Report of Georgia public service commission. Ninty-second report, 1964

S T A T E OF G E O R G I A Carl E # Sanders, Governor
92nd REPORT OF
GEORGIA PUBLIC SERVICE COMMISSION 2AA Washington Sb*, S.W., Atlanta,Ga. 30334
January 1, 1964 to January 1, 1965
Crawford L* Pilcher, Chairman Ben T* Wiggins, Vice Chairman Walter R* McDonald, Commissioner William H. Kimbrough,Commissioner Alpha A. Fowler, Jr., Commissioner A.O* Randall, Secretary

COMMISSIONERS
CRAWFORD L. PILCHER, c h a i r m a n BEN T WIGGINS, v i c e c h a i r m a n ALPHA A FOWLER. JR. WILLIAM H. KIMBROUGH WALTER R. MCDONALD
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July 15, 1965

A. O. RANDALL, s e c r e t a r y

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To His Excellency Carl E. Sanders

Governor of Georgia,

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Dear Governor Sanders :

As provided by law, the Georgia Public Service Commission

submits herewith its 92nd Annual Report of the regulatory

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activities of the Commission for the year ending December 31,
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Respectfully submitted^

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Crawford L, Pilcher, Chairman

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Ben T* lo g i n s , racre ,Chairnan

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Walter R, McDonald, Commissioner

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* By Commissioner Fowler:

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While I believe the following report prepared by the Commis

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sion's Staff to be accurate I cannot assume any responsibility

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for^the actions of the Commission reported therein for the very

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obvxoua reason that X was not a member^of the Commission during
any part of the year 1964, having tavern office\>n Januafry 1 1965,

Date: July 15, 1965.

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Signed:^

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A^pha A. Fowler, Ji]

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a L I B R A R I E S

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INDEX
Letter of Transmittal - - - - - - - - - - - Introduction ------ - - - - - - - - - - - Commission History and Jurisdiction - ----Public Hearings and Decisions ------------ -

Page
1
3 4

MOTOR CARRIER REGULATION
Motor Carrier Certificate and License Fees ----- 5
Amendments to Motor Carrier laws & Rules - - - - - 6
Motor Carrier Enforcement - - - - - - - - - - - 9

RAILROAD REGULATIONS

Formal Cases - - - - - - - - - - - - - - - - -

12

Bus Fares and Services----------------------

20

Truck Rates - -------------------------------

21

Railway Express ----------------

29

Rail Passenger Service - --------

30

Rail F r e i g h t -- ---------

32

Rail Agency Service - --------------------- -

33

Wrightsville & Tennille Railroad Inspection - - 33

W. & A. R a ilro a d ---------- --- - ----------

34

Interstate Service - - - - - - - - - - - - - -

35

UTILITY REGULATION

Introduction - - - - - ---------- - - - - - -

39

Operating U t i l i t i e s --------------

39

Decisions and Orders - - - - - - - - - - - - -

40

Telephone and Gas Certificates -- - - ------

41

Security Issues - - - - -- - - - - - - - - - -

43

Rate Adjustment Proceedings - - - - - - - - - -

44

Certificate Amendments-- -------------

46

Economic Trends - ---------------------------

48

New Era in Regulation - RCC - - - - - - - - -

48

Residential Electric Rate Schedules - - - - -

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Intrastate Telephone Toll R a t e s ----------- -

53

Gas Utilities --------------------------- -- -

54

Electric Utilities - - ------ - -----------

58

Telephone & Telegraph Utilities - - - --- -

59

Appendices - - - - - - - - - - - - - - - - -

62

92nd ANNUAL REPORT
Introduction
The Annual import of the Georgia Public Service Commis sion covering the activities for the year ending December 31,
1964-, is submitted herewith in compliance with law.
Prior to December 30, 1964, the members and officers of the Commission for the year 186& were the same as shown in the last report. On that date Vice Chairman Allen Chappell resigned as Commissioner and was appointed Commissioner Emeritus, and Commissioner Ben T* Wiggins was elected Vice Chairman for the unexpired term.
Honorable AIpha A. Fowler, Jr., of Douglasville, Georgia, was nominated in the Democratic Primary and was elected with out opposition in the general election on November 3, 1964, as Commissioner for a six year term to Commence January 1, 1965, suc ceeding Commissioner Allen Chappell. This office stood vacant for one day, December 31, 1964#
The members, officers and personnel of the Commission as of December 31, 1964, were as follows:
Crawford L. Pilcher,Chairman Ben T. Wiggins, Vice Chairman Walter R, McDonald, ommissioner William H. Kimbrough, Commissioner A. 0, Randall, Executive Secretary and Lega3 Aide Robert W. Gerson, Assistant Executive Secretary Mrs, Mae A. Montgomery, Reporter Robert B*. Alford,Chief Utilities Engineer Douglas N. S mith, Ssnior Utilities Engineer Robert W. Hayes, Utilities Engineer Frank G. Heald, Senior Utilities Auditor James D. Barnett, Utilities Auditor James M. Falks, Junior Utilities Auditor
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David 0. Benson, Transportation Rates Expert
J , Fred Parker, Senior Transportation Rates Specialist L. Thorns Doyal,Senior Transportation Rates Specialist larry L, Carpenter, Transportation Rates Assistant Robert N. 5bHows, Certificate-Insurance Supervisor Donald J* Iawrence, Director Motor Carrier Inspection
and Enforcement, George E, Thurmond, Civil Defense Officer,
All other Commission employees are listed in alphabetical order as followss
Mrs, Carolyn Baxley, Senior Stenographer Mrs, Paula F, Campbell, Senior Stenographer Mrs, Mozelle Colquitt, Senior Stenographer Herbert R. Daugherty, Motor Carrier Inspector W, E, Doolittle, Motor Carrier Inspector Mrs, Ann R. Donehoo, Senioi* Stenographer A, J, Fort, Motor Carrier Inspector Miss Lois Hardy, Senior Stenographer Mrs, Patricia G, Hesmondhalgh, Intermediate Clerk Miss Joan L, Holland, Senior Stenographer James H, Hooks, Motor Carrier Inspector Mrs, Linda H, Ingle, Senior Stenographer Miss Carolyn B, Jenkins, Intermediate Stenographer Miss J, Diane Johnson, Intermediate Clerk Mrs*Virginia R. Mann, Senior Stenographer Mrs, Emily Martin, Senior Stenographer Mrs, Doris Mills, Principal Stenographer Mrs, Rubye D, Otwell, Senior Stenographer Mrs, Patvsy Porter, Senior S tenographer John R, Price, Confidential Secretary Miss Lucia A, Ramey, S enior S tenographer Miss Frances L, Rowlett, Receptionist T S , Tyson, Motor Carrier Inspector Bobby Edmondson, Utility Clerk.
During the year 1964 the following employees were added to our list, to-wit:
Miss Frances L, Rowlett, Receptionist; Miss Lois Hardy, Senior Stenographer; Miss Lucia Ramey, Senior Stenographer; and Mrs. Patricia G. Hesmondhalgh, Intermediate Clerk,
The following regular employees resigned during the year:
Mrs. Norma Ray, Receptionist; Mrs. Lucene R, Bering, Senior Stenographer; Mrs. Sarah B. McGonigal, Senior Steno grapher; Mrs. B&lla A, Spaller, Intermediate Clerk; Mrs,. Patricia Ga, Hesmondhalgh, Intermediate Clerk, The employment of Miss Lois Hardy, Senior S tenographer, was terminated, ef fective December 31, 1964,

COMMISSION HISTORY AMD JURISDICTION
Although the Georgia Public Service Commission got its pre sent rifl.Tne by Act of the General Assembly m 1922, it was first created by the General Assembly as the ''Railroad Commis sion of Georgia" in 1879, antedating the Interstate Commerce Commission by eight years;, During the first seven years of its existence semi-annual reports were issued, which accounts for this being the 92nd Report* Had Annualports been issued during those seven years this would be the 85th Report,
The Commission has jurisdiction over all railroads, tele phone companies, electric power companies, gas utility companies, street railway and transit companies, express companies, tele graph companies, terminal companies, compress companies, dock and wharf companies, and ''for hire" motor common and contract carriers of passengers and property.
The Commission also has supervision over the Western and Atlantic Railroad,
Generally, the Commission is charged with the duty of requiring all persons, companies or corporations under its jurisdiction to apply fair, just and reasonable and non-- discriminatory intrastate rates and charges; to require that these persons, companies or corporations provide adequate public services and facilities compatible with the reasonable and just needs of the public interest; to promulgate and^en force adequate rules and regulations governing the operations of persons, companies or corporations under its jurisdiction
for the1protection of the public interest; to require these
persons, companies or corporations to maintain financial re sponsibility; to investigate all through rates and to appeal to the Interstate Commerce Commission to prevent discriminations therein) to conduct hearings, assemble evidence and make in vestigations, determine costs and valuations, and inspect pro perties, books and papers of all persons, companies, or corpor ations under its jurisdiction; issue orders giving effect to its decisions, and when necessary to institute court proceed ings to enforce its orders, rules and regulations; to require all persons, companies or corporations to make quarterly and annual reports to the Commission. The Commission is also re quired to make an annual report to the Gbvernor of^tne trans actions of the office and recommend such legislation as^may be deemed advisable; and to employ adequate and sufficient personnel deemed necessary to perform^ the duties and exercise the powers conferred upon the Commission by law.
The jurisdiction of the Commission, except for amendments of original Acts of the General Assembly, has not changed
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since 1931, although its jurisdiction was enlarged in 1950 to
authorize the issuance of certificates of public convenience
and necessity to telephone companies, and in 1956 to gas
pipe line or distribution systems* A brief chronological list of the Acts of the General Assembly relating to activi ties of the Commission from 1879 is contained in a publication of the Commission entitled "laws and' Rules % A copy of that publication may be obtained on request*
It should be borne in mind that the Commission*s author ity is limited by law. It does not have authority to manage the business of a public utility company, or to act as a police organization. It can only issue orders, and while there is a section of the law that provides that 'the Commission may sue a public utility in the name of the State for a penalty for violation of its order, it can not do so arbitrarily. It should also be noted that a violation of many of the laws over which the Commission has jurisdiction, particularly the Motor Carrier laws, is a misdemeanor, and on March 17, I960, prior to a ruling by theSupreme Court, an Act was adopted by the General Assembly giving police powers to the Commission and authority to delegate to employees the authority to enforce the Motor Carrier Acts and to arrest persons found in violation thereof. The Commission is also authorized by law to seek injunctions in the courts against violators, but this requires the ser vices of the Law Department and entails considerable expense.
The Commission does not have the jurisdiction over public utility services provided by municipalities except in certain specified instances as provided by law. There are some public utilities over which the Commission has no jurisdiction, such as warehousing, air lines, pipe lines, rural electric cooperatives and water distribution companies, except as specifically provided by law.
PUBLIC HEARINGS AND DECISIONS
During the year the Commission conducted A20 Public Hearings. Public Hearings commence on the second and fourth Tuesdays in each month and continue on successive days there after "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 pub lic hearing are heard by the entire Commission in open session, a majority of the Commission constituting a quorum. The Com mission does not use Hearing Examiners, thereby avoiding un necessary delays for the purpose of reading records. Further more the hearing of evidence in person enables each Commissioner to acquire a more complete picture of the matter under consid-

eration. The following is a monthly record of the number of official actions taken by the G ommission during the year %
January-- - - - 142 F e b r u a r y --------- 154 March - - - - - - 176 April - - -- - - 140 M a y -------- - 162 June - - - - - - 113 J u l y -------------133 A u g u s t -------- 43 September - - - SO October - - - - 193 November - - - - 113 December -- - - -- 172
Total Decisions 1621,

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 re mitted to the State Treasurer during the year 1964 are as follows s

Certificate fees at $35#00 each, and certificate

transfer fees at $7.50 each

-- -- --- -- --

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

$ $302,850,00

Reciprocal registration fees at $1,00 e a c h ------- $ 24,398,00

T O T A L ------------- $331,346,00
In addition to the foregoing certificate and license fees of $331,348,00 collected by the Commission, the Railroads and Utilities under the jurisdiction of the Commission were subject to a tax assessment which produced the sum of $280,000,00, which was collected by the Froperty and License liait of the Department of Revenue, making a total of $611,348,00 available for appropria tion to the Commission, although it should be noted that the^ap propriation for the Commission was limited in the Appropriation Act of 1963 to $460,000.00.

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AMENDMENT TO MOTOR CARRIER L A W ________
At the 196A Session of the General Assembly Section
68-502(c) -was amended by adding the following sub-paragraph (9)
thereto i
(c) . . . . . . This chapter shall not apply to:
(9) Motor vehicles commonly known as tow trucks or wreckers, designed and exclusively used in the busi ness of towing abandoned, disabled and wrecked vehicles or otherwise rendering assistance to abandonded, dis abled and wrecked vehicles *
AMENDMENTS OF MOTOR CARRIER RULES AND REGULATIONS_______
During the year the Commission amended the following Motor Carrier Rules and Regulations:
On April 8, 1964? the Commission amended Rule 11 to
conform to the size and weight law as amended by the General Assembly on February 17, 1964, to read as follows:
RULE 11
(a) No vehicle shall exceed a total outside width,
including load thereon, of ninety-six (96) inches,not
including mirrors and accessories attached thereto; no vehicle unladen or with load shall exceed a height of thirteen (13) feet six (6) inches; no vehicle or combination of vehicles shall exceed a total length
of fifty-five (55) feet; single trip movements for
necessary purposes of materials, objects or vehicles of dimensions which exceed the limits herein provided and which are of such nature that they cannot be readily dismantled or separated may be permitted but only upon the issuance of a special permit for such purpose, for a fee not to exceed One dollar($1,00); provided, however, that loads of poles, logs, lumber, structural steely pip ing and timber may exceed the length herein fixed with--
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out requiring special permit.
(b) Kb wheel on any vehicle operated upon any public road or public highway of this State, equipped with high pressure, pneumatic, solid rubber or cushion tires
shall carry a load which exceeds 8,000 pounds by more than 13%; no wheel equipped with low pressure pneumatic tires shall carry a load which exceeds 9,000 pounds'by more than 13%, or any axle load which exceeds 18,000 pounds by more than 13% | an axle load shall be defined
as the total load on all wheels whose centers may be in cluded between two parallel transverse vertical planes 4-0 inches apart. If the driver of any vehicle can comply with the requirements of this section by shifting or equalizing the load on all wheels or axles and does so when requested by the proper authority said driver shall not be held to be operating in violation of this section,
(e) Provided however
(1 ) that the maximum total gross weight shall not
exceed 73.,280 pounds, (ii) that on roads constructed under the Rural Road
Authority, this maximum total gross weight shall not exceed
56,000 pounds unless the vehicle is making a pick up or
delivery on such roads. Provided further, that no officer or employee shall
grant, authorize, or allow any length or weight in excess of the limitations herein provided (except by special permit as defined in paragraph (a) above) in any manner whatsoever.
It shall be the duty of the Department of Public Safety, and of all other law enforcement officers to en force this section. Provided further, however, that any vehicle, on which State and County ad valorem taxes have ' been paid, of a contractor who has a contract with the State Highway Department for the construction or maintenance of a road or highway may exceed the weight and length limits provided in this section when used in connection with such contract, without the necessity of obtaining a special permit herein required.
On May 28, 1964, the Commission amended Rules 35 and 36 of the General Motor Carrier Rules and Regulations issued January 1, 1963, making minor changes in the insurance certificate and endorsement forms prescribed by the Commission. The certificate forms now require that the term of the policy, if not in fact ''continuous", must show the expiration date. The endorsement
form now requires that the figure "30" be written into the
blank space previously provided for notice of cancellation.

On December 22, 1964, the Commission amended the defi nition of a Class "C " Certificate In Rule 2, and Rule 12 appli cable to Class "A" Certificates, by adding to each of these Rules the following: ''The unincorporated territory which was within'the corporate limits of the Village of North Atlanta on June 29, 1964, shall be deemed a municipality in the inter pretation and application of this Rule*"

MOTOR CARRIER ENFORCEMENT

The Motor Carrier Inspection and Enforcement Division is that arm of the Commission which enables its members to maintain surveillance over the activities of all "for hire" motor carriers conducting operations over the highways of Georgia.

During the calendar year of 1964 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
103,869 miles at a cost to the state of $8,309*52. This operating cost enabled these inspectors to collect $723700
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:

(1 )
carriers:

Routine Inspections of Regulated Intrastate

(a) Safety Inspections of Vehicles: During the year
1964 inspections were made on 1,252 heavy duty trucks, truck
tractors, trailer and buses for violation of the Motor Carrier Safety Regulations 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 certifying these repairs were made was required of the motor carrier in violation.

(b) Inspections of Transportation Rates Applied: Periodic calls were made on all carriers regulated by this Commission to determine if they were assessing the proper rates and charges approved by the Commission and that they were operating within the scope of their authority granted by the Commission. Where violations of the published tariff rates were detected, the violating carrier was required to rebill the shipments in accordance with their proper published rates. Where these violations were prevalent and posed a threat to the shipping public or showed signs of discriminatory practices, the Commission issued a rule nisi against the carrier to show cause why their certificates should not be suspended and/or revoked for failing to comply with the Commission rules and regulations. Such rules nisi were issued in 14 cases. Where violations were of a nature that the Commission felt they could be corrected with proper guidance from the staff, the carrier was asked to come to the Atlanta Offices for consulta tion. During the year conferences were held with six motor carriers, who were advised of the necessary steps to place them in compliance with the tariff rules and other regulations of the Commission.

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This is a marked decrease from the number of conferences held with motor carriers during previous years. We believe that this is a healthy indication that the motor carriers are more conversant with the tariff regulations promulgated by this Commission and, consequently, are exercising more care in the rating and billing of their shipments.

(c)

Service and Facility Complaints: This department

has worked very closely with the Transportation Hates Division

on complaints involving the service and facility condition of

the passenger bus companies providing intrastate transportation

for the citizens of Georgia. Inspection of the sanitary

conditions of bus terminals in the state by this department

has resulted in the upgrading of these 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 because of such hazard. Complaints involving the

service of motor freight carriers have been investigated by

this department and where service has been determined to be

sub-standard the carriers were required to improve such
service. All such complaints for the year 196k have been

handled to the satisfaction of the complaining shippers.

(2) Registration of Interstate Carriers.

Through the efforts of our field inspectors and informa tion carried in trade journals, this department is continuing its program of registration of those carriers engaged solely in interstate commerce over the highways of Georgia, under permits from the Interstate Commerce Commission, or who are engaged in the "for hire" transportation of "exempt commodities" under the Federal Motor Carrier Act of 1935
During the year 196^ this Commission issued 1,031 operating
permits and 2^,178 reciprocal cab cards to such carriers. The Motor Carrier Acts of 1931 require such registrations so that citizens of Georgia may be certain that these carriers are properly insured and financially responsible if they should become involved in an accident within the State of Georgia resulting in property damage, injury or death to any of the citizens of this state. Further, such carriers are required to designate an agent for service.

While performing the foregoing duties our motor carrier
inspectors made 1,906 personal contacts with carriers,
shippers, receivers, city and county officials and other
interested parties. The field staff also handled 20^- special
investigations of suspected unlawful transportation.

(3) 111egal Transportation Problem.

Because of the increasing concern over the illegal of "gray area" transportation problem, both on the state and

national levels, special emphasis is being placed by this

Commission on the apprehension and conviction of these^

illicit operators who are undermining the regulated rail

and motor carrier transportation services. While conducting

special road checks in an effort to apprehend violators

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of our Motor Carrier Acts* the inspectors have spot checked
well over 10,000 vehicles for vehicle registration, authority, and safety, in addition to 1,252 vehicle inspections

previously mentioned in this report. Also, numerous shippers

using the services 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 3^ear 1>6U^ lists a total of 121 court actions which resulted in fines of
$12,5^7.18, and 53 months of suspended sentences. These actions were filed in twenty-eight different counties of the state, and the bond forfeitures or fines remained in the county where the arrests were made. This total of 123. cases, handled by the courts, ref3.ect the activities of the Commission in the apprehension and conviction of persons operating as motor carriers "for hire',* either without appropriate intrastate authority from this Commission, or without an appropriate registration with this Commission of an interstate operating authority from the Interstate Commerce Commission. It should be noted that Georgia Law requires the registration of all "for hire" motor common carriers even though they may be transporting commodities exempt from the economic jurisdiction of the Interstate Commerce Commission.

Mr. Donald J . Lawrence i s D ire c to r o f th e Commission' s Motor C a rrie r In sp ectio n and Enforcement D iv is io n , and the names and ad d resses o f th e f i v e in s p e c to r s p r e s e n tly employed by th e Commission are:

Herbert R. Daugherty, Smyrna, Georgia

W. E. Doolittle,

Sandersvilie, Georgia

j, port

Route 1,Morrow, Georgia

James H. Hooks,

Donalsonville, Georgia

T* S* Tyson,

Swamsboro, Georgia

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TRANSPORTATION

General
During 196^, 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), 57*+
transportation rate and service matters, a considerable number of which required lengthy studies and investigations in the field.

FORMAL CASES FOR YEAR 196*+

Docket N o . Date

Subject

519-R

1 -8-6^

Application of Atlantic Coast Line Railroad Company for au thority to discontinue agency service at Iron City

55*+-R

1-21-6*4-

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

555-R

1-21-6*+

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

Disposition Withdrawn
Approved
Approved

55-R
560-R 562-R

1-27-6*+

Application of Atlantic Coast Line Railroad Company for au thority to discontinue agency service at Rebecca

Withdrawn

1-27-6*4-

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

Withdrawn

2-l*+-6*+

Application of Railway Express Approved Agency, Inc., for authority to apply an increase of twenty-five cents per shipment of one or more packages in the charges on lessthan-carload express traffic be tween stations in the State of Georgia

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FORMAL CASES FOR YEAR 1964 (Continued)

Docket No. Date

Subject

Disposition

3rd Supp. 2197-M 2246-M

2-14-64

Application of motor carriers of liquid petroleum products, in bulk, for modification of volume incentive rate plan to permit application of plan on broader list of petroleum products and to provide a return load rule

Approved

2589-M

2-26-64

Application of Southern Transit, Inc., for authority to increase fares on its line between Macon and Warner Robins

Approved, subject to upgrading of equipment

564-R

5.7 -6!

Application of Seaboard Air

Approved

Line Railroad Company for au

thority to discontinue agency

service at Aragon, to discontinue

handling less-than-carload ship

ments at that point and to dis

mantle the station building at

Aragon

566-R

5-22-64

Application of Georgia Railroad for authority to cancel pick-up and delivery service at Sparta

Approved

267O-M

5-28-64

Application of Georgia House hold Goods Tariff Bureau to ad just charges on transportation of household goods (both in creases and reductions involved)

Approved

2721-M

5-28-64

Rule Nisi against all motor carriers of household goods to show cause why the Commission should not require revisions in rules and regulations governing the transportation of household goods to correspond with those approved by the Interstate Commerce Commission in Ex Parte MC-19

Proceeding delayed pending final ruling by the Interstate Commerce Com mission

563-R

5-29-64

Application of Atlantic Coast Line Railroad Company and Southern Railway Company for authority to establish reduced rate on single car shipments of liquid caustic soda from Brunswick to Doctortown and Rosser

Denied pending adjustment by competing carri ers and to competing points

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WBSoe

FORMAL CASES FOR YEAR 1064 (Continued)

Docket No. Date

Subject

Disposition

567-R 568-R

5-29-64

Application of Southern Railway Company for authority to dis continue agency service at Scotland, to discontinue hand ling less-than-carload ship ments at that point and to dis mantle the station building at Scotland

Approved

5-29-64

Application of Southern Railway Company for authority to dis continue agency service at Bowersville, to discontinue handling less-than-carload shipments at that point and to dismantle the station building at Bowersville

Approved

569-R

5-29-64

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

Approved

2612-M

5-29-64

Application of Petroleum Carrier Corporation for au thority to remove incentive feature from reduced rate on caustic soda from Brunswick to Doctortown

Denied without prejudice to modification to insure sufficient volume to sustain the operation

259O-M

6-10-64

Application of Tamiami Freightways, Inc., for au thority to consolidate its agency operation at McRae into its agency station at Eastman

Withdrawn

559-R

6-29-64

Application of Atlantic Coast Line Railroad Company for au thority to reduce the hours of service of its agencies at Climax and Whigham to the extent necessary to permit one agent during regular hours of work to serve both agencies

Approved

FORMAL CASES FOR YEAR 196*4- (Continued)

Docket No Date

Sub.ject

Disposition

56I-R

6-29-64

Application of Railway Express Agency, Inc., for authority to consolidate the express offices of Climax and Whigbam, con tingent upon authority being granted to the railroad to dualize the agency stations at those points

Approved

1st Supp.
2612-M
1st Supp. 563-R

7-2-64
7 -2-6*+

Application of Petroleum Carrier Corporation for au thority to modify the pro visions of the incentive rate on liquid caustic soda from Brunswick to Doctortown and to apply said plan to St. Marys
Application of Atlantic Coast Line Railroad Company and Southern Railway Company for authority to establish re duced rate on single car shipments of liquid caustic soda from Brunswick to Doctortown and Rosser

Approved follow ing further modification assuring com petitive equality
Approved after removal of com petitive in equities

272U-M

7-2-64

Applications of Baggett Bulk Transport, Inc.; J. & M. Trans* porttion Company; Petroleum Carrier Corporation and Schwerman Trucking Company for authority to increase rates on cement

Withdrawn

15th Supp. 9508- A
l4th Supp.
9509- A

7-16-64

Modification of prescribed petroleum rates to include origin of Augusta

Point-to-point rates prescribed from this origin

565-R

7-31-64

Application of Railway Express Agency, Inc., for authority to discontinue the express office at Fargo

Approved

2688-M

7-31-64

Application of Brown Transport Corp. and Watson-Wilson Trans portation System for authority to establish reduced lesstruckload rates on incandescent electric lamps and photo flash lamps

Denied

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FORMAL CASES FOR YEAH 1964 (Continued)

Docket No. Date

2725-M

7-31-62+

Subject
Application of National Motor Freight Traffic Association, Inc*, for authority to increase ratings on certain textile products to interstate level

Disposition
Postponed at re quest of appli cant pending re view of inter state ratings

574-R

8-10-64

Application of Central of Georgia Railway Company for authority to discontinue agency service at Bowdon Junction and to discontinue handling less-than-carload freight at that point

Denied

570- R

10-1-64

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

Approved

571- R
572- R

10-1-64

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

10-1-64

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

Approved Approved

573- R

10-1-64

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

Approved

577-R

10-1-64

Application of Atlantic Coast Line Railroad Company for au thority to discontinue agency service at Manor

Approved

57-R

10-1-64

Application of Southern Railway Company for authority to dis continue agency service at Rex; to discontinue handling lessthan-carload shipments at that point and to dismantle the station building at Rex

Approved

-16-

FORMAL CASES FOR YEAR 19&U (Continued)

Docket No Date

Subject

Disposition

Uth Supp.
2197-M
22U6-M

10-28-6U

Application of motor carriers of liquid petroleum products, in bulk, for modification of incentive rate plan on these products to permit commingling of intrastate and interstate traffic

Approved

579-R

H-U-6U

Application of Southern Railway Company for authority to dis continue agency service at Powder Springs, to discontinue handling less-than-carload freight at that point and to dismantle the station building at Powder Springs

Approved

580-R

H-U-6U

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

Approved

582-R

H-.I4.-6U

Application of Railway Express Agency, Inc., for authority to discontinue the express office at Surrency

Approved

583-R

Il.l4.-6U

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

Denied

585-R

H-U-6U

Application of Central of Georgia Railway Company for authority to retire and remove a portion of its spur track and side tracks located in its Thomaston District, principally serving the Thomaston Peach Growers Association, including the Thurston & Smith Siding and High Hill Siding

Approved

2708-M

H-U-6U

Application of Class "A" Motor Carriers of Property for au thority to increase rates on metal cans

Approved in part

-17-

FORMAL CASES FOB YEAH I96U (Continued)

Docket No. Date

Subject

Disposition

58I-R
5th Supp.
2197-M 22^+6-M
1st Supp.
2288-M

11-17-61+
11-23-61+

Application of Seaboard Air Line Railroad Company to consolidate the agency of McRae with the Helena agency and to place its facilities and service at McRae on a non-agency prepay basis for the handling of carload freight only
Application of motor carriers of liquid petroleum products, in bulk, to cancel volume incentive rate plan authorized in Docket 2288-M and to modify volume incentive rate plan au thorized in Dockets 2197-M and 221+6-M to effect rate reduction Of 6$

Approved Approved

15th Supp. 11-23-61+ 9509-A
6th Supp.
2197-M 22U6-M

Application of motor carriers
of liquid petroleum products,
in bulk, for authority to con
vert existing rates per 100
pounds into rates per gallon

Approved

586-R
5^9-R

12-11-61+

Application of Atlantic Coast

Approved

Line Railroad Company for au

thority to discontinue as

stops for its passenger trains
numbers 180 and 189 the Georgia

stations of Manor, Argyle, Dupont

Brinson, Stockton, Naylor, Dixie,

Iron City, Saffold, Boston, Pine

Park, Whigham and Jakin

12-17-61+

Application of Georgia Railroad for authority to discontinue agency service at Crawford

Denied

556-R

12-17-61+

Application of Southern Railway Company for authority to dis continue agency service at Temple, to discontinue hand ling less-than-carload freight at that point and to dismantle the station building at Temple

Denied

FORMAL CASES FOR YEAR 1964 (Continued)

Docket N o . Date

Subject

Disposition

557-R

12-17-64

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

Denied

575-R

12-17-64

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

Denied

5T6-R

12-17-64

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

Denied

Non-Docket 12-22-64

Amendment of General Motor Carrier Rules and Regulations Nos. 12 and 2 to retain North Atlanta, Chamblee and Doraville in the motor carrier pick-up and delivery area of Atlanta after dissolution of North Atlanta as incorporated municipality

Rules amended

-19-

BUS FARES AND SERVICES
At the end of 1964 there -were 4l bus lines operating under the jurisdiction of this Commission providing intercity service between points in Georgia. It is interesting to note that this is only about one-third of the number of bus lines operating in the State immediately following the end of World War II - the automobile shortage of that war-time period having fostered the establishment of numerous small short-haul bus lines to substitute for private transportation. A few of these small lines have survived in spite of substantial decline in patronage and they, together with our major bus lines, today furnish excellent bus service to the State.
For the third year in succession, 1964 saw no general increase effected in the State1s basic bus fare structure. There is pending, however, an application filed in August by the 11 principal carriers within the State seeking an increase in their regular one-way and round trip fares of 10 per cent above the existing intrastate passen ger fare level of 2.75 cents per mile approved by the Commission in
1961. Due to calendar difficulties no hearing was held on this appli
cation during 1964 - the matter to be resolved early during next year.
There were a few minor fare adjustments on individual lines during the year, the principal one being that on the line of Southern Transit, Inc., between Macon and Warner Robins. This line sought to increase its one-way cash fare between Macon and Warner Robins from 35 to 4-5 cents; to increase its other one-way fares by 5 cents each and to increase its 10-ride commuter books between Macon and Warner Robins from $3.00 to $3.50; and, in addition, to apply half of those increases on its school fares. Following hearing and receipt of sub stantial protest against the proposed 10 cent increase in the MaconWarner Robins cash fare, the Commission authorized the increases sought with the exception that it cut the proposed increase in the MaconWarner Robins cash fare in half, finding that any revenue gain from the proposed 10 cent increase in that fare would be substantially off set by diminution in the number of passengers using such service. The entire fare increase was made subject to improvement in equipment of this carrier, particularly correction of the mechanical defects found in its "worker special" buses.
Two other fare increases on small lines were authorized during 1964 - both in an effort to provide for the financial solvency of small carriers who render important service in their areas. In June the Commission authorized Carrollton-LaGrange Bus Line to increase its fares by 10 cents per ride. In July authority was granted to Pennington Bus Line to increase its token fare from 8 to 6 tokens for $1.00 and cash fare from 15 cents to 20 cents, with no change in this line's school fares.
As pointed out in last year's report the Commission in 1963 au
thorized an increase in the commuter fares of Smoky Mountain Trailways 9 Southern Greyhound Lines and Tamiami Trail Tours, Inc., to 1.75 cents per mile with a minimum commuter fare of 18 cents per ride. In February of this year the Commission authorized two more competing carriers, Tennessee Trailways, Inc., and Continental Trailways, to similarly in crease commuter fares on their lines.
- 20-

TRUCK RATES
At the end of the year there were 578 truck lines operating under the jurisdiction of this Commission providing intrastate trans portation of property between points within the State of Georgia. Of this number, 33 were fixed route common carriers of property (Class A); 4o6 were irregular route common carriers of property
(Class B); 73 were contract carriers of property (Class E) and 66
were cartage type carriers providing common carrier service in metropolitan areas. All of these carriers are subject to rate regulation by the Commission and have rates on file with the Com mission in one or more tariffs* These tariffs are frequently modified and the continuing inspection and review of such publi cations constitute a major item in the duties of the Transportation Rates Division. As pointed out in last year's report, the smaller Class "B" carriers had long experienced difficulty in complying with the tariff regulations of the Commission and the Commission during last year undertook to itself prepare a tariff in which such Class "BM carriers could participate, thereby providing rates for those carriers who had no facilities for preparing tariffs of their own. As of the end of this year there were 109 such carriers using that tariff. The Commissions publication was not intended as a continu ing project, but principally was to educate the smaller carriers in the use of a proper tariff publication and to serve as a guide for later publication by such carriers of their own tariffs. Already a number of the carriers originally participating in this tariff have published their own individual tariffs.
During the year there were several efforts on the part of the motor carriers of liquid petroleum products, in bulk, to revise their rates to prevent the continuing diversion of this traffic to private
transportation. There was extensive review in the Commission's 1962
report of the volume incentive rate plans proposed by these carriers and approved by the Commission as a means of meeting private carrier competition. During 1964 these carriers found several modifications in these volume incentive rate plans necessary to meet different aspects of continuing competition in the field and to adequately protect revenues earned by the carriers under such plans.In February the tank carriers sought modifications to permit the application of the incentive rates on a broader list of liquid petroleum products and to provide for the application of the incentive rates on loads picked up in the vicinity of the original destination for delivery in direction of the terminal location where the equipment was domi ciled. Both of these proposed modifications were approved by the Commission as being necessary to give the incentive rate plans an adequate trial. In October the Commission authorized a further modification to permit commingling of intrastate and interstate traffic. This modification was sought principally to provide for such commingling at the Georgia border petroleum shipping origins of Augusta, Savannah and Port Wentworth - it being claimed by the carri ers that where a shipping point was on or near the border of two States, the traffic therefrom moved into both States and in order to give a shipper located at such points reasonable opportunity for sufficient volume to utilize the incentive rates, it was necessary to
- 21-

provide for such commingling. The Commission in its approval of this modification required the extension of the privilege to all petroleum shipping origins rather than to just those located on the GeorgiaSouth Carolina border. In November the Commission permitted the tank carriers to substantially revise the entire petroleum products volume incentive rate structure, cancelling the plan authorized in Docket 2288-M (known as Plan "B") and modifying the plan authorized in Dockets
2197-M and 22U6-M (known as Plan "A") with the principal such change
in Plan "A" being a reduction of approximately E 9 in the applicable rates. These changes in the tank truck carriers* volume incentive rate plans were supported by the shippers of these products in Georgia and it appears that the remaining plan as now modified will go far in preventing further diversion of this traffic to private carriage.
During the year there were also two changes authorized in the basic rate structure applicable on these liquid petroleum products in bulk. The Commission was advised of the prospect of movements of these products from Augusta from which origin point-to-point rates had not been prescribed as had been done from all other petroleum shipping origins in the State. Accordingly, in December point-topoint rates were prescribed from Augusta to points in the State
within the scope of the 200 mile coverage of the rates prescribed in Dockets 9508-A and 9509-A.
Associated Petroleum Carriers, in order to permit mechani zation of its billing operations, requested during the year that the Commission authorize for application in connection with all its rates on liquid petroleum products a conversion table to convert
rates previously prescribed in cents per 100 pounds to cents per
gallon. It was pointed out that the gallon measure was used in the production, pipe line transportation, storage and sale of these commodities and that use of rates based on such units would simplify computation of transportation costs by both shippers and carriers. Upon being advised of the support generally of the petroleum industry for such a conversion table and the concurrence of the other two principal liquid petroleum products haulers, the Commission in December authorized such a conversion table. It subsequently developed, however, that controversy arose, both between the carriers and between some carriers and some shippers, as to the mandatory application of such conversion table and the number of decimal places to be used in such conversion table - such controversy continuing until the end of the year with result that a conversion table has not yet been published.
Two of these tank truck carriers were also involved during the year in another incentive rate plan - this involving the movement of caustic soda from Brunswick to Doctortown and St. Marys. In last year*s report there was reviewed the initial establishment of the volume incentive plan on this traffic with that plan authorizing
a rate of 7 cents per 100 pounds, based on tender of a volume
adequate to justify round-the-clock operation by the carriers. In February Petroleum Carrier Corporation sought authority to remove
n.n the incentive provisions from the 7 cent rate and to make that
rate applicable on any caustic soda movement from Brunswick to
- 22-

Doctortown, minimum 3500 gallons, without regard to hours of operation and number of loads. In consideration of protest by a competing hauler, Fleet Transport Company, Inc., the Commission assigned the application for public hearing, at which it was developed that an actual loss would be incurred at this rate with the volume incentive requirement removed. In addition, it was developed at the hearing that the competing destination of St. Marys desired the same rate as available to Doctortown and in consideration of both these factors the Commission declined to approve the proposed elimination of the incentive feature without prejudice to the submission by the
applicant of modification of the 1963-approved volume incentive
rate plan applying on this traffic which would insure a volume sufficient to properly sustain the operation and which would provide for the same treatment to St. Marys.
In June Petroleum Carrier Corporation submitted such a modifi
cation proposing that the rate of 7 cents per 100 pounds be made
subject to a tender of three loads per day, subject to minimum of 3500 gallons per load,with such rate to apply not only from Brunswick to Doctortown but also to St. Marys. The receivers at both Doctortown and St. Marys supported this modification and the Commission approved such a change and concurrently authorized the railroads to
meet the competition by establishment of a single car rate of 1^-0
cents per net ton to Doctortown (and to Rosser - the Southern Railway designation of the same plant location) with the understanding that the same rate would be established from Brunswick to St. Marys, provided the railroads could agree upon mutually satisfactory divisions thereof.
In June of this year other tank truck carriers - those trans porting cement in pneumatic type tank trucks - filed with the Com mission tariff seeking substantial increase in rates on the trans portation of cement in bulk. Due to opposition from some shippers, and to disagreement among the carriers involved, that application was withdrawn prior to hearing. Later in the year three of the same carriers filed another application for a somewhat modified increase in rates on these products, which again was assigned for hearing due to the increased charges contemplated. Some of the competing carri ers, however, did not seek this latest increase proposed in rates on these commodities and the three applicants requested that the matter be held in abeyance pending further negotiations between the carri ers and between the carriers and interested shippers. The Commission desires that a uniform basis of rates be maintained on these com- ^ modities for the protection of the shippers of this highly competitive commodity and to prevent a destructive rate war between the carriers. Unfortunately, however, such will not be possible with the application as it now stands and it is hoped that some agreement can be reached between the parties to avoid the necessity for the Commission pre scribing maximum and minimum rates on these commodities to stabilize the rates thereon.
The fixed route motor carriers of property were involved in only three formal rate proceedings during the year. The first involved an application by Brown Transport Corp. for reduction in less-truckload
-23-

rates on electric incandescent lamps and photo flash lamps from Column 150 to Column 125. In consideration of vigorous protests by four competing carriers, the Commission assigned the matter for public hearing, at which it was developed that even though the application was filed as a rail competitive adjustment, no ship ments were shown to have moved in Georgia via rail freight and that the motor carrier rates in surrounding States were on sub stantially the same basis as already in effect in Georgia. In con sideration of these factors, together with the lack of evidence in the record to show justification for the proposal from a carrier cost standpoint, the Commission, in spite of its reluctance to deny any proposed reduction in transportation charges, declined to ap prove the application, but made such denial without prejudice to re opening of the proceeding for consideration on a more complete factual basis.
Since January, i960, there has been published by the Class A
motor carriers of property rates on metal cans from Atlanta and Forest Park which were established as result of agreement between the Class "A" carriers, the can manufacturers involved and their two contract carriers following application of those contract carriers for au thority to transport these cans intrastate in Georgia under common carrier certificates. While the transportation of these cans was to be for account of the can manufacturers and were thus essentially contract carrier operations, the provisions of the then-effective law requiring that contract carrier rates be the same as common carrier rates, made common carrier status with its relative freedom of initiation of rates desirable, if not necessary, for the can producers. As result of extensive negotiations, agreement was reached between the parties whereby contract carrier certificates would be sought with the Class "AM common carrier protestants in that proceeding to publish rates then acceptable to all parties. The Commission, in recognition of this agreement, issued the contract carrier certificates to the two carriers involved and the publication of the agreed-upon rates was concurrently made.
From time to time additional rates were established on the same level to additional consuming destinations. It should be pointed out that the rates so established were a compromise between a lower level proposed by one of the contract carriers and supported by one of the affected shippers, and a much higher level advocated by - and then effective via - the common carriers. It was mutually understood that the shipments of cans would require special equipment and for that reason, coupled with the level of rates being lower than considered remunerative by the common carriers, the bulk of the traffic would move via the contract carriers.
For reasons not clearly demonstrated to the Commission, however, a greater than anticipated volume of cans has moved by the common carriers. Several of those carriers reported experiencing considerable difficulty with delay in unloading of trailers at some destinations and following review of that difficulty with the can manufacturers tariff provisions were published providing detention charges for unduly de layed unloading. Further complaints were heard from some carriers that even this provision did not prevent substantial delays in such
-2k-

unloading. The Class "A" motor carriers filed application contending that the rates were non-compensatory in and of themselves without consideration of the unloading problem, and sought authority to cancel those rates and to publish in lieu thereof rates averaging h M higher. One such Class "A" carrier. Brown Transport Corp., sought authority not only to cancel the existing rates but to make applicable via its line class rates on this traffic which would be even higher than the rates sought by the other Class "A" carriers.
In June of this year public hearing was held on this application at which both the carriers and users of the metal cans presented ex tensive testimony and evidence.
One of the principal concerns of the protestants appeared to be the feared effect of the proposed increased rates on the equalization in the cost of the cans to the receiver where cans were shipped from an interstate origin - that equalization apparently being based on the cost of delivery at the truck rate from the point nearest to the consumer at which is manufactured the specific type of can ordered. The protestants feared that an increase in the common carrier rates would affect such equalization either immediately because of the in crease in the common carrier rates or potentially if the contract carrier rate structure were affected by an authorized increase in the common carrier rates.
There was no participation in that proceeding by the two con tract carriers authorized to transport these cans and consequently the Commission found that its decision in the case could have no direct effect on the rates of those contract carriers - the Georgia law no longer requiring that common and contract carrier rates be the same. The Commission specifically held that any future increase in contract carrier rates on these articles would have to be initiated by those carriers and justified by those carriers on the basis of their own operational needs - at a public hearing, if there were any opposition thereto.
So far as concerned the equalization practices of the can manufacturers, the Commission found that such was an industry practice apparently completely under the control of the individual manufacturers and used where considered necessary by them to meet competition. The Commission found every reason to believe that even if the common carrier rates were increased the equalization adjust ments would continue to be made the same as then done - using the published contract carrier rates as a basis since those rates would still reflect the true competitive position of the can manufacturers. It was pointed out if such were not done, it would indieiate that competition was not the real factor in the equalization practice and that such equalization would vary regardless of the comparative level of rates.
The Commission recognized the justness in the contention of the common carriers that the rates there at issue were not based on their cost of operations to begin with and were, in effect, forced upon them under conditions no longer applicable and with an under standing as to use of the rates which had not been observed by those
-25-

party to such agreement. The rates there at issue were found to be far lower than any other common carrier rates on the same com modity anywhere in the South and the Commission was convinced that some adjustment should be made therein*
Most of the rates involved in this proceeding were found to be merely "paper" rates that did not move traffic - there being no show ing by the protestants that any traffic had ever moved via common carriers under the rates to points other than Concord} Eastman, Griffins Haddock and Zebulon. Under such circumstances the Com mission could see no objection to the increase in the rates to the other points and so permitted - emphasizing that the existing rates would still be available to the shippers and receivers of these cans via the contract carriers - the carriers apparently then handling the traffic to those points if any such traffic was moving.
However, there was showing by the protestants of movements of cans via common carrier to the above-mentioned five points - although very little traffic to Eastman and Zebulon. While there was ample indication that the common carrier rates on cans in general were depressed, there was not sufficient probative evidence in the record to specifically justify the level of the proposed rates to those points of actual movement. Accordingly} the Commission did not, on the record made, permit any change in the rates to those five points.
A most unusual situation developed during the year concerning the class rates of the Class "A" motor carriers of property. There was filed - purportedly for account of those carriers - supplement to the National Motor Freight Classification which undertook to in crease ratings applicable on certain textile products moving between points within the State of Georgia. A number of the very carriers for whom these increased ratings were purportedly filed objected to the proposed increases, stating that such filing was controlled by a national group, and that while they were represented on that group, such filing had been made over their protest. A number of protests were also received from shippers of these commodities in Georgia, and in consideration of this unusual circumstance the Commission refused to permit the increased ratings to become effective without justifi cation therefor at public hearing. While the publisher of the National Motor Freight Classification indicated that the proposed increased ratings would be defended at such public hearing, request was made that such hearing be postponed pending review of the situation by the National Board. It should be pointed out that substantially the same situation in connection with these ratings existed in the other States in the South and that substantially the same action was taken by the regulatory bodies within those States.
The Commission for some time had been concerned over a defect in the tariff of the principal household goods carriers that pro vided for a substantial and unjustifiable difference between the
charges for hourly moves (for distances up to 20 miles) and charges for the first block of the distance rated moves (21-30 miles) - the charges for a 21 mile move often being almost twice as much as charges
for a comparable 20 mile move. In April, in response to urging of
-26-

the Commission that something he done to adjust this situation, the Georgia Household Goods Tariff Bureau sought modifications in the rules, regulations, charges and rates in its tariff de signed to remove this inequity and to adjust those rates to better suit the revenue needs of the carriers involved. Following full public hearing, the Commission authorised the proposed tariff changes with a modification in that proposal to reduce the inequity pointed out above more fully than had been proposed by the carri ers. The overall increase in charges approved in this proceeding
amounted to 3 .82$, an amount adequately justified by increased
wage costs and increases in cost of materials and supplies incurred by these carriers.
By order dated April 30, 196U, the Interstate Commerce Com mission prescribed for application on interstate traffic through out the country revised and additional rules governing the practices of motor carriers of household goods - those new rules designed to eliminate many of the objections of the shipping public to the practices of those carriers. Principally among the changes pro posed was better regulation of the determination of billing weights, forbidding of selling of insurance by the carriers, stricter regulations concerning provisions of estimates and in crease in carrier liability to 6o cents per pound per article. Recognizing that application of the proposed rules in Georgia (with appropriate modifications to fit conditions in the State) would eliminate many of the complaints received against this in dustry, the Commission on May 28 issued a Rule Nisi against all motor carriers of property authorized to transport household goods between points within the State of Georgia to show cause why the Commission should not prescribe for application on Georgia intrastate traffic the same revised and additional rules as prescribed by the Interstate Commerce Commission. Hearing was
set on this Rule Nisi for July 16, but prior to the hearing it
developed that the Interstate Commerce Commission was reconsidering some of its prescribed rules, and in order to permit final determi nation by that body of its action in this field before initiating local action in Georgia, hearing was delayed. At the end of the year the Interstate Commerce Commission had still not completed its review of its rules.
The commercial zones and terminal areas of stations located on the routes of motor carriers of property operating under Class "A" Certificates have for some time been delineated by the Com mission's Motor Carrier Rule 12 as follows:
''Motor Carriers of Property operating under certificates Class "A" will be required to provide pick-up and delivery service, and will be authorized to provide local intra-area service, in the commercial zones and terminal areas of all stations located on the routes described in said Class "A " Certificates; com mercial zones and terminal areas are defined as being all points or places within a municipality, or be tween contiguous municipalities with connecting city
-27-

limits, or within two highway miles of the limits of such municipality, or contiguous municipality or municipalities, or within two highway miles of the Post Office of any unincorporated community".
Under this rule, the motor carriers serving Atlanta provided, for a number of years, pick-up and delivery service, as well as local intra-area service, to a large metropolitan area consisting not only of Atlanta but of the several municipalities whose city limits are contiguous to each other. Included among such contigu ous municipalities have been the village of North Atlanta and the towns of Chamblee and Doraville.
The corporate existence of the village of North Atlanta will
terminate on February 2, 19&5? in accordance with the provisions of
an Act entitled "Village of North Atlanta - Charter Abolished", en acted by the General Assembly of the State of Georgia and approved
by the Governor on June 30, 196k. With such termination of in
corporation the string of towns and villages whose city limits were contiguous will be broken and the towns of Chamblee and Doraville will be separated from the City of Atlanta by an unincorporated area - thus removing those towns (as well as that portion of the North Atlanta area more than two miles from the Atlanta city limits) from the pick-up and delivery limits of Atlanta and from the area in which local intra-area service may be performed by the Class "A" carriers.
There are numerous industries and other shippers and receivers of freight in the Chamblee-Doraville-North Atlanta areas which would be severely adversely affected by the elimination of the Atlanta pick-up and delivery services. The Georgia Motor Trucking Association, on behalf of the Class "A" motor common carriers of property, sought from the Commission such amendment to Motor Carrier Rule 12 as would continue these areas within the Atlanta pick-up and delivery limits and thus avoid disruption of service in those areas. The Commission was fully sympathetic with the need for continuation of this important service and in view of the desire of both the public and the affected carriers for such continued service amended its rule to so permit. As the foregoing conditions applied equally to the residential, commercial and industrial areas served by holders of Class "C" Certificates, Rule 2 was also amended to prevent interruption in the service of these carriers in the Atlanta metropolitan area.
-28-

RAILWAY EXPRESS
In December of last year the Railway Express Agency filed application seeking approval of an increase of twenty-five cents per shipment of one or more packages moving between its stations within the State of Georgia - such proposed added charges to not apply on shipments weighing 100 pounds or less moving under the provisions of Railway Express Agency General Package Tariff, Ga.P.S.C. 3^5. Following public hearing, at which there were no protests, and in view of the showing of the Express Agency at that hearing of substantial cost increases incurred in the modern ization of its facilities and services necessary to reestablish the Express Agency as a sound and useful part of the nation*s transportation system, the Commission authorized the increase sought* It should be pointed out that the exception to the increase as to small shipments resulted in such increase not applying to 82,2blo of the total Railway Express traffic moving intrastate within the State of Georgia.
During the year there were two expansions of Railway Express Agency pick-up and delivery limits in which small communities were incorporated in the pick-up and delivery service of larger towns, thereby substantially improving such service to the smaller communities. Chattahoochee was incorporated into the Atlanta delivery limits and Zebulon was brought into the pick-up and delivery limits of Griffin. In addition, the Express Agency began handling traffic to and from West Point through its office at Lanett, Alabama - the Commission permitting such operation subject to the understanding that intrastate traffic to and from West Point not be converted into interstate traffic because of this consolidation of pick-up and delivery operations.
The Express Agency continued during the year to close its local offices at the smaller towns. As in the past, most of such applications were filed because the railroads had filed appli cations 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 Bartow, Bowersville, Davisboro, Hampton and Powder Springs but the need shown for railroad agency operations at Gray and Temple resulted in the contingent express applications involving those points being denied.
Separate applications were made to close the express offices at Fargo, Surrency and Sycamore. The Commission found that the dis continuance of passenger train service to Fargo, coupled with the comparatively small use of express service at that point, justified the closing of the Fargo office and found that there was insufficient need for the office at Surrency to justify the cost of retention of that office and approved those two applications. However, it was found that the need of Sycamore and the surrounding trade area did
-29-

not permit the closing of the office at Sycamore.
There was one application filed to consolidate express offices - that being to permit one agent to handle the express offices at Climax and Whigham in the same manner the agent handled the duties of the Atlantic Coast Line Railroad agencies at those points. The Commission approved both the consolidation of the railroad agencies and the express offices in this instance.
RAIL PASSENGER SERVICE
During the year there were two train discontinuances effected in the State of Georgia under the provisions of the Transportation Act of 1958 which permitted the railroad involved to discontinue such services without prior authority from this Commission. ^These discontinuances (both by the Southern Railway) involved the Kansas City-Florida Special" between Jesup, Georgia and Jacksonville, Florida and the "Ponce de Leon" between Council, Georgia and Jacksonville, Florida. There was no intrastate service performed between these points and the Southern Railway discontinued operation of the trains without notice to this Commission or to the public, and while there was some protest, it apparently was insufficient to cause the Interstate Commerce Commission to invoke the hearing re quirements of the Transportation Act of 1958 because no such action was taken.
During the year* the Southern Railway did seek authority from
this Commission to consolidate its passenger trains Nos# 30 and 38
and its trains Nos. 29 and 33 operating between Atlanta and the Georgia-South Carolina State Line (en route to and from Washington, D.C.). The proposal contemplated consolidating train No. 30 with
train No. 38 (the northbound "Crescent") on the existing schedule^
of the northbound "Crescent" with coaches to be added to the consist of that train. Southbound train No. 33 was to be consolidated with
train No. 29 on the existing schedule of train No, 29. Simultaneous
adjustments were to be made in the schedule of Southern Railway passenger train No. 3^+ to accommodate passengers for destinations
then served by passenger train No. 30 and where train No. 38 was
not scheduled to stop. No objection was received from the traveling public concerning this application, although subsequent protest was received from the railway labor unions whose members operate the trains in question and who would suffer the loss of several crew positions. The Commission found that the addition of coach equipment to the consist of the northbound "Crescent" would provide improved service for northbound coach passengers, and in consideration of that improvement and of the facts that the consolidated trains would operate at substantially the same time as the existing trains and that no Georgia town would be deprived of railroad passenger service, approved such consolidation and schedule change to become effective not earlier than November 1.
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During the year the Atlantic Coast Line Railroad Company also sought consolidation of some of its trains - this involving their crack "East and West Coast Champion" trains operating "between Savannah, Georgia and Jacksonville, Florida. The proposal there sought was to consolidate these two sets of trains (which operate "by different routes between Jacksonville and Savannah through southeast Georgia) on those days during the off-peak summer season when traffic was insufficient to warrant operation of two sets of trains. The only town in Georgia appreciably affected was Nahunta and in consideration of the absence of objection from that town and its officials, and subject to the provision of substitute service between Nahunta and Waycross for passengers traveling between Nahunta and Jacksonville on these trains, the Commission approved the proposed consolidation.
The Atlantic Coast Line Railroad's passenger trains Nos* 180
and 189 are the last East-West passenger trains operating across
the southern part of the State of Georgia. Traffic has been de clining on these trains for a number of years and effective July 3 of this year the Post Office Department removed the mail from these two trains, thus further affecting their operating revenues and reducing the need for stops at a number of points where such stops had been primarily for the handling of mail. In an effort to improve the passenger services of these trains and to avoid possible dis continuance thereof due to mounting losses, the railroad sought late in the year to discontinue its scheduled stops at Manor, Argyle, Dupont, Brinson, Stockton, Naylor, Dixie, Iron City, Saffold, Boston, Pine Park, Whigham and Jakin, and to concurrently speed up the schedule and add more modern equipment which would be operated through to northern points beyond the existing terminus of these trains at Waycross. Although the Commission assigned the matter for public hearing, there were no protests received and on the contra
ry there were ^2 letters received from individuals and organizations
in the south Georgia area traversed by these trains supporting the proposed new service and advocating approval by the Commission. Under such circumstances, and in consideration of the additional fact that substitute provisions would be made for the handling of express to the affected stations, the Commission permitted the dis
continuance of these stops, effective December l6.
Many of the railroad passenger depots in the State were built during the heyday of railroad passenger train travel which, of course, has long since passed, and some of those stations are now outmoded and in bad need of repair. Among those was the Atlantic Coast Line Railroad passenger station in Fitzgerald and during the year that railroad sought authority to relocate its passenger station at that point and to consolidate its passenger and freight operations at a new site in Fitzgerald. Upon indication of support of the new con struction by the City of Fitzgerald, the Commission approved that application.
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RAIL FREIGHT
There was comparatively little formal action concerning intra
state railroad freight rates during 196^. While there were many rate
changes effected during this year, most of such changes were supported by the shippers involved and not opposed by competing modes of trans portation, Consequently, most such rail freight rate changes were handled informally, subject to complaint.
As mentioned hereinbefore in the Truck Rate Section of this Report, there did arise during the year a problem concerning the rates on caustic soda from Brunswick to Doctortown (Rosser)and St. Marys. As there outlined the Commission eventually approved a modification of the motor carrier incentive rate on this traffic with the extension of that rate to the competing destination of St. Marys and in order to permit the railroads to effectively compete for this traffic the Commission at the same time removed from the railroad rate on this traffic the former requirement that such traffic must move in multiple three-car lots. The resultant appli cation of the rate on single car movements of this traffic satisfied the shipper at Brunswick, the receiver at Doctortown (Rosser)and the railroads, while acceptable to the competing motor carriers. A pro vision of the order in these cases required that efforts be made by the railroads to agree on extension of the rate to include the competing destination of St. Marys.
The railroads continued their efforts to discontinue pick-up and delivery service at the smaller towns where the cost of providing such service was not justified by the use being made thereof. After such showing at hearing, in May the Georgia Railroad was permitted to cancel its pick-up and delivery service at Sparta, Georgia. While retrenching as to pick-up and delivery service in the smaller towns, the renewed efforts of the railroads to recoup freight from the truck lines, particularly in the field of piggyback operations, has resulted in efforts to broaden the pick-up and delivery limits in the major cities. In many instances such new pick-up and delivery operations go beyond the limits generally recognized for such services and during the year it was necessary to so restrict the pick-up and delivery operations of the Atlantic Coast Line Railroad in the Atlanta area.
For many years the railroads have been dissatisfied with the revenues obtained from the provision of terminal switching services, particularly where the industries involved do not substantially use other railroad services or where the movement is in special equip ment of considerable investment cost. During the year several of the railroads proposed to amend their switching tariffs to provide that they would not be obligated to furnish equipment for handling traffic in intra-plant, intra-terminal and/or inter-terminal switch movements and that they would permit the use of cars in such services only at their convenience. The Commission was of the opinion that such a restriction in services violated the common carrier duties of the railroads and accordingly advised the affected carriers that
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such a tariff provision would not be permitted to apply on Georgia intrastate traffic. The Commission did recognize, however, that a railroad should not be required to furnish special equipment for these types of services and permitted a tariff amendment containing such restriction.
HAIL AGENCY SERVICE
The railroads continued to seek authority to discontinue their agency services at the smaller stations - either due to declining revenue from such stations or to change in consist of traffic to and from such stations to such as does not necessarily demand the services of an agent. This year the Commission processed 15 such applications and, as is its established custom, adhered to the policy of deciding those applications on the need for and use of the services rather than solely on the statistical showing of
revenue versus cost. Of these applications processed during 19ob
the Commission found that the public convenience and necessity of the affected areas would not be adequately served without agency service in four instances and accordingly denied authority to dis continue agency service at Bowdon Junction, Crawford, Gray and Temple. Authority was granted to discontinue agency service at Aragon, Bartow, Bowersville, Davisboro, Hampton, McRae, Manor, Powder Springs, Rex, Scotland and Woodstock.
There was one application filed during the year seeking au thority to establish dual agency operations under a single agent. Upon showing at public hearing that the proposed dualized service would adequately serve the public, the Commission permitted the Atlantic Coast Line Railroad Company to dualize its agent at Climax with its agency at Whigham.
INSPECTION OF WRIGHTSVILLE & TENNILLE RAILROAD COMPANY
During the early part of the year the Commission received continuous complaints from shippers located on the Wrightsville & Tennille Railroad concerning the recurring interruptions in service on that line. Inspection was made of the railroad to seek to determine the reason for the numerous derailments, the nature and extent of any defects in facilities and what steps would be necessary to remedy any defects so found. It was found that the derailments had been largely caused by the poor con dition of the roadbed and track, which in turn was due to poor drainage and badly surface-bent rail. The drainage problem on the line, bad to begin with, had been seriously worsened by the
heavy rainfalls during the first ^4 months of 19^ with the re
sultant undermining of the roadbed in locations with the worst drainage features. Some portions of the line were found to be in comparatively good condition for this type of short line branch railroad, but a substantial portion of the line, par ticularly between Tennille and Wrightsville, was found to need
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extensive renovation in order to give reasonable assurance of un interrupted service. The officers of the line had obviously been doing the best job they could with the limited facilities and materials at hand, but more materials and heavier equipment were absolutely required for satisfactory renovation. The Central of Georgia Railway Company (which controls the Wrightsville & Tennille Railroad) undertook to supply both additional needed materials and needed equipment, and renovation activities were stepped up and satisfactorily completed during the year.

WESTERN & ATLANTIC RAILROAD

The annual report of the lessee of the Western & Atlantic Railroad for the calendar year 1964 shows for the net expenditures charged to the accounting classification "Additions and Betterments" by classes of railroad property, the following amounts:

Improved Track M a t e r i a l ............ Replacement and Additional Ballast ., Bridges, Trestles and Culverts ...... Yard Tracks and Sidings ........ . Station and Office Buildings ........ Roadway Buildings ........ Communication S y s t e m s .... .......... Signals and Interlockers ........... Grade Crossings ......

$ 12,884.55
2,055.24
6,241.67
33,962.67 9,581.37
207.88 3 ,715.68
1,099.14
20,507.72

The above net additions reported are after deduction for value of
property replaced during the year and total $90,255.92. The net
capital expenditures made by the lessee for additions and improve
ments to the Western & Atlantic Railroad from the beginning of the
lease in 1919 through December 31, 1964, amount to $8,267,188.

There was discussed briefly in last year's report the activi ties of a committee of the General Assembly investigating the State's leased property, including that of the Western & Atlantic Railroad. As result of recommendations of that committee the General Assembly during 1964 enacted a law providing for a new State Real Properties Control Commission which, among other duties, was given jurisdiction over the property of the Western & Atlantic Railroad, as well as over the state-owned hotel properties in the City of Chattanooga, Tennessee, which once was a part of the W&A terminal facilities in that city. The new statute provided for the concurrent abolish ment of the existing Western & Atlantic Railroad Commission and the State Properties Commission. The Chairman of the Public Service Commission was a member of those two Commissions and, under the new law providing for the eleven member State Real Properties Control Commission, was included on that Commission. The new law did not supersede the Lease Act of 1915 under which the current lease of the Western & Atlantic Railroad property was consummated and the Public Service Commission charge under that 1915 statute of super vising the operation of the Western & Atlantic Railroad by the lessee continues in effect.

As part of its duties under that charge, the Commission during the year investigated the potential effect on the operations of the Western & Atlantic Railroad of a proposal hy the City of Atlanta to extend Wall Street from its present terminus at Peachtree Street northwestwardly to juncture with existing on and off ramps of the new Techwood viaduct. Extensive investigation by the Commission's staff developed that any approval of this extension would create serious operating difficulties on the Western & Atlantic Railroad tracks serving the Union Station due to traffic conditions at the new intersection of Wall Street and Fairlie Street causing vehicles to be backed up over the tracks at that point. Specific recommendations concerning the effect of this proposed street extension on the operation of the railroad in this area included (l) that con sideration be given to closing of the crossing of Fairlie Street across the railroad tracks under the Union Station; (2) that some type of warning signals be erected to prevent automobiles moving in the northbound lane of the extended Wall Street from colliding with railroad cars which would be parked during night-time hours on spur tracks remaining in Wall Street; and (3) that suitable curbing be installed on the station side of the extended Wall Street to prevent motor vehicles from entering the railroad rightof-way. At best, the extension of this street in this area will cause some interference with railroad operations, but the effectu ation of the above recommendations would substantially reduce that interference and permit an extension of a street which the City of Atlanta apparently feels is badly needed.
PARTICIPATION IN INTERSTATE TRANSPORTATION CASES
This Commission, together with the other Southern State Com missions and the Southern Governors' Conference, continued during
196k participation in proceedings involving reduced railroad rates on grain shipped in multiple car lots of not less than U50 tons.
During the year these rates were subjected to court attack both by opposed carrier interests and by the Interstate Commerce Commission, the latter seeking to overturn before the Supreme Court a decision of a lower Federal Court that had held null and void that Commission's orders prescribing increase in these rates. This Commission joined with the other Southern State Commissions and the Southern Governors' Conference in further support of these reduced rates which will be so beneficial to the agricultural economy of the entire South.
There continues before the Interstate Commerce Commission the fight of the Southern railroads, supported by this Commission, the other Southern State Commissions and the Southern Governors' Conference, to prevent the Northern railroads from securing a greater than equal share of the revenues on railroad traffic moving between the South and the North. As has been set forth in previous annual reports, approval by the Interstate Commerce Com mission of the petition of the Northern railroads could drain as much as $25 million per year from the Southern carriers with the attendant prospect to the Southern shipper of either increase in
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railroad rates or reduction in railroad services, or both. On July
17 of last year the examiners in this proceeding issued a proposed
report and order granting the Northern railroads an approximate 10 per cent increase in their divisional factors which, while not as great an impact as the original proposal, would still cost the Southern carriers in excess of $10 million per year, with corre sponding adverse effect on shippers in Georgia and the rest of the South,
Overwhelmed by exceptions to this order from all parties of interest, the Interstate Commerce Commission late last year assigned the proceeding for oral argument before the full Commission. On February 18 of this year representatives of this Commission partici pated in that oral argument - pointing out the interest of the people of the South in this proceeding and the total injustice of subsidi zation of the Northern shippers by the people of the South. Recent rulings in other proceedings involving divisions between the Northern railroads and railroads in other sections of the country uniformly have resulted in Interstate Commerce Commission authorization of in crease in Northern railroad divisions and in the light of these re peated Commission actions to the contrary it would be naive to expect a complete reversal of the examiners' proposal in this proceeding. The Transcontinental railroads, also unsuccessful before the Com mission in resisting increase in Northern lines' divisions of revenue on transcontinental traffic, recently sought relief in the courts and were there successful in staying the application of the increased Northern railroad divisional factors. This Commission proposes to join with other Southern State Commissions and the Southern carriers in similar appeal to the courts if the unfavorable finding in this case is confirmed by the Interstate Commerce Commission.
For many years representatives of this Commission, together with the Freight Rate Committee of the Southern Governors' Conference, have been endeavoring through negotiations with the railroads to obtain adjustments in the railroad rate structure on lumber which would remove the many inequities suffered by our Southern lumber producers in competing in the nation's lumber markets.
Over the past several years some voluntary adjustments in these rates have been secured through such negotiations with the Southern lines, and these voluntary adjustments have been of con siderable value to our Southern producers. Unfortunately, however, corresponding adjustments in rates from other territories, together with inequities in the tariff provisions applicable on lumber moving from such other territories, have prevented these voluntary adjust ments from providing the full measure of relief needed by our Southern producers.
Of particular harm to the Southern lumber producers has been the competition of West Coast lumber which enjoys a railroad rate structure permitting reshipment in transit at very low additional line-haul charges - sometimes free - and permitting multiple line routing providing long periods in transit for sale after shipment. These preferential tariff provisions, coupled with apparent lax
-36-

enforcement of tariff requirements as to loading minima in the West, add up to a significant transportation advantage compounding the already substantial West Coast advantages of larger trees and lighter woods.
The Interstate Commerce Commission in 1963, after many months
of hearings, finally issued its order in I&S Docket 7558 - a proceed ing involving a reduction in rates on lumber from the West Coast to the Northern markets. This decision approving a further reduction in West Coast rates, was a further blow to the Southern lumber interests* This Commission agreed with our Southern lumber producers that there were a number of erroneous conclusions made by Division 2 of the Interstate Commerce Commission in that order and in April of last year joined with the lumber interests in filing a petition for reconsideration by the full Commission. Although admirably prepared by the late James K. Knudson, a former member of the Interstate Commerce Commission, that petition was denied. That denial and the resultant confirmation of approval of the reduction in rates on lumber from the West Coast to the Northern markets was bad enough in itself, but compounding that effect was the continued failure of proper enforcement of tariff loading provisions and the continued provision in the tariffs of multiple carrier routes pro viding to the Western producers undue time in transit for sale of lumber shipped unsold. Assuming that when such practices were pointed out to it the Interstate Commerce Commission would take action in the most recent case involving the rates concerned, Southern lumber interests in June filed a petition with the Inter state Commerce Commission for leave to file a petition for further consideration of this Western-Northern lumber rate case. This Com mission supported this petition and strongly urged the reopening of the proceeding in the light of demonstrated conditions. We were advised on August 28, however, that the Interstate Commerce Com mission had denied this latest petition.
It has become clearly evident that voluntary negotiations, even though productive of periodic rate adjustments, are not the answer to fairly fixing the competitive relationship of the lumber rates and to removing the prejudicial effect of the privileges now being applied in connection with those rates. A substantial segment of the Southern lumber industry has become convinced that the voluntary adjustment route is not effective and is now considering the filing of a formal complaint. This Commission proposes to join the Southeastern Association of Railroad and Utilities Commissioners and the Southern Governors* Conference in assisting the Southern lumber industry in such effort as it may make to remove this unfair freight rate handicap.
Late last year the Georgia & Florida Railway Company petitioned the Interstate Commerce Commission for authority to acquire trackage rights over certain tracks of the Central of Georgia Railway Company between Midville and Augusta. At the time of the filing of the petition the main line of the Georgia & Florida Railway had been reha bilitated between Midville and Valdosta and it was obvious that the granting of the trackage rights sought would enable the Georgia & Florida Railway to improve its service to both Midville and Augusta
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and to restore full through service on its entire line. Any possible objections to the application were met by the stipulation that such service as may be required on the line of the Georgia & Florida Railway between Augusta and Midville would continue to be provided by the appli cant. Under such conditions, the Commission, by resolution adopted
January 6 of this year advised the Interstate Commerce Commission that
the authority sought would be in the best interests of the shipping public and the citizens of this area of the State of Georgia and that it endorsed and supported the trackage rights application. Later in^ the year the application was approved and the trackage rights operation is proceeding satisfactorily.
In February of this year the Atlantic Coast Line Railroad sought authority from the Interstate Commerce Commission to require the Georgia & Florida Railroad to abandon its trackage rights over the Atlantic Coast Line Railroad between Kingwood and Moultrie, a total distance of 2.9 miles in Colquitt County. A number of industries in Moultrie were then served by both the Atlantic Coast Line Railroad and the Georgia & Florida Railway where the service by the Georgia & Florida Railway was performed Tinder the trackage rights involved in this application. In addition, interchange functions between the Georgia & Florida Railway and the Georgia Northern Railway at Moultrie were performed through use of these trackage rights. The Commission received complaints from some of the affected industries and upon investigation concluded that the unilateral application of the Atlantic Coast Line Railroad to discontinue these trackage rights posed the threat of reduction in service or increase in transportation charges - or both - to the affected industries in Moultrie and threatened the efficient interchange between the Georgia & Florida Railway Company and the Georgia Northern Railway Company, to the detriment of both lines and the public served thereby. In con sideration of all the circumstances, the Commission advised the Inter state Commerce Commis s io n of its opposition to the application as filed and requested that the matter be set down for public hearing. The appli cation was assigned for public hearing but such hearing was postponed to permit negotiations between the Atlantic Coast Line Railroad and the Georgia & Florida Railway seeking removal of the objectionable features of the application. It is expected that satisfactory agreement can be reached protecting all parties without the necessity for formal proceed
ings. On January 20 the Wadley Southern Railroad Company sought authority
from the Interstate Commerce Commission to discontinue its operations and to abandon and dismantle its entire trackage in Emanuel and Jefferson Counties. This line has been operating at a deficit for many years and its facilities have deteriorated to the point where extensive expendi tures would be required for rehabilitation. The principal services of this line were to industries located thereon at Swainsboro and the appli cation provided that continued service would be rendered to those shippers through the purchase and operation by the Georgia & Florida Railway of
11 the tracks and terminal facilities of the Wadley Southern Railroad
at that point. The Commission's investigation confirmed the contention of the applicant that operations over the line could never be rendered profitably Tinder existing conditions and, in the light of all the circum
stances, the Commission on February 6 advised the Interstate Commerce
Commission that it knew of no opposition to the application, supported the application for abandonment and saw no need for public hearing there
on. On March 17, I96U the Interstate Commerce Commission issued its
order authorizing the abandonment of this line.
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UTILITY REGULATION
INTRODUCTION Organization U tilitie s D ivisio n Operating Companies with Changes During 1964 D ecision9 and Orders General Economic Trends New Area of Regulation - RCC Accounting Service Standards
I . GAS UTILITIES General Data Local Developments
I I . ELECTRIC UTILITIES General Data Rates & Service
I I I . TELEPHONE & TELEGRAPH UTILITIES Station A ctivity Rates & Service Company A cquisitions Western Union
IV . APPENDICES A. U tility Companies Operating in Georgia B. Georgia Power Company New R esidential Service Rate C. Georgia In trastate T o ll Rate D. Analysis of Gas Refunds E. Chart on E le c tric Heating Market F. Telephone Growth S ta tistic s

UTILITIES DIVISION

The U t ilitie s D ivisio n is presently staffed with a D irector, two engineers three accountants, and fiv e persons working in a se cre ta ria l or c le ric a l capa c ity . The work of th is d iv isio n , under the d irectio n and supervision of the Commission and it s Secretary, consists generally of processing the rate and t a r if f filin g s of a ll public u t ilit ie s , and the evaluation of the same fo r presentation to the Commission. More s p e c ific a lly , a c tiv itie s include examining the books of accounts of public u t ilit ie s ? preparing and m aintaining maps show ing the ce rtifica te d service areas and main transm ission and d istrib u tio n lin e s of u t ilit ie s ; investig atin g and processing com plaints, including fie ld inves tig a tio n s, and holding hearings when and where necessary; analyzing exhibits submitted at public hearings; studying and evaluating rate filin g s fo r the purpose of m aintaining an equitable re la tio n In the rate structures of com parable u t ilit ie s ; reviewing proposed issuances of se cu ritie s and applications fo r loans; a ssistin g the Commission in draftin g and w ritin g memorandum opinions findings and orders; and reviewing Federal Power Commission and Federal Gommunications Commission m aterials and evaluating th e ir effect on Georgia public u t ilit y operations.
In order to properly carry out the duties assigned to i t by the Commission, th is d iv isio n must come in contact with every segment of the p u b lic, including in d ivid u a l c itiz e n s, industry representatives, national and other state regu la to ry bodies, le g a l, engineering, investment and brokerage firm s, and numerous inform ation and communications media. The f ile s , lib ra ry , and equipment of e d iv isio n must be complete, accurate, and availab le so that each app lication , complaint, court appeal, te rrit o ria l question or dispute, rate consideration or problem may be handled quickly, equitably and in the public in te re st.

OPERATING UTILITIES

At the close of the calendar year 1964, there were under ju risd ic tio n of the Public Service Commission the follow ing number of public u t ilit ie s :

E le ctric

2

Natural Gas

5

Telephone (in clud in g four cooperatives)

57

Telegraph

^

T ransit

3

The follow ing changes have been made in the lis t of u t ilit ie s operating in the State of Georgia fo r the year ending December 31, 1964:

Gas

Mid-Georgia Natural Gas Co. purchased by Atlanta Gas Light Co.

Telephone

Broomtown Telephone Company purchased by Walker County Telephone Co.

Canton Telephone Company purchased by General Telephone and Electronics Corp. to be operated by the General Telephone Company of the Southeast. *^For a complete lis t of u t ilit y companies operating in Georgia see Appendix "A"

**3$-

Decisions and Orders

Applications formally heard by the Commission are generally taken under advisement and decisions thereon are issued at a later date. The Commission issued 87 decisions and orders during the year in proceedings involving utilities. A classification of the pro ceedings in which formal opinions and orders were issued follows:

Applications fo r C e rtifica te s or Cancellation Thereof - - - - - - 28

A pplications fo r Authority to Issue S ecurities or Borrow Money
Rural E le c trific a tio n Adm inistration Financing - - --------- 3 P rivate Financing - - - --------- -- -------------------------------18

Rate Adjustment Proceedings --------- -- ------------- ------------- -------- -- 15

Applications fo r Authority to Purchase and Transfer U tility P ro p e rtie s--------- -------- -- - ------ - <------------- -- ------------- -------- 4*

Show Cause P ro cee d in g s------------ I-------------------------------------- ----- 3

Applications fo r Amendments of C e rtific a te s --------- -- ------------- - 13

Other Matters --------- -- ------------- ---------------- -- -------- --

- 3

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r ? .....

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7" r .

t&t "ICf! >C 5 ' ic I ) f

' -

"E<t

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- --

-

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,

.J |8

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Qdr V ..-rod . i

SUBJECT MATTER OF DOCKETS HEARD AND DETERMINED
The follow ing is an abstract of the subject matter of U tility Dockets considered or heard by the Commission during the year, wherein formal opinions and orders were entered.
APPLICATIONS FOR CERTIFICATES OR CANCELLATION THEREOF Docket No. 1825-U A pplication of the C itie s of Greensboro and Union Point
fo r a C e rtifica te of Public Convenience and N ecessity fo r Oglethorpe and Madison Counties. Docket No. 1815-U Cancellation of Atlanta Gas Light Company' s C e rtifica te of Public Convenience and N ecessity fo r Jackson County. Docket No. 1856-U A pplication of Savannah Gas Company fo r a C e rtifica te of P ublic Convenience and Necessity fo r Bryan County. Docket No. 1866-U A pplication of Atlanta Gas Light Company fo r a C e rtifica te of Public Convenience and Necessity fo r Banks County. Docket No. 1867-U A pplication of Atlanta Gas Light Company fo r a C e rtifica te of Public Convenience and Necessity fo r Habersham County. Docket No. 1863-U A pplication of Atlanta Gas Light Company fo r a C e rtifica te of Public Convenience and Necessity fo r White County. Docket No. 1870-U A pplication of Atlanta Gas Light Company fo r a C e rtifica te of Public Convenience and Necessity fo r Dawson County. Docket No. 1871-U A pplication of Atlanta Gas Light Company fo r a C e rtifica te o f Public Convenience and N ecessity fo r Lumpkin County. Docket No. 1872-U A pplication of Atlanta Gas Light Company fo r a C e rtifica te of P ublic Convenience and Necessity fo r Pickens County. Docket No. 1845-U A pplication of In terco astal Gas Corporation fo r a C e rti fic a te of Public Convenience and N ecessity fo r Murray County. Docket No. 184.5-U A pplication of In terco astal Gas Corporation fo r a C e rtifi cate of P ublic Convenience and N ecessity fo r Gordon County. Docket No. 1080-U Cancellation of Georgia Coastal Natural Gas Corporation' s C e rtifica te of P ublic Convenience and Necessity fo r the operation of natural gas p ip elin e fa c ilit ie s to serve Southeast Georgia. Docket No. 1878-U A pplication of the C ity of Craw fordville fo r a C e rtifica te of Public Convenience and Necessity fo r Greene County. Docket No. 1880-U A pplication o f Atlanta Gas Light Company fo r a C e rtifica te of Public Convenience and N ecessity fo r Lowndes County.
-a-

Docket No. 1881-U A pplication of Atlanta Gas Light Company fo r a C e rtifica te of Public Convenience and Necessity fo r W ilkinson County.

Docket No. 1824-U A pplication of Pineland Telephone Co-operative, In c ., fo r a C e rtifica te of P ublic Convenience and Necessity to estab lish a new exchange at Oak Park.

Non-Docket

A pplication of Southern B e ll Telephone and Telegraph Company fo r a C e rtifica te of P ublic Convenience and N ecessity "Nunc Pro Tunc" fo r the establishment of a new exchange at Je k y ll Isla n d .

Non-Docket

A pplication of Southern B e ll Telephone and Telegraph Company fo r a C e rtifica te of Public Convenience and Necessity "Nunc Pro Tunc" fo r the establishment of a new exchange at Flowery Branch.

Non-Docket

A pplication of Southern B e ll Telephone and Telegraph Company fo r a C e rtifica te of Public Convenience and N ecessity "Nunc Pro Tunc" fo r the establishm ent of a new exchange at R oopville.

Non-Docket

A pplication of Southern B e ll Telephone and Telegraph Company fo r a C e rtifica te of Public Convenience and N ecessity "Nunc Pro Tunc" fo r the establishm ent of a new exchange at Lula.

Non-Docket

A pplication of Southern B e ll Telephone and Telegraph Company fo r a C e rtifica te of Public Convenience and Necessity "Nunc Pro Tunc" fo r the establishm ent of a new exchange at Tucker.

Non-Docket

A pplication of Southern B e ll Telephone and Telegraph Company fo r a C e rtifica te of Public Convenience and N ecessity "Nunc Pro Tunc" fo r the establishm ent of a new exchange at Bogart-Statham.

Docket No. 1829- U A pplication of Cairo Telephone Company fo r a C e rtifica te of Public Convenience and Necessity fo r the Calvary-Eeno Area.

Docket No. 1830- U A pplication of Cairo Telephone Company fo r a C e rtifica te of Public Convenience and Necessity to construct new t o ll fa c ilitie s .

Non-Docket

A pplication of C itizen s Telephone Company, In c ., fo r a C e rtifica te of P ublic Convenience and N ecessity fo r the establishm ent of a new exchange at Lake Blackshear.

Docket No. 1846-U A pplication of Waverly H all Telephone Company, In c ., fo r a C e rtifica te of Public Convenience and Necessity fo r Waverly H a ll.

-4 2 -

Docket No. 1861-1

A pplication of Atlanta Radio Contact, In c ., fo r a C e rti fic a te of Public Convenience and Necessity fo r the operation of a mobile radio-telephone system in Clayton, Cobb, DeKalb, Douglas, Fayette, Fulton, Gwinnett, Henry, Paulding and Rockdale Counties, as w ell as portions of Barrow, Bartow, Butts, C a rro ll, Cherokee, Coweta, Forsyth, H a ll, Haralson, Newton, Spalding and Walton Counties.

Docket No. 1852-1

Application of C itizens Telephone Company, In c ., fo r a C e rtifica te of Public Convenience and Necessity fo r opera tio n of t o ll lin e fa c ilit ie s between Lake B lackshear-Leslie, Leslie-Am ericus, Plains-Am ericus, Vienna-Cordele.

APPLICATION FOR AUTHORITY TO ISSUE SECURITIES OR BORROWMONEY

Non-Docket

A pplication of Gas Light Company of Columbus fo r authority to issue a 5j^ , $100,000 promissory note.

Non-Docket

A pplication of Chattanooga Gas Company fo r authority to issue and s e ll $1,500,000 p rin cip a l amount of it s F irs t Mortgage Sinking Fund Bonds, Series "Dn, 5%

Docket No. 1854-1

A pplication of South A tlan tic Gas Company fo r authority to s p lit it s outstanding $5 par value Common Stock into two shares of $2.50 par value Common Stock and fo r authority to change it s corporate name to Savannah Gas Company.

Docket No. 1875-1 A pplication of United C itie s Gas Company fo r authority to issue $1,000,000 p rin cip a l amount of it s F irs t Mortgage Bonds.

Docket No. 1883-1

A pplication of Atlanta Gas Light Company fo r authority to issue and s e ll 180,150 shares of it s $5 par value Common Stock, as w ell as authority to issue and s e ll $22,000,000 p rin cip a l amount of F irs t Mortgage Bonds.

Docket No. 1820- A pplication of Progressive Rural Telephone Co-operative, In c ., fo r authority to borrow $170,000 p rin cip a l amount from REA.

Docket No. 1813- A pplication of H aw kinsville Telephone Company fo r authority to borrow $100,000 p rin cip a l amount from REA.

Docket No. 1821- A pplication of D ixie Telephone Company fo r authority to borrow $690,000 p rin cip a l amount from REA.

Docket No. 1813- A pplication of In te rstate Telephone Company fo r authority to borrow the p rin cip a l amount of $1,100,000 from StrombergC a rlso n .

Non-Docket

A pplication of Bulloch County Rural Telephone Co-operative, In c ., to borrow $276,000 from REA.

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Docket No. 1823-U

Application of General Telephone Company of the Southeast fo r authority to issue and s e ll 190,000 shares of it s 10 per share par value Common Stock, as w ell as authority to issue and s e ll $6,000,000 p rin cip a l amount of F irs t Mortgage Bonds.

Docket No. 1826-U A pplication of Standard Telephone Company fo r authority to issue 1,111 shares of it s $100 par value per share Common Stock.

Docket No. 1831-U A pplication of Hart County Telephone Company fo r authority to borrow $100,000 from Stromberg-Carlson.

Docket No. 1848-U A pplication of Waverly H all Telephone Company fo r authority to borrow the p rin c ip a l amount of $70,000 from the North Corporation, as w ell as authority to issue 506 shares of $100 par value Common Stock.

Docket No. 1840-U A pplication of Alma Telephone Company, In c ., fo r authority to borrow $554 000 from REA.

Docket No. 1863-U A pplication of Hom erville Telephone Company, In c ., fo r authority to borrow $303,000 from REA.

Non-Docket

A pplication of Progressive Rural Telephone Co-operative, In c ., fo r authority to borrow an ad ditional $90,000 p rin c ip a l amount from REA.

Docket No. 1886-U A pplication of Walker County Telephone Company fo r authority to issue and s e ll additional bonds in the p rin cip a l amount of $300,000 bearing in terest at the rate of

Docket No. 1819-U

A pplication of Georgia Power Company fo r authority to issue and s e ll $28,000,000 p rin cip a l amount of F irs t Mortgage Bonds; authority to issue and s e ll 50,000 shares of Pre ferred Stock, as w ell as authority to issue and s e ll 80,000 shares of Common Stock.

Docket No. 1835-U

A pplication of Savannah E le c tric and Power Company fo r authority to issue and s e ll $8, 000,000 p rin cip a l amount of F irs t Mortgage Bonds, also authority to s p lit it s outstanding Common Stock on the basis of one additional share fo r each two shares outstanding, as w ell as authority to issue and s e ll 150,000 additional shares of Common Stock.

RATE ADJUSTMENT PROCEEDINGS

Docket No. 1822-U A pplication of General Telephone Company of the Southeast fo r authority to re vise it s exchange rates at Coleman and Sheilman afte r establishing county extended area se rvice .
Docket No. 1812-U A pplication of In te rstate Telephone Company fo r authority to make an adjustment in it s exchange telephone rates.

-U -

Docket No. 1827-U A pplication of Plant Telephone and Power Company, In c ., fo r authority to increase it s monthly rates fo r telephone service rendered from the Soperton exchange of the Company.

Docket No. 1833-U A pplication of Southern B e ll Telephone and Telegraph Company fo r authority to adjust rates fo r telephone service rendered from the Buford exchange.

Docket No. 1833-U A pplication of Southern B e ll Telephone and Telegraph Company fo r authority to adjust rates fo r telephone service rendered from the Law renceville exchange.

Docket No. 1843- U A pplication of General Telephone Company of the Southeast fo r authority to increase rates fo r telephone service ren dered from the Alapaha, Enigma and N ashville exchanges of that Company upon establishing extended area service between those exchanges.

Docket No. 1844- U A pplication of General Telephone Company of the Southeast fo r authority to increase rates fo r telephone service rendered from the M a rsh a llville and Id ea l exchanges of the Company upon the establishm ent of extended area service between Montezuma, Byrom ville, Id eal and M a rsh a llville exchanges of the Company.

Docket No. 1850- U A pplication of General Telephone Company of the Southeast fo r authority to increase rates fo r telephone service rendered from the Perry exchange,

Docket No. 1847-U A pplication of Waverly H all Telephone Company fo r authority to increase rates.

Docket No. 1841-U A pplication of Alma Telephone Company fo r authority to increase rates in the Alma, N icholls and Patterson exchanges.

Docket No. I 864-U A pplication of Hom erville Telephone Company fo r authority to increase rates in the Fargo and Hom erville exchanges.

Docket No. 1851- U A pplication of Westco Telephone Company fo r authority to increase rates in the Clayton and Dillard-M ountain C ity exchanges.

Non-Docket

Reduction in in trasta te t o ll rates and elim ination of certain construction charges on ru ra l telephone service - Southern B e ll Telephone and Telegraph Company.

Non-Docket

Reduction in re sid e n tia l e le c tric rate schedules due to changes in State and Federal returns - Georgia Power Company.

Non-Docket

A pplication of Western Union Telegraph Company fo r authority to increase rates fo r in trastate telegraph service in Georgia.

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APPLICATION FOR AUTHORITY TO PURCHASE AND TRANSFER UTILITY PROPERTY

Docket No. 1837-U

A pplication of Atlanta Gas Light Company fo r authority to purchase the gas f a c ilit ie s of Mid-Georgia Natural Gas Company and Mid-Georgia Gas Company and the tran sfer of C e rtifica te s of Public Convenience and Necessity Numbers 81, 82, 65, 60, 66, 67, 84, 62, 83 and 61.

Docket No. 1849-U A pplication of Atlanta Gas Light Company fo r authority to purchase the gas f a c ilit ie s of the C ity of Jefferson.

Docket No. 1828-U A pplication of General Telephone and Electronics Corporation fo r authority to acquire a ll the outstanding C apital Stock of Canton Telephone Company.

Docket No. 1876-U A pplication of Walker County Telephone Company fo r authority to acquire Broomtown Telephone Company and to amend C e rti fic a te of Public Convenience and N ecessity Number 30,

SHOW CAUSE PROCEEDINGS

Docket No. 1834-U Rule N isi ordering C ity of Jefferson to reduce it s gas rates 15%
Docket No. 1853-U Rule N isi ordering Broomtown Telephone Company to remove it s fa c ilit ie s from Walker County Telephone Company*s ce rtifica te d area.
Docket No, 1855-U Rule N isi against Georgia Power Company to show cause why the Commission should not make such order and prescribe such condition as may be ju st and reasonable on p e titio n of Mrs. Freeman Whitehead of Wayside to provide 3-phase e le c tric service fo r proposed residence.

APPLICATIONS FOR AMENDMENTS OF CERTIFICATES

Docket No. 1814-0 A pplication of Chattanooga Gas Company fo r an Amendment to it s C e rtifica te of P ublic Convenience and N ecessity Number 72 so as to authorize it to furn ish natural gas service to Covenant College and a re sid e n tia l subdivision on top of Lookout Mountain in Dade County.

Docket No, 1815-U

Cancellation of Amendment Number Three to Atlanta Gas Light Company' s C e rtifica te of Public Convenience and N ecessity

fo r Clark County.

Docket No. 1849-U

A pplication of Atlanta Gas Light Company fo r an Amendment to it s C e rtifica te of Public Convenience and N ecessity fo r

Clark County,

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Non-Docket

A pplication of Savannah Gas Company fo r an Amendment to it s C e rtifica te of Public Convenience and Necessity fo r Effingham County.

Non-Docket

A pplication of Savannah Gas Company fo r an Amendment to it s C e rtifica te of P ublic Convenience and Necessity fo r Chatham County.

Docket No. 1882-U A pplication of Atlanta Gas Light Company fo r an Amendment to it s C e rtifica te of Public Convenience and N ecessity No, 85 to serve the C ity of V id a lia in Toombs County and the C ity of Uvalda in Montgomery County and to relocate tap lin e s and mains in the Counties of Appling* Bacon* Bleckley* Dodge, Emanuel, Je ff Davis* Tattnal, Treutlen and Wheeler.

Docket No. 1777-U A pplication of Coastal U t ilit ie s , In c ., fo r an Amendment to it s C e rtifica te of Public Convenience and N ecessity fo r Midway.
Docket No. 1857-U A pplication of Standard Telephone Company fo r an Amendment
to its Certificate of Public Convenience and Necessity for the Cleveland exchange.

Docket No. 1858-U A pplication of Standard Telephone Company fo r an Amendment to it s C e rtifica te of Public Convenience and N ecessity fo r the Cornelia exchange.

Docket No. 1859-U A pplication of Standard Telephone Company fo r an Amendment
to its Certificate of Public Convenience and Necessity for
the Dahlonega exchange.

Docket No. 1860-U A pplication of Standard Telephone Company fo r an Amendment
to its Certificate of Public Convenience and Necessity for
the Dawsonville exchange.

Docket No. 1802-U A pplication of Northeast Flo rid a Telephone Company, In c .,
for an Amendment to its Certificate of Public Convenience
and Necessity in Charlton, Georgia exchange.

Docket No. 1879-U

A pplication of Pineland Telephone Co-operative, In c ., fo r an Amendment to it s C e rtifica te of Public Convenience and N ecessity fo r t o ll lin e fa c ilit ie s from Bartow and Davisboro exchanges to points of connection with Southern B e ll Tele phone and Telegraph Company's M illen and Dublin t o ll fa c ilitie s .

OTHER MATTERS Docket No. 1837-U A pplication of Atlanta Gas Light Company fo r an order amend
ing it s fift h ordering paragraph of Docket No* 1837-U.

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Non-Docket

Application of General Telephone Company of Georgia fo r authority to renew certain of it s present indebtedness consisting of short term notes payable to the Wachovia Bank and Trust Company and to enter into new short term lin e s of cred it with said bank.

Docket No. 1862-U A pplication of Byron Telephone Company fo r f ilin g of O riginal Sheet No. 26, Section No. 5, ''Rules Governing Charges fo r Local Taxation."

ECONOMIC TRENDS
Georgia' s 1964 business year closed with an unprecedented record of business and economic achievements. For the th ird stra ig h t year businessmen as w ell as in d ivid u a l consumers continued to show a w illin g n ess to invest and spend, giving ris e to record employment, personal income, in d u stria l develop ment, r e t a il sa le s, and banking a c tiv ity . This economic growth was paced by the sta te ' s three larg est u t ilit ie s - Georgia Power Company, Southern B e ll Telephone Company, and Atlanta Gas Light Company.
Georgia Power Company invested almost $86 m illio n in new construction during 1964, the la rg e st annual amount ever expended by the company fo r new qnd improved generating plants, transm ission, d istrib u tio n and other e le c tric equipment. The company has 5,574 employees now as compared with 5,458 a year ago and paid taxes in 1964 to talin g 38 m illio n .
Southern B e ll Telephone Company spent #80,700,000 on construction during the year, which amount was more money than the to ta l company investment in Georgia immediately follow ing World War I I . Southern B e ll's employment in creased in the State during the year by more than a thousand employees. The to ta l work force in Georgia is now 11,800 with an annual p ayro ll of more than $71,000,000. The company paid in excess of $12,600,000 in lo c a l and state taxes during the year.
Atlanta Gas Light Company's to ta l outlay fo r gas plant construction and acq u isitio n reached $17,356,849 fo r the fis c a l year ending September 30, 1964, not only exceeding la s t year' s forecast by nearly three m illio n , but also more than doubling fis c a l 1963' s to ta l of 7 .7 m illio n . Current and deferred income taxes totaled #5,504,800 an increase of some $1,416,400 over la s t year. At the end of the fis c a l year the company had 2,050 employees, an increase of 133 over the previous year.

NEW AREA OF REGULATION - RCC During the year, the Commission received an application from Atlanta Radio Contact, In c. (A .R .C .), a Georgia corporation, fo r a C e rtifica te of Public Convenience and N ecessity to operate a radio communication service in the

Atlanta M etropolitan area. A.R.C. had been in operation fo r several years on a "closed system" basis and desired to expand th e ir operation by interconnectin' with the land lin e telephone system of the Southern B e ll Telephone and Tele graph Company in A tlanta. In order fo r an interconnection agreement to be negotiated between the two u t ilit ie s , it appeared necessary to estab lish A.R.C. as a common c a rrie r under u t ilit y regulatory authority.
This application was of a precedent nature req uiring analysis and decision on each of several basic questions of ju risd ic tio n and regulation. Rather than attempt to b rie f such a basic document, the en tire order of the Commission in th is docket (1861-U) is set forth at the end of th is section. Inasmuch as the Commission has assumed ju risd ic tio n in th is matter, a ll. sim ila r operations in the state w ill ultim ately be required to f ile fo r authority. It is the Com m ission^ intention to proceed slow ly in th is area in order to assure that no undesirable requirements are established which could be damaging to the p ri m arily land lin e telephone companies or to the buding radio common c a rrie r industry as a whole. The Commission is aware of several errors already made by regulatory au th o rities in other states and seeks to avoid being placed in sim ila r circum stances. However, responsible regulatory action must accompany the growth in th is new fie ld , le ss the p ublic be denied a communication service which is p ra c tic a l, desirable and obtainable.

October 28, 1964 Docket No. 1861-U

C e rtifica te No. 1

In Re; Application of Atlanta Radio Contact, Inc. for a Certificate of Public Convenience and Necessity.

APPEARANCES
For the Company: A. H. Stakely, President Donald W. G ettle, Attorney

For the Commission:

R. B. Alford, Director Utilities Division D. N. Smith, Senior Utilities Engineer

BY THE COMMISSION:
The Commission received application on August 7 , 1964, from Atlanta Radio Contact, In c. (hereinafter referred to as "A pplicant") fo r a C e rtifica te of Public Convenience and N ecessity fo r the operation of a mobile radio telephone system in the Counties of Clayton, Cobb, DeKalb, Douglas, Fayette, Fulton, Gwinnett, Henry, Paulding and Rockdale, as w ell as portions of Barrow, Bartow, Butts, C a rro ll, Cherokee, Coweta, Forsyth, H a ll, Haralson, Newton,

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Spalding, and Walton. The Applicant is presently authorized by the Federal Communications Commission to engage in Domestic Public Land Mobile Radio Service in accordance with the ru le s and regulations of that Commission (FCC) Section 21.1, Subpart A - D efin itio n s. The hearing on the application was set fo r September 16, 1964-, and was subsequently reassigned fo r September 30, 1964, and again fo r October 2, 1964, at which time it came on to be heard.
STATUS OF MISCELLANEOUS COMMON CARRIERS The Commission has considered the nature of the Applicant' s operation and it s effects on currently regulated communication u t ilit ie s w ithin the state The evidence gathered through s ta ff investigatio n conclusively establishes that the m iscellaneous common ca rrie rs which are licensed by the FCC under Part 21 of it s ru les and which are o fferin g a fo r-h ire service in the furtherance of in trasta te communication by telephone, with or without w ires, f a ll w ithin the Commission' s regulatory ju risd ic tio n over Communication Common C a rrie rs. Atlanta Radio Contact, In c ., was therefore n o tifie d by le tte r on March 19, 196; that application fo r C e rtifica te of P ublic Convenience and Necessity should be file d with the Commission For adm inistrative purposes and to d iffe re n tia te between u t ilit ie s furnishing p rim arily land wire lin e service and those p rim arily engaged in communication service by radio, the la tte r group s h a ll hereafter be referred to as Radio Common C arriers (RCC). In the instant docket, Applicant proposes to furn ish mobile radio service (not lim ited to wheeled veh icle ) in the Atlanta area and w ithin the e ffective operating range of it s base transm itter located on top of the Bank of Georgia build ing in downtown A tlanta. Sworn testimony was given at the hearing by Mr. A. H. Stakely, President of Atlanta Radio Contact, In c ., that adequate service can be provided by Applicant throughout the counties pre vio u sly set fo rth . Further testimony revealed that Applicant has su ffic ie n t personnel and equipment availab le to provide adequate maintenance required fo r re lia b le service. While not stated in the ap p lication , the Applicant te s tifie d at the hearing that it does not seek to obtain an exclusive operating C e rtifica te and does, in fa ct, recognize and accept the existance and the rig h t to operate of other sim ila r Radio Common C arriers w ithin the confines of the area applied fo r I t is the opinion of the Commission that, due to the ch a ra cte risti c a lly c irc u la r pattern of radio transm ission area coverage, it appears more appropriate to issue a C e rtifica te of P ublic Convenience and N ecessity on a basis other than county boundaries. While it is recognized that sa tisfa cto ry communications may often be had beyond any a rb itra ry standard reference le v e l of sig n al strength, it is nevertheless desirable to estab lish some standard as a common reference point. For th is purpose, the Commission sh a ll adopt, fo r the present, the standard set forth by the FCC in Part 21.504 of it s Rules, as follow s:
SERVICE AREA OF BASE STATION
(a) The lim its of re lia b le service area of a base statio n are considered to be described by a fie ld strength contour of 37 decibels above one m icrovolt per meter
-5 0 -

fo r stations engaged in two-way communication service with mobile stations and 43 decibels above one micro v o lt per meter fo r stations engaged in one-way sign alin g service. Service w ithin that area is generally expected to have an average r e lia b ilit y of not le ss than 90 per cent.
There is a measure of sim ila r communication service availab le at present from several land lin e telephone companies in the state which is termed "Mobile Telephone Service". This service is , however, s trik in g ly lim ited when compared to that proposed by Applicant and should not, therefore, be considered as an infringem ent upon the C e rtifica te of Public Convenience and Necessity presently held on a sole authority basis by the lo c a l land lin e telephone company, (Southern B e ll Telephone and Telegraph Company).
Applicant has been operating a communications service fo r several years in a manner which lim ited the range of c a lls made by subscribers to with in the scope of A pplicant' s own equipment. Upon the issuance of th is C e rtifi cate, the Commission recognizes the Applicant as a common c a rrie r with the rig h t and authority to negotiate interconnection agreements with lo c a l land lin e telephone companies fo r the exchange of tra ffic d ire c tly between the two systems. The C e rtifica te herein issued, however, sh a ll not be contingent upon the execution of such agreement or contract.
I t is the opinion of the Commission that the RCC service to be offered w ill provide the public with a dimension of communications service not presently availab le and fo r which there is public necessity.
Wherefore, it is ORDERED: that the application fo r C e rtifica te of Public Convenience and N ecessity by Atlanta Radio Contact, In c ., be and is hereby approved and issued on a non-exclusive b a sis.
ORDERED FURTHER: that the rates and t a r if f charges file d with the application be and the same are hereby approved.
ORDERED FURTHER: that Atlanta Radio Contact, In c ., s h a ll f ile with the Commission a map on which is designated the effective operating range of the base transm itter in accordance with standards set forth above and, secondly, s h a ll also show the maximum useable range contour which could be expected on a continual b a sis.
ORDERED FURTHER: that Atlanta Radio Contact, In c ., sh a ll be regula ted in accordance with established ru le s fo r communication common c a rrie rs and those found necessary to be issued in the future.
ORDERED FURTHER: that the Commission re ta in ju risd ic tio n of the subject matter herein and the p arties hereto fo r the purpose of taking any furth er action, holding further hearings and entering any further orders as may be meet and proper.
BY ORDER OP THE GEORGIA PUBLIC SERVICE COMMISSION, th is the 28th day of October, 1964.
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ACCOUNTING - TAXES
For the past several years regulatory tax accounting has been broadened and made considerably more complex through the introduction of accelerated depreciation, lib e ra liz e d depreciation, investment cre d it and guideline de p reciatio n . These matters have been dealt with in previous reports and there fore w ill not be given additional treatment at th is time. However, on February 26, 1964, Public Law SB-272 was signed by President Johnson and the u t ilit ie s were immediately faced with another change in tax accounting -- a reduction in the normal and surtax rate from 52 per cent to 50 per cent fo r 1964 and from 50 per cent to 43 per cent in 1965.
Taxes are and have been generally accepted by th is Commission as operating expenses to be recovered, e x p lic itly , in rates charged to users. Other factors remaining unchanged, higher taxes mean higher rates, lower taxes lower rates. Unfortunately, our case in point does not enjoy th is sim p licity . The u t ilit ie s were included in a tax reduction b ill which generally had as it s national o bjective. . .the stim ulation of the economy v ia increased investment. Obvious ly th is objective could not be met i f the Commission followed it s tra d itio n a l approach of d irectin g a ll u t ilit ie s under it s ju risd ic tio n to re fle c t the corporate tax cut by lowering th e ir rate s. On the other hand, it would not be proper fo r the Commission to authorize each u t ilit y to a rb itra rily use the tax savings in an accelerated investment program without regard to the p ublic in te re st. Some combination of the two extremes appeared in order.
As the follow ing extract of two non-docket orders w ill in d icate, the Commission resolved th is problem by examining the economic requirements neces sary fo r each u t ilit y to continue a high q u ality of service to it s customers at the lowest rates consistent with fin a n c ia l s ta b ility .
December 11, 1964 Non-Docket
In Re: Reduction in R esidential E le c tric Rate Schedules Due to Changes in
_______ State and Federal Income Tax Rates. BY THE COMMISSION:
The rate reduction action involving Georgia Power Company was brought about by the 1964 and 1965 federal corporate income tax rate reduction enacted into law on February 26, 1964, as w ell as by an increase in the Georgia cor porate tax rate passed by the 1964 Georgia General Assembly.
In response to a Commission d ire ctive , the Georgia Power Company submitted several proposals re la tin g to the amount of rate reduction which could be effectuated by reason of the company*s reduced income tax lia b ilit y . Includ ed in these proposals were plans fo r a general re sid e n tia l rate decrease coupled with increased spending fo r construction, storm -proofing, wages, and taxes.
-5 2 -

The Commission made a thorough investigation of the proposals sub mitted by the Company and found that reduced e le c tric rates should be pre scribed that would save the re sid e n tia l customers an estimated $2,700,000 per annum.* 2 The Company was en titled to re ta in approximately one-third of th e ir anticipated reduction in income taxes to cover revenue-related tax increases and sp e cific service improvements.
December 14-, 1964 Non-Docket
In Re; Reduction in In tra state T o ll Rates and Elim ination of certain construction charges on Rural Telephone Service.
BY THE C(MiISSI0N: The rate reduction action involving Southern B e ll Telephone and Tele
graph Company was brought about by the 1964 and 1965 federal corporate income tax rate reductions enacted into law on February 26, 1964# as w ell as by an increase in the Georgia corporate income tax rate passed by the 1964 Georgia General Assembly.
In response to a Commission d ire ctive , the Southern B e ll Company file d it s evaluation of the tax changes and it s plans fo r the handling of the reduced income tax lia b ilit y . Included as part of the Company?s supporting data was inform ation on the cost of construction to provide improved ru ra l telephone service to some 4,0 00 eight-party subscribers, and inform ation on t o ll rate d isp a rity , both present and future. The Commission conducted a care fu l and thorough investigatio n on how the company's income tax savings should be applied, and from th is investigatio n the Company was ordered to:
(1 ) . Reduce in trastate t o ll message telephone service rates by $1,560,000 per annum e ffective 12:01 a.m. on February 1, 1965.*3
(2 ) . U tiliz e the balance of the tax reduction, some $1,031,000 to support the Company' s expanded ru ra l and suburban improvement program.
(3 ) . Elim inate a ll unpaid portions of aid-to-construction charges on existin g ru ra l telephone service.
^Schedule of Georgia Power Company's new re sid e n tia l service rates included as Appendix "Bn,
^G eorgia In tra state T o ll Rate Table e ffective February 1, 1965, included as Appendix "C".
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SERVICE STANDARDS
Th regulation of service is not a c r it ic a l problem in modern u t ilit y operations. There have been vast improvements in the arts and technologies of producing u t ilit y service, and rendering it on an expanding scale as commu n itie s have grown in siz e . The problem of service a v a ila b ility and m aintaining service standards has become mainly a matter of advance planning by u t ilit y company managements.
State commissions have nevertheless considered it part of th e ir statutory duty to develop and determine service standards. In vestig atio n s, to determine what adequate service req uires, have been made d ire c tly by them or in coopera tio n with various associations, companies, and the U. S. Bureau of Standards. The National A ssociation of Railroad and U tilitie s Commissioners has a committee on ''service" of public u t ilit ie s . Such attention to th is subject brings out the fact that u t ilit y service, although v a stly improved over that in the past, must be kept on a high le v e l of performance.
Despite improved service standards, however, both formal and inform al complaints continue to re g iste r with th i3 Commission. During 1964-, over 2,000 e le c tric , telephone and gas complaints were processed by the u t ilit ie s s ta ff 25 per cent gas, with e le c tric and telephone equally divided fo r the remaining 75 per cent. As a m ajority of the disputes are misunderstandings, a large percentage of the inform al complaints were settled without impairment of company-customer re la tio n s. Regardless of the nature of a complaint, there is one card inal ro le which has no exceptions: the complainant must receive immediate attention. It w ill remain the goal of th is regulatory body to gather ql 1 facts on a case, analyze same, and then determine the best procedure to bring about understanding o r, as in some cases, a correction of an error made by a u t ilit y company.
GAS UTILITIES
GENERAL
The natural gas industry is now reported to be one of the major forces in the economy of the United States, and the six th larg est of the Nation' s indus trie s in terms of investment. During 1964, gas u t ilit ie s took in revenues of 7 .1 b illio n , an increase of 5 .4 per cent and extended th e ir services to more than 36.5 m illio n customers. The reason fo r th is sw ift progress, of course, lie s in the widespread introduction of natural gas to new areas of the Nation. Within our State alone we are w itnessing the extension of natural gas service to some 36 c itie s in southeast Georgia*^ and several c itie s and communities in northwest Georgia.
SUPPLY:
The American Gas Association estimate fo r proved reserves of natural gas in the United States now to ta ls over 280 t r illio n cubic feet (twenty times our
^Southern Natural Gas Company's application in Docket No. CP 63-26 fo r a c e rti fic a te to expand it s p ip elin e f a c ilit ie s to bring natural gas into th is area was issued as Opinion No. 424> A p ril 6, 1964. -5 4 -

present annual consumption) and based on present industry forecasts, ^ R e duction of natural gas w ill not even reach it s peak u n til the decade 1980 1990.

Following are statements by the two major p ip elin e suppliers in our State concerning th e ir gas reserves;
SOUTHERN NATURAL GAS COMPANY

The Company' s re servo ir engineers estimated that the Company' s controlled reserves from a ll sources approximated 8 t r illio n cubic feet of gas at he of 1964. Southern N atural' s to ta l gas sales in 1964 totaled approximately s ix per cent of th is present reserve.
TRANSCONTINENTAL GAS PIPE LINE CORPORATION

Total recoverable gas reserves under acreage dedicated to the Company on ^

December 31, 1964, are estimated at 12.5 t r illio n cubic feet.

^

1964 to ta l gas sales amounted to approximately fiv e per cent of th e ir to a

recoverable reserves.

RATES:

Today throughout the State natural gas is the lowest cost source of energy

availab le to the consuming p u b lic. This is true in

fa0^e^ l f

rates experienced a considerable increase in the decade 1950-1960. Hecently,

however, there has been a leveling -o ut trend and during the pas

?

refunds from p ip elin e suppliers were receive^ by the d istrib u tio n companies

and subsequently passed on to the customers.

COMPANY ACTIVITIES

During 1964 Atlanta Gas Light Company purchased the gas lit ie s of the C ity of Jefferson, Mid-Georgia Gas Company and M d-Georgia Natural Gas Company.

In purchasing the gas d istrib u tio n fa c ilit ie s of Jefferson, at a cost of

$428,000, Atlanta Gas Light Company acquired te rrito ry in Clarke and

.

Counties. Serving 1,100 customers in Jefferson, a portion of Athens and Area ,

th is System w ill be expanded to include the C itie s of Talmo, M aysville, an

Pe^deSass ix p L iS of the present System w ill be accomplished by construc

tin g a la te ra l from Transco's d e livery point at Bogart to M aysville, a d is trib u tio n main from the C ity of Jefferson through Pendergrass to Talmo and a

la te ra l to supplement the existin g gas supply in Jefferson. A ll customOTS in the newly acquired te rrito ry w ill enjoy e ffic ie n t, dependable gas se rvice , and rates approximately 30 per cent lower than those which were in effect under

m unicipal operation of the system.

^ A n alysis of Gas Refunds Given in Appendix "D" . -55-

Atlanta Gas Light Company's acq u isitio n of Mid-Georgia Natural Gas Company and it s subsid iary. Mid--Georgia Gas Company, was at a purchase p rice of $3,760,000. Franchises held by Mid-Georgia included the towns of;

Bogart C a rlto n Colbert Conyers

D a n ie lsv ille Bearing Harlem Il'a

L ith o n ia Porterdale Statham

Mid-Georgia' s rates produced about $285,000 per year more revenue than the corresponding rates of Atlanta Gas Light Company. However, Atlanta Gas Light Company, upon receip t of satisfacto ry franchises from the various c itie s served, w ill lower the Mid-Georgia rates to the Atlanta le v e ls over a three year period on the follow ing b asis:

R esidential - approximately one-half of the difference immediately, providing a ll past due b ills have been paid.

Commercial -- approximately one-half of the difference immediately, providing a ll past due b ills have been paid.

In d u stria l - to the N-8 or N-9 rate whichever is appropriate, immediately upon the execution of the service contract by the customer and provided a ll past due b ills have been paid.

Southeast Georgia P roject:
A fter several years of planning, natural gas is being brought to southeast Georgia in a co-operative project between Southern Natural Gas Company and Atlanta Gas Light Company. (Map and rates on follow ing pages).
The Company's o rig in a l authority from the Commission fo r the construction and operation of a natural gas system in th is area was D istrib utio n C e rtifica te No. 85 issued on November 17, 1961. The Commission on November 2, 1962, then granted Amendment No. 1 to the o rig in a l c e rtific a te , authorizing certain changes of routing and design in order that additional te rrito ry might be served. F in a lly , on December 2, 1964-, Amendment No. 2 was granted to Atlanta Gas Light Company authorizing the relocatio n of certain tap lin e s and mains, and providing authority fo r the d istrib u tio n of gas in two additional c it ie s , V id a lia and Uvalda.
In Ju ly , Southern Natural began construction of th is new branch lin e which w ill extend from a point near it s Ocmulgee compressor statio n on Southern's mq-Sn South Line in the v ic in ity of Macon, to Brunswick on the southeast coast, a distance of some 175 m iles. Atlanta Gas Light has begun or completed work on the la te ra ls and d istrib u tio n systems in 21 of the 36 c itie s where they have obtained franch ises. When the in it ia l construction phase is completed, it is anticipated that the Company w ill have invested about 9 m illio n d o lla rs in th is area with approximately 25,000 customers being served.

-56-

T e rrito ry ?
In the ce rtifica te d natural gas service area of the Company in the follow ing counties to the extent the Company holds C e rtifica te s of Public Convenience and N ecessity from the Georgia Public Service Commissions Appling, Bacon, Bleckley, Dodge, Emanuel, Glynn, Je ff Davis, Laurens, Lib erty, Long, McIntosh, Montgomery P ierce, T a ttn a ll, T e lfa ir, Toombs, Treutlen, Twiggs, Ware, Wayne, Wheeler and W ilkinson.

R esidential Rate (N -21):

Therms For the f ir s t 4-.0 or le ss used per month

Net $1.50 Per Therm

For the next 11.0 used per month For the next 185.0 used per month For a ll over 200.0 used per month

16.000
13.500
8.500

Provided that no b ill calculated at the above rate sh a ll average le ss than 10.000 per Therm.

Commercial Rate (N-22): Therms For the f ir s t 4.0 or le ss used per month
For the next 11.0 used per month For the next 285.0 used per month For the next 300.0 used per month For a ll over 600.0 used per month

Net
$2.00
Per Therm
16.000
14..5O0
8.000 7.000

Provided that no b ill calculated at the above rate sh a ll average le ss than 10.000 per Therm.

S lim m e r A ir-Conditioning Rate?

Al1 gas used in excess of 50 Therms per month during the period between the customer' s meter reading occurring between May 1 and May 31, in clu siv e , to the customer's meter reading occurring between September 1 and September 30, in clu siv e , w ill be b ille d at 7.000 per Therm.

Issued December 2, 1964. Docket 1882-U

-5 7 -

ELECTRIC UTILITIES
GENERAL
During the la tte r part of 1964 the Federal Power Commission issued it s N ational Power Survey Report which la id out a guideline pattern fo r develop ment of the Nation' s e le c tric power industry. The basic finding of the survey was that each of the Nation's 3,600 power systems, large and sm all, could achieve savings in the cost of generation and transm ission of e le c tric ity by moving from ''iso lated " or segmented operations, and from existin g pools of lim ited scope, to p articip a tio n in fu lly coordinated networks covering broad areas of the country. The program fo r coordinated planning proposed by the FPC could bring about an $11.7 b illio n saving in plant investment and annual net savings to consumers of $11 b illio n by 1980. These savings would amount to a reduction of about 27 per cent in the average u n it p rice of e le c tric ity fo r re sid e n tia l, commercial and in d u stria l users.
The generation and transm ission fa c ilit ie s projected by the report are designed to meet the Nation' s estimated 1980 requirements of 2.8 t r illio n kilow att-hours-- more than 2- times the estimated 1964 to ta l of 1 .1 t r illio n . To produce th is energy, the FPC said a w ell interconnected and coordinated u t ilit y industry w ill need an in sta lle d capacity of about 525 m illio n kilow atts, compared with about 200 m illio n at the end of 1963. Nearly 70 m illio n k ilo w atts, or 13 per cent, of the 1980 to ta l is expected to be nuclear.
In summary, the projected transm ission network fo r 1980 would: Permit construction of larg er and more economical generating u n its, both nuclear and conventional, and transm ission of bulk power from generating sources to major load centers. Permit savings in fu e l transportation costs possible in mass shipments to large p lants. Permit location of large steam plants in le ss heavily populated areas to a lle v ia te a ir p o llu tio n problems in large m etropolitan centers. Permit reduced reserve requirements by sharing capacity between areas and se c tio n s. Provide savings by seasonal exchange of capacity between areas with opposing summer and w inter peaks. Permit more e ffic ie n t use of hydroelectric plants fo r peaking purposes. Permit capacity savings from time zone and random d iv e rsity . F a c ilita te transm ission of o ffpeak energy. Provide f le x ib ilit y to meet unforeseen demands.
-5 8 -

RATES AND SERVICE:

The ordinary c itiz e n 's main contact with the e le c tric power industry is the receip t of h is e le c tric b ill each month. The e le c tric b ill represents a regular expenditure which must be covered in the budget of over 3/4 m illio n Georgia fa m ilie s. R eliab le e le c tric service is taken fo r granted, but con sumers are v it a lly concerned with the rates they must pay to obtain th is service.

We in Georgia are most fortunate to enjoy the lowest average rates in th is geographical area. The table below gives some in d icatio n of th is pattern of re sid e n tia l rates as of 1963.

STATE AVERAGE TYPICAL RESIDENTIAL BILLS*

250 KWH

500 KWH

750 KWH

Alabama F lo rid a Georgia Louisiana M ississip p i North Carolina South Carolina

-$7.48 7 .9 7 6.30 7 .5 3 7 .0 3 6.74 6.75

$10.64 12.09 8.88 1 1 .2 7 9.58 9.63 10.09

114.65 16.21 11.72 15.63 12.40 13.10 13.47

The long-term trend in rates fo r re sid e n tia l e le c tric ity has been down ward. At the present time rates are in the order of 15 per cent le ss than they were in 1935 and although there was a le ve lin g o ff during the past decade, the downward trend was resumed in 1962. Our projections ind icate that per capita use of e le c tric ity w ill continue to increase, thereby contributing to ste a d ily lower rates in the future.*

TELEPHONE AND TELEGRAPH UTILITIES
STATION ACTIVITY - GENERAL: Total telephones In service in Georgia at the end of 1964 were 1,558,098.
This represents an increase in to ta l telephones fo r the year* of approximately eight per cent. The number of fam ilies with telephones in Georgia continues to increase and now approximately 72 per cent of a ll fam ilies have telephone service. Requests fo r service, both in it ia l and fo r higher grades of se rvice , are being met cu rren tly. Southern B e ll reports that as of the end of the year, 75.9 per cent of a ll customers had in d ivid u a l lin e service. New services and equipments are being developed on a continuing basis in order to keep abreast of customer's needs fo r new and expanded service.

^Source: National Power Survey, Federal Power Commission, 1964. oee Appendix "E" fo r s ta tis tic s on growth in e le c tric heating market.
*7
For other telephone s ta tis tic s see Appendix "F".
-5 9 -

RATES - CLASS 0? SERVICE: During the year several independent telephone companies acquired additional
loan funds in order to provide f a c ilit ie s fo r the upgrading of subscribers from one, two, four, and eight-party (ru ra l) service to one, two, and four-party (ru ra l) service. Eight-party service has served a useful purpose in providing telephone service to people in the ru ra l areas; however, better grades of service are now desired and most companies have as th e ir objective the elim ina tin g of eight-party service w ithin the next few years.
Also, during the year, Southern B e ll moved forward with th e ir lib e ra liz e d method of applying mileage charges fo r customers outside the Base Rate Area. Eight exchanges were converted during 1964 to the band mileage system, re su lt ing in a savings of approximately $128,500 annually to th e ir customers in these exchanges. As of the end of 1964, 36 per cent of a ll B e ll exchanges now apply mileage charges on th is lib e ra liz e d b a sis.
COMPANY ACQUISITIONS: On February 24, 1964, General Telephone & E lectro n ics, a New York Corp
oration, acquired the telephone f a c ilit ie s of Canton Telephone Company by issu in g 58,400 shares of it s Common Stock to the shareholders of Canton Tele phone Company. General received in exchange the en tire stock issue of Canton Telephone Company, consisting of 1,000 shares of Common Stock. While the par value of Canton's Common Stock is $25, the actual equity acquired by General from the twelve shareholders of Canton exceeds $407,000. Operating from two exchanges in the C itie s of Canton and Jasper in Cherokee and Pickens County, Canton Telephone Company served some 4,700 subscribers at the time of G eneral's acq u isitio n . General plans to operate the Company as a wholly-owned subsidiary in accordance with the laws, ru le s and regulations of the Commission.
On December 1, 1964, Walker County Telephone Company purchased at a p rice of $20,000, Broomtown Telephone Company and a ll it s operating f a c ilit ie s , franch ises, and c e rtific a te s of Public Convenience and N ecessity. Walker County plans to remove and junk a ll the Broomtown telephone f a c ilit ie s and replace it with one, two and five -p a rty service. I t is estimated that the improved se rvice , which w ill cost some $86,000 to b u ild , w ill be availab le to 100 old subscribers, as w ell as 50 new subscribers w ithin nine months afte r acq u isitio n . Provided at presently authorized rates of Walker County, the new service w ill be handled from the LaFayette exchange of that Company.
WESTERN UNION: Western Union o ffers the only national telegraph message service fo r the
p u b lic through more than 15,000 telegraph o ffice s and agencies, and also furnishes d ire ct te le p rin te r and Desk-Fax connections to more than 51,000 customers. It also furnishes p rivate w ire record, voice, and alternate recordvoice communications systems; telegraphic money order service; Telex, which provides subscribers with d ire ct subscriber-to-subscriber, two-way p rin te r d ia l exchange communications; and a number of associated sp ecial services.
- 60-

During the year, Western Union continued it s building and expansion pro gram, the larg est in it s h isto ry. This program has already provided fo r such important projects as building a transcontinental microwave system, in s ta lla tio n of the w orld's larg est d ig ita l data communications system (AUTODIN) fo r the m ilita ry services, and expansion of Telex on a nationwide b asis. During 1964 a new broadband exchange service was inaugurated in 19 c itie s . This new sw itching service provided on a t o ll b a sis, customer-to--customer wide-band channels fo r transm itting highspeed data, facsim ile , and other types of record communication, and voice-on an alternate b a sis. Also, as a f ir s t , Western Union placed in service in January 1964 a p rivate automatic telephone system fo r the Philadelphia-Baltim ore-W ashington Stock Exchange. The th ree-city network, lin k in g 32 brokerage firm s in Washington and Baltim ore d ire c tly with the Exchange's trading flo o r at Philadelphia, is used to obtain quotations and to place orders fo r stocks and bonds.
- 61-

APPENDIX "A" UTILITY COMPANIES OPERATING IN GEORGIA

ELECTRIC
Georgia Power Company--- -- -,------- --------------- ------Atlanta, Georgia Savannah Electric and Power Company-- *-- -- ---- -- t-------- Savannah, Georgia

GAS

Atlanta Gas Light Company------------- *------------------Atlanta, Georgia

Chattanooga Gas Company -------- ------------------ -- ------Chattanooga, Tenn.

Gas Light Company of Columbus-- ---------- ------ ----- ----Columbus, Georgia

Georgia Gas Company--- -----------------------------------Gainesville, Georgia

Savannah Gas Company

-- -- -------- -------------------- Savannah, Georgia

TELEPHONE

Alma Telephone Company, In c. ------------------------------ --------- . Alma, Georgia

ABBBlurtuallaelnostcRlehUidygtCeiTolieutTlneieetpylehspoRhnCuoeornmaeCploaCTmnoyepmlea-pnp-a-yh-n,o-y-nI-ne----c-C---.---o------o-----p----.---,---------I--n------c------.----------------------------------- --_--_--_TM-_--_---_--

Sapelo Isla n d , Georgia "R1up Ridare. Georgia Nahunta, Georgia Statesboro, Georgia

Byron Telephone Company, In c . ----- --------------------- ---- -- -- Byron, Georgia

Cairo Telephone Company -- ---- ---- -- -- -- -- -- ---- -- -- --C airo, Georgia

Camden Canton

Telephone Telephone

Ss Telegraph Company --

Company, -- ----

In c. ------------ ------------

------ St. Marys, Georgia Canton , Georgia

Cherokee Telephone Company, Inc -- -- -- -- -- --

--D onalsonville, Georgia

Chickamauga Telephone Corporation - -------------------- ---------- Fayette, Alabama

C itizens Telephone Company, In c. ------------------------ -------- - L e slie , Georgia

Coastal U t ilit ie s , In c. --------------------------------------- ------ H in e sv ille , Georgia

Comer Telephone Company ---- ---- ---- -- -- ---- Commerce Telephone Company -- -- ---- -- -- --

--

-- Comer, Georgi a __ noTTiTperre, Georgia

Darien leiepnone company D ixie Telephone Company --------------------------------

__ _ ---- -- __ __ _

Darien, Georgia f!*|flxtnn , Georgia

EFGaelilrnimjearoyaulnTTteeTlleeepplehhpoohnnoeeneCCoommCoppmaannpyyan-oy-,f---GI-n-e-co-.-r-g----ia---------------------------------------' ---W-----------_ E"pPonlilrbirjmaamnym, NitG.oerGtohergoCiraaeriani ina

General Telephone Company o f the Southeast -- ----------------- Durham, North Carolina

GGGloeenlodwrgo1io)a0d3*.TxelelleeiepiephpnonononeneeCcoourmopmpoparanany,t/,ioxnnc------------------------------*- ---------------------_GBM1elanewknen!tnlrydie,.

Georgia G eo rsia , Georgia

Gray-Haddock Telephone Company, In c. ------------------ ---------- Gray, Georgia

Hart county leiepnone company ---- -- -- -- -- --

--H artw ell, Georgia

H aw kinsville Telephone Company - ---- -- ------ -------- ---------- - H aw kinsville, Georgia

Hom ervilie In terstate

Telephone leiepnone

Company, In c. --------------------company ---------------- --------

---------- H om -, ----Vapt

ervilie, P o in t,

Georgia Georgia

Je ffe rso n v ille Telephone Company, In c. --------- -- ----,,----- Je ffe rs o n v ille , Georgia

Loco Telephone Company-------------------------------------- -,--------Mutual Telephone Company, In c . ---- -- -- ----

L in c o ln to n , Manchester.

Georgia Georgia

N elson-Ball Ground Telephone Company, In c. -- ----- ------ --- B a ll Ground, Georgia

(2)
Pembroke Telephone Company, Inc. ----- ----Pineland Telephone Co-op., Inc. -----------Plant Telephone & Power Company, Inc. -----Planters Rural Telephone Co-op., Inc. -- ---Progressive Rural Telephone Co-op., Inc. -- Public Service Telephone Company ---------Quincy Telephone Company-- ---------------Ringgold Telephone Company ----------------Seminole Telephone Company, Inc. ----------Sikes Telephone Company, Inc. ------------Southern Bell Telephone & Telegraph Company South Georgia Telephone Company, Inc. ----Standard Telephone Company ---------------Statesboro Telephone Company -------------Thomaston Telephone Company, Inc.---------Trenton Telephone Company--- -------- ----Union Point Telephone Company, Inc. ------The Utelwico, Inc. ------------ ------------ Walker County Telephone Company ----------Waverly Hall Telephone Company -----------Wayne Telephone Company, Inc. ------- -----Westco Telephone Company---- -------------Wilkes Telephone & Electric Company ------Wilkinson County Telephone Company, Inc. --

Pembroke, Georgia Metter, Georgia Tifton, Georgia Newington, Georgia Rentz, Georgia Reynolds, Georgia Quincy, Florida Ringgold, Georgia Donalsonville, Georgia Glennvilie, Georgia Atlanta, Georgia Sylvania, Georgia Cornelia, Georgia Statesboro, Georgia Thomaston, Georgia Trenton, Georgia Union Point, Georgia Talbotton, Georgia LaFayette, Georgia Waverly Hall, Georgia Odum, Georgia Weaverville, N. C. Washington, Georgia Irwinton, Georgia

TRANSIT COMPANIES
Atlanta Transit System ----------------------------------- Atlanta, Georgia Bibb Transit Company-- -------- -------------------------- Macon, Georgia Columbus Transportation Company------ -- -----------------Columbus, Georgia

TELEGRAPH Western Union Telegraph Company -- --- ---------------------Atlanta, Georgia

December 31, 19&U

APPENDIX Bn
R esidential Service SCHEDULE "A-12"
115/230 V olts, Single Phase
AVAILABILITY: A ll te rrito ry served d ire c tly by the existin g r e t a il d istrib u tio n lin e s of the Company.
APPLICABILITY: Applicable only to service used fo r re sid e n tia l lig h tin g , cooking, heating, re frig e ra tio n and in cid en tal power, when supplied through one meter to each in d ivid u al residence or apartment u n it.
RATE: F irs t 8 KWH per month-- ------ -- @---------- -5.00 per KWH Next 32 KWH per month------------- @--- -- ----- 4.00 per KWH Next 60 KWH per month-- ---- --- --@-------- ----- 3.00 per KWH Next 100 KWH per month--- ---- -- ------- -- 2.00 per KWH Next 400 KWH per month--------- -- @------------ -- i .00 per KWH Next 00 KWH per month----- -------------------- -- 1.50 per KWH
WATER HEATER DISCOUNT: When the customer has in sta lle d and in active use as h is sole source of hot water service an e le c tric storage type water heater which conforms to Company sp e cifica tio n s, there sh a ll be a discount on a ll energy used by the customer in excess of 600 KWH per month in the amount of 0.50 per KWH, but such discount sh a ll not exceed |1 .5 0 in any month.
SEASONAL DISCOUNT: 0.20 per KWH on a ll usage over 1250 KWH in each of the four w inter b illin g months of December-March, in clu siv e .

Issued December 11, 1964 Non-Docket

E ffective January 1, 1965

Appendix nBn continued*
RESIDENTIAL SERVICE FOR THE ALL-ELECTRIC HOME OPTIONAL RATE SCHEDULE "TE-2" 115/230 V o lts, Single Phase

AVAILABILITY:
A il te rrito ry served d ire c tly by the existin g re t a il d istrib u tio n lin e s of the Company.

APPLICABILITY:

Applicable only to service required to operate re sid e n tia l ap p li ances, lig h tin g , heating, and in cid en tal power, when supplied through one meter to each in d ivid u a l residence or apartment u n it.

This rate is optional with the regular re sid e n tia l rate, Schedule A-12, and may be elected on an annual basis by any customer whose p rin cip a l energy requirements are furnished by e le c tric service purchased hereunder; provided that such service includes e le c tric water heating, e le c tric cooking, and e le c tric space heating fo r a ll dw elling space in the home.

ANNUAL RATE:

F irs t 9,000 KWH per year @ 1.5$ per KWH Over 9,000 KWH per year @1.2$ per KWH

MINIMUM ANNUAL CHARGE:

$135.00 (including fu e l adjustm ent).

AVERAGE MONTHLY PAYMENT:

Customers to ta l annual consumption w ill be estimated and a uniform b ill w ill be rendered monthly fo r twelve months fo r one-twelfth of the estimated annual b ill. B illin g fo r the second twelve months w ill be based on the actual usage of the f ir s t year and sh a ll be the amount necessary to produce an approximately zero balance at the end of the second year. Subsequent years sh a ll be based on the immedi ately preceding twelve months.

Issued December 11, 1964Non-Docket

E ffective January 1, 1965

APPENDIX "C"
RATE TABLE MILEAGES AND CORRESPONDING RATES

Georgia In trastate

RATES

STATION TO STATION

PERSON TO PERSON

,

Paid

C ollect

Paid and C ollect

MILEAGE *

Day,Nigh:b. S at.. Sun.& "A fter 8" .Rates Day (fe c i.. Sun.) ___ Night & Sun. I

In itia l

Overtime

Amt. to be Added In it , to Charges Computed: 3
on "Paid" Basis Mins.

Add'1. Min. In ib A ddi. Min. I F i3rs t A. fAte..r. Mi3ns] F irs t: AftEerJ

0- .10-4m .05-2m

.15

.25 .08 .05 .25 .08 .05 1

9- 13 .15-3m .05-2m

.10

.30 .10 .05 .30 .10 .05 i

14- 16 . 20-3m .07-lm

.10

.35 .12 .07 .35 .12 .07

19- 24 . 25-3m .08-lm

.05

.40 .13 .08 .40 .13 .08

25- 3C .30-3m .10-lm

.00

.45 .15 .10 .45 .15 .10

_Paid and C o llect__

Day E xcl.

Sun. & "A fter

_Sat.._. & Sun. Nisht &Sat. 8" Rates

3 Addfl . 3 lAdd'l. 3 jA d d 'l.

Mins. Min. Mins .| Min. Mins. ! Min.

31- 42 .35 .12 .35 .12 .35 .12 .50 .17 .12 .50 .17 .12 43- 56 .40 .13 .40 .13 .40 .13 .65 .21 .13 .60 .20 .13
57- 70 .45 .15 .40 .13 40 .13 .70 .22 .15 .60 .20 .13 71- 85 .50 .17 .40 .13 .40 .13 .80 .25 .17 .65 .22 *13
86-100 .55 .18 .40 .13 .40 .13 .85 .26 .18 .70 .23 *13

101-124 .60 .20 .45 .15 .45 .15 .95 .30 .20 .75 .25 .15 125-148 .65 .22 .45 .15 .45 .15 1.00 .30 .22 .75 .25 .15 149-172 .70 .23 .50 .17 .45 .15 1.10 .33 .23 .80 .27 .17
173-198 .80 .27 .55 .18 .50 .17 1.15 .33 .27 .85 .28 .18 199-226 .85 .28 .60 .20 .50 .17 1.20 .34 .28 .90 .30 .20 227-252 .90 .30 .65 .22 .50 .17 1.25 .36 .30 .95 .32 .22 253-280 .95 .32 .70 .23 .50 .17 1.30 *37 .32 1.00 .33 .23

281-310 1.00 .33 .70 .23 .50 .17 1.40 .41 *33 1.05 .35 .23 311-340 1.05 .35 .75 .25 .50 .17 1.45 .42 .35 1.10 .37 .25 341-370 1.10 .37 .80 .27 .55 .18 1.50 .43 .37 1.15 .38 .27
371-400 1.15 .38 .85 .28 .55 .18 1.60 .46 .38 1.25 .42 .28

` DETERMINED IN ACCORDANCE WITH V-H SYSTEM.
Issued December 14, 1964
Non-Docket

1 ..

.... ... .

Georgia, In tra state , Feb .l,196 i

APPENDIX D

ANALYSIS OF GAS REFUNDS FOR THE YEAR ENDED DECEMBER 31 1964
SAVANNAH GAS COMPANY

Balance January 1. 1964. Add: Cash received from pipe lin e company Reduction in cost of purchased gas
Amount availab le fo r refund Deduct: Refunds made to: Firm gas customers Large commercial customers Large in d u stria l customers Public auth o rities
Amount refunded to customers
Expenses incurred in making refund Balance availab le fo r refund December ,31 1964

$ 10,677 24,781
$153,027 8,209 2,811 5,950

$180,953 35,458
$216,411
169,997 $ 48,414
1,504 $ 44,910

ATLANTA GAS LIGHT COMPANY
B alan ce January 1. 1964 Add: Refunds received from supplies net of increased cost absorbed by company
Amount availab le fo r refund Deduct: Refunds made to customers
Expenses incurred in making refunds Balance availab le fo r refund December 31. 1964

$2,307,521
131,963 $2,439,484 2,182,978 $ 256,506
3,029 $ 253,477

GAS LIGHT COMPANY OF COLUMBUS

Balance January 1. 1964 Add: Cash received from pipe lin e company
Amount availab le fo r refund Deduct: Refunds made to customers
Balance availab le fo r refund December 31, 1964

$128,120 10,005
$138,125 125,133
$ 12,992

In 1964, e le c t r ic heating took the g ia n t steo the in d u stry has been w a itin g fo r . R e s id e n tia l e l e c t r i c h e a tin g i n s t a l l a t i o n s showed a 36'f> in cre a se n a tio n a lly th is y e a r comoared to 1963. T o ta l e l e c t r i c a l l y heated homes added were:
1963 - 250,000 1964 - 340,000
This year a ls o saw a gen eral broadening o f the e ic tr.ic heating market in Georgia.

*aHIMDo )

1961

1962

1963

1964

Prepa Decembe

p univfrs/^
OFRA ES GEORGIA

APPENDIX "F*

Summarized below is certain data pertinent to telephone companies showing the number of telephones in 1964 as compared to 1963,

1964

196?

Total number independent telephone companies

51

Total number cooperatives in operation

4

Common Battery exchanges

1

D ial Exchanges

228

Total Number Exchanges Number of Common Battery stations Number D ial stations

229 49 212.634

Total Number Stations

212,683

Per Cent statio n gain over previous year

8.34$

Number of exchanges in process of conversion

to d ia l

0

Number in process of being established

6

Number of new exchanges established

2

Total telephone plant in service December 31 $89,847,392

Total plant under construction

4,728,236

53 4 1 228 229 49 196.210 196,259 8.2$
0 4 3 $82,208,219 1,916,071

Number of REA borrowers

37

37

Total amount of loans approved by REA as of December 31, 1964 $54569,000

Total amount of funds advanced by REA as of December 31, 1964 $43,355,440

Total amount of loans approved by REA as of December 31, 1963 $47,495,000 Total amount of funds advanced by REA as of December 31, 1963 $38,023,796

SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY

Gross plant in service at December 31, 1964 Plant under construction at December 31, 1964
Number common battery exchanges Number d ia l exchanges Total number exchanges at December 31, 1964 Total company stations at December 31, 1964
Summary of Total Georgia Telephone Operations at December 31. 1964

$554,503,835 1 0 ,2 7 3 ,3 1 1
4 242 246 1,345,415

Total number of telephone companies operating in Georgia Total plant in service Total plant under construction
Total common battery exchanges Total d ia l exchanges Total number exchanges Total number stations

56 $644,351,227
15,001,547
5 470 475 1,558,048

December 31, 1964