54, 800
62.28

• The Southern California Water Company has made these provisions in amounts equivalent to the additional Federal income and State franchise taxes which would have been
payable if that company did not have the benefit for income tax purposes of deductions for discount, redemption premium and expense applicable to bonds called for redemption in
1940. Such provisions have been applied in reduction of the unamortized portion of such discount, premium and expense carried in the balance sheet. No provision has been made
by this company for excess profits tax because of deductions for bond discount, redemption premium and expense and allowable credits in computing the amount of income subject
to such tax in 1940 and 1941.

IN THE MATTER OF

NEW ENGLAND PUBLIC SERVICE COMPANY

PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE

File No. 70-1230. Promulgated April 11, 1946

(Public Utility Holding Company Act of 1935-Sections 6 (b), 7 (e), 9 (a) (1), 10 and 12 (c))

EXEMPTION OF SECURITY ISSUES OF SUBSIDIARY OR REGISTERED HOLDING COMPANY

Application by public utility subsidiary of registered holding company under Section 6 (b) of the Act for an exemption from Sections 6 (a) and 7 regarding (1) the issue of new common stock in exchange for presently outstanding common stock (2) the issue and sale of additional common stock at competitive bidding and (3) the issue of new preferred stock in exchange for presently outstanding preferred stock or for cash granted, subject to certain terms and conditions.

ALTERATION OF RIGHTS OF SECURITY HOLDERS.

Declaration regarding changes in the charter provisions of public utility subsidiary company affecting the common and preferred stocks of subsidiary permitted to become effective, the Commission making no adverse findings under Section 7 (e) of the Act.

RETIREMENT OF SECURITIES.

Declaration by public utility subsidiary company with respect to the acquisition of its entire outstanding common stock through exchange and the acquisition of its entire outstanding perferred stock through exchange or redemption, permitted to become effective pursuant to Section 12 (c) of the Act and Rule U-42 thereunder.

ACQUISITION OF COMMON STOCK OF A SUBSIDIARY BY PARENT.

Application by registered holding company regarding the acquistion of common stock of subsidiary through exchange, granted, the Commission finding that, in the light of existing circumstances, such acquisition conforms to the applicable standards of Section 10 of the Act.

APPEARANCES:

Harlow B. Lester and Ella Jay Sturgell of the Public Utilities Division of the Commission.

Ropes, Gray, Best, Coolidge & Rugg, by Allen O. Eaton, and Sulloway, Piper, Jones, Hollis & Godfrey, by Franklin Hollis, for Public Service Company of New Hampshire.

22 S. E. C.-35- -6548