Report of Georgia public service commission. Seventy-ninth report including reproductions of seventy-first through seventy-eigth report, 1943-1951

THE LIBRARIES
THE UNIVERSITY OF GEORGIA

REPORT
of
GEORGIA PUBLIC SERVICE
COMMISSION
Jan u ary 1, 1951 to D ecem ber 31, 1951
(Included and reproduced in this volume are also the 71st, 72nd, 73rd, 74th, 75th, 76th, 77th and 78th Reports.)

STATE OF GEORGIA HERMAN TALMADGE, GOVERNOR
Ik I-

; 'S

GEORGIA PUBLIC SERVICE COMMISSION
30 C A PIT O L SQ., S. W. ATLA NTA 3, GA.

BOUND BY THE NATIONAL LIBRARY BINDERY CO. OF GA.

M att L. McW horter, Chairman
Perry T. Knight, Vice Chairm an
Allen Chappell W alter R. McDonald
James A. Perry Commissioners
A. O. Randall Secretary
tiNIVE/Pj-^N
LIBRARIES
OFGEORG'K

STATE OF GEORGIA HERMAN TALMADGE, GOVERNOR
GEORGIA PUBLIC SERVICE COMMISSION
30 C A PITO L SQ., S. W. ATLANTA 3, GA.
M att L. M cW horter, Chairm an Perry T. Knight, Vice Chairman
Allen Chappell W alter R. McDonald
James A. Perry Commissioners A. O. Randall
Secretary

TABLE OF CONTENTS Page
Preface ..................................................... ................................................. -............. -...... -...... ............ 3 Summ ary Inform ation on Practice and Procedure..................................................................- 4 Chronological L ist of Acts of G eneral Assembly........................... ...... .................................. 11 L etter of T ransm ittal................................... ---................................---......-..............-.......--;....... 15 L ist of Telephone Com pany Certificates...................................................-................................ 37 T en-State Southw ide R eciprocal A greem ent.......................................................................... 44 Interpretations of Southwide R eciprocal A greem ent.......... .................................................. 51 71st A nnual R eport (1 9 4 3 )................................................... ........................................................ 55 72nd A nnual R eport (1 9 4 4 )......................................................................................................... 63 73rd A nnual R eport (1 9 4 5 ).......... .............................................:.................................................. 77 74th A nnual R eport (1 9 4 6 )................. ......................................................................................... 93 75th A nnual R eport (1 9 4 7 )................... ........................................................- ......................... --I l l 76th A nnual R eport (1 9 4 8 )..............- ........................ ......................................--.........-.............. 131 77th A nnual R eport (1 9 4 9 )...................... | ................ ...... ....................-......................... ...... ..... 147 78th A nnual R eport (1 9 5 0 )............................................................................................................ 169
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PREFACE
W hile this report is labeled as the 79th R eport of the G eorgia Public Service Commission, there is also p rin ted herein the 71st, 72nd, 73rd, 74th, 75th, 76th, 77th and 78th R eports of the Commission. This is occasioned by the fact th a t this is the first printed R eport of the Commission since the 70th Report, the intervening Reports having been issued only in typew ritten form. By combining all of these Reports in this volume they are made available for publication at a considerable saving to the State.
This Report of the Commission does not reproduce the Laws and Rules govern ing the jurisdiction of the Commission. A separate printed publication under the label "Laws and Rules" of the G eorgia Public Service Commission was issued Ju n e 1, 1948, and on M ay 2, 1950, a separate pam phlet entitled "Rules and Regulations-- Telephone Companies C ertificates of Public Convenience and Necessity-- A ct of February 17, 1950", was issued. These publications, together with amendments thereto, have been continuously available for distribution, and will be re-published when sufficient changes therein will justify the need and expense thereof. Reference, however, can be made to a list of all laws adopted by the General Assembly of Georgia relating to Commission activities in this publication as a m atter of inform ation. T here is also reproduced in this publication as a m atter of general inform ation a sum m ary of the laws and rules relating to P ractice and Procedure before the Commission, which is found in the publi cation entitled "Laws and Rules" of the Commission.
I t was the purpose of the Commission to reproduce the more im portant orders issued by the Commission during the year 1951 in lieu of p reparing statistical d ata, b u t when it was found that to do this would increase the cost of printing the R eport by a considerable sum it was concluded that in the light of our budget the expenditure should not be made. It should, therefore, be noted that the only statistical data con tained in the R eports herein is the abbreviated inform ation contained in the letters of transm ittal. T he Commission has never had sufficient funds to employ a full time Statistician, and to assemble statistical d ata in such form as to be of any real value by our present staff would result in the neglect of more im portant duties.
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GENERAL INFORM ATION ON COM M ISSION
PRACTICE AND PROCEDURE
(Reference is m ade to specific rules and laws)
COM M ISSION OFFICES
T he General Offices of the Commission at 30 Capitol Sq. S.W., A tlanta, Georgia, are kept open for business from 8:30 A. M. to 5 o'clock P. M. each day, except Sunday and legal holidays, and on Saturday from 8:30 A. M. to twelve o'clock noon. All pleadings and other papers required to be filed with the Commission should be filed in the office of the Commission at 30 Capitol Sq. S.W., A tlanta, Georgia.
COM M ISSION DOM ICILE
Code Section 93-211 reads as follows:
"T he domicile of the Public Service Commission is hereby fixed a t the C apital, and no court of this State, other than those of Fulton county, shall have or take jurisdiction in any suit or proceeding brought or instituted against said Commission or on account of any of its orders or rules. T he Commission shall be furnished with necessary furniture and stationeiy and an office to be kept at Atlanta."
PRINCIPAL FUNCTIONS AND DUTIES OF COM M ISSION
T he functions and duties of the Commission m ay be briefly sum marized as follows:
(1) T o require th at all persons, companies or corporations under its jurisdiction provide fair, just and reasonable and non-discriminatory intrastate rates and charges. Code Sec. 93-309 and 310; 93-407 and 411; see also Code C hapters 68-5 and 68-6.
(2) To require that these persons, companies or corporations provide adequate public services and facilities compatible with the reasonable and just needs of the public interest. Code Sec. 93-307 and 93-316; also Code Chapters 68-5 and 68-6.
(3) To prom ulgate and enforce adequate rules and regulations governing the op erations of all persons, companies or corporations under the jurisdiction of the Com mission for the protection of the public interest. Code Sec. 93-307; Code Chapters 68-5 and 68-6; see also Commission Rules.
(4) To require th at these persons, companies or corporations at all times m aintain adequate financial responsibility. Code Sec. 93-414 and 68-603.
(5) To investigate all through freight rates and to appeal to the Interstate Com m erce Commission to prevent discrim inations therein. Code Sec. 93-312 and 93-314.
(6) To conduct hearings, assemble evidence and make investigations, determine costs and valuations, and inspect properties, books and papers of all persons, companies or corporations under its jurisdiction; issue orders giving effect to its decisions, and when necessary to institute court proceedings to enforce its orders, rules and regulations. Code Sec. 93-301 and Code Sec. 93-501-508; see also Code C hapters 68-5 and 68-6.
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(7) To require all persons, companies or corporations under its jurisdiction to make m onthly and annual reports to the Commission in the m anner and form as p re scribed by the rules of the Commission.
(8) To make annual reports to the Governor of the transactions of the office and from time to time recom m end such legislation as m ay be deemed advisable. Code Sec. 93-318.
(9) To employ adequate and sufficient personnel deemed necessary to perform the duties and exercise the powers conferred upon the Commission by law. Code Sec. 93-207.
JU RISD ICTIO N OF COM M ISSION
The Georgia Public Service Commission, consisting of five members elected by the people, is an adm inistrative agency of the State Governm ent, created by S tatute, and its authority is lim ited to the powers which the Acts of the Legislature have expressly or im pliedly conferred upon it. Code Sec. 93-201; see also Acts 1878-79; 1889; 1905; 1906; 1907; 1919; 1922; 1931; 1933; 1943; 1947.
The Commission has jurisdiction over all railroads, telephone companies, electric power companies, gas utility companies, electric railway and bus utility companies, ex press companies, telegraph companies, terminal companies, compress companies and dock and w harf companies, within the State (Code Sec. 93-307). The Commission has general supervision over the W estern & A tlantic Railroad-- see note under Code Sec. 91-201. T he Commission also has jurisdiction over all m otor carriers as provided in the M otor C arrier Acts of 1931, and subsequent amendments thereto. Code Chapters 68-5; 68-6; 68-7; 68-10 and 68-99.
RULES AND REGULATIONS
T he Commission is empowered to issue all rules and regulations deemed necessary for the enforcement of the provisions of the laws, and such rules and regulations have the same effect as if included in the laws. All rules, however, m ust be fram ed strictly within the scope and authority of the law which they are intended to enforce. Code Sec. 93-302, 307 and 308; see also Code Chapters 68-5 and 68-6 and 10th App. 227.
(N O TE: T he Supreme C ourt will not take judicial cognizance of the fact that the Commission has or has not adopted a rule-- see 148 Ga. p. 1 (3 ).)
C H A IR M A N
T he C hairm an is the Chief Executive O fficer of the Commission; is required to conduct the correspondence of the Commission and see th a t the orders and rules of the Commission are carried into effect and that all officers and employees perform their duties. H e is authorized to issue a t any time orders setting down causes or pend ing m atters for a hearing; to issue in the name of the Commission process and notice to persons or corporations to be affected by the proceedings before the Commission; to issue orders requiring the production of books, writings and documents to be used upon hearings, litigations or business before the Commission; to issue any and all such orders of an interlocutory character as may be necessary or proper for preparing and expedit ing hearings before the Commission; to preside at all meetings of the Commission; to
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preserve strict order and to procure the correct m eaning and sense of the Commission. See Code Sec. 93-206; Rule No. 2 on Duties of Commissioners.
VICE CHAIRM AN
T he Vice C hairm an is authorized to act in the absence or inability of the C h air man. See Rule No. 3 on Duties of Commissioners.
LEGAL COUNSEL
T he Commission is represented by the A ttorney G eneral w hen his services are required. See Code Sec. 93-315.
SECRETARY
I t is the duty of the Secretary of the Commission to record all proceedings of the Commission in the book of minutes, see to the correspondence of the Commission under the direction of the Chairm an; systematically care for and preserve all books and papers of the C o m m is sio n for ready reference and the correct transaction of the Commission's business; have charge of the expenditure of the funds for the expenses of the Commission and its employees under direction of the Commission, and have general supervision of the offices and employees of the Commission subject to direction of the C hairm an and the C o m m ission. See Rule No. 7 on Duties of Commissioners and employees.
RATE EXPERT
I t is the duty of the R ate E xpert to keep himself fully inform ed touching rate con ditions and rate problems as existing, and as new conditions arise or changes occur or are proposed from time to time and to furnish the Commission expert inform ation and advice on all m atters brought before it involving rates, as well as such other general or special work of the Commission as m ay be required by the Commission or by law. See Rule No. 4 on Duties of Commissioners and employees.
CHIEF U TILITIES ENGINEER
T he Chief U tilities Engineer performs similar duties to those of the R ate Expert in the U tility D epartm ent w ith general supervision over accounting, valuation and field engineering work, subject to direction of the C hairm an and the Commission.
EMPLOYEES
T he Commission is empowered to employ during its pleasure such officials, experts, engineers, statisticians, accountants, inspectors, clerks and employees as it m ay deem necessary to carry out the provisions of the Acts, or to perform the duties and exercise the powers conferred by law upon the Commission. See Code Sec. 93-207, 209, and 308.
APPLICATIONS, PETITION S AND COM PLAINTS
All form al complaints, petitions or applications made before the Commission must be stated in w riting plainly and distinctly and the items thereof must be numbered. (M otor C arrier Applications for Certificates of Public Convenience and Necessity must
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be made on printed forms provided by the Commission, must be sworn to and certain fees paid. -- See M otor C arrier Rules and Safety Regulations) -- W hen filed w ith the Commission they are stam ped received, docketed and duly assigned fo r hearing as provided by the rules of the Commission, unless in the discretion of the Commission the m atter can be handled informally without a hearing. Informal complaints may be made by letter or in person, and are given prom pt attention by the Commission and its em ployees in an endeavor to bring about satisfaction of the complaint w ithout a formal hearing. (See R ule 15 of G eneral Rules applicable to utilities, and R ule 91 of G eneral M otor C arrier Rules.)
ORDERS TO SHOW CAUSE
In m atters initiated by the Commission on its own motion either with or w ithout com plaint, a rule nisi or order to show cause is issued under the signatures of the C h air man and Secretary against the persons, companies or corporations affected, reciting the m atter involved and fixing the time and place on which a hearing will be had. In all such m atters notice is given as provided by the rules of the Commission, reciting the penalty provided by law or failure to m ake response as ordered.
SUBPOENAS
The Commission has power to subpoena witnesses and compel their attendance upon hearings before the Commission. See Code Sec. 93-505 and 506.
D E P O S IT IO N S
The Commission, or any party, may, in any investigation, cause the deposition of witnesses residing w ithin or w ithout the State to be taken in the m anner prescribed by law for like depositions in Civil Courts. See Code Sec. 93-508.
ORDER OF PROCEDURE
Persons appearing before the Commission are not required to be represented by legal counsel and are perm itted to be h eard in such m anner and order as is most con venient and agreeable to all parties concerned and th at will enable the Commission to arrive at a just conclusion of the m atter in question, unless otherwise directed by the Commission. All m atters heard by the Commission w hether by respondent, applicant, petitioner, intervenor, protestant, complainant or defendant, may be heard in person or by attorney or by w ritten arguments and their testimony may be w ritten, or oral, or by affidavit. If affidavits are offered, however, they shall be served upon the opposing party, his counsel or agent having control of the case at least three days, and all counter affidavits a t least twelve hours before the date set for the hearing.
EVIDENCE
T he Commission is n o t required by statute to be bound by any strict technical rules of pleading and evidence b u t will use such discretion as it m ay see fit to facilitate its efforts to ascertain the facts bearing upon the rights and justices of the m atters before it, due care being taken to guard against any injurious surprises. (See Code Sec. 93-501; also 183 Ga. p. 682.) T h e prin ted reports of the Commission are admissible
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in the courts of the State w ithout proof. O ther records of the Commission are admissible when certified to by the Secretary of the Commission. See Code Sec. 93-504.
APPEARANCES
All m atters coming on for hearing before the Commission in regular session are called by the Chairm an in the order in which they are docketed and all appearances are entered upon the record by the Secretary, with a notation in whose behalf the ap pearance is made.
HEARINGS AND N OTICE
The Commission has authority to conduct formal hearings on all applications, petitions or complaints, or in m atters which the Commission initiates on its own motion, and in all such hearings notice is required to be given to the persons or corporations interested in or affected thereby ten days before the hearing, except in cases for the fixing of joint rates where thirty days' notice shall be given for an opportunity to be heard. N otice of hearing on m otor carrier applications is required to be published once in the Fulton County D aily R eport ten days before hearing. Notice of hearing on stock and bond applications is required to be published in such newspapers and at such times as the Commission m ay direct. T h e C hairm an of the Commission is authorized a t any time to issue orders assigning or continuing causes or pending m atters for hearing. The Second and F ourth Tuesdays in each m onth have been fixed by the Commission as the regular public hearing dates of the Commission. H earings begin at ten o'clock A. M. on said dates and all applications, petitions or complaints filed with the Commission prior to the Second Tuesday in each m onth are required to be scheduled for hearing either for the Fourth Tuesday or some succeeding date. If filed w ith the Commission subsequent to the Second Tuesday in the month and prior to the Fourth Tuesday in the month they are scheduled for hearing on the Second Tuesday in the following month, or some subsequent date thereto. Hearings m ay be continued from day to day or to any subsequent date to th at for which assigned as the Commission in its discretion may direct, until concluded. T he Commission m ay conduct hearings in different parts of the State, when, in the opinion of the Commission, such hearings will best serve the interest and convenience of the public. A full and complete record shall be kept of all proceedings had and all testimony shall be taken down by the official reporter ap pointed by the Commission.
R E H E A R IN G -- R E C O N S ID E R A T IO N
By virtue of the au th o rity vested in the Commission by Act No. 361 of the G eneral Assembly approved M arch 9, 1945 (See Code Sec. 93-501, 1947 Pocket P a rt), relating to rehearing, reconsideration and oral argum ent procedure on all orders that are entered, the Commission on Ju ly 30, 1945 am ended G eneral R ule 15 of the G eneral Rules appli cable to Railroads and U tilities and R ule 91 of the G eneral M otor C arrier Rules by adding the following paragraph thereto:
"If any party of record in a m atter decided by the Commission in a formal pro ceeding be dissatisfied with the order or decision of the Commission, application shall be made within ten days from notice thereof by w ritten petition to the Commission for rehearing, reconsideration and oral argument, alleging with particularity the matters claimed to have been erroneously decided and the alleged errors and the relief sought,
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together with a certificate that a copy of such petition has been furnished all parties of record. If, in the opinion of the Commission, good cause has been alleged in said petition for rehearing, reconsideration and oral argum ent the Commission shall, w ithin thirty days, either assign such petition for hearing or conference, or reopen the original hearing for introduction of additional evidence and give all parties of record ten days notice thereof. Such petition shall serve as a supersedeas, and pending final order or disposition thereof, the original order shall be stayed."
ORDERS
A m ajority of the Commission is necessary to transact any business and all actions or orders, issued by the Commission, m ust be recited as " By the Commission" and shall be authenticated by the official signatures of the C hairm an and the Secretary. All actions of the Commission are concluded as a result of a m ajority vote of the Commission on m atters under consideration in executive session. Any m atter published by an individual m em ber of the Commission is declared to be his individual act or declaration, and not the act of the Commission, unless cited on its face th at the Commission has so ordered or decided. See Rules Nos. 8 and 9 on Duties of Commissioners.
O P IN IO N S
T he Commission is also relieved from rendering form al opinions on m atters heard and determined, unless deemed needful; however, every member of the Commission must in all cases reserve his opinion and in no way commit himself in advance touch ing the merits of any m atter or question to be passed upon by the Commission, unless the facts and evidence are all submitted and the Commission has gone into executive session for the purpose of taking action-thereon. See Code Sec. 93-501; also R ule No. 5 on Duties of Commissioners.
In all m atters which relate to the making of rates and which may become the sub ject of litigation no member shall make any statem ent after such m atter has been decided by the Commission w hich m ay be or is liable to be treated as an admission prejudicial to the action of the Commission. In all cases and in all questions any member may file his dissenting opinion when in the minority, or his reasons and ground for his opinion when in the m ajority. See R ule No. 5 on Duties of Commissioners.
ENFORCEMENT OF ORDERS
T he Commission is authorized to institute suits in the courts to enforce its orders and rules and regulations, w ithout notice, and after the institution of suits there can be no settlem ent thereof w ithout the consent of the Commission. See Code Sec. 93-416 and 417.
ENFORCEM ENT OF LAWS
T he final authority in the enforcement of the laws over w hich the Commission has jurisdiction is in the courts, as w ith any other law or statute. T h e Commission can only issue adm inistrative orders. W hen the auth o rity or justness of such orders are either questioned, ignored, disregarded or violated they are subject to enforcement, construction or injunction by the courts. There are numerous penal provisions in the
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laws over which the Commission has jurisdiction, and violators are subject to penalties and criminal prosecution. See Code Sec. 93-416 and Sec. 93-9901, et. seq.
C O U R T PROCEEDINGS AGAINST COM M ISSION T h e usual proceeding against the Commission is by injunction. T h e petition of certiorari cannot be brought against the Commission when its functions are not judicial. M andam us m ay be bro u g h t against the Commission only w hen it is alleged th a t the Commission has acted in a capricious or a rb itra ry m anner am ounting to abuse. See 128 Ga. p. 207; also 181 Ga. p. 75; also Code Sec. 68-621.
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HISTORICAL CHRONOLOGICAL LIST OF ACTS OF THE GENERAL ASSEMBLY RELATING TO COM M ISSION ACTIVITIES
(Inform ation)
For the benefit of the practitioner desiring to examine the original Statutes, the various Acts are here briefly summarized in the order of their enactment.
T he G eorgia Public Service Commission is one of the oldest regulatory commis sions in the U nited States, its creation antedating the Interstate Commerce Commission by eight years.
By A ct No. 269, P a rt I, T itle 12, of the Acts and Resolutions of the G eneral Assem bly of the State of Georgia in 1879 the R ailroad Commission of Georgia was created. The original Commission consisted of three members, appointed by the Governor. The term of office was fixed at six years, which term still prevails.
T he original Act empowered the Railroad Commission w ith jurisdiction over rail road rates and charges, and to some extent a degree of authority over railroad service. T h at Act prohibited rebates or discrim ination and its prim ary purpose was twofold, first, to prevent the charging and collecting by the railroad companies of excessive freight rates or passenger fares, and second, to prevent discrimination resulting from the generally prevailing practice of granting lower rates or concessions to the larger shippers.
T he first order of the Georgia R ailroad Commission establishing a scale of rates for railroad companies was issued early in the spring of 1880, becoming effective about M ay 1st of th a t year.
T he original Act of 1879 required the Commission to give the railroads 30 days' notice of any proposed joint rates and also to hold hearing thereon, and required that the Commission prescribe the division of such joint rates between the involved carriers.
T he Commission was given general authority to investigate the books and accounts as well as authority to prescribe such rules as appeared necessary to properly govern the conduct of the carriers over w hich the Commission's jurisdiction extended. T he Commission was also given authority to issue subpoenas and to require testimony.
T he original A ct of 1879 provided certain penalties for violations and generally speaking those penalties are still the applicable requirem ent of the statute.
By A ct approved D ecem ber 18, 1890, following the creation of the In terstate Com merce Commission in 1887, the Georgia Commission was specifically directed to present to the Interstate Commerce Commission any conditions involving interstate rates which the Commission felt would be of interest to, or have an effect upon, the citizens of the State of Georgia.
By Act approved August 31, 1891, the Act of 1879 was amended to perm it the R ailroad Commission of Georgia to prescribe the location and to require the construction of depots, either freight or passenger.
By A ct approved O ctober 16, 1891, the A ct was fu rth er am ended to authorize the Commission to institute suit for violation of its rules and thus invoke the penalties pro vided in the original statute.
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An A ct approved O ctober 17, 1891, authorized the Commission to inspect railroad tracks and require th at they be safely m aintained, and a separate Act likewise approved O ctober 17, 1891, extended the Commission's jurisdiction to cover the storage charges of the railroad companies.
By A ct approved O ctober 21, 1891, the Commission's authority was extended to include the express companies and the telegraph companies. This was the first enlarge m ent of its jurisdiction to include public utilities other than railroad companies.
By A ct approved O ctober 15, 1891, the R ailroad Commission was empowered w ith authority to prevent unjust discrimination between the railroad companies themselves, th a t is to prohibit one railroad com pany from discrim inating in favor of another rail road company in connection with its term inal usage or in any other manner. By Act approved O ctober 16, 1891, the railroad companies were required to trace shipments of freight under certain conditions. A ccordingly the year 1891 witnessed a considerable broadening and strengthening of the regulatory powers of the Commission.
T he jurisdiction of the Commission continued under the statutes outlined until 1905, when by Act approved August 23, 1905, the Commission was empowered to re quire the carriers to prom ptly receive and deliver freight. This Act was the result of agitation with respect to so-called reciprocal demurrage. At that time the rail carriers were not affording the p rom pt and adequate service w hich is common today and this Act was designed to secure for the public more adequate and efficient service.
By Act approved August 21, 1906, following the historical Hoke Smith-Joe Brown incident, the Legislature amended the original 1879 Act to provide th at the three Rail road Commissioners should be selected by the voters of the State.
By Act approved August 22, 1907, the composition of the Commission and its powers were further changed. This Act of 1907 provided th at the Commission should consist of five members instead of three, to be elected by the qualified voters of G eorgia as pro vided in the 1906 Act. The statute further extended the jurisdiction of the Commis sion to street railroads and street railroad companies; docks and wharves; terminals and terminal stations; cotton compresses; telegraph and telephone corporations or companies; gas; electric light; and power companies.
This A ct fu rth er broadened the powers of the Commission so as to give it authority to require, in some cases, an extension of the physical properties of the companies over which it exercised jurisdiction and also extended to the Railroad Commission jurisdiction over the issuance of stocks and bonds by the companies subject to its jurisdiction.
Basically the Commission today operates, so fa r as railroads and utilities are con cerned, under the statutes heretofore described.
T he Commission continued under those basic statutes until 1922 when by Act approved A ugust 21, 1922 the name of the R ailroad Commission was changed to the Public Service Commission, and under that statute the utilities then regulated by the Commission were required to pay a fixed fee to cover the expenses of the Public Service Commission. This sum is fixed at $70,000 per annum , to be divided am ong the various utilities subject to regulation in proportion to their total taxable values. Prior to the passage of the 1922 A ct the expenses of the R ailroad Commission were borne from the general treasury.
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By A ct approved A ugust 26, 1925, w hich am ended an A ct approved A ugust 13, 1924, the jurisdiction of the Commission was extended to include motor-busses and track less trolleys operated by all electric street, suburban or interurban railroad companies then or thereafter incorporated under the laws of this State.
By Act approved February 22, 1939, Section 19-205 of the Georgia Code of 1933, providing for suspension of any Commissioner from office by order of the Governor, was repealed.
By Act approved M arch 20, 1943 the Legislature submitted to the voters of the State a C onstitutional A m endm ent under which, following its ratification a t the 1943 General Election, the Commission became a Constitutional body.
Jurisdiction over For H ire M otor Carriers was first placed in the Public Service Commission by Act approved August 29, 1929, which Act, however, was subject to litigation and to all intents and purposes was found to be unconstitutional by decision of the Suprem e C ourt of Georgia. Following this the Legislature, w hich was in session at the time the Supreme C ourt issued its decision, by Act approved M arch 31, 1931, enacted a new law governing M otor Carriers For Hire, and which statute included both the Common Carriers and the Private or C ontract Carriers, and placing this new form of transportation under the jurisdiction of the Public Service Commission. By separate Act, approved M arch 31, 1931, the load, height, w idth and speed of for hire motor vehicles was prescribed and the Commission given certain powers w ith respect thereto. Thereafter, by Act approved August 27, 1931, a new statute was enacted to govern M otor Common Carriers For H ire differing in some respects from the Act approved M arch 31, 1931, b u t w hich la tte r act rem ained in effect as to the Private or C ontract M otor Carriers for hire.
By A ct approved M arch 21, 1933 the C o n tract C arriers A ct of 1931 was amended to exempt from Regulation R ural Mail Carriers hauling not more than five passengers between points upon their route and by A ct approved M arch 11, 1937 the M otor C arrier Acts were amended to perm it suits to be instituted jointly against insurance companies and m otor carriers covered by such insurance. By Act approved M arch 29, 1939 the Private or C ontract C arrier Act was amended to increase from 10,000 to 18,850 pounds the amount which could be hauled to or from farms by certain exempted operations. This Act was further amended in 1943 by including peanuts in the shell and peaches as exempted commodities.
By A ct approved at the 1937-38 session of the G eneral Assembly, as am ended in 1947, the Commission is authorized to consum mate reciprocal agreem ents w ith other states as to fees and license of m otor vehicles operated by common and contract carriers.
An Act approved M arch 9, 1945, provided that if any party of record in a m atter decided by the Commission in a formal proceeding be dissatisfied with the order or decision of the Commission application may be made within ten days from notice thereof by w ritten petition to the Commission for rehearing, reconsideration and oral argu ment.
By A ct approved M arch 27, 1941, the M otor C arrier Laws were am ended as to size and w eight of m otor vehicles, including cargo.
By an A ct approved February 17, 1950, the powers of the G eorgia Public Service Commission were enlarged so as to authorize said Commission to issue certificates of
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public convenience and necessity to telephone corporations, companies, or persons, firms or associations owning, leasing, or operating a telephone service or telephone line in this State and to cooperative, nonprofit, membership corporations, or limited dividend or m utual associations as defined in the Act.
By A ct approved F ebruary 15, 1950 Code Section 68-609 applicable to m otor car riers was amended prohibiting the Commission from granting a m otor carrier certificate of public convenience and necessity over a route already served until the existing certi ficate holder has been given reasonable time to remedy any existing inadequacy in service.
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LETTER OF TRANSM ITTAL
T O HIS EXCELLENCY, GOVERNOR HERMAN TALMADGE:
As provided by law, the G eorgia Public Service Commission submits herew ith its 79th Annual R eport of the regulatory activities of the Commission for the year ending December 31, 1951.
There was no change in the personnel or organization of the Commission during the year, M att L. M cW horter having been re-elected Chairm an and Perry T. Knight, Vice Chairm an, for the two year term beginning August 27, 1951. The present per sonnel and staff of the Commission is as follows:
M att L. M cW horter, Chairman Perry T. K night, Vice Chairm an Allen Chappell, Commissioner W alter R. M cDonald, Commissioner James A. Perry, Commissioner A. O. Randall, Executive Secretary N. Knowles Davis, Chief Engineer Sam H. Flint, Transportation Rates Expert Frank A. Knox, R eporter and Personnel Officer R obert B. Alford, Service Engineer Dave Benson, Transportation Rates Specialist Frank G. Heald, Auditor James L. Bodeker, Field Engineer Robert N. Fellows, A ccountant
T he only change on the staff of the Commission during the year was the resignation of H. H. Cabaniss, Commission Auditor, and Carl Woods, Field Engineer, to accept other positions. Frank G. Heald was employed on April 23, 1951, to succeed Mr. Cabaniss as Auditor, and James L. Bodeker was employed on July 9, 1951, to succeed M r. Woods.
T h ere was no change during the year in the personnel of the Commission's M otor C arrier Field Inspectors, whose long and experienced services are highly valued by the Commission, and who are as follows:
C. C. Clay, Atlanta, Georgia H. E. Conley, Newnan, Georgia A. J. Fort, Morrow, Georgia W. M. Lee, Augusta, Georgia N athan B. M arcus, Savannah, G eorgia Frank E. W atson, Milledgeville, Georgia T . S. Tyson, Swainsboro, G eorgia
M ention is also m ade of the following lady employees of the Commission, the first four named having been w ith the Commission for a num ber of years and whose valued services would be difficult to replace due to their long experience and faithful reliability:
Mrs. Frances Kreeger Mrs. Opal Magill
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Mrs. Emily M artin Mrs. Mozelle Colquitt Mrs. Hazel T urner Mrs. N ancy Simmons Mrs. Mae Montgomery Mrs. Joy Payne Mrs. Cecile B. W illiams Mrs. Juanita Greer Mrs. Betty Williams
D uring the year the Commission conducted 467 public hearings, and disposed of 744 formal m atters and 763 informal m atters pending before the Commission. T here were also 425 informal orders relating to m otor carrier insurance issued by the Secretary by authority of a Commission resolution.
M OTOR CARRIER ENFORCEM ENT
T he Commission is charged w ith the responsibility of collecting and accounting for m otor carrier certificates and license fees. T he fees collected during the year were as follows:
5,233 regular license plates @ $25.00 each plate ........................ $128,825.00 13,519 reciprocal plates @ $1.00 each plate _____ __ ___ ____ 13,519.00
1,094 pick-up and delivery license plates @ $1.00 each p l a t e ____ 1,094.00 C ertificate fees at $35.00 each and certificate transfer fees a t $7.50 each ---- ----------------------- ---------------------- --- ----------------------- 1,375.00
T O T A L --- ---- -------------------------------------- --------------- ----- $144,813.00
Enforcement of the M otor C arrier Laws has been greatly facilitated with uniform adherence by all states signatory to the southwide ten-state reciprocal agreement adopted in 1949. This agreem ent has worked so well and has received such wide com m endation throughout the country th at it is reproduced in this R eport as a m atter of inform ation and as a m ethod of publication thereof. M ention is m ade of the fact th a t a m em ber of this Commission, W alter R. M cD onald, is also C hairm an of the State R eciprocal Commission, and th at the final consummation of this agreem ent has been the result of his persistent and untiring efforts. No new reciprocal agreements have been entered into since our last report, although efforts have been made to effect agreements with the states of Arkansas and Oklahom a w ithout success. The Executive Secretary of the Commission, A. O. R andall, has assisted in the preparation and interp retatio n of reciprocal agreem ents as well as in all legal problems relating to m otor carrier operations.
He has for a number of years been in charge of enforcement of the M otor C arrier Laws and the M otor C arrier Rules and Safety Regulations adopted by the Commission, and has had supervision over the work of the M otor Carrier Inspectors employed by the Commission. The duties of these inspectors have been enum erated in previous reports. In addition to day-to-day inspections, joint inspections are made along with represent atives of the M otor Vehicle U nit of the D epartm ent of Revenue, and the State H igh way Patrol at all of the main highway intersections of the state annually. These are known as round-the-clock inspections of all trucks and busses which pass the point of inspection. These inspections determ ine w hether or not the vehicle is being operated
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as required by law and the rules of this Commission, particularly as to display of proper identification plates, safety of operation and compliance w ith certificate authority. 19,719 identification plates were issued by this Commission during the year for operation of equipment in the transportation of persons and property "for hire", both in intra state and interstate commerce. T h ere were 118 fixed route certificated intrastate common carriers of passengers, 55 fixed route certificated intrastate common carriers of property, 285 no-fixed route certificated intrastate common carriers of property, and 64 certificated intrastate contract carriers of property operating in the state during the year, making a total of 522 intrastate carriers. In addition to the intrastate carriers there were approximately 600 motor carriers of persons and property certificated by the Interstate Commerce Commission, and operating over the highways of the state solely in interstate commerce under Registration Permits issued by this Commission during the year, making a total of 1122 m otor carriers operating both in intrastate and inter state commerce. Complaints are received daily from the public against these carriers on account of inadequacies of operating and station services, failure to pay claims of loss and dam age and for overcharges and num erous other violations of the Rules of the Commission. M any of these complaints are referred to the Commission's Inspectors for special investigation which result in satisfaction of the complaint without further action by the Commission. A lthough a violation of the M otor C arrier Acts is a misde m eanor and also subjects the violator to injunction proceedings it should be noted th at it rarely is necessary to resort to these proceedings for enforcement.
M OTOR CARRIER RULES AND REGULATIONS
As stated in the Preface to this volume the M otor C arrier Rules and Safety R egula tions adopted and prom ulgated by the Commission are published in a separate booklet and have been available continuously for distribution to motor carriers operating under the jurisdiction of the Commission and to the public and for th at reason are not repro duced in this Report.
A ttention, however, is directed to an am endm ent of M otor C arrier Rules Nos. 27 an d 35 providing for increased m inim um m otor carrier bodily in ju ry liability and p rop erty damage liability insurance limits to $10,000.00 for injury to or death of one person, for both freight and passenger carriers, and $20,000.00 for injuries to or death of all persons injured in any one accident by freight equipm ent, and with minimum limits for injuries to or death of all persons in any one accident for passenger vehicles seating 7 passengers or less $30,000.00, 8 to 12 passengers $40,000.00, 13 to 20 passengers $60,000.00, 21 to 30 passengers $80,000.00, 31 passengers or more $100,000.00, and $5,000.00 property damage for both freight and passenger carriers, to become effective O ctober 31, 1951. This am endm ent was approved August 9, 1951.
A ttention is also directed to am endm ent of Rule 2 4 (b ) of the Commission's M otor C arrier Rules and R egulations by order dated Decem ber 11, 1951, relating to transfer of certificates, which in effect provides that the transferee shall only be liable to credi tors of the transferor when a full list of the creditors and am ount of indebtedness due by the transferor is attached to the application for transfer. In approving this am end m en t the Commission stated in p a rt as follows:
"It has not been our intent or purpose to require more of a purchaser of a certificate than that required by law. Furtherm ore, it has not been our intent or purpose to force any purchaser, by reason of our rules and regulations, to
17

pay more for certificates purchased than it has agreed to pay, -- T o do other wise, would place an unreasonable burden on the certificate holder and jeop ardize or im pair the ability of the new owner of the certificate to render an adequate, safe and dependable transportation service. -- W hile the rule seeks to accomplish a paym ent of debts of the transferor incident to the operation w ithin a m eeting of the minds, it is not the intention of the rule nor is it the in tention of the Act to make the transferee unqualifiedly liable w ith its inevitable detrim ental consequence. To do such would place an inhibition upon the transferee both to provide service commensurate w ith the provisions of the Act and to m eet the financial obligations of the service of the carrier required by the Act."
BUS SERVICE
Bus service and station facilities provided during the year have, in the main, been reasonably satisfactory, but on account of the great increase in travel by private auto mobile some of the smaller bus companies operating short routes have been forced to discontinue service altogether.
M ention was m ade in the last report of the approval by the Commission of an application for transfer of all certificates of public convenience and necessity from Southeastern Greyhound Lines of Lexington, Kentucky, to The Greyhound Corporation, dba Southeastern Greyhound Lines Division of The Greyhound Corporation, of Chi cago, Illinois. Said certificates were transferred on Ja n u a ry 1, 1951.
T he Greyhound Corporation has been operating in this state under intrastate certificates in the trade name of Teche Greyhound Lines Division of The Greyhound C orporation since 1942 and has been operating said Division as a self-insurer since Ju ly 29, 1948. This Com pany also performs charter service solely in interstate commerce w ith several other operating Divisions. O n M ay 18, 1951, th e Commission issued an order authorizing The Greyhound Corporation to become a self-insurer in all of its operating divisions, it having been shown to the Commission th a t there were fixed assets in the state other than rolling stock in the am ount of $404,337.61, w ith bank ac counts in the state totalling approxim ately $150,000.00 as an average.
T he m ajority of bus operations in the state under the M otor C arrier Acts are inter city, but there are a few motor carrier bus operations which are strictly suburban, principally in the A tlanta, Augusta, Columbus and M acon areas. P rior to A ugust 1, 1951, the A tlanta suburban service was provided by Suburban Coach Company, DeKalb Suburban Lines, Inc., Interurban T ransit Lines, Inc. and A tlanta N orthern Lines, Inc., b u t on A ugust 1, 1951, all certificates held by Suburban Coach C om pany and D eK alb Suburban Lines, Inc. were transferred to the M etropolitan T ransit Company, a wholly owned subsidiary of the A tlanta Transit Company. Atlanta Transit Company operates as a street railway company in A tlanta, Georgia, under the Street Railway Act, using principally electric trolleys, whereas the M etropolitan T ran sit C om pany is a m otor bus company operating m otor buses under the M otor Common Carriers Act of 1931. While this suburban bus service has provided very valuable transportation facilities for the outlying areas of the City of A tlanta it should be recognized that the increase in the numberof automobiles since the w ar has created a competitive condition which has made it. difficult for this company to m aintain financial stability.
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TRU CK SERVICE
As has been the situation w ith reference to the bus companies in the state there has been very few changes in the operating conditions of the regular fixed route truck companies. As stated herein above, there are only 55 fixed route in trastate common carriers of property in the state. Of this num ber only two of the fixed route common carriers of property became involved in financial difficulties during the year, and in both cases the certificates were taken over by other common carriers w ith no perm anent discontinuance of service. O n January 22, 1951, the Commission approved the trans fer of all certificates formerly operated by Elliott T ruck Lines, Inc., bankrupt, to Ben ton R apid Express, and on M arch 26, 1951 the Commission approved th e transfer of all certificates of public convenience and necessity formerly operated by Leverette Freight Lines, Inc., bankrupt, to R obert S. Frolkis, dba Frolkis T rucking C om pany.
P articu lar attention is directed to the issuance on Jan u a ry 25, 1951, of sixteen regular fixed route certificates of public convenience and necessity to the Central of Georgia M otor Transport Company, a subsidiary of the Central of Georgia Railway Company. These certificates were issued in accordance with an order of the Commission previously issued on Septem ber 12, 1950, providing for operations by this com pany of trucks in conjunction w ith the rail operations of the Central of Georgia Railway Com pany for the purpose of picking up shipments at the various concentration points of the C entral of Georgia Railway Company for distribution at way-stations, and for picking up such shipments from concentration points at the regular stations of the railway company for transport by rail. T he certificates issued also provided for other restrictions set out in said order, and as contained in the certificates issued.
O n A pril 18, 1951, the Commission issued a certificate of public convenience and necessity to the Seaboard A ir Line Railroad Company for authority to transport mail, express, baggage, milk, cream and newspapers and such other commodities as are covered by applicant's R ail Passenger Tariffs between Savannah and O m aha, Georgia, over U. S. H ighw ay 80, and on N ovember 30, 1950, issued another certificate to Seaboard Air Line Railroad Company authorizing the transportation of mail, express, baggage, milk, cream , newspapers and such other commodities as are covered by applicant's Rail Passenger Tariffs betw een C uthbert, G eorgia, and the G eorgia-Florida line, via U . S. H ighw ay 27.
T R A N S P O R T A T IO N
General
M any upw ard adjustm ents in bus fares and some reductions in service have greatly increased the num ber of complaints handled by our Transportation Rate Departm ent. These complaints have reached such serious proportions th at they consume a substantial p a rt of our staff's time. Nevertheless the num ber of m atters we handled involving transportation rates and services in 1951 was the highest in the history of the Commis sion. In addition to the m any complex rate adjustm ents listed below, all of which were m ade the subject of form al w ritten opinions, we disposed inform ally of 185 m atters, m any of which required lengthy investigations.
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Docket No. Date

Subject

Disposition

28-R

Jan. 24,1951

Application of Atlantic Coast Line Railroad Company to condemn cer tain property at Savannah

G ran ted

27-R

Feb. 14, 1951

Application of A tlantic Coast Line Railroad Company to discontinue passenger trains numbers 31 and 34 between Climax and Ga.-Fla. State Line

G ran ted

26-R

Jan. 29,1951

Application of Atlantic Coast Line Railroad Company and Central of Georgia Railway Co. to eliminate M ontezum a as interchange point for tariff purposes

Denied

25-R

Jan. 29, 1951

Application of Atlantic Coast Line Railroad Company and Georgia, Southern and Florida Railway to elim inate Haylow as interchange point for tariff purposes

Denied

13-R

Feb. 26, 1951

Application of Seaboard Air Line G ranted subject to Railroad to discontinue passenger p ro v isio n f o r trains numbers 11 and 12 between mail and express Savannah and the Ga.-Ala. State Line

1st Supt. 13-R

M arch 8, 1951

Petition for rehearing, reconsideration and oral argum ent on discontinu ance of S.A.L. RR. passenger trains numbers 11 and 12

Petition assigned for o r a l argu ment

31-R

M arch 26, 1951 A pplication of rail carriers for in D enied b u t charge

creased minimum charge of $2.00 of $1.50 author

on L.C.L. traffic

ized

32-R

M arch 26, 1951

Application of Railway Express Agency to make effective in Geor gia provisions of Supplement No. 22 to Official Express Classification No. 34

G ranted

2nd Supt. A pril 18, 1951 13-R

Petition for rehearing and reconsid eration of discontinuance of S.A.L. RR. passenger trains numbers 11 and 12

Denied

36-R

M ay 10, 1951

Application of Railway Express Agency to cancel certain truck competitive rates

G ranted

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38-R

M ay 10, 1951

Application of rail carriers to cancel G ranted with ex minimum per car charges the same ceptions as or lower than charge shown in Rule 13 of Southern Classification

35-R

M ay 10, 1951

Application of Atlantic Coast Line RR. to discontinue agency at Baconton

Denied

37-R

M ay 10, 1951

A pplication of rail carriers to cancel rates on soapstone and talc from Cartersville, Chatsworth and Tate to Brunswick, Port W entworth and Savannah

Denied

3rd Supt. 9574-A

M ary 10, 1951

Determ ination of application of gen Rates not subject

eral rate increase to any quantity to increase when

rates on naval stores

in CL quantities

41-R

July 12, 1951

Application of rail carriers for in crease in rates on newspapers han dled in passenger service

G ranted

40-R

July 18, 1951

Application of Railway Express Agency for increases in express charges (Ex Parte 177)

G ranted

9393-A

Aug. 9, 1951

Complaint against rail charges on shipments of road building machin ery from Toccoa

Dismissed

Sept. 4, 1951

Application of Georgia RR. & Bank ing Co. to issue $2,240,000 sinking fund debentures

G ranted

43-R 48-R
204-M 205-M 230-M 234-M

O ct. 3, 1951

Application of rail carriers for in creases in freight rates (Ex Parte 175)

Granted with exceptions

Nov. 8, 1951

Application of Central of Georgia Ry. to discontinue passenger trains numbers 15 and 16 between Al bany and Ga.-Ala. State Line

G ranted subject to provisions for ex press

Jan. 29, 1951

Application of DeKalb Suburban Lines, Inc. for revision of fares on its Stone M ountain Line

G ranted

Feb. 14, 1951

Application of Newnan City Lines for increased fares

Granted with conditions

M arch 26, 1951 A pplication of m otor carriers for in creased rates

G ran ted

M arch 26, 1951 A pplication of Bloomfield Bus Line for increased fares

Fares prescribed

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233-M 236-M 277-M 278-M 259-M 275-M
237-M 276-M 275-M
311-M 312-M 313-M 316-M

M arch 26, 1951 A pplication of Suburban T ran sit Lines, Inc. for increased fares

M ay 10, 1951

Application of Simpson T rucking Co. for routing restrictions

M ay 10, 1951

Complaint against motor carrier rates on sodium hypochlorite solution

M ay 10, 1951

Application of motor carriers to modify description in rating on household sprayers or dusters

M ay 10, 1951

Application of Suburban Coach Co. and DeKalb Suburban Lines for in creased fares

M ay 24, 1951 A pplication of m ajor bus lines for in creased fares

June 13, 1951 June 13, 1951

Application of motor carriers of as phalt for increased rates
Application of m otor carriers for in creased rates on household goods

June 25, 1951

A pplication of m ajor bus lines for re consideration of order of M ay 24, 1951, Docket 275-M

July 12, 1951 Ju ly 12, 1951
Ju ly 12, 1951 July 12, 1951

Complaint against motor carrier rates on burial case shipping boxes
Application of R.C. M otor Lines, Inc. to restrict exceptions ratings on caskets and related articles to not apply via its line
Application of Valley Coaches, Inc. for revision of fares on its Cherokee Loop and W rightsboro Road Lines
Application of Southern Coach Lines, Inc. to discontinue portion of its M cFarland Gap Line

G ranted
Dismissed
Dismissed
G ranted
Granted with exceptions
Granted in part (Denied in toto to Atlantic Grey hound C o r p . Southeastern G reyhound Lines and Teche Grey hound Lines) Rates prescribed
Rates, rules and regulations pre scribed O rder modified except for Atlant i c Greyhound Corp., Southeast ern Greyhound Lines and Teche Greyhound Lines
Dismissed
Denied
G ran ted
G ranted

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308-M 309-M 310-M
304-M 306-M 61-M ) 230-M )

July 12, 1951 July 12, 1951 July 12, 1951
July 18, 1951 Ju ly 31, 1951 Dec. 28, 1951

Application of M arietta Coach Co. for increased fares
A pplication of Thomasville Bus Lines. Inc. for increased fares
Application of Southeastern Grey hound Lines for increased express rates
Complaint against schedule of A tlanta N orthern Lines, Inc.
Application of Georgia City Coaches, Inc. for increased fares
Application of motor carriers for ex tension of expiration date in connection with certain rates

Granted with exceptions G ranted
G ranted
Schedule accepted
G ranted
G ranted

Bus Fares
W hen the Sales and Use T a x becam e effective on A pril 1, 1951 the Commission was besieged w ith applications to adjust virtually every local or suburban bus fare in the state. T he Sales T ax Act prohibits the absorption of the tax. Thus on fares of less than 30 cents a com pany would be compelled to collect a whole cent w hich, in all cases, would be in excess of the applicable tax. M ost of the companies proposed to file w ith the Commission fractional fares requiring the collection of an additional penny, but making it possible for the company to retain all of the added 1 cent except th at por tion required to pay the 3 per cent tax. In treating these applications the Commission adjusted the fares so as to preserve as nearly as possible the existing revenues of each company. Instead of perm itting in all cases an increase of 1 cent the Commission generally perm itted some fares of each company to be increased and required other fares of the same com pany to be reduced to the extent necessary to include the sales tax. By weighting each step in the fare structure according to the num ber collected it was possible to approxim ately preserve existing revenues, and in m any cases to avoid adding an odd cent.
However, along w ith the adjustm ent occasioned by the sales tax there were num er ous requests for increased fares from both suburban and inter-city carriers. T he im pact of the m ilitary action in Korea on prices began to be felt sharply by early 1951. Prices of tires, batteries and fuel increased m aterially and virtually every bus line in the state incurred higher wage expenses. O n the other hand the larger lines experienced a substantial increase in the volume of traffic.
E arly in 1951 all of the principal inter-city bus lines filed an application for authority to increase fares from 2 cents to 2.25 cents per route mile; to increase com m uter fares proportionately and to establish a 20 cent minim um fare in lieu of the existing 15 cent m inim um . D u ring the course of the hearings on this application it became apparent th at m any of the carriers were in serious financial difficulty, while on the contrary the three largest lines were enjoying higher earnings than at any time since the end of W orld W ar II. Three other carriers while not operating at a deficit were earning slightly less th an adequate income.
On M ay 24 the Commission issued an order denying any increase to the three

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G reyhound Lines; authorizing a 2.1 cent per mile fare for the three other carriers not operating at a deficit; and granting the requested 2.25 cent per mile rate to all the other applicants. The carriers immediately requested reconsideration and at a further hearing contended that because of competition the smaller lines would be unable to avail themselves of the increased fares authorized unless the Commission should also perm it the large lines to make similar increases. A fter further study the Commission on June 25 revised its order to perm it a 2.25 cent per mile fare for all carriers except the three G reyhound Lines. It appeared advisable to eliminate one of the three rates per mile resulting from the earlier order as some of the com petition experienced by the lines in greatest need of additional revenue came from the carriers w hich had been perm itted the 2.1 cent rate. N o doubt the smaller carriers will lose considerable revenue by their inability to increase fares where they compete w ith the G reyhound Lines, but the financial condition of those lines dictates th at their fares should not be increased unless absolutely necessary to m aintain the integrity of the carriers with which they compete.
Truck Rates
O n Jan u ary 17, 1951 the Class "A" p roperty carriers filed w ith the Commission an application to substantially increase rates and to completely revise the entire motor carrier rate structure, including mileages, commodity descriptions, minimum charges and rate scales. T he petition alleged an extreme emergency and asked for immediate authority to publish and make effective the rates prior to a public hearing, if a hear ing was considered necessary. The Commission denied the request to make the rates effective in advance of a hearing. Subsequently the m otor carriers amended their petition to request a 12/4 per cent horizontal rate increase and to raise the m in im u m charge to $1.50. The evidence presented at the hearing on this case showed th at there had been very large increases in almost every item of expense since the beginning of the m ilitary action in K orea. By order dated M arch 26, 1951 the Commission granted a 9 per cent increase on less than truckload class rate traffic and perm itted the carriers to increase their truckload class rates by 12^2 per cent. C om m odity rates, w hether truckload or less than truckload, were raised 12J4 per cent w ith certain exceptions. The carriers were also perm itted to raise their minimum charge to $1.50.
The household goods carriers again came before the Commission with a request to increase rates. T he basis proposed varied from 12 p er cent to 32 per cent higher than the existing rates. A fter a hearing the Commission perm itted an increase of approxim ately 10 per cent.
The transportation of asphalt by for hire motor trucks has become of increasing im portance in the past few years as the State H ighw ay D epartm ent and road contrac tors depend more and more on this method of transportation.
The asphalt carriers originally established the rail basis of rates and for a time earned a substantial return on investment. Their rates, however, have not been sub jected to any general increases and when the effect of the rise in prices resulting from the K orean action began to be felt these carriers found themselves in an unsatisfactory financial condition. An application was filed with the Commission for authority to in crease rates by 10 per cent. Before the Commission disposed of the application it was amended and a 20 per cent increase was sought. Thereupon the case was assigned for further hearing, after which the Commission issued an order granting an increase
24

slightly less than the 10 per cent originally requested. In this case the Commission found that the railroad rate scales on which the applicants had based their proposed charges were ill designed to reflect m otor carrier costs. Therefore the entire rate structure was revised and uniform rules prescribed for all carriers to avoid discrimination and eliminate controversies which had arisen with respect to certain inconsistent prac tices of the carriers.
O n M arch 22 Clorox Chem ical C om pany filed a com plaint against the Class "A" m otor carriers of property asking the Commission to prescribe rates on the basis of 2 7/2 per cent of first class. T he com plainant's evidence com pared the existing in tra state rates w ith those applying by certain irregular route carriers on interstate single line traffic only. T he evidence failed to show that the existing intrastate rates (which had been prescribed by the Commission over the protest of the carriers) exceeded maxi mum reasonable rates nor did the evidence w arrant any finding of discrimination. The record, however, did disclose the disturbing influence which interstate irregular route carriers are having upon the entire motor carrier rate structure. These carriers do not assume the obligations which this Commission requires of Georgia intrastate motor carriers and it is indeed unfortunate th a t the revenues of the genuine common carriers should be depleted by the actions of these irregular route carriers which skim off the most desirable and profitable traffic by establishing special rates.
Rail Passenger Service
On February 26 the Commission issued an order authorizing Seaboard Air Line R ailroad Com pany to discontinue its passenger trains numbers 11 and 12 between Sa vannah and the Georgia-Alabama State Line (en route to Montgomery, Alabama). This application had been filed on July 3, 1950, and heard in September, 1950. The evidence showed that during the five years since the end of W orld W ar II, passenger revenue on the two trains had consistently declined and for 1950 was less th an half the am ount earned in 1946. In the same period, total revenues dropped more than one-third and despite a reduction in operating expenses resulting from the use of diesel power, the losses more than doubled. T he Commission considered carefully contentions of the protestants that due to various circumstances, passenger revenues would increase and certain expenses would be reduced. An analysis of these prognastications based prim arily on 1949 results showed th at even if all of the assumptions had proven correct there would still have been a loss. By studying more recent operating results m ade available upon request it was revealed that the assumptions had been too optimistic. T he order granting the application required the railroad to provide substitute service for the transportation of mail and express. Subsequently the protestants filed a petition for reconsideration and the Commission postponed the effective date of its order pend ing oral argum ent on the petition. By fu rth er order issued A pril 18 the Commission denied the petitions for reconsideration and authorized the company to discontinue serv ice on M ay 1.
O n February 14 the Commission authorized the A tlantic Coast Line R ailroad C om pany to discontinue operation of its passenger trains numbers 31 and 34 between Climax and the Georgia-Florida state line (en route to Chattahoochee, Florida). There was no opposition to this application, the Georgia operation of the two trains being of little im portance. T rains 31 and 34 connect w ith service of the A ppalachicola N orthern R ailroad Com pany in Florida and the application to discontinue trains num bers 31 and
25

34 was prom pted by the action of the Florida Commission in authorizing the elimination of this connecting service.
Central of Georgia Railway Company applied to the Commission on O ctober 1 for au th o rity to discontinue its trains num bers 15 and 16 o perating between A lbany and the Alabama-Georgia State Line (en route to Montgomery, A labam a). The case was heard on O ctober 25 and on November 8 an order was issued granting the authority requested subject to the condition th at substitute service be provided for the transportation of express. In this case it developed that the C entral of Georgia had extended the operation of the trains into Albany during 1950 (they had previously operated only from Smithville to the state line) and had increased expenses and con tributed to the claim ed loss of $109,651. T h e Commission's staff m ade certain ad ju st ments in operating expenses to reflect this change and to show the results of full time use of more economical diesel power which actually had been used only p art of the time. W ith these adjustm ents, the loss aggregated $78,421.00 and there was no indica tion that it could be offset by any reasonably anticipated increase in volume of traffic.
Railway Express
R ailw ay Express Agency, Inc. again applied for rate increases. O n A pril 18 it asked authority to make effective on Georgia intrastate traffic the increase of 20 cents p er shipm ent w hich the In terstate Comm erce Commission had approved as to interstate traffic under its D ocket Ex Parte 177 on A pril 13. O riginally the Agency h ad p eti tioned the Interstate Commerce Commission for authority to make substantial increases in all its rates and charges and to revise its entire rate structure. It sought interim relief, however, to offset an I 8 J/2 cents p er h our wage increase granted to 90 p er cent of its employees. It appeared from the record in the case th at 20 cents per shipment on Georgia intrastate traffic was slightly more than necessary to offset the Georgia proportion of the wage increase, but that w ith the full 20 cent increase the earnings in Georgia would not be excessive. Therefore, in the interest of uniform ity we author ized the same increases as had been p erm itted on interstate traffic.
Rail Freight
Following a hearing held on M arch 15, 1951, the Commission issued an order denying the rail carriers' application to increase the minimum charge per shipment from $1.43 to $2.00. In this case the carriers failed to show the revenue effect of the proposed increase and otherwise failed to substantiate the reasonableness of proposal. T he order of the Commission was w ithout prejudice to the right of the carriers to increase the charge to $1.50, the same as th at heretofore approved for regular route motor carriers.
The Commission also denied an application of the carriers to cancel certain com modity rates on soapstone and talc from Cartersville, Chatsw orth and T ate to Port W entworth and Savannah.
In its order in Docket 9574-A issued August 23, 1950, the Commission had ap proved a 10 per cent increase in freight rates w ith certain exceptions. O ne of the exceptions related to carload shipments of naval stores. Late in 1950 the carriers undertook to publish a revised tariff in which the rates on naval stores, any quantity, were shown including the 10 p er cent increase. This had the effect of raising the rates
26

on some carload shipments of naval stores and the Commission thereupon issued a rule nisi requiring the carriers to show cause why it should not prescribe one scale of rates for carload traffic and another for less carload traffic. In its o rd er issued M ay 10, 1951 the Commission required the publication of carload rates n o t including the 10 p er cent increase but did perm it the carriers to establish higher carload minimum weights in connection with the lower rates.
The rail carriers began their fourth round of post war general rate increases early in 1951. O n M arch 21 a petition was filed in w hich au th o rity was sought to increase rates by 2 per cent corresponding to the authorization of the Interstate Com m erce Commission contained in its order of M arch 12 in E x P arte 175. This applica tion was not assigned for hearing immediately and thereafter the Interstate Commerce Commission issued a fu rth er order authorizing a 6 per cent increase to be applied as a surcharge on total freight charges ra th e r th an as an integral p a rt of the rates. O n A ugust 13 the carriers filed a supplem ental petition seeking to m ake the 6 per cent increase effective in Georgia. This case was heard on September 5 and on October 3 we issued an order approving the 6 per cent increase except on clay or shale, scrap iron, pulpwood, liquid petroleum products and on marble moving between Tate and Canton and Nelson. T he evidence again showed substantial increases in railroad wages and in the prices of most fuel, materials and supplies. O nly two weeks after the effective date of the 10 per cent increase w hich was granted in 1950 the railroads were required to increase wages of certain employees by 23 cents per hour and subsequent negotiations resulted in an additional 11 cents per hour wage increase. T h e evidence showed that the estimated revenue gains resulting from the proposed increase would be slightly less than the am ount required to offset wage increases. T h e financial condition of the G eorgia carriers was m uch the same as th a t of all railroads in the Southern region and while the southern lines were in better financial condition than railroads in the N orth or the West, it was apparent that some additional revenue was required to maintain a sufficient rate of return.
Participation In Interstate R ate Cases
On July 26 we finally got a decision from the Interstate Commerce Commission in the class rate case w hich has been pending since July, 1939. T his decision required the railroads to file a uniform classification of freight not later than December 1 to become effective early in 1952. T h e Federal Commission prescribed a scale of class rates to be applied in connection w ith the uniform classification m uch the same as the scale proposed by it in November, 1949, to which we agreed. Later in the year the railroads requested the Interstate Commerce Commission to postpone until February 1 the date for filing the uniform classification. The carriers represented to us th at a much better classification could be filed if the postponement were granted, and after conferring w ith other state commissions we reluctantly advised the Interstate Com merce Commission th at we would not object to the postponement sought. We, however, went firmly on record that no further delays should be allowed for any reason whatso ever. In our letter to the Interstate Commerce Commission we also outlined the pro cedure w hich we felt should be followed to assure the most expeditious term ination of this case, while at the same time protecting the rights of shippers and carriers alike. In November the Interstate Commerce Commission issued an order granting the exten sion of time requested by the railroads and adopting each of our recom m endations as to procedural handling. T h e classification will be filed on February 1, 1952 to become
27

effective on M ay 30, 1952. Thus unless there are some unforeseen developments this case should finally be concluded next year and the South will at last obtain fair freight rates.
O n A pril 13 the In terstate Comm erce Commission issued its order in M C-C-968-- D eterm ination of Exempted A gricultural Commodities. We had participated in this case prim arily for the purpose of assisting our agricultural interests in the presentation of their testimony and had taken no overall position in the investigation. The order of the Interstate Commerce Commission listed certain commodities, the transportation of which by motor vehicle in interstate commerce would be exempt from regulation. It is rath er surprising th a t raw peanuts were not considered as an exem pt com m odity and we have conferred w ith peanut growers and shelters to determine w hether we should undertake to ask for reconsideration or otherwise challenge the order. T h ere is some difference of opinion am ong the growers and we have not yet reached a decision as to w hat action we will take.
After we objected to the railroads' proposal to institute more rigid packing re quirements for peaches the carriers amended their suggested rule. The peach growers still objected and in September the Railroad Committee disapproved the proposal. However, a new proposal was issued toward the end of the year and will be made the subject of public hearings before the Railroad Committee in 1952. We will continue our efforts to assist the peach growers.
The C entral of Georgia Railway Com pany in 1950 filed an application to acquire control of the Savannah and A tlanta Railway Company. The case was heard by the Interstate Commerce Commission and we decided not to participate in the initial hear ings. An exam iner's proposed report was distributed recom m ending disapproval of the acquisition of the line, but subsequently the Interstate Commerce Commission issued its order approving the application. A petition for reconsideration was filed which led us to believe th a t unless the application of the C entral of G eorgia Railw ay Com pany was approved the im portant line of the Savannah & A tlanta Railway which serves the State Port might be acquired by interests which would not be sympathetic with Geor gia's needs. Accordingly, we sought and obtained leave to intervene in the case before the Interstate Commerce Commission and filed a reply to the petition for reconsidera tion urging th at the application of the C entral of Georgia Railway Company be granted. The Interstate Commerce Commission denied the petition for reconsideration and granted the application.
In September the Interstate Commerce Commission held a pre-hearing conference at Salt Lake City, U tah with respect to its investigation of transcontinental railroad class rates. We arranged jointly w ith other state commissions to have a representative present and secured a copy of the transcript of the conference in order that we may be in position to particip ate fully in this im portant case.
On April 26 the Interstate Commerce Commission issued a final order in the complaint filed by certain peanut growers concerning rates through the Port of Sa vannah. It will be recalled that this complaint dealt prim arily w ith rates on past ship ments on which reparations were sought. The Interstate Commerce Commission found th at the rates had been reasonable and dismissed the complaint.
Georgia has been w ithout any coastwise steamship service since the early p art of
28

W orld W ar II. Ocean Steamship Company, which formerly rendered this service, has not been able to restore it because of greatly increased costs of operation. Early this year Ocean Steamship Com pany sought authority to institute so-called seatrain service under its outstanding w ater certificate between New York and Savannah. Seatrain service is the transportation of loaded railroad freight cars on a m ultiple deck ocean going ship equipped with necessary railroad tracks.
We participated in this case in support of the application which would restore coastwise service to Savannah. The Chairm an of the Commission testified at a hearing held on June 12 urging th a t the application be granted. W hen it appeared th a t con siderable delay would be experienced in disposing of the application for perm anent authority Ocean Steamship Com pany applied for tem porary authority to render service through the facilities of Seatrain Lines, Inc. We supported this application but the Interstate Commerce Commission denied it. Subsequently a new application for tem porary authority was filed w hich we again supported, and on November 13 the In te r state Commerce Commission approved the application of Seatrain Lines, Inc. for tem porary authority to institute the service.
O n M arch 12 the Interstate Comm erce Commission issued an order in its D ocket I& S No. 5827 approving tariffs filed by Southern Railway Company limiting the absorption of competitive switching charges at Macon. The result of these tariffs was to increase substantially the charges on certain traffic unless it moved over the lines serving the industrial tracks affected. We filed a petition for reconsideration of the order and suggested that the Interstate Commerce Commission should institute an investigation into the reasonableness of the switching charges before undertaking to decide w hether limitation on absorption of these charges was proper. Pursuant to our request the Interstate Commerce Commission instituted such an investigation on July 30. Subsequently the rail carriers in the M acon area agreed on a program under which they will reduce certain of the competitive switching charges and will hold themselves out to absorb the total of such charges. This will not only result in savings to the shippers but should improve the service by making a wider selection of routes available. T h e new agreem ent is scheduled to become effective in Jan u ary , 1952, and after th a t time we will request the Interstate Commerce Commission to discontinue its investigation.
In the case of K entucky Coal Agency V. Alabama G reat Southern Railroad in volving rates on coal from western Kentucky mines to points in Georgia, the Interstate Com m erce Commission found it advisable to issue a second proposed report in order to bring rates up to date including increases. This proposed report upheld our con tentions that nothing should be done to disturb the present rates from eastern Kentucky and Virginia mines, but that lower rates should be prescribed from western Kentucky. T he railroads and the competing mine operators filed exceptions to this proposed re port. We replied to the exceptions insisting that the report should be made the order of the Commission. However, on September 24 the Interstate Commerce Commission issued an order which we consider highly unfavorable. W hile it does not immediately increase rates from eastern K entucky and V irginia mines to Georgia, it does place the entire coal rate adjustm ent to Georgia in jeopardy by undertaking to fix rates from western K entucky on a mileage scale. We filed a petition for reconsideration on Decem ber 27 and are hopeful that we can obtain a favorable decision in line w ith the second proposed report.
Railroads in northern or official territory filed tariffs effective September 10, 1951,
29

in w hich they propose to assess charges for picking up and delivering shipments which are shipped from and to points in the South or the West, while on traffic shipped wholly within the N orth for distances over 300 miles no such charges would apply. We con sidered this proposal as being extrem ely discrim inatory and filed a protest w ith the Interstate Commerce Commission. As a result the tariff was suspended and hearings were later held to determine w hether the charges should be cancelled or perm itted to become effective. A member of our staff testified in the hearings held in W ashington during November and later filed a brief insisting that the Commission should require the railroads to cancel the proposed charges. We are aw aiting a final decision in this case. In the meantim e the pick-up and delivery charges have not become effective.
For some time we have conferred w ith other state commissions undertaking to develop a uniform basis of rates on pulpwood between points in the South. Paper m anufacturing has become one of the most im portant industries and the difference in rates on pulpwood in the various states has become an increasingly im portant problem. Several of the most im portant pulpwood hauling railroads in the South agreed to estab lish a uniform scale of rates on pulpwood which would increase the intrastate rates in most states but would reduce the interstate rates. Along with six other southern com missions we approved the application as it related to in trastate traffic. Tariffs were filed w ith the Interstate Commerce Commission reducing the interstate rates but they were protested by other railroads which objected on the grounds that they would ultim ately have to make similar reductions and that their revenues would be adversely affected thereby. We filed a reply to the petitions for suspension and the Interstate Commerce Commission upheld our contentions by perm itting the rates to become effective on November 1 as we requested. However, the Federal Commission later instituted an investigation into the reasonableness of the rates and we plan to participate in that case when it is heard in early 1952.

U TILITY REGULATION General

A sum m ary of the work accom plished by the staff on u tility com plaints in 1951 is given in the following table:

Number Electric Complaints Number Gas Complaints Number Telephone Complaints Number Transit Complaints

173 399 1034 141

T o tal

1747

M ore than 1100 complaints were satisfactorily handled to conclusion as result of telephone calls, personal visits, letters and field inspections or surveys. T here were approxim ately 700 cases pending at the close of the year, and these are located prim arily in suburban areas which will require long extensions in order to serve applicants. In handling such a large volume of complaints, more than 3800 telephone calls were made, 1826 letters w ritten and 50 special investigations made with reports to the Commission for appropriate action.

30

Electric Utilities
As a result of a continued large construction program by electric utilities in order to provide necessary funds for th at program , several applications for authority to issue securities were filed in 1951. O n M arch 8, 1951 G eorgia Power C om pany was granted authority to issue and sell 292,400 additional shares of common capital stock to T he Southern C om pany for a cash consideration of $5 million. O n A pril 18, 1951 G eorgia Power C om pany was authorized to issue and sell $2 million principal am ount of F irst M ortgage Bonds, and on N ovember 9, 1951 G eorgia Pow er and L ight C om pany was authorized to issue and sell $1,500,000 principal am ount of F irst M ortgage Bonds. T he construction program of electric utilities during the year 1951 exceeded $35 million, of which almost $15 million was expended on additions to electric power generating equipm ent.
T here were three electric rate cases in 1951. O n Jan u ary 15, 1951 W arw ick Power and Telephone Com pany was authorized to increase rates for electric service in W ar wick, Georgia, in the total am ount of $3,482 per annum.
O n June 15, 1951 the Commission authorized certain rate revisions for the G eorgia Power and Light Company. T he Commission had previously substantially reduced the rates of this Com pany on November 30, 1950 and after which Georgia Power and Light C om pany filed a petition for rehearing and reconsideration. Prim arily, as a result of higher operating costs, increased cost of fuel oil and labor, the Commission found it necessary to restore some of the rate reduction previously put into effect. However, the rates authorized in the 1951 order were still lower th an those in effect p rior to the reduction in 1950.
O n June 22, 1951 G eorgia Pow er C om pany filed an application w ith the Commis sion requesting authority to increase rates for residential, commercial and industrial electric service in the total am ount of $4,275,000 per annum of increased gross revenue. T his application was first assigned for hearing before the Commission on Ju ly 30, 1951 at which time the Company subm itted evidence and direct testimony in support of its application. Beginning Septem ber 26, 1951 a thorough and extensive cross exam ination of the C om pany witnesses on evidence subm itted was conducted. O n November 19 and 20, 1951 testim ony was subm itted, both on behalf of the C om pany and the public w ith respect to cost of capital and fair rate of retu rn , as well as testim ony by the staff of the Commission, w ith respect to revenues, expenses and rate base components. Cross exami nation of the C om pany's expert witness was waived and in lieu thereof a statem ent in rebuttal thereto was subm itted to the Commission on D ecem ber 3, 1951. This single case comprises 622 pages of testimony and cross examination thereon, together w ith 49 exhibits subm itted by four witnesses for the Com pany and four other witnesses. At the close of the year this case was still u n d er consideration by the Commission.
Gas Utilities
Construction requirem ents of gas utilities resulted in the Commission s authoriza tion to the Gas Light Company of Columbus and the A tlanta Gas Light Company to issue securities. T he form er company was authorized to issue and sell 5,000 shares of 6 per cent preferred stock w ith a par value of $50 per share and $750,000 principal am ount of First M ortgage Bonds, and the latter com pany was granted authority to issue and sell $ 4 r/ a m illion principal am ount of 4 p er cent Debentures.
31

The supply of natural gas to the State of Georgia was substantially increased as of Decem ber 1, 1951 w hen the delivery capacity of the Southern N atu ral Gas C om pany's system was increased from 259,320,000 cubic feet per day to 313,500,000 cubic feet per day for delivery in Georgia. This increased capacity resulted from substantial growth in demand for natural gas in the state for residential, commercial and industrial pur poses. T here has been no natural gas rate increases in m any years, and rates for na tural gas service in G eorgia a t the end of 1951 were lower th an they were p rior to World W ar II.
O n M ay 10, 1951, South A tlantic Gas C om pany was granted au th o rity to increase rates for m anufactured gas service rendered in Savannah, Georgia. T h at company sought increased revenue in the am ount of $151,429 per annum and the Commission authorized $79,073 per annum in increased revenue. This increase was made necessary prim arily because of wage increases, increased cost of fuel used in the m anufacture of gas, and the application of the new Georgia Sales T ax on fuel and materials purchased for use by the company.

Telephone Utilities

T he following table shows the gain in telephones by Southern Bell Telephone and T elegraph C om pany and the 101 independent companies during the past five years. It also shows the num ber of new exchanges established, num ber converted to a more m odern system, as well as the num ber in process of conversion.

Stations 1946

Southern Bell 290,901

Independent

33,468

Stations 1951
554,220 67,205

Per Cent G ain 90.8 100.8

Conversions Since 1946
20 54

New Exchanges Established
4 16

In Process of Conversion
4 30

Totals

324,369 621,425 91.6

74

20

34

Held applications have been reduced from approxim ately 50,000 in 1946 to 30,000 in 1951 w ithin the 311 exchanges in G eorgia operated by Southern Bell, and inde pendent companies.

D uring the year 1951 the Commission continued to recewe a large num ber of appli cations from independent telephone companies operating in Georgia for increased rates in order to am end the higher costs of operation. In addition, Southern Bell Tel. & Tel. Company had also made application for increased rates during the year. The Com mission disposed of 27 independent telephone company rate cases in which the total am ount of increased revenue sought was $158,681.75 and the amount actually authorized was $119,511.75. T he application of Southern Bell Tel. & Tel. C om pany was filed in M ay 1951 seeking increased rates in the final total am ount of $8,023,000 per annum . A fter extensive investigation, cross examination of the company witnesses and presenta tion of testim ony by the Commission's staff, the Commission found th a t increased rates were justified only in the am ount of $3,625,000 per annum, being some $4,398,000 per annum less than the am ount sought by the Com pany. Among other things, this order established a 10 cent rate for local calls in the larger cities of G eorgia and required the establishment of enlarged base rate areas in all the areas of the Company. These en larged areas substantially reduced extra exchange line mileage charges paid by sub scribers in outlying sections.*

32

T he Commission issued a total of 414 certificates of public convenience and necessity to telephone utilities during the year 1951 pu rsu an t to the A ct of the G eneral Assembly of G eorgia approved on F ebruary 17, 1950. T h e following sum m ary shows the num ber of each type of certificate issued:
SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY:

G randfather Exchange Certificates ..........................................................................................133

G randfather toll certificates ....................................................................................................... 1

Amendments to certificates ........................................................................

41

T otal Southern Bell Certificates ......................................................................................... 175
INDEPENDENT TELEPHONE COM PANIES AND CO-OPS:
G randfather Exchange Certificates .................. ....... ................................. .............................172 G randfather Subscriber-owned line certificates ........ .............._....... ,, ....... i............................ 2 G randfather toll certificates .................................................................. .................................... 21 Am endm ents to certificates .......................................................................................................uli 17 Am endm ents to toll certificates ............................................................... ................................... 1 Certificates for new telephone companies ............................................................................ 1 Certificates for R ural Co-operative exchanges ............................................................. 8 Certificates for ru ral C o-operative toll lines h............................................................ ........ 1 Certificates re-issued as result of acquisition or change of nam e _______ ___ .._____ 16

T otal Independent & Co-op C ertificates _________________ ___ _______ ___ .239

T otal Southern Bell & Independent Certificates ............ ................................ ...414
Each of the above applications for certificate of public convenience and necessity was assigned for hearing before the Commission after notice in order to afford oppor tunity to anyone to object or comment on the issuance of the certificate applied for. A lthough the Act providing for the issuance of telephone company certificates became effective in 1950 only one application was received and a certificate issued during that year. Prior to 1950 the Commission had no authority to issue certificates of this nature and this new function has substantially increased the work load of the Commission and its staff. A t the conclusion of this letter is a list of all certificates issued to tele phone companies as of D ecem ber 31, 1951.

Telegraph Utilities
W estern U nion Telegraph Company filed an application for increased rates re questing authority to establish the same rates for intrastate service in the State of Geor gia as has been authorized by the Federal Com m unications Commission fo r interstate telegraph service. After a hearing and careful investigation, the Commission granted the request which m ade the state telegraph rates uniform w ith those in effect in the m ajority of other states, as well as for interstate service, and this resulted in an in*crease in gross revenue of the company by $135,373 per annum.

Transit Utilities As a result of the application of the new Georgia State Sales T ax to fares collected

33

by urban transit companies, the Commission received several applications for revision in basic fares to fractions of a cent so th at the total fare collected would include no m ore th an 3 per cent for the G eorgia state sales tax. In this connection the 10 cents cash fare, the 5 cents school children fare, and the 1 cent transfer charge of the Augusta Coach Company were reduced by 3 per cent and at the same time the sale of tokens was eliminated. The evidence in that case indicated that the overall change would not m aterially affect the total revenues collected by the Augusta Coach Company. T he city fares of the Columbus Transportation Company were all reduced by 3 per cent and a slight increase was granted in the suburban fares of th at company as a result of the state sales tax application to these fares, the overall result representing no m aterial change in total revenue collected. T ransit fares in other cities were modified in order to provide for the collection of no more than the 3 per cent for the Georgia state sales tax.
O n M arch 9, 1951 A tlanta T ran sit C om pany filed an application w ith the Com mission seeking authority to increase fares for transportation service in the A tlanta M etropolitan area. This application contemplated fare adjustments made necessary by the state sales tax and in addition, sought a substantial increase in operating revenues. A fter an extended hearing and investigation, the Commission issued an order on April 11, 1951 authorizing a fare increase in the C ity of A tlan ta som ewhat less th an sought by the C om pany. T h e C om pany's application would have increased fare collections in the total am ount of $1,040,100 per year, while the fares authorized by the Commission were estimated to produce only $746,370. O f this latter amount, $265,312 represent the 3 per cent sales tax on fares collected. A tlan ta T ran sit C om pany sought a 15 cent cash fare, tokens at 2 for 25 cents, the elimination of shoppers tickets and other changes. T h e C om pany was authorized to establish a 15 cent cash fare, w ith tokens a t the rate of 4 for 45 cents, with the requirem ent that the shoppers ticket be continued and the further requirem ent th at the company not reduce its service in terms of vehicle miles operated below the level of operation at that time. In its presentation of the m atter, the company had proposed substantial service reductions in addition to the requested fare increases.
W ESTERN & ATLANTIC RAILROAD
O n F ebruary 2, 1951 a jo in t inspection trip of the W & A R ailroad was m ade by members of the joint W & A Comm ittee of the Georgia Legislature. D uring the two years since the inspection by the G eneral Assembly on February 11, 1949, n et additions and betterm ents were reported by the lessee in the total am ount of $427,737.62. These expenditures were for the installation of heavier rail over a substantial portion of the line, grade and curvature reductions, and the installation of m odern safety devices, in cluding those related to centralized traffic control, w hich is now in use on the entire line as well as for the all electric interlocking p la n t a t Howells, the entrance to the A tlanta sw itching yards. These additions and betterm ents exclude the $2 million im provem ents m ade w ithout cost to the State, representing the construction of 4.1 miles of new roadbed, track and track structures to replace 5.7 miles of line which was flooded by the Allatoona reservoir. The m ajor portion of the cost of this development was borne by the Federal G overnm ent, and the rem ainder by the lessee.
In addition to the actual line of the W estern & A tlantic Railroad the State owns certain properties located prim arily in A tlanta and Chattanooga which, although not
34

used for railroad purposes/are covered by the lease to the Nashville, C hattanooga & St. Louis Railway. M uch of this p ro p erty is being used for industrial and comm ercial purposes under sub-leases which, of course, expire along w ith the prim ary lease on December 27, 1969. The potential value of a great deal of this property cannot be realized at present because such a short term lease acts as a deterren t to substantial perm anent im provem ent of the S tate's property. A ccordingly, by an A ct approved February 17, 1950 the Legislature established a W estern & A tlantic R ailroad Commis sion composed of the Governor, Lieutenant-Governor, the Speaker of the House, the Chairm an of the Public Service Commission, and the State Auditor. This Commission was empowered w ith authority to lease any p a rt of the W estern & A tlantic R ailroad's properties, which are not necessary to the operation of the railroad for a term not to exceed 40 years, in addition to the present lease w hich runs for approxim ately 19 more years. This Act has m ade it possible for the State not only to secure future additional rem uneration from its non-railroad property, but also to gain substantial per m anent improvements to these holdings inasmuch as the combination of a sub-lease for the rem aining 19 years of the present W & A lease, together w ith a long term lease authorized by this Act, will m ake it possible for a lessee to hold the pro p erty as m uch as 59 years and thus justifies large expenditures for perm anent improvements.
Already under the terms of this Act the Commission has leased to Peachtree-W hitehall, Inc., the air rights to the property located between the Union Station and Spring Street, between Broad Street and Forsyth Street, and beween Broad Sreet and Peach tree Street. The lease calls for the erection on this property by not later than Decem ber 31, 1974 of buildings containing not less than 100,000 square feet a t a cost of not less than $1,000,000, w hich will become the pro p erty of the State of G eorgia on D e cember 28, 1969, or upon completion if subsequent to that date. In addition to the im provement of the property, the State will receive beginning on December 28, 1969 rentals which will average over the 40-year period covered by the lease $50,000 per year. T here is no reason to believe th a t the separate lease of this pro p erty will dim inish the rental value of the property used for railroad purposes.
T he Commission is now p reparing to receive bids, under sim ilar terms, on the W & A property located in Chattanooga.
T he A nnual R eport of the N. C. & St. L. Railway, Lessee of the State-owned West ern & A tlantic Railroad for the net expenditures charged to the accounting classifica tion, A dditions and B etterm ents by classes of railroad pro p erty discloses the following amounts:
Im proved track m aterials ................ ................ ...... ....... ............................$87,714.39 Bridges, trestles and culverts ...................................................................... 15,285.52 Y ards, tracks and sidings .............................................................. ............. 29,716.01 Public im provem ents ........ ...... ................................. ................ ...... | ........... 6,207.07 Signals and interlockers ............................!.............. ..... ............................... 1,842.34 Station and Office Buildings ...................................................................... (2,607.85) Fuel stations .................................................................................................... (35,902.61) W ater stations ............................ ..................................................................... (72,611.41) Shop and Engine Houses ............................................................................ 351.35 Pow er p lan t m achinery ......... ................ ........................................ ........... (832.90) Pow er transmission systems ....................................................................... 1,374.84
35

Purchase of land .............................................................................................. 25,806.40 D rainage ......... .................................................................. -........................ ----- 1,273.26
$57,616.41 The above net additions reported are after deductions for property retired and not replaced during the year in the aggregate amount of $120,011.15, and the total net im provem ents to the W estern & A tlantic R ailroad from Jan u ary 1, 1944 through D ecem ber 31, 1951 is $3,195,296.29.
Respectfully submitted, M att L. M cW horter, Chairman Perry T. K night, Vice Chairm an Allen Chappell, Commissioner W alter R. M cDonald, Commissioner James A. Perry, Commissioner
36

LIST OF TELEPHONE CERTIFICATES OF PUBLIC CONVENIENCE AND N EC ESSITY ISSU ED IN 1950 AND 1951

Independent Companies and Cooperatives

COMPANY Wilkes Tel. & Elec. Co.
Alamo Tel. Co. Alma Tel. Co.
Arnold (N.D.) Tel. Co.
Ashland Tel. Co. Bartow Tel. Co. Blakely Tel. Co. Blue Ridge Tel. Co. Brantley Tel. Co. Brooklet Tel. Co. Broom town Tel. Co. Brown Tel. Co. Broxton Tel. Co. Butler Tel. Co. Byron Tel. Co. Cairo Tel. Co. Camden Tel. Co.
Canton Tel. Co.
Chatsworth Tel. Co. Chester Tel. Co. Chickamauga Tel. Co.
Citizens Tel. Co. Commerce Tel. Co.
Conley Tel. Co. Crawfordville Tel. Co. Consolidated Tel. Co.

1950
EXCHANGES Tignal 1951 Alamo Alma Nicholls Crawford Lexington W interville Toll Sub. Line Bartow Blakely Blue Ridge N ah u n ta Brooklet Sub. Line U valda Broxton Butler Byron Cairo St. M arys Kingsland Toll C an to n Jasper C hatsw orth Chester C h ickam auga Toll Plains Commerce Jefferson Toll Rhine Crawfordville Berlin Boston Coolidge Doerun H ahira Lakeland

C E R T IF IC A T E NUMBER 1
6 7 210 157 158 159 160 325 161 162 281 116 37 329 163 95 113 322 79 164 165 166 282 283 284 319 167 168 328 169 170 171 172 331 81 82 83 84 85 280

37

- 111 H 1 I

Meigs

86

Morven

87

M oultrie

89

Norman Park

88

Pavo

90

Ray City

91

Toll

92

Culloden Tel. Co.

Culloden

174

Dalton Tel. Co.

D alton

285

Tunnel Hill

286

Toll

287

Danielsville & Comer Tel. Co.

C arlto n

3

Colbert

3

Comer

3

Danielsville

3

Danville Tel. Co.

Danville

175

M ontrose

120

Darien Tel. Co.

D arien

8

Davis (G.A.) Tel. Co.

Chipley

176

Davisboro Tel. Co.

Davisboro

177

Douglas Tel. Co.

D ouglas

93

Toll

94

Dudley Tel. Co.

D udley

178

Ellijay Tel. Co.

Ellijay

288

Fairm ount Tel. Co.

F airm o u n t

289

Farmers Tel. Co.

Springfield

353

Gay Tel. Co.

Toll

354

M atthews

320

Toll

321

Georgia Continental Tel. Co.

Bluffton

96

Buena Vista

97

C olem an

98

C u th b ert

99

Dawson

100

Edison

101

Ellaville

102

Ft. Gaines

103

Lavonia

290

Lincolnton

291

Monroe

292

Morgan

104

Parrott

105

Preston

106

Sasser

107

Shellman

108

Toccoa

293

W ashington

294

W eston

109

W inder

295

38

Toll

296

Glenwood Tel. Go.

Glenwood

179

Gray Tel. Co.

G ray

180

Haddock Tel. Co.

Haddock

181

H art County Tel. Co.

H artw ell

297

Hawkinsville Tel. Co.

Hawkinsville

182

Toll

183

Helen Tel. Co.

Helen

343

Hinesville Tel. Co.

Hinesville

4

R ichm ond H il'i

326

M idw ay

327

Toll

5

Homerville Tel. Co.

Homerville

9

Hoschton Tel. Co.

Braselton

323

Toll

324

Interstate Tel. Co.

A ttap u lg u s

77

Interstate Tel. Co.

West Point

298

Jeffersonville Tel. Co.

Jeffersonville

184

Toll

185

Kennedy Tel. Co.

D exter

187

Leslie-DeSoto Tel. Co.

Leslie

188

Loco Tel. Co. Louise Tel. Co.

Leathersville

189

T o u rn a p u ll

299

M addox Tel. Co.

Cad well

190

Collins

191

Rentz

192

Milan Tel. Co.

M ilan

194

Milledgeville Tel. & Tel. Co.

Milledgeville

195

M utual Tel. Co.

M anchester

300

W arm Springs

301

W oodland

302

Nelson-Ball Ground Tel. Co.

Ball Ground

2

Nelson

2

Ochlocknee Tel. Co.

Ochlocknee

80

Odum Tel. Co.

Odum

10

Patterson Tel. Co.

Alma

11

Pembroke Tel. Co.

Pembroke

12

Pinehurst Tel. Co.

Pinehurst

196

Plant Tel. & Power Co.

Lenox

341

Omega

340

Pearson

338

W arw ick

342

W illacoochee

339

Planters R ural Tel. Co-op

Screven County

40

Guyton

351

Pineora

352

Pineland Tel. Co-op

A d rian

344

M idville

345

Stillmore

346

39

Reynolds Tel. Co. Ringgold Tel. Co. Roberta Tel. Co. Rochelle Tel. Co. Seminole Tel. Co. Sikes Tel. Co. Soperton Tel. Co. Southeastern Tel. Co,
South Georgia Tel. Co.
Standard Tel. Co.
Statesboro Tel. Co. Summerville Tel. Co.

Twin City Consolidated Counties Toll Lines Reynolds Toll Ringgold Roberta Lizella Rochelle Rebecca Pineview Toll Donalsonville Glennville Soperton Abbeville Adel A lap ah a Ashburn Barwick Fitzgerald Ideal M arshallville McRae M etter M ontezum a Mt. Vernon Nashville O cilla Perry Q uitm an U nad illa Toll Folks ton Ludowici Reidsville Sylvania Toll Clarkesville Cleveland C ornelia Dahlonega Hiawassee Blairsville Statesboro Toll Lyerly M enlo
40

347 349 348 111 112 318 114 115 197 198 199 212
76 303 110
16 17 18 19 20 38 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 39 36 333 334 335 336 337 332 13 14 311 312

Pennville

313

Summerville

310

Toll

314

Thomaston Tel. Co.

T hom aston

315

Trenton Tel. Co.

T ren to n

316

Trion Tel. Co.

Trion

317

Union Point Tel. Co.

Union Point

117

Utelwico, Inc.

T alb o tto n

203

Vienna Tel. Co.

V ienna

204

Walker County Tel. Co.

LaFayette

330

Waverly Hall Tel. Co.

W averly Hall

205

Wayne Tel. Co.

Screven

15

Western Carolina Tel. Co.

C layton

350

Whigham Tel. Co.

W higham

78

White Plains Tel. Co.

W hite Plains

118

Wilkinson C ounty Tel. Co.

Gordon

206

Irw in to n

207

Toll

208

Woodbine Tel. Co.

W oodbine

209

&

41

SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY

EXCHANGE Acworth Adairsville A lbany A lpharetta Americus A rlin g to n Athens A tlanta A ugusta Austell Baconton Bainbridge Barnesville Baxley Blackshear Bowden Bremen Brunswick Buchanan Buford Calhoun C am illa C arro llto n Cartersville Cave Springs C edartow n Chamblee Clarkston Claxton Cochran Colquitt Columbus Concord Conyers Cordele Covington C um m ing Dallas Douglasville D u b lin E astm an Eatonton Elberton Fairburn Fayetteville Forsyth Fort Valley

CERTIFICATE NO. 213 214 41 215 121 42 216 217 122 218 43 44 123 45 46 220 221 64 222 223 224 47 225 226 227 228 229 231 65 124 48 125 232 233 49 234 236 237 238 126 127 239 240 241 242 128 129

EXCHANGE Franklin Gainesville Gay Gibson Grantville Greensboro Greenville Griffin H am ilton H am pton H azelhurst Hogansville Jackson Jesup Jonesboro K ingston LaGrange Lawrenceville Leary Leesburg Lithonia Locust Grove Loganville Louisville Lumber City L um pkin Luthersville Lyons Macon Madison M arietta McDonough M illen M onticello Newnan Newton Norcross P alm etto Pelham Pooler Powder Springs Richland R ockm art Rome Roswell Royston Rutledge

CERTIFICATE NO. 130 243 244 119 131 245 132 246 133 247 50 134 248 51 249 250 135 251 52 53 252 253 254 136 54 137 138 66 139 255 256 257 140 258 141 55 260 261 56 67 262 142 263 264 265 266 267

42

EXCHANGE St. Simons Sandersville Sardis Savannah Savannah Beach Senoia Smithville Smyrna Social Circle Sparks Sparta Stockbridge Stone M ountain Swainsboro Sylvester Tallapoosa Temple Tennille Thomasville Thomson

CERTIFICATE NO. 69 143 144 63 68 145 146
268 269
57 147 270 271 148
58 272 273 149
59 150

EXCHANGE

CERTIFICATE NO.

T ifto n

60

Valdosta

61

V idalia

70

Villa Rica

274

W adley

151

W arner Robins

152

W arren ton

153

W atkinsville

275

Wqycross

62

W aynesboro

154

W oodbury

276

W oodstock

277

W rens

155

W rightsville

156

CO CM

Zebulon

Toll

279

Benton, Tenn.

219

Chattanooga, Tenn.

230

Copper Hill, Tenn.

235

New Eufaula, Ala.

259

43

JO IN T M O TOR VEHICLE RECIPROCAL AGREEM ENT of the
10 SO U T H E R N STATES
This agreem ent made and entered into on this the 17th day of December, 1949, by and between the States of Alabama, Florida, Georgia, K entucky, Louisiana, Missis sippi, N orth Carolina, South Carolina, Tennessee and V irginia through their respective duly authorized representatives, and to the extent perm itted by the law of each of said States:
W ITNESSETH: In consideration' of the m utual covenants hereinafter contained, it is agreed by and betw een the parties hereto, as follows:
I APPLICABILITY
This agreem ent shall apply only to the following persons, firms and corporations:
(1) To privately owned and operated passenger cars duly licensed in the State of the ow ner's bona fide residence.
(2) W ith respect to all other m otor vehicles, only to persons, firms and corpora tions, m aintaining a principal place of business in either one or more of the recipro cating States.
(3) M aintenance of a principal place of business in one of the reciprocating States shall entitle the owner to operate a vehicle, properly licensed in the State in which such business is located, betw een said State and the oth er States parties hereto and likewise the maintenance of a principal place of business in more than one of said States shall entitle the owner to operate a vehicle, which has been properly licensed under the laws of the State in w hich the vehicle is based betw een such State an d the other States parties hereto.
T he base of a vehicle shall be determ ined as follows:
(a) T he owner a n d /o r operator of the vehicle shall designate the State in which he considers the vehicle based.
(b) The m otor vehicle administrators or reciprocating authorities of all States shall agree as to the base of the vehicle b u t m ust, in determ ining the vehicle's base, give consideration, am ong other things, to the place from which the vehicle leaves and to which it returns in its normal operations.
(c) The owner a n d /o r operator of the vehicle shall have the right to change the base of a vehicle from the State in w hich the vehicle is licensed to an o th er State a t any time, provided a new license be secured from the State w here the new base is located, and the proper State authority can at any time question the base of any or all such vehicles.
(d) If any vehicle is located in the State oth er th an th a t in w hich originally registered for thirty consecutive days, it shall be conclusively presumed that the base has been changed, and the owner or operator of the vehicle shall be required to register such vehicle in the State in w hich the vehicle is last located.
44

II PASSENGER CARS
Privately owned and operated passenger cars licensed by any one of the recipro cating States shall be perm itted to operate freely between the several States, provided, however, that continuous residence for a period of thirty days or more during gainful employment shall constitute the establishment of a legal residence for the purpose of motor vehicle registration; except th at members of the Armed Forces tem porarily assigned in any one of the reciprocating States shall be extended full reciprocal privi leges for the period of such registration, and further except:
(a) Traveling salesmen, solicitors, or peddlers carrying merchandise in such passenger car and using same for transporting such merchandise for the purpose of sell ing or otherwise similarly disposing of same.
(b) U nder Florida law persons when gainfully employed, or when placing minor children in the public schools of the State shall be required to register their passenger car.
I l l DEALER OR IN-TRANSIT PLATES
Proper dealer license plates or in-transit plates issued by any one of the recipro cating States shall be m utually recognized in accordance w ith the legal purpose of such plates in the State of issuance. O n drive-a-way caravans, Florida law only re quires th at dealer license plates be displayed on the first and last cars.
IV PRIVATELY OPERATED PROPERTY CARRIERS
Trucks, tractors, trailers and semi-trailers, licensed by any one of the reciprocating States, transporting goods, wares or merchandise in interstate commerce, the actual property of the owner or lessee operator of such vehicle, m ay be operated between the several States w ithout lim itation as to the num ber of trips.
(a) The Mississippi law requires such operators to pay the State tax on or to pur chase a sufficient quantity of gasoline or other fuel to propel their vehicle for the number of miles traveled upon the highways of the State.
(b) T he laws of the States of K entucky and Tennessee will not grant any im m unity to those engaged in the business of going from State to State and purchasing agricultural or farm products or other personal property to peddle or offer same for sale in those two States.
V M O TOR CARRIERS OF PASSENGERS FO R H IRE
M otor buses operated in the transportation of persons for hire licensed by any one of the reciprocating States and operating strictly in interstate comm erce as a special chartered trip and not over a fixed route, m ay be operated in the several States w ith out lim itation as to the num ber of trips and w ithout the paym ent of any m otor vehicle license fees or taxes* whatsoever, to the reciprocating States, provided th a t such m otor carriers of passengers shall first register their operations, and equipment and qualify w ith the Public Service or U tility Commission of the reciprocating States (except in the States of Louisiana and N orth Carolina where the Public Service Commissions have no statutory jurisdiction over purely interstate carriers) and file evidence of public liability and property damage insurance coverage w ith the reciprocating States, and
45

provided further that such operators comply with all of the requirements set forth in r

the exceptions (a) through (h) in Paragraph V I herein.

i

(a) The Mississippi law requires the m otor carrier of passengers for hire to obtain a mileage perm it and trip pass; and to pay tax on* or to purchase a sufficient quantity of gasoline or other fuel to propel the vehicle for the num ber of miles traveled upon the highways of that State.

(b) T he Alabama law will not extend reciprocal immunity to a motor carrier of passengers for more than two chartered trips w ithin any calendar m onth.*

V I M O TOR CARRIERS OF PROPERTY FO R H IRE
M otor vehicles licensed by any one of the reciprocating States, including trucks, tractors, trailers and semi-trailers, operated in the transportation of property for hire may be operated in the several States w ithout lim itation as to the num ber of trips and w ithout the paym ent of any m otor vehicle fees O R TA X ES** whatsoever to the recipro cating States when operated strictly in interstate commerce; provided, however, that m otor carriers operating such vehicles shall register their operating rights and equip m ent w ith the Public Service Commission or U tility Commission of the reciprocating States (except in the States of Louisiana and N orth Carolina where the regulatory com missions have no statutory jurisdiction over purely interstate carriers) and file evidence of public liability and property damage insurance coverage with such reciprocating States, and w ith the following additional conditions and requirements:
(a) Alabama law requires the paym ent of an initial carrier registration fee of $10.00 and that there be displayed on each motor vehicle an Alabama Public Service Commission tag which will be issued upon the paym ent of an initial fee of $1.00, this tag being good for the life of the vehicle;* and have displayed a mileage tax sticker or cab card in lieu of a mileage receipt to be issued, upon application, by the Revenue Commissioner; and have displayed on all spot leased vehicles the required windshield decal issued by the Public Service Commission at a cost of $1.00 each.*
In Alabama, operators will be limited to tw enty gallons of gasoline th at m ay be carried into the State and must pay the tax on or purchase a sufficient quantity of gasoline or other fuel to propel the vehicle for the num ber of miles traveled upon the highways of the State.*
(b) Florida law requires that each motor vehicle have displayed thereon a Florida R ailroad and Public Utilities Commission tag which will be issued upon the registration of each vehicle annually, upon paym ent of $1.00 to cover the cost thereof. W here trip leased vehicles are used the vehicle shall bear a trip lease sticker on its windshield. These stickers are issued, upon request, to a certificated carrier only, in any num ber needed at a cost of $1.00 each.*
(c) Georgia law requires that each m otor vehicle have displayed thereon a Georgia Public Service Commission tag which will be issued upon the registration of each ve hicle annually, upon paym ent of $1.00 to cover cost thereof.
(d) K entucky law requires that each common carrier and each contract carrier pay to the D epartm ent of M otor T ransportation* an annual certificate fee of $25.00 and FU RTH ER TH A T A CAB CARD ISSUED BY TH E D EPA RTM EN T OF MO* Words and lines in bold type added by stipulation at the T am pa conference **Words and lines in CAPS added by stipulation at the St. Petersburg conference 1952

46

T O R TRA N SPO RTA TIO N BE CARRIED IN TH E CAB OF EACH V EH ICLE AT ALL TIM ES.** K entucky law also requires drive-a-way operations to pay annually a $250.00 license fee for each company and to carry an identification card on each vehicle transported, which will be issued free of charge.
(e) Mississippi law requires the paym ent of the Public Service Commission fees as follows: $25.00 registration or qualification fee; $12.00 per annum for each motor Vehicle for hire, except on p ro p erty vehicles of two tons o r less, the fee shall be $6.00; and $1.00 additional for each of such plates issued. T he Mississippi law requires the m otor carrier of property for hire to pay tax on or to purchase a sufficient quantity of gasoline or other fuel to propel the vehicle for the num ber of miles traveled upon the highways of the State.*
(f) South Carolina law requires the Public Service Commission to extend full reciprocity for occasional operations and partial reciprocity on a pro rata basis on the m otor vehicle registration fees of regular carriers.
(g) Tennessee law requires the R ailroad and Public U tilities Commission to issue, upon registration and qualification and upon paym ent of the initial $25.00 registration fee, a reciprocal card in lieu of the registration fee and mileage tax payment, which must be carried at all times in the cab of the vehicle and such carriers must make a property tax return to said Commission and pay an ad valorem tax thereon. The T en nessee law also requires drive-a-way operators to obtain a perm it from the Commissioner of Finance and Taxation and pay therefor the sum of $5.00, and a tow-bar fee of 20 for each motor vehicle unit transported.*
(h) V irginia law requires the carrier to secure an identification tag for each vehicle from the C orporation Commission a t a cost of $1.00 p er tag and the tag is good for the life of the vehicle. T he V irginia law requires the m otor carrier of property for hire to pay tax on or to purchase a sufficient quantity of gasoline or other fuel to propel the vehicle for the num ber of miles traveled upon the highways of the State.* * W ords and lines in bold type added by stipulation a t the T am p a conference 1951 ** W ords and lines in CAPS added by stipulation a t the St. Petersburg conference 1952 Exception: The State of Virginia does not approve the addition of the words "OR T A X E S." (See V irginia unilateral agreem ent as to gross receipts road tax effective July 1, 1952.)
Exception as to N orth C arolina contained in the original agreem ent elim inated at the T am pa conference because of a change in the State's law.
V II M O TO R VEHICLES M UST COM PLY W ITH M O TOR VEHICLE LAWS
This agreem ent shall not be construed to authorize the operation of m otor vehicles upon the highways of any one of the States in excess of the m axim um size or w eight allowed by the law of such State or contrary to the speed, safety rules and regulations, or other provisions of law in the several States, parties to this agreement.
Any State, party to this agreem ent, reserves the right to w ithdraw reciprocal i m m u n i t y as to any vehicle operated in violation of the size and w eight laws of any of said States.
No for hire carrier shall be entitled to any reciprocity under this Agreem ent unless it holds a certificate or perm it issued by the Interstate Commerce Commission covering
47

its operation or is engaged in transporting commodities th a t are exem pted by th e In te r state Commerce Commission.
N othing in this agreem ent shall be construed as a waiver of the requirements of any of the reciprocating States w ith respect to the paym ent of gasoline or other fuel tax.

I t is agreed th a t the im m unity and reciprocating privileges offered by any one of the States, parties hereto, shall be contingent upon the granting of substantially like immunities and privileges by the other reciprocating States.
This agreem ent shall rescind and supersede all reciprocal agreements heretofore entered into between the reciprocating States and shall continue in force and effect until term inated by thirty days w ritten notice from any one State to the others, parties hereto, subject always to statu to ry alterations and such as m ay result from fu rth e r nego tiations. T he cancellation of this agreem ent as between any two States, parties hereto, shall not affect the validity of this agreem ent as between said States and the rem aining States parties hereto.

IN W ITN ESS W H EREO F, the duly authorized officials of the several States,
parties hereto and hereinabove named, have hereunto set their hand and seal on the day and year first above written:

ALABAMA FL O R ID A

s/s Roy E. Blair, Commissioner of Revenue
s/s Arch Livingston, M otor Vehicle Commissioner s/s W ilbur C. King, Chairm an Railroad and Public Utilities Commission s/s Alfred A. M cKethan, Chairman, Road D epartm ent s/s Fuller W arren, Governor

G E O R G IA KENTUCKY

s/s W alter R. M cDonald, Commissioner, Public Service Com mission and Chairm an, State Reciprocal Commission s/s Zack D. Cravey, Comptroller and Member, State Recipro cal Commission s/s Tom Linder, Commissioner, D epartm ent of Agriculture and M ember, State Reciprocal Commission
s/s H. Clyde Reeves, Commissioner of Revenue s/s John C. W atts, Chairm an, Southwide Reciprocal Commis sion and D irector, Dept. M otor Transportation

L O U IS IA N A

s/s W. A. Cooper, Collector of Revenue

M ISSISSIPPI

s/s Guy McCullen, State Comptroller s/s J. P. Coleman, Attorney General s/s Fielding L. W right, Governor

N O R T H CAROLINA s/s L. C. Rosser, Commissioner, M otor Vehicles

SOUTH CAROLINA TENNESSEE

s/s C. R. M cM illan, Chief Hwy. Commissioner s/s W. W. Goodman, Director, M otor Transport Division
s/s John C. Hammer, Chairm an, Railroad and Public Utilities Commission s/s J. Clarence Evans, Commissioner, Dept, of Finance and Taxation

V IR G IN IA

s/s Jo h n S. Battle, Governor

48

Exhibit "A" GAS TAX INFORM ATION
REQUIREM ENTS OF STATES W ITH RESPECT TO TH E PURCHASE OF GASOLINE OR THE PAYMENT OF GASOLINE FUEL TAX
T he following denotes the lim itation as to the quantity of gasoline which m ay be carried into a State w ithout the necessity of paym ent of the fuel tax:
A labam a......................20 gallons. M ust pay th e tax on o r purchase a sufficient quan tity of gasoline, or other fuel to propel the vehicle for the num ber of miles traveled upon the highways of the State.
F lorida....................... Prohibits auxiliary tanks. G eorgia....................... 100 gallons. K entucky.....................30 gallons. Louisiana----.............30 gallons. Mississippi.................. M ust purchase or pay tax on gasoline com m ensurate w ith the
mileage traveled in the State. N o rth C arolina........A uxiliary tanks are lim ited to 100 gallons. South C arolina........ 30 gallons. Tennessee.................. 18 gallons. V irginia.......................M ust purchase or pay tax on gasoline com m ensurate w ith the
mileage traveled in the State. This applies, in the case of V ir ginia, to "for hire" carriers only. N O T E -- In A labam a, Florida, K entucky, Mississippi and V irginia the Diesel fuel tax is or can be paid by the purchaser at the pum p and sales reported by the seller, but in the States of Georgia, Louisiana, N orth Carolina, South Carolina and Tennessee, there is no provision for the collection of the Diesel Fuel T a x a t the time of the sale and both intrastate and interstate carriers are required to re port mileage in conformity w ith specific statutes and pay tax commensurate w ith miles traveled.
49

STATE SIZE AND W EIG HT LIM ITATIONS

Exhibit "B" W eight Law D ata

M aximum length all States for single units 35' except South C arolina which permits 40' and V irginia which permits only 33'. Georgia perm its 40' for buses. N orth Carolina permits 40' for buses w ith 3 axles. Maximum w idth for all States 96".
M aximum height for all States 12'6" except Georgia which permits 13'6". Alabama, Florida, Louisiana and V irginia permits 13'6" for vehicles transporting automobiles.

STATE
ALA. FLA. GA. KY.

LENGTH Tractor
Semitrailer Combination

45

N .P .

50

50

45

N .P .

45

N .P .

LA.

50

60

MISS.

45

45

N. C.

48

48

S. C.

50

50

TENN.

45

45

VA.

45

45

* Based on T ire Size N.P.-- Not perm itted

M axim um Axle Load in Pounds

M AXIM UM GROSS W EIGHT IN POUNDS T ractor Semitrailer Single Axle Tandem Combinations FO RM ULAS

18,000*

44,000

56,000

N .P .

700 (L + 40)

18,000*

40,000

60,000

64,650 Table 10% Tol.

18,000

54,000

54,000

N .P .

700 (L + 40)

18,000

42,000

42,000

N .P .

1,500 lbs Tol. on each

axle

KY. M axim um w eight for Class "A" roads 42,000 lbs.

M axim um w eight for Class "B" roads 30,000 lbs.

M axim um w eight for all other roads 18,000 lbs.

18,000*

36,000

64,000

68,000

18,000* 18,000 20,000

44,500 44,000 32,000

52,650 56,000 50,000

52,650 56,000 68,350

Axle group table 5% tolerance Axle group table

10% tolerance

18,000 18,000

42,000 24,000

42,000 32,000

42,000 700 (L + 40) 40,000(2) 5% tolerance

(2) 8 W heel 4 Axle-- 50,000 lbs. gross weight, certain specified highways

INTERPRETATIONS AND ENFORCEM ENT PRACTICES
TEN-STATE RECIPROCAL AGREEM ENT
In order to bring about a more complete understanding; to extend the immunities of reciprocity; to prom ote the fluidity of commerce over the highways; to develop rules of interpretation and methods of enforcement, the reciprocating authorities of the respec tive States, parties to the Southwide Ten-State Reciprocal Agreement, has held several conferences and agreed to the following stipulation setting forth the interpretations and enforcement practices:
I. APPLICABILITY
In so far as the applicability provisions are concerned, the only qualifications appear to be the construction to be placed on the phrase, "a vehicle properly licensed, etc." I t is not considered practical for the reciprocating State to undertake to enforce the M otor V ehicle License registration laws of the hom e State b u t there is a feeling th a t the "p ro p erly licensed" provision contem plates adherence to the size and w eight standards of the State in w hich the vehicle is domiciled and registered.
T he A greem ent recognizes the necessity and economic feasibility of the operation of leased vehicles b u t so far the States of A labam a and F lorida are the only signatories which have formally recognized so-called spot lease arrangem ents and prom ulgated rules or established policies for the control of such operations. In the light of the orders of the In terstate Comm erce Commission providing regulations for leased equipm ent, it is likely that all of the State practices and regulations governing leased equipm ent will require revision.
T he leasing of vehicles is com plicated by reason of the differences in the m ethod of assessing vehicle registration license fees and it is accordingly understood th a t a leased vehicle m ust be licensed and qualified under the laws of the State in w hich the principal place of business of the owner or lessee operator is located except as to the State of Alabama, which does not make this requirem ent.
II. PASSENGER CARS
Im m unity with respect to the operation of private passenger cars for personal trans p o rt is complete and unrestrained. T he use of such vehicles fo r the purpose of peddling or selling goods or merchandise therefrom in a State other than the State of registration is prohibited.
III. DEALER OR IN-TRANSIT PLATES
T he expression "in accordance w ith the legal purpose of such plates" as used in reference to dealer licenses, is intended to impose upon the reciprocating States the obligation to recognize the regulations of the State of registration in the use of such plates.
IV. PRIVATELY OPERATED PROPERTY CARRIERS
In so far as privately operated pro p erty haulers in interstate commerce are concerned, there appears to be little or no enforcement difficulties except w ith respect to the observ ance of the size and w eight standards and the traffic regulations of the reciprocating State.
51

I t is also generally true, as in the case of private passenger cars, th a t the practice of peddling or selling merchandise from a truck in a State other than that in which the vehicle is registered is prohibited and u n d er the A greem ent the States of K entucky and Tennessee deny reciprocal im m unity to vehicles engaged in the business of going from State to State and purchasing agricultural or farm products or other personal property to be peddled or offered for sale in those States.
V. M O TOR CARRIERS OF PASSENGERS FO R H IRE
Generally speaking, special charter trips of motor carriers of passengers for hire may be operated with complete im m unity in the ten States except th at the State of Alabama will authorize only two charter trips per calendar month per operator and the State of Mississippi requires the purchase of a mileage perm it and a trip pass and additionally, Alabama, Mississippi and V irginia will require the paym ent of the tax on or the purchase of sufficient gasoline or other fuel to propel the vehicle the num ber of miles traveled upon the highways of either of those States. In this connection all types of Diesel fuel burning vehicles w hether private or for hire, will be required to pay the tax on Diesel fuel in accordance with the requirements set out on Exhibit "A" of the Agreement.
VI. M O TOR CARRIERS OF PROPERTY FO R H IRE
Vehicles operated by m otor carriers of property for hire present added complexities by reason of the various regulatory laws and the rules prom ulgated by the regulatory commissions of the several States.
This is not true in the States of Louisiana and N o rth C arolina for the regulatory Commissions of those two States are w ithout any regulatory authority over purely inter state motor carriers.
The added regulatory requirements in the remaining eight States are succinctly but clearly set forth in sub-sections (a) through (h) of Section V I of the Agreement. T he "for hire" carrier of pro p erty is the p rim ary beneficiary of the provision w hich recognizes a principal place of business for registration purposes in more than one State. The States of Alabama, Kentucky, N orth Carolina and Tennessee, however, cannot grant reciprocal im m unity to a resident of his home State even though the vehicle in question is domiciled and licensed in one of the oth er ten reciprocating States.
T he free interchange of trailers is recognized as an operating necessity b u t difficulties have arisen by reason of the differences in the methods of taxation and registration in the several States. Both K entucky and Tennessee license only the power unit and treat the trailer as a box car (w hich is inter-changed by various railroads) and this presents difficulties in the other States, all of which require the registration and licensing of the trailer. I t is understood th a t to m eet the exigencies of the situation, those States will provide some method of identification in order to facilitate the free interchange of trailer equipment when used strictly in interstate commerce.
I t is understood th a t an in trastate carrier of pro p erty operating in two or m ore States under intrastate certificates and at the same time conducting an interstate business under an I.G.G. Certificate in the same States would be entitled to the full reciprocal im munity authorized in the Agreement on all equipment used in connection with the operation of the purely interstate service conducted under the I.C.C. Certificate and provided always that said operations are and can be conducted separately and further
52

th a t the lading is transported on separate trucks duly qualified to perform the service for the respective businesses.
V II. ENFORCEMENT--M OTOR VEHICLE OPERATORS M UST COMPLY W ITH STATE STATUTES
V iolation of the w eight, size o r speed laws or failure to com ply w ith the State Commission regulatory requirements constitute the vast m ajority of infractions which result in prosecution or revocation of reciprocity.
In Alabama, violators are prosecuted and upon conviction are fined at the discretion of the C ourt except for violation of the Size and W eight law in w hich event a statutory m inim um fine of $100.00 is imposed.
Florida enforcem ent is through prosecution and fine a t the discretion of the C ourt except convictions for infractions of the weight law in which case the following statutory fines are imposed:
\4 a lb. for the first 1000 lbs. excess w eight
24 a lb. for the second 1000 lbs. and so on up to
54 a lb. for 5000 lbs. excess weight.
A vehicle w hich is over-weight to the extent of 6000 lbs. is unloaded. T h ere is a 10 p er cent tolerance.
Georgia requires the registration and purchase of $25.00 regulatory tag on inter state vehicles "for hire" operated in violation of the Public Service Commission regula tory requirements and all other violations are punished through prosecution and fine at the discretion of the Court.
In K entucky, enforcem ent is by prosecution and fine a t the discretion of the C ourt, as well as the revocation of reciprocal im m unity on the vehicle involved in the violation of the size and w eight laws. In addition to the assessment of a ra th e r heavy fine, in some instances as m uch as $500.00 for overweight, the excess w eight m ust be unloaded and the vehicle must be registered and licensed in accordance w ith the m otor vehicle license laws of K entucky. T here is no exem ption for over size except the H ighw ay D epartm ent m ay issue an over-length perm it for objects not susceptible to dismantling.
Louisiana likewise strictly enforces its weight laws. An overweight perm it, how ever, may be secured from the D epartm ent of Highways provided the load cannot be dism antled. For violation, reciprocity is cancelled for the vehicle, and a license m ust be purchased for the rest of the year. T he speed laws are likewise rigidly enforced.
T here is a C ertificate of T itle law in Louisiana. Foreign vehicles w hich are required to register and purchase license plates m ust give inform ation as to the num ber of the certificate of title issued by their home State, if such State has a title law. All vehicles operated under reciprocity m ust carry on the vehicle evidence of registration.
E nforcem ent in the State of Mississippi is effected through weighing and inspection stations located near border points. Size and w eight requirem ents as well as the require m ent for the purchase of gasoline or paym ent of fuel tax are strictly enforced. Viola tions of the weight laws are enforced by unloading the excess weight and the imposition of an over-weight fee, the minim um over-weight fee being $3.00 and computed at the
53

rate of 1.5 mills p er 1000 lbs. p er mile for violations of the over-weight statute up to and under the gross w eight of 52,650 lbs., and com puted a t the rate of 30 p er 1000 lbs. p e r mile w ith a m inim um of fifty miles on 5000 lbs. in excess of the maxim um weight, and com puted a t the rate of 5^ p er 1000 lbs. p er mile for a m inim um of fifty miles fo r viola tions in excess of 5000 lbs. of the m axim um . If the excess is reloaded and the violator apprehended a second time, then reciprocal im m unity is w ithdraw n and the vehicle m ust be registered and licensed u n d er the Mississippi law. T h e w eight law is subject to a tolerance of 500 lbs. For the movement of objects not subject to dismantling, a special over-weight perm it may be secured from the Highway D epartm ent, in which event the over-weight perm it fees would be assessed.
N o rth C arolina enforces size and w eight requirem ents th rough prosecution. T he statute prescribes the over-weight fine on resident or non-resident vehicles for violations of the maximum weight limits on prim ary highways, and for overloading limits posted for light traffic highways, as follows:
1<t a lb. for the first 2000 lbs. 2^ a lb. for the next 3000 lbs. 50 a lb. for all w eight in excess of 5000 lbs.
U nder the N orth Carolina law removal of any load in excess of the m aximum road limits can be required. In addition, the o p erato r is subject to prosecution fo r w hich a m axim um fine of $100.00 and court costs can be imposed. If the non-resident's vehicle's registration card does not show the gross w eight the vehicle is entitled to carry, then the vehicle is allowed the m axim um load lim it of the hom e State. N o rth C arolina takes the position that all vehicles must comply w ith the weight limits of the State of registra tion in order to be properly licensed. (In N orth Carolina, no vehicle or combination of vehicles m ay exceed a gross of 40,000 lbs. unless the m otor of the pulling vehicle has a piston displacem ent of m ore th an "300 cubic inches). E nforcem ent comes from the M otor Vehicle D epartm ent through the Highway Patrol.
T he size and w eight law in South C arolina is rigidly enforced th rough prosecution and fines which are imposed at the discretion of the Court, plus the requirem ent that excess w eight m ust be unloaded. T h e w eight law allows for a 10 p er cent tolerance.
In Tennessee, the size and w eight law is enforced through prosecution and a fine is imposed a t the discretion of the C ourt. E nforcem ent is a jo in t responsibility of the State H ighway Patrol and the Field Division of the D epartm ent of Finance and Taxation.
E nforcem ent in V irginia on sizes and weights is through the H ighw ay or State Police in cooperation w ith the H ighw ay D epartm ent. A fine is assessed through the C ourts w hich is fixed by statute, $2.00 a 100 lbs. on the first 5000 lbs. in excess of the allowable w eight and $5.00 p er 100 lbs. on weights in excess of 5000 lbs. of the allowable weight.
V irginia revokes reciprocity for flagrant violators or repeaters.
54

71st REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1943
55

E-i O

71st R EPO R T OF GEORGIA PUBLIC SERVICE COM M ISSION
1943
TO HIS EXCELLENCY, GOVERNOR ELLIS ARNALL:
As provided by law, the Georgia Public Service Commission submits herew ith its 71st A nnual R eport of the regulatory activities of the Commission for the year ending December 31, 1943.
PERSONNEL AND STAFF
There has been no change in the personnel of the Commission since its last report. T he Commission, however, was reorganized on August 10th by election of officers for the ensuing two years, beginning A ugust 27, 1943, as required by law. W alter R. M cDonald was re-elected Chairm an of the Commission and M att L. M cW horter was elected V ice-C hairm an to succeed Commissioner P erry T . K n ig h t; th e Commission as now constituted being:
W alter R. McDonald, Chairm an M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
A. O. R andall continues in his duties as D irector of the M otor C arrier Division, in addition to his responsibilities as Secretary.
T he Commssion was fortunate in successfully term inating the leave of absence of its able Chief Engineer, N. Knowles Davis, w ith the W ar Production Board, who returned to his duties in O ctober of this year.
O rrin S. Vogel continues to serve this Commission still creditably as its V aluation Engineer. A lfred J. Y oung heads the T ran sp o rtatio n R ate D epartm ent and is rendering useful and valuable service in th at capacity.
T he Commission's Field Engineers, M ajo r R . B. Alford and L ieutenant H enry H. Cabaniss rem ain in the U . S. A rm y as shown in the Commission's last report.
M O TOR BUS AND TRU C K REGULATION SERVICE
In the M otor C arrier Division the Commission lost the services of another M otor C arrier Inspector, Lloyd A. Sm ith, to the U . S. Arm y, in addition to Sergeant Jo h n D. Eubank, who has been in service in the South Pacific for the past year and a half. A. E. Locke resigned to take another position and the Commission was fortunate in secur ing H . E. Conley of Newnan, Georgia, who was employed, effective June 15, to replace him. No one was employed to replace M r. Smith, and his territory was divided among the rem aining eight Inspectors. I t will be noted th at in the past the Commission has employed as m any as fourteen M otor C arrier Inspectors and that it now has only eight, who are performing the same duties, w ith added responsibilities, in a very efficient manner. This has been possible by reason of the long experience and training these
57

men have had, most of whom have been w ith the Commission since January 1937.
T he following is a sum m ary of inform ation taken from the Commission's M otor Carrier Inspectors' Daily Reports:
T o tal miles traveled ..........................................................................................131,830 T o tal hours w orked ............................ ;.............;................................. ........... 21,737 T otal leave days ................... .......................................................................... 140J4 T otal interviews .................................................................................................. 20,384 T otal num ber of letters w ritten ................................................................... 629 T otal num ber of reports m ade ................................................................... 2,160 T otal Commission fees collected .............................................................$92,770.50 T otal Revenue T ag Fees collected ..............................................................$34,465.04
In addition to regulating the rates and fares of M otor Carriers, the Public Service Commission is charged w ith the d uty and responsibility of prom ulgating rules and regu lations to promote safety and to insure reasonable and dependable service to the public as well as to require the m aintenance by the carriers of financial responsibility. This phase of the Commission's w ork has been greatly com plicated and m ultiplied by reason of w ar conditions which has resulted in a shortage of equipment and at the same time a greatly increased demand for public transportation in connection w ith arm y canton ments and defense plants.
The Commission issued one hundred and eleven new Certificates of Public Con venience and Necessity during the year. Thirty-one certificates were cancelled, most of which were certificates voluntarily surrendered for cancellation. T he Commission revoked one Class "A" Certificate of Public Convenience and Necessity, operated by Three Rivers Transportation Company, for financial irresponsibility and other cause. T h e order cancelling the certificate is carried in this report.
O n O ctober 26, 1943, the Commission revised and readopted its General M otor C arrier Rules and Regulations. No change has been made in the M otor C arrier Safety Rules and Regulations issued by the Commission on O ctober 1, 1940. These Rules and Regulations were reproduced in the Commission's last report.
RECIPROCAL AGREEMENTS
All R eciprocal Agreements are still in force as reported to the G eneral Assembly in January of this year, copy of which was carried in the Seventieth R eport of the Commission. No new Agreements were executed during the year.
BUS FARES
T he Commission continued its efforts, as discussed in our 1942 report, to devise some method of im pounding a portion of the increased earnings of the bus companies for future improvements and retirem ent of indebtedness and Congress was asked to pass enabling legislation which would perm it the setting aside of such funds free from Federal tax liability. W hile such bills have been introduced they have not been enacted, however efforts to treat this situation in the best public interest will be continued during the ensuing year.
Some complaints having arisen w ith respect to the rates and services 6f the several carriers serving the Macon defense area. T he Commission instituted an investigation

into the situation and early in 1943 issued orders designed to correct the complaints and provide reasonable fares within that im portant area.
U TILITY REGULATION
In line w ith our State program of retrenchm ent and the wise and sound policy of the Federal Administration of Price Control to prevent spiral inflation, your Public Service Commission has operated on a reduced budget and at the same time has carried on rate investigations which have resulted in the reduction in the cost of utility service, and which has been accomplished in the face of a general rise in prices and costs. This policy of rate reduction during a period of labor scarcity and m aterial shortages as a result of the w ar is in striking contrast w ith the general increase in u tility rates which occurred during the first World War.
As a result of these rate reductions for utility services, the people of Georgia will realize annual savings in the total sum of $879,500.00.
Electric
T he cost of electricity to residential users was substantially reduced during the year 1943 through Commission action. Savings in the am ount of $400,000.00 per year to the residential consumers of the Georgia Power Company were accomplished through the elimination of the complicated inducem ent rate plan which was never fully understood by the electric consumers. This Company serves 85% of the area, as well as 85% of the electric consumers in Georgia.
T he rates of the Georgia Power & L ight Company which serves the counties bordering on the Florida State line have always been higher than the comparable rate schedules of the Georgia Power Company, and for that reason have been the subject of inquiry and constant surveillance by the Commission over a period of years beginning w ith a complete property valuation by the Commission made in 1938. This valuation, w hich is currently m aintained, facilitates cu rren t rate adjustm ents and as a result the rates of this Company are being brought more nearly in line with rates in effect in the rem ainder of the State through annual reductions. T he revision in 1943 alone will save the consumers of this Company $38,000 per year.
T h e Commission is now looking into the rates of the Savannah E lectric & Power Company, the only other m ajor electric utility company in Georgia, w ith a view to reducing the rates of this Company.
Gas
Residential natural gas rates were also reduced during the year. Prior to 1943 the rates for domestic natural gas service were substantially lower in the larger city of A tlanta than in all the other cities in the State. After hearing and thorough investiga tion, the Commission ordered the A tlanta Gas Light Company to reduce its domestic rates and to establish a uniform schedule to be applied in all cities which it served w ith natural gas, effecting a savings of $168,000.00 annually to all domestic consumers of that Company. W hile only a minor reduction was realized by an individual A tlanta consumer, the saving to the user in the other cities was very substantial, running as high as 16% . For example, the cost of 5,000 cubic feet per m onth in M acon was reduced from $5.35 to $4.82, in Griffin from $5.50 to $4.82, and in Rome from $5.75 to $4.82, which latter maxim um saving was also realized by domestic consumers in Barnesville,
59

Calhoun, Carrollton, Cedartown, Forsyth, Milledgeville, Newnan, Rockm art and T hom aston. T h e only oth er city in G eorgia receiving n a tu ra l gas is Colum bus, w hich gas service is provided by the G eorgia Pow er C om pany. Following the prom ulgation of the order reducing and making uniform the rates of the A tlanta Gas Light Company, the Georgia Power Company was called upon to establish the same uniform rate in Columbus, as a result of which the domestic natural gas users of th at city realized sav ings of $75,000.00 annually.
Telephone
As a result of considerable investigation and study throughout the year, the Com mission ordered reductions in long distance telephone rates, which w ent into effect on Jan u a ry 1, 1944, and w hich will save G eorgia telephone users $198,500.00 p er year. W hile this reduction did not result in removing the entire differential existing between the intrastate toll rates and those applicable for interstate toll service, it represented the maximum reduction which could be justified based on present earnings and condi tions.
RAILROAD REGULATION
Interstate railroad freight rates, as well as territorial and interterritorial rates are under the control of the Federal Interstate Commerce Commission, but our Public Serv ice Commission has provided active leadership in th e South's fight to secure equality in transportation costs w ith the N orth.
The Commission has actively participated during the past year in proceedings before the Interstate Commerce Commission having as their purpose the removal of the freight rate differentials as between the South and the N orth. Briefs have been filed in this m atter and the examiners of the Commission have issued a proposed report w ith respect to the uniform classification section of the proceedings w hich is in harm ony w ith the views of the South. We are hopeful th a t the year 1944 will see this issue brought to a successful conclusion.
It should be said to their credit that the railroad carriers have operated during the past year w ith unusual efficiency despite the heavy burdens incident to w ar con ditions, and th eir financial condition is now b etter th an a t any tim e in m any years. As a result of these improved conditions the w ar emergency increases of approximately 6% which were authorized during the year 1942 were suspended effective M ay 15, 1943, and the basic level of railroad freight rates is now the same as th a t in existence during 1938.
W hile some m inor reductions in individual rates have been m ade, it is n o t possible to estimate the amounts thereby saved to Georgia shippers. T he Commission did find it necessary during the past year to perm it an increase in the voluntarily reduced passenger fares of the railroads, placing those fares upon the same level as was prescribed by the Interstate Commerce Commission for application generally throughout the entire U nited States. T he basic fare is, however, the same as was found reasonable w ithin Georgia during 1934.
LIVESTOCK RATES
Largely as the result of activities of the Georgia Commission, the interstate rates
60

upon livestock both within the South and between the South and the N orth were m ate rially reduced effective F ebruary 1, 1943 an d a sim ilar adjustm ent in the rates on livestock was m ade intrastate in Georgia. I t is difficult to estim ate th e savings to the livestock producers, but the adjustm ent will result in the saving of m any thousands of dollars annually and will unquestionably contribute substantially to the development of the South's livestock industry.
PACKING HOUSE PRODUCTS
D uring the year this Commission, together w ith other Southeastern State Com missions, filed w ith the Interstate Commerce Commission a com plaint attacking the rates upon fresh meats and packing house products from southern points to destinations in the N orth, in an effort to secure an adjustm ent of rates upon these products which will perm it the operation of packing houses on a competitive basis w ith such producers in the northern territory. Such an adjustm ent is essential to the full developm ent of th e livestock industry in this State. I t is expected th a t hearings in this m atter will be held early in 1944.
RAILROAD ABANDONMENTS
Late in December of last year the Nashville, Chattanooga & St. Louis Railway petitioned the Interstate Commerce Commission for authority to abandon its branch line of railroad extending from Kingston, where it connects with the State owned West ern & A tlantic R ailroad to Rome, a distance of approxim ately 18 miles. T h e Com mission, together w ith the officials of the counties and towns affected, appeared in opposition, hearings were had and oral argum ent was m ade, however on M ay 13, 1943 the Interstate Commerce Commission issued its order perm itting abandonm ent, and the line ceased operation on October 22, 1943.
PASSENGER TRAIN SERVICE
D uring the year there have been no m ajor changes in the passenger train service of the various railroads within the State. Owing to the heavy demands of w ar time travel the m ajority of the trains are crowded, in m any cases passengers having to stand, and m any of the trains are operated behind schedule time. However, when considera tion is given to the conditions u n d er w hich the railroads are operated, they are to be commended for the excellent performance of their duties in the face of extreme diffi culties.
W ESTERN & ATLANTIC RAILROAD
T he annual report of the Nashville, C hattanooga & St. Louis Railway, Lessee of the State-owned Western & Atlantic Railroad for the calendar year ending December 31, 1943, shows for net expenditures charged to the account Additions and Betterments, by classes of railroad property, the following am ounts:
Im proved T rack M aterial ................................................................................ $ 18,697 Bridges, Trestles and Culverts ....................................................................... 126,194 Y ard T racks and Sidings ................................................................................ 2,948 Signals and Interlockers ................................................................................. - 167,608 R oadw ay Buildings ....... ...................................................................................... 2,014
61

Station and Office Buildings ............................................................................ W ater Stations ........................................................................................ Fuel Stations ........................................................................................

6 821* 1 594
53

Total Added (* denotes figures in Red)

$312,398

The special statement on Original Cost of property retired and not replaced during the same period shows:

Y ard T rack and Sidings ......... ,..........................................................................$41,418

Station and Office Buildings ...........................

.................

591

Total Retired

$42,009

The lessor makes a report annually on all additions and retirements made to the
State-owned railroad property in accordance with a resolution adopted by the Com mission on M arch 13, 1923.

D uring the past year the Commission's V aluation E ngineer, M r. O. S. Vogel, m ade an inspection of the additions and betterm ents and later submitted a full report on the improvements and the overall condition of the property.

Respectfully submitted,

W alter R. McDonald, Chairm an M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner

62

72nd REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1944
63

O H

72nd REPO RT OF GEORGIA PUBLIC SERVICE COM M ISSION
1944
TO HIS EXCELLENCY, GOVERNOR ELLIS ARNALL:
In conformity w ith the laws of the State of Georgia, the Georgia Public Service Commission submits herew ith its 72nd Annual Report, covering the regulatory activities of the Commission for the year ending December 31, 1944.
PERSONNEL AND STAFF
There has been no change in the personnel of the Commission since its last report. T he present m em bership is constituted as follows:
W alter R. M cDonald, Chairman M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
A. O. Randall continues to serve in the dual capacity of Secretary and the D irector of the M otor C arrier Division. T he Staff of the Commission also includes N. Knowles Davis, C hief Engineer; O rrin S. Vogel, V aluation Engineer, and Alfred J. Y oung, R ate Expert, while one of its M otor C arrier Inspectors, Sergeant John D . Eubank and its Field Engineers, M ajor R obert B. A lford and C aptain H en ry H. Cabaniss are continuing to serve in the U nited States A rm y on foreign soil. As stated in a previous report, it is confidently expected that all of these capable men will return to the Commission after the war, and for this reason their positions are being held open and no one has been employed to replace them. This has necessarily somewhat limited the scope of investiga tions which the Commission would norm ally undertake in peace time.
Mrs. Evelyn F. Brogdon, Insurance Clerk and Cashier of the Commission for many years, was given a leave of absence in Ju ly to en ter the W om en's A rm y Corps of the U nited States.
Earle McDaniels, M otor C arrier Inspector, resigned, effective December 31, 1944, to assume his duties as O rd in ary of Catoosa C ounty, to w hich office he h ad been elected.
Lloyd A. Smith was recently discharged from the U nited States Army and returned to his form er post w ith the Commission as a M otor C arrier Inspector for a short time but he later resigned due to his physical condition.
T he Commission recently employed R obert N. Fellows, an experienced Tariff Clerk, who lately received a medical discharge from the U nited States Army after more than a year's service in the South Pacific.
M OTOR BUS AND TRU CK REGULATION
Service
T he Commission operated throughout most of the year of 1944 w ith the eight
65

Inspectors referred to in the last report, except for a short period of time. The work I of the Inspectors has continued to improve w ith their assumption of added duties, partie- I ularly in m aking general service reports to the Commission of the type of service being I rendered by all utilities u n d er the Commission's jurisdiction. T h e am ount of fees I k collected by the Inspectors for the Commission during the year am ounted to $81,433.43 I 1 and $88,765.86 for the D epartm ent of Revenue, w hich is reflected in the following I ^ summary:

T o tal miles traveled ............................................................. ...... ............. ....... 130,933

T otal hours worked .................................................... ..................................... 20 953

T otal leave days ........................................... .......................... .........................

162^2

T otal interviews ................................................................................................ 20,323

T otal num ber of letters w ritten .................. ................ ....................,, .........

1,053

T otal num ber of reports m ade .............................................. ....................

1,990

T o tal Commission fees collected ......__............. ........................ ................. .$81,433.43

T o tal Revenue T a g fees collected ............................................. ................ $88,765.86

T he num ber of M otor Carriers operating under the jurisdiction of the Commission has been constantly increasing and at this time there are more than one thousand interstate and intrastate M otor Carriers operating under the jurisdiction of the Com mission. T his is reflected in the revenue collected by the Commission for the year, am ounting to $112,555.00 w hich, however, is only a few h undred dollars m ore th an the revenue collected for the year 1943, but the greater number of new carriers are operating solely in interstate commerce under Reciprocal Agreements w ith other States.
T he large m ajority of the new Carriers operating in intrastate commerce are small bus operators serving Defense Industries throughout the State. All of these Certificates are tem porary, for the duration of the w ar and six months thereafter. These small bus operators have rendered a public service in the w ar effort that has been sorely needed. I t was through the efforts of the Commission th at this local service has been provided w ithout the necessity of Federal organizations taking over w ar transportation needs as they have done in other States. I t is tru e a large num ber of defense employees have been transported under the "share the ride" plan. This has been perm itted where not m ore th an seven passengers are transported in one vehicle, w hich is the m axim um num ber perm itted by law, w ithout being subject to the jurisdiction of the Commission.
T he perm anent Bus O perators continue to operate under the handicap of a lack of sufficient equipm ent to transport, comfortably, all persons desiring transportation. The crowding of busses w ith m any standing has been unavoidable. However, the efficiency of the equipm ent is reflected in the few accidents w hich have occurred during the year. T h e service of the M otor T ru ck O perators has n o t been so profitable and successful as the M otor Bus O perators and the num ber of com plaints, p articu larly as to loss and dam age claims, have been large com pared w ith previous years. T h ere are m any causes for this, am ong w hich is the constant turn-over of personnel and the increased and varied amount of tonnage being transported on account of the w ar emergency and the confusion resultant thereto. The Commission does not have jurisdiction over m an agement and has no punitive provision in the law other than prosecution and cancella tion of the operating rights of the M otor Carriers. However, the Commission has instituted proceedings ordering the M otor T ruck Operators to show cause why the Commission should not require greater insurance protection and has authorized the employment of an accountant to keep a better check on the industry, and the m anner in w hich it is being conducted.

66

RECIPROCAL AGREEMENTS
The Commission has entered into w ritten agreements since its last report w ith the States of South C arolina, M issouri, W isconsin and M innesota, and the following is a report to the General Assembly of Georgia, giving a list of the States w ith which the Commission has Reciprocal Agreements at the end of the year 1944.
"TO TH E MEMBERS OF TH E GENERAL ASSEMBLY OF GEORGIA:
Pursuant to the rights, powers and privileges granted under Section 68-1003 of the Code of Georgia of 1933, the Georgia Public Service Commission has entered into Reciprocal Agreements with reference to the operations of motor vehicles, w ith the proper authorities of the following States:
Alabama, Connecticut, Delaware, D istrict of Columbia, Florida, Idaho, Illinois, Indiana, Louisiana, M aryland, Massachusetts, M ichigan, Minnesota, Missouri, Nebraska, New Jersey, New York, N orth Carolina, Pennsylvania, Rhode Island, South Carolina, V irginia, W est V irginia, and Wisconsin.
U nder the provisions of Section 68-1004 of the Code of Georgia of 1933, the G eorgia Public Service Commission is required to subm it these R eciprocal Agreements for your consideration and for such action as you m ay deem ap p ro priate. In compliance w ith the law copies of these agreements are subm itted herew ith ."
Bus Fares
T he Commission continued its efforts, as discussed in our prior reports, to devise, through legislation or otherwise, some method of impounding a portion of the greatly increased earnings of the motor carriers of passengers to provide for needed future improvements in terminals and service and retire indebtedness and intangibles. The Federal Congress failing to pass legislation desirable to this end, this Commission, dur ing M ay instituted a proceeding to determine w hether or not the fares and charges of these carriers should be reduced. A t the time this proceeding was instituted the carriers were invited to confer w ith the Commission looking to the setting aside of funds for the purposes indicated, it being the view of the Commission th at such action would be more to the public interest than a minor reduction in the fares charged. Further a reduction m ight stimulate travel, and the carriers are in no position to transport a greater volume of passengers than are now being handled, and would perhaps prove tem porary at best when changes reasonably expected in the postwar period result in dim unition of travel by common carrier vehicles.
Following a series of conferences, an agreem ent was reached and on December 5, 1944, the Commission issued an order requiring the twelve principal m otor carriers of passengers operating within Georgia to hold and have available, out of earnings prior to December 31, 1944, an aggregate of $1,396,500 to be expended for new and improved station facilities in Georgia when restrictions upon m aterial and labor shall have been modified. T his is in addition to an estim ated expenditure of approxim ately $12,613,000 which the same carriers propose to make for new busses and other operating equipment. Should the present high level of earnings continue into the future the Commission will give further consideration to the m atter w ith the view of increasing the allocation for future improvements in facilities or take such other action as m ay appear proper in the public interest.
67

Truck Rates

I 1 T he increased costs of labor and supplies, together w ith shortages of tires, gasoline, I c

and other war-time restrictions, having resulted in the motor carriers of property in- I r

curring serious losses in n et revenue, the Commission during Ju ly p erm itted those c

carriers to increase their class rates by four percent. T his has resulted in some im- c

provement in their financial condition; however, some further adjustments may be 0

required if these carriers are to continue to function efficiently in the public interest. *!

In addition, the Commission has authorized these carriers to make some increases in a

the commodity rates upon sugar and iron and steel articles, as well as to establish s

a m inim um rate of tO f p er 100 pounds w here pick-up and delivery service is perform ed. a

These changes, while not substantially increasing the form er charges, will, the Com-

mission believes, afford some relief which m ay m ake unnecessary any fu rth er increases "

in the basic class rates w hich move the m ajo rity of m otor carrier traffic w ithin the "

State.

|

a

UTILITY REGULATION

n

v

Electric

r

Pursuant to the Commission's established policy of rate adjustm ents through the conference m ethod," w hich was adopted in 1937, several reductions in rates for electric r; service were accomplished during 1944. T he reductions enum erated below were brought r about under this policy w ithout the necessity of in stituting expensive and time-consum f< ing form al rate cases which are never desirable and certainly should be avoided if possible C

during the present w ar emergency and the attendant shortage of manpower. In each of g

the cases w here savings were effected, it was the considered opinion of the Commission si

th a t the reduction ordered was as m uch as could have been justified in a formal rate n

proceeding and th a t this m ore expeditious m ethod resulted in advancing the effective si

date of the savings to the public.

ti

Q.

Early in the year 1944, the Commission called officials of the Savannah Electric

and Power Company into conference for the purpose of ascertaining w hat reduction a

in the residential rate of that company was justified, based on the earnings of the com a

pany during the year 1943, and to seek an agreem ent from the company, th at such o

reduction as the Commission felt should be m ade m ight be established as early as v

practicable. As a result of this conference, the Commission issued its o rd er on M arch si

1, 1944, prescribing a low er and reduced rate for residential electric service in Savan $ nah, G eorgia, to become effective on m eter readings m ade on and after A pril 1, 1944. h

T his reduction, according to com putations m ade by th e Commission's staff, has saved g residential rate payers in Savannah and adjacen t territo ry n o t less th an $75,000 p er r;
annum , which represents a reduction of approxim ately 10% in the charges'for this

class of service. T his revision bro u g h t the residential rate in Savannah in line w ith the

residential rate of the G eorgia Pow er and L ig h t Com pany, w hich, a t the end of the o:

previous year, had been placed on the same level by Commission order, and the pre n

scribed rate for these two companies is now very close to th a t of the G eorgia Pow er

Cl

C om pany for residential service w hich is one of the lowest rates of any public utility in the nation.

ft

is

O n M ay 13, 1944, the Commission directed a letter to the Georgia Power Com w

pany reiterating an opinion that a very substantial rate reduction was at that time p justified and th a t such reduction should be applied to the comm ercial, and wholesale c;

68

I resale rates, and stated that the m atter should be concluded w ithout further delay. This I conclusion that a rate reduction should be made effective at once was based on a I review of the annual reports of thecompany to the Commission and an analysis thereof I contained in a comprehensive staffstudy and report dated M ay 5, 1944, covering the I operating results of the Georgia Power Com pany during the year 1943. For a discussion
of this complete report, you are referred to a copy of the order of the Commission issued on M ay 25, 1944, w hich is reproduced herein. T h a t study appeared to justify a total rate reduction of approxim ately $ 1,000,000 p er annum a t th a t time, and as stated above, should be applied to the com m ercial rate, as well as the wholesale rate applicable to the purchase of electric energy by municipalities and REA cooperatives for resale. The Georgia Power Company subm itted a customer analysis to the Com mission for rate application and revenue loss determ ination, and a study of this analysis indicated th at approxim ately 10% reduction in revenue from rate Schedules "B-6", "B-7", "C-6" and "R -l" would provide the reduction insisted upon by the Commission, and acceptable rate schedules to produce this result were later ordered by the Com mission. This order prescribing a new and reduced general commercial rate schedule which superseded three previous rates under the then existing commercial inducem ent rate plan of the company and also prescribed a new and reduced wholesale resale rate schedule "W R-1" which superseded two form er rate schedules, making the new rate applicable alike to municipalities and REA cooperatives purchasing energy for resale purposes. U nder the new wholesale resale rate prescribed therein, the charge for electric energy to all REA cooperatives in Georgia served by the Georgia Power Company was reduced by 10.1%, representing a saving to thirty-two cooperative or ganizations of $44,611 per annum and the average cost of power for the total con sumption of these cooperatives under this reduced schedule will am ount to only eight mills (or 8/10 of 1#) per K W H. It m ight be pointed out in order to indicate the substantial reductions in this rate which have been prescribed by the Commission from tim e to time, th a t the average rate paid by cooperatives in G eorgia in 1938 was 1.34# per KW H. The revised resale rate saved the forty-one m unicipally owned and operated distribution systems approxim ately $ 120,000 per annum which was a reduction of approximately 9.3%. In addition, the reduction in the commercial rate of the company as of June 1, 1944, will save this class of consumers approxim ately $895,000 p er annum on the new schedule. In the application of this latter reduction, the Commission pro vided th a t the m ajor portion of it should go to the small and m edium size consumer, since larger consumers had received substantial reductions in the past. Accordingly, $675,000 of the $895,000 annual savings will inure to the benefit of consumers using less than 1,000 K W H per m onth, w hich represents an overall average reduction to this group of 16% in their cost of electric power. Some reductions under the prescribed rate are as high as 30% .
Early in December 1944, the Commission again called a conference with officials of the Georgia Power Com pany to determ ine why it would not be feasible for the Com mission to prescribe a tem porary rate reduction to the residential consumers of that company to be accomplished by rem itting or cancelling the am ount of all bills rendered for residential service in the m onth of December, 1944. In the order of the Commission, issued M ay 25, 1944, outlined above, the Commission stated "It appears the p art of wisdom to review the result of these rate reductions, together w ith the operating ex pense of the company during the next several months, and if further revenue reduction can then be justified, the m atter will again be handled with the company." This re-
69

view, as contem plated in its earlier order, prom pted the Commission to call a second

conference during the year and to seek to provide for the tem porary rate reduction

which appeared to be justified. In recent rate negotiations with various utilities in the State, argum ent has invariably been presented th at all costs are on the increase, P

o' v

including labor and m aterials and as a result, various utilities have contended vigorously

that perm anent rate reductions should not be made which m ight bring about the necessity for a subsequent rate increase if the trend of costs continue in the same G

direction. It appears to the Commission th at the logical answer to such an argum ent in

times as uncertain as the present is a tem porary rate reduction w hich rem its to con B sumers the am ount of saving w hich is justified for the period under review and a t the ti same time does not establish a low er rate th an could be m aintained in the future. As a si result of the Commission's insistence th a t a reduction was justified, the G eorgia Power o C om pany acquiesed in the requirem ent to refund all D ecem ber billings for residential lc and street lighting service and accordingly, a Commission order was entered December tl 21, 1944. I t was concluded th a t no cancellation of bills for comm ercial and wholesale Si

resale service would be justified in view of the fact th a t these classes of service received

a com parable or even slightly larg er reduction un d er the Commission's order above referred to of M ay 25, 1944. T h e average ra te paid by the domestic consum er of the SI
G eorgia Pow er C om pany would have been 2/ 2< per K W H for the year 1944, b u t after r<
the tem porary rate reduction order when applied to the full year, the average rate P

becam e 2.214 per K W H , w hich is very substantially low er th an the national average

rate for this class of service. T h e tem porary reduction, equivalent to 100% of the o:

D ecem ber 1944 bill, will save the residential consumers of th e G eorgia Pow er Com pany si

$855,000 and the m unicipal street lighting consumers will retain $56,000 in the city a:

treasuries w hich otherwise would have been expended for this class of service. This r<

order, therefore, resulted in cancellation or remission of charges in the total am ount of d

approximately $911,000.

q

e: T he Commission directed a letter to M r. J. F. Bailey, President of the G eorgia rr Power and Light Company on November 29, 1944, calling on him to appear before

the Commission for an inform al conference on December 14, 1944, to determ ine w hy a

substantial reduction in the general commercial and wholesale REA rate schedules of N

the G eorgia Pow er and L ig h t C om pany should n o t be m ade effective a t once. A fter o;

some discussion, the G eorgia Pow er and L ig h t C om pany agreed to an overall reduction si

of approxim ately 11% in the revenue received from commercial users which will save e( these consumers $35,311 per annum , based on present rate of use. T he Georgia Power n

and L ig h t C om pany was very positive and insistent in its position th a t it, a t the present te

tim e, is rendering electric service to the R EA cooperatives a t a loss, and no agreem ent d

was reached w th respect to this class of service. T h e Commission concluded, however, sa
that it should not defer the savings which would inure to the commercial consumers tl until an agreem ent m ight be reached w ith respect to the rate for energy sold to the it R EA cooperatives and, therefore, by order issued D ecem ber 29, 1944, prescribed the a:

reduction in the commercial rate and specifically did not pass upon the wholesale rate

for REA service. T h e Commission has requested additional inform ation from the G eor re
gia Pow er and L igh t C om pany in order to determ ine w hether or n o t the C om pany is m
actually sustaining a loss under the R EA rate, and if not, w h at reduction can be p re w scribed. T h e requested inform ation should be supplied in the n ear fu tu re, and it is se

anticipated th at a Commission determ ination will then be made prom ptly w ith respect

to this rate schedule.

re

70

Telephone
As stated in our report for the year ending December 31, 1943, the Commission prescribed substantial reductions in the long distance rates of the Southern Bell Tele phone and T elegraph C om pany, effective Ja n u a ry 1, 1944. These reductions which becam e effective the first day of the year for w hich this rep o rt is m ade, will save G eorgia telephone users n o t less th an $198,500 p e r year.
The Commission prescribed a revision in the message toll tariff of the Southern Bell Telephone and Telegraph Company on February 21, 1944, which followed negotia tions between the American Telephone and Telegraph Company and its operating sub sidiaries with the Federal Communications Commission. These negotiations, among other things, advanced the initial hour for application of the lower night and Sunday long distance rates from 7 P. M. to 6 P. M. local time. This Commission prescribed the same revision in hours of rate application in Georgia which resulted in annual savings to long distance rate payers of $50,500.
D uring the year 1944, the Commission received few complaints from telephone subscribers and those which were registered dealt prim arily w ith the quality of service rendered in a few small telephone exchanges operated by independent telephone com panies.
In the case of the Blakely Telephone Company, the Commission had issued an order on A ugust 14, 1942, substantially reducing exchange rates in Blakely commen surate with the quality of service being rendered. After an investigation, inspection and test of im provem ents m ade, the Commission's staff found th a t a comprehensive rebuilding program had been completed placing this equipm ent in good operating con dition so th a t adequate and efficient telephone service could be rendered. Conse quently, on February 12, 1944, the Commission entered an order re-establishing the exchange telephone rates in Blakely which had been effective prior to the reduction made in recognition of the poor quality of service formerly rendered.
A fter numerous and continued complaints on telephone service rendered by the N. D. Arnold Telephone Com pany in Craw ford and Lexington, Georgia, the Commission, on February 21, 1944, prescribed two scales of exchange rates, one representing a substantial reduction in rates to become effective if proper improvem ent in the plant and equipment were not made, and the other representing an increase in exchange telephone rates as applied for by the N. D. Arnold Telephone Company for m aterially improved telephone service. T he effective date of this order has been deferred from time to time due to difficulties which the owner of this property has experienced in procuring neces sary materials and labor for rebuilding the system. A t the close of the year, however, the rebuilding of this telephone plant and equipment was practically complete and it is anticipated th a t adequate and dependable telephone service will be provided as soon as the necessary rehabilitation w ork is finished.
Three Rules Nisi were issued against small telephone companies regarding service rendered and in two of these cases satisfactory adjustm ents were made. T he Com mission is following the th ird case w hich deals w ith telephone service rendered in Cadwell, D exter, and Rentz, Georgia, in order to see th at proper and efficient telephone service is ultim ately provided.
D uring the year a rate adjustm ent was accomplished at Sea Island, Georgia, which resulted in the elimination of large mileage charges and the establishment of a uniform
71

rate for exchange telephone service rendered a t Sea Island, irrespective of the distance (

of the telephone station from the switchboard. This rate revision will save ninety-three ]

subscribers $1,308 per annum.

<

O n November 28, 1944, the Commission issued an order authorizing increased rates for the Byron Telephone Company in Byron, Georgia, on the application of that ] company which was joined and concurred in by the M ayor and Council of Byron. ] According to the application, and the statem ent made by the M ayor, telephone service in j that community had become very poor and after a sale of the property during the i year, the new owners proposed to rebuild the entire plant and equipment if adequate < rates could be secured for the service rendered. T he petition also stated th at in addition 1 to m ajor improvements which were currently under way, the new owners proposed to plow back the entire net revenue received from the operation until the property was placed in good operating condition. This rate revision represented an annual increase in revenue to the Byron Telephone Company of $840.

O n December 29, 1944, a rate increase was authorized by Commission order for ! exchange telephone service rendered in Nelson and Ball Ground, Georgia, by the Nel- i son-Ball Ground Telephone Company. T he application of the company was concurred i in by the M ayor and City Council of Ball Ground and the Lions Club of th at town and the increase amounted to approximately $500 per annum which it was argued < was necessary to provide efficient telephone service in the future.

Gas

No further change in gas rates was prescribed by the Commission during 1944, although, as stated in our previous report, the Commission prescribed uniform natural gas rates throughout the entire State of Georgia, which m aterially reduced the cost of service in a num ber of cities and towns w here the new la te was m ade the same as the rate prescribed for Atlanta.

D uring the month of December, 1944, the A tlanta Gas Light Company was called into conference w ith the Commission to determine w hat reduction in natural gas rates should be m ade effective, and w hat revision in all of the rates of the A tlanta Gas L ight Company for natural gas service should be made in order to eliminate discrimination and provide standard rates for each class of service. T he A tlanta Gas Light Com pany has secured, through the tenth amendatory agreement to a contract for purchase of gas at wholesale from the Southern N atural Gas Company, a saving of approxim ately $180,000 per annum in the cost of gas w hich is purchased. T h e results of the conference held in December were not productive of an answer to the question of reduced gas rates, and in view of the complexities of the problem as to design of specific rate schedules, as well as w hat additional rate reductions should be prescribed over and above the savings effected on the cost of purchased gas, the Commission issued a Rule Nisi to the A tlanta Gas L ight C om pany on D ecem ber 18, 1944, requiring th a t com pany to be and appear before the Commission on Jan u a ry 10, 1945, to show cause w hy all n a tu ra l gas rate schedules should not be revised and reduced. We cannot at the present time predict the outcome of this hearing, but undoubtedly reductions in natural gas rates will be prescribed during the early p a rt of 1945.

RAILROAD REGULATION The financial position of the railroad companies having continued to improve, the

72

Commission on M ay 31, 1944, cancelled entirely the emergency increases in freight rates and charges which had been authorized early in 1942, and placed under suspension on M ay 15, 1943, as outlined in our last report.
T he Commission has continued its activities before the Interstate Commerce Com mission seeking an adjustm ent of the class rates applicable betw een the South and the N orth, and oral argum ent before th at Commission was held during September and a final order is expected to be forthcom ing in the early future. T h e Commission is confidently looking forward to a revision in these rates which will correct the situation complained of and afford to southern industry an equalization of transportation costs with their competitors situated in the more favored Official Territory.
T he railroads have continued to operate w ith a high degree of efficiency when consideration is given to the vast tonnage w hich they are required to tran sp o rt as result of w ar conditions, and we deem it proper th at credit should be given for that achievem ent. I t is also deemed desirable to note in this rep o rt th a t acting under the Second Emergency W ar Powers Act, the Interstate Commerce Commission has issued a number of Service Orders affecting the loading, transportation and handling of equipm ent w hich are required to be applied upon in trastate as well as interstate com merce and which are, in some instances contrary to the rules of this Commission. Some of these Service O rders have been modified upon representations of this Commission, however no issue has been m ade of the In terstate Comm erce Commission's orders or powers, this Commission recognizing th at the w ar conditions require a maximum of harm ony in the interests of national defense and that such jurisdictional differences may best be tested and developed w hen the victory is achieved.
Packing House Products
In the last report we referred to the complaint which had been filed attacking the rates upon fresh meats and packing house products from southern points to northern territory. Hearings upon this m atter were held before examiners of the Interstate Com merce Commission during M arch. Briefs were filed, and late in December the Ex aminers issued their proposed report which recommends the prescription of a new scale of rates upon these commodities which, if adopted by the Interstate Commerce Com mission, will afford to the southern packing house industry an equalization of transpor tation costs, distance considered, w ith similar slaughtering establishments in the northern territory, when shipping to the northern consuming areas. This will continue to be followed during the coming year w hen oral argum ent and final decision is expected to be had.
Switching Charges
T he Southern Railway, the largest carrier serving A tlanta having filed w ith the Interstate Commerce Commission tariffs m aterially increasing the charges for switch ing carload shipments to and from industries on its rails in the A tlanta area, this Commission intervened in the proceedings before the Federal Commission on behalf of the shippers of A tlanta and the State-owned W estern & Atlantic Railroad, which property would be adversely affected should the increased charges become effective. Testim ony was subm itted and briefs will be filed during January, 1945.
Rates Upon Road Aggregates
In our 1942 report we referred to the proceedings pending before the Interstate
73

Commerce Commission involving the rates upon road aggregates between points in , Georgia growing out of complaint filed w ith the Federal Commission by the railroads alleging th at the rates prescribed by this Commission resulted in prejudice to and discrimination against interstate commerce.
This was the subject of several conferences w ith the Federal Commission during the year 1943, and at the oral argum ent before that body this Commission was rep resented.
L ate in 1943 the Federal Commission issued an order w hich held th a t the rates ' intrastate in Georgia fixed by this Commission were discrim inatory against interstate shippers and required the railroad carriers to remove the discrimination by increasing the rates charged for joint line hauls to the level applicable upon interstate shipments. Petitions for reopening and further consideration were filed which were denied and on F ebruary 7, 1944, a final order was entered by the In terstate Com m erce Commission to become effective on M arch 16, 1944. Suit was thereupon bro u g h t by this Commission in the U . S. D istrict C ourt to set aside the order of the In terstate Com m erce Commission and on A pril 7, 1944, the three Judge C o u rt sitting in the case perm anently enjoined the Interstate Comm erce Commission's order w ithout prejudice to fu rth e r investigation and findings. Thereafter the Interstate Commerce Commission re-opened the proceed ings for further investigation, but so far the m atter has not been assigned for hearing. In the meantim e, this Commission, being firm ly of the opinion th at the dual system of rate scales applicable upon road-aggregates discriminate against shippers and receivers, prom ulgated its order on Ju ly 11, 1944, prescribing a single scale of rates to be applied by all carriers, regardless of the num ber of lines involved in the haul, and which action it is believed will dispose of the litigation and place the G eorgia producers upon a uniform and non-discriminatory basis.
Railroad Abandonments
D uring 1943, the Southern Railway filed petition with the Interstate Commerce Commission seeking authority to abandon its line of railroad extending from Rome, Georgia, to Gadsden, Alabama, a distance of fifty miles, of which approxim ately eighteen miles are in Georgia. This Commission joined w ith the officials of the affected counties and towns and the Alabama Commission in opposing the application. Hearings were held a t which the Commission was represented, briefs were filed and the m atter was orally argued. T he Commission is pleased to rep o rt th a t on Novem ber 10, 1944, the Interstate Commerce Commission issued its order denying the authority sought and the line will continue in operation unless, a t some future time, further efforts to abandon are made by the applicant carrier.
On November 8, 1943, the Hartw ell Railway Company petitioned the Interstate Commerce Commission for authority to abandon its line extending ten miles from Bowersville to H artw ell. H earings were held and on November 11, 1944, the Interstate Commerce Commission issued its order authorizing abandonm ent of this line; however, it is understood th a t operation will be continued tem porarily as a w ar m easure so th a t the affected communities may not be w ithout service during the period of gasoline and tire shortage.
Passenger T rain Service
The Tallulah Falls Railway, which has been operated by a receiver since 1923, petitioned the Commission for authority to discontinue the operation of passenger train
74

service for the reason th at the cost of such service exceeded the revenues therefrom and there were no freight train earnings to fall back upon. Hearings in the m atter were held, and on December 29, it appearing th at the operation of the trains was unsafe due to the condition of the equipm ent and the road-bed and th at it was not possible to make the needed improvements, the Commission reluctantly authorized the applicant to dis continue the service.
No other changes of im portance in the passenger train operations in the State have occurred during the year, although as stated in our previous report the trains continue to be crowded and are operated under difficulties.
THE W ESTERN & ATLANTIC RAILROAD
I t is the d uty and responsibility of th e G eorgia Public Service Commission, as re quired by law, to see th at the terms of the lease contract of the State-owned railroad property are fully complied w ith by the lessee, which require m aintenance of the W estern & A tlantic R ailroad in a condition equal to th a t of first class railroads w ithin th e State. The leasing of non-railroad property owned by the State of Georgia, formerly a duty of this C o m m issio n , is now, by Act of the Legislature, which created the State Property Commission, a responsibility of that body.
U nder the terms of the lease, beginning December 28, 1919, and ending December 27, 1969, the lessee, in addition to m aintaining the leased railroad property, is obligated to pay $45,000 per m onth as rent and to spend for A dditions and B etterm ents a t least $60,000 per year or a total of $3,000,000 over the 50-year life of the lease contract.
O n D ecem ber 27, 1944, the lease con tract had ru n one-half of the life span. F or th at reason several special studies have been m ade by the Staff of the Commission to verify compliance of the lessee w ith the terms of the contract to date. I t was deter m ined as a p a rt of those studies th a t th e am ount charged for A dditions and B etterm ents by the lessee through 1943 was $3,287,595 and the am ount carried for Property R e tired and N ot R eplaced was $281,081 w hich is a n et for p ro p erty added as of 1 2 /3 1 /4 3 , $3,006,514.
In accordance w ith the requirem ent, an inspection of the State-owned railroad p ro perty was m ade on M ay 25th and 26th last, by the Commission's V aluation Engineer, M r. O. S. Vogel, in com pany w ith Messrs. Swindell and T ally, superintendents of the Georgia Division of the N. C. & St. L. Railroad. This inspection was m ade over the 136.8 miles of line upon a gasoline driven m otor car in order to facilitate the inspection.
T he rep o rt of the Commission's engineer indicates th a t the physical condition of the railroad property has been considerably improved during the past two years. T h at fact is substantiated by an analysis m ade of the cost of m aintenance as reported during the past four years in the annual reports to this Commission. In 1940 the total cost of m aintenance was $341,000; in 1941 $372,000; 1942, $618,000, and in 1943, $933,000. Although a p art of the increased cost of upkeep can be attributed to the increased wear and tear due to the extremely heavy w ar loads now being hauled, a substantial p art of the increase was incurred to bring the physical condition of the track and roadbed up to standard.
There have been numerous small jobs but at least three m ajor projects have been undertaken by the lessee during the past two years:--
75

T he first m ajor project completed was the installation of a Centralized T rain Con trol System between Hills P ark, w hich is ad jac en t to A tlanta, and Ju n ta , w hich is adjacent to Cartersville, Georgia. This full autom atic T rain Control System has made it possible to dispatch m any more trains per day over th at section of the railroad, which carries the heaviest burden of trains on the system. T he autom atic control train system is m uch m ore efficient th an the old train order system w hich requires w aiting a t p re selected points for passage of trains.
T he second m ajor project which was completed during this year involved the con struction of a new bridge over the Chattahoochee River at Bolton, Georgia, replacing a very old and badly depreciated structure. As a p a rt of th at project provision was made for double tracking a t some fu tu re date, by increasing the size of the bridge piers so th at a second track can be installed a t any time.
The third m ajor project which was placed in operation in December of this year was the installation of a new bridge over the Etowah River near Cartersville. The loca tion of the new bridge m ade it possible to eliminate approxim ately .7 of a mile of track which will decrease the running time several minutes between A tlanta and Cartersville and thereby increase the overall efficiency of the railroad. In order to install the bridge a t the present location, large fills had to be constructed north and south of the bridge. T he north end fill required the placing of more than 750,000 cu. yds. of earth fill.
T he full cost of the bridge projects has not yet been subm itted, but both involve very substantial investments which will greatly increase the operating efficiency and value of the State-owned property.
It appears from examination of the records and from the amount of work under taken, and com pleted by the lessee th a t the requirem ents of the lease co ntract to date have been fully complied with.
T he Commission has asked the C om pany to revise the form of its annual reports so th a t m ore com plete d ata will be received in the fu tu re on the w ork done by the lessee of the State-ow ned p roperty, w hich will m ake it possible for the Commission's staff to readily verify the cost of and the changes made in its property.
Respectfully submitted,
W alter R. M cDonald, Chairman M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
76

73rd REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1945
77

H O

73rd REPO R T OF GEORGIA PUBLIC SERVICE COM M ISSION
1945
TO HIS EXCELLENCY GOVERNOR ELLIS ARNALL:
As provided by law, the G eorgia Public Service Commission submits herew ith its 73rd A nnual R eport of the regulatory activities of the Commission for the year end ing December 31, 1945.
PERSONNEL AND STAFF
There has been no change in the membership of the Commission since its last report. Effective August 27, 1945 W alter R. M cDonald was re-elected Chairm an of the Commission and M att L. M cW horter was re-elected V ice-Chairm an for the ensuing two years; the Commission as now constituted being:
W alter R. McDonald, Chairm an M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
A. O. R andall, the Secretary of the Commission, continues to serve as D irector of the M otor C arrier Division. The staff of the Commission also includes N. Knowles Davis, C hief Engineer; O rrin S. Vogel, V aluation Engineer; R obert N . Fellows, T ariff Clerk, and from Jan u ary 1945 u ntil his resignation effective D ecem ber 1, 1945, J. C. H arris served as Field A uditor.
M r. Alfred J. Young, who ably served the Commission as D irector of the T rans portation R ate Division for a period of ten years, died on November 2, 1945, and it is w ith m uch reg ret and sadness th a t we chronicle th e passing of our outstanding and capable associate, and his place will be hard to fill by reason of his wide experience and executive ability.
Lieut. Col. R obert B. A lford and C apt. H en ry H . Cabaniss who w ere on leave of absence throughout the year 1945, serving in the A rm ed Forces on foreign soil, rejoined the Commission's staff on Ja n u a ry 1, 1946. M r. A lford is the Commission's Service E ngineer and M r. Cabaniss is the Commission's Field A ccountant. Sgt. Jo h n D. E ubank who served in active campaigns in the Pacific theatre of w ar returned to this country late in 1945 and it is contem plated th a t he, too, will re tu rn to his form er duties as M otor Carrier Inspector.
Mrs. Evelyn F. Brogdon, Insurance Clerk and Cashier of the Commission, returned to her duties on Novem ber 13, 1945, after serving in the W omen's A rm y Corps for a period of a year and a half.
M O TOR CARRIER REGULATION
Service
M otor bus operators continue to encounter difficulty in securing sufficient equip-
79

m ent to provide seating capacity for all persons. This condition cannot be corrected until new equipm ent in sufficient q u an tity to replace all existing equipm ent is available. T he abandonment of m any defense plants has resulted in the cancellation of a number of so-called tem porary, or defense, motor bus certificates. A m ajority of these defense certificates, however, are still in operation due to the fact th at automobiles are not yet available to the public and it is necessary to continue to transport employees around the suburban areas of cities and towns for the larger industries. Congress has not yet determined that the war emergency has ended and since these certificates expire six months after the term ination of the w ar emergency a m ajority of these m otor carriers will no doubt be i n 4business for the greater portion of the coming year.
One of the duties of the Commission in the enforcement of the M otor C arrier Acts is the collection of an annual license fee of $25.00 for the operation of each m otor vehicle by m otor bus and truck companies. T he amounts collected from the registra tion of equipm ent w ith the Commission has increased from year to year notw ithstand ing the fact th at the Commission has executed reciprocal agreements as to occasional, irregular barriers w ith most of the States east of the Mississippi River and several west of the Mississippi River. The amount collected for the year 1945, including certificate and license fees, was $121,950.00, w hich is about double the am ount of fees collected during the year 1937. Of the total am ount collected $76,850.11 was rem itted through the Commission's M otor C arrier Inspectors. T h e am ount collected for the year 1945 is considerably m ore th an for the previous year 1944, w hich was $112,555.00.
T h e collection of fees by the Commission's M otor C arrier Inspectors is, however, only one of their m any duties. Since it is necessary th a t each carrier operate in accord ance with the General and Safety Rules and Regulations prescribed by the Commission each Inspector is required to m ake investigations and inspections of each m otor carrier periodically and make full reports to the Commission as to w hether or not compliance is being m ade w ith these rules and regulations. E ach Inspector is required to m ake a D aily R eport to the Commission detailing the duties performed by him during the day, and the following is a sum m ary fo r the entire year of these reports from the nine Inspectors:
T o tal miles traveled .........................................................................................133,811 T o tal hours worked .....................--....... - ...................................................... 20,548 T o tal leave days ................................................................................................ 273J4 T otal interviews .................. ............................................................................. 20,245 T otal num ber of letters w ritten .......... ........................... ........................... 1,632 T o tal num ber of reports m ade ............................................................ ...... 4,274 T o tal Commission fees collected ........................... ...... ........................ ....... $76,850.11 T o tal Revenue T ag fees collected .................... ........................ ...... ..........$29,518.89
I t would appear from the increase in the num ber of fees collected th a t there has been a substantial increase in the amount of equipm ent owned by motor carriers op erating under the jurisdiction of the Commission. This, however, is no t tru e since a large percentage of equipment operated by motor carriers of property has been leased equipment. This condition was brought about by the scarcity of equipm ent and the requirem ent of the Office of Defense Transportation th at vehicles not be operated over the highways while empty. It has contributed, however, to a laxity on the p art of the operating companies in keeping equipm ent in good mechanical and safe operating condition since the lessee m otor carrier has jurisdiction over the vehicle only while
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being operated under lease. It has also contributed to a condition which will be very difficult to correct in th at owners of equipment who have not heretofore had au thority to operate equipm ent in the transportation of property for hire have discovered th a t it is to their advantage to engage in this business w henever possible. Now th a t m ore equipm ent is becom ing available to the qualified carriers the p ractice of leasing equipm ent from non-qualified owners will n o t be so necessary. T his situation will entail extra diligence on the p a rt of the Commission's enforcem ent officers to prevent efforts being made on the p art of these non-qualified vehicle owners to engage in the business of transporting property for hire illegally.
T he im pact of the w ar has been very pronounced in its effect upon passenger car riers, as well as freight haulers. G reatly increased passenger travel a t a time w hen carriers were unable to secure additional equipment has provided abnormal revenues w ithout a corresponding increase in operating expenses which has resulted in very favorable earnings. These favorable earnings of the bus companies are directly attri butable to the high load factor which was accomplished by reason of the tolerance and understanding of the traveling public. O n the other hand, the freight carriers, as a rule, found themselves unable to profit by the greatly increased tonnage which they were called upon to handle as a result of the w ar. This was due to several conditions peculiar to the industry. In the first place a considerable part of the tonnage handled carried low ratings which resulted in lower per mile earnings w ith greatly increased road haul cost of operation by reason of wage increases and higher maintenance ex penses. Another very substantial increase in operating expenses resulted from the in crease in loss and dam age claims brought about by the inability of the carriers to secure trained help as well as the inability of shippers in m any instances to follow proper packing requirements.
This progressively increased unfavorable operating ratio in the motor freight in dustry has resulted in the financial failure of a number of larger fixed route operators. As a result of this condition the Commission found it necessary to revise its insurance requirem ents in several im po rtan t particulars, as well as to employ the service of a full time Field Auditor to provide necessary supervision over the handling of funds, claim accounts, and general accounting. In substance the revisions in insurance requirements increased shipper protection by increasing the G.O.D. Bond posted w ith the Commission as surety for the transmission of G.O.D. funds from $1,000.00 to $5,000.00 for carriers w ith gross annual revenues of $100,000 or more, and from $1,000.00 to $2,500.00 for carriers w ith gross annual revenues of less th an $ 100,0 0 0 ; and increased cargo insurance from $1,000.00 to $5,000.00 per vehicle and from $2,000.00 to $10,000.00 of aggregate loss from catastrophe hazards in the case of the fixed route or Class "A" carriers of property. As a result of this added protection, and particularly the closer supervision of carriers' records and accounting it has been possible to prevent substantial losses to the shipping public.
A t the close of 1944 J. R. Crow, dba Florida-Alabama M otor Lines, complained to the Commission after some five years of joint occupancy of the Columbus Term inal w ith five other bus companies, th at he had received notification to vacate the terminal by Jan u ary 1, 1945. T h e Commission issued a R ule Nisi on this com plaint and on June 13, 1945, after public hearing, issued an order dismissing the rule, w ith the con clusion that although having the authority to require carriers to establish and maintain adequate station facilities under the existing law, the Commission is w ithout au thority
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to require motor carriers of passengers to extend the use of term inal facilities to an other carrier.
Reciprocal Agreements
T he Commission has not entered into any new reciprocal agreements since its last report but all existing agreements continue in effect with the following States:
Alabama, Connecticut, Delaware, D istrict of Columbia, Florida, Idaho, Illinois, Indiana, Louisiana, M aryland, Massachusetts, M ichigan, M innesota, Missouri, Nebraska, New Jersey, New York, N orth Carolina, Pennsylvania, Rhode Island, South Carolina, V irginia, West V irginia and Wisconsin.
Bus Fares
Bus fares in Georgia over the lines of the principal inter-city carriers continue to be on a basis of 1.65# p er mile or one-half cent p er mile less th an the basis for railroad fare. As stated in our previous report, the Commission has hesitated to change this basis of fares for the reason th at such reduction would have increased travel at a time when the carriers were least able to handle added passengers, and for the further reason that it would likely prove tem porary since expected changes in the postwar period would bring about a lessening of travel w ith increased service.
F or this reason, as discussed in the Commission's previous rep o rt the Commission, after a series of conferences w ith the 12 principal m otor carriers of passengers in Geor gia, issued its order on D ecem ber 5, 1944 in D ocket 7257-A in w hich it required the 12 principal passenger carriers operating in Georgia to hold and have available an aggre gate of $1,396,500 out of earnings prior to December 31, 1944 to be expended for new and improved station facilities in Georgia, when restrictions upon labor and material shall have been modified. This amount was in addition to an estimated expenditure of $12,613,000 which the carriers propose to make for new busses and other operating equipm ent.
A t various times during the year 1945 the carriers have reported their expenditures to the Commission as required by the order. Due to the difficulty in securing necessary labor and materials for station construction and improvements, it appears from the reports of the carriers that the largest amounts expended during the year were for real estate. A number of reports indicated that repairs were made to m any stations throughout the state which required little or no priority materials. These repairs were mostly painting and repairing station facilities and improving rest rooms.
The carriers reported a total am ount of $137,361.59 expended in compliance with the Commission's order, of w hich $66,435.18 was for the purchase of real estate. T h e recent lifting of labor and building m aterial restrictions will enable the carriers to comply m ore fully w ith the Commission's order during the coming year.
Truck Rates
In its last report, the Commission outlined conditions, heretofore discussed in this report, which necessitated the issuance of an order granting a four (4 ) percent in crease in class rates to Class A m otor carriers, as well as to establish a m inim um rate of 20# per 100 pounds w here pick-up and delivery service was perform ed. T h e increases therein authorized were intended to provide tem porary relief and were to have expired at the end of July, 1945. U pon the showing of the m otor carriers of conditions even
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worse a t th at time than those existing a t the time the tem porary increases were au thorized, the Commission issued an order extending the effective date of the four (4) percent increases until July 31, 1946.
Rates on cotton work clothing were adjusted under an order issued by the Com mission on June 12, 1945, resulting in small increases ranging from I f p er 100 pounds a t 25 miles to 11^ per 100 pounds at 260 miles. T he Commission, in its order, pointed out th at the increase resulting from this proposal would place some small additional burden upon shippers, however, if converted to a garm ent basis, the am ount of the increase was negligible and is equally to the shippers' interest th a t m otor carriers receive rates which will enable them to accord reasonable and adequate service to the public.
U TILITY REGULATION
As a result of reductions in rates for electric, gas and telephone service during the year 1945, the people of Georgia will realize savings in the total sum of $1,804,980.00 p er annum . This am ount of reductions in rates is outstanding w hen it is realized th a t it was accomplished during a period of a general rise in prices.
Electric
Several reductions in rates for electric service were accomplished in 1945 as a result of the Commission's established policy of securing dow nw ard rate revisions through the conference m ethod, this m ethod being adopted by the Commission in 1937. T he various downward revisions in electric rates herein enum erated were brought about under this policy, and it was unnecessary to institute any expensive and time consuming form al rate cases to effect reductions which the Commission considered should be m ade. In each instance, it was the Commission's opinion th a t the reduction prescribed was as m uch as could have been justified in a form al rate proceeding, the avoidance of which, obviously, advanced the effective date of the savings to the public.
O n June 19, 1945, new and reduced rates for m unicipal street lighting and m uni cipal w ater pum ping were accepted by the Commission to become effective on July 1, 1945. T hese new rates are applicable th roughout the territo ry served by the G eorgia Power Com pany and will make possible annual savings of $129,000 on m unicipal street lighting service and $51,000 on m unicipal w ater pum ping service, or a total saving of $180,000 per annum. Prior to the establishment of this uniform street lighting rate, there were m any rates in effect for this class of service. In some instances individual contract rates were applied to individual municipal accounts. T he reductions in the cost of this service were substantial, m any running as high as 35 per cent. T he new w ater pum ping rate is likewise a uniform schedule and it is also applicable throughout the territory served by the Georgia Power Company.
T he order of the Commission issued on December 29, 1944, to the Georgia Power & Light Company, referred to in the 72nd Annual R eport of the Commission, which substantially reduced the general commercial rate schedule of the Company stated that a decision would be reached later as to the wholesale rate of this company applicable to the purchase of electric energy by the REA cooperative organizations. T he Commission had requested detailed information w ith reference to the cost of supplying service to these cooperatives, and after a complete and thorough analysis of the data provided, an order was issued on A ugust 28, 1945, prescribing a reduction of 10 p er cent in the cost of electric energy purchased by cooperatives and resold to farm consumers. This

reduction applied on all energy purchased by the cooperatives except that part of the energy which was resold to the large Army A ir Bases at V aldosta and Bainbridge, Georgia. The reduction amounted to approxim ately $2500 per annum divided among the five cooperatives and the revision was as m uch as the Commission felt could be justified.
After further and continued review of the earnings of the Georgia Power Com pany subsequent to the Commission's rate reduction order of M ay 25, 1944, reducing rates by $1,058,000 per annum and a second order issued on December 21, 1944, effect ing additional savings of $952,321 the Commission directed a letter to M r. P. S. A rk w right, C hairm an of the Board of the company on M ay 11, 1945, stating th at exam ina tion of the current operating results of the company indicated th at a further reduction in rates should be m ade and suggesting a m eeting w ith the Commission to discuss the question. In reply the company contended th at no reduction was justified, but after fu rth er study the Commission directed a second letter to the company on July 10, 1945, in which a comparison was made between 1945 and 1944 earnings of the company, and reiterated that a substantial reduction in rates should be made. Subsequently, officials of the Georgia Power Company m et w ith the Commission, and as a result of these conferences, the company acceded to a revised residential rate schedule which effected substantial reductions in virtually all residential bills for electric service provided by this company. This new rate incorporates a minim um bill of 75 cents a m onth instead of the form er minimum of $1.00, both covering the cost of 20 K W H per month. This reduced the average rate applied on the minimum consumption from 5 / per KW H to 3.75^ per K W H , or a reduction of 25 per cent. U nder the new schedule, the highest rate is 3.75^ p e r K W H if the m inim um charge allowance of a t least 20 K W H is used and the new rate is 1# p er K W H for all consum ption exceeding 200 K W H p er m onth. The minimum reduction on any bill was 25^ per m onth and the per cent reduction varied from 7.3 p er cent to 25 p er cent w ith an average reduction to all consumers of approxim ately 12/4 p er cent. T he Commission's staff com puted the am ount of reduction which the new rate would effect and found th at it would save the residential consumers of the Georgia Power Company $1,194,000 per annum. It should be pointed out that this rate will effect continuing savings to residential consumers and th at the annual savings are approxim ately 33 per cent m ore than the am ount saved by reason of the D ecem ber 1944 refund to residential consumers, referred to in the 72nd R eport of the Commission. T h e very favorable level of this new residential schedule w hich is applicable throughout the territo ry served by the com pany in large and small cities, as well as to the extreme end of the longest rural line, can be illustrated by comparisons w ith typical electric bills in 1945, as published by the Federal Pow er Commission. In its letter to the G eorgia Pow er C om pany of Ju ly 10, the Commission directed attention to the fact that its favorable position had declined in comparison of its residential rates w ith those in effect in cities throughout the U nited States of 50,000 population or more. U nder the new rate prescribed on August 31, 1945, this form er favorable position was more than regained. The cost for consumption of 25 K W H anywhere throughout the G eorgia Pow er C om pany territo ry is reduced from 82nd to 16th place from the lowest in the entire group of 216 cities listed. In the com parison the cost of 100 K W H p er m onth drops from 77th to 43rd place and the 250 K W H cost is reduced from 56th to 35th place from the lowest in the group of cities listed. Furtherm ore, in other states higher rates are generally applicable in rural areas than those in effect in cities of 50,000 population or more. The Commission does not have inform ation on rates for
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residential electric service in rural areas of other states, but if such a publication were available the comparison would be even more favorable.
Gas
O n Decem ber 18, 1944, the Commission issued a R ule Nisi against the A tlanta Gas L ight Company to show cause why all natural gas rate schedules should not be reduced, and assigned the m atter for hearing before the Commission on January 10, 1945, when it came on to be heard. Prior to the issuance of this R ule Nisi on December 15, 1944, the Commission held a conference w ith officials of the Gas Company in an attem pt to reach an agreem ent on the am ount of reduction in net revenue which should be effected and the specific rate changes which should be made. W hen it appeared that such an agreem ent could not be reached, and in view of the fact th at in the course of the conference, the company proposed increases in certain of its commercial and indus trial rate schedules, the Commission concluded to issue a R ule Nisi and proceed w ith a public rate hearing. Subsequent to the original hearing and further hearing on January 19, 1945, the Commission had num erous and successive conferences w ith officials of the com pany as a result of w hich a substantial reduction in rates for gas service was agreed to by the company.
T h e A tlanta Gas L igh t C om pany renders n atu ral gas service in 19 cities and towns and provides m anufactured gas service in 5 additional cities in Georgia. T he Commission in its rate reduction order of A pril 13, 1943, which was discussed in our 71st Annual Report, established a uniform rate for residential natural gas service in all communities served, and this rate was further reduced by Commission order dated April 20, 1945, resulting in additional residential and commercial consumer savings of approximately $407,100 per annum. In addition the new lower rate eliminated two undesirable optional rate schedules. This rate consolidation further eliminated the necessity for two gas meters on the same premises where a residential consumer elected to use the optional heating service in addition to natural gas for other purposes. U nder the terms of the Commission's order the expense of m eter consolidations is to be borne entirely by the Atlanta Gas Light Company.
A nother desirable feature of the new rates prescribed by the Commission's order of April 20, 1945, was the substantial reduction of the prom pt paym ent discount on gas service. Prior to the effective date of the new rates, discounts had generally been a t the rate of 10# per thousand cubic feet, but on large bills for gas service, this am ount of discount became excessive when related to the total am ount of the bill. T he new discounts are 50 per cent lower as a result of the revision in rates, being 5# p er thousand cubic feet on consum ptions less th an 20,000 cubic feet p e r m onth and only 2 # per thousand cubic feet on consumptions exceeding 20,000 cubic feet on the general natural gas rate schedule. T he new discount is approxim ately 5 p er cent of the gross am ount of bills and is m uch m ore reasonable in am ount.
Over a period of time the various natural gas rate schedules of the A tlanta Gas L ig h t C om pany becam e inconsistent in some respects and the Commission's orders au thorized certain m inor increases in order to remove these inconsistencies. T he cost of natural gas service to commercial space heating consumers who enjoy a very low and favorable rate was increased approxim ately $22,400 per annum. T he cost of space heating gas to industrial consumers was increased approximately $28,100 per annum, while the general industrial gas service schedule of the company was reduced approxi m ately $12,100 per annum on gas used for non-heating purposes. In addition the
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establishment of a uniform general industrial rate reducing the rate level in south Georgia provided savings to industrial users of $47,600 resulting from consumers chang ing from an optional rate to this new schedule. The partial application of contract fuel rate adjustm ent provisions in the optional industrial rate schedules of the company increased the cost of gas to industrial consumers by approximately $64,100 per annum. The net increase in the cost of heating and industrial gas, therefore, was $54,900 and, deducting this am ount from the reductions cited above, the net overall reduction in the cost of natural gas service provided by the A tlanta Gas Light Company was $352,200.
A lthough the Commission's original action did not contem plate a reduction in m anufactured gas rates at that time, since the increased earnings of the company were attributable entirely to natural gas sales, the company proposed in the conferences w ith the Commission that a reduction should be made in the general service rates applicable on m anufactured gas service and a unification of the schedules. T he revised rates pro vide a uniform schedule applicable in the cities of Athens, Brunswick, V aldosta and Waycross, and a slightly lower schedule for service rendered in Augusta, Georgia, and will save m anufactured gas consumers approxim ately $32,000 per annum. T he total net annual savings to all gas consumers, including the net reduction of $352,200 on natural gas service, was $384,200.
Following the order of the Commission revising rates of the A tlanta Gas L ight Company, the Commission issued an order on M ay 8, 1945, reducing the rates for natural gas service rendered by the Georgia Power Company in Columbus, Georgia. This order was the result of a conference w ith officials of the Georgia Power Company, at which conference the Commission took the position th at the new general rate pre scribed for the A tlanta Gas Light Company in all territory served w ith natural gas should be made applicable in Columbus. Following the conference, the company ac quiesced in the proposal of the Commission and established the lower A tlanta general rate, as well as oth er suggested rate features and simplifications. T h e application of the new general rate schedule will effect annual savings principally to residential consum ers in Columbus, Georgia of $24,345. Simplification of the commercial and industrial rates which substitute two schedules in lieu of the four rates formerly applicable resulted in a small increase in the cost of gas to certain of the very large gas consumers of the Georgia Power Company. These increases were necessary to effect rate unification and simplification for natural gas service rendered in Columbus.
Following conferences between officials of the Savannah-St. Augustine Gas Com pany and the Commission, w ith reference to revision in rates for m anufactured gas service in Savannah, and after a final conference on M ay 11, 1945, the com pany agreed to a reduction in the general rate for residential service saving consumers approxim ately $16,000 per annum. U nder this revision, the cost of gas service was not increased to any consumers and the discount in the new rate was reduced 50 per cent in con form ity w ith the Commission's conclusion w ith reference to discount in the rates of other gas companies rendering service in Georgia.
Telephone
O n M arch 28, 1945, the Commission issued a Rule Nisi against the Interstate Telephone Company and The Lanier Company to show cause why rates and charges for telephone service provided in West Point, Georgia should not be reduced. The Lanier Company owns all of the telephone plant and equipm ent in West Point,
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w hich is leased to the Interstate Telephone C om pany, w hich la tte r com pany furnishes local and long distance telephone service in W est Point, as well as in L anett and Shawmut, Alabama from the W est Point Exchange. After a public hearing on this m atter held on M ay 9, 1945, the Commission issued an order on June 8, 1945, prescrib ing new and reduced rates for local exchange telephone service in W est Point, Georgia, which effected annual savings to subscribers of $3,936 per annum.
D uring the year six small independent telephone companies were authorized to make specific increases in rates for local exchange telephone service. These increases were predicated on improvements in service or upon a proper showing by the company th a t n et incom e was inadequate. In some cases the am ount of the increase was less than requested in the application filed w ith the Commission and in some cases the order of the Commission required rehabilitation of the telephone system to improve service rendered. These rate revisions were confined to small companies w ith relatively few subscribers affecting rates for telephone service in A drian, Crawford, Lexington, W interville, H ahira, Guyton, Pineora and W arwick, Georgia, as well as the several small exchanges of the Danielsville and Comer Telephone Company.
RAILROAD REGULATION
Ex Parte 148
By order of the Interstate Commerce Commission, dated October 30, 1945, the application of the so-called em ergency railroad freight rate increases in Ex P arte 148 were again postponed. This action was dictated by the continued favorable earnings of the railroad companies and this last suspension was indefinite in th at the order was postponed from Jan u ary 1, 1946, u ntil six m onths after the term ination of war.
These increases which were granted early in 1942 were found not to be required after having been in effect for a little more than a year and have subsequently been periodically suspended after the end of each recurring six-month period in spite of the continued and persistent efforts on the p art of State Commissions, the U nited States D epartm ent of A griculture and the O PA to secure cancellation of the order. As previously reported, the Georgia Commission took such action and cancelled the in creases on intrastate traffic in 1944.
Class Rate Case
T he long aw aited decision in the South's fight for freig h t rate equality w ith the N orth, I.C.C. Dockets 28300 and 28310, was handed down on the 15th day of May, 1945, and was a complete victory for our section.
This investigation was initiated in August 1939 upon the insistence of the Associa tion of Southern State Public Service Commissioners, Conference of Southern Governors and certain shipper organizations, and involved the freight rate structure within and between the Official, Southern, Southwestern and W estern T runk Line freight rate territories.
T he efforts of the South, Southwestern and W estern T runk Line territories in the preparation, coordination and presentation of testimony were united under territorial Steering Committees which contended for a uniform nationalized, non-discriminatory rate structure and the final effect of the order will result in such a structure.
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The decision, in substance, provided a nationwide uniform classification of freight and directed th at differences in "Class" rates now applicable in and between involved territories above mentioned, which included all the continental U nited States except the Pacific territory which asked for no reduction, be removed. In order to accomplish such equalization the Commission ordered th at a Class R ate scale 10% higher than the present Class R ate Schedules in O fficial territo ry be established as a base. Because of the time th at will be required in order to bring about the adjustm ents in tariff puplications incident to the accomplishment of these changes, the Commission issued an interim order to become effective on the 30th day of August, 1945, increasing all Class Rates w ithin Official territory by 10% and decreasing the Class Rates in the other involved territories by the same am ount. This order of course affected only Class R ate industries but as a m atter of fact most m anufactured goods move on Class Rates, and furtherm ore the Class R ate stru ctu re can be described as the yardstick for the m easure m ent or fixation of the levels of all mileage scales or comm odity rates.
T he railroads throughout the country announced their willingness to accede to the terms of the order but insisted th at tariff publication difficulties would make it im possible to put into effect the interim order by August 30. T he effective date was accordingly twice postponed, the second order providing that it should become operative on Ja n u ary 1, 1946. T h e second deferm ent was m ade necessary by reason of labor difficulties in the Chicago printing house in charge of the publication of the tariff; otherwise the interim order would have gone into effect on the 30th day of November, 1945.
D uring this second delay, the nine Eastern states of New York, Delaware, Indiana, M aryland, M ichigan, New Jersey, Ohio, Wisconsin, and Pennsylvania, all of which had resisted the efforts of the South and West to secure rate equality w ith all the force of their wealth and organized industrial power secured an injunction in the D istrict Court of the U nited States in the N orthern D istrict of New York tem porarily enjoining the enforcement of the equalization order. It will now be necessary for the m atter to be tried before the U nited States Supreme C ourt but there can be no doubt as to w hat the final decision will be. I t is u n fortunate th a t we have been again delayed b u t w ithin a very few months the case will be disposed of by the Supreme C ourt and the order will unquestionably be put into effect.
The decision of the Interstate Commerce Commission was very properly acclaimed on all sides as a great victory and boon for the South. Coming a t this time, it will enable the South to convert m any of its w ar industries to peacetime production and will enable us in the postwar era to become more industrialized and thus effect a better balance between agriculture and industry.
We can expect a great impetus and expansion in such industries as furniture, can ning and processing of foods, wineries, m achinery m anufacturing and chemical indus tries.
Packing House Products
In our last two annual reports, we referred to the complaint which had been filed by Southern State Commissions, attacking the rates on Fresh M eats and Packing House Products from Southern points to N orthern territory. Although a proposed report was issued by Examiners of the Interstate Commerce Commission late in Decem-
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ber, 1944, and the m atter since orally argued and submitted, the final order has not been forthcom ing; however, a favorable decision is m om entarily awaited.
Switching Charges
A proposed report and recommended order was issued by the Interstate Commerce Commission Examiners in the A tlanta Switching case in which m atter this Commission intervened on behalf of the A tlanta shippers and for the protection of the State-owned railroad.
As previously reported, the Southern Railway System proposed to increase its non com petitive sw itching charge, w hich is usually paid by the shippers, from $2.48 p er gross car to a minim um of $8.00 and a maximum of $18.50 per car. T he Commission recommended the charge of $7.00 per car.
W hile the Federal Commission will doubtless grant some increase, the Georgia ' Commission does not feel th a t the recom m ended charge is justified by the record and has filed exceptions to the proposed order and will present argum ent in opposition thereto.
Rates Upon Road Aggregates
Rates on Sand and Gravel continue to be an issue of heated controversy between the Georgia Commission and the Interstate Commerce Commission.
Notw ithstanding the fact th at the decree of the Federal D istrict Court, enjoining the order of the Interstate Commerce Commission expressly stated th at the injunction was w ithout prejudice to further hearing, no move had been made by the Federal Com mission at the end of 1944 for further hearing and it had commenced to appear that th at Commission would abandon its effort to require the imposition and application of the rates which it had prescribed in lieu of the rates prescribed by the Georgia Commis sion. However, this hope proved to be unfounded for a further hearing was scheduled and held in A tlanta on the 11th day of September, 1945. Upon the opening of that hearing, the Georgia Commission filed a w ritten m otion requesting discontinuance of the proceeding and dismissal of the 13th Section complaint which was over-ruled by the presiding Examiner subject to review by the full membership of the Interstate Commerce Commission. T he motion was then submitted to the Commission w ith the request for further hearing in the event the motion were denied. Following denial the m atter was assigned for further hearing in W ashington early in January 1946 a t which time, this Commission will again endeavor to convince the Interstate Commerce Commission of the soundness of the principle for which it has been contending with that body in connec tion w ith the prescription of rates on this im p o rtan t moving com m odity; th a t is, a merged scale of rates for application on both single and joint line hauls.
T he presently applicable interstate scale of rates w ith certain modifications which have been m ade by the carriers was prescribed by the Federal Commission in 1927 and provides a dual system of rates for distances of 320 miles or less; th a t is, one scale of rates for hauls over a single line and a higher scale of rates for joint hauls moving over two or more lines. Obviously, this results in discrim ination as between intrastate ship pers on substantially sim ilar movements w here one producer happens to be so located as to require shipm ent over two or m ore lines. Furtherm ore, the scale is so graded for the longer distances as to w ork an advantage for out-of-state shippers against the G eor gia producer of these commodities.
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Railroad Abandonments

In the Commission's last rep o rt reference was m ade to the au th o rity granted by 1 the Interstate Commerce Commission for the abandonm ent of the H artw ell Railroad. W e are glad to rep o rt th a t this railroad is still operating to the great convenience of the t citizens of H artw ell and the stockholders, all of whom are citizens of H a rt County, are to be congratulated on their ability to continue to provide this very needed service to 1 their community.

No other applications for abandonment were made during the year.

One im portant change in railroad control and management resulted in the con

solidation of the A tlanta, Birmingham and Coast Railroad into the Atlantic Coast Line

]

R ailroad Company. U nquestionably this will result in more efficient operation of this

family line and will work to the advantage of the very considerable territory of our state

dependent upon the service of this carrier.

Passenger Train Service

The only change in railroad passenger train service which was rath er drastic resulted from O D T O rder 53 which required the discontinuance of all Pullm an cars over runs of 450 miles or less. This has brought about considerable inconvenience to Georgia travelers accustomed to making overnight sleeping car trips between cities in the state. However, at the time of the issuance of the order additional Pullman cars were critically needed for the transcontinental redeployment of the Armed Forces and the need for the transportation of returning soldiers has appeared to require its con tinued enforcem ent. I t is expected, however, th a t it m ay be cancelled a t an early date. In all probability the cancellation will be effectuated through progressive modifications of the order until the lim itation is entirely removed.

There has been no appreciable change otherwise in passenger service but travel is gradually lessening as automobiles retu rn to the highways and unless rail passenger travel is m ade m ore attractive, we can expect to see railroad passenger business again operating at a deficit in the very near future.

THE WESTERN & ATLANTIC RAILROAD
U nder the terms of the lease contract between the lessee and the State of Georgia dated December 27, 1919, leasing the State-owned W estern & A tlantic Railroad for a period of 50 years, the lessee "shall annually on or before the 20th day of January in each and every year, prepare and file w ith the Public Service Commission of Georgia a statem ent showing in detail the character and extent of the improvements, betterm ents and additions claimed to have been made during the preceding calendar year ended December 31, which statem ent shall show the specific character of each expenditure and the am ount thereof for w hich credit is claim ed." T h e lessee is also required to make a report to the Georgia Public Service Commission, custodian of the State railroad property, on all property retired and not replaced, in accordance with the resolution adopted by the Commission on M arch 13, 1923.
I t is the policy of the Commission to have its engineers make an annual exam ina tion of the railroad p ro p erty shortly after the A nnual R eport of the lessee is received, to verify the expenditures and investigate the construction work completed during the preceding year, as well as to see th a t the railroad is m aintained in conform ity w ith the

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terms of the lease contract. T h e 1945 rep o rt is not due until Ja n u a ry 20, 1946, and therefore, has not been included in this report.

T he A nnual R eport of the Nashville, C hattanooga & St. Louis Railway, lessee of the State-owned Western & Atlantic Railroad for the calendar year ending December 31, 1944, shows net expenditures charged to the account Additions and Betterments by classes of railroad property in the following am ount:

Im proved T rack M aterials ......,...................$ Y ard T rack & Siding ................................... Bridges, Trestles & Culverts ...................... Signals & Interlockers ............................... R oadw ay Buildings ........................................ Stations & Office Buildings ..................... Fuel Stations ................................................... W ater Stations ................................................. R ig h t of W ay & Lands ...............................

Gross 272,270.60
1,533.45 924,540.71
4,178.15 179.54
7,070.06 620.59
22,172.55 1,053.50

R etired $230,553.91
462.24 500,817.31
4,020.76

Net $ 41,716.69
1,071.21 423,723.40
157.39 179.54 7,070.06 620.59 22,172.55 1,053.50

$1,233,619.15 $735,854.22 $497,764.93

T he statem ent of property retired and not replaced during the calendar year 1944

shows--

Cost

Salvage

Yard T rack & Siding

$770.71

$618.09

D uring M ay of the past year the Commission's V aluation Engineer, M r. O. S. Vogel, made an inspection of the railroad and submitted a report to the Commission on the improvements made in 1944 and as to the condition of the property. A t th at time the overall physical condition was found to be very satisfactory due to extensive m aintenance w ork during the w ar. In 1944, the Commission's staff recom m ended certain revisions in the form of the A nnual R ep o rt subm itted by the lessee, and these recom m endations were accepted and used in the 1944 report to the Commission. T he changes in the composition of the report provide additional data essential for ready verification of the costs reported and for easier indentification of the construction work completed during the calendar year.

A t a point approxim ately 18 miles n o rth of A tlanta in D ist. 17, Sec. 353, a tra c t form erly known as the John W hite p roperty, containing 8 acres of land was taken over on A pril 16, 1942 by the U . S. G overnm ent under a declaration of taking for the development of the Bell Bomber Plant. T he Government appraisers at th at time placed a value of $3,000 on the property and deposited a check for that am ount in court. An appraisal of the property by Commission engineers indicated th at it had a higher value. C ondem nation suit was filed in U . S. D istrict C ourt, and in Ju ly 1944 a ju ry awarded a verdict of $5,575 plus interest on the am ount awarded in excess of the $3,000 originally deposited, am ounting to $406.00, making a total paym ent of $5,891. T he C ourt entered its decree on this judgm ent and divided this settlement between State of Georgia and the N. C. & St. L. R ailroad on basis of expired and unexpired periods of N C & ST L lease of W &A R R as of A pril 16, 1942, $2,670.22 being paid to the State of Georgia and $3,310.78 to the NC & St.L. Railway, the paym ent to the State of Georgia being deposited w ith the State T reasurer for use as provided by law.

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O n A ugust 18, 1941, during the first session of the 77th Congress, $3,000,000 was authorized for the construction of a dam and reservoir known as the Allatoona Reservoir on the Etowah River in the Coosa River Basin for flood control in accordance w ith the recom m endation of the chief of U . S. A rm y Engineers. O n M arch 27, 1944, during session of the 78th Congress, 2nd Session, an additional appropriation of $14,400,000 was approved for Allatoona Reservoir. W ater im pounded by this dam will flood certain sections of the W & A Railroad right-of-way and would damage the State's property unless app ro p riate steps are taken to p ro tect it.
Studies have been m ade by the Commission's staff of the proposed im pounding of w ater on the railroad right-of-w ay w hich disclosed th a t the stability of th e track as now located, would be affected over a distance of approxim ately 4.9 miles. These studies also revealed th at the section of the railroad which m ust be relocated contains 788 degrees of track curvature. N ot only is the relocation desirable because of the excessive curvature of the present route, b u t it is essential th a t the best relocation be m ade p rior to the im pounding of w ater, as it will be virtually impossible to change the location after the dam is constructed. In 1942, the U . S. A rm y Engineers proposed two plans for the protection of the S tate's railroad p roperty, b u t these were n o t recom m ended by the Commission's staff nor accepted by the Commission, since b oth plans proposed leaving the railroad in the present location.
Studies of contour maps of the area disclosed th a t it is feasible to construct a direct route from a point south of Allatoona Creek to a point near Bartow, Georgia, which will remove 640 degrees of track curvature and shorten the track by 1.6 miles, and is sub stantially the alignm ent which was seriously considered by the Commission and the lessee 20 years ago. T he Commission therefore, requested the submission of an estimate of the cost of this relocation, and subsequently the U . S. A rm y Engineers subm itted drawings and an estimate of the cost of the proposed direct route. This relocation of the State-ow ned railroad, substantially as shown in the U . S. E ngineer's plan, m ust be made prior to the construction of the dam across the Etowah River to safeguard the State's property.
A num ber of inform al conferences have been conducted by the Commission's staff during the past year w ith U . S. A rm y Engineers and engineers of the lessee for the purpose of protecting the S tate's rights and property. These conferences will continue until all plans are made and approved for the actual construction and relocation.
Respectfully submitted,
W alter R. McDonald, Chairm an M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
92

74th REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1946
93

t-l ^

74th R EPO R T OF GEORGIA PUBLIC SERVICE COM M ISSION
1946
TO HIS EXCELLENCY, A CTIN G GOVERNOR M. E. THO M PSO N:
As provided by law, the Georgia Public Service Commission submits herewith its 74th Annual R eport of the regulatory activities of the Commission for the year ending December 31, 1946.
PERSONNEL AND STAFF
There has been no change in the personnel of the Commission since its last report. T h e present m em bership is constituted as follows:
W alter R. McDonald, Chairman M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
T he only change in the staff of the Commission was the employment of Sam H . Flint as D irector of the Transportation Rates Division, and the transfer of Robert N. Fellows from the position of Tariff Clerk to the position of Insurance Clerk and Cashier, which was vacated early in the year by Mrs. Evelyn Brogdon, who resigned to accept a posi tion with the Veterans Administration.
M O TOR CARRIER REGULATION
Bus Service
In furtherance of the declaration by the Federal Government of the state of N a tional Emergency the Georgia Public Service Commission, during the early p art of 1941, inaugurated the practice of issuing tem porary "w ar certificates" of public con venience and necessity authorizing the transportation by m otor carriers for hire of both persons and property, which practice was continued throughout the war. All of said certificates having been issued w ith the express condition that they should continue in effect until six m onths after the term ination of the w ar em ergency, and inasm uch as such tem porary certificates were issued to m otor carriers serving defense plants, m ilitary installations and transporters of strategic commodities such as m ilitary equipm ent a n d petroleum , and in such other instances where it was found that the existing transpor tation facilities did not m eet the transportation needs brought about by the existing war conditions, the Commission did not require the same degree of proof of perm anent con venience and necessity as would have been required had it been considering the granting of a perm anent certificate of public convenience and necessity as provided for by the M otor Common Carriers Act. It appearing to the Commission in the early part of the year th at there was no further need for the continuation of these tem porary certifi cates to defense areas, since the areas having service by the motor common carriers operating under such tem porary certificates had been abandoned or were in the process, of being abandoned by the war industry, and other m ilitary installations and trans-
95

portation emergency due to w ar conditions no longer existed, the Commission accordingly on F ebruary 12, 1946, adopted a resolution declaring " th a t on and after February 15, 1946, the w ar emergency ceases to exist insofar as the granting of tem porary certificates of public convenience and necessity to m otor common carriers is concerned, and that all such tem porary certificates containing the proviso that they should remain in effect `for and during the period ending six m onths a fter the term ination of the present w ar emergency,' shall term inate and expire w ithin six months from said date and all service rendered under such tem porary authority shall cease unless otherwise ordered by the Commission. Should holders of such "tem porary" or "W ar" certificates desire to continue to render similar services, they will be required to file form al appli cations and present proof of present and continuing convenience and necessity as pro vided by law."
The Commission had issued approxim ately one hundred and fifty tem porary w ar certificates, and a m ajority of these were surrendered for cancellation on or before A ugust 15, 1946, except in certain instances w here the need still existed in w hich event application was made to the Commission for an extension of the term ination date of said certificates for a period of twelve months time on proof of further need, and where the Commission found that such need still existed the authority was granted.
D uring the war period bus transportation facilities of the long line intercity bus carriers had been under a heavy strain, due to heavy transportation requirements and lack of sufficient equipm ent, which had necessitated the curtailm ent of so-called "local service" in suburban areas of large municipalities, which service had to a large extent been taken over by tem porary or war certificates. The surrendering of such certifi cates and the cessation of operations thereunder, and the continued scarcity of equip m ent resulted in a need for purely local suburban bus transportation facilities. In December of 1945 the Commission granted such a local certificate to the Suburban Coach Company between D ecatur and Tucker, Georgia, over a route which had been served continuously for a long period of time by Smoky M ountain Stages, Inc., a long distance intercity carrier. This service was prom ptly inaugurated, after proof of public need therefor, by the Suburban Coach Company, following which Smoky M ountain Stages, Inc. filed w ith the Commission local schedules between D ecatur and Tucker, duplicating the services being rendered by the local operator, Suburban Coach Company. Suburban Coach Com pany filed formal complaint w ith the Commission requesting th at Smoky M ountain Stages, Inc. be denied authority to p ut said schedules into effect and the Commission on January 4, 1946, issued an order denying said application of Smoky M ountain Stages, Inc. to put said schedules into effect, in which it held th at it was never contem plated, in the granting of the certificates to intercity carriers, that authority was intended to be given to perform such a purely local suburban service due to the u tter lack of inform ation by the m anagem ent of intercity carriers as to the needs for such local service and their inability to perform this type of service, and th at the attem pt on the p a rt of Smoky M ountain Stages, Inc. to perform such service was and is in violation of its certificate authority.
This ruling was adhered to in its decision of December 20, 1946, approving appli cations of the A tlanta N orthern Lines, Inc. and Southeastern Greyhound Lines for local certificates of public convenience and necessity to transport passengers between A tlanta and M arietta, Georgia, to provide service in lieu of the street railw ay service being provided by A tlanta N orthern Lines, Inc. successor to the A tlanta N orthern Railway Company.
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Truck Service
In its last report the Commission m ade m ention of the financial failure of a number of truck companies and the increased insurance requirem ents to be provided by such companies. As a result of the bankruptcy of one of these companies in October 1945, K. & L. Transportation Company, Inc., the sale of the certificates held by this Company was made by the Trustee in Bankruptcy subject to approval of the Public Service Com mission and the Interstate Commerce Commission, and application was made to this Commission for the transfer of said certificates. T he Commission by order dated M arch 28, 1946, denied said application for the reason that said certificates had been can celled in O ctober 1945 for allowing insurance coverage to be cancelled and failing to file renewal coverage as provided by law, based on an opinion of the A ttorney General th at after notice and opportunity to be heard, the Commission having revoked or can celled a certificate of public convenience and necessity for reason or for cause, that such certificate becomes forever dead and that the original holder has no further privilege thereunder.
As a result of this opinion it was necessary for the Commission to amend its procedure to provide for suspension of certificates for lapse of insurance in lieu of cancellation thereof, which was provided for in a resolution adopted by the Commission on M arch 13, 1946 and by am endm ent of its R ule 2 2 (b ) of the G eneral M otor C arrier Rules and Regulations.
The general financial condition of the motor freight carriers improved consider ably, however, during the year, due to the ability of carriers to obtain better equipment and to effect a decrease in operating expenses, as well as by reason of an increase in industrial production of the type of m erchandise ordinarily handled by truck lines which produce the necessary revenues in support of this type of transportation.
In M arch of this year the Commission had before it an application of R. C. A. T ruck Lines, Inc. for the transfer of a certificate formerly owned and operated by A. B. C. T ru ck Lines, Inc., w hich com pany was in bankruptcy, and in the hearing it was brought to the attention of the Commission by protesting competitive carriers th at the purchaser of the intrastate certificate between A tlanta and Rome, Georgia, was not the purchaser of a sim ilar I.C .C . C ertificate over the same route held by A. B. C. T ru ck Lines, Inc., which certificate had been sold to another carrier. T he Commission held that the application for transfer of the intrastate certificate should be approved, but deplored the splitting up and multiplying of operating rights in the sale of intrastate rights to one carrier and interstate rights to another carrier, since the intrastate certifi cate of the transferee herein could be re-registered with the Interstate Commerce Com mission w ithout proof of Public Convenience and Necessity, thereby duplicating existing interstate rights over the same route. Since the Interstate Commerce Commission has jurisdiction over transfer of the I.C.C. certificate the protestants before this Commission were advised to enter their protests before the Interstate Commerce Commission.
ENFORCEMENT
T he Commission had in its employ throughout the year eight Inspectors, w ith an additional Inspector employed from April 22, 1946 to M ay 29, 1946.
As stated in previous reports one of the duties of these Inspectors is to check all equipm ent operated to determine whether or not the carrier has displayed on said
97

equipm ent proper license plates issued by the Commission, and has paid to the Com- ^ mission a license fee of $25.00 for the issuance of such tags. O f the $115,165.00 col lected during the year as license fees the Inspectors were responsible fo r rem itting $84,662.00 thereof. T h e Commission's Inspectors were also responsible for remittin g g $28,225.17 in fees collected for the M otor Vehicle U nit of the D epartm ent of Revenue.

By reason of an opinion of the Attorney General that equipment operated by m otor j

carriers solely in pick-up and delivery of freight at terminals, and not used on certifi

cated routes, was not subject to the paym ent of the $25.00 license fee for the issuance

of tags for such equipm ent, the Commission authorized the issuance of tags free of 1

charge to all carriers applying for tags to be displayed on equipm ent used in pick-up and

delivery service only.

i

RECIPROCAL AGREEMENTS

T he Commission has not entered into any new reciprocal agreements since its last

report, but all existing agreements continued in effect with the states listed in its last

i

report.

'

T R A N S P O R T A T IO N

G eneral

The Commission passed informally upon 55 matters relating to transportation rates and services and issued w ritten opinions on the cases listed below:

Docket No.

D ate

7960-A

M arch 28, 1946

7983-A

April 9, 1946

Subject Application of Gainesville M id
land Railroad to discontinue passenger service
Application of Sandersville Railroad to discontinue pas senger trains numbers 3 and 4

Disposition
G ranted subject to provision for han dling mail and ex press
G ran ted

7984-A
9th Supt. 6462-A

M ay 28, 1946 Aug. 27, 1946

Complaint against rail charges on shipments of rosin and turpentine to Savannah

Dismissed

Application of rail carriers for increases in freight rates (Ex Parte 148)

G ranted with excep tions

Non-Docket Sept. 11, 1946

8206-A) 8210-A)

Oct. 21, 1946

Application of Flint River and N ortheastern Railroad to dis continue operation
Applications of rail carriers re lating to handling of traffic to and from Port W entworth

G ranted
Provisions prescribed for such handling

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8375-A

Dec. 9, 1946

8031-A

April 25, 1946

Non-Docket M ay 23, 1946

Non-Docket M ay 27, 1946

5359-A

M ay '28, 1946

5674-A 7203-A
8063-A

M ay 28, 1946 June 25, 1946

6849-A

June 25, 1946

8063-A 5359-A

Ju ly 1, 1946 July 9, 1946

8063-A

July 31, 1946

8181-A

Aug. 28, 1946

8063-A

Aug. 29, 1946

8181-A

Aug. 29, 1946

Application of Railway Express Agency for increases in rates (Ex Parte 163)

G ranted with condi tions

Porterdale Bus Line-- Increased Approved Fares

Embargo on M otor Carrier Promulgated Shipments

Embargo on M otor Carrier Rescinded Shipments

Rates on Petroleum Products, Dried Beans and Peas and Canned Goods by M otor Carriers

Rates Prescribed

Temporary Motor Carrier Rate Expiration Date Ex

Increases

tended

Rates on Rules Governing Movement of H o u s e h o l d Goods by M otor Carriers Classed B-l
M otor Carrier Rates on House hold Goods

Rates prescribed low er than requested
O rder V acated as to Carriers Classified B-l

M otor Carrier Rates on House hold Goods
M otor Carrier Rates on Petro leum Products

O rder of June 25 Postponed
Point-to-Point com modity Rates Pre scribed

M otor C arrier Rates on House hold Goods

O rder of June 25 Further Postpon ed

Regular Route M otor Carriers -- Application for rate in crease

G ranted in part

M otor C arrier Rates on House hold Goods

Upon Reconsidera tion O rder of June 25 Modified and higher rates ap proved

Regular Route M otor Carriers -- Application for rate in crease

O rder modified as to Reliable Transfer Co. Inc.

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8181-A
8115-A 5359-A 8188-A 8307-A
8370-A

Sept. 11, 1946
O ct. 21, 1946 Oct. 28, 1946 Nov. 6, 1946 Dec. 9, 1946
Dec. 9, 1946

Regular Route Motor Carriers -- Application for rate in crease
Suburban Coach Co.-- Fare In crease
M otor C arrier Rates on Petro leum Products
Franklinton Busses-- Fare In crease
Application of Regular Route M otor Carriers for authority to cancel certain exceptions ratings
B. & L. Bus Service-- Increased Fares

O rder Modified as to Augusta-Atlanta M otor Express, Inc.
Partly Granted
6% Increase Au thorized
Partly Granted
Approved
A p p r o v e d with modifications

Bus Fares
T hroughout 1946 the m ajo r in tercity bus lines continued to assess fares on a basis of 1.65 cents p er mile. T his fare is 5 5 /1 0 0 of a cent less th an railroad coach fares and is apparently the principal reason th at the bus lines have not suffered the substantial decline in passenger traffic incurred by the railroads. Load factors, however, have been greatly reduced an d it is now only on week-ends an d holidays th a t the m ajor companies experience the crowded conditions which, while deplorable from a service standpoint, contributed so greatly to the opulence of these companies during the war.

The smaller lines, however, began to experience a more severe reaction from the sudden decline of w ar-tim e traffic, combined w ith increased expenses, and as a result the Commission was compelled to grant increases in fares to seven smaller companies, all but one of which operate prim arily a suburban type seivice. T he case of Service T ransit Company, however, indicates the problem confronting intercity carriers which have been largely dependent upon transportation of personnel to m ilitary establishments and w ar plants. This com pany was granted authority to make certain increases in its fares between R ay City and Moody Field, designed to produce approxim ately $3,500.00 additional revenue, the record showing th at the reduction in personnel at Moody Field had rendered the line entirely unprofitable at the previous level of fares.

Truck Rates

T he Commission discussed in its report for 1945 the extension of a previously estab lished tem porary 4 per cent increase in rates of Class "A" M otor Carriers of Property. This m atter again came before the Commission in 1946 and the effectiveness of the 4 per cent increase was extended for another year. Additionally, the motor carriers peti tioned the Commission in August for further increases. After hearings and due con sideration, the Commission authorized an increase of 10 p er cent in rates on less-truckload shipments, except that this increase did not apply to several commodities on which the Commission had previously prescribed special rates. It was determined th at the im pact of increased costs has been felt greatest in the handling of small shipments, especially those accorded pick-up and delivery service and handled over the platforms

100

of the m otor carriers' term inals. T h e increase authorized for intrastate traffic is some w hat less than th a t m ade effective by the interstate m otor carriers in the South on M ay 20, 1946.
T he Commission also prescribed revised rates on packaged petroleum products from Savannah to 87 points in Georgia, resulting in substantial reductions to most points, b u t also in some small increases. Rates on canned goods and dried fruits and vegetables were increased early in 1946 but not to the extent requested by the motor carriers. T he Commission authorized higher charges on these commodities because the evidence indicated th a t in m any cases they were being transported a t actual losses and it appeared th at the elimination of unduly depressed rates would perm it the Commission to hold general increases affecting all users of m otor carrier service to a lower figure.
T he Class "B" M otor Carriers of Property which are limited to the handling of household goods exclusively were rem oved from the Commission's regular tariff and authorized to charge somewhat higher rates than the general commodity carriers which haul household goods occasionally and only incidental to their regular operations. The Commission believes th a t a double benefit will accrue from this action. First, the speci alized movers of household goods showed that large increases in wages of their specially trained employees and higher costs of the equipm ent peculiar to their service necessitated a rate increase to overcome actual operating losses. T h e general com m odity carriers had not incurred these added costs to the same degree and by separating them from the specialized carriers it was possible to a t least forestall an increase in the rates of the general commodity carriers. Secondly, the Commission believes th at the segregation provided by its order will perm it more effective regulation of household goods movers which provide one of the most skilled and necessary services offered by any of the motor carriers under the Commission's jurisdiction.
Railroad Rates E x P a rte 148 an d E x P arte 162
O n A pril 15, 1946 the railroads filed w ith the In terstate Com m erce Commission a petition for a general increase of 25 per cent in all freight rates, w ith certain exceptions, and also asked th at tem porary increases in passenger fares authorized in 1942 be made perm anent. The railroads alleged in their petition an extreme emergency and asked th at they be allowed to make the increases effective a t once and th at hearings, if necessary, be held later. T he Interstate Commerce Commission, however, assigned the application for hearing on M ay 6, 1946 only as to the em ergency feature, and a t the same time on its own motion reopened Ex Parte 148. I t will be noted from our report for 1945 th a t the increases authorized in Ex P arte 148 had been suspended until six months after the termination of the war emergency.
This Commission joined w ith other state commissions in the South and in the W est and opposed the tem porary increases on the grounds th a t the higher costs and the de cline in war-time traffic claimed by the railroads was a condition which existed m ainly in Official territory, and more particularly in connection w ith some of the larger eastern railroads. W hile we were not successful in preventing the tem porary increase in the South w hich was authorized in the am ount of 6 p e r cent to become effective on Ju ly 1, 1946, we did secure for our sections some relative benefit because the Interstate Com m erce Commission authorized an 11 p er cent increase in O fficial territory. I t will be noted that this had the effect of reducing somewhat the difference in the northern and
101
I LIBRARIES )
GEORG'L^

southern rates, thus indirectly accom plishing to a small degree the class rate equaliza tion which had been interrupted by court action.
The Interstate Commerce Commission proceeded w ith hearings on the petition for the 25 per cent increase during the summer and fall and this Commission was again represented and m aintained its position that the rates of the railroads operating in the South should not be increased as m uch as those of the n o rth ern railroads. A dditionally, we opposed imposition of the full increases on agricultural products. The Interstate Commerce Commission issued its order on December 5, 1946 authorizing a 20 per cent increase in most rates within the South, except that rates on agricultural products were increased only 15 per cent. T h e increases provided in the N o rth were 25 p er cent and between the N orth and the South 22^4 per cent. It was developed in the hearings that added costs made higher rates inevitable and the Commission feels it achieved note w orthy success in helping to obtain a lesser increase in all rates for the South and in securing an even smaller increase on agricultural products.
As for intrastate rates in Georgia, this Commission was confronted w ith petitions identical to those filed w ith the Interstate Commerce Commission and on September 1 we authorized a 6 per cent increase in railroad freight rates in Georgia, except that the increase on agricultural products, on road building m aterial and cottonseed and peanut oil was limited to 3 per cent and no increase was authorized in rates on scrap iron and steel and in switching charges. The petition of the railroads for the same increase as was authorized by the Interstate Commerce Commission in its order of December 5, 1946 had not been assigned for hearing before this Commission at the end of the year.
Class Rate Case
As related in our last y ear's rep o rt the favorable decision of the In terstate Com m erce Commission, providing for ultim ate equality of class rates and for an interim reduction of 10 p er cent for the South and an increase of 10 p e r cent for the N o rth , was enjoined by the D istrict C ourt of the U nited States in the N orthern D istrict of New York responsive to a petition of nine eastern States.
O n February 1, 1946 the w estern railroads intervened in the litigation in support of the petition of the eastern States. T he case came on for hearing, on its merits, on February 18, 1946 and the C hairm an of this Commission argued on behalf of the regulatory commissions in the southeast.
On M ay 9, 1946 the three-judge Court by unanimous order upheld the favorable decision of the Interstate Commerce Commission. T he injunction was continued in effect for 60 days, however, and during th at time the eastern States and the western railroads perfected an appeal to the U . S. Suprem e C ourt. This appeal was filed on June 25, 1946, but because of the necessity of printing the voluminous record made be fore the Interstate Commerce Commission the case was not placed on the Supreme C ourt's calendar durin g the year.
We anticipate that it will be heard during the early part of 1947, and feel confident of complete victory.
Fresh Meats and Packing House Products
On M arch 4, 1946 the Interstate Commerce Commission issued its order in the
102

Fresh Meats and Packing House Products case, to which we have referred in all our annual reports since 1943. W hile the decision of the Interstate Commerce Commission was som ewhat disappointing, it m ust be described as definitely favorable in th a t it required a reduction in rates on fresh meats and packing house products from the South to the N o rth of approxim ately 10 p er cent. W e h ad taken the position, however, th a t rates from producing points in the South should be on a common level w ith rates from producing points w ithin Official territory, while the decision of the Commission related the southern rates to the rates applying from midwestern points and Missouri River crossings. A com parison of the m easure of relief sought and th a t obtained is p o r trayed by the following example:
From Atlanta to New York the former rates on fresh meats and packing house products were, respectively, 99 and 71 cents p er 100 pounds.
T he rates sought in our complaint were 84 cents and 59 cents, respectively, and the rates actually prescribed were 90 cents and 64 cents, respectively.
In conjunction w ith the other southern states we, therefore, filed on Ju ly 3, 1946 a petition for reconsideration on the record already made. The Interstate Commerce Commission, however, denied our petition on N ovember 12, 1946. In the m eantim e the rates had been in effect since Ju n e 14 and it is believed th a t they will be extrem ely helpful to the State, especially as they will encourage the slaughter of additional live stock w ithin Georgia. We still have under consideration the question of further proce dure in order to obtain the full equality originally sought.
Switching Charges
T he Interstate Commerce Commission issued its order in the A tlanta Switching case on November 8, 1946 and prescribed a uniform charge on both competitive and non competitive traffic of $6.93 per car. O ur participation in this case was for the purpose of protecting shippers at A tlanta and also for the protection of the State-owned W estern & Atlantic Railroad. We had recommended a somewhat lower charge than that authorized, but shippers will realize a substantial saving as compared w ith the charges ranging from $8.00 to $18.50 per car originally proposed by the Southern Railway System.
Rates on Road Aggregates
As previously reported th e In terstate Com m erce Commission overruled o u r m otion to dismiss the 13th Section Com plaint filed against this Commission by the railroads alleging that rates on sand, gravel and related articles between points in Georgia dis criminated against out-of-state shippers. A further hearing was held in W ashington on January 8-9, 1946, and we submitted comprehensive testimony designed to show that the rates prescribed by the Georgia Commission were just and reasonable and th at our rate m aking policy of providing the same rate for both single and joint line hauls was in the public interest.
O n Ju ly 1, 1946 an exam iner for the In terstate Comm erce Commission issued his proposed report recom mending th a t the Interstate Commerce Commission dismiss the complaint and find that the Georgia rates were reasonable and non-discriminatory.
T his represented a com plete victory as the rep o rt showed th a t the evidence was overwhelmingly in our favor. We were, therefore, disappointed that the Interstate
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Commerce Commission allowed the railroads to w ithdraw their original petition and dismissed the com plaint w ithout issuing a form al order in line w ith the exam iner's p ro posed report. This action, of course, had the same immediate result as it left the Geor gia Commission free to fix reasonable rates which will protect Georgia shippers. How ever, it would have been m ore desirable to have h ad this favorable decision recorded as a precedent upholding State jurisdiction.
Watermelon Deficit Rule
For many years the railroads have published in their tariffs a rule providing that where watermelons become deteriorated in transit and are abandoned by the shipper at point of destination the railroads will sell the melons at the best available price, applying the proceeds of the sale against the freight charges and that in the event the proceeds do not cover the freight charges the participating railroads will jointly absorb the deficit.
Early in the year the rail carriers filed tariffs proposing to cancel these rules and require shippers to make up the deficit between the freight charges and the amount realized from a forced sale. We did not authorize the changes to become effective on intrastate traffic and filed a petition w ith the Interstate Commerce Commission asking th at these tariffs be suspended insofar as they applied to interstate traffic. T he Interstate Commerce Commission accordingly issued an order on M arch 29, 1946 suspending the tariffs as we had requested. After conferring w ith several of the watermelon growers we asked the Interstate Commerce Commission to defer hearing on the case until after the end of the shipping season, and this request was granted. T he case was then assigned to be heard in A tlanta on September 9, 1946, but was again postponed because we had arranged a conference with the shippers and the railroads in an attem pt to amicably settle the dispute. We finally held our conference on D ecem ber 11, and a t th a t time suggested to the growers that we withdraw our objections to the cancellation of the deficit rule and to a proposal for more rigid packing requirements, provided the railroads would reduce the rates on w aterm elons by 10 p er cent. T h e growers, after considering our suggestion however, decided that they would prefer to concentrate all efforts on keeping the deficit rule in effect. Accordingly, we appeared before the car riers and urged th at they w ithdraw their proposals. We had received no reply to our request by the end of the year.
Interstate Motor Carriers Rates
The m otor carriers operating interstate w ithin the South made effective on M ay 20, 1946 an increase of 20 p e r cent in rates on shipments weighing 2000 pounds and less, and an increase of 10 p e r cent in shipm ents w eighing betw een 2000 and 5000 pounds. T h e 20 p er cent increase was subject to a 20 cent per 100 pounds maxim um and the 10 p e r cent increase was subject to a 10 cent p er 100 pound m axim um . T h e In terstate Commerce Commission did not suspend these increased rates, but did enter into an investigation docketed as MC-C-538. This Commission interested itself in the investiga tion and undertook to obtain a cooperative hearing with participation by the Interstate Commerce Commission and all the interested southern state commissions. It developed, however, that under the cooperative agreement with the Interstate Commerce Com mission in a case involving more than eight states it was necessary that the state com missions be represented by a panel of three cooperators. Accordingly, the m atter of in trastate rates did not come into issue and the scope of the investigation was still further narrowed by rulings made at a pre-conference hearing in W ashington. The
104

case was originally scheduled to be heard in December, but was postponed until a later date.
Passenger T rain Service
Although the smaller railroads in the State have not incurred the same large wage increases which have been forced upon the Class I roads, it appears th at the decline in passenger traffic on these short lines brought about, in p art, by the end of gasoline rationing is having a serious effect on total revenues. T his situation is manifested by applications made during 1946 for authority to discontinue all passenger service on the Gainesville M idland R ailroad and to discontinue p art of the service on the Sandersville Railroad. T he Gainesville M idland had, several years ago, discontinued the operation of actual passenger trains and was supplying passenger service w ith several Diesel pow ered buses w hich operated over the rails. T h e com pany's passenger revenue for the first four months in 1945 was $4,312.95, but for the first four months of 1946 had declined to $2,454.78. Additionally, the company had been ordered by the National Railway Labor Board to employ two men on these buses, although they had been operated successfully in the past w ith only one employee. T he Commission m ade a thorough study of this application and found it necessary to authorize the discontinuance of passenger service w ith the condition, however, that adequate provision be made for handling mail and express.
There was no protest against the application of the Sandersville Railroad to dis continue one round trip passenger train over its 3.9 miles of road. This company still has two round trip passenger trains per day and the evidence showed that the train which the Commission authorized the railroad to discontinue was being operated at an out-of-pocket loss.
Railway Express Agency
Railway Express Agency, Inc. was authorized by the Interstate Commerce ComI mission on O ctober 28, 1946 to increase most first class express rates by 20 cents per
100 pounds; to increase second class express rates by 15 cent p er 100 pounds, and to make certain revisions in its charges on shipments weighing less th an 100 pounds. This petition was supported by testimony showing th at wages had been substantially in creased and th a t loss and dam age claims for 1946 were running some 400 p er cent greater than in 1942. On December 9, 1946 this Commission authorized the Express Company to make substantially the same changes on Georgia intrastate traffic but limited the increases to a period of one year, calling attention to the fact that the Interstate Com merce Commission had notified the Express Company th at it should file a perm anent proposal for revised rates. This Commission took the position in its order th at such a perm anent proposal should accomplish uniformity of express rates throughout the U nited States and the removal of the discrimination against the South which has resulted from a lower scale of rates in Eastern Official territory.
D uring the past year the Commission has also authorized the Express Company to m ake certain reductions in rates on ice cream mix, a comm odity which is now being m anufactured in Wilkes County.
M otor Carrier Embargo
On M ay 23, 1946 a strike of enginemen and trainm en brought to a halt the service of all the principal railroads in the U nited States and forced an unprecedented burden on the highway transportation facilities of the nation. This Commission prom ptly
105

issued an order requiring th at no m otor carriers subject to its jurisdiction should accept for transportation any commodity other than those in eight essential groups, including food, feed, medicines, petroleum products, et cetera. The order provided for certain exceptional circumstances when other commodities could be transported so as to perm it the fullest utilization of highway transportation. The m otor carriers cooperated to the fullest extent and performed a miraculous service in providing all the essential transpor tation requirements of the State until May 27, when the order was rescinded because the rail carriers had resumed operations.
Railroad Abandonments
The Gainesville M idland Railroad filed an application with the Interstate Com merce Commission on June 28, 1946 asking authority to abandon its line of railroad extending from Belmont to Monroe, in Jackson, Barrow and W alton Counties. We con ferred with interested parties along the line, who vigorously objected to the application, and as a result we m ade an investigation, from w hich we concluded th a t it would be reasonable to oppose the application on the grounds that the public convenience and necessity of the area served by the railroad required its continued operation. We took an active p a rt in the hearings held in W inder on O ctober 16-17 and filed exceptions to the exam iner's report w hich recom mended approval of the application. I t is expected th at the case will be orally argued early in 1947 and we are still hopeful th at this rail road may continue operating.
On June 26, 1946 the Flint River and N ortheastern Railroad Company applied to the Interstate Commerce Commission for authority to abandon its entire line extending from Pelham to Ticknor, in M itchell and Colquitt Counties, a distance of 23.33 miles. No opposition developed from citizens of the territory adjacent to this line of railroad and accordingly the Commission did not file any objections w ith the Interstate Com merce Commission. The m atter was handled by the Interstate Commerce Commission w ithout a hearing, and on Septem ber 3, 1946 an order was issued authorizing the aban donm ent after 15 days' notice.
UTILITY REGULATION
Electric Utilities
As a result of an investigation instituted by the Commission on Decem ber 19, 1945, an order was issued on February 11, 1946 prescribing a reduction in the residential and commercial rates of Savannah Electric and Power Company. The reduction was justi fied based on the earnings of the Company and as a result of the elimination of the Federal Excess Profits T ax beginning in 1946 and also by reason of the disposition of the Savannah Electric and Power Com pany of its street railw ay and bus properties. The sale of the transportation properties in Savannah was authorized by the Commission on D ecem ber 28, 1945. As a result of these changes a reduction in rates in the am ount of $127,300 per annum was w arranted and the order of the Commission effected this am ount of savings to the public. A novel rate treatm ent in this order was the elimina tion of prom pt paym ent discounts w hereunder no added surcharge or penalty will become due by reason of delayed paym ent of bills. New rates were made effective on and after A pril 1, 1946.
Savannah Electric and Power Com pany filed an application w ith the Commission requesting authority to refinance all of its outstanding 6 per cent cumulative preferred
106

stock consisting of 10,000 shares of $100.00 par value each, all in the total am ount of $1,000,000 by calling in the entire issue at the redem ption price of $120.00 per share. In order to accomplish this refinancing, the Savannah Company requested approval of a loan from the Fidelity-Philadelphia T ru st Company, the U nion T rust Company of Pitts burgh and the Citizens and Southern N ational Bank of Savannah in the amount of $900,000 paying interest a t the rate of 2.35 per cent per annum and repayable in 10 an nual installments. After hearing and investigation it was found that the proposed re financing reduced the annual fixed obligations of the Company and the issuance of securi ties was authorized on M arch 8, 1946.
O n August 8, 1946, the Commission prescribed a plan for the amortization of miscellaneous intangible capital on the books of the Savannah Electric and Power Company. As a result of the Commission's prescribing original cost accounting for electric utilities, it was found that the books of the Savannah Electric and Power Com pany reflected an excess as of Jan u ary 1, 1946 of $2,716,778.88 over the original cost of the plant and equipm ent of the Com pany when first devoted to public service. Of this am ount 60 per cent was assigned to railway property and 40 per cent was deemed to be the electric intangible balance. Since there was no determ ination as to the division of the total intangible capital between A ccount 100.3 P lan t Acquisition A djustm ents and Ac count 107, Plant Adjustments, the Commission directed that the total am ount be charged to A ccount 146, O th er D eferred Debits. T h e Com pany was directed to amortize these amounts beginning not later than December 31, 1946, by:
1. An annual am ortization of the am ount allocated to the electric departm ent of not less than $45,279.63.
2. An annual am ortization of the am ount allocated to the transportation de partm ent of not less than $67,919.44.
3. An additional am ortization of the am ount allocated to the transportation departm ent equal to the total accum ulated earned surplus at the end of each year which is not required for common stock dividends under the m ortgage indenture of the Company.
O n A pril 15, 1946, representatives of Georgia REA cooperative organizations m et with the Commission to discuss the wholesale rate of Georgia Power Company applicable to the purchase of electric energy for resale. These representatives suggested that a substantial reduction should be made in the wholesale rate and that a much simpler form of rate schedule should be prescribed. As a result of this m eeting the Commission undertook a nationwide study of rates applicable to similar service in other states. This comprehensive study was undertaken immediately after the conference and was com pleted on June 7, 1946 and represented the com pilation of 101 different wholesale electric rates and contracts together with the actual application of each of these rates and con tracts to the annual pow er requirem ents of 12 representative cooperative organizations operating in Georgia. The study, which was distributed to all Georgia cooperatives, developed the total cost of power and the average cost per kilowatt hour for each of the 12 cooperatives under the numerous rate schedules. A t the invitation of the Commis sion representatives of the Georgia cooperatives m et with the Commission on September 27, 1946 at which time the cooperatives repeated their views th at the Georgia wholesale rate should be reduced and simplified. The representatives agreed that the Commission would determ ine w hat rate revisions should be m ade w ithout the necessity <3f holding formal hearings with attendant delays. This m atter was concluded about
107

the end of the year and on Ja n u a ry 9, 1947, the Commission prescribed a m uch simpler ci

rate schedule w hich effected annual savings to the R EA cooperatives of $66,810 based c<

on the level of consum ption a t th a t time. . This substantial rate reduction should make si

possible further extensions of electric service to the rural areas of Georgia by the n

cooperative organizations.

ei

ai Gas Utilities

O n April 25, 1946, Georgia Gas Company was authorized to establish a new schedule of rates for gas service in Gainesville, G eorgia to reflect an increase in the h eat ci content of gas distributed from 540 B T U to 1300 B T U p er cubic foot. T h e new rate b; represented a saving of approxim ately $6,000 p er annum to the gas consumers in Gaines ir ville and represented an average reduction of approxim ately 15 per cent to all consumers ir who used gas service for other than heating purposes. T he reduction in the aggregate li was 11.8 per cent of the gross revenue of the C om pany. T h e higher h eat content of gas ai

distributed affected an increase in the capacity of the gas distribution system in Gaines

ville. T he order provided that Georgia Gas Company make all necessary adjustm ents and |

orifice replacem ents on consum er appliances at its own expense so th a t such appliances r

would operate satisfactorily and efficiently on the new gas distributed

s

In order to obtain an increase in the distribution capacity of its Athens and V al F

dosta gas distribution systems, the A tlanta Gas Light Com pany requested authority to E

increase heat content of gas in those cities from 530 BTU to 850 BTU per cubic foot V

and to establish a new rate schedule to reflect the higher heat content of gas distributed. B

T he new rate made no m aterial change in the cost of gas service in those cities, and was B

approved on A pril 30, 1946.

B

S South A tlantic Gas Com pany was authorized on December 18, 1946 to issue and sell

$250,000 principal amount of 3 per cent First M ortgage Bonds, the proceeds from

which to be used for the paym ent and discharge of notes of the Company in the sum of

$225,000 and for the addition of $25,000 to the cash working funds of the Company.

T he order further provided for the issuance of $50,000 principal am ount of additional o

bonds of the same series upon specific conditions and evidence to be subm itted to the P

Commission prior to the issuance and sale thereof.

T he Commission issued a rule nisi against the A tlanta Gas L ight Com pany on

December 28, 1945 requiring it to show cause why reduced rates for natural gas service should not be prescribed. D uring the period of the investigation of these rates, a reduc

o

tion in the wholesale rate of Southern N atural Gas Company for natural gas supplied

to A tlanta Gas Light Company was made and on December 31, 1946, the Commission

ordered a reduction in the natural gas rates of the Atlanta Gas Light Company in the

am ount of $734,500 per annum. Some 6 new and reduced rate schedules were pre r scribed after careful investigation and after notice to the public and individual notice to
a each gas consum er using over 200,000 cubic fedt per day. T he new rates represent the f( lowest rates ever in effect for natural gas service in Georgia
j'

Telephone Utilities

l

1 T he Commission received m any complaints w ith respect to the character of tele n phone service provided by various independent telephone companies. T he inadequate s service appeared to result somewhat from the lack of availability of materials and equip m ent necessary to properly improve telephone service. This shortage of equipm ent being

a result of dedication of m anufacturing equipm ent to war requirements and the delay in

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civilian production occasioned by necessary reconversion. However, a num ber of companies did not have satisfactory plans for m aking service adequate and the Commis sion found it necessary to issue a num ber of rules nisi to show cause w hy service should n o t be im proved. Some 11 such rules nisi were issued during the year against independ ent telephone companies some of which were satisfactorily disposed of during the year and all of which served to obtain improvem ent in telephone service.

T he Commission issued several decisions during the year on application for in creased rates by independent telephone companies. These authorizations were granted based on showings of increased costs of operations and generally represented the first increase in telephone rates for these companies above the level prescribed by the Com mission in 1933, a t which time costs of operations were m uch lower. T he following list gives the nam e of each applicant, the date of the Commission's decision and the amount of annual revenue increase requested and granted.

Name of Company
Danielsville & Comer Tel. Co. Sikes Telephone C om pany Farmers Tel. Co. (Springfield) Darien Telephone Company Wilkes Tel. & Electric Co. Butler Telephone Co.) Reynolds Telephone Co.) R oberta Telephone Co.) Standard Telephone Company

Date of O rder 1/4/46
2/28/46 8/29/46 8/29/46 8/29/46
8/29/46
12/31/46

Annual Revenue Increase

Requested

G ranted

$ 951 1,165 960 276 450

$ 951 1,165 960 276 450

2,400

2,400

2,298

2,298

TOTAL

$8,500

$8,500

In addition to the above the Commission authorized Blakely Telephone Company on June 25, 1946, to obtain a bank loan in the amount of $37,500 for the purpose of im proving telephone plant and equipm ent in Blakely, Georgia.

Telegraph Utilities

There were no changes in telegraph rates during the year and no significant devel opments in respect to telegraph service.

W ESTERN & ATLANTIC RAILROAD
As referred to in our report for the year 1945, the construction of the Allatoona D am across the Etowah River, just below the m outh of Allatoona Creek will create a lake in the Allatoona Creek area, w ith a proposed maximum surface elevation of 868.8 feet. This pool level would completely inundate segments of the W & A Railroad and jeopardize the stability of other segments. According to the D epartm ent of Mines, M ining, and Geology of the State of Georgia, two m ajor geological faults merge in the Allatoona area and cross the pool and railroad. These faults will in all probability make the stabilization of the present railroad road bed quite expensive. T he railroad should, therefore, be reconstructed before the creation of the pool on such line and grade as will need no future improvements.
F urther pursuing the efforts commenced in 1945 to make necessary arrangements for

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the proper relocation of the State-owned W & A Railroad, several meetings were held during 1946 w ith representatives of the U . S. A rm y Engineers and the N . G. & St. L. Railway, Lessee of the State-owned road. Valuable assistance was rendered the Com mission in negotiations by D r. A. S. F urcron, Assistant State Geologist, w ith respect to soil conditions and geological formations in the area under question. Although some progress was made, this m atter was not concluded at the end of the year.
T he annual report of the N. C. & St. L. Railway, Lessee of the State-owned W estern & A tlantic Railroad for the calendar year ended December 31, 1946 shows for net expenditures charged to the accounting classification Additions and Betterments by classes of railroad property, the following amounts:
Im proved track m aterial ....................................... .......................... ...........$ 62,393.05 Bridges, trestles and culverts ......................................................... ............. 14,733.70 Y ard tracks and sidings ......... ....... ............... ................................ .............. 15,750.52 C hange of alignm ent ................... ......................... ....... ....... ..........-....... --. 494,327.85 Signals and interlockers ~...................................... :....... .............................. 183,913.62 Station and Office Buildings ...................... - .....................- ...... -.............. 37,966.57 W ater stations ....................... ............................... -- ....................... ---.......... 3,362.98 Right-of-w ay and station grounds ........................................................ -- 1,307.95
T otal ......... ......................................... ........................... ......................... $813,756.24 The above net additions reported are after deductions for property retired and not replaced during the year in the aggregate amount of $20,554.10, and the total net im provem ents to the W estern & A tlantic R ailroad from Jan u ary 1, 1944, through D ecem ber 31, 1946 is $1,511,872.47.
Respectfully submitted, W alter R. McDonald, Chairman M att L. M cW horter, Vice Chairman Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
110

75th REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1947
in

75th R EPO R T OF GEORGIA PUBLIC SERVICE COM M ISSION
1947
T O HIS EXCELLENCY, M. E. THOM PSON ACTING GOVERNOR OF GEORGIA:
As provided by law, the G eorgia Public Service Commission submits herew ith its 75th A nnual R eport of the regulatory activities of the Commission for the year ending December 31, 1947.
PERSONNEL AND STAFF
The membership of the Commission remains unchanged since the last report. Effec tive August 27, 1947, W alter R. M cDonald was re-elected C hairm an of the Commission and M att L. M cW horter was re-elected Vice Chairm an for the ensuing two years; the Commission as now constituted being:
W alter R. McDonald, Chairman M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
T he only change in the staff was the resignation of O rrin S. Vogel, V aluation Engineer, on July 15, 1947, to accept a position w ith the Florida Power C orporation and the em ploym ent of F ran k K nox as R eporter on D ecem ber 29, 1947. George Long, M otor C arrier Inspector, died early in the spring of 1947.
M O TOR CARRIER REGULATION
Bus Service
In the last report of the Commission mention was made of the granting of certifi cates of public convenience and necessity to A tlanta N orthern Lines, Inc. and South eastern Greyhound Lines, for the purpose of substituting bus service for street railway service between M arietta and Atlanta, Georgia.
O n January 28, 1947 the Commission accordingly approved an application of At lanta N orthern Lines, Inc. to discontinue operations of the suburban street railroad taken over from A tlanta N orthern Railway Company and to operate bus schedules in lieu thereof. O n F ebruary 11, 1947, the Commission approved an application of A tlanta N orthern Railway Com pany to surrender its charter and franchise to be a corporation and dissolving it as a corporation. Since the bus operations under m otor carrier certi ficates parallel the street railway operation and continue to serve all points formerly served by the street railway company w ith more frequency of schedules the Commis sion has received very few complaints after the lapse of sufficient time for proper adjust ment of schedules and installation of the necessary type of equipment to take care of the load factor.
O n M arch 10, 1947, the Commission issued an order against Southeastern Stages, Inc. requiring the erection at W ashington, Georgia, of a bus station sufficiently adequate
113

to m eet the requirem ents of the traveling public and so located as to suit the convenience of the public. A t the same time the Commission issued a joint order against South eastern Stages, Inc. and Southern Stages, Inc. requiring these two bus companies to provide adequate bus station facilities at Eatonton, Georgia. Both of these orders were issued following complaints and public hearings. O n December 22, 1947, the Commission issued another order against Southeastern Stages, Inc. requiring the erection of proper bus station facilities at Thomson, Georgia, following com plaint and hearing.
On August 20, 1947, the Commission denied the application of T rion Coach Lines, Inc. for an intrastate certificate between Rock Springs, Georgia and the Tennessee State line, destination Chattanooga, Tennessee, following a hearing which was protested by the Southeastern Greyhound Lines, Southern Coach Lines, Inc. and ChattanoogaChickam auga Bus Line on the ground th at the application failed to show that the existing intrastate services between Rock Springs and the Tennessee State line are inade quate or that public convenience and necessity required the granting of the certificate.
W ith the continued increase in equipment supply, bus transportation has con tinued to improve and the Commission has received very few complaints on the service being rendered.
O n November 8, 1947, the Commission issued an order authorizing Southeastern G reyhound Lines to become a self-insurer. A lthough the M otor C arrier Acts of 1931 included a provision for carriers under the jurisdiction of the Commission to become self-insurers in lieu of filing a bond or policy of indem nity insurance the application of Southeastern Greyhound Lines provided the basis for the first comprehensive investiga tion into the conditions and procedures connected with granting such authority. In approving the application the applicant was required to m aintain a separate reserve, either in cash or bonds or securities issued by the U nited States of America, in the total am ount of not less th an the liabilities incurred from accidents occurring in the state of G eorgia during the preceding twelve months, or 33 Yz% of the total liability incurred from accidents occurring within the state of Georgia in the preceding thirtysix m onths, w hichever am ount is greater. T he C om pany was fu rth e r required to file w ith the Commission n o t later th an M arch 15 of each year, beginning w ith the year 1948, a report showing the am ount (in dollars) of claims filed for personal injury or property damage resulting from accidents occurring in the State of Georgia during the preceding year; the estimated (or actual if determined) liability incurred from such accidents; the amount accrued in the special reserve provided for, and the amount paid for such reserve and the balance rem aining on h an d on D ecem ber 31 of the preced ing year. The authority granted was predicated upon the determination that the financial condition of the applicant was such th at it would be able to satisfy its obliga tions for personal liability and property damage liability, w ithout affecting the per m anency or stability of its operations as a m otor carrier "for hire", w ith the provision that said authority would be revoked at any time it was determined that the financial condition of the applicant would not w arrant the continuance of such auhority.
Truck Service
The financial condition of the M otor Truck Carriers has continued to improve since the last report of the Commission, and there has been no further bankruptcies; however, one carrier, Atlanta-Savannah Transport, Inc. found itself in financial diffi culties and the Commission approved the transfer of certificates operated by this carrier to other carriers w ith continuation of service w ithout detrim ent to the public.
114

A portion of the territory formerly served by K. & L. Transportation Company, which w ent into bankruptcy in 1945 and which the Commission mentioned in its last report, rem ained w ithout any truck service until November of 1947, at which time ap plications were made to the Commission by three different applicants to perform service between M acon and Waycross. These applications were m ade by Davis Truck Lines, Inc., of Macon; Elliott Truck Lines, Inc., of Milledgeville; and M offett T ransit Lines, of Macon. T he application of Davis Truck Lines, Inc. between M acon and Waycross, via Ocilla, Valdosta and Douglas, and other interm ediate points was approved; and the application of M offett T ransit Lines between M acon and Douglas via Hawkinsville and M cRae, was approved but the application of Elliott Truck Lines, Inc. was denied.
W hile the Commission frequently suspends certificates of public convenience and necessity for allowing insurance coverage to lapse no orders were issued by the Com mission cancelling certificates except where operations were discontinued and the certif icates surrendered for cancellation, except in the case of a rule nisi issued against J. J. Crane & Sons, Rossville, Georgia, holder of a Class "B" , irregular route, certificate for financial irresponsibility, and the Commission issued an order on O ctober 14, 1947, cancelling said certificate for financial irresponsibility, no response having been made at the hearing on said rule nisi.
O n M arch 14, 1947, the Commission granted an application to M otor Service, Inc. for the issuance of a Class "E" (contract carrier) certificate of public convenience and necessity to transport Coca Cola flavoring syrup in containers, and empty containers on return, between points in Georgia for the account of T he Coca Cola Com pany only. This application was protested by a m ajority of the regular route Class "A" m otor carriers operating in and out of A tlanta to other points in Georgia, on the ground that the granting of such a certificate would m aterially reduce the revenues of the protesting carriers. In granting contract carrier certificates the Commission has adhered to its rule of limiting each carrier to not more than three contract customers, which limita tion has ordinarily discouraged application for Class "E" Certificates. T he Commis sion in granting Class "E" Certificates has kept in mind the principle th at prim ary consideration should be given to the effect th at the granting of such certificates would have on the services rendered by the common carriers to the general shipping public w ithout unnecessarily or unjustly penalizing a shipper whose traffic, because of the peculiar nature of lading, or peculiar conditions surrounding its shipments, does not lend itself satisfactorily to the common carrier service. T he Commission concluded, however, th a t the applicant's service was needed by T h e Coca C ola C om pany, and th a t the loss of revenue to the protestants would not be m aterial, nor affect their n et revenue to a great extent.
Enforcement
T he same Inspectors continued in the employ of the Commission in the work of the enforcement of the M otor Carrier Laws and Rules and Regulations adopted by the Commission until the death of M r. George W. Long, of Augusta, Georgia, in the early p art of the year, who had been in the employ of the Commission since January 1937. M r. Long's position was no t filled during the year b u t his work was distributed am ong the rem aining seven Inspectors. The duties of these Inspectors have been outlined in previous reports and it is sufficient to say in this rep o rt th a t the experience of the men employed in this work for a number of years has enabled them to cover the entire state very effectively, notwithstanding an increased competitive condition due to the purchase

of trucks by m any retu rn in g veterans, who in ignorance of the fact th a t a veteran's license would not perm it the operation of trucks in the transportation of property for hire w ithout a certificate of public convenience and necessity have nevertheless under taken this business in m any instances. Such violators, however, have consistently dis continued operations when properly informed concerning the requirements of the M otor Carrier Law.
T he Commission received in license fees during the calendar year the am ount of $129,850.00, of w hich am ount the Commission's Inspectors were responsible for re m itting $82,415.00; the am ount of $40,050.58 was rem itted by the Commission's In spectors to the M otor Vehicle U nit of the D epartm ent of Revenue for State license tags in addition to the fees rem itted to this Commission for the issuance of Public Service Commission tags.

RECIPROCAL AGREEMENTS
Following an am endm ent of Code Section 68-1003 at the 1947 session of the G eneral Assembly authorizing the Commission to execute reciprocal agreements providing for full reciprocity in lieu of occasional operations, the Commission during the latter p art of the year executed new reciprocal agreements providing for full reciprocity with the States of Alabama, N orth Carolina, Ohio, Pennsylvania and Tennessee.

TRANSPORTATION

General

T h e Commission passed inform ally upon 81 m atters relating to transportation rates and services and issued w ritten opinions on the cases listed below:

Docket No. 8451-A

Date M arch 28, 1947

Subject
Application of Rail Carriers for increased freight rates. (Ex Parte 148 and 163)

Disposition
Granted with excep tions

8th Supt. 4592-A

M arch 28, 1947 D eterm ination of level of rail Scale prescribed rates on sand, gravel, etc.

1st Supt. 8451-A 8306-A
6808-A
2nd Supt. 8451-A

A pril 1, 1947 A pril 7, 1947 June 10, 1947 Sept. 24, 1947

A djustm ent of rail increase on rates on pulpwood
Application of South Georgia Ry. to apply rates on pulpwood in excess of Commis sion's orders
Application of rail carriers to increase level of rates on as phalt, tar, etc.

Increased limited to 9 per cent
Denied
G ran ted

A djustm ent of rail increases on Increase removed rates on scrap iron

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8681-A 8771-A 8399-A

Nov. 14, 1947 Nov. 14, 1947 Feb. 11, 1947

Application of A.C.L. Railroad to discontinue p a s s e n g e r trains Nos. 59 and 60 be tween Waycross and Bruns wick
Application of Central of Geor gia Railway to discontinue passenger trains Nos. 11 and 12 between M acon and A t lanta
Petition of Griffin M o t o r Coaches for increased fares

G ranted G ranted Approved

8476-A

Feb. 28, 1947

Rule Nisi against Southeastern Greyhound Lines concerning service to and from Dalton

M a d e returnable M arch 11, 1947

8540-A

M ay 27, 1947

Bus fares between A tlanta and Increase approved M arietta

8536-A 7203-A

June 10, 1947 Ju ly 8, 1947

Regular route motor carrier minimum charges
Temporary motor carrier rate increases

H i g h e r minimum charges prescribed
Expiration date ex tended

8181-A

July 8, 1947

M otor carrier rate increases

O rder of August 28, 1946 further modi fied to remove certain exceptions

8653-A

Aug. 20, 1947 Bus fates to and from D alton

H igher fares author ized

8654-A

Aug. 20, 1947

Bus fares to and from D ry H igher fares author

Branch and Kaolin Mills

ized

8708-A

Nov. 14, 1947

Petition of Suburban Transit Lines, Inc. for authority to increase fares

Approved

8742-A

Dec. 17, 1947

Application of regular route motor carriers for authority to increase rates

G ranted in part

Bus Fares

T he only changes m ade in intercity bus fares in 1947 affected the relatively small operators. T he principal lines continued to assess fares on the basis of 1.65 cents. Comm utation fares, however, were increased between A tlanta and M arietta shortly after A tlanta N orthern Lines, Inc. and Southeastern Greyhound Lines began providing the service form erly offered by the street railway between those two points. T here were also small increases made in commutation fares between D alton and the Georgia-Tennessee

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State Line and between M acon and K aolin Mills. T he fares of Suburban Coach Company were increased slightly on several of its routes operated in the Atlanta area. The in crease in use of automobiles since the end of gasoline rationing is the ap p aren t reason that the suburban or commutation type carriers are experiencing a greater decline in traffic than the intercity carriers, and it also appears th at increased costs have had a somewhat greater im pact on short haul service.
Truck Rates
T he Commission on Ju n e 10, 1947 authorized the m otor carriers to increase their minimum charge per shipment from 65 cents to 85 cents on shipments handled by one line, and to $1.05 on shipments handled by two or more lines. T he evidence showed th at the increased cost of pick-up and delivery service, and other term inal costs had made the 65 cent minimum charge unrem unerative, and that larger shipments were subsidizing the extrem ely small packages. It was also thought th at the higher minimum charge would produce sufficient revenue to forestall any further rate increases and that it would be possible to begin the development of a sound m otor carrier rate structure based upon m otor carrier operating costs and otherwise conforming to the needs of the shippers and the motor carrier industry.
O n Septem ber 15 a delegation of Class "A" carriers called upon the Commission and indicated their willingness to undertake the development of such a rate structure, but asked th at they be given immediate relief in the form of higher rates. After we declined to grant immediate relief on the basis of this oral request the m otor carriers filed a form al petition seeking increases ranging from 15 p er cent to 25 p e r cent. A fter several days of hearing, at which it was developed that wages of drivers, helpers and office personnel had been increased from 32 p er cent to 100 p er cent since 1941, th a t prices of m aterials and supplies had gone up in excess of 17 per cent since 1946, and th a t insurance premiums had also been substantially raised, the Commission authorized in creases in class rates of 12 p er cent; in com petitive com m odity rates of 15 p e r cent; and in prescribed commodity rates of 25 per cent. These increases amounted to approxi m ately 80 per cent of those requested by the carriers.
T he Commission, however, made the higher rates subject to an expiration date of Septem ber 1, 1948 and a t the same time lim ited the application of previously authorized increases to the same date and directed the m otor carriers to forthw ith proceed with the establishment of a new rate structure. We realize that the development of an entirely new system of m otor carrier rates will be a tremendous undertaking but we are hopeful that beneficial results can be obtained within the near future.
Railroad Rates Ex Parte 162 and Ex Parte 166
T he increases authorized by the In terstate Com m erce Commission in Ex P arte 162 becam e effective on Jan u a ry 1, 1947 and took the place of the Ex P arte 148 increases w hich had been reinstated since Ju ly 1, 1946. T his Commission h eard the railroads' petition for corresponding intrastate increases on M arch 26, and on M arch 28 an order was issued perm itting substantially the same increases as those authorized by the Inter state Commerce Commission except th at only six per cent was allowed on logs and no increase was perm itted in rates on road building material, consisting of crushed stone and asphalt mixed together. Increases somewhat smaller than those authorized for interstate traffic were allowed on certain other commodities
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On September 24 the Commission further modified its findings by rescinding the increase allowed on scrap iron. This action was made necessary because intrastate rates in Alabama had not been raised and Georgia m anufacturers, who consume scrap iron, were suffering a substantial disadvantage in competition with Alabama manufac turers.
O n July 3, 1947 all the railroads in the U nited States filed a petition for fu rth e r increases in freight rates. Following the pattern established by the Interstate Commerce Commission, responsive to the position we took in Ex Parte 162, the railroads asked for an increase of 25 per cent in Eastern or Official territo ry and only 15 per cent in the South and the West. This case was docketed by the In terstate Commerce as Ex P arte 166 and it differed from Ex P arte 162, in th a t the railroads asked for sufficient revenue to provide a fair return on investment.
This Commission, in cooperation w ith 24 other state commissions in the U nited States, took a very active part in this entire proceeding, and jointly employed a na tionally recognized economist who presented detailed testimony as to the effect of the proposed increases on the economy of the nation, and also subm itted revenue predictions and various other calculations.
O n Septem ber 5 the railroads am ended th eir petition by adding 13 per cent to the am ounts originally asked, m aking a total of 28 p er cent in the South and 38 per cent in the East. This additional request was based on an increase in wages of non operating employees and a $1.00 per ton increase in the cost of coal which resulted in additional annual expense of $625,000,000. T he railroads asked that they be given im m ediate authority to raise all freight charges by 10 per cent and th a t the In terstate Commerce Commission then proceed w ith the hearings on the petition for perm anent increases.
O n O ctober 6 the Interstate Comm erce Commission authorized the 10 p er cent in crease on an em ergency basis and it becam e effective on O ctober 13, the Commission's order providing for an expiration date of June 30, 1948.
O n November 1 additional wage increases were granted to operating employees at an estimated cost of $165,600,000 and shortly thereafter the railroads further am ended their petition by 3 per cent, resulting in a total asking of 31 p er cent in Southern and W estern territories and 41 p er cent in Official territory.
Following hearings which were held in various sections of the country, and oral a rg u m e n t at which the Georgia Commission was represented, the original order of the Interstate Commerce Commission was amended to provide for a 20 per cent increase in lieu of the 10 per cent authorized on O ctober 6. This latte r increase was also m ade subject to an expiration date of June 30, 1948, and at the close of the year the case was still under advisement by the Interstate Commerce Commission w ith a final order expected sometime early in 1948. Thus within the space of one year interstate rail road rates have been raised in some cases as m uch as 44 p er cent in the South and 50 per cent in Official territory.
We did not assign for hearing during 1947 the carriers' petition for intrastate increases corresponding to the interstate Ex Parte 166 authorizations.
Class Rate Case
T he Class R ate case was argued before the Supreme C ourt on M arch 28 of this
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year by joint counsel representing Georgia, along with the other southern states. The decision was announced on M ay 12, 1947 and by a vote of seven to two the court upheld the favorable decision for w hich we have worked so long. I t is thought th at this Supreme C ourt decision will be of great benefit in future cases involving equalization of rates.
O n A ugust 22, 1947 the first benefits of our class rate fight were realized when rates on all traffic moving on class rates and classification ratings were reduced by 10 per cent in the South and between the South and N orth, while rates on the same traffic w ithin the N orth were increased by 10 per cent. T he In terstate Comm erce Commission, however, changed the measure of increases form erly authorized in Ex P arte 162 so as to perm it a 22/2 per cent increase on class rates traffic, both in the N orth and in the South. This action was taken so as to prevent a greater equalizing effect than had originally been intended by the interim order.
T he next step in this case is to form ulate a uniform classification of all freight and this m ust be done before absolutely equal class rates m ay be m ade effective. In a public hearing on August 5 the railroads submitted proposals for uniform classification rat ings on four groups of freight, representing perhaps tw enty per cent of the entire task. This Commission particip ated in the hearing and is keeping in close touch w ith the entire program for the purpose of securing as rapidly as possible a fair and equitable classification.
Rates on Road Aggregates
W hen the railroads withdrew their T hirteenth Section Complaint in the face of a recommended ICC order favorable to our position, it made it possible for the Georgia Commission to prescribe affirmatively a merged scale of rates on sand, gravel, crushed stone and related articles. It will be recalled from our previous reports that the Com mission had prescribed on Ju ly 11, 1944 such a 'm e rg e d scale, b u t the carriers had voluntarily reduced rates for single line application by 5 cents per ton below the pre scribed scale and then filed a T hirteenth Section Complaint with the Interstate Com merce Commission alleging that the Georgia rates discriminated against and created a burden on interstate commerce.
Accordingly, after this com plaint was w ithdrawn we issued a rule nisi on January 31, 1947 requiring the carriers to show cause why the previously prescribed scale should not be observed as both m inim um and m axim um rates. This case came on for hearing on M arch 26, and on M arch 28 the Commission issued its order m aking the July 11, 1944 merged scale the maximum and minimum rates to be charged by all railroads in Geor gia. These rates were also made subject to the increases authorized on the same day, except th a t this Commission placed a m axim um increase of 10 cents per ton on this com m odity instead of the 15 cent per ton m axim um observed on interstate traffic.
T he rail carriers did not oppose the Commission's order and for the first time in m any years we have been able to require the observance of rates on road aggregates responsive to the requirem ents of the State's economy and sound regulatory principles.
Watermelon Deficit Rule
It had been hoped that the railroads would withdraw their proposal to cancel the deficit rule on waterm elons described in our last year's report. O n A pril 10, however, we were advised th a t as a result of our conference w ith the railroads, held on Decem ber
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11, 194 6 , they had merely agreed to postpone the effectiveness of their tariffs for an additional six months. Accordingly, we proceeded w ith our preparation for the ICC hearing which was held on April 2 9 . We assisted the growers in their presentation and filed a brief, but on O ctober 3 1 , 1947 the Interstate Commerce Commission issued an order authorizing the cancellation of the rule. T h e In terstate Commerce Commission, did not find th at the deficit rule was unlawful, but based its decision on the principle th at its limited application resulted in discriminations and tended to disprove the necessity for the rule.
We are now considering w hether it would be advisable to request reestablishment of the deficit rule and extension to all territories, or if it would be preferable to seek a reduction in rates on watermelons.
Interstate Motor Carrier Rates
` As reported last year we took p a rt in an investigation of interstate m otor carrier rates w ithin the South and were extremely hopeful th at we could obtain a uniform basis of rates more responsive to the needs of the industry.
It developed, however, th at the Interstate Commerce Commission placed a very restricted interpretation on the scope of the hearing. Because of this the other state commissions in the South concluded not to participate further. We remained in the case, however, and in cooperation with the Southern Traffic League presented expert te stim o n y which resulted in a somewhat smaller increase than that originally sought by the motor carriers.
Passenger Train Service
On August 4 , 1947 the A tlantic Coast Line Railroad Company filed an application w ith the Commission for authority to discontinue operation of its passenger trains n u m ber.! 5 9 and 6 0 betw een Brunswick and W aycross. T he Commission set the case down for hearing on August 28, and a t that time heard evidence from the railroad and protests from m any interested citizens. After due consideration the Commission issued its order on November 14, authorizing the A tlantic Coast Line R ailroad to cease, operation of the trains after giving proper notice. The Commission declined to consider several of the expense items claimed by the railroad, but even w ith the elimination of these amounts it was not possible to justify continuance of the service because the cost of fuel and wages alone equalled approximately 4 0 0 per cent of the total revenues earned by the trains.
T he Commission also authorized the C entral of Georgia Railway Company to dis continue operation of its passenger trains numbers 11 and 12 between M acon and A t lanta. The evidence showed that these local trains were losing $67,740.00 per year and th a t the cost of fuel and w ater, plus wages of the train crew, was in excess of the total revenue.
O n Ju ly 17, 1947 the C entral of G eorgia R ailw ay C om pany established a m odem Diesel powered streamlined coach service between A tlanta and Savannah. A few months earlier this company had placed the same type of equipm ent in service between A tlanta and Columbus. These trains render perhaps the most m odern passenger service provided anywhere in the U nited States and represent the most progressive step taken by any of the railroads in the South toward the preservation of passenger revenue. The Cen tral of Georgia Railway also secured authority from the Commission to establish on a
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trial basis drastically reduced passenger fares applicable to five day lim it round trip tickets. These fares are based on 1.32 cents p er mile as opposed to the 1.98 cents p er mile charged for round trip transportation by other railroads in the state. I t is our information that the experience of the Central of Georgia Railway has been ex tremely favorable, especially in the case of the Atlanta-Columbus run where four unprofitable local trains were replaced by the Diesel equipm ent w hich is now being operated at a profit.
Passenger Train Service
Acting on a com plaint filed by citizens a t Alma, the Commission ordered the A t lantic Coast Line Railroad Company to provide adequate station facilities at that point, and as a result the com pany has now erected a m odern passenger and freight depot, and has eliminated a serious traffic hazard which formerly existed.
Rates on Peaches and Fresh Vegetables
Since 1938 the railroads have m aintained rates on fresh peaches from Georgia and the Carolinas to large northern consuming points on the basis of 36 per cent of inter territorial first class rates. These rates w hich were established to m eet truck com peti tion and to stim ulate the peach industry following severe set-backs suffered by the industry in 1936 and 1937, were made subject to an expiration date, but had been extended from year to year, the latest extension providing for an expiration date of M arch 31, 1947. Early in the year we took up w ith the railroads in Georgia the m atter of further extending the rates and found th at while the southern lines were agreeable to a further extension, they could not obtain concurrence from the northern railroads. Accordingly, this Commission filed a lengthy petition for suspension of the tariffs pro viding for the cancellation of the lower rates. T he Interstate Commerce Commission granted our request and set the case down for hearing on M ay 15. W e prevailed upon the Interstate Commerce Commission, however, to postpone the case until September 9 so th a t the growers would be allowed to finish th eir shipping season. L ate r we secured a further postponement until O ctober 28, at which time the hearing was held in A tlanta and we presented evidence in opposition to the proposed increase. I t is probable th at the Interstate Commerce Commission will assign this case for oral argu m ent sometime early in 1948. This case is of trem endous im portance to the peach growers as the cancellation of these rates would result in increases of approximately $68.00 per car, and on the basis of a norm al crop would cost the Georgia peach growers over $1,000,000 per year.
Also on M arch 31 the railroads attem pted to cancel truck com petitive rates on fresh vegetables from points in the South to northern points. We filed a petition with the Interstate Commerce Commission and were successful in obtaining suspension of the railroads' tariffs. T his case is strikingly sim ilar to the peach case, except th a t the interest of G eorgia shippers is no t as substantial as th a t of the shippers in Florida and some of the other southern states.
We did not develop any interest from Georgia growers and, because of our inability to secure shipper witnesses, took only a small p art in the proceedings.
T he Interstate Commerce Commission on December 15, 1947 issued an order au thorizing the cancellation of the truck competitive rates. O ur investigation discloses that most vegetables produced in Georgia move by truck but we are still trying to develop the necessity for railroad rates on these products and will continue to w atch this situa-
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tion. T he railroads also proposed to cancel a rule perm itting the stopping-in-transit of peaches for the purpose of partial unloading in W estern T runk Lines territory. We felt th at this rule was of some im portance because there are m any small cities in the West which are unable to consume a full carload of peaches, and this rule perm itted a car load to be split between two such destinations.
We, therefore, protested the cancellation, secured suspension, and participated in the hearings before the Interstate Commerce Commission. U p to this time no order has been issued but we are hopeful th at we can retain this beneficial rule.
Potatoes
D uring the w ar the Interstate Commerce Commission issued service orders for bidding the refrigeration of potatoes moving from Georgia, the Carolinas and Virginia for the purpose of conserving railroad icing facilities. Beginning in 1947 the growers in these states invested heavily in washing equipm ent and we are advised th at competi tion has made it necessary that potatoes be washed and ready for household consumption if they are to compete w ith those shipped from other sections of the country. W ashed potatoes deteriorate in transit rapidly unless they are refrigerated. T he railroads were advised by the Interstate Commerce Commission that no further service orders would be issued and the railroads therefore proceeded to file tariffs effective February 10, 1947 providing th a t they did no t hold, themselves o u t to refrigerate potatoes moving from Georgia, the Carolinas, V irginia and certain portions of Florida. We filed a petition and secured suspension of the objectionable tariffs. T he Georgia Commission partici pated vigorously in all phases of this case and filed a brief and presented oral argum ent on behalf of all five of the states involved. T he railroads alleged th at they would have to expend great sums in order to provide refrigeration unless the tariffs became effective and at every tu rn opposed our efforts. However, on June 13, 1947 the Interstate Com merce Commission issued its order finding th at the proposed restriction was unreason able and requiring the carriers to provide the refrigeration service required by shippers. This case attracted national attention and an unfavorable decision would have established a precedent which m ight well have worked an extreme hardship on shippers of all perishable commodities.
Rail Passenger Fares
D uring O ctober of 1947 the Interstate Commerce Commission conducted hearings in A tlanta on an application of the railroads to increase coach fares from 2.2 cents per mile to 2.5 cents per mile, and to increase first class fares from 3.3 cents per mile to 3.5 cents p er mile. T h e G eorgia Commission p articip ated in this case, taking the position th a t higher fares would tend to discourage passenger travel and result in less revenue for the rail carriers. However, on October 6, 1947 the Interstate Commerce Commission issued its order g ranting the railroad's petition. O n O ctober 13 the railroads filed a similar petition w ith us for intrastate increases, but we did not assign it for hearing during 1947.
Railroad Abandonments
We took p a rt in the oral argum ent before the Interstate Commerce Commission in the Gainesville M idland Railroad abandonment case early in the year and urged the Federal Commission to require the continued operation of the line for at least a trial period. However, the Commission issued its order on M ay 7, 1947 authorizing abandonm ent of the road. A t the request of the interested citizens along the line we
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sought and obtained a postponement of the effective date, during which time we joined with these citizens in attem pting to enjoin the enforcement of the order. We were not successful, however, and the line of railroad extending from Belmont to Monroe, through Jackson, B arrow and W alton Counties, was dism antled, beginning Ju ly 1, 1947.
U TILITY REGULATION
Electric Utilities
The uniform system of accounts prescribed by the Commission for electric utilities stipulates th at electric plant in service shall be recorded on the books of the utility at original cost when first devoted to public service. Amounts in excess of original cost are classified either as p lan t acquisition adjustm ents or as p lan t adjustm ents. P lant acquisition adjustm ents represent the am ount in excess of original cost w hich is paid for utility property on acquisition a t arm 's length bargaining. P lan t adjustm ents represent w rite-ups or other fictitious values w hich were not established as a true cost of acquisi tion.
Pursuant to these accounting requirements, Georgia Power Company filed with the Commission on Septem ber 13, 1941 a reclassification and original cost study of its electric p lan t in service as of Jan u a ry 1, 1937. Subsequent to this filing, an exhaustive and thorough examination of these studies was conducted jointly by the staff of this Commission and the Federal Power Commission, which exam ination was concluded in M arch, 1947. Several conferences were held with members of the staff of the two commissions and com pany representatives, as a result of which, substantial agreem ent was reached as to adjustm ents to be m ade in the accounts of the G eorgia Power Com p any to m eet the requirem ents of the required accounting system. O n Septem ber 18, 1947, the Commission issued an order authorizing, approving and directing necessary reclassification as developed. As a result of the original cost accounting and the re classification made thereunder, it was determined th at $111,369,805.61 represented the excess over original cost of electric plant on the books of Georgia Power Company w ithout segregation of this am ount between plant acquisition adjustm ents and plant adjustm ents, and $164,695.18 was classified as excess over original cost of other utility plant. O f the excess over original cost of electric plant in the am ount of $111,369,805.61, $27,000,000 was determ ined to be properly accounted for as p lan t acquisition adjustm ents and the rem ainder classified as p lan t adjustm ents. As of Decem ber 31, 1946, the Company had already w ritten off $46,876,940.54 and the remaining balance of plant adjustments was w ritten off through charges to other accounts including a reduction in the common capital stock account of the Company of $18,000,000 whereunder the book value of its common stock was reduced from $55,000,000 to $37,000,000. The order further provided for the amortization of the remaining $27,000,000 in the p lan t acquisition adjustm ent account over a period of 15 years by equal annual am orti zation charges.
This action by the Commission is one of the most significant accom plishments in regulation of utilities. It means th at eventually the rate base of the Com pany will be over $111,000,000 less than claimed in the past.
On O ctober 23, 1947 the Commission issued a supplemental order with respect to this question in which it found that a transfer to the depreciation reserve of the Company was necessary in order to make that reserve adequate. T h at order required the Company to transfer $2,330,946.78 from its capital surplus to the reserve for
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depreciation. This transfer represented a further reduction in the capitalization of the Com pany and since depreciation reserves are norm ally deducted in arriving at a rate base this effected an equivalent reduction in the net investment of the Company in plant and equipment.
Several security issue authorizations were granted during the year to electric utilities in order to provide necessary capital for construction expenditures. On September 4, 1947 G eorgia Power C om pany was authorized to issue and sell $10,000,000 principal amount of First Mortgage Bonds at competitive bidding at an interest rate not to exceed 3 / 2 per cent per annum . O n Septem ber 16, 1947, Savannah E lectric and Power C om pany was authorized to issue and sell $2,500,000 of additional First M ortgage Bonds, to ex change serial notes in the am ount of $3,266,000 for an equal am ount of notes outstand ing and to receive a capital contribution by the common stock holders of the Company of $2.00 per share on 133,146 shares outstanding. Georgia Power and Light Company was authorized on N ovember 21, 1947 to issue and sell $1,000,000 aggregate principal amount of first mortgage bonds.
Gas Utilities
After a reduction in the wholesale rate paid for natural gas by the Georgia Power Company for gas to be distributed in Columbus, Georgia, the Commission called on that Company to determine w hat reduction in rates for natural gas in Columbus, Georgia should result therefrom. After careful investigation of the rates for natural gas service in Columbus, lower rates were prescribed by Commission order dated Jan u ary 30, 1947 for all classes of n atu ral gas service, w hich represented a reduction of approxim ately $52,000 per annum in the cost of this service to consumers in Columbus.
O n M arch 4, 1947, South A tlantic Gas C om pany was authorized to issue and sell 1,000 shares of 5 per cent preferred stock having a total p a r value of $100,000. A tlanta Gas L ight C om pany was authorized on June 16, 1947 to change the p a r value of its com m on stock from $25.00 per share to $10.00 per share and to issue the appropriate num ber of additional shares to its present stockholders to reflect this change in par value.
South A tlantic Gas C om pany was granted au thority on A ugust 20, 1947 to issue and sell 22,400 shares of its $5.00 p a r value capital stock at not less than $8.50 per share and to issue notes in the am ount of $175,000 payable $6,250 q u arter over a 5-year period with the balance being payable at the expiration of the 5-year period and bear ing interest at the rate of 3 per cent per annum. This company was authorized on No vem ber 26, 1947, to issue and sell $350,000 principal am ount of F irst M ortgage Bonds to provide additional capital for construction requirements.
T he Commission issued a rule nisi to the A tlanta Gas L ight C om pany on M ay 19, 1947, to show cause why the Company should not provide firm, adequate and depend able service or why the Commission should not either revise all rate schedules for com mercial and industrial natural gas service or prescribe specific penalty provisions in the comm ercial and industrial schedules in order to establish charges for these classes of serv ice commensurate with the character of service rendered. Hearings on this m atter were held on June 27, September 3, 29 and O ctober 9, 1947 and a thorough and complete investigation of natural gas rates and service was conducted. O n December 22, 1947, the Commission issued an order effecting a further reduction in natural gas rates in Georgia of $276,000 per annum together with certain adjustments in an industrial schedule w hich would be equivalent to a $98,000 revenue loss or an overall revenue reduction to the Company of $374,000 per year.
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Due to inadequate transmission line facilities of the Southern N atural Gas Com pany, natural gas service in Georgia in 1947 was insufficient. This became a perplexing problem w ith which the Commission endeavored to deal through rate treatm ent inas m uch as the Commission had no authority or jurisdiction over the supplier of natural gas to the A tlanta Gas Light Company. T he inadequacy of the service did not affect residential and small commercial consumers but created economic problems for the large industrial consumers of the Company. T he Commission intervened in a case before the Federal Power Commission concerning Southern N atural Gas Company because of the inadequate supply of natural gas in Georgia. The pipe line company proposed to extend natural gas service to Chattanooga, Tennessee from its pipe line facilities used to serve the state of Georgia. T he Commission directed its Chief Engineer to appear before the Federal Power Commission at scheduled hearings and to subm it evidence and testimony opposing the proposed extension of natural gas to Chattanooga until such time as the present service area of the Southern N atu ral Gas C om pany was adequately supplied. This case was vigorously presented and the Federal Power Commission in its final decision denied the certificate of public convenience and necessity applied for by Southern N atu ral Gas Com pany. I t is felt th a t had this certificate been granted the already inadequate supply of natural gas in Georgia would have been further depleted.
Telephone Utilities
O n N ovember 1, 1946 Southern Bell Telephone and T elegraph C om pany (herein after sometimes referred to as Southern Bell, the C om pany, o r p etitioner filed w ith this Commission a petition, supplemented by certain exhibits, in which authority was sought to increase rates for local exchange and intrastate toll service to become effective a t the earliest practicable date. This petition was assigned File No, 19315-1 and Docket 8343-A and was set for public hearing D ecem ber 10, 1946 w hen it came on to be heard. U pon the conclusion of the presentation of evidence by witnesses for the Com pany further hearings were held in February 1947, and the Commission took the case under advisement.
D uring the course of the hearings, it was learned that the Depreciation Reserve Requirem ent study the Company had been making was nearing completion. At the same time the Telephone Committee of the NARUC, in cooperation w ith the Federal Communications Commission had undertaken a review of the separation procedures em ployed in the Bell System for the separation of property, revenues, and operating ex penses between intrastate and interstate services. T he results of the Depreciation Reserve Requirem ent study would determine the reasonableness of annual depreciation expense, w hich is a cost of service, as well as the p roper allocation of the C om pany's overall depreciation reserve to the various states in which it operates. The review of separation procedures could have a very substantial effect on the indicated earnings of the Company since the separation procedures employed by the Company allocate revenues, expenses and property between intrastate and interstate services. Therefore, these respective determinations would have an im portant bearing on the Georgia revenue requirements of the Company.
T he Commission's Chief E ngineer was a m em ber of the C om m ittee engaged in the Separation study w hich was conducted in New York w ith representatives of the Bell System and extended from F ebruary 25, to A pril 28, 1947. Before the completion of this study the employees of the Company commenced their strike which lasted from April 7 into M ay 1947.
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W hen it became known that the settlement of the strike required the Company to grant substantial wage increases the Commission suggested a conference w ith officials of the Company for the purpose of ascertaining whether or not the Company desired to incorporate in the record, through stipulation, factual data relating to the cost of wages and the results of the amended separation procedures. Responsive to the invita tion of the Commission, the Company some weeks later elected to file an amended petition supported by new exhibits to show the effect of the revised separation proce dures, the effect of the wage increases granted the employees of the Com pany following the strike and the added revenue which would be required to m eet this increased operating cost and avoid confiscation of its property.
The amended petition which amounted to a de novo proceeding was heard October 1, 1947. T h e presentation of d irect testim ony by the C om pany consumed approxim ately four days, at the conclusion of w hich the Commission's staff requested a recess for the purpose of studying the evidence submitted, obtaining additional information from the C om pany and preparing cross exam ination of the C om pany's witnesses F u rth e r hearing was first scheduled for November 3, 1947 b u t by m utual agreem ent between the Com p any and the Commission the hearing was resumed on N ovember 17 and continued to completion on December 4, 1947.
In an effort to give full and appropriate consideration to all the allegations of the petitioner and to all evidence of record, the Commission consumed 23 days in conduct ing actual public hearings in connection w ith this m atter and th e record includes 132 exhibits and over 2,000 pages of direct testimony and cross examination supplemented by statements of counsel.
This m atter was still before the Commission for decision at the close of the year.
T he Georgia Continental Telephone Company established a new autom atic dial exchange at M organ, Georgia and on January 21, 1947, the Commission established new rates for service in th at community.
Several authorizations were granted during the year to issue securities. O n A pril 19, 1947 Southeastern T elephone C om pany was authorized to issue and sell $950,000 principal am ount of First M ortgage Bonds. Hinesville Telephone Company was granted authority to issue notes in the am ount of $27,500 on June 10, and Wilkes Telephone and Electric Com pany was authorized to issue a note in the am ount of $4,500 on June 10. O n application of the G eorgia C ontinental Telephone C om pany, the Commission granted authority to issue and sell $65,000 principal am ount of First M ortgage Bonds on June 16, 1947. O n November 28, 1947 Southeastern Telephone Com pany was au thorized to issue and sell $500,000 principal am ount of First M ortgage Bonds. On No vem ber 7, 1947 C onsolidated Telephone C om pany was granted auth o rity to issue bonds in the principal am ount of $150,000 and on D ecem ber 10, Wilkes Telephone and Electric Com pany was perm itted to issue a note in the face am ount of $4,000.
Increased cost of operations during the year 1947 resulted in the receipt of several applications for authority to increase rates for telephone service by independent tele phone companies. T he following sets fo rth the 11 rate case orders issued by the Com mission during the year showing the name of the Company, date of the order, amount of revenue increase requested and the am ount of revenue increase granted for each:
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NAME OF COMPANY
Consolidated Telephone Company Pembroke Telephone Company Crawfordville Telephone Company Louise Telephone Company Canton Telephone Company-- Jasper Ga. Continental Telephone Co.-- Edison Soperton Telephone Co. Rochelle Telephone Company Farmers Telephone Company-- Springfield Consolidated Telephone Co.-- Meigs Reidsville Telephone Company

D ate of O rder
3/11/47 2 /2 8 /4 8 3/14/47 3/14/47 3/14/47 4/17/47 4/25/47 5/19/47 6/26/47 9/4/47 11/7/47

Annual Increase Requested G ranted

$ 1,097 1,800 1,188 718 2,781 2,172 3,084 144 390 708 2,250

$ 624 1,431 1,071 718 2,781 505 3,084 144 390 708 1,998

Total

$16,332

$13,454

T he Commission continued to receive complaints on inadequate telephone service rendered by several independent telephone companies, and issued some ten Rules Nisi during the year to various companies citing them to show cause why the Commission should not direct improvements in service or prescribe substantial reductions in rates commensurate with the character of service being provided. In addition, the Commis sion issued orders during the year establishing rates at 50 per cent of their form er level at six exchanges due to the poor character of service provided. In four cases these served to bring about a substantial improvement of the service and at those exchanges the form er rates were reestablished during the year. In other orders the Commission directed Southeastern Telephone Company to establish an autom atic dial exchange at Ideal, Georgia with free connection into M ontezuma and O glethorpe, and also required Southeastern Telephone Company to provide connections for toll circuits from M oultrie at its Q uitm an and Adel Exchanges. These miscellaneous actions of the Commission served to bring about substantial im provement in telephone service rendered to the public in Georgia.

Telegraph Utilities

W estern Union Telegraph Company filed revised tariff schedules with the Commis sion on Jan u ary 9, 1947 w hich would establish an increase in rates for telegraph service in G eorgia to the same extent as previously authorized by the Federal Com m unications Commission for interstate service in its order issued December 27, 1946. O n receipt of this tariff filing the m atter was docketed for hearing on January 20, 1947 when it came on to be heard. By the order of the Federal Communications Commission, the tele graph company was authorized to increase interstate message telegraph service rates by a flat 20 per cent in lieu of the tem porary flat 10 p er cent increase over sim ilar rates in effect w ith no time lim itation specified. T he following table sets forth the classes of service affected, the current revenue level, the am ount of proposed increase, the per centage of the proposed increase and the revenue level under the proposed rates for the state of Georgia:

Item

Present Revenue
Level

Increase From Proposed Rates Amount Per cent

Proposed Revenue
Level

Public Message Revenue

$446,506 $40,632

9.1 $487,138

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U . S. Govt. Message Revenue Press Message Revenue M .O. Message Revenue News (CND) Revenue Contract (CAK) Revenue M .O. Premium Charges O ther Service

36,376 24,054 30,269
1,544 3,237 20,599 85,390

3,310

9.1

2,189

9.1

2,507

9.1

266 17.2

295

9.1

815

4.3

39,686 26,243 32,776
1,810 3,532 21,414 85,390

T o tal

$647,975 $50,014

7.7 $697,989

After hearing and careful consideration the application of the Company was granted on January 23, 1947.

Transit Utilities

Pursuant to an application of the Columbus Transportation Company, the Com mission on Jan u ary 30, 1947 granted the C om pany au thority to make a charge of 1# for transfers for a trial period of 6 m onths beginning February 1, 1947. L ater the Com mission received an application from the Columbus Transportation Company on June 27, 1947, for authority to increase fares for transportation service in Columbus from the rate of 5# cash plus 1# for transfers to a regular cash fare of 10#, a regular token fare of 2 for 15#, school children's fare of 5 tickets for 25# and w ith free transfers. T he m atter was assigned for public hearing before the Commission and after careful investi gation it was determined that a fare increase was justified but not to the extent re quested. On July 31, 1947, the Commission authorized increased fares in Columbus establishing a 10# regular cash fare, tokens a t the rate of 4 for 25#, school children at the rate of 5 tickets for 25# and w ith free transfers. This increase in fares was necessary prim arily by reason of substantial increases in wages paid to bus operators and other employees.

WESTERN & ATLANTIC RAILROAD
O n F ebruary 14 and 15, 1947 a jo in t com m ittee of the House and Senate of the Georgia Legislature made an inspection of the W & A Railroad, together with the Commission and members of its staff. O n February 24, this committee reported to the House and Senate that the W & A Railroad property had been very substantially im proved since the last inspection on February 23 and 24, 1945. T he most noticeable and probably the most valuable improvements made by the Lessee had been fifteen separate projects effecting realignm ent of the track, principally between Cartersville and Chattanooga. This realignm ent removed m any degrees of curvature and completely straightened long sections of the railroad. I t is estim ated th a t w hen these projects are completed, the operating time between Chattanooga and A tlanta will be reduced approxim ately 15 per cent. In addition, the Lessee has instituted a program which, when completed early in 1947, will place the entire railroad from A tlanta to C hatta nooga under an autom atic centralized traffic control system which represents the most m odern m ethod of train control. M any new sections of rail have been laid, all of w hich consists of 112 lb. rail instead of the 90 lb. w eight w hich had been used previ ously.
D uring the year 1947 the Commission and its staff continued negotiations with the U . S. A rm y Engineers, looking tow ard app ro p riate arrangem ents for the relocation of

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the W & A R ailroad at the point where the present right-of-way will be affected by A llatoona Lake. A num ber of conferences were held w ith the U . S. A rm y Engineers, together w ith representatives of the N. C. & St. L. Railway, Lessee of the State-owned railroad, and valuable assistance was rendered by the State D epartm ent of Geology, as well as the H ighway D epartm ent. W hile the m atter was not finally settled during the year, very substantial progress was m ade, and it is anticipated th a t the m atter will be finally concluded early in 1948 in a satisfactory manner.

T he A nnual R eport of the N. G. & St. L. Railway, Lessee of the State-owned W estern & A tlantic R ailroad for the calendar year ended December 31, 1947 shows for net expenditures charged to the accounting classification Additions and Better m ents by classes of railroad property, the following amounts:

Im proved track m aterials .... Bridges, trestles and culverts Y ard tracks and sidings ......... C hange of alignm ent ............. Signals and interlockers ......... Station and Office Buildings W ater stations ...........................

; 69,823.18 15,125.98 7,609.60
(63,225.94) 170,470.42
(6,803.72) 2,232.08

T o tal ........ ...................................................................................................$195,231.60
The above net additions reported are after deduction for property retired and not replaced during the year in the aggregate am ount of $5,831.85. T he total net improve m ents to the W estern & A tlantic R ailroad from Ja n u ary 1, 1944 through D ecem ber 31, 1947 is $1,707,104.07.
Respectfully submitted,
W alter R. McDonald, Chairm an M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner

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76th REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1948
131

76th REPO R T OF GEORGIA PUBLIC SERVICE COM M ISSION
1948
TO HIS EXCELLENCY, GOVERNOR HERMAN TALMADGE:
As provided by law, the Georgia Public Service Commission submits herew ith its 76th Annual R eport of the regulatory activities of the Commission for the year ending December 31, 1948.
PERSONNEL AND STAFF
T he membership of the Commission remains unchanged since its last report, the Commission as now constituted being:
W alter R. McDonald, Chairm an M att L. M cW horter, Vice Chairm an Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
T he only change in the staff of the Commission was the employment on August 1, 1948, of D ave Benson as Assistant D irector of the T ran sp o rtatio n R ates Division. W. M . Lee, A ugusta, Georgia, was employed as a M otor C arrier Inspector on Decem ber 6, 1948.
M O TOR CARRIER REGULATION
D uring the year the Commission held 403 form al hearings, issued 184 form al orders, and took action on 847 informal matters, a large m ajority of which related to motor carriers. There are more than five hundred intrastate certificated m otor carriers, and approximately four hundred and seventy-five interstate carriers, or a total of almost a thousand m otor carriers, qualified w ith the Commission requiring constant supervision and regulation. I t should also be noted th at the num ber of inform al actions mentioned above does not include several hundred routine suspension and reinstatem ent orders relating to insurance filings affecting m otor carrier certificates issued by the Secretary under authority of a resolution adopted by the Commission on M arch 13, 1946.
O ne inform al m atter on w hich an order was n o t issued is m entioned here by reason of the fact th a t although it has the effect of an A dm inistrative R uling it is n o t included in the rules published by the Commission. O n February 10, 1948, the Commission approved the issuance of the following interpretation of the authority of Lim ited Class "A" Carriers of Property:
" I t is the sense of the Commission th a t the holder of a L im ited Class "A" Certificate does not have authority to interchange freight with the holder of a regular line haul carrier under a Class "A" Certificate as provided for in Sec tion (a) of R ule 10 of the Commission's G eneral M otor C arrier Rules and R egulations."
D uring the entire year the Commission had in its employ only seven Inspectors,
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w hich is one-half the num ber employed ten years previously, yet these Inspectors re m itted $60,438.00 of the total of $113,625.00 collected in license fees, and rem itted $38,379.13 in revenue fees to the M otor V ehicle U n it of the D ep artm en t of Revenue. T he Commission issued 3990 reciprocal tags on w hich no fees were collected. A dditional agreements providing for full reciprocity with the States of Kentucky, Illinois, Texas and Virginia were executed during the year.
The Commission approved applications of Teche Greyhound Lines, Alaga Coach Lines, A tlanta N orthern Lines and Columbus T ransportation Com pany to become self-insurers, following the pattern set forth and laid down in the last report of the Commission in granting the application of Southeastern Greyhound Lines to become a self-insurer during the previous year.
T he Commission on A pril 13, 1948, approved an application of Southeastern G rey hound Lines to purchase all of the capital stock of A tlanta N orthern Lines at a cost of $ 100,000.00.
O n D ecem ber 14, 1948, the Commission issued an order, on petition of Southeast ern M otor Lines, Inc. to cancel th at portion of Class "A" Certificate No. 1433 issued to East Alabama M otor Lines of Roanoke, Alabama, authorizing operations between Franklin, Georgia and Newnan, Georgia, for failure to operate.

M O TOR CARRIER RULES AND SAFETY REGULATIONS
O n M arch 10, 1948 the Commission issued an order readopting all M otor C arrier Rules and Safety Regulations previously adopted, and all subsequent changes and amendments thereto, governing the supervision, control and operation of motor vehicle carriers transporting passengers an d /o r property for hire over the public highways of the* state as defined in the M otor C arrier Acts of 1931, to become effective on and after June 1, 1948. These Rules and R egulations were accordingly published on June 1, 1948, in a pam phlet entitled " M otor C arrier Rules and Safety R egulations" . A nother pam phlet entitled "Laws and Rules" of the Georgia Public Service Commis sion was also published on Ju n e 1, 1948 w hich included, in addition to the M otor C arrier Rules and Safety R egulations, all Rules applicable to Railroads and U tilities as well as all codified statutes relating to the activities of the Commission.

T R A N S P O R T A T IO N

General

The volume of work in our Transportation Rate Division increased immensely in 1948. O ne of the causes of the additional work is the com plexity of freight rates and tariffs. O u r staff is called upon daily to render assistance in settling disputes about freight charges. There are also innum erable service complaints, most of which are handled by telephone. T he Commission passed informally upon 144 m atters involving transportation rates and issued formal w ritten opinions in the cases listed below:

Docket No. Date

8 8 1 7-A

Jan. 30, 1948

Subject
Application of Railway Express Agency for increased rates (Ex Parte 163)

Disposition G ranted

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8695-A 8816-A 8851-A 8834-A
8873-A 8843-A
8798-A 8964-A
1st Supt. 8873-A
9017-A 9016-A 8817-A

Jan. 30, 1948 M arch 31, 1948 A pril 13, 1948 A pril 14, 1948
A pril 14, 1948 April 23, 1948
M ay 7, 1948 M ay 26, 1948

Complaint against rail rates on sand
Application of rail carriers to increase passenger fares
Application of Southern R ail way to discontinue passenger trains numbers 31 and 32 be tween A tlanta and C ohutta
Application of Atlantic Coast Line Railroad to discontinue passenger trains numbers 103 and 104 between A tlanta and Brunswick
A pplication of rail carriers for increased freight rates (Ex Parte 166)
Application of Georgia & Flor ida Railroad to discontinue passenger trains numbers 4 and 5 between Augusta and V ald o sta
Application of Southern R ail way to discontinue passenger trains numbers 24 and 25 be tween A tlanta and Columbus
Application of Central of Geor gia Railway to discontinue passenger trains numbers 1 and 2 between Macon and Columbus

Dismissed G ranted G ranted
G ranted with condi tions
Granted with excep tions Denied
Denied
G ranted

June 22, 1948
July 6, 1948 July 6, 1948 Sept. 14, 1948

Substitution of 25% increase for 20% increase in rail rates granted A pril 14, 1948 (Ex Parte 166-A)
Revision of rail rates on canned goods to be no less th an 40% of 1st class
Application of rail carriers to establish 40% of 1st class as minimum on LCL traffic
Extension of expiration date on Railway Express increased rates granted January 30, 1948

Expiration date of 20% increase ex t e n d e d pending hearing on 25% increase Dismissed
G ranted
G ranted

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4592-A 9161-A 2nd Supt. 8873-A 9232-A
8824-A 883 7-A 8818-A 8904-A 8918-A
8742-A 8842-A 893 7-A 8852-A
8839-A

Nov. 10, 1948 Nov. 10, 1948

Determination of rail rates on sand, gravel, etc. to A tlanta and area

Rates prescribed

Application of rail carriers for revision of Commission's R ule 19

Rule revised

Nov. 12, 1948

Application of rail carriers for increased rates (Ex Parte 166-A)

G ranted with excep tions

Dec. 12, 1948

Application of Georgia & Flor ida RR. to discontinue pas senger trains numbers 4 and 5 between Augusta and V al dosta

G ranted

Jan. 30, 1948

Application of I n t e r u r b a n Transit Lines, Inc. for in creased fares

G ran ted

ja n . 30, 1948

Application of Service Stages, Inc. for increased commuter fares

G ranted

M arch 18, 1948 M arch 23, 1948 M ay 24, 1948
M ay 24, 1948 M ay 24, 1948 M ay 24, 1948 June 8, 1948
June 8, 1948

Application of Barber Bus Line for increased fares
Application of D ent Coach Lines for increased commu ter fares
A pplication of Service Bus Line, Inc. Service Coach Line, Inc. and Neel G ap Bus Line, Inc. for increased fares
Application of m otor carriers for increased rates on roofing and sugar
Application of Suburban Coach Co. for increased fares on its Garden Hills Line
Application of Service Transit Company for increased fares
Application of Southeastern M otor Lines and Southeast ern G reyhound Lines for in creased fares
A pplication of B. & T . Bus Lines for increased fares

G ranted G ranted
G ranted in part
G ranted with excep tions
G ranted with excep tions G ranted G ranted
G ranted

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9020-A 8742-A 8559-A 9098-A 9074-A 8742-A 9169-A

July 6, 1948 Aug. 12, 1948 Sept. 14, 1948 Sept. 14, 1948 Sept. 28, 1948 Nov. 10, 1948 Nov. 10, 1948

Application of M odern Coach Corp. for increased fares
Application of m otor carriers for elimination or extension of expiration date in connec tion with certain rates
Complaint of Suburban Coach Co. Inc. against certain schedules of Teche Grey hound Lines
Application of Newnan City Lines for new route and rate structure for such route
Application of Theatres Service Co. for increased rates on motion picture film, acces sories and supplies
Application of motor carriers for elimination or extension of expiration date in connec tion with certain rates
Application o f S u b u r b a n T ransit Lines, Inc. for in creased fares

G ranted Extension granted
Schedules approved w ith exceptions G ran ted G ranted
Extension granted
G ranted

Bus Fares
The Commission did not find it necessary to increase fares of the larger bus opera tors during 1946 or 1947, although rates of almost every other transportation agency were raised during th a t period. However, by the middle of 1948 increased costs finally overtook the principal intercity carriers, and together with sharply reduced load factors caused the earnings of these companies to drop to an unsafe margin. Accordingly, the Commission authorized an increase in fares to 1.85 cents p er mile, or approxim ately 12 per cent. H owever, because of 13.63 p er cent increase in railroad passenger coach fares the difference in rail and bus fares was further increased.
O ne of the additional costs w hich has been imposed upon the bus companies is th at of higher insurance premiums. D uring the year the Commission authorized several of the larger companies to become self-insurers. This should perm it substantial savings and correspondingly lower fares. The Commission authorized self-insurance only in cases where the assets of the company appeared adequate to protect the public. In one instance we denied an application because the plan proposed did not appear to be sound and practicable.
Rail Passenger Fares
O n M arch 22 we conducted a hearing on an application of all the railroads to increase coach fares from 2.2 cents per mile to 2.5 cents per mile and to raise first class fares to 3.5 cents p er mile. T his was the same basis approved by the In terstate

137

Commerce Commission late in 1947 and after due consideration we authorized the increase in coach fares, but required the carriers to assess the same fares in Pullm an as in coaches.
All during the year the C entral of Georgia Railway Company continued to use the 1.32 cent per mile basis for 5-day lim it round trip fares, and it appears th a t this com pany's passenger revenue is holding up m uch b etter than th a t of the other roads.
Truck Rates
There were no m ajor adjustments made in truck rates during the year. We, how ever, did grant an extension of time to the motor carriers in which to prepare their new tariff. O ur staff is a t work revising highw ay mileages and the m otor carriers have made some progress toward accum ulating basic data which should be of use in developing the new system of rates.
Railroad Rates
T he 20 per cent general increase in freight rates authorized on interstate traffic w hich was discussed in our last year's rep o rt came before this Commission in a hearing on February 5, and on A pril 14 we granted substantially the same tem porary increases as were approved by the In terstate Comm erce Commission, except th a t we did not perm it any increase in rates on clay, shale and scrap iron, and we limited the increase on pulpw ood and road aggregates to 10 per cent and on logs to 14 per cent. Shortly after we issued our order the Interstate Commerce Commission came out with its final order raising the increase in the South from 20 per cent to 25 per cent and providing for a 30 per cent increase in the North. The Interstate Commerce Commission order contained a num ber of exceptions, and among other things authorized a greater increase on freight moving in open top cars than on freight moving in closed cars. We felt th at this was injurious to Georgia shippers and was contrary to good regulatory policy, and filed a petition for reconsideration, but the Interstate Commerce Commission denied the peti tion. This case came before us on November 12 and as will be noted from our order, reproduced elsewhere in this report, we granted the additional 5 per cent with several exceptions in addition to those contained in the Interstate Commerce Commission order.
O n O ctober 1, 1948 the railroads filed a petition for an additional 8 per cent increase in interstate freight rates to meet increases in cost of fuel, materials and supplies which they had incurred since the effective date of the I.C.C. order in Ex P arte 166. O n O ctober 12 the railroads am ended th a t petition so as to ask for a 13 per cent increase and stated th at the amendm ent had been made necessary because of higher wages granted employees by a fact-finding board appointed by the President in compliance with the National Railway Labor Act.
T he Interstate Commerce Commission assigned the application for hearing on N ovem ber 30 as its docket num ber Ex P arte 168, and o u r Commission again joined w ith numerous other state commissions throughout the U nited States in opposing the increased rates sought by the railroads. The railroads again asked for immediate relief before hearing, requesting that the Commission authorize an interim increase of 8 per cent and then proceed w ith hearings on the application for the 13 per cent raise. Despite our opposition, the Interstate Commerce Commission on December 29 issued its order au thorizing so-called emergency increases of 6 per cent in the East and in the South, and 5 per cent in the West. The higher rates were scheduled to become effective on Janu-
138

ary 6, 1949 and fu rth er hearings were assigned on the 13 per cent perm anent increases. No application was filed with us for corresponding intrastate authority.
It appears that railroad freight rates have already been increased beyond the point of a diminishing return and that the 6 per cent raise authorized by the Interstate Com m erce Commission m ay divert so m uch traffic from the railroads th a t it will actually reduce revenues rather than increase them.
Railroad Passenger Fares
Early in 1948 we authorized the railroads to increase passenger fares in coaches to the basis approved by the Interstate Commerce Commission last year. We did not, however, perm it the establishment of the 3.5# per mile Pullman fares, requiring observ ance of the same fares in both coach and Pullman. We expressed the opinion in our order that the railroads would gain more revenue by reducing fares than by increasing them, and recited the continued favorable experience of the C entral of Georgia Railway. This com pany has been experim enting for alm ost two years w ith a round trip fare of 1.32# per mile, com pared to the 2.25# p e r mile round trip fare charged by the other railroads, and the tremendous volume of business the Central of Georgia has enjoyed under these fares is highly significant com pared to the steadily declining passenger traffic of the other railroads.
Participation in Interstate Rate Cases
As reported last year the railroads sought to m ake large increases in rates on peaches moving from Georgia and the Carolinas to northern consuming points. These higher rates would have cost shippers in Georgia more than a million dollars per year and we vigorously participated in every phase of the I.C.C. investigation. We were, therefore, gratified when the Interstate Commerce Commission early this year issued its order re quiring cancellation of the proposed higher rates. The northern railroads, however, sought reconsideration and it was necessary th at we file a detailed reply in support of the Commission's findings. W e filed such a reply and are now aw aiting a final decision.
T he railroads had also sought to cancel a rule providing for stopping-in-transit of peaches in W estern T runk Line territory. We opposed the cancellation of this rule and cooperated w ith shippers and the U . S. D epartm ent of A griculture in the proceedings before the Interstate Commerce' Commission. An order was issued in M arch of this year requiring the carriers to continue the rule in effect. We believe th at this will be of some help to the Georgia growers m arketing peaches in the western states.
The Western Kentucky Coal Mine Operators filed a complaint with the Interstate Commerce Commission seeking a reduction in rates on coal from western Kentucky mines to points in Georgia. We intervened in this case for two purposes. We are sup porting the request for reduced rates from western Kentucky, but we are also having to defend the present rates from eastern Kentucky mines to points in Georgia because of the fact that the western K entucky operators have alleged discrimination between the rates from eastern and western K entucky mines, and it is conceivable th a t the In te r state Commerce Commission m ight elect to remove this discrimination by increasing the eastern K entucky rates. No decision has been made in this case and we will con tinue to participate actively.
Progress during the early p a rt of the year on the establishment of the uniform classi fication, which must be made effective before we can obtain the full benefits of equalized
139

class rates, was extrem ely slow and as a result we conferred w ith the railroad uniform classification committee and w ith the Interstate Commerce Commission requesting the railroad committee to suspend public hearings on their proposals until all the prelim inary work had been completed. These public hearings would have delayed the completion of the proposed classification for several months and up to now have been productive of | little helpful information. By suspending the hearings the railroads were able to com plete preparation of all their proposals during 1948 and have now begun conducting consolidated hearings embracing all the different dockets. These hearings will be held in various places throughout the U nited States after which revisions will be made. We believe th at the classification will be completed during 1949.
UTILITY REGULATION
Electric Utilities
All three m ajor electric utilities in Georgia applied for increased rates for electric service in 1948. These applications resulted from a very substantial increase in the cost of fuel used in the generation of electric power, increases in wages paid employees, and higher costs of operation generally, combined w ith the necessity for providing addi tional plant and equipm ent to meet the rapidly growing demand for electric power in the state. T he first m ajor electric rate increase case to come before the Commission in over 20 years was the application of the Georgia Power and Light Company to establish a new wholesale power rate for electric service by incorporating a fuel adjust m ent charge within the rate schedule which would increase the cost of service to large industrial customers. This application was received on November 21, 1947. O n Decem ber 30, 1947 Savannah Electric and Power Company filed a similar application in which authority was sought to revise its wholesale power rate schedule by including a fuel adjustm ent clause within the rate. These applications were prom pted by a very substantial increase in the cost of fuel oil used in the generation of electric power. Shortly thereafter on January 2, 1948 Georgia Power and Light Company filed another application w ith the Commission seeking authority to revise all rates for electric service to produce additional revenue. O n M arch 13, 1948 the Commission received an appli cation from Georgia Power Company for authority to increase rates for residential, com m ercial, and industrial service by the elim ination of the 10 p e r cent p rom pt paym ent discount contained in those rate schedules. O n August 11, 1948, Savannah Electric and Power Com pany requested authority to increase its rates for residential, commercial and w ater heating service. Each of these cases was assigned for public hearing, and a com plete, thorough, and careful investigation was conducted prior to the issuance of a decision.
The first application of Savannah Electric and Power Company sought to add a fuel adjustm ent charge in the wholesale industrial rate of 0.02 # per K W H for each 1j per million BTU variation in the cost of fuel used in the generation of electric power. T h e C om pany later am ended its application by m aking a 10 p er cent reduction in the fuel adjustm ent charge proposed. T he Commission determ ined th at the proposed adjustm ent charge was based on fuel generation alone and did not take into account a portion of the power supply which was purchased by the Company. By including the purchased am ount in the overall supply, it was found that a lower fuel adjustm ent charge was sufficient with the result th at the proposed increase was reduced from $169,000 per annum to $143,000 per annum.
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Although the two applications of Georgia Power and Light Company represented separate proceedings before the Commission, they were as a m atter of fact considered jointly by the Commission and both decided on M ay 7, 1948. W ith respect to the request for the inclusion of a fuel adjustm ent charge in the wholesale industrial rate schedules the Commission prescribed a new rate for large industrial service taking the place of three rates formerly applied to individual industrial consumers. The new rate contains a fuel adjustm ent charge, b u t provided less increased revenue than sought by the Com pany. In the general rate case a lesser increase was authorized for each class of service than requested by the Company, the lower rate increases being found to be adequate. For both cases Georgia Power and L ight Com pany sought increased revenue in the amount of $442,295 annually and the rates authorized were estimated to produce $327,914 per year, some 25 p er cent less th an sought by the C om pany. T h e increases granted to Georgia Power and Light Company and Savannah Electric and Power Com pany were the result of abnorm al increases in the price of fuel oil used to generate power.
As a result of the authorization granted to the Georgia Power and Light Com pany, city attorneys of numerous cities served by th at company petitioned the Commis sion for a rehearing and reconsideration of the entire m atter and on June 10, 1948 the Commission denied these applications. The rates prescribed by the Commission for this company then became a m atter of litigation in Fulton Superior Court, which court later upheld the decision of the Commission.
Due to the fact that the question of the rate paid by the Georgia Power and Light Company to the affiliated Florida Power Corporation was injected into the case, and since this Commission had no jurisdiction over that wholesale rate for interstate service, the Commission filed a petition w ith the Federal Power Commission on June 22, 1948 requesting that Commission to thoroughly investigate the rates and charges for power supplied the Georgia Power and Light Company by the Florida Power Corporation. This petition sought a downward revision in the rate in order that lower rates might be prescribed for the Georgia Power and Light Company. The Federal Power Com mission undertook the investigation requested which was still pending at the end of the year.
The application of the Georgia Power Company sought authority to make an imme diate increase of 10 per cent in all of its residential, comm ercial and industrial rate sched ules and a further increase in said rates after an investigation by the Commission. T he re quested interim increase was denied and at the direction of the Commission, the applica tion was am ended so as to seek a single increase in rates. H earings on this application were held on Ju ly 12, 13, O ctober 7, 12, and 18, 1948. T he record in this single case comprises some 993 pages of testimony, and 67 exhibits in addition to extensive supple m entary information provided by the Company, in response to requests by the Commis sion's staff. A lthough the application of the C om pany sought increases of approxim ately $4,671,000, it was found that a lesser increase in the am ount of $3,100,000 per annum was adequate and sufficient.
A decision on the application of the Savannah Electric and Power Company to increase residential and comm ercial rates was issued on D ecem ber 16, 1948. In this case the Company sought some $374,000 of added revenue and the rates authorized by the Commission provided $340,721 increased revenue per year.
Several security issue authorizations were granted in 1948. O n M ay 7, 1948, G eorgia Pow er C om pany was authorized to issue and sell for $12 million in cash addi-
141

tional shares of its common stock in sufficient num ber and at a price p er share n o t less

than the book value of the shares of common stock then outstanding. O n O ctober 18,

a

1948 this C om pany was granted au th o rity to issue and sell $12 million p rincipal am ount

f

of First M ortgage Bonds at competitive bidding. O n O ctober 27 Savannah Electric and

r

Pow er C om pany was authorized to issue and sell $1 million p a r value of 5 per cent

cumulative preferred stock.

Gas Utilities

Georgia Gas Company provides liquid petroleum gas service in Gainesville, Geor

gia and because of a substantial increase in the cost of gas purchased for distribution,

^

the Com pany applied for authority to include a fuel adjustm ent charge in its rates for

c

gas service in Gainesville. After review of the earnings of the Com pany and the effect

i

of the increased cost of gas, the Commission found the proposal of the Company to be

*

reasonable and it was authorized on January 8, 1948.

<

1
Due to substantial increases in the cost of m anufactured gas, the South A tlantic

Gas Com pany was authorized to increase its rates for gas service in Savannah, Georgia

on July 29, 1948; thereafter South A tlantic Gas Com pany filed its protest and request

for reconsideration of the m atter, and on August 25, 1948 modified rate schedules were

,

authorized. The original application by the Company sought increased revenues in the

.

am ount of $246,345; the first order issued July 29 granted increased rates in the am ount

of $129,400 and the supplem entary order on August 25 added some $27,274, or a

total of $156,674.

The continued shortage of natural gas in Georgia in 1947-48 created serious cur-

1

tailments to the large wholesale industrial gas consumers of the A tlanta Gas Light

^

Company. Certain of these consumers contended that their existing contracts w ith the

*

Gas Company made no provision for interruption of gas service and took the position

`

th at such service was not subject to interruption. After an extensive investigation of

1

the problem, the Commission issued an order on November 11, 1948 directing the A tlanta

1

Gas Light Company to adjust its past billing for gas service to its existing customers

served under specific contracts and whose service had been interrupted subsequent to

December 31, 1946, and who entered into contracts for service on the new rate pre

scribed in that order, the total adjustm ent to represent the difference between the actual

charges made for gas service and the am ount which those charges would have been had

,

the interrupted gas deliveries been supplied under the existing interruptible gas rate

schedule. This provision of the Commission's order would have resulted in refunds to

these consumers based on the actual ch aracter of service provided, i. e., rebilling the

interrupted service at the interruptible rate. This order of the Commission was appealed

to the Superior C ourt of Fulton County and that court issued an injunction against the

Commission prohibiting enforcement of the order. O n appeal to the Supreme Court, the

ruling of the lower court was sustained.

O n M ay 17, 1948 A tlan ta Gas L ight C om pany was perm itted to issue and sell $3,500,000 principal am ount of First M ortgage Bonds. Gas Light Company of Columbus was perm itted to issue and sell 125,000 shares of stock at a p a r value of $50 per share, and to issue and sell $1,750,000 principal am ount of First M ortgage Sinking Fund Bonds on Ju ly 15, 1948 in order to provide the necessary capital to purchase the gas properties in the cities of Columbus and Americus from the Georgia Power Company. Georgia Power Company had been required by the Securities and Exchange Commis sion to divest itself of these gas properties.

142

O n D ecem ber 30, 1948 the South A tlantic Gas C om pany was authorized to issue and sell $150,000 principal am ount of First M ortgage Bonds, to issue serial notes in the face am ount of $150,000 and in addition to borrow $50,000 to finance its construction requirem ents.

Telephone Utilities

Southern Bell Telephone & Telegraph Company

The extended consideration of the application of Southern Bell Telephone & T elegraph Com pany for authority to increase rates referred to in our 1947 R eport was concluded, and an order of the Commission was issued on January 23, 1948 prescribing increased rates for telephone service in Georgia. The rates authorized were lower than those requested. O n January 29 the Com pany filed a petition with the Superior C ourt of Fulton C ounty requesting the court to issue a tem porary restraining order enjoining the Commission from interfering w ith the establishing of rates which the Company originally requested in its case before the Commission, the full am ount of which had not been granted. The case was heard before a three-Judge Court and after extensive argum ent and presentation of affidavits, the court restrained the Commission only to the extent of increased rates to provide revenue sufficient to be equal to the license con tract payments to the American Telephone and Telegraph Company which had been disallowed by the Commission. T he Company, however, did not seek to p u t these rates into effect. The Superior Court appointed an A uditor to take testimony and furnish the Court with a complete report of the m atter, with recommendations. About the same time the decision of the Superior Court was appealed to the Supreme Court by the Com pany and a Cross Bill of Exceptions was filed by the Commission. T he Supreme C ourt decided the case in favor of the Company and remanded it to the Superior Court, as a result of which that court granted an injunction against the Com mission preventing interference w ith rates proposed by the Company, and the Company p u t the full scale of rates into effect on August 26, 1948.

D uring this time the Commission instituted further hearings w ith respect to the rates of Southern Bell Telephone and Telegraph Com pany to determ ine the level of rates which should be established on a perm anent basis. D uring the course of these proceedings on December 23, 1948 the Company filed increased rates w ith the Commis sion above the level specifically authorized in the court proceedings, although this action was not in violation of the decision of the court. T he rates filed were made effective im mediately and at the close of the year the Commission was proceeding to determine w hat level of rates would be adequate.

Independent Telephone Companies

A number of rate increase applications was received from independent telephone companies during the year. Notice of the receipt of each of these applications was properly published, hearings held thereon, and an analysis of the record made prior to the issuance of the decision. T h e following list gives the nam e of each applicant, the date of the Commission's order, the annual revenue increase requested, and as granted in each of the rate case decisions by the Commission during the year:

Name of Company

Annual Revenue Increase

Date of Order Requested

Granted

H arlem Telephone Company

1/27/48

$ 2,120

$ 2,120

143

Consolidated Telephone Co. (H ahira) Effingham Telephone Company Southeastern Tel. Co. (Alapaha) Midville Telephone Company Glenwood Telephone Company Southeastern Tel. Co. (Unadilla) Southeastern Tel. Co. (Marshallville) Southeastern Telephone Company W alker County Telephone Company W averly Hall Telephone Co. Commerce Telephone Company M ilan Telephone Company Cairo Telephone Company Bartow Telephone Company Milledgeville Telephone & Telegraph Co. Blakely Telephone Company Hawkinsville Telephone Company Southeastern Telephone Company
(M ontezuma & Oglethorpe) Ludowici Telephone Company Screven Telephone Company Southeastern Telephone Co. (M etter)

1/10/48 2/18/48
3 /1 /4 8 3/24/48 3/29/48 3/31/48 3/31/48 5 /2 4 /4 8 5 /2 4 /4 8
7/7/48 8/25/48 8/26/48 8/25/48 10/13/48 10/18/48 10/18/48 10/28/48
12/9/48 12/9/48 12/9/48 12/14/48

400 612 156 252 402 2,350 1,731 47,884 5,721 342 16,267 384 6,221 360 16,941 9,007 9,014
14,865 1,215 7,704 99

400 612 156 252 402 2,350 1,731 33,245 5,721 342 15,477 384 4,466 360 14,274 6,577 6,821
14,865 900
7,389 99

Total

$144,047

$118,943

D uring the year three applications to issue securities were granted. Georgia Continental Telephone Com pany was authorized on April 13, 1948 to issue $105,000 princi pal amount of First M ortgage Bonds. On M ay 4 Consolidated Telephone Company, Inc. was authorized to issue up to a total am ount of $500,000 principal am ount of First M ortgage Bonds. This security issue was to be m ade by a new corporation w hich holds the entire common capital stock of D alton Telephone Company, Douglas Telephone Company, Chatsw orth Telephone Company, and Summerville Telephone Company, in addition to owning and operating properties formerly owned by the Consolidated Tele phone Company which were transferred to Consolidated Telephone Company, Inc. On D ecem ber 15, 1948 Wilkes Telephone and E lectric C om pany was granted auth o rity to issue a note in the am ount of $4,300.

Telegraph Utilities

There was no formal action by the Commission involving telegraph rates during 1948.
Transit Utilities

As a result of increases in wages w hich came about in recent periods, the Commis sion received two applications for authority to increase fares for urban transportation service. On O ctober 22, 1947 Savannah T ransit Company requested authority to in crease its cash fare from 8# to 10<zf w ith no change in the token fare, w hich is 4 tokens for 25#. After public hearing on this application and thorough analysis of exhibits and testimony, the Commission authorized this fare increase by order dated January 30, 1948, m aking the new fares effective on February 23, 1948. Although this appears to be a 25 per cent increase in the cash fare, the actual increased cost to the public was sub-

144

stantially less than this because w ith the 1 0 / cash fare, m ore riders will avail themselves of the lower cost tokens, the price of which was unchanged.
Georgia Power Company filed an application w ith the Commission on September I 24, 1947 requesting authority to establish a straight 10/ fare for all local transportation I service in A tlanta in lieu of the present 10/ cash fare, w ith 2 tokens for 15/ together
II w ith increases in other special fares on the system. H earings were had on this application on Jan u ary 7, 8, and 9, February 11, 12, 13, 17, 18, and 19, 1948. Some 60 exhibits I were introduced in evidence by all parties and in addition, the Company furnished some I 63 items of supplem entary inform ation requested by the staff of the Commission. In I addition to this, the C om pany supplied some 21 additional items of inform ation requested
by the City of A tlanta. T he Commission retained the services of M r. Edwin Fleischm ann, Consulting Engineer, as an expert to assist the Commission in developing infor m ation, data and facts relating to this application. On M arch 31, 1948 the Commission issued a 20 page O pinion and O rd er authorizing an increase in fares less th an requested. T h at order prescribed a token fare of 3 for 2 5 / in lieu of the former fare of 2 for 15/, while the application of the Company had sought the elimination of token fares entirely. The fares authorized provided an annual revenue increase of $486,994, while if the fares requested by the Company had been granted, this revenue increase would have been $1,283,400 per annum. The Company petitioned the Commission on April 8, 1948 for a rehearing and reconsideration of the m atter, and this petition was denied on April 23, 1948.
P ursuant to an application filed by Georgia Power Com pany on June 4, 1948 for authority to increase fares on its Rome M otor Bus T ransportation sytsem, the Com mission issued a decision on July 9, 1948 granting the application. T he fares in Rome at the time were 5 / cash plus 1 / for transfers. T he application of the Company re quested a 1 0 / cash fare, 4 tokens for 3 0 /, school children 10 tokens for 5 0 / w ith a 1 / charge for transfers. T he fares authorized by the Commission eliminated the trans fer charge and made the token fares 2 for 15/ instead of 4 for 30/.
WESTERN & ATLANTIC RAILROAD
After extended negotiations, conferences, geological studies, and studies of relocation of the State-owned railroad in the vicinity of the Allatoona Lake, we are pleased to rep ort th a t agreem ent was reached on M arch 12, 1948 for the relocation of the railroad w ithout expense to the State of Georgia. T h e U . S. A rm y Engineers have agreed to pay $1,500,000 as damages to the State-owned railroad by reason of the creation of Allatoon Lake, and the Lessee, the N. C. & St. L. Railway agreed to pay the balance of the cost estim ated to be $500,000 in a $2 million relocation project. T h e new route will remove over 360 of curvature in the present route and will reduce the distance betw een A cw orth and Cartersville by 1.6 miles. Tw o contracts were executed in A pril 1948 covering the agreement, terms and conditions thereof. One contract was a threeway contract between the U nited States of America, the State of Georgia represented by the G overnor and the C hairm an of the G eorgia Public Service Commission, as ow ner of the railroad, and the N. C. & St. L. R ailw ay as lessee of the railroad. T his con tract sets forth all terms, conditions and stipulations w ith respect to the agreement reached. A second contract was executed between the State of G eorgia as owner, and the N. C. & St. L. R ailw ay as lessee, binding and m aking the lessee responsible for the acquisition of right-of-way, paym ent of all costs involved in relocating the railroad, and providing th a t the sum advanced by the G overnm ent would be paid to lessee as a p a rt of the
145

cost of such relocation. This final agreem ent and related contracts represents one of the most substantial improvements made to the State-owned railroad since its first construction.
T he A nnual R eport of the N. G. & St. L. Railway, Lessee of the State-owned W est ern & Atlantic Railroad for the calendar year ended December 31, 1948 shows for net expenditures charged to the accounting classification Additions and Betterments by classes of railroad pro p erty the following amounts:
Im proved track m aterials .................................................................... ...... $ 97,578.97 Bridges, trestles and culverts .................................................................... 3,158.92 Y ard tracks and sidings ...................................__............. ...................... ...... 1,480.88 C hange of alignm ent ................ ................................. ........ ......................... (965.48) Public im provem ents ....... ___................................................... ...................... 5,125.83 Signals and interlockers ......................................................... ...................... 2,547.87 Station and Office Buildings ..................................................................... . 3,706.04 W ater stations .................................................... ................... ......................... 1,078.53
T o t a l ...........................................................................................................$113,711.56 The above net additions reported are after deductions for property retired and not replaced during the year in the aggregate am ount of $1,098.48, and the total net im provem ents to the W estern & A tlantic R ailroad from Jan u a ry 1, 1944 through Decem ber 31, 1948 is $1,820,815.63.
Respectfully submitted, W alter R. McDonald, Chairman M att L. M cW horter, Vice Chairman Allen Chappell, Commissioner Perry T. K night, Commissioner James A. Perry, Commissioner
146

77th REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1949
147

77th REPO R T OF GEORGIA PUBLIC SERVICE COM M ISSION
1949

TO HIS EXCELLENCY, GOVERNOR HERMAN TALMADGE:
As provided by law, the Georgia Public Service Commission submits herew ith its 77th Annual R eport of the regulatory activities of the Commission for the year ending December 31, 1949.
T he membership of the Commission remains unchanged, but on August 24, 1949, M att L. M cW horter was elected Chairm an, succeeding W alter R. M cDonald, and Perry T. K night was elected Vice C hairm an, succeeding M att L. M cW horter, for the two year term commencing August 27, 1949. T he present membership of the Commission is constituted as follows:
M att L. M cW horter, Chairman Perry T. K night, Vice Chairm an Allen Chappell, Commissioner W alter R. McDonald, Commissioner James A. Perry, Commissioner

T here has been no change in the staff of the Commission, but the C o m m ission lost another M otor C arrier Inspector in the d eath of Joe H. M oore on D ecem ber 16, 1949.

I t should be noted th at the Commission was placed under the State M erit System on O ctober 1, 1949, and on O ctober 3, 1949, the Commission approved the issuance of certificates of perm anent appointm ent status to all of the twenty-six employees of the Commission, whose names, listed in alphabetical order, and titles are as follows:

NAME:
R. B. Alford John L. Bennie David O. Benson Miss Joan Bishop H enry H. Cabaniss C. C. Clay Mrs. Mozelle Colquitt H erm an E. Conley N. Knowles Davis R obert N. Fellows Sam H. Flint A. J. Fort Frank A. Knox Mrs. Frances K. Kreeger W. M. Lee Miss D orothy Lunsford Mrs. Opal Magill N. B. M arcus Mrs. Emily M artin

T IT L E :
Senior Utilities Engineer Porter-M achine Operator Transportation Rates Specialist Senior Stenographer Utilities Auditor M otor Carrier Inspector Senior Stenographer M otor Carrier Inspector Chief Utilities Engineer A ccountant Transportation Rates Expert M otor C arrier Inspector Official Reporter Confidential Secretary M otor Carrier Inspector Senior Stenographer Senior Stenographer M otor Carrier Inspector Senior Stenographer

149

Joe H. Moore

M otor Carrier Inspector

A. O. Randall

Executive Secretary

a

Miss N ancy Reinsmith

Intermediate Typist

a

Mrs. Hazel P. Turner

Clerk

e

T . S. Tyson

M otor Carrier Inspector

c

Frank E. Watson

M otor Carrier Inspector

a

Carl H. Woods, Jr.

Utilities Engineer

The Commission also approved on the same date the appointm ent of a committee composed of C hairm an M cW horter and Commissioners Chappell and Perry to proceed w ith completion of plans for repair of a building adjacent to the State Office Building a t No. 30 C apitol Square, SW, A tlanta, G eorgia, for occupancy by the Commission in accordance w ith blueprint plans for rem odeling the building, State A uditor B. E. Thrasher having advised that the Governor had set aside the sum of $25,000.00 to be used for this purpose. On December 5, 1949, the Commission approved the execution of a contract with M artham e Sanders & Company for renovation and construction of a building for occupancy by the Commission at 30 C apitol Square, SW, A tlanta, Georgia, at a price of $62,683.00, the State A uditor having advised th at additional funds for this purpose would be made available.

MOTOR CARRIER REGULATION
Enforcem ent of the M otor C arrier Acts during the year was simplified due to the stabilization of existing carriers and to the experience of the enforcem ent officers, as well as by reason of the continued extension of reciprocity with other States. Total fees collected by the Commission for the year am ounted to $115,895.00, of which am ount the Commission's seven inspectors were responsible for collecting $57,781.50, and in addi tion thereto rem itted to the M otor Vehicle U nit of the Stale Revenue D epartm ent the sum of $37,308.08.
O n August 25, 1949, the Commission approved am endm ent of subparagraph (d) of Rule 25 of the M otor C arrier Rules and Regulations by adding thereto the following subparagraph (d-1):
"RU LE 25 (d-1)-- All m otor carriers holding Class "B" Certificates of Public Convenience and Necessity which authorize the transportation of household, kitchen and office furniture and store fixtures shall paint or stencil on both sides of their equipm ent in a m anner easily readable to the public, the letters "H H G " and the radius in miles in which they are authorized to operate."
On O ctober 31, 1949, based on a ruling of the A ttorney General, the Commission amended subsections (i) and (j) of Rule 25 of the M otor C arrier Rules and Regulations to provide for the paym ent of a fee of $1.00 for the issuance of each reciprocal tag and each pick-up tag to cover the cost of purchasing and issuing each license tag applied for.

RECIPROCAL AGREEMENTS
O n D ecem ber 12, 1949, the Commission approved an agreem ent for extension of full reciprocity with the State of New Hampshire. On December 29, 1949, the Com mission approved execution of a Joint Reciprocal Agreement between ten southern States, to-wit: Alabama, Georgia, Florida, Kentucky, Louisiana, Mississippi, N orth Carolina,

150

South Carolina, Tennessee and V irginia, and this Joint Reciprocal Agreement enlarged and liberalized agreements previously executed between these States separately. This agreem ent was drafted by representatives of all the States parties thereto following several extended conferences between the Reciprocating Officials of these states and bears the d ate of D ecem ber 17, 1949. It is expected th a t the execution thereof will be completed at an early date at which time it will become officially in effect.

T R A N S P O R T A T IO N

General

Service complaints and problems involving tariff interpretation continue to con sume m uch of the time of our Transportation R ate Staff. In addition to the 48 formal cases listed below which were made the subject of w ritten opinions the Commission dis posed inform ally of 156 m atters involving transportation rates and services.

Docket-No.

D ate

8902-A

Jan. 11, 1949

Subject
Complaint against C&WC Rail way for refusal to provide re ciprocal switching at Augusta

Disposition
Switching service re quired

9061-A

Jan. 11, 1949

Application of L& N R ailroad to discontinue passenger trains numbers 1 and 4 between A tlanta and Ga.-Tenn. State Line

Granted with condi tions

9072-A

Jan. 19, 1949

Complaint against rail rates on Applicable rates de

wooden tent poles

term in ed

8996-A

Feb. 1, 1949

Complaint against rail rates on Applicable rates de

scrap radio material

term in ed

9246-A

Feb. 17, 1949

Application of Ga. Railroad to change schedule of mixed train number 50 from Athens to U nion Point

G ranted

9247-A

Feb. 25, 1949

Application of certain rail car riers to establish extra charge for reserved seats on coaches

D en ied

9276-A 9018-A 9345-A

M arch 8, 1949 M arch 31, 1949 M ay 19, 1949

Application of Railway Express Agency for increased rates (Ex Parte 163)
Application of rail carriers to adjust rates on canned goods from Waynesboro
Application of A.C.L. Railroad to discontinue passenger serv ice between Brunswick and Nichols

G ranted G ranted G ran ted

151

1st Supt. 8798-A
9167-A
9344-A
9073-A 9392-A 9394-A 9440-A 3rd Supt. 8 4 5 1 -A 1st Supt. 9392-A
2nd Supt. 9392-A 9417-A
9498-A

M ay 19, 1949 M ay 24, 1949 June 7, 1949 Ju n e 13, 1949 Ju ly 1, 1949 July 27, 1949 Aug. 2, 1949 Aug. 25, 1949 O ct. 3, 1949
O ct. 3, 1949 Nov. 15, 1949
Nov. 15, 1949

Application of Southern Rail way to discontinue passenger trains numbers 24 and 25 be tween A tlanta and Columbus

G ran ted

Application of certain rail car riers to discontinue pick-up and delivery service at vari ous points

G ranted with excep tions

Application of rail carriers to amend commodity descrip tions of wire fencing and poultry netting

G ranted

Com plaint against rail rates on Dismissed scrap iron

Application of rail carriers to close depots on Saturdays
Application of rail carriers to adjust rates on road aggre gates
Application of Railway Express Agency to close offices on Saturdays

G ranted for one year subject to com plaint
Rate scale prescribed
G ranted subject to com plaint

Increase in rail rates on scrap Rates made subject

iron

to full increase

Com plaint against closing on Saturdays of rail depot at Covington

Depot service to be provided on Sat urdays upon re quest

Complaint against closing on Saturdays of rail depot at Alma
Petition requesting that Com mission require Sou. Ry. to operate passenger service be tween M cDonough and Co lumbus
Application of M.D.&S. R ail road to discontinue passenger trains numbers 17 and 18 be tween M acon and V idalia

Depot to be open 3 hours on Satur days
Denied
G ran ted

152

9499-A 9365-A
1st Supt. 9499-A
9136-A 9134-A 9265-A 9257-A 8742-A 9324-A 9115-A 9324-A 9290-A

Nov. 15, 1949 Nov. 15, 1949

Application of M.D.&S. R ail road to operate motor carrier service for handling of mail, express and LCL freight
Application of A.C.L. Railroad to discontinue daily operation of passenger trains numbers 122 and 123 betw een M an chester and Ga.-Ala. State Line and to operate in lieu thereof alternate service

G ranted
Granted with condi tions

Nov. 28, 1949
Jan . 11, 1949 Jan. 11, 1949 Feb. 25, 1949 M arch 8 , 1949 A pril 12, 1949 April 21, 1949 M ay 24, 1949

Petition for rehearing and re consideration of discontinu ance of M.D.&S. Railroad passenger trains num bers 17 and 18

Denied

Application of motor carriers to increase rates on iron and steel articles

G ranted in part

Complaint against motor carrier rates on sodium hypochlorite solution

Rates prescribed

Application of A tlanta Baggage and Cab Co. for increased fares

G ranted

Application of motor carriers for G ranted increased minimum charge

Application of motor carriers for elimination or extension of expiration dates in connection with certain rates

Extension granted

Application of m otor carriers to reduce rates on drugs, gases, gas cylinders and textiles

G ranted as to drugs others held for fur ther consideration

Complaint against motor carrier Applicable rates de

rates on winding cores

term in ed

June 7, 1949

Application of m otor carriers to reduce rate on drugs, gases, gas cylinders and textiles

Denied all e x c e p t drugs

June 7, 1949

Complaint against motor carrier rates on cotton work cloth ing

Applicable rates de term ined

153

9323-A 9320-A 9318-A
9390-A 8742-A
9257-A 9424-A 9461-A 9442-A 9460-A 8742-A
9570-A
9601-A 9569-A 8126-A

June 13, 1949 July l j 1949 Ju ly 1, 1949
July 1, 1949 July 20, 1949
July 20, 1949 July 27, 1949 Sept. 9, 1949 Sept. 19, 1949 O ct. 17, 1949 Dec. 19, 1949
Dec. 19, 1949
Dec. 20, 1949 Dec. 20, 1949 July 1, 1949

Application of motor carriers for increased rates on household goods

Rates prescribed

Application of motor carriers for modification of rates on cotton work clothing

G ranted

Application of motor carriers to cancel commodity rates on m eat and packing house prod ucts

Denied

Application of motor carriers for increased rates on clothing
Application of motor carriers for extension of expiration date in connection with cer tain rates

G ranted subject conditions
Extension granted

Application of motor carriers for modification of minimum charge provisions
Application of Georgia H igh way Express, Inc. for modifi cation of its capital structure
Application o f Franklinton Busses for increased fares
Complaint against service of Suburban Coach Co. Inc.
Application of Petroleum C ar rier Corp. for authority to transport asphalt
Application of motor carriers for elimination or extension of expiration date in connec tion w ith certain rates
Application of Southeastern Greyhound Lines to eliminate certain service between Talapoosa and Atlanta
Application of Leverette Freight Line for certain routing re strictions
Application of motor carriers for reduced rate on roofing and building materials
Application of Petroleum C ar rier Corp. for permanent op erating authority

G ran ted G ranted G ranted Dismissed Denied Extension granted
G ranted
Granted in part Denied G ranted

154

Bus Fares
A t the beginning of 1949 the Commission had pending before it a request of the larger carriers for higher intercity bus fares. In this case which had been heard in December, 1948 the principal passenger carriers proposed to increase fares from the authorized m axim um of 1.85 cents per mile to as high as 2.25 cents in some cases. The general basis proposed was 2 cents per mile but higher fares were suggested for the shorter hauls and one carrier asked permission to charge 2.25 cents per mile between sm aller local points. T he carriers also proposed to increase com m uter fares.
T he earnings of these companies during the first half of 1948 had been m aintained at an altogether adequate level. However, reports for the latter p art of the year showed th at substantial increases in the cost of fuel and wages together w ith steadily declining load factors had produced the highest operating ratios experienced since 1939. The record in the case also showed th at fares in Georgia were somewhat lower than in most of the other states in which the applicants operated.
O n Ja n u ary 19, 1949 the Commission authorized fares n o t exceeding two cents per mile. T he higher level between local points was disapproved and no authority was granted to increase commuter fares.
Relatively few of the local or suburban companies were perm itted to increase fares during 1949. From the standpoint of revenue the most im portant of these cases involved Franklin ton Busses, Inc., one of several suburban operators in the M acon area, and A t la n ta N orthern Lines, Inc. w hich is rendering in teru rb an service between A tlanta and M arietta in lieu of the street railway which formerly operated between these points. T he fares fixed for A tlanta N orthern Lines, Inc. adhere closely to the level approved for the intercity carriers except that more liberal provisions governing the use of commuta tion tickets were prescribed.
Truck Rates
A lthough in some respects costs continued their upw ard trend throughout the year, no general increases were made in the rates of the regular route m otor carriers of prop erty. All of these lines did seek permission, however, to raise their minimum charge per shipment to $1.25. A t th at time a minim um of 85 cents was perm itted for single line traffic and $1.05 for joint line traffic. T he carriers proposed that the lowest charge would be the first class rate p e r 100 pounds, o r $1.25, w hichever is greater. This is the same minimum, applied by the interstate motor carriers. It was demonstrated in this case th at the im pact of higher costs had weighed unevenly upon term inal functions which constitute the fixed or constant cost for each shipment, regardless of weight or distance handled. The evidence presented in this case portrayed more clearly than ever before the type of service being rendered by the m otor carriers. It was found that 35.79 per cent of all shipments handled were rated at the minimum charge and that 73.77 p er cent of all shipments these carriers handled w eighed less than 500 pounds. As the Commission com m ented in its order approving the higher charge, it is ap p aren t th at the m otor carriers are rendering more of an express service than a freight service as measured both by speed and type of traffic handled.
T he only other substantial upward adjustm ent in rates authorized for motor car riers was an increase for the household goods carriers. These carriers, which perform a specialized moving service handling uncrated furniture and all household appurten-
155

ances, again requested authority to establish approxim ately the interstate level of rates.

(

T he increases requested ranged from 19 p er cent to 65 p er cent, depending upon the

length of haul. A fter hearings the Commission authorized rates ranging from 9 per

cent to 33 per cent higher than the rates previously in effect. T he carriers also asked

c

to revise m any of their rules. T he principal revisions requested were restrictive in

1

nature and m ight have resulted in additional increased charges. Most of the proposed

1

rules were not authorized.

1

i

T h e slight but perceptible decline in the natio n 's economy accentuated carrier

j

competition and brought about a num ber of cases involving protested reductions in

]

rates. Among these was a proposal by the m otor carriers to reduce rates on roofing

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and building material. W hen the rates on this commodity were originaly prescribed

\

they were fixed slightly higher for motor carriers than for railroads in recognition of

]

the faster service and lower minimum rates of the m otor carriers. Subsequent increases

i

in railroad rates nullified this relationship. Thereafter the railroads reduced the rates

on roofing approximately restoring the former relationship. The motor carriers were

denied authority to make selective reductions on this commodity. O n the other hand

there was a contested case involving motor carrier rates on drugs and certain other com

modities between A tlanta and Savannah. The reduction was proposed to restore the

form er relationship between rail and truck and was authorized by the Commission.

A nother complex problem involves special reduced rates for account of the U nited States G overnm ent. Abuse of this p ractice is becom ing m ore w idespread and leads to destructive competition. In m any instances the lower level of rates for the Govern m ent cannot be justified from any cost standpoint, and in view of the substantial in creases m ade in rates for commercial shippers it appears th at reductions for account of the Governm ent should be carefully examined. Accordingly, the Commission has in stituted a proceeding in w hich it is investigating the necessity for G overnm ent qu o ta tions and the conditions under which they should be perm itted.

Rail Passenger T rain Service
O n January 3 certain of the larger carriers asked authority to establish a special service charge to be assessed passengers occupying reserved coach seats. T he charges proposed would apply only on certain trains and would be 50 cents per passenger for distances of 250 miles or less, and $1.00 p e r passenger for greater distances. T h e evidence shows th a t the prim ary purpose of the charges is to discourage passengers from failing to utilize or cancel space on coach trains which they have reserved to the exclusion of other passengers.
Regardless of the motive, it is quite evident th a t the proposed charges would increase fares substantially percentagewise and would produce considerable revenue. It also appeared th at the charges would further discourage the use of rail passenger service a t a period w hen all carriers are experiencing serious traffic losses.
By order dated February 25 the Commission denied the application.
The railroads continued their efforts to eliminate local passenger train service which they contended had become highly unprofitable because of increasing competition from private automobiles. A t the beginning of the year, there was pending before the Commission an application from the Louisville and Nashville Railroad Company for authority to discontinue its passenger trains numbers 1 and 4 between A tlanta and the

156

Georgia-Tennessee State Line north of Blue Ridge.
T he Commission issued an order on Jan u ary 11 approving the application to dis continue the trains subject to certain conditions. The evidence demonstrated the slight use of the trains for passenger service. O n the average, only 31 passengers per day used train num ber 1 and only 40 used train num ber 4. O f these, 60 p er cent rode less th an 20 miles. T he chief interest of th e protestants was in the m aintenance of adequate m ail and express service. T he Commission's order required the railroad to provide substitute truck service for the transportation of mail and express thus m eeting the m ajor needs shown by the evidence. These were the last trains operated on this line of railroad and while the Commission is relu ctan t to g ra n t such applications, the m ain tenance of local passenger service in such instances appears almost impossible. I t would have required 54 additional passengers daily riding the entire length of the line to produce sufficient revenue to eliminate the deficit, if revenue from all other sources remained the same.
In 1948, the A tlantic Coast Line Railroad Company was authorized to discontinue two trains between A tlanta and Brunswick, subject to the provision that it provide local trains between Nichols and Brunswick connecting w ith existing service between A tlanta and Waycross so as to m aintain through A tlanta-B runsw ick passenger service. A fter a year's experience, the railroad asked for au th o rity to discontinue the schedules between Nichols and Brunswick. T h e record showed virtually no use of the trains and a loss of $79,341.00. T he one item of wages for the train crew amounted to more than three times the total revenues earned by the trains. By order dated M ay 19, the Commission authorized the discontinuance of this service.
O n M ay 17, 1948 the Commission denied an application of the Southern R ailw ay C om pany to eliminate passenger service between A tlanta and Columbus. O n January 6, 1949 the Company filed a new application. W hen this case was heard, the evidence showed a loss of $59,000.00. A lthough the application had been previously denied on the theory th at a revision of schedules would attract more patronage and although the schedules were revised, passenger traffic actually dropped 25 p er cent. O n M ay 19 the Commission authorized the Southern Railway Com pany to discontinue the service subject to the condition that it make adequate provision for mail and express traffic. Subsequently certain citizens of Concord who protested the application obtained a tem porary restraining order in Pike Superior Court preventing the railroad from elimi nating the service. T he case was removed, however, to the U nited States D istrict C ourt a n d on Ju n e 30 th a t court issued an order dissolving the restraining order and shortly thereafter the service was elim inated. T h ereafter, on Ju ly 1, 1949 these citizens filed a com plaint w ith the Commission alleging th at Southern Railway Com pany by its failure to operate passenger service was not discharging its charter obligations and seek ing an order requiring the restoration of passenger service. In its order of N ovember 15 the Commission carefully considered the question of a railroad s obligation to provide some passenger service over each line and concluded that no need for the service had been shown and th at the railroad was under no obligation to perform the service in the absence of public necessity therefor.
O n Septem ber 7, the M acon, D ublin and Savannah R ailroad C om pany asked p e r mission to discontinue its last passenger service between M acon and Vidalia and to substitute in lieu thereof a truck on which it proposed to handle express and certain less than carload freight shipments. This line has also experienced a sharp decline in
157

passenger revenue and the two trains were losing in excess of $50,000 per year. The application was gran ted on Novem ber 15 w ith the requirem ent th a t substitute mail and express service be rendered.
Railway Express
A t the beginning of the year there was pending before the Commission an applica tion of R ailw ay Express Agency, Inc. to increase rates by 10 p er cent. O n Jan u ary 11 and before th a t application h ad been decided, the Express A gency asked th a t the Commission authorize it to make effective in Georgia increased express rates correspond ing to those authorized by the Interstate Commerce Commission in Docket Ex Parte 163 by order dated December 29, 1948. Although the revised rates approved by the Commission result in an increase of approxim ately 14 p er cent in Georgia, they do accom plish the uniform ity w hich this Commission has so long advocated. For m any years, the express rates in the South have been considerably higher than those in the N orth and East. U nder the new structure, they will be the same throughout the nation.
T he Express Agency was also a party to the labor agreem ent providing for a 40hour work week and effective on September 1 the Commission perm itted the Express Agency to discontinue Saturday service at virtually all of its offices in Georgia.
Rail Freight
The Commission perm itted a 20 per cent increase in rates on scrap iron follow ing authorization of the same percentage increase on Alabama intrastate traffic. It will be recalled that rates on scrap iron had been exempted from the increase perm itted in 1947, due to the fact that a Georgia m anufacturer competed w ith Alabama steel mills in the sale of products m anufactured from scrap iron, and this m anufacturer had requested the Commission to withhold an increase from intrastate rates until a similar increase was perm itted in Alabama.
Otherwise there were no general increases in rates during 1949. On the contrary reductions were made in rates on a substantial num ber of commodities for the purpose of meeting private truck competition and overcoming shipper resistance to the higher charges.
Among the commodities on which the carriers proposed to establish reduced rates was liquid petroleum products in bulk. The rates filed by the railroads resulted in substantial reductions between certain points where there was a considerable movement. Between other points no reductions were proposed. N ot only was the pattern of the rates inconsistent and thus ap p aren tly discrim inatory, b u t there was some question as to w hether the reduced rates were sufficiently rem unerative. O n Septem ber 19 the Com mission issued an order requiring the rail carriers to postpone the effective date of the reduced rates originally scheduled to become effective on O ctober 10 and to show cause why the Commission should not prescribe maximum and minimum rates on petroleum products in bulk. A t the same time the Commission issued an order requiring the principal motor carriers of liquid petroleum products to show cause why maximum and minimum motor carrier rates should not be prescribed. Certain of the motor carriers had also filed reduced rates designed to meet, in part, the proposed railroad reduction. The case was originally assigned for hearing before the Commission on O ctober 28, 1949, but at the request of interested parties was subsequently postponed and at the end of the year had not been heard.
158

From time to time, several of the railroads filed applications for authority to dis continue pick-up and delivery services and allowances in lieu thereof at various points in the state. By early in 1949 there was pending before the Commission applications in volving 59 stations on eight different railroads. Although the Commission had generally handled such applications on its formal docket subject to complaint, it appeared that the num ber of stations involved in these applications demanded an inquiry into the law fulness of m aintaining pick-up and delivery service at one station and not at another. T herefore the Commission assigned the applications for hearing on M arch 26 and its staff offered certain evidence designed to show th at the failure to authorize allowances in lieu of pick-up and delivery services in effect resulted in discrim ination in freight charges. T he carriers contended th a t unless they held themselves out to perform the service they could not lawfully offer to make allowances. Decisions of the Interstate Commerce Commission and the U nited States Supreme C ourt were cited in support of this contention. W hile it is doubtful th a t the cases relied upon are applicable in G eorgia, it did not seem th at the use of either pick-up and delivery services or allowances at most of the 59 stations was sufficient to justify exceptional treatm ent. A t most of these stations, the carriers found it impossible to make satisfactory arrangem ents for drayage service. O n M ay 24, we approved all of the applications except the one affecting Meigs. The record showed that shippers were dependent upon pick-up and delivery services at this point and were utilizing the services to some extent. We did not follow the recommendations of our staff that disposition of this case be delayed pending the In terstate Comm erce Commission's investigation of pick-up and delivery services, b u t we are hopeful that some overall solution to the problem may be forthcoming from that investigation.
Following prolonged negotiations, the nation's railroads on M arch 19, 1949 entered into an agreem ent w ith the non-operating railroad labor unions providing for a 40 h our work week to become effective Septem ber 1. D uring M ay and June, all of the railroads in Georgia applied to the Commission for relief from Freight Rule No. 23 which prescribes the hours for keeping depots open. A t the hearing on this m atter, it was shown that if the carriers were required to continue Saturday service at all stations in Georgia they would incur additional wage expenses of approxim ately $1,200,000.00 per year because of the penalty rates they would have to pay under the 40-hour w ork week agreem ent. O n Ju ly 1, the Commission issued an order suspending F reight R ule No. 23 for a period of 12 m onths b u t retained jurisdiction over the case for the purpose of determ ining the service required at individual stations where com plaints were m ade against the elimination of Saturday service. Numerous complaints were made but most of them were settled on a compromise basis. After several additional hearings, the Commission concluded the m atter by requiring limited Saturday service a t a very few stations where peculiar need was shown.
On June 9, the rail carriers sought authority to again revise rates on road aggre gates. The rates proposed were those agreed upon at a conference between shippers and carriers in New Orleans for application throughout Southern territory. The pro posal embodies a dual scale system with rates for joint line service 10 cents per ton higher than the rates for single line service. Following hearings, the Commission pre scribed a merged scale 5 cents per ton higher than the rates proposed by the carriers for single line application and 5 cents per ton lower than those proposed for joint hauls. This action m et the only objections shippers had to the revised basis of rates
159

and is consistent w ith the policy of the Commission n o t to penalize shippers who are required to use services of more than one carrier.

C

re

Participation in Interstate Rate Cases

R

P>

T h e com plaint of the K entucky Coal A gency seeking the establishm ent of reduced d<

rates on coal from western K entucky Mines to points in G eorgia and F lorida was the re

subject of hearings held in Louisville, K entucky early this year and our staff offered ip

testimony which was designed to support to the fullest extent the position we have N

taken on behalf of Georgia consumers of coal. This case involves not only the reason m

ableness of the rates from western K entucky Mines, b u t also an allegation of preference fc

and prejudice. Conceivably the Interstate Commerce Commission m ight enter an alter tl

native order w hich would perm it the railroads to elim inate discrim ination by increasing sc

rates from eastern K entucky M ines to Georgia. O u r evidence concentrated on the a(

declining use of coal, the greater availability of natural gas and the adverse effect any sc

increases in coal rates would have. We are supporting the establishment of reduced T

rates from western K entucky and insist that these should be prescribed.

ol

fc
Following a favorable decision in the Peach R ate Case, wherein the N orthern R ail w roads had sought to make substantial increases in rates on peaches from the South to it the N orthern States, a petition for reconsideration was filed by these N orthern carriers.

We filed a reply to th at petition late in 1948. On January 3 this year we received a

final order from the Interstate Commerce Commission denying the petition for recon ti

sideration and thus refusing to perm it the rate increase sought by the N orthern R ail lu

roads.

a

Ol
By com plaint filed w ith the Interstate Commerce Commission in April the Georgia te P eanut C om pany has assailed as unlaw ful export rates on peanuts from various points G in Georgia to the Port of Savannah. We are w atching this case and preparing to

intervene in it if it appears desirable for the purpose of assisting the Georgia peanut

growers.

rr

H L ate in 1948 the In terstate Comm erce Commission instituted an investigation into te the transportation of agricultural commodities by unregulated m otor vehicles for the V purpose of determ ining th e extent to w hich the transportation of ag ricultural commo a: dities is exem pted from regulation under the provisions of Section 20 3 (b ) ( 6 ) of the rr Interstate Comm erce Act. O u r interest in this case appears twofold. F irst, it is our
C(
responsibility to assist Georgia shippers of agricultural commodities; and second, as an
ti
agency regulating for hire motor carriers we do not feel that we should recommend

anything which would im pair the ability of regulated common carriers to provide ade

quate service to the public. A hearing was held in A tlanta on this m atter in January. E

A member of our staff participated in the examination of witnesses but no evidence was g

offered on behalf of the Commission. We did undertake to assist a num ber of shippers P of agricultural commodities in preparing statements to be subm itted to the Federal ii

Commission.

A

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A fter we prevailed upon the railroads to suspend the tim e consum ing hearings ir

they were conducting on the uniform freight classification w hich m ust be com pleted e'

before we can finally achieve uniform ity of class rates they m ade good progress. H ow e:

ever, we were confronted w ith another crisis in this all im portant case, when on O ctober

19 the railroads operating in the W estern D istrict petitioned the In terstate Commerce

P e'

160

Commission to reopen the entire class rate case. Obviously the purpose of such a reopening was to attack the Commission's decision prescribing uniform rates east of the Rocky Mountains. Although the statements made by the western carriers related principally to conditions in the W estern D istrict we were well aware th at any breaking down of the Commission's order m ight finally destroy our h ard won victory before we realized its full benefits. We, therefore, filed a vigorous reply to this petition insisting that it be denied. The denial was forthcoming in a most acceptable form when on November 28 the Interstate Commerce Commission issued a notice of proposed rule m aking reopening to a very lim ited extent the class rate case. T h e case was reopened for only two purposes. First, to determine the am ount of increases (corresponding to the general increases in other rates perm itted since 1945) to be applied to the prescribed scale of uniform class rates; and second, to determ ine if arbitraries should be added for account of the short line railroads. T he Commission attached to its notice a proposed scale w hich is roughly about 60 p er cent higher th an the originally prescribed scale This 60 per cent is perhaps som ewhat less th an the average of the increases applied to other rates. T he evidence for or against the proposed scale will be received in w ritten form and it is not anticipated th a t fu rth e r oral hearings will be held. D ecem ber 30 was originally set as the last date for receiving evidence-in-chief b u t on D ecem ber 15 it was postponed until Jan u ary 30.
Also on Novem ber 30 the In terstate Comm erce Commission instituted an investiga tion into class rates in M ountain Pacific territo ry -- th a t ares, lying west of the Rocky M ountains. We will w atch this investigation very closely w ith the hope th at eventually a uniform class rate structure m ay be prescribed throughout the U n ited States, however, our chief interest will be in seeing that whatever rates are prescribed in M ountain Pacific te rrito ry will fit in w ith the rates ultim ately fixed on transcontinental traffic so th a t Georgia shippers will have a fair opportunity to reach far western markets.
T he Interstate Commerce Commission had instituted an investigation into both m otor carrier and railroad small shipm ent charges and pick-up and delivery services. Hearings were held in these investigations in July, 1949 and a member of our staff testified with respect to the interest of the Georgia shippers and receivers of freight. We called to the attention of the Interstate Commerce Commission the discrim inatory aspects of pick-up and delivery service as it is now being rendered by the railroads . It m ay be th at some beneficial results can come out of this investigation, although we are concerned th at charges on small shipments m ight be m aterially increased. We will con tinue to participate in these investigations.
T he Interstate Commerce Commission conducted further hearings in its Docket Ex P arte 168 concerning the application of all of the nation's railroads for fu rth er general increases in freight rates. Just at the close of 1948 the Federal Commission perm itted a 6 per cent increase in the East and in the South and a 5 per cent increase in the West. D uring 1949 additional hearings were held, including one at Montgomery, Alabama. We were represented at th at hearing and offered evidence designed to show that much traffic was being diverted from the railroads to private trucks because of the increasing level of railroad freight rates. The Interstate Commerce Commission, how ever, on A ugust 2 issued an order g ranting a 10 per cent increase subject to a num ber of exceptions and restrictions. T h e am ount granted was substantially less th an the 13 per cent requested by the carriers. Actually the effect of the authorized increase was even less than appeared on the surface because as we anticipated the carriers found it
161

necessary to m ake num erous voluntary exemptions in order to hold traffic w hich was a:

being diverted to private transportation.

a:

U TILITY REGULATION

a

Electric Utilities

1

c

A heavy post-war construction program by electric utilities in Georgia in 1949 $ resulted in several applications for authority to issue substantial amounts of new and n additional securities. O n M arch 31, 1949 Savannah Electric and Power Company S

was granted authority to issue and sell $200,000 p ar value of its 5 per cent Cum ulative

P referred Stock. T h e C om pany h ad been authorized on O ctober 27, 1948 to issue $1

million p ar value of such stock and to sell at th at time $300,000 p ar value thereof, o

w ith the proviso th a t fu rth e r authorization be required before the sale of any of the ii

rem aining $700,000 par value of th at stock. T he authority granted in 1949 perm itted V

the sale of $200,000 additional par value which increased the outstanding stock to n

$500,000 par value in total. O n August 2, 1949 Savannah Electric and Power Company B

was authorized to issue and sell $4 million principal am ount of unsecured 3% per cent r

D ebentures dated A ugust 1, 1949 and due A ugust 1, 1969 and to sell the same a t not e.

less than $100.50 for each $100 of the principal am ount thereof, plus accrued interest. A portion of the proceeds from the sale of these Debentures was used to retire $2,805,-

|c

599 face am ount of bank loans to the Com pany, w hich funds had been borrow ed for the A.

purpose of making capital additions to plant and equipment.

O n Novem ber 15, 1949 G eorgia Pow er C om pany was authorized to issue and sell

500,000 shares of its common stock to the Southern Company for a cash consideration

of $8J4 million. The proceeds from this loan were used to finance in p art the rem aining

1949 construction expenditures of $24,533,374, and in p art 1950 expenditures esti C

m ated to be some $30 million.

0

s

There were three minor electric rate changes during the year by authority of {

the Commission. O n M arch 30, 1949 the Commission prescribed a revision in the i:

fuel adjustm ent charge in the wholesale municipal rate of Georgia Power and Light t

Company, resulting in a reduction in cost of service to small municipalities purchasing

energy for resale. A new schedule for the Savannah Electric and Power Company for 1

the sale of electric power at wholesale to large m ilitary installations was established by r

the Commission on Ju n e 13, 1949; and on O ctober 17, 1949 the Commission prescribed r

a new schedule for G eorgia Pow er C om pany to be applied w hen energy is sold a t i

wholesale through one m eter for distribution to apartm ent units.

t

Gas Utilities

As a result of the need for capital funds for construction requirem ents a few

authorizations to issue securities were granted during the year. O n O ctober 31, 1949

the South A tlantic Gas Com pany was authorized to issue and sell 26,000 shares of its

t

$5 par value common stock at a price per share to raise some $214,000 of equity capital.

t

O f this am ount $140,000 was used to pay two short term notes, which sum was bor

t

rowed for capital expenditures, and the rem ainder was used for further construction

i

expenditures.

i

(

O n December 29, 1949 South A tlantic Gas Com pany was authorized to issue a

note in the face amount of $80,000, bearing interest at the rate of 3 per cent per (

162

annum, to be due two years from date, which note was used for the purpose of paying an outstanding note bearing the same rate of interest.
A tlanta Gas L ight C om pany on D ecem ber 5, 1949 was granted auth o rity to issue and sell $7 million principal am ount of F irst M ortgage Bonds, 3 per cent Series, due in 1974, to six insurance companies a t a price of not less th an 100.88 p e r cent of the p rin cipal am ount thereof, plus accrued interest at the date of sale. Of the proceeds derived, $1,800,000 was used to pay in full short term bank loans, and the rem ainder to call, retire, and cancel $3,428,000 principal amount of First Mortgage Bonds, 3J4 per cent Series, due 1973 and to provide additional funds for construction expenditures.
In rate m atters, the Commission authorized the Gas Light Company of Columbus on M ay 24, 1949 to discontinue furnishing fuel oil standby service when interruptions in gas service were necessary. O n November 21, 1949 A tlanta Gas Light Company was authorized to revise rates for m anufactured gas service in Augusta, Georgia to reflect a change in the heat content of gas supplied from 530 BTU per cu. ft. to 950 BTU per cu. ft. T he new rates authorized made no material change in the revenues received by the Company. However, the form er optional general service rate was eliminated, under which rate gas customers could qualify if they installed specific gas consuming equipment. As a result of a rate change, the optional rate was increased and the higher rate reduced thus eliminating an undesirable feature in the gas rates in Augusta.
Telephone Utilities
Southern Bell Telephone & Telegraph Company
A continuing investigation of the rates of the Southern Bell Telephone & Telegraph Company for telephone service resulted in the issuance of an order by the Commission on Ja n u ary 10, 1949 prescribing increased rates for both exchange and toll telephone service in Georgia. The history of the investigation leading up to the issuance of this order is discussed in the 1948 rep o rt of the Commission. T h e C om pany had p u t into effect increased rates on December 23, 1948 w ithout specific authorization from the Commission at a level, which would increase gross revenues $3,055,600 per annum, an d the decision on Jan u ary 10, 1949 found th a t the rates riled w ith the Commission in Decem ber 1948 were excessive and th at this am ount of added gross revenue was not required. The rates authorized represent a reduction of $1,572,600 per annum in the rates put into effect by the Company during the prior month, although the new rates represented an increase of $1,483,000 per annum above the level of rates in effect prior to December 23, 1948. T he Company alleged it required a 6 % per cent rate of return and the Commission found th at a 5.65 per cent rate of return was adequate and reason able.
O n January 20, 1949 Southern Bell Telephone & Telegraph Com pany filed a peti tion w ith the Commission requesting a rehearing and reconsideration w ith regard to the rates prescribed by the Commission order of Jan u ary 10. W hile this petition outlined the general issues raised by the C om pany w ith respect to the findings of the Commission, it did not set forth particulars or give evidence in support of the allegations, but requested that the record be reopened and the Company granted the opportunity to offer evidence in support thereof. This petition for rehearing was amended on Feb ruary 9, 1949, alleging that on February 4 a wage increase was granted to all of the C om pany's non-supervisory employees in the annual am ount of $8,770,000, of which
163

approxim ately $920,000 per annum was chargeable to Georgia intrastate operations. T he petition as am ended requested reopening the record in the case for the introduction of evidence and testim ony in support of p etitioner's allegations. This petition in effect raised two questions; first, as to the m erits of the Commission's findings based on the record before the Commission at the time of the decision, and second, subsequent events which were not in the record in the form er proceeding. After careful consideration of this petition as am ended, the Commission concluded th a t (1) it would not be p roper to include for consideration the wage increase in the form er and closed record in that proceeding, but should be reviewed in the light of more recent operating reports. (2 ) The petition for rehearing and reconsideration should be denied, and (3) the petition as amended should be considered as an application from the Com pany for authority to further revise its rates for telephone service. The Commission, therefore, on M arch 30, 1949 acted accordingly and assigned the m atter for further hearing before the Commission on A pril 14, 1949.
By agreem ent of counsel for the Telephone Company and the Staff of the Com mission the record and evidence developed before the Commission in the preceding case was made a part of the record in the latter case by reference. Hearings on this m atter were held before the Commission on A pril 14, 29, M ay 2, and 16, 1949 and the Com pany subm itted a substantial am ount of additional evidence and testimony w ith respect to earnings and investments for a more recent period. The evidence showed the Company had granted a wage increase chargeable to Georgia operating expenses of $922,328 subsequent to the last decision of the Commission. T he Company alleged further that an increase in depreciation rates am ounted to $59,673 per annum . In addition to these two items of increased expense, the Company claimed that it required $2,584,196 per annum of added gross revenue in order to earn a rate of return of 6.66 per cent and a further amount of $652,574 to offset the depressing effect of current high cost construc tion. After giving effect to adjustm ents for franchise taxes, etc., the request of the Company sought an increase in annual revenue of $4,235,616. Considerable evidence and testimony was introduced by the staff of the Commission, and after careful consideration of the m atter, the Commission issued its decision on Ju n e 14, 1949 in w hich it was found th at an increase in annual gross revenue of $2,322,724 was sufficient to provide the Company with a reasonable rate of return, after providing for alleged increased costs of operation. T his increase was $1,912,892 less than alleged to be necessary by the Company.
O n Jan u ary 19, 1949 the Commission authorized an increase in rates for telephone service in Buford and in H azlehurst to become effective upon conversion of these ex changes to automatic dial operation.
Telephone service in and around Sardis as form erly provided by the Savannah Valley Telephone Company became extremely poor, and after a concerted effort by the Commission to require that Com pany to properly improve the service over a long period of time, the Commission finally called on Southern Bell Telephone & Telegraph Company to show cause why that Company should not extend and establish service in the Sardis area. A fter the Sardis exchange was closed and service abandoned by the form er Company, the Commission on January 6, 1949 required Southern Bell to proceed w ithout delay to develop plans for the extension and provision of telephone service in Sardis. As a result of this order, telephone service was established in this com m unity by that Company.
164

Independent Telephone Companies

As a result of substantial increase in the costs of operation in the post-w ar period, particularly increases in operators' wages and in the cost of new telephone equipment, the Commission received a host of applications for authority to increase rates from independent telephone companies in Georgia. D uring the year 1949, 33 opinions and orders of the Commission were issued rendering decisions in independent telephone com pany rate cases. T h e following list gives the nam e of the applicant, the date of the Commission order, the am ount of annual revenue increase requested and the amount of increased revenue found necessary by the Commission:

NAME OF COMPANY
Ellijay Telephone Company Thomaston Telephone Company Gray Telephone Company &
Haddock Telephone Company Alma Telephone Company Trion Telephone Company Ringgold Telephone Company Fairm ount Telephone Company Interstate Tel. Co. (Attapulgus) Seminole Telephone Company Nelson-Ball Ground Telephone Co. Conley Telephone Company Statesboro Telephone Company Georgia Continental Telephone Co. Folkston Telephone Company M addox Telephone Company Farmers Telephone Company Brooklet Telephone Company Standard Telephone Company Southeastern Tel. Co. (Helena-M cRae) Consolidated Telephone Company Leslie-DeSoto Telephone Co. Rochelle Telephone Company W ayne Telephone Company Danielsville & Corner Telephone Co. Pinehurst Telephone Co. W higham Telephone Co. Gordon Telephone Company Louise Telephone Company Vienna Telephone Company Culloden Telephone Company Southeastern Tel. Co. (Fitzgerald) Sikes Telephone Company Canton Telephone Company

D ate of Annual Revenue Increase O rder Requested G ranted

1/6/49 1 /6 /4 9

$ 2,620 $ 2,620

30,135

18,186

1/19/49 1/19/49 1/19/49 2/9/49
2 /9 /4 9 3/16/49 3/16/49 3/30/49 3/30/49 3/30/49 4/12/49 5/17/49 6 /1 4 /4 9
7 /1 /4 9 7 /1 /4 9 7 /1 /4 9 7 /1 /4 9 7 /1 /4 9 7/27/49 7/27/49 7/27/49 8 /2 /4 9 9/26/49 9/26/49 10/10/49 11/7/49 11/7/49 11/15/49 11/15/49 11/21/49 11/28/49

2,229 165
2,430 3,282
792 778 5,507 1,857 156 12,064 77,481 2,781 1,740 2,811 393 6,670 12,846 26,260 2,005 2,215 396 3,966 900 900 3,607 1,572 5,565 381 29,475 7,299 9,176

2,193 165
2,430 3,282
594 391 4,205 1,857 156 7,671 39,192 2,769 1,740 1,956 393 4,104 12,846 21,771 2,005 1,756 396 3,966 900 900 3,007 1,572 5,565 381 28,509 6,153 9,176

Total

$259,863 $192,216

165

Southeastern Telephone Com pany was authorized to issue notes in the aggregate principal am ount of $1/4 million at an interest rate of 3.75 per cent by Commission order dated M arch 25, 1949 for the purpose of providing funds for construction require ments.
On July 2, 1949 Blakely Telephone Com pany was granted authority to borrow an additional $10,000 from the Citizens & Southern N ational Bank of A tlanta at an interest rate not to exceed 4 /4 per cent per annum and to be repaid in a period of five years. This loan was necessary to provide additional capital for the conversion of the Blakely exchange to autom atic dial operation.
Standard Telephone Company on July 27, 1949 was granted authority to borrow $30,000 from the First N ational Bank of Cornelia and the Reconstruction Finance Cor poration to be repaid a t the rate of $250 per m onth over 10 years, w ith interest a t the rate of 4 per cent on the remaining balance. The proceeds of this loan were used to retire an existing loan in the am ount of $16,500 and other short term obligations of the Com pany which had been incurred to provide for the construction requirements of the Company.
Georgia Continental Telephone Company on application to the Commission was granted authority by order d ated N ovember 15, 1949 to issue and sell $95,000 additional principal am ount of First M ortgage 4J4 per cent Sinking Fund Bonds. $20,000 of the proceeds from this issue were used to retire outstanding short term obligations and the balance of the proceeds were used for the construction, extension and im provem ent of the C om pany's facilities and properties.
By Commission order dated N ovember 15, 1949, Southeastern Telephone Com pany was authorized to issue and sell 5,000 shares of 5 per cent Cum ulative Preferred Stock w ith a p ar value of $100 per share, to change the par value of its presently outstanding common stock to a p a r value of $10 p er share and to issue 58,332- l/% additional shares of common stock of $10 par value. Of the new common stock to be issued, 23,332-1/3 shares were issued to present holders of the common stock of the Com pany in the ratio of one share of additional stock for each of three shares of stock then held, which stock was issued against the paid-in surplus account of the Company, plus a minor am ount of its earned surplus. T he rem aining 35,000 shares of common stock issued were issued to Central Electric and Gas Company in consideration of $350,000 of a total of $634,000 which had theretofore been advanced to the Southeastern Telephone Company. The proceeds from the sale of the preferred stock were used to provide $284,000 to repay the rem ainder of the advances made by C entral Electric and Gas Company and to provide $216,000 in cash for construction, additions and improve m ent of the C om pany's property. T h e prior advances m ade by C entral E lectric and Gas Company were for capital to cover the construction requirements of the South eastern Telephone Company.
In each of the above security applications, the m atters were advertised and assigned for public hearing before the Commission and decisions rendered only after a careful investigation of the proposed issuance.
Telegraph Utilities
There were no m aterial telegraph rate changes in Georgia during the year 1949.
166

Transit Utilities
The application of the Columbus Transportation Company for authority to in crease token fares in Columbus, Georgia was received on November 12, 1948 and the m atter decided by the Commission on Jan u ary 14, 1949. T h e increase was m ade necessary prim arily due to increases in wages paid to company employees. T he Com pany requested an increase in token fares from 4 tokens for 25# to 4 tokens for 30# and the Commission's order authorized a token rate of 2 for 15# after public hearing and analysis of the record.
O n February 3, 1949 G eorgia Power C om pany filed a second request for an in crease in fares on its A tlanta transportation system. Hearings were held before the Commission on February 25, M arch 3 and 4, 1949. The application of the Company again sought authorization for a straight 10# fare by the elimination of token fares and an increase in the round trip shoppers ticket from 10# to 15#. This second application of the Company was predicated upon a substantial increase in wages granted its em ployees effective M ay 1, 1948 subsequent to the p rior decision of the Commission. After making certain adjustments, particularly a substantial reduction in depreciation expense, the Commission on M arch 16, 1949 rendered its opinion and order in which it was found th a t a token fare of 11 tokens for $ 1.00 should be provided ra th e r th an a straight cash fare of 10# w ith no token fare.
O n M ay 30, 1949 Georgia Power Com pany was granted authority to sell its bus properties and franchise serving the City of M acon and vicinity to Bibb T ransit Com pany. This application was made pursuant to an Act of the General Assembly of the State of Georgia entitled "Sale of Street Railroad and Bus Properties", approved M arch 9, 1945, and the sale of the property resulted from the requirem ent of the Securities and Exchange Commission in an order dated A ugust 1, 1947 directing th a t the tran sp o rta tion properties of Georgia Power Company be divested from the ownership and op eration of its electric properties. In finding that the proposed sale was in the public interest, the Commission determ ined th at the Bibb T ransit Com pany was financially able and had capable management to conduct the transportation system in Macon efficiently. O n June 15, 1949 Bibb T ran sit C om pany was granted au th o rity to issue and sell $285,000 principal am ount of 6 per cent Debentures and to issue and sell 30,000 shares of common stock and to issue evidence of indebtedness of n o t m ore than $150,000 in order to provide the necessary capital w ith which to purchase and operate the system. This authorization was am ended on Ju ly 13, 1949 p erm itting the issuance of $285,800 of the Debentures and 31,000 shares of common stock.
On O ctober 28, 1949 Georgia Power Company filed an application with the Com mission seeking authority to sell its bus properties and franchise in the city of Augusta to the Augusta Coach Company, also pursuant to the Act of the General Assembly approved M arch 9, 1945. This petition was granted on November 15, 1949 in w hich the Commission found th at the Augusta Coach Company was qualified to provide ade quate transportation service in Augusta.
W ESTERN & ATLANTIC RAILROAD
O n F ebruary 11, 1949 an inspection by the jo in t House and Senate C om m ittee of the Georgia Legislature was made of the W & A Railroad. At this time the construc tion of the new route near Allatoona Lake had not been completed, but was well under
167

way. As a result of the inspection, it was found that the railroad property was being fully m aintained in conformity w ith the terms of the lease contract.
C onstruction of the relocation of the W estern & A tlantic route in the vicinity of the Allatoona dam was commenced in 1948 shortly after the execution of the contracts referred to in our report last year. This construction work was completed in 1949 and the first train operated over the new route in June 1949. N ot only does this relocation remove the railroad from the hazards of the Allatoona pool, but it also represents a m ajor improvement in the road by reason of the much more direct route in the relocated section.

Pursuant to authority granted by a joint resolution of the State Legislature and the after approval of plans and specifications by the Commission, a plaza was constructed by the City of A tlanta over the W & A Railroad right-of-way between W hitehall and Pryor Streets in the C ity of A tlanta. This plaza was completed and final inspection made thereof on August 22, 1949.

The A nnual Report of the N. C. & St. L. Railway, Lessee of the state-owned W estern & A tlantic Railroad for the calendar year ended December 31, 1949 shows for net expenditures charged to the accounting classification Additions and Betterments by classes of railroad pro p erty the following amounts:

Im proved track m aterial ................................... ....................................... $ Bridges, trestles and culverts .................................................................. Y ard tracks and sidings .......... .............. ........ ........................ C hange of alignm ent ........... ...................................................... ...... ......... Public im provem ents ...................................................................... Signals and interlockers ............................................................................ Station and Office Buildings .............................. ...... ...... ......................

69,041.35 5 757.18 14 902.57
902,863.46 2,207.95
126,684.32 1,388.91

T otal .......... .................................................................................... -$1,122,845.74
The above net additions reported are after deduction for property retired and not replaced during the year in the aggregate amount of $42,593.51, and the total net im provem ents to the W estern & A tlantic R ailroad from Ja n u ary 1, 1944 through D ecem ber 31, 1949 is $2,943,661.37.
Respectfully submitted,
M att L. M cW horter, Chairman Perry T. K night, Vice Chairman Allen Chappell, Commissioner W alter R. McDonald, Commissioner James A. Perry, Commissioner

168

78th REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1950
169

78th R EPO R T OF GEORGIA PUBLIC SERVICE COM M ISSION
1950
TO HIS EXCELLENCY GOVERNOR HERMAN TALMADGE:
As provided by law, the G eorgia Public Service Commission submits herew ith its 78th A nnual R eport of the regulatory activities of the Commission for the year ending December 31, 1950.
There was no change in the personnel or staff of the Commission during the year, but in June the Commission moved its offices from 219 State Capitol Bldg., where it had been located for m ore than a half century, to its new quarters at 30 C apitol Square, SW, adjacent to the State Office Building, which was an old residence remodeled and enlarged for the sole use of the Commission. I t is particularly gratifying th at, in addi tion to providing more adequate office and filing space, there was added to the remodeled structure a commodious H earing Room for the Commission s own use in conducting its numerous public hearings.
M O TOR CARRIER REGULATION
T otal fees collected by the Commission for the year am ounted to $126,650.00 of which am ount $112,175.00 was for regular Public Service Commission tags at a fee of $25.00 each, $10,235.00 represents reciprocal tags at $1.00 each for 10,235 reciprocal tags, $865.00 for 865 pick-up tags at $1.00 each and $3,375.00 representing certificate and transfer fees. N o new Inspectors have been employed and the investigation and enforcem ent w ork in the field was ably conducted by the Commission's seven Inspectors.
There was no m aterial change in the certificate routes of the operating companies qualified w ith the Commission, except that Reliable Transfer Company, of Augusta, Georgia, transferred all of its certificates of public convenience and necessity to Brown T ran sp o rt C orp., of Augusta, Georgia, w hich is a regular route carrier, operating p rin cipally between A tlanta and Augusta, between Augusta and Savannah, between Augusta and M acon, and between Savannah and Athens.
O n M arch 27, 1950, the Commission issued a rule nisi against Smith Transfer Company, East Point, Georgia, to show cause why the Commission should not interpret the m eaning of the words " highw ay m aterial" as contained in its Class " B" Certificate. Following hearing on said rule nisi the Commission on A pril 17, 1950, issued an order finding th at although a definition of the words "highway m aterial" would include asphalt th at when said certificate was issued it was not intended th at the holder thereof was authorized to transport asphalt. T he decision of the Commission was appealed and the Supreme C ourt held that the Commission did not have authority to alter or amend a certificate in the guise of an interpretation thereof.
I t was found necessary in the enforcement of the M otor C arrier Laws to bring injunction proceedings against some station wagon operators in Summerville and Trion, Georgia, for operating in the transportation of passengers for hire w ithout certificates of public convenience and necessity. It was also necessary to bring an injunction pro-
171

ceeding against a truck operator in Columbus, Georgia, for operating in the transporta tion of property for hire w ithout a certificate of public convenience and necessity.
T he only m aterial change in the operations of bus companies in the state was the acquisition by The Greyhound Corporation, of Chicago, Illinois, of all certificates of public convenience and necessity held by Southeastern Greyhound Lines of Lexington, Kentucky. In approving the transfer of said certificates to The Greyhound Corpora tion, the Commission authorized T he Greyhound Corporation to continue its operations under the trade name Southeastern Greyhound Lines Division of T he Greyhound C orporation" . Also as a condition to the approval of the transfer of said certificates the Commission required elimination of all duplicate certificates. In one route six certifi cates and a portion of two other certificates were merged into one certificate; in another route nine certificates and a portion of two other certificates were merged into one certificate, reducing the total num ber of certificates from 32 to 15. T h e Commission also authorized T he Greyhound Corporation to operate as a self-insurer under the same conditions as it had authorized Southeastern G reyhound Lines to operate as a selfinsurer.

R E C IP R O C IT Y
T he Joint Reciprocal Agreement between the ten Southern States, as mentioned in the last report, was duly executed and w ent into effect on June 15, 1950. This agree m ent has been adhered to by all the subscribing States and has greatly aided in the free flow of commerce between the States signatory thereto.

T R A N S P O R T A T IO N

General

Innum erable adjustm ents in rates, both upw ard and downward, were responsible for the record number of matters handled by our Transportation Rate D epartm ent in 1950. We inform ally disposed of 159 m atters involving transportation rates and serv ices, and our staff processed literally thousands of telephone and letter complaints dealing w ith services and freight tariff interpretation. Below are listed the m any com plex cases on which we delivered w ritten opinions.

Docket No.

D ate

9528-A

Jan. 23, 1950

9573-A

Jan. 30, 1950

9572-A

Feb. 27, 1950

1-R

Feb. 20, 1950

Subject
Application of Railway Express Agency for increases in com modity rates
Application of Ga. Railroad to cancel commodity rates on clay and shale from Belair to Campania
Com plaint against failure of Railway Express Agency to provide pick-up and delivery service at W arner Robins
Determ ination of reasonable rates on road building m ate rial

Disposition G ranted with excep
tions
Clay rate cancelled Shale rate pre scribed
Service required for 90 day trial period
Rate scale prescrib ed

172

9508- A) 9509- A) M arch 20, 1950

4-

R M arch 20, 1950

5-

R M arch 20, 1950

9525-A

Ju n e 7, 1950

17-R

July 27, 1950

16-R

July 27, 1950

15-R

July 27, 1950

N on-D ocket Aug. 7, 1950

1st Supt. 9508- A) Aug. 7, 1950 9509- A)

Determ ination of reasonable rail and motor carrier rates on petroleum products in bulk
Application of Railway Express Agency for restrictive pack ing requirements for wet storage batteries
Application of rail carriers for increased minimum charges
Application of Atlantic Coast Line Railroad to discontinue daily operation of passenger trains numbers 57 and 58 be tween Savannah and Ga.Ala. State Line and to pro vide in lieu thereof certain alternate service
Complaint against discontinu ance of Cumslo as flag stop for Central of Georgia pas senger trains Nos. 77 and 78
Application of C entral of Geor gia Railway to discontinue Sunday operation of passen ger trains numbers 77 and 78 between M acon and Athens
Application of C entral of Geor gia Railway to discontinue Sunday operation of mixed trains numbers 70-73 and 7271 between M acon and Porterdale
Application of Georgia & Flor ida Railroad to discontinue operation of line between Stevens Crossing and States boro (Statesboro N orthern Ry.) and between Sapps Still and Relee

R ate scales prescrib ed G ran ted G ranted Denied
Restoration of flag stop required G ranted
G ranted
G ran ted

Application of rail and motor carriers to reduce rates on petroleum products in bulk from Savannah to certain points in northeastern Geor gia

G ranted

173

3rd Supt. 9392-A
3rd Supt. 8873-A
9574-A 1st Supt. 9574-A
11-R
10-R
4th Supt. 8873-A 2nd Supt. 9574-A 14-R
22-R
12-R

Aug. 23, 1950 Aug. 23, 1950 Aug. 23, 1950 Sept. 7, 1950 Sept. 7, 1950
Sept. 7, 1950
Sept. 29, 1950 O ct. 3, 1950
O ct. 18, 1950 O ct. 18, 1950

Application of rail carriers to make perm anent previous au thority to close depots on Saturdays

G ranted

Application of rail carriers for elimination of exceptions to general increase granted No vem ber 12, 1948
Application of rail carriers for increases in freight rates (Ex Parte 168)

Denied
G ranted with excep tions

Application of general increase order of August 23, 1950 to specific rates on road aggre gates
Application of rail carriers to establish reduced rates w ith increased minimum weight on iron and steel articles to alternate with rates already in effect
Application of rail carriers to establish charge of $10.00 per car for weighing cars handled in terminal switch ing service at A tlanta

O rder clarified-- no increase on said commodities
Dismissed-- rates al ready published and no authority needed
Charge of $7.00 ap proved

Increases in rail rates on scrap iron
Application of Seaboard Air Line Railroad Company to discontinue passenger trains num bers 17 and 18 between C uthbert and Ga.-Fla. State Line
Application of Railway Express Agency for increased 1st and 2nd class rates (E x P arte 169)
Application of St. M arys R ail road to discontinue passenger trains num bers 1, 2, 4, 5, 7, 8, 11 and 12 betw een Kingsland and St. Marys

Rates made subject to full increases
G ranted subject to conditions
G ran ted
G ran ted

174

1st Supt. 14-R

O ct. 18, 1950

2nd Supt. 14-R

Nov. 13, 1950

20-R

Nov. 30, 1950

23-R

Nov. 30, 1950

9514-A

Jan. 16, 1950

11-M

Feb. 27, 1950

95089509-

A) M arch 20, 1950 A)

25-M

M arch 20, 1950

26-M

M arch 20, 1950

27-M
61-M 61-M

M arch 20, 1950
July 24, 1950 Aug. 7, 1950

Petition for rehearing and re consideration of discontinu ance of Seaboard Air Line Railroad passenger t r a i n s numbers 17 and 18
Petition for rehearing and re consideration of discontinu ance of Seaboard Air Line Railroad passenger t r a i n s numbers 17 and 18
Application of Tennessee, Ala bama and Georgia Railway to discontinue p a s s e n g e r trains numbers 1 and 2 be tween Ga.-Tenn. State Line and Ga.-Ala. State Line
Application of Central of Geor gia Railway to discontinue passenger trains numbers 1 and 2 between Griffin and Ga.-Tenn. State Line
Application of Smoky M oun tain Stages, Inc. for increas ed minimum fares
Complaint against schedules of Southeastern G r e y h o u n d Lines
Investigation into rail and mo tor carrier rates on petroleum products
A pplication of Williams Coach Lines for increased fares
Application of Neel Gap Bus Line Inc., Service Bus Line, Inc. and Service Coach Line, Inc. for increased minimum fares
Application of I n t e r u r b a n Transit Lines, Inc. for in creased fares
Application of motor carriers for increased rates
Application of motor carriers for modification of tariff rule holding interstate rates as maxima

Petition assigned for oral argument
Upon oral argument, denied
G ranted subject to approval of Ala bam a Commission
G ranted subject to provision for ex press
G ran ted
Com plaint satisfied -- case dismissed
Rates prescribed
G ran ted G ran ted
G ran ted
Granted in part G ran ted

175

8323-A) 8340-A)
151-M

Sept. 12, 1950 Sept. 29, 1950

Non-Docket Oct. 18, 1950

174-M

Nov. 3, 1950

197-M

Dec. 22, 1950

61-M

Dec. 22, 1950

196-M

Dec. 22, 1950

Application of Central of Georgia M otor Transport Company for operating authority

G ranted w ith conditions

Application of Trion Coach Lines, Inc. for increased commuter fares

G ranted

Application of Georgia-Florida Coaches, Inc. for tem porary suspension of service between Douglas and Valdosta

G ranted w ith conditions

Application of Suburban Coach Co. Inc. for increased com m uter fares on its A tlantaFairburn Line

G ran ted

Application of Suburban Coach Co. Inc. for increased school fares

G ranted

Application of motor carriers for elimination or extension of expiration date in connec tion with certain rates
Application of motor carriers for establishment of reduced rates on pulpwood dairy products containers

Extension granted Rates prescribed

Bus Fares

T he 2 cent per mile level of intercity bus fares authorized early in 1949 prevailed throughout 1950 and very few changes were made in norm al intercity fares. Smoky M ountain Stages, Inc. however was authorized to increase its m inim um fare from 15 cents to 20 cents and to make certain changes in commuter fares. This carrier has been experiencing serious financial difficulty and had proposed to eliminate certain comm uter schedules in the Cornelia-Clarkesville area because of the low revenue earned (approxim ately 9 cents per mile as contrasted with average operating expenses of 28 cents p er m ile). A fter objections were m ade to the C om pany's proposal to elim inate service it filed an application to increase its minimum commuter fares from 13% cents to 15 cents and to raise the m inim um one-way fare as stated above. This applica tion was approved and subsequently Williams Coach Line, which operates some service competitive to Smoky M ountain Stages, Inc., sought and obtained authority to make the same revision. O ther companies which were authorized to make m oderate in creases in local or com m uter fares included In teru rb an T ran sit Lines, Inc., B. & L. Bus Service, Suburban Coach Company, Inc., and Trion Coach Lines.

Some of the companies found it necessary to curtail services in areas where traffic had substantially declined because of private automobile competition. Southeastern Greyhound Lines, Inc. was authorized to increase its rates for handling newspapers after objections by certain publishers were w ithdraw n and Southern Stages, Inc. was perm itted a small increase in rates for the transportation of express.

176

T ruck Rates
O n M arch 1, 1950 the regular route p ro p erty carriers applied for au th o rity to increase th eir less th an truckload class rates by about 8 Yz p er cent. T h e rates sought were those which had been made effective on interstate traffic in the South in February and involved a dual scale system w ith one scale of rates applying to articles moving on classification ratings and another scale about 10 per cent higher applying to articles moving on exceptions ratings. T he m otor carriers also sought authority to increase the minimum charge per shipment to $1.50. Evidence offered at the public hearing showed conclusively th at new wage contracts and increased state gasoline taxes had produced additional operating expenses and necessitated some relief in the form of higher rates. It did not appear either necessary or desirable that the complex inter state system of rates be made effective in Georgia. Therefore, the Commission prescribed a single scale of first class rates in lieu of tw o scales requested by th e carriers. In order to remove certain inequities which had developed because of the various percentage increases it was found advisable to go back to the basic scale and add 46 per cent to the first class rates, thereafter relating all subordinate classes properly to first class. This resulted in an increase of about V /i per cent over the rates in effect prior to this order. T he request to raise the m inim um charge was denied as the Commission failed to find a need for the substantial additional revenue which would have been produced by this change.
D uring the year some progress was made toward simplifying the existing motor carrier tariffs and the Commission concluded to postpone until D ecem ber 31, 1951 the effective date of its outstanding order requiring the filing of a new system of rates.
Late in the year a paper products plant was erected near Athens for the m anufac ture of pulpboard dairy products containers. This m anufacturer requested the motor carriers to establish a basis of rates from Athens to points in Georgia competitive with the interstate rates applying to G eorgia from com peting producing points. As sub m itted to the Commission the motor carriers' proposal was to establish one scale of rates for single line haul and a higher scale for joint line hauls. This would have severely penalized the Athens shipper as he could reach only a limited area of Georgia on the single line basis. I t was also con trary to the policy of the Commission as evidenced by its decisions affecting railroad rates on road aggregates. On December 22, 1949 the Commission ordered the carriers to establish both single and joint line rates on the basis of column 32/a or somewhat higher than the basis which they had suggested for single line hauls and lower than the suggested joint line basis. A nother im portant rate adjustm ent involved truckload rates on bulk petroleum products. Both m otor carrier and railroad rates were the subject of this investigation and it is dis cussed elsewhere in this report.
Rail Passenger Service
D uring February and M arch the Commission conducted hearings on an application of Atlantic Coast Line Railroad Company for authority to discontinue daily operation of its passenger trains 57 and 58 between Savannah and the Alabama-Georgia State Line (en route to Montgomery, A labam a). The railroad proposed to establish, in lieu of daily service, alternate schedules w ith the trains departing Savannah on Mondays, Wednesdays and Fridays and returning to Savannah on Tuesdays, Thursdays and Sat urdays. U n d er this plan service would be reduced from 14 trips p er week to 6 trips per week. This case differed from other recent applications to curtail passenger service
177

heard by the Commission in th at the two trains concerned earned substantial revenues am ounting to almost $400,000 during the year 1948. O f this total nearly one-half was earned from the transportation of passengers. The average total revenue per train m ile was 137.6 cents. T h e railroad claim ed an operating loss of $181,000, based on its 1948 experience, but when more recent figures were supplied reflecting the use of Diesel motive pow er the loss appeared to be substantially less th an one-half th a t claimed. The total revenues earned were ample to pay all directly charged operating expenses and the applicant did not fully substantiate the large indirect charges it made. Accordingly, on June 7 the Commission entered an order denying the application.
On November 22, 1950 the A tlantic Coast Line Railroad Company petitioned the Commission de novo to eliminate entirely the service provided by its trains 57 and 58. A t the end of the year this application was still pending before the Commission and no action had been taken thereon.
On July 3 Seaboard A ir Line R ailroad Company requested authority to discon tinue operation of its passenger trains 17 and 18 betw een C u th b ert and the GeorgiaFlorida State Line (en route to Tallahassee, Florida). Following hearings held in August the Commission on O ctober 3 granted the application subject to the provision th at the railroad establish substituted m otor service for the transportation of mail and ex press. The record in this case showed that annual revenues for the two trains totaled $26,804 as com pared to $69,418 expenses. T h e Commission's staff m ade a calculation, based on certain assumptions, including substantially increased revenues from all sources and the elimination of all expense items questioned by the protestants. Even under the assumed conditions the loss would have exceeded $19,000.
O n O ctober 10 certain of the protestants petitioned the Commission for rehearing. T he Commission heard oral argum ent on the petition and thereafter denied it on Novem ber 30.
T he St. Marys Railroad Company for a num ber of years has operated four daily passenger trains over its 11 miles of road between K ingsland and St. M arys and in addition has operated two trains in each direction daily, except Sunday. By applica tion dated June 30, 1950 this railroad asked au th o rity to discontinue two of the tr ains. A fter the case was assigned for hearing an amended application was filed in which authority was sought to discontinue operation of all four of the daily trains. The com pany proposed to continue operating the two round trips daily except Sunday, and to handle first class m ail by truck.
A t a hearing held in O ctober the Commission found th at during the year 1949 the total revenue earned by all four trains totaled only $5,276, while the expense of wages and fuel alone was $15,559. O nly $2,370 of the revenue was earned from the transportation of passengers. U n d er the C om pany's proposal it would still handle mail and express shipments. T h e Commission approved the application on O ctober 18.
O n M ay 16 Tennessee, A labam a and G eorgia R ailw ay C om pany asked permission to discontinue its trains 1 and 2 operating through Georgia (en route from Chattanooga, Tennessee to Gadsden, A labam a). Inasmuch as the authorization of three States was required to perm it elimination of this 81 miles of passenger service we suggested to the Alabama and Tennessee Commissions th at a joint hearing be held in Chattanooga, which appeared to be the most easily accessible point for citizens residing along the line of railroad. Such a hearing was held on A ugust 14 b u t the A labam a Commission was
178

not represented. We dispatched a member of our staff to participate in the hearing. Subsequently the application was assigned for hearing in A tlanta on O ctober 26 and the record made in the joint hearing was introduced as evidence before us, and certain testimony of additional protestants was received. T he evidence showed that revenues equalled $19,454 and expenses $35,925, leaving a loss of $16,471. T h e application was approved November 30.
O n Septem ber 21 C entral of G eorgia R ailw ay C om pany sought permission to dis continue operation of its trains 1 and 2 between Griffin and the Georgia-Tennessee State Line (en route to Chattanooga, Tennessee). H earing was held on this application on O ctober 26 and the Commission issued an order on November 30, 1950 perm itting the company to eliminate this passenger train service provided it established adequate substitute express service. T he evidence showed th at expenses exceeded revenues by m ore than 300 p e r cent and th a t the one item of train crew wages was m ore th an $ 10,000 higher than the entire revenues earned. Elimination of the two trains should result in a saving to the railroad of about $130,000 per year.
Railway Express
For m any years Railway Express Agency, Inc. has m aintained so-called truck com petitive com m odity rates w hich are published in the form of a class rate structure. These rates had generally followed the level of truck rates until December, 1 9 46, when they were increased by 2 0 cents per 100 pounds. Since th at time truck rates had been in creased and were generally higher than the intrastate competitive express rates on higher class traffic, except for the very short hauls. T h e interstate tru ck competitive express rates had been increased, however, by amounts varying from 39 per cent to 4 5 per cent, and a t the beginning of 195 0 an application to make similar increases was pending before us. By order issued January 23 we authorized a 25 per cent increase in these rates instead of the approxim ately 4 2 per cent sought by the applicant. W e also perm itted the establishment of a minim um charge per shipment of $ 1 .2 5 in lieu of the m in im u m requested by the Express Agency of $ 1 .3 0 for the very short hauls and $ 1 .5 5 for longer hauls.
T he evidence in this case showed how the decline in express traffic varied almost directly with the increase in express rates.
O n M arch 17 the Express A gency requested permission to establish on intrastate traffic the 10 p er cent increase p erm itted by the In terstate Com m erce Commission in D ocket Ex P arte 169 by order issued M arch 6. This proposal w hich was applicable only to first and second class express traffic was prom pted by the labor agreem ent m ade during 1949 under which the 40-hour work week was established and the Express Agency's employees were granted a wage increase of 7 cents p er hour. T h e case was heard on O ctober 10 and according to the applicant's evidence the 7 cent p er h our wage increase added $205,283 expenses in Georgia, and it was estimated th at the 40 hour w ork week, effective Septem ber 1, 1949, would, on an annual basis, cost the appli cant $135,504. In previous cases involving express rates we had criticized the Agency's accounting m ethod as failing to recognize the expenses of transferring in G eorgia interstate shipments which both originated and term inated outside the state. Although the Agency had consistently denied that such expenses could have an im portant effect on its intrastate operations it finally made the necessary studies and showed in this case th at $719,251 of its Georgia expenses were properly chargeable to interstate traffic. After making this adjustm ent it appeared th at the operations of the Express Agency in
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G eorgia produced approxim ately the same financial results as its interstate operations throughout Southern territory. T he evidence also showed th a t there was the same need for higher rates in G eorgia as on in terstate traffic and therefore the Commission on O ctober 18 granted the application.
Rail Freight
Late in 1949 the railroads filed an application proposing to establish revised rates on pre-mixed road building materials 25 cents per ton higher than the interstate road aggregate rates. U nder this proposal the road building material rates would have been based on a single and jo in t line scale such as th a t disapproved by the Commission on road aggregates. The application was denied w ithout prejudice to the right of the carriers to establish rates made 25 cents per ton higher than the prescribed intrastate road aggregate rates. T he carriers failed to establish intrastate rates on this basis and when the interstate rates were made effective it resulted in higher rates on intrastate traffic than on interstate traffic. Therefore, the Commission on January 4 issued a rule nisi requiring the carriers to show cause why the Commission should not require the establish m ent of road building m aterial rates made 25 cents per ton higher than the intrastate merged scale of rates on road aggregates. The case came on for hearing on February 16 and after considering the record the Commission issued an o rd er on F ebruary 20 requiring the establishment of a scale reflecting rates 25 cents per ton higher than those applying on road aggregates between points in Georgia.
O u r last year's rep o rt briefly stated the developments leading up to an investigation which we initiated into both rail and motor carrier rates on liquid petroleum products in bulk. The m atter had been assigned for hearing in O ctober of 1949 but postponed several times at the request of the interested parties, partly because a similar investigation was pending before the Interstate Commerce Commission. We did not deem it advisable, however, to aw ait a decision by the Federal Commission and on F ebruary 1, 1950 began our hearings. We had the benefit of rather comprehensive studies showing both rail and m otor carrier costs. These were the same studies which were introduced in the I.C.C. investigation under Docket I&S 5710. A witness for one of the m ajor oil com panies also furnished the Commission w ith certain statistics showing the private truck ing costs incurred by his com pany. T h e issues in this case posed one of the most delicate rate problems to come before the Commission in m any years. Judged by its transportation characteristics petroleum should move at considerably higher rates than those proposed. However, because of actual and imminently potential private truck competition rates m ust be depressed if the common carriers are to participate in the traffic. Since the rates fixed must virtually be minimum reasonable rates the element of cost becomes of controlling im portance. T he evidence before us showed th at the m otor carriers unquestionably had the lowest cost for the short hauls and the railroads a lower cost for long hauls. For interm ediate distances the costs of the two agencies of transportation are almost the same. T he Commission by order issued M arch 20 there fore prescribed maxim um and m inim um rates which paralleled the cost lines of the m otor carriers and railroads and were sufficiently low to hold the traffic in competition with private trucking. Thus the rates prescribed were lower for the motor carriers on the short hauls, lower for the railroads on the long hauls and the same for both agen cies between 51 and 85 miles. Since the p rim ary com petition was private trucking th e prescribed rates were computed over highw ay distances and in instances where the shortest rail distance exceeded the highw ay distance by m ore th an 15 p er cent the rail carriers were not required to observe the resulting rates as maxima.
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Subsequently the Interstate Commerce Commission released its order in Docket I& S 5710 prescribing a scale of minimum rates only. Except for the extremely short hauls the interstate scale was substantially lower than even the rates proposed by the rail carriers. The railroads then filed rates applying between points in Georgia over interstate routes which were lower than the minimum rates we prescribed on M arch 20. We petitioned the Interstate Commerce Commission to suspend the rates which con flicted with our intrastate adjustm ent but our petition was denied. Thereafter we reopen ed the intrastate case for further hearing and on August 7, 1950 perm itted a reduction in rates from Port W entworth and Savannah to nine points. A proportionate reduction was perm itted for both railroads and m otor carriers. We denied, other requests for modification and by the end of the year it appeared that this revolutionary adjustm ent of petroleum rates was working in a satisfactory m anner. O ther Commissions and vari ous transportation agencies throu g h o u t the nation learned of this Commission's order and we supplied requests for literally hundreds of copies.
W hen the railroads requested relief from Freight Rule 23 governing the hours of depot service so th a t they could close agencies on Saturdays in compliance w ith a 40hour work week agreem ent w ith non-operating employees we concluded that the rule should be suspended only for a 12 m onths period. T h e suspension was due to expire on Septem ber 1. P rior to th a t tim e the Commission h ad an o pportunity to evaluate the experience of almost one year of five day per week railroad agency service. Based on this experience we issued an order'providing for the outright cancellation of the rule. I t appeared th at virtually every station was now closed in Georgia on Saturdays except for either abbreviated hours, or service on demand, and that generally the public had accustomed itself to the restricted hours and was satisfied therewith.
D uring almost the entire year 1949 there was pending before us an application for authority to increase all freight rates and charges by 6 per cent. This proposed increase corresponded to th at authorized by the Interstate Commerce Commission in Docket Ex Parte 168 by order issued December 29, 1948. We did not assign the appli cation for hearing at that time because during the first half of 1949 the Interstate Com merce Commission was conducting further hearings on the railroads' application for perm an en t increases of 15 p er cent in lieu of the 6 p er cent w hich had been authorized on a tem porary basis. O n August 2, 1949 the Federal Commission perm itted an increase of 10 p er cent, effective Septem ber 1, to supersede the 6 p er cent increase w hich had become effective Ja n u ary 11, 1949. Subsequently the carriers filed an application to m ake the 10 per cent increase effective on G eorgia in trastate traffic. This application also requested the Commission to eliminate the exceptions m ade in its previous orders so th a t the 20 per cent increase perm itted in D ocket 8451-A in 1947, and the 25 p er cent increase in Docket 8873-A granted during 1948 would apply on all commodities to the same extent as on interstate traffic.
W e heard this application on Jan u a ry 11, 1950 and issued an order on A ugust 23 authorizing the 10 per cent increase w ith certain exceptions. By an order issued th e same day we denied the carriers' petition to eliminate the exceptions made in our earlier orders perm itting general increases. T he record in this case showed that the carriers had again incurred s u b s ta n tia lly higher wage expenses as a result of the 40hour work week agreem ent and a 7 cents per hour wage increase to non-operating employees. In addition fuel expenses had risen considerably and traffic had fallen off sharply. D uring the first 10 m onths of 1949 the n et income of Southern R ailw ay Com pany was 50.7 per cent less th an for 1948 and in the same period C entral of G eorgia
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Railway Company incurred a deficit of $489,000 compared w ith a net income of $793,000 during the first 10 m onths of 1948. I t was also shown th a t because of increasing private truck competition the railroads had made substantial reductions in the rates on m any commodities, including a number of the most im portant revenue producing commodities in Southern territory. In addition to these articles which the railroads voluntarily exempted from increase the Commission declined to authorize the higher rates on clay, shale, scrap iron, pulpwood, sugar, stone, peanuts, unm anufactured tobacco and naval stores. T he higher rates were m ade effective on Septem ber 15.
O n Septem ber 29, however, the Commission am ended its order so as to perm it the full increases on scrap iron, including the 25 per cent increase under Docket 8873-A, as well as the 10 per cent increase ju st authorized as to other commodities. This action was taken because Alabama intrastate rates were increased thus removing the discrimi nation against a Georgia steel mill.
Participation In Interstate R ate Cases
Evidence in the reopened investigation into the class rate case was originally due to be filed on December 30, 1950 but the due date was postponed first to February 28, 1951 and then to M arch 31, 1951. L ater, over our strenuous objections, the time was further extended until June 30 for evidence-in-chief and August 1 for rebuttal evidence. These postponements are typical of the type of delaying tactics w ith which we have had to contend since the class rate case was in itiated in 1939. W e filed a statem ent of evidence generally agreeing with the proposal of the Interstate Commerce Commission to revise the uniform class rate scale and we outlined certain m ethods w hich we thought would expedite the handling of the case. Subsequently the time for filing rebuttal evidence was extended until Septem ber 15. W e could no t object to this extension because the state commissions in the W est had requested it and we have throughout this case m aintained a close unity w ith other state commissions in the South and the West. The northern railroads proposed in lieu of the Interstate Commerce Commission's suggested scale th a t rates for shorter distances be m ade som ewhat lower and those for longer distances slightly higher. We took the position th at we were agreeable to a reduction in rates for short hauls or that considered by itself we would not oppose the rather moderate increase in the longer haul rates, but that in no event should both requests be granted. O ur evidence showed that if the proposal of the northern railroads were granted it would handicap Georgia manufacturers in reaching markets in Official territory.
O n A ugust 17 the In terstate Com m erce Commission instituted an investigation into the uniform freight classification which the railroads had virtually finished compil ing. We felt th at such an investigation would consume m uch time and would further delay the effectiveness of uniform class rates. W e supported a proposal of the rail roads in Southern territory th at the Commission merely issue instructions to the carriers to file a classification w ithin 120 days. T he Interstate Commerce Commission, however, denied this request and we then filed a statem ent of evidence in the classification investigation. Subsequently we found it necessary to file rebuttal statements which were due on December 1 and we also filed objections to certain evidence which was obviously offered for the purpose of confusing the issues and delaying the investigation.
In mid-December the Interstate Commerce Commission assigned the reopened investigation for oral argum ent. We firmly expressed our position that nothing should be perm itted to delay the case further. D uring the course of the argum ent some ques-
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tion arose as to the scope of the investigation and it was necessary that we file a supple m ental statem ent late in December. It appears that this case should now be ripe for final decision in 1951.
The railroads proposed to increase the estimated weight per basket of peaches, based on certain tests made over the past few years. We joined w ith the peach growers in questioning the adequacy of the tests and w hether they were representative of norm al conditions. If the higher weights were made effective it would increase charges on the average of $10.00 per car. A t our request the railroads postponed action until further tests could be made. T he railroads also proposed to p u t in effect more restrictive packing requirem ents on peaches. We objected to this plan and no action was taken on it during 1950.
We intervened in the com plaint case brought by certain shippers involving export rates on peanuts through the Port of Savannah. It developed, however, that this complaint was designed prim arily to obtain reparations on past shipments. In the meantime an adjustm ent had been made in the export rates and we had no requests from peanut growers or shellers to press action as to rates for the future. A proposed report was issued finding th a t the rates assessed in the past were not unreasonable but no final decision had been made in the case at the end of the year.
As we anticipated the In terstate Comm erce Commission on A ugust 17 instituted an investigation into transcontinental class rates. W e will follow this investigation closely as the W est Coast is an im p o rtan t m arket and source of supply for m any G eorgia companies.
UTILITY REGULATION
Electric Utilities
O n February 27, 1950 Georgia Power Com pany was authorized to issue and sell $15 million principal am ount of F irst M ortgage Bonds, and on July 13, 1950 the same Com pany was authorized to issue and sell 353,000 additional shares of common capital stock to T he Southern Company for a cash consideration of $6 million. These authori zations were necessary to provide capital funds for construction expenditures of th at Company.
Pursuant to an order issued by the Securities and Exchange Commission, G eorgia Power Com pany was directed to dispose of all of its transit systems, including the A tlanta transportation system. In June 23, 1950 Georgia Power Company filed a petition w ith the Commission seeking approval of the sale of its A tlanta transportation system and franchises to the newly organized A tlanta T ransit Company, and on July 18, 1950 this petition was granted subject to the g ranting of a ch arter by the Secretary o f State of Georgia to the A tlanta T ransit Company. The A tlanta transportation system was then sold as proposed, for a cash consideration of $1,338,000, together w ith the assumption by the Atlanta T ransit Company of all of the Georgia Power Company s outstanding obligations un d er certain leases and conditional sales agreem ents relating to vehicles used in the A tlanta transportation system. There was no change in fares at the time of the sale of this property.
O n M ay 7, 1948 the Commission authorized certain increases in the rates of
G eorgia Power and L ight C om pany based prim arily upon j substantial increase in the
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cost of fuel used in the generation of electric power supplied to that Company. During the course of th a t proceeding, question was raised as to the fairness of the rate charged by Florida Power Corporation to its subsidiary, Georgia Power and Light Company, for the power requirements of the latter Company. The Commission filed a petition with the Federal Power Commission seeking an investigation of the rates charged for those pow er deliveries. As a result of said petition for investigation, a new con tract was entered into between the two companies resulting in a substantial reduction in the cost of pow er to the G eorgia com pany, effective Jan u a ry 1, 1950. As a result, the Commission issued a Rule Nisi on M arch 20, 1950 instituting an investigation into the rates of Georgia Power and Light Company which had been increased in 1948. After an extended hearing, an order was issued on November 30, 1950 to that company elim inating entirely the 10 p er cent surcharge on the residential and comm ercial rate schedules which had been imposed under the 1948 rate increase. This rate reduction reduced the cost of electric service to the residential and commercial consumers of Georgia Power and Light Company by $200,000 per annum.
Gas Utilities
T he South A tlantic Gas Com pany was authorized to issue and sell $3 million principal amount of First M ortgage Bonds to finance construction requirements of that Company. This authorization was granted on Decem ber 11, 1950 and the bonds were sold to three separate life insurance companies. T he proceeds were used to retire out standing bonds of the Company in the principal amount of $2,727,000 and to pay out standing notes of the Company held by banks.
Gas Light Company of Columbus requested authority to discontinue the m anu facture, distribution, and sale of m anufactured gas in Americus, Georgia, and this au thority was granted on M ay 30, 1950, after evidence was subm itted in the hearing that the Company had shown an operating deficit each year since 1941, the deficit being $16,641.52 for the year ending August 31, 1949, and $8,279.65 for the seven months period from Septem ber 1, 1949 through M arch 31, 1950. Furtherm ore, the C om pany presented evidence that all of the present gas consumers would have their appliances converted for the use of liquefied petroleum gas and that the expense of this conversion would be borne by the Gas Light Company of Columbus. Pursuant thereto, liquefied petroleum service through local dealers was substituted for the former m anufactured gas service rendered in Americus by the Gas Light Company of Columbus.
O n November 22, 1950 the Commission received a petition from the Gas Light Company of Columbus, and on November 29 a companion petition from the A tlanta Gas L ight C om pany relating to distribution of funds deposited in the U. S. C ircuit C o u rt of Appeals for the Fifth D istrict in the case of Interstate N atural Gas Company versus fed eral Power Commission et al, 10701. The deposit in the Court represented money collected under bond from increased rates of the Interstate Company, which rates were in litigation by the Federal Power Commission. The decree of the C ourt upheld the Federal Power Commission and ordered a refund of the excess rates collected during the period of the litigation. A portion of that refund was due Southern N atural Gas Com pany on its purchases from Interstate N atural Gas Company, and a portion of that received by Southern N atural Gas Company was due to be refunded A tlanta Gas Light Company and Gas Light Company of Columbus for ultim ate refund to gas consumers. It was calculated that the sum to be paid out to the consumers by A tlanta Gas Light Company was $336,231.16 and the sum to be paid to the customers of the Gas Light
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Company of Columbus was $24,479.60. T he companion petitions filed w ith this Commission proposed to refund the above amounts to the present residential customers only of the two companies on a prorata basis, which plan contem plated that no other customer of natural gas would receive any share in the fund and would have no right or any claim of any kind or character to the fund. O n November 30, 1950, the Commission approved the petitions of the Company and thereby effecting the total refund to residential natural gas consumers in Georgia in the am ount of $360,710.76.
The Transcontinental Gas Pipeline Corporation filed an application with the Fed eral Power Commission seeking authority to construct a natural gas pipe line from the State of Texas to the State of New York, passing through the State of Georgia. The original application contem plated no diversion of gas from the line for gas consumption in the State of Georgia. T he Commission intervened before the Federal Power Com mission at the hearing on this application in support of the granting thereof, provided the certificate was conditioned upon the provision of natural gas service to the Georgia Gas Company in Gainesville, Georgia, A tlanta Gas Light Company in Athens, and the proposed Newton County Gas Com pany in Covington and Conyers, Georgia. As a result of this intervention and those of other intervenors w ith the same interest, the certificate issued by the Federal Pow er Commission was so conditioned, and a supply of natural gas was allocated to those cities, as well as to other municipalities who had intervened.
The Atlanta Gas Light Company proceeded to construct a tap line to bring natural gas service into Athens and on August 4, 1950 filed w ith the Commission three new rate schedules for natural gas service in Athens. These schedules proposed a reduction in rates for gas service upon introduction of natural gas, in the am ount of $32,248, reflect ing the net operating expense savings to A tlanta Gas Light Company resulting from the purchase of natural gas in lieu of the supply of liquefied petroleum gas then furnished in Athens. O n August 23, the schedules were accepted by the Commission subject to com plaint and fu rth er order. O n Septem ber 19, com plaint was received from the C ity of Athens as to the level of proposed natural gas rates, and the Commission granted the petition of the City and assigned the m atter for public hearing. W hile the rates which were filed w ith the Commission represented a reduction in the cost of gas as compared to the former service provided, the proposed rates were substantially higher than rates for natural gas service rendered by A tlanta Gas Light Company in other cities, the principal reasons for the difference in the rates being that the cost of natural gas from the Transcontinental Pipe Line Company at Athens was substantially more than the cost of natural gas purchased by A tlanta Gas Light Company for distribution in other cities, and further th at time would be required to develop the m arket for natural gas in Athens to the extent that it had been developed in other cities over a period of years.
The Commission had, however, prescribed uniform rates for natural gas in other cities, irrespective of the results of operation in each individual community, the rates being fixed at a level which would produce a reasonable rate of return in the aggregate. Pursuing this policy, rates were established by the Commission on D ecember 15, 1950 for Athens substantially lower than suggested by the Company. T he rates prescribed were designed to yield some $32,000 per annum more than would result from the rates in effect in other natural gas towns of the Company, and th at am ount represented the higher cost of purchased gas, fixed charges on the cost of the tap line to serve Athens which was not required at other cities, and an amortization of customer appliance conversion cost in Athens. Although these rates were higher than other natural gas rates,
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they are some 20 per cent lower than those proposed by the Company and represented a reduction of approxim ately 36 per cent under the level of rates for gas service in Athens prior to the introduction of natural gas.

Telephone Utilities

D uring the year 1950 the Commission issued decisions on numerous applications from independent telephone companies requesting authority to increase rates, or au thorization to issue securities. T he following list shows the name of the applicant and the date the Commission decision was rendered in each of the 28 rate cases decided:

NAME OF COMPANY
Interstate Telephone Company Statesboro Telephone Company W alker County Telephone Co. Commerce Telephone Co. Consolidated Telephone Co. Alamo Telephone Company Chatsworth Telephone Company Georgia Continental Telephone Co. Plant Telephone Company Dalton Telephone Company Chickamauga Telephone Company Standard Telephone Company W alker County Telephone Co. Ringgold Telephone Company W arwick Telephone Company Plant Telephone Company Summerville Telephone Company Alma Telephone Company Leslie-DeSoto Telephone Co. Interstate Telephone Co. (Attapulgus) W estern Carolina Telephone Co. Seminole Telephone Co. Blakely Telephone Co. M utual Telephone Co. Blue Ridge Telephone Co. Cairo Telephone Co. Brantley Telephone Co. Thomaston Telephone Co. Douglas Telephone Co.

Date of Annual Revenue Increase

Order

Requested Granted

1/23/50

$20,805 $13,866

2 /6 /5 0

5,757

5,757

2 /6 /5 0

3,966

3,438

2 /6 /5 0

14,994

10,994

2 /6 /5 0

14,739

14,739

2/20/50

1,080

1,080

4 /6 /5 0

4,941

4,232

4/24/50

21,775

21,775

5/10/50

2,727

2,727

6/30/50

56,293 56,122

7/18/50

5,010

3,808

7 /1 8 /5 0

16,286

12,419

7/24/50

7,323

7,323

7/27/50

4,248

4,038

8/27/50

840

840

7 /2 7 /5 0

2,727

2,664

7 /2 7 /5 0

13,447

13,447

10/10/50

5,728

4,981

10/30/50

942

942

11/30/50

384

384

11/30/50

6,582

6,264

11/30/50

4,824

3,960

12/11/50

5,565

3,006

12/11/50

7,359

7,548

12/11/50

5,230

4,230

12/11/50

11,389

7,957

12/21/50

1,623

975

12/22/50

29,635

15,163

12/22/50

8,667

8,121

In the above cases the increased rates requested would have raised revenue of the above companies in the aggregate am ount of $284,881 per annum while the rates au thorized by the Commission provided only $242,815 per annum . In addition to these cases, the Commission issued decisions on 8 applications for authority to issue securities. These applications and the type of case are listed below:

NAME OF COMPANY Sikes Telephone Com pany

Date of
O rder 1/23/50

Type of
Security N o te

Amount $ 7,000

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Interstate Telephone Company Southeastern Telephone Go. Hinesville Telephone Go. W alker C ounty Telephone Go. Danielsville & Comer Tel. Co.
Thomaston Telephone Company South Georgia Telephone Co.

2/27/50 5/10/50 7/18/50 8/23/50 8 /2 3 /5 0
12/14/50 12/21/50

Bond Issue Bond Issue Loan Bond Issue Loan Stock Issue Bond Issue Loan

175,000 1,300,000
40,000 140,000 249,000 57,000 450,000 225,000

M any of the rate increases granted in 1950 were m ade effective only after con version to autom atic dial operation, the increases being necessary because of the higher investm ent and operating expenses associated w ith this im proved type of service. O ther increases authorized during the year were necessary as a result of increased tele phone operating costs, particularly labor costs including operators' wages. T here was no change in the rates of Southern Bell Tel. & Tel. Com pany in 1950.

T he 1950 Session of the G eneral Assembly of Georgia enacted a statute which was approved F ebruary 17, 1950 by the G overnor, w hich granted au th o rity to the Com mission to issue certificates of public convenience and necessity to telephone companies.

Pursuant to the authority granted by this Act, the Commission issued an order on M arch 31, 1950 transm itting a copy of a tentative draft of rules and regulations govern ing the issuance of certificates of public convenience and necessity to telephone companies and providing that any person m ight file a w ritten statem ent w ith the Commission giving reasons why the said rules and regulations should not become effective, and providing that after consideration of such objections, the said rules and regulations would become effective on M ay 1, 1950 unless otherwise ordered by the Commission. A copy of this order was served upon every telephone utility operating in the state of Georgia subject to the jurisdiction of the Commission.

O n M ay 2, 1950 the Commission issued another order reciting th at no comments or objections referring to the proposed rules and regulations had been received by the Commission and ordering th at the said rules be adopted by the Commission.

Telegraph Utilities

W estern U nion T elegraph C om pany on F ebruary 1, 1950 requested approval of revised tariff sheets providing a new schedule of rates for telegraph service rendered in Georgia. While the application represented a rate increase, the new rate structure was designed prim arily to eliminate geographical inequalities in the structure then exist ing and to provide a scientific and uniform schedule of rates based on distance. The rate p attern as proposed provides uniform ity of rates over equivalent distances both for intrastate and interstate service throughout the country. T he proposed rate structure was not designed to produce any m aterial change in the telegraph com pany's overall revenue from its message telegraph service, but due to wide variations in the then existing rates with respect to distance, the new rate structure would produce many changes, both up and down in the rates between specific points. A t the time die Telegraph Company had two rates in Georgia, one for intracity service and another for intercity service, regard less of distance, while the proposed schedule contained four m ileage blocks applicable w ithin the state and would make the state rates equal to the rates for interstate service and for service rendered in other states.
Based on the year 1949, the new schedule represented an increase of $87,213 of

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annual gross revenue from intrastate service in Georgia and would effect a reduction of $92,267 per annum to Georgia users for interstate service. T he establishment of the uniform schedule, therefore, actually represented an overall reduction of some $5,054 per annum to Georgia users for intrastate and interstate service combined. O n M arch 20, 1950 the Commission authorized the schedules subm itted by the Company and thereby established telegraph rates in Georgia on a uniform level w ith interstate rates, and rates in other states for this type of utility service.
Transit Utilities
O n Ju ly 18, 1950 Savannah T ran sit C om pany was authorized to revise a schedule of fares applicable on the Savannah-M ontgomery bus line under which zone fares were established and the route divided into four separate zones.
Georgia Power Company was required under an order of the Securities and Ex change Commission to dispose of its A tlanta transportation system and on July 18, 1950 the Commission granted the petition of th at company for approval of the sale of the system and franchises to A tlanta T ransit Company, at which time the Commission re viewed the terms of the purchase and the ability of the purchaser to provide adequate transportation service to the public if the same were consummated.
O n Ju ly 31, 1950 the newly formed A tlanta Transit Company was granted authority to borrow $1 m illion from the Citizens and Southern N ational Bank and T ru st C om pany of G eorgia and also to issue and sell $1 m illion p a r value of common capital stock. T h e proposed issuance of these securities was to obtain funds to be used to acquire the transportation facilities of Georgia Power Company in the municipalities of Atlanta, College Park, D ecatur, E ast Point and H apeville. As a result of this loan authorization the A tlanta T ransit Com pany acquired the A tlanta transit system from the Georgia Power Company.
Savannah T ransit Company on August 23, 1950 was authorized to change the zones on the T hunderbolt Bus Line, F ort W entw orth Bus Line and to change zones and fares of the Isle of H ope Bus Line.
O n Septem ber 14, 1950 Bibb T ran sit C om pany of M acon, G eorgia applied to the Commission requesting authority to increase token fares for local transportation service in M acon from the rate of 2 for 15# to 11 for $1.00. T h e application sought no change in the 10# cash fare, the 5# fare fo r school children and the 1# charge for transfers. A fter public hearing and careful investigation the Commission found th at the full increase in token fares was not justified and authorized in lieu of the token fare a t 11 for $1.00, a fare of 4 tokens for 35#, which was found to be adequate. T he increased fare was m ade necessary by reason of increased costs of operation-- principally increased wage payments. T he new fare became effective on O ctober 19, 1950.
Pursuant to an application of the Savannah T ransit Company, the Commission authorized a change in the token fares in Savannah, Georgia from 4 for 25# to 2 for 15# becoming effective on O ctober 30, 1950. T h ere was no change in the other fares of the Savannah T ransit Company. This fare was required prim arily because of in creased salaries and wages which the Company had found necessary to make.
O n O ctober 30, 1950 Augusta Coach Company was granted authority to increase its token fares from 2 for 15# to 5 for 45# after hearing and investigation on an applica tion by th at Com pany for this fare change. Prior to the hearing the Com pany had
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sought a straig h t 10# cash fare w ith no provision for the sale of tokens; however, during the course of the hearing, counsel for the Company amended its petition and substituted a token rate of 5 for 45# in addition to the straight 10# fare. T he increase was found necessary due to substantial increased costs of operation.
O n D ecem ber 15, 1950 Columbus T ran sp o rtatio n C om pany, Colum bus, G eorgia was granted authority to increase token fares from 2 for 15# to 4 for 35#. T h e C om pany requested a token fare of 11 tokens for $1.00 b u t after investigation and analysis, the Commission concluded that the lower fare of 4 tokens for 35# would produce an adequate rate of return on the investment of the Columbus Transportation Company.

W ESTERN & ATLANTIC RAILROAD

T he Annual R eport of the N. C. & St. L. Railway, Lessee of the state-owned West ern & A tlantic Railroad for the calendar year ended December 31, 1950 shows for net expenditures charged to the accounting classification, Additions and Betterments by classes of railroad p roperty th e following amounts:

Im proved track m aterial ... Bridges, trestles and culverts Y ard tracks and sidings ....... C hange of alignm ent ........... Public im provem ents ............ Signals and interlockers ....... Station and Office Buildings Shop and E ngine h o u se s .......

$116,217.23 1.072.33
25,114.10 60,239.25 . 15,774.24 . (25,988.93)
1.078.33 511.96

T o tal .................................................................... ................ ..........-..$194,018.51
The above net additions reported are after deduction for property retired and not replaced during the year in the aggregate am ount of $6,794.72, and the total net im provem ents to the W estern & A tlantic R ailroad from Ja n u a ry 1, 1944 th rough D ecem ber 31, 1950 is $3,137,679.88.
Respectfully submitted,
M att L. M cW horter, Chairman Perry T. K night, Vice Chairm an Allen Chappell, Commissioner W alter R. M cDonald, Commissioner James A. Perry, Commissioner

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