OHIO. The Public Utilities Commission. In re JOINT PETITION OF THE OHIO BELL TELEPHONE COMPANY AND THE TUSCARAWAS COUNTY TELEPHONE COMPANY FOR AUTHORITY TO RESPECTIVELY PURCHASE AND SELL TELEPHONE PROPERTY. No. 2951. Decided March 4, 1924. Acquisition of Properties Authorized — Valuations Determined ORDER. Rates This day, after full hearing, due notice of the time and place of which was given to all parties in interest, this matter came on for consideration upon the joint application of The Ohio Bell Telephone Company and The Tuscarawas County Telephone Company (corporations duly organized and existing under and by virtue of the laws of the State of Ohio), asking the consent to and approval by this Commission of (a) the sale by The Ohio Bell Telephone Company and the purchase by The Tuscarawas County Telephone Company of the exchanges of The Ohio Bell Telephone Company at Dover and New Philadelphia, Ohio, and vicinities, and certain toll lines connecting said exchanges and radiating therefrom, and (b) the sale by The Tuscarawas County Telephone Company and the purchase by The Ohio Bell Telephone Company of the exchanges of The Tuscarawas County Telephone Company at Dennison, Uhrichsville, Newcomerstown, Tuscarawas, Gnadenhutten and Port Washington, Ohio, and vicinities, and certain toll lines connecting said exchanges and radiating therefrom; and the record made upon said hearing. The Commission, being fully advised in the premises, finds from the pleadings and exhibits filed herein, the record made upon said hearing, and its independent inquiry and investigation thereupon: That, for rate-making purposes, a reasonable value of the property of The Tuscarawas County Telephone Company, after the acquisition of the local exchange property of The Ohio Bell Telephone Company at Dover and New Philadelphia, Ohio, and the complete unification of said company's facilities, will be the sum of $335,865; That, applying the following schedule of net monthly rentals, viz.: together with the other rates and charges set forth in Gregson Exhibit No. 1, offered and introduced in evidence at the session of the hearing herein on January 11, 1924, to the local exchange service (as unified in said Dover and New Philadelphia areas), of said The Tuscarawas County Telephone Company for a period of one year, the probable revenues will be the sum of $138,483; the reasonable annual expense to said company for furnishing its said service, as so unified in said areas, will be the sum of $98,396, the deduction of which from said probable revenues, leaves the sum of $40,087 available for depreciation, income tax and a return upon said company's property investment; that a reasonable annual charge for depreciation will be 5 per cent. of the said present value of the property of said company, as unified, or an annual charge of $16,793, and that, on said basis, the annual federal income tax will be the sum of $2,912, the deduction of which further sums from said balance leaves, available for return on said property investment, the sum of $20,382, which sum is equivalent to 6.1 per cent. of the said rate-base value of said company's property; That said return of 6.1 per cent. per annum is not unjust, unreasonable or excessive, and that said proposed schedule of rates and rentals for service in said area, which will produce such net return, is just and reasonable; That, for rate-making purposes, a reasonable value of the property of said The Ohio Bell Telephone Company in the Dennison-Uhrichsville exchange area, after the complete unification of the facilities therein, will be the sum of $194,358; That, applying the following schedule of net monthly rentals, viz.: [Ohio C. L. 148] together with the other rates and charges set forth in Hanna Exhibit No. 4, offered and introduced in evidence at the session of the hearing herein on December 19, 1923, to the local exchange service, as unified, of said The Ohio Bell Telephone Company in said Dennison-Uhrichsville exchange area, for a period of one year, the probable revenues will be the sum of $65,538; that the reasonable annual expense to said company for furnishing said service will be the sum of $42,214, the deduction of which from said probable revenues, leaves the sum of $23,324 available for depreciation, income tax and a return upon said company's property in said exchange area; that a reasonable annual charge for depreciation will be 5 percentum of the said present value of said property, as unified, or an annual charge of $9,718, and that, on said basis, the annual federal income tax will be the sum of $1,701, the deduction of which further sums from said balance leaves, available for return on said property investment, the sum of $11,905, which sum is equivalent to 6.1 per cent. of said rate-base value of said property in said area; That said return of 6.1 per cent. per annum is not unjust, unreasonable or excessive, and that said proposed schedule of rates and rentals for service in said area, which will produce such net return, is just and reasonable; That, for rate-making purposes, a reasonable value of the property of said The Ohio Bell Telephone Company in the Newcomerstown exchange area, after the complete unification of the facilities therein, will be the sum of $40,259; That, applying the following schedule of net monthly rentals, viz.: together with the other rates and charges set forth in Hanna Exhibit No. 8, offered and introduced in evidence at the session of the hearing herein on December 19, 1923, to the local exchange service, as unified, of said The Ohio Bell Telephone Company in said Newcomerstown exchange area, for a period of one year, the probable revenues will be the sum of $14,260; that the reasonable annual expense to said company for furnishing said service will be the sum of $9,939, the deduction of which from said probable revenues leaves the sum of $4,321 available for depreciation, income tax and a return upon said company's property in said exchange area; that a reasonable annual charge for depreciation will be 5 percentum of the said present value of said property, as unified, or an annual charge of $2,013, and that, on said basis, the annual federal income tax will be the sum of $289, the deduction of which further sums from said balance leaves, available for return on said property investment, the sum of $2,019, which sum is equivalent to 5 per cent. of said rate-base value of said property in said area; That said return of 5 per cent. per annum is not unjust, unreasonable or excessive, and that said proposed schedule of rates and rentals for service in said area, which will produce such net return, is just and reasonable; That, for rate-making purposes, a reasonable value of the property of said The Ohio Bell Telephone Company in the Gnaddenhutten exchange area, after the complete unification of the facilities therein, will be the sum of $6,853; That, applying the following schedule of net monthly rentals, viz.: [Ohio together with the other rates and charges set forth in Hanna Exhibit No. 11, offered and introduced in evidence at the session of the hearing herein on December 19, 1923, to the local exchange service, as unified, of said The Ohio Bell Telephone Company in said Gnaddenhutten exchange area, for a period of one year, the probable revenues will be the sum of $2,058; that the reasonable annual expense to said company for furnishing said service will be the sum of $1,456, the deduction of which from said probable revenues, leaves the sum of $602 available for depreciation, income tax and a return upon said company's property in said exchange area; that a reasonable annual charge for depreciation will be 5 percentum of the said present value of said property, as unified, or an annual charge of $343, and that, on said basis, the annual federal income tax will be the sum of $32.00, the deduction of which further sums from said balance leaves, available for return on said property investment, the sum of $227, which sum is equivalent to 3.3 per cent. of said rate-base value of said property in said area; That said return of 3.3 per cent. per annum is not unjust, unreasonable or excessive, and that said proposed schedule of rates and rentals for service in said area, which will produce such net return, is just and reasonable; That, for rate-making purposes, a reasonable value of the property of said The Ohio Bell Telephone Company in the Tuscarawas exchange area, after the complete unification of the facilities therein, will be the sum of $8,028; That, applying the following schedule of net monthly rentals, viz.: C. L. 148] together with the other rates and charges set forth in Hanna Exhibit No. 13, offered and introduced in evidence at the session of the hearing herein on December 19, 1923, to the local exchange service, as unified, of said The Ohio Bell Telephone Company in said Tuscarawas exchange area, for a period of one year, the probable revenues will be the sum of $1,589; that the reasonable annual expense to said company for furnishing said service will be the sum of $1,576, the deduction of which from said probable revenues, leaves the sum of $13.00 available for depreciation, income tax and a return upon said company's property in said exchange area; that a reasonable annual charge for depreciation will be 5 percentum of the said present value of said property, as unified, or an annual charge of $401, which charge said balance of $13.00 is wholly insufficient to meet; That said proposed schedule of rates and rentals for service in said area which will not produce a revenue sufficient to meet the costs of furnishing the service and a reasonable annual depreciation charge, is not unjust, unreasonable or excessive, and, therefore, is just and reasonable; That, for rate-making purposes, a reasonable value of the property of said The Ohio Bell Telephone Company in the Port Washington exchange area, after the complete unification of the facilities therein, will be the sum of $6,817; That, applying the following schedule of net monthly rentals, viz.: together with the other rates and charges set forth in Hanna Exhibit No. 15, offered and introduced in evidence at the session of the hearing herein on December 19, 1923, to the local exchange service, as unified, of said The Ohio Bell Telephone Company in said Port Washington exchange area, for a period of one year, the probable revenues will be the sum of $2,036; that the reasonable annual expense to said company for furnishing said service will be the sum of $1,330, the deduction of which from said probable revenues leaves the sum of $706 available for depreciation, income tax and return upon said company's property in said exchange area; that a reasonable annual charge for depreciation will be 5 percentum of the said present value of said property, as unified, or an annual charge of $341, and that, on said basis, the annual federal income tax will be the sum of $46.00, the deduction of which further sums from said balance leaves, available for return on said property investment, the sum of $319, which sum is equivalent to 4.7 per cent. of said rate-base value of said property in said area; |