C. L. 149] from income or from other moneys in its treasury the sum of $18,295.86 for the acquisition of property or the construction, extension or improvement of or addition to its facilities, as set forth in Exhibit D attached to said application; that the Commission by its order entered December 14, 1922, in Case No. 12820* (Authorization No. 1392) authorized the petitioner to issue and sell $25,000 aggregate principal amount of its first mortgage 6 per cent. bonds under its mortgage dated July 1, 1922; that as shown by reports of the petitioner in connection with said Case No. 12820,* $16,000 aggregate principal amount of said bonds have been sold and the proceeds therefrom in the sum of $15,200 used and applied for purposes as authorized by said order; that the sum of $2,394.24, being the proceeds of said bonds to the principal amount of $2,520.25, has been applied toward the aforesaid expenditures; and that the balance of such expenditures actually made for the aforesaid purposes and for which no securities have been issued or authorized to be issued, is in the sum of $15,775.61. That the petitioner proposes to discharge and retire all of its bonds now outstanding in the aggregate principal amount of $24,000, so that the bonds now proposed to be issued will be a first lien on its property; that the aforesaid mortgage dated July 1, 1922, securing a total issue of $30,000 principal amount of bonds (of which $16,000 principal amount has been issued) does not permit the issuance of bonds sufficient for the petitioner's financial needs; that the financial condition of the petitioner will be strengthened by the execution and delivery of a new mortgage, the issuance of bonds thereunder and the retirement of its bonds now outstanding; and that under the provisions of the mortgages securing said outstanding bonds all of said bonds are redeemable at the option of the petitioner on any interest paying date at par and accrued interest. *Noted in Commission Leaflet No. 135, p. 438. That the petitioner now proposes to execute and deliver its first mortgage or deed of trust, dated January 1, 1924, to Clarence W. Heyl, of Peoria, Illinois, as trustee, to secure a total of $40,000 principal amount of bonds, dated January 1, 1924, maturing serially $500 on January 1, 1929, and like amount on the same date each year thereafter until 1934, when all remaining bonds become due; said bonds to bear interest at the rate of 62 per cent. per annum, payable semi-annually, and all or any portion thereof to be redeemable before maturity, at the option of said company, on any interest paying date three years after the date thereof, at par and accrued interest; said mortgage covering all property of said company now owned or that hereafter may be acquired, and containing other and appropriate provisions, and to be executed and delivered in form substantially the same as the copy thereof attached as Exhibit F to said application. The petitioner now desires the consent and approval of the Commission for authority to execute and deliver its first mortgage or deed of trust and to issue thereunder and sell $35,000 aggregate principal amount of its first mortgage bonds, for the purposes of (a) the reimbursement in part of moneys actually expended for the acquisition of property or the construction, extension or improvement of or addition to its facilities and (b) the discharge and retirement of all its bonds now outstanding, each as hereinbefore set forth. The Commission having considered the application and the evidence presented in support thereof, and being fully advised in the premises, is of the opinion, and finds: That the moneys to be procured by the petitioner from the issuance and sale of its bonds, for which authority is sought, are reasonably required for the purposes hereinbefore stated; that said expenditures actually made and proposed to be made for said purposes were, and are, reasonably necessary and required and that the same are not in whole or in part reasonably chargeable to operating ex [I L. 149] penses or to income; and that the prayer of the petitioner for authority to execute and deliver its proposed first mortgage or deed of trust, as hereinbefore described, and to issue thereunder and sell $35,000 aggregate principal amount of its first mortgage bonds, for the aforesaid purposes, is reasonable and should be granted, in accordance with the terms and conditions hereinafter provided and authorized. It is, therefore, ordered by the Illinois Commerce Commission, That the Washington Home Telephone Company be, and it is hereby, authorized to execute and deliver its first mortgage or deed of trust, dated January 1, 1924, to Clarence W. Heyl, of Peoria, Illinois, as trustee; that said mortgage shall contain the provisions hereinbefore referred to and shall be executed and delivered in form substantially the same as the copy thereof attached as Exhibit F to the application herein. It is further ordered, That the Washington Home Telephone Company be, and it is hereby, authorized to issue and sell $35,000 aggregate principal amount of its first mortgage gold bonds, dated January 1, 1924, maturing serially $500 on January 1, 1929, and a like amount on the same date each year thereafter until 1934, when all remaining bonds become due, bearing interest at the rate of 61⁄2 per cent. per annum, payable semi-annually, and to be issued under and secured by its first mortgage or deed of trust herein authorized to be executed and delivered. It is further ordered, That the authority for the issuance and sale of said bonds be, and the same is hereby, granted upon the following conditions and not otherwise: (1) That the petitioner shall sell the bonds herein authorized to be issued so as to net said company not less than 95 per cent. of their face value, besides accrued interest thereon, and that the proceeds therefrom shall be used and applied for the following purposes and no other: (a) For reimbursement in part of expenditures actually made from income or from other moneys in its treasury not directly or indirectly secured by or obtained from the issu ance of stocks, bonds or other evidences of long term debt, during the period beginning October 1, 1922, and ended January 1, 1924, in the sum of $15,775.61, for the acquisition of property or the construction, extension or improvement of or addition to its facilities, as hereinbefore set forth, the proceeds of bonds in the principal amount of...... (b) For the discharge or retirement, at par and accrued interest, of al the outstanding bonds of said company, consisting of $8,000 principal amount of first mortgage bonds issued under its mortgage dated July 1, 1921, and $16,000 principal amount of first mortgage bonds issued under its mortgage dated July 1, 1922, the proceeds of bonds in the principal amount of.. TOTAL PRINCIPAL AMOUNT OF BONDS. $11,000 24,000 $35,000 (2) That all discounts, commissions and expenses in connection with the approval, issuance and sale of the bonds herein authorized to be issued shall be amortized out of the income of said company, prior to the maturity of said bonds, by the payment of equal monthly or annual installments sufficient for such purpose; provided, however, that said company may, at any time prior to the complete amortization of said items, charge to profit and loss the entire amount thereof then remaining unamortized. (3) That said company shall keep separate, true and accurate accounts showing the receipt and application in detail of the proceeds of the sale or disposal of the bonds herein authorized to be issued, and such accounts and vouchers and records of said company shall be open to audit and may be audited by accountants or examiners designated by the Commission for such purpose; that within sixty days after the date of this order and within every ninety days thereafter, so long as may be necessary to show full compliance therewith, said company shall file with the Commission a report (in duplicate), which report shall be signed and verified by an executive officer of said company having knowledge of the facts, and shall show: (a) amount of said bonds sold during such period; (b) date or dates of such sale or sales; (c) to whom said bonds were sold; (d) amount of proceeds realized from C. L. 149] such sale or sales; (e) amount of such proceeds applied for the purpose (or each of the purposes) authorized in this order; (f) any other terms or conditions of sale. If during any such period no sales are made or proceeds applied, a report shall be filed stating such facts. Final report shall be filed forthwith when all transactions are completed in compliance with this order. (4) That said company shall, at the time of filing the aforesaid report or reports, file with the Commission certificate or certificates (in duplicate), showing the cancellation or disposition of $8,000 principal amount of bonds now outstanding under its mortgage dated July 1, 1921, and $16,000 principal amount of bonds now outstanding under its mortgage dated July 1, 1922; and that upon the discharge or retirement of all of said bonds said company shall file with the Commission certificate or certificates (in duplicate), showing the release of the mortgages securing said bonds. (5) That the authority heretofore granted to said company by the order of the Commission entered on December 14, 1922, in Case No. 12820* (Authorization No. 1392) for the issuance and sale of bonds be, and the same is hereby, revoked and cancelled with respect to $9,000 principal amount of said bonds now remaining unissued or unsold. (6) That said company shall, prior to the delivery of any of the bonds herein authorized to be issued, cause to be printed, stamped or engraved upon the face of each of said bonds, for the proper and easy identification thereof, the following: ILLINOIS COMMERCE COMMISSION, Authorization No. 1554, It is further ordered, That the Washington Home Telephone Company be, and it is hereby, charged an amount equal to 10 cents for every $100 of the bonds herein author *Noted in Commission Leaflet No. 135, p. 438. |