presentation of stockholder's card. There are a few cases reported among rural companies where stockholders have not paid anything for service since the organization of their companies.

13. Indiscriminate free service at competitive points.

There are only a few places in the state where conditions exist which will come under this head. In one city about 250 telephones were maintained Sept. 1, 1907, absolutely free of charge in competition with a local company having a slightly greater number of phones for which fair charges were made. In another city one company reports 260 "deadhead" for party line residence telephones Sept. 1, 1907. At this point there is a wide range of rates reported in effect for each class of service furnished. For example, the rate for single line business telephones per year ranges from $25.00 to $72.00; for four-party line business telephones from $20.00 to $15.00 per year. At another point 53 free telephones were reported as of April 1 and Sept. 1, 1907.

14. Free service for limited time for advertising purposes.

It seems to have been the practice with a number of companies to give trial service for a limited time. In just one case has free service of this kind been reported to the Commission. In this case 26 trial telephones were reported as of Sept. 1, 1907.

15. Free service until completion of new lines or perfection of service generally.

One company which conducts an extensive long distance business is maintaining about a dozen free telephones at a small exchange it has established on the line of a projected long distance circuit, the understanding being that no charge shall be made for local service until the long distance circuit has been completed to a point some distance beyond.

16. Free local service from public toll pay stations.

It seems to be the practice in some places to make no charge for local service from public pay stations, such as are maintained in hotels and other quasi public places. Coin collectors are attached to the instruments and tolls are collected for long distance calls. It may be that in some cases collections are made for local calls, but as a general rule one can use these telephones at will for local calls without charge. A notice, "free local service", is sometimes

posted. These public pay stations are maintained quite generally throughout the state. Whether the same conditions prevail generally with regard to free local service is not known.

17. Complimentary or courtesy.

A number of free telephones to individuals have been reported to the Commission under this head.

II. CONSIDERATION, BUT NO MONETARY CONSIDERATION.*

In a number of cases companies have reported that they are giving service for which they are paid in services or goods. It does not seem necessary to comment extensively on this kind of free or reduced rate service as the headings in the outline for the most part are self-explanatory. The character of the consideration for such service reported by the companies may be outlined as follows:

1. Tending switches or making connections between lines.

This applies altogether to rural companies where switches between lines are maintained at country stores or farm houses, the occupants of which have their telephones free for making connections between lines.

2. Attorneys' services.

3. Tending phones at each end of line.

This is a case very similar to that of making connections between lines and is found only among rural companies.

4, 5, 6, 7. Telephone service in part payment for services of officers, manager, superintendent, troublemen, operators, bookkeepers and other employes and for company's busi

ness.

These headings include all service furnished to employes of the company in part payment for their services. Quite a number of companies appear to be paying their salaries partly in this form.

*Note. In all cases where telephone service is given in exchange for some benefit which the telephone company receives, the amount allowed by such telephone company should be based upon the exact money value of the service given and the benefit received.

8. Electric current for lighting office.

In a number of cases companies report that they are giving municipal or private electric light plants free telephone service in exchange for free current for lighting telephone company's offices and operating rooms.

9. Power for operating generator.

Same as foregoing except that current furnished is for operating power generator.

10. Right of way for wires across bridge.

Several cases are reported where telephone companies are giving free telephone service to companies owning toll bridges in exchange for the privilege of conducting wires across the bridge.

11. Pole space or contacts.

This heading embraces cases where private companies are given telephone service in exchange for the privilege of using pole space on their pole lines. The private companies are usually telephone companies and in some cases electric lighting companies.

12. Printing telephone directory.

It is reported that one printing shop has a free telephone in exchange for services in printing the telephone directory.

13. Advertising in newspaper.

In some cases free telephones are furnished in exchange for newspaper advertising.

14. Advertising purposes.

This heading is designed to embrace cases where frce telephones are maintained in public places for the purpose of encouraging the use of the telephone and in this way developing the company's business. No cases exactly in point have been reported to the Commission but they have been suggested indirectly.

15. Free service for privilege of installing pay stations.

It appears that a number of hotels are given free telephones in exchange for the privilege of installing pay station booths and instruments in hotel lobbies. The hotel will be given a private telephone which is usually installed at the desk. In some cases the same privileges are extended to other persons who are in a position to maintain on their premises public pay stations with profit to the company.

B. Reduced Rate Service.

I. GENERAL. (Applicable to all patrons.)

1. Refunds for defective service.

In answer to the question in the blank form submitted to telephone companies: "What if any rebates are allowed from the above rates and for what purpose and under what conditions?" a number of companies reported that they allowed discounts for defective service. The following headings indicate in general the conditions under which such discounts are allowed: a. When service is poor by reason of company's negligence.

b. Bill remitted when no service is given for major portion of the month.

c. Telephone out of order for several days.

d. Service temporarily discontinued.

e. Unavoidable causes interfere with service.

f. Failure to make repairs after notice.

g. Pro-rata rebate for insufficient or improper service.

2. Discounts if bill is paid in advance.

A few companies report that a discount of one or two dollars a year is allowed when a year's rental is paid in advance. No company has reported discounts for payment in advance for a less period than a year.

3. Discounts if bill is paid before a certain date.

A few companies report that discounts, ranging from 8 to 10 or 15 per cent, or about 25 cts. per month per telephone, are allowed when the month's bill is paid before the 10th, 15th or perhaps the last day of the month succeeding the month to which the bill applies and in which the service was given.

4. Discounts to subscribers who own their instruments.

A considerable number of the farmers' companies and some of the larger companies owning and operating rural lines, permit and, in some cases, encourage subscribers to buy and maintain their own instruments. In cases where this is done re

duced rates are offered. Such rates are usually reported as regular rates and not as reductions from regular rates.

5. Reduced rates when business and residence telephones are rented to the same subscriber.

In many of the smaller communities business men who have telephones in their residences as well as in their places of business are given a reduction of from 25 to 50 cts. per month on the rental of the two telephones. This arrangement is one which usually appears to be open to all subscribers, but apparently it is not always taken advantage of by business telephone users. In most of such cases the two telephones are on one circuit and, the schedule rates from which the reductions are made are the two-party line rates.

6. Reduced rates when one subscriber has more than one telephone.

A number of companies report what appears to be in the nature of a wholesale rate applicable when one subscriber rents a number of telephones. There appears to be no restriction in these cases such as is found in cases coming under the next previous heading.

7. Sale of long distance coupon books at a discount.

It is not known how generally this practice is prevalent in the state. The plan is to sell a coupon book entitling the holder to perhaps $125 worth of long distance service at scheduled rates for $100. This is an application of the wholesale principle to long distance service.

II. SPECIAL. (Applicable to individuals.)

1. Contracts entered into under schedules effective before present schedules were adopted.

One company operating extensively in the state reports that it has a considerable number of outstanding contracts entered into before the adoption of the present schedule of rates on file with the Commission. In most cases it is believed that these rates are considerably lower than the present rates. There may be some question whether, under the law, such rates are not