in excess of $25,000, that a hearing would be held for the purpose of giving all parties interested an opportunity to be heard relative to the above-entitled matter. Thereafter, a hearing was held at the Capitol in the city of Madison on April 28, 1937, at which representatives of certain utilities appeared and took part in the proceedings.

The Commission, having made further investigation of the matter and being duly advised in the premises, finds that it is in the public interest that the system of accounts for Class A and Class B electric utilities previously prescribed by this Commission be revised and that there be substituted therefor a system substantially in accord with that approved by the National Association of Railroad and Utilities Commissioners at its Annual Convention held November 10-13, 1936, and that prescribed by the Federal Power Commission, effective January 1, 1937. The Commission is of the opinion, however, that the system of accounts here under consideration is not suitable for utilities with annual gross revenues of less than $50,000 per year. Therefore, the system herein prescribed will be effective for only those utilities having in excess of $50,000 of annual gross revenues. The matter of a system of accounts for the smaller utilities will be considered in a separate proceeding.

NOW, THEREFORE, IT IS ORDERED, That each Class A and Class B electric utility, as defined in the system of accounts attached hereto, subject to the jurisdiction of this Commission, shall, on and after January 1, 1938, keep its accounts fully and completely in accordance with the uniform system of accounts attached hereto and made a part hereof.

IT IS FURTHER ORDERED, That any Class A or Class B electric utility may, at its option, adopt the system of accounts herein prescribed effective retroactively to January 1, 1937. Dated at Madison, Wisconsin, this 3d day of June 1937. PUBLIC SERVICE COMMISSION OF WISCONSIN FRED S. HUNT

ABSTRACTS FROM WISCONSIN STATUTES

1. DEFINITION OF PUBLIC UTILITY

Section 196.01 (1) As used in chapters 196 and 197, unless the context requires otherwise, "public utility" means and embraces every corporation, company, individual, association, their lessees, trustees or receivers appointed by any court, and every town, village or city that may own, operate, manage or control any toll bridge or any plant or equipment or any part of a plant or equipment, within the state, for the conveyance of telephone messages or for the production, transmission, delivery or furnishing of heat, light, water or power either directly or indirectly to or for the public.

2. AUTHORITY FOR UNIFORM SYSTEM OF ACCOUNTS

Section 196.06 (1) Every public utility shall keep and render to the commission in the manner and form prescribed by the commission uniform accounts of all business transacted.

(2) Every public utility engaged directly or indirectly in any other business than that of the production, transmission or furnishing of heat, light, water or power or the conveyance of telephone messages shall, if required by the commission, keep and render separately to the commission in like manner and form the accounts of all such other business, in which case all the provisions of this chapter shall apply to the books, accounts, papers and records of such other business.

(3) Every public utility is required to keep and render its books, accounts, papers and records accurately and faithfully in the manner and form prescribed by the commission, and to comply with all directions of the commission relating to such books, accounts, papers and records.

(4) The commission shall prepare suitable blanks for carrying out the purposes of chapters 196 and 197, and shall, when necessary, furnish such blanks to each public utility.

(5) No public utility shall keep any other books, accounts, papers or records of the business transacted than those prescribed or approved by the commission.

(6) Each public utility shall have an office in one of the towns, villages or cities in this state in which its property or some part thereof is located, in which it shall keep all books, accounts, papers and records required by the com

mission to be kept within the state. No books, accounts, papers or records required by the commission to be kept within the state shall be removed from the state, except upon conditions prescribed by the commission.

3. PENALTIES

Section 196.65 (1) Any officer, agent or employe of any public utility or railroad as defined in sections 195.02 and 196.01, who shall fail or refuse to fill out and return any blanks as required by chapters 195 and 196, or shall fail or refuse to answer any question therein propounded, or shall knowingly give a false answer to any such question, or shall evade the answer to any such question where the fact inquired of is within his knowledge, or who shall, upon proper demand, fail or refuse to exhibit to the commission or any commissioner or any person authorized to examine the same, any book, paper, account, record or memoranda of such railroad or public utility which is in his possession or under his control, or who shall fail to properly use and keep his system of accounting or any part thereof as prescribed by the commission, or who shall refuse to do any act or thing in connection with such system of accounting when so directed by the commission or its authorized representative, shall be punished by a fine of not less than one hundred nor more than one thousand dollars for each offense.

(2) And a penalty of not less than five hundred dollars nor more than one thousand dollars shall be recovered from the railroad or public utility for each such offense when such officer, agent or employe acted in obedience to the direction, instruction or request of such railroad or public utility or any general officer thereof.

DEFINITIONS

When used in this system of accounts:

1. "Accounts" means the accounts prescribed in this system of accounts.

2. "Actually issued," as applied to securities issued or assumed by the utility, means those which have been sold to bona fide purchasers for a valuable consideration (including those issued in exchange for other securities or other property); also securities issued as dividends on stock, and those which have been issued in accordance with contractual requirements direct to trustees of sinking funds.

3. "Actually outstanding," as applied to securities issued or assumed by the utility, means those which have been actually issued and are neither retired nor held by or for the utility; provided, however, that securities held by trustees shall be considered as actually outstanding.

4. "Amortization" means the gradual extinguishment of an amount in an account by prorating such amount over a fixed period, over the life of the asset or liability to which it applies, or over the period during which it is anticipated the benefit will be realized.

5. A. "Associated companies" means companies or persons that, directly or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the accounting company.

B. "Control" (including the terms "controlling," "controlled by," and "under common control with") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a company, whether such power is exercised through one or more intermediary companies, or alone, or in conjunction with, or pursuant to an agreement, and whether such power is established through a majority or minority ownership or voting of securities, common directors, officers, or stockholders, voting trusts, holding trusts, associated companies, contract or any other direct or indirect means.

6. "Book cost" means the amount at which property is recorded in these accounts without deduction of related reserves or other accounts. As applied to utility plant, "book cost" means the amount at which property is included in accounts 100 to 103, inclusive.

7. "Buildings." (See utility plant instruction 10.)