Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-10-12
GEORGIA ROAD MAY
CHARGE 2l-2 CENTS
Railroad Commission Unanimously
Grants the Petition Asking Au.
thority to Raise the Rates From
21-4 to 2 IL Cents.

the right to increase its fare from 2 IA to
I-2 cents The change is effective No
vember J.
The vote on the changed rate was unan-
imous, and the formal order was signed
by Chairman w. w. Hill and Secretary
Campbell Wallace. Decisions were writ
ten by all commissioners except Messrs.
Stevens and Gray.
It was only after several efforts that
the petition of the Georgia railroad was
granted. The application set forth that
IA cents per mile was unreasonably low;
that the Central of Georgia, Atlantic
Coast Line and other lines in competition
were permitted to charge the higher rate.
OPINION OF CANDLEh. ~.
The following opinion of Commissioner
Gambler was handed down in the case:
The Georgia railroad petitions the COM
miss on for permission to increase It's
maximum passenger rate from Ia tC
p ID cents per mile, upon the following
grounds;
. First. That the Central OF Georgia, the
Atlantic Coast Line and other roads serv-
ing the same territory are permitted to
charge 2 .1-2 cents. while it is allowed to
charge only IA cents, and that this dis
elimination is unfair:
Second. That said IA cents, the maxi,
mum II is now allowed to charge, is un-
reasonably, low. and not fairly compens9r
tory. 49, ..F g.. ......v. -.
do not believe the first ground is At
ali tenable. and were the petition based
on IL alone should not hesitate to. vote
to deny II. The. commission is required by
law to fix tariffs for each road in the
state, and these are fixed according to the
earning capacity, conditions and circum-
stances of each. Lawful and fair dis.
elimination is inferentially enjoined Oh
the commission.
The Georgia railroad Is not allowed TO
charge the same freight tariff az the
Central of Georgia, but 1t has never com
.plaired of unfair discrimination in this
respect. .--.s. .. -. st--lt -
To the second ground upon which the
petition is based. i have given months of
patient and searching Investigation and
consideration. and, am forced to. the com
lclusion that the maximum rate Of 2 IA
certs Is too low. r-s 49,. .-- $500
Prior TO September 1. 1907. the Georgia
railroad was allowed to charge a maxi
! mum passenger rate of cents per mile.
! on that date the maximum was reduced
20 per cent. ? IA cents. This 2 Lucent
rate has now been in effect two years.
The net operative earnings OF the road
for 70 months. ending August 81, 1906, were
S76s SIC 81. 49,
For p months ending August 81, 1907,
were s'35.5S3.57. ...l
For 70 months. ending August 81. 1908,
were $4s6.15S94
For 70 months, ending August 81, 1909.
were s5693o02e '''
An analysis Of these earnings show that
| the gradual recovery OF the past two
years has been entirely in freight earn
! ings and in the reduction of operating
| expenses generally.
| Its gross revenues from passenger fares
| for II months. ending August 81, 1906, were
| s732, 717.95.
For 70 months. ending August 81. 1907
were $774, 5O023
For IL months. ending August 81, 1908.
were S749. 721.1 10. ... .... --.-.
For II months. ending August 81. 1903.
were $714.3l5.5 Sc
A WELL SETTLED FACT. a. 81
It is we'll settled that public utility cor
porations are entitled to earn fair re-
turn upon the present value of the proper
| ty devoted to the public service. From
the evidence obtainable, 1 am satisfied
that this property is today worth approx
mately $11.o0O.0Oo.
The most painstaking investigation into
the operating expenses of the road has
not show extravaganza in its manage
ment. The commission sent its rate ex-
| pert with an expert accountant to the Of
flee of the company in Augusta, and
| these two gentlemen made a careful ex-
animation and analysis of the books and
accounts Of the company and their report
confirms the above statement The ex-
penditures on account OF maintenance and
| equipment are high, but not uilreasonab1y
so. as the road is being relaid gradually
with heavier rails, the road bed is being
ballasted with stone and the equipment
being brought up to date. Such expendi-
lures are to be commended in preference
! to distribution of earnings as dividends
There is need of better equipment and
| improved service on many OF the railroads
| In this state, and so long as earnings are
devoted to these purposes rather than to
| dividends on watered stock and bond is
sues, the commission should, in my opin-
ion, In the interest Of good and abundant
service to the public, lend encouragement
to such policy.
STEADY LOCAL PATRONAGE.
The Georgia railroad runs through an
old settled portion of the state and en-.
Joys a large and steady local patronage.
1t is also true that its volume of inter
state passenger business is not as large
proportionately, as that enjoyed by such
roads as the Southern, the Central, the
Coast Line, the Atlanta and West Point
and the Western and Atlantic. These
roads enjoy a larger percentage of inter
state passenger traffic, in which no reduc-
ton Of rate has been made by law. than
does the Georgia, and the reduction In
interstate rates made by the commission In
1907, beyond question, affected the total
volume of passenger revenue on the Geor-
gia railroad to a larger degree than or
these roads having a larger percentage OF
interstate business.
feel sure that the business depression
which has prevailed throughout the whole
country during the greater part of the
past two years, has had a large influence
in bringing about the decreased passenger
earnings OF this and other roads. and II
is entirely probable that the return OF
normal conditions now so nearly accom-
plished may stimulate and increase travel
TO such an extent that the loss OF revenue
may be recovered. and this consideration
has not been overlooked by me, but at the
same time. considering the density Of pop
ulation along the Georgia railroad, as
well as its character, I have had, and
have yet, outside Of the actual evidence
adduced in the hearings on this petition.
grave doubts IL at present a Ia cents
maximum passenger rate for the Georgia
railroad is sufficiently compensatory.
Upon these considerations and on the
facts as developed by the commission aft
er months of painstaking and thorough
Investigation | feel compelled to vote in