Report of Georgia public service commission. Eighty-fourth report including reproductions of eightieth through eighty-third report, 1952-1956

84th

UNIVERSITY OF GEORGIA
NOV 6 '57
LIBRARIES
REPORT^-- 1

of
GEORGIA PUBLIC SERVICE
COMMISSION

January 1, 1956 to January 1, 1957

(Included and reproduced in this volume are also 80th, 81st, 82nd, and 83rd Reports)

STATE OF G E O R G I A

Xo Sw

MARVIN GRIFFIN, GOVERNOR

I5 Co

I H
130 01 a e - ^ ,S
c -

GEORGIA PUBLIC SERVICE COMMISSION

244 Washington St., S. W .

ATLANTA 3, GA.

BOUND BY THE NATIONAL LIBRARY BINDERY CO. OF GA.

Matt L. McWhorter, Chairman Allen Chappell, Vice Chairman
W alter R. McDonald James A. Perry*
Crawford L. Pilcher Commissioners
A. O . Randall Secretary
*See Preface

STATE OF G EO RG IA MARVIN GRIFFIN, GOVERNOR
GEORGIA PUBLIC SERVICE COMMISSION
244 Washington St., S. W . ATLANTA 3, GA.
Matt L. McWhorter, Chairman Allen Chappell, Vice Chairman
Walter R. McDonald James A. Perry*
Crawford L. Pilcher Commissioners A. O . Randall Secretary
*See Preface

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TABLE OF CONTENTS

Page Preface ___ _______ .................. ....'.... .... ...... ............. . ........ ,, ... ._______ _ 3

Letter of Transmittal _________ _ _______ ___._______________ _____ 4

Motor Carrier Enforcement ____ ______ " ............... . .......

5

Motor Carrier Rules--Amendments ____ .. ______ r____ _____________ _ _ g

Reciprocity _______ ________ ...___ _______ _: ___ _ ;

. __7

Motor Carrier Certificate Decisions ...r_+ >___________ ______...___ , ,, g

Transportation--General ___. ....._______ .:_____ . .. __ _____________ 26

Formal Transportation Decisions ____ __________ . * __________ _

26'

Bus Fares and Services ______________ 1__ _______ ___ ___' ~ - - V 37

Truck Rates _________ ___ __ ......._.____ j._*___ r____________________ __ gg

Railway Express __ _____ ..._________ ..___ ......___......____. ......... ... 40

Rail Passenger Service --_____ ........_____.......___ ..._____ _____ 42

Rail Agency Service ___ ___________ ...___ ...._____ ...........__ >/'; ,, __,

45

Western And Atlantic R ailroad__ __......_.._.....__ .............__ ........_...

40

Interstate Rate C ases__1_______________ ________ __......__________ 43

80th Annual Report (1952) __ .....__ .._...__ ___...._..........._______

75

81st Annual Report (1953) -.1...................._....___.... .....' . .._____ jgg

82nd Annual Report (1954) r_____.....................___....______ _

137

83rd Annual Report (1955) ___ ,,___....__ _ 1. ___.............. ...... .

167

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/-
PREFACE This report covers the period January 1, 1956 to January 1, 1957, and is the 84th Report of the Georgia Public Service Commission, but reproduced within this volume are also the reports for the years 1952, 1953, 1954 and 1955, which are the 80th, 81st, 82nd and 83rd Reports, respectively, the publication of which has necessarily been delayed. Special mention is made of the death of Commissioner James A. Perry, who passed away on April 15, 1957, before the publication of this Report. Honorable Ben T. Wiggins, former Executive Secretary to Governor Marvin Griffin, was appointed a member of the Commission for the unexpired term of Commissioner Perry, and was sworn in on April 24, 1957. Commissioner Perry was a member of this Commission for over forty-five years, having been first elected to the Commission in 1911, and having served as Chairman of the Commission from 1927 to 1933. Recognition is given to the long and faithful service rendered the State of Georgia by Commissioner Perry as a citizen and as a member of the Commission.
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To His Excellency Governor Marvin Griffin:

84TH REPORT

As required by law, the Georgia Public Service Commission submits here with its 84th Annual Report of the regulatory activities for the year ending December 31, 1956.

There has been no change in the organization or personnel of the Commis sion since its last report, the Commission now being constituted as follows: Matt L. McWhorter, Chairman; Allen Chappel, Vice-Chairman; Walter R. Mc Donald, Commissioner; James A. Perry, Commissioner, and Crawford L. Pilcher, Commissioner.

The only change in the staff of the Commission was the resignation of Mr. N. Knowles Davis, Chief Engineer, and the employment of Mr. Alvin J. Rowe as Senior Utilities Auditor. Upon the resignation of Mr. Davis the Com mission issued the following statement:
"Losing Mr. Davis' service is a terrific blow to the Georgia Public Service Commission. He has been with the Commission about 22 years and 20 of those years he has been the Chief Engineer and Rate Specialist for the Commission. He is a graduate of Georgia Tech and for a few years after graduating was employed by Georgia Power Company and the Duke Interest in the Carolinas. During the war he was loaned by the Commission to the War Production Board and was stationed in Wash ington for almost two years. He returned to the Commission when his services were concluded in that post.

"Besides being an outstanding engineer he has become a proficient ac countant. For several years he served as a principal member of the Accounting Committee of the National Association of Railroad and Utilities Commissioners and has been Chairman of the Depreciation Committee of that Association for many years. He worked for several years as a member of the Staff Committee of the Association's Special Telephone Committee which made an extensive study of the Separations Procedures of the Bell System.

"While prosecuting rate cases before this Commission and representing the Commission before Federal agencies, Mr. Davis concluded sometime ago that a better job could be done if he became a lawyer. So in 1951 he begun study and late in the summer took Georgia Bar examination and was admitted to practice. During the last six or eight years Mr. Davis has deceived several proposals by private firms, and we might state here that each proposal represented a considerable increase in salary. As a m atter of fact the Commission feels that it has been ex tremely lucky to have kept him this long. He was well known throughout the country as an expert in utility accounting and regulation. In recent years the Commisison has received requests from several regulatory commissions to permit Mr. Davis to assist them in rate cases. In some instances the Commission has accommodated them and his work is highly praised.

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*`fie goes from us to one of the larger gas pipeline corporations at a substantial increase in compensation. We are certain he will be a success in his new connection and no doubt will be an officer of that company within a short period."
The position of Chief Engineer remains vacant, the duties of that office having been taken over for the present by the Senior Utilities Engineer, Mr. Robert B. Alford, and the Senior Utilities Auditor, Mr. Alvin J. Rowe, who have been ably assisted by Mr. J. Lansing Bodeker, Utilities Engineer, and Mr. Frank G. Heald, Utilities Auditor. The Staff of the Commission as presently constituted is as follows: A. O. Randall, Executive Secretary and Legal Aide; David O. Benson, Transportation Rates Expert; Robert B. Alford, Senior Utilities Engi neer; Alvin J. Rowe, Senior Utilities Auditor; J. Fred Parker, Senior Transpor tation Rates Specialist; J. Lansing Bodeker, Utilities Engineer; L. Thomas Doyal, Sr., Transportation Rates Specialist; Mrs. Mae A. Montgomery, Reporter, and Robt. N. Fellows, Certificate and Insurance Supervisor.
In June the Commission moved into its new and commodious offices pro vided in the New State Offices Building at 244 Washington Street, S.W., having temporarily occupied quarters in the Atlanta National Building at 50 Whitehall Street since November, 1953, while the new offices building was under con struction.
MOTOR CARRIER ENFORCEMENT
A brief resume of the history of Motor Carrier Enforcement was outlined in the last report. In view of the technical character of the motor carrier laws and the rules and regulations adopted thereunder it is necessary to have trained personnel to determine when violations occur. Since the law provides that a violation is a misdemeanor the Commission and its employees have been clothed with the power of arrest. As related in our last report every effort is made to obtain compliance through educational means, but it is frequently necessary to make arrests on the highways and in some instances to prosecute violators. Con stant surveillance by the Commission's Motor Carrier Inspectors, under the su pervision of A. O. Randall, Executive Secretary and Legal Aide, has resulted in fewer prosecutions each year. This result has prevented the necessity of adding to the inspection force. At present the Commission has only six inspectors em ployed whereas in 1937,. twenty years previously, it employed fourteen in spectors. One inspector, J. Roy Wilson, resigned during the year, and he has not been replaced. A majority of the remaining Inspectors will soon be retired. It will therefore become necessary in the near future to make replacements. In view of the thorough training required and the demonstrated value of long ex perience in this work it is contemplated that new employees in this field should not exceed forty years of age and should have sufficient education to acquire some understanding of the proper application of rates and reporting procedures. Furthermore, in view of the fact that one of the duties of an Inspector is to collect license and certificate fees, he must possess honesty, integrity, sobriety and a high degree of responsibility. The Commission takes this opportunity to commend the present inspection force for the diligence and reliability it has dis played throughout the years in enforcing the law requiring the payment of license fees and providing proper identification of equipment operated over the
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highways. During the year a total of $215,740.50 was collected by the Commis sion as follows:

Certificate fees @ $35.00 each and certificate transfer

fees @ $7.50 each._______Ti_ :--

l.:... ' ' ./ $ 2,850.50,,.

Regular license fees @ $25.00 each.......__________ _______ 187,450.00

Pick-up and delivery license fees @ $1.00 each__________ 1,709.00

Reciprocal registration fees @ $1.00 each___ JL_________.... 23,731.00

TOTAL--------; ..

$215,740.50

Reference to the previous reports will show that collections increased some
$20,000.00 over 1955 and approximately $100,000.00 over the year 1946, ten years previously.

AMENDMENTS TO MOTOR CARRIER RULES & REGULATIONS
Pursuant to adoption of an Act by the General Assembly at the 1956 Session amending the size and weight law, for the purpose of complying therewith, the Commission on April 12, 1956, amended Rule 11 of the General Motor Carrier Rules and Regulations to read as follows:
"RULE 11--Equipment--(a) No vehicle operated upon any public road or public highway of this State shall exceed a. total outside width, in cluding load thereon, of 96 inches, not including mirrors and accessories attached thereto; no vehicle unladen or with load shall exceed a height of 13 feet 6 inches; no vehicle shall exceed by more than 13% a length of 35 feet extreme overall dimensions, inclusive of front and rear bumpers except busses of motor common carriers which shall not ex ceed 40 feet extreme overall dimensions, inclusive of front and rear bumpers by more than 13%; combinations of vehicles shall consist of not more than two units, and, when so combined, shall not exceed a total length of 48 feet; for occasional movements of materials or objects of dimensions which exceed the limits herein provided, a special permit shall be required as now provided by law: Provided, however, that loads of poles, logs, lumber, structural steel, piping, and timber may exceed the length herein fixed without requiring special permit.
" (b) No wheel on any vehicle operated upon any public road or public highway of this State, equipped with high pressure, pneumatic, solid rubber or cushion tires shall carry a load which exceeds 8,000 pounds by more than 13%, or an axle load which exceeds 16,000 pounds by more than i3% ; no wheel equipped with low pressure pneumatic tires shall carry a load which exceeds 9,000 pounds by more than 13%, or any axle load which exceeds 18,000 pounds by more than 13%; an axle load shall be defined as the total load on all wheels whose centers may be included between two parallel transverse vertical planes 40 inches apart. If the driver of any vehicle can comply with the requirements of this section by shifting or equalizing the load on all wheels or axles and does so when requested by the proper authority said driver shall not be held to be operating in violation of this section.

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" (c) Provided, however, that the maximum total gross weight, including tolerance, shall not exceed 63,280 pounds. Provided however, that on roads constructed under the Rural Road Authority, this maximum total gross weight shall not exceed 56,000 pounds unless the vehicle is making a pickup or delivery on such roads.
"Provided further, that no officer or employee shall grant, authorize, or allow any length or weight in excess of the limitations herein provided, (except by special permit as defined in paragraph "a" above) in any manner whatsoever."
Pursuant to notice and a public hearing on a notice to adopt a general rule prescribing radial limits of operation for pick-up and delivery service in Com mercial Zones and Terminal Areas by motor carriers the Commission, on October 11, 1956, revoked an obsolete rule designated as Rule 12 of the General Motor Carrier Rules and adopted the following Rule 12:
"Motor Carriers of property operating under certificates Class "A" will be required to provide pick-up and delivery service in the commercial zones and terminal areas of all stations located on the routes described in said Class "A" Certificates; commercial zones and terminal areas are defined as being all points or places within a municipality, or be tween contiguous municipalities with connecting city limits, or within two highway miles of the limits of such municipality, or contiguous municipality or municipalities, or within two highway miles of the Post Office of any unincorporated community."
RECIPROCITY
The Commission in Executive Session on January 11, 1956, unanimously adopted the following report to the General Assembly:
"To The Members of the General Assembly:
Pursuant to the rights, powers and privileges granted under Section 68-1003 of the Code of Georgia of 1933, as amended by the Act of the General Assembly approved March 27, 1947, the Georgia Public Service Commission, has approved the execution of a Joint Reciprocal Agree ment; copy of which is attached hereto, bearing date of August 12, 1955, entitled "Eleven States Reciprocal Agreement" governing the oper ation of Interstate Motor Vehicles, by and between the states of Ala bama, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, North Carolina, Tennessee and Virginia. A copy of this Joint Agreement is submitted herewith as required by Section 68-1004 of the Code of Georgia of 1933 for such action as you may deem appropriate."
No action having been taken on said report by the General Assembly and the Agreement having been executed by the constituted authorities of the eleven states parties thereto, the Agreement became permanently effective as pro vided by law.
A meeting of the Eleven-State Reciprocal Committee was called by Chair man Walter R. McDonald in Atlanta, Georgia, December 14-15, 1956. The meet-
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ing was well attended by representatives of all the states parties to the Agree ment. There were also present represntatives of the states of Texas, Arkansas, Oklahoma, Missouri, Ohio, West Virginia and Maryland. By unanimous vote an invitation was extended to each of these states to become parties to the agree ment. Only two of these states, to-wit: West Virginia and Maryland expressed an interest in joining the agreement. A committee was appointed to confer with the proper authorities of these two states in an effort to work out the details to becoming signatories to the compact.
MOTOR CARRIER CERTIFICATE DECISIONS
The following is an abbreviated chronological list of Commission decisions made during the year in docketed and non-docketed motor carrier certificate cases:
JANUARY 12, 1956--
NON-DOCKET--Class "E" Certificate No. 1900 issued to R. R. Trice, dba M. & S. Transport Company, Macon, Ga.--cancelled on surrender.
JANUARY 13, 1956--
NON-DOCKET--Approved application of C. A. Pennington, dba Pennington Bus Line, Milledgeville, Georgia, for waiver of notice and hearing and transfer of Class "A" Certificates Nos. 1586, 1884 and 2990 from Erby C. Pennington.
DOCKET NO. 941-M--Approved application of 0. C. Carter, Baxley, Georgia, for Class "B" Certificate.
DOCKET NO. 944-M--Approved application of Tamiami Trail Tours, Inc. for transfer of all Class A Certificates from Modern Coach Corporation, Al bany, Georgia.
DOCKET NO. 945-M--Approved application of H. W. Butler, dba Butler Truck ing Co., Milledgeville, Georgia, for transfer of Class "B" Certificate No. 3080 from Roy Andrews, dba Roy Andrews Transfer, Sparta, Georgia.
DOCKET NO. 946-M--Approved application of Louis Patz, dba Harper Motor Lines, for Class "A" Certificate to transport property between Atlanta and Macon, Georgia, via State Highways Nos. 42 and 87, with closed doors at all intermediate points.
DOCKET NO. 947-M--Approved application of Gainesville Transit Company, Gainesville, Georgia, for Class "A" Certificate to transport passengers be tween Chicopee and New Holland, Georgia.
DOCKET NO. 948-M--Approved application of B. H. Arnold, Marietta, Georgia, for transfer of Class "B" Certificate no. 1069 from J. W. Youmans, Lexsy, Georgia.
DOCKET NO. 949-M--Approved application of E. W. Watkins, dba A. C. & D. Freight Line, Blue Ridge, Georgia, for transfer of Class "A" Certificate No. 1484 from Mrs. Willie E. Watkins.
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NON-DOCKET--Class "B" Certificate No. 2871 issued to O. C. Carter Baxley.. Georgia--cancelled on surrender.
JANUARY 31, 1956:
DOCKET NO. 943-M--Approved application of Petroleum Carrier Corporation for amendment of Class "B" Certificate No. 2758 to authorize the trans portation of Rosin Sizing.
DOCKET NO. 952-M--Approved application of Petroleum Carrier Corporation for Class "B" Certificate for the transportation of chlorinated camphene (toxaphene) in bulk, in tank trucks, from Brunswick. Georgia, to all points in Georgia.
DOCKET NO. 954-M--Approved application of Tamiami Trail Tours, Carolina Coach Company and Virginia Stage Lines to acquire the capital stock, con trol and management of Service Coach Lines and Service Bus Lines.
DOCKET NO. 951-M--Approved termination of leased Class "A" Certificate No. 1791 issued to Miller Bus Line, Barnesville, Georgia, and reissue of said certificate to Southeastern Motor Lines, Inc., Carrollton, Georgia.
NON-DOCKET--Class "A" Certificate No. 2907 issued to Cooper Bus Line, Ru pert, Georgia--cancelled on surrender.
NON-DOCKET--Approved reinstatement of Class "B" Certificate No. 1945 issued to J. T. Cochran, Atlanta, Georgia.
NON-DOCKET--Approved application of Northern Freight Lines, Inc. for waiver of notice and hearing and transfer of Class "A" Certificate No. 3051 from Dahlonega Freight Lines.
NON-DOCKET--Approved application of H. & J. Williams Lumber Company, Nashville, Georgia, for amendment of Class "E" Certificate No. 2980 to substitute the Ruberoid Company for Dixie Asphalt Products Corporation.
NON-DOCKET--Approved reinstatement of the following certificates: Class "B" Certificate No. 2380 issued to I. D. Peters Transfer, Tifton, Ga. Class "B" Certificate No. 2512 issued to Preston Joiner Ttuck Line, Dublin, Ga. Class "B" Certificate No. 2403 issued to Claude McQuinn Van Service, Coljumbus, Ga.
FEBRUARY 8, 1956:
DOCKET NO. 937-M--Denied application of Eastwood Hardware & Builders Supply, Inc., Decatur, Georgia for Class "E" Certificate.
DOCKET NO. 953-M--Approved application of DeVane Trucking, Ellaville, Geor gia for Class "B" Certificate.
NON-DOCKET--Amended Class "A" Certificate No. 1313 issued to South eastern Motor Lines, Inc.--cancelled upon publication of notice as directed.
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FEBRUARY 23, 1956:
DOCKET NO. 955-M--Approved application of Harper Motor Lines, Elberton, Ga. for Class "A" Certificate to transport property between Atlanta and Hawkinsville, Ga. via State Highways Nos. 3, 7 and 11, with closed doors at all intermediate points.
DOCKET NO. 946-M--Approved amendment if class "A" Certificate No. 3097 issued to Harper Motor Lines, Inc., to authorize operations over State High ways os. 3, 7, 18 and 19, in lieu of State Highways Nos. 42 and 87.
DOCKET NO. 956-M--Approved application of Lewis Waldrop, dba Canton Bus Service, Canton, Ga. for transfer of Class "A" Certificate No. 2506 from Willie L. Smith.
DOCKET NO. 957-M--Approved application of Lastinger Brothers, Pearson, Georgia for Class "B" Certificate.
NON-DOCKET--Class "A" Certificate No. 2791 issued to M. C. Echols, Cumming, Ga.--cancelled on surrender.
NON-DOCKET--Class "A" Certificates Nos. 45 and 1627 issued to Northeast Alabama Bus Company--cancelled on surrender.
FEBRUARY 28, 1956:
DOCKET NO. 961-M--Approved cancellation of Class "A" Certificate No. 1464 issued to Modern Coach Corporation and denied application for suspension.
FEBRUARY 29, 1956:
DOCKET NO. 938-M--Approved application of Jack Jordan, Inc., Dalton, Geor gia, for amendment of Class "B" Certificate No. 3063.
DOCKET NO. 937-M--Denied application of Eastwood Hardware & Builders Supply, Inc., Decatur, Ga., for Class "E" Certificate.
DOCKET NO. 960-M--Approved application of Harper Motor Lines, Elberton, Ga. for Class "A" Certificate to operate between Macon and Alma, Georgia.
MARCH 6, 1956:
DOCKET NO. 957-M--Reconsidered application of Lastinger Brothers, Pearson, Georgia approved February 23, 1956 by extending radius of operation.
NON-DOCKET--Class "B" Certificate No. 3004 issued to Jones Trucking Com pany, Jackson, Ga.--cancelled on surrender.
MARCH 12, 1956:
NON-DOCKET--Class "B" Certificate No. 3010 issued to Ben T. Banks, Jr., Forsyth, Georgia--cancelled on surrender.
NON-DOCKET--Class "B" Certificate No. 3023 issued to Walker Hauling Com pany, Atlanta, Georgia amended.
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MARCH 20, 1956:
DOCKET NO. 938-M--Approved amendment of Class "B" Certificate No. 3063 issued to Jack Jordan, Inc., Dalton, Ga.
DOCKET NO. 958-M--Application of Northern Freight Lines, Inc., Gainesville, Ga. for transfer of Class "A" Certificate No. 3051 from Dahlonega Freight Line, approved January 31, 1956--Denied petition of Atlanta Motor Lines for reconsideration.
DOCKET NO. 965-M--Approved application of Masonry Sales and Service, Inc., Atlanta, Ga., for transfer of Class "E" Certificate No. 2957 from Holmes & McCrary, Atlanta, Ga.
DOCKET NO. 966-M--Approved application of Guy M. Word Transfer & Storage Company, LaGrange, Ga. for transfer of Class "B" Certificate No. 248 from Bassett Transfer Company.
NON-DOCKET--Approved amendment of Class "B" Certificate No. 3082 issued to Maxwell's, Inc., Lexington, Georgia.
MARCH 28, 1956:
DOCKET NO. 928-M--Dismissed for want of prosecution application of Whitney Transfer Company, Moultrie, Georgia for Class "B" Certificate.
DOCKET NO. 964-M--Approved amendment of Class "B" Certificate No. 2740 issued to J. N. Zellner & Son Transfer Co., East Point, Ga.
DOCKET NO. 970-M--Approved application of Dixie Hauling Company, Atlanta, Georgia for Class "B" Certificate--Cancelled Class "E" Certificate No. 3018 issued Dixie Hauling Company.
DOCKET NO. 972-M----- Approved application of Georgia Highway Express, Inc., Atlanta, Ga. for Class "A" Certificate to operate via State Highway No. 87 between Junction of 87 & 42 and Macon, Georgia, and via State Highways 148 and 18 to Forsyth; with closed doors.
DOCKET NO. 973-M--Approved application of J. A. Fox, Dalton, Georgia for transfer of Class "A" Certificate No. 2652 from Barnie Gray, dba Gray Bus Line.
NON-DOCKET--Approved application of Ingram Bus Line, Tallassee, Alabama, for additional six months extension of time in which to resume operations under Class "A" Certificates Nos. 18 and 1697.
NON-DOCKET--Cancelled Class "A" Certificates Nos. 1204 and 1278 issued to Southern Stages, Inc., Macon, Georgia, on publication of notice and surrender.
APRIL 12, 1956:
DOCKET NO. 971-M--Approved application of H. M. Grantham, Sr., Jesup, Georgia, for Class "B" Certificate.
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DOCKET NO. 974-M--Dismissed Rule Nisi issued against J. M. Jackson Trans fer, Macon, Ga., for changing base of operation from Winder to Macon, Ga. without authority.
DOCKET NO. 978--Approved application of Weems R. McIntosh, dba BowdonLaGrange Bus Line, Bowdon, Ga., for transfer of Class "A" Certificates Nos. 2596 and 2669 from N. F. Striplin, Roopville, Georgia.
DOCKET NO. 979-M--Approved application of K. L. Kendrick, Metter, Ga., for transfer of Class "B" Certificate No. 2954 from Russell Holland, Metter, Georgia.
NON-DOCKET--Cancelled Class "A" Certificate No. 2317 issued to DahlonegaAtlanta Bus Line on surrender.
NON-DOCKET--Approved amendment of Class "A" Certificate No. 2573 issued to Metropolitan Transit System, Inc., correcting route description.
DOCKET NO. 969-M--Denied motion of Southeastern Greyhound Lines to dis miss application of Atlantic Stages, Inc., for certificate to operate between Barnesville and Griffin, Georgia.

APRIL 18, 1956:
DOCKET NO. 957-M--Approved application of Lastinger Brothers, Pearson, Georgia, for thirty days extension of time to complete qualifications for is suance of Class "B" Certificate.
NON-DOCKET--Approved reinstatement of Class "A" Certificate No. 2659 is sued to H. L. Russell, Thomaston, Ga.
NON-DOCKET--Approved reinstatement of Class "B" Certificate No. 2599 is sued to Capus Burke, Millen, Georgia.

APRIL 24, 1956:

DOCKET NO. 977-M--Denied application of V. E. Toole Transfer, Millen, Geor gia for Class "B" Certificate.

DOCKET NO. 982-M--Denied application of Georgia Trucking Company, Lexsy, Ga., for transfer of Class "B" Certificate No. 1069 from J. W. Youmans.

DOCKET NO. 983-M--Approved application of Franklin Beasley, Metter, Ga., for Class "B" Certificate.

DOCKET NO. 985-M--Denied application of Harper Motor Lines, Elberton, Ga.,

for Class "A" Certificate to operate between Warner Robins and Albany,

Georgia.

*

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,

DOCKET NO. 986-M--Approved application of Georgia Highway Express for
Class A ' Certificate to operate between Warnpr Robins, Georgia and Turner Air Force Base near Albany, Georgia.

NON-DOCKET--Reconsidered action of February 8, 1956 approving application of Atlantic Stages, Inc., for transfer of Class "A" Certificate 2481 from Southeastern Motor Lines and assigned said application for hearing.

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MAY 2, 1956:
NON-DOCKET--Approved application of Interurban Transit Lines, Inc., for waiver of notice and hearing and transfer of Class "A" Certificate No. 2547 from Camp Gordon Service, Augusta, Ga. Also approved amendment of said certificate.
NON-DOCKET--Cancelled Class "A" Certificate No. 2805 issued to Dixie & Yel low Cab Company, Augusta, Ga., on surrender.
DOCKET NO. 970-M--Denied petition of Superior Trucking Company for re consideration of issuance of Class "B" Certificate No. 3104 to Dixie Hauling Co., Atlanta, Ga.
MAY 8, 1956:
DOCKET NO. 980-M--Dismissed for want of prosecution application of Peachland Coaches, Griffin, Georgia, for Class "A" Certificate to transport pas sengers.
DOCKET NO. 984-M--Dismissed for want of prosecution application of Anderson Bus Line, Jasper, Georgia, for Class "A" Certificate to transport passen gers.
DOCKET NO. 988-M--Denied application of Dance Freight Lines, Inc., for amendment of Class "A" Certificate No. 1095 by extending the Commerce, Georgia terminus to Ila, Georgia.
DOCKET NO. 993-M--Approved application of R. F. Green House Moving, Ocilla, Ga., for Class "B" Certificate.
DOCKET NO. 996-M---Approved application of Thomson-Augusta Coaches, Thomson, Georgia for Class "A" Certificate to transport passengers between Thomson and Augusta, Georgia.
DOCKET NO. 998-M--Approved application of Mrs. Frances C. Jones, dba Dahlonega-Atlanta Bus Line for Class "A" Certificate to operate between Dahlonega and Gainesville, Georgia, via Murrayville.
NON-DOCKET--Approved application of Mrs. Frances C. Jones, dba DahlonegaAtlanta Bus Line, for waiver of notice and hearing and transfer of Class "A" Certificates Nos. 926, 1726 and 2684 from Estate of Fred Jones.
MAY 23, 1956:
DOCKET NO. 1000-M--Approved application of Veterans Transfer Service, Athens, Ga., for reinstatement of Class "B" Certificate No. 3444. Denied application to amend said certificate.
DOCKET NO. 1001-M--In Re: Rules nisi against the following carriers for fail ure to license equipment or failure to operate: B. H. Hawkins, Canton, Ga., dismissed; Carroll Hawkins, Canton, Georgia, dismissed; G. B. Pollard, Ap pling, Georgia, suspended twelve months; J. W. Tumlin, Tennille, Georgia, cancelled; Ingram Bus Line, Tallassee, Alabama, cancelled.
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DOCKET NO. 1007-M--Approved application of Smith's Transfer, Statesboro, Georgia, for Class "B" Certificate.
NON-DOCKET'--Cancelled Class "A" Certificates Nos. 2899 and 2343 issued to Atlantic Stages, Inc. on publication of notice and surrender.
DOCKET NO. 1009-M--Approved application of Georgia Highway Express, Inc., Atlanta, Ga., for lease and transfer of Class "A" Certificates Nos. 2830, 2460 and 1097 from Empire State Express, Inc., Columbus, Ga.
NON-DOCKET--Cancelled Class "A" Certificates Nos. 2899 and 2343 issued to Atlantic Stages, Inc., on publication of notice and surrender.
NON-DOCKET--Approved application of Adams Cartage Company, Macon, Georgia, for amendment of Class "E" Certificate No. 2929 eliminating a contract customer.
DOCKET NO. 986-M--Approved application of W. B. Aldrich, Metter, Georgia, for extension of time until August 1, 1956 to complete qualifications for issuance of Class "B" Certificate.
NON-DOCKET--Approved application of Metropolitan Transit System, Inc., for amendment of route descriptions in Class "A" Certificates Nos. 2936 and 3050.
MAY 28, 1956:
DOCKET NO. 989-M--Denied application of Brown Transport Corp. for amend ment of Class "A" Certificates Nos. 931 and 1110 by eliminating the closed door provisions therein.
DOCKET NO. 999-M--Denied application of Joe E. Blair, Thomaston, Georgia for Class "A" Certificate to transport passengers between Thomaston and Warner Robins. Georgia.
DOCKET NO. 968-M--Dismissed Rule Nisi against Benton Bros, Drayage & Storage Co.
DOCKET NO. 976-M---Cancelled Class "E " Certificae No. 930 issued to Benton Brothers Drayage & Storage Co. for cause.
DOCKET NO. 994-M--Approved application of Benton Brothers Drayage & Storage Co. for transfer of Class "B" Certificate No. 1134 authorizing transportation of household goods from Benton Rapid Express, Savannah, Ga.
NON-DOCKET--Approved application of Benton Rapid Express, Inc. for amend ment of Class "B" Certificate No. 2018 to eliminate therefrom authority to transport household goods.
DOCKET NO. 995-M--Approved application of Manufacturer's Transport, Sa vannah, Georgia for amendment of Class "E" Certificate No. 983 by sub stituting The Pure Oil Company in lieu of Mente & Company as a contract customer.
14

JUNE 1, 1956:
NON-DOCKET--Approved reinstatement of following certificates: Class "B" Certificate No. 2222 issued to Hendley Transfer, Millen, Ga.; Class "B" Cer tificate No. 1543 issued to Robert Burke, Millen, Ga.; Class "B" Certificate No. 2602 issued to Hoss Heavy Haulers, Laurel, Miss.
DOCKET NO. 920-M--Denied application of Phoenix Oil Co., Augusta, Ga., for Class "E" Certificate.
DOCKET NO. 967-M--Denied application of Allied Van Lines for transfer of Class "B" Certificate No. 359 from Livingston Storage & Transfer Co., Co lumbus, Georgia.
JUNE 6, 1956:
NON-DOCKET--Approved reinstatement of Class "B" Certificate No. 202 issued to Sweat Transfer Company, Waycross, Georgia.
DOCKET NO. 1041-M--Approved issuance of Rule Nisi against All Class "B" Certificate holders where the certificate authorizes the transportation of "Property" between all points in Georgia, over no fixed route, so as to substitute the words "commodities as provided under Rule 8" in lieu of the word "property."
JUNE 14, 1956:
DOCKET NO. 990-M--Approved withdrawal of application of Chas. C. Gay Trucking Co., Savannah, Georgia, for amendment of Class "B" Certificate No. 1360.
DOCKET NO. 1006-M--Approved application of Southeastern Stages, Inc. for Glass "A" Certificate to transport passengers between Millen, Georgia and Junctions Highways 30 and 2, via Highways 7 and 30.
DOCKET NO. 1008-M--Approved transfer of Class "B" Certificate No. 1363 from C. A. Pennington to Pennington Trucking Co., Milledgeville, Ga.
DOCKET NO. 1011-M--Approved withdrawal of application by Walter H. Roun tree, Swainsboro, Ga., for amendment of Class "B" Certificate No. 2972.
DOCKET NO. 1022-M--Approved application of Mrs. Christine S. Rountree, Swainsboro, Ga., for transfer of Class "E" Certificate No. 722 and for amendment of said certificate by eliminating two contract customers there from.
DOCKET NO. 1012-M--Approved application of Sugar Transport, Inc., Savannah, Georgia, for Class "E" Certificate to transport liquid sugar, in tank trucks, for account of Sugar Refinery Co.
DOCKET NO. 1014-M--Approved application of Hugh Bannister, Coolidge, Georgia, for Class "E" Certificate to transport livestock for account of Armour & Co.
DOCKET NO. 1016-M--Approved application of Martha G. Arnold, Whitesburg, Ga., for Class "B" Certificate.
15

DOCKET NO. 1017-M--Approved application of Rogers Truck Line, Savannah, Ga., for Class "A" Certificate to operate between Claxton and Collins, Georgia over Highways 129 and 23, and between Cobbtown and Lyons, Geor gia, over highway 52.
DOCKET NO. 1019-M--Approved application of Jones Moving Co., Alma, Geor gia, for Class "B" Certificate.
DOCKET NO. 1021-M--Approved application of Robert L. Harrell, Tifton, Geor gia for Class "B" Certificate.
DOCKET NO. 1025-M--Approved application of Willis House Moving, Tifton, Georgia for Class "B" Certificate.
DOCKET NO. 1026-M--Approved application of Latex Carriers, Inc., Savannah, Ga., for Class "B" Certificate.
NON-DOCKET--Approved amendment of Class "B" Certificate No. 122 issued to Dalton Trucking Co. to change name of owner from Mrs. Ruby H. McCutchen to Mrs. J. Burns Roach.
NON-DOCKET--Approved reinstatement of Class "B" Certificate No. 670 issued to R. & S. Motor Lines, Waynesboro, Georgia.
JUNE 25, 1956:
NON-DOCKET--Approved application of Chas. W. Brega and Addie Louise Brega for amendment of Class "A" Certificates Nos. 2258 and 2580 to change the trade name from "Camp Gordon Service" to "Fort Gordon Bus Company."
NON-DOCKET--Approved application of Barnie Price Transfer Company, Swainsboro, Georgia for suspension of Class "B" Certificate No. 1190 for 12 months.
JUNE 28, 1956:
DOCKET NO. 1013-M--Approved application of Great Southern Trucking Co. for Class "A" Certificate to operate between Atlanta and Tucker, Ga.
DOCKET NO. 1015-M--Approved application of Georgia Highway Express, Inc. for Class "A" Certificate to operate between Atlanta and Tucker, Ga.
DOCKET NO. 1024-M--Approved withdrawal of application of Cecil L. Ingram, Ball Ground, Georgia, for amendment of Class "B" Certificate No. 2777.
DOCKET NO. 1032-M--Approved application of Great Southern Trucking Co. for lease and transfer of Class "A" Certificates Nos. 7, 86, 910, 1306 and 2526 and Class "B" Certificate No. 539 from Moffett Transit Lines, Macon, Georgia.
DOCKET NO. 1033-M--Approved application of H. E. Newton, Waynesboro, Georgia, for Class "B" Certificate.
DOCKET NO. 1035-M--Approved application of Wilkes & Scarboro, Swainsboro, Georgia for Class "B" Certificate.
16

DOCKET NO. 1036-M--Approved application of Arrow Transfer & Storage Co., for transfer of Class "B" Certificate No. 1714 from Dixie Transfer, Rome, Georgia.
DOCKET NO. 1037-M--Approved application of James E. Thomas Transfer, Madison, Georgia for Class "B" Certificate.

JUNE 29, 1956:
NON-DOCKET--Approved application of Perry Bus Line, Perry, Georgia, for waiver of notice and hearing and transfer of Class "A" Certificate No. 2959 from Cordele Bus Line, Cordele, Ga.

JULY 11, 1956:

%

DOCKET NO. 1034-M--Approved application of Giles Produce Co., Douglas,

Ga. for Class "B" Certificate.

DOCKET NO. 1038-M--Approved application of Chancey Bros. Truck Line, Alma, Georgia, for amendment of Class "B" Certificate No. 2844.

DOCKET NO. 1040-M--Approved application of R. W. Johnson for transfer of capital stock, control and management of Atlanta-Asheville Motor Express, Inc., Atlanta, Ga. from B. M. Self, E. G. Brock and T. J. Camarata.

DOCKET NO. 1043-M--Approved application of Gus. J. Evans, Jr., Cochran, Georgia, for Class "B" Certificate.

DOCKET NO. 1044-M--Approved application of Farmers & Builders Supply, Fayetteville, Georgia for Class "B" Certificate.

DOCKET NO. 1045-M--Approved application of R. C. A. Truck Line, Rome, Ga. for Class "A" Certificate to operate between Atlanta and Tucker, Georgia.

DOCKET NO. 1046-M--Approved application of Brown Transport Corp., Waynes boro, Ga. for amendment of Class "A" Certificate No. 860 to operate be tween Atlanta and Tucker, Georgia.
DOCKET NO. 1047-M--Approved application of Benton Rapid Express, Sa vannah, Ga. for Class "A" Certificate to operate between Atlanta and Tuck er, Ga.
DOCKET NO. 1048-M--Approved application of Chancey Truck Line, Inc., Alma, Georgia for transfer of Class "B" Certificate No. 2844 from Harold L. Chancey and John R. Chancey, dba Chancey Bros. Truck Line.
DOCKET NO. 1049-M--Approved application of W. T. Hayes Trucking Co., Au gusta, Ga. for Class "E" Certificate.
DOCKET NO. 1041-M--Approved amendment of the following Class "B" Cer tificates. by substituting the words "commodities as provided under Rule 8" in lieu of the word "property" :
Class "B" Certificate No. 136 issued to Atlauta-Macon Motor Express, Inc., Jackson, Georgia.

17

Class "B" Certificate No. 1223 issued to Continental Carriers, Inc., Atlanta, Ga. Class "B" Certificate No. 1425 issued to J. C. Cook, dba Cook Transfer Co.,
Savannah, Ga. Class "B" Certificate No. 1315 issued to Hi-Way Transport, Inc., Savannah, Ga. Class "B" Certificate No. 411 issued to Georgia Highway Express, Inc., At
lanta, Ga. Class "B" Certificate No. 1256 issued to W. C. Hattaway, Griffin, Ga. Class "B" Certificate No. 134 issued to Marietta Transfer, Marieta, Ga. Class "B" Certificate No. 1322 issued to Mertz, Inc., Tennille, Ga. Class "B" Certificate No. 539 issued to Moffett Transit Lines, Macon, Ga. Class "B" Certificate No. 1270 issued to Roy Patton, Tifton, Ga. Class B Certificate No. 1060 issued to J. B. Upchurch Transfer Company, At
lanta, Ga. Class "B" Certificate No. 1069 issued to J. W. Youmans, Lexsy, Ga. Class "B" Certificate No. 1314 issued to Vann Transfer & Storage Co., Thom-
asville, Ga. Class B" Certificate No. 1454 issued to T. U. White, Hartwell, Ga. Class "B" Certificate No. 813 issued to John C. Wilson, Millen, Ga. Class "B" Certificate No. 193 issued to Wimberly Transfer Co., Valdosta, Ga.
NON-DOCKET--Approved application of J. W. Youmans, Lexsy, Ga. for amend ment of Class "B" Certificate No. 1069 to authorize use of the trade name "Georgia Trucking Company."
DOCKET NOS. 1013-M; 1015-M; 1046-M; 1045-M and 1047-M--assigned for oral argument petitions of Dance Freight Lines, Inc. and White Truck Lines, Inc. for reconsideration of the granting of certificates to operate between At lanta and Tucker, Ga. in said Dockets.
JULY 17, 1956:
NON-DOCKET--Approved application of Shippers Express, Inc., for waiver of notice and hearing and transfer of Class "B" Certificate No. 1060 from J. B. Upchurch Transfer Company.
JULY 18, 1956:
DOCKET NO. 1050-M--Approved application of Benton Rapid Express, Inc for lease of Class "A" Certificates Nos. 2798, 2715, 1028 and 1764 from Empire State Express, Inc.
JULY 19, 1956:
DOCKET NO. 997-M--Approved application of Dahlonega-Atlanta Bus Line for Class "A" Certificate to operate between Dawsonville and Gainesville, Georgia, and for amendment of Class "A" Certificate No. 3117 to permit alternate route operations between Dahlonega and Gainesville, Ga.
18

AUGUST 9, 1956:
DOCKET NO. 1041-M--Approved amendment of Class "B" Certificate No. 1131 issued to Homer Jones Transfer Company by substituting the words "com modities as provided under Rule 8" in lieu of the word "property .
NON-DOCKET--Approved application of Maxwell's, Inc. for reinstatement of Class "B" Certificate Noi 3082.
DOCKET NO. 1048-M--Approved application of Chancey Truck Line, Inc. for extension of 30 days in which to complete qualification for txansfer of Class "B" Certificate No. 2844.
AUGUST 21, 1956:
DOCKET NO. 1056-M--Approved* application of Leroy Hamrick, Cochran, Ga., for Class "B" Certificate.
AUGUST 23, 1956:
DOCKET NO. 1039-M--Approved application of Pike Transfer Co., Newnan, Ga. for amendment of Class "A" Certificate No. 216 to authorize service to Scottdale, Ga.
DOCKET NO. 1050-M--Approved application of Benton Rapid Express, Sa vannah, Ga. for transfer of Class "A" Certificates Nos. 2798, 2715, 1028 and 1764 from Empire State Express, Inc.
DOCKET NO. 1051-M--Dismissed for want of prosecution application of Scar borough Transfer, Elberton, Ga. for Class "B" Certificate.
DOCKET NO. 1052-M--Approved application of Atlanta-Macon Motor Express, Inc., Jackson, Ga. for Class "A" Certificate to operate via highway 87 be tween Jackson and Macon, and via highways 148 and 87 between Forsyth and Junction of 148 and 87.
DOCKET NO. 1053-M--Approved application of Perkins Freight Line, Atlanta, Ga. for Class "A" Certificate to operate between Atlanta and Tucker, Ga.
DOCKET NO. 1054-M--Approved application of J. L. Sutherland Transfer, Rome, Ga. for Class "B" Certificate.
DOCKET NO. 1055-M--Approved application of Hearin Tank Lines, Inc., Baton Rouge, La. for transfer of Class "B" Certificate No. 3013 from Liquid Car riers, Inc., Bay Minette, Alabama.
DOCKET NO. 1058-M--Approved application of H. & S. Transfer Co., Inc., Au gusta, Ga. for transfer of Class "B" Certificate No. 2934 from The Jamin Company.
DOCKET NO. 1059-M--Approved application of Dixie Ohio Express, Inc., Akron, Ohio for Class "A" Certificate to operate between Atlanta and Tucker, Ga.
DOCKET NO. 1062-M---Approved application of N. L. Wingate Trucking Co., Albany, Ga. for Class "E" Certificate to transport newspapers for account of The Herald Publishing Co., Albany, Ga.
19

DOCKET NO. 1062-M--Approved application of Thomson-Augusta Coaches, Thomson, Georgia, for transfer of Class "A" Certificate No. 1045 from Augusta-Interurban Bus Line, Inc.
DOCKET NO. 1064-M--Approved application of Butler-Johnson Furniture Mov ing & Storage Co., Albany, Ga., for Class "B" Certificate.
DOCKET NO. 1065-M--Approved application of Bibb Transit Company, Macon, Ga. for amendment of Class "A" Certificate No. 3041 by eliminating the closed door provision therein.
DOCKET NO. 1066-M--Approved application of Max Mitchell Transfer, Cartersville, Ga. for Class "B" Certificate.
DOCKET NO. 1041-M--Approved amendment of the following Class "B" Cer tificates by substituting the words "commodities as provided under Rule 8" in lieu of the word "property" :
Class B Certificate No. 2018 issued to Benton Rapid Express, Savannah, Ga. Class "B" Certificate No. 1335 issued to Brown's Transfer, Marietta, Ga. Class "B" Certificate No. 1480 issued to Bemis Davis, Macon, Ga. Class B Certificate No. 1402 issued to Leon Powell, Wrightsville, Ga. Class "B" Certificate No. 1391 issued to Rountree Transfer, Twin City, Ga. Class "B" Certificate No. 1424 issued to F. & S. Moving & Storage Co., Mariet
ta, Ga. Class "B" Certificate No. 671 issued to Washburn Storage Co., Macon, Ga. Class "B" Certificate No. 1344 issued to The Trading Post, Macon, Ga. Class "B" Certificate No. 211 issued to Macon Transfer Co., Macon, Ga. Class "B" Certificate No. 991 issued to Peacock Transfer Co., Waycross, Ga. Class "B" Certificate No. 1418 issued to Coastal Transport & Trading Co. Sa
vannah, Ga.
DOCKET NO. 1041-M--Approved waiver of Rule 91 relating to supersedeas and deferred action on petitions of Georgia Highway Express and Great Southern Trucking Company for reconsideration of amendment of their re spective Class "B" Certificates in this docket pending final disposition of all Rules Nisi issued under this docket.
NON-DOCKET--Approved application of Central of Georgia Motor Transport Company, Savannah, Ga. for amendment of Class "A" Certificate No. 2878 so that the alternate route will read between Macon and Tennille, Georgia instead of Macon and Milledgeville, Georgia.
AUGUST 28, 1956:
DOCKET NO. 1051-M--Approved reconsideration and reassignment for hearing application of R. L. Scarborough Transfer, Elberton, Ga., for Class "B" Certificate.
DOCKET NO. 1064-M--Approved reconsideration and revision of decision grantting Class "B" Certificate to Johnson Furniture Moving & Storage Co Al bany, Ga.
20

DOCKET NO. 1041-M--Approved further amendment of Class "B" Certificate No. 1360 issued to Gay Trucking Co., Savannah, Georgia.
NON-DOCKET--Cancelled Class "A" Certificate No. 1871 issued to Suburban Transit Lines, Macon, Ga. on publication of notice and surrender.
SEPTEMBER 6, 1956:
NON-DOCKET--Approved extension of time until Nov. 15, 1956, for completion of qualifications for issuance of Class "E" Certificate to N. L. Wingate Trucking, Albany, Georgia.
NON-DOCKET--Approved amendment of Class "B" Certificate No. 3066 issued to Candler Grain & Feed Co., Metter, Ga. by eliminating two of four partners.
DOCKET NO. 1041-M--Approved waiver of Rule 91 relating to supersedeas and deferred action on petitions of Gay Trucking Co., Savannah, Georgia; Bemis Davis, Macon, Ga.; Leon Powell, Wrightsville, Ga.; Brown's Transfer, Mari etta, Ga.; and Benton Rapid Express, Savannah, Ga., for reconsideration of their respective Class "B" Certificates in this Docket pending final disposi tion of all Rules Nisi issued under this Docket.
SEPTEMBER 11, 1956:
DOCKETS NOS. 969-M and 992-M--Approved application of Atlantic Stages, Inc., Macon, Ga. for Class "A" Certificates to transport passengers between Barnesville and Griffin, Georgia, and between Griffin and Atlanta, Georgia.
DOCKET NO. 991-M--Approved application of Atlantic Stages, Inc., Macon, Georgia, for transfer of Class "A" Certificates Nos. 1791 & 2481 from South eastern Motor Lines, Carrollton, Ga.
DOCKET NO. 1023-M--Denied petition of Southeastern Greyhound Lines for cancellation of that portion of Class "A" Certificate No. 2481 between Barnesville and Culloden, Georgia issued to Southeastern Motor Lines.
DOCKET NO. 1057-M--Approved application of R. E. Nobles, Ludowici, Ga., for Class "B" Certificate.
DOCKET NO. 1051-M--Dismissed application of R. L. Scarborough Transfer, Elberton, Ga. for Class "B" Certificate for lack of evidence.
DOCKETT NO. 1067-M--Approved application of R. C. A. Truck Lines, Inc., Rome, Ga., for amendment of Class "A" Certificate No. 1042 to authorize service to Lyerly, Ga. as an off-route point.
DOCKET NO. 1069-M--Approved application of Murphy & Carter Poultry Co., Gainesville, Ga. for Class "E" Certificate.
DOCKET NO. 1070-M--Dismissed for want of prosecution application of Jordan Ray Hattaway, Dublin, Ga. for Class "B" Certificate.
DOCKET NO. 1071-M--Approved application of Walker Hauling Co. for Class "B" Certificate.
21

DOCKET NO. 1072-M--Approved application of G. M. Boone, Winder, Ga., for Class "E" Certificate.
SEPTEMBER 25, 1956:
DOCKET NO. 1018-M--Approved application of Nash Transfer Co., Inc., At lanta, Ga. for transfer of Class "B" Certificate No. 2606 from Herman Nash.
DOCKET NO. 1079-M--Issued rule nisi against Jones Transportation, Inc., Swainsboro, Ga. to show cause why Class "B" Certificate No. 1457 should not be cancelled and revoked for failure to file revenue and expense reports and failure to furnish adequate service.
NON-DOCKET--Denied application of J. L. Sutherland Transfer, Rome, Ga. for reconsideration of issuance of Class "B" Certificate and refund of certificate fee.
NON-DOCKET--Approved application of Carroll Hawkins, Canton, Ga. for reinstatement of Class "B" Certificate No. 368.
SEPTEMBER 26, 1956:
DOCKET NOS. 969-M, 991-M, 992-M & 1023-M--Assigned for oral argument pe tition of Southeastern Greyhound Lines, Tamiami Trail Tours, Inc. and Cen tral of Georgia Railway Company for rehearing, reconsideration and oral argument in said dockets.
OCTOBER 2, 1956:
NON-DOCKET--Approved correction of Class "B" Certificates Nos. 3138, 2583 and 3023 issued to Walker Hauling Co., Inc.
OCTOBER 5, 1956:
NON-DOCKET--Approved application of Southeastern Motor Lines, Inc., Car rollton, Ga. for amendment of Class "A" Certificate No. 2986 to authorize an alternate route between Calhoun and Chattsworth, Georgia.
NON-DOCKET--Approved application of Georgia Highway Express for exten sion of termination date of Class "A" Certificate No. 3106 until April 24, 1957.
NON-DOCKET--Approved application of Interurban Transit Lines, Inc.,' dba Dixie Cab Company for waiver of notice and hearing and transfer of Class "A" Certificate,No. 2547 from Interurban Transit Lines, Inc.
OCTOBER 11, 1956:
DOCKET NO. 1081-M--Adopted Rule 12 prescribing radial limits of operation for pick-up and delivery service in Commercial Zones and terminal areas by motor carriers (Rule 12 is reproduced in this report).
DOCKET NO. 1094-M--Approved application of Plant C. Cullens, Camilla, Geor gia, for Class "B" Certificate.
22

OCTOBER 16, 1956:
DOCKET NOS. 969-M, 991-M, 992-M and 1023-M--Denied petitions of South eastern Greyhound Lines, Tamiami Trail Tours, Inc. and Central of Georgia Railway for reconsideration of the decisions in said dockets.
OCTOBER 25, 1956:
DOCKET NO. 1096-M--Approved withdrawal of application of Gay Trucking Co., Savannah, Ga., for amendment of Class "B" Certificate No.-1360.
DOCKET NO. 1098-M--Approved application of Bowdon-LaGrange Bus Line, Bowdon, Ga. for Class "A " Certificate to operate between Bowdon and LaGrange, Ga.
NON-DOCKET--Approved application of Shippers Express, Inc., Atlanta, Ga., for waiver of notice and hearing and transfer of Class "B" Certificate No. 2049 from East Georgia Express, Inc. and for merger of said certificate with Class "B" Certificate No. 1060.
NOVEMBER 1, 1956:
NON-DOCKET--Approved application of Atlantic Stages, Inc. for merger of Class "A" Certificates Nos. 1250 and 1397 to eliminate route duplications, and for amendment of Class "A" Certificate No. 2020 to correct route de scription.
NON-DOCKET--Approved cancellation of Class "A" Certificate No. 2323 and amendment of Class "A " Certificate No. 1575 eliminating a portion of the route on publication of prescribed notice by Atlantic Stages, Inc., the holder of said certificates.
NON-DOCKET--Approved application of Metropolitan Transit- System, ine., At lanta, Ga., for amendment of Class "A" Certificates Nos. 3027, 994 and 1881 to change route descriptions.
NOVEMBER 2, 1956:
NON-DOCKET--Approved application of Atlantic Stages, Inc., Macon, Ga., for amendment of Class "A" Certificate No. 1010, on publication of notice, to correct route description and eliminate a portion of the route.
NOVEMBER 14, 1956:
DOCKET NO. 1060-M--Approved application of Youngblood Truck Lines, Inc., Fletcher, N. C. for Class "A " Certificate to operate between Rabun Gap and Dahlonega, Georgia
DOCKET NO. 1061-M--Approved application of Atlanta-Asheville Motor Ex press, Inc., Atlanta, Ga. for Class "A" Certificate to operate between Ra-
* bun Gap and Dahlonega, Ga. DOCKET NO. 1073-M--Approved application of Northern Freight Lines, Inc.,
Gainesville, Ga. to operate between Clarkesville and Rabun Gap, Ga.

DOCKET NO. 1074-M--Approved application of Northern Freight Lines, Inc., Gainesville, Ga., for Class "A" Certificate to operate between Dahlonpga, and Cleveland, Georgia.
DOCKET NO. 1082-M--Approved application of Atlanta Motor Lines, Inc., At lanta, Ga. for Class "A" Certificate to operate between Rabun Gap and Dahlonega. Ga,
DOCKET NO. 1102-M--Approved application of Shippers Express, Inc., Atlanta, Ga. for amendment of Class "B" Certificate No. 1060 to authorize the trans portation of Asphalt and asphalt materials other than with tank vehicles.
DOCKET NO. 1103-M--Approved application of Dunn Truck and Tractor Co., LaGranglfc, Ga., for Class "E " Certificate to transport bottled soft drinks for two contract customers.
DOCKET NO. 1104-M--Approved application of Nash & Sons, Athens, Ga. for Class "E " Certificate to transport cotton for two contract customers.
DOCKET NO. 1105-M--Dismissed application of R. E. Avery, Covington, Ga., for Class "B" Certificate for want of prosecution.
DOCKET NO. 1106-M--Denied application of T. L. Womack, Oxford, Ga., for Class "B" Certificate.
NON-DOCKET--Approved application of Capus Burke, Millen, Ga., for reinstate ment of Class "B" Certificate No. 2599.
NOVEMBER 21, 1956:
NON-DOCKET--Cancelled Class "A" Certificate No. 1083 issued to Service Bus Lines, Inc., Dublin, Ga. on publication of notice as prescribed.
NON-DOCKET--Approved application of Metropolitan Transit Lines, Inc., At lanta, Ga. for amendment of Class "A" Certificate No. 3067 to change route description.
NOVEMBER 28, 1956:
DOCKET NO. 1105-M--Reconsidered action dismissing application of R. E. Avery, Covington, Ga. for Class `B" Certificate and approved said applica tion.
DOCKET NO. 1020-M--Dismissed application of Youngblood Truck Lines, Inc., Fletcher, N. C., .for Class "E" Certificate.
DOCKET NO. 1112-M--Approved application of Robert Venable, Marietta, Georgia, for Class "B" Certificate.
DOCKET NO. 1113-M--Approved application of A. M. Taylor Trucking Co., Moultrie, Georgia, for Class "B" Certificate.
DOCKET NO. 1115-M--Approved application of Millwood Eubanks, Camilla, Ga., for Class "B" Certificate.
24

DECEMBER 3, 1956:
DOCKET NO. 1079-M--Cancelled Class "B" Certificate No. 1457 issued to Jones Transportation, Inc., Swainsboro, Ga. for cause.
DECEMBER 11, 1956:
DOCKET NO. 1095-M--Approved amendment of Class "B" Certificate No. 2606 issued to Nash Transfer Co., Inc., Atlanta, Ga. to define the term "scrap metals and materials."
DOCKET NO. 1107-M--Approved application of Dudley Trucking Company, Inc., Atlanta, Ga. for Class "B" Certificate for the transportation of bakery products.
DOCKET NOS. 1108-M & 1109-M--Cancelled Class "E" Certificates Nos. 2820 and Limited Class "A" Certificates Nos. 1944, 2653, 2068 and 2429 issued to Dudley Trucking Company, Inc.
DOCKET NO. 1120-M--Approved application of Thomas A. Higdon, dba Thomasville Bus Lines, Thomasville, Ga., for lease of Class "A" Certificate No. 2696 from Thomasville Bus Lines, Inc.
DOCKET NO. 1121-M--Approved transfer of Class "A" Certificate No. 2260 from Horace E. Logue to B. W. Curray, dba T. & S. Transit Line, Tennille, Georgia.
DOCKET NO. 1122-M--Approved application of Watkins & Jennings, Swains boro, Georgia, for Class "B" Certificate to transport houses.
DOCKET NO. 1123-M--Approved application of Harper Motor Lines, a corpora tion, Elberton, Ga., for transfer of Class "A" Certificates Nos. 110, 1262, 1339, 1596, 2483, 2522, 2631, 2640, 2785, 2786, 3097, 3100 and 3101, and Class "B" Certificate No. 1629 from Louis Patz, dba Harper Motor Lines.
DECEMBER 12, 1956:
NON-DOCKET--Approved application of Murray Transfer, Toccoa, Ga., for an extension of six months time in which to begin operations under Class "B" Certificate No. 2459.
DOCKET NO. 1079-M--Denied application of Jones Transportation, Inc., Swains boro, Ga., for rehearing, reconsideration and oral argument on decision of Commission on December 3, 1956, cancelling Class "B" Certificate No. 1457.
DECEMBER 27, 1956:
NON-DOCKET--Approved application of Frank M. Mills, dba City Transit, Bainbridge, Ga., for waiver of notice and hearing and transfer of Class "A" Certificate No. 2498 from A. Barwick.
NON-DOCKET--Approved application of Franklin Bus Line, Ellaville, Ga. for waiver of notice and hearing and transfer of Class "A" Certificate No. 2453 from Dillard Bus Line.
25

NON-DOCKET--Approved application of Metropolitan Transit System, Inc., Atlanta, Ga., for amendment of Class "A" Certificate No. 3067 for change in route description.
TRANSPORTATION
General
Continuing increases in cost of operation and changes in service require ments of the regulated carriers resulted in the volume of work in our Transporta tion Rates Division remaining at a high level in 1956--the volume this year be ing more than 50% above that of 1952. Service complaints in particular continue to consume a substantial part of our staff's time. Nevertheless, in addition to the many complex adjustments listed below, almost all of which were made the subject of formal written opinions, we disposed informally of 329 transportation rate and service matters, many of which required lengthy studies and investiga tions in the field.

FORMAL CASES FOR YEAR 1956

Docket No. Supt. 9392-A
172-R
178-R
Supt. 241-R

Date

Subject

Disposition

1-12-56

Application of Georgia Railroad to Approved with

reduce Saturday agency service provision for

at Sparta to three hours.

reinstatment of

full service under

certain conditions

1-12-56 Application of Georgia Railroad Approved for authority to discontinue agency service at Stephens.

1-12-56 Application of Railway Express Approved Agency to close the express of fice at Stephens.

1-12-56

Application of Georgia Railroad to Approved make Scottdale the governing agency for Stone Mountain in lieu of Lithonia

26

3rd Supt. 169-R
Supt. 9392-A 1st Supt. 226-R
Supt. 227-R 961-M
2nd Supt. 200-R

1-31-56

Application of Sandersville Rail- Approved road Company for amendment to the original order in this docket to permit slight change in con templated route, to more ac curately define boundary lines of certain property , and to make certain substitutions in parties of interest.

1-8-56 Application of Tallulah Falls Rail- Approved way Company to close all its freight stations on Saturdays.

2-8-56

Application of certain protestants Authority to disfor reconsideration of the Com- continue agency mission's original order of De- service denied cember 7, 1955 in this docket au- with provision for thorizing the Georgia Southern test period and Florida Railway Company to discontinue agency service at Lake Park.

2-8-56 Application of Railway Express Denied with pro-

Agency to close the express of- vision for test

fice at Lake Park.

period

2-29-56

Application of Modern Coach Corp. Approved as to

to reduce service on its Colum- service between

bus-Ft. Gaines run to week-end Albany and

service only, to discontinue all Donalsonville and

service on its line between Al Albany and

bany and Donalsonville (via Georgetown

Newton and Colquitt) and to re subject to the

duce service on its Albany- provision that

Georgetown run to week-end this carrier's

service only.

Albany-Donal-

sonville certificate

be surrendered

f or cancellation ;

denied as to

Columbus-Ft.

Gaines run with

provision for a

three month test

period

2-29-56

Application of Southern Railway to Denied with pro

discontinue agency service at vision for reduc-

Alto.

tion of service to

2 hours per day.

27

Supt. 202-R 244-R 248- R 250-R 249- R 242- R 243- R
962-M
253- R
254- R
255- R

2-29-56 Application of Railway Express Denied with pro

Agency, Inc., to close the express vision for test

office at Alto.

period

2-29-56 Application of Southern Railway Denied Co. for authority to discontinue agency service at Scotland

2-29-56 Application of Railway Express Denied Agency, Inc. to close the express office at Scotland

2-29-56 Application of Southern Railway Approved
Co. to discontinue agency service at Baldwin

3-12-56 Application of Railway Express Withdrawn Agency, Inc. to close the express office at Screven

3-27-56

Application of Southern Railway Withdrawn Co. for authority to institute condemnation proceedings for the purpose of acquiring certain property in Atlanta

3-28-56

Application of Southeastern Grey Approved subject

hound Lines to discontinue cer to arrangements

tain commuter schedules be for interchange

tween Dalton and the Ga.-Tenn. of commuter

State Line (en route to Chatta tickets with

nooga, Tenn.)

Southeastern

Motor Lines

3-28-56

Application of Railway Express Approved Agency, Inc. for authority to close the express office at King ston

3-28-56

Application of Atlantic Coast Line Approved Railroad to discontinue Abba as stop for its passenger trains 101 and 102

3-28-56

Application of Southern Railway Denied Company for authority to dis
continue agency service at Mableton and to remove the depot building at that point

28

256-R 251-R
257-R 981-M 258-R 259-R Supt. 191-R
228-R

3-28-56

Application of Railway Express Denied Agency, Inc. for authority to close the express office at Mableton

4- 12-56

Application of Central of Georgia Approved Railway Company for authority to discontinue its passenger trains Nos. 7 and 8 between Al bany and the Georgia-Alabama State Line near Hilton (en route to Dothan, Alabama)

4-12-56

Application of Georgia Railroad for Approved authority to discontinue Barnett as a stop for its Passenger Train No. 3

4-12-56 Application of Brown Transport Approved Corp. to establish certain re duced rates on paper bags.

4-25-56

Application of Southern Railway Approved Company for authority to dis continue agency service at Flovilla and to remove the depot building at that point

4-25-56

Application of Railway Express Approved Agency, Inc. for authority to close the express office at Flovilla

5-8-56

Application of Southern Railway Increase in switchCompany for reconsideration of ing charges the Commission's order of May authorized 25, 1955 in this docket denying authority to increase switching charges at Brunswick because of failure of the Southern Railway to prosecute its case

5-8-56

Application of Southern Railway Denied Company for authority to dis continue operation of its pas senger trains Nos. 26 and 27 be tween Macon and Brunswick

245-R
260-R 4th Supt. 4024-A 9th Supt. 9058- A 9059- A 262-R 263-R 266-R 1002-M

5-8-56
5-8-56 6-1-56 6-6-56 6-6-56 6-15-56 6-15-56 6-2L56

Application of Atlantic Coast Line Authority granted

Railroad Company for authority to reduce hours

to discontinue agency service at of service at

Senoia

Senoia and Har

alson to 3*4

hours per day t

each so that one

agent might serve

both agencies,

with provision

for review if

railroad unable

to make

arrangements to

provide such

service at reason

able cost

Application of Railway Express Approved Agency, Inc. for authority to close the express office at Juli ette

Application of rail carriers for au Approved thority to increase rates on pulpwood by 6% and to increase minimum weight

Rail and motor carrier rates on Point-to-point liquid petroleum products in bulk rates prescribed from outlets on the Southeastern Pipe Line in Georgia to desti nations in Georgia
Application of Central of Georgia Approved Railway Company for authority to discontinue agency service at Kelly and to dismantle the depot structure at that point
Application of Southern Railway Denied Company for authority to dis continue agency service at Meansville and to remove the de pot building at that point
Application of RailVay Express Approved Agency, Inc. to close the express office at Meansville
Application of principal bus car Approved with riers for authority to increase exceptions one-way fares to a maximum of 2% A per mile

* [ Supt. 245-R
[
Supt. 246-R 1003-M Supt. 228-R
Supt. 251-R
267-R
1027-M

6-21-56

Notification by Atlantic Coast Line Discontinuance of Railroad Company that it could agency service at not arrange for the part time Senoia authoragency service provided in the ized Commission's order of May 8, 1956 in this docket and request for further consideration of such order

6-21-56 Reconsideration of application of Discontinuance of Railway Express Agency, Inc. to express office close the express office at Senoia authorized

6-25-56 Application of Augusta Coach Approved Company for increased fares

6-25-56

Motion of Southern Railway Com- Assigned for pany for reconsideration of the oral argument Commission's order of May 8, 1956 denying authority to dis continue operation of its pas senger trains 26 and 27 between Macon and Brunswick and seek ing oral argument on such mo tion.

6-25-56

Petition of City Commissioners of Denied Lynn Haven, Florida and City of Panama City, Florida for rehear ing and reconsideration of the Commission's order of April 12, 1956 authorizing the discontinu ance of Central of Georgia pas senger trains Nos. 7 and 8 be tween Albany, Georgia and the Georgia-Alabama State Line (en route to Dothan, Ala.)

6-25-56

Application of rail carriers for au- Approved thority to cancel all lettered and numbered class ratings (except those applicable on logs) pub lished in Georgia Intrastate Ex ceptions No. 7

7-3-56

Petition of certain riders for Schedule changed change in the Atlantic Grey- to leave Atlanta hound Corporation Atlanta-Law- at 6:45 P. M. renceville schedule from 7 p.m. to 6:30 p.m.

31

1010-M 269-R
1028-M (Sub 1)
1028-M (Sub 2)
1029-M

7-11-56 Application of principal bus lines Denied for increased bus express rates

7-11-56

Application of Atlanta and West Approved Point Railroad for authority to discontinue agency service at Palmetto

7-12-56

Application of Suddath of Savan- Denied nah, Inc. for authority to per form free all necessary acces sorial services in the movement of household goods where such household goods go into storage for a period of 18 months or
more

7-12-56

Application of Georgia Household Approved subject Goods Movers Association, Inc. to conditions for authority to revise certain provisions of the Commission's household goods tariff in connec tion with movements beyond city limits for distances of 20 miles or less

7-12-56 Application of Class "A" Motor Increase approved Carriers of Property for 10% to interstate level increase in less-truckload rates generally

1030-M
247-R
264- R 265- R

7-12-56

Application of Interurban Transit Increased fares

Lines, Inc. for certain increased approved; service

fares and reduced services

reduction ap

proved in part

7-12-56

Application of Atlantic Coast Line Railroad Company for authority to discontinue agency service at Screven

7-12-56

Application of Railway Express Approved
Agency, Inc. for authority to in crease by 7% its first and sec ond class express rates and charges and the rates and charges in its Official Express Classification No. 36

32
4

Supt. 269-R
Non-Docket
1st Supt. 170-R
176-R
Supt. 172-R
1st Supt. 228-R
1st Supt. 269-R
2nd Supt. 170-R

8-9-56

Motion of protestants for recon- Motion assigned
sidration and rehearing of the for oral argument Commission's order of July 11, 1956 authorizing discontinuance of agency service at Palmetto

8-21-56

Application of motor carriers of Tariff approved
household goods for approval of and Commissionnew household goods tariff pub- . issued tariff lished by Georgia Household cancelled Goods Tariff Bureau

8-23-56

Application of Georgia Railroad After further
for review of the Commission's review application order of October 26, 1954 deny- again denied ing authority to discontinue agency service at Devereux

8- 23-56

Application of Railway Express Denied Agency, Inc. for authority to elos the express office at Dev ereux

9-5-56

Provision for agency service at Carrier author-

Stephens during cotton ginning ized to use the

season

agent at Craw

ford to provide

3 hours service at

Stephens during

cotton ginning

season

9-6-56

Motion of Southern Railway Com- Motion denied pany for reconsideration of the Commission's order of May 8, 1956 denying authority to dis continue operation of Southern Railway passenger trains Nos. 26 and 27 between Macon and Brunswick

9-6-56

Petition of certain protestants for Denied rehearing and reconsideration of the Commission's decision of July 11, 1956 authorizing dis continuance of agency service at Palmetto

9-11-56

Petition of Georgia Railroad for Denied rehearing, reconsideration and oral argument of the Commis sion's order of August 23, 1956 denying authority to discontinue agency service at Devereux

33

270-R 1076- M 1077- M 1078- M
1st Supt. 214-R Supt. 215-R 1st Supt. 270-R
Supt. 270-R
1st Supt. 1029-M
1080-M

9-11-56 Application of Georgia Railroad Approved for authority to discontinue agency service at Ruckhead '

9-25-56

Application of Smoky Mountain Temporary sus Stages, Inc. for authority to pension of temporarily suspend all service service author operated between Washington ized and carrier and Carnesville and between Jef permitted to ferson and Athens and to dis discontinue the continue certain schedules be Lawrencevilletween Jefferson and Atlanta Jefferson portion of the Atlanta-
Jefferson sched
ule sought to be
discontinued

9-25-56

Application of Atlantic Coast Line Discontinuance

Railroad Company for authority authorized upon

to discontinue agency service at further con-

Hortense

sideration

9-25-56

Application of Railway Express Approved Agency, Inc. for authority to close the express office at Hor tense

9-27-56

Petition of certain protestants for Effective date of

reconsideration of the Commis- authorized

sion's order of September 11, discontinuance of

1956 authorizing the Georgia agency service

Railroad to, discontinue agency postponed pend-

service at Buckhead

ing further

investigation

10-8-56

Reconsideration of the Commis- After investigation sion's order of September 11, and review 1956 authorizing discontinuance authority to of agency service at Buckhead discontinue agency service affirmed

10-11-56

Petition of the Class "A" Motor Denied Carriers of Property for further increase in rates and charges due to difference in applicable class rate mileages

10-11-56 Application of Atlantic Greyhound Approved Corp. to increase commuter fares to 1.67 cents per mile

34

234-R
271-R 261-R 1st Supt. 261-R
2nd Supt. 261-R
1st Supt. 9061-A 273-R
1111-M
275-R
276-R

10-16-56

Application of Central of Georgia Approved Railway to discontinue agency service a t Godfrey and abandon the depot building at that point

10-25-56 Application of the rail carriers for Approved authority to increase passenger fares by 5%

11-21-56 11-26-56

Application of rail carriers for 6% Approved with

increase in freight rates and commodity

charges

exceptions

Application of rail carriers for 6% Order corrected to

increase in freight rates and specifically pro

charges

vide for exception

to increase on

insecticides

12-3-56

Application of rail carriers for 6% Order clarified as

increase in freight rates and to exception on

charges

fertilizer and

fertilizer

materials

12-3-56

Application of Louisville & Nash Approved ville Railroad Company for au thority to handle express on its line between Atlanta and Copperhill, Tennessee on freight trains

12-11-56

Application of Class "A" Motor Denied Carriers of Property for author ity to establish reduced rates on mixed less-truckload shipments of "household products and re lated articles"

12-11-56

Application of Atlantic Coast Line Approved Railroad Company for permis sion and approval to institute condemnation proceedings for the purpose of acquiring certain property in Meriwether County

12-11-56

Application of Atlantic Coast Line Approved Railroad Company for authority to discontinue agency service at Waresboro

35

277-R 278-R

12-11-56

Application of Atlantic Coast Line Denied with proRailroad Company for authority vision for review to discontinue agency service at after test period
Mystic

12-11-56

Application of Central of Georgia Denied Railway Company for authority to discontinue agency service at Guyton

|

36

BUS FARES AND SERVICES
Continued decline in patronage coupled with continued increase in operating cost forced further general increases in bus fares and accessorial charges and widespread reduction in services during the year.
By application dated May 22 the principal bus carriers in the State sought authority to increase their fares to a maximum of 2.5 cents per mile (further increased as might be necessary so that individual fares would end in "0" or "5"). This application sought no increase in commuter fares and by amendment Southeastern Greyhound Lines advised that it was not seeking the proposed increase between points on its line between Atlanta and Marietta. Upon showing at public hearing of substantial reduction in patronage and substantial increase in wages and other costs of operation, the Commission on June 21 permitted the increase sought, thus bringing the fares in Georgia generally in line with those applicable on interstate traffic in the South and on intrastate traffic in most of the states surrounding Georgia.
On October 11 Atlantic Greyhound Corporation sought an increase in its commutation fares to 1.67 cents per mile from 1.33 cents per mile, which level had been in effect via that carrier in Georgia since 1949 without change except in the minimum commuter fares. The record made at the hearing was convincing that commuter fares were not bearing their proper share of the operating cost of this carrier, and further that the low level of commuter fares applicable via Atlantic Greyhound Corporation was adversely affecting the operation of Smoky Mountain Stages, Inc., which had been previously authorized to increase its commuter fares but had been prevented from actually increasing such fares due to the necessity of maintaining competitive fares with Atlantic Greyhound Corporation between the many points those carriers both serve. There was no opposition to this proposed increase and in consideration of all the circumstances the Commission authorized the higher commuter fares for immediate application.
During the year the Commission also received applications from carriers performing urban type service in and near large communities seeking increase in fares to offset declining patronage and increase in operating cost. On May 8 the Commission permitted the Augusta Coach Company to increase its fares to 15 cents inside the City of Augusta and to 20 and 25 cents, respectively, for Zones 2 and 3 outside the city limits, and on July 12 authorized an increase in some of the cash fares of Interurban Transit Lines, Inc., and the discontinuance of the sale of all commuter books and tickets on that line. Interurban Transit Lines had also sought in connection with its fare increase application authority to discontinue all Sunday service between points on its line. The Commission found need for some Sunday service in the area served by Interurban Transit Lines and refused to permit total discontinuance of this service but did authorize reduction in service to three round trips per Sunday.
Decline in patronage forced the carriers to seek additional reductions in their services and during the year the Commission informally permitted a number of such schedule changes and, after formal hearings, authorized discontinuance of two commuter schedules between Dalton and the Georgia-Tennessee State Line (en route to Chattanooga, Tennessee) on Southeastern Greyhound Lines and temporary suspension of service on the lines of Smoky Mountain Stages, Inc.
37

between Athens and Jefferson and between Washington and Carnesville. Au thority was also granted to Modern Coach Corporation to discontinue all service on its line between Albany and Donalsonville (via Newton and Colquitt) and reduction in service on its Albany-Georgetown route to week-end service only. Further application of this carrier to reduce its Columbus-Ft. Gaines operation to week-end ^service only was denied, subject to review at the end of a reasonable test period.
On June 25 the larger bus lines operating within the State sought to increase their bus express rates and charges by amounts varying from 20 per cent in the lower weight-shorter mileage brackets to over 70 per cent in the higher weightlonger mileage brackets. Considerable opposition was expressed to this application a t the hearing by representatives of shippers of flowers and automobile parts. The bus lines did not seek merely an across-the-board increase in this proceeding but a revision in the uniform structure of bus express rates and charges previously prescribed by this Commission. However, the studies and evidence submitted as justification for the proposed adjustment were found to be insufficient for the Commission to determine the measure of increase needed, if any; the amount of increased revenue that would accrue from the proposed increased rates and whether or not the proposed greater measure of increase in the higher weightlonger mileage brackets was properly justified by transportation conditions. Accordingly, the proposed increases were denied, but such denial was stated to be without prejudice to the filing of new applications supported by adequate and sufficient evidence.
TRUCK RATES
On June 27, the Class "A" Motor Carriers of Property, together with several of the larger Class "B" Motor Carriers of Property, filed an application to in crease by 10 per cent their less-truckload and any quantity rates (with certain minor exceptions). The evidence presented a t the hearing in this case showed that there had been a further appreciable increase in the cost of operation since the Commission's last order of September 19, 1955 granting higher rates for these carriers, but the Commission found the level of increased rates sought to be not fully justified and in authorizing an increase on July 12 limited the increase granted so that the resultant rate scales would be on the same level as published by the same carriers to apply on interstate traffic generally in the South. la consideration of the carriers' contention that the use of the Georgia system of basing rates on highway distances as compared with the interstate system of observing railroad distances reduced the amount of revenue obtainable in Georgia when applying the interstate basis of rates, the Commission held open the proce eding for the purpose of permitting the carriers to make an actual study of the results of the application of the Georgia system of mileages with the understand ing th at the record would be reviewed upon receipt of the result of such study.
On September 11 the motor carriers submitted the results of their revenue study conducted as authorized by the Commission in its original order in this proceeding - that study being based on 3 days' operation of the motor carriers transporting the bulk of the Georgia intrastate fixed route common carrier truck traffic. Inasmuch as this study showed a difference of only 0.849 per cent the Commission was not willing to disturb the existing parity between the interstate
38

and intrastate rate scales in orddr to compensate to that small extent for the different method of mileage computation and reaffirmed its original order of July 12 permitting increase in rates only to the interstate level.
The Commission also held public hearing during the year on application of Class "A" Motor Carriers of Property to establish a scale of rates applicable on mixed less-truckload shipments of "Household Products and Related Articles." After full hearing and careful consideration the Commission found that the proposed grouping of the dissimilar commodities as was there involved ignored completely the long established principles of freight classification and found that to approve such a grouping, particularly a t the lowest basis of rates applic able on any of the commodities in the group as was proposed, would establish a precedent which could lead to the destruction of the entire less-truckload rate structure of the motor carriers. The Commission acknowledged that it was pos sible that the shipper involved might be entitled to some reduction in the rates on commodities shipped by that organization in view of the substantial increases in rates incurred on some of its commodities under the Docket 28300 adjustment but found that there was no justification for the establishment of a less-truck load rating on mixed shipments, merely grouping under one list the commodities a given company ships without regard to the transportation charcteristics-particularly when other shippers of varied articles would demand and could not reasonably be denied the same privilege as to mixed shipments of their com modities. The Commission's denial of this application was specifically stated to be without prejudice to the right of the shipper involved to seek adjustment of its rates on individual commodities where justification for such adjustment could be shown.
For eight years the Commission has published a tariff for the household goods carriers due to the inability of those carriers to properly compile and pub lish tariffs for their own account. During those eight years it has been necessary to reissue the tariff twice and to issue some 40 supplements to the three tariffs-- all of which was a considerable burden on the Commission's staff. Fortunately the household goods moving industry in the State of Georgia has matured rapid ly in the past decade and there is now an association which includes almost all of the principal specialized household goods carriers and which has proven to be capable of representing the industry. In recognition of this fact the Commission some time ago informally advised the specialized household goods carriers that it would not continue indefinitely the publication of the household goods carriers tariff and encouraged the preparation by the association of an appropriate tariff which would be open to all specialized household goods carriers in Georgia at a reasonable cost and under reasonable conditions. By application dated August 20 the Georgia Household Goods Tariff Bureau, a Division of the Georgia House hold Goods Movers Association, Inc., sought approval of a proposed tariff con taining the rules of the present Commission-issued tariff (modified to some ex tent) and seeking a t the same time an increase of 5 per cent in the basic rates-- justification for such increase being based principally on increased labor cost. Upon consideration of the tariff and the carriers' presentation, the Commission approved the proposed new tariff, with the exception of the proposed increase in rates, to become effective on October 1 for account of the carriers submitting the application. Effective the same date the Commission cancelled its Household Goods Tariff and advised all the parties that after that time it would no longer
39

publish household goods rates for account of any of the specialized household j goods carriers and that such carriers could either become participating carriers x in the new industry tariff or could file appropriate tariff of their own, subject to the approval of the Commission. In view of the lack of adequate statistical sup- j port for the proposed rate increase that portion of the application was denied j without prejudice to the carriers filing renewed application and making appro priate showing at public hearing.
The Commission continues to experience difficulty with the regulation of rates applied by the motor carriers for the transporation of property for the various agencies of the United States Government. As discussed in considerable detail in our 1954 report, the principal difficulties are being experienced in con nection with the movement via motor carrier of household goods of the personnel of the various Armed Forces installations in the State--the transportation officers of these installations ignoring the rules and regulations of the Commission and the laws of the State of Georgia. Early this year it came to the attention of the Commission that certain branches of the United States Armed Forces were solic iting bids for transportation of household goods in the immediate areas of the Army, Navy and Air Force installations in Georgia on bases other than those prescribed or approved by the Commission. Accordingly, the Commission on May 4 issued a directive to all specialized household goods carriers in the State specific ally calling attention to the fact that under the existing tariffs it was not possible for any household goods carrier to legally quote rates for the transportation in volved on the basis and in the manner sought in the invitations to bid and that unless and until change was authorized by the Commission in the present tariff provisions governing the transportation of household goods intrastate in Georgia, it would not be proper for any household goods carrier to quote to any govern ment installation (or any other shipper) rates on any basis other than that pub lished in such tariff. It appears that several carriers did not comply with the Commission's directive and have bid on and secured contracts for this trans portation at rates and charges other than those approved by the Commission and officially on file with the Commission for their account. Investigations are now being conducted and formal action is contemplated against any carrier found to have so violated the law of the State of Georgia.
The Commission's Highway Distance Table No. 1, on which many motor carrier rates are based, was published in 1938 and not only are the mileages con tained therein now largely incorrect due to the construction of new highways but the supply of such tables has been exhausted for some time. Accordingly, the Commission has begun the compilation of a new distance table and has concluded to broaden the table to include many towns not presently shown. The new table will show distances between 289 cities and towns and will contain 41,760 different mileages. Inasmuch as there will be many thousands of computations necessary in compiling the new mileages, it will take a considerable length of time for the Com mission's small staff to complete the new table but it is hoped that the new mile age table can be distributed next year.
RAILWAY EXPRESS
On February 7 and 24 the Railway Express Agency, Inc. filed applications for authority to increase its first and second class express rates and charges and
40

the rates and charges in its Official Express Classification by seven per cent--the same measure of increase authorized by the Interstate Commerce Commission on interstate traffic on March 20 and April 2.
Justification for this increase in rates was based on increased cost of opera tion, primarily increases in wages of 13% cents per hour effective December 1, 1955. The record showed that the additional revenue accruing from the proposed increased rates would not exceed the increases in costs incurred and on the con trary that the Express Agency would still be required to absorb over 25% of such increased cost. It was further shown that the increases sought had already been made effective intrastate in 31 other states, including the southern states of Kentucky and Virginia, and that hearing had been held on similar applications in the States of Alabama, Florida, Mississippi and North Carolina. The Commission found the increased rates reasonably required to offset the operational increases incurred, and in the interest of uniformity authorized the same measure of in crease as had been permitted on interstate traffic.
In 1949 the Commission authorized the Louisville and Nashville Railroad Company to discontinue the operation of its passenger trains Nos. 1 and 4 between Atlanta and the Georgia-Tennessee State Line (near Copperhill, Tennessee) subject to the provision that express service be provided to points served by trains 1 and 4 by a substituted motor carrier operation. As the result of these conditions in the Commission's order, the Louisville and Nashville Railroad Company made arrangements with the Railway Express Agency for the provision of such sub stituted service. The Railway Express Agency obtained appropriate authority from this Commission and from the Interstate Commerce Commission to operate the substituted motor carrier service and has operated such service continually since March 1, 1949. The operation has been conducted under the provisions of a formal written contract between the Louisville and Nashville Railroad Com pany and the Railway Express Agency providing that the actual cost of the oper ation, plus 15% thereof for supervision, contingencies and overhead, would be paid by the Louisville and Nashville Railroad Company. By application dated December 27, 1955 the Louisville and Nashville Railroad Company sought "relief from the burden of making satisfactory arrangements to continue express service to points that were served by applicant's passenger trains Nos. 1 and 4 between Atlanta, Georgia and the Georgia-Tennessee State Line near Copperhill, Tennes see." This application contemplated that express traffic would be handled to and from those points in the future either by the Railway Express Agency in its own motor vehicles a t the Express Agency's own expense, or in an express car that would be operated on the Louisville and Nashville Railroad freight trains on this line.
The evidence submitted at the hearing shows that conditions on which the Commission based its requirement for continued provision of express service by substituted motor carrier service had changed substantially and that the volume of the express traffic moving to and from points on this line had declined to the point that the portion of the revenues credited to the Louisville and Nashville Railroad from such traffic now fails by a considerable amount to meet the cost of providing the substituted truck service--a study showing that during a repre sentative test month the revenue credited to the Louisville and Nashville Railroad from the operation of this substituted highway express service had amounted to
41

$1,045.39 and that the railroad paid during the same month for the operation of this substituted service $1,796.38, thus incurring a direct loss of $750.99 for this one month.
There was no opposition to the proposal to handle express by freight train--on the contrary the Mayor of one of the principal cities served on this route support ing the contention of the railroad that th proposed freight train service would prove adequate. Upon consideration of the substantially reduced demand for express service on this route as established by the complete lack of opposition to the proposal, and in consideration of the fact that the normal practice of handling express in substituted over-the-road service is for the cost of such service to be charged to the Express Agency's general cost of operation and thus shared in by all the Express Agency's railroad owners instead of being charged directly to one railroad, the Commission eliminated the provision of its original order re quiring the railroad to provide this substituted motor carrier service and authoriz ed the provision of express service via freight train but urged the Railway Ex press Agency to operate the more efficient motor carrier service on this route on the same basis as such substituted service is provided by the agency on other lines. Following this order the Express Agency did continue the substituted motor carrier operation under those conditions.
During the year the Railway Express Agency sought authority to close its offices at 13 points. Most of such applications were filed only because a railroad had filed application to discontinue its agency a t a station--which agent was also the Express Agent--and were contingent upon approval being given to the rail road's application. The Express Agency was permitted to close its offices a t Flovilla, Hortense, Juliette, Kingston, Meansville, Meldrim, Senoia and Stephens but the need shown for railroad agency service at Alto, Devereux, Lake Park, Mableton and Scotland resulted in the contingent express applications being denied.
RAIL PASSENGER SERVICE
By application dated February 9 the Central of Georgia Railway Company sought authority to discontinue operation of its local Passenger Trains Nos. 7 and 8 between Albany, Georgia and the Georgia-Alabama State Line near Hilton (en route to Dothan, Alabama). These two trains were the last two passenger trains operated by this railroad on its line between Albany, Georgia and Dothan, Alabama but the record showed that the public use of the trains had declined to the point where less than 9 passengers per trip used the service in spite of the addition of Pullman equipment and adjustment of schedules in an effort to attract traffic. Although protests were filed by representatives of the City of Blakely and by a ieyv individuals, the former Mayor and two former Councilmen of Blakely appeared in support of the application, as did a present member of the Board of County Commissioners of Calhoun County. In addition, the town of Leary, also on the route of these trains, filed copy of resolution stating that Leary did not oppose the proposed discontinuance of service. By order dated April 12 the Commission authorized the railroad to discontinue operation of trains 7 and 8 effective May 1.
Late in 1955 the Southern Railroad Company sought authority to discon tinue operation of its daily passenger trains Nos. 26 and 27 between Macon and
42

Brunswick. These two trains provide the last daytime passenger train service between these points and serve 34 stations--the applicant proposing to eliminate entirely passenger service to 21 of such stations and to have its night passenger trains 7 and 8 make conditional stops at 6 other such stations in lieu of the regu lar stops now provided by trains 26 and 27. Extensive opposition was expressed to the proposal of the carrier to discontinue the operation of these two trains with protest being received from almost every town on the route. The protestants con tened that the lack of use of the services of these trains was due not to lack of need of such service but to the inadequate schedules and facilities. Although the applicant showed at the hearing that the operation of these two trains was being conducted at a loss of almost $100,000 per year, the Commission found that the Southern Railway Company had made little or no effort to attract passengers to trains 26 and 27 for the last ten years, that the equipment of such trains, while possibly above a minimum adequacy, left much to be desired in the way of attracting additional passengers, that inadequate publicity had been given to the service available and that the passenger facilities which would remain avail able to the area would not prove an adequate substitute and under the circum stances declined to permit the discontinuance of operation of trains 26 and 27. The Commission pointed out that while the traffic potential of the affected area would not properly support-the operation of the "Nancy Hanks" type of train which the prostestants sought in a cross-petition, the Southern Railway would be expected to explore all reasonable means of providing more attractive service to the area served by trains 26 and 27, including the possible bettering of schedules through investigation and elimination of unneeded stops and closer connections at Macon, experimentation with incentive fares, improvement of equipment and adequate advertising of improved services. The Commission further emphasized that while it was of the opinion that the application should be denied under the present circumstances and conditions, the public in the area would be expected to demonstrate its desire for retention of the trains by utiliz ing their services and that the instant denial would be without prejudice to the refiling of such application after the expiration of a reasonable period of time if the present downward trend in patronage on these trains continued after rea sonable efforts had been made by the carrier to effectuate the improvements in services and solication pointed out by the Commission as being needed.
The Southern Railway Company sought reconsideration of the Commission's denial of this application and was granted oral argument on that motion. After full oral argument by the applicant and the protestants, the Commission on Sept ember 6 denied the motion for reconsideration.
In May of this year the rail carriers in the South received authority from the Interstate Commerce Commission to increase interstate coach fares from 2.75 cents to 2.8875 cents per mile and to increase interstate fares good in sleep ing or parlor cars from 3.85 cents to 4.0425 cents per mile. By application dated June 8, the railroads operating in Georgia sought authority to increase their Georgia intrastate fares to the same level. In consideration of the substantial in creases in costs being incurred by the railroads in provision of passenger service, and after finding th at the passenger services of the railroads in the State of Georgia were not bearing their full share of the overall cost of operation, the Commission authorized effective November 15 the increased fares sought.
43

RAIL FREIGHT
By application dated May 3 the majority of the pulpwood hauling railroads in the State of Georgia sought authority to increase rates on pulpwood by 6% to a level reflecting 182.85% of the basic "Roanoke Rapids" scale in effect March 28, 1938, such increased rates to be not subject to the Ex Parte 196 6% increase concurrently being sought on intrastate traffic generally in a separate proceed ing. The application was supported by the paper industry, the principal user of pulpwood transporation service within the State of Georgia, which strongly urged that the application be approved to become effective on siune 4 simultaneously with the interstate adjustment. In consideration of the support of the industry utilizing such rates, and in view of the fact that the rail carriers not joining in this specific application to increase pulpwood rates were seeking the same in crease on intrastate rates generally (including pulpwood), the Commission on June 1 authorized the increases to become effective on June 4.
For many years the Commission has been considering requiring the can cellation of its old lettered class rates which have been in effect for many years and which no longer reflect the transportation conditions in the railroad indus try--such rates being, in general, applicable on low grade bulk commodities forme rly moving extensively by rail before the advent of truck operation and with many of such rates being on a per car basis, which basis is obsolescent in the rate struc ture of the nation. The railroads on May 3 themselves sought authority to cancel all such lettered and numbered class rates (except the class P I rates on logs) and when it was developed at public hearing that there was practically no movement on those class rates, with the exception if the movement of logs on the Class PI rates, the Commission authorized the cancellation of such lettered and numbered class rates effective August 15. The cancellation of these rates and the related exceptions ratings will eliminate much confusion in the determination of applic able rates, within the State of Georgia and will be of appreciable benefit to both the carriers and the shipping public by permitting the elimination of many indivi dual tariffs as well as the cancellation of a considerable portion of a large agency tariff.
As discussed in our 1955 report this Commission in that year actively partici pated in a proceeding before the Interstate Commerce Commission wherein was involved the determination of jurisdiction of that Commission over the movement of petroleum and petroleum products by rail or motor carriers from a pipe line terminal in Georgia to destinations in Georgia where such products had been subjected to prior transportation by pipe line.
Favorable decision was received from the Interstate Commerce Commission early this year recognizing State Commission jurisdiction over this traffic and as a result of that decision the so-called "proportional" rate structure of the Southeastern Pipe Line Company was cancelled. In order to place the outlets on that pipe line on the same competitive rate basis as the outlets on the Plantation Pipe Line and the marine terminals, the Commission on June 6 prescribed specific point-to-point rates from the Southeastern Pipe Line terminals to all consuming destinations in Georgia within 200 miles of such origins on the same basis as had previously been prescribed from Plantation Pipe Line terminals and the marine terminals.
44

The railroads early in the year filed applications seeking to increase their freight rates and charges by the same amount (6% ) as authorized by the Inter state Commerce Commission on March 2 in Ex Parte 196 - such application con templating the same execptions to the general increases as prescribed by the In terstate Commerce Commission and as voluntarily applied by the railroads. After full hearing where extensive evidence was submitted by both the carriers and by a considerable group of protestants the Commission found the record convincing as to the need of the railroads in Georgia for additional revenues to offset the large increases in operating expenses, particularly the substantial increases in labor cost incurred since the last increase in railroad freight rates was granted by this Commission in October of 1952, and further found that the railroads oper ating over two-thirds of the total railroad mileage in Georgia were badly in need of additional revenues and that the economic welfare of those lines was vital to the shippers of this State and accordingly authorized the general increase sought, subject to certain exceptions. The Commission further found, however, that the farmers of this State (whose rate of return is far lower than that of the railroads shown in this proceeding and there contended to be unreasonable) needed relief from the burden of increased transportation costs more than the carriers needed the increased revenues and agreed with the Commissioner of Agriculture of the State of Georgia and other protestants that no further increase in transportation charges should be imposed on the basic farming needs of fertilizer, soil condi tioners and insecticides and ordered exception to the generally authorized increase on carload shipments of those commodities. The Commission also determined to be unreasonable the proposed increase on textile waste when the carriers were voluntarily excepting from such increase the rates on cotton with which certain of the textile waste products directly competed and ordered exception on that commodity. In addition, the Commission held that conditions justified exception of a few point-to-point gathering rates on crude clay and shale as sought by certain of the protestants and its order also provided for exception as to those rates.
RAIL AGENCY SERVICE
As in prior recent years the Commission received in 1956 a number of applications from the railroads seeking discontinuance of agency service a t the smaller stations--21 such applications being received in 1956. These applications were again uniformly based on the contention that the volume and type of traffic handled at these smaller stations was such as to no longer justify the increased cost of maintaining agency services. While in most instances the traffic moving to and from the stations involved in the applications for discontinuance this year Were sufficient to pay the direct operating cost of the agency, in most instances there was little left over for compensating for the cost of line-haul transportation of the traffic. The Commission recognized that the mere fact that an agency earned sufficient revenue to pay the agent's salary does not per se justify the ex pense of maintaining that agency, but of the 21 applications filed during 1956 found that the public convenience and necessity of the affected areas would not be adequately served in eight instances where discontinuance of agency service was sought and accordingly denied authority to discontinue agency service a t Alto, Scotland, Mableton, Meansville, Screven, Mystic, Guyton and Devereux and upon reconsideration of its order of Oct. 7, 1955 revised its decision in that order and denied authority to discontinue the agency at Lake Park. Authority was granted
45

to discontinue agency service a t Stephens, Baldwin, Flovilla, Senoia, Kelly, Pal metto, Buckhead, Hortense, Godfrey, Waresboro, Talmo and Meldrim.
WESTERN AND ATLANTIC RAILROAD
On February 10 members of the Commission and the Commission's staff accompanied the Western and Atlantic Railroad Committees of the General As sembly on an inspection trip of the Western and Atlantic Railroad property between Atlanta, Georgia and Chattanooga, Tennessee, and also inspected the state-owned property located in the City of Chattanooga. The property of the railroad was found to be maintained in excellent condition and recent changes in the facilities were pointed out to the members of the Committees. The members of the Committees were reminded that the lea.se of the Western and Atlantic Railroad has only 13 more years to run and that consideration would necessarily have to be given in the near future to disposition of the property following termin ation of the present lease. In connection with this m atter the members of the Com mittees were given details of the cost of construction of the Western and Atlantic Railroad and the value of the railroad as determined by the Interstate Commerce Commission and the extent of additions and betterments to the property by the lessee since such valuation was made. Statistics Were also furnished to the mem bers of the Committees showing the volume of traffic handled by the lessee over the state-owned railroad as indication of the importance of the line to the lessee and to the shippers and receivers of freight of the State of Georgia.
Later in the year the Nashville, Chattanooga & St. Louis Railway and the Louisville and Nashville Railroad began construction of a new joint yard facility at Hills Park, where is now located the present yard facilities of the Nashville, Chattanooga & St. Louis Railway used in connection with the movement of its trains over the Western and Atlantic Railroad. The proposed new joint terminal involves the construction of a new large automatic hump yard which will be large ly electronic in operation and will contribute greatly to the facility of handling traffic over the state-owned railroad. In connection with this new construction the lessee proposed to relocate the Western and Atlantic Railroad main line be ginning just north of Mile Post No. 5 and extending almost to the Chattahoochee River--such relocation to result in the elimination of two major curves and the appreciable improvement of the Western and Atlantic Railroad property. In con nection with the initial phase of this relocation, the lessee proposed to exchange the right-of-way on which a portion of the line was to be relocated for the prop erty on which the corresponding portion of the present right-of-way is located, this proposal involving property presently owned by the State of Georgia consist ing of a 66 foot strip extending for a distance of approximately 2000 feet and containing a total of approximately 3.1 acres. After on the ground investigation, the Commission on April 19 unanimously adopted the following resolution:
WHEREAS, Western & Atlantic Railroad and its properties owned by the State of Georgia, are operated by the Nashville, Chattanooga & St. Louis Railway, a Tennessee Corporation, as lessee of the State of Georgia, under a lease contract dated May 11, 1917, and extending to December 27, 1969; and
WHEREAS, the Nashville, Chattanooga & St. Louis Railway as such lessee is now using train yards and. switching facilities a t Atlanta provided
46

[ at its own expense, and which it owned when said lease of May 11, 1917, was

executed, and now proposes to modernize and enlarge such yards for the

more efficient movement of traffic to and from Atlanta via the State-owned

railroad, for which purpose it will be necessary th at Western & Atlantic Rail

road tracks be straightened and relocated; and

f

WHEREAS, said lessee is willing and able to finance the expense of

such train yard enlargement and modernization, without cost or expense to

He .. the State of Georgia; and

e I

WHEREAS, the plan and the revision thereof for the proposed recon-

ti

struction and enlargement of the said yards has been presented to and con-

s S sidered by the Georgia Public Service Commission and said Commission has

c

found that the construction and enlargement of the said yards should greatly

M enhance the value of the State's railroad property and that the proposed

- i straightening of the main line will be of appreciable benefit to the Western &

- I Atlantic Railroad and the State of Georgia; and

cl

e

WHEREAS, the General Assembly of Georgia by a resolution approved

December 12, 1953, Ga. Laws 1953, Nov.-Dee. Sess. p. 131-134, authorized the

Governor and the Chairman of the Georgia Public Service Commission to act

I for the State of Georgia in connection with the enlargement and modernization

e j of such freight yards and empowered and directed said officers on behalf of

the State, to convey the State's right, title and interest in any land from

which main track is removed in such relocation.

6 j

NOW THEREFORE, be it resolved by the Georgia Public Service Com-

,

mission that upon their investigation and consideration, the Commission does

'

arrive at the following conclusion:

This relocation will eliminate two major curves and will result in ap-

I

preciable improvement to the Western & Atlantic Railroad property. In

5 |

addition to the straightening of the track the project involves the con-

n

struction of a large new automatic hump yard which will be largely

K1

electronic in operation and will contribute greatly to the facility of

e

handling traffic over the State-owned Western & Atlantic Railroad. The

I

present right-of-way property to be exchanged by the State of Georgia

r [

is only 66 feet in width and would be valueless for any industrial site

e

purpose not only because of the narrowness of the curved tract, but

* I

also because the land will be entirely surrounded by the extensive

I I

yard to be constructed by the Nashville, Chattanooga & St. Louis

r

Railway and the Louisville and Nashville Railroad and by the

d [

present Southern Railway Inman Yards with no means of egress or

i

ingress. In the exchange of land here proposed the State of Georgia will

actually gain 1.3 acres of physical property and an even more tangible

I

benefit will be the straightening of the main line of the Western &

Atlantic Railroad with the elimination of considerable curvature and

I

consequent bettering of the railroad property. By far the most impor

tant benefit however, will be the new yard which will be developed next

to this relocated main track and which will provide an important and

h j

badly needed facility for the handling of inbound and outbound traffic

d

moving over the rails of the Western & Atlantic Railroad. The proposed

47

exchange appears to be equitable and the overall project will be of un questionable benefit to the State of Georgia.

BE IT FURTHER RESOLVED that the Commission hereby recom mends to the Governor and the Chairman of this Commission that they do proceed with the execution of the necessary documents to conclude the pro posed exchange of property.

The exchange of property was subsequently effected and the track is now
being relocated in this area and the construction of the new yard facilities is well under way.

The Annual Report of the Nashville, Chattanooga & St. Louis Railway as lessee of the State-owned Western & Atlantic Railroad for the calendar year 1956, shows for the net expenditures charged to the accounting classification "Additions and Betterments" by classes of railroad property the following amounts:

Improved track materials ___ __________-

-_-

$ 7,512.21

Bridges, trestles and culverts _____ ______ ,______ _ ____ :_______ __ 7,617.14

Yard tracks and sidings ___________ ______ - /*

___ 7,798.61

Public improvements ___ --'T, > ___ -/ - - - " i .

. 1,621.43

Station and Office Buildings

__-___ ____________ ____ 6,203.57

Elimination of Grade Crossings ________________ 49,542.63

Purchase of L a n d _--___.....________________r______._____i____ . 2,638.40

The above net additions reported are after deduction for value of property replaced during the year and total $82,934.09. The net capital expendutures made by the Nashville, Chattanooga & St. Louis Railway for additions and improve ments to the Western & Atlantic Railroad from the beginning of the lease in 1919 through December 31, 1956 amount to $7,483,180.

PARTICIPATION IN INTERSTATE RATE CASES
This Commission continues to actively participate in I.C.C. Docket No. 30958, Reduced Rates on Pulpwood in Southern Territory. The Interstate Commerce Commission by its order dated February 7 in effect reaffirmed the finding of Division 2 of that Commission previously protested against by this Commission and ordered the cancellation of the rates on pulpwood which we had been defend ing and the establishment in lieu thereof of a scale of rates previously prescribed by Division 2 with the resultant substantial increase in the rates on pulpwood moving interstate in seven Southeastern States, including Georgia. We joined with the other states affected and on March 27 filed petition for reopening, further hearing, reconsideration and stay of the Commission's order, protesting that the new order in the main merely restated the findings of the previous orders of Division 2 and was deficient in the same respects as those previous orders. The order of February 7 did include, however, as major justification for the Com mission's reaffirmation of those previous findings, an enlarged discussion of the "cost of service", whereby the Interstate Commerce Commission concluded that the respondents' present rates on pulpwood did not yield out-of-pocket costs. We pointed out in our petition that the Interstate Commerce Commission had based its "cost of service" finding on the cost and operations of two protestant rail'

48

roads but that the resultant minimum rate order would apply on the lines of the entirely different respondent carriers and that such finding was made without conclusive showing of similarity of operations justifying the application of the costs of one group of carriers to the operations of another--an error which we contended justified the further hearing and reconsideration sought. The respon dent railroads and the paper companies likewise sought rehearing and recon sideration.
The Interstate Commerce Commission denied all motions for rehearing and re consideration and the paper companies appealed to the Federal Courts for review of that Commission's action. This Commission, together with the other affected Southern States, has joined in this appeal for court review and has filed appro priate briefs in this civil action. Later in the year the respondent railroads filed further petition with the Interstate Commerce Commission for rehearing and reconsideration stating that those railroads were preparing new evidence that would reflect the costs to the respondent carriers of transporting pulpwood traffic over their lines. Decision has not as yet been issued by the court on the civil action or by the Interstate Commerce Commission on the latest petition.
The railroads continue to seek reopening and modification of the Southern Governors' Class Rate Case and during the year we joined with the Southeastern Association of Railroad and Utilities Commissioners in resisting another effort for such reopening and modification. The Interstate Commerce Commission denied this latest motion for reopening of this case.
Late in 1955 the Western rail carriers sought reopening, further hearing, re consideration and modification of the order of the Interstate Commerce Commis sion in Docket No. 28300, Class Rate Investigation 1939 seeking principally revi sion of the measure of gradation in the scale of rates promulgated by the Inter state Commerce Commission in that order to apply on class rated traffic! This Commission joined with the Southern Governors' Conference and the Southeastern Association of Railroad and Utilities Commissioners in vigorously opposing the proposed reopening, pointing out that the national rate uniformity prescribed in this docket was brought about only after many years of hearings and court pro ceedings during which the protestants had more than ample opportunity to present the protests and arguments now sought to be made the subject of new hearing and that the petitioners had advanced no valid reason for disturbing the basic rate structure prescribed by the Commission in this proceeding. The Interstate Commerce Commission quite properly declined to permit the reopening of this case.
As pointed out in our 1955 report, this Commission last year advised the Interstate Commerce Commission that it had no objection to the proposal of the Louisville & Nashville Railroad to merge the Nashville, Chattanooga and St. Louis Railway provided that any order authorizing such merger contained adequate safeguards for the protection of the interests of the shippers of Georgia utilizing the services and facilities of the Nashville, Chattanooga and St Louis Railway and for the protection of the interests of the State-owned Western and Atlantic Railroad which was involved in the proposed merger. Such safeguards were agreed upon between the Louisville & Nashville Railroad and this Commis sion and introduced into the record by the Louisville & Nashville Railroad. The
49

Interstate Commerce Commission issued an order in July authorizing the proposed I merger but through error omitted a portion of the safeguards on which we had insisted. We filed exception to the Examiner's report in August pointing out the I inadvertent omission and requesting modification of the order to include that [ provision--the Louisville & Nashville Railroad joining in this request.
In March the Commission intervened in a proceeding before the Interstate Commerce Commission involving application of the St. Louis-San Francisco I Railway Company for authority to acquire direct control through ownership of I capital stock of the Central of Georgia Railway Company and supported the I application for control. The Commission sent a representative to testify a t the hearing in Savannah and to submit at that hearing copy of the following resolu tion advising of its position in this proceeding:
WHEREAS; The St. Louis-San Franciseo Railway Company has filed | an application with the Interstate Commerce Commission seeking authority to acquire control (through stock ownership) of the Central of Georgia Railway 1 Company and the common carrier subsidiaries of that railroad, and
WHEREAS; Rapidly developing conditions in the railroad industry I (particularly the policy of restrictive routing being vigorously progressed by several of the larger southern carriers) is not conducive to the continua tion of the economic stability of any of the smaller carriers, and
WHEREAS; It appears to be in the public interest to assure stability of | ownership and management of the Central of Georgia Railway Company I through control by a larger railroad system which is not directly competitive with the Central of Georgia Railway Company, and
WHEREAS; The St. Louis-San Francisco Railway Company has assured j this Commission that it will preserve the identity and integrity of the Central I of Georgia Railway Company as a separate and independent, Georgia-based, I railroad system and has further assured this Commission that it will agree I to restrictions being placed in the order of the Interstate Commerce Com- I mission approving such control that will guarantee the preservation of the present through routes, joint rates, interchange facilities, and non-discdimin- I atory policies and activities in connection therewith, and
WHEREAS; Certain other carriers have intervened in opposition to the application and sought conditions which would be detrimental to the interests ; of the Central of Georgia Railway Company and the public served by that j carrier,
THEREFORE, BE IT
RESOLVED; That the Georgia Public Service Commission intervene f in Interstate Commerce Commission Finance Docket No. 19159 for the pur- I pose of participating in all hearings and other proceedings in support of I the application of the St. Louis-San Francisco Railway Company for con- I trol of the Central of Georgia Railway Company and in opposition to any I counter proposal which would be adverse to the interests of the Central of I Georgia Railway Company and the public served thereby.
50

d

BE IT FURTHER RESOLVED; That Commissioner Walter R. Mc-

d j

Donald and/or the Director of the Transportation Rates Division, be author-

e

ized to appear a t the public hearing in this proceeding for the purpose of

t I

presenting the position of this Commission as set forth herein.

In November an examiner's proposed report was issued in this proceeding e I recommending denial of sole control of the Central of Georgia Railway as proposed 0 by the St. Louis-San Francisco Railway and recommending instead approval of
f counter proposal of the Illinois Central Railroad and the Seaboard Air Line e Railroad for joint control. This Commission is preparing exceptions objecting to e the recommendation of the examiner.

Upon request of watermelon shippers of the State the Commission intervened

in Interstate Commerce Commission I. & S. Docket No. 6566 wherein is involved

d certain proposed penalty rates on watermelons moving from origins in the South

0 to destinations in the United States and Canada. The penalty charge was pro-

y posed by the railroad to apply on carload shipments of watermelons when load

ed in a lengthwise manner and was vigorously opposed by watermelon shippers

of the State of Georgia, as well as those in surrounding states, and the Com-

y mission intervened in support of the position of those shippers. The watermelon

d shippers contend th at lengthwise loading reduces the internal damage to the

t- [ melons and thus assures them of better sale a t destination. On the other hand,

the carriers contend that crosswise loading reduces the actual breakage of the

melons and thereby reduces the substantial claims for damages on broken melons.

^ Hearing was held before the Interstate Commerce Commission in September and

y the matter is now pending before that Body, e
Another restrictive routing proposal was initiated by the Southern Railway

System during 1956, this proposal seeking to close routes in connection with the

id I Central of Georgia Railway, Louisville & Nashville Railroad and Nashville, Chat-

il tanooga and St. Louis Railway. Inasmuch as the State-owned Western and At-

i, lantic Railroad would be directly and adversely affected by this proposal to close

;e j routes, this Commission intervened in opposition to the proposed routing restric-

i- I tion. We pointed out that not only was the State-owned railroad threatened with

le loss of traffic but that the proposal would automatically increase rates to ship-

i- I pers by eliminating the short-line rail route between Chattanooga and Atlanta

and would not only affect rates on traffic moving between Chattanooga and At

lanta but also on traffic moving between all other points where the rate-making

ie distances are computed over Atlanta and Chattanooga. Objections were received

k | by the Interstate Commerce Commission from other railroads and from numerous

*1 shippers and receivers of freight and the proposed tariff publications were sus

pended and the m atter set down for investigation. At the request of the Southern

Railway System hearing on this investigation was postponed pending final action

of the Interstate Commerce Commission in a similar proceeding involving cancel-

ie lation of routing in connection with the Tennessee, Alabama & Georgia Railway,

r- I

3f I

This Commission has continued its participation in I. C. C. Investigation and

I Suspension Docket No. 6413 involving the above-mentioned cancellation of rout-

iy I ing between the Tennessee, Alabama & Georgia Railway and the Southern

01 1 Railway System. We presented a number of witnesses a t the public hearing in

that Docket in March showing the adverse effect the proposed routing restrictions

51

i
would have on the public in the area of Georgia served by the Tennessee, Alabama & Georgia Railway and in October filed a brief in that proceeding opposing the proposed routing cancellation. In addition to the direct adverse effect to the area of Northwest Georgia served by the Tennessee, Alabama & Georgia Railway we stressed the indirect harm that would be done the public in general by the establishment of a precedent in this proceeding which would encourage the further restriction of routes by this and other railroads and would ultimately `precipitate a routing war which would result in the closing of thousands of frequently used routes which are not only needed as service routes but which in many instances constitute the short-line routes between origin and destination on which present rates, both class and commodity, are based. We strongly contended that the Southern Railway System had failed in its statutory obligation to prove that the proposed routing restrictions were in the public interest and that the potential harm inherent in the routing restrictions proposed fa r outweighed any small in dividual benefit that might accure to the Southern Railway System.
As discussed in some detail in our 1955 report, this Commission has also opposed the proposal of the Southern Railway System to restrict its routes in connection with the Gainesville Midland Railroad on movements of paper and paper products (I. C. C. I&S Docket 6415). Following consideration of evidence and testimony filed last year under the modified procedure plan, the Interstate Commerce Commission in March of this year issued its order in this proceeding finding the proposed routing restrictions to be not just and reasonable and ordered such restrictions cancelled. The Southern Railway System sought recon sideration of the decision and the Gainesville Midland Railroad and the American Short Line Railroad Association sought clarification of the order and \he proce eding was reopened. On September 13, the Interstate Commerce Commission issu ed its further order in this Docket reaffirming its previous decision and clarify ing that decision to require that the Gainesville Mildland Railroad be allowed to participate in joint routes with the Southern Railway System in the newly estab lished reduced "incentive" rate adjustment on paper and paper products to the same extent it had participated in the previously effective rates on those com modities. The Southern Railway System sought reconsideration of the order of September 13, but such reconsideration was denied by the Interstate Commerce Commission.
As discussed in our 1955 report we joined last year with the other Southern States in initiating complaint before the Interstate Commerce Commission at tacking as unreasonable the railroad rates on grain and grain products to, from and between points within the South.
After conferences early in the year with the representatives of the other Southern States and with represntatives of the interested shippers, it was decided to request the Interstate Commerce Commission to assign our complaint for hear ing before the beginning of the grain season and in accordance with that request the first hearing was assigned for May 9 in Atlanta with further hearings being set for later dates at Kansas City, Missouri and Chicago, Illinois.
The hearing in Atlanta lasted for seven days during which representatives of the Southern State Commissions presented the major part of our exhibits and testimony seeking to justify the through one factor rates based on 1 7 of the Docket 28300 first class rates. Subsequent to this hearing further hearings were
52

assigned for Kansas City, Missouri on September 17, Minneapolis, Minnesota on October 22 and Chicago, Illinois on October 29. Further evidence and testimony were presented a t these hearings on behalf of the Southern States and except for some further cross-examination of our cost accountant witness our presenta tion has been completed. Representatives of the Southern States, including Geor gia, have made a full and comprehensive showing in this complaint case and we are very hopeful of obtaining in the near future the relief from the high level of railroad grain rates which has been so detrimental to the southern grain indus try.
1956
UTILITY DIVISION
GENERAL
While no major formal rate application were filed with the Commission dur ing 1956, the staff processed 21 rate increase applications for independent tele phone companies and co-operatives. During the same period, 26 security issue and loan applications were processed to enable these operating agencies to expand and modernize facilities in order that the citizens of Georgia might receive better telephone service. There were 4 security issue applications for electric companies, 4 for gas companies, plus 5 rate increase applications and 3 security applications for transit companies operating in the state. All applications were heard and decisions reached by the Commission during the year. These formal cases, to gether with 117 Certificates of Public Convenience and Necessity for telephone and gas companies, totaled 180 for the year 1956 as compared to only 13 in 1946.
During the year 1956, utility service complaints decreased somewhat over the previous year. This was due in part to absence of strikes in the utility in dustry and to the fact that the consumers are receiving improved utility service.
The Commission has for many years received complaints on an informal basis through letters, telephone calls and personal visits. These complaints are handled promptly by the Customer Service Unit of the Engineering Section. After an investigation of the factors involved, the complainant is then given a report concerning his particular problem. The majority of the complainants were satisfied. Those not satisfied with the staff report are invited to file a formal complaint against the utility, wherein all the facts are stated and the Commission dockets the complaint for hearing if found justifiable. Investigations are conduct ed by trained engineers who use complex testing equipment to determine the accuracy of electric and gas meters, adequancy of gas pressure and delicate telephone instruments are used to measure the character of telephone service all over Georgia. To accomplish the work required of the Service Unit, it was neces sary to travel more than 50,000 miles in practically all of the 159 counties. A summary of the work handled in the Utility Customer Service Unit is tabulated below.

Summary of Informal Complaints

General Classification

Telephone

_____

No. of Letters ___ ____ 1120

53

Electric --- --------- --------- --- -------- ---- 1^7

Gas ____r----- -------- -------

, 145

Total __- -------------------------- -- 1392
In addition to correspondence, many requests for assistance are telephoned in to the staff by complainants. A tabulation of these cases satisfied during 1956 follows:

General Classification

No. of Informal Cases Satisfied

Telephone -- ---- ------------- -------- ----- ---------- -- ^30

Electric,-------------- ----- ------ ---- 10T Gas ---- -------- ---------------------------- ------ ----------- 107

Total ____ -588

As can be seen from the foregoing, the work load on the small staff of two engineers, two auditors and three stenpgraphers has been heavy and is increasing. I
In several recent applications before the Commission for authority to issue and sell long term debt securities it was noted that the commitment to purchase | the issue and the mortage indenture contained restrictions on the call of the issue for redemption in the event redemption was to be accomplished with funds | obtained at a lower rate of interest. These restrictions were in the form of special call premiums, or stipuated that ho redemption could be made within a certain period of years. Cost of capital is a significant factor in the determination of a fair rate of return and the rates for utility service paid by the public. Since any restriction on the calling of bonds for redemption where a lower rate of interest, i. e., cost of capital, can be obtained is contrary to the public interest, the Com- | mission on February 28, 1956 issued a statement of policy and notice regarding such restrictive provisions in bond indentures. While recongnizing that a reason- | able premium is appropriate were a bond issue is called in advance of maturity, I the Commission ruled that it would not authorize restrictive indenture provisions I which would act to prevent the utilities of Georgia from obtaining the lowest cost I of capital consistent with good business management.
On April 25, 1956 the Commission issued its General Order in Docket No. 1604-A, revising the rules and regulations governing customers deposits with gas and electric utilities. The revised rules provide for the payment of interest at the I rate of 4%% per annum with payments of interest on said deposits to be made | at any time upon application of the customers, but not more than once a year.

TELEPHONE UTILITIES
There was remakable growth of telephone facilities in Georgia during the year 1956. The number of telephones increased from 88,00 to 96,00 for the in-1 dependent companies operating 203 exchanges. The number of magneto exchanges declined from 40 to 30, thus indicating more modern facilities being made avail-1 able in Georgia. During the same period, Southern Bell, which operates 133 ex- | changes, increased the number of telephones from 731,392 to 790,436. The coin-1

54

pany expended considerable effort and funds in reducing the number of held applications for service as well as requests for a better grade of service. During 1957, the last 3 remaining magneto exchanges will be converted to automatic dial operation.
A substantial number of rate applications were filed with the Commission during the calendar year 1956 by independent telephone companies. The applica tions requested authority to adjust rates for telephone service in order to provide revenues sufficient to meet the increased cost of rendering that service. Increased revenues from the rates proposed by the applicants amounted to $212,824 per annum. Rates authorized by the Commission produced increased revenues of $130,572 per annum. In addition, Southern Bell Telephone and Telegraph com pany filed an application with the Commission wherein authority was requested to increase certain installation, connection and change telephone charges to a level deemed more commensurate with the actual cost of performing such ser vices. Gross revenues due to the proposed increased charges were estimated to increase some $650,000 per annum. After the effect of income taxes on the in creased gross revenues net revenues were expected to provide additional net rev enues to the Company of approximately $300,000 per annum. The Commission determined that the proposed increased charges were fair and reasonable. There fore, the authority requested by the Company was approved by the Commission. In addition to the foregoing applications, there were 8 orders published by the Commission regarding applications filed by REA financed telephone companies and cooperatives werein authority was requested to establish rates for telephone service following the construction of and the expansion of a modern dial tele phone system by each applicant. Annual local service revenues from th rates pro posed in these applications amounted to $413,386, while annual local serve revenues from the rates proposed in these applications amounted to $413,386, while annual local service revenues from rates authorized by the Commission amounted to $325,413.
As a result of a continued large construction program by independent tele phone companies in Georgia, a substantial number of applications for authority to obtain loans and issue securities were filed in 1956. There were 26 orders of the Commission issued rendering decisions with regard to applications of this kind wherein independent telephone companies in Georgia were authorized to obtain loans and issue securities in the total amount of $7,610,000. Of this amount some $3,790,000 was authorized to be borrowed from the Rural Electrification Admin istration, Washington, D. C. in order that certain urban and rural areas in Georgia would be provided with telephone service rendered over modern dial systems.
Following several conferences held during 1955 and 1956 in the Commission's hearing room with the independent telephone companies being represented, where in revised annual report forms prepared by the Staff of the Commission were dis cussed in detail the Commission determined that, since the proposed reports forms were for the specific purpose of providing more complete and exact fin ancial data for the use of the Commission, and since the data requested in the report could be readily obtained from the general books of a telephone company if such books were maintained in accordance with the prescribed Uniform System of Accounts, the new annual report forms shall be used by telephone companies
55

for filing their annual reports to the Commission. Therefore, on June 7, 1956 the

Commission ordered, and all telephone companies were so advised, that for the

calendar year ended December 31, 1956 and for each calendar year thereafter,

Classes A and B telephone companies, as defined in the prescribed Uniform

System of Accounts, shall file their annual report to the Commission on Georgia

Public Service Commission Annual Report Form No. 52 which report is an adap

tation of the "Form M" report currently used by the Federal Communications

Commission. It was further ordered that for the calendar year ended December

31, 1956 and for each calendar year thereafter, unless otherwise ordered, Classes

C and D telephone companies, as defined in the prescribed Uniform System of

Accounts, shall file their annual report to the Commission on Georgia Public

Service Commission Annual Report Form No. 53.

,

TELEPHONE CERTIFICATE ORDERS ISSUED

Name of Utility

Type of Order Date of Order Docket No. Amend. Acq. - New Exchange

Atlas Utilities Co.

10-11-56 1015-U

Southern Bell Tel & Tel Co. 10-11-56 1020-U

X

Southern Bell Tel & Tel Co. 10-11-56 1019-U

X

Southern Bell Tel & Tel Co. 10-11-56 1018-U

X

Southern Bell Tel & Tel Co. 10-11-56 1017-U

X

Southern Bell Tel & Tel Co. 10-11-56 1016-U

X

Southern Bell Tel & Tel Co. 10-24-56 1039-U

X

Southern Bell Tel & Tel Co. 10-24-56 1040-.U

X

Standard Telephone Co.

10-24-56 1038-U

X

Seminole Tel. Co., Inc.

11- 1-56 776-U

X

Seminole Tel. Co., Inc.

11- 1-56 777-U

X

Seminole Tel. Co., Inc.

11- 1-56 775-U

X

Wilkinson County Tel Co., Inc 11-21-56 717-U

X

Wilkinson County Tel Co., Inc 11-21-56 715-U

X

Southern Bell Tel & Tel Co. 11-28-56 1084-U

X

Plant Tel & Power Co., Inc 12-14-56 1087-U

Total Amendments --------- ---------- --------- ----- 92 Total Acquisitions-----,------- ----------------------- ------22 Total New Exchanges -- _*------------- ------------------ 2

Grand Total -------- --------------------- --116

The Telephone' Certificate Act as passed by the General Assembly in 1950 has been found to be most helpful to the public as well as the Commission, and I has precluded any duplication of facilities. One important feature of the Act provides that certificates must be obtained by any person, firm or corporation before any line, plant or system or extension thereof can be made. Also a certifi- I cate must be obtained before any person can acquire ownership of or control, | either directly or indirectly, any operating company. This results in formal ap- I plications being filed and, after hearing, the Commission can either approve or I disprove said application which, in effect, gives the Commission the power j

56

to keep unqualified persons from acquiring telephone properties that would not be in the public interest.
Many problems have arisen in the administration of the certificate law and one in particular relating to boundary lines between exchanges is more pronounc ed than others. This is due to the fact that as municipalities expand, exchange certificate boundary lines become closer to each other, thus making facilities appear available from another exchange which often times involves two or more different companies. Applicants in some cases desire and insist on being served from Southern Bell or desire to be connected to the county seat of the county regardless of the exchange area in which he lives. Others do not desire service to the county seat but to a larger city which is the trade area. All of these com plaints are carefully investigated but it has not been possible to satisfy all be cause of certain circumstances involved in making boundary changes. A large portion of the engineering staff's time is devoted to checking certificate area maps for accuracy, as well as encroachment on another company, analysis of applications and preparation of formal orders, the latter being tabulated herein.
GAS UTILITIES
The continued increasing demand for natural gas in Georgia, which has, in turn, produced the fastest rate of expansion of facilities in the history of our gas utilities, resulted in all but one of these utilities making application to the Commission for authority to obtain substantial amounts of new capital funds to keep pace with the public demand for service.
During the year 1956 authority was granted to:
(a) Gas Light Company of Columbus to issue $1,250,000 princial amount of First Mortgage Bonds bearing interest a t 4% per annum, and 25,000 shares of its $5 par value Common Stock at a price of $12 per share.
(b) South Atlantic Gas Company to issue $1,125,000 Principal amount First Mortgage Bonds and $375,000 principal amount of Serial Notes both bearing interest at 4%% per annum, and 30,000 shares of its $5 par value Common Stock at a price of $12.50 per share.
(c) Atlanta Gas Light Company to issue $5,000,000 of its F irst Mortgage Bonds bearing interest at the rate of 4% per annum, and 88,280 shares of its $10 par value Common Stock at a price of $25.50 per share:
(d) Georgia Gas Company to issue $250,000 principal amount of sinking fund debentures bearing interest at the rate of 6% per annum.
4 These issues were required to finance plant expansion in excess of $10,500,000 in the respective service areas of the Companies.
The 1956 Session of the General Assembly passed an Act requiring that no person shall construct or operate in intrastate commerce within Georgia, any pipeline or any distribution system or any extension thereof, or sell from such pipeline or acquire ownership or control of such pipeline or distribution system, either directly or indirectly for the transportation, distribution or sale of natural
57

gas without first obtaining from the Commission a certificate of public conven-1 ience and necessity.
Subsequent to the passage of the Act the Commission's staff began im-1 mediately to design rules and regulations governing the issuance of certificates I of public convenience and necessity to gas utilities.
Following conference with interested parties, and after careful considra-1 tion, the Commission on May 28, 1956 approved rules and regulations as follows: I
In Re : Rules and Regulations governing issuance of Certificates of Public [ Convenience and Necessity to gas utilities as required by law
BY THE COMMISSION:
WHEREAS, Pursuant to an Act of the General Assembly of Georgia approv ed on February 17, 1956, on March 22, 1956 a t the direction of the Commission, | proposed rules and regulations governing the issuance of Certificates of Public | Convenience and Necessity were served on all gas utilities operating under the I jurisdiction of the Commission, and
WHEREAS, on March: 30, 1956 a conference was held in the Commission's hearing room with the utilities being represented, wherein the proposed rules and regulations were discussed in detail, resulting in a number of changes being adopted at the recommendation of the conferees, and
WHEREAS, on April 20, 1956 a revised draft of the rules and regulations was sent out to all gas utilities requesting that any further comments or objec tions be filed not later than May 1, 1956, and
WHEREAS, no further comments or objections have been received by the Commission, it is therefore
ORDERED: That the following rules and regulations be and the same are hereby adopted by the Commission:
RULE 1.
Definitions
Terms used in these rules have the following meaning:
"Applicant"-Any person who requests the issuance of a certificate to con struct, acquire, or operate any gas pipeline or distribution system, or exten sion thereof pursuant to the provisions of the Act approved February 17, 1956, Georgia Laws, 1956.
"Certificate"-Certificate of Public Convenience and Necessity issued by the Commission to any applicant as provided by said Act.
"Commission"-Georgia Public Service Commission.
"Distribution System"-The coordinated facilities including mains, services, regulators, meters and other facilities (including peak shaving, or production
58

plant) which, are used or are propsed to be used to distribute natural or manu factured gas to the public.
"Pipe Line"-The pipe used or proposed to be used for the transportation of natural or manufactured gas in intrastate commerce within the state from point of supply to each point of delivery of gas either to ultimate consumers, or tc others for distribution and resale. Pipe Line includes such compressor equipcent, regulator stations, measurement or metering stations, and other facilities as are associated with the pipe line.
"Facilities"-All property, means and instrumentalities owned, operated, leas ed, licensed, used, furnished, or supplied for, by or in connection with the rendi tion of natural or manufactured gas service to the public.
"Person"-Any corporation, public or private, company, person, partnership, firm, or association, excepting only those municipal corporations and counties of this state whose facilities are located wholly within their own county.
"Plant"-Property which is necessary to provide service to the public as set forth in the various fixed capital accounts of the Uniform System of Accounts for Gas Utilities prescribed by the Commission.
"Service"-The act or means of supplying natural or manufactured gas to the public.
"Utility"-Any person as herein defined engaged in the transmission or dis tribution of natural or manufactured gas in intrastate commerce within the State of Georgia.
RULE 2.
No person shall construct or operate in intrastate commerce except as quali fied within this Rule 2, any natural or manufactured gas pipeline or distri bution system, or any extension thereof, or acquire ownership or control thereof, either directly or indirectly, without first obtaining from the Commission a certi ficate that the present or future public convenience and necessity require, or will require, such construction, operation or acquisition. Any person engaged in the construction or operation of any line, plant, or system, or any extension thereof as of February 17, 1956 shall be entitled to receive a certificate for the terri tory being served by such person on February 17, 1956 upon proper proof that such applicant is providing reasonably adequate service, if application therefor is made prior to February 17, 1957.
When the distribution system of a municipal corporation extends or is to be extended beyond the limits of the county in which the municipal corporation is located, or when the distribution system of a county extends or is to be extended beyond the limits of such county, a Certificate must be obtained from the Com mission with respect to all such facilities located or proposed to be located beyond such county limits.
When the pipe line of a municipal corporation extends or is to be extended outside the limits of the county in which the municipal corporation is located, or when the pipe line of a county extends or is to be extended outside the limits of
59

such county, a Certificate must be obtained from the Commission for such pip line if gas service is rendered or gas deliveries are made to others outside thi limits of such county.

RULE 3.
All applications for a certificate of public convenience an.d necessity must be in writing, properly authenticated. Application for authority to construct oi acquire additional facilities shall set forth in the order indicated the following, incorporating any data already on file with the Commission by reference :

(1) The exact legal name of the applicant: if the applicant is a corpora tion, the state or territory under the laws of which the applicant was organized, the location of the applicant's principal place of business, the names of all states where the applicant is authorized to do business; and a concise but comprehensive discretion of the existing business, operations and properties of the applicant with particular reference to the transportation, distribution and sale of natural or manufactured gas.

(2) The name, title and post-office address of the person to whom corres pondence or communications in regard to the application are to be addressed; and,
unless advised to the contrary, the Commission will serve notices, orders, and other papers upon the person so named.

(3) A brief but accurate description of the project or facilities for which
a certificate is sought and the dates on which it is intended to begin and com plete construction or acquisition.

(4) A statement setting forth the service proposed to be rendered by ap plicant, showing communities, proposed to be served, with the population of each,
mam line industrial customers sales or interchange with other utilities, and any other service. In describing such other service, furnish the name of any other utility rendering service within any county in which any community or customer to be served by applicant is located, together with a general statement of per tinent facts as to the extent and nature of such existing service, specifying whether such other utility is serving natural or manufactured gas.
(5) A description of the facilities proposed to be constructed, acquired, or operated, giving, in so fa r as such information may be pertinent, the size, capa city, length and location of pipelines and laterals; the extent of distribution systems; the location, rated horsepower and capacity of all compressor stations; the location and description of other important property units; a description of the proposed manner or method of operating said proposed facilities, including proposed operating pressures, the capacity of the proposed facilities, estimates of maximum and minimum day demands, and any other pertinent facts showing that such facilities will be capable of performing adequately the service which appli cant proposes to render. In connection herewith the applicant shall furinsh:

1

6 meatmS the S1Ze and location of applicant's proposed pipe lines,

or distribution system, the communities to be served, the points of connection

with existing facilities and the location of points of gas supply to be utilized

m connection with the proposed facilities;

(ii) A statement setting forth all contracts for the construction, purchase

60

or lease of the proposed facilities and giving the affiliation, if any, between applicant and any other party to said contracts.

(6) A statement of the source of gas, together with contracts therefor, which is to supply the market which is proposed to be served.

(7) A statement setting forth all facts bearing upon economic feasibility including:

(i) The estimated total overall capital cost of the proposed extension or acquisition, including all expenditures involved in the construction or acquisi tion of the proposed facilities, proposed cost of financing, working capital, and other incidental costs, amount of engineering and contracting fees to be paid and a brief statement of applicant's proposed plan of financing.

(ii) A detailed statement of the extent to which such plan is supported by firm or contingent commitments from all financial sources, including com mitments from banks, trust companies, insurance companies, investment bankers, steel companies, pipeline supply companies and other sources.

(iii) A statement showing: (a) estimates of total revenues expected from the proposed new facilities to be constructed, acquired or operated, (b) total fixed charges, (c) total operating expenses.

(iv) A general statement covering the rates proposed to be charged by applicant for each kind of natural or manufactured gas services proposed to be rendered, and the expected sales, revenues, average revenue per MCF and average revenue per therm to be derived therefrom.

(8) A general description of the proposed method of supervising the opera tion of the proposed project, including reference to any relevant service or man agement contracts, existing or contemplated.

(9) A statement of any other facts and circumstances upon which applicant relies to establish that present or future public convenience and necessity requires the new construction, acquisition or operation of such facilities.

Note:

Wherever volumes of gas are mentioned in an application or an exhibit later filed, such volumes shall be computed upon a uniform pressure base and such pressure base shall be clearly set forth therein.

RULE 4.
Notice of Application. Applicant shall serve a copy of the application on the Mayor and Council (or equivalent city governing body) of the city within the corporate limits of which service is proposed to be rendered, and a certificate of such service shall be appended to all copies of the application itself. Service may be by mail unless otherwise ordered by the Commission.
When the application has been assigned for hearing applicant must publish notice of the time, place and purpose of the hearing once a week for three conse>
61

cutive weeks in a newspaper of general circulation in each territory affected, and! evidence of such publication must be submitted a t the hearing.

Notice of the application and scheduled hearing thereon will be given by i

the Commission to the chief executive officer of the municipality or municipalities <

affected and to each holder of a gas certificate of public convenience and neces-[ 1

sity.

1

The Commission in its discretion may waive notice and hearing of applica-1 tions for certificates covering territory served on February 17, 1956.

RULE 5.
A verified original and five conformed copies of the applications for Cer-1 tificates of Public Convenience and Necessity shall be filed with the Commission. If the applicant is a corporation, a certified copy of its articles of incorporation I and amendments thereto shall be annexed to the application unless otherwise | on file with the Commission.

RULE 6.
Certificates will be issued by the Commission in two forms, viz., "Pipe I Line" and "Distribution System", and a separate application must be filed fori each type certificate. A "Distribution System" certificate authorizes the acquisi-| tion or construction and operation of an integrated gas distribution system, in- i eluding all areas served therefrom. "Pipe Line" certificates are required for auth-l orization to acquire, operate or construct any natural or manufactured gas pipe lines, within the State of Georgia.

RULE 7.
A separate application shall be filed for each distribution system for which I a certificate is desired, and except as follows, a certified copy of any franchise I held for the area proposed to be served shall be attached to the application. If no franchise is held, this fact must be stated. The Commission will not require I the filing of a franchise for territory served on February 17, 1956.
RULE 8.
Applications for "Grandfather Clause" certificates covering facilities in j service and extent of service provided as of February 17, 1956 shall contain a description of the area, territory or location which applicant serves, and a map | or maps shall be annexed to the application on which is clearly shown the area, I pipeline, or territory for which a certificate is requested.

Applications for a certificate covering facilities in service and extent oi service provided as of February 17, 1956 shall not include proposed construc tion or extension of plant outside of the requested service area. Such new ter ritory applications shall be filed separately.
62

id

RULE 10.

"Distribution System" certificates will be issued defining certificated areas, by and no further authority to construct, extend or enlarge facilities within said
esI certificated areas need be obtained from the Commission by the certificate holder,
!S-1 but certificates may be amended by proper application to extend or enlarge a I certificated area.

a`[

RULE 11.

No certificate may be transferred or hypothecated or leased except upon [ application to and approval by the Commission.

r` I

RULE 12.

n' I

n I Certificates will be issued by the Commission without charge and no utility

38j shall capitalize on its books any value or amount for such certificates, and in

! rate proceedings the Commission will not allow any value in the rate base repre

senting an alleged certificate value. Reasonable expenses incurred by a utility

may be charged to operating expenses.

)el

RULE 13.

)|r| II

The applicant for a certificate to serve an area shall select an area which

n-e can and should be developed as a unit. When a certificate is held for any area

h- it is the responsibility of the certificate holder to provide the service require-

)eI ments within that area, subject to the terms and conditions of the Rules and

Regulations of Company and/or its rate schedule on file with the Commission. The

application for a "Distribution System" certificate for one city or community area should not include any other incorporated community area, except only where two

or more contiguous incorporated areas are served or are to be served from a single

:hI integrated distribution system.

361 RULE 14.
:e I Participation at hearings on certificate applications will be limited to

parties with a real interest, viz., those who propose to serve the area in question

both the applicant and any others, or those who are authorized or delegated to

represent the public or consumers in some way. Objections, or protests concern-

inI ing an application shall be made in writing setting forth the reason, nature, and

a extent of the objection, or protest and such to be filed with the Commission and

pI served on the applicant a t least 5 days in advance of the scheduled hearing on the

i, I application. Generally participation in the hearing as a separate party will not

be allowed to those whose interest is neither th at of a public utility proposing to

establish or extend gas service, nor that of a representative of the public or

[ gas consumers.

p2 p5

*4

RULE 15.

The Commission may at any time after notice and opportunity to be heard I , and for reasonable cause suspend, revoke, alter or amend any certificate if the

63

holder of the certificate has wilfully violated or refused to observe any of the! lawful and reasonable orders, rules or regulations prescribed by this Commission, or any other law of this state regulating these pipe line or distribution systems, [ if in the opinion of the Commission the holder of the certificate is not furnish ing adequate service, or if the continuance of said certificate in its original form is incompatible with the public interest.

RULE 16.
The applicant shall supply the Commission with any such additional infor-1 mation or data as may be found necessary in order for the Commission to render aj fair and equitable decision in issuance of certificates.

RULE 17.

The Commission may waive these rules or permit deviations therefrom in soI fa r as it may find compliance therewith to be impossible, impracticable, to work an undue hardship, or contrary to public interest, and these rules may hereafter | be amended at any time by the Commission.

BY ORDER OF THE GEORGIA PUBLIC SERVICE COMMISSION, this! the 28th day of May, 1956.

A. 0. RANDALL, Secretary

MATT L. McWHORTER, Chairman

Inasmuch as there was some doubt as to whether or not municipal corpor-1 ations with gas distribution facilities or pipeline systems were subject to theI jurisdiction of the Commission, an opinion was requested of the Attorney General I which in effect stated that where the municipality had facilities beyond the I county in which the municipal corporation was located, that said municipalities I were subject to the jurisdiction of the Commission the same as any other utility. I

The first of the applications received by the Commission for a certificate of c
public convenience and necessity was from Mid-Georgia Natural Gas Company for j
authority to provide facilities for Danielsville, Comer and Colbert in Madison County. This certificate application was heard on September 13, 1956 and ap- I proved by the Commission on September 25, 1956. On November 14 a large num- i ber of applications for certificates were assigned for hearing, these applications | being filed by a number of municipalities, the Atlanta Gas Light Company, South [ Atlantic Gas Company, and Mid-Georgia Natural Gas Company.

On November 8, 1956 a hearing was held on the application of the Georgia I Coastal Natural Gas Corporation for authority to bring natural gas service to | some 24 counties in southeastern Georgia, the only major section of the state pre- r sently without natural gas service. The company proposes to construct a pipeline | some 422 miles in length. Said pipeline is to tap the Southern Natural Gas Com-1 pany interstate pipeline at a point near Milledgeville, Georgia. This application |
was strenuously contested by certain other competing gas companies which have I filed mutually exclusive applications. These applications are scheduled to be I heard in January 1957.

64

ELECTRIC

)n't

The two major electric utilities of our state, Georgia Power Company and

"M Savannah Electric and Power Company, have continued to experience an unprec-

5M edted growth. These companies have budgeted for construction alone some $41,-

lal 000,000 and $6,400,000. respectively, for the year 1956. In order to help provide

the vast amount of capital necessary to complete these programs the Commission

has authorized Georgia Power Company to issue and sell $12,000,000 principal

amount of F irst Mortgage Bonds bearing interest at the rate of 3 5/8% per

annum, and to issue 25,000 shares of its $100 par value Common Stock to be

)r`| sold to its parent company at par; and authorized Savannah Electric and Power

ra Company to issue and sell $4,500,000 principal amount of its First Mortage

Bonds bearing interest at the rate of 3 7/8% per annum.

The only other major electric utility in Georgia is the Georgia Power and

Light Company. This company provides electric utility service in some 20 counties

I along the southern border of our state. There is no water power available in the

^ area and the company does not own any major generating facilities. It has, there-

I fore, been necessary for Georgia Power and Light Company to purchase substan

tially all of its energy requirements from its parent company, Florida Power

Corporation. There is no coal available at a reasonable price in Florida, and

jjst Florida Power Corporation has for years used oil as its major source of fuel. Since

this is in itself a relatively high cost fuel, this company's production costs have

been substantially higher than those of Georgia utilities. This has in turn caused

anI the rates for electric service of Georgia Power and Light Company to be sub

stantially higher than its neighboring Georgia utilities, Georgia Power and

,r' I Savannah Electric and Power Company.

he I

.

]l

This Commission has joined with others over a period of approximately 20

I years in seeking as a spur to industrial development and the meeting of other

jeJI economic needs of the area, to obtain a level of rates for Georgia Power and

I Light Company's customers more in the line with the level of ratesof Georgia

Power Company. This endeavor to bring about uniformity in electric rates in

of r the territory serviced by the two companies has been greatly Complicated and, in

or I fact) to date made impossible by their divided ownership.

After lengthy negotiation, on November 9, 1956 the Georgia Power Company 'P` [ filed an application with the Commission requesting authority to borrow up to
l $11,000,000 from banks for the purpose of purchasing all of the assets, properties, "f I and business of Georgia Power and Light Company, and to assume substantially 1 | all of Georgia Power and Light Company's liabilities, including its outstanding
First Mortage Bonds amounting to $7,705,000. This application was approved on J December 3, 1956. The attainment of the Commission's regulatory policy of uni' j form rates in the areas now served by the two companies will be made possible by
the intergation of the facilities in the two areas into a single operation under the ownership of Georgia Power Company. However, due to the inability of
I Georgia Power Company to immediately provide energy capacity to serve this I added new territory it will be forced to continue to purchase rather substantial j amounts of energy from Florida Power Cooporation for a period of approximately be I ^ yetrs. On or before that date uniform rates will be established throughout the
entire area served by the company.

At the close of the year this Commission was actively participating in the

65

proceedings before the Securities and Exchange Commission and the Federal 2

Power Commission urging approval of the acquisitions.

b

Mass production is just as applicable to the reduction of cost of electric 2

utilities as it is to our manufacturing industries. Also, the major production ex- (

pense of an electric steam generating plant is the cost of fuel. These two con C siderations have led Georgia Power Company to join with its affiliate Alabama e Power Company, to form the Southern Electric Generating Company. The Com 1 mon Stock of this company will be owned equally by Georgia Power Company t] and Alabama Power Company. This company will construct a new steam electric 1 generating plant on the Coosa River in Alabama with an inital installation of a 500,000 kilowatts to be completed by 1961, and a final installed capacity upward

of 1,000,000 kilowatts by the end of 1963. This plant will be located immediately

adjacent to a large coal field to eliminate freight charges, which in many points

in Georgia constitute over half of the delivered cost of coal. It is estimated that

this one factor alone will save Georgia rate payers in excess of $3,200,000 annual

ly.

'

On June 12, 1956 the Commission approved the initial sale of 10,000 shares ti of the Common Stock of Georgia Power Company to provide funds for the pur 2 chase of a like number of shares of Southern Electric Generating Company. t] These funds together with a similar purchase by Alabama Power Company will 1

provide for the initial engineering cost of the generating company. This plant

together with additional facilities now under construction at Plant McManus, n

Brunswick, Georgia will be the principal sources of energy for the service area ei

acquired from Georgia Power and Light Company.

si

t]

TRANSIT UTILILTIES

fi

On January 5, 1956 Atlanta Transit System, Inc. applied for authority to a

purchase 6 new Diesel buses from General Motors Corporation. These buses were

estimated to cost some $100,000. In payment therefor the Company also requested authority to execute a note in the amount of $100,000 which would be repayable ! in 24 equal quarterly installments and to execute and issue a bill of sale to secure the indebtedness. The authority requested was approved by the Commission on January 11, 1956.

On March 10, 1956 Bibb Transit Company filed an application with the

Commission requesting authority to increase fares for transit service in Macon,

Georgia. This application was predicated upon a substantial decline in passengers

and the need of additional revenues required to eliminate current operating losses, i

The present fares and the fares proposed by the Company were as follows:

oj

tl

*

Present

Proposed

f<

Fare

Fare

f]

Cash Fare ______ ___________ 15c

15c

di

Adult Token F a r e ___________ 4 for 45c 5 for 65c

f<

School Token F a r e ________ _ 10 for 75c 10 for $1.00

C

Transfer-Other than school_____ lc

lc

1!

After careful consideration of this matter the Commission determined that the Company had justified the need for an increase in fares. Therefore, on March tc

66

20, 1956 the fares requested by the Company in its application were approved i by the Commission and ordered to be made effective with first operation on March
21,1956.

On May 1, 1956 Savannah Transit Company filed an application with the Commission requesting authority to increase fares charged for bus service rend ered by th at Company. This m atter was heard before the Commission on May 23, 1956. This application was predicated upon a substantial decline in passengers and the need of additional revenues required to eliminate current operating expenses. 1 The present fares and the fares proposed by the Company in its application were as follows :

Cash Fare 2_______ ___ -______________

Present $ .10

Proposed $ .12

Token Fare __________________________ 5 for .45 3 for .30

Children's and School Child's Fare______ 20 for 1.25 20 for 1.50

After careful consideration of this m atter the Commission determined that the Company had justified the need for an increase in fares. Therefore, on June 25,1956 the fares requested by the Company in its application were approved by
the Commission and ordered to be made effective with first operations on July 1, 1956.

Atlanta Transit System, Inc., filed an application with the Commission requesting authority to eliminate the sale of tokens a t a reduced rate, and to I establish 10c including sales tax as the minimum school fare. A continuing pas senger decline and increased wage and other operating costs were the basis for I the fares proposed in the application. According to the application the present ! fares and the proposed fares for those classifications of transportation affected are as follows:

Present Cash Fare __________ _____ ' 15c Token Fare _________ ____ 4 for 55c School:
Regular Buses ___ .............5c Special Buses ......... ...______ 10c

13% Proposed
15c 15c
10c 10c

All other fares presently charged to remain in effect without revision.

The revised fares were estimated to produce an increase in gross revenues of approximately $324,200 per annum after sales taxes. The evidence indicated that this increase was necessary to offset wage increases of $305,000 in the pro forma year, and to offset a net increase of some $25,000 per annum resulting from numerous relative minor operating expense adjustments. The Commission determined that the Company had justified the need for a fare increase. There fore, on July 12, 1956 the fares proposed by the Company were approved by the | Commission and ordered to be made effective with first operations on July 18, 1956.

On July 12, 1956 the Commission authorized the Savannah Transit Company to enter into standard conditional sales contracts with General Motors Corpora-

67

tion for the purchase of 10 motor coaches a t a price of approximately $179,606.1 Said contracts to require 20% down payment with the balance payable in 60 equal I monthly installments bearing interest at the rate of 3 l / 2 % per annum.
On August 17, 1956 Columbus Transportation Company filed an application! with the Commission requesting authority to increase school token fares from! 5 tokens for 25c to 10 tokens for 75c. Increased wage costs and a continued! loss in the number of passengers carried was the basis of this request. After! careful consideration of the m atter the Commission on August 21, 1956 granted I the Company its request for increased fares such to be effective at 12:01 A.M. | on September 1, 1956.
On July 23, 1956 Georgia Power Company filed an application with the! Commission requesting authority to increase its token bus'fares from 2 for 25c to 8 for $1.00 also to increase its school children token fares from 10 for 50c to 10c each for such transportation service in Rome, Georgia. This matter was heard before the Commission on August 9, 1956 a t which time the Company submitted! exhibits and witnesses testified in behalf of the application. After careful con sideration of the evidence and testimony presented a t the hearing the Commission concluded on August 23, 1956 that the Company's request was reasonable and should be granted. Therefore, the increased bus fares requested by the Company were ordered to be made effective a t 12:01 A.M. on September 1, 1956.
The Commission on October 11, 1956 authorized Atlanta Transit System, Inc., to give a note for the purchase of fifteen (15) General Motors Diesel buses, said note to be in the principal amount of $259,000 to bear interest a t the rate oil 5%% per annum on the unpaid balance and to be repayable in twenty-eight I (28) equal quarterly installments beginning December 31, 1956 and quarterly thereafter on the last day of March, June, September and December of each year until the full indebtedness is discharged.

GENERAL
The following orders were published by the Commission during 1956 regard ing major matters pertinent to Telephone, Electric, Gas and Transit Utilities in Georgia:
RATE MATTERS TELEPHONE

Name of Utility
Dalton Telephone Company___ Walker County Telephone Company
Summerville Telephone Company Thomaston Telephone Company _ Seminole Telephone Company __ Walker County Telephone Company Homerville Telephone Company___ Comer Telephone Company ...__ Dixie Telephone Company __ .... Farmers Telephone Company

Date of Order
' 1-11-56 . 1-11-56 . 4- 2-56 . 4- 2-56
4-18-56 .. 4-19-56 _ 5- 8-56 .. 5-28-56 _ 6-25-56 ... 6-25-56

Docket Number
898-U 900-U 908-U 922-U 907-U 900-U 902-U 947-U 949-U 961-U

68

Camden Telephone Com pany---------------- -- 7-12-56 Odtoiulgee Telephone Company ----------------- 7-12-56 Pineland Telephone Cooperative, Inc. -------- 8-27-56 Byron Telephone Company, Inc. -- -------- l-- 9- 6-56 Southern Bell Tel and Tel. Com pany-------- 9-25-56 Comer Telephone Company------ ----------- ----- 9-27-56 Gray-Haddock Telephone Company, Inc. ----- 10-25-56 Public Service Telephone Company ----------- 11- 1-56
Costal Utilities, In c .------ ^----------- ----------- H - 2-56 Milledgeville Tel. and Tel. Company ---- -----11-14-56 Douglas Telephone Company -----------------11-28-56 Plant Telephone and Power Company -------- 12-17-56

944-U 987-U
1003-U 1006-U 1027-U 1035- U 1024-U 1009-U
990-U 1036- U 1013-U 1093-U

ELECTRIC None

GAS None

TRANSIT

Name of Utility

Date of Order

Bibb Transit Company ---- ------------------------- 3-20-56 Savannah Transit Company--------------- ------- 6-25-56 Atlanta Transit System, In c .------------- --------- 7-12-56 Columbus Transportation Company ------------- 8-2-56
Georgia Power Company, Rome, Georgia ----- 8-23-56

LOAN AND SECURITY MATTERS

Docket Number
931-U 963-U 991-U None 998-U

TELEPHONE

Name of Utility

Canton Telephone Company -----------

Ellijay Telephone Company -----------

Southeastern Telephone Company --

Homerville Telephone Company

Seminole Telephone Company -- *--

Utelwico, Inc. ----

------

Dixie Telephone Company---------------

Western Carolina Telephone Company

Statesboro Telephone Company--------

Mutual Telephone Company -- --------

Alma Telephone Company --------- ---

Sikes Telephone Company ----------- --

Date of Order

Docket Number

2-23-56

911-U

2-

28-56 920-U

3-

20-56 923-U

5- 8-56

901-U

5-

28-56 837-U

6- 7-56

684-U

6-

25-56 948-U

7- 2-56

None

7-11-56

981-U

7-11-56

970-U

7-11-56

984-U

7-11-56

983-U

69

Southeastern Telephone Company _ __.___ 7-11-56

1Camden Tel. and Tel. Company_____ ____ 7-12-56

Ocmulgee Telephone Company ....________ 7-12-56

Wayne Telephone C om pany_j._____ __ 8-27-56

Pineland Telephone Cooperative, In c ._______ 8-27-56

Pineland Telephone Cooperative, Inc. ________8-27-56

Byron Telephone Company, Inc. ___ --____ 9- 6-56

Comer Telephone Company .

____

9-27-56

Planters Rural Tel. Coop., In c .___________ 10-25-56

Public Service Telephone Company ______i_ 10-25-56

Gray-Haddock Telephone Co., I n c . ___ .10-25-56

Southeastern Telephone Company________ 11-14-56

Milledgeville Tel. and Tel. Company________ 11-14-56

Plant Telephone and Power Co,, Inc. ______ 12-14-56

982-U 945-U 988-U 997-U 1010-U 1011-U 1007-U 1034-U 1041-U 1012-U 1023-IJ 1083-U 1037-IJ 1094-U

ELECTRIC
Georgia Power Company________________ 2-23-56 Savannah Electric and Power Company___ _ 4-25-56 Georgia Power Company _L1__ .___:_______ 6-12-56 Georgia Power Company_________________ 12- 3-56

917-U 934-U
967-U 1089-U

GAS
Gas Light Company of Columbus __________ 2- 8-56 South Atlantic Gas Company_____________ 3- 6 56 Atlanta Gas Light Company ______1______ 6- 7-56 Georgia Gas Company .... .--------1_ ___ 12- 3-56

906-U 921-U 966-U 1085-U

TRANSIT

Date of

Name of Utility

Order

Atlanta Transit System, Inc. _________ ;___ 1-11-56

Savannah Transit Company _____________7-12-56

Atlanta Transit System, I n c . _____________10-11-56

Docket Number
None None None

OTHER MATTERS

Telephone, Electric Gas and Transit
Name of Utility

Type of Order

Date of Order

All Utilities Restrictive Call Premiums

2-28-56

, Gas and Electric Rule re: Customer Deposits 4-25-56

Telephone

Re: New Annual Report Forms 6- 7-56

Docket Number
None
1604-A G-17(d)

70

TELEPHONE CERTIFICATE ORDERS ISSUED

Type of Order New

Date

Ex-

Name of U tility

of Order Docket No. Amend. ACQ. change

Dixie Telephone Co. Dixie Telephone Co. Dixie Telephone Co. Southern Bell Bel & Tel Co. Southern Bell Bel & Tel Co. Southern Bell Bl & Tel Co. Southern Bell Bel & Tel Co. Southern Bell Bel & Tel Co. Standard Telephone Co. Standard Telephone Co. Standard Telephone Co. Standard Telephone Co. Camden Tel & Tel Co., Inc. Camden Tel & Tel Co., Inc. Camden Tel & Tel Co., Inc. Camden Tel & Tel Co., Inc. Camden Tel & Tel Co., Inc. Camden Tel & Ti Co., Inc. Camden Tel & Tel Co., Inc. Ocmulgee Tel. Co. Consolidated TeL Co. Consolidated Tel. Go. Consolidated Tel. Co. Consolidated Tel. Co. Consolidated Tel. Co. Consolidated Tel. Co. Consolidated Tel. Co. Mutual Tel. Co., Inc. Mutual Tel. Co., Inc. Mutual Tel. Co., Inc. Southern Bell Tel & Tel Co. Southern Bell Tel & Tel Co. Southern Bell Tel & Tel Co. Pineland Tel. Coop., Inc. Pineland Tel. Coop., Inc. Pineland Tel. Coop., Inc. Pineland Tel. Coop., Inc. Standard Tel. Co. Byron Tel. Co. Comer Tel. Co., Inc. Comer Tel. Co., Inc. Comer Tel. Co., Inc. Comer Tel. Co., Inc. Comer Tel. Co., Inc. Comer Tel. Co., Inc.

6-25-56

956-U

X

6-25-56

955-U

X

6-25-56

954-U

X

7-11-56

975-U

X

7-11-56

976-U

X

7-11-56

977-U

X

7-11-56

978-U

X

7-11-56

989-U

X

7-11-56

974-U

X

7-11-56

973-U

X

7-11-56

972-U

X

7-11-56

971-U

X

7-12-56

943-U

X

7-12-56

942-U

X

7-12-56

941-U

X

7-12-56

940-U

X

7-12-56

939-U

X

7-12-56

938-U

X

7-12-56

937-U

X

7-12-56'

986-U

X

7-17-56

353-U

X

7-17-56

352-U

X

7-17-56

351-U

X

7-17-56

350-U

X

7-17-56

349-U

X

7-17-56

348-U

X

7-17-56

290-U

X

8-23-56

969-U

X

8-23-56

979-U

X

8-23-56

980-U

X

8-23-56

999-U

X

8-23-56

1000-U

X

8-23-56

1001-U

X

8-23-56

993-U

X

8-23-56

994-U

X

8-23-56

995-U

X

8-23-56

996-U

X

8-23-56

1002-U

X

8-23-56

1005-U

X

9-27-56

1029-U

X

9^27-56

1028-U

X

9-27-56

1030-U

X

9-27-56

1031-U

X

9-27-56

1032-U

X

9-27-56

1033-U

X

71

Progressive Rural Tel. Ccop, Inc. Progressive Rural Tel. Cooptine. Progressive Rural Tel. Coop, Inc. Progressive Rural Tel. Coop, Inc. Progressive Rural Tel. Coop, Inc, Weaverly Hall Tel. Co. Consolidated Tel. Co. Southern Bell Tel & Tel Co. Seminoie Tel. Co., Inc. Seminoie Tel. Co., Inc. Seminoie Tel. Co., Inc. Southern Bell Tel & Tel Co. Southern Bell Tel & Tel Co. Southern Bell Tel & Tel Co. Southeastern Tel. Co. Ga. Continental Tel. Co. Ga. Continental Tel. Co. Ga. Continental Tel. Co. Ga. Continental Tel. Co. Chickamauga Tel. Corp. Southeastern Tel. Co. Southern Bell Tel & Tel Co. Southern Bell Tel & Tel Co. Nicholls Tel. Co. Southern Bell Tel & Tel Co. Comer Telephone Co. Comer Telephone Co. Plant Tel. & Power Co., Inc. Plant Tel. & Power Co., Inc. Plant Tel. & Power Co., Inc. Plant Tel. & Power Co., Inc. Comer Telephone Co. Comer Telephone Co. Comer Telephone Co. Plant Tel. & Power Co., Inc. Homerville Tel. Co., Inc. Hawkinsville Tel. Co. Wayne Tel. Co., Inc. Southern Bell Tel & Tel Co. Southern Bell Tel & Tel Co. Southern Bell Tel & Tel Co. Standard Telephone Co. Nelson-Ball Ground Tel. Co. Cherokee Tel. Co., Inc. Cherokee Tel. Co., Inc. Cherokee Tel. Co., Inc. Cherokee Tel. Co., Inc. Atlas Utilities Co. Southern Bell Tel & Tel Co. Ga. Continental Tel. Co.

10- 5-56 10- 5-56 10- 5-56 10- 5-56 10- 5-56 1-19-56 1-11-56 1-18-56 2- 8-56 2- 8-56 2- 8-56 2-23-56 2-23-56 2-29-56 2-29-56 2-29-56 2-29-56 2-29-56 2-29-56 3- 6-56 3-28-56 3-28-56 3-28-56 4-12-56 4-12-56 4-25-56 4-25-56 4-25-56 4-25-56 4-25-56 4-25-56 4-25-56 4-25-56 4-25-56 4-25-56 5- 8-56 5- 8-56 5- 9-56 5- 9-56 5- 9-56 5- 9-56 5- 9-56 5- 9-56 5-28-56 5-28-56 5-28-56 5-28-56 5-28-56 6-14-56 6-14-56

822-U

X

821-U

X

820-U

X

819-U

X

818-U

X

682-U

X

290-U

X

904-U

X

778-U

X

777-U

X

776-U

X

909-U

X

912-U

X

919-U

X

910-U

X

913-U

X

914-U

X

915-U

X

916-U

X

765-U

X

926-U

X

924-U

X

925-U

X

930-U

929-U

X

Non Docket X

Non Docket X

793-U

X

792-U

X

791-U

X

789-U

X

Non Docket X

Non Docket X

Non Docket X

790-U

X

932-U

928-U

X

951-U

X

935-U

X

936-U

X

946-U

X

952-U

X

959-U

X

771-U

X

770-U

X

772-U

X

769-U

X

960-U

964-U

X

965-U

X

Chickamauga Tel. Corp. Trion Telephone Co. Milledgeville Tel & Tel Co. Dixie Telephone Co. Dixie Telephone Co.

6-25-56 6-25-56 6-25-56 6-25-56 6-25-56

764-U

X

968-U

786-U

X

958-U

X

957-U

X

Respectfully submitted, Matt L. McWhorter, Chairman Allen Chappell, Vice Chairman Walter R. McDonald, Commissioner James A. Perry, Commissioner Crawford L. Pilcher, Commissioner

73

f8
O
A I98O 30 33VJI32 M a i n
HOISSIMMOO

80TH REPORT OF GEORGIA PUBLIC SERVICE COMMISSION
TO HIS EXCELLENCY, GOVERNOR HERMAN TALMADGE:
As provided by law, the Georgia Public Service Commission submits herein its 80th Annual Report of the regulatory activities of the Commission for the year ending December 31, 1952.
The membership of the Commission remains unchanged since our last report, the Commission being constituted as follows:
Matt L. McWhorter, Chairman Perry T. Knight, Vice Chairman Allen Chappell, Commissioner Walter R. McDonald, Commissioner James A. Perry, Commissioner.
The Commission's Secretary, A. 0. Randall, continues in charge of motor carrier enforcehient but his official title has been changed by the State Merit Board to Executive Secretary and Legal Aide.
The only change in the staff of the Commission during the year was the employment of Mr. J. Fred Parker as Transportation Rat Specialist, but the Commission's Transportation Rate Expert, Mr. Sam H. Flint, resigned on Decem ber 31,1952, to accept the responsible position as head of the Traffic Department of Quaker Oats Company in Chicago, Illinois.
The Commission lost the services of another Motor Carrier Inspector in the resignation of Mr. Nathan B. Marcus on March 1, 1952, on account of ill health. We regret to record th at Mr. Marcus passed away on December 11, 1952.
During the year the Commission held 391 public hearings, issued 126 formal opinions and orders, rendered 325 formal decisions on which opinions were not deemed needful, made decisions on 307 informal matters, and issued 428 miscel laneous insurance orders.
MOTOR CARRIER REGULATION
The Commission is charged with the responsibility of collecting and account ing for motor carrir certificate and license fees. The fees collected for the calendar year 1952 are as follows:
Certificate fees @ $35.00 each, and certificate transfer fees
@ $7.50 e a c h ------- --- -------------- -------------------------------- $ 1,747.50 Regular license plates, 5,295 @ $25.00 each---------------------------- 132,375.00 Reciprocal license plates 15,297 @ $1.00 each------------------------- 15,297.00 Pick-u and delivery license plates 1,216 @ $1.00 each-------------- 1,216.00
TOTAL FOR 1952_____________________ _______________$150,635.50
Since the resignation and decease of Inspector Nathan B. Marcus the work of enforcement has been carried on by the remaining six Inspectors. Motor car-
77

riers operating solely in interstate commerce under reciprocal agreements with tr

other states have been required to comply strictly with the responsibility sections oi

of the Motor Carrier Acts by registering their operating routes and their equip in

ment and by obtaining and displaying a reciprocal license plate on each piece si

of equipment as well as by filing with the Commission evidence of insurance m

coverage and designating an agent for service in the state of Georgia. Failure

to comply results in the carrier losing his right to reciprocity on the vehicle

not meeting the requirements. While a majority of interstate carriers regularly

comply there are some who do not until required to do so and it is therefore D< necessary to make periodic highway inspections on all of the principal highways

of the state.

Is

43 Holders of intrastate certificates of public convenience and necessity issued

by this Commission generally comply with the law and rules of the Commission, as failure to do so is cause for cancellation of the certificate. However, it is 2r necessary to maintain constant supervision over the operations of each carrier 43

with regular and periodic inspections being made of all stations, terminals and

equipment. It is also necessary to apprehend, and when necessary to prosecute

persons operating in the transportation of persons or property "for hire" without

first obtaining a certificate of public convenience and necessity. Violations are

infrequent, however, but there is a growing tendency to evade the law through

what is termed a leasing arrangement. This is accomplished by leasing the

equipment to the shipper who hires his own driver and becomes a private carrier,

thereby assuming full responsibility. Under a ruling of the Attorney General a 3i

person may become a private carrier of his own merchandise and when such 4c

merchandise is being delivered to the purchaser as an incident to another

business he is permitted to add transportation charges on to the sales price 3i

without becoming a "for hire" carrier.

4(

There has been no material change in the operating routes of "fixed route" 5(

carriers. The Commission, however, approved the transfer of all certificates

operated by Service Stages, Inc. to Crescent Stages, Inc., of Gadsden, Alabama

on June 22, 1952. The Commission also approved an application of Hilliard 0.

White to acquire the capital stock, control and management in C. & C. Motor

Express. The Commission, however, denied an application of Dixie Ohio Express

for transfer of certificates operated by Mason & Dixon Lines, Inc. on the ground 4! that to do so would be tantamount to establishment of a new service as between

Atlanta, Georgia and points north and west of Cartersville, Georgia. It is perhaps

pertinent to mention that since adoption by the General Assembly in 1950 of

an amendment of Code Section 68-609 prohibiting the granting of a certificate 4!

over a route where adequate service is being rendered by an existing certificate

holder no duplicating certificates have been issued. Only two fixed route certifi

cates were cancelled during the year, one between Savannah and Savannah

Beach operated by Savannah Tybee Freight Line, and one between Atlanta, Georgia and the Georgia-North Carolina state line operated by Georgia Carolina

3

Freight Line. Both certicates were cancelled for discontinuance of operations.

TRANSPORTATION

General

4

During 1952 the Commission disposed of 51 formal proceedings involving

transportation rate and service matters. Those docketed proceedings, almost all of which were made the subject of formal written orders, are listed below with indication as to the disposition of each such proceeding. In addition, the Commis sion during 1952 disposed informally of 209 transportation rate and service
matters.

FORMAL CASES FOR YEAR 1952

Docket No. 1st Supt. 43-R 2nd Supt. 43-R
398-M
3rd Supt. 43-R 3rd Supt. 4024-A 50-R
421-M
49-R
341-M
424-M

Date

Subject

Disposition

1-8-52 Application of rail and motor car Approved with riers for 6% increase in rates on modifications
petroleum products in bulk

1-8-52

Petition of Atlanta Brick and Tile Approved Co. for removal of 6% increase on shale, carload, from Abt to Bolton

1-10-52

Application of Southeastern Motor Approved Lines, Inc. to increase commuta
tion fares from 1.3 cents to 1.5 cents per mile

2-15-52 Removal of pulpwood exceptions to Prescribed increased rates

2-15-52 Uniform application of "150 per Uniform rates cent basis" of rail pulpwood rates prescribed

2-15-52

Application of rail carriers for in Approved creases in coach passenger fares from 2.5 cents to 2.75 cents per mile and in parlor and sleeping car fares from 2.5 to 3.85 cents
per mile

2-15-52 Application of Canton Bus Service Approved to increase fares from 10 cents
to 15 cents

2-15-52

Application of Railway Express Approved Agency for increase in express rates and charges (Ex Parte
177)

2-26-52

Application of Class "A" Motor Approved in part Carriers of Property for in with new rate creased rates and revisions in scales prescribed
rate structure

2-26-52 Application of Interurban Transit Dismissed Lines, Inc. for increased school
fares

79

4th Spt. 43-R 56-R
423-M
1st Supt. 423-M
436-M 50-R 30-R
5th Supt. 43-R 39-R

3-14-52 Modification of prescribed rail Prescribd rates rates on petroleum products in modified bulk from Savannah to Augusta

3-19-52

Application of rail carriers to make Approved applicable on Georgia intrastate traffic Docket 28300 Uniform Class Rates and Docket 28310 Uniform Classification

3-26-52

Application of Atlantic Greyhound, Approved Southeastern Greyhound and Teche Greyhound to increase one-way fares from 2 cents to 2.25 cents per mile

3-31-52

Application of Atlantic Greyhound, Approved Southeastern Greyhound and Teche Greyhound for modifica tion of order of March 26, 1952 to permit adjustment of ap proved fares by increasing or reducing such fares to the near est "0" or "5".

4-1-52 Application of Class "A" Motor Approved Carriers of Property for emer gency 6% increase in rates
4-15-52 Application of Central of Georgia Approved Railway to increase minimum coach fare to 25 cents.

4-15-52

Application of Central of Georgia Approved Rwy., Charleston & Western Carolina Railroad, Georgia Rail road, Georgia and Florida Rail road and Southern Railway Com pany to increase line haul switch ing charges at Augusta.

5-5-52

Petition of Atlanta Brick and Tile Approved Co. for removal of 6% increase on clay or shale, carload, from Rockmart to Bolton

5-19-52 Application of Southern Railway Withdrawn Company to increase switching charges at Macon.

80

422-M 446-M

1st S u p t. 422-M

6th S u p t. 43-R

61-

R

60-R
2nd S u p t. 422-M 471-M

62-

R

63-

R

7th S u p t. 43-R

5-

26-52 ' Application of Atlanta NorCthaesrhnfares of 2.25

Lines, Inc. to increase cash fares cents per mile and

to 2.25 cents per mile and com commutation fares

mutation fares to 1.6 cents per of 1.5 cents per

mile

mile approved

6- 25-52

Application of Interurban Transit Cash fare increases Lines, Inc. to increase cash fares approved with and eliminate commutation fares exceptions and commutation fares 80 per cent of one-way fares prescribed

7-2-52 Petition of Atlanta Northern Lines, Assigned for oral Inc. for reconsideration of order argument
of May 26, 1952

7-2-52 Application of rail carriers for re Approved moval of scrap iron exception to 6% general increase

7-15-52

Application of Atlantic Coast Line Previous approval Railroad and Central of Georgia affirmed Railway to discontinue passenger trains 94 and 95 between Atlanta and Waycross

7-18-52

Application of Central of Georgia Approved Railway Company to discontinue passenger trains 5 and 6 between Augusta and Savannah

8- 15-52 9- 15-52
9-15-52
9-15-52 9-15-52

Petition of Atlanta Northern Lines, Withdrawn Inc. for reconsideration of order of May 26, 1952
Application of motor carriers for Approved restriction of certain commodity rates on "stoves" so as not to apply on "hot air house heating furnaces"
Application of Railway Express Approved Agency for 10% increase in charges on commodities moving in portable refrigerator contain ers
Application of Railway Express Approved Agency to increase rates by 6%
Application of rail carriers for Approved with 15% increase in rates and exceptions charges (Ex Parte 175)

81

465-M 8th Supt. 43-R 73-R 74-R 75-R 506-M
1st Supt. 73-R
81-R
485-M 512-M 92-R

9-19-52 Application of Camp Gordon Serv- Approved ice for increased fares

9-25-52 Application of rail carriers for re- Approved moval of scrap iron exception to 15% general increase

10-30-52 Application of Railway Express Denied with direc-

Agency to close express office at tion to reestablish

Crawford

service

10-30-52 Application of Seaboard Air Line Approved Railroad Company to discontinue agency service at Parrott

10-30-52 Application of Seaboard Air Line Approved Railroad Company to discontinue agency service at Omaha

10-30-52

Application of Class "A" Motor Minimum charge of
Carriers of Property to increase $2.00 granted minimum charge from $1.59 to $2.30

11-15-52

Application of Railway Express Postponement to
Agency for postponement of ef- January 1,1953 fective date of required re-es- granted tablishment of express office at Crawford.

12-2-52 Application of Railway Express Approved Agency to close express office at Buckhead.

12-2-52 Application of Perry Bros. Trans- Approved
portation Co. for increased rates on brick

12-18-52 Application of A. G. Boone Co. to Approved revise its capital structure

12-19-52

Application of Georgia Southern Approved after and Florida Railway to discon- withdrawal of tinue use of joint passenger sta- protest by City tion at Cordele and to operate in of Cordele lieu thereof passenger facilities to be constructed in its freight depot

82

91-R

12-23-52 Application of Railway Express Denied

Agency to close express office

at Belleville

2nd S u p t.

12-23-52 Application of rail and motor car- Approved with

9508- A )

riers for increase in rates on modifications

9509- A )

petroleum products in bulk

90-R

12-23-52 Application of Railway Express Approved

Agency to close the express of

fice at Mystic

89-R

12-23-52 Application of Southern Railway Denied

Company to discontinue agency

service at Rex

88-R

12-23-52 Application of Southern Railway Approved Company to discontinue agency service at Gresston

87-R

12-23-52 Application of Southern Railway Denied

Company to discontinue agency

service at Williamson

464-M 365-M 286-M

12-23-52

Application of Southeastern Grey- Approved hound and Modern Coach Corp. to increase commutation fares to 1.45 cents per mile

12-23-52

Petition of Class "A" Motor Car- Approved and new riers of Property to amend Rule 85 prescribed Commission's Motor Carrier Rule 85 to provide for dividing joint rates on basis of first class rate prorate

12-23-52

Rule Nisi against all Class "A" Motor Carrier Rule Motor Carriers of Property to 85 amended by show cause why the Commission addition of should not require the observance Subsection (b)
of a general routing rule in lieu of individual routing restrictions

515-M

12-23-52 Application of Atlanta Brooks Approved

Coach Line for increased com

mutation fares.

83

BUS FARES
As discussed in our 1951 Report the Commission in May and June of that year authorized all of the bus lines operating in Georgia to increase their fares from 2 cents to 2.25 cents per route mile except for account of the three Grey hound Lines. On February 28 hearing was held on petition of these three Grey hound Lines for increase in their fares to the level authorized for the other carriers. While it was found that these Greyhound Lines were not in drastic need of additional revenue, the Commission found that many bf the other bus lines in the State were suffering acute revenue needs because of the competitive necessity of depressing their fare structure where they competed with the Grey hound Lines. This situation resulted in most of the important independent car riers in Georgia incurring a net operating income deficit for the year 1951, and in the interest of uniformity of fares and the preservation of necessary bus transportation, the Commission on March 26 authorized increase in the fares of the Greyhound Lines to the same level as that previously approved for the other carriers, thus removing the effective ceiling on the fares of the independent lines which were experiencing serious revenue deficiencies.
On January 10 the Commission authorized increase in the commutation fares of Southeastern Motor Lines, Inc. to 1.5 cents per mile, subject to a minimum communation fare of 18 cents. In order that Southeastern Motor Lines, Inc. might be able to earn needed revenue from this increased commutation fare, Southeastern Greyhound Lines and Crescent Stages, Inc. were likewise authorized to increase their commutation fares to the same level between points competitive with Southeastern Motor Lines, Inc.
In December of this year application for increase in commutation fares was submitted by Southeastern Greyhound Lines and Modern Coach Corporation, those lines basing their proposal on the fact that commutation fares had not been increased since 1948, while one-way fares had been increased 12% %. The Commission found that inasmuch as commutation service at the applicable level of fares was not producing on its own any net operating income, it was only reasonable that such fares be subjected to the same percentage of increase as one-way and round trip fares already had been subjected, and on December 23 approved the increase in commuter fares of these two lines to the basis of 1.45 cents per mile.
During the year the Commission also received applications from carriers per forming urban type service in and near large communities seeking increase in fares to offset increases in operating costs. On February 15 the Commission permitted Canton Bus Service to increase its fares from 10 cents to 15 cents (the new fare including sales tax) and on May 26, authorized a revision in the cash and commutation fare structure of Atlanta Northern Lines, Inc. to 2.25 cents per mile and 1.5 cents per mile respectively. On June 24 and September 19 similar revisions were authorized in the fare structures of Interurban Transit Lines, Inc. and Camp Gordon Service to approximately the same level as Atlanta Northern Lines, Inc.
84

TRUCK RATES
In the latter p art of 1951 the Class "A" Motor Carriers of Property filed with the Commission an application to substantially increase rates and to makp certain adjustments in their rate structure. The evidence presented a t the hearing in this case showed that there had been appreciable increases in the cost of operation since the Commission's order of March 26, 1951 granting higher rates for these carriers, but the Commission found the level of increases sought to be not fully justified. It was recognized, however, that the class "rate structure had been distorted by the application of previous percentage increases and no longer reflected true percentages of first class. To rectify this deficiency the Commission in granting a lesser measure of increase prescribed a new first class scale of rates and directed that lower classes be made established percentages of that new scale. Authority was granted in this order for the rail competitive rates maintained by the Class"A" Motor Carriers to be increased to the level of the concurrently applicable rail rates. Permissive authority was granted to these carriers to make non-applicable via such carriers, either individually or collectively, the low commodity rates on bulk items normally transported by Class "B" Carriers.
The higher rates authorized in the above discussed order were granted to offset increased operating expenses incurred by the applicant carriers up to the time the record in th at proceeding closed, i.e., December 14, 1951, and the Com mission in its order in that proceeding acknowledged informal advice it had re ceived after the record closed that substantial increased wages were then being sought by the carriers' employees. Following prolonged negotiations and a strike which interrupted motor carrier service for several days, the motor carriers entered into contracts with both their over-the-road drivers and terminal em ployees, effective February 1, 1952 and March 1, 1952, providing for pay-roll increases averaging approximately 11%%. The motor carriers filed tariffs in creasing their interstate rates by 6%. effective April 7, and urged this Commis sion to permit an emergency increase effective the same date intrastate to help provide for the substantial increased wage cost. By order dated April 1 the Commission permitted the 6% increase sought to become effective April 7.
Later in the year the motor carriers sought authority to increase their min imum charge per LTL shipment to 230 cents in lieu of the 159 cents then in ef fect. Upon showing that this type of traffic had not been bearing its full share of the cost of transportation, the Commission permitted increase in the minimum charge to 200 cents effective November 10.
The Commission for some time has been receiving requests from individual Class "A" Motor Carriers seeking routing restrictions for account of their lines and for good cause shown had permitted the publication of a few such restrictions. In the face of the continued pressure for individual restrictions, the Commission on May 10 issued a Rule Nisi requiring all the Class "A" Motor Carriers of Property to show cause why the Commission should not require the cancellation of the outstanding individual routing restrictions and why there should not be adopted in lieu of such individual restrictions a general rule to be included in the Commission's General Motor Carrier Rules and Regulations. Upon full hearing and thorough investigation and after consideration of several substitute rules
85

suggested by the carriers, the Commission found that the proposed general ! routing restriction requiring application of combination rates over points of in- | terchange would somewhat relieve the situation but was defective in th at such provision would shift the burden of both responsibility and additional expense to [ the shippers and would also fail fully to protect the interest of the delivering | carriers. Accordingly, the following rule was adopted which properly fixes these I burdens upon the originating carrier and will adequately protect the revenues I which normally would accrue to carriers on traffic moving between points I served by them locally:
Rule 85 (b)
(1) Class "A" Motor Carriers of Property shall not be required to accept for I transportation shipments originating a t points which they serve in [ common with other such carriers and destined to points served exclusive- l ly by any of such carriers which serve the origin point. (See Note A). [ I
(2) Where shipments are accepted in transporation contrary to the prov- I isions of Paragraph (1) charges will be assessed on basis of joint rates prescribed or approved by the Commission, and such shipments shall be delivered to carrier serving destination point at first formal point of interchange and carrier serving destination point shall be allowed as its proportion of the joint line revenue earnings based on its local rates | prescribed or approved by the Commission from point of interchange to I final destination, subject to Notes A & B.
NOTE A: Nothing contained herein shall prohibit carriers from accept ing shipments contrary to the provisions of Paragraph (1) or from mutually agreeing upon a basis for division of revenue different from that provided for in Paragraph (2).
Note B: In no instance shall the destination carrier be allowed as its ) proportion of the joint line revenue earnings greater than the l total charges resulting from application of the joint rates from I origin to final destination."
Late in 1951 the Class "A" Motor Carriers of Property filed a petition seeking amendment of the Commission's Motor Carrier Rule No. 85 so as to provide for division of joint rates on the basis of a first class rate prorate in lieu of } the mileage basis then prescribed in that rule. The evidence presented a t the I hearing showed that most of the motor carriers within Southern Territory now j divide interstate rates on the basis sought, that the adoption of that basis in Georgia would simplify the accounting of the applicant carriers, and that the basis sought would more adequately compensate the originating and delivering carriers for their terminal expense. In consideration of these advantages of the proposed basis, the Commission on December 23 authorized the revision of para- i graph (a) of its Motor Carrier Rule No. 85 to read as follows:
" (a) Except as otherwise provided in Paragraph (b) of this Rule, all joint freight rates between For Hire Motor Carriers of Property shall be divided on percentages arrived a t by use of first class rate prorate, the factor for each carrier involved in such joint transportation being the
26

first class rate applicable between the transfer points between which such carrier performs the transportation service. The basis for the division of rates provided herein is not intended to prevent carriers from agreeing among themselves to the division of joint rates on any other basis that may be satisfactory to all parties concerned."
RAILWAY EXPRESS
The Railway Express Agency, Inc. has again applied for rate increases. On November 6, 1951 it asked authority to make effective on Georgia traffic the same increase of 30 cents per shipment and other minor miscellaneous in creases in charges as authorized by the Interstate Commerce Commission on October 3, 1951 in Docket Ex Parte 177 to supersede the increase of 20 cents per shipment previously authorized by the Federal Commission in the same docket earlier in 1951. Still further increase of 6 cents per shipment was sought by petition dated February 6, 1952. Justification for both of these increases in charges was based on increased cost of operation, primarily increases in wages of the Railway Express Agency employees. The Commission found that the in creased rates proposed were necessary to offset the operational increases incurred and in the interest of uniformity authorized the same measure of increase as had been permitted on interstate traffic.
RAILROAD PASSENGER SERVICE
On June 13 the Commission authorized the Central of Georgia Railway Com pany to discontinue operation of its passenger trains 94 and 95 (the "Dixie Flyer") between Atlanta and Albany, subject to complaint and further order, and subject to the publication of notice as required by Passenger Rule No. 18. On June 27, the Commission approved, subject to the same conditions, similar application of the Atlantic Coast Line Railroad to discontinue operation of its passenger trains Nos. 94 and 95 between Albany and Waycross via Tifton. It was proposed that the "Dixie Flyer" be operated in the future between Atlanta and Jacksonville entirely over the rails of the Atlantic Coast Line Railroad, through Manchester, Cordele, Fitzgerald and Douglas, and the Commission was advised that the northern connections handling this train were satisfied with the new proposed operation. The Commission received complaints from several cities and civic organizations affected by the proposed discontinuance of service and accordingly assigned the m atter for public hearing on July 12. The evidence showed that the Central of Georgia Railway incurred a loss of $73,685 from opera tion of the two trains during the 12-month period ending February 29, 1952 and that it operated three other daily round trip schedules between Atlanta and Albany, some of such schedules operating very close to the time of the "Dixie Flyer" - the record indicating, that during the 12-month test period shown there were only 89 passengers originating a t Albany and 110 terminating a t Albany Who could not have been served equally as well by the remaining schedules. The Atlantic Coast Line Railroad showed that less than 4 passengers per day used the service of its trains 94 and 95 between Albany and Waycross and that elimination of the Albany connection would result in the operation of the trains between Albany and Waycross being practically worthless. Inasmuch as most of the objections pertained to mail service and the substitute arrangements for
87

continuation of such service appeared to be adequate, the Commission by further j order issued July 15 affirmed its previous authorizations for the discontinuance I of these trains and permitted at the same time the inauguration of the new service of the "Dixie Flyer" via Manchester, Cordele, Fitzgerald and Douglas.
By application filed May 27, the Central of Georgia Railway sought authority to discontinue operations of its daily passenger trains Nos 5 and 6 between Augusta and Savannah. The record showed that these trains were promoted ex- j tensively by both the carrier and the civic organizations of Augusta as the "Little Nancy Hanks," and were set up to meet the "Nancy Hanks" at Millen to provide j service to and from Atlanta. Unfortunately, however, public use of the trains has been so limited that the total revenues earned were less than the direct expenses of the wages of the train crew, fuel, use of Augusta Union Station and pay roll taxes. Although protests were entered by representatives of one town and by a few other individuals, the Augusta Chamber of Commerce, as well as the City I Council of Millen, supported the application and indicated that it was felt that j the carrier had made a bona fide attempt to provide satisfactory passenger service and that it should not be further burdened with the losses being incurred through failure of the public to support the operation. By order dated July 18 the Commission authorized the company to discontinue operation of these trains on August 1.
Late in 1951 the rail carriers sought authority to increase passenger fares to the same level as authorized by the Interstate Commerce Commission on Octob- j er 1,1951, i.e., coach fares from 2.5 cents to 2.75 cents per mile and fares good in sleeping or parlor cars from 2.5 cents to 3.85 cents per mile, subject to a minimum fare of 25 cents. (The Central of Georgia Railway not seeking the increase in coach fares) In view, of the substantial and rapidly increasing losses being incurr ed by the railroads in the provision of passenger service, intensified by recent sub stantial wage increases and other increases in the cost of operation, the Commis sion authorized, effective March 1 the increased fares sought.
R A IL FREIG H T
Following a hearing held on March 13 the Commission issued an order au thorizing the rail carriers to make applicable on Georgia intrastate traffic oh and after May 30, 1952 the classification ratings published in Uniform Freight Classification No. 1 and the uniform class rates prescribed by the Interstate Com- | mere Commission in Docket 28300, Class Rate Investigation 1989 and to cancel conflicting class rates and classification and exception ratings. The uniform rate scales here placed into effect in Georgia as the result of years of struggle ' by the Southern states to achieve class rate parity with other sections of the country are substantially lower than those superseded, although made subject to the 15% surcharge permitted in this Commission's Docket 43-R (corresponding to the authorization of the Interstate Commerce Commission under Docket Ex Parte I 175). Some opposition in connection with the applicable rates on certain specific r commodities was raised at the hearing and the Commission specifically retained \ jurisdiction over the matter to permit the granting of prompt relief where it I could be shown that the overall adjustment had resulted in any unreasonable I or discrimatory rates or charges on specific commodities or specific movements.
During the year several supplemental orders were issued in connection with
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the 6% increase in intrastate freight charges of the rail carriers originally au thorized during 1951, the first six supplemental orders modifying conditions of the original order in respect to individual commodities. The seventh supplemental order in this docket issued on September 15 approved for application in Georgia a 15% increase in rates and charges in lieu of the previous 6% increase au thorized in this docket in the same manner as had been authorized by the Inter state Commerce Commission on interstate traffic on April 11. For good cause shown at the hearing no increase was authorized in the line-haul rates and charges on carload movements of clay or shale or marble between certain points and the increase was limited to 6% on carload movements of scrap iron or steel, logs moving to mills, sand, gravel, crushed stone, limestone and related articles, and sugar. By later supplemental order, however, the exception on scrap iron or steel was removed because of change in the existing conditions in surrounding states Which had dictated the original exception.
By order dated February 15 the Commission prescribed for uniform appli cation between points within the State of Georgia a scale of rates on pulpwood based on 150% of the original Roanoke Rapids scale. This basis of rates had been voluntarily published by most of the important pulpwood carrying roads in the State effective November 1, 1951 and in order to place all pulpwood shippers and receivers on the same competitive basis the Commission prescribed that basis for application by all railroads in Georgia. In order to remove objec tions of some shippers to the new minimum of 15 cords imposed by the rail roads in 1951 in connection with this level of pulpwood rates, the Commission added to its order a provision directing that transportation charges be cottiputed on the number of cords actually loaded when the car was not of sufficient size to hold the full 15 cords. In connection with this uniform adjustment the Com mission directed the cancellation of the old Class PI rates which have been applied in some instances on pulpwood movements.
By order dated April 15 the Commission authorized the Central of Georgia Railway Company, Charleston and Western Carolina Railway, the Georgia Rail road, Georgia and Florida Railroad and Southern Railway to increase their charges for line haul switching at Augusta to $9.61. The record showed that the corresponding interstate switching charges a t Augusta had been increased to that level in 1950, such level being developed from an extensive time study of switching operations at Augusta. In view of the showing that the proposed charge was the same as the average cost per car incurred in performing switch ing service at Augusta and that in most instances such charge was absorbed by competing carriers, the Commission permitted the increase sought subject to the provision that where any lower charge was maintained on interstate traffic such lower charge would also be applied under the same conditions on intrastate traffic.
WESTERN & ATLANTIC RAILROAD
The Annual Report of the Nashville, Chattanooga & St. Louis Railway as lessee of the State-owned Western & Atlantic Railroad for the calendar year 1952, shows for the net expenditures charged to the accounting classification "Additions and Betterments" by classes of railroad property the following amounts:
89

Improved and additional track materials_____;

- $ 96,259.71

Bridges, trestles and culverts ....._______________ ________ ___ 17,592.90

Yard tracks and sidings__ ________________ *|____ _____ _____ 33,906.27

Public improvements ______ .___._____ __________ __________ 3,196.52

Signals and interlocks __ ______ ..________ .__ .__L___ 68,639.96

Station and Office Buildings ---v----. ......: 1___ ________ ____

503.04

Change of Alignment .___________ ...____ _______________ .... 2,681.08

Water stations (Retirement of)_.________________ j____.___ (10,556.50)

Shop and Engine Houses__1_______ __........___ _____________

326.34

Power plant machinery.il-...__ ___________:__________ _______ 1,424.79

Purchase of la n d ______ _________ ________________ _____ .... 6,359.00

The above net additions reported are after deduction for value of property replaced during the year and total $220,333.11 for 1952. The net capital expendi tures made by the Nashville, Chattanooga & St. Louis Railway for additions and improvements to the Western & Atlantic Railroad from the beginning of the lease in 1919 through December 31, 1952 amount to $6,998,269.

GEORGIA PORTS AUTHORITY
The Commission in July entered into an agreement with the Georgia Ports Authority providing for the handling by the Commission of transportation matters affecting the Ports Authority's operations at Savannah. During 1952 represen tatives of the Commission assisted in the negotiations for a contract with therailroads serving Savannah to provide fair compensation to the Ports Authority fpr switching service to be provided by the Authority with its own motive power. In the course of such negotiations it developed that it would first be necessary for the Ports Authority to obtain a certificate from the Interstate Commerce Commission authorizing the operation of its railroad facilities as a common car rier. The Commission prepared and filed the necessary petition and supporting documents, and on December 29 the Interstate Commerce Commission issued its order in Finance Docket 17936 authorizing the operation of these facilities as the Savannah State Docks Railroad Company.

PARTICIPATION IN INTERSTATE RATE CASES
As pointed out in the Commission's 1951 Annual Report we finally got during that year decision from the Interstate Commerce Commission in the Class Rate Case which had been pending since July of 1939--this decision requiring the rail roads to file a Uniform Classification of freight to become effective early in 1952 to be applied in connection with the uniform class rate structure prescribed by the Interstate Commerce Commission for application east of the Rocky Mountains. On February 1 the railroads filed their new Uniform Classification to become effective May 30, 952. A number of protests were filed by shippers attacking the new rates on individual commodities and for a time there was threat that the entire adjustment would be held up because of protests against a comparatively small number of individual ratings. However, the Interstate Commerce Com mission on May 23 issued its Fifth Supplemental Report in this proceeding holding that the new Uniform Classification No. 1 was substantially in compliance with the orders and directions of that Commission and that, accordingly, it would not be suspended but that individual provisions of the classification would be subject

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to complaint or investigation on the Commission's own motion. As detailed above, this Commission took substantially the same action insofar as concerns Georgia intrastate traffic and our action has been paralleled by most of the other states in the affected area. By the end of 1952 the new uniform class rate structure was being applied on interstate traffic in the whole territory east of the Rocky Moun tains and on intrastate traffic in most of the states in that territory.
On April 11, the Interstate Commerce Commission authorized further in crease in rates and charges of the rail carriers by its report and order in Docket Ex Parte 175, which permitted a 15% increase in rates and charges in lieu of the 6% increase authorized in the same docket during 1951. This action resulted in the rates in the South being increased 9% while the rates in the North were increased only 6% from the 9% increase previously authorized in that territory in prior orders in Docket Ex Parte 175. This Commission joined with the other Southern states in filing petition for reconsideration of the Commission's order of April 11, 1952 questioning the decision of the Commission in granting a greater increase to the southern carriers than had been granted the railroads in the North. In this petition we and the other Southern states pointed out that there was then pending before the Interstate Commerce Commission in its Docket 29885 - OfficialSouthern Division, an investigation into the divisions of joint revenue between carriers in Official Territory and Southern Territory in which the proposed report if adopted by the Commission, in the words of the report itself, "would take in excess of 30 million dollars annually from the Southern Territory carriers and give it to the Official Territory carriers". Our petition alleged that the protested decision in Ex Parte 175 cast the handwriting upon the wall concern ing the ultimate decision in the Divisions Case and could be based "only upon an unlawful pre-judgement of the issues in Docket 29885". Unfortunately, however, even the unified protest of all the Southern states was of no avail and the Com mission denied our petition for reconsideration and permitted the full 15% in crease to become effective as scheduled.
As discussed briefly in our 1951 report, several of the most important pulpwood transporting railroads in the South, after negotiations with the paper in dustry and with the seven state commissions involved, placed into effect in November of 1951 a uniform basis of pulpwood rates applying on interstate and intrastate traffic via those lines in the States of Alabama, Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia. This basis reflected 150% of the basic Roanoke Rapids scale originally applied on movements of pulpwood traffic between points in the South and represented a most harmonious adjustment of the many varying levels of rates observed by these same carriers in these seven states prior to such adjustment. Although the Interstate Com merce Commission denied petition of two non-concurring railroads to suspend the uniform basis of rates, that Commission instituted an investigation into such rates on its own motion, such investigation being styled as Docket No. 30874, Reduced Rates On Pulpwood In Southern Territory. Hearing was held in this investigation on June 10-13 and representatives of this Commission participated in support of the uniform basis of rates. We filed brief on August 15 in further support of the uniform basis of rates and the other interested Southern states concurred in that brief. On December 2, the Interstate Commerce Commission is sued a proposed report in this proceeding approving the uniform basis for appli-
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cation as factors in constructing combination rates over two or more railroads but requiring the single line rates to be increased to 160% of the basic RoanokeRapids scale. Exceptions to this proposed report will be filed by this Commission.
By order dated March 17 the Interstate Commerce Commission denied our petition for reconsideration of that Commission's order of September 24, 1951 in Docket 29907, K entucky Coal Agency, Inc., v. Alabama Great Southern Railroad Company, et al, a complaint case wherein the rates on coal from Western Ken tucky mines to points in Georgia were assailed as being unreasonably high. The Commission's order on which we sought reconsideration permitted what we con sidered to be unjustifiable increases in the transportation cost of the coal con sumers of Georgia. To make matters worse the affected railroads filed effective July 15, tariff publishing rates from Western Kentucky mines to points in the Southeast, including rates to destination points in Georgia, and due to the use of erroneous distances by the carriers this tariff resulted in increase in these coal rates to a level even above that authorized as maximum in the order of the Inter state Commerce Commission. We immediately filed petition for suspension of these unlawful rates and the Interstate Commerce Commission recognized the er roneous computations and required the suspension of this tariff under I. & S. Docket No. 6021. On December 5 the respondent railroads in I. & S. Docket No 6021 filed with the Interstate Commerce Commission petition seeking vacation of the order of suspension and simultaneously filed an application for special per mission to permit them to make effective the mileage scale authorized by the Interstate Commerce Commission in its order with revision in certain of the previously published rates to conform with the method of calculating distances determined by the Interstate Commerce Commission's Board of Suspension. No decision has been rendered on this petition and application.
By tariffs filed to become effective on July 1, certain of th principal rail roads in the East and the South proposed to establish extra changes for the checking of hand baggage and trunks--such charges to be 25 cents for each piece of hand baggage and 50 cents for each trunk. This Commission, to gether with other interested protestants, filed petition for suspension of this additional charge and the Interstate Commerce Commission suspended the tariffs and set the m atter for hearing in Atlanta on August 1. We took the position that this service had been considered as part of the transportation services covered by the basic passenger fares ever since the days of the stage coach and that no ad ditional charge was justified. We joined with the Alabama Commission in filing brief on December 1 reinforcing our argument for denial of these chargs. No decision has as yet been rendered by the Interstate Commerce Commission.
The Southern Motor Carriers Rate Conference on behalf of the motor carriers operating in interstate commerce in the Southeastern states filed tariffs to become effective August 4 providing for, among other things, an arbitrary charge of 75 cents per shipment on all shipments weighing less than 1000 pounds mov ing within Southern Territory or moving between Southern and Eastern Terri tory. We immediately joined with the other Southern states in filing petition for suspension and investigation of the tariffs containing these arbitary charges, pointing out th at such a departure from established procedures of rate making would seriously upset classification relationships and would disrupt the dis tribution pattern of the commerce of our territory. Many of the motor carriers
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themselves did not concur in the publication of this added charge and there were numerous individual carrier exceptions to the application of the charge. The Interstate Commerce Commission suspended the tariffs involved and the matter is now set down for full investigation.
1952 U T ILIT Y REGULATION
GENERAL
The work load on the Commission's Utility staff continues on the increase and the number of complaints handled for the year is given in the following table :
Number of electric complaints V. ---------------------- 275 Number of gas complaints I----- ----------r._----- -- ' tH t " ^28 Number of telephone complaints _L_-- --------11-----------1,376

Total -- -- --

~----2,079

All of the complaints received by the Commission were satisfactorily handled to a conclusion with the exception of 40, which are still pending. These pending cases are followed up and every attempt made to satisfy complainants, although in some cases where extensions are involved, excess construction costs are applic able and in many of the cases the complainant is unwilling to accept the pro posal as made by the utility and verified by a member of the Commission staff.
Many of the complaints received by the Commission are from Atlanta utility con sumers and these are telephoned in to staff workers who make records and handle to conclusion wherever humanly possible. Because of improvement in the general economy, many telephone subscribers are requesting better grades of service all over the state, but due to inadequate plant margin, the telephone company has been unable to cope with the demand.

Electric complaints increased due to the lc per KWH "seasonal use" charge set forth in residential schedule "A-8" of the Georgia Power Company. It was necessary to make rate Analyses and a large number of electric meters was tested to determine proper accurcy, as well as the proper billing by the utility.

By December 31, 1952 the total number of held applications of the Southern Bell exchanges had decreased from 29,551 to 22,754. The number of requests on file for better grades of service has decreased from 40,027 to 26,899; The total number of Southern Bell telephones in service as of December 31, 1952 was 605,180 representing an increase of 42,489, of which a considerable number represents increase in rural telephones made available for the citizens of Georgia. During the period the 96 independent telephone companies increased the number of telephones in 185 exchanges from 67,231 to 72,669 stations. The number of magneto exchanges continues to be replaced with modern dial telephone facili
ties. For the most p art this has been due largely to the ability of the indepen, dent owners to borrow 2% capital funds from the Rural Electricfication Admin
istration.

TELEPHONE U TILITIES

During the year 1952 substantial numbers of rate increase applications were received by the Commission from independent telephone companies. The

93

Commission issued 17 decisions regarding rate increases requested by independent telephone companies. The total amount of increased revenue sought was $138,220 and the amount granted was $119,893. In addition, applications from three Rural Electrification Administrations (REA) financed independent telephone coop eratives were received and acted upon by the Commission. Each of these appli cations requested authority to establish rates for telephone service to become efective upon completion of the construction of a modern dial telephone system in the areas served. Annual local service revenues from the rates proposed by th cooperatives aggregated $157,496. Revised rates prescribed by the Commission granted the amount.
Southern Bell Telephone and Telegraph Company also made application for authority to increase certain charges for telephone service rendered in the State of Georgia. The increased charges proposed by the Company were applicable to various services rendered and included a proposed increase in intrastate toll rates estimated to produce additional toll revenues of $445,000 per annum. The schedule of rates attached to the Company's petition would have produced additional gross revenues of $1,236,800, which the Company alleged were required to offset a general wage increase to its employees granted in Jun 1952. According to the evidence in the proceeding, the Commission determined that the Company's operating expenses had been increased $1,217,000 per annum as a result of the June 1952 wage agreement. It was further determined that certain reductions in expenses which were not considered in the Commission's former decision dated November 1, 1951, Docket No. 195-U, would amount to $305,895 which, when de ducted from the amount of wage increase of $1,217,000 leaves a net increase in expenses of $911,105. Due to the necessity of providing for certain taxes and charges which are directly proportional to gross revenues, the Commission con cluded that the increased gross revenue required to offset the net increases in expense to be $926,606 which was approved. The rates authorized differed from those proposed by the Company only with respect to the changes prescribed for intrastate toll rates, the authorized toll rates producing $134,800 additional revenue in lieu of the $445,000 annual increase proposed by the Company.
The need of independent telephone companies for capital funds to be used for the purpose of expanding and improving telephone facilities in the State of Georgia was substantial during the year 1952. The Commission issued decisions on 13 applications for authority to borrow funds and issue securities. Capital funds provided in orders issued by the Commission totaled $3,448,230, of which $1,775,000 was authorized to be borrowed from the Rural Electrification Admin istration, Washington, D. C., the proceeds to be used primarily for the construc tion of modern dial telephone facilities in rural areas of Georgia.
On June 4, 1952 application was received from Georgia Continental Telephone Company requesting authority to increase rates for exchange telephone service in each of the twenty exchanges served by the Company. Hearing on this application was first assigned for July 23, 1952 but was later postponed and scheduled for September 11, 1952, when it came on to be heard. At the conclusion of direct testimony on that date the m atter was recessed and cross examination of the Company's witnesses was conducted on October 8, 1952, a t which time the record was closed. Due to the total inadequacy of service as evidenced by the many protests a t the hearing, the Commission purposely delayed consideration of this
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case and a decision thereon, to see what might first be accomplished toward an improvement of service. No positive action had been taken by the end of 1952 and the' matter was held over to the year 1953.
During the year telephone certificates of public convenience and necessity were issued as follows.

TELEPHONE CERTIFICATES ISSUED IN 1952

SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY:

Amendments to Exchange Certificates -----------r---------- --------

100

INDEPENDENT TELEPHONE COMPANIES AND CO-OPERATIVES:

New Exchange Certificates .------ ---------------------- ----------- ----------- ----------- --i-- --

Acquisition Toll Certificates - __ .4------------------- ------- --

2

Amendments to Certificates _________ _-- ------------ ----------40

Exchange Certificates issued as result of Acquisition----------- 8

57

Total Southern Bell, Independent and Cooperatives ------------- 157

TELEGRAPH UTILITIES
Western Union Telegraph Company filed an application for increased rates requesting authority to establish the same rates for intrastate service in the State of Georgia, as has been authorized by the Federal Communications Commission for interstate telegraph service. After a hearing and careful investigation, the Commission granted the request which made the state telegraph rates uniform with those in effect in the majority of other states, as well as for interstate service, and this resulted in an annual increase in gross revenue of the Company of $53,262. The increased rates authorized were ordered to be made effective at 12:01 A.M. on October 21, 1952.

ELECTRIC UTILITIES
As brought out in our 1951 report, Georgia Power Company had filed on June 22, 1951, an application with the Commission requesting authority for a general rate increase for electric service in the total amount of $4,275,000 per annum of increased gross revenue. Final hearings on this case were not com pleted until December 3, 1951 and this case was still under consideration by the Commission at the close of the year.
On February 15, 1952, the Commission rendered its decision in this matter. It was determined that under present rates for service the Company would realize a rate of return of 5.82% on the net plant rate base as found, after providing for annual amortization of plant adjustments in the amount of $1,800,000. This rate of return was deemed sufficient and the request of the Company was denied.
On February 25, 1952, Georgia Power Company filed a motion for a rehear ing, reconsideration and oral argument. This petition was assigned for oral argu ment on May 7, 1952 and at the conclusion thereof, the Commission denied the
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petition with the stipulation that the record would be reopened if the Company could show sufficient changes in circumstances to w arrant such reopening. On June 23, 1952, the Company submitted additional evidence and oral argument alleging that wages and salaries and freight charges had increased since the Commission's original order and that such changes warranted reopening the case. The Commission concluded that sufficient charges in circumstances had developed to warrant further study and investigation.
Although the May 7 and July 2, 1952 orders of the Commission limited the new evidence to changed circumstances, the Company introduced similar evidence to that presented in the first phase of the case in addition to evidence as to changed circumstances. The Company also reviewed its request for the rate increase originally sought. Since a rehearing was denied and since the record was reopened to receive changed circumstances only, the Commission refused to con sider evidence related to the original proceeding. However, there were two major changes in circumstances which were not taken into account in the former decision. One was a 10% wage increase granted all employees, effective March T, 1952, and the second was freight rate increases affecting primarily the cost of coal used in the generation of electric power. Therefore, on October 7, 1952 the I Commission prescribed rate increases which would produce an increase in gross annual revenues of approximately $1,604,100. To offset these increased operat- t ing costs the Commission further ordered that the new rates were to be net rates with no additional penalty for delayed payment. This type of rate is desirable, [ and rates for a number of other utilities in Georgia are now expressed on a net basis.
Pursuant to the above order on October 30, 1952, the Company filed rate levels prescribed. The schedules so filed contained a fuel adjustment clause which the Company proposed to incorporate therein. These rate schedules were accepted by the Commission with the proviso that the clause would be permitted on and j after January 1, 1953 unless suspended prior to that date. After consideration it > was concluded that the proposed fuel adjustment clause should be further in- ; quired into; therefore, on December 2, 1952, said clause was suspended. Hearings on the matter were scheduled for January 15, 1953 and the m atter was under study by the Comission's Staff a t the close of the year.
On December 10, 1952 Georgia Power Company filed an application in the j form of a request for instruction with respect to accounting for amortization of j Emergency Defense Facilities under Section 124-A of the Internal Revenue Code. . Section 124-A provides for the certification of Emergency Defense Facilities and when so certified such facilities may be amortized for income tax purposes over a period of five years in lieu of normal depreciation expense associated with other facilities. The effect of this amortization reduces income taxes during the five year period and iiicreases such taxes thereafter, and in effect represents a de ferment in the payment of Federal income taxes. It appears that in the case of \ this Company that the amortization of Emergency Defense Facilities will exceed I normal depreciation during the five year amortization period by approximately 1 $36,600,000. On December 23, 1952, the Commission prescribed the accounting I treatment to be given to such amortization. This Order is considered a precedent I and shall be used by all regulated public utilities in the State of Georgia as a guide in similar matters.
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Savanah Electric and Power Company filed for authorizatinn to increase its rates for electric service on January 3, 1952. The Company requested increases aggregating approximately $407,000 per annum. This application was predicated on an increase in the Federal income rate, the establishment of the State Sales Tax, together with increase in fuel costs, wage costs, freight rates and other increases in operating expnses. The Commission concluded that increased rates sufficient to provide additional gross annual revenues in the amount of approxim ately $158,000 would provide a 6.3% return to the Company, which was deemed adequate.
Georgia Power Company proposed to make expenditures of plant additions in 1952 in the total of approximately $45,700,000. Of this amount approximately $5,000,000 represents the estimated cost of completion of the installation of the first unit at Plant McManus at Brunswick; $9,200,000 represents the estimated cost of completion of a third unit a t Plant Yates; $7,500,000 represents the estimated expenditure in connection with Plants Hammond, units 1, 2 and 3; $7,200,000 is the estimated expenditure for the Sinclair Dam Hydro Plant, units 1 and 2; and balance to be expended in normal transmission and distribution plant expansion. To partially finance these construction projects, the Commission ap proved the issuance of $20,000,000 principal amount of F irst Mortgage Bonds and the issuance of 400,600 shares of common stock to the parent company, The Southern Company, for a cash consideration of $7,000,000.
Also during the year the Georgia Power and Light Company was authorized to increase the stated value of its common capital stock from $100 to $150 per Share to reflect a cash capital contribution $1,052,500 by the Florida Power Cor poration for the months of December 1951 to July 1952, inclusive, and was ex pended for normal plant expansion throughout the year.
GAS UTILITIES
As a result of the need of capital funds to finance the conversion of the Gainesville, Georgia gas distribution system to natural gas the Georgia Gas Company was authorized to issue $435,000 principal amount of its 5% F irst Mortage Bonds, 2,000 shares of its no-par value $6 Dividend Perferred Stock, and 550 shares of its $100 par value Common Stock. The proceeds of the Bond and Preferred Stock issues are to be used to retire current outstanding First Mortgage Bonds in the principal amount of $39,000 and to construct a 32 mile pipe line from Transcontinental Gas Pipe Corporation to serve the city, and to spend approximately $161,000 for the conversion, extension and enlargement of the present distribution system at Gainesville. The Common Stock was issued in full Payment of current indebtedness to the parent company and to capitalize the surplus as of September 30, 1951.
In conjunction with the above security issues of the Georgia Gas Company, temporary rates for natural gas a t Gainesville, Georgia were authorized.
On May 19, 1952 South Atlantic Gas Company of Savannah, Georgia was granted authority to issue 29,600 shares of its $5 par value common stock and $350,000 principal amount of its 4% F irst Mortgage Bonds due in 1977. The Purpose of these issues Was primarily to refinance current notes payable and
97

retirement of present first mortgage, with limited amounts being used to finance current construction and for reimbursement of the company treasury.
Atlanta Gas Light Company requested, and was granted authority to issue and sell $3,000,000 of 4.6% Cumulative Preferred Stock with a par value of $100 per share on November 25, 1952. In order to finance its 1952 construction pro gram, the Company borrowed from various Atlanta banks a total of $2,800,000. The proceeds from the sale of the securities authorized were to repay the out standing bank indebtedness and to privide additional funds for construction ex penditures. While the rates authorized represented an overall reduction of about 20 per cent in the charges for gas service in Gainesville, they were temporary in nature and subject to further downward revision by the Commission, if such revision was later found to be warranted.
A minor rate adjustment was granted South Atlantic Gas Company on December 2, 1952. This increase afnounted to approximately $50,090, and was occasioned by an increase in Federal income taxes and wage increases granted during the year. The increase was effected by a 25c per month increase in the general residential gas service rates and minimum bills, and an 8c per month increase in the minimum bills for general commercial gas service.
TRANSIT UTILITIES
On July 11, 1952 Savannah Transit Company applied for authority to pur chase 12 new motor coaches from General Motors Corporation. These buses were estimated to cost approximately $206,000 and the Company requested author ity to enter into conditional sales contracts with payments over a period of 60 months to finance the payment of these buses. The authority requested was approved.
On April 10, 1952 an application was received from the Metropolitan Transit Company for authority to increase its fares for transporation service 6c above the fares in effect, except that the maximum fare would be 35c. Metropolitan Transit Company is a wholly owned subsidiary of Atlanta Transit Company and evidence in the proceeding indicated that Metropolitan operated at a substantial loss for the period ended March 31, 1952. It was determined that even after substantial proposed fare increases and proposed service curtailments, Metropol itan revenues would be almost completely absorbed by operating expenses and iaxes, with no income tax liability. In view of the very substantial fare increase proposed, the staff of the Commission made a motion a t the conclusion of the hearing, that the consolidated results of operation of both Atlanta and Metro politan be given consideration by the Commission in determining what additional consolidated revenue requirement might be required by both companies. The motion did not .necessarily contemplate an increase in the fares for Atlanta Transit Company, but suggested that a lesser fare might be granted to Metro politan if the consolidated results of operations under the proposed Metroplitan fares produced more than the required revenue for both companies.
The Commission had taken no action on the motion by its staff as of May 22, 1952. On that date Atlanta Transit Company filed an application requesting auth ority to increase fares for transportation service rendered by that Company, and concurrently therewith, Metropolitan filed an amended application seeking a
98

substantially lesser increase on its system, provided increased fares were granted Atlanta Transit Company. Under the amended application Metropolitan sought to increase its fares up to the next even 5c amount from prevailing fares rather than a fare increase of 6c. The application of Atlanta Transit Company sought authority to increase its token fare from 4 for 45c to 5 for 65c and to eliminate the mid-day shoppers ticket fare. The increased fares sought amounted to ap proximately $901,000 for Atlanta Transit annually. Both Metroplitan Transit Company and the Atlanta Transit Company serve the metropolitan area of At lanta. The loss of Metropolitan, while substantial for the size of operation, is relatively small when related to the operations of Atlanta Transit Company. Since Metropolitan fares under the amended proposal were a t a higher level than Atlanta Transit fares, and since it was determined that Atlanta Transit had transferred certain bus routes to Metropolitan which were unprofitable, and since there are undoubtedly many bus routes which would be found to be unprofitable if separated from the entire operation, the Commission determined that the two companies should be consolidated and considered jointly.
During the course of the hearings Atlanta Transit submitted exhibits and evidence based upon a proposed sale and lease-back, under which certain of its vehicles will be sold to the Transportation Equipment Company and leased by Atlanta Transit from that purchaser. While the sale and lease-back of utility property in general does not appear to be in the public interest, two considera tions in this case seemed to w arrannt a more realistic approach. Atlanta Transit purchased its present equipment at a "Bargain Price", which price was substan tially lower than the original cost of the equipment. Depreciation accruals for the Company will aggregate substantially less than the original cost of the equip ment ; therefore, when it becomes necessary to replace such equipment the issuance of additional securities would be required to finance such replacement, even though there were no intervening price changes. The issuance of more securities would, of course, substantially increase the capital structure of the Company and its net revenue requirements, in addition to the higher depreciation charges on the new equipment purchased. Under the sale and lease-back proposal some of this capital would come from a sales price, and to that extent would not have to be raised through the issuance of additional securities or evidences of debt. It is, therefore, clear that the sale and lease-back will result in an even tual lesser amount of outstanding obligations. The second consideration which makes the sale and lease-back more reasonable than otherwise is the fact that Transit securities are not viewed with as much favor by investors as other types of utility securities. This is reflected in the substantially higher rate of return required on the equity capital of Transit Companies. To the extent that future capital requirements of the Company are mitigated through the sale and lease back, there is a substantial reduction in future net revenue requirements.
After certain substantial re-statements of the companies forecasted results of operations the Commission determined that additional annual gross revenue in the amount of approximately $510,000 for Atlanta Transit and $47,000 for Metropolitan would, on a consolidated basis, provide an adequate return. The Commission therefore,authorized the amended fares requested by Metropolitan and granted Atlanta Transit an increase in the token fare from 4 for 45c to 4 for 50c, in lieu of the requested token fare of 5 for 60c. In addition the Commission
99

required that neither company should effect the proposed service curtailments without the specific authorization of the Commission.
During the year the Columbus Transportation Company suffered a strike when it failed to reach a new labor agreement with its employees. The losses in passengers due to its strike, together with the wage increases finally agreed upon, required the Company to request additional revenues. On November 25, 1952 the Commission granted Columbus Transportation Company authority to discontinue the sale of tokens at a reduced rate of 5 for 45c. This resulted in a 10c pash fare being applied to all passengers and provided additional annual revenue of some $20,000.
The following orders were published by the Commission during 1952 regarding major matters pertinent to Telephone, Electric, Gas and Transit Util ities in Georgia.

RATE MATTERS

Name of Utility

TELEPHONE

Davisboro Telephone Company _______ __...___

Seminole Telephone Company ...._,,_______ __

Chickamauga Telephone Company

,

Pineland Telephone Cooperative_________ ____

Standard Telephone Company __ _____j_______

Planters Rural Telephone Cooperative________

Dudley Telephone Company

___ __

Farmers Telephone Company _______ ....

L. and B. Telephone Company ________ _

Waverly Hall Telephone Company_________ _

Consolidated Telephone Company _____ .r-

Standard Telephone Company________ ________

Bulloch Country Rural Telephone Cooperative

Whigham Telephone Company _____ ,_______ _

Southeastern Telephone Company ________ ____

Thomaston Telephone Company______ ________

Southern Bell Telephone & Telegraph Company

Hawkinsville Telephone Company____________

Walker County Telephone Company _________

H art County Telephone Company _____________

South Georgia Telephone Company __________

Date of Order
~ 1- 8-52 . 2-15-52 - 3- 4-52 - 3- 4-52 .. 3- 4-52 .. 4-22-52 - 5- 5-52 . 5- 5 52 - 5- 5-52 . 5-19-52 4 6- 9-52 . 8-18-52 .. 8-18-52
8-18-52 . 8-18-52 .i 8-18-52 10- 7-52 10-27-52 10-27-52 .10-27-52 .12- 3-52

ELECTRIC
Georgia Power Company ______ ....____ _________ ______ 2-15-52 Savannah Electric and Power Company _____ ___________ 9-15-52 Georgia Power Company ...._____________ ____________ ....10- 7-52

GAS Georgia Gas Company _________________.......i.^L ..;.._,__ 6- 9-52

Docket Number
262-U 271-U 297-U 295-U 270-U 324-U 340-U 259-U 335-U 343-U 336-U 366-U 405-U 394-U 369-U 211-U 407-U 426-U 400-U 410-U 342-U
206-U 291-U 206-U
356-U

100

South Atlantic Gas Company--- r . --1--------------------------- 12- 2-52

412-U

TR A N S IT

Atlanta Transit Company ------.---------------- ----- ------------ 9- 4-52

Metropolitan Transit Company

_--L_------- ------------ 9- 4-52

Columbus Transportation Company -- ----------- ------- ----.11-25-52

376-U 445-U 455-U

Name of U tility

LOAN AND SECU RITY MATTERS
Date of Order

TELEPHONE
Cairo Telephone Company --------Planters Rural Telephone Coopera Chickamauga Telephone Company
Nelson-Ball Ground Telephone Company ---Southeastern Telephone Company --------*---- Pineland Telephone Cooperative -- -------------Bulloch County Rural Telephone Cooperative

___ 1-23-52 ___ 3- 4-52
.. ... 3-19-52 __ 4-22-52 ___ 4-22-52 ___ 5-26-52 ___ 6-19-52 ___ 6-23-52
___ 6-27-52 ___ 7-15-52 ___ 8-11-52 ___ 8-18-52 ___ 9-14-52

Docket Number
85-U None 296-U 209-U 323-U 362-U
5-U None 59-U 378-U 296-U 404-U 33-U

Georgia Power Company

ELECTR IC

___ 5-19-52
___ 5-19-52 ........10-30-52

346-U
347-U None

GAS
Georgia Gas Company ____...--------- 7---- -------------- ___ 1- 8-52 South Atlantic Gas Company_____ -------- ----,-- ---- ___ 5-19-52 Atlanta Gas Light Company ...______________ _____ ___ 11-25-52

TR A N S IT Savannah Transit Company __ --------------------------- ___ 7-11-52

TELEPHONE U TILITIES

OTHER MATTERS

Telephone, Electric, Gas and Transit.
Name of U tility Gas Light Company of Columbus

Type of Order
Dividends

Date of Order 3-14-52

278-U 341-U 444-U
398-U
Docket Number
9043-A

101
LIBRARIES Of GEOR&h

Atlanta Transit Company Georgia Power Company

Sales-Lease Back 9- 4-52

Amortization

10-30-52

Respectfully submitted,
Matt L. McWhorter, Chairman Perry T. Knight, Vice Chairman Allen Chappell, Commissioner Walter R. McDonald, Commissioner James A. Perry, Commissioner

376-U
467-U

81st REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1953
103

AvMom mmm rnrnm
w oizim m co

81ST REPORT OF GEORGIA PUBLIC SERVICE COMMISSION
TO HIS EXCELLENCY GOVERNOR HERMAN TALMADGE:
As provided by law, the Georgia Public Service Commission submits herein its 81st Annual Report of the regulatory activities of the Commission for the year ending December 31, 1953.
PERSONNEL AND STAFF
There were no changes in the personnel of the Commission until April 1st, at which time Honorable Crawford L. Pilcher, of Warrenton, Georgia, was appointed to fill the vacancy created by the resignation of Honorable Perry T. Knight, Vice Chairman, who resigned to accept appointment to the position of Associate Public Service Commissioner. Effective August 27, 1953, Matt L. McWhorter, was re-elected Chairman and Allen Chappell was elected Vice-Chairman for the ensuing two years; the Commission as now constituted being: Matt L. McWhorter, Chairman; Allen Chappell, Vice-Chairman; Walter R. McDonald, Commissioner; James A. Perry, Commissioner; and Crawford L. Pilcher, Commissioner.
In November the Commission again moved its offices, having been located at its new quarters at 30 Capitol Square only from June 1950 until November 1, 1953, the State Building Authority having acquired this property on which it plans to erect a Judicial Building. The Commission has been provided, however, with adequate offices and hearing room space on the fourth and fifth floors of the Atlanta National Building, 50 Whitehall Street, Atlanta, Georgia.
During the year the Commission heard 406 formal cases and issued 322 formal orders. There were numerous informal decisions and miscellaneous insur ance orders.
Following the resignation of Mr. Sam H. Flint, mentioned in the last report, the Commission advanced Mr. David O. Benson, Transportation Rate Specialist, to the position of Transportation Rate Expert.
Subsequent to the resignation of Mr. Sam H. Flint on December 31, 1952, the Commission adopted the following resolution:
WHEREAS, Sam Hall Flint, a native son of Georgia and a graduate of Piedmont College, became associated with the Georgia Public Service Commission on the 10th day of March, 1946, as the Director of its Transportation Rate Division, with a record of distinguished active Naval service as a Lieutenant in the Pacific theatre, and
WHEREAS, he came to the Commission possessed of a family background of high legal attainment and a tradition of interest and concern in transportation problems with several years experience in directing the traffic affairs of the Tallulah Falls Railroad, with his great capacity for learning, studious application and useful productive effort as well as with his innate legal ability, and
WHEREAS, Sam Hall Flint, as Director of the Commission's Transportation Division, has at all times displayed an unerring and fine sense of appreciation and understanding of the Commission's public responsibility, regulatory duties and
105

obligations which made possible the invaluable service he has rendered the Com mission and the public, and
WHEREAS, as a capable rate expert and department director h has given unstintingly of his vast intellect, energies and resourcefulness far beyond the ordinary demands of his position, and through his prodigious and useful pro ductivity has brought credit to this Commission and distinction to himself in work before this agency, in the broader regulatory field of advocacy before federal agencies and in outstanding committee work for the National Association of Railroad and Utilities Commissioners, and
WHEREAS, his retirement from the regulatory field to accept a well deserved advancement in his chosen profession in private industry brings the Commission and his fellow workers to the forceful realization that his departure not only will leave a void in the loss of his pleasing, infectious and inspiring personality and in the loss of his highly skilled and technical services, but also leaves the certainty that he will continue to render outstanding public service in his new executive position as General Traffic Manager for The Quaker Oats Company,
NOW, THEREFORE, BE IT RESOLVED, that the resignation of Sam Hall Flint as Director of the Transportation Rate Division of the Georgia Public Service Commission, is accepted with great reluctance in the knowledge of a distinct and serious loss to the Commission, the public and the general regulatory field, accepted however with the full certainty that he will contribute constantly and substantially to the maintenance and success of our American way of life, its economic system of private initiative and private enterprise, and that his leaving brings mixed emotions of sadness and a great sense of loss yet a feeling of pride in this recognition of his sterling character, great ability and true worth, and
BE IT FURTHER RESOLVED, that his associates bid him Godspeed and wish for him a generous portion of life's richest blessings which he so well deserves, and
BE IT FURTHER RESOLVED, that a copy of this resolution be spread upon the official minutes of this Commission.
ADOPTED BY THE COMMISSION, this the 8th day of January, 1953.
The only other change in the staff of the Commission was occasioned by the untimely death of the Commission's Reporter and Personnel Officer, Mr. Frank A. Knox, who suffered a heart attack. Mrs. Mae Montgomery, who had for some time been assisting Mr. Knox, was appointed to the position of Reporter, and the personnel duties incident to the work of the Commission have been assumed by the Commission's Executive Secretary and Legal Aide, A. O. Randall, who also continues to be in charge of motor carrier enforcement.
MOTOR BUS AND TRUCK REGULATION
The Commission has again employed Mr. Earle McDaniels, Ringgold, Georgia, as a Motor Carrier Inspector. Mr. McDaniels required no training for this work, having worked with the Commission as an Inspector for several years prior to December 31, 1944, at which time he resigned to assume the duties as Ordinary
106

of Catoosa County, in which capacity he had served for eight years continuously.
There was an increase in the amount of license and certificate fees collected during the year from $150,635.50 to $171,711.50, broken down as follows:
Certificate fees and transfer fees, $35.00 and $7.50, respectively.-- $ 2,052.50 License fees 6,003 at $25.00 each____________________________ 150,075.00 Reciprocal fees, 18,192 at $1.00 each____ :__ .________________ 18,192.00 Pick-up truck fees, 1,392 at $1.00 each_____________________ . 1,392.00
TOTAL FOR 1953 _______________ _______________ -- $171,711.50
Listed below are some of the most important decisions of the Commission during the year involving fixed route bus and truck operations:
Approved--Application of Southeastern Motor Lines, Inc. to acquire the capital stock and control of Georgia-Tennessee Coaches, Inc.
Approved--Application of Continental Crescent Lines Inc. to acquire the capital stock and control of Crescent Stages, Inc.
Approved--Application of Ryder Truck Rental System, Inc. to acquire the capital stock and control of Great Southern Trucking Company.
Approved--Application of McLean Trucking Company for transfer of all certifi cates from A. C. A. Motor Lines subject to approval of a similar application by the Interstate Commerce Commission.
Approved--Application of Clinton L. Sanders, dba Perkins Freight Line, for : transfer of all certificates from Perkins Freight Line, Inc.
Approved--Order cancelling all certificates issued to Service Transit Lines, Inc. for discontinuing operations.
Approved--Amendment of Safety Rule 63 prescribing that the rear-most wheels of all vehicles be equipped with wheel flaps.
Approved--Application of Simpson Trucking Company for Class "A" Certificate to operate between Winder and Braselton, Georgia-
Approved--Application of Savannah Beach Bus Line to transfer Class "A" Cer tificate issued to Atlantic Stages, Inc. to operate between Savannah and Savannah Beach, Georgia.
Approved--Application of Southern Stages, Inc. for transfer of certificates issued to Service Coach Line, between Macon and Reidsville, via Irwinton, Dublin and Lyons, subject to approval of a similar application by the Interstate Commerce Commission.
Approved--Application of Service Coach Line, Inc. to discontinue all operations between Milledgeville and Dublin, via Irwinton, and between Irwinton and Wrightsville.
Approved--Application of Southern Stages, Inc. to acquire all capital stock and control of Atlantic Stages, Inc.
107

Approved--Application of Southern Stages, Inc. to discontinue all operations between Gainesville and Monticello, Ga. via Winder and Monroe.
Approved--Application of Great Southern Trucking Company and Georgia High way Express, Inc. to acquire the operating rights of Beck Motor Lines, Inc., subject to approval of similar application by the Interstate Commerce Com mission.
Approved--Application of Southeastern Greyhound Lines to acquire the operating rights of Atlanta Northern Lines, Inc. between Atlanta and Marietta, Ga.
Approved--Application of Dance Freight Lines, Inc. to acquire the operating rights of Atlanta-Asheville Motor Express, Inc. between Atlanta and Athens, via Lawrenceville and Winder, and between Winder and Commerce, via Jef ferson.
For lack of space we have not listed decisions on local and limited "fixed route" operations, and we have not listed any decisions involving "no-fixed route" operations. However, we mention one decision granting the application of Petroleum Carrier Corporation for a Class "B" Certificate to transport asphalt and asphalt emulsion between all points in Georgia, for the reason that a pro testant, Davis Transport Company, has filed a petition in Fulton Superior Court to set aside this decision and enjoins the applicant from operating. At the close of the year his case had not come on for trial.

TRANSPORTATION
General
During 1953 the Commission disposed of 62 formal proceedings involving transportation rate and service matters. Those docketed proceedings, almost all of which, were made the subject of formal written orders, are listed below with indication as to the disposition of each such proceeding. In addition, the Com mission during 1953 disposed informally of 243 transportation rate and service matters.

Docket No. 3rd Supt. 9508- A) 9509- A)
94-R
77-R

FORMAL CASES FOR YEAR 1953

Date

Subject

Disposition

1-8-53 Petition of rail carriers for post- Approved

ponement of effective date of

January 20, 1953 prescribed in

the Commission's Second Supple-

v

mental Order of Dec. 23, 1952

1-19-53 Application of rail carriers to in- Approved crease minimum weight on iron and steel articles from 36,000 pounds to 40,000 pounds

1-19-53 Application of the Central of Geor- Approved gia Railway Co. to discontinue agency service at Juniper

108

95-

R

86-R
1st Supt. 365-M

524-M
4th S up t. 9508- A) 9509- A)

85-R

96-

R

97-

R

99-R

102-R

1-19-53 Application of Railway Express Approved Agency to close express office at Winterville

1-19-53 Application of Georgia Railroad to Approved discontinue agency at Winterville

1-19-53 Petition of Class "A" Motor Car Approved riers of Property that original order in this docket be modified to require use of less-truckload first class rates in Rate Table No. 1 of GMCRB No. 1 in com puting divisions

1-19-53 Application of S. & S. Motor Lines Approved to increase its fare between Moultrie and Spence Field to 25 cents

2-

5-53 Petition of motor carriers oRf epmeo val of in

troleum products for reconsider creases for

ation of Second Supplemental distances up to 80

Order herein seeking removal of miles approved and

increases prescribed in motor elimination of

carrier rates for distances from differentials denied

51 to 100 miles and elimination

of prescribed differentials be

tween rail and motor carrier

rates

3-

3-53 Application of Louisville & NDaesnhied

ville Railroad to discontinue

agency at Eton

3-3-53 Application of the Savannah & At Approved lanta Railway for permission and approval to condemn certain property in Savannah

3-3-53 Application of Central of Georgia Approved Railway to discontinue agency at Perkins

3-3-53 Application of Atlantic Coast Line Denied Railroad to discontinue agency at Norman Park

3-3-53 Application of Railway Express Approved Agency to close express office at Everett

109

9508- A) 9509- A)
9311-A
52-R 106-R 109- R
111-R
108-R
110- R 98-R 574-M

3-3-53 Application of Colonial Oil Indus- Approved in part tries, Inc. for equalization of the Savannah to Augusta motor car rier rate on petroleum products in bulk with that applying from Charleston, S. C. to Augusta

3-18-53 Rule Nisi against all Class "A" Dismissed Motor Carriers of Property to show cause why all outstanding Section 22 Quotations should not be cancelled

3-18-53 Complaint of Atlas Plywood Corp., Dismissed et al, against rail rates on logs, carload

3-24-53 Application of Atlanta & West Approved Point Railroad to discontinue passenger trains Nos. 31 & 32 between Atlanta and West Point

5-11-53 Application of Central of Georgia Withdrawn upon

Railway to discontinueagency at agreement with

Godfrey

labor organization

to permit reduction

in hours of service

5-11-53 Application of Atlantic Coast Line Approved Railroad to discontinue passen ger trains Nos. 122 and 123 be tween Manchester and Ga.-Ala. State Line

5-11-53 Application of Central of Georgia Denied with

Railway to discontinueagency at authority granted

Farmington

to reduce hours of

service to 4 hours

per day

5-11-53 Complaint of Woolfoik Chemical Dismissed Works, Ltd. against rail rates on fullers earth, carload

5 - 1 1 - 5 3 Application of Railway E x p r e s s Approved Agency to close express office at White Oak

5-12-53 Application of Smoky Mountain Approved Stages to make changes in sched ules between Hollywood and Elberton

110

114- R
115- R
575-M
113-R
103- R) 104- R) 105-R) 510-M
1st Supt. 510-M 1st Supt. 103- R) 104- R) 105- R) Supt. 115-R
5th Supt. 9508- A) 9509- A)
Supt. 9508- A) 9509- A)

5-26-53 Application of Railway Express Approved Agency to close express office at Wayside

5-26-53 Application of Seaboard Air Line Denied Railroad to discontinue agency at
Clyo

5-26-53 Application of household goods Approved with

carriers for increased rates and modification of

revised rules

rules

5-26-53 Application of Central of Georgia Approved Railway to discontinue agency at Wayside

5-26-53 Application of Railway Express Approved in part Agency to increase commodity with exceptions
rates to interstate level

5-

26-53 Application of motor carriers to Approved with

make applicable in Georgia uni- exceptions and

form class rates and classifica- modifications

tion corresponding to rail Docket

28300 and to make other in

creases and modifications in rate

structure

6-1-53 Clarification of Order as to can- Order revised cellation of Exception Ratings

6-

8-53 Clarification of order to limit in- Order revised

crease in Tariff GPSC No. 271

to apply only on milk, cream and

related products in ordinary milk

cans

6-

11-53 Request of Seaboard Air Line Rail- Granted

road for extension of time to file

reconsideration of Commission's

order of May 26, 1953 denying

authority to discontinue agency

at Clyo

6-30-53 Application of motor carriers of Denied petroleum products for elimina tion of differentials between rail and truck rates for distances over 100 miles

7-

6-53 Application of Central of Georgia Approved for both

Railway to publish rate on pe- rail and motor

troleum products in bulk from carriers

Savannah to Knox same as to

Macon

111

1st Supt. 115-R
112-R
118-R
543-M
117-R 120-R
602- M) 603- M) 604- M) 605- M) 606- M) 116-R

7-

23-53 Petition of Seaboard Air LineDReaniiled

road for reconsideration of Com

mission's order of May 26, 1953

denying authority to discontinue

agency at Clyo

8-4-53 Application of Georgia Railroad to Approved with revise Saturday hours of service modifications at Conyers, Covington, Craw ford, Madison, Thomson and Washington

8-7-53 Application of Central of Georgia Approved Railway to discontinue trains 3 and 4 between Macon and Co lumbus

8-

27-53 Application of Interurban TrDanensiet d but authority

Lines to eliminate commutation granted to increase

! fares

commuter fares to

90% of one way

fare

9-10-53 Application of Railway Express Approved Agency to close express office at Maxeys

9-10-53 Application of Georgia Railroad to Authority granted discontinue agency at Maxeys to reduce hours of service a t both Maxeys and Stephens to 3% hours per day with one agent to serve both stations or to discontinue agency at Maxeys if unable to provide
authorized part time service

9-15-53 Application of major bus lines to Denied without

increase bus express rates and prejudice and

charges

investigation

initiated

9-15-53 Application of Louisville & Nash- Approved with ville Railroad to discontinue conditions as to passenger service on mixed freight service trains Nos. 7 and 8 between Cartersville and Ga.-Tenn. State Line
112

119-R 122- R
126- R 127- R 123- R
124- R
636-M 130-R 1st Supt. 124- R 125- R
2nd Supt. 510-M

9-15-53 Application of Railway Express ^ ^ T a n d

Agency to close express office

.

at White, Eton, Fairmount and Ranger and denied

Ranger

as to Fairmount

9-15-53 Application of Central of Georgia Approved Railway for authority to increase by 15% its 5 day round trip coach passenger fares

9-17-53 Application of Atlantic Coast Line Approved Railroad to discontinue Beach as flag stop for its passenger trains Nos. 101 and 102

9- 17-53 Application of Central of Georgia Withdrawn Railway to discontinue agency at Lovejoy

10-5-53 Application of Central of Georgia Approved with con

Railway to consolidate passenger ditions as to han

trains Nos. 7 and 33, southbound dling of mail and

and 8 and 32 northbound between express and addi

Macon and Albany

tional stops at

Smithville and

Leesburg

10- 5-53 Application of Central of Georgia Denied but authority

Railway to discontinue agency at granted to reduce

Bishop

hours of service to

3 hours per day

10-7-53 Application of City Coach Line for Approved increased fares for children

10-15-53 Application of Railway Express Withdrawn Agency to close express office at Hortense

10-21-53 Application of Railway Express Denied but authority

Agency to close express office granted to reduce

at Bishop

service to 3 hours

per day

10- 21-53 Application of Central of Georgia Denied Railway for reconsideration of Commission's order of October 5, 1953 denying authority to dis continue agency at Bishop

11- 19-53 Application of Class "A" Motor 6 month extension Carriers of Property for 12 granted month extension of expiration date of November 26, 1953 pre scribed in order of May 26, 1953

113

661-M 131-R
132-R 134-R 135-R
136-R 683-M
Supt. 125-R
141-R

11-19-53 Application of Atlanta Baggage & Approved Cab Company for increased fares between Atlanta and Atlanta Municipal Airport

11-19-53 Application of Georgia Southern Denied with pro-

and Florida Railroad to discon- vision for review

tinue agency at Sparks

after six months

trial period with

improved facilities

11- 19-53 Application of Railway Express Denied Agency to close express office at Sparks

11-19-53 Application of Macon, Dublin & Approved Savannah Railroad to discontinue agency at Danville

11- 19-53 Application of Railway Express Approved subject to

Agency to close express office simultaneous

at Danville

reestablishment of

express office at

Allentown

12- 3-53 Application- of Georgia Northern Approved Railroad to discontinue passen ger trains Nos. 1, 2, 3, 4, 5 and 6 between Albany and Moultrie

12- 18-53 Rule Nisi against all Class "A" Rates and charges Motor Carriers of Passengers to proposed later show cause why the Commission prescribed with should not prescribe uniform bus modifications express rates and charges

12-18-53 Petition of Central of Georgia Discontinuance of Railway for further considera- agency approved tion of Commission's order of October 5, 1953 denying author ity to discontinue agency at Bishop

12-30-53 Application of all rail carriers to Withdrawn

k

publish rate of 27 cents per 100

pounds on petroleum products, in

bulk, to destinations in Georgia

over 200 but not over 240 miles

from the pipe line outlets and

marine terminals

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BUS FARES
There were no applications during 1953 for general increase in the fares of the bus lines operating intrastate in Georgia, nor did any of the major lines seek individual increases. It was necessary, however to authorize further in crease in commutation fares for Interurban Transit Lines, Inc., in an effort to reduce that company's operating loss and to authorize an increases of 5 cents in the fare of S. & S. Motor Lines between Moultrie and Spence Field for the same reason. Interurban Transit Lines, Inc. had sought to totally discontinue the sale of commuter tickets but such authority was not granted. The Atlanta Bagg age & Cab Company, which transports passengers between Atlanta and the Atlanta Municipal Airport (principally passengers arriving or departing by air from the airport) sought increase in its fare for such transportation and in view of the showing by the carrier that it had earned a net profit during the first 8 months of 1953 of only $692.00, authority was granted to increase this fare to $1.25, including state and federal taxes, a level which had been found to be standard at other airports in the United States for the distance here involved.
BUS EXPRESS RATES
By the filing of new tariffs early in the year the principal bus lines ill Georgia sought to substantially increase their charges for the transportation of newspapers and express shipments. The Commission declined to accept the substantial increases proposed without justification therefor at public hearing and after the public hearing held on July 29 still declined to approve the proposed charges for the reason that such proposed charges varied as much as 87% between the carriers without showing of justification for such variance. The Commission specifically retained jurisdiction over the m atter for the purpose of developing additional information and promulgating for application by all Class "A" Motor Carriers of Passengers authorized to transport express a uni form tariff of express rates, rules and regulations. To secure the necessary infor mation the Commission called upon the carriers for a detailed study of the ex press movements between points on their lines in Georgia for a full week. From the results of this study the Commission developed a uniform scale of rates and by Rule Nisi dated December 18 cited all the bus lines in Georgia to show cause why this scale should not be prescribed for uniform application by all such car riers. Hearing is to be held on this Rule Nisi on January 14, 1954.
TRUCK RATES
Shortly after the rail carriers in 1952 made their uniform class rate struc ture effective on interstate traffic in the territory east of the Rocky Mountains and on intrastate traffic in Georgia, and in many of the other states in the affected territory, the motor carriers began similar revision of their class rate structure and have already made effective on interstate traffic in the South the Docket 28300 level of class rates, including the full Ex Parte 175 increase of 15%. Hearing was held on April 13 on application of the Class "A" Motor Carriers of Property to make this uniform scale of class rates applicable in Georgia and to apply in connection therewith the uniform ratings published in National Motor Freight Classification No. A-l--such classification reflecting
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to a considerable degree the same ratings as published by the railroads in their Uniform Freight Classification. In connection with this application, the Georgia truck lines sought to cancel many then applicable exception ratings, both in the Georgia Intrastate Tariff and in the agency Exceptions Tariff. Combined with the proposed adjustment of class rates to the uniform basis was the application of these carriers to increase the minmum charge per less-truckload shipment to $2.30 for distances in excess of 80 miles with the charge to remain at $2.00 for the shorter distance. Authority was also sought to increase exceptions rates and specific commodity rates by 15% in lieu of the 6% previously granted by the Commission in April of 1952. The evidence presented at the hearing showed that the major Georgia carriers during 1952 had an operating ratio of 96 as a group and that many individual carriers operated very near 100. The Commission recognized the need of the carriers for uniformity and for additional revenue and approved the rate adjustment sought, with some slight modifications. Care was taken, however, to specifically retain jurisdiction in the m atter in order that there might be promptly rectified any unreasonable or discriminatory individual ratings or charges resulting from this overall adjustment. The Commission found merit in' the contention of the protestants in this proceeding that it would be unreasonable to continue to apply exceptions ratings higher than the newly established uniform classification ratings and directed that immediate steps be taken to adjust these anomalous situations.
The household goods carriers again came before the Commission with the re quest to increase rates and also sought minor increases in accessorial charges. The basis proposed varied from 8% to 34% higher than the existing rates in Georgia but still were substantially lower than rates applicable on interstate traffic to and from points in Georgia. The major rule change sought was to make applicable on shipments within the State of Georgia the contract terms and conditions applying in connection with the Uniform Household Goods Bill of Lading used on interstate traffic - those contract terms and conditions substan tially lessening the liability of the carriers in comparison with the liability presently imposed by this Commission. After a hearing the Commission permitted the increase sought in the rates and accessorial charges but denied the proposed limitation of liability.
RAILWAY EXPRESS
Once again the Railway Express Agency applied for rate increases - three applications being filed in December of 1952 and in January of this year seek ing upward adjustment of commodity rates by amounts varying from 10% to 26.8%, corresponding increases having already been made on interstate traffic.' The Commission found that the Express Agency had not justified the imposition of the full measure of increase sought on the traffic involved in this proceeding and permitted only a 10% increase in the rates on drugs and related articles where the 26.8% increase had been sought. Increase to the interstate level was approved as sought on the other traffic.
The principal development in connection with the Railway Express Agency during 1953 has been the increased efforts of the agency to close the smaller express offices. In many instances the closing of these offices was not entirely voluntary in that the railroad agent in the smaller towns generally doubles as the
116

Express Agent also, and when the railroad station agency service is discontinued it is often impossible to find a local citizen who will represent the Railway Express Agency in that town for compensation reasonably related to the amount of revenue earned by the Express Agency a t that point. During the year 4 ex press offices were closed due to the closing of the corresponding railroad agencies and the Commission authorized the closing of 5 other office^ upon showing that the use of the service was insufficient to justify the expense of operation. In 3 other instances authority to close express offices was denied as not justified by conditions at those points.
RAILROAD PASSENGER SERVICE
On March 24 the Commission issued an order authorizing the Atlanta and West Point Rail Road Company to discontinue its passenger trains Nos. 31 and 32 between Atlanta and West Point (en route to Montgomery, Alabama). The evidence submitted at the March 11 hearing showed that the riding on these two trains (other than special military movements) had declined to an average number of 19.5 passengers per trip in spite of the fact that the carrier had maintained for some time fares reduced to a basis as low as 1.45 cents per mile and had extensively advertised such reduced rates. The out-of-pocket losses incurred during the 8 month test period shown amouted to $34,300 and the ex pense of the train crew alone was shown to be more than the total passenger revenue. Three of the principal cities served by these trains advised that they had no opposition to the proposed discontinuance of service provided that sub stantially equal facilities were maintained for handling mail and express, and the discontinuance was approved by the Commission subject to that understanding.
In 1949 the Commission authorized the Atlantic Coast Line Railroad Company to reduce the service provided by its passenger trains Nos. 122 and 123 between Manchester, Georgia and the Georgia-Alabama State Line at a point near Abbottsford (enroute to Birmingham, Alabama) to tri-weekly schedules as an effort to maintain some degree of passenger service on this line where the riding had fallen off to such low level as to no longer justify daily passenger service. By applica tion dated March 9 the Atlantic Coast Line Railroad Company sought total re moval of these passenger trains with showing that the operational loss still amounted to over $70,000 per year, even on the tri-weekly basis. The lack of public use of these trains was demonstrated by statistics showing that the trains handled an average of only 14.4 passengers per trip and that on an average the largest number of passengers on either train at any one time was less than 9. In addition, it was shown that the wage expense of the train crew alone amounted to almost three times the total revenue earned from the operation of the trains. By order issued May 11 the Commission permitted the discontinuance of these two last trains on this route.
On August 7 the Commission authorized the Central of Georgia Railway Company to discontinue operation of its passenger trains Nos. 3 and 4 between Macon and Columbus. Here also the primary opposition was concerned with the future handling of mail and express, the evidence showing that an average of only 7.9 passengers per trip utilized the services of these trains. In this instance also the expense of the train crew alone greatly exceeded the total passenger
117

revenue. The Central of Georgia Railway Company agreed to make provision for the continuation of mail and express service by the substitution of motor carrier operation, and with that understanding which satisfied the principal objection to the application, the discontinuance was permitted.
On June 3, the Louisville & Nashville Railroad Company filed application seeking authority to discontinue operation of passenger service on its mixed trains Nos. 7 and 8 operating between Cartersville, Georgia and the GeorgiaTennessee State Line near Cisco, Georgia (en route to Etowah, Tennessee), these trains providing the last local passenger service between those points. Practically no use was being made of the passenger facilities of these mixed trains, the evidence showing that train No. 7 handled an average of less than .06 passengers per trip and train No. 8 handled an average of less than .02 pass engers per trip---less than 1 passenger per week on both trains. No United States Mail was handled on these trains and the only opposition to the application was directed at the effect on the express service and the anticipated effect on the freight service rendered by these trains. The Commission found that the opera tion of the passenger service on these mixed trains provided absolutely no pas senger service of value to the public, and accordingly authorized the removal of the passenger equipment from these mixed trains. Specific provision was made in the Commission's order, however, requiring the continuation of the local freight service rendered by these two trains at substantially the same hours in recogni tion of the fear of protestants that the freight schedules might be disrupted. There was not found sufficient movement of express service to justify the re quirement of substituted motor carrier service for the handling of such traffic-- there being available at all but one point common carrier truck service for the handling of this type of traffic.
By application dated August 28 the Central of Georgia Railway Company sought authority to consolidate its Passenger Trains Nos. 7 and 33 Southbound and Nos. 8 and 32 Northbound between Macon and Albany and to adjust the schedule of its Passenger Trains Nos. 7 and 8 between Albany and the GeorgiaAlabama State Line (en route to Dothan, Alabama). This application technically sought consolidation of Local Trains 7 and 8 with through Trains 32 and 33 (The ` Southland") between Macon and Albany, but approval of such application would effectively result in discontinuance of the local trains between those points. The carrier's application was based on the annual loss of approximately $14,000 incurred in the operation of the two local trains and the contention that its "Southland" trains, together with its Trains Nos. 17 and 18 (the Flamingo), would provide adequate service between Macon and Albany. The proposed change in schedule between Albany and the State Line was sought in order to make direct connection with the "Southland" at Albany and additionally to provide more attractive service for through passengers going to and from Panama City, Florida and the resorts in that area. The Commission found from the evidence that the need of the area for Trains 7 and 8 did not justify the loss being in curred in the operation and authorized their discontinuance, subject to the simultaneous establishment of substituted motor carrier service for the trans portation of mail and express to and from points between Macon and Albany formerly provided such service by Passenger Trains 7 and 8. In addition, the Commission found justified the protests of representatives of Smithville and Lees-
118

burg and directed in its order that provision be made for the consolidated trains to stop at both of those points.
The Georgia Northern Railway Company on October 17 sought authority to discontinue operation of a rail-motor passenger coach between Albany and Moul trie which it has operated for a number of years in lieu of regular passenger train service. There was no opposition to this application, the rail motor coach handl ing an average of less than 2 passengers per trip. In consideration of the sub stantial losses being incurred by this small railroad in the provision of this un used passenger service, the Commission on December 3 authorized the discon tinuance of operation of this passenger service betwen Albany and Moultrie subject to the provision that adequate substitute facilities would be provided for the handling of mail and express.
In August the Central of Georgia Railway sought authority to increase by 15% its five day round trip coach passenger fares. These fares were then based on a rate of 1.32 cents per mile--1.155 cents per mile lower than the round trip rail fares generally applicable in the State of Georgia and in the other states in the South. Upon showing that the fares in question had not been increased since 1947 and in recognition of the increased cost of providing railroad passenger service (the passenger service loss on the Central of Georgia Railway in 1952 having been in excess of 4 million dollars) the Commission authorized the proposed in crease in fares effective October 1. The resultant fare basis of 1.518 cents per mile is still among the lowest rail passenger fares in the United States and is considerably below the fares maintained generally by both the railroads and the bus lines in Georgia and in the South.
RAIL FREIGHT
For the first time in several years there was no application by the rail roads for general increase in freight rates.
Adjustments were sought in the rail and motor carrier rates on liquid petroleum products in bulk prescribed by the Commission in 1950, efforts being made by the motor carriers to have removed the differentials prescribed between the rail and truck rates. Permission was granted to adjust the short haul rates downward in consideration actual and potential private carrier competition and some slight adjustment was made in the differential for certain mileage blocks. However, the principle of the differential in rates origially found justified by this Commission because of the difference in the cost of service of these two modes of transportation was substantially maintained and still applies on this traffic.
RAIL AGENCY SERVICE
The Commission continues to receive increasing number of applications from the railroads seeking discontinuance of agency service a t the smaller stations, such applications being almost uniformly based on the contention that the volume of traffic a t such stations has declined to such an extent as to no longer justify the expense of maintaining the agency. During the year the Commission received twelve such applications for discontinuance of agency service. These applications
119

showed that the substantial increases in wage cost incurred by the railroads since World War II have inflated the direct cost of providing agency service to the point where in many instances a t small stations the carriers are paying more to provide agency service than the total revenue earned on traffic moving to and from th at station. Even where traffic moving to and from the smaller stations provides revenue sufficient to pay the direct operating cost of the agency, in most instances little is left over to compensate for the cost of line-haul transporation of this traffic. Under such circumstances it is difficult on purely econ omic grounds to justify denial of applications to discontinue the service. How ever, the Commission found that of the twelve applications filed during 1953 the public convenience and necessity of the affected areas would not be adequate ly served in six instances, and accordingly denied authority to discontinue agency service as Bishop, Clyo, Eton, Farmington, Norman Park and Sparks. Authority was granted for the discontinuance of agency service at Danville, Juniper, Maxeys, Perkins, Wayside and Winterville.
The increasing number of station agency discontinuance applications being filed and the wide variance in the showings made by the carriers in such cases prompted the Commission to prepare and distribute to the carriers a suggested form for the presentation of such applications, such form being designed to show clearly the operating results at the station. These operating results when weighted against the public need for and use of the service in the affected points are regularly used as the basis for the Commission's decisions in these proceedings.
Several years ago the railroads were granted general authority to close their agencies on Saturdays in accordance with the five day work week then granted to their employees. In some instances, exceptions were made to this general authority in order to care for special situations at certain stations. Among other exceptions to the general five day week agency service, the Georgia Railroad had been keeping its agencies open on Saturdays at Conyers, Covington, Crawford, Madi son, Thomson and Washington. During the year the Georgia Railroad reached the conclusion that full six day per week agency service was no longer required a t these stations and sought authority to close its agencies a t Conyers, Covington, Crawford and Madison on Saturdays and to reduce the hours of service of its agencies a t Thomson and Washington to three hours on Saturday. After full investigation and public hearing the Commission granted the authority sought except th at the railroad was required to maintain three hours service on Satur days a t Madison.
WESTERN & ATLANTIC RAILROAD
On November 21 an inspection trip of the Western & Atlantic Railroad was made by members of the joint Western & Atlantic Committee of the Georgia Legislature. During the two years since the inspection by the General Assembly on February 2 1951 net additions and betterments were reported by the lessee in the total amount of $492,089.23.
One of the principal projects during the last two years was the relocation and reconstruction of Bridge 70.4 which carries the main line single track of the Western & Atlantic Railroad over Oothkalooga Creek a t a point approximately 2
120

miles north of the station at Adairsville. The lessee, the Nashville, Chattanooga &St. Louis Railway, had found the previous bridge to be in such condition as to necessitate reconstruction and that it would be wasteful and inefficient to re build the bridge a t the same location due to the fact that the track parallels the creek for approximately 1000 feet before reaching the bridge and th at the creek often overflowed onto the main line in this area. This project involved relocation of the main track for a distance of 5700 feet and the total cost, including the bridge and the relocation of the main line, amounted to $89,710.53 with the net charge to additions and betterments of the Western & Atlantic Railroad being reduced by the retirement of the old facilities to $66,440.40.

The annual report of the Nashville, Chattanooga & St. Louis Railway as lessee of the State-owned Western & Atlantic Railroad for the calendar year 1953, shows for the net expenditures charged to the accounting classification "Addi tions and Betterments" by classes of railroad property the following amounts:

Improved and additional track materials ------- -------------$ 40,563.68

Bridges, trestles and culverts

------------------------- -- 111,610.97

Yard tracks and sidings ___ _--______ ______--------------- - 5,509.29

Public improvements ___...-- -- ----- ---------------- -- --

6,227.17

Signals and interlocks ___ ________ _____ __ ___ ________ 56,278.56

Station and Office Buildings -- ---------------- --J~------ 31,242.40

Water stations (adjustment in accounts ordered by I.C.C.)-- 15,906.00

Purchase of land _____ ____ __^

--------- ---------- 4,244.65

The above net additions reported are after deduction for the value of the property replaced during the year and total $271,582.72 fr 1953. The net capital expenditures made by the Nashville, Chattanooga & St. Louis Railway for addi tions and improvements to the Western & Atlantic Railroad from beginning of the lease in 1919 through December 31, 1953 amount to $7,269,852.

GEORGIA PORTS AUTHORITY
The Commission, in furtherance of its agreement with the Georgia Ports Authority to handle its transportation matters, assisted the Ports Authority in its negotiations with the line-haul railroads serving Savannah for a con tract covering the switching services of the Ports Authority's Savannah State Docks Railroad and the compensation to be paid to that railroad for such switching services, as well as the conditions under which that switching service would be performed. Contract acceptable to all parties has now been agreed upon.
The Commission prepared and filed with the Interstate Commerce Commis sion the necessary tariffs and related documents necessary before the Savannah State Docks Railroad could begin operating as a common carrier under the authority obtained from that Commission last year. This operation was initated on March 1.
The Ports Authority found that many of its charges were inadequate to meet the full costs of providing the service but that the level of such charges were controlled by the amounts charged by the railroads for the same services both at Savannah and other South Atlantic Ports. The Commission assisted the Ports Authority in negotiations with the railroads seeking adjustment of the inade quate charges and some relief is expected in the near future.

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PARTICIPATION IN INTERSTATE RATE CASES

On January 27 we joined with the other six southern states in filing exception to

the report proposed by the Examiner in I.C.C. Docket No. 30958, Reduced Rates On Pulpwood In Southern Territory. This proposed report was issued following

!

the extensive public hearing held last year in this docket in which the Interstate

Commerce Commission undertook investigation into the reasonableness of the

uniform level of pulpwood rates established in 1951 by the major pulpwood car

rying railroads on both interstate and intrastate traffic in the States of Alabama,

Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia. The

proposed report was very unfavorable in that it recommended that the Interstate

Commerce Commission find unreasonable the uniform pulpwood rates we were

defending and we vigorously attacked such finding as not being properly support

ed by the record and based on mis-interpretation of the evidence submitted. The

effect of the proposed report and order, if approved, would be to base the single

line rates on 160% of the March 27, 1938 Roanoke Rapids level rather than upon

150% thereof as are based the rates under investigation. We sought oral argu

ment in order to fully bring before the Interstate Commerce Commission our

firm contention that the rates under investigation were proper and necessary to

obtain the objectives of restoration of uniformity of rates, retention of pulpwood

and paper products traffic to the rail carriers and the preservation of the econ

omic health of the paper industry which is so important to the economy of the

southern states - which objectives had been sought through long drawn out

studies, investigations and discussions finally culminating in the establishment of

the rates now being investigated. We were represented at the oral argument held

before Division 2 of the Interstate Commerce Commission and we forcefully argued

that the 150% basis of rates was entirely proper and the benefits of such rates

should not be destroyed through the unsupported conclusions of the Examiner.

On December 3rd, Division 2 issued its decision in this case holding that the j
150% basis of rates was unjust and unreasonable (except for distances of 15 miles and under) and prescribing as minimum substantially the same level of rates sought by the protestants - the level prescribed being very close to the Roanoke Rapids scale fully increased under all the horizontal increases. Petition for reconsideration of this even more unfavorable order is now being prepared.

On February 9 we filed a petition with the Interstate Commerce Commission supporting efforts of interested railroads to depart from the Commission's order in Docket No. 29907, K entucky Coal Agency, Inc., v. Alabama Great Southern Railway Company, et al, (which prescribed increased rates on coal from West ern Kentucky mines to points in Georgia) in order to permit the continuation of the present rates on coal ta large coal consumers in North Georgia, including those points at which are located the coal-burning, electric generating plants of the Georgia Tower Company. The increases proposed to those plants in the Com mission's order would have resulted in substantial increase in cost of generation of electricity, a portion of which cost would undoubtedly have been passed along to the consumer by the Power Company. We pointed out that the increases proposed were so substantial that the Power Company and other large consumers of coal I
in Georgia were considering converting heating and power facilities to gas, thus J
depriving the railroads of needed traffic and forcing the electric rates up to no one's benefit. The Interstate Commerce Commission approved the carriers'

122

petition and the proposed increases in coal rates were not made effective to these important Georgia coal consuming points.
On May 15, Division 2 of the Interstate Commerce Commission entered its report and order in I&S Docket No. 6015, Service Charges For Checking Baggage, denying the imposition of the added charges sought to be applied for checking baggage. Division 2 quite properly found in its order that the railroads had not submitted adequate justification for the proposed service charges and further found that abolition of the long and universally established practice of permitt ing a reasonable amount of a passenger's baggage to be carried - whether in the baggage car or in his personal possession - as a part of the passenger's fare contract might well result in diversion of traffic and would thus fail to accom plish the purpose for which such charges were allegedly proposed, i.e., to offset the railroads' passenger deficits.
The railroads filed petition seeking reconsideration of the order of Division 2 and we promptly filed reply vigorously objecting to their petition and pointing out that the Commission's order was based on firm foundation of fact and legal precedent. However, the Interstate Commerce Commission granted the recon sideration sought and by order dated October 5 reversed its Division 2 and per mitted the added charges to be made applicable on interstate traffic as sought.
The order of the Interstate Commerce Commission of April 11, 1952 in Ex Parte 175 imposed an expiration date of February 28, 1954 in connection with the 15% increase in freight rates and charges authorized in that docket. The rail carriers on March 27 filed petition with the Interstate Commerce Commission requesting that this expiration date be eliminated without further hearing and that the increases authorized be incorporated into the general rate structure. We, together with other state commissions and numerous shippers, vigorously objected to this proposal and the Interstate Commerce Commission declined to take such action, but did prescribe a modified procedure whereby protests, evidence and oral argument would be submitted in written form. We objected to the inclusion of the Ex Parte 175 increases into the permanent rate structure of the nation under the procedure set forth and insisted that there was ample time before the expiration date of February 28, 1954 to allow hearings on a com prehensive scope wherein could be determined the measure of increase, of any, to be allowed to be continued in effect as p art of the permanent rate structure and wherein could be fixed an equitable distribution of the burden of any increase so found to be necessary. The Interstate Commerce Commission, however, con sidered adequate the procedure it had set up and by order dated July 29 author ized extension of the expiration date to December 31, 1955 but refused to permit the railroads to now make permanent the Ex Parte 175 increases and to incorpo rate such increases into the permanent rate structure.
1953 U T ILIT Y REGULATION
General
Problems relating to regulation of utilities appear to be the same as the previous year with the exception of work involving the issuance of certificates of public convenience and necessity of telephone companies which declined slightly;
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however, in view of the fact that exchange areas are expanding constantly, boundary lines are becoming closer together, which creates the problem of making more field checks to determine accuracy of exchange boundary lines so th at they are made more realistic in that the potential applicant can be connected to the exchange of his choice whenever practicable.
A summary of work accomplished by the utility staff in handling complaints in 1953 is given in the following table:
Number of electric complaints _______r__________ ___190 Number of gas complaints -- 1__________ -___ ________ ,,409 Number of telephone complaints _ ____ :____r______ ____ 1,250
Total Jist_____,,,,__ _________ ____________,,,,,,.,,1,849
All of the complaints were satisfactory handled to conclusion with the exception of 133 and work will continue on these until satisfied.
During the year a survey was made of all the gas provers in service in Georgia where gas service is rendered by private gas utilities. During the survey it was necessary to recommend that two provers be replaced, and that the rooms be air conditioned and modernized to make for greater accuracy where utility customers' meters are tested and calibrated. One utility did not have a gas prover and recommendation was made that this company acquire this machine as soon as possible. Tests were made on the utility provers using a portable cubic foot standard which is sent annually to the U. S. Bureau of Standards in Wash ington, D. C. for a certificate of accuracy.
The number of held applications in all of Southern Bell's exchanges con tinue to decrease so that by December 31, 1953 only 17,523 were waiting for tele phone service. During the year, however, the number of requests for better grades of service increased from 26,899 to 31,607. This increase was due primarily to the large influx of new residents in Georgia and the Telephone Company in the suburban areas where most of the development occurred did not have sufficient plant margin to provide the grades of service desired. The number of telephones in the Southern Bell Company increased from 605,000 to 641,257. During 1953 the independent telephone companies increased the number of stations in service from 72,669 to 87,595 or an increase of 8.48%. There were 20 magneto exchanges con verted to automatic dial operaton, thereby reducing the remaining number to 40 by the end of the year.
TELEPHONE UTILITIES
During the year 1953 there were 16 orders of the Commission issued ren dering decisions with regard to rate applications of independent telephone com panies. 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. Of the total applications processed, 12 requested an increase in rates due to increased operating expenses and increased cost of new telephone plant equipment. In these cases the increased rates requested would have raised reve nues of the companies in the aggregate amount of $157,938 per annum, while the rates authorized by the Commission provided only $92,237 per annum. In addition there were four applications processed regarding request for authority to establish
124

telephone rates upon completion of construction and expansion of telephone facil ities. In these cases the rates requested would have produced local service revenues in the aggregate amount of $200,412 per annum, while the rates auth orized by the Commission provided local service revenues of $194,063 per annum.
As a result of a continued large construction program by independent tele phone companies in Georgia, a number of applications for authority to obtain loans and issue securities were filed in 1953 in order to provide funds for that program. There were 16 orders of the Commission issued rendering decisions with regard to applications of this kind wherein independent telephone companies in Georgia were authorized to obtain loans and issue securities which provided total funds of $4,133,526. Of this amount $1,817,000 was authorized to be borrowed from the Rural Electrification Administration, Washington, D. C. in order that certain urban and rural areas in Georgia would be provided with telephone service rendered over modern dial telephone systems.
As reported in 1952 an application of Georgia Continental Telephone Com pany for authority to increase rates for exchange telephone service rendered by that Company was held over to 1953. In a continuation of the matter, conferences were held with officials of the Georgia Continenital Telephone Company in an endeavor to obtain some positive assurance of required service corrections. These conferences did not produce results satisfactory to the Commission, therefore, the Commission on April 15, 1953 issued a Rule Nisi directed against the Company to shown cause why drastic steps should not be taken to require and enforce service improvements.
As direct result of these actions, the Company's President, Vice Presi dent, Treasurer, and Attorney came to the Commission on April 28, 1953 and sub mitted a commitment on improvements, expansion and conversion of its manual exchanges. The Company pledged itself among other things to:
1. Start immediately making installations of telephones to fill 1,241 un filled applications on hand February 26, 1953.
2. Complete this year the conversion of the Ft. Gaines Exchange and the Lavonia Exchange to automatic dial operation.
3. Start immediately on the installation of the automatic dial exchange at Carnesville and complete the installation of the exchange this year.
4. Establish automatic local exchange service on a free calling basis between the Lavonia and Carnesville Exchange.
The Commission conducted an extensive investigation of service provided by Georgia Continental Telephone Company, and a comprehensive report by the Commission's staff was made a part of the record in this case. According to this report, service improvements were required. The Commission determined it neces sary for the Company to fully comply with the recommendations contained in the staff report and make other changes or improvements so that reasonaly adequate telephone service would be provided at all times.
On April 29, 1953 the Commission's order and decision in this m atter were
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published. The evidence submitted by the Company and findings by the Commis sion follow.
According to the evidence the actual net revenue of the Company for the i
year ending March 31, 1952 was $44,247.28 representing a rate of return of 3.49% on an alleged rate base of $1,267,127.61 as of March 31, 1952. The proposed rates would yield a return of 7.10% on that rate base after certain adjustments for present conditions.
According to the record it appeared that Georgia Continental Telephone Com pany was not earning a fair rate of return on the actual investment in telephone plant and equipment devoted to public service. While increased revenues sought by the Company amounted to $112,200 the Commission determined that rates request- ! ed by the Company to produce the amount were higher than required to provide a reasonable rate of return. Accordingly, rates were authorized effective June 1, 1953 that would produce increased revenue of $55,301 per annum, which rates indicated a rate of return of some 6% on the net investment rate base as deter- j mined above.

CERTIFICATES ISSUED IN 1953

SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY:

Amendments to Exchange C ertificates_____ _.__ ...__. - .

46

INDEPENDENT TELEPHONE COMPANIES AND COOPERATIVES:
Net Exchange Certificates ______ ____________ _____________ 4 Acquisition Toll Certificates______._______________________ ____ 2 Amendments to Exchange Certificates __________________ ______24 Exchange Certificates for Rural Co-operative Exchanges ___ / 6 Certificates issued as result of Acquisition / _________j.____ 22

Total Independent & Cooperative Certificates_____ ____.....

58

Total Southern Bell, Independent & Cooperative Certificates ELECTRIC UTILITIES

104
I

The continued heavy construction program of the Georgia Power Company called for capital expenditures for property additions during the year 1953, in an amount estimated to exceed $44,000,000. To provide funds to meet this requirement the Commission approved the issuance of 338,000 additional shares of its common stock to the Southern Company for a cash consideration of $6,000,000 the issu ance of $16,000,000 principal amount of F irst Mortgage Bonds, and $10,000,000 I of preferred stock.

Savannah Electric and Power Company filed a petition with the Commission on March 12, 1953, requesting authority to issue and sell $2,300,000 par value of a
new preferred stock for the purpose of providing additional funds for the con- i struction program of the Company, and to call and retire $700,000 par value of the then outstanding preferred stock. In addition, thereto, the Company requested

126

authority to change one of its 133,334 shares of common stock without par value into 3 shares of common stock of a par value of $10 per share. On April 7, 1953 this application was approved; also on November 23, 1953 the Company was authorized to issue and sell 7,000 shares of its 5.36% $100 per share par value preferred stock and $3,000,000 principal amount of its 4% F irst Mortgage Bonds. The proceeds from these issues are to be used to complete the Company's 1953 construction program and to commence the 1954 program.
On May 8, 1953 the Commission approved the application of the Georgia Power and Light Company to issue and sell $2,000,000 principal amount of F irst Mortgage Bonds, 3 7/8% Series, due 1983. Proceeds from this sale were deposited with the trustee under the mortgage and from time to time drawn upon on the basis of 60% "Bindable Value of Property Additions." On December 31, 1953 approval was granted on Georgia Power Company's requests for authority to issue and sell $11,000,000 principal amount of F irst Mortgage Bonds and 100,000 shares of common stock for a cash consideration of $10,000,000. The Company proposed to make capital expenditures for property additions during the calendar year 1954 in an amount estimated to exceed $34,000,000 and these security issues were necessary to provide a portion of the funds required for such additions.
As reported in our 1953 Annual Report the proposed fuel adjustment clause of Georgia Power Company arising from the rate schedules filed with the Commis sion on October 30, 1952 pursuant to the Commission's Order and Docket No. 206U were under study at the year's end by the Commission's staff. The fuel ad justment clause as filed, was based upon the cost of fuel per million BTU. This method of computation does not give effect to increasing efficiency of generation which the electric industry has continuously accomplished during the years. It also appears that other costs might decline (such as Federal Income Taxes) at a time when fuel costs increased thereby obviating the necessity for an adjust ment to rates which the fuel clause would cause. In order to correct for these deficiencies the Commission specified a fuel adjustment clause based on costs of KWH generated, thereby automatically compensating for increased efficiency and fluctuations in other related direct expenses. The Commission further spec ified th at adjustments to the rate schedules be limited to two full one one-hundrerths of one cent(.01c) per KWH, unless prior approval is granted. This treat ment allows sufficient time lag to insure that a substantial reduction in other costs does not offset any increases.
Georgia Power and Light Company filed an application with the Commission on December 11, 1952 requesting authority to increase its rates for electric service.
The propsed rates filed with the Commission were estimated to produce increased revenue of approximately $306,000 per annum. Under the proposed rates all bills for residential service would be increased 72c per month and all commer cial bills $1.50 per month, irrespective of volume of consumption. This application was assigned for hearing before the Commission on January 20, 1953, when it came on to be heard. According to the application, an increase in rates was requir ed in view of an inadequate level of earnings of the past several months, and that said reduction in earnings, together with increases in the cost of labor, material, taxes, higher investment costs and other conditions, caused the Company to file
127

an application for relief. The Company alleged that the rate of earnings produced a rate of return of only 4.734% and requested an increase in net operating income sufficient to realize an income of 6%%.
The operating period selected by the Company for the presentation of its case was for the 12 months ending October 31, 1952. In the evidence presented the Company did not submit sufficient facts to determine an average net plant in vestment rate base for the base period. Therefore, the Commission used the in vested capital method as a measure of the earnings requirement of the Company. It was determined that the average capitalization for the base period was $9,304,629 and that an adequate earnings requirement appears to be $567,226.
In its evidence and testimony on the operating results for the base period the Company alleged 7 major adjustments for known changes and conditions and circumstances which occurred during the base period or subsequent thereto. Of these adjustments the Commission found that only 3 were proper and should be taken into account. It was therefore found that increased revenue sufficient to provide approximately $88,725 would be all that would be necessary to produce the required earnings as indicated above.
Although the Company requested a substantial increase in its commercial rates, the level of the Georgia Power and Light Company's commercial rates is now higher than both the commercial rates of the Georgia Power Company and the Savannah Electric and Power Company. On the other hand, the residential rates of the Georgia Power and Light Company are considerably lower than the present residential rates of the Savannah Electric and Power Company. I t was found that the application of the Savannah Electric and Power Company's resi dential rate to the customer analysis of the Georgia Power and Light Company's residential consumers, together with the discontinuance of the collection of the penalty for delayed payment of bills would produce the required revenue increase.
On May 11, 1953 this matter was decided by the Commission, the opinion and order being issued on May 18, 1953. The Company filed a petition for re hearing, reconsideration, and oral argument on May 27, 1953. Later on June 5, 1953 the petition for reconsideration was amended by the addition of more particular allegations in support thereof.
The petition for reconsideration was assigned for oral argument on its merits before the Commission on June 22,1953. At the conclusion of the arguments the Company requested, and was granted, permission to file written arguments in response to that of the staff. Several allegations of error were advanced and in addition, the Company produced evidence of a substantial increase in the price of fuel oil subsequent to the Commission's earlier decision on this matter. Since this cost determines the cost of power to the Georgia Power and Light Company, it appeared that sufficient reason existed to grant the petition for rehearing.
The rehearing was scheduled September 2, 1953, a t which time the Company restated its previous claims for certain adjustments, which it alleged were proper in the first instance, and in addition thereto, included additional adjustments representing changes in circumstances subsequent to the issuance of the original order. With the exception of the adjustment reflecting the change in circumstan ces, each of the adjustments considered in the initial decision was again rejected. The change and circumstances alleged were a wage increase effective July 21,
128

1053, and a substantial increase in the price of fuel oil. The Commission found that these changes, together with the concurrent required increase in the fran chise tax, necessitated increased revenues of approximately $128,401 per annum.
During the course of this hearing it was determined that the power require ments of Georgia Power and Light Company for the base year ending October 31, 1952, amounted to approximately $2,377,000, all of which was purchased from the parent Company, Florida Power Corporation.
As a test of the reasonableness of this cost of power to the Georgia Power and Light Company, the power requirements of the Company were applied to power purchase contracts in the area. According to this computation the power cost to the Georgia Power and Light Company would be less under these various contracts. If the current industrial rate of Georgia Power Company were applied to the power requirements of Georgia Power and Light Company, the cost of the above power would have been over $300,000 per annum less than it was. If the current contract between Georgia Power Company and Georgia Power and Light Company for not less than 5,000 KW nor more than 10,000 KW of requirement were applied to the total requirement, the power cost would have been approx imately $115,000 per annum less. If the "WR-4" rate schedule of the Ga. Power Company were applied the total power cost would have been reduced about $650,000 per annum, or if the contract between Georgia Power Company and South Carolina Generating Company were applied, the cost of power would have been reduced over $60,000 per annum. This comparison of power cost raised the question whether or not Georgia Power & Light Company could obtain its power requirements from another source at a lower cost.
Based upon the above findings of additional revenues of $128,401, but sub ject to the questionable costs of electric energy, the Commission granted a rate increase effective November 15, 1953 for a period of 6 months, from that date, or until otherwise ordered by the Commission. Accordingly, on December 16, 1953, the Commission issued a Rule Nisi to the Georgia Power Company and the Georgia Power & Light Company to show cause:
(1 ) . Why Georgia Public Service Commission should not prescribe rate schedule for the sale of electric energy by Georgia Power Company to Georgia Power & Light Company in sufficient volume to meet the entire power require ments of Georgia Power and Light Company, and why said rate should not be as low as the rate at which Georgia Power Company sells electric energy to municipalities or REA Co-ops, or at what level said rate would be reasonable; and
(2) Why Georgia Power and Light Company should not be required to pur chase its entire electric power requirements or a substantial portion thereof from Georgia Power Company at the rate prescribed by the Commission for the sale of said energy by the Georgia Power Company; and
(3) Why the Georgia Public Service Commission should not file an appro priate petition with the Securities and Exchange Comission seeking an order from that agency which would provide for the divestment of the Georgia Power and Light Company from the Florida Power Corporation and for the sale of said property at a fair price, either to the Georgia Power Company or as a separate
129

and independent operating entity, whichever may finally be shown to be in the best interest of the people of the area served: and

(4)

Why, in the event Georgia Power and Light Company is unwilling to

purchase its power requirements from Georgia Power Company a t a reasonable

rate, and in the event Georgia Power and Light Company is unwilling to sell its

plant and equipment to Georgia Power Company or others a t a fair price, and in

the event Florida Power Corporation is unwilling to sell its investment in Georgia

Power and Light Company or others at a fair price, the Commission should not

prescribe reduced rates for electric service rendered by Georgia Power and Light

Company of substantially the level charged by Georgia Power Company for the

same classes of service.

This matter was assigned for hearing before the Commission on February 2, 1954.

GAS U TILITIES
Cash requirements for utility plant construction for the fiscal year ended September 30, 1953 were estimated to amount to $5,100,000 and for the fiscal year 1954, $6,200,000 by Atlanta Gas Light Company. To meet these requirements the company made application and was authorized on'February 27, 1953 to issue and sell 80,255 shares of its common stock of a par value of $10 per share. Upon application filed on September 18, 1953, the Company was authorized to issue and sell $7,000,000 principal amount of F irst Mortgage Bonds, 4%% Series, due 1978. The stock was offered to its stockholders of record a t the rate of 1 share for each 10 shares held a t $20.50 per share. The Company expended in excess of $20,300,000 during the years 1948 through 1952 and the current expenditures are a continuation of this vast program to provide natural gas service to the people of Georgia.
During the year Georgia Gas Company was granted authority to issue and sell $100,000 principal amount of 5V2% Series A, F irst Mortgage Bonds to retire a current bank loan to continue its expansion program a t Gainesville since con verting to natural gas.
The South Atlantic Gas Company was authorized to issue and sell 25,500 shares of its $5 par value common stock and $740,000i principal amount of its 4% first Mortgage Bonds. These issues were authorized to provide capital funds necessary for the payment of presently outstanding bank loans, finance the con struction of a natural gas pipe line and associated facilities to reinforce and exexpand the gas distribution system in Savannah, and to finance the cost of con version of customer appliances to utilize natural gas.
In rate matters, the Southern Natural Gas Company, an interstate gas transmission company supplying the majority of the natural gas consumers in Georgia, was granted general rate increases by the Federal Power Commission during the year. This increase in the cost of gas forced the Atlanta Gas Light Company and the Gas Light Company of Columbus to request increases in rates which aggregated $5,832,539 annually. As the Companies were not financially able to absorb such a large increase in their costs, the Commission authorized in-
130

creases in rates sufficient to pass on to the consumers the additional cost of nat ural gas.
In addition to the above, Atlanta Gas Light Company was authorized to in crease its rates for manufactured gas service in Brunswick, Valdosta and Waycross, Georgia by approximately $114,000. These increases were the minimum deemed necessary to bring the revenue of the Company up to the level of its costs of operation in the specific communities so that no out-of-pocket loss would be chargeable to the Company's natural gas operations. Also, final rates were determined for South Atlantic Gas Company upon conversion to natural gas operations. These rates resulted in an annual decrease of approximately $472,000 for gas service in Savannah. While the rates prescribed did not produce a full fair return on the investment of the Company at its current level of operations, it appeared that natural gas service would produce at least a 27% increase in gas sales and that revenues from the rates prescribed would then be adequate.
On October 26,1953 Atlanta Gas Light Company filed amended reduced rates for gas service in Augusta, Sandersville and Tennille, Georgia, to become effective upon the introduction of natural gas service. These rates represented a sub stantial reduction amounting to approximately a 33% decrease. On December 3, 1953 the Commission adopted the rates so filed, with the proviso that said rates should be further reduced to the level of the rates of general application in the territory served by the Company and supplied by the Southern Natural Sys tem effective with meter readings on and after April 1, 1954.
Certain other small increases in rates were granted due to rate increases requested by Transcontinental Gas Pipe Line Corporation from the Federal Power Commission. Upon final settlement of this case before the FPC the increases granted were so minor that the increased rates granted by this Commission were cancelled.
TRANSIT UTILITIES
In order to provide better service for its passengers Savannah Transit Company requested authority to enter into conditional sales contracts with General ' Motors Corporation for the purchase of 12 new Transit Type coaches at a cost of approximately $210,000. This request was approved by the Commission on July 21, 1953. Also during the year Atlanta Transit Company was authorized to enter into a loan agreement in the amount of $20,000 bearing interest at the rate of 4% % per annum to effect the purchase of needed lots to be used for garaging facilities.
K . Georgia Power Company filed an application with the Commission on June 4, : 1953 requesting authority to increase its fares for transportation service in Rome,
Georgia. It was determined that the Rome System operated at a loss of some $52,000 for the 12 months ended May 31, 1953. The Commission, therefore, grant ed the increases requested which raised the cash fares from 10c to 15c, token fares from 9 for 70c to 2 for 25c, and instituted a charge of lc for transfers.
On February 10, 1953 Atlanta Transit Company filed an application with i the Commission requesting authority to sell tokens a t a rate of 14 for $1.75 in
lieu of 4 for 50c. This request for additional revenue was based on wage increases
131

of approximately $360,000 per annum and a decrease in passengers carried in excess of that anticipated in the Commission's order dated September 4, 1952.
In its application the Company revised its past position with respect to depreciation expense and alleged that this expense should be computed on the basis of original cost. The Commission determined that while its past rulings on this m atter did not follow theoretically exact accounting treatment according to the uniform system of accounts, the results of its method were the same: This reduced anticipated future costs by some $200,000 per annum. The adjustment together with certain other adjustments in expenses and passenger shrinkage resulted in the Commission authorizing a rate increase estimated to produce an annual increase in gross passenger revenues of approximately $431,000 in lieu of the $813,700 requested.
Bibb Transit Company, Macon, Georgia, applied for an increase in their school token fare from 10 for 50c to 10 for 75c on July 2,1953. The increased fares requested were established to produce approximately $18,200 additional annual gross revenue brought about by annual wage increases granted in the amount of $20,000 and increases in the cost of gasoline in the amount of approximately $5,000. Inasmuch as the Company's earnings were not sufficient to absorb these increases, the Company's request was granted. Wage increases granted by Colum bus Transportation Company and Savannah Transit Company were also the basis for additional revenues requested by these companies. The Columbus Transporta tion Company was granted authority to institute a lc transfer charge December 3, 1954, which will produce approximately $14,300 additional annual revenue. Savannah Transit Company was granted authority to increase its school and children's fare from 20 for $1.03 to 20 for $1.25 on December 16, 1953. This in creased fare was estimated to produce $10,600 per annum in additional gross annual revenues.
The following orders were published by the Commission during 1953 regard ing major matters pertinent to Telephone, Electric, Gas and Transit Utilities in Georgia.
132

Name of Utility

RATE MATTERS

Date of Order

Docket Number

TELEPHONE

Uvalda Telephone Company -------- -- ---------- ------ 2- 6-53

Danville - Jeffersonville Telephone Companies ------- ------ 3-16-53

Sikes Telephone Company ----------- --------------

-- 3-16-53

Pembroke Telephone Company --.---- i----- - --------- ----3-16-53

Plant Telephone and Power Company ---- ----------------- 3-18-53

Hinesville Telephone Company _--1------- ---- -- ----- x 3-18-53

Farmers Telephone Company-------------------- --- ------- - 3-23-53

Georgia Continental Telephone Company---------------------- 4-29-53

Brantley Telephone Company ----------- ----- -------- ----- -- 5-11-53

Louise Telephone Company ---------- ---------------------- ---5-11-53

Statesboro Telephone Company ---- ------------ ----- 6-22-53

Pineland Telephone Cooperative ------------- ---------- ---- ------ 8-25-53

L. and B. Telephone Company ---------- 1-- - --.

10-19-53

Homerville Telephone Company--------- --~i------------------10-19-53

Public Service Telephone Company ----- ---------------------- 10-19-53

Western Carolina Telephone Company------ , -----------12-18-53

447-U 452-U 463- U 464- U 480-U 475-U 446-U 380/525-U
511-U 445-U 516-U 544-TJ 577-U 580-U 559-U 432-TJ

ELECTRIC
Georgia Power and Light Company------- ------------- ------ 5-11-53 Georgia Power and Light Company --i-- ---- ---&-- ------ 7-27-52 Georgia Power and Light Company ----------------1------ --- .10-27-53

470-U 470-U 470-U

GAS
0 Atlanta Gas Light Company ------ -- ...------------- ;----------- 4-29-53 i Gas Light Company of Columbus .7---------- :s- ---------- --- 4-29-53 Atlanta Gas Light Company ------- ------- ---- ------ 9- 1-53 Gas Light Company of Columbus----.-- ---------- '=*?--- p 9-29-53 South Atlantic Gas Company -- ----- ----------- ---------- --10-23-53 Atlanta Gas Light Company -- ------------------ ----------- 12- 3-53 Atlanta Gas Light Company ...--- _-- |---- ------------------- 12- 3-53 South Atlantic Gas Company -- -- . . . . . . . . . -- ---- .--12-31-53

520-U 519-U 553-U 586- U 588-U 587- U 534-U 592-U

TRANSIT

Georgia Power Company - Rome -- -------------------------- 7- 9-53

Bibb Transit Company . . . -------- ------- ------------ -- -- 8- 4-53

Atlanta Transit Company ...---------------------- --- ---- -r- 8- 7-53

Columbus Transportation C o m p a n y ..-------------12- 3-53

Savannah Transit Company --...----

---- ------ ..12-16-53

536-U 554-U 488-U 598-U 594-U

133

Name of Utility

LOAN AND SECURITY MATTERS
. Date of Order -

Docket Number

TELEPHONE

Rochelle Telephone Company _____________ ._______|U 2- 6-53

None

Plant Telephone.and Power Company___ _____ ____ ____ 2-27-53

247-U

Bulloch County Rural Telephone Cooperative ______3-18-53

404-U

Southeastern Telephone Company --1...... ._.____ 1_____ 4- 7-53

492-U

Sikes Telephone Company _______......._..........___ ________ _______ . 4- 7N-5o3ne

Statesboro Telephone Company

________ _______ _ 5- 8-53

515-U

Georgia Continental Telephone Company_ib-~___ __1_ 5- 8-53

529-U

Brantley Telephone Company__T_....__ ..___________ ____ 5-11-53

510-U

Hawkinsville Telephone Company ________ ..___ ___.6- 8-53

427-U

Union Point Telephone Company --_____ ______________ 8-14-53

557-U

Pineland Telephone Cooperative _____ 1. - ' " 8-25-53

540-U

Public Service Telephone Company _______ ...________ .10-19-53

560-U

Union Point Telephone Company ______ Sb,___ ___ _.--.10-19-53

557-U

Trenton Telephone Company ______________ ____ ... .....10-20-53

556-U

Planters Rural Telephone Cooperative

___________ 10-20-53

543-U

Southeastern Telephone Company ________ ________ 12- 3-53

599-U

ELECTRIC
Georgia Power Company ____ ._- . _______________ ....... 1-19-53 Georgia Power Company ....-- ______ ________ ........______ 2-26-53 Savannah Electric and Power Company_______ _______ 4- 7-53 Georgia Power and Light Company ^______ .i.........______ 5- 8-53 Savannah Electric and Power Company __ _______ _..... 5- 8-53 Georgia Power Company________ ^ ...... ~ __JcLl____ ..12-31-53

473-U 485-U 512-U 522-U 595/596-U
611-U

GAS

%

Atlanta Gas Light Company ________________________ 2-27-53

Georgia Gas Company

__ ________ _____________ 9-10-53

Atlanta Gas Light Company .,,L...1___.________........____ 9-18-53

South Atlantic Gas Company_____ ...____-- __ .____ 10- 5-53

486-U 579-U 569-U 581-U

TRANSIT
Savannah Transit Company __________ ________ ....____ 7-31-53 Atlanta Transit Company ----________ __________ ____ 8- 7-53

None None

134 '

OTHER MATTERS

Telephone, Electric, Gas and Trcmsit.
Name of Utility

Type of Order

Blakely Telephone Company

Rule Nisi

Cairo Telephone Company

Rule Nisi

Whigham Telephone Company

Rule Nisi

Georgia Continental Telephone Co. Rule Nisi

Georgia Power Company

Fuel Adjustment

Georgia Power Company

Rule Nisi

Georgia Power and Light Company

Rule Nisi

Date of Order
2-10-53 3- 4-53 3- 4-53 4-15-53 6-11-53 12-16-53 12-16-53

Respectfully submitted,
Matt L. McWhorter, Chairman Allen Chappell, Vice Chairman Walter R. McDonald, Commissioner James A. Perry, Commissioner Crawford L. Pilcher, Commissioner

Docket Number
487-U 499-U 499-U 525-U 466-U 620-U 620-U

135

82nd REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1954
137

82ND REPORT OF GEORGIA PUBLIC SERVICE COMMISSION
TO HIS EXCELLENCY GOVERNOR HERMAN TALMADGE:
As provided by law, the Georgia Public Service Commission submits here with its 82nd Annual Report of the regulatory activities for the year ending December 31, 1954.
PERSONNEL AND STAFF
There has been no change in the organization or personnel of the Com mission since its last report, the Commission now being constituted as follows: Matt L. McWhorter, Chairman; Allen Chappell, Vice Chairman; Walter R. Mc Donald, Commissioner; James A. Perry, Commissioner; and Crawford L. Pilcher, Commissioner.
The only change in the staff of the Commission during the year was tha employment of Mr. Leonard Thomas Doyal, Sr., as Transportation Rate Spe cialist. Mention should be made, however, of the resignation of Mrs. Frances Kreeger, Secretary to Commissioner McDonald, to join her husband, R. Everette Kreeger, in Washington, D. C., where he serves as Secretary and Assistant General Solicitor of the National Association of Railroad and Utilities Com missioners, and Mr. Earle McDaniels, Motor Carrier Inspector, who resigned to again assume the duties as Ordinary of Catoosa County, to which office he has been re-elected.
V
MOTOR BUS & TRUCK REGULATION
During the year the total in fees collected again increased over the previous years, the total collections being as follows:
Certificate fees and transfer fees, $35.00 and $7.50, respectively ___ ------- --- __-------- -- --------------- ----- $ 1,517.50
License fees, 5,961 @ $25.00 each -- ----------- :------- ----- 149,025.00 Reciprocal Fees, 30,550 @ $1.00 ea c h ----- 1--- ------- 1------| -- 30,550.00 Pick-up Truck fees, 1483 @ $1.00 each ----------- *---- ---------- 1,483.00
TOTAL FOR 1954 __ :___,,J._____________________ $182,575.00
MOTOR CARRIER RULES AND SAFETY REGULATIONS
On August 4, 1954, the Commission issued orders revising the General Motor Carrier Rules and Regulations and the Motor Carrier Safety Rules and Regulations, which became effective October 1, 1954. The major change in the General Rules was a revision of Rule 8 applicable to Class "B" Certificate hold ers. The Rule as revised defines in detail the various commodity groups named therein. The Safety Rules and Regulations were revised to conform to the Uni form Act Regulating Traffic on the Highways, adopted by the General Assembly and approved by the Governor on January 11, 1954.
The following is a list of the most important decisions involving fixed route bus and truck operations:
139

Approved--Application of Northern Freight Lines, Inc. for Class "A" Cer tificate for the transportation of property between Cornelia and Cleveland, Georgia, via Clarkesville.
Denied--Application of Benton Rapid Express for Class "A" Certificate to transport property between Hawkinsville and Cochran, and between Hawkinsville and Eastman, Ga.
Approved Application of Neel Gap Bus Line, Inc. to abandon all operating rights north of Cleveland, Georgia.
Approved Application of Atlanta Motor Lines, Inc. for extension of its operat ing route from Roberta to Oglethorpe, Georgia.
Approved--Transfer of operating rights of Bates Trucking Co. from Clarence F. Bates to Robert E. Elmore.
Approved--Transfer of all operating rights of Metropolitan Transit Company to Metropolitan Transit System, Inc.
Approved Application* of Southeastern Greyhound Lines to operate via Metter, Register and Pulaski, Georgia, in lieu of via Portal, Georgia.
Approved--Application of Continental Crescent Lines, Inc. to acquire the operating rights of Atlanta-Brooks Coach Line, Inc. between Newnan and At lanta, via Fayetteville, Georgia, and the operating rights of East Alabama Coach Lines, Inc. between Newnan, Georgia and the Georgia-Alabama State Line en route to Roanoke, Alabama.
Approved--Application of Brown Transport Corp. to extend its operations from Waynesboro to Louisville, Swainsboro and Millen.
Approved--Application of Brown Transport Corp. for Class "A" Certificate to operate between Greensboro and Savannah, Georgia, via Eatonton, Sparta, Sandersville, Wadley, Midville, Millen and Sylvania, with closed doors be tween Sylvania and Savannah, with the right to serve Guyton, Garfield and Statesboro as off-route points.
Denied--Application of Allied Freight Service, Inc. for Class "A" Certificate to transport property between Columbus and Fort Benning, Georgia, and between Columbus and all points within ten miles of Columbus.
Denied--Application of United Bus Lines for Class "A" Certificate to transport passengers between Richland and Americus, Georgia.
Approved--Application of Brown Transport Corp. for extension of its operations from Macon to Warner Robins, Georgia, without the right to handle traffic originating or terminating or through interchange a t Macon.
Approved--Application of Benton Rapid Express for extension of its operating rights from Brunswick, Georgia to Jekyll Island State Park.
Approved--Application of Southeastern Greyhound Lines for authority to dis continue all operations between Jackson and Griffin, Georgia.
Mention was made in the last report of court proceedings to set aside a
140

decision of the Commission approving an application of Petroleum Carrier Cor poration for a Class "B", no fixed route, certificate to transport asphalt. The petition of Davis Transport Company to set aside the dcision of the Commis sion was granted by Judge Ralph Pharr of Fulton Superior Court, but on ap peal the Supreme Court reversed Judge Pharr, holding as follows:
"1--The provision of Code Section 68-609 declaring that the Public Service Commission must consider the five matters therein enumerated is advisory only and, irrespective of what the evidence might be upon the subjects there mentioned, the Commission may grant or deny a Class "B" Certificate without offending the law.
"2--The 1950 amendment of the foregoing section is expressly limited to certificates over fixed routes, and has no application of Class "B" Cer tificates.
"3--It was error in the present case for the trial judge to enjoin the holder of a Class "B" Certificate from operating thereunder, upon the theory that the evidence failed to show inadequacy of existing transporta tion service." See Ga. Reports 210 p. 568.
Mention should be made of a decision of the Commission on December 15, 1954, in Docket No. 783-M denying an application of Haynes Moving and Storage Company for transfer of a Class "B", no fixed route, certificate from James M. Burgess, for the reason that the evidence disclosed that the transferee proposed to expand the operations to points not previously served by the holder of the certificate and would result in the establishment of a new service.
Mention should also be made of the denial by the Commission of an ap plication by B. & L. Bus Service, Hinesville, Ga. for a class "B" Certificate to transport passengers in taxicabs between Camp Stewart, Ga. and all points within fifty miles of Camp Stewart, Ga.
ENFORCEMENT
The most important action of the Commission during the year in enforce ment of the Motor Carrier Acts necessitated court action by filing of a petition in Muscogee Superior Court to enjoin the Southeast Shippers Association, Inc., Columbus, Georgia, from operating illegally. The petition alleged that the de fendant corporation was operating both as a motor common carrier and as a motor carrier "for hire," principally between Columbus, Georgia and Atlanta, Georgia, without obtaining a certificate of public convenience and necessity. Briefly, the Southeast Shippers Association, Inc. was incorporated as a non profit corporation, composed of approximately 190 members, mostly, merchants, all residing ip the vicinity of Columbus, Georgia. Each member is charged a membership fee of $25.00 and there is a minimum fee of $1.00 for each ship ment. The position of the Commission is that if 190 members in Columbus, Georgia can obtain a corporate charter and purchase trucks and transport goods in intra-state commerce to and from each of the members and carry the goods for hire and give the members the benefit of any reduced rate under that which is normally charged by other carriers engaged in similar business, then the merchants in Savannah, Georgia can do the same thing, the merchants in Au-
141

gusta, Georgia can, those in Athens. Georgia, those in Macon and so on in each of the cities and towns in the State, and none of this business would be subject to the regulation of the Georgia Public Service Commission, which is a body representing the people and charged with the duty of regulating this business of transporting goods on the highways of the state in a manner beneficial to all. At the close of the year this case had not come on for trial.

TRANSPORTATION
General
During 1954 the Commission disposed of 60 formal proceedings involving transportation rate and service matters. Those docketed proceedings, almost all of which were made the subject of formal written orders, are listed below with indication as to the disposition of each such proceeding. In addition, the Com mission during 1954 disposed informally of 298 transportation rate and service matters.

Docket No. 690-M 683-M 124-R
129-R
696-M
697-M

FORMAL CASES FOR YEAR 1954

Date

Subject

Disposition

1-25-54 Application of Atlanta Brooks Coach Line to eliminate service to Fairfax Subdivision and to Kenwood

Approved as to Fairfax Subdivi sion and denied as to Kenwood

1-

28-54 Bus Express Rate InvestigatioRnates prescribed

2-1-54 Complaint and application for re consideration of order authoriz ing discontinuance of agency service at Bishop
2-1-54 Application of NC&StL to discon tinue Dalton as conditional stop for passenger train No. 92 and as regular stop for passenger train No. 93

Reinstitution of agency service or dered with per mission for part time service
Approved as to train 92 and de nied as to train 93

2-

11-54 Application of Smoky MounAtapinproved subject

Stages, Inc. to discontinue cer to establishment

tain schedules between Clayton of substitute local

and Augusta

service between

Washington &

Augusta

2-11-54 Complaint against discontinuance by Smoky Mountain Stages, Inc. of certain schedules between Canton and Atlanta

Dismissed

142

124-R
9th Supt. 43-R
137- R
138- R
139- R
140- R
142-R
143-R
698-M
124-R
146- R) 147- R) 148- R) | 149-R) 150-R)
723-M

2-12-54 Petition of Central of Georgia Railway for extension of time in which to reinstitute agency serv ice at Bishop

Approved

2-16-54 Application of rail carriers for extension of expiration date of increases authorized in this dock et to December 31, 1955

Approved

2-16-54 Application of Southern Railway Denied with pro

^ to discontinue agency service at vision for review

Alto

after test period

2-16-54 Application of Southern Railway Denied with pro

to discontinue agency service at vision for review

Towns

after test period

2-16-54 Application of Railway Express Denied with pro

Agency to close express office at vision for review

Towns

after test period

2-16-54 Application of Railway Express Denied with pro

Agency to close express office vision for review

at Alto

after test period

2-23-54 Application of Atlantic Coast Line Denied Railroad to discontinue agency service at Norman Park

2-

26-54 Application of Railway ExprDeesnsied

Agency to discontinue agency

service at Norman Park

3-8-54 Application of Southern Stages to Approved discontinue certain schedules be tween Sparta and Milledgeville

3-

24-54 Petition of Central of GeoArgpiaproved

Railway for further extension of

time in which to reinstitute

agency service at Bishop

3-

26-54 Application of Georgia SouthAeprnproved

and Florida Railway to remove

passenger waiting sheds at Mo-

niac, Council, Elko, Cecil and

Grovaniaand to discontinue

Council and Elko as stations for

handling of less-carload freight

4-

16-54 Complaintagainstproposal of Dismissed after

Southeastern Stages, Inc. to dis adjustment of

continue certain schedules be service to satisfy

tween Atlanta and Mansfield

complaints

143

145-R

4-16-54 Application of Southern and At lantic Coast Line Railroad to eliminate Woodbury as inter change point for rate making purposes

Approved

152-R

4-16-54 Application of Southern Railway Approved with
to abandon station building at conditions Doraville

8451-A 4th Supt.

Application of rail carriers to re

8373-A 5th Supt.

move commodity exceptions to

9574-A 4th Supt.

increases authorized by Com

43-R 10th Supt.

mission in previous orders in

4-16-54 these dockets

Approved except as to logs and road aggregates

2nd Supt. 104-R) 133-R)

5-5-54 Application of Railway Express Approved with Agency to increase express rates exceptions and charges to interstate level

159-R

5-12-54 Application of Georgia & Florida Approved Railway to discontinue agency
service at Wesley

160-R

5-12-54 Application of Southern Railway Company for permission to in stitute condemnation proceedings to obtain certain property in Haralson County

Approved

156-R

5-28-54 Application of Georgia & Florida Approved Railroad to discontinue agency
service at Vidette

157-R

5-28-54 Application of Railway Express Approved Agency to close express office
at Vidette

158-R

5-28-54 Application of Georgia & Florida Denied Railroad to discontinue agency
service at Alston

6th Supt. 9509-A

6-8-54 Petition of motor carriers of pe troleum products for modifica tion of the Commission's prev ious orders in this docket to eliminate the prescribed rates for distance between 201 and 240 miles

Approved

8451-A) 8873-A) 9574-A)
43-R)

6-15-54 Petition of certain shippers for re opening of these proceedings and reconsideration of increases au thorized on logs

Denied

144

736-M 739-M 162-R 163-R
161-R 161-R 166- R 167-R 171-R 175-R

6-

15-54 Application' of motor carriersAptoproved

increase minimum charge for 80

miles or less to $2.30 per ship

ment

7-

20-54 Application of City Coach LAinpeproved

(Gainesville) to increase fares to

15 cents cash and eight trip

tickets for $1.00

7-20-54 Application of Louisville & Nash ville Railroad for authority to institute condemnation proceed ings to obtain certain property in Pickens County

Approved

7-20-54 Application of Southern Railway Company and Georgia Southern & Florida Railway to cancel re duced rate on cement from Clinchfield to Arkwright, and complaint of Central of Georgia Railway against Georgia South ern and Florida Railway for re fusal to participate in joint rate on cement from Clinchfield to Bolingbroke on same basis as to Arkwright
7-30-54 Complaint against Central of Georgia Railway in connection with rail rates on sulphate of alumina
9-9-54 Petition for reopening and recon sideration of order of July 10, 1954 in this docket

Cancellation de nied; Bolingbroke rate prescribed
Denied Denied

10-4-54 Application of GeorgiaRailroadto Approved discontinue agency service at Carrs

10-4-54 Application of GeorgiaRailroadto Approved discontinue agency service at Culverton

10-4-54 Application of GeorgiaRailroadto Denied discontinue agency service at Sharon

10-4-54 Application of Railway Express Approved Agency to close express office at Culverton

145

177-R

10-4-54 Application of Railway Express Denied Agency to close express office at Sharon

95089509-

10-4-54 Specific point-to-point rail and Rates prescribed

A) 6Sthupt.

motor carrier rates on petroleum

A) 7Sthupt.

products in bulk

7th Supt. 9508-A

10-13-54 Application of rail carriers for ex tension of time to October 23, 1954 in which to comply with Commission's 6th Supplemental Order in this docket

Approved

168-R

10-14-54 Application of Atlantic Coast Line Railroad to discontinue agency service at Millwood

Approved subject to institution of pick-up and de livery arrange ments

173-R

10-14-54 Application of Southern Railway Company to consolidate its pas senger trains Nos. 1 and 27, and 2 and 26 between Macon and Brunswick and to adjust sched ule of its passenger train No. 27 between Macon and Bruns wick

Approved

179-R

10-26-54 Application of Nashville, Chatta nooga & St. Louis Railway to discontinue operation of its pas senger trains Nos. 92 and 93 be tween Atlanta and Tenn.-Ga. state line (en route to Chatta nooga, Tenn.)

Approved

8th Supt, 9508- A) 9509- A)

10-26-54 Point-to-point rail and motor car Errors in previous

rier rates on petroleum products supplemental or

in bulk

der corrected

170-R

10-26-54 Application of Georgia Railroad to Denied with pro

discontinue agency service at vision for test

Devereux

period

176-R 174-R

10- 26-54 Application of Railway ExpreDsesnied Agency to close express office at Devereux
11- 16-54 Application of Central of GeorgOiaperation for test Railway to discontinue its pas period required senger trains Nos. 17 and 18 with increased between Atlnta and Columbus fares and revised consist

146

185-R 180- R 181- R 182- R 186-R

11-19-54 Application of Central of Georgia Railway to discontinue agency service at Herndon
11-24-54 Application of Atlantic Coast Line Railroad to discontinue agency service at Stockton
11-24-54 Application of Atlantic Coast Line Railroad to discontinue agency at Byromville
11-24-54 Application of Railway Express Agency to close express office at Byromville
11-24-54 Application of Central of Georgia Railway to discontinue agency service at Georgetown

Withdrawn Denied Denied Denied Denied

153-R 183- R 184- R 186-R
682-M 169-R

11-29-54 Application of Atlantic Coast Line Denied Railroad to discontinue agency service at Baconton

11-29-54 Application of Atlantic Coast Line Denied Railroad to discontinue agency service at Ideal

11- 29-54 Application of Railway Express Denied Agency to close express office at Ideal

12- 15-54 Petition of Central of Georgia Railway for reconsideration of its order of November 24, 1954 in this docket denying applica tion to discontinue agency serv ice at Georgetown

Denied

12-15-54 Application of motor carriers' Denied Motor Trucking Association to increase rates on caskets and related articles

12-20-54 Application of Sandersville Railroad for authority to institute condemnation proceedings to ob tain certain property in Wash ington County

Approved

BUS FARES AND BUS EXPRESS CHARGES There were no increases in the general level of bus fares during 1954. It tons necessary, however, to permit some reduction in service on the lines of
147

Smoky Mountain Stages between Canton and Atlanta and between Clayton and Augusta; on Southeastern Stages between Mansfield and Atlanta and on Southern Stages between Sparta and Milledgeville, due to the continuing decline in patron age to the level that such operations were becoming a burden on the carriers involved. Some fare increase was permitted in the metropolitan area of Gainesville upon showing of City Coach Lines that the losses being incurred were such as to threaten the existence of that line.
The Commission ea,rly this year concluded, its investigation into the express rate structure of the bus lines in the State of Georgia, and on January 28 issued a comprehensive report giving the results of this study and prescribing a max imum and minimum scale of express rates to be uniformly applied by all bus lines within the State of Georgia. Thus for the first time these bus express rates were placed on a uniform level throughout the State and on a level reflecting the cost of service and the value of such service to an extent not heretofore shown in the carriers' bus express rate structure. The Commission found in its study that over 50% of the express shipments moving via bus weighed less than 15 pounds and over 75% of such shipments moved for distances less than IOC miles. The rate structure prescribed by the Commission was so constructed as to reflect these statistics and also was adjusted to take into consideration the limitation of space in the carriers' baggage and express compartments by authoriz ing a higher measure of rates on light and bulky articles which occupy a large portion of the limited available space, but whose weight is comparatively light.
TRUCK RATES
There was no general change in the motor carrier rates during 1954 except an increase from $2.00 to $2.30 in the minimum charge per less-truckload ship ment for distances less than 80 miles. In May of 1953 increase had been authoriz ed in the minimum charge to $2.30 per shipment where such shipments moved 81 miles or more. The motor carriers at that time had voluntarily excepted from such increase the minimum charge for short haul movements with the minimum charge for distance of 80 miles or less remaining a t $2.00 - the reason for such exception being given as the fear of the smaller carriers that increase in the short haul minimum charge would drive such traffic from common carrier transporta tion. Continuing increase m cost of operation convinced these smaller carriers that increase in the minmum charge for the short distances was necessary in order to cover the cost of handling this traffic and the carriers' application was based on such need.
The motor carriers during 1954 made another attempt to increase their rates on caskets and related articles but the proposed increase was strenuously pro tested by the Casket Manufactures Association of America and, accordingly, set down for public hearing. The Commission did not find that the evidence supported the carriers contention that the rates on these articles should be increased due to their light and bulky nature and found that the favorable transportation characteristics of these articles outweighed their disadvantages. The Commission did not permit the proposed increase in rates but recognized that some exces sively light types of these articles might properly take a higher rate and in dicated that consideration would be given to adjustment of the rates on these
148

commodities to a reasonable varing level, dependent upon the density of such

articles in the shipping form tendered for transportation provided the carriers

could make adequate showing of the need ie r such adjustment.



Still further amendment was sought in the Commission's previous orders governing the transportation of liquid petroleum products in bulk via motor carriers. In the Commission's original order in Docket 9509-A, dated March 20, 1950, maximum and minimum rates on liquid petroleum products in bulk were prescribed for the rail carriers for distances up to 200 miles, and for the motor carriers for distances up to 240 miles - thus resulting in rigid control of the motor carrier rates for distances where there was no such control over the rail rates. The motor carriers filed application for removal of the maximum and minimum rate control for distances from 201 to 240 miles, pointing out th at the Commission itself had stated in its original order that it was extending the range of the motor carrier rates to 240 miles for the purpose of blending the prescribed motor carrier rates for 200 miles into the present rates for distances beyond 200 miles. The Commission after reviewing the record agreed that the sole purpose of this extension of the motor carrier scale to distance beyond that for which the rail rates were prescribed was the prevention of violation of the long and short haul principle and that the Commission had ample other means of insuring com
pliance with that principle and upon reconsideration cancelled the maximum and minimum rates prescribed for the motor carriers for distances in excess of 200
miles.

RATES ON MOVEMENT OF T R A FFIC FOR UNITED STA TES GOVERNMENT
For some time the Commission has been experiencing difficulty with the regulation of charges made by motor common carriers for the transportation of property for account of various agencies of the United States Government. The practice of those organizations in soliciting secret sealed bids from the carriers for particular movements has resulted in destructive rate cutting and the re sultant charges have borne little or no relation to the rates charged the general public.
The Commission found that many of these reduced rates quoted by the motor carriers of property had allegedly been made to meet so-called "Section 22" rates quoted by the rail carriers under the provisions of the Commission's General Rule No. 13. This general rule allows the railroads to quote reduced rates on Georgia in trastate traffic to the same extent as is provided in the Interstate Commerce Act. The Commission's General Rule No. 5, however, requires that all special rates (which obviously would include the rates in question) made by A n y company for any service to be rendered shall first be submitted to and approved by the Com mission.
It has been contended by some of the motor carriers and by transportation officials of some of the Government agencies that this Commission has no juris diction over the rates, charges and services of motor carriers performing for-hire transportation for the United States Government when such transportation is over federally aided highways. The basis for this contention is a decision of the Comptroller General of the United States handed down in November, 1935, in a proceeding involving a particular situation in the State of Arizona.

149

In order that the Commission might be properly advised as to its jurisdiction over this type of transportation, a request was made to the Attorney General of the State of Georgia to render a formal opinion as to the effect of the above-
mentioned Arizona ruling on the regulatory powers of this Commission over motor carrier rates and services. The following was received as the opinion of the Attorney General of the State of Georgia.

Mr. Dave 0. Benson, Director Transportation Rates Division Georgia Public Service Commission Atlanta National Building Atlanta, Georgia Dear Mr. Benson:

March 8, 1954

I duly received your letter of February 24 and the request of yourself and Chairman McWhorter of the Georgia Public Service Commission for a formal interpretation of the effect of the ruling of the Comptroller General of the United States, contained in Volume 15, Page 425 of the Decisions of the Comptroller General of the United States, on the jurisdiction of the Georgia Public Service Commission over the rates, charges and services of motor carriers performing forhire transportation service for the United States between points within the State of Ga.

The opinion of the Comptroller General rendered in November, 1935, is to the effect th at a State may not by the imposition of licenses on truck lines interefere with the right of the United States to operate over the public roads either by means of a Government truck or a contractor engaged by the Government for the exclusive purpose of transporting Federal supplies, and a contractor may not
be excused from performance on the grounds that the State Commission has refused to grant him a license.

It was' therein stated that the United States has a right to transport its supplies over the public roads in Arizona and particularly over the roads which the Federal Government assisted in constructing, either by means of a Govern ment owned truck or by the employment of such trucking concern as may be
satisfactory to the United States. The State of Arizona may not interfere there with by denying to the United States the right to operate over the public roads by means of a Government truck or a contractor engaged by the Government for the exclusive purpose of transporting Federal supplies.

In the opinion of the Comptroller General, there was cited the case of Johnson
v. State of Ohio, 254 U. S. 251, and the case of Western Union Telegraph Com pany v. Pendleton, 122 U. S. 347.

In the Johnson case, it was held that a law of a State penalizing those who operate motor trucks on highways without having obtained licenses based on
examinations of competency and payment of a fee, cannot constitutionally apply to an employee of the Post Office Department while engaged in driving a Govern
ment motor truck over a post road in the performance of his official duty. (Citing Ohio v. Thomas, 173 U. S. 276, 283)

In the case of Ohio v. Thomas, 173 U. S. 276,283, it was held that the police

150

power of the State does not extend to the United States, its property or transac tions and that Federal property and transctions are immune from State regula tions and conflicting State statutes are invalid under the Supremancy Clause of the Constitution of the United States.
The Supremacy Clause of the Constitution of the United States, same being Article 6, Clause 2, provides: "This Constitution and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land, and the Judges in every State shall be bound thereby, any Thing in the Constitution of Laws of any State to the Contrary notwithstanding."
Clearly, the opinion of the Comptroller General of the United States is correct insofar as the immunity of the Federal Government is concerned. However, there is considerable doubt as to whether that part of the opinion relating to contractors transporting Government goods under contracts with the Government is correct. The Supreme Court opinions cited by the Comptroller General do not support this conclusion. I do not locate any Georgia decisions which deal specifical ly with this point. There was a subsequent opinion of the Supreme Court of the United States, that of Pennsylvania Dairies v. Milk Control Board, 318 U. S. 261 that supports the view that the immunity under the Supremacy Clause would not be extended to those furnishing supplies to the Government.
It would be our opinion that the Georgia Public Service Commission would have complete authority over contractors performing services for the Government, that is to regulate their rates, charges, services, etc., but that they would have no authority over Government-owned carriers engaged in work for the United States Government.
We trust that this satisfactorily answers your inquiry, but if further in formation is desired, we will be glad to furnish same upon request.
Very truly yours,
EUGENE COOK, ATTORNEY GENERAL, STATE OF GEORGIA
DUDLEY COOK, DEPUTY ASSISTANT ATTORNEY GENERAL FOR GEORGIA PUBLIC SERVICE COMMISSION
In line with that ruling the Commission on March 11 advised all motor carriers certificated by the Commission to transport property between points within the State of Georgia that they would be required to charge for such trans portation the rates and charges approved or prescribed by this Commission re gardless of the company or agency for whic hthe transportation was performed with the warning that carriers found violating that direction would thereby place in jeopardy their operating certificates.
At the same time the railroads were advised that it would be necessary that all so-called "Section 22" quotations covering Georgia intrastate transportation be submitted to the Commission for prior approval.
The principal difficulty experienced with the charges for the transportation of property for account of the United States Government has been in connection
151

with the movement of household goods for the various branches of the Armed Forces. Although the Commission has made every effort possible to cooperate with the transportation officers of the Armed Forces and has offered to make any reasonable adjustment in the type and form of rate structure applicable on these movements, the Government representatives have insisted upon the secret sealed bid practice, contending that the State of Georgia has no jurisdiction whatsoever over any movement for account of the United States Government.
Most of the carriers are cooperating with the Commission in the effort to eliminate the evil of secret sealed bidding--an evil which this and other regula tory Commissions were set up to specifically curb--but there remain some prac tices of a few of the carriers which do not comply with the tariffs approved by the Commission. Specific action is contemplated in the future against such car riers when sufficient detailed information is gathered to substantiate such action.
RAILWAY EXPRESS
In July of 1953 the Interstate Commerce Commission permitted the Railway Express Agency to increase its rates and charges by varying amounts averaging 15% and by application dated August 27, 1953 the Railway Express Agency sought to make the same increases in Georgia and to further increase its com modity rates on drugs, medicines and related articles to the same level as applic able on interstate traffic. Hearing was begun on December 17,1953 but was not concluded until February 8th of this year. Once again the justification submitted by the Express Agency for the increase was based on increased wage cost result ing from new wage contract with its employes. The evidence showed that the increases sought would cover the increases in the cost of operation due to the wage increases but would still fail to provide sufficient revenues to. pay to the railroads for transporting express, the amount which the railroads have long contended should be paid for such service. The Interstate Commerce Commission in its decision in Ex Parte 185 based its grant of increased rates to a large extent upon the .necessity for providing an express rate structure which would return revenues sufficient to prevent the provision of express service from being such a burden on the railroads' passenger service. This Commission concurred in the necessity for safeguarding the railroads' passenger service to the extent possible and, accordingly, granted the general increase sought. However, the Commission found that the large increase sought in the rates on drugs and related articles were not justified by the record and would result in extensive diversion of this traffic to other modes of transportation and granted only a 25% increase in these rates in lieu of the appreciably larger increase sought.
Further reduction in the value of express service was threatened by the dis continuance sought during the year of 9 express offices at points where the rail road station agency service was discontinued and the station agent was joint railroad and express agent. However, of the 9 discontinuances sought only two, Vidette and Culverton, were approved and authority to close the express offices at Ideal, Sharon, Devereux, Byromville, Norman Park, Towns and Alto was denied.
152

RAILROAD PASSEN GER SER V IC E
In March the Southern Railway sought authority to consolidate its AtlantaWashington northbound passenger trains Nos. 40 and 48 (to operate on No. 48's schedule) and its Washington - Atlanta southbound passenger trains Nos. 29 and 47 (to operate on train No. 47's schedule). This proposal - actually involving the elimination of train Nos. 29 and 40 - followed the action of the Pennsylvania Railroad in discontinuing its passenger trains Nos. 122 and 151 between Wash ington and New York, thus removing the Washington connections of Southern Railway trains Nos. 29 and 40. The Southern Railway proposed to put Pullman sleepers on its former all-coach "Southerner" (trains 47 and 48) and claimed that the resultant consolidated trains would provide better service than the individual trains. The Commission on April 2 approved the consolidations subject to the provision that the southbound consolidated train stop a t Cornelia in order to pro vide Pullman service to that city.
On October 14th the Commission issued an order authorizing the Southern Railway Company to consolidate its Passenger Trains Nos. 1 and 27 southbound and 2 and 26 northbound between Atlanta and Macon, and to adjust the schedule of its Passenger Train No. 27 between Macon and Brunswick - the application having been filed on July 6 and heard on October 7. The evidence showed that the passenger revenue on the two trains had consistently declined since World War II and for the latest 12 month period such revenue had amounted to less than one-third of the wage expense of the train crew alone. The patronage of these trains between Atlanta and Macon had declined to where an average of only 5.2 passengers per trip rode Train No. 26 and an average of only 8.6 passengers per trip rode Train No. 27, and almost 30% of those passengers traveled between the terminal points of Atlanta and Macon. The Commission found th at the propos ed consolidation with the consolidated trains to operate on the present schedule of Trains Nos. 1 and 2 with additional stops at McDonough, Jackson and Juliette would meet the passenger service needs in the area involved and that the proposed substitute arrangement for the handling of mail and express would be adequate.
On October 26th the Commission authorized the Nashville, Chattanooga & St. Louis Railway to discontinue operation of its Passenger Trains Nos. 92 and 93 between Atlanta and the Georgia - Tennessee State Line (en route to Chattanooga, Tennessee). There was no public opposition to this application, the Chattanooga connection of these trains having been discontinued on September 1st, thus re sulting in the remaining operation being of little importance and of practically no value - the riding having dropped since that time to an average of less than two passengers per day.
The Central of Georgia Railway on September 18th applied to the Commission for authority to discontinue operation of its Passenger Trains Nos. 17 and 18 between Columbus and Atlanta. These two trains are two of the four daily trips of the Central of Georgia's streamlined trains, the "Man O'War" and the railroad sought to discontinue the two most unprofitable of the four runs. Strenuous opposition developed to the proposal from Columbus and from intermediate points between Atlanta and Columbus, and the Commission on November 16th issued an order neither approving or denying the application, but holding the record open for restudy and rvaluation at the end of a five month test period, wherein the
153

carrier was directed to increase its fares to the general level authorized in Georgia, to discontinue the tavern car (agreed by the protestants to be an un necessary expense) and to strongly promote the service through increased ad vertising. The Commission's order required that the test period run to May 1, 1955 and th at monthly reports of the operations under the test conditions be furnished both to the Commission and to the protestants present at the hearing.
R A IL FREIG H T
The Interstate Commerce Commission by its order dated July 29, 1953 denied the railroads' application for authority to make the Ex Parte 175 (15% ) increases in rates and charges a part of their basic rate structure but did grant extension of the previously imposed expiration date of February 28, 1954 to December 31, 1955.
By petition dated August 12, 1953 the Georgia railroads sought similar action in connection with these increases in Georgia. At the hearing on January 21st of this year the evidence showed that the carriers' traffic had dropped substantially during the last four months of 1953, due to the general decline in business, and th at their rate of return without the Ex Prate 175 increases (state and interstate) would average only 2.74% a t the higher level of business earlier during the year and would drop alarmingly if the decline in traffic continued. In recognition of this situation we followed the action of the Interstate Commerce Commission and the other state commissions and permitted the extension of expiration date to December 31, 1955.
Also during 1953 the Georgia railroads had sought removal of the commodity exceptions ordered in connection with the general rate increases authorized since the end of World War II. Hearing was not held until December of last year and' decision rendered by the Commission on April 16th. Due to change in competitive conditions on which were based many of the exceptions a t issue in this proceeding shippers advocating such exceptions in previous hearings no longer sought con tinuation of those exceptions and the Commission accordingly authorized the can cellation of exceptions insofar as they pertained to Georgia intrastate rates on tobacco, naval stores, peanuts, clay and shale with the specific understanding, however, that the carriers would maintain, as agreed, exceptions on specific move ments of clay and shale and stone, marble and granite. The Commission did not permit, however, the removal to the extent sought of the exceptions applicable on shipments of logs and road aggregates. The carriers' presentation in this proceed ing was directed primarily a t the general showing of revenue need and in con sideration of the strenuous and continued opposition on the part of the shipping public to the proposed removal of the exceptions on logs and road aggregates the Commission declined to approve the removal of such exceptions without specific showing of the reasonableness and justness of the rates sought on those com modities.
On June 28th the Southern Railway and the Georgia Southern and Florida Railway sought authority to cancel reduced rate which such carriers had previous ly established on May 4th applicable on carload shipments of cement in bulk from
154

Clinchfield to Arkwright. The rate had been reduced to the level of a general basis of rates contemplated to be subsequently established in order to meet threatened private motor carrier competition in the transportation of a substantial amount of cement to Arkwright for use in a road construction project. The car riers testified that they had received numerous objections from other cement pro ducers and receivers in the areas served by them because corresponding reduc tions had not been made from other producing and to other consuming points and the applicants based their request for cancellation on the desire to remove any discrimination which might have been caused by the publication of this reduced rate. The contractor constructing the road project involved protested the pro posed cancellation and the Central of Georgia Railway intervened in the proceed ing requesting that the Commission consider a t the same time the refusal of the Georgia Southern and Florida Railway to enter into arrangements for the pub lication of a joint rate on cement from Clinchfield to Bolingbroke (a local sta tion on the Central of Georgia Railway located near the highway construction project) on the same basis as that from Clinchfield to Arkwright, a refusal which had resulted in discrimination against Bolingbroke on the Central of Georgia Railway. The Commission found that the establishment of cement rates through out the State on the same basis as the Clinchfield - Arkwright rate proposed to be cancelled would satisfactorily remove any discrimination existing insofar as shippers and receivers of cement were concerned, but that the failure of the Georgia Southern and Florida Railway to join in joint rates with the Central of Georgia Railway violated the Commission's Freight Rule No. 10 which prescribes that all railroads of this State shall at all connecting points afford to any other railroad company under substantially similar circumstances equal facilities for the interchange of freight upon like terms and conditions without discrimination in favor of or against any railroad, and by order dated July 20th declined to permit the proposed cancellation and ordered the Georgia Southern and Florida Railway to comply with the provision of Freight Rule No. 10 by participating in the joint rate to Bolingbroke on the same basis as it participated in the joint rate to Arkwright.
A formal complaint filed on April 7th sought interpretation of a provision of the railroads' fertilizer tariff so as to require a carrier to adjust charges on cer tain shipments billed as sulphate of alumina to the basis of rates on soil compound authorized in said tariff. The Commission after public hearing found that the commodities shipped were sold and billed by the shipper as aluminum sulphate was not sold as a soil compound but as a comparatively expensive plant food. The was not sold as a soil compound but as a compartively expensive plant food. The Commission found the complaint to have no merit and that the material was properly ratable as aluminum sulphate, and accordingly dismissed the complaint.
For some time the Commission had been receiving complaints from the car riers and from the public concerning the misapplication and miscomputation of distances to be applied in determining rates on carload and truckload shipments of petroleum products under the Commission's maximum and minimum rate orders in Dockets 9508-A and 9509-A. In order to resolve this difficulty once and for all, the Commission on October 4 and October 26 issued supplemental orders in those dockets prescribing maximum and minimum point-to-point rates on petroleum products in bulk moving from terminals on the Plantation Pipe Line and from the
155

marine terminals to all destinations located up to and including 200 miles from such origins to which shipments had been made during the past year.
CONDEMNATION PROCEEDINGS
During the year there were three proceedings involving condemnation of priv ate property for public use by the railroads. Two of the applications, that of the Louisville & Nashville Railroad Company to obtain certain property in Pickens County and that of the Southern Railway to obtain certain property in Haralson County, were comparatively minor and were approved upon proper showing by the carriers that the property was necessary to said carriers for public purposes.
The third proceeding, however, resulted in long drawn out hearings and was strenuously opposed by several of the property owners affected. This proceeding involved the application of the Sandersville Railroad Company for permission and approval to institute condemnation proceedings for the purpose of acquiring certain property located in Washington County to be used in the construction and building of a spur line approximately six miles in length to serve a new kaolin processing plant approximately six miles west of Sandersville. The track proposed to be constructed would extend from the present terminus of the Sandersville Railroad in Sandersville approximately six miles to the site of a proposed new kaolin processing plant - the building of such plant being totally dependent upon the provision of adequate railroad transporation facilities. Three property owners objected strenuously to the proposal to construct the new track through their property, contending that the proposed right-of-way traversed their property in the most choice and developing residential section of Sandersville, thus substan tially reducing the value of their remaining property, and further contended that no reasonable efforts were made by the railroad to purchase the property and that the proposed operation was not in the interest of the public, but for the private gain of the principal owner of the railroad. These protestants advocated either construction by the same company over a different route or the provision of the needed service by a different railroad approaching the proposed kaolin develop ment from another direction. After full and exhaustive hearing the Commission issued an order on December 20th finding the proposed construction to be in the general public interest and that the route proposed was the most feasible and economic manner in which the needed railroad service could be provided to the new plant. The Commission further found the proposed construction to be a side track properly under the jurisdiction of this Commission and within the charter powers of the carrier to construct.
RAILROAD AGENCY SERVICE
The railroads' efforts to reduce their cost through the discontinuance of agency service a t the smaller stations where traffic had diminished to the point were they felt that no further service was needed was reflected by the filing dur ing the year of applications to discontinue agency service at 19 stations. The ap plications were uniformly based on decline in revenues and the carriers' belief that the type and volume of traffic a t the affected stations could be adequately handled without the services of an agent. Opposition developed in most cases - the affected towns in general being very reluctant to see the railroad agency removed even though other common carrier services were available. Of the applications filed
156

the Commission found that in 10 instances the public convenience and necessity of
the affected area required the continuation of agency service and denied authority to discontinue such service at Baconton, Devereux, Ideal, Georgetown, Stockton, Byromville, Sharon, Norman Park, Towns and Alto. The denials of authority to close the agencies a t Alto, Devereux and Towns were made subject to review by the Commission after the expiration of a test period of operation. In nine instances the Commission found th at the losses being incurred in the provision of the agency service outweighed the need shown for such services and authorized discontinu
ance of the agencies at Culverton, Vidette, Ft. Benning Jet., Mauk, Lakewood Station, Alston, Carrs, Milwood and Wesley.

WESTERN & ATLANTIC RAILROAD

The Annual Report of the Nashville, Chattanooga & St. Louis Railway as lessee of the State-owned Western & Atlantic Railroad for the calendar year 1954,

shows for the net expenditures charged to the accounting classification "Additions

and Betterments" by classes of railroad property the following amounts.

Improved track materials ---------------------------------------------------$ 1,007.07

Bridges, trestles and culverts

27,737.06

Yard tracks and sidings .------

6,544.80

Public improvements ----------

4,726.10

Signals and interlockers -------

8,549.76

Station and Office Buildings

3,214.05

Telegraph and Telephone L in e s ----------- ------------ ---------------- 251.37

Purchase of land (additional right-of-way) ----------- ---------- --- -- 1,732.75

The above net additions reported are after deduction for the value of the
property replaced during the year and total $53,762.96 for 1954. The net capital expenditures made by the Nashville, Chattanooga & St. Louis Railway for addi tions and improvements to the Western & Atlantic Railroad from the beginning of the lease in 1919 through December 31, 1954 amount to $7,323,615.

PARTICIPATION IN INTERSTATE RATE CASES
As indicated in our report last year, Division 2 of the Interstate Commerce Commission on December 3, 1953 issued a decision in Docket 30958-- Reduced Rates On Pulpwood In Southern Terrtory even more unfavorable than the pro posed report of the Examiner issued in this proceeding in 1952. The decision of Division 2 found unjust and unreasonable the 150% basis of rates on pulpwood which we have been supporting since November of 1951 and prescribed as minimum a scale of rates substantially the same as that sought by the protes tants--that scale being basically the Roanoke Rapids scale fully increased under all the horizontal increases with slight adjustment in the lower mileage brackets.
On February 11 we joined with the other interested southern states in filing a petition with the Interstate Commerce Commission seeking reconsideration of this order of Division 2 and seeking rehearing by the full Commission. We pointed out several errors in the findings of Division 2--particularly the failure to re cognize the transit nature of the pulpwood rates, the impact of the prescribed rates on our reforestation programs and the potential upset of a uniform regional basis

157

of rates established by seven southern state commissions--and strongly urged further rehearing before the full Commission.
Representatives of the paper industry filed similar petition for reconsider ation and rehearing by the full Commission, and the Interstate Commerce Com mission on April 19 granted our petition and assigned the matter for rehearing on May 26. At the request of all parties concerned the hearing was postponed and was later reassigned for September 14, at which time it was held.
Representatives of this Commission made the general presentation for the southern states and we submitted in addition valuable testimony of members of the State Forestry Commissions of the affected states. The hearing was con tinued to November 16 for the purpose of further consideration of the conflict ing cost statistics submitted by the opposing sides and was to allow the parties time to study and rebate those cost statistics. The record was closed following the November hearing and we are now awaiting a decision of the full Commission. A much more complete record was submitted at this hearing and it is anticipated that the decision of the Commission this time will be final.

1954 UTILITY REGULATION
General

The work load on the Commission's utility staff was about the same as the
previous year. The summary of work accomplished by the staff on utility com plaints in 1954 is given in the following table:

Number of electric complaints _____________..,,.L ....^ ... 152

Number of gas complaints ______________ ....__ ___ L_ 346

Number of telephone complaints_________ ___ V'/, ~T_____1 405

Total _--

-------i v , ;

. .1*903

The 'majority of these complaints were satisfied but some 200 remained in suspense pending further field investigations and negotation with utilities and the consumers. During the year Southern Bell Telephone Company reduced the number of held applications for service from 17,423 to 7,767. Also during the same period the number of regrades for service was considerably reduced from 31,607 to 17,613. The number of Southern Bell telephones in Georgia increased from 641,257 to 681,364. The independent telephone companies increased the number of stations from 87,595 to 95,778; and at the same time reduced the number of magneto exchanges from 40 to 30. The magneto exchanges were con verted to automatic dial operation, thus making for more modern and improved service to the subscribers.
Inasmuch as numerous complaints were registered by Georgia Power con sumers as a result of the lc penalty on seasonal use charge, the Commission was able to have the Company file a new rate schedule "A-9" which reduced the charge from lc to V2c per KWH. This reduction appears to have satisfied the majority of complaints as received by the Commission. However, the Commission's objective is to finally eliminate all seasonal use charge on this particular rate schedule.

On August 9, 1954 a very serious strike threatened the proper operation of

158

Atlanta Gas Light Company, more particularly in Atlanta. The pipe fitters and service men, together with meter personnel, were out until October 11, 1954, making a total of 63 days. During this period of time hundreds of complaints were filed with the Commission, many of which were emergency, requiring immediate service for safety and health. The Commission's staff was able to have service established for practically all of these emergency cases, the work being performed by supervisory personnel.
In an endeavor to meet the increasing demand for telephone service by resi dents in the State of Georgia, construction, expansion and improvement of tele phone facilities by independent telephone companies continued at a rapid pace during 1954. In order to provide capital funds for such purposes a number of applications were filed with the Commission by independent telephone companies and cooperatives wherein authority was requested to borrow funds and issue securities. In 17 orders published by the Commission, certain independent tele phone companies and cooperatives in the State of Georgia were authorized to make loans and issue securities which provided capital funds aggregating $4,777,200. Of this amount $2,130,000 was authorized to be obtained from the Rural Electrification Administration, Washington, D. C. in order that citizens in urban and rural areas of Georgia would be provided with telephone service rendered over modern dial telephone systems.

CERTIFICATES ISSUED IN 1954

SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY:

Amendments to Certificates __-- ---- ------ ----

--*- 34

INDEPENDENT TELEPHONE COMPANIES AND CO-OPERATIVES:

New Exchange Certificates ------------- --------------- ------------- - -----15

Amendments to Certificates --------------- ----------- ------------- ------ 42

Certificates for Rural Co-operative Exchanges ------------------------ * 2

Certificates issued as result of acquisition -- -- -- ---- ------- -- 12

Total Independent & Co-Operative Certificates ------------------ -a- 71

Total Southern Bell, Independent and Cooperative Certificates

105

TELEPHONE UTILITIES
During the year 1954 the Commission issued 17 decisions regarding rate applications filed by independent telephone companies. Authority was granted to increase rates for telephone service in 12 instances following a proper show ing by companies that net income was inadequate due to increased operating costs. The total amount of increased revenue sought was $129,846 per annum, while the amount granted was $82,419 per annum. In addition, 4 orders were issued by the Commission pertinent to applications filed by companies and co operatives, wherein authority was requested to establish rates for telephone service upon construction and expansion of telephone facilities. Annual local service revenues from the rates proposed in these cases totaled $159,239. Revised rates prescribed by the Commission provided $154,415.
On September 1, 1954 the Commission issued a Rule Nisi against Mr. L. Parker, dba Uvalda Telephone Company, to show cause why the Commission should

riot require efficient, adequate and dependable telephone service in Uvalda, and failing therein, why rates in effect should not be reduced and made commen surate with the character of service being rendered to subscribers. Public hearing of the matter was held before the Commission on September 15, 1954. After careful consideration of the evidence and testimony in this case, the Commission concluded that the rates for telephone service in Uvalda and vicinity should be made commensurate with the service being rendered. It was, threfore, ordered that effective with bills rendered on and after October 1, 1954 that the rates in effect be reduced one-half for unlimited telephone service rendered by the Com pany, such reduction in rates to remain in effect until such time as telephone plant shall have been satisfactorily rehabilitated, to render proper, adequate and dependable telephone service, subject to investigation and approved by the Com mission's Engineering Staff.
TELEGRAPH UTILITIES
Western Union Telegraph Company filed an application for increased rates due to increases in the cost of doing business, including a substantial wage increase granted to company employees, effective May 31, 1954. The rates re quested would establish the same rates for intrastate service in the State of Georgia, as has been authorized by the Federal Communications Commission for interstate telegraph service. After proper hearing of the m atter the Commission concluded that the authority requested should be granted. The increased rates requested were authorised by the Commission such to be made effective a t 12:01 A.M.i November 1, 1954 and resulted in an increase in gross revenue of the company of $146,503 per annum.
ELECTRIC UTILITIES
During 1954 the construction programs of the electric utilities continued at a high level. As a result several applications for authority to issue securities were filed arid approved during the year. On May 4, 1954, Savannah Electric and Power Company was authorized to issue and sell 25,000 shares of its common stock with a par value of $10 per share, which was sold a t a price of $19 per share for a total consideration of $475,000. Also on July 15, 1954 Georgia Power and Light Company was authorized to issue $1,500,000 principal amount of its First. Mortgage Bonds, 3.40% series, due 1984. The proceeds of the above issues were to be utilized to strengthen the companies facilities and to meet the growing de mand for electric service in their territories.
On September 9, 1954, Georgia Power Company was granted authority to issue, either for exchange or sale 433,869 shares of preferred stock and also to borrow up to $3,500,000 from banks. The purpose of this issue of preferred stock was to refund the. then outstanding 433,869 shares of $6.00 preferred stock on terms which would reduce the cost of capital to the Company. The bank loan was necessary in order to provide a portion of the funds required in connection with the proposed exchange and redemption of preferred stock. This loan was made on unsecured notes repayable in 16 equal semi-annual installments bearing interest at the rate of not more than 3 % % per annum.
On September 29, 1954 Savannah Electric and Power Company was granted
160

authority to issue $5,000,000 principal amount of First Mortgage Bonds. 314 % series, due 1984; $3,000,000 principal amount of 3 3/8% debentures, due 1979, and $3,000,000 of 4.36% preferred stock, series A, $100 pershare par value. The purpose of these issues was to provide funds for refunding a major portion of the outstanding debt securities and the preferred stock of the Company, which were issued and sold from time to time in relatively small issues and could not be disposed of upon as favorable terms as might otherwise have been possible, had the size and the respective offerings been larger. This is the first phase of a long range financing program and it appears that the money market has materially improved from the standpoint of the issuing companies since the completion by the Company of arrangements made in 1953 for the financing of its construction program through the year 1954, and that predicated upon existing favorable market conditions and in view of its present size and reasonably anti cipated growth, the Company accomplished the refunding of its securities upon a basis that reduced its interest charges, preferred dividends and sinking fund requirements, as well as reduced the costs incident to two series of bonds and es tablished a wider market for its securities.
As set forth in our 1953 Annual Report, the Commission on March 23rd of that year authorized the Georgia Power Company to include a fuel adjustment clause in certain of its rate schedules. That Order stated, among other things, that when and if increased fuel costs made the clause operative, upward adjust ments, in excess of the first two one-hundredths of a cent per KWH may be made only after 15 days notice to the Commission of such adjustments, each such notice permitting up to an additional one one-hundredth of a cent per KWH when applicable, but the Commission has the right to suspend such further adjustments, if such is warranted. The Order further required the Georgia Power Company to give notice to its large industrial consumers of increased fuel adjustment charges when such notice was required to be given to the Commission. Pursuant to these requirements the Georgia Power Company on June 21, 1954 advised the Commis sion and large industrial consumers of the anticipated increase in fuel adjust ments, above the two one-hundredths of a cent per KWH. Complaints were re ceived from various consumers requesting that no further fuel adjustments be permitted. Hearings were held on the m atter on July 20, 1954, a t which time it was determined that the increase was a direct result of the high cost of stock pile coal. The Company keeps its coal inventories on an average cost basis and the cost of coal used in production will continue to remain above the base level established until stock piles are replaced by current lower cost coal. The Commis sion, therefore, ruled on July 28, 1954, that the fuel adjustment charge should be limited to the maximum of two one-hundredths of a cent per KWH, until further order of the Commission.
Reference is made to our 1953 Annual Report wherein steps taken by the Commission in its attempt to reduce the cost of power of the Georgia Power and Light Company are outlined. As reported in that year, the Commission issued a RULE NISI to the Georgia Power Company and Georgia Power and Light Company on December 16, 1953, calling on said companies to show cause why the Georgia Power and Light Company should not contract to purchase all its electric power requirements from the Georgia Power Company and why that Company should not arrange to provide such service a t a reasonable and corn-
161

pensatory rate; and further, that an appropriate petition be filed with the Secur

ities and Exchange Commission with respect to that Commission's Order of

divestment and disintegration which provided for the dissolution of the old lnsull holding company, Associated Gas and Electric Company, which order

set up the Florida Power Corporation and the Georgia Power and Light Company

as an economic entity, seeking an Order from that agency which would provide

for the divestment of the Georgia Power and Light Company from the Florida

Power Corporation, and for the sale of said property a t a fair value, either to

the Georgia Power Company, or to a separate and independent operating entity

whichever may finally be shown to be in the best interest of the people in th

Q T>Q c v t r n / 1

Xr XT -

This m atter was assigned for hearing before the Commission on February 2, 1954. Later, due to additional time required for preparation, the hearing was postponed to March 2, 1954. However prior to the hearing date the Commission J f.s, Perianently enjoined from taking any action on the m atter by petitions filed by the respondents in the Fulton County Superior Court. On May 12, 1954 the Georgia Power and Light Company was notified by the Commission that the' temporary rates authorized in the Commission's Order, dated October 27 1953 m Docket 470-U, effective November 15, 1953 would expire on May 15, 1954. The Company was directed, in said notification, to file rates in effect, prior to November 15, 1953, with the Commission and to make said rates effective on and after May 15, 1954.
Following receipt of the Commission's notification, the Company petitioned the Fulton County Superior Court for an Order which would enjoin the Com mission for putting the rates into effect as ordered in its directive, May 12 1954 A temporary restraining Order was granted by the court, and said Order was ater ordered to be continued in force for a period of 4 months beginning May 27, 1954 and until further Order of the court. The Order directed the Commission to allow the increased rates to remain in effect under bond in order to guarantee a refund to the customers in the event rates were found to be excessive.
After the court remanded the m atter to the Commission a detailed examina tion of the books and accounts of the Georgia Power and Light Company was made by the Staff of the Commission. On June 18, 1954, Georgia Power and Light Company filed another application with the Commission requesting authority to make permanent the increased rates authorized by the Commission in its Order dated October 27, 1953. Hearings on this m atter were held from time to time through November 3, 1954, at which time it was taken under advisement by the Commission. No decision was reached by year's end.

GAS UTILITIES *
During the 'year construction requirements resulted in the Commission authorizing the Gas Light Company of Columbus and Mid-Georgia Natural Gas Company to issue securities. The former' Company was authorized to obtain a three year loan in the amount of $700,000 bearing interest at the rate of 4% per annum, while the latter company was authorized to issue and sell $400,000 principal amount of its F irst Mortgage Bonds, $200,000 principal amount of Deb entures, both bearing interest at the rate of 5%) per annum, and to recall its
162

common stock and issue 219,000 shares of new $1 par value per share common stock in lieu thereof. The proceeds of the loan obtained by the Gas Light Company of Columbus were authorized to be expended for current construction costs
incurred by the enlargement of its distribution system to meet new service demands. The proceeds from the security issues of Mid-Georgia were authorized to be expended to pay construction notes, accounts payable, and to retire an outstanding loan of $37,000 from the Reconstruction Finance Corporation, all
being incurred to finance the inital construction of the natural gas distribution systems in Conyers, Milstead, and Porterdale, Georgia.

On February 23, 1954, Atlanta Gas Light Company filed an application

with the Commission requesting authority to increase its rates for natural gas

service to provide $2,030,000 of additional gross revenue per annum. Said increase was predicated on the increased costs of rendering service, including a fair return

on the substantially increased investment in utility plant and equipment. In its

order the Commission found that an annual increase in gross operating revenues

of $265,582 would provide gross income to the Company equivalent to a return of

6%% on the average net original cost rate base, as determined by the Com

mission.

,

Southern Natural Gas Company filed amended rate tariffs with the Federal Power Commission on October 1, 1954 which would increase rates on all natural gas sold in Georgia for resale. On October 13, 1954 this Commission filed a peti tion with the Federal Power Commission ,requesting that the entire proposed in crease be suspended in accordance with the provisions of the Natural Gas Act. By order issued October 28, 1954 the Federal Power Commission suspended the increase in rates except as to gas sold for resale for industrial use only/with respect to which the Commission concluded that it did not have authority to suspend. The non-suspended rate increase of .746 cents per MCF on interruptible deliveries for industrial gas became effective for gas delivered on and after Nov ember 1, 1954.

Pursuant to the increase for gas sold for resale as interruptiable deliveries for industrial use, the Gas Light Company of Columbus filed a requst to adjust its rate schedules to reflect the increase in the cost of gas purchased. The Com mission granted the increase which amounted to some $11,800 per annum, subject to refund if such rate were subsequently reduced upon final determina
tion by the Federal Power Commission.

INTERVENTIONS BEFORE THE FEDERAL POWER COMMISSION IN MATTERS CONCERNING UTILITY RATES IN THE STATE OF GEORGIA
On March 4, 1952 South Georgia Natural Gas Company filed an application with the Federal Power Commission for a Certificate of Public Convenience and Necessity, authorizing the construction of a natural gas pipe line to bring natural gas service to 11 communities in Georgia and to 3 communities in Florida. The Georgia communities to which natural gas will be brought are Albany, Americus Bainbridge, Cairo, Camilla, Cordele, Dawson, Moultrie, Pelham, Richland and Thomasville.
The proposed pipe line is to receive gas from the Southern Natural Gas

163

Company from their southern system at a point just over the Georgia state line into Alabama. In its request for authority to construct this line, South Georgia set forth the rates it proposed to charge for natural gas service in the State of Georgia. This Commission believing that the indicated rates were excessive, unjust, and unreasonable, filed a Notice of Intervention on April 16, 1952, for the purpose of attempting to reduce rates for gas service to the people of Georgia.
As a result of the above intervention the Commission and its Staff par ticipated in the hearings on this case in Washington, D. C., commencing in October 1952 and continuing through August 1954. This Commission was the most active represented intervenor during this proceeding and it was mainly through our efforts that a substantial reduction in rates was eventually brought about. A reduction of some 25% in all rates was obtained, thus effecting a savings of many thousands of dollars per annum for the people of Georgia.
TRANSIT UTILITIES
On April 9, 1954 an application was filed with the Commission by the Atlanta Transit System, Inc., in which, authority was requested to issue 252 shares of common stock with a par value of $100 per share and to issue evidences of indebtedness to Atlanta Transit Company in the amount of $4,431,000 and $659,000 for the purpose of acquiring the physical property then owned and operated by Atlanta Transit Company. The sale of the physical properties con templated no change in the extent or location of the service provided in metro politan Atlanta, nor any change in fare levels. The principal question involved in the change of ownership was the establishment of the present fair value of the physical assets transferred. After a detailed study of the evidence the Commission concluded that the value agreed upon by the two companies was reasonable. The transfer was, therefore, approved subject to certain conditions and stipulations regarding outstanding contractural obligations of Atlanta Transit Company to be assumed by Atlanta Transit System, Inc. Later during the year Atlanta Transit System was authorized to negotiate a note in the principal amount of $150,000 bearing interest a t the rate of 4% per annum to finance the purchase of 10 new motor buses.
Also during the year Savannah Transit Company requested authority to strengthen the capital structure of the Company. In order to insure the financial stability and future credit of the Company authority was granted to transfer $200,000 from unappropriated Surplus to the Capital Stock account by the issu ance of an additional 2,000 shares of $100 per value per share common stock.
In rate matters, Savannah Transit Company filed an application with the Commission requesting authority to increase token fares from 4 for 31c to 4 for 36c. The Company'has continued to lose passengers at a steady rate for sometime. Economies had been made to offset losses in revenues to the point where it was felt that further economics would result in lowering the standard of service. After certain adjustments on November 4, 1954, the Commission granted the Company authority to increase its token fare to 4 for 35c. The increase in fare authorized was estimated to provide additional revenues of approximately $184,000 before income taxes.
164

RATE MATTERS

The following orders were published by the Commission during 1954 regard ing major matters pertinent to Telephone, Electric, Gas and Transit Utilities in
Georgia:

Date of

Docket

Name of U tility

0rder

Number

TELEPHONE
Union Point Telephone Company ----- -- ----- --'M------ --- 1-20-54 N. D. Arnold Telephone Company --- ------------------------------ 2- 3-54 Cairo Telephone Com pany------ ----------------------------------- 2- 3-54 Chatsworth Telephone Company -------------- ------------------- - 3- 8-54 Georgia Telephone Association
(On behalf of certain independent telephone companies) -- 3-26-54 Ringgold Telephone Company ------------------------------------- 3-31-54 Broxton Telephone Company _ _ --------- ----------------------- 4- 5 54 L. and B. Telephone Company -- -------- -- -------------------- 5- 4-54 Bulloch County Rural Tel. Cooperative------ -------- ---------- 5-31-54 Trenton Telephone Com pany------------ ------------------- -------- 7- 1-54 Uvalda Telephone C om pany------------- -------- ---------- ------- 9-17-54 Southeastern Telephone Company------------------------- --------10- 4-54 Utelwico, In c .---------------------------------------------------------- (.10-14-54 Standard Telephone Company -------2---------------------------- 11-24-54 Wilkinson County Telephone Company --.---- --------------------12-15-54 South Georgia Telephone Company ------ |-- _ -- ---------12-14-54 Pembroke Telephone Company ------------------r----;-- "..12-20-54

607- U 576-U 602- U 608- U
644-U 640-U 603- U 624-U 652-U 655-U 696-U 630-U 685-U 674-U 719-U 705-U 724-U

GAS

Atlanta Gas Light Company

----1--- -:-- 3- 9-54

Atlanta Gas Light Company _ ._.T----- -- ~-------------------.11-15-54

Gas Light Company of Columbus -- ------ ------------------ ----11-30-54

TR A N S IT Savannah Transit Company -------------------;------- --------------11- 4-54

622-U 641-U 727-U
706-U

LOAN AND SECU R ITY M ATTERS

TELEPH O N E

Date of

Name of Utility

Order

Wilkes Tel. and Electric Company --------------

1-20-54

Western Carolina Telephone Company -- !--.----- ------- 3- 8-54

L. and B. Telephone Company----; '' ,

---- H" "--

Public Service Telephone Company -----------

4-54 5-28-54

Bulloch County Rural Telephone Cooperative---------------------- 5-31-54

Docket
Number 615-U 631-U
625-U 560-U 651-U

165

Georgia Continental Telephone Company _______________ 7- 1-54

Trenton Telephone Company____ ___________ ^ ______:__ 7. 1.54

Southeastern Telephone Company_____ ____________

7-20-54

Walker County Telephone Company____________________ g_ 3.54

Ellijay Telephone Company _____________ _____________ io_ 4.54

Wilkes Telephone and Electric Company 1_____________ 10- 4-54

Utelwico, In c .----------- ------------------ ---------- ----------:---------10-14-54

Standard Telephone C om pany______________________ ,,--.11-24-54

Standard Telephone Company ___..._____________________ 11-24-54

Georgia Continental Telephone Company___;______________ 11-29-54

Wilkinson County Telephone Company _____ ;__________ 12-15-54

Pembroke Telephone Company _________

12-20-54

665-U 654-1]
672-U 668-U 666-11 695-U 684-IJ 701-U
702-U 725-U 718-U 723-U

ELECTRIC
Savannah Electric and Power Company_______ __________ 5. 4.54 Georgia Power and Light Company_____________________ 7-15-54 Georgia Power Company_____________________________ 9. 9.54 Savannah Electric and Power Company_____ ___________ 9-29-54

647-U
667-IJ 688-TJ
691-U

GAS

Gas Light Company of Columbus --_____________________ 10- 4.54

Mid-Georgia Natural Gas Company ___

12-20-54

None 708-U

TRANSIT UTILITIES
Atlanta Transit S ystem ______________ ._________________ 5-12-54 Atlanta Transit System --------------------------- '___ ____ ____ __ 6-17-54 Savannah Transit Company _____ ____________ .________12-15-54

648-U None 728-U

OTHER MATTERS

Telephone, Electric, Gas and Transit.

Name of Utility

Type of

.. Ellijay Telephone Company Georgia Power Company Uvalda Telephone Company Blue Ridge Telephone Company
Utilities - General

Order Rule Nisi Fuel Adjustment Rule Nisi Rule Nisi
Competitive Bidding
for Security Issues

Date of Order
4-16-54 7-28-54 9- 1.54 9-28-54
10- 4-54

Respectfully submitted,
Matt L. McWhorter, Chairman Allen Chappell, Vice Chairman Walter R. McDonald, Commissioner James A. Perry, Commissioner Crawford L. Pilcher, Commissioner

Docket Number
656-U 466-U 696-U 699-U
None

166

83rd REPORT OF
GEORGIA PUBLIC SERVICE
COMMISSION 1955
167

83RD REPORT OF GEORGIA
PU BLIC SER V IC E COMMISSION
TO HIS EXCELLENCY GOVERNOR MARVIN GRIFFIN:
As required by law, the Georgia Public Service Commission submits here with its 83rd Annual Report of the regulatory activities for the year ending December 31, 1955.
There was no change in the personnel or organization of the Commission during the year, Matt L. McWhorter having been re-elected Chairman and Allen Chappell, Vice Chairman, for the two year term beginning August 27, 1955. There has been no change in the Commission's staff, the present personnel and staff of the Commission being as follows:
Matt L. McWhorter, Chairman Allen Chappell, Vice Chairman Walter R. McDonald, Commissioner James A. Perry, Commissioner Crawford L. Pilcher, Commissioner A. O. Randall, Executive Secretary and Legal Aide Mrs. Mae A. Montgomery, Reporter N. Knowles Davis, Chief Engineer Robt. B. Alford, Senior Utilities Engineer James Lansing Rodeker, Utilities Engineer Frank G. Heald, Utilities Auditor David 0. Benson, Transportation Rates Expert J. Fred Parker, Transportation Rates Specialist Leonard Thomas Doyal, Sr., Transportation Rates Assistant Robt. N. Fellows, Accountant
MOTOR CARRIER ENFORCEMENT
Mr. J. Roy Wilson was employed as a Motor Carrier Inspector in January of this year. A. O. Randall, Executive Secretary and Legal Aide of the Com mission, continues in charge of the enforcement section. A brief resume of the history of enforcement of the Motor Carrier Acts will furnish a better picture of the duties of the Commission with respect to enforcement of the Motor Car rier Acts. The jurisdiction of the Georgia Public Service Commission was extended in 1929 to include regulation of motor carriers operating in the trans portation of persons and/or property "for hire." This act was repealed by an act adopted in March 1931 which was likewise in part repealed by the Motor Common Carriers Act enacted in August 1931. These two Acts have been codified as "Motor Contract Carriers" in Chapter 68-5, and "Motor Common Carriers" in Chapter 68-6 in the Code of Georgia in 1933. Before a person can legally engage in the business of transporting property "for hire" either as a Motor Contract Carrier or a Motor Common Carrier he must apply to the Com mission for a certificate of public convenience and necessity, on which a public hearing is held, and at which hearing the applicant must prove a public need for the service sought to be performed. Certificates of public convenience
169

and necessity issued by the Commission are classified as "fixed route cer tificates" and "no fixed route certificatesi In 1951 the General Assembly adopted a law which restricts the Commission from granting- a fixed route certificate over a route served under a previously issued certificate unless it is shown that the existing carrier is not rendering adequate service, and if so shown the carrier must be given an opportunity to remedy such inadequacy before another certificate can be issued over the same route. The Supreme Court held in 1954 that this law only applies to fixed route carriers. (See 82nd Report of the Commission for 1954.)
For the purpose of better enforcement of the Motor Carrier Laws the Com mission has, from time to time, issued Motor Carrier Rules and Safety Regu lations, and has employed Field Inspectors to see that these rules are enforced. These Inspectors are also required to see that the license fees required to be paid by such motor carriers for a Public Service Commission tag on each vehicle operated are collected. They are also required to determine whether or not the vehicle is operated in accordance with the Safety Rules and Regulations of the Commission, and whether or not there are carriers which are operating in viola tion of the law without obtaining certificates of public convenience and neces sity. They are also required to inspect motor vehicles operated by motor car riers operating solely in interstate commerce under the jurisdiction of the Inter state Commerce Commission to see whether or not such carriers have complied with the Georgia law by registering their operation with the Commission and by filing evidence of insurance coverage and properly identifying the equip ment with the Commission's plates or identification numbers. Enforcement of the Motor Carrier Laws applicable to interstate carriers has been greatly fa cilitated with the uniform adherence to the terms of reciprocal agreements en tered into between the Commission and other states. There are approximately 800 of these interstate carriers now registered with the Georgia Public Service Commission, and the majority of these carriers are relieved of paying the license fee of $25.00 under the reciprocity agreements. Nevertheless the revenue col lected by the Commission largely through its Inspectors has continued to in crease Over the years. For the year ending December 31, 1955, $193,870.00 was collected for license fees, and $2,495.00 in certificate fees, making a total of $196,365.00. This is an increase of approximately $75,000.00 over the year 1945, ten years previously.
Holders of intrastate certificates of public convenience and necessity issued by the Commission generally comply with the law and rules of the Commission
failure to do so is cause for cancellation of the certificates; however, it is necessary to maintain constant supervision over the operations of each carrier with regular and periodic inspections being made of all stations, terminals and equipment. Occasionally it is necessary to prosecute persons who operate in violation of the Motor Carrier Acts but as a genei'al rule these operations are found to be caused by ignorance of the law and such violations usually cease with a warning. The most serious and flagrant violations today appear to be through a subterfuge of owner-leased equipment to private carriers. In most cases these operations are contract carrier operations in violation of the law if the true facts could be established. The Commission on October 7, 1955 at tempted to prohibit this type of operation on the part of motor carriers holding certificates from this Commission by adopting the following rule:
170

"The leasing of motor vehicle equipment owned or operated by any motor contract carrier or motor common carrier to any person, firm or corporation other than a duly authorized motor contract carrier or motor common carrier "for hire" is prohibited."
This rule was adopted after the Attorney General rendered an opinion hold ing that such a rule was within the legal authority of the Commission under the Motor Carrier Acts. In the opinion the Attorney General said, "a non certificate holder normally does not engage in the furnishing of services but a certificate holder does, and the opportunity to promiscuously intermingle leases with services may reasonably be expected to invite violations." He further said, "it should be apparent that a leasing transaction by a licensed carrier lends itself to abuse and would be difficult to detect or prevent in a direct sense and that the only feasible way to prevent the prohibited practice is to prohibit the conditions from ever coming into being, which are peculiarly likely to result in abuse."
Mention was made in the last report of pending injunction proceedings in Muscogee Superior Court brought by the Commission against Southeast Ship pers Association, Inc. of Columbus, Georgia, which had not come on for trial at the close of the year. The case was tried in January of this year and Judge T. Hicks Fort granted the petition of the Commission for an injunction. The deci sion was appealed to the Supreme Court by the defendant and on April 12, 1955 the Supreme Court upheld Judge Fort's decision, and we quote a material part of the opinion as follows:
"Under the Motor Carrier Act, no motor carrier can operate without first obtaining from the Georgia Public Service Commission a certificate of public convenience and necessity, pursuant to findings to the effect that the public interest requires such operation. Code, Sec. 68-504. In* the ship ment of the goods of its members from Columbus to Atlanta, the Associa tion receives compensation; and whether the amount so paid by the member is called an "assessment" or a "fee," it is a charge for services rendered. The fact that the Association has no capital stock and is not engaged in making a profit, does not change the relationship between the Association and any of its nfembers in the shipment of merchandise, the relation be tween them being the same as between the Association and a non-member shipping its goods from Atlanta to Columbus, to-wit, that of shipper and carrier. A determination of the question of the legal relationship between the Association and its members is not made from what the charter says, but from what the Association is doing. As to whether the defendant is subject to the Motor Carrier Act, ownership of the commodities transported is not the sole test, but the primary test is whether the transportation is for compensation. The Association occupies the status of a carrier, and in transporting such goods it is not acting as an agent, in the popular sense of the term, of its members. Being engaged in the transporting of goods for compensation, the Association falls squarely within the provisions of the Motor Carrier Act. See Montgomery & Atlanta Motor Freight Lines v. Georgia Public Service Commission, 175 Ga. 826, 166 S.E. 200."
On May 26, 1955, Judge Fort signed an order permanently enjoining and restraining the defendant, Southeast Shippers Association, Inc. from transport-
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ing property over the highways of the state of Georgia for any compensation '* unlcss and until it shall have first obtained a certificate of public convenience and necessity from the Georgia Public Service Commission.
RECIPRO CITY
At a meeting held at Chattanooga, Tennessee, on August 12, 1955, of the Reciprocity Committee of the Ten Southeastern States it was unanimously agreed to draft a proposed revised Eleven-State Agreement to include the State of Indiana and the change in the laws of the various states, and that the revised agreement, when executed by the proper reciprocal authorities of the various states, parties to the agreement, would be entitled the "Eleven State Reciprocal Agreement." (See 79th Report of Commission for reproduction of Ten State Agreement). This meeting also resulted in satisfactory adjustment of numerous misunderstandings which had arisen since the last meeting of the Committee from enforcement practices.
MOTOR CARRIER CERTIFICATE HEARINGS
During the year the Commission conducted 437 public hearings, a large percentage of which related to Motor Carrier Enforcement. In previous reports for want of space we have only listed or made mention of the more important motor carrier cases. For the first time we are listing in abbreviated form in chronological order all of the formal motor carrier certificate cases disposed of during the year, as follows:
DOCKET NO. 748-M--Approved on January 4, 1955, reinstatement of applica tion of Lamar Beaty Trucking Co., Moultrie, Georgia, for Class "B" Cer tificate.
DOCKET NO. 792-M--Approved on January 19, 1955, order altering Class "B" Certificate No. 1834 issued to James M. Burgess, Hogansville, Ga. (Note: This action result of denial of application to transfer certificate to Haynes Moving & Storage Co.--See 82nd Report of Commission).
DOCKET NO. 793-M--Approved on January 19, 1955, application of Harry Ben nett Construction Co., Alma, Georgia, for Class "E" Certificate to transport property under contract with American Telephone & Telegraph Co, and Satilla R. E. A. Membership Corp.
DOCKET NO. 794-M--Approved on January 19, 1955, application of Petroleum Carrier Corporation for Class "B" Certificate to transport Pine Oil in tank trucks.
DOCKET NO. 795-M--Approved on January 19, 1955, transfer of Class "B" Certificate No. 263 from H. A. Adams, Athens, Georgia to R. E. Adams, Gainesville, Ga.
DOCKET NO. 796-M--Approved on January 19, 1955, transfer of Class "B" Cer tificate No. 2979 from Calvin Garrett to W. H. Ellison, Toccoa, Georgia.
iPOCKET NO. 785-M--Approved on January 27, 1955, application of Benton Rapid Express to amend Class "A" Certificate No. 2745 to remove restri-
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tion against handling traffic between Atlanta, Georgia and Army Depot at Conley and Robins Air Force Base at Warner Robins.
DOCKET NO. 788-M--Dismissed on January 27, 1955, for want of prosecution application of B. T. Morgan, College Park, Georgia for Class "B" Certificate.
DOCKET NO. 800-M--Approved January 27, 1955, application of Lakeview Bus Co., Rossville, Georgia, for transfer of Class "A" Certificate No. 2486 from Douglas Bus Co.
DOCKET NO. 801-M--Approved on January 27, 1955, application of Lakeview Bus Co., Rossville, Ga. for new Class "A" Certificate to operate between Rossville, Georgia and Oler's Store.
DOCKET NO. 802-M--Approved on January 27, 1955, application of Cartersville City Bus for Class "A" Certificate to operate between Cartersville and Atco, Georgia.
DOCKET NO. 803-M--Approved January 27, 1955, transfer of Class "B" Cer tificate No. 2377 from Arco Storage & Drayage Co., Savannah, Georgia to Suddath of Savannah, Inc. owned and controlled by Suddath Moving & Storage Co.
DOCKET NO. 804-M--Approved on January 27, 1955, application of Liquid Car riers, Inc., Bay Minette, Alabama, for amendment of Class "B" Certificate No. 3013 to authorize transportation of liquid sodium silicate.
DOCKET NO. 798-M--Approved on February 9, 1955, application of Refrigerated Transport Company, Inc., for amendment of Class "B" Certificate No. 2238 to authorize the transportation of Chocolate candy in addition to other com modities and to handle less than truck load shipments.
DOCKET NO. 799-M--Approved on February 9, 1955, amendment of Class "E" Certificate to substitute Ludlow Mfg. & Sales Co. as a contract customer in lieu of Mente & Co.
DOCKET NO. 806-M--Approved on February 9, 1955, application of Harper Motor Lines, Elberton, Ga., for amendment of Class "A" Certificate No. 110 to serve the U. S. Army Supply Depot at Conley, Georgia, as an offroute point.
DOCKET NO. 807-- Approved on February 9, 1955, application of Caudell Trans fer Co. for amendment of Class "B" Certificate No. 3032 to authorize the transportation of chocolate candy and oleomargarine in addition to other commodities.
DOCKET NO. 808-M--Denied on February 9, 1955, application of C. & L. Truck ing Co., Macon, Ga. for amendment of Class "E " Certificate No. 3011 by adding thereto Robert Gair Co., Inc., as a contract customer.
DOCKET NO. 809-M--Approved on February 9, 1955, application of M. J. Estroff, Louisville, Georgia, for Class "B" Certificate to transport kerosene and fuel oil from Savannah and Macon, Georgia, on the one hand to Louis ville, Georgia and points in Jefferson County, Georgia, on the other hand, over no fixed route.
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DOCKET NO. 810-M--Approved on February 9, 1955, application of Petroleum Carrier Corporation. for Class "B" Certificate to transport liquid sodium silicate and liquid sulphate aluminum in tank trucks between all points in Georgia over no fixed route.
DOCKET NO. 788-M--Denied on February 24, 1955, application of Morgan Truck Line, College Park, Georgia, to transport iron and steel pipe.
DOCKET NO. 814-M--Approved on February 24, 1955, application of Dahlonega Freight Line for Class "A" Certificate to transport property between Dahlonega, and Gainesville, Georgia. (Note: This decision was sustained by the Supreme Court on appeal by Atlanta Motor Lines, Protestant).
DOCKET NO. 815-M--Approved on February 24, 1955, application of W. B. Dorn and L. B. McCrary to acquire capital stock, control and management of Augusta Interurban Bus Line, Inc.
DOCKET NO. 756-M--Approved on March 8, 1955, application for extension of route in Class "A" Certificate No. 2573 issued to Interurban Transit Lines,
' Inc:, Atlanta, Georgia.
DOCKET NO. 822-M---Approved on March 8, 1955, transfer of Class "A" Cer tificate No. 2573 from Interurban Transit Lines, Inc. to Metropolitan Transit System, Inc., Atlanta, Ga.
DOCKET NO. 819-M----- Approved on March 8, 1955, application of Metropoli tan Transit System, Inc., Atlanta, Ga. for Class i(A" Certificate for the transportation of passengers between Atlanta and the Medlock Road area.
DOCKET NO. 812-M--Denied on March 8, 1955, application of Cook Truck Line, Albany, Georgia, for amendment of Class "B" Certificate No. 2993 for authority to transport roofing from Savannah, Georgia.
DOCKET NO. 813-M--Approved on March 8, 1955, application of Carl Jackson Jordan, Lafayette, Georgia, for amendment of Class "E" Certificate No. 2774 to authorize the transportation of clay and latex for the account of the General Latex Company.
DOCKET NO. 816-M--Dismissed on March 8, 1955, rule nisi issued against Moffett Transit Lines, Brown Transport Corp., Harper Motor Lines and Georgia Highway Express, Inc. to show cause why adequate and dependable service should not be provided on shipments destined to and from Warner Robins, Georgia.
DOCKET NO. 817-M--Approved on March 8, 1955, transfer of Class "B" Certifi cate No. 1701 from J. C. McCarley to McCarley Moving & Storage Co., Inc., Columbus, Georgia.
DOCKET NO. 818-M--Approved on March 8, 1955, application of Petroleum Carrier Corporation for Class "B" Certificate to transport alcohol, benzine, toluene, xylene, and acetone in tank trucks between all points in Georgia.
DOCKET NO. 821-M----- Approved on March 8, 1955, application of A. L. Sisson
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& Son, Smyrna, Georgia, for Class "B" Certificate to transport heavy ma chinery between all points in Georgia over no fixed route.

DOCKET NO. 820-M--Approved on March 23, 1955, application of Terrell Motor Company, Bainbridge, Georgia, for Class "B" Certificate for the transpor tation of commodities listed under Rule 8 originating at or destined to points in Decatur County, on the one hand, and between all points in Georgia, on the other hand, over no fixed route, with return shipments of frozen
vegetable and frozen fish.

DOCKET NO. 805-M--Dismissed on March 23, 1955, rule nisi against R. & S. Motor Line, for failure to register and license equipment and for failure to file monthly and annual revenue and expense reports.

DOCKET NO. 830-M--Approved on March 23, 1955, application for transfer of Class "B" Certificate No. 670 from J. B. Stroud, dba R & S Motor Line, toC. P. Brown, dba R. & S. Motor Line, Waynesboro, Ga.

DOCKET NO. 831-M--Approved on March 23, 1955, order permitting Brown Transport Cprp., Waynesboro, Georgia, to become a self-insurer in lieu of furnishing Motor Carrier C.O.D. Bond.

DOCKET NO. 823-M--Dismissed on March 23, 1955, rule nisi against Robert Burke, Millen, Georgia, to show cause why Class "B" Certificate No. 1543
should not be cancelled and revoked.

DOCKET NO. 824-M--Approved on March 23, 1955, application of Hammock

Transfer Company, Savannah, Georgia, for amendment of Class "B" Cer

tificate No. 2734 to authorize the transportation of appliances and new and

used household goods from Savannah to points within fifty miles of Sa

vannah, Ga.

j i

DOCKET NO. 825-M--Approved on March 23, 1955, application of Ida Cason Callaway Foundation, Hamilton, Georgia, for Class "B" Certificate for the transportation of passengers between Ida Cason Callaway Gardens, Chipley, Georgia, and points within 25 miles thereof, over no fixed route.

DOCKET NO. 826-M--Approved on March 23, 1955, transfer of Class "A" Certificates Nos. 130 and 2730 from Robert Osborne and M. F. Hicks, dba Hunt Freight Line to Hunt Freight Line, Inc., Chattanooga, Tennessee.

DOCKET NO. 827-M--Approved March 23, 1955, application of James J. Gambrell, Augusta, Georgia, for Class "B" Certificate to transport house trailers to and from Augusta, Georgia, on the one hand, and all points in Georgia, on the other hand, over no fixed route.
DOCKET NO. 828-M--Approved on March 23, 1955, transfer of Class "B" Certi ficate No. 2968 from Jimmie H. Ayers, Inc., Marietta, Georgia to State Transfer Company, Atlanta, Georgia.
DOCKET NO. 829-M--Approved on March 23, 1955, issuance of Class "E" Certificate to Scott Transfer Company, Atlanta, Georgia, for the transpor tation of property for the account of C. B. Ponder Company between points in Georgia North of U. S. Highway 80.

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DOCKET NO. 832-M--Approved on May 4, 1955, issuance of Class "A" Certifi cate to Benton Rapid Express to transport property between Round Oak and Juliette, Georgia.
DOCKET NO. 833-M--Approved on May 4, 1955, application of Jeff D. Loftin and Grady C. Loftin, of Dothan, Alabama, and Charles Taylor, Columbus, Georgia to acquire majority of capital stock, control and management of Hi-way Transport, Inc. from Henry I. Fedderwitz, Henrietta E. Fedderwitz and Melvin N. Neese, Savannah, Georgia.
DOCKET NO. 834-M--Approved on May 4, 1955, application of Joe D. Benton, Colbert, Georgia for Class "B" Certificate to transport cotton, fertilizer, brick, seed and feed between all points within 100 miles of Colbert over no fixed route.
DOCKET NO. 841-M--Approved on May 19, 1955, application of Petroleum Car rier Corporation for Class "B" Certificate to transport sulphuric acid in tank trucks between all points in Georgia, over no fixed route.
DOCKET NO. 838-M--Dismissed on May 25, 1955, for failure to license equip ment rules nisi against Cook Transfer Co., Cutter's, Inc., Frank X. Hald, Inc., L. N. Hooks, Jones Trucking Co., King's Van & Storage, Inc. and James A. Wimberly. Cancelled Class "B" Certificate No. 2108 issued to J. E. Gary Transfer.
DOCKET NO. 840-M--Approved on May 25, 1955, issuance of Class "B" Cer tificate to Candler Grain & Feed Co., Metter, Ga., to transport agricultural products and forest products to and from Metter and points within 250 miles of Metter, over no fixed route.
DOCKET NO. 842-M--Approved on May 25, 1955, issuance Class "E" Certificate to Tanner-Brice Co., Inc., Vidalia, Georgia to transport property for account of Piggly Wiggly Sims Stores, Inc. and Georgia Sales Co. as contract customers.
DOCKET NO. 836-M--Approved on June 1, 1955, issuance Class "B" Certificate to Summerford Truck Line, Ashford, Ala. to transport baled cotton and peanuts in shell to and from points within 100 miles of Donalsonville, Ga., on the one hand, and all points in Georgia, on the other, over no fixed route.
DOCKET NO. 846-M--Approved on June 1, 1955, issuance Class "B" Certificate to Murray Moving Service, Macon, Ga. to transport household goods between points within 100 miles of Macon over no fixed route.
DOCKET NO. 838-M--Cancelled on June 1, 1955, Class "B" Certificates issued to T. F. Chasrteen Transfer, Chauncy, Ga., and Pollard and Woods Transfer, Carrollton, Georgia, under show cause orders.
DOCKET NO. 845-M--Approved on June 16, 1955, issuance Class "B" Certificate to Dealers Transit, Inc., Chicago, 111. to transport motor vehicles by driveaway and truckaway between all points in Georgia, except to and from Hapeville, Georgia and the Ford Motor Co., over no fixed route.
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DOCKET NO. 847-M--Approved on June 16, 1955, withdrawal of application of Earl I. Ivey, Wrightsville, Georgia, for Class "B" Certificate.
DOCKET NO. 848-M--Approved on June 16, 1955, withdrawal of application of Bryant Ivey, Wrightsville, Georgia for Class "B" Certificate.
DOCKET NO. 849-M--Approved on June 16, 1955, withdrawal of application of R. G. Price, Wrightsville, Georgia, for Class "B" Certificate.
DOCKET NO. 851-M--Approved on June 16, 1955, amendment Class "B" Cer tificate No. 2404 issued to James W. Massey, Albany, Ga., extending oper ating authority as to specified commodities.
DOCKET NO. 854-M--Approved on June 16, 1955, issuance Class "B" Certificate to Jack Jordan, Inc., Dalton, Ga. to authorize transportation of brick, sand, gravel and crushed stone, fertilizer, clay and latex to and from various named points over no fixed routes.
DOCKET NO. 855-M--Denied on July 5, 1955, application of Butler Trucking Co., Milledgeville, Georgia for amendment Class "B" Certificate No. 349 for extension of operating authority.
DOCKET NO. 857-M--Approved on July 5, 1955, amendment Class "A" Certifi cate No. 2875 issued Central of Georgia Motor Transport Co., Savannah, Ga., for an alternate route between Millen and Statesboro, Georgia, via Rocky Ford and Dover, and between Macon and Milledgeville, via McIntyre and Gordon, Ga.
DOCKET NO. 551-M--Reconsidered on July 12, 1955, previous approval of transfer of all Class "A" Certificates from Atlanta Columbus Albany Mo tor Lines to McLean Trucking Co. and approved transfer of said certificates to Empire State Express, Inc., Columbus, Ga.
DOCKET NO. 856-M--Approved on July 12, 1955, amendment Class "A" Cer tificate No. 109 issued to Georgia Highway Express, Inc. to authorize service to Sugar Valley, Georgia and Tennga, Ga. as off-route points.
DOCKET NO. 861-M--Approved on July 12, 1955, amendment Class "E" Certifi cate No. 3018 issued Dixie Hauling Co. to authorize transportation of vermiculite insulating material for account of Southern Zonolite Co., Atlanta, Ga.
DOCKET NO. 864-M--Approved on July 12, 1955, application of M. J. Baggett to acquire majority stock, control and management in Walker Hauling Co. from J. B. Carson.
DOCKET NO. 862-M--Approved on August 2, 1955, transfer of Class "B" Cer tificate No. 2091 from A. R. Hattaway, Dublin, Ga. to Summerford Truck Line, Ashford, Alabama.
DOCKET NO. 865-M--Approved on August 2, 1955, application of James W. Hamilton to acquire all capital stock, control and management of Consoli dated Van & Storage Companies, Inc., Atlanta, Ga.
DOCKET NO. 866-M--Approved on August 2, 1955, application of Carl A.
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Hamburger to acquire all capital stock, control and management of Beck Motor Lines, Inc., Albany, Ga,
DCKET N . 868-M--Approved on August 2, 1955, issuance of Class "A" Cer tificate to Atlanta Motor Lines, Inc. to operate between Dahlonega, Georgia and the Georgia-North Carolina State Line, via Neels Gap and Blairsville, Georgia.
DOCKET NO. 869-M--Approved on August 2, 1955, application of Atlanta Motor Lines, Inc. for amendment of its Class "A" Certificate to authorize extension of operations over highways 120 and 140 between Marietta and Canton, Highway No. 20 between Cumming and Canton, and Highway 53 between Dawsonville and Tate, and Highways 183 and 52 between Dawsonville and Ellijay.
DOCKET NO. 871-M--Approved on August 2, 1955, transfer of Class "B" Cer tificate No. 2430 from Olan A. Burke to Robert S. Peed, Warner Robins, Ga.
DOCKET NO; 873-M-_Appr ved on August 2, 1955, issuance of Limited Class , A Certificate to Simpson Trucking Company, Atlanta, Ga. to authorize transportation of combustion engines only between Atlanta and Lockheed Aircraft Corporation.
DOCKET NO. 874-M--Approved on August 2, 1955, issuance of Class "E " Cer tificate to F. H. Wright Co., Macon, Georgia, to authorize the transporta tion of brick between points in Georgia for the account of Cherokee Brick Co.
DOCKET NO 747-M---Approved on August 2, 1955, withdrawal of application of Walker Hauling Company, Atlanta, Georgia, for Class "B" Certificate to transport liquid chemicals in tank trucks.
DOCKET NO 761-M--Approved on August 2, 1955, withdrawal of application of Cement Carriers, Inc., Savannah, Georgia, for Class "B" Certificate for the transportation of dry cement and mortar mix.
DOCKET NO. 839-M--Approved on August 4, 1955, issuance of Class "A" Cer tificate to Great Southern Trucking Company to operate between Junction Highways 50 and 257 and Macon, Georgia, via Cordele, Vienna and Perry serving no intermediate points, and without the right to handle traffic origi nating at or destined to Albany, Georga.
DOCKET NO 858-M--Approved on August 4, 1955, transfer of Class "A" Cer tificates Nos. 1262, 1596, 1339, 2903 and a portion 2786 from White Truck Lines, Inc. to Harper Motor Lines, Elberton, Georgia.
DOCKET NO. 870-M-Denied on August 4, 1955, application of Atlanta Cartage Company for Class B Certificate to transport household goods.
DOCKET NO. 870-M-Approved on August 16, 1955, rehearing on application of Atlanta Cartage Company, Atlanta, Georgia, for Class "B" Certificate to transport household goods.
DOCKET NO. 872-M Approved on September 19, 1955, issuance of Class "A" Certificate to Pike Transfer Company, Newnan, Georgia to operate between

the plants of International Latex Corporation at Newnan and Manchester, Georgia, with closed doors at all intermediate points.
DOCKET NO. 863-M--Approved on September 19, 1955, withdrawal of applica tion by Kenosha Auto Transportation Corporation for Class "E" Certificate to transport motor vehicles for account of American Motors Corporation.
DOCKET NO. 870-M--Approved on September 19, 1955, issuance of Class "B" Certificate to Atlanta Cartage Company, Atlanta, Georgia for transporta tion of household, kitchen and office furniture to and from Atlanta, Georgia and points within 100 miles of Atlanta, over no fixed route.
DOCKET NO. 875-M---Approved on September 19, 1955, amendment of Class "B" Certificate No. 3063 issued to Jack Jordan, Inc., Dalton, Ga. to transport concrete blocks from points in Whitfield County to points within 100 miles thereof.
DOCKET NO. 878-M--Approved on September 19, 1955, application of Earl T. Ivey, Wrightsville, Georgia, for Class " B" Certificate to transport crushed
' stone and sand in dump trucks between points within 100 miles of Wrights ville.
DOCKET NO. 879-M--Approved on September 19, 1955, application of R. G. Price, Wrightsville, Georgia, for Class "B" Certificate to transport crushed stone and sand in dump trucks between points within 100 miles of Wrights ville.
DOCKET NO. 880-M---Approved on September 19, 1955, issuance of Class "A" Certificate to Great Southern Trucking Company between Atlanta and Waycross, Georgia, via U. S. 23, with closed doors at all intermediate points.
DOCKET NO. 881-M--Approved on September 19, 1955, issuance of Class "A" Certificate to Great Southern Trucking Company to transport property bet ween Griffin and Forsyth, via Barnesville; and between Barnesville and Eastman, Georgia, via U. S. 341, with closed doors at all intermediate points.
DOCKET NO. 882-M--Approved on September 19, 1955, issuance of Class "A" Certificate to Great Southern Trucking Company to transport property be tween Valdosta, Georgia and Junction State Highways 33 and 122; also be tween Morven, Georgia and Junction State Highways Nos. 94 and 33.
DOCKET NO. 883-M--Approved on September 19, 1955, amendment Class "A" Certificate 2532 issued to Great Southern Trucking Company to operate into Pelham, over State Highway No. 93, as an off-route point.
DOCKET NO. 885-M---Approved on September 19, 1955, issuance of Class "A" Certificate to Metropolitan Transit System, Inc., Atlanta, Georgia, to trans port passengers between Atlanta and Leafmore Hills Subdivision in DeKalb County.
DOCKET NO. 887-M--Approved on September 19, 1955, issuance of Class "B" Certificate to Cecil D. Smith, Warrenton, Georgia, to transport sand, gravel and allied products between points within 100 miles of Warrenton.
DOCKET NO. 890-M--Approved on September 19, 1955, issuance of Class "B"
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Certificate to E. D. Towson, Ocilla, Georgia, to transport lumber from points south of U. S. 80 to all points in Georgia.
DOCKET NO. 891-M--Approved on September 19, 1955, issuance of Class "B" Certificate to J. D. Lewis, Arabi, Georgia, to transport lumber between Cordele, Georgia, and points within 100 miles of Cordele, Georgia.
DOCKET NO. 892-M--Approved on September 19, 1955, issuance of Class "B" Certificate to J E. Lee, Ocilla, Georgia, to transport lumber from points South of U. S. Highway 80 to all points in Georgia.
DOCKET NO>. 850-M--Approved on October 7, 1955, application Geo. C. Murdock freig h t Line, Inc., Dalton, Ga. to amend Class "A" Certificate No. 2790 to authorize pick-up and delivery service to all points within ten miles of Dalton, Georgia except Tunnell Hill and Sugar Valley, Georgia.
DOCKET NO. 853-M--Approved on October 7, 1955, issuance of Class "E" Cer tificate to Real Driveaway Company, Cleveland, Ohio, to transport motor vehicles for account of Holan Thriftline Corporation, Griffin, Georgia
DOCKET NO. 884-M--Approved on October 7, 1955, issuance of Class "B" Certificate to Kite Trucking Company, Columbus, Georgia, to transport lumber between Columbus, Georgia and points within 100 miles of Columbus over no fixed route.
DOCKET NO. 888-M--Approved on October 7, 1955, issuance of Class "B" Certificate to Roy Andrews Transfer, Sparta, Georgia, to transport specified commodities under Rule 8 between points in Hancock County and points with in 100 miles thereof.
DOCKET NO. 894-M--Approved on October 7, 1955, application of Walker Hauling Company, Atlanta, Ga., to amend Class "B" Certificate 2583 to authorize the transportation of petroleum products in bulk in tank trucks between all points in Georgia, over no fixed route, in lieu of the authority previously contained in said certificate.
DOCKET NO. 895-M--Approved on October 7, 1955, application of Petroleum Carrier Corporation, Jacksonville, Florida, to amend Class "B" Certificate No. 2758 to authorize the transportation of petroleum products in bulk in tank trucks between all points in Georgia over no fixed route, in lieu of the authority contained in said certificate.
DOCKET NO. 899-M--Approved on October 7, 1955, withdrawal by Petroleum Carrier Corporation of application for Class "B" Certificate to transport petroleum products from Douglasville, Georgia to points in Georgia.
DOCKET NO. 896-M--Approved on October 7, 1955, amendment to Class "B" Certificate No.`2661 issued to Associated Petroleum Carriers, Inc., Spartan burg, S. C., to authorize the transportation of petroleum products in bulk in tank trucks between all points in Georgia, over no fixed route, in lieu of the authority previously contained in said certificate.
DOCKET NO. 897-M--Approved on October 7, 1955, amendment of Class "B" Certificate No. 2981 issued to White & Kersey Transfer, Swainsboro, Geor-
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gia, to authorize the transportation of lumber, roofing, brick, cement, gravel, sand, blocks, pipe, tile and plumbing fixtures, to and from Swainsboro, Georgia, and points within 100 miles thereof.
DOCKET NO. 898-M--Approved on October 7, 1955, lease of Class "A" Cer tificate No. 18 from Ingram Bus Line, Tallassee, Alabama to Gus J. Wil liams, LaGrange, Georgia.
DOCKET NO. 902-M--Approved on October 7, 1955, issuance of Class "B" Cer tificate to J. L. Brindle, Ramhurst, Georgia, to transport lumber, blocks, brickette, slag or cinders or Portland cement, between Chatsworth and Cohutta, Georgia, on the one hand, and points within 100 miles thereof on the other hand.
DOCKET NO. 876-M--Approved on October 7, 1955, amendment to Class "BM Certificate No. 2712 issued to Davis Transport Company, Augusta, Georgia, to transport asphalt and fuel oil between Douglasville, Georgia and all points in Georgia.
DOCKET NO. 889-M--Approved on October 7, 1955, issuance of Class "B" Cer tificate to Smith Transfer Company, Inc., East Point, Georgia, to transport kerosene and fuel oils in tank trucks between Douglasville, Georgia and all points in Georgia.
DOCKET NO. 844-M--Approved on October 7, 1955, amendment of Rule 25(c) of the General Motor Carrier Rules and Regulations by adding thereto (c-1) reading as follows: The leasing of motor vehicle equipment owned or oper ated by any motor contract carrier or motor common carrier to any person, firm or corporation, other than a duly authorized motor contract carrier or motor common carrier for hire is prohibited.
DOCKET NO. 886-M--Denied on October 20, 1955, application of Fogarty Brothers Transfer, Inc., Tampa, Florida, for transfer of Class "B" Cer tificate No. 417 from Security Storage Company, Savannah, Georgia.
DOCKET NO. 901-M--Approved on October 20, 1955, issuance of Class "B" Certificate to Joiner Transfer Company, Waycross, Georgia, for authority to transport household goods between Waycross, Georgia, on the one hand, and all points in Georgia, on the other hand, over no fixed route.
DOCKET NO. 903-M:--Approved on October 20, 1955, transfer of Class "B" Certificate No. 271 from Dennis Payne, Calhoun, Georgia, to Richmond Transfer & Storage Company, Atlanta, Georgia, on condition that said certificate be amended, and issued for the transportation of household, kitchen and office furniture and store fixtures between all points within the highway mileage radius of 20 miles of Atlanta, Georgia, over no fixed route.
DOCKET NO. 904-M--Dismissed on October 20, 1955, for want of prosecution application of J. E. Gary Transfer, Commerce, Georgia, for reconsideration of the Commission's order of May 25, 1955, cancelling Class "B" Certificate No. 2108.
DOCKET NO. 907-M--Approved on October 20, 1955, issuance of Class "B"
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Certificate to C.. C. Truck Line, Carrollton, Georgia, to transport latex from Carrollton, Georgia, to all points in Georgia, and ground marble in bags from points in Bartow County to Carrollton, Georgia.
DOCKET NO. 908-M- Approved on October 20, 1955, issuance of Class "A" Certificate to Metropolitan Transit System, Inc., Atlanta, Ga., to transport passengers between Atlanta and Junction of Garmon Road and Northside Drive in Fulton County,
DOCKET NO. 909-M--Approved on October 20, 1955, issuance of Class "B" Cer tificate to R. H. Flowers Trucking Company, Savannah, Georgia, to transport timber, poles, tilings, cross ties, between points within 150 miles of Savannah, Georgia for account of Atlantic Creosoting Company, Savannah, Ga.
DOCKET NO. 910-M--Approved on October 20, 1955, issuance of Class "A" Cer tificate to Atlanta-Macon Motor Express, Inc., Jackson, Georgia, to trans port property between Atlanta and Lockheed Aircraft Corporation, without handling shipments originating or destined at Atlanta, Georgia, or for inter change in Atlanta.
DOCKET NO. 911-M--Approved on October 20, 1955, issuance of Class "B" Cer tificate to Maxwell's, Inc., Lexington, Georgia, to transport fresh and frozen poultry between designated points, and sugar, sheet rock and roofing from Savannah to points within 25 miles of Lexington, over no fixed route.
DOCKET NO. 900-M--Approved on November 7, 1955, withdrawal of application for Class "B" Certificate by Glenn H. Mutimer, Covington, Ga.
DOCKET NO. 905-M--Approved on November 7, 1955, issuance of Class "B" Certificate to Jack F. Jones, Eastman, Georgia, to transport sand, gravel, crushed stone, lime, cement, blocks, lumber, roofing and agricultural prod ucts to and from Eastman and points within 100 miles of Eastman, and household goods within 25 miles of Eastman.
DOCKET NO. 906-M--Approved on November 7, 1955, issuance of Class "B" Cer tificate to Veterans Cab Company, Calhoun, Georgia, to transport passengers between points within six miles of Calhoun, over no fixed route.
DOCKET NO. 914-M--Approved on November 7, 1955, issuance of Class "B" Certificate to S. A. Wheeler, Sr., Soperton, Georgia, to transport lumber, cotton, seed, agricultural products and fertilizer, to and from points in Truetlen County and all points in Georgia, over no fixed route.
DOCKET NO. 917-M--Approved on November 7, 1955, transfer of Class "B" Cer tificate No. 1675 from Clark's Transfer Service to Flanigan The Moving Man, Inc., Atlanta, Ga.
DOCKET NO. 918-M--Approved on November 7, 1955, transfer of Class "A" Certificate No. 2655 and Class "B" Certificate No. 2740 from J. Milton Zellner tokJ. N. Zellner & Son Transfer Co., a Corporation, East Point, Ga.
DOCKET NO. 919-M--Approved on November 7, 1955, transfer of Class "B" Certificate No. 3054 from Terrell Motor & Supply Co. to Hunt Transfer Co., Bainbridge, Ga.
182

DOCKET NO, 921-M--Approved on November 7, 1955, issuance of Class "A" Certificate to Lakeland Railway Co.j Lakeland, Ga., to transport property between Lakeland and Naylor, Ga.:
DOCKET NO. 852-M--Dismissed on November 17, 1955, complaint against South eastern Motor Lines, on inadequacy of service between Dalton and Cohutta, Georgia.
DOCKET NO. 912-M--Denied on November 17, 1955, application of Georgia Transporters, Inc., Atlanta, Ga., for Class "B" Certificate to transport Pe troleum Products in tank trucks, between all points in Georgia, over no fixed route
DOCKET NO. 925-M--Approved on November 17, 1955, withdrawal of applica tion for Class "B" Certificate by Wall Service Station, Dawson, Ga.
DOCKET NO. 926-M---Approved on November 17, 1955, issuance of Class "B" Certificate to Rozier Fuel Oil Co., Brunswick, Ga., to transport gasoline, kerosene and fuel oil, from Atlantic Refining Co., Savannah, Ga., to Bruns wick, St. Simons, Sea Island, Kingsland and Darien, Georgia, over no fixed route, and cancelled Class "E" Certificate No. 3020 surrendered by Rozier.
DOCKET NO. 927-M--Approved on November 17, 1955, issuance of Class "B" Certificate to Allen C. Speller, Savannah, Ga., to transport houses between points within 100 miles of Chatham County, over no fixed route.
DOCKET NO. 886-M--Approved on November 17, 1955, rehearing on application of Fogarty Bros. Transfer, Inc. for transfer of Class "B" Certificate No. 472 from Security Storage Co., Savannah, Ga.
DOCKET NO. 915-M--Approved on November 19, 1955, withdrawal of applica tion of Richmond Coach Co. for Class "A" Certificate to transport passengers between Augusta, Georgia and various points in Richmond County, Ga.
DOCKET NO. 916-M--Approved on November 19, 1955, issuance of Class "E" Certificate to Harry M. Callaway, Dalton, Ga., to transport concrete products for the account of C. & S. Block Co.
DOCKET NO. 929-M--Approved on November 19, 1955, amendment of Class "B" Certificate issued to Liquid Carriers, Inc., Bay Minette, Ala., for au thority to transport various liquid cleaning compounds from Cedartown, Georgia to all points in Georgia, over no fixed route.
DOCKET NO. 930-M--Approved on November 19, 1955, amendment of Class "B" Certificate No. 3033 issued to Bird Transport Co., Metter, Ga., for authority to transport bottled gas to and from Metter, Ga., and points within 150 miles of Metter, Ga., over no fixed route.
DOCKET NO. 931-M--Dismissed on November 29, 1955, application of Thrift Transfer Co., Savannah, Ga., for Class "B" Certificate to transport house hold goods between Savannah and points within 100 miles of Savannah, Ga.
DOCKET NO. 932-M--Approved on November 29, 1955, amendment of Class "A" Certificate No. 1111 issued to Benton Rapid Express to authorize operations over State Highway No. 87.
183

DOCKET NO. 933-M--Approved on November 29, 1955, issuance of Class "A" Certificate to Brown Transport Corp. to operate between Atlanta and Macon, Ga., via State Highways 42 and 87, with closed doors at all points except Atlanta and Macon.
DOCKET NO. 934-M--Approved on November 29, 1955, issuance of Class "A" Certificate to Brown Transport Corp., Waynesboro, Ga., to operate between Waynesboro and Warrenton, Ga., via Wrens.
DOCKET NO. 935-M--Approved on November 29, 1955, issuance of Class "A" Certificate to BroWn Transport Corp. to operate between junction highways 26 and 17 and Millen, Georgia, via Eden, Guyton, Oliver and Rocky Ford, Georgia.
DOCKET NO. 922-M--Dismissed on December 15, 1955, show cause order issued against Security Storage Company, Savannah, Georgia.
DOCKET NO. 923-M--Approved on December 15, 1955, transfer of capital stock, control and management from Ryder Truck Rental Systems to Ryder Sys tem, Inc., in Great Southern Trucking Company.
DOCKET NO. 886-M--Approved on December 15, 1955, amendment of Class "B" Certificate No. 472 issued to Security Storage Co., Savannah, Ga., to limit the authority therein to transportation of household goods, and for trans fer of said certificate as amended to Fogarty Bros. Transfer, Inc., Tampa, Florida.
DOCKET NO. 937-M--Approved on December 15, 1955, substitution of applica tion for Class "E" Certificate in lieu of application for Class "B" Certificate by Eastwood Hardware & Builders Supply, Inc., Decatur, Georgia.
DOCKET NO. 910-M--Approved on December 15, 1955, reconsideration of deci sion of October 20, 1955, issuing Class "A" Certificate No. 3078 to AtlantaMacon Motor Express, Inc., to operate between Atlanta and Lockheed Air craft Plant and issued order cancelling said certificate.
DOCKET NO. 939-M--Approved on December 15, 1955, amendment of Class "A" Certificate No. 2908 issued to Rochelle Coach Co., Rochelle, Georgia to operate from Abbeville, Georgia to Warner Robins, Georgia.
DOCKET NO. 940-M--Approved on December 15, 1955, issuance of Class "A" Certificate to Central of Georgia Motor Transport Co., Savannah, Ga., to operate between Atlanta and Newnan, Georgia, subject to restrictions con tained in Commission order of September 12, 1950.
DOCKET NO. 936-M--Approved on December 15, 1955, issuance of Class "B" Certificate to H. W. Oliver Co., Atlanta, Ga., to transport sand, gravel and crushed stone to road construction job sites between all points in Georgia, oyer no fixed route.
DOCKET NO. 942-M--Approved on December 15, 1955, transfer of Class "B" Certificates Nos. 2799 and 3032 from R. E. Caudell, dba Caudell Transfer Co. to Caudell Transfer Company, a Corporation, Atlanta, Ga.
184

TRANSPORTATION

General
During 1955 the Commission disposed of 83 formal proceedings involving transportation rate and service matters. Those docketed proceedings, almost all of which were made the subject of formal written orders, are listed below with indication as to the disposition of each such proceeding. In addition, the Commission during 1955 disposed informally of 357 transportation rate and service matters.

Docket No. 1st Supt. 169-R
2nd Supt. 169-R 187-R
797-M
188-R 192-R

FORMAL CASES FOR YEAR 1955

Date

Subject

Disposition

1-13-55

Petition of certain protestants for rehearing and reconsideration of the Commission's order of De
cember 20, 1954 authorizing the Sandersville Railroad Co. to in stitute condemnation proceedings to acquire certain property lo cated in Washington County

Denied

1-13-55

Application of Sandersville Railroad Co. for authority to institute condemnation proceedings to acquire certain property lo cated in Washington County

Property descrip' tion amended

1-27-55

Application of Louisville and Nashville Railroad Company to dis continue agency service at Eton and substitute caretaker service
in lieu thereof

Approved

1- 27-55

Application of Smoky Mountain Stages, Inc. to increase cash fares to two and one-half cents per mile, to increase commuta tion fares to sixty-six and two thirds per cent of that rate, to increase minimum one way fares to twenty-five cents (25c) and minimum round trip fares to forty-five cents (45c)

Approved

2- 24-55 Application of Seaboard Air Line Denied Railroad Company to discontinue agency service at Louvale

3-10-55 Application of Central of Georgia Approved Railway to discontinue agency service at Oliver

185

193-R 165-R 138- R 139- R 154- R
155- R 191-R
837-M
852-M

3-10-55 Application of Railway Express Approved Agency to close express office at Oliver

3-15-55

Application of Atlantic Coast Line Railroad to discontinue passen ger trains Nos. 57 and 58 be tween Savannah and the Geor gia-Alabama State Line (en route to Montgomery, Ala.)

Approved with requirement for investigation of remaining pas senger service on this route

4-

20-55 Applicationof SouthernRailDweanyied

Company to discontinue agency

service at Towns

4-

20-55 Applicationof RailwayExprDesesnied

Agency to close the express of

fice at Towns

5-

25-55 Application of Central of GeoArgpiparoved upon

Railway to discontinue agency provision of sub

service at Rocky Ford

stituted motor

carrier service

for transporta

tion of LCL

shipments

5-25-55 Application of Railway Express Denied Agency to close the express of fice at Rocky Ford

5-25-55

Application of Atlantic Coast Line Railroad and Southern Railway to increase line-haul switching charge at Brunswick to $5.64 per car

Approved as to Atlantic Coast Line Railroad but denied as to Southern Rail way for want of prosecution

5-25-55 .

Application of Southeastern Grey hound Lines for authority to ad just cash and commuter fares between Atlanta and Marietta (on old Atlanta Northern Lines operation) to same basis as ap plicable between other points in Georgia on Southeastern Grey hound Lines

Approved with re quirement for establishment of additional fare points

6-1-55

Complaint against service render ed by Georgia-Tennessee Coach es, Inc. over State Highways Nos. 71 and 53 to and from Dalton

Carrier required to operate two round trips per day over this route

186

174-R
199-R 201-R 198-R
1st Supt. 131-R 132-R 1st Supt. 174-R
194-R
I

6-8-55

Petition of certain protestants for further public hearing on appli cation of Central of Georgia Railway to discontinue operation of its passenger trains Nos. 17 and 18 between Columbus and
Atlanta

Approved

6-8-55

Application of Southern Railway to discontinue agency service at Rex

Denied with au thority granted for part time service

6-8-55 Application of Railway Express Denied Agency to close express office at
Rex

6-23-55

Application of Southern Railway to discontinue passenger service on its mixed trains Nos. 122-125 and 123-124 between Hawkinsville and Cochran

Approved subject to provisions concerning freight and ex press service

7-5-55 Application of Georgia Southern and Florida Railway to discon tinue agency service at Sparks

Denied with au thority granted to reduce hours of service

7-5-55 Application of Railway Express Denied Agency to close express office
at Sparks

7-5-55

Application of Central of Georgia Railway to discontinue opera tion of its passenger trains Nos. 17 and 18 between Columbus and Atlanta

Denied with pro vision for recon sideration fol lowing five month test pe riod

7-5-55

Application of Central of Georgia Railway to discontinue its pas senger trains Nos. 1 and 2 be tween Savannah and Macon

Approved with provision for in stitution of flag stops at Mar low, Egypt, Halcyondale, Ogeechee, Scarboro and Hern don for trains 3 and 4

187

195-R
200-R 202-R 207-R 144-R 1st Supt. 195-R

7-5-55

Complaint of Penn-Dixie Corp.
against Atlantic Coast Line Rail road, Georgia & Florida Rail
road and Georgia Southern and Florida R a i l w a y concerning rates on cement from Clinchfield to Tifton, Adel and Val dosta

Joint rates prescribed

7-5-55

Application of Southern Railway
to discontinue agency service at Alto

Denied with au thority granted for reduction in hours of service

7-5-55 Application of Railway Express Denied Agency to close express office at Alto

7-5-55

Application of Southern Railway to discontinue agency service at
Suwanee and to remove the de pot building at that point

Approved

7-26-55

Application of Charleston & Wes Approved tern Carolina Railway for au
thority to abandon sidetrack at Lamkin

7-

26-55 Petition of Georgia Southern 1a5nddays' post

Florida Railway for 30 days' ponement ap

postponement of the effective proved

date of the Commission's order

of July 5, 1955 directing publica

tion of joint rates on cement

from Clinchfield to Tifton, Adel

and Valdosta

88451-A-5th Supt. 8873-A-6th Supt. 9574-A-5th Supt.
43-R-llth Supt.

1st Supt.

8-

154-R

4-55 Application of rail carriers Afpoprroved except

elimination of commodity excep- Docket 43-R in

tions on logs and road aggre- crease not ap

gates ordered in connection with proved on logs

the general rate increases au and limited on

thorized in these dockets

road aggregates

4-55 Petition of Central of GeoArgpiparoved Railway for change in effective
date of authority to discontinue agency service at Rocky Ford

188

2nd Supt. 195-R 867-M
222-R 860-M
212-R 213-R 196-R 197-R

8-9-55

Motion of Georgia Southern and Florida Railway for reconsidera tion of the Commission's order of July 5, 1955 directing the pub lication of joint rates on cement from Clinchfield to Tifton, Adel and Valdosta

Assigned for hearing

8-

17-55 Application of Atlantic GreyhoAupnpdroved except

Corporation, Modern Coach Cor denied for At-

poration, Southeastern Grey lanta-Marietta

hound Lines, Southeastern Mo operation of

tor Lines, Inc., Tennessee Coach Southeastern

Company, Inc., Service Coach Greyhound Lines

Line, Inc., and Service Bus Lines,

Inc. to increase minimum one

way fares to 25 cents.

9-

7-55 Petition of Nashville, ChattanoWogitahdrawn

& St. Louis Railway for author

ity to institute condemnation

proceedings for the purpose of

acquiring certain property in

Fulton County

9-

19-55 Application of Class "A" mAotuotrhority grant

carriers of property to increase ed for increase

class rates on shipments of less of 15% on class

than 2000 pounds by 20% and rates and a min

to increase minimum charge to imum charge of



250 cents for distances of 80 $2.50 per ship

miles and less, and 300 cents for ment for dis

distances over 80 miles

tances of 80

miles and less,

and $2.75 for dis

tances over 80

miles

9-22-55 Application of Southern Railway Withdrawn Company to discontinue agency service at Cave Spring
9-22-55 Application of Railway Express Withdrawn Agency to close the express of fice at Cave Spring
9-27-55 Application of Railway Express Denied Agency to close express office at Flovilla
9-27-55 Application of Railway Express Denied Agency to close express office at Juliette

189

867-M 205- R 206- R 216- R 217- R 223-R
226- R
227- R 893-M 2nd Supt. 174-R
218- R

9-

27A-5p5plication of Atlantic Stages* Approved

Inc. to increase minimum one

way fares to 25 cents

10- 7A-5p5plication of Southern Railway Approved Company to discontinue agency service at Towns and remove the depot building at that point

10-7-55 Application of Railway Express Approved Agency to close the express of fice at Towns

10-7-55 Application of Southern Railway Approved to discontinue agency service at Culloden

10-7-55 Application of Railway Express Approved
Agency to close the express office at Culloden

10-7-55

Application of Georgia Southern and Florida Railway Company to discontinue agency service at Howell and to dismantle the de pot building at that point

Approved

10-7-55

Application of Georgia Southern
and Florida Railway , to discon tinue agency service at Lake Park and to dismantle the depot building a t that point

Approved

10-7-55 10-7-55 10-20-55
10-20-55

Application of Railway Express Agency to close the express of fice at Lake Park
Application of Smoky Mountain Stages, Inc. to revise service on its lines in Georgia
Application of Central of Georgia Railway Company for authority to discontinue its passenger trains Nos. 17 and 18 between Columbus and Atlanta and to revise schedule of passenger trains 19 and 20 between the same points
Application of Central of Georgia Railway to discontinue agency service at Cataula

Approved Approved in part Approved
Denied

190

219-R 220-R 221-R 224-R 225-R
Supt. 227-R 913-M
1st Supt. 216-R
217-R

10-20-55 Application of Railway Express Denied Agency to close the express of fice at Cataula

10-20-55 Application of Central of Georgia Denied Railway to discontinue agency service at Luthersville

10-20-55 Application of Railway Express Denied Agency to close the express of
fice at Luthersville

10-20-55

Application of Georgia Southern and Florida Railway to discon tinue agency service at Syca more

Denied

10-21-55

Petition of protestants for recon sideration of the Commission's order of October 7, 1955 author izing discontinuance of agency service at Lake Park

Assigned for oral argument

10-21-55 Petition of protestants for recon sideration of the Commission's order of October 7, 1955 author izing closing of Railway Express office at Lake Park

Assigned for oral argument

10-21-55

Application of Southeastern Grey hound Lines to discontinue its
6:00 A.M. LaFayette-Chattanooga schedule and its 4:30 P.M. Chattanooga-LaFayette sched ule

Approved

10-26-55

Petition of protestants for recon sideration and further hearing on the Commission's order of October 7, 1955 authorizing dis continuance of agency service at Culloden

Further hearing granted

10-26-55

Petition of protestants for recon sideration and further hearing on the Commission's order of October 7, 1955 authorizing closing of express office at Cul
loden

Further hearing granted

19 1

3rd Supt. 195-R
4th Supt, 195-R
203-R 204-R 208- R 209- R 2nd Supt. 216- R Supt. 217- R 231- R 232- R 233- R

11-7-55

Motion of Georgia Southern and Florida Railway for reconsider ation and rescission of the Com mission's order of July 5, 1955 directing publication of joint rates on cement from Clinchfield to Tifton, Adel and Valdosta

Denied

11-16-55

Petition of Georgia Southern and Florida Railway for extension of effective date of the Commis sion's Third Supplemental order of November 7, 1955 directing publication of joint rates on ce ment from Clinchfield to Tifton, Adel and Valdosta

Effective date extended to No vember 28, 1955

11-17-55 Application of rail carriers to can Approved cel Class "P" rating on carload shipments of fullers earth

11-17-55 Application of rail carriers to can Approved cel Class "P" rating on carload shipments of clay

11-17-55 Application of Southern Railway Denied to discontinue agency service at Temple

11-17-55 Application of Railway Express Denied Agency to close the express of fice at Temple

11-17-55

Application of Southern Railway to discontinue agency service at Culloden and to remove the de pot building at that point

Approved

11-17-55 Application of Railway Express Approved Agency to close the express of fice at Culloden

11-17-55 11-17-55

Application of Central of Georgia Railway to discontinue agency service at Georgetown
Application of Central of Georgia Railway to discontinue agency service at Milner

Denied Denied

11-17-55 Application of Railway Express Denied agency to close the express of fice at Milner

192

1st Supt. 199- R 1st Supt. 200- R 12th Supt. 43-R 214- R 215- R 229-- R
230- R 236- R 237- R 238- R 239- R 240- R 241- R

11-28-55

Petition of Southern Railway Com pany for further consideration of its application to discontinue agency service at Rex

Case reopened with require ment for addi tional statistics

11-

28P-5e5tition of Southern Railway Com Case reopened

pany for further consideration with require

of its application to discontinue ment for addi

agency service at Alto

tional statistics

12-

15-A55pplication of rail carriers foi Approved

cancellation of expiration date

of increases authorized in this

docket

12-15-55 Application of Atlantic Coast Line Denied with pro

Railroad to discontinue agency vision for review

service at Hortense

after test period

12-15-55 Application of Railway Express Denied with pro

Agency to close the express of vision for review

fice at Hortense

after test period

12-15-55

Application of Seaboard Air Line Railroad to discontinue agency service at Dacula, to dismantle and remove the station building at that point and to discontinue Dacula as a flag stop for its passenger trains Nos. 11 and 12

Denied with pro vision for review after test period

12-15-55 Application of Railway Express Denied with pro

Agency to close the express of vision for review

fice at Dacula

after test period

12-15-55 Application of Railway Express Denied Agency to close the express of
fice at Meansville

12-15-55 12-15-55 12-15-55

Application of Railway Express Agency to close the express of fice at Musella
Application of Railway Express Agency to close the express of fice at Yatesville
Application of Railway Express Agency to close the express of

Approved Approved Approved

fice at Blythe

12-15-55 Application of Railway Express Denied Agency to close the express of
fice at Shiloh

12-15-55 Application of Georgia Railroad Approved to discontinue agency service at
Stone Mountain

BUS FARES AND SERVICES
On only two bus lines were the fares subjected to general increase during 1955. On January 27th the Commission issued an order authorizing Smoky Mountain Stages, Inc. to increase regular fares between points on its line within the State of Georgia to 2.5 cents per mile, to increase commutation fares to 66-2/3% of that rate (or to approximately 1.67 cents per mile), to increase minimum one-way fares to 25 cents and to increase minimum round trip fares to 45 cents. This bus line, serving an appreciable portion of Northeast Georgia, has operated at a loss for the past five years and the Commission found the increases sought to be necessary if this carrier was to be expected to continue to render adequate service along its routes within the State of Georgia. The increased Georgia fares will be no higher than those already in effect on this line on interstate traffic and on intrastate traffic in surrounding states. It was further noted that due to the necessity for maintaining fares competitive with Atlantic Greyhound Corporation which operates between many of the major points served by Smoky Mountain Stages, Smoky Mountain Stages would not be able to increase its fares in many instances to the level authorized.
The other fare adjustment necessary during the year was on the AtlantaMarietta operation of Southeastern Greyhound Lines (the former Atlanta-North ern Lines, Inc.) where the carrier sought to increase the fares on this portion of its operation to the same level as maintained on its lines operating out of Atlanta in other directions. The Commission found that there was no justifica tion for fares on this portion of this bus line lower than is applicable for similar distances in other directions to and from Atlanta and for similar distances on the lines of this Company throughout the State but, in recognition of the fact that there would be too great an increase in some of the proposed fares if the carrier were permitted to eliminate many fare points as proposed, required that there be added to the proposed fare structure additional fare points to avoid such abrupt progression of fares.
During the year the Commission permitted the major bus lines to increase their minimum one-way cash fares from 20 cents to 25 cents, that level having been in effect in the other Southern States for several years.
Due to the continuing and increasing competition from private automobiles 1955 showed still further reduction in the amount of schedules operated by the State's bus lines. Where revenue earned on schedules fell appreciably below the cost of operating such schedules the carriers sought to adjust their service to remove such losing operations. Smoky Mountain Stages, Inc. in August sought to revise the operating times of various schedules, as well as to totally and partially eliminate other schedule operations. In consideration of many protests filed against the proposed reductions in service the Commission assigned the proposal for public hearing and as the result of the evidence introduced a t that hearing permitted effective November 1st reduction in service on the AtlantaCanton-Blue Ridge route of Smoky Mountain Stages from 6 to 4 round trips per day and between Winder and Atlanta from 11 to 10 round trips per day. However, in spite of the fact that Smoky Mountain Stages was incurring ap preciable losses in operation of the Atlanta-Franklin, N. C. service proposed to be discontinued, the Commission in recognition of the fact that the proposed
194

reduction in service on this route to one round trip per day would not provide adequate service to the area, required the continuation of two round trips per day on this route but permitted discontinuance of the Commerce-Atlanta portion of one Franklin-Atlanta schedule, subject to the provision that arrangement be made for adequate connection at Commerce with schedules to and from Atlanta.
Southeastern Greyhound Lines was permitted to discontinue one daily local round trip between LaFayette and Chattanooga and Georgia-Tennessee Coaches, Inc. was permitted to reduce its service to and from Dalton to 2 round trips per day due to declining patronage on these lines.
TRUCK RATES
On April 14th the Class "A" Property Carriers filed with the Commission an application to increase by 20% (with maximum of 23 cents per 100 pounds) class rates applying on shipments weighing less than 2000 pounds and to increase the minimum charge per shipment from 230 to 250 cents for distances of 80 miles and less, and to 300 cents for distances over 80 miles. The increase in class rates sought in this proceeding was the same as that made effective on interstate traffic to and from points within Georgia and within the South gener ally on July 11th. The carriers' justification for these increases both on inter state traffic and in Georgia were the substantial increases in labor cost in curred as a result of new contract with its employees calling for increases in wage rates in amounts up to 70.9%. Additional increases in cost of operation due to increased cost of trucks, tires and tubes, license fees and state gasoline tax were also cited as justification for the proposed increased charges. The Commission found justified increase of 15% in the class rates in lieu of the 20% sought but did not impose the maximum increase as effective on interstate traf fic because of the resultant distortion of the progression of the rate scales. The Commission also found the proposed minimum charge too high and while it authorized the $2.50 minimum for the shorter distances, permitted increase to only $2.75 per shipment for distances in excess of 80 miles. Consideration was given to authorizing a lesser measure of increase on shipments weighing less than 2000 pounds and imposing some measure of increase on shipments in excess of that amount. However, upon consideration of all the circumstances the Com mission concluded that the carriers' fears of diversion of traffic resulting from increase in rates on the larger shipments were justified and, accordingly, did not spread the increase over the entire rate structure but confined the authorized increase to shipments of less than 2000 pounds as requested.
RAILWAY EXPRESS
There were no changes in the Railway Express rate structure during 1955-- the first time in years that there had not been an application for increase in the charges of the Express Agency.
Further discontinuance of express offices during 1955 contributed to a reduction in the value of Railway Express service. Only in isolated instances has the express office remained open at a joint agency station where the railroad agency service was discontinued--the cost of providing the service on an in dividual agency basis often amounting to more than the total revenue taken in
195

by a small office. In addition, there were applications to close express offices due to declining revenues even though the railroad agency at that point was to remain in operation. In the aggregate during 1955 the Commission permitted the closing of 7 express offices, while denying applications to close 16 other such offices.
RAIL PASSENGER SERVICE
As discussed in our 1954 report the Central of Georgia Railway in Septem ber of that year sought authority to discontinue operation of its passenger trains numbers 17 and 18 between Columbus and Atlanta, but the Commission by order dated November 16, 1954 withheld ruling on the application pending operation of the trains under specified test conditions for a five month test period ending May 1, 1955. The Central of Georgia Railway Company fully complied with the Commission's test conditions and properly submitted monthly reports of operation of these two trains for the five month test period.
The Commission on July 5th issued an order wherein it found a definite need for local railroad passenger service between Columbus and Atlanta which would not be met by the two trains to be left in operation and further found that the losses being incurred at that time in the operation of Trains 17 and 18 would not outweigh that need and, accordingly, denied approval of the proposed discon tinuance of Trains 17 and 18. The Commission emphasized in its order, however, that it could not reasonably continue indefinitely to require the operation of all four "Man O' War" trains if the traveling public continued to drift to other forms of transportation and that while present conditions appeared to warrant the continued operation of the trains, even at the losses being incurred, continua tion of the indicated downward trend in the patronage would lead to the dis continuance of a portion or all of this excellent service. Under the circumstances, the Commission retained jurisdiction in the matter and required the carrier to* submit verified monthly reports of operations of all four "Man O' War" trains so that regular checks might be made on the operational results of this service. The Commission expressed earnest hope that the public in the Columbus-Atlanta area would recognize the value of the service rendered by these trains and demonstrate its desire for the continuance of the trains by utilizing their services. At the same time the Commission notified the carrier that it would be expected to adequately advertise this service and to institute any practical changes in schedules or services which would attract additional passengers to the "Man O' War" trains.
Unfortunately, even though there was extensive newspaper publicity given to the continued operation, and in spite of the fact that the public in the affected area was well aware that continued operation of the trains would depend in large measure upon the results of operation, the riding on the trains during the four months June through September dropped almost 20% and the monetary losses in operation of the trains continued to amount. Further the operating results of Trains 19 and 20--the other two trips of the "Man O' War" between Columbus and Atlanta--likewise showed a drop and the declining operating profits from these two trains could no longer be used to offset the increasing operating deficits of the two trains sought to be discontinued. The Commission by order dated October 20th found from its thorough study of the "Man O' War"
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! operations during the preceeding twelve months that there was no prospect that Trains 17 and 18 would be utilized in the future to the extent necessary to pre vent increasingly unjustifiable losses and that the public in the area had con clusively demonstrated its increasing preference for other modes of transporta-
j tion for local travel between Columbus and Atlanta and, accordingly, authorized I the discontinuance of these two trains effective December 1.
On March 5th the Central of Georgia Railway Company filed application to j discontinue its local passenger trains Nos. 1 and 2 between Savannah and Macon.
The railroad showed that it was incurring an annual out-of-pocket loss of $44,756 in the operation of these two trains and that the passenger revenue was almost 15% lower than that of the previous year. The number of passengers 1 on the trains had declined to an average of 32.5 passengers per trip and was | continuing to decline. The protest at the hearing was directed almost entirely ! to the anticipated effect on mail and express service to and from the local sta tions served by these trains, and many public representatives appeared in support of the application. The Commission upon finding that the trains were used very sparingly in passenger service authorized their discontinuance effective July 18, but made provision for the continuance of needed express and mail service by requiring the simultaneous establishment of adequate substitute facilities for the handling of mail and express to all points then provided such service by trains
1 and 2.
For many years the Southern Railway Company has operated a passenger coach on its freight trains between Hawkinsville and Cochran. Upon the decline in patronage of this service to an average of less than 3 passengers per day, the Southern Railway in November, 1954, filed its application to discontinue the passenger service on these mixed trains Nos. 122-125 and 123-124. Protests were received from the City of Hawkinsville and from individual residents of that city, such protests being concerned almost entirely with the anticipated adverse effect on express and freight service between Hawkinsville and Cochran. In view^ of the completely negligible use of the passenger service on these mixed trains, the Commission authorized the discontinuance of the passenger service effective not earlier than July 1, and in consideration of the fears of the Hawkinsville area concerning express and freight service, made its order subject to the provi sion that adequate daily (except Sunday) freight service be continued between Hawkinsville and Cochran on a schedule suitable to the needs of the shipping public of that area and on a schedule permitting reasonable connection with Southern Railway passenger trains at Cochran for the purpose of interchanging
express.
Following hearing in October of 1954 the Commission on March 15th of this year authorized the Atlantic Coast Line Railroad Company to discontinue opera tion of its passenger trains Nos. 57 and 58 between Savannah and the GeorgiaAlabama State Line at a point near Saffold (en route to Montgomery, Alabama). Although there was extensive public opposition to the discontinuance of these trains, the record showed a continuing decline in riding, the number of passengers having diminished to an average of 41.4 per trip--this amount being over 25% less than the average number of passengers riding these trains during the prev ious year. It was shown that the out-of-pocket loss incurred in the operation of these trains had increased to $124,782 annually and that the action of the United
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States Post Office Department in taking the mail from these trains would in crease that annual loss by more than $150,000. Under such circumstances, and in view of the fact that the Alabama Public Service Commission had already authorized the discontinuance of the Alabama portion of this operation (thus drastically reducing the value of the service since there was no longer any interchange of passengers or express possible at the Georgia-Alabama State Line and no connections a t that point) the Commission authorized the discon tinuance of these two trains effective March 28th. The Commission found, how ever, that the carrier had not made sufficient effort to attract passengers to these trains through advertising, improvement in equipment and schedules or experimentation with incentive fares, and had not aggressively sought reduction in operating costs possible through reductions in train personnel and through experimentation with substitute, lower operating cost equipment. The Commis sion's order authorizing the discontinuance of passenger trains 57 and 58 ac cordingly included the provision that the Atlantic Coast Line Railroad immediate ly institute comprehensive investigation of its passenger service along this route in order to effectuate all possible economies and to improve and make more attractive the service of the remaining passenger trains. Although it was not found feasible in this instance, the carrier was also directed to fully and spe cifically explore the possibility of substituting lower operating cost self-propelled equipment along this route for future use if circumstances warrant either the provision of added service or the substitution of the self-propelled cars for the present equipment.
For a number of years the South Georgia Railroad has been operating a motor rail coach on its line between Adel, Georgia and Perry, Florida as its passenger trains Nos. 1 and 2. The use of this service had declined to the point that only $1,002.05 in passenger revenue was earned by these trains for the entire year of 1954 and only $388.61 for the first 6 months of 1955. The mail revenue of approximately $10,000 per year was supporting the operation and upon the loss of the mail contract on July 1 of this year, the carrier made ap plication to discontinue this passenger service.
In view of the hopelessly deficit operation of the service without the mail contract, and in view of the fact that the application was supported by 63 letters and petition signed by 335 residents of the area and opposed by only 2 individuals, the Commission on September 27 approved the discontinuance of these trains.
The St. Marys Railroad in December sought authority to discontinue all passenger service on its line between St. Marys and Kingsland, advising that the number of passengers had declined to less than one passenger per trip and that the loss in providing this service had amounted to $17,806 in 1954 and to $14,636 for the first 10 months of 1955. In view of the fact that provision was being made for the handling of mail and express over the highway, and in recog nition of the almost non-existent use of the passenger service, the Commission on December 15 authorized the discontinuance of all passenger service on the St. Marys Railroad effective January 1, 1956.
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RAIL FREIGHT
In 1954 after extensive public hearing the Commission authorized removal of many of the specific commodity exceptions ordered in connection with the four general railroad rate increases granted since the end of World War II. Authority was denied, however, to remove the exceptions applicable on logs and road aggregates because of the lack of specific justification for such action in connection with those commodities. This denial was made without prejudice "to the right of the carriers to re-file an application to seek adjustment of the rates on these commodities upon adequate showing of the reasonableness and justness of the rates sought." The railroads made such re-filing and hearing on that application was begun on December 2, 1954 and concluded on January 18th of this year. Upon consideration of the showing made by the railroads the Commission permitted adjustment in the increases on these commodities to some extent. The Commission was not convinced, however, that the full measure of all of the interstate increases should be authorized and accordingly did not permit the Ex Parte 175 15% increase in rates on logs and limited the Ex Parte 175 increase in rates on sand, gravel and related articles to 6% for distances of 1 to 50 miles, inclusive, and 12% for distances in excess of 50 miles (applicable in both open and closed equipment). With those exceptions, rates on these com modities have now been authorized to be increased to the same extent as has been previously permitted on interstate traffic.
By application dated August 16, and amended on October 27, the railroads sought to cancel the expiration date of December 31, 1955 then applicable in connection with the increases in freight rates and charges authorized in Docket 43-R (Ex Parte 175), to make such increases permanent and to make those increases a part of the railroads' permanent rate structure to the same extent and in the same manner as authorized by the Interstate Commerce Commission in its order of October 17, 1955. After public hearing on December 1, at which there was no opposition to the proposal, the Commission granted the application subject to the provision that the previously ordered exceptions to the increases be continued in effect.
By order dated November 17th the Commission granted authority to the railroads to cancel the Class "P" ratings applicable on carload shipments of clay and fullers earth between points within the State of Georgia. These Class "P " ratings were on a per car basis and had for some time been obsolete in the method of application. The rates approved by the Commission are based on 13% of the Docket 13494 first class rates and are on the uniform basis already made applicable throughout the South on interstate traffic and on intrastate traffic in all the other Southern States. The shippers actively sought the area-wide application of this uniform basis and there was no opposition to this adjustment of rates on these basic commodities.
On May 25th the Commission authorized increase in the line-haul switching charge at Brunswick, Georgia to $5.64 per car, the same charge as has been in effect on interstate traffic since December 1954. As was the case in the previous ly authorized switching charge at Augusta, the charge here permitted reflected the actual average cost to the railroads of performing this service as determined by time study of switching operations. Although public hearing was held and
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full notification given to all industries at Brunswick utilizing railroad service, no protests were made against the proposed increase in switching charges prob ably due to the fact that in most instances these line-haul switching charges are absorbed by connecting carriers.
The recently instituted practice of some of the major southern railroads in attempting to restrict traffic to movement via their lines to the greatest extent possible resulted in the filing with the Commission of complaint by a cement manufacturer protesting a new routing restriction which interfered with the movement of cement from Clinchfield to industries a t Tifton, Adel and Valdosta via routes necessary for proper delivery, which routes had been used for as long as 20 years.
After full investigation and public hearings the Commission found un reasonable the increased charges resulting from the imposition of the unauthor ized routing restriction and on July 5th ordered the railroads involved to publish specific joint rates to the affected destinations the same as the single line rates made effective to the same points. Following oral argument on September 19th the Commission on November 7th reaffirmed its initial decision and by subse quent order on November 16th directed that the rates be made effective not later than November 28th. The Georgia Southern and Florida Railway obtained a restraining order on November 18th staying the effectiveness of the Commis sion's order and the matter is now in court.
RAILROAD AGENCY SERVICE
The railroads during 1955 continued to seek authority to discontinue agency service at the smaller stations. During this year the Commission has received applications to discontinue agency service at 27 stations, these applications as in previous years being based on declining revenues and the carriers' belief that the remaining traffic could be adequately handled without the services of an agent. Of. the applications filed the Commission found in 13 instances the public convenience and necessity of the affected area to require the continuation of agency service and denied authority to discontinue such service at Rex, Maysville, Dacula, Hortense, Georgetown, Milner, Temple, Sycamore, Luthersville, Cataula, Sparks, Alto and Louvale. In two instances, Sparks and Rex, the Com mission found no public need for full-time agency service and authorized reduc tion in such service to two hours per day. In 14 instances the Commission found that the losses being incurred in the provision of agency service outweighed the need shown for such service and authorized discontinuance of agencies at Eton, Oliver, Rocky Ford, Suwanee, Canon, Towns, Stone Mountain, Howell, Lake Park, Culloden, Bishop, Williamson, Grantville and Orchard Hill.
*WESTERN & ATLANTIC RAILROAD
On February 4 an inspection trip of the Western and Atlantic Railroad was made by members of the joint Western and Atlantic Railroad Committee of the Georgia Legislature. During the two years since inspection by the General As sembly on November 21, 1953 Net Additions and Betterments were reported by the lessee in the total amount of $130,394.12.
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Attention of the Western and Atlantic Railroad Committee was called to two important developments during the year in connection with the Western and Atlantic Railroad property.
First, the committees' attention was called to the pending application of the Louisville & Nashville Railroad to the Interstate Commerce Commission for authority to absorb the present lessee, the Nashville, Chattanooga and St. Louis Railway, through merger. Review was given of the action of this Commission in intervening in the proceeding before the Interstate Commerce Commission for the purpose of protecting the interest of the State of Georgia as owners of the leased property and the interest of the citizens of Georgia utilizing the facilities of that railroad. The details of this intervention are discussed else where in this report.
There was also reviewed for the committees the proposed grade elimination project in the City of Chattanooga--a project which had been demanded by that city for some time and which, after long negotiation, had been agreed to by the railroads serving that city.
The City of Chattanooga had been pressing the grade elimination project to eliminate interference with the movement of automobile traffic, as well as to eliminate the hazard for both the railroads and the general public. The proposed grade elimination project involves not only the elimination of grade crossings, but also a change in the location of the passenger terminal in Chat tanooga_the new terminal to be located between Market and Whiteside Streets at approximately 28th Street, roughly 20 blocks south of the present terminal. The new terminal facility will be modern in every respect and a great improve ment over the present antiquated terminal.
There will be no cost to the State of Georgia in the proposed grade elimina tion project nor in the construction of the new terminal facilities. The Nashville, Chattanooga and St. Louis Railway, as lessee, will obtain the necessary additional right-of-way and easements, will build all tracks required and construct the new station building at its own expense and will join with the other railroads in the cost of elimination of the grade crossings.
The Commission after study of the project as tentatively agreed to by the City of Chattanooga, the Nashville, Chattanooga and St. Louis Railway and the other railroads, concluded that the interests of the State of Georgia were properly protected and that the completion of the proposed project would greatly benefit the Western and Atlantic Railroad.
The committee in addition to inspecting the Western and Atlantic properties used for railroad purposes also toured the Western and Atlantic Railroad prop erty located in Chattanooga used for non-railroad purposes--this property now being under lease to various organizations for the operation of commercial enter prises.
The Annual Report of the Nashville, Chattanooga and St. Louis Railway, Lessee of the State-owned Western and Atlantic Railroad, for the calendar year 1955 shows for the net expenditures charged to the accounting classification
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"Additions and Betterments" by classes of railroad property the following amounts:

Improved track materials __ Bridges, trestles and culverts Yard tracks and sidings __ ... Public improvements ______ Signals and interlockers _r_ Station and Office Buildings ... Purchase of land _______ ,,__

$ 6 0 ,119 .2 8
12 ,5 0 5 .9 6
7,349.87 3,759.27 2,812.85 4,288.18
835.00

The above net additions reported are after deduction for value of property replaced during the year and total (after accounting adjustment credit of $15,906 from previous years) $76,631.16. The net capital expenditures made by the Nashville, Chattanooga & St. Louis Railway for additions and improvements to the Western and Atlantic Railroad from the beginning of the lease in 1919 through December 31, 1955 amount to $7,400,246.

PARTICIPATION IN INTERSTATE RATE CASES
In February the Commission joined with the other Southern Commissions in protesting against the general order of the Interstate Commerce Commission issued in December of last year proposing to vacate the so-called "maintenance clause" of that Commission's order of August 11, 1942 in I&S Docket No. 4779 (in which was prescribed the railroad rates on livestock from, to, between and through the South).
The rates and charges on livestock moving from, to, between and through the South were established by the railroads following the 1942 order of the Interstate Commerce Commission in this Docket and have been continually in effect since the original publication, subject of course to the increases permitted in the various Ex Parte increase orders. The proposed vacation of the so-called maintenance clause of this order would have permitted the carriers to deviate from the rates prescribed in I&S Docket No. 4779 and while it was not claimed that the rail carriers would immediately seek to modify their livestock rates, it was the opinion of this Commission that the vacation of the "maintenance clause" would adversely react against the continued development of our livestock industry in Georgia and in the South by fostering doubt as to the future level of rail charges applicable in connection with the transportation of livestock in our territory. It was also felt that there was probability of immediate pressure from other livestock producing areas agitating for more favorably related rates than are now permissible under the Commission's order.
We emphasized the contention of the Southern States that vacation of the maintenance clause in this order would serve no useful purpose and the fear of the Southern Sttes that such action would undoubtedly again involve the South in another round of expensive litigation to protect the interests of its livestock industry. Fortunately the Interstate Commerce Commission in consid eration of this and other protests did not vacate the "maintenance clause" of this livestock order.
For many years this Commission has been experiencing difficulty in the
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regulation of rates and charges made by both the railroad and motor carriers for the transportation of petroleum and petroleum products moving within the State of Georgia when such products have been subjected to prior transportation via pipe line from origins in other states.
There are two large pipe lines operating within the State of Georgia which transport petroleum products--the Plantation Pipe Line running generally in a West-East direction through the northern part of the State, and the Southeastern Pipe Line which runs generally in a South-North direction through the State. The origin of the Plantation Pipe Line is Baton Rouge, Louisiana and that of the Southeastern Pipe Line is Port St. Joe, Florida.
Petroleum products are moved through both pipe lines in large volume to pipe line outlets in the State of Georgia where a large amount of such petroleum products is placed in storage tanks and subsequently reshipped via rail or motor carrier to destinations in Georgia and to destinations in surrounding states. Such transportation by rail or motor carrier from the pipe line outlets to destinations in Georgia have always been treated as intrastate transportation when moving from outlets on the Plantation Pipe Line and no difficulty has been experienced by this Commission in the regulation of charges on such movements.
Southeastern Pipe Line, by the publication of a "proportional tariff," sought by such means to tie together the pipe line movement and subsequent rail or motor carrier movement so that the entire transportation would be considered interstate in character and thus not subject to the jurisdiction of this Commis sion. This Commission had always taken the position that this "proportional" rate structure was a purely fictional arrangement and did not legally transform the subsequent rail or motor carrier movement to interstate transportation. However, the Interstate Commerce Commission in 1948 in Petroleum Carrier Corporation Common Carrier Application, 48 M.C.C. 719, held that such subse quent motor carrier or rail transportation was interstate in character due to this so-called "proportional" rate structure and interstate rates had been ap plied on such movements since that decision.
Early in 1955 the Interstate Commerce Commission instituted an investiga tion in connection with petitions of certain motor common carriers in other states for determination of the extent of that Commission's jurisdiction over the trans portation by motor common and contract carriers in tank.trucks within a single state of petroleum and petroleum products which have had a prior movement by rail, pipe line, motor or water from an origin in a different state. Any finding arising out of such an investigation would of course apply also to similar transportation by rail.
Hearing was held in this proceeding in Washington, D. C. on June 13-14, 1955 and representatives of this Commission, together with those of other Southern States and State Commissions in other territories, appeared to support the jurisdiction of the States over this traffic. Evidence was received from the State Commissions, shippers of petroleum products, one common carrier pipe line and a representative of the southern rail carriers. We and the other State Commissions strongly urged the Interstate Commerce Commission to find that the traffic involved was intrastate even where handled under the fictional "pro portional" rate structure of Southeastern Pipe Line and to reverse its prior
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decision in the Petroleum Carrier Application Case where it conflicted with that finding. We confidently expect decision in this case upholding the jurisdiction of the State Commissions over this traffic.
During the year the Southern Railway System continued to push its program of restrictive routing and in order to divert to its rails all the traffic possible had published for its account during 1955 additional provisions applicable on interstate traffic which were designed to close many routes used by shippers for long periods of time.
Included among these restrictive routing projects was a tariff provision designed to restrict routes on the movement of paper products moving between points within the South, including the State of Georgia. This proposed restric tion threatened an adverse effect on a number of railroads in Southern territory, among which was the Gainesville Midland Railroad.
This Commission does not normally concern itself with routing disputes be tween railroads unless such routing restrictions actually affect the interest of the users of the services of the involved carriers--as appeared to be the case here. This case was handled under the modified procedure plan and this Com mission intervened in that proceeding in November by filing a statement of facts and argument protesting against the proposed restriction insofar as it pertained to the Gainesville Midland Railroad and pointing out that the revenue involved, while inconsequential to the Southern Railway System, was substantial to the small Gainesville Midland Railroad, and the effect of the loss of such revenue coupled with the additional potential loss of revenue if the related pulpwood traffic were affected as was feared, would quite probably be a diminution of service to the users of the Gainesville Midland Railroad.
This statement emphasized that the paper rates involved were intimately related with the rates on pulpwood moving inbound to the paper mills, the pulpwood rates being retained on an admittedly low basis with the justification for such low rates being the tacitly guaranted outbound movement of finished paper and paper products via the carrier originating the pulpwood used to manufac ture such products. Thus the Gainesville Midland although participating in the inbound transportation of pulpwood at low rates for manufacture into paper would lose its participation in the outbound transportation of finished products designed to offset the low measure of the pulpwood rates.
This Commission took the position that the negligible benefit to be gained by the Southern Railway through the imposition of these routing restrictions would be far offset by the adverse effect on the small Gainesville Midland Railroad and the potential loss of services to the users of that railroad. Decision on this matter has not yet been rendered by the Interstate Commerce Commission.
As pointed eut in our report last year, further hearing was held in the interstate pulpwood rate case (Docket 30958) at which a much more complete record was submitted and where we continued to argue strongly for the reten tion of the so-called 150% basis of rates on pulpwood. Unfortunately, however, the proposed report issued by the Examiner following this further hearing closely paralleled the finding of the Commission following the previous hearings in this proceeding and still resulted in the prescribed application of rates on pulpwood
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considerably higher than those which had been established on intrastate traffic and interstate traffic by the respondents in this proceeding. On June 13 we joined with the other Southeastern States affected in filing exceptions to the Examiner's proposed report. We continued to press our position th at the order would result in unreasonable and unwarranted disruption of the uniform and consistent interstate and intrastate adjustment of rates on pulpwood accom plished through the cooperative efforts of the respondent railroads, the regula tory bodies of the seven states involved and the southern paper industry and by restricting the movement of pulpwood traffic via rail would harm not only the rail carriers but would discourage the reforestation and conservation programs which the southern states are seeking to promote. Oral argument was held late in the year and we are awaiting the decision of the Commission on this further hearing.
On January 28 the Louisville and Nashville Railroad filed a petition with the Interstate Commerce Commission seeking authority to merge the Nashville, Chattanooga & St. Louis Railway which it had controlled through stock owner ship for many years.
This application (assigned for hearing as Finance Docket No. 18845) in volved not only the shippers of the State of Georgia utilizing the services of the Nashville, Chattanooga & St. Louis Railway and the Louisville and Nashville Railroad but directly involved the State of Georgia itself since the Nashville, Chattanooga & St. Louis Railway is the lessee of the state-owned Western and Atlantic Railroad between Atlanta, Georgia and Chattanooga, Tennessee. Under itgj proposal the Louisville and Nashville Railroad contemplates transfer of this lease to it for the remaining lease period of approximately 14 years.
This Commission has the duty under Section 11 of the Lease Act of 1917 to see that the lease provisions are carried out and to generally protect the interest of the Western and Atlantic Railroad. In accordance with this statutory duty and in compliance with resolution of the Georgia General Assembly of March 16 to intervene in Finance Docket No. 18845 as official representative of the State of Georgia for the purpose of "participating in all hearings and other proceedings in such Docket as the interests of the State of Georgia in general and the Western and Atlantic Railroad in particular might appear" sought and obtained authority to intervene in this proceeding.
After thorough investigation, including conferences with representatives of and Louisville and Nashville Railroad and the Nashville, Chattanooga & St. Louis Railway, the Commission reached an agreement with the railroads providing for stipulation to be made into the record of certain conditions to be attached to any order approving the merger in order to protect the interest of the citizens of the State of Georgia utilizing the services of the railroads and the interest of the state-owned Western and Atlantic Railroad. The following stipulations were agreed to between the Louisville and Nashville Railroad and the Commission and voluntarily presented to the Interstate Commerce Commission by representative of the Louisville and Nashville Railroad at the hearing held in the m atter in
August:
1. After the aforementioned merger the Louisville and Nashville Railroad Company shall maintain and keep open and available to all shippers and
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receivers of freight located on the Western and Atlantic Railroad Division of The Nashville, Chattanooga & St. Louis Railway all established routes via existing junctions and gateways now applicable in connection with The Nashville, Chattanooga & St. Louis Railway, unless or until a change is agreed to by the parties hereto or unless and until otherwise specifically authorized affirmatively by the Interstate Commerce Commission; and that
2. Unless or until a change is agreed to by the parties hereto or unless and until otherwise specifically authorized by the Interstate Commerce Com mission, all presently established routes for the handling of traffic in bound and outbound by The Nashville, Chattanooga & St. Louis Railway to and from all shippers and receivers of freight located on the Western and Atlantic Railroad Division of The Nashville, Chattanooga & St. Louis Railway shall be continued after the said merger so as to permit such shippers and receivers to avail themselves of the services of all lines connecting with the rails of the Western and Atlantic Railroad without undue or unjust discrimination as to routing or movement of traffic (ir respective of the provisions of Section 15(4) of the Interstate Commerce Act) and without undue and unjust discrimination against the Western and Atlantic Railroad Company in the arrangement of schedules or other wise; and that
3. The Georgia Public Service Commission acting on behalf of the Western and Atlantic Railroad will take all action available to it to insure that all lines connecting with the Western and Atlantic Railroad in the forma tion of established routes maintain said routes; and that
4. The Louisville and Nashville Railroad Company, after the said merger, shall accept, handle and deliver all cars inbound and outbound, loaded and empty, destined to or received from shippers and receivers of freight located on the Western and Atlantic Railroad Division of The Nashville, Chattanooga & St. Louis Railway without undue and unjust discrimina tion in promptness or frequency of service as between cars destined to or received from competing carriers and irrespective of destination or route of movement if said movement is over an established rout; and that
5. These proposals if accepted shall remain in full force and effect during the term of the present lease of the Western and Atlantic Railroad to The Nashville, Chattanooga & St. Louis Railway which expires on De cember 27, 1969, or any extension thereof; unless changes therein are mutually agreed upon by the parties or unless changed as otherwise provided herein.
Representative of the Georgia Public Service Commission stated at the hear ing that the Commission had no objection to the proposed merger provided those conditions were made a part of the Interstate Commerce Commission's order.
Further hearings in this Docket were held in Nashville, Tennessee in August and September and in Washington, D. C. later in September at which considerable opposition was expressed to the proposed merger by the City of Nashville (which is fearful of the economic effect of losing the general offices of the
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Nashville, Chattanooga & St. Louis Railway now loeated in that city) and by reprsentatives of certain' minority stockholders and representatives of the- labor organizations whose members Would be affected by the proposed merger. The hearings have been completed and decision is now being awaited from the Com
mission.

This Commission has participated in the deliberations of the Southeastern Association of Railroad and Utilities Commissioners for the past several years concerning the rail rates on grain and grain products from, to and between points in the South. These rates, which were established in 1945 as the result of the decision of the Interstate Commerce Cominission in Docket 17000, P art 7A, hav for many-years been prejudicial to the Southeast and have prevented- our grain industry from developing t the extent that would have been possible had the South had the same level of grain rates as applicable in other sections of the
coiintry.

Informal negotiations with the railroads for reduction in these rates haying failed and also having failed in an effort to have the Interstate Commerce Commission reopen the old Docket 17000, P art 7A case, this Commission joined with the other states in the Southeast and with the Southern Governors' Con ference, and on September 21 of this year filed formal complaint with the Inter state Commerce Commission attacking as unreasonable the railroad rates on grain and grain products from, to and between points within the South.

In this complaint we have the support of most of the shippers of grain and

grain products in the southeast, although there was some opposition from a few shippers who by virtue of their location now have favorable advantages over

their competitors which would be lessened or removed by the establishment of

a uniform basis of railroad rates at the level of 17%% of Docket 28300 first

class rates which our complaint seeks.

, ,

.,c/

In addition to the lower level of rates on grain and grain products, our complaint seeks the establishment of through one factor rates between the South and other territories in lieu of the present system of proportional rates, which basis is outmoded and would not permit the full relief sought.

As we anticipated there has developed considerable opposition from the rail roads in the West to this complaint and some opposition, although not nearly as strong, from the railroads in the South. In addition, the scope of the case has been broadened by the intervention of parties seeking to preserve routes through their marketing and storage points and by interests in the West concerned with
origin relationships. As those parties have been advised, the South is concerned only with a reasonable level of rates via reasonable routes with reasonable
origin relationships and will not take sides in the routing and origin relationship phase of this proceeding unless unreasonable demands are made.

Since the railroads did not voluntarily satisfy our complaint, the Interstate Commerce Commission advised that the matter would be set down for full public hearing and it has been formally assigned Docket No. 31874. Due to the com plexity of this proceeding as broadened to include the routing and origin rela tionship matters, the Interstate Commerce Commission called for a pre-hearing conference on November 3 to discuss the manner in which the hearings in the

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case should be held. Little developed from this pre-hearing conference other than that the matter would be assigned for full hearings. No hearings were held during 1955 but it is anticipated that hearings will begin early next year.

UTILITY REGULATION
General
Since the end of World War II Georgia's surging growth in population has confronted all utilities with an unprecedented demand to construct additional plant facilities in order to satisfy the customer demand. The growth has ex ceeded all predictions, particularly in the suburban areas of large cities where only a few months ago were farm lands, and now a huge sub-division, often in unexpected places, has been developed. The influx of thousands of additional families has been partially due to the equalization of freight rates between the North and South which took place in 1952. The overall effect resulted in many industries moving South to relocate in order to take advantage of the high grade labor supply available, ideal climate, and many other advantages such as trans portation facilities and an abundant supply of natural resources, electric energy and natural gas.

WORK OF COMMISSION INCREASES

Because of the amazing growth in population and industrial activity, utilities have added considerably to plant facilities, but not sufficient to meet the demand for service, thus imposing a large volume of complaints on a small but highly
trained technical staff. Despite the tremendous work load, 188 formal orders were issued during the year. The need for additional trained personnel is still
imperative in order to relieve some of the pressure on existing staff, also to ac complish more complete study of annual reports, investigations into the character of service being rendered and surveys to determine the need for additional services, particularly in the rural areas where extensions have been difficult to economically justify due to the shift of population from small to large commu nities. During the year there was a tremendous backlog of orders held by utilities, particularly small telephone companies because of lack of manpower and financial means with which to construct necessary plant additions. A sum mary of work accomplished by the staff in assisting complainants in 1955 is given in the following table:

Number of electric complaints ____ ____ _______

143

Number of gas complaints ______ ....___________

202

Number of telephone complaints _________ _________ _ 4355

Number of Transit complaints _________ _______...

305

Total ------__--r------ .------------------ ___ _

2005

According to the files, some 600 complaint cases are still pending, but these will be handled to conclusion as soon as time permits by the small staff avail able. Many of the complaints are handled by telephone calls and personal visits, but the majority are handled by letters because of the location of the complain ants. During the year more than 5,000 calls were made and over 2,000 letters writ-

208

ten with more than 65 special investigations made with reports submitted to the Commission for appropriate action. Most of the service problems are with the telephone industry. However, it is expected that this condition will improve, particularly since Georgia independent companies and cooperatives allocated more than $12 million since 1950 for the expansion and modernization of tele phone facilities in practically all sections of the state. The number of inde pendent telephone companies operating in Georgia has been reduced from 189 to 88 as a result of consolidation of some of the small companies into the larger ones to enable the operating company to borrow sufficient funds with which to modernize and expand facilities.
TELEPHONE UTILITIES
Operating costs and the cost of telephone facilities devoted to public service continued to increase during the year 1955 for independent telephone companies in Georgia. As a result a substantial number of rate applications were filed with the Commission wherein authority was requested to adjust rates for telephone service in order to provide revenues sufficient to meet the increased costs. The Commission issued 12 orders and decisions regarding applications of this nature. Increased revenues from rates proposed by the applicants amounted to $126,748 per annum. Rates authorized by the Commission produced increased revenues of $98,511 per annum. In addition to these applications there were six orders issued by the Commission published regarding applications filed by REA fi nanced telephone companies and cooperatives wherein authority was requested to establish rates for telephone service following construction of a modern dial telephone system by these applicants. Annual local service revenues from rates proposed in these applications amounted to $340,067, while annual local service revenues from rates authorized by the Commission amounted to $325,413.
The demand of citizens in Georgia, particularly in the rural areas, for modern dial telephone service continued strong throughout the year 1955. In an endeavor to meet this demand a substantial number of loan and security is suance applications were filed with the Commission by independent telephone companies and newly formed REA financed cooperatives in order that capital funds be procured for construction, conversion and expansion of telephone fa cilities. Twenty orders and decisions regarding matters of this kind were issued by the Commission wherein authority was granted to obtain loans and issue securities which provided capital funds to applicants aggregating $10,107,460. Of this amount $4,059,000 was authorized to be obtained from the Rural Elec trification Administration, Washington, D. C. in the form of mortgage loans, the proceeds to be used for construction of modern dial telephone- systems in certain of the urban and rural areas of Georgia.
Southern Bell Telephone and Telegraph Company made application to the Federal Communications Commission for authority to modify, under the provi sions of Section 220(b) of the Communications Act of 1934, as amended, certain of the percentages of depreciation prescribed previously by that Commission with respect to each of the classes of property of Southern Bell Telephone and Telegraph Company.
209

The initial notice regarding this m atter received by each of the regulatory commissions in the nine states in which Southern Bell operates was by letter, dated August 5, 1955, from the Secretary of the Federal Communications Com* mission.- The letter represented formal and official notice in accordance with the provision of Section 220 (i) of the Communications Act of the proposal before the Federal Communications Commission and each of the Commissions addressed was given until September 12, 1955, to comment on the proposed changes in de preciation rates. None of the commissions had any previous knowledge of any contemplated change in fates for depreciation, nor had any representatives of any of the commissions had any opportunity to review and study either coopera tively with the Federal Communications Commission, or individually, the merits of the contemplated changes.
The revised rates of depreciation proposed for application effective January 1, 1955, were determined in the notice of August 5, 1955, to result in increased depreciation expense of the Company in the aggregate amount of $1,460,114 per annum. Later, due to an omission made through an oversight the aggregate amount was determined to result in increased depreciation expense of the Com pany in the aggregate amount of $1,243,337.
It has been the practice of the Federal Communications Commission, follow ing the completion of a cooperative study of Southern Bell depreciation rates (by the Southeastern Association and the Federal Communications Commission) to submit for review and study any changes in depreciation rates. Accordingly a request was made by the Southeastern Association to the Federal Communi cations Commission that action by that Commission be deferred in order that the matter could be Submitted to the Southeastern Association a t its amiiial meeting in Asheville, North Carolina in October, 1955. The Association's request was granted and the matter was considered by the Association in its meeting on October 25, 1955, at which time the Association received a report from its Tele phone Committee.
The Tlphon Committee's report stated in part: "The Committee -has met and discussed this proposal. It is of the opinion that (1) No prior notice of this filing was given to the Southeastern Commissions; the data supporting the changes have not been provided the various commissions and, therefore, your, Committee can only recommend that steps be taken for further suspension of this matter, and (2) a study of the Southern Bell Telephone and Telegraph de preciation rates be undertaken by the Southeastern Association, either independ ently, or jointly with the Federal Communications Commission.
The Association concurred in the recommendation of its Committee and adopted a resolution that a joint study of the proposed depreciation rates should he undertaken. On November 10, 1955 the Federal Communications Commission was advised of this conclusion by the Southeastern Association.
On December 5 and 6, 1955 a meeting of the, Telephone Committee was held in Atlanta, Georgia which meeting was attended by a member of the staff of the Federal Communications Commission. As a result of this meeting the Com mittee concluded that a small study group should undertake to review the reason ableness of each of the depreciation rates of Southern Bell Telephone and Tele-
210

graph Company cooperatively with a member of the staff of the Federal Com munications Commission.
By letter dated December 13, 1955 to the Federal Communications Commis sion, the Southeastern Association of Railroad and Utilities Commissioners urged that the depreciation rates proposed by the Company should not be made effective retroactive to January 1, 1955 but that the result of the proposed cooperative study should be made effective January 1, 1956.
Unfortunately, and for reasons satisfactory to the Federal Communications Commission as set forth in its order, it was concluded by that body that suffi cient showing had not been made regarding why it should not prescribe the nw depreciation rates for Southern Bell Telephone and Telegraph Company effective January 1, 1955.
The order and decision of the Federal Communications Commission was published on December 21, 1955, wherein the new depreciation rates (with certain modifications) for Southern Bell Telephone and Telegraph Company were pre scribed and made effective retroactive to January 1, 1955.
It was agreed, however, that the cooperative study by the Southeastern Association and the Federal Communications Commission would be made during the early part of 1956 and that the result of that study would control deprecia tion rates as of January 1, 1956.
The forms currently used by independent telephone companies to file their annual reports to this Commission have been in use for a number of years, and the information contained therein is not consistent with the Uniform System of Accounts prescribed by the Commission, therefore the Commission directed its Staff to make recommendations regarding the adoption of revised annual re port forms for independent telephone companies.
On June 24, 1955 and August 5, 1955, conferences were held in the Commis sion's hearing room with the telephone companies being represented, wherein revised annual report forms prepared by the Staff of the Commission were discussed in detail which resulted in a number of changes being adopted at the recommendation of the conferees.
As of December 31, 1955 revised annual report forms for telephone com panies were in process of completion by the Staff of the Commission.
CERTIFICATES ISSUED IN 1955
SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY: Amendments to Certificates ...------ -- ..-- L,-- -- 35 Acquisition Certificates _----- L---- --- i------- 1
Total Southern Bell Certificates ____________ ____ 36 INDEPENDENT TELEPHONE COMPANIES AND CO-OPS:
New Exchange Certificates -- --------------------------- ..-- .-- 4 Acquisition Toll Certificates .--------------_------- --------------------- 3 Amendments to Certificates -----..------ --------------- -------------- 59 Certificates for Rural Co-operative Exchanges ............_______ 6
211

Certificates issued as result of acquisition

19

Total Independent & Co-operative Certificates ,, ____

91

Total Southern Bell, Independent, & Cooperative Certificates

127

ELECTRIC UTILITIES
On March 10, 1955 the Commission approved the request of the Georgia Power and Light Company to increase the stated value of its outstanding shares of common capital stock from $150 to $200 per share to reflect a cash con tribution of $1,052,500 by the Florida Power Corporation to the Company. The cash invested by Florida Power Corporation is in new plants and facilities of the Georgia Power and Light Company, a substantial part of which has been constructed with funds made available for that purpose by delaying payments on the open account of the Florida Power Corporation for power purchased.
On April 7, 1955, the Commission authorized Savannah Electric and Power Company to issue and sell 65,000 shares of its common stock of the par value of $10 per share. The Company was to receive $30.30 per share for the issue, with the proceeds to be utilized for the repayment of short term bank loans, then out standing and in the furtherance of the construction program of the Company.
The continued construction and expansion program of the Georgia Power Company resulted in the Commission granting the Company authority to issue $12,000,000 principal amount of its First Mortgage Bonds and 130,000 shares of its $100 per share par value common stock. The Company estimated its con struction expenditures for 1955 would amount to some $31,200,000, the majority of which was to be expended for new production plant and transmission line fa cilities.
Under Section 167 of the 1954 Internal Revenue Code, certain liberalized depreciation produres were permitted for income tax purposes, in addition to use of the present straight-line method of computing depreciation, Section 167 permits the use of:
(1) the declining-balance method, using a rate not exceeding twice the straight-line rate;
(2) the sum of the year's digit method, and
(3) any other method consistently applied, which during the first 2/3 of the useful life of the property did not result in an accrual in excess of the amount which would have been accrued during such period under the declining-balance method.
The use of the new method is voluntary with the taxpayer and different methods may even be applied to different categories of depreciable property. The only change permitted after a particular method is selected, with respect to specific property, is from the declining-balance method to the straight-line method. Further, the new methods are available only for application to property constructed after December 31, 1953.

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Pursuant to this law the Georgia Power Company filed a request with the Commission on June 10, 1955 seeking the prescription of appropriate accounting treatment for liberalized depreciation deductions for income tax purposes, as | permitted under Section 167. Due to the significant effect of the liberalized de preciation proceedures, it was concluded that the request should be assigned for I public hearing. Accordingly, hearing was scheduled for July 18, 1955.
Due to the extreme length of time involved in deferment accounting and in view of complexities of the matter, it was the opinion of the Commission that further study would be required before a final definitive conclusion could be I reached. The Commission, therefore, authorized the deferment accounting treat| ment requested by the Company on a tentative basis, subject to review and * amendment by the Commission after the conclusion of a depreciation study look ing toward the development of appropriate treatment.
The Order on this m atter specifically prescribed identical treatment as provided for in Docket 467-U, dated December 23, 1952, relating to amortization J of Emergency Defense Facilities. This Order is considered a precedent to be used as a guide by all regulated public utilities in the State of Georgia.
As summarized in our 1954 report the Commission has been engaged for j some two years in an attempt to reduce the cost of power to the Georgia Power
and Light Company. During 1954, the Georgia Power and Light Company and the Georgia Power Company were successful in obtaining a permanent injunction against the Commission to prevent further action under the RULE NISI, issued r on December 16, 1953, thereafter, further hearings were held on the matter of temporary rates authorized Georgia Power and Light Company in the Commis sion's Order of October 27, 1953. This m atter was under consideration by the Commission at the close of 1954. As the Commission was not able to effect the cost reductions proposed, in July 1955 the Commission ordered said temporary ] rates to become permanent. This Order states in part, "Nothing in this Order is to be construed as an indication of an expression by the Commission that it approves the corporate set-up of the Georgia Power and Light Company as a
J subsidiary of the Florida Power Corporation, or that the Commission approves
the contract for the purchase of electric energy by the Georgia Power and f Light Company from the parent, Florida Power Corporation. Both of these
matters are now the subject of a proposed investigation upon complaint of the Georgia Public Service Commission to the Securities and Exchange Commission and the Federal Power Commission, respectively."
GAS UTILITIES
South Atlantic Gas Company was granted authority to issue and sell 1750 shares of its $100 par value 5% Preferred Stock and 24,000 shares of its $5 par value Common Stock, the preferred stock to be issued at par and the com mon stock to be offered to the public at $12.50 per share. The proceeds of these issues were authorized to be used to reduce current outstanding bank loans in curred for the construction of additional plant facilities. The Company was also authorized to enter into a loan agreement with the American Meter Company in the amount of $300,000 to finance the replacement of all gas meters in the Savannah Division at one time. Said loan to bear interest at the rate of 4% per
213

annum and to be payable quarterly at the rate of $25,000 per quarter beginning May 1, 1955.
Mid-Georgia Gas Company commenced construction of additional gas dis tribution facilities to serve Harlem and Statham, Georgia. To provide capital funds to finance this program the Commission authorized the issuance of $250,000 principal amount of 4% First Mortgage Bonds, $50,000 principal amount of Debentures, 5% Series, and 105,000 shares of $1 par value common stock to be issued at a price to net the Company not less than $100,000. During the year, the Atlanta Gas Light Company was authorized to issue and sell $3,000,000 principal amount of its 4.44% Cumulative Preferred Stock. The proceeds from the sale to be used for the payment of current short-term bank loans which were incurred to obtain funds for making additions to its gas distribution system.
On October 1, 1954 Southern Natural Gas Company filed amended gas tariff sheets with the Federal Power Commission effecting an increase in the rates at which gas is sold in Georgia. On October 28, 1954 the Federal Power Commis sion, pursuant to the provisions of the Natural Gas Act, suspended the effec tiveness of Southern Natural rate increase for the statutory period of five months, said suspension applying on gas sold for resale to so-called non-industrial consumers as defined by Southern Natural Gas Company. On March 16, 1955 Southern Natural made application to the Federal Power Commission to make the rate increase effective on April 1, 1955, or at the end of the five months statutory suspension period. Said application proposed to furnish proper bond in sufficient amount to insure a refund of any charges in excess of such reasonable rate as might be determined by the Federal Power Commission. The application was approved by the Federal Power Commission and as a result, Atlanta Gas Light Company and the Gas Light Company of Columbus were required to pay increased rates on all gas deliveries made on and after April 1, 1955, but subject to refund. Pursuant to said increase the companies filed applications with this Commission wherein authority was requested to increase rates for natural gas service to. reflect the increased cost of gas purchased. The increased rates of Southern Natural amounted to an aggregate increase to the companies of $3,705,812 annually, or approximately 28%. Since the earnings of the companies at the time were not excessive, and since they could not absorb the additional cost of gas purchased, the increases requested were granted subject to refund.
On July 5, 1955 South Atlantic Gas Company was granted an increase of 50c per month in the rates for residential and commercial service, or approxi mately $113,000 per annum. This increase represented a final adjustment to the Company's rates after cutover to natural gas. As reported in our 1953 report, rates for natural gas service were reduced approximately $472,000 upon con version. This reduction was proven to be excessive. No increase was requested by the Company to offset the increase in the cost of gas from Southern Natural Gas Company as the Company was able to offset this increase with additional revenues from contract industrial customers.
TRANSIT UTILITIES
During 1955 Savannah Transit Company was authorized to enter into a
214

conditional sales contract in the amount of approximately $207,000 for the pur chase of 12 new Transit buses.
Atlanta Transit System, Inc., was also authorized to execute a note m the amount of $150,000 for the purchase of 8 additional transit vehicles.
Atlanta Transit System, Inc., requested authorization to increase the rate for tokens from 8 for $1.00 to 7 for $1.00 and to increase the fare on its Shoppers Special from 5c to 10c. Atlanta Transit System had experienced, as has the Transit Industry in general, a continued passenger decline since World War II. This decline together with additional wage increases granted in the amount of approximately $168,000 per annum and other increased expenses was the basis for the increased revenues sought. The revised fares requested by the System would produce an increase in gross revenues of approximately $554,000 per annum. After adjusting the forecasted expenses to reflect a curtailment of ve hicle miles operated as a direct result of the passenger decline, the Commission determined that additional annual gross revenues of $454,000 would be adequate. Therefore, on May 25, 1955, the Commission authorized the System to institute a token fare, of 4 for 55c, in lieu of the requested token fare of 7 for $1.00 to provide the additional revenues.
On November 7, 1955 Savannah Transit Company was granted authority to increase its token fare from 4 for 35c to 5 for 45c. Also, on November 16, 1955, Bibb Transit Company was authorized to increase its cash fare from 10c to 15c and to institute a token fare of 4 for 45c. These increases were necessitated by the general increase in operating expenses and taxes experienced in recent yeax^s.
INTERVENTIONS BEFORE THE FEDERAL POWER COMMISSION IN MATTERS CONCERNING UTILITY RATES IN THE STATE OF GEORGIA
In the belief that the increased rates for gas service as filed by Southern Natural Gas Company with the Federal Power Commission on September 30, 1954 were excessive and discriminatory to the people of Georgia, the Commission intervened in this proceeding and endeavor to effect a reduction in these rates. The Commission was represented at hearings on this m atter and as a result a final agreement was reached between all parties, which effected a reduction in the rates requested by Southern Natural Gas Company of $1,655,000 per annum and of this figure approximately one-third to one-half was directly applicable to gas consumers.
The following orders were published by the Commission during 1955 re garding major matters pertinent to Telephone, Electric, Gas and Transit Utilities in Georgia:

RATE MATTERS

TELEPHONE

Date of

Name of Utility

Order

Cherokee Telephone Company, Inc..... ---- ------- 5- 4-55

Ellijay Telephone Company _-------- ....------------ ------ ------- 5- 4-55

Docket Number
759-U 750-U

215

Wayne Telephone Company ... ....._________ :_____ ..._____ 6-28-55

Ellijay Telephone Company _______ ...____ 1__________ 8- 2-55

Progressive Rural Telephone Cooperative ____________ ..... 8- 4-55

Nelson-Ball Ground Telephone Company ....___ t__ .___ ........ 8- 4-55

Sikes Telephone Company ........__...__ '>_____ .....____>____ 8- 4-55

Gray-Haddock Telephone Companies ...i i . - #

8-16-55

Wilkes Telephone and Electric Company

__v ' y __ _ 9-19-55

Commerce Telephone Company ____ ...._______

10- 7-55

Consolidated Telephone Company ______.. ......______.......10-31-55

Hart County Telephone Company

__ .. .10-31-55 661-882-U

Interstate Telephone Company, (Att.) ..' ___ ....________...11- 7-55

Georgia Continental Telephone Company ...._____________ 12- 1-55

Pineland Telephone Cooperative _____....._____....________...12- 1-55

Fairmount Telephone Company ____ '____ ____________-.:__12-15-55

Glenwood Telephone Company __ _____ .......:..i...____ __12-15-55

South Georgia Telephone Company ......__.......____.1__.........12-15-55

801-U 863-U 835-U 825-U 807-U 796-U 855-U 871-U 869-U
880-IJ 865-U 886-U 897-U 895-U 872-U

ELECTR IC Georgia Power and Light Company ____ ___

7- 5-55

470-U

GAS

Atlanta Gas Light Company .___..._____ .;\V ___.....___ _____ 4-14-55

Gas Light Company of Columbus _______________ ___ ... . 4-14-55

South Atlantic Gas Company ____ L______ .......___ ...._____ 7- 5-55

Atlanta Gas Light Company

_ y.-. __......_________ 8-16-55

TRANSIT
Atlanta Transit System L ... j_.__ ____ _`________ ;Vy 5-25-55 Savannah Transit Company ..__________ ................____... 11- 7-55 Bibb Transit Company -- . _____________ ___ .'.i....'.._. ........11-16-55

785-U 795-U 826-U None
781-U 885-U 887-U

LOAN AND SECURITY MATTERS TELEPHONE

Name of Utility
Southeastern Telephone Company _____________ Coastal Utilities, Inc. _.J______...U______ ' Consolidated Telephone Company .___ _______ Chatsworth, Dalton, ^Douglas, and Summerville
Telephone Companies ________L ___ __ Plant Telephone and Power Company ______ ... Trenton Telephone Company _______. ........____ Cherokee Telephone Company ___. ? : :_______ ... Ellijay Telephone Company __ %___________ Coastal Utilities, Inc....... ..._.___ .....________ __

Date of

Docket

Order

Number

. 1-27-55

739-U

. 1-27-55

742-U

. 4-12-55

753-U

.754-755-756

4-12-55

757-U

. 5- 4-55

788-U

. 5- 4-55

798-U

. 5- 4-55 637-758-U

. 5- 4-55

749-U

5-25-55

555-U

216

Wayne Telephone Company -------------

-r 6-28-55 800-U

South Georgia Telephone Company ------------------ ------- -- 7- 1-55

836-U

Seminole Telephone Company ...._....------------------------------- 7-26-55 837-U

Wayne Telephone Company -- ---- .-- ..--. . . ~ ---------- 8- 2-55

800-U

Southeastern Telephone Company ------ ---- ------------------ - 8- 2-55

856-U

Progressive Rural Telephone Cooperative ----------- ------ 8- 4-55

834-U

Sikes Telephone Company .------ __----------------------------8- 4-55

806-U

Georgia Continental Telephone Company ------ -- -------

9-19-55

868-U

Commerce Telephone Company -- -------- .~i--------- ----.......10- 7-55

870-U

Hart County Telephone Company -------- ---------- --10-31-55 662-883-U

Glenwood Telephone Company ---- -------- - ----------------------12-15-55

896-U

ELECTRIC
Georgia Power and Light Company --~------ -------------3-10-55 Savannah Electric and Power Company ----- --------- -- ------ 4- 7-55 Georgia Power Company ...-- I--------- ---- --- ----- ----------- 4-12-55 Georgia Power Company .... -- ----------- ------ --- ---------- - 7-55

None
780-U 794-U 878-U

GAS
South Atlantic Gas Company -- -- ...----------- ~ ----- ------- 4-25-55 Mid-Georgia Natural Gas Company --------- -------------------- 8- 4-55 Atlanta Gas Light Company ...~------- --- --------------------...--11-29-55 South Atlantic Gas Company ...---- --------- fc jp ------ -----.--,,.12-28-55

797-U 864-U 892-U 903-U

TRANSIT
Savannah Transit Company -- ...-- ...-- ,..------- --------- 6-16-55 Atlanta Transit System ..i.-- --------- _--:------------ .ro w 9-29-55

827-U None

OTHER MATTERS

Telephone, Electric, Gas

and Transit.

Name of Utility

Type of Order

Date of Order

Douglas Telephone Company Heat Content of Gas .....-- 1-13-55

Nelson-Ball Ground Telephone Co. Rule Nisi ---------------- 2-10-55

Blue Ridge Telephone Company Rule Nisi-- ------------ 10-20-55

Gas Utilities--General

Rule Nisi ----------- --- 12-15-55

Docket Number
None 763-U 884-U 905-U

Respectfully submitted, Matt L. McWhorter, Chairman Allen Chappell, Vice Chairman Walter R. McDonald, Commissioner James A. Perry, Commissioner Crawford L. Pilcher, Commissioner
217