Transcription
annuaThe Cincinnati and SuburbanBell Telephone Company
COVER: The look of the future in outdoor telephonebooths. This modern and efficient Kiosk boothis scheduled for production early in 1969.Both attractive and functional, it also providesgreater quiet than previous booths.
The Cincinnati and Suburban Bell Telephone CompanyannuaThe statements and data in this report are forThe Cincinnati and Suburban Bell Telephone Company,including its wholly owned subsidiaries,Citizens Telephone Company,Consolidated Telephone Companyand The Harrison Telephone Company.The Annual Meeting of the Share Ownerswill be held at 12 Noon on Monday, March 17, 1969at the Company’s Headquarters Building,225 East Fourth Street, Cincinnati, Ohio.Telephone: 513-396-9900
‘HOWARD E. BARNETTVice President of the CompanyALBERT T. BONNICKVice President of the CompanyPAUL W. CHRISTENSENFormer Chairman of the BoardThe Cincinnati Gear CompanyRICHARD R. DEUPREEHonorary Chairman of the BoardThe Procter and Gamble Company‘DAVID M. FORKER, JR.PresidentThe William Powell Company‘JOSEPH B. HALLDirector and former Chairmanof the BoardThe Kroger CompanyALBERT E. HEEKIN, JR.PresidentThe Heekin Can Company‘BAYARD L. KILGOUR, JR.Chairman of the Boardof the CompanyDWIGHT J. THOMSONDirector and Special Assistantto the ChairmanU.S. Plywood-Champion Papers Inc.RICHARD E. WAGNERPresidentPepsi-Cola Bottling Companyof Cincinnati‘WILLIAM J. WHITTAKERPresident of the CompanyDIRECTOR EMERITUSARCHIBALD J. ALLENFormer President of the Company* Members of the Executive CommitteeOther directors serve as alternate membersOfficialsBAYARD L. KILGOUR, JR.Chairman of the BoardROBERT H. ALLENDirector of Administration and PlanningWILLIAM J. WHITTAKERPresidentEDWIN S. KINNEYGeneral Information ManagerHOWARD E. BARNETTVice PresidentRALPH B. PERKINSONGeneral Plant ManagerALBERT T. BONNICKVice PresidentJAMES B. RAYGeneral Traffic ManagerCLIFFORD D. COYVice PresidentFRANCIS G. SANNINGChief EngineerDWIGHT H. HIBBARDVice PresidentWILBUR G. STROUPGeneral Commercial-Marketing ManagerMILTON McCOMASSecretary and TreasurerCHARLES G. PUCHTACounselWILLIAM A. HAMMELRATHComptroller2
A Report to Share OwnersYear oHow did we do in 1968?You have to look a little further than usualbehind and beyond the figures to really tell.We continued our energetic and determinedmomentum of growth and we did very well inspite of the kind of churning and challengingyear it was for the nation and the specificchallenges faced by the Company.By the end of 1968, we had installed our807,430th telephone, a gain of 34,208 over1967.Residential and business customers placeda record-breaking 1.4 billion local and longdistance calls in 1968, an increase of 5.9%over 1967.Long distance continued to prove it is “thenext best thing to being there” as calls rose to34.4 million, a significant increase of 10.8%over the previous year.Our earnings in 1968 were affected, ofcourse, by the new 10% Federal income taxsurcharge. Reflecting the surcharge, earningsper average share were 3.73, off .07 from1967. But without the surcharge, the earningsfigure would have been 4.15 or .35 morethan 1967. These earnings were in spite of asubstantial increase in wage costs and theenaedecision of the Public Service Commission ofKentucky which put most of our telephonerates in that state back to their 1964 level.Share owners received dividends of 2.40per share in 1968, which the Company takespride in noting was the 90th consecutive yearin which it has put dividends in the mail forits share owners.We were pleased in January 1969 to receiveapproval by the New York Stock Exchange forthe listing of our stock on that exchange.Trading of our shares begins on February 6,1969, thus making information about ourstock readily available to investors across thenation.In 1968, operating revenues rose to 95.2million, an increase of 10.4% over 1967.Operating expenses also increased, ofcourse. But through careful and watchful man agement, they were held to 58.3 million, anincrease of 10.9% over 1967.In order to continue to provide the outstand ing telephone service which our customersexpect and deserve and to meet the growingcommunications needs of our area, we invested 30.6 million in new and improved facilitiesin 1968.3
:4One of the most significant of the new facil ities was our first electronic switching systemwhich went into service on October 27. Thisequipment, developed by Bell Telephone Labo ratories and manufactured by the WesternElectric Company, is the most modern in theworld today.By the end of 1968 our total plant invest ment had grown to 300.5 million, with a cap ital improvements program underway that callsfor an investment of an additional 189 millionin the five-year period 1969 to 1973.As a member of the Bell System, we sharein its strength, energy and resources. The com mon purpose that directs the research, manu facturing and operating arms of the Systemis a purpose we also share and which bringsunique and valuable benefits to us as an oper ating company.Perhaps even more significantly, it bringsunique and valuable benefits to all the businesses and individuals that we serve. What isthe finest communication system in the worldtoday will be an even finer and more amazingone tomorrow.Few areas of the country are meeting thechallenge of change with bolder action thanGreater Cincinnati and other communities weserve. And certainly few companies are moreinvolved in it than our own. For communica tions are always a part of change. And changeis inexorably a part of communications. In thetelephone business, “today” has already hap pened, “tomorrow” is already here.PresidentChairman of the BoardJanuary 29, 1969I should like to add to this Report a brief personal note. This is the lastAnnual Report on which my signature will appear. On March 1,1 shall relinquishthe gavel of the Chairman of the Board. I have already indicated my feelingsabout the future of this great Company and the industry of which it is a part.I treasure all 41 of the years in which I played some part in the team effortit takes to run a company like this. The team continues under proven leader ship. I warmly salute all of its members, all who have been my co-workers,all who have been my friends . and extend my grateful thanks to our manyshare owners and customers who helped us accomplish great things byexpecting no less.Sincerely,4tI
-actorsaffecting incomeand expensesSome 2.0 million was added to our annualpayroll by the signing of a three-year labor con tract in April. The agreement was generallyin accordance with the pattern across theentire Bell System.***We’ve already touched on our rate problemin Kentucky. On March 27, 1968, the PublicService Commission of Kentucky issued its finalorder in the rate case which Citizens TelephoneCompany had filed on February 20, 1964.The order allowed some revenue increases,principally in charges for rural and intrastatelong distance services, but only about half ofthe total 870,000 originally sought. The re sult of this order is to further reduce our al ready low earnings on the investment used toserve our Kentucky customers. We expect toseek a rate increase in the near future. * New intrastate telephone rate schedules,with time periods to match those for interstatecalls, were put into effect in Ohio on May 1,saving our customers approximately 105,000a year. This was the eighth long distance ratereduction in the last nine years.In Ohio, charges for color telephones andthe monthly rate for volume control telephoneswere reduced effective October 1. We estimatethat these reductions will save our customersabout 90,000 per year.With the exception of the small increase al lowed in the Kentucky portion of our operatingarea in the rate case mentioned above, ourrates have not been increased for more than15 years. During that period we have managedto keep our business profitable through con stantly improved procedures, use of the mostmodern equipment and by aggressively andimaginatively marketing our services.It has become increasingly difficult, how ever, to offset inflationary pressures, in creasing taxes and high interest rates simplywith better equipment and management tech niques. We intend to speak up for the rate in creases required to remain a healthy, progres sive and profitable business, capable ofmeeting the growing communication needs ofour customers.5
Othernoteworthydevebpmentsduring the yearThe growth of our Greater Cincinnati andNorthern Kentucky free calling area continuedin 1968 with the introduction of extended areaservice to Florence, Kentucky. The areas servedby our Hamilton, Shandon and New Richmondoffices have been scheduled to receive thisimproved service in late 1969.We are planning to offer such service toother areas where polls of customers indicatea substantial majority would subscribe for ex tended area service.This improved service is necessarily offeredat somewhat higher rates than those in effectin the more compact metropolitan area.***Late in the year we purchased from theLong Lines Department of the American Tele phone and Telegraph Company, telephoneplant which has become increasingly morelogical for our Company ownership. Includedare such items as switchboard, building equip ment and certain transmission facilities.***The ever growing number of calls to Infor mation had become a matter of concern forus. Through our operators, through newspaper,television and radio advertising, we suggestedthat people go “direct to their telephone direc tory”, thus making one call instead of two.
As our “Information” operators became"Directory Assistance" operators at mid-year,the number of calls to them was reduced by25% with considerable savings in time for ourcustomers and important savings in moneyfor the Company.***Our plant men and our service representa tives were credited with sales efforts whichincreased annual revenues by 1.3 million.We commend them for an outstanding job. We continued our campaign against harass ment by telephone. Through the use of newequipment and techniques, we have been ableto assist in exposing an increasing percentageof those who use the telephone to harass otherswith obscene or threatening calls. **The 60th National Governors’ Conferenceconvened in July, bringing the Governors andPresident Johnson to Cincinnati — and withthem many demands for unusual communica tion services tailored to each conferee’srequirements.The manner in which our people respondedto this challenge elicited warm praise fromGovernors, news media and the White HouseStaff.The promptness with which the Companyresponds to unexpected emergencies wasdemonstrated last April, when tornadoes dev astated several rural areas which we serve.Because of a strike, the repair crews thatrushed to the scene were made up of Companymanagement employees. They not only swunginto action quickly to restore vitally neededemergency service but proceeded with remark able speed to restore normal service, relyingon our own emergency power equipment.The storm left over half of the homes inFalmouth, Kentucky, some 35 miles south ofCincinnati, severely damaged or completelydestroyed, and knocked out all electric powerincluding that of the busy Pendleton CountyHospital where storm victims were being taken.The Company rushed a standby generator fromCincinnati to Falmouth in order to permit theresumption of full hospital services for theduration of the electric outage.This was one of our transportable emer gency electric generators which we have read ily available for any commercial power outagewhich may occur at one of our outlying ex changes.We are proud of the way telephone peoplego out of their way to do what needs to be done.7
FASCINATION AND RESPECT. Over the years,nThe Telephone Man" has won the high respectand admiration of the public he serves, includingboys and girls who are ever fascinated by theintricacies of his job, the tools of his trade and thecompetence with which he uses them.OUR CITIES FAREURGENT PROBLEMSWe are very much invokedThe problems of the cities are our prob lems. We live there; a major portion of ourbusiness is there. If we are to make it, ourcities must make it.That's why your Company, like other BellSystem Companies and other responsible in dustry around the country, has committed it self to programs to train and provide employ ment for those who never previously qualifiedfor adequate employment.In addition to our own training and hiring,we co-sponsored “Opportunity Line”, a weeklyhalf-hour television program aimed at reachingthese same disadvantaged groups with pres entations of job opportunities which employersin our area had available for them.Early last year, we also initiated a seriesof day-long sessions for our Company mana gers to discuss and broaden understandingof minority group problems. So useful were themeetings that similar programs were adoptedby other companies in our area.As an aid to school teachers and counselors,we again conducted tours of our work areasand various departments so that they couldsee and report on the opportunities awaitingstudents who complete their schooling.9
COMFANY ORGANIZATION 1The Administration and Planning Depart ment, with Robert H. Allen as its director, wasestablished effective February 1. This depart ment has responsibility for fundamental longrange planning and the general service func tions of the Company.At the same time, the commercial and mar keting functions were combined into a singledepartment headed by Wilbur G. Stroup, gen eral commercial-marketing manager.Garland B. Foscue, President of the Con solidated Telephone Company, died on Febru ary 27, 1968. Mr. Foscue, a 33-year telephoneveteran, is sadly missed by his associates inthe business and the community he servedso well.Roland S. Means, President of The HarrisonTelephone Company, retired September 1after 47 years of devoted service. He was suc ceeded as President by Clifford D. Coy, ourgeneral plant manager. Subsequently Mr. Coywas elected vice president-revenue require ments of this Company and was succeeded asgeneral plant manager by Ralph B. Perkinson.Vice President Eugene E. Druley retired onOctober 3 after 32 years of dedicated serviceto our Company. Mr. Druley also had been aDirector of Citizens Telephone Company.Dwight H. Hibbard, vice president-informa tion and personnel, was elected a Director ofCitizens Telephone Company, succeeding Mr.Druley.10
he ComrnunThe fact that a number of our employeeswere elected, last November, to offices ofpublic trust in their communities, makes usextremely proud. All of our people who dealwith customers, our efficient operators, ourcompetent service representatives, plant menand management people do their jobs, dayafter day, in a manner that wins respect forthem as well as the Company. *In addition to a considerable amount of theirpersonal time and effort, our people pledgeda total of 138,881 of their income to the1968-69 United Appeal campaign to aid theirless fortunate neighbors. They also support ourgovernment through the purchase of savingsbonds.* *Kilgour Chapter, Telephone Pioneers ofAmerica, an organization of active and retiredemployees with 21 or more years service, con tinued their humanitarian efforts for the vis ually handicapped by preparing Braille booksand repairing small radios and talking-bookmachines. They also collected gifts and pre pared 400 gift bags for men and women serv ing with our armed forces overseas. **During the year, 48 of our employees wereon military leave, some of them serving inthe war in Vietnam.as we as
-The future getsCLOSEYou've probably read the ads that remindpeople, particularly businessmen, that “a tele phone is just a telephone until you learn howto use it.”People are, indeed, "learning how to use it.”An increasing number of people are makinglong distance business telephone calls insteadof long distance business trips. They are alsogetting quick answers by phone instead ofwaiting impatiently for slower responses bymail.They’re making greater and more profitableuse of WATS (wide area telephone service)that permits unlimited long distance telephonecalls to specified areas of the country, or to thewhole country, for a flat monthly charge.More and more business is being conductedby machines “talking” with machines, as dataservices come into increasing use to speedinformation from computer to computer, frombranch to headquarters, from company to com pany, from city to city.And such use is sure to be accelerated byBell System proposals that will make it pos sible to permit connection to the telephonenetwork of customer owned communicatingequipment, by voice and data, with simple andinexpensive connecting arrangements pro vided by the telephone company, which arenecessary to insure trouble-free service to allour customers.With the arrival of ESS (electronic switchingsystem) to the downtown area of Cincinnatiin October, the speed and convenience of themodern Touch-Tone pushbutton phones arenow available to over half of our customers.What makes ESS such an exciting develop ment, however, is that it brings “tomorrow”a lot closer in terms of such new conveniencesas dialing just three digits instead of seven toreach a frequently called number, setting upthree-way conversations almost as easily astwo, and automatically transferring calls fromwhere you are to where you’re going to be.Looking ahead further into the future, whatTouch-Tone and ESS will ultimately be able todo to simplify our daily lives is almost limitlessin a pushbutton and computer age.13
The Cincinnati and Suburban Bell Telephone Company and SubsidiariesAssetsDec. 31, 1968Dec. 31, 1967In service. 292,095,000 270,089,000Under construction.7,054,0008,279,000Held for future vables.11,793,00011,359,000Material and 885,000. 236,027,000 219,227,000TELEPHONE PLANT AND OTHER INVESTMENTS—AT COSTTelephone PlantLand, buildings and equipmentLess: Accumulated depreciation.Other investments.CURRENT ASSETSPREPAID EXPENSES AND DEFERRED CHARGES.TOTAL ASSETS.For notes, see page 17.14
Consolidated Balance SheetsLiabilitiesDec. 31, 1968 Dec. 31, 1967(a)SHARE OWNERS’ EQUITY 84,591,000 0002,730,0006,092,000LIABILITIES. 236,027,0005,169,000Shares (common)—par value ( 25 per share)Authorized 5,000,000 shares; outstanding at December 31, 1968,3,383,631 shares.Premium on shares (b).Share installments by employees.On 103,133 shares at December 31, 1968, refundable at em ployee option. Of the 200,000 shares which may be issued underthe Plan approved in 1966 by the share owners, 71,315 havebeen issued.Retained earnings—see page 17.DEBTThirty-five year 4i/2% debentures due 1993.Forty year 4%% debentures due 2002.2% mortgage notes.Advances from American Telephone and Telegraph CompanyCURRENT LIABILITIESAccounts payable.Advance billing and customers’ deposits.Dividend payable.Taxes and interest accrued.DEFERRED CREDITSUnamortized investment credit.Other.TOTAL 219,227,00015
The Cincinnati and Suburban Bell Telephone Company and SubsidiariesYear 1968Year 1967(a)Local service. 61,821,000 58,474,000OPERATING REVENUESToll 03,529,000Less: Provision for uncollectibles.406,000453,000Total Operating 0003,611,000Provision for pensions and other employee benefits (c). . . .4,692,0004,270,000Services received under license contract.902,000810,000Other operating expenses.4,402,0003,681,000Less: Expenses charged construction.1,669,0001,544,000Total Operating Expenses.58,334,00052,615,000Net Operating Revenues.36,894,00033,609,000Federal income.12,515,00010,484,000State, local and social security.8,255,0007,696,000Total Operating Taxes.20,770,00018,180,000Operating Income (carried forward). 16,124,000 15,429,000Principally from directory advertising.OPERATING EXPENSESMaintenance.Depreciation.Portion of the cost, computed on the straight line method, ofdepreciable plant charged against current operations, approx imately 5.4% in 1968 and 1967.Traffic.Principally wages of telephone operators.Commercial.Primarily costs of local business office operations.OPERATING TAXES16
Consolidated Income StatementsYear 1968Year 1967(a) 16,124,000 15,429,000Interest charged construction.517,000317,000Miscellaneous deductions from 8,0002,986,000 12,505,000 12,607,000 3.73 3.80Operating Income (brought forward).OTHER INCOMEIncome Before Interest Deductions.INTEREST DEDUCTIONS.Principally on long-term debt.NET INCOME.NET INCOME PER SHARE.Based on average shares outstanding, 3,356,411 in 1968 and3,314,380 in 1967.CONSOLIDATED STATEMENTS OF RETAINED EARNINGSBALANCE AT BEGINNING OF YEAR.Year 1968Year 1967(a) 36,145,000 ,00056,000 40,581,000 36,145,000ADDITION:Net income.DEDUCTIONS:Dividends.Miscellaneous — net.BALANCE AT END OF YEAR.NOTES TO FINANCIAL STATEMENTS(a) The 1967 financial statements have been restated to reflect the applicable portion of revenuerefunds made in 1968 as a result of rate reductions under final order of the Public Service Commis sion of Kentucky. The 1967 retained earnings beginning balance was reduced by 490,000 resultingtherefrom. Net income for 1967 was reduced 224,000 or .07 per share.(b) Premium on shares increased by the excess of the sales price over the par value of 67,473 sharessold in 1968 under the Employees' Stock Purchase Plan.(c) The Company and its subsidiaries have noncontributory pension plans covering substantially allemployees. Regular payments are made under accrual programs to trust funds irrevocably devotedto service pensions and death benefits. These payments are actuarially determined except for onesubsidiary which makes contributions based on a profit sharing plan. The total provisions for 1968and 1967 were 3,458,000 and 3,125,000, respectively.17
The financial statements onpages 14 to 17 consolidate theaccounts of The Cincinnati andSuburban Bell Telephone Companyand subsidiaries — Citizens Tele phone Company, ConsolidatedTelephone Company and The Har rison Telephone Company. Thesecompanies maintain their accountsin accordance with the UniformSystem of Accounts prescribed fortelephone companies by the Fed eral Communications Commission.W. A. HAMMELRATHComptrollerReport of IndependentCertified Public AccountantsTO THE SHARE OWNERS OF THECINCINNATI AND SUBURBAN BELLTELEPHONE COMPANYWe have examined the consoli dated balance sheet of The Cincin nati and Suburban Bell TelephoneCompany and subsidiaries as ofDecember 31, 1968, and the re lated income statement and state ment of retained earnings for theyear then ended. Our examinationwas made in accordance with gen erally accepted auditing standards,and accordingly included suchtests of the accounting records andsuch other auditing procedures aswe considered necessary in the cir cumstances. The consolidatedfinancial statements for the year1967, which were previously ex amined and reported upon by us,have been restated as described inNote (a) to financial statements.In our opinion, the financialstatements (pages 14 to 18) pre sent fairly the consolidated finan cial position of The Cincinnati andSuburban Bell Telephone Companyand subsidiaries at December 31,1968 and 1967, and the consoli dated results of their operationsfor the years then ended, in con formity with generally acceptedaccounting principles applied on aconsistent basis.LYBRAND, ROSS BROS. &MONTGOMERYCincinnati, OhioJanuary 29, 1969DIRECTORY ASSISTANCEOPERATORS help give ourcustomers excellenttelephone service. Ouroperators are suggestingmore efficient and pleasinguse of telephone servicewith their advice to “godirect to the directory” . . .“make one call insteadof two.“QUICK RESPONSE TODISASTER. Companymanagement repair crewsrushed to the tornadodevastated community ofFalmouth, Kentucky, lastApril 23, quickly estab lished emergencycommunications to theoutside world and thenset about restoringnormal service.
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Our Companies Over the'Years196819671966196519641958 86,224,00052,615,000 79,815,00048,156,000 72,923,00044,657,000 67,814,00041,919,000 47,857,00029,067,000Operating RevenuesOperating ExpensesOperating Taxes—Federal IncomeOtherOther Income, NetInterestNet Income 0003,504,00052,000815,0007,132,000Shares — Average— Year 492,803,449Taxes per Average Share 6.19 5.49 5.19 4.98 4.81 3.89Net Income per Share —On Average SharesOn Year-End Shares 3.73 3.70 3.80 3.80 3.64 3.62 3.49 3.26 3.13 3.10 2.54 2.54Dividends Paid per Share 2.40 2.40 2.40 2.25 2.25 2.25Debt in Total Capital*36.8%34.4%33.1%30.2%36.7%24.2%Share 5142,474 43,670,0004,8852,4252,460 38,412,0004,2752,3791,896 35,579,0004,1202,3481,772 32,686,0004,0472,3091,738 30,998,0003,8222,2431,579 015,815,000Employees*MenWomenPayroll and Related CostsTelephones*BusinessResidence — Main— Extension— % One-PartyLong Distance MessagesConstruction ExpendituresPlant Investment* 30,601,000300,496,000 25,097,000 26,218,000 21,835,000 19,476,000 12,232,000279,533,000 261,703,000 242,469,000 227,452,000 151,028,000*At Year End.NOTE: 1967 through 1964 have been restated to reflect the applicable adjustments described in Note (a) tofinancial statements.20
TRANSFER AGENTThe Cincinnati and Suburban Bell Telephone Company225 East Fourth StreetCincinnati, Ohio 45202CO-TRANSFER AGENTMorgan Guaranty Trust Company of New York30 West BroadwayNew York, New York 10015REGISTRARThe Central Trust CompanyFourth and Vine StreetsCincinnati, Ohio 45202CO-REGISTRARUnited States Trust Company of New York45 Wall StreetNew York, New York 10005
The Cincinnati and SuburbanBell Telephone CompanyCitizens Telephone CompanyConsolidated Telephone CompanyThe Harrison Telephone Company
"C05 INF. BURno T!nM c,;r1969Annual ReportThe Cincinnati & SuburbanBell Telephone Company
The park at our HeadquartersBuilding provides pleasant greeneryin downtown Cincinnati.
The Cincinnati and Suburban Bell Telephone Company1969 Annual ReportThe Annual Meeting of the Share Owners willbe held at 12 Noon on Monday, March 16, 1970at the Company’s Headquarters Building,225 East Fourth Street, Cincinnati, Ohio.Telephone: 513 396-9900
Directors* HOWARD E. BARNETTVice President of the CompanyALBERT T. BONNICK-BAYARD L. KILGOUR, JR.Former Chairman of the Boardof the CompanyVice President of the CompanyDWIGHT J. THOMSONPAUL W. CHRISTENSENDirector and Special Assistantto the ChairmanU.S. Plywood Champion Papers Inc.Former Chairman of the BoardThe Cincinnati Gear CompanyRICHARD R. DEUPREEHonorary Chairman of the BoardThe Procter and Gamble Company* DAVID M. FORKER, JR.Chairman of the BoardThe William Powell Company JOSEPH B. HALLDirector and former Chairmanof the BoardThe Kroger CompanyRICHARD E. WAGNERPresidentPeps'hCola Bottling Companyof Cincinnati*WILLIAM J. WHITTAKERPresident of the CompanyDIRECTOR EMERITUSARCHIBALD J. ALLENFormer President of the CompanyALBERT E. HEEKIN, JR.Chairman of the BoardThe Heekin Can Company* Members of the Executive CommitteeOther directors serve as alternate membersOfficialsWILLIAM J. WHITTAKERROBERT H. ALLENPresidentDirector of Administration and PlanningHOWARD E. BARNETTEDWIN S. KINNEYVice PresidentGeneral Information ManagerALBERT T. BONNICKRALPH B. PERKINSONVice PresidentGeneral Plant ManagerCLIFFORD D. COYJAMES B. RAYVice PresidentGeneral Traffic ManagerDWIGHT H. HIBBARDFRANCIS G. SANNINGVice PresidentChief EngineerMILTON McCOMASWILBUR G. STROUPSecretary and TreasurerGeneral Commercial Marketing ManagerWILLIAM A. HAMMELRATHCHARLES G. PUCHTAComptrollerCounsel
A report toShare OwnersIt is our objective to keep you informed of important events affectingthe Company as they occur. Therefore, this annual report will containsome of the information forwarded to you throughout the past year.In December of 1969 your Company filed applications for rateincreases in both Ohio and Kentucky. Our last general rate increasewas in 1953—17 years ago.The procedures established by law for state-regulated utilitiesrequesting rate increases are exacting. For example, in Ohioa 12-month period must be established during which the earningsperformance of the utility is studied. We applied to The Public UtilitiesCommission of Ohio in August to have the period October 1, 1968through September 30, 1969 so designated, and it was approved.Using this test period, a rate application, including over 1,000 pagesof supporting detail, was filed with The Public Utilities Commissionof Ohio on December 11. A similar filing was made with the
Public Service Commission of Kentucky on the same day. Therate changes requ
Cincinnati, severely damaged or completely destroyed, and knocked out all electric power including that of the busy Pendleton County Hospital where storm victims were being taken. The Company rushed a standby generator from Cincinnati toFalmouth in order permit the resumption of full hospital services for the duration of the electric outage.
