Northwestern Indiana Telephone Company - Page 86

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            Mussman for 1989.  As to the remaining balance of the                                      
            expenditures NITCO made to Handlon & Handlon, petitioners have                             
            failed to establish that these payments furthered NITCO's                                  
            interest and were of direct and substantial benefit to NITCO.                              
                  NITCO paid Handlon & Handlon $1,525.81 for work with respect                         
            to Dial One USA and Intelcom, which were corporations that Mr.                             
            Mussman owned.  According to the 1988 application that Dial One                            
            USA filed with the IURC in seeking authorization to sell long-                             
            distance services, NITCO had no affiliation with Dial One USA and                          
            Intelcom.  Although Mr. Mussman, at trial, claimed that he later                           
            planned to have Intelcom become the parent holding company of                              
            Dial One USA and NITCO, we do not find his self-serving testimony                          
            credible, as this testimony is inconsistent with the statements                            
            made on Dial One USA's application to the IURC.                                            
                  NITCO also paid Handlon & Handlon $234 for the incorporation                         
            of Northwestern Indiana Cellular, a corporation formed to hold                             
            various cellular telephone interests.  On the record presented,                            
            it is not clear whether Mr. Mussman intended that Northwestern                             
            Indiana Cellular be owned by NITCO or by individual members of                             
            the Mussman family.  It is also not clear whether the cellular                             
            telephone interests Mr. Mussman planned to have held by                                    
            Northwestern Indiana Cellular would be cellular telephone                                  
            interests that NITCO or individual members of the Mussman family                           
            owned.                                                                                     
                  We hold that the entire $2,120.81 in the above payments that                         
            NITCO made to Handlon & Handlon, including the $229 expended for                           



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