Report of Georgia public service commission. Eighty-ninth report, 1961

BOUND BY THE NATIONAL LIBRARY BINDERY CO. OF GA.

STATE O F GEORGIA
S. Ernest Vandiver, Governor
89th REPORT OF
GEORGIA PUBLIC SERVICE COMMISSION 2AA Washington So*, S*W*,
Atlanta 3 5 Ca * January 1 , 1961 to January 1, 1962*
Crawford L. Pilcher, Chairman Allen Chappell, Vice Chairman Walter R. McDonald, Commissioner Ben T. Wiggins, Commissioner William H* Kimbrough, Commissioner
A, 0, Randall, Secretary

STATE 0 F GEORGIA
S* Ernest Vandiver, Governor
89th REPORT OF
GEORGIA PUBLIC SERVICE COMMISSION 244 Washington St, SW, Atlanta 3 $ On *
January 1 , 1961 to January 1, 1962

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

^UMVERS/^
f LIBRARIES

LETTER OF TRANSMITTAL
July 1 , 1962
To His Excellency S* Ernest Vandiver Governor of Georgia
Dear Governors As provided by law, the Georgia Public Service
Commission submits herewith its 89th Annual Report of the regulatory activities of the Commission for the year end ing December 319 1961*

Ben T* Wiggins, Commissioner

7/

/
u

William H, Kimbrough, ^Commissioner

89th ANNUAL REPORT

Introduction

The Annual Report of the Georgia Public Service Com mission covering the activities for the year ending December
December 31? 1961, is submitted herewith in compliance with
law*
During the first quarter of the year the organization of the Commission remained unchanged since the last report. Chairman Matt L. McWhorter resigned as a member of the Com mission, effective April 1, 1961 and, as provided by law, was appointed Commissioner Emeritus. Honorable William H# Kimbrough, a former member of the State Pardon and Parole Board, was ap pointed by Governor Vandiver to fill the vacancy, effective April 1, 1961, until the next General Election The Commission was accordingly reorganized on April 3? 1961* The Commission
unanimously elected Commissioner Crawford L0 Pilcher as Chair
man for a two year term, and Vice Chairman Allen Chappell was unanimously re-elected Vice Chairman for a two year term to run concurrently with that of the Chairman.
The present personnel and employees of the Commission are as follows s

Crawford L. Pilcher, Chairman

Allen Chappell, Vice Chairman

Walter R. McDonald, Commissioner

Ben T. Wiggins, Commissioner

William H. Kimbrough, Commissioner

A. 0. Randall, Executive Secretary and Legal Aide

Robert W, Gerson, Assistant Executive Secretary

Mrs. Mae A. Montgomery, Reporter

Robert B. Alford, C hief labilities Engineer

Douglas N. Smith, Senior Utilities Engineer

(vacancy)

Utilities Engineer

Robert W. Hayes, Junior Utilities Engineer

(vacancy)

Junior Utilities Engineer

(vacancy)

Chief Utilities Auditor

Erank G, Heald, Senior Utilities Auditor

Page 1 .

Ernest R. Austin, Utilities Auditor (vacancy) Utilities Auditor
Chas* H. Hagerty, Junior Utilities Auditor David 0* Benson, Transportation Rates Expert J, Fred Parker, Senior Transportation Rates Specialist L. Thomas Doyal, Transportation Rates Specialist Larry L, Carpenter, Transportation Rates Assistant Robert N. Fellows, Certificate and Insurance Supervisor Donald J. Iawrence,Director Motor Carrier Inspection and
Enforcement George E* Thurmond, Civil Defense Officer.
All other Commission employees are listed in alphabetical order as follows:
Mrs* Carolyn N* Baxley, Senior Stenographer Mrs* Lucene R. Boring, Senior Stenographer Mrs. Moselle Colquitt, Senior Stenographer Mrs* Burniece Daniels, Senior Stenographer Herbert R* Daugherty, Motor Carrier Inspector W. E. Doolittle, Motor Carrier Inspector Mrs* Ann R. Donehoo, Senior Stenographer A* J* Fort, Motor Carrier Inspector Miss Paula A* Fouche, 'Senior Stenographer James H. Hooks, Motor Carrier Inspector Mrs* Idnda H* Ingle, Senior Stenographer Mrs* Patricia B, Johnston, Intermediate Clerk Miss J* Diane Johnson, Intermediate Clerk (Emergency) Mrs* Virginia R* Mann, Senior Stenographer Mrs. Emily Martin, Senior Stenographer Mrs* Doris Mills, Principal Stenographer Mrs. Estelle McDonald,Confidential Secretary (Temporary) Mrs. Sarah B, McGonigal, Senior Stenographer Mrs* Rubye D. Otwell, Senior Stenographer Mrs* Patsy Porter, Senior Stenographer Mrs. June Powell* Intermediate Typist Miss Martha Robinson, Senior Stenographer Mrs Marian R ountree, R eceptionist Mrs. Hazel Turner, Intermediate Clerk T. S. Tyson, Motor Carrier Inspector
(vacancy) Motor Carrier Inspector Bobby Edmondson, Porter-Machine Operator,
Through oversight in the last report the name of one valued employee was omitted* Mrs. Ann'Donehoo, Principal Steno grapher and Secretary of the Chairman prior to her resignation in April of 1959, returned to the Commission as a Senior Stenographer in June of I960, following the addition of a baby daughter to her family.
During the year 1961 the following new employees were added to our list, to-wit: Ernest R. Austin, Utilities Audi tor, (who was shown as an emergency employee in the last report) $ Peggy Ann Doss, Confidential Secretaryj Mrs. Estelle McDonald, Confidential Secretaryj Mrs. Patsy A. Porter, Sr* Stenographer

and Secretary to Commissioner Kimbrough| Robert W Hayes,
Junior Utilities Engineer5 Patricia B. Johnston, Intermediate
Clerk; Martha L. Robinson, Senior Stenographer; George E. Thur mond, Civil Defense Officer; Mrs* Linda W. Ingle, Senior Steno grapher. The following regular employees resigned during the year, . Mrs. Sarah Phillips, Senior Stenographer; Mrs. Peggy H, Hamby, Senior Stenographer; Miss Peggy Doss, Confidential Secre tary; Mrs. Beulah Ross, Intermediate Clerk; Mrs. Neva V. Bryan, Senior Stenographer; Harold B. Chase, Utilities Auditor.
During the year the work of the Commission required the services of several emergency employees, to-wit: Mrs. Martha J. Cannon, Intermediate Clerk; James S. Jackson, Assistant to Chief Engineer; Mrs. Sue P. Stovall, Confidential Secretary; Gail Browne, Receptionist; and Diane Johnson, Intermediate-Clerk.
PIBLIC HEARINGS
During the year the Commission conducted U 23 Public Hear ings. Of this number 306 involved motor carrier certificates of public convenience and necessity, and 117 involved railroads and utilities. All matters docketed for public hearing are heard by the entire Commission in open session, a majority of the Commission constituting a quorum. The Commission does not use hearing examiners, thereby avoiding unnecessary delays for the purpose of reading records. Furthermore the hearing of evidence in person enables the Commissioners to acquire a more complete picture of the matter under consideration.
I. C. C. JOINT BOARD HEARINGS
In addition to Commission hearings the Interstate Commerce Commission assigns applications for motor carrier certificates between or within three or less states before a Joint Board composed of a representative from each of the state commissions in which state the applicant proposes to operate. Although each member of the Commission is a Joint Board Member and may parti cipate in these hearings it has been customary to assign a member of the staff of the Commission to participate therein as the as signment dates generally conflict with Commission hearings. It is important for the Commission to participate in the hearings, and this participation consumes considerable time, one of which alone required the absence of staff member for almost three months during the year, thereby increasing the work load on the remaining staff of the Commission,
Page 3

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 year 1961 are as follows:

Certificate fees at $35*00 each, and certificate transfer fees at $7o50 e a c h -- ------ - - - - - -

$ 3,507,50

Regular license fees at $25*00 each

$216*500,00

Pickup and delivery fees at $1,00 each - - - ---- -- $ 2,076,00

Reciprocal registration fees at $lo00 each - -----$ 24,231*00

T o t a l ---------$246,314*50

In addition to the foregoing funds collected by the Com mission the Railroads and Utilities under the jurisdiction of the Commission were subject to a tax assessment which produced the sum of $280,000,00, which was collected by the Property and License Unit of the Department of Revenue, making a total of $526,314*00 available for appropriation to the Commission, although it should be noted that the appropriation for the Commission was limited in the Appropriation Act of 1961 to $400,000,00,

MOTOR CARRIER CERTIFICATE DECISIONS

The following is a breakdown of motor carrier certi ficate decisions by count, som of which were decisions oh'`actions not requiring public hearing, and some of which required more than one public hearing:

Applications for new certificates:

Approved-- ------------ - -- -- ---------- - -

107

D e n i e d ------- - -----------------------------

13

Withdrawn-- -- - ------- - - ---------- - - -

21

Dismissed - - --------- - - - ---------- -

16

Applications for transfer of certificates:

Approved - - - -----------------

23

Denied -- - - - - - ------- - - - - - - - - -

2

Page 4,

Certificates amended--------------

160

Certificates cancelled - - - ----------- - ----

16

Certificates suspended-------

14

Certificates reinstated - - - - - - - - - - - - - -

18

Certificates suspended under resolution

of Commission for insurance lapse --- - - - - -

$7

Certificates reinstated under resolution

of Commission on insurance compliance - - - - -

31

Miscellaneous, extensions, refunds, recon

siderations, etc. ------

61

In addition to the foregoing hundreds of rules nisi on insur

ance cancellations are issued under Commission resolution which are automatically dismissed on renewal filings*

AMENDMENTS OF MOTOR CARRIER RULES AND ________________ REGULATIONS____________

Following several hearings which began in I960 on a Rule nisi issued against All Class "A", Class "B", Class nE n and Class nC n Certificate holders to show cause why the Com
mission should not amend Rule 2 - Classification of Carriers
of the General Motor Carrier Rules and Regulations, the Com mission issued an order on March 23, 1961 amending said Rule
by defining the term "Passengers'1 and the term " Property" as
follows ?
Note-1: The term "Passengers" shall mean and include express, mail, newspapers and/or bag gage of passengers in the same vehicle or combination of vehicles with passengers.
Note- 2: The term "Property" shall mean and include general commodities, except as other wise restricted in a certificate or by rule or regulation.
On May 31 1961, the Commission, on its own motion and without public hearing, issued an order amending Paragraph (b) of Rule 5 of the General Motor Carrier Rules and Regula tions to provide that "all Class "E" Certificates are automatical ly renewed at the expiration of each seven year period from the date of issuance ot* re-issuance thereof as provided for in paragraph (g) in Section 68-304 of the Code of Georgia of 1933 unless otherwise ordered by the Copimission."
On August 7, 1961, the Commission on its own motion and without public hearing, issued an order amending General
Motor Carrier Rules and Regulations Nos. 25, 26, 27, 33, 35 and 36 which adopted uniform motor vehicle registration, in
surance and identification forms recommended at the 72nd An nual Convention of the National Association of Railroad and

Page 5

Utilities Commissioners to benefit the motor carrier indus try and the public and possibly forestall enactment of federal legislation which would remove state's rights over interstate carriers because of the extraordinary burden of the various state regulations upon such carriers and the interference with interstate commerce as a result thereof. The order fur ther increased Bodily Injury and Property Damage insurance
coverage from $10,000/$20,000 and $ $ 0 0 to $25>000/$100,000 and $10,000 for property carriers, and from $10,000/$100,000 and $5,000, to $259000/$300,000 and $10,000 for passenger
carriers
MOTOR CARRIER ENFORCEMENT
The Motor Carrier Inspection and Enforcement ''Division is that arm of the Commission which enables its members to main tain surveillance over the activities of all "for hire" motor carriers conducting operations over the highways of Georgia,
During the calendar year of 1961, this department employed five motor carrier inspectors domiciled in strategic areas of the state, which enabled each inspector in his as signed territory to give maximum coverage with minimum amount of time and mileage expense. These inspectors operated a
total of 107,655 miles at a cost'to the state of $6,4-59,30,
This operating cost enabled these inspectors to collect
$10,894,00 in motor carrier fees for licenses that otherwise
would not have been collected by the Commission, In addi tion, these inspectors were indirectly responsible for the collection of several thousand more dollars that was remitted by mail.
The inspectors' duties are categorized as follows:
(i) Routine Inspections of Regulated Intrastate Carriers: (a) Safety Inspections of V ehicles: During the
year 1961, inspections were made on 1,515 heavy duty trucks,
truck tractors, trailers and buses for violation of the Motor Carrier Safety Regulation promulgated by this Commis sion, If unsafe mechanical conditions existed, the manage ment of the motor carrier was so advised and required to make the necessary repairs. An affidavit to the Commission certi fying these repairs were made was required of the motor carrier in violation. The 1,515 inspections were an increase
of 913 over the 602 inspections made during the previous year of I960,
(b) Inspections of Transportation Rates Applied: Periodic calls were made on all carriers regulated by this Commission to determine if they were assessing the proper rates and charges approved by the Commission and that they
Page 6

were operating within the scope of their authority granted by the Commission. Where violations of the published tariff rates were detected, the violating carrier was re quired to rebill the shipments in accordance with their proper published rates. % e r e these violations were preva lent and posed a threat to the shipping public or show ed signs of discrimnatory practices, the Commission issued a rule nisi against the carrier to show cause why their certificates should not be suspended and/or revoked for failing to comply with Commission rules and regulations. Such rules nisi were issued in fifty-one cases. Where vio lations were of a nature that the Commission felt they could be corrected with proper guidance from the staff, the carrier was asked to come to the Atlanta offices for consulta tion. During the year conferences were held with sixty-two motor carriers, who were advised of the necessary steps to place them in compliance with the tariff rules and other regulations of the Commission. In this respect, the Enforcement Division is grateful for the time, advice and assistance of the Transportation Rates Division.
(c) Service and Facility Complaints: This depart ment has worked very closely with the Transportation Rates Division on complaints involving the service and facility condition of the passenger bus companies providing intrastate transportation for the citizens of Georgia. Inspection of the sanitary conditions of bus terminals in the state by this department has resulted in the upgrading of these facili ties. In addition, inspectors have checked highways under construction to determine if such construction creates a hazard for passenger transportation and require a re-routing of bus traffic because of such hazard, Complaints involving the service of motor freight carriers have been investigated by this department and where service has been determined to be sub-standard the carriers were required to improve such service. All such complaints for the year 1961 have been handled to the satisfaction of the complaining shippers.
(2) Registration of Interstate Carriers: Through the efforts of our field inspectors and
information carried in trade journals, this department is con tinuing its program of registration of those carriers engaged solely in interstate commerce over the highways of Georgia, under permits from the Interstate Commerce Commission, or who are engaged in the "for hire" transportation of "exempt commodi ties" under the Federal Motor Carrier Act of 1935% During the
year 1961, this Commission issued I84.O operating permits and
24231 reciprocal cab cards to such carriers. The Motor Carrier Acts of 1931 require such registrations so that citizens of Georgia may be certain that these carriers are properly insured and financially responsible if they should become involved in an accident within the State of Georgia resulting in property damage, injury or death to any of the citizens of this State. Further, such carriers are re-
Page 7

quired to designate an agent for service.
While performing the foregoing duties our motor
carrier inspectors made 2,416 personal contacts with
carriers, shippers, receivers, city and county officials and other interested parties.
(3) Illegal Transportation Problems Because of the increasing concern over the illegal
or ,!gray area" transportation problem, both on the state and national levels, special emphasis is being placed by this Commission on the apprehension and conviction of these illicit operators who are undermining the regulated rail and motor carrier transportation services. During 1961 this department arrested sixty-seven truck operators, charg ing them ith operation without proper authority from the Georgia Public Service Commission. These operators posted bonds in the amount of $10,979.75 in twenty-five different counties. Thirty-nine of these cases have been disposed of and the fines and bond forfeitures remain in the County where the arrests were made. A composite of these arrests is shown at the end of this report. While conducting special road checks in an effort to apprehend violators of our Motor Car rier Acts, the inspectors have Mspot checked" well over 2,000 vehicles for vehicle registration, authority and safety, in addition to the 1,515 vehicle inspections previously mentioned in this report. Also, numerous shippers using the services of unlawful carriers were given latiers of warning with copies of the Georgia law, which provides that the shipper who aids and abets violators is also subject to prosecution as a mis demeanor.
We feel that this department at present is operating at its maximum efficiency and if there is to be any increase in enforcement activities 3bwill necessitate the hiring of ad ditional field and office personnel.
Page 8

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ARREST REPORT DIGEST -1961 - GASES DISPOSED OF BY COURTS

DEFENDANT

% OWNER

Jessie Roddie and C.F.Singley (Bartow County)

C,F.Singley Jackson,Ga.

:i VIOLATION

: COURT DISP.

6 Safety Viola Roddi e-$10,00
tions. No.GPSC SingleyTag. No Bill $478.00
of lading.

George Brach (Bartow County)

George Brach No Registered Dismissed Detroit,Mich. Authority

Charlie Lewis (Bibb County)

Carrolls Mov ing & Storage Co. ,Ma.con,Ga.

No Intrastate Authority

$70.00

Sterling Powell (Camden County)

W.C.Basnight Norfolk, Va.

No Registered $100.00
Authority

Ardell Waters (Camden County)

Clyde A.Stewart No Registered $100.00
Hickory, Va, Authority

Ed Barnes (Camden County)

Harvey Hogan Belleglade, Florida

No Registered

Authority

$100.00

Willie Huff (Charlton Coun ty)

Jeff Montgom ery, Merritt Island, Fla.

No Registered $185.00
Authority. No
Drivers License

Thomas Simmons (Charlton Coun ty)

W. L. Moore Winter Haven, Fla.,

No Registered Authority

$100,00

Gerald Newell (Charlton Coun ty)
Rudolph Gardner (Charlton County)

Joe Spann Auburndale, Florida.
Williamson Truck Lines, Inc.,Wilson,
N. C.

No Registered $150.00 Authority,Log Book 5 Safety Violations
No Registered 1150.00
Authority

Kenneth Dunbar (Charlton Coun ty)

Phillips Live- No Registered Stock Hauling, Authority
Willison,Fla.

$150.00

Willie Smith (Charlton Coun ty)

Grady Turner No Registered $150.00
Statesboro,Ga. Authority

Page 9

ARREST REPORT DIGEST - 1961 - CASES DISPOSED OF BY COURTS

DEFENDANT

s OWNER

: VIOLATION r COURT DISP.

Wayne Watson (Charlton County)

Joe Robinson Springdale^
Ark*

No Registered Authority

$150*00

Robert Ayers (Charlton County)

D .Andrews Trucking Co* Winter Haven,
Fla*

No Registered Authority

..$10Q*00

Raoul Chabot (Charlton County)
Jessie McDaniel (Clayton County)

Richard E*

No Registered

Dunn, Tampa, Authority

Fla.

No Intrastate

Jessie McDan Authority

iel, Thomaston,

Georgia.

$3.50.00 1 50.00

Wilbur Bellamy (Colquitt County)

Exum Trucking Co.,Quitman,
Georgia

No Intrastate Authority A Safety Vio lations

$ 45.00

Curtis Murphy (Colquitt Coun ty)

J.R.Brown Trucking Co. Ashburn,Ga.

No Intrastate Authority

Dismissed
Payment of
$20.00 Court
Costs

D. W. Huddleson (Crawford County)

D W.Huddleson No Registered Atlanta,Ga. Authority

125.00

William Hodges (Decatur County)

Brown Gobble No Registered Authority

$150.00

William Keitt (Dougherty
County)

Chaplin Truck Line, Hartsville,
S.C.

No Intrastate Authority 3 Safety Vio lations

Nol Prossed
on payment
of $90.00
Court Cost

James Poppell (Dougherty
County)
John Palmer (Douglas County)

C. B. Lodge Pelham, Ga

No Intrastate Authority 5 Safety V iolations

Paul Goodman Shrewberry,
N. J.

No Registered Authority

$30.00 Fine Court Cost
$90.00 - 1 Yr,
Suspended Sentence
150.00

Page IQ

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ARREST REPORT DIGEST - 1961 - CASES DISPOSED OF BY COURTS

DEFENDANT

OWNER

: VIOLATION

s COURT DISP.

James Lee (Douglas County)
Albert York (Emanuel County)
Kenneth Benjaman (Emanuel County)

Fletcher Bros* No Registered Lenoir City, Authority
Tennessee

Tasker Brown Calhoun, Ga.

No Intrastate Authority

Kenneth Benja- No Registered man,Charlotte, Authority
N. C.

$50.00 $85.00 164.00

Clayton Oliver (Emanuel County)
Fred Mi rich (Snanuel County)

Clayton Oliver No Intrastate Newnan,Georgia Authority

P&S Trucking Co.,N.Augusta,
S. C.

No Intrastate Authority. No Bill of lad
ing.

$3.00*00
$105.00

O.J. Pope and Alfred York (Houston County)

Alfred York Moultrie,Ga.

No Intrastate Authority A Safety Vio lations

Pope-Nol
Prossed.
York-$75.00
fine. 6 Mos.
Suspended
Sentence

L e m s Hicks Bibb Transfer Co. (Jones County) John Harris (Laurens County)
Toy Lee Geiger (laurens County)
Alex Odom (laurens County)

Bibb Trans fer Co., Macon, Ga.

No Intrastate Authority

Johnson Trans fer Co.,Inc. Greenville,
S.C.

No Intrastate Authority 4 Safety Vio lations No GPSC Tag

Wallace Rush Glennville,
Georgia

No Intrastate Authority
2 Safety Vio lations

Wallace Rush Glennville,
Georgia

No Intrastate Authority 3 Safety Vio lations

Hicks-$45.00 Bibb Trans fer Co.$75.00
$100.00
and $25.00 tag fee.
$100.00
$100.00

Jerry Hair (Polk County)

0. E. Ponder Bremen, Ala.

No Registered $25.00 Authority

Page 11

ARREST REPORT DIGEST - 1961 - CASES DISPOSED OF BY COURTS

DEFENDANT

s OWNER

: VIOLATION

i COURT DISP.

Otis Shelley (Seminole Coun
ty)

Newell Milling Co,,Newville, Alabama

No Registered Authority

Continued By Grand Jury

Blair Transfer & Storage,and Horace Canty
( Spaulding County)

Blair Transfer & Storage, Nbcon, Georgia

No Intrastate Authority

50.00

Tom J. Marlowe (Sumter County)

Tom J. Marlowe Columbia,S.C.

No Registered Authority

197.75

Willie Hilliard (Thomas County)

W. B. Stuckey Trucking Co.,
Rhine, Georgia

No Intrastate Authority

200.00

Jack G. Royston Jack G. Royston No Intrastate

(Clarke County) Royston, Ga,

Authority

Dismissed

ARREST REPORT DIGEST - 1961 - COURT CASES PENDING

DEFENDANT

f OWNER

s VIOLATION : BOND

Joseph W. Stecko, &
Nationwide Systems, Inc. (Baldwin County)

Nationwide Sys tems , Inc., Miami, Fla*

Blair Transfer & Storage (Bibb County)

Blair Transfer & Storage,
Macon, Ga.

No Registered Authority
No Intrastate Authority

$150.00 $500.00

Page 12

ARREST REPORT DIGEST- 1961 - COURT CASES PENDING

DEFENDANT

t OWNER

: VIOLATION

s BOND

Bibb Transfer & Bibb Transfer &

Storage

Storage,

(Charlton County) Macon, Georgia

No Registered Authority

$300,00

James A*Beavers,, M, H.Stephenson A-l Veteran Trf., Athens, Georgia Frank Stephenson (Clarke County)

No Intrastate Authority

300.00

Raymond R.House (Pulton County)

House,Inc. Mov ing & Storage,
Atlanta,Ga.

No Intrastate Authority

$2,500,00

Otis D. Pike (Gordon County)

W.C.Winter Trk. Rental, Atlanta, Ga.

Mhrvin L* Koster (Gordon County)

Tyce Bruursemit Produce, Grand Rapids,
Michigan

No Registered Authority
No Registered Authority

150.00 $150.00

Jonathan Trama (Gordon County)
George Young (Gordon County)

Melruaruma Trucking Co., Miami, Fla.
George Young, lakeland,Fla.

No Registered Authority

150.00

No Registered Authority

$150.00

Thomas England (Gordon County)

Southern Poul try, Inc.,
Monroe, Ga.

Robert Mattox, Jr., (Gordon County)

Southern Poul try, Inc,, Monroe, Ga.

James Gowen

Jean Gowen

(Gordon County) Decatur, Ga.

Ralph Jennings (Gordon County)

Russell Camp
bell & Asso
ciates,
Oswego, 111.

No Registered Authority
No Registered Authority
No Registered Authority No Registered Authority

$150.00 $150,00
$150.00 150.00

Tilden Whitfield George Hester (Gordon County) Canton, Ga.

David Sheriff (Gordon County)

Pulliam Truck ing Co., Greenwood,S.C

No Registered Authority
No Registered Authority

150.00 $150.00

Page 13*

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ARREST REPORT DIGEST - 1961 - COURT CASES PENDING

DEFENDANT

s______ OWNER______ ; VIOLATION

s BOND

Richard Wolf (Gordon County)
Sydney Dickson (Gordon County)

Adrian W olf Marion,' Ind.
Trailer Town, Ino.,Chatta nooga, Tenn*

No Registered Authority
No R egistered Authority

1x50.00 $150.00

Billy Osman (Gordon County)

R. F. Johnson Terre Haute,
Indiana

Vehicle Not Registered

$150.00

Bobby Sims (Gordon County)

J. H. Carter, Roys ton, (a.

No Registered Authority

$150.00

John Ehvi s (Gordon County)

Lloyd Collins, No Registered

Gadsden, ALa.

Authority

$150.00

Jimmy Roberts (Gordon County)
Robert J .Karr (Gordon County)

Ga.Truck Rent al, Inc. ) Albany, Ga.

No Registered Authority

Malcolm Silvers No Intrastate Rocky Face,Ga.& Authority Cummings Truck Lease Co., Chattanooga,T e m

$150.00 $300.00

Joe Bell
(Gwinnett Coun-
m

Joe Bell Buford, Ga*

No Intrastate Authority

JABeaver, A-l Vtrans Trans.,Frank H. Stephenson (Gwinnett Coun ty)
John A* Rice (Walton County)

Frank Stephen No Intrastate

son,

Authority

$300*00

Deneer Mica Co., No Registered $ 50.00

New Bale,N.G,

Authority

Ray G. Creter (Walton County)

H&S Truck Rent No Registered als, Baltimore, Authority
Md.

J. B. Foison

J. B. Folson

No Intrastate

(Washington Coun Wri ghtsville,Ga. Authority

ty)

Charles Gregory Charles Bates No Registered (Clayton County) Tallass'5'^ ,Ala . Authority

$ 50.00 $ 50.00
$100.00

Rige 14.

TRANSPORTATION

General
During 1961 the Commission and its transportation staff offi
cially dispossed of, in addition to the formal proceedings listed below
(almost all of which were made the subject of written opinions) 502 trans
portation rate and service matters, a considerable number of which required lengthy studies and investigations in the field* This represents an increase
of 27 per cent over the number of such dispositions in i960.
FORMAL CASES FOR YEAR 1961

Docket No. k 6 k -R

Date
1-5-61

9509-A 479-R

1-17-61 1-17-61

irO-R

1-17-61

481-R

1-17-61

Supt. 1247- M 1248- M

3-15-61

I769-M

3-15-61

Subject

Disposition

Application of Central of
Georgia Railway Company for
authority to discontinue opera
tion of its Passenger Trains
Nos. 17 and 18 (The Flamingo)
between Atlanta and Albany

Denied with pro vision for twelve month test period

Motor carrier rates on liquid petroleum products in bulk

Revision required in rates to Dexter

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

Approved

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

Approved

Application of Central of
Georgia Railway Company for
increase in 15-day round-trip
passenger coach fares

Increase authorized
to 135$ of the
corresponding one
way fares

Application of Theatres Service Company and Benton Bros. Film Express, Inc., for amendment of existing operating certificates to authorize the transportation of mail and light express

Reopening of pro ceeding far admission of cost study

Application of principal bus lines for authority to increase
Georgia intrastate fares to a
maximum of 2*9 cents per mile

Increase approved
to maximum of
2*75 cents per
mile

Page 15

FORMAL CASES FOR YEAR 1961 (Continued)

Docket Ho. Non-Docket

Date
3-15-61

V 77-R

3-15-61

482-R

3-22-61

483-R

3-22-61

3^9-R

3-29-61

1st Supt* J-77-R

3-29-61

Non-Docket 3-29-61

Subject

Disposition

Requirements governing filing of monthly accident reports by railroads

Requirements made uniform with those of Interstate Com merce Commission

Application of railroads for authority to increase Georgia intrastate freight rates and charges to the same extent as interstate freight rates and charges in Ex Parte 223

Approved with exceptions

Application of Seaboard Air Line Railroad Company for authority to discontinue agency service at Riceboro, to discontinue the handling of LCL ship ments at Riceboro and to dis mantle the station building at that point

Approved, except dismantling of station building denied

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

Approved

Complaint of Macon Prestressed Concrete Company concerning rail carload rates on concrete beams, columns (posts), double tees, joists and piling, rein forced or prestressed

Dismissed without prejudice to filing should informal negotia tions fail

Application of railroads for authority to increase Georgia intrastate freight rates and charges to the same extent as interstate freight rates and charges in Ex Parte 223

Order modified to exempt from increase rates on anhydrous ammonia (when used solely for fertilizer pur poses), carload

Pick-Up and Delivery limits of railroad trailer-on-flat-car (piggyback) services

Railroads required to restrict pick up and delivery
areas to city
limits or 5 miles
from involved railroad station

Page 16,

FORMAL CASES FOR YEAR 1961 (Continued)

Docket Mo. Date Non-Docket 4-3-61

484-R

4-19-61

492-R

4-21-61

447-R

4-25-61

448-R

4-25-61

485-r

4-25-61

486-r

4-25-61

Subject

Disposition

Requirements governing filing of monthly accident reports by railroads

General Rule 11(g) further modified to further conform with interstate rule

Application of Railway Express Agency, Inc,, for authority to apply on Georgia intrastate traffic additional charge of 20 cents per LCL shipment of one or more packages or pieces, with certain exceptions

Approved

Complaint of Georgia & Florida Dismissed upon

Railroad concerning routing

agreement between

restrictions of Southern Railway carriers

Company on carload shipments of

brick and related articles from

Augusta to Southern Railway

local stations in Georgia

Application of Georgia Southern and Florida Railway Company for authority to discontinue agency service at Sparks; to discon tinue handling LCL shipments at that point and to dismantle the station building at Sparks

Approved subject to provision that Sparks be placed in the pick-up and delivery limits of Adel

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

Approved

Application of Seaboard Air

Approved

Line Railroad Company for

authority to discontinue agency

service at "White Oak; to discon

tinue the handling of LCL ship

ments at that point and to dis

mantle the station building at

White Oak

Application of Seaboard Air Line Railroad Company for authority to discontinue agency service at Dallas; to discon tinue handling LCL shipments at that point and to dismantle the station building at Dallas

Approved

Page 17

FORMAL CASES FOR YEAR 1961 (Continued)

Docket No. Date

487-R

4-25-61

488-R

4-25-61

491-R

4-25-61

1896-M

5-2-61

1865-M

9-17-61

Subject

Disposition

Application of Seaboard Air

Approved

Line Railroad Company for

authority to discontinue agency

service at Statham; to discon

tinue the handling of LCL ship

ments at that point; to dismantle

the station building at Statham

and to discontinue Statham as a

flag stop for Seaboard Air Line

Railroad Passenger Trains Nos.
3 and 4

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

Approved

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

Approved

Complaint of American Can Com pany against proposed increase in rates and charges on truckload shipments of sheet iron or steel containers, set up, from Atlanta and Forest Park to points in Georgia

Complaint con solidated for hearing with application of Scott Transfer Company and C & W Express for con version of their Class "E" Certi ficates authorizing transportation of these commodities to Class "B" Certificates with similar authority

Application of Continental Crescent Lines, Inc., for authority to increase commuter fares between Atlanta and Austell to the basis authorized
for Southeastern Motor Lines, Inc., and to increase commuter fares on its lines elsewhere in Georgia to 1.52 cents per mile;
to discontinue the sale of 12-
ride commuter books and to increase its minimum commuter
fare from 19 cents to 22 cents

Approved

Page 18.

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FORMAL CASES FOR YEAR 1961 (Continued)

Docket No.
1913-M

Date
6-13-61

Non Docket 6-15-61

1896-M

6-15-61

k9k~-R

6-15-61

Non-Docket 6-23-61

Subject

Disposition

Complaint of Dahlonega-Atlanta Coach Lines, Inc,, against Smoky Mountain Stages, Inc,, concerning movement of students in charter service between Atlanta and the Methodist Sum mer Camp in Dahlonega (a point located off the route of Smoky Mountain Stages, Inc.)

Dismissed for lack of prosecution

Application of Georgia Southern Approved upon

and Florida Railway for author withdrawal of

ity to discontinue use of the complaint of

joint Atlantic Coast Line Rail- City of Tifton

road-Georgia Southern and

and Tift County

Florida Railway passenger sta Chamber of

tion at Tifton and to provide Commerce

for its account passenger sta

tion facilities at that point

in the remodeled freight depot

building of the Georgia Southern

and Florida Railway

Application of Class "A" Motor Carriers of Property for increase in rates and charges on truckload shipments of sheet iron or steel containers set-up from Atlanta and Forest Park to points in Georgia

Withdrawn

Application of Railway Express Agency, Inc,, for authority to close the express office at Tennille and to extend the Sandersville collection and delivery limits to include all the area being provided service in Tennille

Approved

Application of Class "A" Motor Carriers of Property for authority to establish detention provisions in connection with movement of sheet iron or steel containers from Atlanta and Forest Park to points in Georgia

Modified detention provision approved

Page 19

FORMAL CASES FOB YEAH 1961 (Continued)

Docket No.
II63-M

Date 7-12-61

I720-M

7-12-61

I937-M

7-12-61

496-R

7-12-61

Non-Docket 7-12-61

I928-M

7 -18-61

500-R

7-20-61

Subject

Disposition

Investigation into "Small Shipments Charge" of Class "A" Motor Carriers of Property

Investigation discontinued subject to reinstatement should future need be indicated therefor

Application of Class "A" Motor Dismissed without Carriers of Property to elimi- prejudice nate the application of the minimum weight "hold-down" in connection with truckload or volume minimum weights published in Southern Motor Carriers Rate Conference Tariff 3-M, GPSC-MF
hi

Investigation into rates and

Investigation

charges for charter coach ser- initiated

vices and rules, regulations

and practices pertaining thereto

Application of Railway Express Agency, Inc., for authority to make applicable on Georgia intrastate traffic increases in commodity rates

Approved

Application of Atlantic Coast Line Railroad Company for authority to consolidate its freight depot at Bainbridge with its passenger depot at that point

Approved with conditions

Application of Class "A" Motor Carriers of Property for authority to make applicable on Georgia intrastate traffic detention provisions the same as applicable on interstate traffic

Approved

Complaint of town of Davisboro against elimination of Davisboro as flag stop for Central of Georgia Railway Company Passenger Trains Nos. 107 and 108 (Nancy Hanks)

Davisboro flag stop ordered re-established

Page 20

FORMAL CASES FOR YEAR 196l (Continued)

Docket Ho. Date

19^5-M

8-7-61

Supt* 3^6-r

8-7-61

lj-62-R

8-7-61

493-R

8-7-61

*195-R

8-7-61

497-R

8-7-61

498-R

8-7-61

1st Supt.
19^5-M

9-20-61

Subject

Disposition

Application of principal bus

Approved with

lines for authority to apply

exceptions

the "Density Factor" formula in

computing charges on bus express

shipments

Application of Central of

Approved with

Georgia Railway Company for

conditions

modification of original order

in this docket to remove require'

ment that agent be provided at

Marshallville during the peach

season

Application of Railway Express Withdrawn Agency, Inc*, for authority to close the express office at Barnesville and to include that area in the pick-up and delivery limits of Griffin

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

Denied with pro
vision for 12
month test period

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

Denied

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

Denied with pro
vision for 12
month test period

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

Denied

Application of principal bus

Previous exceptions

lines for authority to apply

modified

the "Density Factor" formula in

computing charges on bus express

shipments

Page 21,

FORMAL CASES FOR YEAR 196l (Continued)

Docket No* 502-R

Date
9-22-6l

Subject

Disposition

Application of Southern Railway Withdrawn Company for authority to discon tinue agency service at Surrency

501-R
506-R 463-R

10-6-61

Application of Louisville &

Approved

Nashville Railroad Company for

authority to discontinue handling

LCL freight at Kennesaw, Smyrna,

Jacmac and Bolton

10-l6-6l

Application of Central of

Approved

Georgia Railway Company for per

mission and approval to insti

tute condemnation proceedings

for the purpose of acquiring

certain property located in

Effingham County

10-19-61

Application of Southern Railway Company for authority to revise rates on crushed stone and related articles from Lithonia, Stockbridge and Tyrone to Atlanta to restrict rate from Stockbridge to Southern Railway delivery and to restrict rates from Lithonia and Tyrone to other than Southern Railway delivery

Denied

2002-M 2001-M
4T6-R

10-20-6i
H - I 7-61
12-11-61

Investigation into bus station Investigation

facilities at Columbus

initiated

Application of Class "A" Motor Carriers of Property and cer tain Class "B" Motor Carriers of Property for adjustment in rates on sugar from Port Went worth and Savannah to Atlanta

Withdrawn by Class "A" Carriers. Modified applica tion of Class "B" Carriers approved

Complaint of Solvay Process Division, Allied Chemical Cor poration against Atlantic Coast Line Railroad Company and Southern Railway Company con cerning railroad service pro vided to Solvay*s plant at Brunswick and concerning rates charged for such service

Discrimination against Solvay found to exist and removal thereof ordered

^99-R

12-11-61

Application of Georgia Railroad Denied for authority to discontinue operation of its Passenger Trains Nos. 3 & ^ between Atlanta and Augusta
Page 22.

BUS FARES AM) SERVICES
As reviewed in the past two annual reports, the Commission denied application of the principal "bus carriers operating within the State for increase in fares - the Commission holding in its findings in those two cases that the showing made did not justify increase in the general level of bus fares within the State of Georgia at that time. By application received later last year, the bus carriers again sought increase in their passenger fares, this time to the level of 2.9 cents per mile. By later clarifying amendment, the applicants emphasized that no increase was sought in commuter fares. Two public hearings were held last year on the application and after extensive review of the statis tical showing of the results of the Georgia intrastate operations of these carriers, the Commission authorized increase in fares but only to the level of 2.75 cents per mile - that increase found to represent an adequate contribution from Georgia intrastate traffic to help offset the impact of wage and other cost increases incurred since the last increase in bus fares was granted in Georgia in 195$ The Commission specifically
declined in this proceeding to either adopt the operating ratio of 85
before Federal income taxes as a standard for bus lines operating in Georgia or to recognize the proration of station expenses on an exclusive per passenger basis as sought by the bus lines. The Commission held that these matters were too basic to the bus fare structure to be determined conclusively without more extensive investigation than had been possible in that fare proceeding. The Commission will undertake further studies in this direction on its own motion and if deemed necessary will later institute an investigation into this specific field.
Late last year Continental Crescent Lines, Inc., made applica tion to the Commission for authority to increase its commuter fares between Atlanta and Austell to the basis authorized for Southeastern Motor Lines, Inc., and between points on its line elsewhere in Georgia
to 1.52 cents per milej to discontinue the sale of 12--ride commuter books and to increase its minimum commuter fare from 19 cents to 22 cents per ticket. Following hearing on April 13, at which no one appeared in
opposition to the proposal, the Commission found that approval of the application would allow Southeastern Motor Lines, Inc., a bus line badly in need of additional revenues, to take advantage of increased commuter fares previously authorized it between Austell and Atlanta but which it had been unable to apply because of the lower fares of Continental Crescent Lines, Inc., between those points, and would eliminate the fare differential existing between Continental Crescent Lines, Inc., and Tsunami Trail Tours, Inc., between Fayetteville and Atlanta and allow Tamiami to similarly apply increase in commuter fares previously author ized by the Commission for that company between those points. In view of the total lack of opposition and the demonstrated beneficial result
of the proposed increased fares, the Commission on May 17 approved the
revised commuter fare structure for this line.
By letter dated May 15, Dahlonega-Atlanta Coach Lines, Inc., filed complaint against Smoky Mountain Stages, Inc., concerning the movement of students in charter service between Atlanta and the Methodist Summer Camp near Dahlonega (a point located off the route of Smoky Mountain Stages, Inc.). The complaint contended that Smoky Mountain Stages, Inc., was transporting the students to the summer camp, returning its buses to Atlanta and several days later returning to the camp to
Page 23.

transport the students hack to Atlanta* The complainant contended that the movement -was two separate charter trips with the second charter trip originating at Dahlonega, thus being outside the scope of Smoky Mountain Stages charter authority* The complaint was assigned for hearing before the Commission on June 13, but no one appeared on behalf of the complainant to prosecute its case* Accordingly, the complaint was dismissed for want of prosecution*
For a number of years, the Commission has received a growing number of complaints from various bus lines and from the public in general concerning the practices of the bus lines in their charter coach operations. Chief among the complaints has been the evasion of Commission and tariff rules concerning the application of charges and the difficulty in interpreting the complicated regulations governing charter coach service as contained in the various carrier tariffs* The Commission concluded that much of the difficulty could be resolved by prescribing uniform charter coach rules, regulations and rates and by setting up a record system which would prevent abuse of tariff provisions. On July 12, an investigation into the situation was formally initiated by rule nisi to the motor carriers of passengers certificated to perform charter coach operations to show cause why the Commission should not prescribe the system of uniform rules and regulations attached thereto. Hearing was held in July and additional informal conferences have been held with the carriers in an effort to resolve differences of opinion concerning the wording and application of the uniform rules and regulations. The investigation has not yet been concluded and consequently, the soughtfor goal of uniform and strengthened charter coach provisions have not yet been effectuated. Reform in this field is badly needed, however, and the Commission plans to actively pursue its investigation to that end.
There was reviewed in last year* s report the Commission* s approval of application of the principal bus lines to establish a "Density Factor" formula to be used in the determination and computation of charges for the transportation in package express service of certain commodities classified by the carriers as bulky articles. The Commission in its order of approval found that the limited space available on buses for the transportation of bus express demanded that the bulk occupied by an express shipment be given substantial consideration in determining the level of charges on individual commodities and that the application of the "Density Factor" formula would result in the individual packages of the light and bulky articles bearing costs commensurate to the space occupied by those articles in the bus. Experience with the "Density Factor" formula indicated that general application of that formula to all bus express shipments would more equitably allocate bus express charges and result in substantially the same over-all express revenues. Recognizing that the increasing manufacturing and technical skills of today and the consequent development of new articles being shipped by bus made it increasingly difficult for the carriers to individually enumerate the items which were found to be light and bulky and for which there was a need to determine more appropriate charges in relation to the space occupied by such articles in the bus, the Commission approved the application of the "Density Factor" formula to all bus express ship ments with certain exceptions as to newspapers and flowers.
Page 2 h ,

Late in the year the Commission received complaint from the traveling public concerning the adequacy of the bus station facilities in Columbus. By order dated November l4, the Commission instituted investigation into those facilities with a view towards remedying any defects found to exist. This investigation is continuing and will be pushed to an early conclusion.
TRUCK RATES
In 1950 the Commission, after lengthy investigation, prescribed rail and motor carrier rates on liquid petroleum products in bulk based on distances via highways then available between the origin pipeline outlets and marine terminals and destinations throughout the State. There were no State highways serving some destinations and in computing the prescribed rates it was necessary to use distances via usable county roads. Early in the year it became evident that those computations so far as they affected the destination of Dexter should be revised in recognition of the construction of new State highways serving that point. Accordingly, the Commission required the adjustment of the motor carrier rates (there being no rail service to that point) from the various origins to Dexter to reflect the new distances via the new State highways, with the under standing that similar adjustment would be made to other points where the same circumstances existed.
The Class "A" Motor Carriers of Property early in the year sought increases In the rates on truckload shipments of sheet iron or steel containers, set-up, from Atlanta and Forest Park to points within the State of Georgia. The existing rates had been authorized by the Commission following lengthy negotiations and conferences between all concerned and had resulted in modification of operating certificate pro visions for certain carriers. One of the shippers affected objected to the proposed adjustment in these rates and the carriers whose certificates had been modified as result of the previous negotiations refiled for the authority originally sought. During the course of the procedural handling of the application and the subsequent protest and certificate modification applications, it was developed that the principal complaint as to the level of rates was caused by the substantial detention of equipment incurred at destinations where receivers had failed to unload shipments within a reasonable time and had failed to accomplish the expedited unloading which was a factor considered in the establishment of the original rate level on this commodity. Inasmuch as the problem was localized in the equipment detention field, the Commission authorized the prompt establishment of a penalty detention rule to be applied in connection with the transportation of this commodity and in consideration of that adjustment the Class "A" Carriers of Property withdrew their application for increased rates which in turn caused the withdrawal of the protest and of the application for certificate modifications.
The Class "A" Motor Carriers of Property had been experiencing the same problem of unreasonable detention of vehicles in connection with movements of other commodities and for some time had been considering seeking application in Georgia of a uniform penalty detention rule to apply on movements of all commodities. The rule approved for application in connection with movements of containers as discussed above was the interstate detention rule applicable generally throughout the South and upon application of Class "A" Motor Carriers of Property the Commission
Page 25*

permitted the establishment of the same rule to apply on all commodities. This approval was conditioned on the understanding that the carriers would establish a procedure whereby definite time of arrival at shipper* s loca tion would be entered on the shipping document and time of release of the equipment similarly shown in order that there would be no dispute concerning the elapsed time in loading or unloading shipments subject to the detention rule. Further, the carriers were directed to insure that their employees apply the provisions of the detention rule uniformly to the end that there would be no preference or prejudice - the only presentation by the shipping public at the hearing on this proposal being the request that the Commission require that the rule be uniformly applied and enforced to prevent favor itism or prejudice in any degree.
There was discussed in last year*s report the authorization by the Commission of the cancellation from the tariff of the Class "A" Motor Carriers of Property the provision requiring the observance as maximum on Georgia intrastate traffic of interstate rates to or from points beyond Georgia intermediate points. As was reviewed in that report, this provi sion had 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 considerable argument between the carriers and shippers and claim bureaus as to the proper interpretation and application of the item. Over the years, 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 provision. The Commission's approval of cancellation of this provision was made subject to review after a trial period of one year in order that determination could be made of the effect of such cancellation and of whether or not the carriers had com plied with their firm commitment to make specific publication of Georgia intrastate rates no higher than beyond interstate rates where the condi tions warranted and to make such adjustments with reasonable speed. Review of this trial period operation was convincing that the carriers were complying with all reasonable requests for adjustments and that the cancellation of the item had resulted in no bona fide handicap to any shipper. Accordingly, the reinstatement of the provision was not required.
RAILWAY EXPRESS
As indicated in last year*s report, there was received in November of that year an application from the Railway Express Agency for
authority to assess a charge of 20 cents per less-carload 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. At the hearing held in March there was reviewed the reorganization
of the Railway Express Agency under its new contract with its railroad owners, and summary was given of the progress made by the reorganized company in effecting improvements in services and resultant economies in operations - those changes including services from central or key point terminals rather than from numerous and inefficient offices, new truck routes offering more efficient and economical line-haul transportation (as result of the freedom of routing of express traffic permitted under the new agreement) and modernization of terminal facilities and vehicular equipment. The Commission, in recognition of the fact that the operations of the reorganized egress company were essentially a trial operation in which REA Express must demonstrate its ability to operate on its own,
Page 26,

including its paying for line-haul transportation, and that failure to successfully so operate would mean either the demise of express service as such or the nationalization of the operations as already advocated by some in the national Congress, and in view of the fact that the increased rates sought would, under the allocation formula previously held to be reasonable in determination of intrastate costs, do little more than meet the increased costs incurred since the new operation was instituted in 1959* the Commission on April 19 approved the added per shipment charge.
The Express Agency continued during the year to discontinue its 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 Andersonville, Riceboro, Sparks and Statham, but the need shown for railroad agency operations at Ambrose and Whigham resulted in the contingent express applications involving those points being denied.
Separate application was made to close the express office at Tennille and to extend the Sandersville collection and delivery limits to include all the area then being provided express service in Tennille. Following public hearing on June 15 the Commission authorized the closing of the office at Tennille and the expansion of the Sandersville collection and delivery limits.
RAIL PASSENGER SERVICE
In November of last year hearing was held on the application of the Central of Georgia Railway Company for authority to discontinue
operation of its Passenger Trains Numbers 17 and l8 (The Flamingo) between
Atlanta and Albany. This application involved the discontinuance of the last passenger train service between Macon and Albany, and like the pre
vious application for similar authority early in 1959 'was vigorously
opposed by residents of the affected area. Following extensive hearing the Commission found that the number of passengers riding the Flamingo trains had increased 1 2 $ since the previous application and that the annual out-of-pocket loss had declined 13$. It was held by the Commission that there was now serious doubt as to the propriety of recognizing the full extent of terminal costs of these trains in the light of the con sistent denial by the Interstate Commerce Commission of recognition of any appreciable portion of such expenses as savable costs in comparable proceedings held before that body since jurisdiction over these services was given to it by the Transportation Act of 1958 as result of the effec tive campaigning of the Nation's railroads. For these reasons, and in view of the disappointing failure of the applicant and its operating employees to reach agreement on a change in crew operations which would appreciably reduce the losses of the trains and which both sides conceded would be operationally feasible and safe, the Commission denied the applica tion. The order of denial recognized, however, the deteriorating financial condition of the Central of Georgia Railway and the Commission's order was made subject to the provision that the denial of the application would be reviewed at the end of a further test period showing results of operations of these trains, as well as the results of operation of the railroad as
Page 27.

a whole, for an additional 12 months beyond the latest test period then in the record (such additional test period to cover the 12 months period
ending August 31, 196l). The statistics of the further test period was seasonably filed and showed the operations of the trains to have been con ducted during that period at somewhat lesser out-of-pocket losses - the principal reason for this improvement being the agreement of the operating unions to make the crew adjustment discussed above. The full effect of that agreement was not reflected in the test period statistics due to the fact that it did not become effective until some time after the beginning of the test period and to the fact that before the end of the test period the agreement was cancelled by representative of one of the labor unions involved. Still later during the year this union official once again negotiated with the railroad an agreement permitting the operational changes and the resultant savings. The Commission is still studying the matter to determine whether or not current operations with the revised operating arrangements will permit continued operations without unreason able losses.
In June the Georgia Railroad filed application for authority to discontinue operation of its Passenger Trains Numbers 3 and ^ between Atlanta and Augusta. These trains provide the only remaining night-time railroad passenger service via this line between Atlanta and Augusta and their consist includes a Pullman car which connects at Augusta with passenger trains of the Atlantic Coast Line Railroad which handle the car between Augusta and Wilmington, North Carolina. A witness for the applicant testified that the last time the Georgia Railroad had discon tinued a passenger train on this route had been in August of 1932 and that since that time, except for the war years, traffic had declined in spite of reduced incentive fares offered by the Georgia Railroad. Mail revenues were shown to have recently dropped greatly on these trains due to the transfer to truck by the Post Office Department of much of the mail. Similar drop in express revenue was attributed to the loss of an Atlanta-Richmond express car. The application was strongly protested by residents of the affected area who complained that the facilities and equipment were inadequate and should be improved. As in the other recent passenger train discontinuance proceedings, the difference between outof-pocket profit and loss was caused by the effect of the terminal and Joint facility expenses. As indicated above in the review of the Central of Georgia Railway train-off application, there has been increasing ques tion in the mind of the Commission as to the propriety of recognizing in passenger train discontinuance proceedings the cost of terminal operations particularly where there had been shown little or no anticipated reduction in over-all terminal costs but merely a saving to the carrier involved brought about by the transfer of a portion of such costs to the trains of other carriers operating into and out of that terminal. The Commission acknowledged that it had accepted such costs in some previous passenger train discontinuance proceedings, recognizing that the benefit of the transfer of such costs from one carrier to a larger carrier, or to a group of carriers, would usually outweigh the "burden" of such added costs on other carriers and would improve the financial condition of the single - often small - carrier and would thus be in the public interest. It was pointed out by the Commission, however, that the Georgia Railroad was itself not a separate corporate entity but was merely the alter ego of the two carriers who had leased that railroad property and for whose financial benefits the operations were conducted and that under such circumstances it would appear that for the application to be Justified
Page 28

from a loss or cost standpoint there should result not merely a net savings to the applicant operating organization but an over-all net savings to the applicant and the lessees as a group. Inasmuch as the applicant and its lessees were the only carriers operating in the Atlanta Union Passenger Station it appeared that little, if any, over-all saving would result in the cost of operation in that station As a consequence, the amount shown as terminal expense at Atlanta was rejected by the Com mission as not properly applicable under these particular circumstances. A similar situation was found to exist at Augusta and a portion of that terminal expense was likewise rejected. In consideration of the vigorous protests of interested citizens and the indicated results of operation following the adjustments in terminal expenses, the Commission declined to permit the discontinuance of these trains.
For many years the Central of Georgia Railway has maintained on its lines in the State of Georgia one of the lowest round-trip coach fares applicable anywhere in the United States. This low level of fares has stimulated riding on the applicants intrastate trains and for many years the volume of riding was adequate to permit operation of its principal intrastate trains to at least break even. Increases in operating costs, however, coupled with some diminution in riding, reduced revenues to an extent that the applicants principal intrastate train, the "Nancy Hanks" began to operate in the red. In January the Central of Georgia Railway sought authority to increase its special round-trip coach fares
from approximately 112$ of the corresponding one-way fare to 135$ of the
corresponding one-way fares - the extra revenue computed to approximately balance the losses being incurred on the Nancy Hanks. In consideration of the need to keep these important trains operating at a high standard of efficiency and in consideration of the fact that the increased fares
would still be 25$ lower than all other railroad round-trip fares in the
State of Georgia, the Commission approved the increased fares to become effective on February 1.
Late last year the Georgia Southern and Florida Railway sought authority to discontinue use of the joint passenger station at Tifton and to provide passenger station facilities at that point in the remodeled freight depot building of the Georgia Southern and Florida Railway. Com plaints were received against this proposal from the City of Tifton and the Tift County Chamber of Commerce, but following extended negotiations between the applicant and the Atlantic Coast Line Railroad and the com plainants, the protests were withdrawn and approval given to the proposed change in passenger train facilities at Tifton.
By application dated June 8 the Central of Georgia Railway
sought authority to make four changes in the stops of its "Nancy Hanks" passenger trains in order to improve the on-time performance of these trains and to thereby increase their patronage. Included among those proposed changes was the elimination of the town of Bavisboro as a flag stop. In consideration of objections received from Davisboro the Com mission assigned this portion of the application for public hearing. The applicant did not convince the Commission that the elimination of the flag stop at Davisboro would have a significant effect on the on-time performance of the "Nancy Hanks" trains and it was further found that a commitment made by the top official of the railroad to substitute the services of these trains for those of trains sought to be discontinued should have been honored for longer than two and one-half years since
Page 29.

such commitment was made Under the circumstances, the Commission declined to then permit the elimination of Davisboro as a stop for the "Nancy Hanks" trains and required the continuation of Davisboro as a conditional flag stop for passengers to or from Macon or points beyond and for passengers to and from Savannah,
RAIL FREIGHT
As indicated in last year* s report would be done, additional hearings were held early this year on application of the railroads for authority to increase their freight rates and charges on Georgia intra state traffic to the same extent their interstate rates and charges were
increased on October 2 b , i960 under authority of order of the Interstate Commerce Commission in Ex Parte 223 dated October 20, i960. Following
the railroads* showing of substantial need for increased revenue, the Commission on March 15 granted the increases sought with a number of exceptions. Those exceptions included the limitation of increase in
rates on sand, gravel, crushed stone and related articles to 5$> subject
to maximum increase of 10 cents per ton, and denial of increase in rates on fertilizer and scrap iron and in certain point-to-point rates on clay or shale, marble and cottonseed. The increases sought in transit charges and in minimum charges were denied without prejudice to future applica tions seeking specific adjustment of those charges - the Commission finding that the increases there proposed were far out of line from those generally sought to be made applicable and that a general revenue case such as there involved was no place to seek a major adjustment in charges for specific services, particularly when those adjustments involved basic charges and services* No increase was permitted in terminal switching charges pending final order of the Interstate Commerce Commission con cerning the level of increase it will permit on those charges and further study and consideration by this Commission of the application in the light of such interstate ruling. By supplemental order later in the year the Commission modified its exception as to rates on fertilizers to include anhydrous ammonia when its ultimate use was for agricultural fertilizer such change being in recognition of the fact that this product was being used in Georgia not only as a fertilizer ingredient but also for direct application to the soil as a fertilizing agent.
Early in the year the Southern Freight Association filed on behalf of the railroads operating intrastate in Georgia tariff containing rates on trailer-on-flat-car (more commonly known as "piggyback") move ments. This tariff contained provisions defining the terminal areas in which pick-up and delivery service would be accorded in connection with such trailer-on-flat-cars or "piggyback" movements, with those pick-up and delivery areas, so far as Georgia intrastate traffic was concerned, exceeding the limits under which such operations could be conducted by the railroads without motor carrier operating authority. In order that the legal requirements might be clear, this Commission requested from the Attorney General an official ruling as to the area in which such operations might be conducted by the railroads without specific motor carrier operating authority therefor. By opinion dated March 10, the Attorney General ruled that such "piggyback" terminal operations conducted by a railroad would be exempt under Section 68-602 of the Georgia Code Annotated, from the provisions of the Motor Common Carrier Act of 1931 only to the extent those terminal services were performed within the city limits of origin or destination or within five miles of a railroad freight or passenger depot or station owned, operated or utilized by the carrier operating
Page 30

said "piggyback" service. In accordance with such ruling, the Commission on March 29 advised the tariff publishing officer of the railroads that it would be necessary that all Georgia intrastate tariffs covering traileron-flat-car or "piggyback" movements be amended to reflect the ruling of the Attorney General or as alternative that the railroads obtain from this Commission motor carrier operating rights necessary to perform the services outside the limits specified in the ruling of the Attorney General. Copy of the official ruling was sent to each railroad operating in the State.
By petition dated November l3, 1959, the Southern Railway Company sought authority to cancel, for its account, application of the rate of
65 cents per net ton on crushed stone, stone screenings and granite sand,
carload, from Lithonia, Stockbridge and Tyrone to Atlanta, and to provide
in lieu thereof for account of the Southern Railway that the rate of 65
cents per net ton from Lithonia and Tyrone would not include switching to deliveries on the Southern Railway in Atlanta and that from Stockbridge
the rate of 65 cents per net ton would not include switching to deliveries on other connecting lines in Atlanta. (No change was sought in the 65 cent
rate applicable to 22 other rail stations in the Atlanta group.) By amend
ment dated May 13, i960, the Southern Railway Company amended its petition
to bring up to date the per diem charge cited in the original petition as partial Justification for the proposed adjustment. Several shippers of the commodities involved objected to the matter being considered by the Commission without all interested parties being given opportunity at public hearing to express their views. Inasmuch as there was then pending general application of the railroads in Georgia for adjustment of rates on these commodities in certain type equipment, the Commission concluded to assign both proposals for hearing concurrently in order to conserve time and expense of the applicant, the protestants and the Commission. Due to repeated postponement of the general case (at the request of the applicants) it was determined to proceed with this petition separately.
The matter was assigned for public hearing on September 22, i960, but was postponed at the request of protestants to October 13, i960, at which time
it came on to be heard. At the hearing on October 13 the protestants sought and were granted continuance in order to permit review of the applicants presentation and preparation of their opposition - indication
being made that a period of 30 days would be adequate time for such review and preparation. Further hearing was held on November 15, i960, at which
time the hearings were completed and the record closed. The rate sought to be changed was specifically prescribed by the Commission on November 10, 1948 in Docket 4592-A - the Commission then finding in that proceeding that in order to permit the railroads to maintain rates which appeared necessary to meet truck competition and at the same time prevent undue preference or prejudice to competing quarries it was necessary to pre scribe a rate to apply from Lithonia, Stockbridge and Tyrone to all con suming points in the Atlanta area. The purpose of the rate was to equalize the transportation costs of the three established quarries which are all approximately the same average distance from the Atlanta area stations, to permit the railroads serving those quarries to meet competition of the trucks and of each other in this substantial movement to the large Atlanta market and to remove the artificial barrier to the free rail movement raised by the varying switching and absorption provisions of the various railroads in the Atlanta area. Most of the affected industry and the affected railroads had agreed that throughout the years the prescribed rate had fulfilled the objectives sought for it. The basic contention
of the Southern Railway was that the 65 cent rate "was not compensatory
to the Southern Railway for the services provided in the face of rising
Page 31

costs and the increasing per diem rate"* Extensive cost and movement statistics were presented by the applicant and it was developed therefrom that the proposed adjustment (when modified with necessary reduction in the Stockbridge rate) would return to the Southern Railway additional revenues of only $1,330*96 per year, A review of the car handling statis tics indicated that elimination of the excess per diem charges caused by delay in returning empty cars would alone have bettered the Southern Rail w a y ^ earnings on this traffic by almost twice that net amount. After thorough review of the entire situation, including the cost and handling statistics furnished, and the position of the shippers and other carriers, the Commission found that the maintenance of a higher charge on joint line traffic to Atlanta proper than to the 22 Atlanta group points would be highly discriminatory in that it would result in higher charges for a short haul than for a longer haul over the same route (with no justifica tion having been submitted for such a departure from recognized standards) and that the rate from Stockbridge to Atlanta proper could not be reason ably retained at a level higher than the corresponding mileage scale when the principal benefit to the shipper at Stockbridge would be removed* The Commission concluded that for those reasons alone it would deny the application, even if it had been shown, as there was not, justification for upsetting the previously established basis of equality in rates from these three quarries to the greater Atlanta area - an equality which has been proven to be of as great benefit to the Southern Railway as to the other carriers and to the quarries involved. In a previous general increase proceeding the question of the measure of increase, if any, to be applied on this rate moving these commodities from these quarries to the Atlanta area was deferred pending final action in this proceeding. Upon finding that the rate to the Atlanta area was originally related to the concurrent distance scale and that relationship had been substantially maintained during the ensuing 13 years, the Commission permitted an increase
in the rate of 3 cents per ton which was the same amount authorized for
corresponding movements under the mileage scale.
By petition received October 26, i960, the Solvay Process
Division of the Allied Chemical Corporation filed complaint against the Southern Railway Company and the Atlantic Coast Line Railroad Company objecting to the cancellation by those carriers of a former track oper ating agreement which permitted the Atlantic Coast Line Railroad access to the facilities of Solvay at Brunswick over tracks of the Southern Railway - such access permitting the application of intraterminal switching charges to industries in Brunswick and removing application of any switching charges on line-haul traffic. The complainant alleged that the cancellation of the agreement permitting service to it while main taining a portion of that agreement on service to its competitor served from the same track was unreasonable, discriminatory and prejudicial. The Southern Railway admitted that it had required the cancellation of the agreement, had not sought the approval of the Commission for such cancellation but contended that no such approval was required by the Com mission* s rules or the State law, that Solvay was not damaged because the interterminal switching charges to industries in Brunswick were being applied to its competitor* s movements (even though tariff provisions pro vided to the contrary), that there was no movement to destinations on the Atlantic Coast Line Railroad where line-haul switching charges would apply and that in any event the Commission had no right to interfere with the track use contract there involved. After hearing and briefs on the matter, the Commission concluded that the cancellation of the previously existing operating agreement and the execution of a new operating agreement
Page 32.

excluding Solvay but including its competitor unjustly discriminated against Solvay and preferred its competitor and that there had been no authority sought or could reasonably be granted to so prejudice Solvay. The Commission also concluded that the new agreement should have been submitted to the Commission for approval insofar as concerned the effects of that agreement on intrastate rates, as required by Code Section 93-303 The Commission further held that the requirement of correction of the dis crimination would not create an unreasonable burden on interstate commerce and that its rules not only permitted but required the elimination of the discrimination. By order dated December 11 the Commission directed both the Atlantic Coast Line Railroad Company and the Southern Railway Company to remove the unjust discrimination found to exist either by broadening, insofar as intrastate commerce was concerned, the provisions of the new Joint operating agreement to permit the Atlantic Coast Line Railroad to serve Solvay to the same extent it was permitted to serve Solvay s com petitor or by making such tariff adjustments on intrastate traffic as would give Solvay the same freedom of choice of routes and services avail able to its competitor at the same rates and charges available to that company.
RAIL AGENCY SERVICE
There was some let up during the year in the railroads* program of seeking discontinuance of agency services at the smaller stations. This year the Commission processed applications involving ten stations and as has been the case in the past, most of these applications were based on the allegation that the type and volume of traffic handled at the involved stations were such as to no longer Justify the continuing increase in cost of maintaining agency service. As is its established 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 statis tical showing of revenue versus cost. Of the ten applications processed
during 1961 the Commission found that the public convenience and necessity
of the affected areas would not be adequately served without agency service in two instances and accordingly denied authority to discontinue agency service at Ambrose and Whigham. Authority was granted to discontinue agency service at Andersonville, Dallas, Riceboro, Senoia, Sparks, Statham and White Oak. In addition, authority was granted for a six month temporary discontinuance of agency service at Aragon due to the destruction by fire of the trestle on the spur leading to that station.
In 1958 the Commission authorized the Central of Georgia Rail
way Company to discontinue agency service at Marshallville, subject to the condition that an agent be provided at that point during the peach season of each year. The railroad has since been providing the part-time agency service, although it has been necessary to specifically call the carrier* s attention to this requirement in the past. The volume of peaches shipped by rail from Marshallville has dropped substantially since the Commission*s order and it has become the practice of the packing houses to provide their billing instructions to the railroad by telephone. Under such circumstances, the Commission, on application by the Central of Georgia Railway Company, eliminated the requirement that the carrier provide an agent at Marshallville during the peach season provided the railroad would accept at Fort Valley any collect calls from the packing houses in the Marshallville area in the transaction of railroad business.
Page 33

MISCMANEOUS
For many years the Commission has required the filing by the railroads of monthly reports of accidents occurring on their lines in this State* Similar reports are furnished by the carriers to the Inter state Commerce Commission and while both state and federal reports seek substantially the same information the modification of report requirements by the Interstate Commerce Commission over the years without similar modification of this Commission* s requirements has resulted in considerable variance in the report forms and the conditions under which such reports must be made* After consideration of the differences involved the Com mission concluded that its accident report filing requirements should be modified to reflect the same conditions as the federal requirements and accordingly by orders dated March 15 and April 3, the Commission* s General Rule No. 11(g) was amended to read as follows:
"MONTHLY ACCIDENT REPORTS. Each railroad company and street railroad company in this State, shall, within thirty days after the end of any month, make written reports, under oath, through their proper officers, of all train accidents in which property
is damaged in excess of $750.00 or employees injured and inca
pacitated for more than 2 k hours, occurring on their lines or at their terminals, in the operation of engines, trains, or cars, during the preceding month, on forms to be prescribed by the Commission. When no accidents occur during a month, carriers shall make affidavit to that effect on forms pre scribed by the Commission. Carbon copies of monthly reports to the Interstate Commerce Commission will be accepted as a compliance with this section."
Only one condemnation application was presented to the Commis sion during this year - that involving application of the Central of Georgia Railway Company to acquire certain property in Effingham County to be used in the construction and building of a connecting track leading from the Central of Georgia* s main line at Milepost 44*7 (near Oliver) to connection with the main line of the Savannah and Atlanta Railway Com pany at that railroad*s Milepost 3^*5 (near Ardmore). This application and track construction was in furtherance of the abandonment by the Central of Georgia Railway of its main line in this locality and its substitute operation under trackage rights over the Savannah and Atlanta Railway a proposal determined by the Interstate Commerce Commission to be con sistent with the public interest, with appropriate certificate of public convenience and necessity and other necessary authorities having been granted by that body permitting such substitute operations and specifically permitting the construction of the connecting track for which the land here sought was required. The Commission held that the merits of the change in operations were not here before this Commission since determi nation had been made by the tribunal given jurisdiction over such questions and that the evidence and testimony conclusively demonstrated that under such circumstances the track construction proposed was necessary in the public interest and that accordingly approval should be given to the land condemnation authority sought.
Page 3 k ,

WESTERN & ATLANTIC RAILROAD
On January 27, 19^1, 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 excel lent shape and comparable to that of the best Class I Railroads.

The annual report of the lessee of the Western & Atlantic Rail
road for the calendar year 1961 shows for the net expenditures charged
to the accounting classification "Additions and Betterments" by classes of railroad property, the following amounts:
Improved track materials......$ 189.60 credit
Improved b a l l a s t . 166.08

Land for transportation purposes........

5*00

Bridges, trestles and culverts.......... 10,352.29

Yard tracks and sidings................. 6,480.46

Station and office buildings............ 29,708.66

Signals and interlockers................

93*21

Elimination of grade crossings..........

7*00

The above net additions reported are after deduction for value of property replaced during the year and total $46,623*10. The net capital expendi tures made by the lessee for additions and improvements to the Western & Atlantic Railroad from the beginning of the lease in 1919 through December 31, 19&L amount to $8,038,448.

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 - both in the field of railroad mergers and control and in the field of transportation rates.
There was reviewed in last year's report the proceeding before the Interstate Commerce Commission involving the joint application of the Central of Georgia Railway Company and the Savannah & Atlanta Railway Company to abandon certain trackage in Chatham, Effingham, Burke and Screven Counties and to use each other's tracks through trackage rights arrangements in those areas. The report proposed by the Examiner, follow ing a week of public hearings in Augusta, recommended approval of the abandonment of the Central of Georgia Railway's tracks in Chatham and Effingham Counties and the resultant operation by that carrier over the Savannah & Atlanta Railway between Savannah and Ardmore, but recommended denial of the proposed abandonment of the Savannah & Atlanta Railway's tracks in Burke and Screven Counties. The applicants appealed this partial denial of their proposal, and following oral argument before Division 4 of the Interstate Commerce Commission, in which oral argument

Page 35

this Commission supported the findings of the Examiner as concerned his denial of the proposed abandonment of the Savannah So Atlanta Railway trackage, that Division on February 9 of this year reversed the finding and recommendation of its Examiner and authorised the full extent of abandonment sought* This Commission joined with other protestants in filing petition for reconsideration, but all protests were rejected and by the end of the year the application had been given the stamp of approval and construction of the necessary linking of trackage had begun.
There was reviewed at length in last year* s report the proposal of the Atlantic Coast Line Railroad Company and the Seaboard Air Line Railroad Company to merge their properties in the six Southern States of Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia and the resultant drastic impact on the operations of some of the smaller railroads in this State* The basic presentation of the applicants was tendered last year - requiring many days of evidence and testimony - and during the early part of this year regional hearings were held in Florida, Georgia and Alabama. At a hearing held in Atlanta, a representative of this Commission pointed out to the Interstate Commerce Commission the adverse impact of the proposed merger on operations of three smaller carriers in Georgia and idle resultant threat of diminution in railroad services to a broad area of this State. It was particularly emphasized that the substantial stifling of competition evident in this proposed merger, coupled with the severe damage indicated to be done to at least three railroads in Georgia, forcefully demonstrated the need for either denial of the application as then presented, substantial modification of the proposal through divestitures, trackage rights, extensions of leases and other protective measures or withholding decision until there could be developed by the Interstate Commerce Commission, with the participa tion of all interested parties, a new, comprehensive plan of consolida tions and mergers which would balance the need of the railroads for operating economies and better earnings with the need of the public for adequate, competitive services by strong, interregional railroad systems. The hearings in this proceeding have been completed but no decision has yet been rendered.
One of the railroads drastically adversely affected by the pro posed merger of the Atlantic Coast Line Railroad and the Seaboard Air Line Railroad is the Central of Georgia Railway, and as an outgrowth of that application there was filed with the Interstate Commerce Commission by the Southern Railway Company application for it to acquire control of the Central of Georgia Railway Company and its common carrier subsidiaries. This proposal, affecting as it did almost h yjo of the rail mileage within the State of Georgia by contemplating the control by one interest of a total of 2,682 miles of Georgia*s railroad facilities, demanded the inter vention of this Commission, and. by application dated May 2 k the Commission petitioned to become a party to the proceeding in the interest of the State*s users of railroad services. In order to fully develop the poten tialities of this control proposal before taking a stand in the proceeding, the Commission not only studied the application and its obvious effects on the transportation pattern of the State of Georgia but also held a number of discussions with officials of the applicant, the Central of Georgia Railway, and the other Georgia carriers affected by the proposal, as well as with interested shippers and city and county officials. Com mitments were sought and obtained safeguarding the specific aspects of the public interests - those safeguards including the express intention of the Southern Railway to preserve the identity and integrity of the
Page 36

Central of Georgia Railway as a separate and independent Georgia-based railroad, under separate management with its own traffic department; the retention between Macon and Atlanta of the lines of both the Southern Railway and the Central of Georgia Railway, with both such lines to con tinue to handle the traffic now moving over them; the retention of the operating arrangements of the Central of Georgia Railway and the Savannah & Atlanta Railway with Seatrain Lines (an agreement which will retain for the Port of Savannah this important coastwise service); the continuation by the Central of Georgia Railway and the Savannah 8s Atlanta Railway of those carriers* promotion of the Port of Savannah and the participation of the Southern Railway in that promotion; the maintenance of the Camak interchange between the Savannah Ss Atlanta Railway and the Georgia Rail road which is so important to the economic well-being of both of those carriers and the extension to the Southern Railway of the conditions imposed on the Central of Georgia Railway in the Savannah & Atlanta Rail
way Control Case (Finance Docket No* 16968) concerning the operational
control of that carrier* In addition, the Southern Railway Company agreed that it would accept the six standard conditions usually placed in merger and control proceedings of this type pertaining to the main tenance of routes, neutrality in handling traffic and other traffic arrangements, insofar as concerned both the Central of Georgia Railway and the Savannah 8a Atlanta Railway* In consideration of those factors, and in consideration of the need of the Central of Georgia Railway for economic assistance and stability of control, particularly in view of the substantial losses in traffic anticipated as result of Atlantic Coast Line-Seaboard Air Line merger, the Commission concluded that the continua tion to the railroad-using public of the State of Georgia of the excellent services rendered by the Central of Georgia Railway demanded help of the type proffered in this proceeding and tendered affirmative support to the proposed control application. These factors and conclusions were detailed to the Interstate Commerce Commission at the Atlanta hearing* It was further pointed out that the Commission had been concerned with the effect which the Southern Railway* s proposed control would have on railroad labor but that careful study of the situation had convinced the Commission that if the Central of Georgia Railway were permitted to continue to drift in its sea of financial distress, the long range impact on labor would be much more severe than the impact of approval of the control application* It was also pointed out that there not only had practically been no opposi tion by the shipping public of the State of Georgia to the proposed control but that on the contrary many shippers and communities located on the Central of Georgia Railway had specifically taken a position supporting the proposed control as being in their best interest. The presentation of the Georgia Public Service Commission was summed up by stating that the Commission would, if all other things were equal, much prefer that the Central of Georgia Railway indefinitely remain a fully independent railroad subject to control by no other carrier, but that the economic facts of life would Just not permit such a status and that the control by Southern Railway as then proposed, subject to the conditions which the applicant was willing to accept in this proceeding, coupled with the assurances of the applicant made in the formal record as to its proposed manner of operation under its control, would be in the over-all best interest of the State of Georgia and offered to Georgia prospect of con tinued operation of this important railroad property whose continued economic existence without such help was in serious doubt. Hearings in this case have been concluded and briefs submitted and decision is expected early next year.
Page 37

In March the Seaboard Air Line Railroad and the Atlantic Coast Line Railroad sought authority from this Commission and from the Inter state Commerce Commission to abandon their present passenger station facilities in Savannah and to construct a new Joint passenger station at a different location in that city. Prior to receipt of the application, the Commission had been informed by the City of Savannah, Chatham County and civic organizations within the area that the proposed passenger terminal change met with their approval and had been urged to support the granting of whatever authority was needed in order to permit effectu ation of the construction of a new station and removal of the old station from its present location so that a new highway project might be begun in that area* This Commission was quick to grant all necessary relief from its rules to effectuate the proposed passenger station change and urged the Interstate Commerce Commission to process the applications as expe ditiously as possible without public hearings and to speedily give the necessary approval of that Commission. There was no opposition to this proposal and an early favorable decision from the Interstate Commerce Commission is anticipated.
In August the Georgia Railroad (and Atlantic Coast Line Railroad Company and Louisville and Nashville Railroad Company, Joint lessees of the railroad properties separately operated by them under the name of the Georgia Railroad) sought authority from the Interstate Commerce Commission to construct a spur track in Baldwin and Putnam Counties to serve a new steam generating plant of the Georgia Power Company, in support of this proposed track construction, the Commission reminded the Interstate Com merce Commission of its great concern over the future welfare of the Georgia Railroad, and of the citizens of Georgia served thereby, particu larly in view of the drastically adverse impact on that carrier potential in the proposed merger of the Atlantic Coast Line Railroad and the Seaboard Air Line Railroad. It was pointed out that the present plight of the Georgia Railroad was due in large measure to its dependence on overhead traffic and that its only real hope of long-term salvation lay in the establishment on its line of major railroad-using industries of the type which the proposed track would serve. The Commission took the position that the proposed construction was merely a spur track to reach a newly located industry in a territory tributary to the Georgia Railroad and was therefore excluded from the Jurisdiction of the Interstate Commerce Com
mission by the provisions of Section 1 (22) of the Interstate Commerce
Act and urged approval of a motion by the applicants to dismiss the application. The Commission further urged that should the Interstate Commerce Commission conclude that the motion to dismiss should be denied and should find the application for certificate of public convenience and necessity to be required, that necessary consideration and approval be expedited without formal public hearing in order that there be no delay in providing Georgia Railroad service to this new industry. The Interstate Commerce Commission held that certificate of public convenience and necessity would be required and due to strenuous objection by the Central of Georgia Railway concluded that public hearings would be necessary* At the close of the year no such hearings had yet been assigned.
For many years the Southern producers of lumber - including members of that very important industry in Georgia - have been complaining to this Commission and to the Interstate Commerce Commission about mal adjustments in railroad rates and practices on lumber. This Commission had Joined with other Southern commissions in securing some reductions in rail lumber rates in the recent past but such reductions had failed
Page 38.

to supply the measure of relief badly needed by this industry. A number of Southern lumber organizations early in the year filed a petition with the Interstate Commerce Commission seeking a general investigation of railroad lumber rates and practices - particularly attacking the dis criminatory advantage given to lumber manufacturers on the West Coast by more favorable rates and transit privileges available to that shipping area. This Commission joined with other Southern State commissions and the Southern Governors* Conference in supporting this petition and filed on April 1^- specific representations in support thereof. The discrimina tion against our Southern producers of lumber is so apparent that it was difficult to see how the Interstate Commerce Commission could possibly deny the petition for investigation, but that petition was denied, leaving the Southern lumber interests with no recourse except the expensive timeconsuming procedure of formal complaint. Study is now being given to further action and the possibility of filing such formal complaint.
In July there was published for account of the Southern Railway System greatly reduced rates on grain shipped in multiple car lots of not less than ^50 tons. These rates were to be applicable only in special large cars and were stripped of accessorial privileges such as transit and subjected to restrictive demurrage provisions to require prompt load ing and unloading of equipment. Shortly following the publication for account of the Southern Railway, rates on the same level applicable in standard equipment were published for account of the Louisville and Nash ville Railroad in order to meet competition of the Southern Railway. The rates as originally published for account of both carriers applied on single line traffic from Ohio and Mississippi River Crossings to consuming destinations throughout the South. Great controversy arose concerning the effect of these rates - although they affected a reduction in trans portation charges long sought by the grain-using industries in the South and on their behalf by the Southern State commissions - and as result of protests from concerned shippers and receivers of grain and from competing modes of transportation (whose rates were themselves not subject to regula tion) the reduced multiple car rates were suspended by the Interstate Com merce Commission. While all this was going on at the federal level, the Southern Railway published similar rates on Georgia intrastate traffic from the principal grain-producing points in southern Georgia to the large grain-consuming points - primarily poultry raising centers - in northern Georgia. This Commission, unlike the Interstate Commerce Com mission, permitted the rates to become effective and a considerable volume of grain has been moved under those rates. The intrastate rates have enjoyed an enthusiastic reception in the State of Georgia and the application thereof has spread until such rates are now applicable via every major railroad within the State, with the single exception of the Louisville and Nashville Railroad. Such minor objections as were raised within the State to the rates arose because of the non-application from certain origins, but those objections were met by the spread of the rates to other carriers. This Commission, together with other members of the Southeastern Association of Railroad and Utilities Commissioners, and the Southern Governors* Conference, sought vacation of the order suspending the interstate rates and sought severance of the consideration of the rates proposed by the Louisville and Nashville Railroad, which railroad was a half-hearted advocate of the rates at best. Both these proposals were denied by the Interstate Commerce Commission and the matter has been set for public hearing beginning early next year. This Commission, together with the other Southern State commissions, intends to actively support this reduction which offers substantial relief to the Southern growers and consumers of grain and grain products.
Page 39

UTILITY REGULATION

INTRODUCTION

No activity of state government touches the lives and the economy of the people of the State of Georgia as directly as does the regulation of public utilities. These utility systems constitute a vast industrial and economic complex that is of necessity interwoven in the daily lives of every individual, every home, every business and industry.

The Utility Division, made up of some 12 individuals, such as engineers, accountants, rate analysts, auditors and steno-typists, is under the direction of the Chief Utilities Engineer who is responsible to the Commission for the enforcement of rules and regulations in the provision of adequate and satisfactory utility service for the public. Further responsibility exists in seeing that the utilities file the required monthly and annual reports, and after analysis thereof, makes certain recommendations when rates of return are found excessive and pre pares reports concerning any discrepancy of records for such action as deemed appropriate by the Commission. To achieve these results, an adequate and efficient technical staff must be maintained and proper supervision exercised with emphasis on continuous training in order to keep abreast with the many facets and processes in economics, law, finance, accounting and engineering* Staff Engineers operate complex electronic and gas instruments, obtaining the necessary data to be assured that utility customers1 meters are measuring the commodity purchased within tolerances prescribed by the Commission. Also, that the most economical rates are applied and that no discrepancy is practiced by any utility rendering service to the public*

Because of the shortage of skilled utility auditors, accountants and engineers brought about by the fast growing utility industry, competi tion is keen in both industry and regulatory agencies for such personnel. While working conditions in the state service are comparable to those in industry, the salary scales for state personnel can not be met and therefore losses occur, which of course, require, replacements by individuals who are usually less qualified and which means that they have to be trained for these specific tasks, thus reducing the overall operating efficiency for a limited time.

At the close of the calendar year l$6l, the Commission had
the following number of public utilities under its jurisdiction:

Electric................................ 3

Natural Gas...................

5

Telephone(including 4 co-ops).......... 63

Telegraph.. .......

1

Transit.... ............................ 3

Total

75

NOTE:

In addition, 21 municipally owned gas distribution or pipeline systems operating beyond the county line in which the municipality is located, are subject to the jurisdiction of the Commission. No jurisdiction is exercised over electric co-op systems as provided by law.

Page J-0

EXTRA CURRICULAR ACTIVITIES
The technical staff* in accordance with, the established policy of the Commission* continued actively in the work of Special Committees
of both regional and national scope* During the year 1961* the staff
was engaged in major studies on. Committees of the National Association of Railroad and Utilities Commissioners in the Training of Commission Personnel and the joint NARUC-FCC Problems Committee of the Southeastern Association of Railroad and Utilities Commissioners Special Telephone Committee.
The Third Annual Short Course sponsored by NARUC was conducted at the Georgia Institute of Technology during the 2 -week period August 28-
September 8* 1961. The Special Staff Committee under the chairmanship
of the Chief Utilities Engineer assisted in the design of the short course* the promotion* the conduct and the reporting of the results obtained. The enrollment in the Third Short Course was the largest of
the three previous training programs with 32 individuals from 1m- states
and three Federal Regulatory Agencies participating. Individuals in attendance were primarily of advanced staff level who are engineers* accountants* lawyers* rate analysts and transportation rate specialists.
The subject matter covered during the intensive training period of two weeks presented a broad review* as well as considerable elaboration of the details of the entire field of regulation. Thus* the novice registrant* as well as the veteran staff member benefits substantially by taking the course. The former* perhaps* for the first time* sees regulating of its theories and practices as a whole with the latter's perspectives and activities enhanced and revitalized by virtue of the review and exchange of ideas and experiences which take place in the classroom discussions and laboratory sessions.
At the conclusion of the short course, constructive criticisms were requested* and these are used to make appropriate adjustments in the subject matter and in the general design of the short course.
The NARUC-FCC Staff Committee on Communication Problems commenced another revision of the Telephone Separations Manual during the year. The procedures outlined in this manual are used by Commissions throughout the country for the purpose of separating the telephone plant devoted to the public use into the portions used for interstate and intrastate operations This separation is a necessary factor in order to segregate properly the operations of the individual companies by the jurisdictions involved. In this regard, a member of the staff has spent many wgm hours in intensive work and several committee meetings in order to meet the directive given the staff committee. In addition to the work on the Separations Manual, considerable time was also spent review
ing the special report on Western Electric's operation for the year i960.
As a result* Western Electric reduced prices to the Bell System Companies
on products of manufacture* such as apparatus and equipment b y about 2 .1$
with an annual effect of $18,700*000.00, The exchange and toll cable
prices were reduced by about 2 .7$ with an approximate annual effect of
$5,800*000.00. Two additional price changes were made later in the year effecting exchange and toll cable * the net effect of which was a reduction
of about $1 *300*000.00 annually, with a total net effect of price changes during the year amounting to over $25*000,000.00 annually.
Page 4l

. ' : s 3
Vts&k sf
JtOO

SERVICE
For the third consecutive year, a group of statistical data charts are included in this report They are:
Chart 1 - Number of Complaints Processed in Recent Years Classified by Major Utility Type.
Chart 2 - Total of All Utility Complaints Processed.
Chart 3 - Comparison of Annual Heating Season on Total Degreee Day Deficiency Basis.
One of the great values afforded by trend type charts is the quick and accurate evaluation of information by those unfamiliar with the numerical indexes of comparison. Of course, graphical presentations of statistical data are basic to the detailed study and analysis of utility rates, and for this reason, considerable research is directed toward the extension of this medium in the day to day operation of the Utility Department.
During 1961, the number of electric utility complaints processed dropped from the i960 high of 39^- to 272. However, unlike i 960, no severe
icing conditions were encountered during the year to create service inter ruptions for extended periods.
A particularly noteworthy complaint, which will be discussed further in this report, dealt directly with the ''Residential Wiring Plan" as established by the Georgia Power Company. Due to the fact that this complaint was brought before the Commission by one particular group of citizens, it had very little effect on the statistical data one way or the other.
The number of complaints against the natural gas utilities
rose appreciably in 1961 to a level almost twice that recorded in 1958.
-92 In fairness, however, it should be pointed out that of the k complaints,
a large number can be traced to new applicants who desired aid in having gas mains extended into new service areas. As a result of the increased activity on this particular subject, main extensions had been in need of certain revisions for some time. Accordingly, the Commission, acting on its own initiative, gave lengthy consideration to the operating rules and regulations as practiced by one of the larger natural gas distribu tion utilities in the state, the Atlanta Gas Light Company. As a result of this review, an entirely revised set of rules and regulations for service was filed by the Company. Incorporated therein is a liberalized gas main and service line extension policy which provides more free footage of pipe per average customer, and in addition, provides the Company with a gas use incentive plan to promote the increased use of gas appliances by builder or home owner. It will be most interesting to see what effect this may have on the character and number of complaints processed in the future. A chart on page h3 delineates the precise allowances for customers installing certain gas appliances.
A sizeable drop in the number of telephone service complaints was
encountered in 1961 which brought the total to practically that processed in 1959. Even so, however, the ratio of telephone to electric and natural gas
complaints run approximately five to one and three to one respectively.
Page k 2

S E R V IC E LIN E S
Free Allowances
r

130 Ft. <

100 Ft

V

EXTENSION ALLOWANCES
R e sid e n tia l (1 Thru 4 Units)
3kS
KING

M A IN E X TE N S IO N S
Free Allowances

GAS WATER HEATl IN
UT QjAS
HEATING
JCO.OOo! 8 TU !n&u1
G, AIR C O N OH
11 100,000 fTJ3j I
I !jgSB I
ip O lA S
JDlTHES dryer
W rtr GAr
REFRIG ERATO RS
[Jb

MlSC Grills

IO' for each 10,000 BTU Input.

Gas Lights

Incinerators

395 Ft,

CHART 1

NUMBER OF COMPLAINTS PROCESSED
( hundreds)

Electric Utilities

60s Utilities

Telephone Utilities

NUMBER OF COMPLAINTS PROCESSED IN RECENT YEARS CLASSIFIED BY MAJOR UTILITY TYPE

i i

TOTAL COMPLAINTS
(hundreds)

CHART 2
1951 '52 *53 54 *55 *56 5 7 *58 '59 '60 '61
YEAR
TOTAL OF A LL UTILITY COMPLAINTS PROCESSED

ELECTRIC UTILITIES
As a result of the decision by the Federal District Court of
Philadelphia during the early part of l$6l, 29 corporations engaged in
the electrical equipment manufacturing were found guilty of violation of Section I of the Sherman Anti-Trust Act* In order to protect the public interest of the citizens of Georgia who purchased electrical energy from
the Georgia Power Company and Savannah Electric 8s Power Company, a letter
was addressed to the Presidents of said companies directing that a study he commenced at the earliest practicable date to determine whether or not the "price fixing" on equipment and supplies sold to the electric utilities had resulted in excessive costs. In response to the Commission's directive, the companies replied that the study would be undertaken in an effort to determine whether or not any damages had resulted and, if so, appropriate suits would be filed to cover same. By the end of the year, the Commission was notified that the above mentioned electric companies had joined with a vast number of other utilities to make a complete investigation and study of the problem with respect to property damages sustained as result of the "anti-trust price fixing" conspiracies. This group is known as the AntiTrust Investigation Group". It has now become apparent that the job of the engineering, economics and legal consultants for the group is a most complex one and will require many months of work in order to collect the necessary data that will be used in the processing of claims. The Commis sion is being kept fully advised of the progress being made concerning the investigation, but nothing more can be reported until some subsequent date.
Georgia Power Company
Georgia Power Company proposed to make expenditures for plant
additions i n 1961 in the total amount of approximately $5^,^00,000. To
partially finance these expenditures the Company filed an application with the Commission for authority to issue First Mortgage Bonds, Preferred Stock, and Common Stock. After careful consideration of the evidence adduced the Commission authorized the Company to issue $10,000,000 princi pal amount of First Mortgage Bonds, J O ,000 shares of Preferred Stock for a
cash consideration of not less than $7 ,000,000; also 90,000 shares of
Common Stock for a cash consideration of $9,000,000.
On the following page, there is a brief analysis of the Georgia Power Company's Residential Wiring Plan operations for the reporting year. It would appear that the "Plan" has resulted in an additional investment versus additional sales ratio of approximately 3*17
to 1 . This is an increase over the i960 ratio estimate of approximately 2.32 to 1. The former figure (1961) does include over twice the number of new installations as were included in the i960 report. During the year a
formal complaint was filed with the Commission by a customer of the Georgia Power Company concerning the Wiring Plan. This complaint, in essence, alledged that those customers of the Company who already had sufficient electrical service capacity paid for at their own expense were being discriminated against. The complaint was considered by the Commission and docketed for hearing. The argument supporting the complaint was somewhat twofold:
Page k j

1. As a direct result of the payment made hy the Company to a Wiring Plan participant, that participant would thereafter enjoy a lower net cost per KWH purchased.
2 . That inasmuch as the cost of the payments made hy the
Company to the homeowner constitute a legal expenditure for inclusion in rate base calculations, eventually all customers will be required to pay this cost through higher rates.
After a full and complete hearing on the matter, it was the opinion of the Commission that the "Plan" was not discriminatory in concept. In order to provide additional assurance that the program would function as intended certain additional safeguards were provided for in the decision as issued by the Commission. These were in connection with to whom the payments would be made and the proper labelling of the additional Companyowned facilities.

Effect of Residential Wiring Plan Twelve Months Ended December 31, 1961

New Homes Existing Homes Apartment Units

Number of Installations
Completed
10,321 9,243 2,535

Est. Annual KWH Added (OOP)
51,781 37,879
7,765

Est. Annual Revenue Added

Payments to Contractors For Service
Entrances

$ 706,802+ $1,157,790

473,220 1 ,052,156

108,353

269,830

Total

22,099

97,425 $ 1,288,377 $2,479,776

Payments to contractors for service entrances Additional strengthening of distribution system (est.)

$2,2+79,776 1,599*2+56
$4,079,232

Ratio to Estimated Annual Revenue - 3*17 to 1

Statistical Data in Connection With ______Completed Installations_____

Appliances Installed Water
Ranges Heaters Dryers

House Heating Installed

Spare

Partial

Full

Circuits

(2.5kw & Up) Resist. Ht . Pump Range Dryer

New Homes 9,317 Existing Homes 1,907 Apartment Units 2,219 Total 13,523

3,926
i+,520
732
9,178

870

*+5

2,176

1,668

21 3,067

8 1,721

Page 2+8

73I
175
197 1,103

269 996 6,502

67

2+71 1,431

9

169

207

345 1,636 8,12+0

SAVANNAH ELECTRIC AND PONER COMPANY

The Company continues to show substantial growth. Approximately
$3 >500,000. was spent for new construction. Some $3 ,000,000 is estimated to be required for the year 1962.

In spite of the removal of a number of personnel from Hunter Air Force Base, the Company showed satisfactory progress in acquiring new customers. The Company served a total of 6A,0A0 customers at the end or
1961, a gain of 635 over the previous year.
In 1961 total operating revenues amounted to $12,600,100, represents ing an increase of 2.71 over i960. The following table presents kilowatt-
hours and revenue statistics for the three major classes of service as weru as the percentage of growth over the previous year.

>

KWH Sales (000*8)

Revenues

Residential Commercial and Industrial
Small Commercial and Industrial
*Large

Percent
Increase
1961 Ovsr i960

Percent
Increase
1961 Over i960

2*6,731 1.2 $5,522,AOO 1.2

202,222 2.2

k , 553,100 0.A

213,592 k . 2

1 ,813,300 2.7

The average annual kilowatt hour use per residential customer in 1961 was M i l t compared to 2502 in 1952, an increase of approximately 7W <

The Savannah Electric & Power Company on November 1 , 1 9 6 1 filed a new rate schedule covering Unmetered Outdoor Lighting Service. This
service is applicable to 7,000 lumen clear mercury vapor Limps which may
be served from existing secondary distribution lines of the Company. Th Company will install and maintain the lighting fixtures under a two-year contract and the rates are as follows:
$A.OO per lamp, when mounted on existing poles and served directly from existing overhead secondary distribution lines, plus
$1.00 for each additional wood pole and span of wire
installed.

Page A9

GAS UTILITIES
During the year 1961, the Commission conducted hearings involving
gas utilities and issued the following orders:

Docket Ho. 1080-U, January 31 1961: The application of Georgia Coastal Natural Gas Corporation was approved for amendment to Certificate of Public Convenience and Necessity to remove the Cities of Wrightsville and Soperton from the certificate issued to the above company so that these two cities could seek natural gas service from other sources.

Docket No. 1609-U, March 15 1961: A Certificate of Public Convenience and Necessity was issued to the City of Toccoa for the construction of additional pipeline capacity in Elbert and Hart Counties.

Docket No. 1619-U, May 15, 1961: The application of Mid-Georgia
Natural Gas Company was approved to issue $135*000 six per cent (6$)
fifteen year first mortgage sinking fund bonds, the money, together with
other funds, to be used for the expansion of the system.

Docket No. 1618-U, May 15, 1961: A Certificate of Public Convenience
and Necessity was issued to the Atlanta Gas Light Company for the construction of a gas distribution system at Franklin, Georgia and other
parts of Heard County.

Docket No. 1626-U, June 15, 1961: Amendment No. 2 of Certificate
No. 30 was issued to Atlanta Gas Light Company for the construction of a gas distribution system in the Town of Hull, lying in Clarke and
Madison Counties.

Docket Numbers l63^-U> 1635-U> 1636-U, 1637-U* June 29* 1961:
Certificates of Public Convenience and Necessity were granted to Mid-
Georgia Natural Gas Company, a wholly-owned subsidiary of Mid-Georgia Natural Gas Company, in Barrow, Clarke, Oconee and Madison Counties. By dividing Mid-Georgia Natural Gas Company into two companies makes possible
a saving of approximately $100,000 in the wholesale cost of gas to the two
companies. It should be stated that for rate making purposes, the two
companies will be treated as one.

Docket No. 1632-U, July 12, 1961: Authority was granted to the Atlanta Gas Light Company to issue two (2) shares of its $5 per share par value
common stock in exchange for each share of the Company* s $10 per share par
value common stock outstanding.

Docket No. 1646-U, July 12, 1961: A Certificate of Public Convenience
and Necessity was granted to Atlanta Gas Light Company for the construction of gas distribution systems in the Cities of Canton, Woodstock and Holly
Springs in Cherokee County.

Docket No. 16V 7-U, July 20 19&1: Authority was granted to United
Cities Gas Company to sell $1,200,000 principal amount of 5 3A 1 notes
due June 15, 1981, to issue Stock Warrant, and to issue and sell shares
of common stock upon the exercise of such warrant. The Company serves
the City of Gainesville with natural gas.

Docket No. 1658-U, September 13, 1961: A Certificate of Public

Convenience and Necessity m s issued to the City of Buford to extend

its gas transmission line to serve the Cities of Carl and Auburn in

Barrow County.

50

November IT, 1961, Docket, No. 161+9-U: The Commission granted Certificate of Public Convenience and Necessity to Atlanta Gas Light Company for the construction of a natural gas pipeline and distribution system in Southeast Georgia. The transmission line proposed will extend for a distance of approximately 155 miles connecting with Southern Natural Gas Company's pipeline at a point near Port Wentworth in Chatham County. The cities proposed to be served for which franchises have been granted to Atlanta Gas Light Company, are Blackshear, Brunswick, Hinesville, Patterson, Screven and Waycross.
In our report for the year i960, a comprehensive report was
made of the problems involving the pipeline companies and the Federal Power Commission as it affects the cost of gas of distributors in the State of Georgia. We, also, reported on legislation proposed by a Committee of the National Association of Railroads and Utilities Commis sioners to amend the Natural Gas Act. The Chairman of this ^Committee is this Commission's wn Chairman, Crawford L. Pilcher. According to the
latest information (June 1962) the bill has not yet been reported out o
Committee of the U. S. Congress.
Also, in our report for the year i960, there was shown the
Federal Power Commission cases still pending and the increases in the cost of gas to Georgia distributors. In all the cases the Georgia Public Service Commission was an intervenor and received the cooperation of the various municipalities and gas utilities in a joint effort to keep the price of gas as low as possible.
All of the cases listed in our i960 report involving the South
Georgia Natural Gas Company were settled during the year by agreement and approved by the Federal Power Commission. The settlement resulted in refunds, including interest as follows:

1961.

Albany, City of Americus, City of Ashbum, City of Atlanta Gas Light Co. (Valdosta, Ga.) Bainbridge, City of Cairo, City of Camilla, City of Cordele, City of Dawson, City of Fitzgerald, City of Lumpkin, City of Moultrie, City of Nashville, City of Pelham, City of Quitman, City of Richland, pity of Thomasville, City of Tifton, City of

Total
$239,536.26
1+2,220.19
132.65 91,753-87
1+0,601.51
34,921.72
17,211.1+9
31,381.36 19,336.62 3 ,593-89
1 ,080.68
65,791*^0
201+.82 9,357.88 5 ,459-63 5,237.29 81+,878.22 1 .778.79 $691+,I+78.27

The above refunds covered the period April 195& November 30,

Page 51

Of the eighteen distributors receiving refunds only one, Atlanta Gas Light Company, is under the jurisdiction of the Georgia Public Service Commission.

In allowing Atlanta Gas to increase its rates because of the additional cost of gas by South Georgia, the Commission provided in its orders that: should the Federal Power Commission find that the increases made by South Georgia were excessive and refunds ordered, then, such amounts received would be passed on to the customers of the former. The amount of $91,753*87 received by Atlanta Gas, less certain expenses of
approximately $3 *350.00, approved by the Commission, was passed on to its customers in Valdosta during the months of January, February and March, 1962.

Regarding the Transcontinental Pipeline Company, Docket Nos.
G-I8783 and RP 61-13, both of the cases have been settled and refunds
made as follows:

Docket No.
G-I8783

Docket No. RP 61-13

Total

Atlanta Gas Light Company City of Bowman City of Buford City of Commerce City of Covington City of Elberton Georgia Gas Co. (Gainesville) City of Hartwell City of Jefferson City of Lawrenceville Mid-Georgia Natural Gas Co. Mid-Georgia Gas. Co. City of Monroe City of Royston City of Sugar Hill City of Toccoa City of Winder

$109,1^9.17
232.78
2 ,lh-8.h-5 2 ,197.96 3 ,717.1^
3,444.02
13,2k7.9k
2,933*55
1 ,559.87 3 ,207.85
6,514.17
3 ,507.87
I,5k5.k7
696.I6
11,256.57 3,k25.50
$168,784M

$ 75,4l4.27
132.05
1 ,978.50 1 ,125.67 2,069.06
1,741.10
4,907*64
1,551*27
7 6 3 .6k 1 ,691.37
4,146.11
13k . 38 1 ,939.26
762.23 352.36 3 ,721.18 1 ,833.52
$104,263.61

$184,563.44
36k .83
4,126.95
3 ,323.63 5,786.20 5,185.12
18,155*58 4,484.82
2,323*51 4,899*22
10,660.28 13k . 38
5,kk7.13 2,307.70
1,048.52
ik,977.75
5,259*02
$273,048.68

Of the amount of $109,149.17 received by Atlanta Gas Light Company
in FPC Docket No. G-I8783 only the amount of $16,517*00 has been refunded.
The balance of $92,632.00 is due residential and small commercial customers. Since the amount each of the foregoing customers would receive would be so small, the Commission has agreed to allow the Company to hold up making refunds to these customers until decision is reached by the Federal Power Commission in Dockets G-18512, G-20509 and HP 60-15
The amount of $75,414.27 received by Atlanta Gas Light Company from Transcontinental Pipeline Company in Docket RP 61-13 involves no refunds to the former's customers since the rates were not increased.

Page 52

In the matter of Southern Natural Gas Company FPC Docket Nos.
(j-426 k and G -13258 were settled by agreement between the parties. In Docket G -13258 Southern originally asked for increase in revenue amounting to $18,200,000. which was reduced to $11,022,000. in the agreement.
Docket G-^26^ was also settled by agreement between the customers of Southern and the Company. The increase in revenue originally requested
was $6,650,000.which was reduced to $5,0 0 k ,718. Both of these agreements
were approved by the Federal Power Commission.
Mid-Georgia Natural Gas Company refunds as shown above have been passed on to its customers as required by the Commission.
Thp Georgia Gas Company (Gainesville) has not yet made any refund to its customers. At the time of the request of Georgia Gas Company to pass on increased gas costs by Transcontinental, the Commision in its order allowing the pass-on by the former stated that when final rates are determined the rate of return of Georgia Gas Company would be reviewed* This is now being undertaken.
Of the cases listed in our i960 report there are three still
pending involving Southern Natural Gas Company* They are Docket Nos. G-18512, G-20509 and RP 60-15.
As a matter of interest and to show the growth and development of gas pipelines throughout the State of Georgia, the map on page 5^ delineates various pipelines serving the State and the tap lines constructed by municipalities and distribution companies. The proposed new gas pipeline from Savannah to Brunswick and Waycross was tentative at the close of the year in view of the possible construction of a southeast lateral, line from a point east of Macon off of Southern Natural Gas Company's south pipeline, which lateral could possibly serve some twenty municipalities who are not now receiving natural gas service* These aforesaid municipalities were in the program of the Georgia Coastal Natural Gas Corporation; however, it became apparent to the Commission that because of the delay in receiving an allocation from the Federal Power Commission which resulted in increased cost of gas, the project was considered unfeasible.
Page 53

TALLAP

"7

GAS FACILITIES IN GEORGIA

/

-- LEGEND --

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\

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T R IO N

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VILLE

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r*^SHANNON

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BOWERSVILLE* HARTWELL

cannonF ROYSTON^

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TIRWIN.TON

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SOUTHERN NATURAL GAS CO. TRANSCONTINENTAL GAS PIPE LINE CORP. SOUTH GEORGIA NATURAL GAS CO. DISTRIBUTION CO. GAS P IP E LINES

PRIVATELY OWNED SYSTEM S

MUNICIPAL SYSTEMS

AREA SERVED BY ATLANTA GAS LIGHT CO.

AREA CERTIFICATED TO AGL PREPARED BY
AT LA N TA GAS LIGHT CO. N O V EM BER , 1961

NOV. IT, 1961

SCALE IN MILES
\
EVANS ^M ARTINEZ "''C VAU G U STA

'WAYNESBORO
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PSYLVANI

TALBOTTON

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COLUMBUS
N l FT. BENN1NG
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QUITMAN d \ S '


"X

As has been reported in previous years* the Commission has continued its activity concerning maximum effort to maintain gas rates at the lowest possible level commensuarate with financial security. To accomplish this purpose* it has been necessary to intervene in the various pipeline cases filed by the gas transmission companies. In addition to this work* the Commission has cooperated With the Federal Power Commission in expediting the final decisions in the docketed cases of the gas pipe line companies.

In an effort to reduce the backlog of some {-*000 cases before

the Federal Power Commission* a statement of general policy was issued

fixing initial prices for natural gas sales in the Southern Louisiana and

Mississippi gas producing areas. Accordingly* the Commission intervened

in Docket No. AR 6l~2 and gave notice to the Federal Power Commission on
the 31st day of May* 1961. The Commission was represented at the pre- / hearing conference held in Baton Rouge* Louisiana on June 26* 1961* which

was arranged for the purpose of affording all interested parties an

j

opportunity of being heard with respect to the procedures to be followed

in determining the issues to be tried in the formal area rate hearing

which is to be scheduled at the earliest practicable date. The prehearing

conference* according to the Federal Power Commission order of May 10*
1961* would be limited to issues regarding the determination of the rate

or rates required of the public convenience and necessity for initial

rates in the Southern Louisiana area. Further* any person desiring

to participate in the prehearing conference was required to file a

statement of position regarding:

(1) Interest and claimed right to be heard;

(2) Extent of participation in hearing, pre sentation of evidence and number of witnesses;

(3) Representation* whether as an individual or as a representative of an association group or segment of the natural gas industry or of ultimate consumers.

It was pointed out at the conference that during the past several years* Georgia consumers have experienced repeated and substantial increases in rates for gas service. The upward trend is still in progress and shows at present no prospect of abatement. The rise in local gas rates has been mainly attributable to increases to the distributing companies in the State of Georgia for gas purchased from Transcontinental Gas Pipe Line Corporation and Southern Natural Gas Company. Increased pipeline rates, in turn* have stemmed in large measure from sharply rising producer charges.

Subsequent to the prehearing conference, the Federal Power Commission examiner issued his report for the consideration of the Commission covering the results of the conference and recommendations for appropriate action by the Commission in docketing the rate matter for for hearing.

Page 55

TELEPHONE UTILITIES
During the year 1961, numerous rate applications were filed' with the Commission hy independent telephone companies. Each such application requested authority to increase rates for telephone service in order to provide revenues sufficient to meet the increased cost of rendering telephone service to subscribers. Increased revenues from the rates proposed by these applicants aggregated some $35*685 Per annum while rates authorized by the Commission in its orders were estimated
to produce aggregate increased revenues of some $13*7^1 per annum.
Nine orders were issued by the Commission pertinent to applica tions filed by companies and cooperatives, which are financed by KEA, establishing rates for telephone service upon completion of new or expanded telephone facilities. Total annual local service revenues from rates
proposed by these companies amounted to $988,93^-* After full and complete
hearing of these matters, the total revenue increase granted by the Commission in its orders amounted to,$917*006. In addition to the fore going applications, there were 20 orders published by the Commission regarding applications wherein independent telephone companies in Georgia were authorized to obtain loans and issue securities in the total amount
of $1^,851,875* Of this, some $9,06^,000 was authorized to be borrowed
from the Rural Electrification Administration, Washington, D. C.
On V fa x c h 22, 1961 the Commission issued a Non-Docket General
Order revising the rules and regulations governing customers deposits with independent telephone companies. The revised rules provide for the
payment of interest on deposits at the rate of 6$> per annum to be made
upon application by the customers, but not more frequently than once a year.
On February 9* 1961 the Commission issued a Rule Nisi against Blue Ridge Telephone Company, to show cause why the Commission should not require efficient, adequate and dependable telephone service in Blue Ridge, Georgia, and failing therein, why rates in effect should not be reduced and made commensurate with the character of service being rendered to subscribers. Public hearing on this matter was held before the Commis
sion on March 1, 1961. After careful consideration of the evidence and
testimony in this case, the Commission concluded that the rates for tele phone service provided b y Blue Ridge Telephone Company should be reduced. Therefore, it iras ordered that the monthly rates charged subscribers by Blue Ridge Telephone Company for telephone service rendered by the Company were reduced 25^ per month per main station effective on
bills rendered on and after May 1, 1961. Such reduction in rates to
remain in effect until telephone service standards have been restored to an adequate level, subject to investigation and approved by the Commis
sion's Engineering Staff. Subsequent to May 1, 1961, monthly progress
reports of the Company as filed with the Commission indicate that the proposed project is now under construction. As of December 31* 1961, new construction, conversion and improvements of existing telephone facilities to render adequate service to subscribers are on schedule.
Page '.56

On July 6, 1961 the Georgia Telephone Association submitted an
extensive study relating to mileage rates for graded telephone service outside the base rate area. This study was prepared for the Georgia Telephone Association by Engineering Associates, Inc. of Atlanta, Georgia and is a supplement to another study submitted on October 18, i960. In order to derive the average makeup of a typical Georgia rural telephone facility, a hypothetical rural composite mile was determined by analyzing six Georgia Telephone Company exchange areas varying geographically from extreme north Georgia to central, south and southeast Georgia. Prices used in the study were derived from construction bid contracts with out
side contractors. As of December 31, 1961 the mileage rate study is
awaiting Commission decision. In the study submitted by the Georgia Telephone Association
certain companies were selected as typical of those having mileage problems. This analysis is shown on page 58. Also, shown are some comparable mileage charges of other southeastern states together with proposals made by the staff to the Commission for consideration when the matter comes up for decision.
Page 5?

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L .;';1 v)'V 2 O i J d J '-"O 'J L :.3>'



te:, ',

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,3 v r.

SELECTIVE ANALYSIS OF SUBSCRIBERS PAYING MILEAGE CHARGE Test Months -- July and August, 1961

Nelson-Ball Ground Tel. Co.
Thomaston Tel. Co. South Georgia Tel. Co., Inc. (Folkston Exchange Only)
Cairo Telephone Co.
General Telephone Co. (Fitzgerald Exchange Only)
Georgia Telephone Corp.

Total

Main

Mileage Charget Subscribers

Stations 1 -Pty. 2 -Pty. 4 -Pty. Total

802

19

l4

IO6

139

4981

bo

48

36

124

568

16

28

28

72

Annual Mileage Revenue

Present Rate

G.T.A. Rate

Staff
Rate #1

Staff
Rate #2

$1,077-60 $2,155-20 $1 ,831.92 $1 ,616.40

1,867.20 3 ,73U.to 3,174.2^ 2,800.80

1,513-20 3 ,026.40 2 ,572.44 2,269.80

2114

20

17

23

60

2371

73 153

114

3IK)

1,059-60 2,763.60

2,119-20
5 ,527-20

1,801.32
4 ,698.12

1 ,589.40 4 ,1 4 5 .4 0

1^93

23

37

98

158

3,132.00 6 ,264.00 5,32^.to 4 ,699.20

Rate

Line Mileage Rate Per Quarter Mile

1 -Party Sub.

2 -Party Sub.

4-Party Sub

Present

40$

20$

10$

G.T. A. Proposal 80$

40$

V 20$

Staff Proposal 1 68$

3 H

Hi

Staff Proposal #2 60$

3<#

v?i

Other Southeastern States-Mileage Rates

State

1 -Party 2 -Party 4 -Party

Alabama

40$

20$

10$

Florida

42$

21$

11$

S. C.

63$

32 i

16$

Tennessee

50i

30i

20$

N. C.

63$

32 i

l6$

Mississippi 5o i

m

15 i

Tabulated below is a comparative statistical summary setting

forth pertinent information relating to REA financed independent telephone

companies in the State of Georgia.

Increase

Dec* 31, 1961 Dec. 31, i960 (Decrease)

Number of borrowers Total loans approved Funds advanced to borrowers Loan applications on hand Number of telephones in service

$39,736,000
$28,285.76^
$ 4 ,816,000 76,789

35 $32,484,000 $2 2 ,5 5 1 ,9 4 3
$ 7,183,000
68,112

2
$7,252,000
$5 ,7 3 3 ,8 2 1 ($2 ,367,000)
8,677

On November 7 , 1961 General Telephone Company of Georgia ( a
new corporation) filed an application with the Commission requesting authority to acquire ownership and control through purchase of all the capita stock of Consolidated. Telephone Company, Inc., Bhoktoh Telephone Company and Tri on Telephone Company. Public hearing on this matter was held before
the Commission on November 22, 1961* These three (3) corporations and
subsidiaries operated telephone 'exchanges in th -following municipalities and/or communities:

Berlin Boston Broxton Chatsworth Cohutta Coolidge Dalton Doerun Douglas Hahira Lakeland

Lyerly Meigs Menlo Morven Moultrie Norman Park Pavo Ray City Summerville Trion Tunnel Hill

to the evidence, General is a new Geor,

U .U .J -J

- --------------------- ------------------------ ------------' ------------------- ^

adequate corporate authority to do those things prayed for in the applica

tion. Testimony by the Company stated that the prices paid for the capital

stock and certain other securities were fair, just and reasonable and in

the best interest of the public, and that prices were determined through

competitive bidding. Further testimony stated that the prices proposed

to he paid were submitted in direct competition to other bidders.

It was apparent that General was adequately capitalized and financially capable of carrying out the improvement and extension of services necessary in all the several exchange areas. Also, General offered testimony that it would expand the services and facilities in these areas as soon as practicable in an economically feasible manner. The Commission is to be kept advised of the Company's progress in providing service, improvement and of the elimination of held orders through new installations in all of the exchanges.

Page 59

The Commission believes that operating economics and general efficiency will be achieved by the merger or liquidation and dissolution of many of the corporate entities affected herein. Also, the Commission has carefully reviewed the purchase agreements and the exhibits and find that they adequately and fairly reflect the terms and conditions of the transactions.

After careful consideration of the evidence and testimony in this matter, the Commission concluded that the authority prayed for was in the best interest of the citizens of Georgia. It was the decision of the Commission, therefore, that authority for the acquisition by General Telephone Company of Georgia of all the outstanding capital stock of Consolidated Telephone Company, Inc* Broxton Telephone Company and Trion Telephone Company should be approved and appropriate order was issued with the stipulation that the matter would be subject to such further orders as may seem meet and proper to the Commission.

During the year l$6l Southern Bell Telephone and Telegraph

Company spent on the construction of new facilities an amount in excess of

,000,000. It added *7 ,81*4 additional telephones and at the end of the

year had in service 1 ,129,635 telephones. Also, during the year 30>56?

customers were furnished a higher class of service.

TOTAL

CONVERSION - MANUAL TO DIAL.

STATIONS

Cordele Elbert on Savannah Beach Cedartown Tifton

April 9} 1961 May 7 , 1961
May 21, 1961
June 18, 1961
Sept. 17, 1961

^905
5 ,68^41,215
5,236
7,136

CENTRAL OFFICE REPLACEMENTS

Lumber City Hogansville Austell

May

1961

July % 1961

Dec.

1961

325
1,75^ 8,053

NEW EXCHANGE Tucker

June 18, 1961

*4,002

The new exchange at 1Tucker, Georgia was establishe the overloaded conditions in the Clarkston and Chamblee central offices and as a result, the service in these areas was improved.

Southern Bell Telephone and Telegraph Company established the
Atlanta Metropolitan Plan on October 2 , i960. During the year 1961, four
( k ) exchanges were added to the "Atlanta Local or Toll Free Calling Area".
These exchanges are Alpharetta, Conyers, Powder Springs and Palmetto.

Page 60

Extended Area Service was also provided between the following exchanges:

Exchanges Temple-to and from
Carrollton Villa Rica Bremen Total

Total Stations Local Calling Area
^35
6,036 1.502 2,088
10,o6l

RATE FROM
II

GROUP TO VI

Carrollton-to and from Temple Villa Rica
*Bowdon *Bremen *Roopville Total
Villa Rica-to and from Temple Carrollton
Total
Bremen-to and from Temple
*Carrollton *Buchanan *Tallapoosa Total

6,036
*65
1,502
1,729
2,088
511
12,301
1,502 ^35
6,036
7,973
2,088 b 35
6,036
61*9
1,312 10,520

VI

VI

III

V

VI

VI

*EAS in Service
(Rate changes above effective September 17, I961)

Rome-to and from Cedartown Cave Springs Adair svi lie Kingston
Total

23,379
h ,769
352 635 118
29,283

VI

VII

Cedartown-to and from Rome Rockmart Cave Springs Buchanan
Total

^,769
23,379
2,678
352 629 31,307

IV

VII

Page 6l

EXCHANGES

Total Stations Local Calling Area

RATE FROM

GROUP TO

Adairsville-to and from Rome Kingston Calhoun Cartersville
Total

635
23,379 148
3,990
5,986
34,130

n

VII

Cave Springs-to and from Rome Cedartown
Total

352 23,379
769
28,500

ii

VII

Buchanan-to and from Cedartown Bremen Tallapoosa
Total

629 it,769
m ask
1,291
B /m

IV

V

Rockmart-to and from Cedartown
Total

2,678 4,769
7,447

IV

V

Kingston-to and from Rome Cartersville Adairsville
Total

148 23,379
5,986
635
30,148

V

VII

Calhoun-to and from Adairsville
Total

3,990
635 5^25

17

IV

(Rate changes above effective June 18, 1961)

Covington-to and from Conyers
Total

5,557 2,571
8,126

V

V

(Rate changes above effective April 2 , 1961)
The rates in effect at the Conyers exchange entitle subscribers to an unlimited number of messages to all stations bearing the designation of a Conyers, Covington or Atlanta Metropolitan Area central office.

Rage 62

EXCHANGES
Tifton-to and from Omega
Total

TOTAL STAIONS

RATE GROUP

LOCAI CALLIHG- AREA FROM

TO

7,182
319 7,501

V

V

(Above rate change effective September 17, 1961)

Royston-to and from
Elberton Total

1,99k 5,790 7,78k

IV

V

(Above rate change effective May 7 , 196l )

Lawrencevilie-to and from Logansville
Total

k ,526
668

IV

IV

(Above rate change effective August 27, 1961)

Savannah-to and from Pooler Savannah Beach
Total

73,13k
997 1,153 75,204

VII

VII

Savannah Beach-to and from Savannah
Total

1,153
73,13k
74,207

III

VII

(Above rate change effective May 21, 1961)

Hazelhurst-to and from Lumber City
Total

1,869
337 2,206

IV

IV

Lumber City-to and from Hazelhurst
Total

337 1,869 2,206

II

IV

(Above rate change effective May 21, 1961)

Albany-to and from Sylvester Newton Leesburg
Total

29,256 2,577 k03 44l
32,677

VII

VII

Page 63

EXCHANGES
Sylvester-to and from Albany
Total

TOTAL STATIONS LOCAL CALLING AREA

RATE GROUP FROM TO

2,577
29,256
31,033

IV

VII

Newton-to and from Albany Camilla
Total

1*03
29,256
2,119 31,778

II

VII

(Above rate change effective December 2h , 1961)

The Company submitted letters and documents from city, county and state officials, businessmen, and representatives of civic organiza tions in which their approval was given for the establishment of extended area service in the aforementioned exchanges.

DIRECT DISTANCE DIALING

Direct Distance Dialing was furnished in the following exchanges:

Cordele Cedartown Covington Elberton

Logansville Social Circle Rome Tifton

EXCHANGES PLACED IN PROPER RATE GROUP

RATE GROUP FROM TO

Cochran Greensboro Lumpkin McDonough Sparta Sparks Richland Thomas ville Wrens

October 2 , 1961 December 1 , 1961 November 1 , 1961 December 1 , 1961
November 15, 1961
December 1 , 1961
November 1 , 1961 November 1 , 19&1 November 2 0 , 1961

n i IV

h i IV

h

III

in IV

h

III

h i IV

h

III

V

VI

h

III

B 1F

B 2F

BUF b 8f RIF R2F B k F R8F

GROUP II

( 0-925)

GROUP III ( 926-1800)

GROUP IV

c 1801- 5000)

GROUP V

( 5001- 9000)

GROUP VI GROUP VII GROUP VIII

( 9001-25000)
(25001-75000) ( OVER 75000)

ATLANTA METRO

5.50
6.00
6.50
7-35 8.35
10.65 15.00
17.00

IJ..75
5*25 5-75
6.35
7-35
9^0 13.00
15.00

K ,qo
^*50 5 -oo
5-60
6.35
8.15 11.00
13.00

3.IO 3.OO 2.65

3.25 3-25 2.65

3.5O 3.5O 2.9O

3.75
^h.63o5

3.80
k.ko k.90

3.2O
3-55
k.05

9.ko 9.ho ^55

6 .4o 6.00 5.OO

2.35 2.35 2.35
2.60
3.00
3.25 3-75
6-.00

2.35 2.35 2.35 2.60
3.00 3.00
3-75
U.OG

Page 6k

A new method of mileage charges

initiated by the Bell

System in two localities with the approval of the Commission. In the

Atlanta and Brunswick Exchange Areas, the Bell Telephone Company is now

billing its customers for mileage charges on the basis of a ''Band Rate".

As in standard mileage charges, a limited territory is designated as the

Base Rate Area (BRA). Prom the BRA boundary, however, the Bell Company

sets a number of succeeding bands of varying widths around' the BR&:

charges telephone subscribers $1.00 for each band distance they are

beyond the BRA. These "Bands", which vary in width from about a hundred

feet to two miles or more are filed with the Commission in the form of a

map for each exchange affected. As a result of this change, approximately

23,000 subscribers in Atlanta and Brunswick received a reduction in their

total bill for telephone service. The remaining subscribers were unaffected.

Through these reductions the Southern Bell Company's revenues were reduced
$239,000 annually. Listed below is a schedule setting forth the charges

under the "Band Rate" system. These apply in addition to local service

exchange rates in both Atlanta and Brunswick.

Mileage Band

Individual Line

2 -Party
Line

Party Line

Rural Line

1

$1.00

$ .60

$ -3>

Wot Offered

2

2.00

1.20

.60

Not Offered

3

3.00

1.80

.90

$ .25

k

k.O O

2.^0

1.20

.50

5

5.00

3.00

1.50

75

6

6.00

3 6o

1.80

1.00

7

7.00

1^.20

2.10

1.25

After careful consideration of the evidence In this case, the Commission concluded that the mileage "Band Rate" for graded telephone service, submitted in the application by Southern Bell Telephone and Telegraph Company, should be granted. Said rates to become effective
October 1 , 1961.

A new service offering, called Wide Area Telephone Service, was offered by Southern Bell Telephone and Telegraph Company to Georgia telephone customers in June, 1961. Designed for use by large industrial subscribers, this service provided unlimited toll-free calling within a specified area or areas for an additional fixed monthly rate. Since initiation of this service by Southern Bell, certain independent telephone companies have voiced complaint that users of this service are causing them loss of toll revenue through alleged unfair practices. The main complaint seems to be that certain subscribers to the Wide Area Telephone Service will refuse to accept a collect call from their customers and then, by pre-arrangement, immediately place a toll-free call back to that same customer. If it becomes apparent that this abuse is widespread, further action may become necessary by this Commission.

On March 6, 1961 the Commission issued a non-docket general order concerning Continuing Property Records for independent telephone companies. It was brought to the attention of the Commission, during the year i960, that Staff Auditors of REA were requiring some independent telephone companies in Georgia to install Continuing Property Records. The request for establishment of Continuing Property Records was made by REA to supplement the requirement of the REA loan. At the request of the Commission, the Staff made a comprehensive study concerning the requirements
Page 65

that would "be necessary to facilitate a workable Continuing Property Record. Hie Commission Staff visited several independent telephone companies, was present at several REA workshops, and held various con ferences with independent telephone company accounting personnel concerning the use of Continuing Property Records. After careful consideration by the Commission Staff relating to adequate company personnel, additional accounting expense to smaller companies, and other necessary requirements for adoption of a Continuing Property Records System it was recommended that all Class "A" and "B" telephone companies be required to install Continuing Property Records.
After careful consideration of the study and recommendations presented by the Commission Staff, it was the opinion of the Commission that companies who, according to their annual revenues as required by the Uniform System of Accounts, are classified as Class "A" or Class "B" companies shall be required to install and maintain Continuing Property Records. This requirement will not apply to companies who fall within Classes "C" and "DM. Each Class "A" and Class "B n company shall before installing a Continuing Property Record submit to the Commission an out line of the plan to be used in the compilation of its Continuing Property Record with respect to each class of property held. The plan is to include a list of property-record units proposed for use under each plant account and copies of the proposed procedure describing the use of all forms required in the operation of the Continuing Property Record along with samples of each such form..

LOAN AND SECURITY MATTERS

TELEPHONE

Name of Utility
Planters Rural Telephone Cooperative, Inc. Brantley Telephone Company, Inc. Ringgold Telephone Company General Telephone Company of the Southeast Darien Telephone Company Ellijay Telephone Company Standard Telephone Company Pineland Telephone Cooperative, Inc. Hart County Telephone Company Cherokee Telephone Company, Inc. Byron Telephone Company, Inc. Public Service Telephone Company Union Point Telephone Company, Inc. Chickamauga Telephone Corporation Statesboro Telephone Company Coastal Utilities, Inc. Trenton Telephone Company Dixie Telephone Company Wilkinson County Telephone Company, Inc. Plant Telephone and Power Company, Inc.
Page 66

Date of
Order
i Jan. I96I
Jan. 13, 1961 Jan. 13, I96I
Feb. 22, I96I
March 1, 1961 April 18 , I96I April 18 , 1961 June 15, I96I June 15, I96I June 29, I96I
July 12, 1961
July 12, 1961
July 28, I96I
Aug. 7 , I96I
Sept.. 22 , 1961
Sept.. 22 , 1961
Nov. 1, 1961
Nov. 30, I96I Nov. 30, I96I
Dec. 21, 1961

Docket Number
I586-U I597-U
1595'-U
1607-u I60I-U 1615-U 1613-U 1627-U 1628-U I639-U 1623-u
1633-0
557-U
1651-U 1657-u 1661-u 1663-u 1669-u 1664-u 1680-u

RATE MATTERS

TELEPHONE

Name of Utility

Date of Order

Docket Number

Planters Rural Telephone Cooperative, Inc. Brantley Telephone Company, Inc. Ringgold Telephone Company Quincy Telephone Company Broxton Telephone Company Douglas Telephone Company Chickauauga Telephone Corporation Coastal Utilities, Inc. Wilkinson County Telephone Company, Inc. Plant Telephone and Power Company, Inc. Commerce Telephone Company (First Supple
mental Order)

Jan. b , 1961
Jan. IS, 1961
Jan. 13, 1961
May 31, I96I June 15, I96I June 15, 1961 Aug. 7 , 1961 Sept. 22, I96I
Nov. 30, 1961
Dec. 21, I96I March 22, 1961

1587-U 1598-U
159^-U
I616-U I599-U 1600-U 1650-U I66O-U I665-U I68I-U
150 -U

TELEPHONE CERTIFICATES ISSUED IN I96I

EXCHANGE CERTIFICATES TYPE OF ORDER

Name of Utility

Date of Docket Amend- Rule Acqui- New Ex- Toll Order Number ment Nisi sition change Lines

Planters Rural Telephone

Cooperative, Inc.

Jan. b

1598-U

X

Planters Rural Telephone

Cooperative, Inc.

Jan, b

1590- U X

Planters Rural Telephone

Cooperative, Inc.

Jan. b

1589-U

X

Planters Rural Telephone

Cooperative, Inc.

Jan. b

1591- U

X

Southern Bell Telephone

gs Telegraph Company Jan. 11 I603-U

X

Dixie Telephone Company Feb. 1 1^00-U

X

Blue Ridge Tel. Company

Feb. 9

1608-U

X

Southern Bell Telephone

85 Telegraph Company Feb. 16 I606-U

X

Southern Bell Telephone

8s Telegraph Company March 29 I6II-U

X

Blue Ridge Tel. Company April 18 I608-U

Nelson-Ball Ground Tel. Co March 15 I6IO-U

X

Chickauauga Telephone 8s

Walker County Tel. Co. Aug. 23 1577-U

X

Quincy Tel. Company

May 15 1^+27-U

X

Southern Bell Telephone

8s Telegraph Co.

May 31 l62ii-U

X

Page 67

Name of Utility

Date of Docket Amend- Rule Acqui- New Ex- Toll Order Number meat Nisi sition change Lines

General Telephone Company

of the Southeast

May 31 1625-U

Southern Bell Telephone &

Telegraph Company

June 1^ 163I-U X

Standard Tel. Company

June 15 153^-U X

General Telephone Company

of the Southeast

July 12 l6^2 -U X

General Telephone Company

of the Southeast

July 12 16^3

X

General Telephone Company

of the Southeast

July 12 l6Ul-U X

General Telephone Company

of the Southeast

July 12 l6^0 -U X

Consolidated Tel. Co.,Inc. June 29 1638-U

Byron Tel. Company, Inc. July 12 1620-U

Byron Tel. Company, Inc. July 12 1622-U

Fairmount Tel. Co., Inc. July 12 164^-U X

Fairmount Tel. Co., Inci. July 12 16^5 -U X Byron Tel. Company, Inc. July 12 1621-U X

Plant Telephone & Power

Company, Inc*

July 20 1I19I1--U X

General Telephone Company

of the Southeast

July 27 165^-U

Dixie Tel. Company

Aug. 7 1^-00-U X

Plant Telephone & Power

Company, Inc.

Sept.13 1656-U

Standard Tel. Company

Sept.13 l653"u

Quincy Tel. Company

Nov* 1 1^27-U X

General Telephone Company

of Georgia

Nov. 30 1678-U

Plant Telephone & Power

Company, Inc.

Nov. 30 1^-9^

X

Cairo Tel. Company

Nov. 30 I67I-U X

Wilkinson County Tele;phone Company, Inc.

Nov. 30 1666-U X

Wilkinson County Tele phone Company, Inc.

Nov. 30 1667-U X

Wilkinson County Tele phone Company, Inc.

Nov. 30 1668-U X

Southern Bell Telephone &

Telegraph Company

Dec. 13 1679-U X

X
X X
X
X
X

XX

Page 68

TRANSIT UTILITIES

Georgia Power Company was required under order of the Securities and Exchange Commission to dispose of its transportation properties. In meeting with this requirement Georgia Power Company filed a petition with the Commission requesting authority to divest itself of the ownership and operation of its Rome, Georgia transportation properties and by such action thereafter vest in the City of Rome, Georgia the ownership of such facilities. Public hearing of this matter was set for
and heard before the Commission on September 1, 1961.

By order dated September 1 , 1961, Docket No, 1655-U, the
Commission granted the petition of the Company. In its findings, the Commission concluded that the authority requested by the Company was in the public interest, in that the said transfer of facilities would insure continued local transit service for the citizens of Rome and would eventually relieve the rate payers of Georgia Power Company of continued transportation losses sustained by this transit operation.

On July 10, 1961 Bibb Transit Company filed an application with the Commission requesting authority to increase fares from 15$ to

20$ for straight cash fares as well as authority to establish a token

rate of fare at the level of five (5) tokens for 85$, all such fares to

include the 31 Georgia sales tax. This application was assigned for
hearing and heard before the Commission on September 13* 1961, docket

number I652-U. After careful consideration of the evidence adduced,

the Commission found that the full increase in fares requested by the

Company was not justified and the Commission authorized in lieu thereof

a straight cash fare of 20$ and a token fare at the level of three (3)
for 50$. The increased fare was found to be necessary because of the

passenger decline experience of the Company as well as its increased

\

cost of operation -- principally increased wage payments. The new fare
was authorized to become effective at 12:01 A.M. on October 21, 1961.

Public hearing on an application, Socket Number l6l2 -U,
involving a request by Atlanta Transit System, Inc. and Metropolitan Transit System, Inc. (the "Petitioners") for authority to establish a transfer charge of 5$ including the jfo Georgia sales tax was held before
the Commission on April 5 > 19^1 , At the conclusion of the hearing, the
Commission in its consideration of the evidence and testimony instituted an investigation regarding the question of the legality of Petitioners' proposed action of charging for a transfer in addition to charging a regular fare.

In connection with said investigation, Petitioners at the request of the Commission submitted information pertinent to the
ordinance dated February 8, 1902, regarding the franchise that the City
of Atlanta gave to the predecessors of the Atlanta Transit System, Inc. and the Metropolitan Transit System, Inc. concerning the right of Petitioners to collect an added charge for a transfer. The franchise information submitted by Petitioners was subsequently submitted by the Commission to the Attorney General of the State of Georgia for a ruling as to the legality of such a transfer charge.

By letter dated April 2b , 1961, the Attorney General ruled
that the franchise ordinance of the City of Atlanta dated February 8,1902
Page 69

was valid and that said franchise ordinance prohibited the Atlanta Transit System, Inc. and the Metropolitan Transit System, Inc. from charging for a transfer.
In view of the ruling by the Attorney General of the State of Georgia, and in view of the law stating that the Attorney General's opinion is binding on the Departments of the State of Georgia, unless and until set aside by a court of competent jurisdiction, the Commission
by order dated April 2 5 , 19&1 , docket number l6l2 -U, denied the applica
tion of Atlanta Transit System, Inc. and its wholly-owned subsidiary
Metropolitan Transit System, Inc. for authority to charge 5^ for a transfer.
Subsequent to this decision by the Commission, Petitioners made application to the Mayor and Board of Aldermen of the City of
Atlanta, requesting that the ordinance approved February 8, 1902 be
amended so that a charge could legally be made for transfers issued by Petitioners, provided such a transfer charge be authorized by the Georgia Public Service Commission or other proper state regulatory body having jurisdiction to fix Petitioners ' fares. This application to amend the
ordinance dated February 8, 1902 was approved by the Board of Alderman
of the City of Atlanta on November 8, 1961.
Having secured the above amendment to its franchise ordinance, Atlanta Transit System, Inc. and Metropolitan Transit System, Inc. on
November 16, 1961 filed a new joint application with the Commission for
authority to discontinue the sale of passenger tokens at the current discount rate as well as authority to establish a charge of 5$ including
the 3$ Georgia sales tax on issuance of a transfer from one line of
either System to another line of either System under existing rules and regulations for issuance, acceptance and usage of transfers. Both Systems to continue to issue free transfers upon request upon payment of regular cash fares to and from feeder buses of either System from and to main lines of either System and both Systems to continue free transfers upon request to bona fide school passengers upon payment of school fares. This application was assigned for hearing and heard before the Commission
on December 1 , 1961, docket number 1682-U.
Petitioners * application under docket number 1682-U, was based
on the need of additional revenues occasioned by a continuing passenger decline; greatly increased costs, particularly high wage costs, taxes and increased prices of articles and services required in Petitioners ' operations. It was shorn by Petitioners that current operations were being conducted at a loss and that such operations in a full year at current fares would incur a total operating loss in excess of $575>000.
In its showing, Petitioners alleged that only 2 7 .84$ of its
total adult passengers would pay the proposed charge of 5^ for a transfer. This passenger transfer use factor was derived by the application of Peti tioners'present free transfer use experience of 38.60$, times the ratio of the overall average of a 5^ transfer use, to the overall average of a free transfer use, as experienced by the transportation systems in the Cities of Birmingham, Alabama; Miami, Florida; Des Moines, Iowa; and Jacksonville, Florida during a specific period in each such city.
Page 70

In this showing Petitioners did not demonstrate to the Commission that the characteristics of the transportation services available to riders in the Cities of Birmingham, Miami, Des Moines, and Jacksonville were comparable to the transportation services available to riders of the Atlanta and Metropolitan Systems, and there was no evidence of probative value to indicate that the transfer experience in Atlanta would reflect the average of that group. Accordingly, since there was nothing in the record to prove otherwise, the Commission for purposes of this proceeding concluded that 38.60$ of Petitioners* regular adult passengers would continue to be trans ferring passengers under a transfer charge fare structure.
In its findings the Commission stated that during the past several years a number of fare increases had been granted to Petitioners based on a showing made in each such proceeding involving Petitioners that revenues under existing fares were not adequate to meet the cost of rendering bus transportation to the public. In each of those proceedings, the primary concern was to reach a decision relative to the fares which in the opinion of the Commission would be just to Petitioners, reasonable to the riders, also halt to some extent Petitioners* continuing passenger decline. This passenger decline experience was determined by the Commission as the most pressing problem and this experience followed closely the experience of other cities of similar size throughout the nation. Further, the problem of passenger decline and increased fares was determined as not peculiar to the Atlanta Transit System but common to all city transit systems throughout the nation including the transit systems in the Georgia Cities of Augusta, Columbus, and Macon, as well as the Cities of Rome and Savannah, in which two cities it had been necessary to subsidize the service through a municipal transit authority. It was further stated by the Commission that there appeared to be no question but that each fare increase tended to magnify the passenger decline and that any fare increase helped set the stage for another increase and that this condition created dilemma among all concerned. Where it would all end the Commission could nob foretell. However, it was the opinion of the Commission that in the meantime the buses must be kept rolling for the good of the community, and the transportation needs of the users thereof.
After careful consideration of this matter the Commission concluded that Petitioners had justified the need for an increase in fares but not to the extent requested in the application. Accordingly, by order dated
December 29, 1961, docket number 1682-U, the authority requested by Atlanta
Transit System, Inc. and its wholly-owned subsidiary Metropolitan Transit
System, Inc. to establish a charge of 5^ including the 3$ Georgia sales tax
on the issuance of a transfer from one line of either System to another line of either System, under the existing rules and regulations for issuance, acceptance and usage of transfers was approved effective with the first reg
ular operating schedule of said Systems on January 1, 1962. The Commission
further concluded that the authority requested by the Atlanta Transit System, Inc. and its wholly-owned subsidiary Metropolitan Transit System, Inc. to discontinue the sale of passenger tokens at the current discount rate was not justified, and this matter of request was denied by the Commission.
Page 71

WESTERN UNION TELEGRAPH COMPANY

During the year 1961, there were no rate changes in telegraph service within the State of Georgia. However, the Company did file a number of tariff revisions covering minor changes in rules and regula tions and tariffs for new services being offered to the public. As a matter of interest, some of the features of the new service offerings are discussed hereiribelow:

TELEX

Telex service is primarily an interstate service, but is is available for intrastate service within Georgia between subscriber stations connected to Telex service exchanges of the telegraph company which are listed in the company1s tariff. Telex service is that of providing facilities including equipment for the handling of telegraph communications directly between two subscriber stations. The facilities furnished permit the transmission of communications in each direction alternately, but not simultaneously, at a speed of approximately 390 operations per minute. This service is offered on a prepaid basis and is made available to customers twenty-four hours a day, seven days per week at the following rates:

The total number of Telex pulses to be charged for during any monthly billing period is determined from the aggregate number of Telex pulses recorded for the chargeable time used on all Telex calls made during the billing period, as follows:

Number of Pulses Occurring per Minute after Connection is established

Between :
Atlanta Savannah

_______And:_______

Atlanta Savannah

5

9

9

5

The total number of Telex usage pulses recorded during the monthly billing period for each station is charged for at the rate of
2^1 per Telex pulse for the first 3,500 pulses and 1^ per Telex pulse
for all pulses in excess of 3*500.
BOMB ALARM SYSTEM A bomb alarm system designed completely by Western Union and intended to detect and record nuclear blasts, is now in the process of being extended from a prototype along the Eastern seaboard to a nationwide system. This system is designed to alert the nation's military and civilian leaders within one second if a nuclear blast should occur at or near any one of a number of important target areas in the country.
INTRAFAX
A new and increasingly important application of facsimile by Western Union is the leasing of closed-circuit, custom-designed systems, called "Intrafax". These facsimile systems are used by business ment to transmit all kinds of record and graphic information spee automatically between offices and branches.
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