[L. C. The Florida company owns and operates a telephone exchange at Brooksville, Florida, from which it serves 160 subscriber stations within the exchange area and 6 rural stations, 3 of which are owned by the company and the remaining 3 by the subscribers.

The East Florida company owns and operates an exchange at Dunnellon, Florida, serving 147 subscriber stations in the exchange area and 37 rural stations connecting with toll lines. Switching stations for toll service only are maintained at Gainesville and Webster which serve 90 and 37 subscriber stations, respectively, all of which connect with toll lines. Of the stations served by toll lines, 87 are owned by the company and 77 by the subscribers. It is not proposed to purchase any subscriber-owned stations. The Last Florida company also owns toll lines extending from Gainesville to Dunnellon, Oldtown, Cedar Keys, and Hawthorne; from Dunnellon to Brooksville, Inglis, Crystal River, and Ocala; from Brooksville to Webster; and from Webster to Trilby, Oxford, Groveland, and Leesburg. The toll system has an aggregate mileage of 387 pole miles. The two Florida companies are controlled by the same interests, have common officers, and their properties praetically form one system. Connection is made with the long distance lines of the Southern company at Dunnellon, but the latter company does not maintain any toll lines between the points served by the Florida companies. No question of duplication of service is involved in this proceeding.

On August 10, 1923, the parties made a contract by which the Southern company agreed to purchase the properties of the East Florida company and the Florida company for $70,000 and $15,000, respectively, with certain adjustments for property additions and retirements between the date of the contract and the date of transfer of the properties. The purchase price will be paid in cash and no additional securities will be issued. An appraisal made by engineers of the Southern company finds the present structural value of the properties of the East Florida company to be $126.069, and of the Florida company, $14,112.

C. L. 149]

The balance sheet of the East Florida company, as of December 31, 1922, showed plant and equipment, $138,329.77; securities, $2,500; cash, $739.90; due from subscribers and agents, $1,102; accounts receivable, $800; capital stock, $45,400; notes payable, $7,000; accounts payable, $208.50; depreciation reserve, $74,862.83; surplus, $16,000.34. Its income statement for 1922 showed operating revenues, $27,111.44; operating expenses, $23,072.87: operating income, $2,435.83.

The Florida company's balance sheet, as of December 31, 1922, showed plant and equipment, $15,078.56; items receivable, $82.90; capital stock, $5,500; items payable, $858.50; depreciation, $7,920; surplus, $882.96. In 1922 its operating revenues and expenses were $6,292.05 and $6,381.56, respectively.

No increase in the present rate schedule is contemplated. The lines of the East Florida company are all one-party lines with a one-party rate. After the transfer of the properties, the one-party rate will continue in effect, but lower rates will be offered for two-party and four-party lines.

At the hearing, a number of letters from representative telephone users were introduced in evidence, all favoring the proposed purchase, and expressing the opinion that the contemplated acquisition would result in better service because of the ability of the Southern company to finance necessary additions and improvements.

The Southern company is one of the Bell group and operates exchanges and toll lines in North Carolina, South Carolina, Georgia, Alabama, and Florida. It is now, and after the consummation of the proposed transaction will be subject to the Interstate Commerce Act.

Upon the facts presented, we find that the acquisition by the Southern company of the properties of the Florida company and the East Florida company, as described in the application, will be of advantage to the persons to whom service is to be rendered and in the public interest. An appropriate certificate will be issued.

CERTIFICATE.

[I. C. C.

A hearing and investigation of the matters and things involved in this proceeding having been had, and said Division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which said report is hereby referred to and made a part hereof,

It is hereby certified, That the acquisition by the Southern Bell Telephone and Telegraph Company of the properties of the Florida Telephone Company and the East Florida Telephone Company under the terms of the contract described in the application and report aforesaid, will be of advantage to the persons to whom service is to be rendered and in the public interest. March 31, 1924.

HENRY M. DAVIS, AS MAYOR OF ST. CLAIRSVILLE, OHIO, V. THE WESTERN UNION TELEGRAPH COMPANY.

No. 14797.

Decided April 2, 1924.

Failure to Install a Telegraph Office in a Small Country Town and the Making of a Telephone Charge of 10 cents on all Telegraph Messages in or out of such Town, Held not Unjustly

Discriminatory.

REPORT.

No exceptions were filed to the report proposed by the examiner.

Complainant, the mayor of St. Clairsville, Ohio, alleges that the failure of defendant to install and equip a telegraph office there for the sending and receiving of telegrams is unduly prejudicial and disadvantageous to it, its citizens, and public concerns, and that the present telephone charge of 10 cents on all messages sent or received at St. Clairsville is unjustly discriminatory. We are asked to require the installation and maintenance of a fully

L. 149]

equipped office, with telegraph operators, for the transmission of telegrams to and from St. Clairsville, and the discontinuance of the telephone charge.

St. Clairsville, a village of approximately 1,500 to 1,800 population, is the county seat of Belmont County, and is located on the National Road about 12 miles west of Wheeling, West Virginia. Telegrams to and from St. Clairsville are telephoned from or to the office of defendant in Wheeling; they are received and delivered by an agent of defendant in St. Clairsville. Defendant's agent is the wife of a dealer in automobile accessories, who is also engaged in general trucking. His place of business is on the National Road and defendant's office is located there. Telegrams can be sent from 7 A. M. until 9:30 P. M. and later. A large Western Union sign is in front of the building. On telegrams to and from St. Clairsville, the Ohio rate is applicable, plus 10 cents per message for the telephone service. The Ohio rate in many cases is less than the West Virginia rate.

Complainant shows only the disadvantages incident to service of the nature described, such as likelihood of delay, mistake in transmission, or publicity. The telephone is not in a closed booth. General reference was made to the possibility of mistake and publicity; but no specific instances were given. Defendant endeavors to avoid both conditions. Reference was also made to the possible use of the telegraph service by coal companies at or near St. Clairsville. None of these companies was represented by witnesses.

Belmont County, with a population of approximately 90,000, has several principal towns. Barnesville has a population of about 5,000, and is located about 30 miles west of St. Clairsville. The other principal towns are on the Ohio River east of St. Clairsville, and are, Bellaire, with a population of about 15,000; Bridgeport, with a population of about 5,000; and Martin's Ferry, with a population of about 12,000. Barnesville has an independent telegraph office; Bridgeport, a joint railroad telegraph

[I. C. C.

office located in the Pennsylvania railroad station. Bellaire and Martin's Ferry have no independent telegraph offices, and messages are handled by telephone through Wheeling in exactly the same manner as at St. Clairsville. No railroad operates a telegraph office at St. Clairsville.

From about the time of the Civil War until 1913, St. Clairsville had direct telegraph service. The commission of the proprietor of a drug store who was defendant's agent until 1910, based on 75 per cent. of the total receipts of the office, was less than $30.00 a month. The compensation of his successors was on the same basis. During the term of the third agent, a period of about one year, the total telegraph business averaged $73.68 a month. None of these arrangements was terminated by the telegraph company. Following the resignation of the third agent no one was found who would maintain a Morse office. As defendant did not consider the establishment of an independent telegraph office justifiable, various arrangements were made to handle the business by telephone through Wheeling. After two agents had terminated the arrangements as unprofitable, the present agent was employed in 1918 on the basis of 25 per cent. commission on telegraph tolls and 5 cents for every delivery of incoming messages. Delivery is by telephone wherever satisfactory to the receiver and in other cases by messenger.

During the four months, December, 1922, to March, 1923, inclusive, the income from telegrams at St. Clairsville was $109.62 per month; during the first six months of 1923 it averaged $100.49 per month. Defendant estimates that $150 per month would be the minimum cost for an office in St. Clairsville; $110 for an operator, $20.00 for a messenger, and $20.00 for rent. This allows nothing for incidental or overhead expenses. Our attention has not been directed to any provision of the Act which would authorize us to require the establishment or reinstallation of a telegraph office. In view of our findings, it will not be necessary to pass upon that question.

We find that the allegations of the complaint have not been sustained. The complaint will be dismissed.