Report of Georgia public service commission. Eighty-eighth report, 1960

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S T A T E OF G E O R G I A

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S* Ernest Vandiver, Governor

88th REPORT OF
GEORGIA PUBLIC SERVICE COMMISSION 244 Washington St., S.W. Atlanta 3 * Ga.
January 1 , I960 to January l, 196$

Matt L* McWhorter, Chairman Allen Chappell, Vice Chairman Walter R. McDonald, Commissioner Crawford L. Pilcher, Commissioner Ben T. Wiggins, Commissioner
A. 0. Randall, Secretary

BOUND BY THE NATIO NAL LIBRARY BINDERY CO. OF GA.

LETTER OP TRANSMITTAL
March 1 , 1961

BOUND BY THE NATIO NAL LIBRARY BINDERY CO. OF GA.

To His E x c e l l e n c y S, E r n e s t V a n d i v e r Governor of Georgia

Dear Governor:

We have the honor to submit the 88th Annual Report of the Georgia Public Service Commission for the calendar year January 1 , i960 to January 1 , 1961 in mimeograph form* The report will be incorporated in a
printed volume at a future date in accordance with pre vious practice.

Respectfully submitted,

LX A /
Matt L, McWhorter, Chairman

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Allen Chappell, Vide/Chairman

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Walter R# McDonald, Commissioner

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Crawford LL Pilcher, Commissioner

KB-e-n'S-zTSis.-&-TWi1Zi-lg-l gOinsX, CommJ/SSloner 1

LIBRARIES
OF GEORG''*

LETTER OF TRANSMITTAL
March 1 , 1961
To His Excellency S. Ernest Vandiver Governor of Georgia Dear Governor:
We have the honor to submit the 88th Annual Report of the Georgia Public Service Commission for the calendar year January 1 , I960 to January 1 , 1961 in mimeograph form* The report will be incorporated in a printed volume at a future date in accordance with pre vious practice.

88th ANNUAL REP CRT

introduction

As required by law the Georgia Public Service Com mission submits its Annual Report herewith covering the regulatory activities for the year ending December 31, i960.
The organization of the Commission remains unchanged since the last report* The present personnel and employees of the Commission are as follows:

Matt L. McWhorter, Chairman

Allen Chappell, Vice Chairman

Walter R. McDonald, Commissioner

Crawford L. Pilcher, Commissioner

Ben T. Wiggins, Commissioner

A. 0* Randall, Executive Secretary and Legal Aide

Robert W. Gerson, Assistant Executive Secretary

Mrs. Mae A. Montgomery, Reporter

Robert B. Alford, Chief Utilities Engineer

(vacancy)

Senior Utilities Engineer

Douglas N. Smith, Utilities Engineer

James S, Jackson, Junior Utilities Engineer

(vacancy)

Junior Utilities Engineer

(vacancy)

Chief Utilities Auditor

Frank G. Heald, Senior Utilities Auditor

Harold B* Chase, Utilities Auditor

Ernest R. Austin, Utilities Auditor

Chas. H. Hagerty, Junior Utilities Auditor David 0 e Benson, Transportation Rates Expert

J. Fred Parker, Senior Transportation Rate Specialists L. Thomas Doyal, Transportation Rates Specialist

Robert N. Fellows, Certificate and Insurance Supervisor

Donald J, Lawrence, Director Motor Carrier Inspection

and Enforcement*

(vacancy)

Transportation Rates Assistant

Mrs. Carolyn N. Baxley, Senior Stenographer Mrs. Lucene R. Boring, Senior Stenographer Larry L. Carpenter, Confidential Secretary Mrs. Martha J, Cannon, Intermediate Clerk (Emergency) Mrs. Mozelle Colquitt, Senior Stenographer

Page 1

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Mrs Burniece Daniels, Senior Stenographer Herbert R* Daugherty?*, Motor Carrier Inspector W. E. Doolittle, Motor Carrier Inspector Bobby Edmondson, Porter--Machine Operator A. J. Fort, Motor Carrier Inspector Miss Paula A. Fouche, Senior Stenographer Mrs. Peggy H. Hamby, Senior Stenographer James H. Hooks, Jr., Motor Carrier Inspector Mrs. Virginia R. Mann, Senior Stenographer Mrs. Emily Martin, Senior Stenographer Mrs. Doris Mills, Principal Stenographer Mrs. Sarah B. McGonigal, Senior Stenographer Mrs. Rubye D e Otwell, Senior Stenographer Mrs. Sara Phillips, Senior Stenographer Mrs. June Powell, Intermediate Typist Mrs. Marian Rountree, Receptionist Mrs. Hazel Turner, Intermediate Clerk T. S* Tyson, Motor Carrier Inspector
(tacancy) Motor Carrier Inspector
It will be noted from a comparison of the list of employees on December 31, i960 with the list shown on Dec.' 31 1959 in the last report, that during the year i960 there were six names omitted and eleven names added. Two employees re tired andfour resigned* Mrs Opal Magill, a Senior Stenographer with the Commission since 1933 retired in July, and Mr. H. E. Conley, Motor Carrier Inspector since 19A3, retired in September. Mrs. Doris G. Lane, Senior Stenographer, re signed in February and Mrs. Edna Murphy,Receptionist, resign ed in April. Mr. James L. St. John, Junior Utilities Engineer, who was granted six months military leave in April resigned, effective October 1st before his return from military duty. Mr. Alvin J. Rowe, who was promoted from Senior Utilities ^^cLi'tor to Gnief Utilities Auditor in September resigned from that position .in October to accept another position in Wash ington, D* C. The positions of Chief Utilities Auditor, Senior^Utilities Engineer and two positions of the Junior Utilities Engineer class remain unfilled for the reason that there have been no acceptable applicants for these positions. New full time employees added during the year are: Harold B. Chase, Utilities Auditor; Mr. Robt* W, Gerson, Assistant Ex ecutive Secretary; Mr. Herbert R. Daugherty,Motor Carrier In spector; Miss Paula Fouche, Senior Stenographer; Mrs. Peggy H. Hamby, Senior Stenographer; Mr. James H* Hooks, Jr., Motor Carrier Inspector; Mrs. Sara. Phillips, Senior Stenographer; Mrs. Marian Rountree, Receptionist, and Mr. James S. Jackson, Junior Utilities Engineer. Mr. Jackson has tendered his re signation, effective January 1, 1961 Two employees are pre-- TsTf ? ^ y .emply?d on an emergency basis. Mr. Ernest R. Austin, Utilities Auditor, and Mrs. Martha J.* Cannon, Intermediate Clerk.
Page 2 .

Motor Carrier Certificate and License Fees
The Commission is charged with the responsibility of collecting and accounting for motor carrier certificate and license fees. The total certificate and license fees collected and remitted to the State Treasurer during the calendar year of i960 are as follows:
Certificate fees at $35*00 each, and certificate transfer fees at $7*50 each - - - - - - - - -$ 2,565.00 Regular license fees at $25*00 each - - - - - - - -$2T0 ,950.00 Pickup and delivery fees at $1*00 e a c h ---------- $ 2 ,110.00 Reciprocal registration fees at $1.00 each - - - * . $ 24,790.00

Total

$240,415 .0 0

Motor Carrier Certificate Decisions

In previous reports an abbreviated, detailed list of all decisions on motor carrier certificate cases was car
ried. While the listing of these decisions is impressive it
is space consuming and has been discontinued in this report, but the following is a breakdown of the decisions by count for the year i960:

No. of new applications approved No. of new applications denied No. of new applications dismissed No. of new applications withdrawn No. of applications for transfer of
certificates approved No. of certificates cancelled No. of show cause orders issued
(not including show cause orders for lapse of insurance)
No. of certificates suspended for lapse of insurance coverage
No. of suspended certificates reinstated

6l 12 12 12
0 21 33
134 llS

Page 3.

Motor Carrier Enforcement

The Motor Carrier Inspection and Enforcement Divi

sion is that arm of the Commission which enables its members

to maintain a close watch on the activities of certificated

motor carriers domiciled within the state and to make cer

tain all carriers domiciled outside of the state, subject to

compliance with Georgia laws while engaged in nfor hire**

transportation within the state boundaries, are properly re

gistered with the Commission* In general, inspections are

made of carriers1 bills-of-lading to determine if proper

rates are being applied on shipments, and inspections of

vehicles are made to determine if the carrier is properly

complying with the safety rules promulgated by this Commis-

fi(?n,ran<^

^ e vehicles are properly registered with

this Commission as^provided by the lkw-v At the time of

these visits, the inspectors aid the motor carrier in com

plying with the Commission^ regulations by suggestions and

advice when they determine that the carrier is not abiding

by the prescribed rules and regulations* Reports from these

inspectors are^constantly being processed in the Atlanta Of

fice and when it is determined that a carrier has violated

the regulations to a degree that could place his certificate

in jeopardy then the carrier is requested to come to Atlanta

and discuss the discrepancies with Commission representatives*

In addition to the foregoing duties, the motor car rier inspectors conduct road checks in an effort to arrest,

prosecute and convict motor carriers operating without author--

ity from this Commission, Also, special investigations are conducted with shippers, motor carriers, and other interested Parties-: when reports are received of illegal operations in the^motor carrier industry* This present report covers the activities of the motor carrier inspectors from January 1,

I960 to Decem b e r 31, I960* During the above period there were

three full time m o t o r _c a r r i e r i n s p e c t o r s e m p loyed. On N o v e m -

9

Commission employed two additional men in an

effort to increase the activities in the enforcement field*
It must be remembered that during the calendar year I960 the

main workload was carried by the three regular motor carrier

inspectors as the two new employees were only in< sei'vibei'for two months and a portion of that time was used in training these employees.

During the year 602 heavy duty tractors, trailers, trucks and buses were inspected for mechanical condition and violation of the safety rules and regulations. When such unsafe conditions were found to exist the management of these
carriers were so advised and were required to ma.ke the repairs necessary and to so advise this Commission in the form of an affidavit,

...

Also, the inspectors made 1520 personal contacts

with carriers, shippers, receivers and other interested par--

Page

ties while conducting routine and special investigations* Routine calls on carriers included the checking of rates, vehicle condition, authority, G.P.S.C. tags and for com pliance with all Commission regulations governing the oper ation of their business which have been promulgated to pro tect the general shipping public, and develop a healthy motor carrier industry.
Routine investigations of carriers holding author ity from this Commission have resulted in 22 RulesHUis! be ing issued against carriers to show cause why their certifi cates should not be suspended and/or cancelled for failing to comply with Commission Rules and Regulations pertaining to rates, authority or safety violations. In addition, as a re sult of these routine investigations, during this period 76 motor carriers have been processed through this office and advised of the necessary steps to place them in compliance with Commission tariff and other regulations. In this respect the Inspection and Enforcement Department is grateful for the time, efforts, advice and assistance of the Transporta tion Rates Division*
During the last two months of i960 a special effort was made by this department to register all carriers oper ating solely in interstate commerce into, through and from the state of Georgia as required by our Motor Carrier Acts of 1931 The primary purpose of this law is to make sure that the motor carriers domiciled in other states that oper ate over the Georgia highways were properly insured and finan cially responsible if they were to become involved in an ac cident within the state of Georgia which would result in pro perty damage, injury or death to any of the citizens of this state. Further, such carriers are required to designate an agent for service so that they may be properly served within the state of Georgia* During this period this department has registered 538 of such carriers and this program of registra tion is continuing until all carriers operating over our highways are properly registered with this Commission.
Special investigations in general involved the checking of those performing unauthorized or illegal transportation, the apprehension and prosecution of such illegal operators and warning those shippers who aid and abet such operators by using their unlawful services* This department during the year i960 made 23 arrests of violators of the Motor Carrier Acts of 1931. Of these 23 arrests 14 have been convicted; o cases are presently pending before the courts, and one case was ,rno--billed" by the Grand Jury* These cases involved transporting in intrastate commerce without a certificate from this^Commission, violations of the Safety Rules of this Commission, and operating over the highways of this state in interstate commerce without first registering with
Further, the inspectors were directly responsible
Page 5 .

for the collection of $10,279*00 in motor carrier fees for licenses and indirectly responsible for the collection of several thousand dollars more remitted by mail*
Also, numerous shippers using the services of carriers were given letters of warning with copies of the Georgia law, which prescribes that the shipper who aids and abets violators is also subject to prosecution as a misdemeanor*
The present employees of the Motor Carrier Inspec tion and Enforcement Department are:
Don Lawrence, Director Rubye Otwell, Stenographer W. E. Doolittle, Inspector H. R. Daugherty, Inspector A. J. Fort, Inspector James H* Hooks, Inspector T. S, Tyson, Inspector
Reciprocity
At a meeting of the Reciprocity Committee of the Fourteen State Reciprocal Agreement at Savannah, Georgia in April of i960, the State of Missouri was admitted as a party to the agreement, and the name of the agreement was changed to the "Multistate Reciprocal Agreement." It was also decided to appoint a special committee to rewrite the agreement for later consideration, and a committee was ap pointed by Chairman Walter R. McDonald, consisting of three members, to-wit: George G, Cline, Secretary of the Indiana Public Service Commission and the Indiana Reciprocity Commis sion, Chairman, with Jesse Dillon, member of the Virginia Corporation Commission, and A. 0. Randall, Secretary of the Georgia Public Service Commission, and to request the Chair man of the Southeastern Regional Group of N.A.A.M.V.A. to appoint two additional members Two additional members were accordingly appointed, to-wit: Floyd Murphy, Assistant Revenue Commissioner of the State of Tennessee, and Joe Gar rett , Assistant Revenue Commissioner of the State of North Carolina* The revised agreement recommended by this special committee was submitted at a meeting of the full committee
all member states in Atlanta, Georgia, on November 18 , I960, and, after much discussion, and some changes the full committee unanimously approved a revised form of the agree ment which provided very few material changes, the most im-
Page 6

portant of which enlarged the definition of the base of a vehicle and place of business provisions, provided for full reciprocity for buses, set up administrative proce dure for interpretation of the agreement and deciding questions at issue between the Contracting Jurisdictions* It also provides a simplified method whereby .other Juris dictions may become parties to the agreement*
Page 7 .

TRANSPORTATION

General

While the number of formal proceedings processed through the Transportation Rates Division in i960 was not as high as that of 1959, the substantial increase in tariff compilations, freight bill auditing
and rate education programs kept the workload of the Transportation Rates Division at a high level in i960. As has been the case to an increasing extent in recent years, service complaints this year consumed a large
portion of our staff*s time, but in spite of this demand on the Commis
sion s small transportation rates staff, we officially disposed of, in
addition to the formal proceedings listed below (almost all of which were subject of written opinions), 395 transportation rate and service
matters, a considerable number of which required lengthy studies and investigations in the field.

FORMAL CASES FOR YEAR i960

SSSjffi, No> jfete

^"51-R

3-9-60

Subject

Disposition

Application of Seaboard Air

Approved

Line Railroad Company for author

ity to discontinue agency service

at Mt. Vernon, to discontinue the

handling of less-carload ship

ments at Mt. Vernon and to dis

mantle the station building at

that point

452-R

3-9-60

Application of Railway Express Agency, Inc., for authority to close the express office at Mt. Vernon, contingent upon the closing of the railroad agency at that point

Approved

^5-R

3-25-60

Application of Georgia Railroad Approved for authority to discontinue agency service at Woodville

457-R
1st Supt.
1478-M

4-12-60 4-13-60

Protest of motor carriers of fresh meats and packing house products against proposed reduced rail rate on such com modities from Moultrie to Augusta

Protest withdrawn

Application of principal bus

Denied

lines for authority to increase

Georgia intrastate fares to a

maximum of 2.8875 cents per mile

Page 8

dnaar

FORMAL CASES FOR YEAR i960 (Continued)

Docket No. 446-R

Date
4-14-60

Subject

Disposition

Application of Georgia Southern Approved and Florida Railway Company for authority to discontinue agency service at Lake Park, to discon tinue handling less-carload ship ments at Lake Park and to dis mantle the station building at that point

449-r

4-14-60

Application of Georgia Southern Approved and Florida Railway Company for authority to discontinue agency service at Lenox, to discontinue handling less-carload shipments at Lenox and to dismantle the station building at that point

450-R

4-14-60

Application of Railway Express Agency, Inc., for authority to close the express office at Lenox, contingent upon the closing of the railroad agency at that point

Approved

453-R 454-r 1281-M 1623-M

4-14-60 4-14-60 5-l6-60 5-31-60

Application of Southern Railway Approved Company for authority to discon tinue agency service at Maysville, to discontinue handling lesscarload shipments at Maysville and to dismantle the station building at that point

Application of Railway Express Agency, Inc., for authority to close the express office at Maysville, contingent upon the closing of the railroad agency at that point

Approved

Application of Class "A" Motor Consolidated hearCarriers of Property for author- ing authorized ity to consolidate pending hearings on investigation into charges on small shipments with application of such carriers for increased rates and adjusted minimum charges

Application of principal bus lines for authority to apply "Density Factor Formula" to bus express rates

Approved

Page 9

FORMAL CASES FOR YEAR I960 (Continued)

Docket No
419-R
lAth Supt. 9508-a

Date
6-27-60

Subject

Disposition

Application of rail carriers

Reduced rate pre

for exception to prescribed

scribed at level

scale and the authorization

different from

of reduced rate on petroleum

that proposed

products from Savannah to Doctor-

town.

1721-M 1725-M

6-27**80

Application of Southeastern Motor Lines, Inc*, and South eastern Greyhound Lines for authority to increase commuta tion fares between all,points on the line of Southeastern Motor Lines and between points on the lines of Southeastern Greyhound Lines which are com petitive with Southeastern Motor Lines

Approved

1st Supt*
190-R

7- 12-60

Revision of definition of intra- Definition

plant switching

clarified

460- r

7-12-60

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

Approved

461- r
458-R

7-12-60 7-21-60

Application of Seaboard Air Line Withdrawn after

Railroad Company for authority agreement reached

to acquire by condemnation cer with property

tain property needed for right- owner following

of-way at Howells

hearing

Application of Georgia Railroad Approved for authority to discontinue agency service at Rutledge

ii-59-R

7-21-60

Application of Railway Express Agency, Inc., for authority to close the express office at Rutledge, contingent upon the closing of the railroad agency at that point

Approved

1156-M

7-26-60

Application of Motor Carriers of Property for authority to cancel tariff provision requir ing observance of interstate rates as maximum

Cancellation approved for a trial period of one year

Page 10

FORMAL CASES FOR YEAR i960 (Continued)

Docket No.
3rd Supt. 121-M

Date 7-26-60

Subject

Disposition

Application of Class "A" Motor Carriers of Property for increase of nine per cent in rates on all LTL and AQ class rated shipments weighing less than 5>000 pounds and for adjustment of flat minimum charge

Rate increase approved with exceptions as to textile pro ducts and action on minimum charge adjustment deferred

1st Supt. 373-R

10-24-60

Complaint against "dualized" operation of Central of Georgia Railway agencies at Greenville and Luthersville

Full-time agency service ordered restored at Green ville effective December 1, i960

2nd Supt. 378-R
1st Supt. 434-R
435-R

II-I6-60 II-I6-60 II-16-60

Complaint against "dualized" operation of Central of Georgia Railway agencies at Greenville and Luthersville

Effective date of restoration of full time agency service at Greenville post poned to January 1, 1961

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

Approved upon review
of operating results of additional 12 month test period

Application of Railway Express Agency, Inc., for authority to close the express office at Byron, contingent upon the closing of the railroad agency at that point

Approved

455-R U56-R 465-R

II-16-60

Application of Southern Railway Denied with proviCompany for authority to discon- sion for review tinue agency service at Martin, after 12 months to discontinue handling LCL ship ments at Martin and to dismantle the station building at that point

II-16-60

Application of Railway Express Agency, Inc., for authority to close the express office at Martin, contingent upon the closing of the railroad agency at that point

Denied

II-I6-6O

Application of Southern Railway Denied with provi Company for authority to discon sion for review tinue agency service at Molena, after 12 months to discontinue handling LCL ship ments at Molena and to dismantle the station building at that point
Page 11

Docket 466-R 469- R
470- R 471-R
472-R 473-R
474- R
477-R

FORMAL CASES FOR YEAR i960 (Continued)

Pate 11-16-60

Subject
Application of Railway Express Agency, Inc., for authority to close the express office at Molena, contingent upon the closing of the railroad agency at that point

Disposition Denied

H - I 6-60

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

Approved

II-I6-60 H - I 6-6O

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

Approved subject to provision for maintenance of certain pick-up and delivery ser* vices at Haddock

Application of Seaboard Air

Approved

Line Railroad Company for author

ity to discontinue agency ser

vice at Manassas, to discontinue

handling LCL shipments at

Manassas and to dismantle the

station building at that point

11-l6-6o

Application of Seaboard Air

Approved

Line Railroad Company for author

ity to change the governing

agency for the non-agency sta

tions of Hiram, Floyd and Powder

Springs from Dallas to Atlanta

H - I 6-60

Application of Atlantic Coast Denied with provi-
Line Railroad Company for author-sion for review ity to discontinue agency ser- after 12 months vice at Ochlochnee

II-I6-6O

Application of Railway Express Agency, Inc., for authority to close the express office at Ochlochnee, contingent upon the closing of the railroad agency at that point

Denied

11-21-60

Application of Georgia railroads Approved for publica-

for authority to increase on tion on not less than one day's notice rates on car- 15 days* notice and

load shipments of pulpwood and provided that such

wood chips (pulpwood) to the

increases are not

same extent as authorized by

made effective prior

the I.C.C. in Ex Parte 223

to the date similar

increases are made

effective in the States

Page 12

of Florida and South

Carolina

Docket 467-R
468-R
4?8^r
Supt.
378-R

FORMAL GASES FOR YEAR I960 (Continued)

Pa`<:e 12--6-60

Subject

Disposition

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

Denied with, provi--
sion for review after 12 months

12-6-60

Application of Railway Express Agency, Inc., for authority to close the express office at Gray, contingent upon the closing of the railroad agency at that point

Denied

12-16-60

Application of Central of

Approved

Georgia Railway Company for

authority to totally discon

tinue agency service at Luthers-

ville

BUS FARES AM) SERVICES
By order dated August 6, 1959 the Commission denied application of the principal bus carriers operating within the State for increase in one-way bus fares from the existing 2.625 cents per mile to 2.8875 cents per mile, and for increase in minimum one-way bus fares from 25 cents to 30 cents - that denial being based on the finding that the bettering of economic conditions generally had resulted in the operations of all the applicant bus lines showing an improvement in the first frqi-p of 1959 as compared with the same period in 1958 and that no reason had been shown why a greater return should be allowed the passenger carriers than the other classes of motor carriers and that the overall return to the appli cants under the present fares appeared to be adequate.
By petition received August 19, 1959 the Greyhound Coiporation (Southeastern Greyhound Lines Division) filed petition for rehearing and reconsideration of the Commission's denial and petitioning reopening of the record to receive further evidence. Similar petition was filed on behalf of Atlantic Greyhound Corporation. Both petitions alleged that the Georgia intrastate operations of these carriers were being conducted at a loss and that if the proceeding were reopened as requested specific evidence would be presented to substantiate this claim. The two Georgia applicants presented at the hearing revenue and cost statistics alleging for the year 1958 on Georgia intrastate traffic a net operating income of $25,948 for Southeastern Greyhound and a net operating loss of $19,185 for Atlantic Greyhound. These statistics contained allocations of expenses between interstate and Georgia intrastate traffic which were considered by the Commission to be "unrealistic - particularly in the area of station expenses where allocations were made on a basis other than the manner in which such expenses were incurred - and adjustments in the carriers' cost studies to reflect the proration of expenses on the basis contended by the Commission to be more truly representative of intrastate costs changed the Georgia intrastate operational showing for these two Greyhound appli cants to a net operating income of $69,020 for Southeastern Greyhound and a net operating income of $15,043 for Atlantic Greyhound. Corresponding
Page 13

adjustments to similar statistics presented by the applicants for the year ended September 30, 1959 (which statistics were adjusted by the applicants to reflect for that full period the cost of wage increases incurred effective November 1, 1959) changed the indicated Georgia intran state net operating income of Southeastern Greyhound from $153,589 to
and tlle Perating income of Atlantic Greyhound from a deficit of $256 to a net operating income of $35,222. Adjustments in methods of projecting annual revenues from test period results would still further increase these carriers* indicated operating incomes from Georgia intra state traffic. Tamiami Trail Tours, Inc., submitted a similar revenue and^ cost study in which the proration of expenses were made on the same basis as that used by the Commission in its adjustment of the Greyhound statistics and on such basis Tamiami Trail Tours' Georgia operations were shown to have earned a net operating income of $52,857 during the year ended June 30, 1959.
In view of the fact that this proceeding was reopened as result 01 specific allegations of the Greyhound applicants that the Georgia opera tions of those carriers were being conducted at a loss but that no such showing was made, and in view of the further fact that the operational results of all of the carriers as presented at the reopened hearing were appreciably better than shown in the original proceeding wherein the general increase was denied, the Commission reaffirmed its original order in the proceeding and again denied the fare increase sought.
As was recognized in the general fare increase cases this year and last year, Southeastern Motor Lines, Inc., was in serious need of additional revenues to permit continuation of operations - the line having operated at a loss for eight of the past nine years. Much of the revenue of Southeastern Motor Lines is obtained from commutation fares anr? in fln effort to secure the needed additional revenue that line made application on May 25 to increase commuter fares generally between points on its line and to increase its minimum commuter fare from 19 cents to 22 cents. On June 1, Southeastern Greyhound Lines made application for authority to make similar increase in commuter fares between all points served by both Southeastern Greyhound Lines and Southeastern Motor Lines and to discontinue the sale of 20-ride commuter book tickets between Atlanta and Villa Rica and intermediate points - Southeastern Greyhound Lines operating commuter service between Atlanta and Villa Rica via the same route as that operated by Southeastern Motor Lines between the same points. It was developed that commutation traffic produced 35.3$ of the total operating revenues of Southeastern Motor Lines and that the increase in commuter fares sought by that line was necessary to insure the continued provision of the commuter service which is important and necessary to the public of the affected area. The Commission considered the total lack of opposition to the proposed increase to evidence recog nition by the public of the need of Southeastern Motor Lines for revenues adequate to enable it to continue to operate the transit-type service it has long provided and approved the proposed increased fares* In view of the direct competition between Southeastern Motor Lines and Southeastern Greyhound Lines between Villa Rica and Atlanta and in view of the arrange ment in effect for mutual honoring of each line's tickets, the Commission found it impossible for Southeastern Motor Lines to realize any appreciable additional revenues from the increased fares unless Southeastern Greyhound was permitted to make similar adjustment in its fares to the extent that its service was competitive with that of Southeastern Motor Lines and, accordingly, authorized Southeastern Greyhound Lines to make effective similar increases in commutation fares between the points where its service is directly competitive with that of Southeastern Motor Lines.
Page lb

By application dated September 3/ 1959/ the principal bus lines sought authority to establish a "Density Factor" to be used in the deter mination and computation of charges for the transportation, in package express service, of certain commodities classified by the carriers as ''Bulky Articles" - such commodities including such articles as air filters fluorescent tubes or tubing, vacuum tubes, plastic products, pop corn and grains, potato chips, stuffing material used in upholstery, etc. It was contended by the applicants that space available on buses for express hauling is limited and that the application of charges determined under a "Density Factor" theory would be more equitable - those shippers ship ping light and bulky articles being required to pay higher charges com mensurate with the space their packages occupy on the bus. Under the proposal the "Density Factor" would be the equivalent of one pound for each two hundred cubic inches with such computed weight to be applied in lieu of the actual weight of the package where greater. The Commis sion reaffirmed its previous finding that the limited space available on a bus for the transportation of bus express demanded that the bulk occupied by a shipment be given substantial consideration in deter mining the level of charges on individual commodities - the double rate previously authorized by the Commission to apply on certain articles being designed to implement that finding. The Commission further found that the "Density Factor" formula proposed would accomplish the same purpose and would result in a more refined method of determining the extent to which individual bulky articles should bear costs related to the space occupied and, accordingly, approved this revised method of computation of bus express charges.
TRUCK RATES
As was discussed in last year*s report the Commission in 1959 instituted investigation into the level of charges applied by the Class "A" Motor Carriers of Property on shipments weighing 100 pounds or less moving between points within the State of Georgia - that investigation being incorporated into the pending Docket 1281-M concerning motor carrier application for increase in freight rates and charges with the decision in that phase of the docket being deferred pending the completion of such investigation. By petition dated May 5 of this year, the Class "A" Motor Carriers of Property amended their outstanding petitions in Docket 1281-M to seek in lieu of the increased rates formerly sought therein a nine per cent increase on all less-than-truckload and any quantity rates shipments weighing less than 5/000 pounds and a revised flat minimum charge struc ture ranging from $2.30 for a shipment weighing 25 pounds and less to $3.75 for a shipment weighing 200 pounds and over. Hearing was held on June 7 on both the investigation and increased rate phases of this Docket and extensive statistics were submitted by the Class "A" Motor Carriers of Property supporting from a cost standpoint the level of rates sought and the proposed adjustment in minimum charges. Additional statistics were introduced showing the unfavorable results of operation of the Class "A" Motor Carriers of Property and the substantial increases in cost incurred since the last increase in rates was granted to these carriers. The Commission, in recognition of the need for increased revenues to permit continuation of needed freight services by the regular route carriers, authorized such carriers to increase generally to the interstate level their rates on LTL and A.Q, shipments weighing less than 5/000 pounds subject to certain exceptions as to textile pro ducts but withheld pending completion of the overall small shipments investigation, approval of the proposed adjustment in minimum charges and approval of a tariff submitted by the Class "A" Motor Carriers of Property designed to establish certain "package" rates and rules to apply on such "package" shipments.
Page 15

By application filed in 1956 and made the subject of two hear ings in 1957 and one hearing last year, the Class "A" Motor Carriers of Property sought authority to cancel from their tariff a provision requir ing the observance as maximum on Georgia intrastate traffic interstate rates to or from points beyond intermediate Georgia points. This provi sion has been a constant source of difficulty to the carriers and to the Commission - the multiplicity of interstate rates and the ambiguity of the application of those rates via given routes having caused consider able argument between the carriers and shippers and claim bureaus as to the proper interpretation and application of the item. The principal use of the item had been by various claim bureaus in filing claims claims often based on distorted and, in many cases, outright unreasonable applications of the item. The motor carriers tendered various examples of unreasonable applications of this provision, contending that not only was the provision of little real benefit to the shippers at a compara tively great cost to the carriers in handling claims based thereon but that the provision actually permitted evasion of this Commissions regulatory powers by requiring interstate rates to be automatically applied on Georgia intrastate traffic without finding of reasonableness of such rates by this Commission. Opposition to the proposed cancella tion contended that to fail to recognize the interstate rates as maximum at intermediate Georgia points would discriminate against those Georgia points - such contention failing to recognize, however, that such provi sion merely transferred the discrimination against intermediate Georgia points to other Georgia points to which there were no such beyond inter state rates published. Further objection was expressed that the provision was an aid to the shipper in not requiring as close check of the con stantly changing interstate rate situation as would be otherwise required. The Commission found that the continued existence of this provision had always been an anomaly for the reason that it required observance on Georgia intrastate traffic of an intermediate rule as to interstate rates, while there was no such corresponding intermediate provision as to intra state rates and that the evils inherent in the provision and the continued abuse which had been made thereof outweigh its benefits to the shipping public. Several modifications of the provision were considered but all found to have disadvantage of being wordy and complicated and to eventu ally be subject to as much dispute and controversy as the present provi sion. Under the circumstances, the Commission authorized cancellation of this intermediate provision for a trial period of one year, subject to adequate compliance of the Class "A" Motor Carriers of Property with their firm commitment to make specific publication of Georgia intrastate rates no higher than beyond interstate rates where the conditions warrant and to make such adjustments with reasonable speed - jurisdiction being retained in the proceeding in order that the Commission might give further consideration to the matter if such procedure did not adequately insure the public interest.
RAILWAY EXPRESS
Although there were no general increases in Railway Express rates authorized this year, there was received in November an application from the Agency for authority to assess a charge of 20 cents per lesscarload shipment of one or more packages or pieces in addition to all other applicable charges on such shipments - such intrastate application being the counterpart of increases filed to become effective on interstate traffic on January 1961. The Commission declined to approve the pro posed increase without justification therefor at public hearing and will assign the matter for such public hearing early next year.
Page 16

The Railway Express Agency continued during this year its
accelerating program of discontinuing local offices at the smaller towns. As in the past most of such applications were filed because the railroads had filed applications to discontinue their agencies at the same points the railroad agent also operating the express office -* with the Express Agency applications being generally contingent upon approval being given to the railroad applications. Of the contingent applications filed during the year the Express Agency was permitted to close its offices at Byron, Lenox, Maysville, Mt. Vernon and Rutledge but the need shown for railroad agency operations at Gay, Martin, Molena and Ochlochnee resulted in the contingent Express applications involving those points being denied.
Two separate applications to close the Express offices at Barwick and Haddock were approved during the year with the approval of the closure of the Haddock office being conditioned on the provision by the Railway Express Agency of certain pick-up and delivery service to an industrial plant located at that point.
As was discussed briefly in last year's report a new agreement was reached between the railroads and the Express Agency providing for continuation of the Agency on an independent status with it purchasing its transportation requirements from such carriers as it deemed best suited for its own purposes and paying all such carriers, including the railroads, a contracted rate for such services. A new president was appointed early last year and there resulted an extensive overhauling of the Agency's operation, personnel and services coupled with a sweep ing program of expense reduction. The new Agency is aggressively pro moting its service and is seeking to improve those services where exist ing common carrier operations are not adequate to provide the type and frequency of line-haul transportation required. Of importance to the State of Georgia in this changed concept of operations is the proposed extension of the Agency's intercity motor carrier operations. Some limited motor carrier operations have been conducted by the Agency for a number of years but those operations were generally limited to areas where passenger train service had been discontinued and other available services were totally inadequate. Applications filed this year, however, seek for the Express Agency motor carrier certificates between major points such as Atlanta and Macon where there are numerous common carrier rail and motor operations already in existence. These applications involve not only the improvement of service to Railway Express customers but also the threat of loss of traffic to competing modes of transporta tion and the loss of Express revenues to the passenger trains operated between the same points - those revenues often being vital to the con tinued operation of such passenger trains. No decisions have yet been rendered on such applications - the Commission making very extensive and careful investigation of what could be applications of tremendous impact on common carrier operations in this State.
RAIL PASSENGER SERVICE
As was discussed in last year's report the Commission on August 6, 1959 declined to approve the application of the Central of Georgia Railway Company for authority to discontinue operation of its Passenger Trains Nos. 17 and 18 (The Flamingo) between Atlanta and Albany - such denial being predicated upon finding that the financial condition of the applicant had shown considerable improvement over the previous year and that its need to effect economy was not as urgent as it was during the test period shown in that proceeding - the indicated loss of approximately $50,000 per year from the operation of the two
Page 17

Flamingo trains not appearing to the Commission to be sufficient to justify their discontinuance* It -was further found that there was ques tion as to whether or not the full extent of the claimed losses would be saved if the trains were discontinued, particularly in the area of terminal expense allocations (which allocations had been consistently rejected as savable expenses by the Interstate Commerce Commission in comparable interstate proceedings) and the still further finding that there appeared to be other manners in which appreciable savings could be effected in the operating costs of these trains.

The Central of Georgia Railway Company this year renewed its petition to discontinue operation of these trains, alleging that its operating losses were not Justified by the need for and use of these trains. Hearing was held in November, at which a number of interested citizens appeared in opposition and decision is expected early in 1961.

Although the impact has been felt only to a very limited degree in Georgia, the provision of the Transportation Act of 1958 transferring to the Interstate Commerce Commission Jurisdiction over most passenger train services has resulted in a wave of passenger train discontinuances throughout the Nation. Numerous individual trains have been dropped by railroads throughout the country and some railroads in the East have been permitted to totally discontinue passenger train services on their lines - some of those roads having formerly operated an appreciable amount of passenger train service. Loss of connecting trains can have no other result than continued drop in long-haul passenger train riding and it is possible that the impact of such major discontinuances of services will be felt in Georgia within the not too distant future.

RAIL FREIGHT

In June the Commission authorized one of the few departures

it has permitted from the scale of maximum and mipinrum rates prescribed

for application on the movement of petroleum and petroleum products in

bulk between points within the State of Georgia for distances of 200 miles

and less. There is a substantial movement of fuel oil from Savannah to

the plant of Rayonier, Inc , at Doctortown and the railroad serving the

plant requested relief from the prescribed scale in order to enable it

to meet the threatened competition of proposed natural gas supply qnfl

of movement of fuel oil from Jacksonville via tank truck. It was shown

at the hearing that while the threat of competition from natural gas was

too remote to now be considered as a competitive influence it was practi

cal to divert the movement to private tank trucks which, in an around-

the-clock operation, could effect substantial savings for the industry.

In consideration of this competitive influence, and in view of the fact

that the movement is all now by rail with no participation therein by

protestant motor carriers, the Commission authorized the publication of

a reduced rate subject to movements in multiple lots of four or more car loads and in tank cars of not less than 12,000 gallon capacity - the

authorized rate being based not on what was shown by the industry as its

estimation of motor carrier costs, but on an adjustment of such statistics

to include factors which, in the Commission* s opinion, had not been given

adequate weight by the industry. The Commission specifically held that

its approval of this rate adjustment to meet private carrier competition

where the private carrier operation was contemplated on an

around-

the-clock basis such as was here apparently feasible, would not set a

precedent for further departures from the Commission*s prescribed scales

where there did not exist similar abnormal circumstances - the Commission*s

Page 18

conclusion being that to deny an adjustment in this instance would only precipitate the loss of this traffic to all regulated transportation, thereby not only further crowding the State1s highways but also removing the contribution made by this large movement to the overall costs of the railroads operating within the State of Georgia.
During the year there arose question as to the application of the Commission1s intra-plant switching rule and it was found that the definition of intra-plant switching as contained in the Commission's Railroad Freight Rule No. 21 was defective in that it did not specifically include intra-plant switching movements between locations on the same track within the same plant or industry. The Commission had always intended that such movements be included in the intra-plant switching provisions and since there have undoubtedly been a considerable number of such movements in this State and no complaints from "Hie shippers involved, the railroads have apparently been handling such movements at the intra-plant switching charge, even though there has been no specific authorization therefor in the Commission's terminal switching rule. It was obvious, however, that the rule needed clarification to remove all doubt as to the application of proper charges on this type of terminal switching and, accordingly, the Commission's Railroad Freight Rule No. 21 was amended to change the definition of intra-plant switching to read as follows:
INTRA-PLANT SWITCHING: A switching movement from one location to another location on the same track within the same plant or industry or from one track to another track within the same plant or industry.
During the year the railroads obtained from the Interstate Com merce Commission in Ex Parte 223 authority for further increases in inter state rates and charges. Petition to make applicable in the State of Georgia similar increases in rates and charges was filed in November and public hearing begun on such petition on December 15. It was not possible to complete the hearings during this year and further hearing was assigned for specific phases of the case on February 2 of next year.
RAIL AGENCY SERVICE
During the year the railroads continued their program of seeking discontinuance of agency services at the smaller stations. This year the Commission processed applications involving 15 stations and as has been the case in the past most of these applications were based on the allega tion that the type and volume of traffic handled at the involved stations was such as to no longer justify the continuing increase in cost of main taining agency service - particularly in the light of the decline in rail road operating revenues generally. As has been its custom, the Commission adhered to its policy in deciding such applications on the need for and use of the service rather than solely on the statistical showing of reve
nues versus cost. Of the lh applications processed during i960 the Com
mission found that the public convenience and necessity of the affected areas would not be adequately served without agency service in four instances and accordingly denied authority to discontinue agency service at Gray, Martin, Molena and Ochlochnee. Authority was granted to discon tinue agency service at Byron, Lake Park, Lenox, Manassas, Maysville, Mt* Vernon, Rutledge, Shellman and Woodville.
Page 19

There were no additional applications filed during the year of

the type in which the railroad proposes to operate two adjacent agency

stations with one agent by providing part-time service at each station.

In general, such "dualized" operations established under authority of

this Commission have proven to afford satisfactory service to the stations

involved at a cost more nearly commensurate with the work required. How

ever, it did develop during the year that due to heavy increase in the

volume of traffic at one station involved in such a "dualized" operation

inadequate service was being provided to the users of the agency facili

ties at that station. Accordingly, the Commission in December, after

further consideration of the levels of traffic involved, ordered the

Central of Georgia Railway to reinstate full-time agency service at Green

ville - a station which had been formerly "dualized" with Luthersville.

The Central of Georgia Railway recognized the need for full-time agency

service at Greenville but contended that its traffic at Luthersville had

diminished to the point where it should be permitted to totally discon

tinue service at that agency, thus eliminating completely the former

"dualized" operation by restoring the agent to full-time service at

Greenville and eliminating service at Luthersville entirely. Public

hearing on the matter substantiated the railroad* s claim such authority was granted.

in December

There are a number of railroad stations in the State which have no agency service, the clerical duties for which are performed by so-called "governing" agencies. The "governing" agencies are assigned by the rail roads involved and there is rarely any change in such assignments. This year, however, the Seaboard Air Line Railroad Company sought to change the governing agency for the non-agency stations of Hiram, Floyd and Powder Springs from Dallas to Atlanta on the grounds that the shipping public would be more adequately served through the Atlanta agency - the Atlanta agency maintaining 3-hours longer business hours Monday through Friday and, unlike Dallas, being open all day on Saturday. In considera tion of the fact that the principal user of this service at Hiram supported the application, while no one opposed the application, the Commission authorized the transfer of the governing agencies.

WESTERN & ATLANTIC RAILROAD

On January 22 members of the Commission and the Commission* s staff accompanied members of the General Assembly on the annual inspection of the Western & Atlantic Railroad properties. As has been regularly the case for many years the property of the railroad was found to be maintained in fine condition with the track and roadbed in excellent shape and com parable to that of the best Class I Railroads.

The annual report of the lessee of the Western & Atlantic Rail road for the calendar year i960 shows for the net expenditures charged to the accounting classification "Additions and Betterments" by classes of railroad property, the following amounts:
Improved track materials.......... $15,777.18 Bridges, trestles and culverts.... 16,475.28 Yard tracks and sidings. ..... . 5,6ll.40 Land for transportation purposes.. 250.00 Communication facilities...... . 2,175.20 Signals and i n t e r l o c k e r s , , 150.16 credit Station and office buildings...... 12,929.84

Page 20

The above net additions reported are after deduction for value of property replaced during the year and total $53,068.7^-. The net capital expenditures made by the lessee for additions and improvements to the Western & Atlantic Railroad from the beginning of the lease in 1919 through December 31* i960, amount to $7,991*825.
During the year there was filed with the Interstate Commerce Commission three proposals for consolidations and/or control of railroads which could have an effect on this State-owned property. The first such proposal was the application to merge the Atlantic Coast Line Railroad and the Seaboard Air Line Railroad. This proposed merger, while not at the present directly affecting the Western and Atlantic Railroad, would change the patterns of traffic movements which could ultimately affect interchange movements over the State Railroad. Further discussion of this proposed merger, in which the Commission has intervened to protect the interests of the affected areas in Georgia, is discussed in more detail in a following section of this report. The second proposal seeks control of the Central of Georgia Railway and its common carrier subsi diaries by the Southern Railway Company. The lessee of the State-owned railroad has indicated that this merger could, unless proper safeguards are required, seriously adversely affect the volume of traffic inter changed at Atlanta and moving over the Western & Atlantic Railroad. The Commission has likewise intervened in this proceeding for the purpose of protecting both the State-owned property and the interests of the citizens of Georgia affected by the proposed control application. The third pro posal involves the application of the Illinois Central Railroad to force the Atlantic Coast Line Railroad Company to divest its control of the Louisville and Nashville Railroad and to transfer that control to the Illinois Central Railroad. This proposal, of course, directly involves the lease of the Western & Atlantic Railroad to the Louisville and Nash ville Railroad and this Commission has likewise intervened in this pro ceeding in order to protect the State-owned property.
PARTICIPATION IN INTERSTATE TRANSPORTATION CASES
The Commission has participated extensively during the year in proceedings before the Interstate Commerce Commission involving transporta tion matters affecting the State of Georgia.
As discussed briefly in last year* s report the Central of Georgia Railway Company and the Savannah & Atlanta Railway Company sought authority to abandon certain tracks in Chatham, Effingham, Burke and Screven Counties. In consideration of a number of protests received from interested parties in the affected areas, this Commission intervened in the proceeding in opposition to the applications on behalf of the citizens of Georgia who would be adversely affected by the proposed abandonment. Public hearing was held during the week of March 28-April 1 in Augusta, Georgia, at which time there was extensive opposition expressed by the public of the affected area to the proposed abandonments. On June 28, the Interstate Commerce Commission1s Examiner issued a proposed report recommending approval of the abandonment of the Central of Georgia Railway Company* s tracks in Chatham and Effingham Counties but recommending denial of the proposed abandonment of the Savannah & Atlanta's tracks in Burke and Screven Counties. Vigorous exceptions were filed by the applicants to this pro posed report and order, the applicants contending that the proposal was so interrelated to be economically impossible of effectuation in part and contesting the Examiner's finding that "The Georgia side of the Savannah River has great potential for industrial development and the S & A 's line is located strategically with respect thereto". This Commission joined
Page 21

in filing answer to the applicants' exceptions in which we indicated that, while this Commission did not agree with the Examiner in his recom mendation of approval of abandonment of the Central of Georgia Railway line, this Commission firmly supported his finding as to denial of aban donment of the Savannah & Atlanta Railway line* A representative of the Commission appeared at the oral argument in December in further opposi tion to the railroads' efforts to overturn the order of the Examiner. At the close of the year no final action had been taken by the Interstate Commerce Commission on these applications.
During last year the Receiver of the Tallulah Palls Railway Company was directed by the Federal Court to seek authority from the Interstate Commerce Commission to abandon its entire operations. Such authority was sought and public hearings were held in Gainesville during December of last year. In consideration of many protests from the affec ted area this Commission intervened in the proceeding in opposition to the proposed abandonment and actively participated in the Gainesville hearing - presenting witnesses from the affected towns. While it was recognized that the Tallulah Falls Railway Company had long been opera ting at a loss, this Commission emphasized the need of the area for its services - particularly in view of a new industry located on the line, which industry is of great importance to the area - and urged that the Interstate Commerce Commission at least deny authority to abandon the Georgia segment of the line in recognition of the allegation of the operators of the Tallulah Falls Railway that the abandonment of the North Carolina segment would permit operation of the Georgia segment without out-of-pocket loss. The North Carolina representatives at the hearing quite understandably objected both to the abandonment of the entire line and to abandonment of the North Carolina segment, and strongly emphasized the need of Western North Carolina for the services of this railroad. In spite of our strenuous objections, however, the Interstate Commerce Commission's Examiner on June 27 issued a proposed report and order in which was recommended the abandonment of the entire railroad. The Commission joined with other interested parties in filing strenuous objection to this proposed report, pointing out that the only party desiring abandonment was the Southern Railway Company, whose status was only that of creditor and that the claimed unsafe condition of the line did not exist in the opinion of the officials of the road and the employees operating over the road. In spite of all objections, however, the Interstate Commerce Commission on November 17 adopted the recommenda tion of its Examiner and authorized the abandonment of the Tallulah Falls Railway Company.
There was discussed at some length in last year's report the controversy between Seatrain Lines, Inc. (a coastwise water carrier transporting freight on ships in railroad box cars) and its railroad con nections concerning relationship of all-rail rates and rail-water-rail rates between points in Georgia and points in the Northeast. In support of formal complaint filed by this Commission and others seeking adjust ment of the rail-water-rail rates to the level necessary to permit con tinued operation of Seatrain Lines, Inc., to and from the Port of Savannah this Commission led the presentation of complainants at public hearing in Washington, D. C. beginning on December 15 of last year. On January 5-7 further hearing was held in Savannah for the purpose of permitting the defendants to present evidence and testimony. Strenuous opposition was expressed by the defendants at that hearing to any establishment of railwater-rail rates differentially lower than corresponding all-rail rates. Fortunately for the Port of Savannah, however, the Interstate Commerce Commission on April 19 ordered the railroads to adjust their rates to
Page 22

and from the ports involved to the level 'which would permit Seatrain Lines, Inc*, by corresponding reduction in its own rates, to maintain the same differential under the old rail rates which had existed prior to the adjustment in all-rail rates which, precipitated the complaint* Although the railroads sought reconsideration -- to which this Commission and the other complainants vigorously objected - they were required later during the year to publish the prescribed rates. Insofar as the traffic involved in the complaint is concerned the situation now appears to be resolved with result that Savannah will retain the coastwise water trans portation service so necessary to its continued operation as a port.
This Commission, in collaboration with the Southeastern Associa tion of Railroad and Utilities Commissioners and the Southern Governors* Conference, has continued during the year its participation in I.C.C. Docket Wo. 29885 concerning divisions of joint railroad rates between Official and Southern Territories - in which proceeding this Commission is supporting the efforts of the railroads in the South to prevent the Northern lines from securing an unwarranted increase in divisions on interterritorial traffic above the present equal factor basis. Several additional hearings were held in this proceeding during the year and at one such hearing in August this Commission joined in presenting the testimony of Southern shippers in opposition to the proposed change in divisions* These shipper witnesses made most effective presentations yync) strengthened the contention that the railroads in the South could not afford to subsidize their counterparts in the North in the manner contemplated by the Northern Railroads* petition in this proceeding.
The Atlantic Coast Line Railroad and the Seaboard Air Line Railroad on July 22 filed petition with the Interstate Commerce Commis sion seeking authority to merge their properties in the six Southern States of Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia. The application cited the financial problems of the two car riers and claimed a number of substantial financial benefits to be possible through the proposed merger.
In recognition of the potential impact on this State of such a merger which would directly involve 2,770 miles of this State *s approxi mately 6,000 miles of railroad and would contingently involve an addi tional 1,1+00 miles, and in consideration of the numerous letters of con cern received from Georgia users of railroad services, this Commission formally intervened in the proceeding. Since sufficient information was not then available to permit reasonable appraisal of the actual impact on the people and industry of the State of Georgia, that intervention did not oppose or support the merger but strongly urged full public hearings - including one in Georgia - in order that every aspect of the proposal might be thoroughly explored. The definitive position of this Commission was to be announced when sufficient information had been devel oped to support such action.
A week of public hearings were held on the proposal in Richmond, Virginia - the applicants requiring almost the full week of November 28 December 2 to present their affirmative evidence and testimony concerning the proposed merger. Further hearings are scheduled for January 23, 19^1 in Richmond, Virginia, (at which time certain of the applicants* witnesses will be crossed-examined), February 6, 1961 at Tampa, Florida, February 13, 1961 at Savannah, Georgia and February 17, 19&1 at Montgomery, Alabama. In addition, Congresswoman Iris Blitch and this Commission srqjpoz*te& requests of citizens of the Waycross, Georgia area for additional hearing
Page 23

in Waycross in order to permit representatives of that area to fully express their position.
The statistics already submitted at the Richmond hearing show that three Georgia railroads - the Central of Georgia Railway (and its subsidiaries, including the Savannah & Atlanta Railway), the Georgia Rail road and the Georgia & Florida Railroad would be substantially affected by diversion of traffic. The extent of such diversion is admitted by the applicants to be substantial - amounting to as much as $2,308,08l per year diversion from the Central of Georgia Railway and a diversion of almost 20$ of the total annual freight revenue of the Georgia Rail road. The annual diversion of $369,511-9 from the Georgia & Florida Railroad, while not as large, is equally as serious since that railroad is already in receivership. This Commission, in an effort to further develop the particular impact of the proposed merger on these railroads and the areas of Georgia served thereby held informal separate confer ences with representatives of the applicants and, of the other railroads principally affected by the proposed merger* Those conferences confirmed the adverse effects of the merger which are being brought to light in the formal I.C.C. proceeding and no indication has been found that ade quate safeguards will be forthcoming from the applicants to fully protect the public interest of this State.
While the unhealthy financial condition of the railroad industry in general is promoting the current wave of merger proposals in the rail road industry - and while the merger procedure is looked upon with favor by the Interstate Commerce Commission as one solution to the financial ills of the railroads - the adverse effects of such proposals cannot be ignored and the benefits to those railroads seeking mergers must be balanced against the disadvantages to the other carriers affected and to the public depending upon the services of such other carriers* While the mergers of facilities and services now proposed will undoubtedly improve the financial condition of the Atlantic Coast Line Railroad and the Seaboard Air Line Railroad, there is increasing reason to believe that the adverse impact of the merger on Georgia carriers will be a serious threat to maintenance of adequate railroad services to a large section of the State dependent upon such carriers and that approval of the merger as proposed would not be in the overall public interest of the State of Georgia* Since it appeared that there could not be devel oped appropriate modification of the proposed merger or other practical and enforceable arrangements which would eliminate this threat and offer realistic protection'to the interests of the public of this State, the Georgia Public Service Commission concluded to oppose the merger.
This Commission also intervened in new railroad control cases involving the State of Georgia - one such case related to and arising out of the merger proceeding discussed above. These control cases con cern the application of the Southern Railway for control of the Central of Georgia Railway (and its common carrier subsidiaries) and proposals seeking control of the Louisville and Nashville Railroad by the Illinois Central Railroad and the Southern Railway. These latter proposals seek divestiture of the Atlantic Coast Line Railroad's control of the Louis ville and Nashville Railroad as a condition precedent to approval of the Atlantic Coast Line-Seaboard Air Line merger and involve the State-owned Western and Atlantic Railway between Atlanta and Chattanooga which is operated under lease by the Louisville and Nashville Railroad* Such pro posals would also involve the Louisville and Nashville Railroad's one-half interest in the lease of the Georgia Railroad, which railroad is of parti cular interest to the State of Georgia not only because it provides the
Page 2b

only railroad service available to a large area of the State but also since it is partially subsidized by the State through tax exemptions granted by the General Assembly in the early days of railroading in the State of Georgia and still in effect.
Page 25

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UTILITY REGULATION GENERAL

The demand on the services of the Commission continued to increase during the year. This has been due to the steady population growth from
3*^44,578 to 3>943>116 or 14.5$ over the past 10 years, the constant migra
tion of the rural population from the rural areas to the heavy populated urban centers, the continuous demand of citizens for utility services in areas heretofore not enjoying adequate quantity and satisfactory quality required to meet proper standards and the increased cost of public utility services such as natural gas and telephone communications facilities.

During the year normal attrition accounted for several vacancies in the Utility Division's Technical Staff. Replacement was difficult due to the fact that this Commission, like other State agencies in recruiting trained technical personnel necessary to their functions, cannot compete with the inducements offered by industry. Despite this handicap efforts are being continued to secure the additional trained personnel for which funds have been authorized.

At the close of the calendar year i960, the Commission had the following number of public utilities under its jurisdiction:

Natural Gas --------------------

5

Electric ---------------------------- 3

Telephone (4 Co-opsincluded) --------65

Telegraph -- ---------

1

Transit --- ------ ------- ------------ 5

Total

79

NOTE:

In addition twenty-one municipalities who own distribution systems or pipe lines and serve beyond the county in which the municipality is located.

The Technical Staff must handle many and varied problems in its furtherance of the Commission's policy to insure the rate payer the best possible service at the most reasonable rates commensurate with the finan cial integrity of the utility. The Technical Staff continues to devote much of its time to the basic utility service complaints, including assistance in securing establishment of initial services (and restoration thereof when required), routine and special checks on the quality and quantity of services rendered and auditing of bills where disputes arise between the utilities and their customers.

Included again this year are Charts 1 and 2 illustrating the
number and type of utility customer complaints received by the Commission during the year i960. In addition, Chart 3 has been added to illustrate and compare the severity of winter heating seasons for the past ten years.

1
CHART 1

E le ctric U tilities

60s
U tilitie s

T e le p h o n e U tilitie s

NUMBER OF C O M P L A IN T S P R O C E S S E D IN R E C E N T YEARS CLASSIFIED BY MAJOR UTILITY TYPE

TOTAL COMPLAINTS (hundreds)

CHART 2
1951 '52 '53 `54 5 5 `56 5 7 '58 '59 '60 YEAR
TOTAL OF A L L U TILITY C O M P L A IN T S P R O C E S S E D

r 3 4

CHART 3

TOTAL DEGREE DAYS DEFICIENCY

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HEATING SEASON
COMPARISON OF ANNUAL HEATING SEASON ON TOTAL D E G R E E DAY D E F IC IE N C Y B A S I S

This comparison is based on weather data published for Georgia by the United

States Weather Bureau, It is felt that the knowledge contained in Chart 3 is

needed to more easily understand certain large increases in the total number

of complaints received in connection with certain utilities. For example,

in i960 the number of electric utility complaints processed increased by more
than ik-Qff) over 1959 The major portion of this increase can be attributed

to electric service failures caused by the ice and snow conditions during
March of i960. At one time, more than 100,000 customers, representing byfo of

the total in the Atlanta area were without service. The Commission's staff engi

neers worked.throughout this particular weekend in order to expedite service 1

restoration for critical cases. In some instances, isolated customers were

without electricity for ten days or more. It should be considered that had

these icing conditions and resultant power failures not occurred, the total

number of complaints would probably have been more in line with the 1959

total.

*

As has been the case for several years, by far the greatest number of complaints received originate in the telephone industry. In i960 the total number of telephone utility complaints were three times the combined total of the electric and gas utilities. Approximately 7^-0 more telephone complaints were processed than in 1959* Much of this increase can be attributed to customer dissatisfaction with increased rates applied in connection with the Atlanta Metropolitan Service Area Plan enacted by the Southern Bell Telephone Company. Two other contributing factors to this increase were the service outages caused by the ice and snow conditions in March, and also to a change in the billing procedure used by the Company. This change resulted in a number of subscribers receiving monthly bills for service periods longer than the normal thirty days. This change, however, was not intended nor did it result in additional gross revenue to the Company.

Very little need be said concerning the number of the Natural Gas utility complaints processed, i960 shows an increase in the total of less than 2$ over 1959* Service to the residential customers was uninterrupted during the ice and snow period in March. During such periods, customers are more inclined to accept increased monthly heating bills without complaint when faced with such obviously cold weather.
Georgia's economy during i960 didn't exactly flourish but neither did it flounder. The work load on the staff as result of complaints or inquiries does not decrease in prosperous eras and increase during depressions or recessions* High bill complaints are registered during both eras. Various types of complaints are received during prosperous eras regarding demands for establishment of utilities service, particularly in the fast growing suburban areas of large cities. Every possible assistance is given in each case and problems are resolved with the least practicable delay. Must faster service is rendered to the public since the augmentation of the Utility Staff which took place in i960.
On September 26, i960 under Docket No. 1579-U the Commission authorized the adoption of the Uniform System of Accounts for Class A and

Page 27*

B Electric and Gas Utilities as adopted by the National Association of Railroad and Utilities Commissioners in 1958, amended to the extent reflected in Appendices A, B, C and D attached to the order and made a part thereof. The Commission ordered further that this revised Uniform System of Accounts be applied by all electric and gas utilities subject to the jurisdiction of this Commission for all fiscal years commencing on and after December 31,
I960.
Since the early days of regulation of public utilities the State Commissions individually, and collectively through the National Association of Railroad and Utilities Commissioners, have recognized the need for and value of a Uniform System of Accounts for electric and gas utilities. Follow ing many years of research and collective efforts, the National Association of Railroad and Utilities Commissioners in 1920 promulgated its first recom mended Uniform System of Accounts for these utilities, and such systems were adopted generally by the State Commissions throughout the country and prescrib ed by them for application by the utilities within their jurisdiction.
Changes in operational procedures of the gas and electric industries, coupled with the need for more refinement in basic accounting procedures as the utilities grew larger, created such pressure for revision that the National Association of Railroad and Utilities Commissioners, after additional years of research and study, prescribed revised Uniform System of Accounts for these utilities in 1936 which reflects the best and most appropriate accounting allocations and procedures suitable to the conditions of that period.
Since 1936, the electric and gas industries - spurred by the demands of the second world war and the tremendous expansion in the American economy during the post war period - have made rapid advancement in technology, and major changes in operation. In the gas utility field the major shift to use of natural gas and liquid petroleum gas demanded significant changes in the accounting procedures originally designed when manufactured gas operations comprised a larger portion of the industry. In both industries the necessity for amendments and re-grouping of account classifications, with particular reference to the segregation of different kinds of expense and possible functionalization of certain kinds of general expenses had been evident over the years in the practical application of the existing Uniform Systems of Accounts.
Accordingly, in 19^9 the National Association of Railroad and Utilities Commissioners again called its Committee on Accounts and Statistics to review the existing Uniform System of Accounts with the view toward modern ization of those accounts to reflect changed operating conditions and refined accounting techniques.
This Committee conducted its studies and research for six (6) years and in 1955 submitted to the representatives of State Commissions assembled at the National Association of Railroad and Utilities Commissioners* Convention its proposed revised Uniform System of Accounts for these utilities.
Page 28.

There followed extensive review and discussion at this and three subsequent annual conventions, and finally, in 1958, the proposed modernized Uniform Systems of Accounts were adopted by the National Association of Railroad and Utilities Commissioners with a few further editorial and clarifying modifi cations. The significant changes made in the new adopted systems are enumerated in Appendix A of this Commission's order.
The Georgia Commission actively participated in the various stages of the evolution of these revised Uniform Systems of Accounts and was convinced of the practicality of their application in general to the electric and gas utilities with appropriate modification to reflect local conditions. Recognizing the benefit to the public, to the electric and gas utilities and to the Commission, of application of these modernized Uniform Systems of Accounts to the operation of the electric and gas utilities in the State of Georgia, the Commission undertook extensive conferences with the affected utilities to determine the availability of necessary statistics and also what modifications in the system and in utility procedures would be necessary to adapt the new system to the Georgia utilities.
There was no opposition expressed by any of the utilities to the majority of the proposed revisions. However, there were reviewed proposals by both utilities and the Commission for relatively minor modifications of, and additions to certain of the accounts. Certain of these minor modifi cations and additions were approved for adoption by the Commission and made a part of the new Uniform Systems of Accounts.
The Commission has for some time recognised the increasing need for modernization of the system of accounts being used by both gas and electric utilities within the State of Georgia. For that reason the Commission actively supported and participated in the National Association of Railroad:, and Utilities Commissioners development of the new System of Accounts adopted. The Commission is convinced that the new Systems of Accounts are basically sound and that, with the above mentioned modifications to adjust those systems to fit local conditions in the State of Georgia, the industry wide use of this modernized accounting procedure will be of substantial benefit to the utilities and will provide this Commission with a better detail and more accurate picture of the financial aspect of utility operations and thus enable it to better regulate these industries in the public interest.
EMPLOYMENT OF LIBERALIZED
DEPRECIATION PRACTICES FOR UTILITIES
On June 10, 1955 Georgia Power Company filed a formal request with the Commission seeking the prescription of appropriate accounting treatment for liberalized depreciation deductions for income tax purposes as permitted under Section 167 of the 195^ Internal Revenue Code. Due to the significant effect of the liberalized depreciation procedures, it was concluded that the request should be assigned for hearing before the Commission. Accordingly, it was scheduled for July 18, 1955, at which time it came on to be heard.
Page 29.

After careful consideration of the Company's request, the Commission on August 16, 1955 entered its original order in the matter provid ing for the accounting to be followed for liberalized depreciation deductions and the rate making treatment which would be followed by the Commission with respect to the alleged accumulated tax deferrals under Section 167 of the Internal Revenue Code. However, the final ordering paragraph of said order provided as follows:
"ORDERED FURTHER that the authorization herein granted shall be subject to reconsideration and revision when the Commission has completed a study looking toward the development of an appropriate method for accelerating the annual depreciation provision related to that property on which liber alized depreciation is claimed for tax purposes."
Because of the foregoing finding, the Commission, on September 26, I960 issued its first Supplemental Order in which a further hearing in the matter was ordered to be held October 19, i960 for the following purpose:
"To make a final determination of the accounting and rate-making treatment to be adopted in the future with respect to the liberalized depreciation deduction permitted for income tax purposes by Section 167 of the Internal Revenue Code."
Extensive testimony by witnesses for the utilities affected and other interested parties was heard at that time.
The election to use accelerated depreciation for income tax purposes is a decision involving many complex considerations that vary with different types of utilities and even as to the individual companies. For example, some utilities have plant composed of relatively large components while others have mass property accounts involving hundreds of thousands of small items. The decision whether or not to use accelerated depreciation must be left to those having the overall responsibility for managing the business. It is an election granted to all tax payers by Section 167 of the Internal Revenue Code of 195^.
After careful consideration of the evidence presented in this proceeding, the Commission is of the opinion that the accounting and ratemaking treatment of deferred income taxes resulting from liberalized depreci ation as prescribed in the original order issued August 16, 1955 should be continued. It is further the opinion that the effect of such treatment is fair both to the rate payer and to the utility investor, and in conformity with generally accepted accounting principals.
The Commission, therefore, on October 2k, i960 ordered that the
accounting and rate-making treatment of deferred income taxes occasioned by liberalized depreciation under Section 167 of the Internal Revenue Code of 195^ prescribed for Georgia Power Company by this Commission in its Order dated August 16, 1955> Docket Ho. 838-U, shall remain in full force and effect.
Page 30*

ELECTRIC

On March 24, i960, under Docket No. 1542-U, Savannah Electric and Power Company was granted authority to issue and sell 87,950 additional shares of $5.00 per share par value common stock, On March 29, i960 it was further ordered that said common stock he sold at a fixed price of $24.50
per share or a total price of $2,154,775* Proceeds derived from the sale of
said stock is to he used to repay a portion of the hank loans incurred for construction purposes.

Savannah Electric and Power Company under date of May 24, i960 and June 6, i960 respectively, was authorized to issue and sell under and in accordance with terms of its indenture of mortgage dated as of March 1,
19^5 as supplemented hy indentures supplemental thereto including the sixth supplemental indenture to he dated as of June 1, i960 between the Company
and the Citizens and Southern National Bank of Savannah, Georgia,, and sub stantially in the form thereof as filed with this Commission, $5,000,000 principal amount of new first mortgage bonds due 1990. The Company was further
granted authority to issue and sell under and in accordance with the terms with the proposed debenture indenture to he dated as of June 1, i960, $3,000,000 principal amount of new debentures, due June 1, 1985. It was set forth that the company's i960 construction program will require the expendi ture of approximately $10,515,855 and that the major item in this program is an estimated expenditure of some $7,627,100 in connection with the construc
tion of Unit No. 2 at Port Wentworth near Savannah, Georgia, with an estimated
capability of 54,000 kilowatts. It is expected that this Unit will be ready for operation in the Spring of 1961.

On July 21, i960 Georgia Power Company was authorized to acquire
by purchase certain of the assets, properties and business of Rabun Land and Water Company, and in connection therewith, to issue two (2) unsecured notes each in the principal sum of $75,071.68 maturing in twelve and twenty-four months respectively, and bearing interest at the rate of 5^ per annum.

.

a The

Land and Water Company served approximately 422 customers

in Rabun County, Georgia in and around the towns of Dillard and Mountain City .

The generating facilities of Rabun consisted of 1-Hydro powered 24 KW generator. It has been necessary for Rabun to rely for some years on Georgia Power Company for both capacity and energy to adequately serve its customers and the two systems were already connected. While there was not

substantial duplication of facilities, the integration of the two systems will result in greater economies of operation, greater dependability of

service, more efficient utilization of facilities, unlimited capacity for industrial development, and should tend to simplify the regulatory problems.

2f

t0 .be.paid for such assets, properties and business

was $00,191.15. The Commission further directed that the uniform rate

f Georgia Power cmpany become effective in the purchase territory with all meter readings made on and after the closing date of the purchase

Page 31.

GAS
On June 9> I960 Gas Light Company of Columbus, under Docket No. 1557-U, was granted authority to issue and sell privately, $1,250,000 principal amount of its First Mortgage Bonds, 6$ Series due 1980 at a price of not less than 100$ of the principal amount thereof, plus interest accrued thereon from the date of the bonds to the date of closing. Proceeds from the sale of the bonds was shown to be required for the purpose of repaying currently outstand ing bank loans and also for the purpose of making capital improvements and extensions to its natural gas system.
On May 3> I960, under Docket 15^4-U, Mid-Georgia Natural Gas Company was granted authority to issue and sell at par, plus accrued interest thereon $200,000 principal amount of First Mortgage Note, "Series E", bearing interest rate at 6 3A $ per annum and maturing fifteen years from date of issue. Proceeds from the sale of these bonds will be used to retire some $141,230 of existing bank loans and accounts payable of the Company with the balance of some $58,770 to be used for construction purposes.
On August 8, i960 Mid-Georgia Natural Gas Company, under Docket No. 1565-U, was granted authority to issue not more than 100,000 shares of its $.50 per share par value Common Stock in exchange for $50,000, face amount of 5$ Debentures of the Company presently issued and outstanding. It was shown by the Company that its long term debt, expressed as a per cent of its total capitalization, is high and that because of this high debt ratio, Company has been hampered in obtaining new financing when required for the expansion of its gas system. It was further shown by the Company that if it is to obtain favorable interest rates in future long term debt financing, its capital structure must be revised in such manner as to provide for a higher equity investment in the Company.
On December 6, i960, under Docket No. 1592-U, Mid-Georgia Natural Gas Company was granted authority to issue a total of 26,560 additional shares of its $.50 par value per share Common Stock, such issuance of Common Stock representing a stock dividend on a pro-rata basis to stockholders of record as at September 25> i960. The sale of this additional Common Stock by the Company was proposed in order to conserve its cash and thereby improve its current liquid position.
On August 8, i960 Atlanta Gas Light Company was granted authority to issue and sell 109,186 additional shares of its Common Stock of a par value of $10 per share at a price to be fixed at a later date subject to approval of this Commission. Said stock to be offered to the stockholders of record of the Atlanta Gas Light Ccmpany in the proportion of one (l) share for each ten (10) shares held, with the right of over subscription by said stockholders as outlined in the order. On September 1, i960 under Docket No. 1569-U (First Supplemental Order) Atlanta Gas Light Company was authorized to issue and sell said 109,186 shares of $10 par value Common Stock at a price of $3^*.50 per share.
Page 32.

On November 16, i960 Atlanta Gas Light Company, under Docket No. 1588-U, was granted authority to issue and sell at this time, under and in accordance with the terms, conditions, provisions, and restrictions of its Indenture of Mortgage and Deed of Trust to the Citizens and Southern National Bank, dated September 1, 19^3, and supplemental indentures thereto, $9,000,000 principal amount of its First Mortgage Bonds, due 1985, and to sell the same to responsible purchasers at a competitive bidding at not less than the principal amount thereof, plus accrued interest, at such price and bearing interest at such rate as will result in the lowest annual cost of money to the Company. Proceeds from the sale of such securities were shown to be required for payment of current short term bank loans for money borrowed to make additions to its gas production and distribution system and to pay the expenses of the issuance and sale of said securities.
On September 23, 1959 South Atlantic Gas Company filed an appli cation with this Commission for authority to adjust its rates for natural gas service rendered within its certificated area. This matter was assigned for public hearing on October 28, 1959* at which time the Company's direct presentation was heard. The matter was thereupon reassigned for further hearing and cross-examination of Company witnesses on November 12, 1959*
The motivation for this application was the general increase in the cost of Natural gas to the applicant. On April 13, 1959 Southern Natural Gas Company filed with the Federal Power Commission new rate schedules to become effective on June 1, 1959* proposing a multi-million dollar increase in natural gas rates. This pipe line company is the major supplier of natural gas in the State of Georgia, and the sole supplier of the applicant. Recognizing that any increase in the cost of supply to the distribution systems of Georgia would ultimately affect the consumer, this Commission filed strenuous protest against the proposed increase, with the request that the new rate schedules be suspended pending justification of the increase at public hearing. In recognition of such protest by this Commission and other interested parties, the Federal Power Commission suspended the rate increase for the full statutory limit of five (5) months from the proposed effective date thereof. The Federal Power Commission was unable to schedule a hearing during this statutory period. Its suspension order permitted Southern Natural Gas to make its increased rates effective on November 1, 1959 (the expiration of the statutory suspension) - the increase in rates to be collected under bond and to be subject to later hearing and refund if found to be excessive or unreasonable.
According to Exhibits submitted, applicant will require $468,6^9 of additional revenues to offset known increases in the cost of service. After an exhaustive study of the Exhibits and testimony submitted by the appli cant, it was the conclusion of the Commission that revised rate schedules to provide increased revenues not to exceed $350,000 per annum based on the actual results of operation for tost year ending June 30, 1959 were necessary.
In the Commission's Order, Docket No. 1^91-U dated January 21, I960, the Commission ordered further that in the event the Federal Power Commission in FPC Docket No. G-I8512 shall require refunds to be made to
Bage 33.

South Atlantic Gas Company by its supplier, the full amounts so received shall be refunded by South Atlantic Gas Company to its customers (at the expense of South Atlantic Gas Company), in accordance with allocations among customers as ordered by this Commission.
The Commission further ordered that in the event the Federal Power Commission in FPC Docket No. G -18512 shall fix rates for the pipe line supplier of South Atlantic Gas Company at a level lower than that upon which the increased cost of gas has herein been determined, South Atlantic Gas Company shall within thirty (30) days of the effective date of said rates file with this Commission revised rate schedules reflecting such decreases in its cost of gas in the same manner as the increases herein authorized have been applied.
On August 24, 1959 Atlanta Gas Light Company filed an application with this Commission to increase its rates in the amount of $8,591*182 per annum. Of this amount $5,200,641 represented increased costs of gas from the three pipe line suppliers of the Company, and $3,390,541 to cover other increased operating costs of the Company and to provide a reasonable return on the investment of the Company devoted to the public service.
After receipt in the record of the direct presentation of the Company, hearings were recessed until October 26, 1959 to afford the pratestants and the Commission Staff sufficient time to prepare for crossexamination of Company witnesses. On October 29, 1959 cross-examination still being in progress and recognizing that it could not be concluded in time to permit determination of this matter by the Commission prior to the effective date of the pipe line increases, the Company filed an additional application asking approval of temporary or interim rates sufficient to cover the increase in cost of gas only, pending the Commission's decision on the overall increase sought by the Company. On November 2, 1959 the Commission entered its Order in Docket No. 15OI-U authorizing the Company to institute temporary rates subject to refund pending final determination of this matter.
In support of its application the Company presented figures showing an original cost rate base totaling $8l,186,906. The original cost rate base was determined by the Commission Staff to be $71,486,290.
Pro Fonna schedules submitted by the Company indicated an increased gas revenue requirement of $6,453,633. Since the Commission has, in Docket No. 1501-U, previously authorized the Company to pass on the increase of cost of gas sustained by reason of the increased rates filed by the Company's pipe line suppliers in the amount of $5,194,996, it was now necessary only to provide for additional revenues of some $1,253,637
Testimony was presented to the effect that the Company's allocation of its proposed increase did not actually obtain the result that Company testified was its intention. Suffice to say that in general the Company's method of handling the revised rate schedule was in substantial agreement with the past practice of both this Commission and the Company.
Rage 3^.

The Commission under Docket No. 1480-U dated May 31, i960 author ized revised rate schedules to provide increased revenues of not more than $1,258,637 per annum, based on the volumes of gas consumed by customers during the twelve months ended June 30, 1959 These revised rates were authorized to become effective during the month of June i960.
Under Georgia Commission letter-orders issued in August, i960, several gas distribution companies purchasing natural gas from pipe line suppliers were required to adjust their rate schedules in such manner as to reflect properly the reductions in cost of gas to said companies by reason of the decision of the Federal Power Commission in Docket Nos. G -20509 and G-20512 reducing the rates charged by the pipe line supplier, and further, to refund to the customers of said companies such refunds received from the pipe line supplier as a result of said Federal Power Commission orders.
The following refunds due gas customers in the State of Georgia have been recorded:

Refunds made to Industrial Customers by Check or Billing Credit
Unrefunded Amounts Due Residential and Commercial Customers

$ 96,492.58 $ 28,901.92

T tal

$125.39^.50

It is the opinion of this Commission that the refunds due Resi dential and Commercial customers are of such minor amounts on a per customer basis that the costs involved in effecting such refunds may possibly exceed the refund itself. Therefore, the companies are directed to make specific refunds to its Industrial and other large volume Commercial customers only, and to retain for the time being such amounts as are properly refundable to Residential and Commercial customers until final adjudication of Federal Power Commission Docket Nos. RP 60-15 and HP 6l-5 involving subsequent rate increases by pipe line suppliers has been obtained, and the total amount of all refunds determinable. At that time refunds will be directed by further order of this Commission. The companies have been required to set up on their general books a special account providing for all such refund liabilities.

Tabulated on Page 38 is a comparison of sample monthly bills on the residential rate of the Atlanta Gas Light Company showing the amount of increases for various consumptions. It is interesting to note that while there have been several gas rate increases to the residential class consumers the cost of this utility service has not gone up as has the cost of living for other commodities.

Page 35*

COMPARISON SAMPLE MONTHLY BILLS
ON RATE SN-1 ATLANTA GAS LIGHT COMPANY
OLD RATE -- in effect May 31* I960

First Next Next All over

4 Therms Per Month

10

ti

it

n

256 it

it

it

270 it

ti

n

$1 .1 0

10.45 8.05
6.75

Cents per therm

M

tv

It

II

vv

II

CURRENT RATE - August 13, i960

First Next Next All over

4 Ther
11 "
285 " 300 "

THERMS PER MONTH

OLD RATE

25

$ 3.03

50

5.04

75

7.06

100

9.07

125

11.08

150

13.09

175

i5.ll

200

17.12

225

19.13

250

21.14

275

23.09

300

24.78

Pe11r

Month n

11 11

11 ti

$1.16

7.13

CURRENT RATE
$ 3.18
5.29 7.40
9.51 11.61
13.73 15.83 17.94 20.04 22.15 24.26 26.37

AMOUNT INCREASE
$ 0.15 .25 .34 .44
.53 .64 .72 .8 2 .91 1.01
1.17 1.59

INCREASE
- i
4.95 f><
4 .9 6 4.82 4.85 4.78 4 .8 9
4.77 4.79 4.76 4 .7 8
5.07 6.42

Note: Above monthly bills do not include 3ft Sales Tax.

Page 36

For several years the regulation of natural gas rates has been a serious and perplexing problem for this Commission and for other state regulatory commissions Our National Association, at the behest of the Georgia Commission, at its last meeting appointed a committee to make a thorough study of the problem and recommend remedies. Commissioner Crawford Pilcher of this Commission was appointed Chairman and ten others were appoint? ed from states that are most involved That committee recently met in Chicago, and the preliminary studies indicate that relief can be had only through a revision of the Natural Gas Act. The committee, through a sub committee, is making a careful study of such revision, and we hope will rewrite the bill to remove some of its objectionable provisions. We have reason to believe that the type bill that is being considered will receive the full support of all state commissions, and we hope that of all large gas consumers. It will be the purpose of the state commissions throughout the country to actively contact their Congressmen and Senators in support of such revised legislation.

The committee hopes to bring about such amendments to the Natural Gas Act that will:

(1) Outlaw indefinite pricing clauses in natural gas contracts;

(2) Eliminate the prohibition in the Act against suspension of rate changes applicable to natural gas sold for resale for industrial use;

(3) Prohibit consecutive rate increases resulting from the automatic operation of section 4(e) of the Act;

(4) Amend section 7(e) of the Act to require the

\

FPC in passing upon an application for a

certificate of public convenience and necessity

to make a determination that the initial price

is consistent with the public interest; and

(5) Prescribe procedural requirements in the hearing and disposition of matters before the FPC.

While it is easy to blame all of our troubles on the Federal Power Commission, we are inclined to believe that, in view of the many court decisions interpreting the present Natural Gas Act, there is very little that the Federal Power Commission can do and, of course, the State Commissions are somewhat helpless in trying to regulate prices of the distributing companies when their cost of gas is increased more or less at the whim of the producers and the pipe lines.

Page 37.

Southern Natural, the largest supplier of gas to the State of
Georgia, filed a rate increase in Docket No. G-20509 which became effective on June 1, i960. The total increase asked in this docket was $7,800,000 of which $4,700,000 applied to Zone 3 includes all of its Georgia sales area except
Columbus, several small towns in that area and the South Georgia Natural Gas
Company. The amount of increase applicable to Gas Light Company of Columbus was $232,000 and to South Georgia Natural Gas Company $299*000.

Hearing in the aforesaid docket commenced in September and the Commission was represented by a staff of experts for the purpose of presenting such evidence as deemed appropriate for protest in the interest of the Georgia rate payers.

An interim decision by the Federal Power Commission in July i960, gave Southern Natural Gas Company a temporary increase of $5,800,000 or $2,000,000 less than was requested. The revised increase allotted $3,500*00 to Zone 3* $158,000 to Gas Light Company of Columbus and $265,000 to South Georgia Natural Gas Company.

The above aforesaid increases are on an annual basis and are in effect under bond subject to the results of hearings still in progress.

On August 13, i960, Southern Natural received another increase under Docket No. EP 60-15* This increase became effective after the five
months statutory period pursuant to the Natural Gas Act. Southern's total increase under this docket was $1,300,000 of which Zone 3 was increased $787,000, Gas Light of Columbus $37*000 and South Georgia Natural Gas Company $58,000. The unit rates under these dockets are as tabulated herein below:

CD-3 CD-2
G-2
G-3 P-2

11-1-59 G-18512
$3-14 & 21,2$
2.49 & 1 9 .9 0 39*60 44.6 0
2.49 & 19.90

6-1-60 G -20509 As Filed
$3.14 & 23 .9 5 0 2.49 & 22.650 42.90
48. U
2.49 & 2 2 .6 9 0

7-28-60 G-20509 Interim
$3.14 & 23.25^ 2.49 & 21.950 42.10 47.40 2.49 & 21.950

8 -13-60 KP 60-15 Revised
$3.15 & 23 2.50 & 22 42 47 2.50 & 22

In addition to the above, Southern Natural Gas Company increases, another increase became effective on November 1, 1959. Southern N a t u m l is collecting this increase under bond and the Case Docket No. G -18512 has not yet
been scheduled for trial. Transcontinental Gas Pipe Line Company did not put any rate increase into effect during the calendar year i960. Under Docket No. G-I8783, effective November 18, 1959* Transco's increase to Atlanta Gas Light Company was $361,000 and its total G-l increase was $162,000. Transco
has requested a total increase of $15*100,000. This case was settled during October i960, with decreases to all rates.

Under this settlement, Atlanta Gas Light Company's rate decreased by $100,000 per year.

The tabulation on page 39 shows the effective dates of all of the; increases together with cost and totals for all Georgia customers and it is expected that substantial refunds can be made when the Federal Power Commission finally reaches a decision in the pipe line cases.

Page 38.

INCREASES IN COST OF GAS TO GEORGIA CUSTOMERS DUE TO RATE INCREASES BY PIPE LINE COMPANIES

DATE EFFECTIVE

COST OF GAS INCREASES

TOTALS

SOUTH GEORGIA NATURAL

* Docket No. G-13550 * Docket No. G-18626 **Docket No. G-20512 **Docket No. RP 6l-5

4/16/58
n/1/59
6/l/60 8/13/60

$ 144,007
155,255
265,378
57,663
I 22,303

TRANSCONTINENTAL * Docket No. G-I8783 * Docket No. RP 61-13

n / 18/59 4/18/61

SOUTHERN NATURAL GAS *** Docket No. G -4264 *** Docket No. G -13258 * Docket No. G-I8512 * Docket No. G -20509 * Docket No. RP 60-15

4/25/55 4/16/58
n/1/59
6/1/6O 8/13/60

TOTAL GAS CUSTOMERS INCREASE

$ 383,014 125,428 $ 508,442
$ 3,310,454 6,466,077 5,687,210 3,155,822 703,946 $19,323,509 $20,454,254

NOTE: COMMENTS
* Collected Under Bond ** Same increase received by
Southern Natural Gas passed on to Georgia customers collected under bond. *** Settlement (Not Under Bond)
Page 39.

TEIEHCTB

There were sixteen dicisions issued by the Commission during the year i960 regarding rate applications filed by certain independent telephone com panies. Two of these companies submitting applications were granted increases based on showings of increased costs of operation. The total amount of local service revenues requested in these applications amounted to about $146,700 per annum, while local service revenues from rates authorized b y this Commis
sion amounted to approximately $130,000 per annum. The Commission denied one
company*s application for increased rates finding the Company's current rate of return to be adequate according to data presented. The remaining thirteen applications involved requests for authority to establish increased rates for telephone service due to the improvement and expansion of the telephone system of each applicant with funds obtained from REA.. Annual local service revenues from the rates proposed in these applications amounted to a total of about $1,208,500 while the annual local service revenues from the rates authorized by the Commission amount to approximately $1,139,600.

One of the most important improvements made in communications for

establishment of the Atlanta Metropolitan Plan which was made effective on
October 2, i960. At this time, twelve exchanges were added to the "Atlanta
local or Toll Free Calling Area". In addition to Chamblee, Clarkston and
Smyrna, these exchanges are:

Austell Douglasville Duluth Fairbum Fayetteville Jonesboro

Lithonia Marietta Norcross Roswell Stockbridge Stone Mountain

The following schedule of rates was approved for the Atlanta Metropolitan plan:

Business 1-Party Business 2-Party Business 4-Party
Business 8-Party

$17.00
15.00
13.00
6.40

Residence 1-Party Residence 2-Party Residence 4-Party
Residence 8-Party

$ 6.00
5.00
4.00 4.00

At the same time, direct long distance dialing, DDD, was provided.

This feature is a new and faster manner of handling long distance station to

station traffic. This modern and convenient service will allow subscribers to

dial their own station to station calls without the assistance of an operator.

Perfected through years of research and development, direct long distance dial

ing practically puts the nation at the subscribers fingertips. This project

increased the investment of Southern Bell Telephone and Telegraph Company in

the Atlanta area more than $7,000,000 for buildings, central office equipment

and other telephone facilities required to enable subscribers to reach their

neighbors and friends in the surrounding suburban areas of Atlanta. As of
December 31> i960 the following 29 exchanges have the capability of Direct

Distance Dialing:

Page 40.

Atlanta Alpharetta Athens Austell Buford Carrollton Chamblee Clarkston Covington Conyers Dallas Douglasville Duluth Fairbum Fayetteville

Gainesville Jonesboro Lawrenc eville Lithonia Marietta McDonough Norcross Palmetto Powder Springs Roswell Smyrna Stockbridge Stone Mountain Villa Rica

During the year Southern Bell Telephone and Telegraph Company con
nected 221,500 telephones for a net gain of 0,195 stations. In another way
the Company had to put in nearly three telephones to gain one. In addition to
the station growth, the Company added 573 long distance circuits, making a
total added gross e:xpenditure in excess of $51*720,000.

Summarized below is certain data pertinent to independent telephone companies showing the number of telephones served in i960 compared to 1959.

Total number independent telephone companies operating in Georgia
Total number Cooperatives in operation

i960
60 1

1959
60 1

Number common battery exchanges Number dial exchanges

6

10

210

20I

Total Number Exchanges

216

21I

Number common battery stations Number dial stations

2,100 151,747

7*081 134,056

Total Number Stations

153,847

141,137

tfo station gain over previous year
Number of exchanges in process of conversion to dial
Number of exchanges in process of being established Number of new exchanges established

9.00<fo
1 5 1

10.1956
9 5
2

Total telephone plant in service December 31 Telephone plant under construction December 31

$18,500,194 2,622,271

$12,097,191
2,231,544

Number of R.E.A. borrowers - - - - -36
Total amount loans approved by R.E.A. as of April 30, 1961 - - - $35,798,000. Total amount of funds advanced b y R.E.A. as of April 30, 1961 - $21,661,968

Page ll.

The tremendous growth in the number of telephones of the independent telephone industry was the result of the several millions of dollars in addi tional R.E.A. loans made to some 36 companies.
The Commission has for several years exerted every possible effort to have the unfair telephone excise tax eliminated. Excise taxes on telephone service have been applied from time to time during an emergency period starting
with the Revenue Act of 1914, which was repealed in 1916. The 1917 Excise Tax law was repealed five years after the end of World War I in 1924. Congress
provided in the Tax Rate Extension Act of 1959 that the tax for "General Tele phone Service" (principally local telephone service) which terminated on June
30, i960. This date was extended by Congress in i960 to June 31, 1961. This
Commission feels, as do all telephone companies in Georgia, that this tax
should be allowed to terminate on June 30, 196l as scheduled, and consideration
should be given to repealing the tax on remaining communications service. The following Resolution was sent to the entire Georgia congressional delegation wherein the Commission positively stated emphatically and clearly concerning the elimination of the telephone excise tax.
RESOLUTION
"WHEREAS, during World War II the Congress of the United States levied or greatly increased the federal excise taxes on communication services and transportation services as a temporary, war-time emergency measure designed to discourage public use of such services and thereby to conserve strategic materials and facilities then in critical supply, and
WHEREAS, the emergency created by World War II ended more than 14
years ago and that created b y the Korean War ended more than 8 years ago, and there is at present no shortage of the materials and facilities used in these services, and
WHEREAS, the deterrent effect of these excise taxes on the transpor tation of persons during the present peace-time is actually greater than it was during the war-time emergency for which it was designed and is now a serious economic handicap to the carriers providing such services, and
WHEREAS, the federal excise taxes on communications and transportation are discriminatory, unduly restrictive upon expansion and consequently harmful to the nation*s economy, and should be totally eliminated in their entirety, and
WHEREAS, the Congress of the United States in 1959 passed legislation
subsequently approved by the President which removed the war-time federal ex cise tax from local telephone service effective June 30, i960 and reduced the war-time federal excise tax on the transportation of persons from 10 per cent to 5 per cent, effective the same date, and
WHEREAS, there are now efforts being made in Congress to negate those already approved and long needed changes in the federal excise tax structure.
NOW, THEREFORE, BE IT RESOLVED by the Georgia Public Service Commis sion that the Congress of the United States is hereby commended for its actions in 1959 in providing for the elimination of the war-time federal excise tax on local telephone services and its action in cutting in half the tax on the transportation of persons, and
Page 42.

BE IT FURTHER RESOLVED, that the Georgia Public Service Commission does respectfully urge and request the Congress of the United States to take no action which would prevent these reductions in excise taxes becoming effective on and after June 30, i960, and
BE IT FURTHER RESOLVED, that the Congress of the United States is urged to remove the discriminatory burden on the public carriers and communi cation systems and the resultant deterrent effect on the nation's economy b y eliminating at the earliest possible time the remaining federal excise tax on long distance telephone services and on the transportation of passengers, and
BE IT FURTHER RESOLVED, that a copy of this resolution expressing the views of the Georgia Public Service Commission be sent to each United States Senator and Representative from the State of Georgia and to the Chairman of the Ways and Means Committee of the United States House of Representatives and to the Chairman of the Finance Committee of the United States Senate.
Unanimously adopted in Executive Session by the Georgia Public Ser vice Commission on this 13th day of April, I960."

A. 0. RANDALL Secretary

_______

MATT L. McWHORTER Chairman

LOAN AND SECURITY MATTERS - TELEPHONE

During the year i960 there were fourteen decisions issued by the Commission following public hearings of applications filed by certain inde pendent telephone companies for authority to obtain loans and issue securities. These applicants were authorized to obtain loans and to issue securities in the aggregate amount of $1^,500,696 in order to provide capital funds for the expansion and construction of telephone facilities, and for other corporate purposes deemed proper by the Commission. Of the total amount of $1^,500,696 authorized, an amount 01 $7*922,536 waa specified to be borrowed from the Rural Electrification Administration (REA) in order that m o d e m dial telephone service could be made available to residents of certain rural areas of Georgia. The balance of $6,578,160 authorized is comprised of construction loans of $3*273*000 to be obtained from private sources, and capital stock securities amounting to $3*305,160.

RULES NISI ISSUED
Summerville Tel. Co. Trion Tel. Co. Ringgold Tel. Co. Chickamauga Tel. Co.
ORDERS PRESCRIBING PENALTY RATES Summerville Tel. Co. Trion Tel. Co.
ORDERS RESTORING RATES
Summerville Tel. Co. Trion Tel. Co.

DATE 2/19/60 I/8/6O 8/23/60 8/23/6O
DATE /p / 3/10/60
DATE
IO/28/6O IO/28/6O

DOCKET NO.
I538-U I532-U I578-U I577-U
DOCKET NO. I538-U I532-U
DOCKET NO.
I538-U I532-U

Page 43.

Utility

Date of Order

Docket

Rule

No. Amend* Nisi

Trion Tel. Co.

1/8/60 1532-U

X

Southern Bell Tel. Co.

1/13/60 I528-U X

General Tel.Co. of S.E. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co. Gold Leaf Tel. Co.

1/13/60 I527-U
l/l4/60 1521-U l/l4/60 1505-U l/l4/60 I506-U X l/l4/60 I507-U l/l4/60 I508-U X 1/14/60 I509-U l/l4/60 1510-U X l/l4/60 I5II-U l/l4/60 1512-U X l/l4/60 I5I3-U X l/l4/60 1514-U X 1/14/60 1515'-U 1/14/60 1516-U X l/l4/60 I517-U
l/l4/60 1518-U X l/l4/60 1520-U X l/l4/60 I519-U

Southern Bell Tel. Co.

1/27/60 1531-U X

Southern Bell Tel. Co.

1/27/60 1529-U X

Summerville Tel. Co.

2/19/60 1538-U

V

General Tel. Co. of S.E.

2/19/60 1533-u

Southern Bell Tel. Co.

3/9/60 1535-U X

Southern Bell Tel. Co.

3/9/60 1536-u X

Standard Tel. Co.

3/9/60 1534-0

Plant Tel.& Power Co.Inc. 2/19/0O 1426-U

x

Southern Bell Tel .Co. (interested uty)1426-U

Blue Ridge Tel. Co.

2/9/60

I293-U

X

Blue Ridge Tel. Co.

2/9/60 1292-U

Blue Ridge Tel. Co.

2/9/60

I294-U

Blue Ridge Tel. Co.

2/9/60 1295-u

Coastal Utilities, Inc. Dixie Telephone Co.

2/19/60 I526-U
4/13/60 1434-U X

Pineland Tel. Coop.,in c. 5/13/60 1545-U X

Southern Bell Tel.Co.

5/13/60 1546-U X

General Tel.Co. of S.E.

5/13/60 1549-U

General Tel.Co. of S.E.

5/13/60 1551-U

Plant Tel. & Power C o .,Inc. 5/23/60 1426-U

X

Southern Bell Tel.Co. (interested pty)l426-U

South Ga. Tel. Co.,Inc. Southern Bell Tel. Co.

6/9/60 1539-U X

6/27/60 1554-U

Y
A

Southern Bell Tel. Co. Southern Bell Tel. Co.

6/30/60 1556-U X
7/13/60 1567-U V

Citizens Tel. Co.,Inc.

7/21/60 1561-U

Citizens Tel. Co.,Inc.

7/21/60 1562-U X

Chickamauga Tel. Carp.

8/23/60 1577-U

X

Walker County Tel. Co.

8/23/60 1577-U

X

Southern Bell Tel .Co.

7/27/60 1570-U JX

Ringgold Tel.Co.

8/23/60 1578-U

X

Chickamauga Tel. Corp.

8/23/60 1578-U

X

Acq<
X vA X X X X X X
X X
X

Page 44

New Toll Exch. Lines
X X
X X X X

Utility

Date of Docket

Rule

Order

No. Amend. Nisi

Southern Bell Tel. Co.

9/26/60 I576-U X

Trion Tel. Co.

10/28/60 I532-U

X

Summerville Tel. Co.

10/28/60 I538-U

X

Commerce Tel. Co.

H/16/60 1583-

Commerce Tel. Co.

II/16/6O I582-U

Plant Tel.& Power Co.Inc. II/16/6O 1^9^-U X

Quincy Tel. Co. Dixie Tel. Co. Dixie Tel. Co.

H / 1 6 / 6 0 1^27-U X II/21/6O Ik3h-U X
H / 2 1 / 6 0 1493-U X

Acq.

New Toll Exch, Lines
X X

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-

PROGRESS OF TELEPHONE COMPANIES IN GEORGIA

INDEPENDENT COMPANIES

Alma Telephone Co., Inc. Atlas Utilities Company Blue Ridge Telephone Co., Inc. Brantley Telephone Co., Inc. Broomtown Telephone Co. Broxton Telephone Co. Bulloch Co, Rural Tel. Co-op., Inc. Byron Telephone Company, Inc. Cairo Telephone Co. Camden Tel, & Tel. Co., Inc. Canton Telephone Co. Chatsworth Telephone Co. Cherokee Telephone Co., Inc. Chickamauga Telephone Corp. Citizens Telephone Co., Inc. Coastal Utilities, Inc. Comer Telephone Co. Commerce Telephone Co. Consolidated Telephone Co., Inc. Dalton Telephone Co. Darien Telephone Co., Inc. Dixie Telephone Co. Douglas Telephone Co. Ellijay Telephone Co. Fairmount Telephone Co., Inc. General Tel. Co. of the Southeast Georgia Telephone Corp. Glenwood Telephone Co., Inc. Gold Leaf Telephone Co. Gray-Haddock Tel. Co., Inc. Hart County Telephone Co. Hawkinsville Telephone Co. Homerville Telephone Co. Interstate Telephone Co. Jeffersonville Telephone Co. Loco Telephone Co. Mutual Telephone Co., Inc. Nelson-Ball Ground Tel. Co., Inc. Pembroke Telephone Co,, Inc. Pineland Telephone Co-op., Inc, Plant Tel & Power Co., Inc.

Number of Telephones

I960

1959

1775 33
692
58I-
56 225
108l
573 2571 1595
3988
731
738
10 46 1419 1570 2315 4298 64 33 8837
701
1955 3124 129b 453
38,2*1-8
1813
233 1942 1131 1973
1653
1010
5853
621
49
2285
1142 416
3147
2409

1044 33
644 551 56 194
1009
508
2305
1363
3742 64o 709
1568
666
1492 2077 4o6l
6051
8153
644
1631
2931
1182
332 35,337
1640
211
1918
1037
1781
1503
891
5781
536
49
2356
922
4o6
3006
2142

Page 46

Planters Rural Tel. Co-op., Inc. Progressive Rural Tel. CoOop., Inc. Public Service Telephone Co. Quincy Telephone Company Ringgold Telephone Co. Seminole Telephone Co., Inc. Sikes Telephone Co., Inc, South Georgia Tel. Co., Inc. Standard Telephone Co. Statesboro Telephone Co. Summerville Telephone Co. Thomaston Telephone Co., Inc. Trenton Telephone Co. Trion Telephone Co. Union Point Telephone Co., Inc. United Tel. & Tel. Co. The Utelwico, Inc. Walker County Telephone Co. Waverly Hall Telephone Co. Wayne Telephone Co., Inc. Western Carolina Tel. Co. Wilkes Tel. & Electric Co. Wilkinson County Tel. Co., Inc.

Number of Telephones

I960

1959

1291
1074 1901
186
l6l4 1237 1353
2689
6369
3753
2287
5671 1015
787
965 2
524 2577
226
566
1217 2996
938

1147 914 1792
166
1077
1010
1208
2467
5686
3^98
2207 5428 911
670
922
2
490 2299 209 541
1038
2784
89k

SOUTHERN BELL TELEPHONE & TELEGRAPH COMPANY

No. Common Battery Exchanges No. Dial Exchanges
Total Exchanges
No. Common Battery Telephones No. Dial Telephones
Total Telephones
Per Cent Gain i960 Per Cent Dial Telephone i960
Telephone Plant in Service

I960
12
129 l4l

1959
12
129 l4l

37,178
1 ,058.416

3^,129 966 ?620

1,095,59**

1,000,749

9.5$
96.6$

10.3f> 96.6^

$ 376,086,208 $ 336,585,280

TOTAL TELEPHONES IN GEORGIA AS OF DECEMBER 31, I960

Independent Companies

'

153*847

Southern Bell Telephone & Telegraph Co.

1 *095>594

TOTAL

1*249,441

Page 47

WESTEBN UNION - BATE MATTERS

On October 4, i960 under Docket No. 1573-U the Commission approved
the schedule of telegraph rates and charges as contained in the tariff
schedule of the Western Union Telegraph Company presented to the Commission
at the hearing on September 21, i9 60 , directing that such rates shall he
the maximum rates for intrastate telegraph service in Georgia and that said
tariff schedules shall show an effective date of October 17> i960. It was
further ordered that the increased rates authorized contingent upon the
Company's modified interstate rates filed with the Federal Communications
Commission becoming effective concurrently therewith.

Considering the fact that the rates requested in this case are identical with those prescribed by the Federal Communications Commission for interstate telegraph service, thereby providing a uniform schedule of tele graph rates for both state and interstate service, and considering further that revenue from the proposed rates will apparently not exceed operating revenue deductions for the State of Georgia, it is the opinion of the Commission that the application of Western Union Telegraph Company should be granted.

The schedule of rates (present and proposed) as submitted in the application is set forth below:

Present Rates Service Classification
"liF

O-125 Miles
(2)

Full Rate Messages
For 15 words or Less
For Each Additional Word

1050
4 .0

Day Letters
For 50 Words or Less
For Each Additional 5 Words
or Fraction Thereof

1500 8.5

Night Letters

VO 0

For 50 Words or Less
For Each Additional 5 Words

or Fraction Thereof

5.0

Rate Zones 126-225 Miles
1150
4 .5
165^
9 .5
1000 5.5

22-42'
Miles w
1250
4 .5
1800 10.0
1100 6.0

Page 48.

Proposed Rates
Service Classification
~Ti7~

O-125 Miles
(2)

Full Rate Messages
For 15 Words or Less
For Each Additional Word

1100
5.0

Day Letters
For 50 Words or Less
For Each Additional 5 Words
or Fraction Thereof

1600
11.0

Night Letters
For 50 Words or Less For Each Additional 5 Words
or Fraction Thereof

95i 6 .5

Rate Zones I26-225 Miles
735
120$$ 5.5
175<i 12.0
1050 7*0

226-425
Miles f (^)
13c#
6 .0
1909s 13.O
1100 7*5

Page 49,

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TRANSIT
On July 8, i960 the Atlanta Transit System, Inc* and Metropolitan Transit System, Inc. filed a joint application with the Commission for authorit3r to increase the token rate for transit service in the Atlanta
metropolitan area. This application was assigned for hearing on July 22,
i960, at which time it was heard. The applicant stated that the immediate cause of the application for increased rates was that a new wage contract had been negotiated with the employees of the applicant providing for wage
increase of some $.09 an hour effective June 21, i960, plus certain other
fringe benefits. This contract is a three year contract providing for similar increases in succeeding years; however, the application herein encompasses only the immediately effective wage adjustment.
After careful consideration of this matter, it was the opinion of the Commission that an increase in fare was reasonable and therefore prescribed the following fares; "ORDERED that effective with the first
complete operating schedules on August 11, i960, Atlanta Transit System, Inc.
be, and it is hereby directed to institute a token fare of four (4) tokens
for 72*815530, plus Georgia sales tax of 2.184470 for a total fare of $.75,
or any multiple thereof, and to increase the cash fare on all Feeder buses
to 14.563110, plus Georgia sales tax of .436890 for a total fare of $.15.
ORDERED FURTHER that effective with the first complete operating schedule on
August 11, i960, Metropolitan Transit System, Inc. be, and it is hereby
authorized to institute a token fare at the rate of four (4) tokens for
72.815530, plus Georgia sales tax of 2*184470 for a total fare of $.75, or
any multiple thereof, on the Garden Hills and Dixie Hills lines."
On October 24, i960 under Docket No- 1584-U, Atlanta Transit
System, Inc. was authorized to incur an indebtedness in the amount of
$950,000 bearing interest at the rate of GJo per annum and payable in twentyeight equal quarterly installments beginning December 31, i960.
After careful consideration of this matter, it appeared to the Commission that since issuance of said note is required for the purpose of maintaining and improving service by this system to the public through the acquisition of additional buses, the authority requested was reasonable and should be granted.
On June 29> i960 under Docket No. 1568-U, authority was granted
to the Savannah Transit Company to sell the street transportation system and properties to the Savannah Transit Authority.
The Company introduced evidence showing that appropriate consents to the proposed sale of the Transportation System and properties of the Company to the Savannah Transit Authority on behalf of the Mayor and Aldermen of the City of Savannah; the Mayor and Aldermen of the Town of Thunderbolt and of the Commissioners of Chatham County and the Ex Officio Judges thereof. It was shown at the hearing that Savannah Transit Authority had been properly organized and is composed of outstanding businessmen and citizens of Savannah
Page 50!

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and Chatham County; that it will he adequately financed hy a hank loan on the properties of the system and funds to he supplied hy the Mayor and Aldermen of the City of Savannah and the Commissioners of Chatham County and Ex Officio Judges thereof; that there will he no interruption of service hy the take-over; that the operating personnel of the Savannah Transit Company, including its General Manager, will he employed hy the Authority; and that it will otherwise have ample ability and capacity to render adequate and satisfactory services in the public interest. From the evidence introduced at the hearing, it also appears that the Savannah Transit Authority will he better able to render service to the public than the present Company, in view of the financial pro blems with which it is presently faced, the history of which is well known to this Commission. The proposed purchase price to he paid the Company has been tentatively fixed at $720,000, plus or minus the usual closing adjustments, which assures adequate funds to the Company to liquidate its obligations in the manner contemplated hy law*
The petition filed by the Savannah Transit Company on June l4, i960
requesting authority to sell its street transportation system and properties to the Savannah Transit Authority showed that the Savannah Transit Company
was originally incorporated on December 31, 19^-5 by the Secretary of State as
a street railroad corporation and that it acquired the then existing street railway and motor bus transportation systems in the City of Savannah, the Town of Thunderbolt and to and in other points of Chatham County, Georgia, consisting of approximately twenty miles of railway and sixty-five miles of motor bus routes which the Company has continuously operated (except for the abandonment of the railway lines and substitution of motor bus service there for) under the jurisdiction of the Commission and with the consent of the political subdivision set forth in the application.
Page 51.