Report of Georgia public service commission. Nintieth report, 1962

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S T A T E OF G E O R G I A Carl E # Sanders, Governor
90th REPORT OF
GEORGIA PUBLIC SERVICE COMISSION 2^4 Washington St#, S# W#, Atlanta 3, Ga#
January 1, 1962 to January 1, 1963
Crawford L* Pilcher, Chairman Allen Chappell, Vice Chairman Walter R. McDonald, Commissioner Ben T. Wiggins, Commissioner William H. Kimbrough, Commissioner A. 0# Randall, Secretary

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LETTER OF TRANSMITTAL
September 5, 1963
To His Excellency Carl E, Sanders Governor of Georgia
Dear Governor: As provided by law, the Georgia Public
Service Commission submits herewith its 90th Annual Report of the regulatory activities of the Commis sion for the year ending December 31? 1962*
Respectfully submitted,

ana title page.*' im p e rfe c t v o lu m e s d e la y re tu rn of b in d in g . T h a n k s . BO UN D BY TH E N A T IO N A L LIB R A R Y B IN D ER Y CO . OF G A .

Walter R, McDonald, Commissioner
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Ben T. Wiggins, Qpjjrdssioner

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William H. Kimbrough, Commissioner

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OF GEORGE,

LETTER OF TRANSMITTAL
September 5* 1963

To His Excellency Carl E. Sanders Governor of Georgia
Dear Governor: As provided by law, the Georgia Public
Service Commission submits herewith its 90th Annual Report of the regulatory activities of the Commis sion for the year ending December 31, 1962*
Respectfully submitted,

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Crawford >1 Pilcher, C hairman

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Allen Chappell, Vic^C&irinan ^

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Walter R. McDonald, Commissioner

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Ben T. Wiggins, Q ^ d s s i o n e r

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Kimbroueh. Commissioner

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Hft GEORGE

90th ANNUAL REPORT

Introduction

The Annual Report of the Georgia Public Service Com mission covering the activities for the year ending December 31* 1962, is submitted herewith in compliance with law.
The members and officers of the Commission are the same as shown in the last report.
The present personnel and employees of the Commission are as follows:

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. Mhe A, Montgomery, Reporter

Robert B,, Alford, Chief Utilities Engineer

Douglas N. Smith, Senior Utilities Engineer

Robert W. Hayes, Utilities Engineer

(vacancy) , Junior Utilities Engineer

Frank G. Heald, Senior Utilities Auditor

James D. Barnett, Utilities Auditor

(vacancy)

, Utilities Auditor

(vacancy)

, Junior Utilities Auditor

David 0. Benson,Transportation Rates Expert

J. Fred Parker, Senior Transportation Rates Specialist

L. Thomas Doyal, Senior Transportation Rates Specialist

larry L* Carpenter, Transportation Rates Assistant

Robert N,, Fellows, Certificate and Insurance Supervisor

Donald J. Lawrence, 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 Baxley, Senior Stenographer Mrs* Lucene R. Boring, Senior Stenographer Thomas L. Bryan, Principal Clerk Mrs, Paula F, Campbell, Senior Stenographer Mrs, Mozelle Colquitt, Senior Stenographer Mrs, Bumiece Evans, 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 James H, Hooks, Motor Carrier Inspector Mrs, Iinda H, Ingle, Senior Stenographer Miss J, Diane Johnson, Intermediate Clerk Mrs, Virginia R Mann, Senior Stenographer Mrs, Emily Martin, Senior Stenographer Mrs, Doris Mills, Principal Stenographer Mrs, Sarah B, McGonigal, Senior Stenographer Mrs, Ruby D, Otwell, Senior Stenographer Mrs, Patsy Porter, Senior Stenographer John R, Price, Confidential Secretary Miss Martha Robinson, Senior Stenographer Mrs, Marian Rountree, Receptionist T, S, Tyson, Motor Carrier Inspector Bobby Edmondson, Porter-Machine Operator,
During the year 1962 the following permanent employees were added to our list, to-wit: John R, Price, Confidential Secretary, Judith Diane Johnson, Intermediate Clerk; James D, Barnett, Utilities Auditor; Thomas L, Bryan, Principal Clerk, The following regular employees resigned during the years Mrs, June Powell, Intermediate Typist; Ernest R, Austin, Utilities Auditor; Mrs. Bumiece Evans, Senior Stenographer resigned effective December 31st,
The Commission was saddened during the year in the death of two of its valued employees. Mrs, Hazel P, Turner met an unfortunate and untimely death on May 11, 1962. She had served the Commission as Intermediate Clerk since March of 1947* Mir. Charles H. Hagerty died of a heart attack on November 111 1962, He came to the Commission in the Auditing Department in 1958, having came from the State Revenue Department where he had been employed since 1938.
During the year the work of the Commission required the services of one temporary employee, to-wit: Miss Gail Broime, a student at the University of Georgia who "lias employed as temporary Receptionist during the summer months, tu regular Receptionist having been given a temporary leave of absence*
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PUBLIC HEARINGS
During the year the Commission conducted 4-00 Public Hear ings* Public Hearings commence on the second and fourth Tuesdays in each month and continue on successive days thereafter until all current applications and petitions have been disposed of* So long as this record can be maintained no backlog of cases will develop* All matters docketed for public hearing are heard by the entire Com mission 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 each Commis sioner to acquire a more complete picture of the matter under consid eration.
I C, C, JOINT BOARD HEARINGS
In addition to Commission hearings the Interstate Commerce Commission assigns applications for motor carrier certificates be tween 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 the Chairman of the Commission is the Joint Sard member each member of the Commis sion is a substitute Joint Board Member and may participate in these hearings it has been customary to assign a member of the staff of the Commis sion as substitute Joint Board Member to participate in Joint Board Hearings as the assignment dates generally conflict with Commission hearings. It is important for the Commission to participate in the hearings and this participation consumes considerable time0 The following members of the staff are Substitute Joint Board Members;
A* 0. Randall, Secretary David 0, Benson, Rate Expert . J. Fred Parker,Sr*Transportation Rate Specialist L. Thomas Doyal, Sr.Transportation Rate Specialist Robt. tf. Gerson, Assistant Secretary

MOTOR CARRIER CERTIFICATE AND LICENSE FEES

The Commission is charged with the responsibility of col lecting 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 1962 are as follows

Certificate fees at $3500 each, and certificate trans fer fees at $7*50 each - - - --------------------------------- fe,582*50

Regular license fees at $25*00 each - - - - - - - - - - - - - 231*125*00

Pickup and delivery fees at $1*00 each - - - - - - - - - - - -

2*021*00

Reciprocal registration fees at $1*00 each - - - - - - - - -

23,218*00

T o t a l ------ ------4259,946.50

In addition to the foregoing certificate and license fees of $259,946*50 collected the Commission, the Railroads and Utili ties 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 $539,946.50 available for appropriation to the Commission,
although it should be noted that the appropriation for the Commission
was limited in the Appropriation Act of 1962 to $450,000,00.

MOTOR CARRIER CERTIFICATE DECISIONS

The following is a breakdown of motor carrier Certificate decisions by count, some of which were decisions on actions not re quiring public hearing, and some of which required more than one public hearing:

Applications for new certificates:
Approved -- -- - -- - - - - - - - - - - . - , - - 9 5

Denied

~ ----- ------- - - - - - - - - g

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

31

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

9

Applications for transfer of certificates:
Approved - - - - - - - -- - - - - - - - - - - - 4,8

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

2

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

99

Certificate amendment applications withdrawn

and denied - - - - - ---------

12

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

24

-- 4 --

Certificates suspended-- - - --- --------------- - -- ----- - 71 Certificates reinstated-------- -------- -- ---- -- - ------- 68 Miscellaneous, extensions, refunds, reconsiderations, etc,----- 179 Show cause orders dismissed---- ------ ------------- ------- 375
In addition to the foregoing hundreds of rules nisi on in surance cancellations are issued under Commission resolution which are automatically dismissed on renewal filings.
AMENDMENTS OF MOTOR CARRIER RULES _________AND REGULATIONS_________
During the year the Commission amended the following Motor Carrier Rules and Regulations:
On February 7, 1962, the Commission amended Rule 22(a) by adding the following paragraph thereto:
Failure of the holder of any certificate to publish and file tariffs and/or schedules and fares approved by the Commission and to hold himself out as ready, able and willing to provide adequate service in the transportation of any and all commodities and/or persons au.' thorized to be transported in said certificate, and/or failure to operate, for a period of more than six months, shall be reasonable cause to suspend, revoke, alter or amend said certificate at any time after notice and op'portunity to be heard*
On May 1, 1962, the Commission amended Rule 91 to read as follows:
All applications, petitions and complaints made to the Georgia Public Service Commission must plainly and distinctly state the grounds thereof, all being set forth in writing. In like manner, all defenses must be distinctly made in writing and must plainly and distinctly state the grounds there of. These specifications may be accompanied, if the parties so desire, by any explanation or argument, or by any suggestion, touching the proper remedy or policy. The parties may also be heard in person, or by attorney or by written argument, upon such written statesments being first filed.
On all applications, petitions and complaints, and when the Commission initiates action, notice shall be given to the persons or corporations interested in, or affected thereby, ten days before the hearing except in cases for the fixing of joint rates, when thirty days* notice shall be given and shall give to such per sons or companies an opportunity to be heard.
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All applications, petitions or complaints filed with the Commission, or actions initiated by the Commis sion prior to the second Tuesday in each mont)i shall, unless otherwise directed by the Commission, be assigned for hearing on the fourth Tuesday or some succeeding date, and likewise those filed or commenced subsequent to the second Tuesday in the month and prior to the fourth Tuesday shall, unless otherwise directed by the Commission,be assigned for hearing on the second Tuesday in the following month, or some succeeding date*
Upon the hearing of all cases that may come on to be heard before the Commission, the respective parties may present their testimony, either written or oral, or by affidavits. Copies of all affidavits intended to be offered by either party shall be served upon the opposite party, his counsel or agent having control of the case, if known, and if unknown with the Commission, at least five days, and all counter affidavits at least three days, before the date set for their hearing.
If any party of record in a matter decided by the Com mission in a formal proceeding be dissatisfied with the order or decision of the Commission, application shall be made within ten days from notice thereof by written petition, to the Commission for rehearing, re*. consideration and oral argument, alleging with parti cularity the matters claimed to have been erroneously decided and the alleged errors and the relief sought, together with a certificate that a copy of such petition has been furnished all parties of record. If, in the opinion of the Commission, good cause has been alleged in said petition for rehearing, reconsideration and oral argument the Commission shall, within thirty days, either assign such petition for hearing or conference, or re-open the original hearing for introduction of additional evidence and give all parties of record ten days* notice thereof. Such petition shall serve as a supersedeas, and pending final order or disposi tion thereof, the original order shall be stayed.
This rule of procedure and of evidence, except as to notice of hearing above provided, may in any, and all instances be varied or relaxed when in the exer cise of a sound discretion this Commission shall be of the opinion that a departure from the letter there of may be necessary to the attainment of substantial justice| due care being taken in every instance to guard against any injurious surprises.

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On June 20, 1962 the Commission combined Rule 39 with Rule 4-0 and adopted a new Rule 39 to read as follows:
Motor Carriers of passengers transporting ex press, mail and newspapers in the same vehicle or combination of vehicles with passengers and their baggage, shall be subject to compliance with all of the appropriate rules of the Commis sion applicable to the transportation of express by Class "A" Carriers gf property, except that they are relieved from complying with the require
ments of Rules 27(a), 36, 60, 62(a), 63, 64, 65,
73, 76, 77, 79, 83, 84 and 85.
On October 5, 1962 the Commission amended Rule 50 to read as follows:
(a) Adequate and safe depot or bus station facil ities commensurate with the requirements of the traveling public must be provided by all motor carriers of passengers subject to the jurisdiction of the Commission in cities or towns in which ser vice is rendered. When these facilities are pro vided through contract with an gjigent the contractural agreement shall be in writing, and a copy thereof shall be retained by the motor carrier for a period of two years from the termination thereof.
(b) All bus passenger waiting rooms shall be sup plied with good, pure drinking water; and shall be kept supplied with suitable sanitary drinking cups at all times easily accessible to passengers; and shall be so lighted, heated, ventilated and equipped as to render occupants of the same reason ably comfortable, the circumstances of each case being considered.
(c) All passenger bus depots shall be provided with reasonably adequate, clean and safe toilet facili ties.
On October 5, 1962 the Commission amended Rule 41 by ad ding the following paragraphs
Fixed or regular route as provided for in this rule means the certificated route via which the carrier is authorised by the Commission to operate and includes the entire corporate city limits of any city or town located on such fixed or regular route.
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The Commission also amended Rule 47 on October 5, 1962, to require the posting of notice of changes in time schedules for a period of fifteen (15) days instead of ten (10) days in Paragraph (b) and to add a new paragraph (c) reading as follows:
(c) Where proposed change in time schedule is properly posted in accordance with the above and no protest is received by the Commission during the first ten days after notice is pro perly posted, the carrier, unless otherwise directed by the Commission, will be allowed to make the proposed change effective on date shown on the schedule, subject to complaint and further order of the Commission, and any complaint from the public or competitive carriers received after the first ten days after notice is properly post ed will be considered as a request for public hearing to determine the necessity of requiring the carriers making schedule change to reinstate service in effect prior to the change*
On November 8, 1962, the Commission amended Item 24(a) of Rule 8 by adding thereto the following:
''Asphalt, roofing, in drums and containers*"
On November 28, 1962, the Commission amended Rule 25 by striking paragraph (j) therefrom on an opinion of the Attorney General that it was in conflict with Section 68-623 of the Code. This Rule permitted the issuance of a tag to vehicles used in pick up and cfelivery service upon the payment of $1.00 only to cover the issuance of a tag for each vehicle.
On December 7, 1962, the Commission approved republication of the Laws and Rules of the Commission as of January 1, 1963*
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MOTOR CARRIER ENFORCEMENT

The Motor Carrier Inspection and Enforcement Division is arm of the Commission which enables its members to maintain surveil lance over the activities of all *'for hire1' motor carriers conduct ing operations over the highways of Georgia.
During the calendar year of 1962 this department employed five motor carrier inspectors domiciled in strategic areas of the state, which enabled each inspector in his assigned territory to give maximum coverage with minimum amount of time and mileage expense. These inspectors operated a total of 95,922 miles at a cost to the state of 17,673.76. This operating cost enabled these inspectors to collect $10,824.00 in motor carrier fees for licenses that otherwise would not have been collected by the Commission. In addition 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

a ) Routine Inspections of Regulated Intrastate carriers s

(a)

Safety Inspections of qfr!Lcles: During the year

1962 inspections were made on 66S heavy duty trucks, truck tractors,

trailers and buses for violation of the Motor Carrier Safety Regula

tion promulgated by this Commission. If unsafe mechanical conditions

existed, the management of the motor carrier was so advised and required

to make the necessary repairs. An affidavit to the Commission certify

ing these repairs were made was required of the motor carrier in vio

lation.

(b)

Inspections of Transportation Rates Applied; Periodic

calls were made on all carriers regulated by this Commission to deter

mine if they were assessing the proper rates and charges approved by

the Commission and that they were operating within the scope of their

authority granted by the Commission. Where violations of the publish

ed tariff rates were detected, the violating carrier was required to

rebill the shipments in accordance with their proper published rates.

Where these violations were prevalent and posed a threat to the ship

ping public or showed signs of discriminatory practices, the Commis

sion 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 the Commission rules and regulations. Such rules nisi were

issued in six cases. Where violations were of a nature that the Com

mission felt they could be corrected with proper guidance from the

staff, the carrier was asked to come to the Atlanta offices for consul

tation, During the year conferences were held with fourteen motor car

riers, who were advised of the necessary steps to place them in com

pliance with the tariff rules and other regulations of the Commission.

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This is a marked decrease from the sixty-two conferences held with motor carriers during the calendar year 1961* We believe that this is a healthy indication that the motor carriers are more conversant with the tariff regulations promulgated by this Commission and, con sequently, are exercising more care in the rating and billing of their shipments*

(c)

Service and Facility Complaintss This department

has worked very closely with the Transportation Rates Division on

complaints involving the service and facility condition of the passen

ger 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 facilities* 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 be

cause 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 re

quired to improve such service* All such complaints for the year

1962 have been handled to the satisfaction of the complaining shippers*

(2) Registration of Interstate Carriers.
Through the efforts of our field inspectors and infor mation carried in trade journals, this department is continuing its program of registration of those carriers engaged solely in inter state commerce over the highways of Georgia, under permits from the Interstate Commerce Commission, or who are engaged in the "for hire11 transportation of "exempt commodities" under the Federal Motor Carrier Act of 1935 During the year 1962, this Commission issued 450 oper ating permits and 23,216 reciprocal cab cards to such carriers* The Motor Carrier Acts of 1931 require such registrations so that citizens of Georgia may b e 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 required to designate an agent for service.
While performing the foregoing duties our motor carrier inspectors made 2,135 personal contacts with carriers, shippers, re ceivers, city and county officials, and other interested parties*

(3) Illegal Transportation Problem*
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 under mining the regulated rail and motor carrier transportation services*
10 -

Mh2e conducting special road checks in an effort to apprehend
violators of our Motor Carrier Acts, the inspectors have "spot
checked" well over 6,000 vehicles for vehicle registration, author ity and safety, in addition to 668 vehicle inspections previously
mentioned in this report* Also, numerous shippers using the ser vices of unlawful carriers were given letters 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 misdemeanor#
The Commission's Arrest Report Digest for the year 1962 is shown herein, which lists a total of sixty-six court auctions dis posed of, and which resulted in fines of $7,093*00, one hundred and five months of suspended sentences, and in one case an imprisonment of two weeks# In three cases the accused were acquitted by a juryj in two cases the actions were dismissed, and one case was nol prossed# These actions were filed in twenty-three different c ounties of the state, and the bond forfeitures or fines remained in the county where the arrests were made# There is also listed in this report a digest
of the court cases presently pending, with a total of $4200*00 in
bonds posted with the courts in seven different counties in the state to cover these alleged violations. This grand total of ninety-three cases, either handled by the courts or presently pending, reflect the activities of the Commission in the apprehension and conviction of persons operating as motor carriers "for hire", either without ap propriate intrastate authority from this Commission, or without an appropriate registration with this Commission of an interstate oper ating authority from the Interstate Commerce Commission# It should be noted that Georgia Law requires the registration of a l l " for hire" motor common carriers even though they may be transporting commodities exempt from the economic jurisdiction of the Interstate Commerce Com mission.
Hr, Donald J. Lawrence is Director of the Commissions Motor Carrier Inspection and Enforcement Division, and the names and addresses of the five inspectors presently employed by the Com mission are:
Herbert R# Daugherty, Smyrna,Georgia W. E* Doolittle, Sandersville, Georgia A# J. Fort, Route 1, Morrow, Georgia James H# Hooks, Donalsonvilie,Georgia T. S. Tyson, Swainsboro, Georgia#
Any increase in inspection and enforcement activities will necessitate the employment of additional field and office personnel#
11 -

ARREST REPORT DIGEST

1962 - CASES DISPOSED OF BY COURTS

DEFEEDAKT (s)
Otis Martin Kemp Trucking Go Gainesville, Ga.
J. W. Stecko Nationwide Systems, Inc*, Miami, Fla
L* E. Mills Howser & Maury Mobile, Ala.
Blair Transfer Co. Macon, Georgia
Jule Blair Blair Transfer Co. Mb con, Georgia
Jule Blair Blair Transfer Co, Macon, Georgia.
J. C. Blair Bibb Transfer & Storage, Ifecon, Ga*
Charles Reinhold
0 , C. Home,owner
Nashville, Georgia
G. P. Hovoy Mark's Berry Produce Indianapolis* Ind*

% VIOLATION

5 COURT DI3P.

: COUNTY

No Registered
Authority
6 Safety Violations

$200.00 &
$25.00 GPSC Tag

Baker

No Registered Authority

$150.00 &
$25.00 GPSC
Tag

Baldwin

No Registered Authority

$150.00 &
$25..GPSC Tag
*

Baldwin

No Authority

$100.00

Bibb

No Authority No Authority

1200.00 &
12 Months Suspended
12 Months Suspended

Bibb Bibb

No Authority
No Registered Authority
No Registered Authority

$100.00 &
12 Months Suspended
$einhold-Nol Processed. Horne-$250 & 12 Months Suspended.
$45.00

Bibb Brooks Bulloch

ARREST REPORT DIGEST - 1962 - CASES DISPOSED OF BY COURTS,

DEFENDANT (s)

:

VIOLATION

E. P. Robinson Newman Trucking Co. Inc.,Pahokee, Fla

No registered Authority

R. Hannaburgh Gardner, New York

No Registered Authority

t COURT DISP.
$100.00
180.00

Norman McNeil John E.Brown, owner, Miami, Florida
Horace Cantry Bibb Transfer & Storage,]^.con, Ga.

No Registered Au thority. 2 Safety vi61ations.

$600.00

No Registered Authority

$50.00 &
3 Months Suspended

M. J. Griffin Stegall Milling Co, Marshville, N.C,

No Registered Authority

L. B. Wencler New Goshen, Indiana

No Registered Authority

G. Bernsten Donald Fruit & Pro duce ,Jacksonville,Fla

Equipment Not Registered

L. T. Hunell Vernie Crawford,owner, Richlands, Virginia

No Registered Authority

G. E, Cates Womble Trucking Co., Shelbyville,Tfenn.

No Registered Authority

R. West Hamilton, Miss.

No Registered Authority

$100.00 $100.00 $100.00 $100.00 $100.00 $100.00

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s COUNTY Charlton Charlton Charlton Charlton
Charlton Charlton Charlton Charlton Charlton Charlton

ARREST REPORT DIGEST

1962 - CASES DISPOSED OF BY COURTS

DEFENDANT (s)

1

VIOLATION

i COURT DISP. s COUNT?

Paul Dennis Sanford, Florida

No Registered Authority

$100,00

Charlton

J. R. Sykes Hayes Moving & Storage Clarkesville, 3fenn.

Vehicle not Re gistered

$100,00

Charlton

Charles Mixon Ajax Truck.Rentals Jacksonville, Fla*

No Registered Authority

$100.00

Charlton

Clarance Kohn F.H.Ware livestock & Feed,Jacksonvilie,Fla *

No Registered Authority

$100.00

Charlton

L. E. Sikes Rimes T rucking Co*, Archer, Fla*

No Registered Authority

$10000

Charlton

G. L, Slusser Walter & Irene Mellott, Biglersville, Pa. owie*>

No Registered Authority

$100.00

Charlton

W. R, Meredith Meredith Transfer North Fort, W. Va.

No Registered Authority

$100.00

Charlton

G, H* Edge Fla,Food Products Eustis, Florida
C, W. Horne
0 *C Home, owner,
Nashville, G.

Vehicle not Registered
No Authority
6 Safety Viola=
tions.

$100.00 $100.00

Charlton Charlton

W. R. Brady Clarence L,Young,
wner,Hiawa ssee,Ga

No Registered Authority

$100,00

Charlton

- 14 -

m

ARREST REPORT DIGEST

1962

CASES DISFOSED OF BY COURTS

DEFENDANT (a)

g VIOLATIONS

H L. Best ZTWest,owner, Dover,North Carolina

No Registered Authority

M. L. Williams Continental Thick Leas ing*, Atlanta, Ga

No Registered Authority

G. C Iautheridge Ormand Beach, Fla*

No Registered Authority

B. G. Stewart Independent Grain Co, Truman, Arkansas

No Registered Authority

J. E. Gibson Tatanall Produce Co, Lyons,GaJacksonville, Florida

No Registered Authority

Bill W illiams V, B* Hook & Co*, Columbia, S. C*

No Registered Authority

I%rion Byrd F.H* Ware, owner Jacksonville, Fla*

No Registered Authority

C. Goodman F. H, Ware,owner Jacksonville, Fla*

No Registered Authority

Earl Martin F. H Ware, owner
Jacksonville, Fla

No Registered Authority

COURT DISP
$100*00

COUNTY Charlton

$100*00

Charlton

$100o00 $100*00 $100*00

Charlton Charlton Charlton

$100*00 $100*00 $100.00 $100.00

Charlton Charlton Charlton Charlton

15

ARREST REPORT DIGEST

1962 - CASES DISPOSED OF BY COURTS

DEFENDANT (s)

;

VIOLATIONS

s COURT DISP._-- L -- Q 2 M 2 X

J Jj# Osii9&y J *D .Williams,ox-mer Wrightsville, Ga.

No Registered Authority

Dock Sauls Union Truck T erminal, Inc,Jacksonville,Fla

No Registered Authority

Frank H,Stephenson A-llVeterans Transfer Service, Athens, &

No Intrastate . Authority

Charles Gregory Charles Bates,owner

No Registered Authority

A. J. Bowman J .1 .Henderson, oxmer

Mo intrastate

H. K. Musick Robertsdale, Ala.

No Registered Authority

Raymond R* House Decatur Moving & Stge., Atlanta, Georgia

No Intrastate Authority

Leon Smith Atlanta, Georgia

No Intrastate Authority

W. P. LeCompte Creson, Pennsylvania

No Registered Authority

J. Aramendia Alamo Baleing & For warding Co., San Antonio, Texas
Ben T. Maxwell Marietta, (feorgia

No Registered Authority
No Intrastate Authority

Dismissed
$100.00
.Acquitted by jury
$100.00
Dismissed -
$100.00
Acquitted by Jury
6 Months
Suspended
$100.00
$105.00
$105*00

Charlton Charlton Clarke Clayton Cobb Decatur DeKalb DeKalb Early
Emanuel
Emanuel

' me
XV o

ARREST REPORT DIGEST

1962

CASES DISPOSED OF BY COURTS

DEFENDANT (a)

s

VIOLATIONS

:

COURT LISP, i COUNTY

Virgil Moncrief L & P Distributors,Inc. Cordele,(h.

No Intrastate Authority

1 50.00

Emanuel

George Finley J.C.Callahan,owner, Augusta,Cborgia

No Intrastate Authority

$106.00

Emanuel

W. M. Douglas Acme Moving & Storage, Atlanta, Ga.
Raymond R. House House, Inc. Atlanta, Georgia

No Intrastate Authority
No Intrastate Authority

12 Months Suspended
6 Months
Suspended

Fulton Fulton

Raymond R. House Buckhead Moving & Stge., Atlanta, Ga.

No Intrastate Authority

$200 Fine
18 Months
Suspended
2 Wks.Imprison
ment.

Fulton

0. T. Easterly H.W.Williams,owner.

No Registered Authority

J. C. Parker W, L. Aliison,Jr.,owner Statesville, N.C.

No Registered Authority

Alton Cagle A .A.Saffels,owner, Fyffee, Alabama

No Registered Authority

Eldon N. Cain Swirls & Company Los Angles, Calif,
Frank H,Stephenson A-lVeterans Transfer Athens, Georgia

No Registered Authority
No Intrastate Authority
- 17 -

$50.00 150.00
50.00
#50.00
Acquitted by Jury

Gwinnett Gwinnett Gwinnett Gwinnett Gwinnett

ARREST REPORT DIGEST

1962 - CASES DISPOSED OF BY COURTS

DEFENDANT T s T

VIOLATIONS

Odell Pardon Claude Blair, owner,
Macon, (km

No Intrastate Authority

R* A. Tanner Hilliard, Florida

No Registered Authority

Fred Bracy A. T. Jones Lumber Co*, Akoskie, North Carolina

No Registered Authority

J. Nettles Stallworth Pine Products Mobile, Alabama

No Registered Authority

W. A. Cartwright Cartwright Produce Fern Park, Florida

No Registered Authority

B. N# Sercy J.L. Keith,owner,
Sanford, Florida

No Intrastate Authority

0 . L. Wood
Taylor & Son Farms
Eastman, G a*

No Registered Authority

Otis Shelly Newville Milling Co., Newville, Alabama

No Registered Authority

J. H. Shook Kay-D-Co*, Athens, Gfeorgia
J. B. Foison

No Registered Authority
No Intrastate Authority

COURT DISP. $50*00

COUNTY Houston

$150*00 $5 0 .0 0

Lowndes McDuffie

$150,00
12 Months Suspended
$400.00
$150.00

Miller Randolph Richmond

$27.00

Richmond

$150.00 $150.00
$50.00

Seminole Washington Washington

-18 -

ARREST REPORT DIGEST - 1962

COURT CASES PENDING

DEFENDANT" (sY

~

VIOLATIONS_______ 1 BOND

:_______ COUNTY

C. W. Morris, Jr*, Atlanta Metallic Casket Company Atlanta, Cborgia

No Registered Authority

$150,00

Bibb

J. W* Lee
E. 0 . Neville,owner,

No Registered Authority

$150,00

Bibb

S-, V. Chance Otis MeClinton
S.V Chance, Jr., owner, Danville, Georgia

No Intrastate Authority

Chance-$150, MeClinton $150,

Bibb

A, J, Holton C & S Express Pearson, Georgia

Vehicle Not Registered

$100,00

Charlton

M. S, Fox Kent Refrigerated Ser vice, Birmingham, Ala.

No Registered Authority

Bean Taylor Shippers Service of Ga., Albany, Georgia

Aiding & Abet ting.

$100*00
$300,00

Charlton Early

Otis D. Pike W,C.Winter Truck
Rental, Atlanta,Ga*

No Registered Authority

Marvin L. Rosier Tyce Bruursemit Produce Grand Rapids, Michigan

No Registered Authority

$150,00
$150.00

Gordon Gordon

Jonathan Trama Melruaruma Trucking Co*, Miami, Florida

No Registered Authority

George Young lakeland, Florida

No Registered Authority
- 19 -

$150,00
$150,00

Gordon Gordon

ARREST REPORT DIGEST - 1962

COURT CASES PENDING

DEFENDANT (s)

%

VIOLATIONS

;

BOND_______ :______ COUNTY

Thomas England Southern Poultry,Inc*, Monroe, Georgia

Ho Registered Authority

R. H. Henderson Henderson & Son Transfer Co*, Rome, Georgia.

No Intrastate Authority

& 50.00 $200.00

Gordon Floyd

Robert J&ttox, Jr,, Southern Poultry, Inc., Monroe, Georgia

No Registered Authority

$150.00

Gordon

James Gowen Jean Gowen,owner,
Decatur, Georgia

No Registered Authority

$150.00

Gordon

Ralph Jennings Russell Campbell & Asso ciates, Oswego, 111*

No Registered Authority

$i50,,oo

Gordon

Tilden Whitfield George Hester, owner,
Canton, (h*

No Registered Authority

$150.00

Gordon

David Sheriff Pulliam Trucking Co,, Greenwood, S. C.

No Registered Authority

$150.00

Gordon

Richard Wolf Adrian Wolf ,owner , Marion, Indiana

No Registered Authority

$$150.00

Gordon

Sydney Dickson Trailer T own,Inc,, Chattanooga,Tennessee
Billy Osman R .F.Johnson,owner, Terre Haute, Ind,

No Registered Authority
Vehicle Not Registered
- 20

$150.00 $150.00

Gordon Gordon

ABREST REPORT DIGEST - 1962 - COURT CASES PENDING

DEFENDAIT (S )

2

VIOLATIONS t

BOND

Bobby Sims J* H* Carter,owner,
Royston, (feorgia

No registered Authority

John Davis Lloyd Collins,owner,
Gadsden, Alabama

No Registered Authority

Jimmy Roberts Ga Truck R ental,Inc, Albany, Georgia

No Registered Authority

Robert J, Karr Malcolm Silvers Rocky Face,Ga* & Gumming Ibuck Lease Co*, Chattanooga, Tennessee

No Intrastate Authority

L* Brown T. D. Reidling,owner,
Commerce, Gfeorgia

No Intrastate Authority

E. Hunter Macon, Georgia

No Intrastate Authority

$150.00 $150.00 $150.00 $300.00 $100.00

o Oe O o rj

S

COUNTY

Gordon

Gordon

Gordon

Gordon

Jackson Washington

m

TRANSPORTATION

General
During 1962, the Commission and its transportation staff officially disposed of, in addition to the formal proceedings listed
"below (most of which were made the subject of written opinions) 531
transportation rate and service matters, a considerable number of which required lengthy studies and investigations in the field.

Docket No. 1st Supp.
476-R
lj-39-R
t9-R
1*90-R
508-R

FORMAL CASES FOR YEAR 1962

Date

Subject

Disposition

l-k-62

Complaint of Solvay Process Division, Allied Chemical Corp., against Atlantic Coast Line Railroad Co. and Southern Rail way Co. concerning railroad service provided to Solvay*s plant at Brunswick and con cerning rates charges for such service

Effectiveness of
order of December
1 1 , 1961 stayed,
pending receipt of
motion for recon sideration

1-11-62

Application of railroads for authority to revise carload rates and descriptions on sand, grave]., crushed stone, limestone and related articles in closed cars or open-topped cars pro tected by tarpaulin or other protective covering

Withdrawn without prejudice

1-11-62

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

1-11-62

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

Approved

1-11-62

Application of Louisville and

Denied

Nashville Railroad Company for

authority to discontinue agency

service at Nelson, to discontinue

less-than-carload freight service

at that point and to remove the

station building at Nelson

22 -

FORMAL CASES FOB YEAR 1962 (Continued)

Docket No. 510-R

Date 1-11-62

Btipp#
1281-M

1-25-62

2nd Supp.
kJ6-R

1-31-62

508-R

1-31-62

206I-M

2-7-62

I97I-M

2-15-62

^65-R

2-21-62

Subject

Disposition

Application of Seaboard Air Line Railroad Co, for authority to dismantle the station building at Riceboro

Approved

Application of Class "A" Motor Carriers of Property for acceptance of revised package charges and minimum charges as official response of said carriers to the Commission^ order of investigation in this proceeding

Revised schedules of charges accepted

Complaint of Solvay Process Division, Allied Chemical Corp., against Atlantic Coast Line Railroad Co. and Southern Rail way Co. concerning railroad service provided to Solvay1s plant at Brunswick and con cerning rates charged for such service

Motion for recon sideration denied

Application of Louisville and Nashville Railroad Co. for authority to discontinue agency service at Nelson

Petition for recon sideration and further hearing denied

Application of Davis Transport Co. and Petroleum Carrier Corp. to revise motor carrier rates on asphalt

Docket reopened for further hearing following complaint of shippers

Application of Georgia Household Approved with

Goods Movers Assn., Inc,, and

exceptions

the individual carriers shown as

participants in the tariff issued

by that Association for increase

in rates and charges for the

transportation of household goods

Application of Southern Railway Co. for authority to discontinue agency service at Molena

Consideration of petition for review and reconsideration stayed, pending receipt of additional statistics

- 23 -

FORMAL CASES FOR YEAR 1962 (Continued)

Docket No. VT3-B
5 11-R 512-R

Date 2-21-62
3-II+-62
3-ll|.62

Subject

Disposition

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

Consideration of peti tion for review and reconsideration stayed pending receipt of additional statistics

Application of Central of Georgia Railway Co. for authority to discontinue agency service at Farmington

Approved

Application of Central of Georgia Railway Co. for authority to discontinue agency service at Whitehall

Approved subject to the provision that full time agency service be restored at Watkinsville

513-R i^'H

3XU-62
3,1 k-62

Application of Railway E g r e s s Agency, Inc., for authority to close the express office at Whitehall, contingent upon the closing of the railroad agency at that point

Approved

Application of Louisville and

Denied

Nashville Railroad Co. for

authority to discontinue agency

service at Mineral Bluff, to dis

continue handling less-than carload

shipments at that point and to

remove the station building at

Mineral Bluff

509-R

3-29-62

Application of Central of Georgia Railway Co. for authority to reduce the hours of service of its agencies at Oglethorpe and Montezuma to the extent necessary to permit one agent during his regular hours of work to serve both agencies

Approved

5I 5-R

3-29-62

Application of Central of Georgia Railway Co. for authority to reduce the hours of service of its agencies at Hamilton and Pine Mountain to the extent necessary to permit one agent during his regular hours of work to serve both agencies

Approved

- 2k -

FORMAL CASES FOR YEAR 1962 (Continued)

Docket No,
516-R
507-R 518-R
1st Supp. 4-73-R 474--R
5 2 1-R
2176-M
526-R

Date 3-29-62
4-12-62 4-12-62 5-9-62 5-29-62
6-2 0 -6 2
7-3-62 7-3-62

Subject

Disposition

Application of Central of Georgia Railway Co. for authority to discontinue agency service at Cataula and to dis mantle and remove the station building at that point

Approved

Application of Southern Railway Denied with provision
Co. for authority to discontinue for review
operation of its Passenger Trains
Nos. 7 and 8 between Jesup and
Brunswick

Application of Railway Express Approved Agency, Inc., for authority to increase (with certain exceptions) charges on LCL express traffic by
10 cents per shipment

Application of Atlantic Coast Line Railroad Co. for authority to discontinue agency service at Oehloeknee

Approved after review of later operational statistics

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

Approved

Application of Atlantic Coast Line Railroad Co. for authority
to establish reduced rate of
200 cents per ton on multiple-
car shipments of crushed stone from Tyrone to Broadhurst

Denied without prejudice to establishment of reduced rates on multiple-car move ments between all points

Application of Adams Transfer & Storage Co. for modification of household goods rates

Withdrawn

Application of Atlantic Coast

Approved subject to

Line Railroad Co. for authority provisions for

to consolidate its Passenger

handling of express

Trains Nos. 180 and 189 with its and establishment of

rerouted Passenger Trains Nos. Nahunta as flag stop

91 and 92 ("West Coast Championn) for Passenger Trains

between Waycross and Savannah

Nos. 1 and 2 ("East

Coast Champion")

- 25 -

FORMAL CASES FOR TEAR 1962 (Continued)

Docket No. I

Date 7-19-62

523-R

7-31-62

PMr

7-31-62

268-R

8-28-62

9508- A 9509- A 525-R
2197-M
2246-M

9-28-62

527-R

9-28-62

528-R

9-28-62

Subject

Disposition

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

Record reopened to permit introduction of later statistics of operation

Application of Southern Railirsy Co. for permission and approval to institute condemnation pro ceedings for the purpose of acquiring certain property in Paulding County

Approved

Application of Southern Railway Co. for permission and approval to institute condemnation pro ceedings for the purpose of acquiring certain property in Paulding County

Approved

Application of all railroads for Withdrawn authority to establish additional charge for pick-up or delivery services

Application of all railroads to establish incentive basis of rates on carload shipments of liquid petroleum products, in bulk, and application of Walker Hauling Co., Inc., and Petroleum Carrier Corp. for authority to establish volume incentive rates on liquid petroleum products, in bulk

Both rail and motor carrier applications approved with modi fications

Application of Southern Railway Co. for authority to discontinue agency service at Everett, to discontinue handling less-thancarload shipments at that point and to dismantle its station building at Everett

Approved

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

Approved

- 26 -

FORMAL CASES FOR YEAR 1962 (Continued)

Docket No* Date

Sub j ect

Disposition

529-R
53O-B
2228-M

9-28-62 9-28-62

Application of Seaboard Air Line Railroad Co. for authority to discontinue agency service at Everett, to discontinue handling less-than-carload shipments at that point, to dismantle its station building at Everett and to change Everett from regular to flag stop for Seaboard Air Line Railroad Passenger Trains Nos. 9 and 10

Approved

Applications of all railroads

Approved following

and Petroleum Carrier Corp. for revision of applica

authority to establish revised tion to reflect

rates on liquid caustic soda, in agreement between

bulk, from Brunswick to consuming railroads, motor

destinations in Georgia

carriers and shippers

5C&-R

10-18-62

Application of Seaboard Air Line Railroad Co. for authority to discontinue agency service at Richmond Hill

Withdrawn

519-R 52O-R
206I-M

10-18-62

Application of Atlantic Coast Line Railroad Co. for authority to discontinue agency service at Iron City

Denied

10-18-62

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

Denied

10-25-62

Application of Davis Transport Co. and Petroleum Carrier Corp. for revision of asphalt rates to county-wide destination basis, with such rates to reflect increase over existing rates

Modified county-wide destination basis of rates authorized

1st Supp<
465-R

10-25-62

Application of Southern Railway Approved Co. for authority to discontinue agency service at Molena, to dis continue handling less-than-carload freight at that point and to dis mantle the station building at Molena

- 27 -

FORMAL CASES FOR YEAR 1962 (Continued)

Docket No, Date

Subject

Disposition

Ii-66-R

10-25-62

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

Approved

2271-M

1 1 -2-6 2

Application of Manufacturers Transport for prescription for it and all Georgia intrastate motor common carriers of revised rates on paper hags and wrapping paper

Withdrawn

1st Supp.
2197-M
2246-M

1 1 -30-62

Application of Walker Hauling Co., Inc., and Petroleum Carrier Corp. for authority to establish volume incentive rates on liquid petroleum products, in hulk

Range of approved
incentive basis
extended to 150 miles

Non-Docket

II-3O-6 2

Rule concerning use of property Railroad Freight of one railroad hy another rail Rule No. 22 cancelled
road

Non-Docket 12 -7-6 2

Rule providing for computation of rates in connection with "Standard Freight Tariff"

Railroad Freight Rule No. 15 cancelled

9509-A 2288-M

12 -13 -6 2

Application of Walker Hauling

Approved with

Co,, Inc., and Petroleum Carrier modifications

Corp. for authority to establish

additional volume incentive rates

on liquid petroleum products, in

hulk

Supp. 9509-A 2288-M

12 -28-62

Application of Walker Hauling

Petition of railroads

Co., Inc., and Petroleum Carrier for rehearing and

Corp. for authority to establish reconsideration denied

additional volume incentive rates

on liquid petroleum products, in

hulk

- 28 -

BUS FARES AND SERVICES
For the first time in many years there was no application filed with the Commission during this year for increase in bus fares. The present fare level of 2.75 cents per mile was found by the Commission
in 19 6 1 to represent an adequate contribution from Georgia intrastate
traffic to the over-all operating expenses of the bus lines, and the revenue obtained from that fare level, plus the substantial earnings from intrastate transportation of bus express, has been sufficient to prevent the carriers from seeking further increases.
There also has been achieved a substantial stability in the services rendered by the bus lines within the State. While there have been the normal adjustments reflecting seasonal riding characteristics and other changes in operational patterns, there have been no major service adjustments during the year.
The investigation into the adequacy of the bus station facili ties in Columbus, initiated as result of complaint received last year, was completed and satisfactorily terminated by the necessary improvement of those facilities.
All and all in 1962 the bus industry in Georgia provided excel
lent service at reasonable fares and with adequate operating ratios, with the only significant exception being the financial difficulties of one urban type carrier in the Atlanta metropolitan area, Dahlonega-Atlanta Coach Lines, Inc., which remains in serious financial straits.
TRUCK RATES
For more than 12 years the Commission's prescribed rail and motor carrier rates on liquid petroleum products, in bulk, have success fully provided for the common carrier transportation by both rail and motor carrier in this highly competitive field. In recent years, however, there has been more and more diversion of the transportation of liquid petroleum products from both rail and motor common carriers to private operations of the shippers and receivers of these products. In an effort to stop this diversion and to reverse the trend to the extent possible,
both the railroads and the motor carriers sought during 1962 to establish
bases of incentive rates on these products designed to discourage private transportation. The motor carrier proposals involved reductions in charges in return for greater utilization of their vehicles. Two such plans were advocated by the motor carriers during the latter part of the year and after hearing on both plans the carriers handling these products were authorized to put those plans in effect with modifications made by the Commission, with the understanding that their operations thereunder would be subject to continued review by the Commission and such further action as the circumstances warrant.
By application in November of last year, Davis Transport Company and Petroleum Carrier Corporation sought revision of the present pointto-point asphalt rates to a county-wide destination basis and modification of rules and regulations governing the transportation of this commodity.
- 29 -

The applicants computed their proposed county destination rates by taking

"a modified average of existing point-to-point rates to destinations in
that county" with the rates so computed increased 6$. A number of other

increases in charges were proposed, principally consisting of increase
in truckload minimum to ^500 gallons, increase in stop-off charge from

$5 00 to $10.00 and a more restrictive detention rule. Review by the

Commission indicated that the method of computation of the county rates

would not produce an equitable representative rate for the entire county

in many instances, due to the fact that the destinations to which rates

were published on the point-to-point basis were either few in number or

not distributed geographically throughout the county. After extensive

study the Commission developed an alternative scale of county destination

rates, basing those rates on direct mileage from point of origin to the

ascertained geographic center of each county with the level of the scale

so set as to average approximately kjo higher than the concurrent point-

to-point rates. The Commission authorized the establishment of these

rates, subject to minimum of

gallons (with the exception that actual

weight would apply when equipment was loaded to capacity) and permitted

the establishment of the proposed revised detention rule but denied the

proposed increase in stop-off charge.

In promulgating these rates as maximum and minimum, the Com mission recognized the competitive influence of rates from asphalt shipping origins in other States to destinations in Georgia and specifi cally provided that where the prescribed rates resulted in Georgia origins being non-competitive with asphalt shipping points in other States, necessary adjustments would be permitted, subject to prior approval by the Commission. Following all these lengthy proceedings, one of the applicant carriers decided that it did not then desire to establish this revised county destination basis of rates, and competitive carriers indicated that they could not, under such circumstances, establish the revised basis since it would make them non-competitive. Accordingly, the Commission later in the year withdrew its order authorizing these rates and the conversion of motor carrier rates on asphalt to the county destination basis will be deferred pending further study by the industry.
There has been pending before the Commission for several years applications by motor carriers to transport small shipments in parcel type delivery service on a state-wide basis. As a result of hearings in these proceedings the Commission instituted specific investigations into the reasonableness of the charges for the transportation of this class of traffic by the certificated bus and truck carriers. As result of those investigations there was filed with the Commission during the year by the fixed route motor carriers of property a Parcel Tariff reflecting substantially reduced rates on shipments weighing less than
100 pounds when tendered under certain restrictive conditions as to
limitation of liability, prepayment of charges and execution of simple billing documents. These rates are based on a sliding mileage scale divided into four 25 pound weight brackets. It is anticipated that these revised tariff provisions, with their promise of improved services and lower charges to the shippers, will result in increased traffic with increased revenues to the carriers.

Application was filed last year by the Georgia Household Goods Movers Association, Inc., and the individual carriers shown as partici pants in the Household Goods Tariff issued by that Association, seeking authority to increase rates and charges for the transportation of household

- 30 -

goods. These carriers demonstrated at the hearing substantial increase in wage rates and material costs since the last increase in household
goods rates in January of 1958, and in consideration of those increased
operating expenses the Commission authorized the proposed increase in distance rates hut permitted only a lesser measure of increase in hourly rates applicable for distances of 20 miles and less. The Commission declined to prescribe those rates as maximum and minimum for all house hold goods carriers specifically providing that any such carrier which did not desire to increase its charges to the basis permissively authorized could file with the Commission an individual tariff, together with justifi cation for any departure from the rates, charges and provisions then published for its account. It is significant to note that the larger carriers, and most of the smaller carriers in the major terminal areas where operating costs are higher, made such rates effective for their account, but that a number of smaller carriers operating in the lower cost smaller towns elected not to increase their charges.

The Commission continues to experience difficulty in the regula tion of the rates, services and operations of the household goods carriers. Much of this difficulty is due to misunderstanding as to the authorized operations and rates covering those operations. In order to remove such doubts, the Commission during the year made two separate formal rulings concerning specific aspects of the household goods carriers* operations. These rulings were as follows:

(l)

That a movement wholly within the city limits of origin

would be exempt from rate regulation by the Commission where the house

hold goods carrier performing such transportation sent a vehicle to the

town of movement from an equipment point outside that town but made no

charge for empty mileage,, provided the carrier properly complied with the

business license regulations of the town wherein the transportation was

performed.

(2)

That a household goods carrier could maintain warehouse

facilities in a town outside its normal base and quote rates for storage

movements to that warehouse facility on the basis of the distance from

point of pick-up to its base rather than to the location of the warehouse

facility (such being performed under the contention that the movement to

the out-of-town warehouse facility was conducted for "carrier*s convenience")

subject to the following conditions:

(1 ) That the second warehouse was not listed in the
offer to the shipper as being the intended
destination of the shipment,

(2 ) That the rate charged the shipper was that to
the warehouse at the carrier's base.

(3 ) That any outbound movements from the "carrier
convenience" warehouse be billed as from the
carrier's base warehouse.

(4) That where other carriers were directed by the shipper to transport to destination shipments stored at the "carrier convenience" warehouse,

- 31 -

the shipment would he made available to such
other carriers at the carrier1s base warehouse
without delay and without additional charge to such other carriers or to the shipper.
RAILWAY EXPRESS
In March the Railway Express Agency filed application seeking
authority to apply an increase of 10 cents per shipment of one or more
packages in the charges on LCL express traffic between its stations in the State of Georgia - such proposed added charge to not apply on citrus fruit, fish and other sea food, or cut flowers (other than gladiolus moving under commodity rates). This proposed increase per shipment charge corresponded to that made effective on interstate express traffic earlier in the year. At the hearing the Express Agency demonstrated that the increase proposed amounted to only 3$ on the average LCL shipment and was badly needed to permit the Express Agency to provide adequate services to the shipping public under its reorganized structure. Wo one appeared at the hearing in opposition and the Commission on April 12 approved the proposed increase, thus putting Georgia on the same Railway Express rate level as already applicable on interstate traffic in the South and on intrastate traffic in all but one of the other Southern States.
As briefly reviewed in the "Truck Rates" section of this report the fixed route motor carriers during the year established a reduced
level of rates applicable on shipments weighing 100 pounds or less, sub
ject to certain restrictions. The effect of this adjustment was to immediately divert to truck transportation a considerable volume of small shipments traffic formerly moving by Railway Express. In order to meet this competition the Express Agency was authorized in July to file for its account a tariff exactly meeting the rates of the truck lines. Thus there was effected during the year a substantial reduction in shipping cost for shippers of small packages via both truck and Railway Express,
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 Midville, Molena, Ochlocknee and Whitehall, but the need shown for railroad agency opera tions at Iron City resulted in the contingent express application involving that point being denied.
Separate application was made to close the express offices at Machen, Millhaven, Sardis and Warwick - the applications concerning Millhaven and Sardis being result of the total discontinuance of railroad services at those points. These applications were approved. In addition, authority was sought to consolidate the express offices at DeSoto and Leslie, and in view of the support of the proposal by the city officials of those towns, the Commission approved that application, subject to the provision that the consolidated office be identified as "DeSoto-Leslie".
- 32 -

Separate application was made to close the express office at Oglethorpe and to extend the Montezuma pick-up and delivery limits to include all the area then being provided express service in Oglethorpe, and in view of the continuance of the same service and the lack of public objections, the Commission approved this application.
RAIL PASSENGER SERVICE
In October of last year the Southern Railway Company filed application for authority to discontinue operation of its Passenger
Trains Nos. 7 and 8 between Jesup and Brunswick. This application
involved the discontinuance of the last passenger train service between Jesup and Brunswick and was vigorously opposed by residents of the affected area. Following extensive hearing the Commission found that the Southern Railway had made little or no effort to attract passengers to these trains and criticized the equipment and schedules. It was held by the Commission that while these trains between Jesup and Brunswick operated as a deficit when such operation was considered separately, due to the nature of this operation (branch line type service) there was question as to the extent of that deficit and the applicability to such operation of the system-wide average cost formulas used. In considera tion of those factors, and in view of the fact that approval of the application would eliminate the last railroad passenger service to one of Georgia*s two port cities, remove the last rail passenger link of that major city with the State*s Capital and deny to the rapidly growing vacation area around Brunswick the only direct land common carrier passenger service to and from the large populated areas of the northern half of the State - the remaining public land transportation facilities providing unattractive, circuitous and inadequate substitute for this rail service - the Commission declined to authorize the discontinuance of these trains at that time. The Commission retained jurisdiction in this proceeding, however, and specified that its order would be subject
to review after the expiration of a 12 month test period, provided the
Southern Railway Company would during that period place more attractive facilities on these trains and adequately advertise the services and provided that the Southern Railway Company would furnish a more detailed showing of its operational results on a basis more closely related to the branch line operation there involved.
By application received in June of this year the Atlantic Coast Line Railroad Company sought authority to consolidate the segment of its Passenger Trains Nos. 180 and 189 between Waycross and Savannah with its Passenger Trains Nos, 91 and 92 ("West Coast Champion") then operated between Folkston and Savannah via Nahunta by rerouting Passenger Trains 91 and 92 ("West Coast Champion") through Waycross and discontinuing
Passenger Trains Nos. l8o and 189 between Savannah and Waycross. This
application contemplated the elimination of the last passenger train services to the towns of Burroughs, Fleming, McIntosh, Walthourville, Ludowici, Doctortown, Screven, Offerman, Patterson and Blackshear and the placing of conditions on stops at other intermediate points. No
mail was handled on Passenger Trains Nos, 180 and 189 to or from the
intermediate stations between Savannah end Waycross, and the railroad proposed to continue its express service on over-the-road trucks. There was no opposition expressed at the hearing or otherwise by residents of
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the stations intermediate between Savannah and Waycross to the contem plated loss of passenger train service to those towns, and in view of that fact and of the many letters received from the Waycross area urging the consolidation and rerouting, the Commission approved the application, subject to improvement of stop conditions on the remaining service at Nahunta and the adequate handling of express shipments.
There has been pending before the Commission since November of 1961, application of the Central of Georgia Railway Company for authority to discontinue its Passenger Trains Nos. 17 and 18 (The Flamingo) between Atlanta and Albany. At the request of the applicant the record was reopened in July for the purpose of introduction of later statistics of operations of these trains and further hearing was held on the applica tion in September. The amended record in this proceeding is now being reviewed with decision expected in the near future.
Local travel on the passenger trains still operating within the State of Georgia has continued to decline, particularly to and from the smaller stations and it has become a burden on the railroads to main tain at all of those smaller stations stocks of tickets which are seldom, if ever, used. In consideration of that fact the Commission in July authorized the Southern Railway Company, the Georgia Southern and Florida Railway Company and the Alabama Great Southern Railroad to remove its passenger ticket stocks from its stations at Flowery Branch, Norcross, Chamblee, Austell, Juliette, Warm Springs, Villa Rica, Temple, McDonough, Douglasville, Tallapoosa, Unadilla, Vienna, Sycamore, Hahira, Fargo and Trenton, with the provision that passengers would be able to purchase necessary tickets from the train conductors.
RAIL FREIGHT
In last year's report there was reviewed in detail the complaint of Solvay Process Division of the Allied Chemical Corporation 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 the tracks of the Southern Railway. As indicated in last year's report, by order dated December 11 of last year, the Commission directed both the Atlantic Coast Line Rail road Company and the Southern Railway Company to remove the unjust dis crimination found to exist either by broadening, insofar as intrastate commerce was concerned, the provisions of the new joint operating agree ment to permit the Atlantic Coast Line Railroad to serve Solvay to the same extent it was permitted to serve Solvay's competitor or by mailing such tariff adjustments on intrastate traffic as would give Solvay the same freedom of choice of routes and services available to its competitor at the same rates and charges available to that competitor. The Commission in January of this year granted the Southern Railway Company additional time in which to file motion for reconsideration, but upon receipt of that motion and review of the motion and the record the Commission concluded that there was no showing of adequate grounds for the requested recon sideration and thereupon denied the motion and directed the respondents to remove the discrimination found to exist in this proceeding by not later than March 1 of this year. The Southern Railway Company appealed

the Comission* s decision to the courts and following extensive legal proceedings through the courts, the Supreme Court ruled that the dis crimination should be removed by the alternative method specified by the Commission of making tariff adjustments. Such tariff adjustments were seasonably made and it remains to be seen whether the physical services provided by Southern Railway switching will give to Solvay the same measure of transportation services as that provided to its competitor which is served direct by both carriers. The Commission will closely watch this matter in order to insure that discrimination does not again arise.
By application dated May 8, the Atlantic Coast Line Railroad
sought authority to establish reduced rate on multiple carload shipments of crushed stone and related articles from Tyrone to Broadhurst, the request involving a departure from the Commission*s prescribed single and joint line scale of rates on these commodities. At the public hearing held on this application the Atlantic Coast Line Railroad under took to show that the savings involved in the handling of these commodi
ties in lots of 10 cars would amount to slightly more than the proposed
rate reduction but that it did not desire to make similar reduction in rates on this and related commodities between all points within the State of Georgia - contending that the revenue from transportation of this material was very important to the railroads in Georgia, that a 10 cent general reduction in rates would result in an annual decrease in revenue in the handling of this traffic of over a million dollars to the Atlantic Coast Line Railroad alone and that it thought the present rates were as low as normal conditions would justify. It was developed that the princi pal reason for the proposed adjustment was competitive pressure, the Atlantic Coast Line Railroad contending that it was only meeting what it felt to be unreasonable competition of another railroad. Considerable detail was given of a substantial movement of crushed stone where the traffic had been secured by this competing railroad through that rail road* s offer to transport the stone at a charge considerably below the established rate. It was stated that a representative of that competing railroad had attempted to justify its action by claiming that the xoromised reduced rate on crushed stone was only a part of a "package deal" involving the transportation by the same carrier of a substantial quantity of sand and cement - apparently the large over-all volume involved making the traffic attractive even at a substantially reduced rate. There had been no such rate reduction sought from this Commission by the competitive carrier but the Atlantic Coast Line Railroad argued that this promise of a reduced rate to one shipper made without publication (or other notice) in order to enable that shipper to secure a large order was unfair both to the other carriers and to other shippers and that it and other railroads had protested to the carrier making such "midnight" quotations, but to no avail. The Commission, in recognition of the fact that the sand and gravel business is one that is extremely sensitive to competition and one in which transportation costs constitute an important competitive factor denied the individual adjustment here sought as being unfair to competing producers and competing railroads and took the opportunity to emphasize to all concerned that the Commission would not countenance such manipulation of the intrastate rate structure on these commodities to promote the interests of any individual shipper or carrier in preference to other shippers or carriers. The Commission did not, however, make any finding as to the reasonableness of the measure of the reduced rate proposed and announced that upon the petition of any

individual shipper or carrier it would assign for hearing proposed modification of the rate structure on these commodities to provide for lower rates on multiple-car shipments, with such multiple-car rates to he on a mileage basis available to all.
During the year the trailer-on-flat car or "piggyback" traffic of the railroads operating in the State has continued to increase signifi cantly. More and more loading and unloading ramps are being constructed by the railroads in this State, thus making the benefits of the "piggyback" services available to more communities. Although movements totally intra state within this State are comparatively short, there have been a number of "piggyback" rates established to move intrastate traffic. In general, applications to establish these "piggyback" rates have been promptly approved for publication by this Commission, but the motor carriers have indicated concern over the railroads' program of establishing reduced Plan II "piggyback" rates where the railroads supply the trailers and furnish the pick-up and delivery services. Formal protests on the part of those motor carriers are anticipated - this service being directly competitive with that of the motor carriers and the rates filed for such Plan II service in many instances being far below those of competing motor carriers.
There was reviewed in the "Truck Hate" section of this report the "incentive" bases of rates established by the motor carriers on petroleum products, in bulk* The railroads, also recognizing the need to prevent diversion of this traffic to private operations and to also promote heavier loading of rail tank equipment, sought and secured Commission approval of an incentive basis of rates on these commodities
wherein reductions of 35$ were made in the rates on the portion of a ship ment of these products in excess of 10 ,500 gallons in the same tank car.
RAIL AGENCY SERVICE
There continues to be a decline in the railroads' program of seeking discontinuance of agency services at the smaller stations probably due to the fact that most of the unprofitable agency operations have already been abandoned. This year the Commission processed applica
tions involving 19 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 was such as to no longer justify the continuing increase in cost of maintaining agency service. As is its established custom the Commission adhered to the policy of deciding such applications on the need for and use of the services rather than solely on the statistical showing of revenue versus
cost. Of the 15 applications processed during 1962 the Commission found
that the public convenience and necessity of the affected areas would
not be adequately served without agency service in 3 instances and
accordingly denied authority to discontinue agency service at Iron City, Mineral Bluff and Nelson. Authority was granted to discontinue agency service at Everett (at both the Seaboard Air Line Railroad and Southern Railway stations), Farmington, Cataula, Midville, Molena, Moody Air Force Base and Ochlocknee.
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There were three applications filed during the year seeking authority to establish dual agency operations under a single agent. Upon showing at public hearings that the proposed dualized services would adequately serve the public, the Commission permitted the Atlantic Coast Line Railroad to dualize the agencies at Hoboken and Patterson and per mitted the Central of Georgia Railway to dualize its agencies at Hamilton and Pine Mountain and at Oglethorpe and Montezuma.
Application was filed by the Central of Georgia Railway to dissolve a dualized agency operation then in effect at the stations of Whitehall and Watkinsville. Upon showing at public hearing that agency service was no longer reasonably required at Whitehall and that the traffic handled at Watkinsville had significantly increased, the railroad was permitted to discontinue agency service at Whitehall subject to the provision that full-time agency service be restored at Watkinsville.
A number of years ago, the Commission authorized the Georgia Southern and Florida Railway Company to discontinue agency service at Bonaire and Kathleen, subject to the condition that an agent be pro vided at those points during the peach and watermelon seasons. The volume of peaches and watermelons shipped via rail from these points has dropped substantially since the Commission's order and the need for agency service had practically disappeared. Under such circumstances the Commission, on application by the Georgia Southern and Florida Rail way Company, eliminated the requirement that the carrier provide agency service at Bonaire and Kathleen during the peach and watermelon seasons and permitted the removal of the depots at those points.
HEW RAILROAD CONSTRUCTION
There was filed with the Interstate Commerce Commission on November 16 application by the Chattahoochee Industrial Railroad seeking a certificate of public convenience and necessity authorizing the con
struction of 19 .2 miles of main line railroad in Early County. This
railroad will be a subsidiary of Great Southern Paper Company which is building a large multimillion dollar paper mill at Cedar* Springs in Early County. In recognition of the importance of this new industry to this area of Georgia and the need of that industry for these railroad facilities, the Commission formally advised the Interstate Commerce Commission that it supported the grant of the certificate of public con venience and necessity sought and that it urged that the application be processed as expeditiously as possible without public hearing so that the common carrier rail facilities might be made available to the plant as soon as possible.
MISCELLANEOUS
There were two applications during the year seeking authority to institute condemnation proceedings for the purpose of acquiring property needed to improve railroad facilities. Both applications involved property in Paulding County in the City of Dallas and were sought for the purpose of revising the grade and alignment of a portion of the Southern Railway main line between Dallas and Hiram. Upon showing
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at public hearing that the track realignment would permit safer and more efficient operation of trains on this important main line of the Southern Railway and that the route chosen, including that over the property sought to he condemned, was the most feasible route to effectuate the realignment, the Commission authorized the institution of condemnation proceedings as being required for the safe and efficient conduct of the petitioner's business as a public carrier and for public purposes.
The Commission's Railroad Freight Rule No. 15 provided for method of computation of rates in connection with the `'Standard Freight Tariff". For many years the application of the Commission's "Standard Freight Tariff" has been extremely limited and by a process of evolution all such application was terminated more than two years ago. Accordingly, in recognition of the fact that Railroad Freight Rule No. 15 no longer served any useful purpose, the Commission on December 7 ordered the can
cellation of that rule, effective January 1, 1963.
The Commission's Railroad Freight Rule No, 22 read as follows:
"USE OF PROPERTY BY ANOTHER RAILROAD NOT AUTHORIZED. No regulation of the Commission shall be construed as requiring or authorizing the use of any property of one railroad company by another railroad company, for any purpose whatever, without the consent of the owner of such property."
Extensive search of the Commission's files and analysis of recent formal proceedings before the Commission involving this rule which proceedings were later reviewed by the State's highest court failed to reveal any statutory requirement for such a rule or the purpose behind its adoption by the Commission. Freight Rule 22 in slightly modified form, but of the same substance, was found to have
been in effect since 1887 but so far as could be developed was never
involved in any proceeding - formal or informal - before the Commission until the recent past. At that time its application was subject to con siderable controversy and its attempted use was in such a manner as to^ be against the public interest and to evade reasonable regulatory require ments.
The laws of Georgia provide entirely adequate protection of the property rights of all carriers subject to the jurisdiction of the Commission and the rule is not needed for that purpose. Further, the Commission recognized that the Interstate Commerce Commission can and does require use of one railroad's facilities by another under appropri ate circumstances. There appeared to be no justification for this Com mission to prohibit such use of railroad facilities on intrastate traffic where the use of the same facilities could be required on interstate traffic. Accordingly, the Commission felt that under the circumstances the public interests would be best served by the cancellation of Freight Rule No. 22, and on November 30 ordered such cancellation, effective January 1, 19^3*

WESTERN & ATLANTIC RAILROAD

There was considerable discussion with the lessee of the Western & Atlantic Railroad concerning its annual report for the calendar year
1962 of net expenditures for additions and betterments to the property.
The report as first filed eliminated the amount of $979*67^.36 from previous additions and betterments accounts - that revision reflecting new regulations of the Interstate Commerce Commission concerning classifications of such expenditures. It was pointed out to the lessee that the lease required that there be reported as additions and better ments to the property all amounts therefor which would have been so classified under the accounting instructions of the Interstate Commerce Commission as of the date of the lease. The lessee thereupon revised
the 1962 Report to retain in the additions and betterments accounts the
amounts it had first proposed to eliminate.

As revised, the annual report of the lessee of the Western &
Atlantic Railroad for the calendar year 1962 shows for the net expendi
tures charged to the accounting classification "Additions and Betterments
by classes of railroad property, the following amounts:

Improved Track materials.# $ 5*97$.13

Land for transportation purposes...... Bridges, trestles and culverts........

(250.00)
2,28 1,^0

Yard tracks and sidings............... ^*35^.60

Station and office buildings.......... (3*104.05)

Communication systems.................

7*306.51

Signals and i n t e r l o c k e r s . (819*71)

The above net additions reported are after deduction for value of property
replaced during the year and total $15 ,7^-6.88. The revised 1962 Annual
Report shows that the net capital expenditures made by the lessee for
additions and improvements to the Western & Atlantic Railroad from the
beginning of the lease in 1919 through December 31* 1962 amount to
$8,05^*195.

PARTICIPATION IN INTERSTATE TRANSPORTATION CASES

Since 1955 this Commission, together with the other Southern State Commissions and the Southern Governors1 Conference, has been seeking through formal complaint before the Interstate Commerce Com mission reduced railroad rates between the West and the South and within the South to move the large and constantly increasing amount of grain which the grain deficit the South must have to properly supply its bakery, poultry and livestock industries. (The background of this complaint and
the progress thereof since 1955 have been fully reviewed in prior reports
and will not be here repeated. ) Finally late last year there was issued

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a proposed order by the Interstate Commerce Commission examiner in this Grain Rate Case in which the examiner recognized the injustice of the present level of railroad rates to, from and within the South on grain and grain products, but failed to affirmatively require the single factor through rates from the producing territories to the South which must be established to give the South the full measure of relief needed. On January 18 we joined with the Southern Governors* Conference and the other Southern State Commissions in filing exceptions to this examiner*s proposed report, pointing out the failure to accord the South the full measure of relief needed. Oral argument was scheduled before the Inter state Commerce Commission on October 2, but has now been postponed to a date to be later fixed by that Commission,
Closely connected with our grain rate complaint is the partici pation of this Commission, together with the other Southern State Com missions and the Southern Governors* Conference, in the proceeding before the Interstate Commerce Commission involving reduced rates on grain shipped in multip3.e car lots of not less than 450 tons. This case was reviewed in last year's report, such review ending with the report that the proposed reduced rates had been set for investigation by the Com
mission and assigned for public hearing beginning early in 1962, Those hearings began on January 8 but drug on for eight months and were not
concluded until August 29. The suspension period expired on August 7 but a group of the protestant barge lines took the matter to court and, although losing in the lower federal courts their petition for court delay of the reduced rates until final ruling on the reasonableness of the rates was made by the Interstate Commerce Commission, were able to induce a member of the Supreme Court to grant an injunction prohibiting the application of the rates pending review by the Supreme Court, This Commission, together with the other Southern State Commissions, intends to actively support both before the courts and before the Interstate Commerce Commission this new theory of reduced rates which offers sub stantial relief to the Southern growers of grain and consumers of grain and grain products.
During the year the Louisville and Nashville Railroad Company petitioned the Interstate Commerce Commission in that Commission's
Finance Dockets Nos, 21755 and 21892 (both involving proposed control
by other railroads of the Chicago & Eastern Illinois Railroad Company) seeking as a condition of approval of the application in either docket that the Interstate Commerce Commission require sale to the Louisville and Nashville Railroad Company of the Chicago-Evansville line of the Chicago & Eastern Illinois Railroad, This Commission, in consideration of the interest of the shipping public of the State of Georgia in the short line route to Chicago formed by the Louisville and Nashville Rail road-Chicago & Eastern Illinois Railroad, and in view of the fact that a portion of that route included the State-owned Western & Atlantic Railroad, intervened in both dockets in support of the Louisville and Nashville Railroad petition. A representative of the Commission testified at the hearing in Evansville, Indiana in support of the Louis ville and Nashville Railroad and emphasized to the Commission the interest and concern of the State of Georgia in the maintenance of this important connecting link between Georgia and the Midwest,

For many years, the Georgia & Florida Railroad has "been in serious financial straits, and as pointed out in last year's report the proposed merger of the Atlantic Coast Line Railroad and Seaboard Air
Line Railroad would divert 10.56/0 of the freight revenue of the Georgia
& Florida Railroad, thereby undoubtedly resulting in its financial^ collapse. There was some thought that either the Atlantic Coast Line Railroad, the Seaboard Air Line Railroad or the merged company might
seek to take over the facilities of the Georgia 85 Florida Railroad but
it turned out instead that three Southern Railway subsidiaries, the Carolina and Northwestern Railway Company, Live Oak, Perry and Gulf Railroad Company and South Georgia Railway Company, filed a petition with the Interstate Commerce Commission for authority to acquire control of this line. This Commission, in recognition of the fact that the Georgia & Florida Railroad could not long survive even if the merger of the Atlantic Coast Line and Seaboard Air Line Railroad were not approved, intervened in this control case in support of the acquisition of control by the three Southern Railway System affiliates. The Commission recognized also that not only would approval of this application preserve the services to the public of the Georgia & Florida Railroad but the financial resources of the Southern Railway would enable the operator of the Georgia & Florida Railroad to substantially improve the facilities of the line and the services rendered by the line to its patrons. Accordingly, this Commission urged approval to the proposed control, and a member of the Commission testified to that effect at the hearing in Washington, D. C. At the year's close no decision had been made by the Interstate Commerce Commission, but such decision is expected shortly.
In last year's report there was briefly reviewed the application of 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) for authority from the Interstate Commerce Commission to con struct a spur track in Baldwin and Putnam Counties to serve a new steam generating plant of the Georgia Power Company. This Commission concluded that the proposed track construction would help the industry by providing the protection and benefits of multiple carrier service, would help the Georgia Railroad by the establishment on that line of a major railroadusing industry with a substantial volume of traffic and would not harm the only other carrier in the area, the Central of Georgia Railway, since it, too, could participate in the transportation of the coal supplies to the plant and thereby add substantial, new revenues to its operation. The Central of Georgia Railway strenuously opposes this track construction contending that the new plant is located in an area which should be served exclusively by it. At the hearing held on August 14 a representative of this Commission indicated support by the Commission of the Georgia Rail road service to this plant and urged that consideration be given to authorizing multiple carrier service to the plant over one track owned either by the Central of Georgia Railway or Georgia Railroad, with the other carrier being given appropriate trackage rights thereover. It was felt that the single track construction would provide the benefits and protection of multiple carrier service, while at the same time greatly reducing the cost to the railroads to serve the plant. In November, the Commission filed brief in this case emphasizing the interest of the public in the multiple carrier service to this plant and again urging the service by both carriers over a single track. By order served on December 3, the Interstate Commerce Commission examiner approved the
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proposed construction as being in the public interest and followed the advice of this Commission by recommending the trackage rights arrangement permitting multiple carrier service over a single track. Exceptions to this proposed report are due on January 22, 1963* "k'^t since the examiner concurred with this Commission in his findings and order, no exceptions thereto will be filed by this Commission.
For the last two years there has been included in this section of the Commissions annual report discussion of 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 rail roads in this State. There was served on August 2k an examiner* s report in this proceeding wherein the examiner approved substantially everything that the applicants had sought to effectuate in their merger proposal. The examiner did recognize the drastically adverse impact of tne merger on many smaller railroads in the six-state area and recommended that the Interstate Commerce Commission retain jurisdiction for five years to consider any petition filed by other railroads for inclusion in the merger. The examiner should be commended for his efforts to so modify the standard merger conditions to afford greater protection to other carriers and the public served thereby, but this Commission felt that such protection would not be effectively afforded unless still further modification was made,. Accordingly, the Commission filed on December 7 exceptions to this proposed report attacking generally the finding that the merger should be approved and specifically seeking additional modification to these protective provisions if the merger should be^ eventually approved. It was pointed out in that brief that the period of five years specified by the examiner within which other railroads could seek inclusion in the merger would not adequately protect the interests of the State of Georgia dependent upon the Georgia Railroad for railroad services. It was emphasized that the Georgia Railroad was
under lease until 1980, with that lease being held jointly by one of
the applicants in the merger proceeding and by another carrier controlled by that same applicant and that thus its operating management now had none of the freedom of action necessary to take advantage of the examiner's proposed protective conditions. It is a matter of general knowledge that there is disagreement between the owners of the Georgia Railroad property and the lessees as to the construction of a principal provision of the lease, that the construction of this provision is large in financial import and would not be susceptible to determination until the lease comes to an end. Faced with this indeterminable factor, the Commission argued that it was not reasonable to expect that the owners of the property would be able within the prescribed five year period to take advantage of even the poor choice afforded by these proposed new
protective provisions.
The Commission further argued that in any event the effect on the public served by the smaller carriers was the primary protective concern of these new conditions - or at least it snould be. The Com mission emphasized that there was every prospect that the proposed merger would so badly damage the earning power of the Georgia Railroad facilities as to make economically unattractive, following the expira
tion of the present lease in 1980, either its continued lease operation
by the present lessees or its independent operation by either the present

owners or other interests. The Commission strongly argued that the minimum that the public interest of the State of Georgia demanded was that there he afforded at the end of the present lease of the Georgia Railroad a period of reasonable time within which the Interstate Commerce Commission could be petitioned for inclusion of the Georgia Railroad facilities as a permanent part of the operation of the merged line. ^ Extensive further proceedings are anticipated in this merger case since there is wide opposition thereto and there would undoubtedly be appeals made from any subsequent decision by the division to which this matter
will naturally proceed.

UTILITY REGULATION

INTRODUCTION

At the close of the calendar year 19&2, there were under jurisdiction of the Public Service Commission the following number of public utilities:

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

Natural G a s .................................... 5

Telephone(including i- co-operatives).......... 59

Telegraph ................................... 1

T r a n s i t ...................................... __3

Total

71

No regulatory authority is exercised over the rural electric co-operatives pursuant to law. However, this Commission renders a valuable service by the regulation of the private utilities wholesale rates under which the co-operatives* energy is purchased. Regulation is imposed upon twenty-two (22) municipal gas systems in areas where such systems extend beyond the county line of the municipality.

To accomplish the ` mission assigned the Public Service Commis sion by law in regulating utilities, a Utilities Division is organized in such a manner that results in maximum efficiency when consideration is given with respect to the budget funds available for the employment of competent clerical and technical personnel. This division is made up of the accounting, rates, finance and audit section and the engineer
ing service and certificate sections, both of which function under the
direct supervision of the Chief Utilities Engineer. During 1961 five (5) staff members were lost due to deaths and resignations. These positions were filled in early 1962 by qualified individuals but lacking
in experience deemed essential for regulatory staff duties. Considerable "on the job" training must be done in order to equip the new staff members for the work in their particular assignments. The Utilities Division is authorized a total of fourteen (lb) staff members but is operating with only twelve (12) at the present time. It is hoped that the two (2) existing vacancies can be filled providing funds are made available within the budget limitation. Competition is still keen in both industry and regulatory agencies for qualified personnel. Every effort is made to encourage the younger staff members to remain with the state and all advantages are made known to them. However, when higher salaries are offered, losses do occur. Efficient regulation requires an adequate and competent staff and without such the analyses and studies required on the formal cases cannot be performed which are essential for the Commission to reach a fair and impartial decision.

The design and the development of utility rates are a most intricate process involving many aspects of accounting, finance, engineer ing, economics and law. The Commission has a duty to prescribe utility rates that are fair and reasonable to the public and which will be in keeping with a fair rate of return for the utility so that the stock holders will continue to invest dollars for the necessary expansion of the utility systems which will adequately serve the public.

The workload continues to increase as a result of the con tinued. steady growth of utility consumers in the state which means that more problems arise requiring prompt auction by the Commission.
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MtSCELLANEOUS ACTIVITIES
As reported in previous years, the technical staff has actively participated in work of committees of both regional and national scope in co-operation with the National Association of Railroad and Utilities Commissioners and the Federal Communications Commission. The Commission's Chief Utilities Engineer is a member of the National Association of Rail road and Utilities Commissioners Staff Subcommittee of the Committee on Communications Problems. This important committee, composed of experienced staff members from various state commissions and the Federal Communications
Commission, met on three occasions during 1962 and after a considerable
amount of detail analysis work, produced an Addendum to the 1957 NARUC-FCC Separations Manual to cover appropriate changes as previously recommended. These separations changes which were achieved as a result of the co operative effort were the most far-reaching of any which have ever been made, and have resulted in the greatest reduction of intrastate toll rates to date thus diminishing or eliminating the toll rate disparity problem between interstate and intrastate toll rate schedules. This type of work must be continuous in order to pursue exploration of further refinements and modifications in separation procedures and to maintain certain practices up to date with the everchanging conditions and operating tech niques in the telephone industry such as Extended Area Service, Wide Area Telephone Service, Wide Area Data Service and any other comparable complex services.
In addition to work on the toll rate disparity problem, the Committee's study and analysis of Western Electric Company's operating report ultimately resulted in revised price lists covering sales of its manufactured products to the Bell System Companies estimated to be approximately $38,700,000 per year. Southern Bell Telephone and Telegraph Company will benefit to the extent that the cost of products purchased will be reduced by approximately $5*000,000 and Georgia will of course benefit by the lower cost proportionately. Further, the work of this committee has resulted in assistance to the Independent Telephone Companies obtaining additional toll compensation. This was through a joint agree ment between the United States Independent Telephone Association and the Bell System on revised settlement schedules for use by Independent Companies which use average revenue per message schedules for BellIndependent settlements for interchanged message toll and wide area tele phone service. These revised schedules stem from studies of costs of handling interchanged traffic in several hundred Independent Company exchanges and cover the following:
"A" function (Originating) - The cost of central office equip ment, outside plant and station equipment for inward and out ward message toll and for inward WATS use. Also included are commercial expenses (billing and collecting, uncollectibles and hotel and motel commissions), accounting and promotion (advertising and sales expense).
"B" function (Operator) - The cost of timing and ticketing originating traffic, the necessary toll switching facilities and associated toll operating functions. Separate schedules were developed for handling traffic manually and for automatic ticketing.
"C" function (Line Haul) - The cost of that portion of inter change facilities furnished by Independent Companies in handling interchanged message toll and WATS traffic.
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TRAINING

During the past k years a 2-week short course sponsored by the National Association of Railroad and Utilities Commissioners has been conducted at the Georgia Institute of Technology. The fourth short course designed especially for regulatory staff members was highly successful this year and was attended by 32 students from all over the United States, including Hawaii. The subjects covered included:

Design of Utilities Rates and Rate Structures Taxes and Tax Structures Depreciation Concepts Fundamentals of Accounting as Applied to Utilities Legal Background of Regulation Rate Case Problems and Practices Public Utility Concept Capital Formation Utility Finance Cost of Capital Service Aspects of Utilities
Cost Allocation"for Rate Cases

Problem sessions were held each afternoon so as to give the students an opportunity to demonstrate what had been learned. The best instructor talent available was used in the various subjects given in the course. The objective of the training program was to help the professional staff member or commissioner of Federal or State Regulatory Commissions become a more effective member of the regulatory agency and to prepare him for greater responsibilities.

At the conclusion of the short course, a critique was given for the purpose of summarizing the salient features and to obtain constructive criticism for use in improving the training program in general. It should be noted that it is most difficult to design a training program of such short duration which has such a variety of students classified as engineers, accountants, auditors, rate analysts, attorneys and transportation specialists.

Subsequent to the conclusion of the Fourth Annual Regulatory Development Short Course, a complete report was prepared by the committee chairman for submission to the Commissioners* Committee. This report was later adopted by NARUC and recommendations were made
for another short course in 1963 to be held somewhere at a university
more centrally located in the United States. The committee was of the opinion that a larger number of students might be in attendance for enrollment if a more central location were selected in areas where state commissions had a larger staff.

Technical members of the Public Service Commission staff

undergo periodic training through staff conferences, attendance at

short courses, seminars and special ''work shops. These work shop

sessions are generally held at regulatory conventions in regional

and national locations throughout the United States. At these meetings

much is gained through the interchange of ideas and methods used by

staffs in dealing with the public and utilities as well as certain

principles used in the preparation for rate and security formal

proceedings.

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General:

SERVICE

The services as provided by tile utilities of this state have steadily improved if we are permitted to use a familiar gauge of the quality of service; namely, complaints made by the customers of a utility.
During 1962, the total number of electric, gas and telephone
complaints brought before the Commission fell approximately five percent
from the total recorded for 1961 (see Chart "B"). However, it should be
borne in mind that of the complaints registered with the Commission, most were difficult to solve and in many instances such complaints had ini tially been handled by the utility in a manner unsatisfactory to the customer.

It was also during the year 1962 that the engineering section
of the Utilities Division, working in close cooperation with the Georgia Telephone Association, achieved the printing of a map showing the certi ficated areas of operation for all telephone companies. This map served to clear up certain boundary errors and brought to the attention"of all companies the areas for which a Certificate of Public Convenience and Necessity had not been issued. Subsequent to the printing of the maj>, numerous applications were filed with the Commission wherein authority was sought to amend outstanding certificates. Suffice to say, all operating companies and the Commission benefited materially from the printing of this map.

Activities :
While the settlement of alleged violations against a utility company represent one type of enforcement action, it should not be con sidered as a substitute for effective regulation. A more positive approach to the enforcement of service rules is a definite program of checking and inspection to insure compliance with the Commission's requirements. Our implementation of this program takes form through:
(1) Scheduled visits to the office of the utility for purposes of examining records of deposits, meter tests, refunds, accounts, and many other records which the company is required to keep.
(2 ) Periodic examination of certain reports and data
filed with the Commission.
(3) Actual, field trips conducted to determine accuracy and adequacy of utility plant and equipment.
A few commissions have large staffs of engineers and can assign individuals to work with a specific utility. Most commissions, however, to include our own, have small staffs and find it necessary for the engineers to work in various capacities with each type of public utility. This flexibility, characteristic of our own staff, provides the means whereby effective service regulation can continue with a minimum of personnel.
- kT -

TOTAL COMPLAINTS (hundreds)

CHART

ELECTRIC UTILITIES
Our 89th report outlined the action taken by the Commission and
the two electric utilities in Georgia in regard to the now-famous anti
trust price fixing conspiracies of 29 electrical equipment manufacturers.
During 1962, suits were instituted by Georgia Power Company and
Savannah Electric and Power Company for recovery of damages resulting from the conspiracies between these manufacturers of electrical equipment. The Commission is following this matter closely, but as of the date of this report, no amicable solution has been reached between the litigants.
Georgia Power Company
In April 1962, Georgia Power Company filed an application with
the Commission in which authority was requested to issue and sell, at competitive bidding, $23,000,000 principal amount of First Mortgage Bonds
at not less than 99 per cent of the principal amount thereof; 7, 000
shares of Preferred Stock at a price of not less than $100 per share; also authority to issue and sell 60,000 shares of Common Stock to its parent, the Southern Company, for a cash consideration of $6,000,000. Because the Southern Company owned all of the then issued and outstanding shares of Common Stock of Georgia Power Company, the Company requested the Commission to waive the provisions of its Rule 15 which required competitive bidding for large common stock issues. The Commission granted its waiver of Rule 15 and the Common Stock was sold privately to the Southern Company.
In the proceeding of this matter, the Company showed to the
Commission that it proposed to make capital expenditures during 1962 which would exceed $73*200,000, and that this issuance of securities was
necessary to provide a portion of the required funds. After careful consideration of the matter, the authority requested by the Company to issue Bonds, Preferred and Common Stock was approved by the Commission.
In December 1962, Georgia Power Company filed an application
with the Commission in which authority was requested to renew its "Residential Wiring Plan" for a period of ten years. Since the Commission was aware of the features of this plan and since the plan had been ac cepted by the Commission on December 4, 1959* subject to a trial period
of three years from January 1, i960 with an option of renewal of the
plan for an additional ten years, public hearing of the instant applica tion was deemed not necessary by the Commission. In its application, the Company showed to the Commission, among other things, that in the three years since the inception of its "Residential Wiring Plan" the Company invested $6,770,400 for qualifying service entrance facilities with more
than 60,000 customers receiving benefits and that the plan had also
produced an estimated $3*5&3*4l5 of additional revenues to the Company during the trial period of the plan.
After careful consideration of the matter, the Commission in
December of 1962 authorized the Company to extend its "Residential Wiring Plan" for a period of ten years from January 1, 1963 with the provision
- 48 -

that the Company shall file a report with the Commission at the end of each quarterly period showing the results of the plan.

Applications which involved rates for certain electric services
rendered by Georgia Power Company were considered and approved by the
Commission during the year 1962 as follows:

APPLICABILITY :

Optional Rate Schedule "A-11-A"
(Effective with meter readings
on and after October 1, 1962)

Applicable only to service required to operate residential appliances, lighting, heating and incidental power, when supplied through one meter to each individual residence or apartment unit.

This rate is optional with the regular residential rate, Schedule A-10, and may be elected on an annual basis by any customer whose principal energy requirements are furnished by electric service purchased here under; provided that such service includes electric water heating, electric cooking, and electric space heating for all dwelling space in the home.

The incidental power service supplied hereunder shall be limited to that required for the normal operation of the home. Specifically excluded is the operation of farm equipment, and manufacturi. ng or commercial equipment of any kind. Starting currents of residential motor load supplied hereunder shall conform to the limitations out lined in the regular residential rate, Schedule A-10.

Water heaters served hereunder shall confoim to Company water heater standards.
ANNUAL RATE:

First 9,000 KWH per year @ 1.6^ per KWH Over 9,000 KWH per year @ 1.2^ per KWH
MINIMUM ANNUAL CHARGE:

$144.00 (including fuel adjustment). AVERAGE MONTHLY PAYMENT:

Customer's total annual consumption will be estimated and a uniform bill will be rendered monthly for twelve months for one-twelfth of the estimated annual bill. Billing for the second twelve months will be based on the actual usage of the first year and shall be the amount necessary to produce an approximately zero balance at the end of the second year. Subsequent years shall be based on the immediately preceding twelve months.

- 49 -

Municipal Street Lighting, Schedule "D-l"
(Effective with meter readings made on and
after November 1, 1962. Revised to include
7,000 and 20,000 Lumen Mercury Vapor Lamps
rather than 10,000 Incandescent, March 1, 1962)

APPLICABILITY:

Applicable, only under long term contract (five years or more), to municipal street lighting service by means of incandescent or mercury vapor lamps installed in (a) overhead fixtures supported by poles of the Company's existing distribution system (OH), or (b) whiteway standards or ornamental brackets (WW), conforming to standard specifi cations and mutually satisfactory to both the customer and the Company. Lamps may be supplied from either series or multiple systems at the option of the Company. Service includes maintenance, lamp renewals and energy; except, where the system is owned, operated and maintained by the customer, service includes energy only.

RATES: (per lamp per month)

All night service (4000 hours per year)

Lamp Size

Standard Installation Company owned, operated and
maintained OH W

Customer Owned W

Company Operated
and Maintained

Customer Operated
and Maintained

Deduct for Half Night
Service (2000 Hrs. per year)

Add
for 2k -hour
Service
(8760 Hrs.
per year)

2500 Lumen

Incandes

cent

$1.5 0 $2.00

$1.0 0

$ 0 .7 5

$0.25

$ 0 .7 5

6000 Lumen

Incandes

cent

2.50 3 .OO

I.75

1.25

0.50

1.25

7000 Lumen

Mercury

Vapor

3.OO 3.5O

2.00

1.0 0

0.30

I.25

20000 Lumen

Mercury Vapor

4.50 5.OO

3.00

1.75

0.50

I .7 5

(l) The words "operated and maintained," as used in this schedule, are defined to mean the replacement of bulbs and glassware, and the cleaning of glassware at such intervals as shall keep *che system presentable and efficient. The responsibility for replacement of worn out or damaged parts, other than bulbs and glassware, shall rest with the owner of the whiteway system.

- 50 -

' . <jjU

K &&&

SSlSx

'
.
0<

. yjjpX

ni f) '

(2) Rates shown for Company owned whiteways are applicable only to existing installations, or to new installations fed by an overhead system. The Company will not install and own any new whiteways fed by an underground system.

(3) The term "Customer Owned WW" implies complete ownership by the Customer of all whiteway facilities (including standards, fixtures, and circuits) up to point of connection to the Company's supply lines.

APPLICABILITY:

Security Lighting Service
Schedule "D-3"
(Effective with bills rendered
for the month of January 1962.)

Applicable, only under long-term contract (five years or more), to security lighting of customer property by means of mercury vapor luminaires supported by short brackets mounted on (a) wood poles of the Company's existing distribution system or extensions from this system or (b) poles owned by the customer, conforming to standard specifications and mutually satisfactory to both the customer and the Company. In all cases the mercury vapor luminaire, bracket and control equipment shall be installed, owned and maintained by the Company. Where the use of poles other than wood is desired by the customer, he shall install, own and maintain such poles and the Company shall install, own and maintain the overhead conductors, the brackets and the lighting equipment. Where the use of underground conductors is desired by the customer, he shall install, own and maintain the underground conductors and the risers up the poles. Security lighting service will be provided only at locations which are accessible to Company trucks for servicing purposes.
RATES: (per lamp per month)

MERCURY VAPOR LUMINAIRE

Lamp Size 7,000 Lumen 7>000 Lumen 20,000 Lumen

Description Open or Enclosed (a) Enclosed (b) Enclosed (b)

ALL NIGHT SERVICE Lighting Installation
Company-Owned and Maintained $Y . 00 4.25 6.75

(a) Standard open mercury vapor fixture, or, at the option of the Company, converted enclosed incandescent fixture.

(b) Standard enclosed mercury vapor fixture.

m Where it is necessary for the Company to install additional wood
poles in order to provide security lighting service, a monthly charge
of $1.0 0 shall be made for each such pole.

2. The word "maintain," as it applies to security lights, is defined to mean the replacement of lamps and glassware as required at regular

- 51 -

intervals or as soon as can reasonably be done after notification of the Company by the customer that service has been interrupted. How ever, the customer shall reimburse the Company for the cost of any such maintenance work which is required because of vandalism.
According to reports available to this Commission, the year 1962 was a good one for Georgia Power Company. It appears that business
activity in the State was considerably improved over the year 196I; and
this, along with satisfactory weather conditions and more vigorous sales promotion by Company employees, enabled Georgia Power Company to make very substantial increases in electric energy sales to all classifications of customers. The Company's own confidence that Georgia will make even greater economic advances in the years ahead is evidenced by its record
high construction budget of $88,000,000 approved by the Company's Board of Directors for 1963* and estimates of similar large expenditures for I9cb and 1965.

The following statistics set forth certain pertinent facts
with regard to Georgia Power Company's operation during the year 1962,
and during the year 19 6 1.

1962

Electric Sales in KWH

13 ,253,182,000

Residential

3,056,435,000

Commercial

2,547,344,000

Industrial

4,910,380,000

Other

2 ,739,023,000

Customers Served (end of yr. )

757,033

Operating Revenues

$174,427,388

Operating Expenses Wet Income

$140,253,743 24,459,823

Avg. Residential Use (KWH)

4,687

Avg. Residential Price (Cents)

1.8 8

Per Cent

1961

Increase

11,984,219,000
2,734,215,000
2 ,226,906,000 4,353,385,000 2 ,669,713,000
734,550

10 .6 11.8
l4.4
1 2 .8 2.6
3.1

$160,462,645 8 .7 $129,782,525 8 .1
20,801,120 17 .6

4,324 8.4

1.92 *(2 .1 )

*( ) Denotes decrease

In addition to the above statistical information, Georgia Power
Company shows to this Commission that its gross plant investment in 1962 amounted to $756,640,593, while in 1961 it was $693,604,591, an increase
of $63,036,002. The Company further shows to this Commission that as at
December 31, 1962, it was serving at retail 637 cities and towns; at wholesale to 5 municipalities as well as at wholesale to 39 PSA co-opera tives. ^ Further, the Company's system peak load in 1962, was 2,884,800 KW,
while in 19ol, the peak was 2,673,200 KW. This is an increase in demand
of 211,600 KW or some 7

Savannah Electric and Power Company
In August 1962, this Company filed an application with the Commission in which authority was requested to amend its Pules and Regu lations to provide for "Special Promotional Allowances" to be paid to owners of residences or apartments who qualify by providing adequate electrical wiring for "all-electric" residences and apartments pursuant to the following schedule:
- 52 -

SPECIAL PROMOTIONAL ALLOWANCES

Home
Rate A --6

Apartment
Rate A -6

Gold Medallion (Total-Electric Home)

$200.00

$100.00

All-Electric (Not Gold Medallion) Heating, Cooking, Water Heating, Lighting and Refrigeration

160.00

75.00

Electrically Heated

100.00

50.00

Electric Cooking and Water Heating Combined Installation

40.00

40.00

Range only

15 .0 0

15 .0 0

Water Heater only

15 .0 0

15 .0 0

Dryer only

15 .0 0

15 .0 0

In addition, the Company proposed to make a 25 per cent news
paper, radio and/or television advertising allowance to builders of homes built for resale where a built-in electric range and water heater would
be installed and advertised as featuring flameless electric cooking and water heating with no reference to any other fuel.

After careful consideration of this matter, the Commission concluded that the provision of the plan applicable to the payment allowances for newspapers, radio and/or television advertising would result in excessive and unreasonable sums for advertising. Therefore, this particular provision of the plan was denied by the Commission; how ever, the remaining provisions of the plan hereinabove described as Special Promotional Allowances," were approved.

Business activity and the growth of Savannah, Georgia continued
to improve in the year 1962, and in connection therewith, Savannah
Electric and Power Company shows to this Commission that as at December
31, 1962, it served the power requirements of 64,890 customers. The
Company generates and distributes electric energy in all of Chatham
County, including the City of Savannah, most of Effingham County, and
portions of Bryan, Bulloch and Screven Counties; an area of approximately 2,000 square miles in southeast Georgia.

The population in this area slightly exceeds 200,000 persons and about ninety percent of the Company's business is in metropolitan Savannah.

Savannah Electric's operating revenues in 1962 amounted to $13>637,300; representing an increase of $1 ,037,200 or 8.2$ over those obtained in 19 6 1. Net income amounted to $1,966,700 which was $187,700
below the prior year. This underrun was due mainly to the credit for
interest charged to construction which amounted to only $19,700 in 1962,
as compared with $301,800 in the previous year. Excluding this credit in
both years, net income increased in 1962 by $94,400 to a total of $1,947,000.
- 53 -

Kilowatt Hours sold showed gains in all classifications and
totalled 783,883,000 KWH in 1962] a gain of 11,636 over 19 6 1.
The company gained 850 customers during the year 1962 as com-
pared with an increase of 635 for the preceding year. Residential cus tomers used an average of 4,690 KWH during the year 1962, which repre
sents an increase of 6.3$ over the preceding year. This increase is approximately 11# above the 1962 national average. Average annual revenue from residential customers was $103.50] a 4.3# gain over I96I] while the
average unit rate decreased from 2.250 per KWH to 2.210 per KWH.
Company construction expenditures amounted to $2,131,700, funds for which were generated through cash from operations and short-term bank loans. No permanent financing was required.
It appears that during 1962, there were numerous developments
in Savannah that reflected brisk economic activity. Same of these developments were:
Southern Nitrogen Company, Savannah's largest industrial con
sumer, placed in operation an additional 6,000 kilowatts of new process equipment and announced a $1 ,250,000 expansion program to begin in 1963.
Union Carbide Corporation, one of the country's top 25 industrial
firms, has purchased a 1500 acre tract near Port Wentworth on the Savannah River. No immediate plans have been announced for the use of this prime site.
Site preparation began on a $5,000,000 shopping center. When
completed, the 50-acre development will contain 360,000 square feet of merchandising space and is expected to employ approximately 800 persons.
The Georgia Ports Authority has approximately $3,500,000 of construction under way at its Ocean Terminals after coupleting a multimillion dollar expansion of its Garden City Terminals.
Memorial Hospital of Chatham County has a $1,200,000 psychiatric wing under way and the Chatham County Board of Education is nearing com pletion of a $10,000,000 school building program. Projected construction
in the immediate future is estimated at an additional $2 ,765,000.
The Company has announced a five-year construction program of
its own which totals $31,000,000. The first phase begins in 1963 when
construction will start on a new general office building and a third generating unit at the Port Wentworth Power Plant.
-& -

GAS UTILITIES
General
For the first time in several years, there were no wholesale gas rate increase applications filed with the Federal Power Commission "by the three interstate pipeline companies which would cause the various distributors to file applications with this Commission for increased rates on their retail customers. Rate reductions were made effective as ordered by the Federal Power Commission on the wholesale rates charged distributors by the Transcontinental Pipeline Company serving Atlanta Gas Light Company, United Cities Gas Company (Georgia Division), Mid-Georgia Gas Company and 23 municipally owned systems. The South Georgia Gas Company was also ordered to reduce its wholesale rates by the Federal Power Commission for Atlanta Gas Light Company (Valdosta)
and for 19 municipally owned systems.
It was expected that the Federal Power Commission would issue
an opinion and order in Dockets G-20509 and RP6O-I5 of Southern Natural
Gas Company before the end of the year, but since none was reached, the Public Service Commission and all wholesale customers anticipate a decision in early 19&3* These wholesale rate reductions of the pipeline companies, when made effective, will reduce materially one of the distributor *s largest expenses, namely, the cost of purchased gas. It follows then that rates charged customers by the distributors can be reduced, if the distributors passed the increases on to their customers, and appropriate refunds made on an equitable basis.
As noted in our 89th Annual Report, the Federal Power Commission had some 4,000 pipeline and producer cases pending at the close of 19 6 1.
Because of the reorganization of the technical staff resulting in a Bureau of Natural Gas with more personnel, Statements of General Policies in regulatory matters and participants in rate cases settling on a basis deemed reasonable before issuance of a decision, the back log of cases pending was materially reduced. One of the important aspects obtained in the settlement of producer and pipeline cases was a declara tion of a moratorium of future increases for periods up to 24 months, thus bringing some much needed stability to prices which had been spiraling upward for several years. Federal Power Commission hearings
in Area Rate Proceedings (AR 6l-l) in which it is proposed to establish
realistic price ceilings on natural gas sold from each Of the nation's
major producing areas commenced early in 1962, but because of the large
number of interested parties and the complex matters involved, hearings could not be concluded. Considerable progress was made at the prehearing conferences by the interested parties in another large Area Rate Proceeding (AR 6l-2) during the year which indicates this important
case can probably be docketed in 1963 The Public Service Commission
and many other state regulatory agencies have intervened for the purpose of obtaining a lower field price of natural gas which means ultimately a lower rate to the consumer. Most of the natural gas consumed in Georgia by industry and homes must be transmitted by pipeline companies from distant fields in the Texas and Louisiana producing areas before entering the distributing mains of the Georgia distributors. The average domestic consumer, once investing in costly appliances for cooking, water heating, space heating, refrigeration, air conditioning, dryers and many other pieces of equipment must of necessity continue the use of natural gas for that consumer cannot economically switch to another fuel nor can he change over to another gas company should the rates be more advantageous.
- 55 *

Therefore, the Federal Power Commission and state regulatory agencies have a vital role in maintaining the price of natural gas at a level commensurate with the financial security of a utility and at the same time assure the consumer of a dependable and adequate gas supply.
ATLANTA GAS LIGHT COMPANY
The Atlanta Gas Light Company is the oldest and largest gas distributing utility in Georgia and during the fiscal year ended
September 30, 1962 was serving a total of 397,777 customers representing
an increase of 17,707 over the previous year. Construction expenditures
amounted to $6,951,563 and most of this was used in extending mains and
connecting new customers with the balance being used for general improve ment of the Company's system together with necessary new equipment.

During the year Atlanta Gas Light installed its first natural gas turbine at the Burns Brick Company in Macon. This gas turbine powers a generator, producing electricity and the exhaust heat is captured for such uses as water heating, space heating, and generating steam for absorption type air conditioners.

In order to balance its heavy winter load, Atlanta Gas Light is promoting the sale of gas air conditioners. In the small tonnage field such as homes and stores the Company sells, installs and services the equipment. But in the large tonnage field such as hospitals, large office buildings, apartment houses and industrial plants, the Company works closely with customers, architects and engineers providing assistance and guidance in the selection and installation of the proper equipment. As a result of Atlanta Gas Light's emphasis on sales during
the past year, the sale of water heaters increased 17$, ranges 78$ and
air-conditioning units l4l$.

The following comparative statements show the amount of gas
plant in service at September 30, 1961 and 1962 and the results of
operation for the years ended on those dates.

Atlanta Gas Light Company Comparative Statement of
Gas Plant in Service
At September 30, 1962 and 1961

Tangible Plant, at Original Cost Less - Accumulated Provision for Depreciation Utility Plant - Net

1962

1961

$115,093,379 $108,689,413

18 ,1,88,528 16,708,7^1
$ 96,605,351 $ 91,980,672

Per Cent Increase
or (Decrease)
$6, 4o4, 466
1,779,787
$4,62A, 679

Average Number of Customers
For the Years Ended
September 30, 3.962 and 1961

Class of Customer: Residential Commercial Industrial Public Authorities Totals

- 56 -

1962
360,303 30,039 2,907 53
393,302

1961

Increase or
(Decrease)

346,029 29,389
2,804 hj
mm

14,274
650
103 6
15,033

rocc ! aXd'ifcd

:;o ,,tesi T' * I 0(Ht> `yj*

$ . ..: :.; & SS
;.

MJi
-ur-j

> Cf

. :"
.
. 0 di'
fulvi yyrs*fl a

^teics 'l'iaai
i
.
i'i0 B `S& %0Kl

v i q) j ' f l .'J:> , t J
.

ni ' Vl
.
ditaXc?'$

.-xfcs

`
.
CfciSv-

* q J.

i( f asifenX

ATLANTA GAS LIGHT COMPANY Comparative Statement of Income
for the Years Ended
September 30 1962 and 1961

Operating Revenues
Operating Expenses; Operation: Natural gas purchased Production Other Maintenance Depreciation Taxes: Other than income Income Deferred Federal income v
Total operating expenses
Operating Income
Other Income (Loss) - net
Total
Interest Charges and Other Income Deductions: Interest on long-term debt Other interest Other income deductions
Total
Net Income

1962

1961

lacrease or
(Decrease)

$67,909,709 $67,20 2,28 1 $ 707,1*28

^2 ,7 17 ,3^1 1 ,10 7,11(2
9,563,25^
1,635*51 2,187,000

ki,87k, 275 5 5 2 ,18 3
9,15 6 ,7 6 0
2 ,127,639 2 ,038,000

81*3,066
55k,959
1+06,1+91+ * 92,188) * 9,000

1,81*, 935 2,3^3,527
1 ,0 11* 0 3
62, >+10,053

1 ,710,657

13 k, 278

3,688,1(89 (1 ,31*, 962)

W

536,9k8

6 1,622,^58

787,595

5*99,656 5,579,823

(80,167)

* 7 ,809)

25,5k3

(73,352)

5*51,81(7

5,605,366

(153,519)

1,799,99k 1,675,521

23k , 598

167,1$07

18 * k 6 _ . 37,229

12k*73 67,191 (18,783)

2,053,038 1,880,157

17 2 ,8 8 1

$ 3,398,809 $ 3 ,725,209 $ (326 * 00)

- 57 -

REFUNDS
The following schedule shows the amount of refunds due customers of Atlanta Gas Light Company as at December 31, 1962.

Atlanta Gas Light Company Status of Refunds
December 31, 1962
Pipeline Company Making Refund: Southern Natural Gas Company Transcontinental Gas Pipeline Corporation
Total
Refunds to Customers (industrial) Amounts Retained by Reason of Not Passing on
Increased Cost of Gas to Customers Legal Fees and Expenses Total
Balance Subject to Refund December 31, 1962

$648,445*50 268,323.77
fer6V769.27
$265,073.88
$156,^38.35 2 1 ,6l4.00
$443,126.23

Atlanta Gas Light Company Valdosta Division Status of Refunds
December 31.? 1962
South Georgia Natural Gas Company Refunds to Industrial Customers Amounts Retained by Reason of Not Passing on
Increased Cost of Gas to Customers Total
Balance Subject to Refund December 31, 1962

$103,292.75 85,108.79
3,356.52 $"88,465.31
$ 14,827.44

Since the amount of refund due residential and commercial customers is small in amount, the Commission permitted the Company to hold the above balance in escrow subject to refund until the
FPC renders a final decision under Dockets G-20509 and RP6O-I5 .
The FPC decision on these dockets is expected during the early part
of 1963 At that time refunds due Atlanta Gas Light Company under
said Dockets will be added to the above balance, subject to refund and refunded to the Company's customers as this Commission shall direct.
- 58-

fil; ' TfiX

&t$OB

31-0' ,: :

: \cf hvntktfeft I w t m te i'O ori- bb lo jccO fca^rcoal
Sjsdii' Ib T
G.b i:vili )Jir:

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,. . ' 3 ijJti


,
f<Xf

SECURITIES
On July 12, 1962, the Commission approved the application of
Atlanta Gas Light Company to issue and sell Debentures in the principal amount of $7*500,000 due August 1, 1982, said Debentures to be sold at competitive bidding at a price not less than the principal amount plus accrued interest to the date of delivery and bearing interest at such a rate as would result in the lowest annual cost of money to the Company. The Debentures were subsequently sold to bidders through Stone and Webster bearing an interest rate of 4 3
According to its application, Atlanta Gas Light Company proposes to use the proceeds from the sale of its Debentures to repay short-term bank loans which were used for construction purposes with the balance to be used for additional construction and other general corporate purposes.
CERTIFICATES OF PUBLIC CONVENIENCE Al DECESSITI
By application dated September 1^, 1962, the City of Adairs-
ville sought authority for a Pipeline Certificate of Public Convenience and Necessity for the construction of natural gas facilities from Southern Natural Gas Company*s delivery point in Floyd County in order that natural gas service might be made available to the citizens of Bartow County in Adairsville. The Company intervened in the matter since the pipeline would pass through an area already certificated in Floyd County. Prior to the hearing on October 31* 1962, representatives of the City of Adairsville and the Company reached an agreement whereby no applicants would be served by the City of Adairsville in areas where service could be established from the Company's facilities. At the hearing testimony was given that the project was economically feasible and in the public interest. However, it developed that a portion of the pipeline certificated would also pass through territory in Floyd County already certificated to the City of Dalton. Subsequent to the hearing, a conference was held between officials concerned and a representative of the Commission staff wherein the matter was resolved satisfactorily by the allocation of a 1,000 foot corridor through that portion of Floyd County already certificated to the City of Dalton. In view of the objections being satisfied by the interested parties, the
Commission issued its order on November 8, 1962 granting the City of
Adairsville a certificate for the construction of a pipeline from
Southern Natural Gas Company*3 facilities in Floyd County so that
natural gas service could be made available to the citizens in Adairsville.
It was reported in 1961 that the Company was issued a
Certificate of Public Convenience and Necessity for the construction of a natural gas pipeline and distribution system in Southeast Georgia that would connect with the Southern Natural Gas Company's facilities near Port Wentworth in Chatham County thus providing natural gas service to the cities of Blackshear, Brunswick, Hinesville, Midway, Patterson, Richmond Hill, Screven and Waycross. Subsequent to the issuance of this certificate, it developed that the certificate issued the Georgia Coastal Natural Gas Corporation had expired and the interest for natural gas service in the entire Southeast Georgia area was revived, which caused the Atlanta Gas Light Company on August 29* 1962 to file an application
for an amendment to distribution certificate $85 Which would change the
routing and design of the project to provide natural gas service to a larger area and the following cities would be included:
- 59 -



t It . -

U'ou .r..Llsql'C

- '. t x ia f f

' .'.s ,

. :

- . . :'qr '-.y -
"V *tr.5 ,*
t ffi.;.,.

:

- - -rti-- -

;

,

.9rf

Alley Alamo Alma Baxley Blackshear Brunswick Chester Danville Darien Dexter Dublin Dudley

Eastman Glennville Glenwood Hazelhurst Helena Hinesville Jeffersonville Je sup Ludowici Lumber City Lyons McRae

Milan Montrose Mount Vernon Odum Patterson Reidsville Rentz Screven Soperton Swainsboro Vidalia Waycross

It was brought out at the hearing that Southern Natural Gas
Company had filed an application on July 26, 1962 with the Federal
Power Commission for authority to build the natural gas transmission line in a southeasterly direction from its Ocmulgee Compressor Station near Macon, Georgia, to a point near Brunswick. The plan would afford a better and more economical service to the territory involved. According to the application as amended, the natural gas distribution
system would be approximately 283 miles in length and would cover 20
counties in Southeast Georgia, which area had been trying for several years to obtain natural gas. At the hearing the Company submitted a number of exhibits showing the feasibility of the project, the adequacy of gas supplied and its financial ability to build the system proposed. After careful consideration of the Company's application the amended
certificate -$85 was issued on November 2, 1962. It is contemplated
that hearings would commence before the Federal Power Commission on Southern Natural Gas Company's application for authority to construct
a transmission line in Southeast Georgia in early 1963 so that natural
gas could be made available to the Southeast Georgia area possibly in
the latter part of 1963.
In other certificate matters, the Company made application for amended certificates and same were approved so that new areas could be served in the following counties:
Carroll County - Certificate No. 12 Dekalb and Gwinnett Counties - Certificate No. 22
Natural gas service was established during the year for the cities of Canton, Franklin, Holly Springs, Hull, Roopville and Woodstock pursuant to certificates previously issued.

- 60 -

RATES

On June 29, 1962, Atlanta Gas Light Company filed a second revised rate schedule for its SGN Ik residential gas service to
become effective January 1, 1962.
This rate schedule is due to the Federal Power Commission rendering a decision in connection with the Company's natural gas supplier, which resulted in a reduction in the cost of natural gas to the Valdosta Division of Atlanta Gas Light Company. This Commission had previously permitted the Company to increase the cost of natural gas to its customers with the provision that should its supplier reduce the cost of gas to the Company, that reduction in cost of gas would be passed on to the Company's customers.

This revised rate applies to that portion of Lowndes County certificated to the Company and is available to any regular natural gas customer using gas for residential purposes in that territory.

Therms

Net

For the first 1.0 or less used per month

For the For the For the For the

next 11.0

used per

next 35*0

used per

next 50.0

used per

next 100.0 used per month

month month month

I .50
`Per Therm 12.000 10.000 9-000 8.500

Provided that no bills calculated at the above rate shall average less than 10.00 cents per therm. The minimum monthly bill shall be $1.50. A summer air-conditioning rate will prevail during the period beginning May 1 through September 30 for gas used in
excess of 50.0 therms per month and be billed at 8.00 per therm, pro
vided that natural gas is for space heating at the same premises. The Company's supplier has given consent to such sale in accordance with the provisions of supplier's Seasonal Service Rate Schedule AC-1.

On June 29, 1962, the Company filed a second revised rate schedule for its SGN 15 general gas service customers for the same reasons as disclosed by the SGN 1^ revised rate schedule. This SGN rate is available for all regular natural gas customers using gas for commercial or industrial purposes in the Company's certificated territory
in Lowndes County and will become effective July 1, 1962.

Therms

For the first k.O or less used per month

For the For the For the For the

next 11.0 used per month

next 285.0

used per

next 300.0

used per

next 600.0

used per

month month month

Net
I .50
Per Therm
l6 .000
13.000 8.000 7-000

The above schedule is subject to the provision that no bill
shall average less than 10.00 cents per therm and that the minimum bill shall be I.50. Summer air-conditioning rates for commercial or industrial
are the same as shown under SGN 14 rate schedule.
- 6l -

GAS LIGHT COMPANY OP COLUMBUS
On October 29, 1962, Gas Light Company of Columbus filed an application with the Commission requesting authority to increase natural gas rates for residential, commercial and industrial service. This appli cation was assigned for public hearing before the Commission beginning at
10 A.M. on November 28, 1962, at which time it was heard.
A witness for the Company contended that its present rate sche dules do not provide revenues adequate to offset increases in the cost of rendering service nor adequate to keep the Company in a financial position deemed necessary for its continued growth. It is represented that the rates will provide the Company with additional gross revenues of some $265,100 and that such revenues are required in the circumstances. It appears that under the rates proposed, the average increase to residential
customers will be less than fifty cents (50$) per month, while slight
increases in rates for commercial and industrial users would also be affected. The Company set forth that a material effect on its financial position had also been caused by annual general wage and salary increases and increase in the cost of materials and supplies, as well as increase in the cost of equipment and outside service and that these conditions are likely to continue. After careful consideration of the evidence, the Com
mission issued an order on December 13, 1962, granting the Company author
ity to increase its rates to be effective with meter readings on and after
January 1, 1963 The following schedules show the effect of the rate
increases for the various classes of customers served by the Company:

SCHEDULE A-l: GENERAL SERVICE - RESIDENTIAL

RATE: Billing months October to May, inclusive: Gross

Net

First 1*00 cu. ft. or less per Mo. @ Next 2,600 cu. ft. used per Mo. @ Next 17,000 cu. ft. used per Mo. @ Over 20,000 cu. ft. used per Mo. @

$ 1.5C
12.27$
8 .71*$
6.29$

$ 1.50 u . 77^ per CCF
8 .2 h$ per CCF
6.09$ per CCF

Billing months June to Sept., inclusive:
First 1*00 cu. ft. or less per Mo. @ Next 2,600 cu. ft. used per Mo. @ Next 5,000 cu. ft. used per Mo. @ Over 8,000 cu. ft. used per Mo. @

Gross

Net

$ I .50
12.27$
8 .7!*$ l*.1*6$

$ 1.50
n . 77^ per CCF 8 .2$ per CCF 1*.2 6$ per CCF

MINIMUM BILL: Per meter per month -

Gross
$ 1.50

Net
$ 1.50

- 62 -

SCHEDULE A-2: GENERAL SERVICE - COMERCIAL

RATE:
First l+OO cu. ft. or less per Mo. Next 2,600 cu. ft. used per Mo. @ Next 17,000 cu. ft. used per Mo. @ Over 20,000 cu. ft. used per Mo. <

Gross

Net

$ I .50
12.27$* 8.7*+$* 6.29$*

$ I .50
H.77 8.2^ 6.090

per CCF Per CCF per CCF

MINIMUM BILL: Per meter per month -

Gross
$ I .50

Net
$ I .50

SCHEDULE B INDUSTRIAL SERVICE

RATE: Demand Charge:

Per 100 cu. ft. of maximum hourly

rate of use per month -

Plus

Commodity Charge:

Next

Next

JLy vJVJVy

VU 1

Over 2,000,000 cu.

month @ month @ month @ month % month @

Gross
$ I .96

Net
$ I .96

11.67$*
6 .67$* h .67$*
h.l7$*
3-67$*

H . 57^ per CCF 6 .579 per CCF U.5 7 4per CCF
b.ofy per CCF
3 .574S per CCF

GAS LIGHT COMPANY OF COLUMBUS Status of Refunds - December 31, 19^2

Refundable amount held in escrow January 1, 1962 Refunds received during 1962
Total

$ 2 ,358.06
kk,0k6.62

Amounts refunded to industrial customers during 1962
Amount retained by Company applicable to gas used by Company and to line loss
Balance subject to refund December 31, 1962

$17^36.97 1,978.08

19^15-05

The foregoing schedule shows the amount of refunds due residential and general service customers of Gas Light Company of Columbus at December 31*
1962* Since the amount of refunds due each customer is of such a small
amount, it would be impractical to refund at this time The Commission ordered the Company to hold in escrow the above funds until the Federal Power Commission has rendered a final decision in cases now pending and
which a decision is expected early in 1963

- 63 -

'' g 3 ; a.).t?l^
.

GAS LIGHT COMPANY OF COLUMBUS Comparative Statement of Gas Plant in Service
At August 31; 19&2 and 1961

Tangible Plant, at Original Cost Less - Accumulated Provision for Depreciation
Plant Acquisition CostAmortized at an Annual Rate of $39,085
Net Plant in Service

1962

1961

Increase or
(Decrease'

|8,459,l69 $8,122,576 $336,593

1,737,276 1 ,555,914 18 1,36 2 $6,721,893 $6,566,662 $15 5 ,2 3 1

428,153

467,239

$7,150 ,0 k-6 $7,033,901

39,086 $116 ,145

Average Number of Customers
At August 31, 1982 and 1961

Class of Customer: Residential General Service and Industrial Totals

1962

1961

Increase or
(Decrease)

W597

33,195 1,^ 0 2

2,980_______ 2,938_______ kz

37,577

3o,133

l,4tt

The Company reports that its fiscal year ending August 3-1,
1962 came very close to being a normal year. The weather during the
heating season varied only slightly from the average for the past
15 years. Using the yardstick of heating degree days as a weather
measurement, 1962 was 2$ warmer than the average of the last 15 years. By this measurement, 1961 was about 5$ colder than the average. The
following comparison of sales and revenues for the two years shows
the effect of this variation.

- 6k- -

rMTTO'M'TT O

GAS LIGHT COMPANY OF COLUMBUS
Comparative Statement of Income
For the Years Ended August 31, 1962 and 1961

Operating Revenues: Residential Commercial Industrial
Other Operating Revenues Total Operating Revenues

Operating Expenses: Operation Natural Gas Purchased Other Operation

Maintenance Provision for Depreciation Amortization of Acquisition Adjustment General Taxes Federal Income Tax State Income Tax Deferred Income Taxes
Total Operating Expenses Operating Income Interest Income, Less Related Income Taxes: Total Income Miscellaneous Income Deductions: Income Before Interest Charges

Interest Charges: Interest on Long-Term Debt Amortization of Debt Expense Other Interest Charges Total Interest Charges Net Income

- 65 -

1962
$2 ,9*11,260 *$9 1,^ 7 8
1 ,793,6*1-1
$5,226,379 98,701
$5,325,060

1961
$2,9i(9,83l( *(97,578
l,7 *d(,858
$5,192,270 96,036
$5 ,268,306

$3,171,1M
816,551
$3,987,995
13 9 ,tel 229,070
39,085
201,1(32
235,075 19,325
36,200 $1*,8 5 7 ,603
$ ^7,W
5 ,008
1(1(1,1(85
6,075 1(35,1(10

$3,15*(,096
685,259
$3,839,355 i*a,oo9
219,060 39,085
19 5 ,^ 9 1 301,000 2 *!-,100
36,800
$K,795,900
$ 1(92,1(06
2,883
*(95,239 5,305
*(89,93*(

$ 179,32>(
6,553
10 ,^ 7 0 196,3^7 $ 239,063

$ 173,361
5,792
______11,*(15
190,568
$ 299,366

Increase or
(Decrease)
$( 8,57*0 ( 6,100)
1(8,783 $ 3*(,109
2,665
$ 36,775
$ 17,3*(8 131,292
$148',6*io
( 1 ,588) 10 ,0 10
-0-
5,91(1 (65,925) ( *(,775)
( 600)
$ 91,703 $"(5*t,929)
1,175 (53,75*0
770 (52,985T
$ 5,963 76l
( 9*(5) 5,779
$(60,3031

Even though the number of residential and commercial customers
served during 1962 was kap greater than the previous year, both sales
and. revenues were lower because of the warmer weather. Industrial sales and revenues which are not significantly affected by weather,
showed small increases primarily as a result of improved business activity.

Total operating expenses were about 2$> higher than last year. Natural gas purchased, payroll and employee benefits and propane
gas for pealc shaving accounted for 8l$ of the total operating expense for 1962.
Gas Light Company of Columbus's new construction during 1962 consisted mainly of facilities to serve 1,6 38 new customers added to
its lines. Because of customer growth, some expenditures are also necessary each year to insure that delivery capacity will be adequate during all periods of peak demand. Besides these major requirements, other expenditures during the year were for routine replacements of worn out facilities and for new equipment necessary to handle the
increasing work load. Amounts expended for these purposes during 1962
were as follows:

Mains, services, meters and regulators to serve new customers - average cost per customer $162.24

$265,750

Additions and improvements to increase delivery capacity

45,074

Routine replacements and improvements of distribution facilities

46,636

Additions to automotive and work equipment and other general plant, including replacements

23,311

Total

$380,771

The Company reports expenditures budgeted for the fiscal
year ending August 31,1963 in the amount of $378,000. This budget included amounts required to serve an estimated 1300 new customers
and to cover other property additions and improvements needed to take care of customer growth.
In December, 19 6 1, Gas Light Company of Columbus sold an
additional $250,000.00 of First Mortgage Bonds to the Northwestern Mutual Life Insurance Company. This sale was the remainder of the
p Series of I98O which was negotiated in i960. Other amounts required
for construction and other corporate purposes were provided from funds on hand at the beginning of the year and from business operations.

66 -

moesmmmm

MID-GEORGIA NATURAL GAS COMPANY
On April 12, 1962, Mid-Georgia Natural Gas Company filed an
application with the Commission requesting authority to issue and sell privately to the Lincoln National Life Insurance Company, Fort Wayne, Indiana, $500,000 principal amount, 5 3/W> 15 year First Mortgage Sinking Fund Bonds. This matter w,as assigned for hearing on April 25,
1962, at which time it was heard.

According to the evidence and the testimony, proceeds from the sale of the proposed First Mortgage Bond, together with some $1-6,200 of retained earnings will he expended for the following purposes.

Normal Exchange and Modification to Existing Systems Extension of Existing Systems into New Areas Highway Relocation of Facilities
Total

$187,500 318/200 1-0,500
$5^-6,200

After careful consideration of the evidence, the Commission
on May 21, 1962, authorized Mid-Georgia to issue and sell $500,000
principal amount of First Mortgage Bonds to he used for the purposes as
set forth above.

Mid-Georgia Natural Gas Company, on April 3, 1962, filed an application with the Commission for an amendment to its Certificate of Public Convenience and Necessity for authority to extend its facilities into a portion of Madison County to serve the City of Ila. The appli cation was assigned for hearing before the Commission on April 25, 1962, and it was heard on this date.

Mid-Georgia requested in its application all that territory uncertificated in Madison County, but in order to best serve the interest of the public, it is felt that the additional area granted in this amendment should be limited to the general service of the distri bution facilities, which will actually be constructed at this time. After careful consideration of this application, it was the opinion of the Commission that this amendment to the original application issued to Mid-Georgia Gas Company was in the public interest and should be
granted as requested. Therefore, on May 21, 1962, the Commission
issued an order to the Company granting it an amendment to its Distri
bution Certificate.

The Commission in Executive Session on June 27, 1962, gave reconsideration to and approved the application in full by allowing Mid-Georgia to have all that territory presently uncertificated within the Madison County boundry line.

MID-GEORGIA NATURAL GAS COMPANY Rate Refunds from Transcontinental

Date of Refunds
March 6, 1962 Sept. 12, 1962 Nov. 13, 1962 Aug. 24, 1962 Nov. 13, 1962 Dec. l4, 1962
Total

Dockets
G-I323I

$4,l46 H
67.72 $ II7.52 2 ,029.98

$153.86

175629.50 $2,892.44 $153.86

G-l4l64 G-14242 G-14243

Total

$ 4,146.11
185.24
2,029.98
153.86

$1,306.24 $11,982.04'

Because Mid-Georgia Natural Gas Company did not pass along to its customers any increase in the cost of natural gas made by Transco after
April 16, 1961; only the amounts under dockets G-I8783, G-I323I, G-I3758,
and G-13757 as shown above are subject to refund.
Subject to the approval of the Commission, Mid-Georgia intends to
make refunds as a credit to gas bills rendered customers on February 10 , 19635 by dividing the total number of dollars by current customers for that
month. No attempt will be made to refund on a MCF basis, since the amount
of refund is $3,046 and will average less than $1.00 per customer
Mid-Georgia Natural Gas Company filed a revised tariff to become
effective on May 1, 19 6 2. This tariff concerned only the character of
service and rate and did not increase the cost of gas to customers. All rate schedules for the different classes of service as shown by the revised
tariff lowered the minimum b in per year for each such class of customer
and in all instances made this new tariff available to any customer within the various certificated areas of the Company.

- 68 -

SOUTH A H jANTIC GAS COMPANY

South Atlantic Gas Company reports that new home construction
in its area is down 20$,, hut that it has obtained service contracts in 9 7 .1 $ of all homes constructed in its natural gas area.

Gas appliance saturation in the new homes constructed^in the Company's service area during the 12 months ending Sept. 30, 19^2 shows:

For Cooking

60$

For Water Heating 70$

For Heating

97$

Georgia's first two controlled Environment Schools have just been completed in Savannah and are now an active part of the Chatham County Program. Both schools use natural gas for air conditioning, heat ing, cooking and water heating.

Southern Natural Gas Company, the Company's supplier of natural gas, has three separate rate increases on file with the Federal Power Commission. Each of these cases has been pending for sometime; the last such increase became effective August 13, i9 6 0 .

This Commission allowed the Company to increase its rates to customers under bond, subject to refund when the Federal Power Commission makes a final decision on dockets pending before it. The following schedule shows the amount of refunds due customers of South Atlantic

Gas Company.

Status of Refunds December 31, 1962
Balance January 1, 1962
Refunds Received During 1962
Total Amounts Refunded to Large Industrial Customers
During 1962 Balance Subject to Refund, December 31, 1962

$ il-,308.70
1-5,089 66 ^Y3987P>
j-,2 19 ^ 8 $1-5,178.88

The balance subject to refund as shown above represents that
portion of refunds due residential and commercial customers at December 31,
1962. The Commission granted South Atlantic Gas Company authority to
hold this balance in escrow until final determination of the dockets
pending before the Federal Power Commission. A final decision by the
Federal Power Commission is expected during the early part of 1963, at
which time refunds due the Company will be added to the above balance
and distributed to its customers as this Commission shall so direct.

As a matter of general interest, the following schedule show
ing the amount of gas plant in service and a Comparative Profit and Loss
Statement for the years ended September 30, 1962 and 1961 are presented.

Gas Plant in Service

September 30

1962

1961

Increase or
(Decrease)

Gas Utility Plant Less - Reserve for Depreciation
Net Plant

1 1 ,329,114
1,734,131 "9759479B3

10,826,076 503,038
1,520,998 213,133 9,305,078 289,905

- 69 -

nu

"03r

rfetyf


f ntemi.

5 `tt .
j-^QS3^

SOUTH ATLANTIC GAS COMPANY
Comparative Profit and Loss Statement
For the Years Ended September 30, 19^2 end 1961

1962

1961

Increase or
(Decrease)

Operating Revenues Operating Expenses:
Natural Gas Purchased Other Operations
Maintenance Depreciation

S3'-',DJ- 1>

3 ,366,677 X.280,359
$4,647,036
94,294
267,360

3,190,283 176,394

1 ,289,481 ( 9,122)

$4,1+7 9 ,7 6 4 _ $167,272

113,0 8 3 (18,789)

252,698

14,662

Amortization of Cost Due to Charge Over to Natural Gas
General Taxes Federal and State Income Taxes Deferred Income Taxes
Total Operating Expenses Operating Income

36,066

55,757

212,099
288,500

188,532
268,300

76,000

78,000

$5,621,355_ $5 ,436,134

$ 696.259 a 49,382

(19 ,691) 23,567 20,200 (2 ,000)
$185,221
$ 46,877

Other Income (Loss) Operating Loss of Rental Properties Less Related Income Taxes Other Net
Total Income Miscellaneous Income Deductions
Income Before Interest Charges

$ (3,099) $
38.612
I 35,513 $ $ 731,772 $
26,1 to :s 705,632 $

(4,889) $ 1,790

24,374

14,238

19,485 $ 16,028

668,867"' $ 62,905

29,842

(3 ,702)

639,025 $ 66,607

Interest Charges: Interest on Long-Term Debt Amortization of Debt Expense Other Interest Charges Interest Charged to Construction (Cr) Total Interest Charges
Net Income

$ 274,585 $ 4,508
54,429 (1,348)
$ 332,174 $ $"373,455" $

285,004
4,742
26,868
(1,687)
3 14 ,9 2 7 324,098

$(10 ,419 )
(234) 27,561
339 $ 17,247 $ 49,360

- TO -

UNITED CITIES GAS COMPANY Georgia Division
United Cities Gas Company filed an application with the Commission on May 7* 19^2, requesting authority to issue and sell not more than 12,000 shares and not less than 9*000 shares of its Cumulative Preferred Stock
having a par value of $100 per share, consisting of an initial series desig nated as Cumulative Preferred Stock 5 3/h, 1962 series, having an aggregate
par value of not more than $1,200,000 nor less than $900,000* This applica
tion was assigned for hearing on May 23, 1962, at which time it was heard*
The petitioner represents that of the Preferred Stock proposed for issuance, not less than 7*500 shares will he sold at par to the Lincoln National Life Insurance Company, Port Wayne, Indiana, and not less than 1,500 shares and not more than 2,000 shares will be sold at par to the Country Life Insurance Company, Bloomington, Illinois. The stock will pay a dividend rate of 5 3 / W and such dividends shall be payable quarterly March 15, June 15, September 15, December 15, of each year after issued.
According to the evidence, proceeds from the issuance and sell of
not more than 12,000 shares and not less than 9*000 shares will be applied
by the petitioner as follows:
(a) For the discharge of lawful refunding of its outstanding Cumulative Convertible Preferred Stock - not in excess
of . . . . . . ................ . . . . . . . $700,000.
(b) For the reimbursement of moneys actually expended from income or from any other moneys in its treasury not directly or indirectly secured by or obtained from the issue of stock or stock certificates of bonds, notes or other evidences of indebtedness for the acquisition of property or for the construction, extension or improvement of facilities - not
in excess of $900,000.
The Commission issued an order approving the Company*s application on June 15, 19&2 and ordered further that United Cities Gas Company file a
full and complete report of its actions and doings within 30 days after
completion of the issuance and sale of the securities authorized.
When Transco filed its new rates with the FPC in Docket RP61-13, which became effective under bond on April 17, 19&1, it caused an increase in purchased gas cost to United Cities Gas Company's Georgia Division of $23,839 for the twelve months ended December 31* I960. The Georgia Division made no adjustment in rates to its customers to cover this increased cost of purchased gas.
As of December 18, 1962, the Company has received refunds in the
amount of $16,040.18. Since the Georgia Division of United Cities Gas Com pany had no purchased gas adjustment clause in the rate schedules of the Georgia Division, no refund of the above amount will be passed on to its customers
Transco*s 0G rate schedule, under which the Georgia Division now purchases its gas supply, was decreased per MCF, effective July 1,
1962. The annual decrease, based on the amount of gas purchased from October 3 1 , 1961 to October 31, 1962 of 1,030,157 MCF, would be $5,150.79*
Again,the Company does not plan to make any refund of this amount.
- 71 -

Acworth Adairsville* Albany Aldora Almon Alpharetta Americus Ashbum Athens Atlanta Augusta Austell* Avondale Estates
Bainbridge Barnesville Bogart Bowdon Bowersville Bowman Bremen Buford*
Cairo Calhoun Camilla Canon Canton Carrollton Cartersvilie* Cedartown Centerville Chamblee Clarkston Cochran Colbert College Park Columbus Comer Commerce* Conyers Cordele Covington

LIST OF GEORGIA CITIES WITH NATURAL GAS
AS OF DECEMBER 31, 1962

Ownership of System Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Mid-Georgia Gas Company Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company

Pipeline Source of Natural Gas Southern Natural Gas Company Southern Natural Gas Company South Ga, Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co, Southern Natural Gas Company South Ga. Natural Gas Company South Ga. Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company

Municipal Atlanta Gas Light Company Mid-Georgia Gas Company Municipal Municipal (Toccoa) Municipal Atlanta Gas Light Company Municipal

South Ga. Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Transcont. Gas Pipeline Co. Transcont. Gas Pipeline Co. Southern Natural Gas Company Transcont. Gas Pipeline Co..

Municipal

South Ga. Natural Gas Company

Atlanta Gas Light Company

Southern Natural Gas Company

Municipal

South Ga. Natural Gas Company

Municipal (Toccoa)

Transcont. Gas Pipeline Co.

Atlanta Gas Light Company

Southern Natural Gas Company

Atlanta Gas Light Company

Southern Natural Gas Company

Municipal

Southern Natural Gas Company

Atlanta Gas Light Company

Southern Natural Gas Company

Municipal (Warner Robins)

Southern Natural Gas Company

Atlanta Gas Light Company

Southern Natural Gas Company

Atlanta Gas Light Company

Southern Natural Gas Company

Municipal

Southern Natural Gas Company

Mid-Georgia Gas Company

Transcont. Gas Pipeline Co.

Atlanta Gas Light Company

Southern Natural Gas Company

Gas Light Company of Columbus Southern Natural Gas Company

Mid-Georgia Gas Company

Transcont. Gas Pipeline Co.

Municipal

Transcont. Gas Pipeline Co.

Mid-Georgia Gas Company

Transcont. Gas Pipeline Co.

Municipal

South Ga. Natural Gas Company

Municipal

Transcont. Gas Pipeline Co.

- 72 -



Dacula Dallas* Dalton* Danielsville Dawson Dearing Decatur Doraville Douglasvilie Dublin* Duluth
East Point East Thomaston Eatonton* Elberton Emerson Evans
Fairburn Fayetteville Fitzgerald Forest Park Forsyth Fort Benning Fort Valley* Franklin
Gainesville Garden City Gibson Gordon Grantville Gray Grayson Griffin Guyton
Haddock Hampton Hapeville Harlem Harrison Hartford Hartley Hartwell Hawkinsvilie Hogansvilie Holly Springs Hull

Ownership of System Municipal (Buford) Municipal Municipal Mid-Georgia Gas Company Municipal Mid-Georgia Gas Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company

Pipeline Source of Natural Gas Transcont. Gas Pipeline Co* Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co* South Ga. Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company

Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company

Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Transcont* Gas Pipeline Co, Southern Natural Gas Company Southern Natural Gas Company

Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Gas Light Company of Columbui Municipal Atlanta Gas Light Company

Southern Natural Gas Company Southern Natural Gas Company South Ga* Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co*

Georgia Gas Company South Atlantic Municipal (Warrenton) Atlanta Gas Light Company Municipal Municipal (Eatonton) Municipal (Lawrencevilie) Atlanta Gas Light Company South Atlantic Gas Company

Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company

Municipal (Eatonton) Atlanta Gas Light Company Atlanta Gas Light Company Mid-Georgia Gas Company Atlanta Gas Light Company Municipal (Cochran) Municipal (Warner Robins) Municipal Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company

Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company

- 73 -

Ila
Jackson* Jefferson* Jonesboro
Kennesaw
LaFayette LaGrange Lake City Lavonia Lawrencevilie* Lilburn Lithia Springs Lithonia Loganville Louisville* Lovejoy Lumpkin
Mableton Macon Madison Manchester* Marietta Martin Martinez McDonough McIntyre Milledgeville Milien Milstead Monroe Morrow Moultrie Mountain View
Nashville Newman Norcross North Atlanta
Ocilla

Ownership of System
Mid-Georgia Gas Company
Municipal Municipal Atlanta Gas Light Company
Atlanta Gas Light Company
Municipal Municipal Atlanta Gas Light Company Municipal (Toccoa) Municipal Atlanta Gas Light Company Municipal (Austell) Mid-Georgia Gas Company Municipal ( Lawrenceviile) Municipal Atlanta Gas Light Company Municipal
Municipal (Austell) Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Municipal (Toccoa) Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Mid-Georgia Gas Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company
Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company
Municipal

Pipeline Source of Natural Gas
Transcont. Gas Pipeline Co,
Southern Natural Gas Company Transcont, Gas Pipeline Co, Southern Natural Gas Company
Southern Natural Gas Company
Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co, Transcont, Gas Pipeline Co, Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company South Ga. Natural Gas Co,
Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Transcont. Gas Pipeline Co. Southern Natural Gas Company South Ga. Natural Gas Company Southern Natural Gas Company
South Ga, Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company
South Ga. Natural Gas Co.

Palmetto Payne City Pelham Perry Pine Lake Plainesville Porterdale Port Wentworth Powder Springs
Quitman
Redan Rest Haven Richland Rincon Riverdale Roberta Rockmart Rome Rossville Roswell Royston*
Salem Sandersville Savannah Smyrna Snellville Sparta* Springfield Statesboro* Statham Stockbridge Stone Mountain Sugar Hill Summerville* Suwanee Sylvania Sylvester

Ownership of System
Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Municipal (Dalton) Mid-Georgia Gas Company South Atlantic Gas Company Municipal (Austell)
Municipal
Mid-Georgia Gas Company Municipal (Buford) Municipal South Atlantic Gas Company Atlanta Gas Light Company Municipal (Fort Valley) Atlanta Gas Light Company Atlanta Gas Light Company Chattanooga Gas Company Atlanta Gas Light Company Municipal
Mid-Georgia Gas Company Atlanta Gas Light Company South Atlantic Gas Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal South Atlantic Gas Company Municipal Mid Georgia Gas Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Municipal Municipal

Pipeline Source of Natural Gas
Southern Natural Gas Company Southern Natural Gas Company South Ga. Natural Gas Company' Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co, Southern Natural Gas Company Southern Natural Gas Company
South Ga. Natural Gas Company
Transcont, Gas Pipeline Co. Transcont. Gas Pipeline Co. South Ga. Natural Gas Company
Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company
Southern Natural Gas Company Transcont. Gas Pipeline Co.
Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company
Southern Natural Gas Company Transcont, Gas Pipeline Co* Southern Natura- Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company South Ga. Natural Gas Company

- 75 -

Talbotton Tallapoosa Taylorsville Tennille Thomaston Thomasville Thomson* Thunderbolt Tifton Toccoa* Trion
Union City
Valdosta Villa Rica
Waco Walnut Grove Warner Robins Warrenton* Watkinsville Waynesboro West Point Winder Winterville Woodland Woodstock Wrens Wrightsville

Ownership of System
Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal South Atlantic Gas Company Municipal Municipal Municipal
Atlanta Gas Light Company
Atlanta Gas Light Company Municipal
Atlanta Gas Light Company Municipal (Lawrencevilie) Municipal Municipal Atlanta Gas Light Company Municipal Municipal Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company

Pipeline Source of Natural Gas
Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company South Ga. Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company South Ga* Natural Gas Company Transcont. Gas Pipeline Co, Southern Natural Gas Company
Southern Natural Gas Company
South Ga. Natural Gas Company Southern Natural Gas Company
Southern Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Transcont. Gas Pipeline Co. Transcont. Gas Pipeline Co. Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company Southern Natural Gas Company

^Municipally owned systems thus marked serve in areas outside the county^ of which it is the county seat, in which case the Georgia Public Service Commission has jurisdiction over rates and other matters.
The Commission has no jurisdiction whatsoever over municipally owned systems where service is rendered wholly wxtnxn the county of which it xs the county seat.
Where a city is shown in parenthesis it indicates location of system I ownership

- 76 -

s *
% *

The Commission, in its order of November 2, 1962, amended the Distribution System Certificate of Public Convenience and Necessity No# 85 held by the Atlanta Gas Light Company in order that the follow ing towns and cities would receive service when the pipeline and dis tribution system is constructed:

Ai ley Alamo Allentown Alma Baxley Blackshear Brunswick Cadwell Chester Danville Darien Dexter

Dudley Eastman Glennville Glenwood Hazlehurst Helena Hinesvilie J effersonville Jesup Ludowici Lumber City Lyons

Milan Montrose Mt. Vernon Odum Patterson Re idsville Rentz Screven Soperton Swainsboro Waycross

SUMMARY OF TOWNS AND CITIES SERVED

Atlanta Gas Light Company

75

Chattanooga Gas Company

1

Georgia Gas Company

1

Gas Light Company of Columbus

2

Mid-Georgia Natural Gas Company 15

Municipally owned

88

South Atlantic Gas Company

7

Total

189

- 77 -

TELEPHONE UTILITIES

This Commission issued seventy-eight orders during 1962 which
granted telephone companies authority to increase rates, to borrow funds
from both REA. and private sources, and to issue additional securities.

The following tabulation shows the type and number of decisions rendered by the Commission:

Type of Orders

Number of Orders

Rate Matters

5

Loan and Security Matters

16

Telephone Certificates of Public

Convenience and Necessity:

Amendments

24

New Exchanges

6

Toll Lines

3

Rule Nisi

1

Acquisitions

20

Miscellaneous

3

Total

7

The following schedule shows the amount of annual revenue applied for under the rates proposed by one Independent and three REA financed telephone companies and the amount of annual revenue granted those companies under rates authorized by the Commission.

RATE MATTERS Independent Telephone Companies

Name of U tility
REA Financed

Date of Order

Docket Number

Local Service Revenues

Company

Commission

under

under

Rates

Rates

Proposed

Authorized

Cherokee Tel. Co., Inc, Progressive Rural Tel.
Co-op., Inc.
Bullock County Rural
Tel. Co-op., Inc.

Aug. 7* 1982 I7IO-U $ 53,63^

Aug. 14, 1962 I719-U

97,868

Nov. 2. 1962 I75O-U 136,37^

Total

'$87,876' '

$ 44,431
87,772
120,936 $2 5 3 ,1 3 9

Privately Financed

Walker County Tel. Co.

Aug. 7> 1582 I713-U $176,784

$16U,337

In each of the foregoing docketed matters, the applicant con tended that the rates proposed were necessary in order that revenues o f the Company would be adequate to meet increased costs of operation
occasioned by reason of the improvement o f existing f a c i l i t i e s as well as the construction of new f a c i l i t i e s .

- 78 -

LOAN AND SECURITY MATTERS

During 1962, the Commission granted 10 Independent telephone companies in Georgia, authority to borrow the aggregate principal amount
of $8,766,800 from the Rural Electrification Administration in order to
improve and expand their facilities. This will enable the aforementioned companies to provide better service for subscribers living in the rural areas of this State. Also, during the year 1962, the Commission granted several Independent companies authority to issue certain corporate securi ties, after showings by those companies that the issuance of such securities was necessary and in the public interest, as follows:

Westco Telephone Company - 171,000 shares of $5 per share par value common stock.

General Telephone Company of the Southeast - 70,000 shares of $10 per
share par value common stock and $6,000,000 principal amount of h-,8$
Sinking Fund Debentures due July 1, 1987*

Jeffersonville Telephone Company, Inc. - 200 shares of $500 per share par value common stock.

Walker County Telephone Company - Issue and sell: $1*00,000 principal amount of 5i$ per annum, Serial Bonds maturing in 25 years. Issue and Exchange:
$ 78,000 1st Mortgage Serial Bonds at ktfo, Maturing 1967 30,000 1st Mortgage Serial. Bonds at Wfo9 Maturing 1967*
200,000 1st Mortgage S e ria l Bonds a t 5 Maturing 1977*

MISCELLANEOUS RATE MATTERS

Southern Bell Telephone and Telegraph Company

April 12, 1962

Non-Docket

Revision of Intrastate Rates

"Revision of Intrastate Message Toll Rates and Method of Mileage Measurements Between Points in Georgia"

As a result of changes and refinements in separations procedures as between intrastate and interstate properties by which a portion of plant investment and certain expenses now charged to intrastate toll
operations are shifted to interstate operations, approximately $1*6,000,000
per annum in revenue requirements in the various states were transferred from intrastate to interstate by American Telephone and Telegraph Company.
The effective date of transfer was April 1, 1962. The changes made in
separations procedures resulted from discussions by The Communications Problems Committee of the National Association of Railroad and Utilities Commissioners, the Federal Communications Commission and officials of the American Telephone and Telegraph Company.

- 79 -

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.

x tf ^ a t f a i o e p o c sxx btz&o e v ira a x c -v :3; - j f o i
. ; ; 'y {3 O C 0 . .... - V f 6 TT.

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V V 'A^^V -`W V - -

............ . ...
a t ^ n Jrm t

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T

; t t B I:

GEORGIA INTRASTATE

RATE TABLE MILEAGES AMD CORRESPONDING RATES

MILEAGE
0- 8
9- 13 14- 18 19- 24 25- 30

RTE

STATION TO STATION

PAID

COLLECT

DAY, NIGHT 6 SUNDAY

PERSN TO PERSON

PAID AND COLLECT

DAY (Exc Sun)

NIGHT 6 SUNDAY

Initial Overtime

Amt, to be Added to Chgs, Computed on "Paid" Basis

Add'l Min

Add* 1 Min

3 First After 3 First After

Mins 3

3 Mins 3

3

,10-4m. ,05-2m,

.15

,15-3m. ,05-2m.

.10

,20-3m. ,07-lm

.10

.25-3m. ,08*.lm.

.05

,30-3m. ,10-- lm.

.00

.25 .08

.05 .25 .08

.05

.30 .10

.05 .30 .10

.05

,35 .12

.07 ,35 .1 2

.07

.40 .13

.08 .40 .13

.08

.45 ,15. .10 .45 15

.10

31- 42 43- 56 57- 64 65-80
81-100 101-124 125-148 149-172
173-198 199-226 227-252 253-280
281-310 311-340 341-370 371-400

Paid and Collect

Day (Exc Sun)

Night Sun

3 Add'l

3

Add* 1

Mins Min

Mins

Min

.35 .12
.40 .13 .50 .17 .55 .18

.35

.12

.40

.13

.40

.13

.40

.13

.60 .20 .65 .22
.70 .23
.75 .25

.45

.15

.50

.17

.50

.17

.50

.17

.80 .27 .85 .28 .90 .30 .95 .32

.55

.18

.60

.20

.65

.22

.70

.23

1.00 .33

1.05 .35

1.10

.37

1,15 .38

.70

.23

.75

.25

.80

.27

.85

.28

.50 .17

.12 .50 .17

.12

.65 .22

.13 .60 .20

*13

.75 .25

.17 .60 .20

.13

.85 .28

.18 .65 .22

13

,90 .30 .20 .70 .23 .15

.95 .32

.22 .75 .25

17

1.00 .33

.23 .75 25

.17

1 .1 0 .37

.25 .80 .27

.17

1.15 .38

.27 .85 .28

.18

1.2 0 .40

.28 .90 30

.20

1.25 .42

.30 .95 .32

22

1.30 .43 .32 1.00 .33 .23

1.40 .47

.33 1.05 .35

.23

1.45 .48

.35 1.1 0 .37

.25

1.50 .50

.37 1.15 .38

.27

1.60 .53

.38 1.25 .42

.28

GEORGIA, INTRASTATE, MAY 14,

During numerous conferences with the Commission and representatives of Southern Bell Telephone and Telegraph Company, a plan was developed whereby the intrastate toll rates could be reduced for day station-to-station rates for the initial period with appropriate overtime reductions together with certain reductions in person-to-person and some overtime charges. Furthermore, during the conferences, a more accurate method of mileage measurement known as Vertical-Horizontal (V-H) was suggested by the Company.
In compliance with a directive by this Commission, Southern Bell Telephone and Telegraph Company on April 12, 19^2 filed its applica tion for authority to revise the intrastate toll rates and to change the method of mileage measurement. Transmitted with the application, was a revised intrastate toll rate table incorporating therein the reductions
in said intrastate toll rates amounting to approximately $976>000 annually.
After careful consideration of the application and the evidence adduced, the Commission ordered that the revised intrastate toll rates set forth in the rate table attached herewith should be applied uniformly throughout the State of Georgia and made effective May 1^, 1962*
SOUTHERN BEIL TELEPHONE AND TELEGRAPH COMPANY
During the year 1962, Southern Bell Telephone and Telegraph

subscribers with a higher class of service.

With the conversion of the Claxton and Thomson exchanges from
Common Battery Manual to Dial, there remains five Common Battery Manual
exchanges scheduled for conversion in 196^ and 1965* after which Georgia
will have 100$ Dial Service.

The Atlanta Metropolitan Service Area was expanded in August,
1962 to include Acworth and Woodstock. Extended Area Service was also
provided between the following exchanges:

Name of Exchange

Month

Macon - Centerville (Byron Telephone Company) Warner Robins - Centerville (Byron Telephone Company) Warner Robins - Byron (Byron Telephone Company) Chattanooga - Ringgold (Ringgold Telephone Company) Bainbridge - Attapulgus (Quincy Telephone Company) Albany - Baconton Albany - Leary Arlington - Leary Baconton - Pelham Dublin - Montrose (Jeffersonville) Columbus - Cusseta Augusta - Harlem Thomson - Harlem Thomson - Warrenton

January January January April May June June June June July August December December December

- 81 -

Direct Distance Dialing was established in the following
exchanges :

Camming Savannah Savannah Beach

Pooler Claxton Pembroke

During the year,the Claxton exchange was placed in i t s proper
rate group, and Band Mileage zones were established for the Cusseta, Acworth and Woodstock exchanges, and New Locality Rate Areas for Lula (served by the Gainesville exchange), Mblena (served by the Woodbury exchange) and Mansfield-Newborn (served by the Covington exchange). The establishment o f these new zones and rate areas resulted in lower mileage rates fo r subscribers beyond the base rate area o f each said exchange.

On January 11, 1962, th is Commission issued a Rule N isi against Camden Telephone and Telegraph Company, S t. Marys, Georgia, because o f the Company's refusal to provide telephone service to rural residents in i t s c e rtific a te d areas unless applicants made contributions toward construction. This order to ''show cause" directed the Company to appear before the Com mission a t 10 o'clock A. M. on Wednesday, February 1^, 19^2, to show cause, i f any, why the Commission should not require the Company to construct the necessary f a c i l i t i e s that would provide a l l waiting applicants with te le phone service in areas c e rtific a te d to the Company. This Rule Nisi was dismissed by the Commission on February 21, 192, a fte r the Company fur nished evidence that orders had been placed for construction m aterials, th at the areas in question were being staked and that multi-party service would be established for applicants by June 15, 1962.
On February 9, 1961 the Commission issued a Rule Nisi against Blue Ridge Telephone Company, to show cause why the Commission should not require e ffic ie n t, adequate, and dependable telephone service in Blue Ridge, Georgia, and fa ilin g therein, why rates in e ffe c t should not be reduced and made commensurate with the character o f service being rendered to sub scrib ers. Public hearing on th is matter was held before the Commission on
March 1, 1961. After careful consideration of the evidence and testimony
in th is case, the Commission concluded th at the rates for telephone service provided by Blue Ridge Telephone Company should be reduced. Therefore, i t was ordered th at the monthly rates charged subscribers by Blue Ridge Tele phone Company for telephone service rendered by the Company be reduced 25^ per month per main station effectiv e on b i l l s rendered on and a fte r May 1,
1961. Such reduction in rates was to remain in e ffe c t u n til telephone ser
vice standards were restored to an adequate le v e l, subject to investigation and approval by the Commission engineering s ta f f . In 19^2 the Company com pleted i t s construction program, and without prior approval, removed penalty rates as prescribed by th is Commission. Blue Ridge Telephone Company re peatedly ignored Commission directives to re in stitu te penalty rates and make refunds to subscribers. With no altern ativ e, the Commission decided
in Executive Session on December 19* 1962 to bring penalty su it against
Blue Ridge Telephone Company as provided for under Section 93-^16 o f the 1933 Code of Georgia. This matter i s now being pursued by the Attorney General's O ffice.

- 82 -

General Telephone Company of Georgia filed an application with
the Commission requesting authority to liquidate into itself; Consolidated
Telephone Company, Inc#, Douglas Telephone Company, Summerville Telephone
Company, Dalton Telephone Company, Chatsworth Telephone Company, Trion
Telephone Company, and Broxton Telephone Company# This application was
assigned for hearing before the Commission on July 25, 1962, at which
time it was heard.

General presented evidence to this Commission at the hearing that all Companies to he liquidated and dissolved are Georgia corporations and that no change in present accounting methods nor change in capital structure would result from the action. Evidence was also presented by General which showed that it would be necessary to first dissolve and liquidate the subsidiaries of Consolidated Telephone Company, Inc., into that Company, and thereafter to dissolve and liquidate Consolidated Tele phone Company, Inc, Trion Telephone Company, and Broxton Telephone Company into General Telephone Company of Georgia# General presented further evidence that the proposed liquidation and dissolution of such companies would promote a more efficient operation of the telephone sys tems *involved and would, if the application were approved," be in the public interest. This application was approved by the Commission with the provision that General would report to this Commission when the con solidation, liquidation and dissolution had been accomplished#
On September 1 , I962 General Telephone Company of Georgia merged
into Consolidated Telephone Company, Inc. all the assets and liabilities of Chatsworth Telephone Company, Dalton Telephone Company, Douglas Telephone Company, and Summerville Telephone Company.

Toll compensation for Independent companies increased as a re
sult of a new USITA-Bell System 1962 settlement. The settlement resulted

in the Bell System giving the Independent companies approximately

$24,000,000 more in additional toll commission on an annual basis. Of

this amount, it is estimated that the Georgia companies will have an

additional $500*000 based on September calculations which amounted to

slightly more than $37*000 increase per month for September 1962. as com*

pared to September 19 6 1.

5

The following is a schedule showing the net increase due

Independent Company
Alma Telephone Company, Inc. Atlas Utilities Company Blue Ridge Telephone Company Brantley Telephone Company, Inc Byron Telephone Company, Inc. Cairo Telephone Company Camden Tel. & Tel. Co., Inc. Canton Telephone Company
- 83 -

Net Increase Due Independent Company on September Bill as
Result of 1962 Traffic Agreement
$ 580.75
1 k.6h 1-59.63 258.2 k
Ik2.k9
582.38
59^.22
1*069.95

Independent Company

Net Increase Due Independent Company on September B i l l as
Result of 1962 T raffic Agreement

Cherokee Telephone Company, Inc* Chickamauga Telephone Corp*
Citizens Telephone Co*, Inc*
Coastal U tilitie s , Inc. Comer Telephone Company Commerce Telephone Company Consolidated Tel. Co., Inc. Darien Telephone Co., Inc.
Dixie Telephone Company E llija y Telephone Company
Fairmount Telephone Co., Inc. General Tel. Co. o f the Southeast Georgia Telephone Corporation Glenwood Telephone Co., Inc.
Gold Leaf Telephone Company Gray-Haddock Telephone Co., Inc. Hart County Telephone Company Hawkinsville Telephone Company Homervllle Telephone Company, Inc.
In terstate Telephone Company Jeffe rso n v ille Telephone Co., Inc. Mutual Telephone Company, Inc. Nelson-Ball Ground Tel. Co., Inc. Pembroke Telephone Co., Inc. Pineland Telephone Cooperative, Inc. Plant Telephone & Power Co., Inc. Planters Rural Tel. Cooperative, Inc.
Progressive Rural Tel. Cooperative, Inc.
Public Service Telephone Company Quincy Telephone Company (Georgia Division)
Ringgold Telephone Company Seminole Telephone Company, Inc. Sikes Telephone Company, Inc. South Georgia Telephone Co., Inc.
Standard Telephone Company Statesboro Telephone Company Thomaston Telephone Company, Inc. Trenton Telephone Company Trion Telephone Company Utelwico, Incorporated Union Point Telephone Company Walker County Telephone Company Waverly Hall Telephone Company
Wayne Telephone Company, Inc. Westco Telephone Company (Georgia Division) Wilkes Telephone & E le c tric Company Wilkinson County Telephone Co., Inc.
TOTAL

$ 6hk.S0
855.27 ^73*39 387.91 506.39 1,257.07 3,006.36
355.1f3
|%3
318.62
198.37 8,670.58
556.39 133.9^ 88l.kk 232.50 ^57.77 3 2 7 .8 7 270. V 70.01 3 10 .6k
3^9.27 373.73 19 0 .1-5 92^.85 960.70 36^. 32 6 3 2 .5 2 1,197.96 116.21-
222.9^ 355.51 2^9.90 901.63 2,6M f.22
553.36 388.6k 3^9.50 18 2 .5 0 19 8 .0 7
13 0 .3 3 7^5 .7 1 12 5 .3 5 306.59 ll.30.lf3 !fl7.l6 3i6.01

- 8lf -

Because the recently enacted Internal Revenue Act of 19^2 permits public u t i l i t i e s and tra n sit companies, among other taxpayers, to determine th e ir federal income taxes by applying a so-called invest*
ment cred it" representing a percentage in the range of from Jp to 7 J of
the cost of certain additions to plant and equipment placed in service
a fte r January 1, 1962 and, because the Commission had received several
inquiries from u t i l i t i e s under i t s ju risd ictio n as to the appropriate accounting treatment o f the "investment c re d it", the Commission a fte r careful consideration of the matter issued on December 19* 19o2, i t s "Notice of Proposed Rule Making".
In said "Notice" the Commission proposed that in accounting for the "investment c re d it", a new balance sheet account and a new income account should be established on the books and accounts o f the u t i l i t i e s affected* The new balance sheet account would be en titled Unamortized Investment Credit" and, the new income account fo r amortization o f the "investment cred it" would be en titled "Amortization of Investment Credit
Credit".
The Commission in issuing th is "Notice of Proposed Rule Making requested comments from the u t i l i t i e s affected and that such comments should be file d with the Commission on or before January 10, 1963* for the purpose of enabling the Commission to determine whether the account ing treatment fo r the "Investment cred it" as proposed herein should be assigned for public hearing before the Commission*

LOAN AND SECURITY MATTERS Telephone Companies

Name of Utility

Date o f Order

Westco Telephone Company

Jan. 11, 1962

Quincy Telephone Company Blue Ridge Telephone Company Planters Rural Tel* Co-op*, Inc.

Mar. 2. 1962
Mar. 2, 1962 Mar. 1^, 1962

Fairmount Telephone Co, Inc

Mar. 29* 1962

Ringgold Telephone Company

June 27* 1962

Seminole Telephone Co., Inc.

June 27, 1962

General Tel. Co* of the S. E.

July 12, 1962

Jeffersonville Tel. Co., Inc.

July 25, 1962

Walker County Telephone Co.

Aug. 7* 1962

Standard Telephone Company

Aug. l4 , 1962

Progressive Rural Tel. Co-op,Inc. Aug. 1^, 1962

Bulloch County Rural Telephone Cooperative, Inc.
Western Carolina Tel. Co.

Nov. 2, 1962 Jan. 25* 1962

Docket No*
1677-U Non-Docket
1692-U 1695- U 1696- U 1711- U 1709-U 1 7 1 ^-U I726-U 17 12 -U 17 ^6-U 1718 -U
17^9-U Non-Docket

AMENDATORY ORDERS FOR LOANS

Westco Telephone Company Westco Telephone Company Westco Telephone Company

May 12, 1962
Mar. 2, 19^2
Jan .11, 1962

1677-U
1677-U 1677-U

TELEPHONE CERTIFICATES ISSUED IN 1962

Name of Utility

Date of Docket

Rule

New Toll

Order

No. Amend. Nisi Actj. Exch. Lines

Camden Tel, & Tel, Co,, Inc. I/II/6 2 1689-U

X

Westco Telephone Co*

1 /11/6 2 1675- tJ

X

Westco Telephone Co.

1 /11/6 2 1676- U X

Westco Telephone Co,

1 /11/6 2 167U-U

X

Westco Telephone Co,

1 /11/6 2 1673-u X

Westco Telephone Co.

I p tm 1672-U

X

Southern Bell Tel. & Tel. Co, 1 /11/6 2 1685-U X

Standard Telephone Co.

1 /25/62 1688-U X

Standard Telephone Co.

1 /25/62 1687-U X

Standard Telephone Co.

2/15/6 2 1686-U X

South Georgia Tel. Co., Inc. 2 /15 /6 2 I69O-U X

Blue Ridge Telephone Co,

3/ 2/6 2 1691-U X

General Tel. Co. of the S,E. 3/ 2/6 2 1693-U X

Quincy Telephone Company

3/28/62 169^-0

X

Plant Tel. & Power Co., Inc. 5/2 1/6 2 Il4.9il.-U X

Southern Bell Tel. & Tel. Co. 5/23/62 1702-U X

Southern Bell Tel. & Tel. Co. 5/23/62 1703-U X

Southern Bell Tel. & Tel. Co. 5/23/62 170^-U X

General Tel. Co. of the S. E. 6/23/62 1708-U X

General Tel. Co. of the S. E. 6/23/62 1705-U X

Standard Telephone Company

7/25/62 1722-U

X

Standard Telephone Company

7/25/62 1721-U

X

Standard Telephone Company

7/25/62 1720-U X

Jeffersonville Tel. Co., Inc. 7/25/62 1725-U

X

Jeffersonville Tel. Co., Inc. 7/25/62 172U-U

X

Jeffersonville Tel. Co., Inc. 7/25/62 1723-U

X

General Tel. Co. of Georgia 7/25/62 1728-U

X

General Tel. Co. of Georgia 7/25/62 1729-U

X

General Tel, Co. of Georgia 7/25/62 1730-U

X

General Tel. Co. of Georgia 7/25/62 1731-U

X

General Tel, Co. of Georgia 7/25/62 1732-U

X

General Tel. Co. of Georgia 7/25/62 1733-U

X

General Tel. Co. of Georgia 7/25/62 173 ^-u

X

General Tel. Co. of Georgia 7/25/62 1735-U

X

General Tel. Co. of Georgia 7/25/62 1736-u

X

General Tel, Co. of Georgia 7/25/62 1737-U

X

General Tel. Co. of Georgia 7/25/6 2 1738-U

X

General Tel. Co. of Georgia 7/25/62 1739-U

X

General Tel, Co. of Georgia 7/25/62 1 7 ^ - U

X

General Tel. Co. of Georgia 7/25/62 17^1-U

X

General Tel. Co. of Georgia 7/25/62 17^2-U

X

General Tel. Co. of Georgia 7/25/62 17^3-U

X

Southern Bell Tel. & Tel. Co. 7/26/62 Non-D.

X

Southern Bell Tel. & Tel. Co. 10 / 5/62 17^7-U X

Southern Bell Tel. 8a Tel. Co, 10 /25/62 1751-U X

- 86 -

TELEPHONE CERTIFICATES
ISSUED IN 1962

Name of Utility

Date of Docket

Rule

New Toll

Order

No. Amend. Nisi Acq. Exch. Lines

Walker County Telephone Co, IO/25/62

Walker County Telephone Co. IO/25/62

Southern Bell Tel. & Tel. Co. 1 1 / 8/62

Bulloch County Rural Tel.

Co-op., Inc.

1 1 /8/62

Wilkinson County Tel. Co.Inc. 1 1 /20/62

Wilkinson County Tel. Co.Inc, 1 1 /20/62

Southern Bell Tel. & Tel. Co. II/3O/6 2

Wilkinson County Tel. Co.Inc. 1 1 /20/62

St. Joseph Tel. & Tel. Cot

6/13/6 2

1755-U Corrected Order

X

175^-U Amended by 1755-U X
1756-u X

I757-U I666-U
1668-U
1758-U 1667-U 1707-U

X X X X X Certificate of Public Con
venience and Necessity

MISCELLANEOUS MATTERS

Name of Utility
General Telephone Company of Georgia All Independent Telephone Companies

Date
7/25/62 b/Yj/6 2

Docket No.
1627-U
Non-Docket

Summarized below is certain data pertinent to telephone companies showing the number of

Independent

1962

1961

Total number Independent telephone companies

operating in Georgia.

55

Total number cooperatives in operation

f

Number Common Battery Exchanges

1

Number Dial Exchanges

225

Total number exchanges

226

Number Common Battery Stations

h9

Number Dial Stations

181,288

Total number stations

101,337

Percent station gain over previous year

9.55$

Number of exchanges in process of conversion to dial 0

Number in process of being established

k

Number of new exchanges established

7

Total telephone plant in service December 31 $69,0 72,5 17

Total plant under construction December 31 $ 2 ,3 2 1,15 8

59 1 2 218 220
555
165,529
1-95, 1 k k
$ 56,16 6 ,0 3 9 $ 3,13 9 ,713

Number of REA borrowers ------ --- *-------- -- ------------- --- jg-----37-
*Total amount of loans approved by REA as of Dec. 3 1, 1962 - $^5,999,000 *Total amount of funds advanced by REA as of Dec. 31, 1962 - $3^,071,755

- 87 -

Southern Bell Telephone and Telegraph Company

Plant in service at Dec. 31* 1962
Plant under construction at Dec. 31, 1962
Number Common Battery Exchanges Number Dial Exchanges Total number exchanges at Dec. 31* 1962 Total number stations at Dec. 31* 1962

$451*892,114 7*103*076
35 1,191*743

*Source - REA Quarterly Statistical Summary.

Summary of Total Georgia Telephone Operations at December 31* 1962

Total number of Telephone Companies operating in Georgia
Total plant in service Total plant under construction
Total common batteryexchanges Total dial exchanges
Total number exchanges
Total number stations

56
$520,964,631 9*424,234
6 398
364
1*373*080

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TRANSIT

The only proceeding which took place concerning transit matters
during 1962 was a petition filed hy Atlanta Transit System, Inc* with the Commission on March 19, 1962, requesting authority to incur an indebtedness payable for not more than 12 months from the date thereof in the amount of
$1,197,000. The petition also requested authority to execute a note and to execute and issue a bill of sale to secure the indebtedness* The Commission ruled that public hearing of the matter was not necessary* According to the petition, the funds from the proposed loan would be used to acquire
fifty (50) new General Motors Corporation diesel busses in order to maintain
and improve the transportation service rendered by Atlanta Transit System,
Inc* to the public and the greater Atlanta area. After careful considera tion of this matter and since it appeared that the issuance of the note was required for the purpose of maintaining and improving service rendered by
Atlanta Transit System, Inc. to the public, the authority requested was
approved b y the Commission on March 29, 1962 with the provision that Atlanta Transit System, Ihc. would make a full report to the Commission when the note had been issued, which would set forth the proceeds received and the
disposition thereof.
Summary of Operations - 1962
Atlanta Transit System and Metropolitan Transit System

Passenger Revenue A H Other Revenue
Total Transportation Operating Rev*
Transportation Operating Expenses Depr., Taxes & Other Deductions
Total Transp. Oper. Rev. Deducts.
Transportation Net Operating Revenue Results of Oper* of Subsidiary (MTS) Income Deductions
Net Income

1961
$8,0357927
140,129 8,275,056

1962
$8,4317863 275,207
8,707,070

6,578,881
1,67k,625 5,253,506

6,807,620 1 ,805,25k 0,6l2 ,87k

21,550 ( 19,848) 131,784
(13 0 ,082)

9k, 196
33,5k9 115,929

Increase or
(Decrease)
$296,936 135,078
1*32,Q U
228,739 130,629 359,368
7 2 ,6k6
53,397
- (1 5 ,855)
lkl,S9&

Total Passenger Vehicle Mileage Average Passenger Revenue
Route Miles as of December 31

1 2 ,500,026 12,342,640

17 >72(i

18 .96^

766

808

(15 7 ,386) 1 .2k$ k2

Source - Monthly Reports Filed with this Commission.

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An analysis of the above Summary of Operations for Atlanta Transit
System, Inc. shows that Net Income for the year 1962 increased $141,898 over
the previous year. This was due to the fact that while Transportation Oper
ating Revenues increased $432,04l, Transportation Operating Expenses increased
115,855. less proportionately in the amount of $359*368 and Income Deductions decreased

The fact that the Net Income for 1962 increased some $141,000 over
the pervious year, while Passenger Vehicle Mileage showed a decline of
157,38 6 miles, is justified by the following explanation.

The Atlanta Transit System and Metropolitan Transit System revenue
passengers were 5 1,78 8,013 in 19 6 1 and 51,831, 298 in 1962. (See schedule
Below) Up to this time there had not been a level year since 1946. There
was a decline of about 4$ each year in recent years. (See .chart ."A") On
January l , - 1962 a 50 transfer .fcharge was instituted.

ATLANTA TRANSIT SYSTEM AND METROPOLITAN TRANSIT SYSTEM REVENUE PASSENGERS BY MONTHS ________ _ _

1961 and 1962

January February March April May June July August September October November December
Total

1961
4,171,6l~
3,942,618 4,674,762 4 ,2 7 6 ,7 8 3 4,692,866 4 ,13 9 ,8 5 2 3,917,945 4,19 9 ,9 31 4,389,036 4,668,608
4,429,869 4,284,082
5 1,788,013

1962 4,242,178 4,056,714
4 ,5 2 5 ,7 18
4,438,216 4,725,121 4,027,216 3,935,428 4,197,096
4,258,388 4,803,609
4,372,921 4,248,693
5 1,831,298

It is predicted that the previous docline in revenue passengers will start again but at a much smaller rate * The monthly moving total figures indicate that something happened to halt the passenger decline for 1962. It was known there was a large amount of abuse in transfer use with free transfers as was testified about in the last rate case decided b y the
Commission in December, 19 6 1. Passengers using transfers for illegal free
rides could not be counted as revenue passengers. With the 50 transfer, this abuse was virtually eliminated and the former free rides were then counted as revenue passengers.

From the figures before and after the year 1962, it was determined
that over a million passengers annually were "abuse" or "free ride" passen gers. Had not the 50 transfer charge been made, the trend decline would
have occurred in 1962 as well as in prior years and again in 1963*
On November 12, 1962 Atlanta Transit System announced plans for
modernizing its vehicle fleet by converting all of its trackless trolley lines to motor busses. While depreciation, interest and taxes will be
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P A S S E N G E R S (Millions)

increased "by this conversion, the reduction in operating expenses wild, largely offset this increase* Hence, for only a slight increase in net cost, the passengers will be provided with a transit system that is more efficient, more comfortable, more modem, more reliable, safer, and more flexible* At the same time the appearance of the streets will be greatly improved by the removal of unsightly overhead wire. The Company stated that it anticipated
that this conversion would be completed b y September 30, 1963* the date of
expiration of the present lease of trackless trolleys.

Summary of Operations - 1962
Columbus Transportation Company

Passenger Revenue All Other Revenue
Total Transportation Operating Rev.
Transportation Operating Expenses Eepr., Taxes & Other Deductions
Total Transp. Oper. Rev. Deducts.
Transportation Net Operating Revenue

1961
$700,063 11,9 8 7
7 12 ,8 5 0
570,350 131.303
7 0 1,6 5 3
$ 11,197

1962
$663,505 11,7 10
675,295
5 8 2 .2 7 9 121.2 8 0 663,559
$ 11,7 3 6

Increase or
(Decrease ) $( 37,278)
( 277
( 37*555)
c 28,0 71) ( 10 ,023). 1 38,098)
$ 539

Passenger Vehicle Mileage Average Passenger Revenue

1,903,263 1 ,657,3^0

1 3 .12 $

1 3 ,23$

(285,923) .1 1 $

Source: Monthly Reports filed with this Commission.

3h an analysis of the above summary, it appears that while Operating
Revenues for 1962 are $37*555 less than that of the previous year, Operating Revenue Deductions have decreased proportionately ($38 >094), resulting in a slight increase of $539 in Net Operating Revenue for the year 1962 over the year 19 6 1*

Summary of Operations - 1962 Bibb Transit Company

Passenger Revenue All Other Revenue
Total Transportation Operating Rev.

1961
$8537501 32,981 8l,32

1962 $798,890
27,301
2,191

Increase or
(Decrease)
$( 59, 5 11)
W m 5,680)
( 55*191)

Transportation Operating Expenses Depreciation and Taxes
Total Operating Rev. Deductions

798,829 69,501
868,330'

788,639 72,517
821,056

( 56,190) 2,916
( 83,278)

Transportation Net Operating Revenues $ 17,052 $ 5,135 $( 11,917)

Passenger Vehicle Mileage Average Passenger Revenue

2 ,085*166 1,836,412

12.70$

14.46$

(248,754)
1 .76$

Source: Monthly Reports filed with this Commission

According to the above summary, Net Operating Revenues for Bibb Transit
Company decreased from $17,052 in 19 6 1 to $5*135 in 1962, a net decrease of
$11,917. This was the result of a decrease in Operating Revenues of $55*199*

while Operating Revenue Deductions decreased $43,274.

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THE WESTERN UNION TELEGRAPH COMPANY

During 1962 Western Union Telegraph Company filed petitions with
the Federal Communications Commission in which they requested permission to
reduce branch office hours in two cities in Georgia. The first petition was
filed on January 2, 1962 and requested permission to change the office hours
of its branch office located at 21 Houston Street, N. E., Atlanta, Georgia.
This office operates a Class 2A teleprinter. The Company showed in its
petition that it had a substitute office located at 38 West Marietta Street,
N. W ., Atlanta, Georgia, and the distance from the branch office was some
1,820 feet. The Company also disclosed that this substitute office is
always open. The second petition was filed with the Federal Communications
Commission on April 2, 1962 and requested permission to reduce office hours
at its main office located at 103 North Sage Street, Toccoa, Georgia. This
office operates a Class 1 teleprinter. The Company also showed in this petition that it had a substitute office located at 112 North Sage Street,
Toccoa, Georgia and that this office would be open during those hours which
the main office was closed.

On August 20, 1962 the Company filed a tariff amendment which
provided for the elimination of the reduction in charges on certain messages filed by tieline This tieline discount plan which the Company proposed to
eliminate under its new tariff amendment was inaugurated in 1 9 5 This tieline discount plan provided for a 20^ discount for each message in excess of
50 per month sent paid by each tieline customer. The Company contended that its Georgia intrastate operating results for the 12 months ended December 31;
1962 showed a loss of $37; 890* The Company maintained that the elimination
of the tieline discount would have a negligible bearing on the operating results in Georgia, particularly after giving effect to the increased cost of
new labor contracts which became effective on June 1, 1962 and which added
approximately $19,526 to the operating cost of Georgia on an annual basis.

By a telegram on September 6, 1962, Western Union requested per

mission to withdraw without further action its tariff amendment filed on
August 20, 1962. The Company stated that it wished to defer effectuation

of the intrastate tariff amendment filed with this Commission until the

matter was resolved with the Federal Communications Commission with respect

to interstate service. On November 15, 1962, Western Union Telegraph Com

pany filed a revised tariff amendment with the Commission which provided

that the amount of tieline discount be reduced from 2C$ to

per message

and that such reduction in charges would apply on each message sent paid by

tieline in excess of 100 per month interstate and intrastate combined, in
stead of on messages in excess of 50 per month as at present and that the

charges for additional words in telegram messages, that is, words in excess
of 15 in full rate telegrams and in excess of 50 iu day letters and night

letters, be increased for full rate telegrams by for each additional word

in all rate zones, for day letters by ^ for each additional 5 words in the
first rate zone and by 1$ for each additional 5 words in the other rate

zones, and for night letters by ^ for each additional 5 words in all rate

zones applicable to intrastate service.

After careful consideration of this matter b y the Commission, the Company^ request was approved subject to complaint and further order.

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