northern New York Telephone Corporation shall for each six-months' period, ending June 30 and December 31, file not more than thirty days from the end of such period a verified report which shall show:

(a) What stock has been sold during such period. (b) The dates of such sales.

⚫ Omitted.

See Commission Leaflet No. 139, p. 99.

(c) To whom such stock was sold.

(d) What proceeds were realized from such sales. (e) Any other terms and conditions of such sales.

(f) The amount of stock proceeds used therefor during such period.

Such reports shall continue to be filed until all of said stock shall have been sold and the proceeds expended in accordance with the authority contained herein, and if during any period no stock was sold or proceeds expended, the report shall set forth such fact.

4. That this proceeding is hereby continued upon the records of the Commission until the examination which is being made of the books, accounts and property of the petitioner herein shall have been concluded and the corrections, if any, which by reason of such examination this Commission shall determine to be proper and necessary, have been made, accepted by the Corporation and entered in its accounts to the satisfaction of the Commission.

5. That the authority contained in this order to issue stock is upon the express condition that the petitioner accepts and agrees to comply in good faith with the provisions hereof and before any stock is issued pursuant hereto and within thirty days of the service hereof the company shall advise the Commission whether or not it accepts the same with all its terms and conditions, and such order shall be of no force or effect until such acceptance has been filed.

Finally, it is determined and stated, That in the opinion of the Commission the money to be procured by the issue of said stock herein authorized is reasonably required for the purpose specified in this order and that such purpose is not in whole or in part reasonably chargeable to operating expenses or to income.

March 12. 1924.

[N. Y

NORTH DAKOTA.

Board of Railroad Commissioners.

In re APPLICATION OF THE GREAVES TELEPHONE COMPANY TO REDUCE TELEPHONE RATES AND TO REZONE ITS TELEPHONE SYSTEM.

Case No. 2007.

Decided March 6, 1924.

Jurisdiction in Matter of Rezoning Considered — Application to Reduce Rates Contingent upon Rezoning Denied Without Prejudice.

OPINION AND ORDER.

This matter is before the Commission on an application by the Greaves Telephone Company, of Kenmare, North Dakota, executed by its president and secretary, for authority to reduce and equalize its rates for telephone service and for a rezoning of its telephone system.

This application was filed with this Commission on the eleventh day of December, 1923. Numerous protests directed particularly to the rezoning feature of the application were also received by the Commission, and on the third day of January, 1924, the Commission issued its notice setting the matter for hearing at Kenmare, North Dakota, on Tuesday, January 22, 1924, at 10:00 o'clock A. M., inviting all interested parties to attend and present evidence pertinent to the issues involved.

Hearing was held in the court house in said city at the appointed time and the following appearances were entered: C. H. Wright, secretary, and Evan Griffith, manager, on behalf of the Greaves Telephone Company; Fred Tunnell, Sr., president, James W. Anderson, secretary, and Fred Warner, manager, on behalf of Lewis Mutual Telephone Company, of Norma, North Dakota; Ben E. Boulter, attorney, of Minot, North Dakota, and A. W. Flinn, secretary-treasurer, on behalf of Donnybrook

[N. D

Aurelia Telephone Company, of Donnybrook, North Dakota; Lewis P. Jenson, of Kenmare, North Dakota, and L. C. Butt, of Tolley, North Dakota, appearing as individual subscribers of the Greaves Telephone Company and in opposition to the application.

The application filed by the company in this matter, omitting the title and signatures, is as follows:

"Now come the officers of the Greaves Telephone Company, and respectfully petition and represent and show to the Board of Railroad Commissioners of the State of North Dakota:

(1) That the Greaves Telephone Company is a corporation authorized and existing under and by virtue of the laws of the State of North Dakota, the date of said organization being September 2, 1907, and that the main office of said company is at Kenmare, North Dakota.

(2) That the undersigned F. F. Carter, is the president of the Greaves Telephone Company, and C. H. Wright is the secretary of the Greaves Telephone Company, and that they make and sign this petition by authority of the board of directors of the Greaves Telephone Company, given them at a regular meeting of the board of directors held on the eighth day of December, 1923.

(3) That on the above date the Greaves Telephone Company was operating in Ward, Renville, Burke and Mountrail Counties.

(4) That it had 110 village and town subscribers and 369 rural or farm line subscribers, making a total of 479 subscribers; it is serving an estimate population of 3,500.

(5) That it had 445 miles of pole line and 600 miles of wire.

(6) That it served the following villages and towns and did so by means of exchange system or wall switchboard: Tolley, Greene, Grano, Niobe, Coulee, Coteau, and Northgate.

(7) That the income and expense statement for the first nine months of the year 1923 is as follows:

195 Surplus-balance at beginning of fiscal year..

*2,054 99

$88,805 67

NET INCOME FOR YEAR TO DATE.

*$2,930 45

The reason for the above financial statement showing so large a loss is accounted for in that the officers employed a collector in the person of F. L. Wetch for the purpose of making investigations, settlement of disputes relative to rates and making adjustments of past due rentals due to the Greaves Telephone Company; that said expense amounted to about $2,400.

(8) That the income for the year 1922 was $15,611.39.

(9) That the income for the first nine months of the year 1923 is $9,782.59.

(10) That no return in the shape of dividends or otherwise was made to the holders of the common stock for the years 1922 and 1923, and it will be impossible under the present rates for any dividends or return of any other nature to be made for the stockholders for the year 1923.

(11) In view of the failure to earn a return to the stockholders, the directors believe that it will be to the best interests of the stockholders to ask your Honorable Body permission to reduce the rates and equalize

the same.

(12) That many subscribers have had their instruments removed, believing the rates to be excessive and unsatisfactory although having paid the rentals in full and taken advantage of all discounts while the instrument was in place, and we believe that many of these patrons will return to the use of the telephone at a lower rate.

(13) That the board of directors, at a regular meeting, held on December 8, passed the following resolution:

'Resolved: That the president and secretary be authorized to make application to the Board of Railroad Commissioners of North Dakota, for authority to put into effect the following schedule of rates:

• Deficit.