SIXTH SEMI-ANNUAL REPORT. OFFICE OF THE RAILROAD COMMISSION, To his Excellency, ALFRED H. COLQUITT, Governor : We present your Excellency our report of the action taken by this Commission since the date of our last report. In former reports submitted, we said all in reference to the powers of the Commissioners, which we think should be said, in explanation of the law and the provisions of the Constitution under which the Commission was created. The experience of three years of the operations of the Commission, under the law, certainly serves to illustrate the question of the wisdom or folly of maintaining it. In this view we have deemed it proper to merely submit here our action since our last report, with the reasons that controlled us in arriving at the conclusions embraced in our various orders or circulars herewith presented. Circular No. 15 is as follows: 1st Corn Field and all other peas, car load or less than car load, will be placed in Class D, Standard Tariff. 2d. Marl, ground limestone and slacked lime; in sacks or casks, in car loads or less than car load in C ass L. While the contents of this circular indicate the purpose for which it was passed, we beg to here present the reasons which influenced the Commission in taking this action. The first clause of the order was intended to encourage the production of one of the most valuable agricultural products of our State. By cheapening the rates of transportation we placed the Georgia farmer in the growth of this product, upon equal footing with producers in other States. The general public have been benefited and the railroads have not suffered thereby. The second paragraph of this circular was passed, upon the suggestion of the State Commissioner of Agriculture. fertilizing material, which exists in limitless quantities in this State. We feel confident in saying that this object will be accomplished, in a large measure, to the benefit both of the railroads and of the general public. Circular No. 16, of date July 16th, 1881, reads thus: The following changes in classification take effect August 10, 1881: Rags and paper stock, in sacks, crates or hogshead, C. L., Class 6. Same, less than car load, Class 4. Rags and paper stock, pressed in bales, C. L., Class D. Same, less than car loads, Class 6. The object of the Commission in issuing this order, was to encourage the collecting and saving by our people of articles which enter very largely into the manufacture of paper. The rates, upon certain of these articles, before the passage of this circular, had been almost prohibitory. The effect of the order has been to place the paper-making interests in our State, more nearly upon an equal footing with similar industries abroad; and that too, in our opinion, without injury to the interests of the railroads. Circular No. 17 reads as follows, was passed July 29, 1881: On the Savannah, Florida and Western Railway the maximum rates for all distances on cotton (Class J,) are hereby made thirty per cent. above the "Standard" Tariff. And onclass goods (1, 2, 3, 4, 5, 6, A, B, C, D, E, F, G, H,) for distances over one hundred miles, twenty-five per cent. above "Standard" Tariff. Other classes remain unchanged. Circular No. 18 bears date of September 1, 1881, and reads: On the Savannah, Florida and Western Railway the maximum rates for all distances on cotton (Class J,) are hereby made forty-five per cent. above the "Standard" Tariff. And on class goods (1, 2, 3, 4, 5, 6, A, B, C, D, E, F, G, H,) for distances between 0 and 60 miles, 60 per cent; 60 and 100 miles, 50 per cent; 100 and 150 miles, 40 per cent; 150 and 200 miles, 35 per cent; over 200 miles, 30 per cent. above making, and ours for adopting the suggestion, "Standard" Tariff. Other classes remain unwas to render it practicable, for the people of the State, to utilize a cheap but very valuable His purpose in changed. These two circular orders were passed at the request of the Savannah, Florida and Western Railway Company, and of a large number of influential and representative citizens, served by that line of railway. Evidence was presented to the Commission, by the cfficials of the company, showing that an increase of rates was necessary to prevent loss in operating the road. The citizens referred to, with but few exceptions, expressed a willingness to be taxed with such higher rates as the company might consider necessary to make the operation of the road remunerative. This road had, therefore, been almost local in its operations; and was controlled by no connecting railroad. It has been the policy of the Commission, when practicable, to bring the authorities of the railroads and the public served thereby together before the board; and to adopt rates which might be agreed upon, if considered to be just and reasonable, to both the railroads and the public. This policy we have found to work satisfactorily in certain cases, where the roads were local, or comparitively so in their operations. Circular No. 19 was issued by the Commission December 1, 1881. It is in the following terms: The maximum rates allowed on fertilizers will, on and after January 1, 1882, be twenty (20) per cent. higher than Class K of "Standard Rates," except when rates have been agreed on between different railroads for a less rate, or may hereafter be agreed on by such roads. After a trial, covering a period of several months, the Commission believed that their standard rate for transportation of manufactured fertilizers was, at that time, too low. This resulted from the great expense to the railroads, consequent upon storage, detention of cars, etc. In view of this, the Commission concluded to temporarily advance the rates on fertilizers; and accordingly issued said circular. Circular No. 20 was passed February 10, 1882, and is as follows: The following changes will take effect April 1st, 1882: 1st. An additional class (R) is hereby added to the Commissioners' freight classification, and the maximum rates per hundred pounds allowed for each of the divisions of that column, (R), in the Commissioners' "Standard Freight Tariff" hereafter, shall be the same as those heretofore allowed Class D, in the "Standard Freight Tariff," which was dated May 1, 1880. 2d. Spirits Turpentine, C. L., carrier's risk, Class R. Rags, pressed in bales, C. L., carrier's risk, Class R. Rice in car loads, carrier's risk, same maximum rates as Class N. Barrels, half barrels and kegs, empty, except ale and beer barrels, L. C. L, Class R. Under Note 1, reduced rates can be made for these articles. 3d. All connecting railroads, which are under the management and control by lease, ownership, or otherwise, of one and the same company, shall, in applying the rates and divisions allowed below on Class C, D and F, be considered as constituting but one and the same charged on any single shipment, for any distance. railroad. But not less than 25 cents need be 4th The right to charge any additional percentages on Classes C, D and F, which may have heretofore been allowed by circular, to any railroad, is hereby revoked; and the following columns are substituted as the "maximum rates of the Commissioners' "Standard Tariff" on Classes C, D and F, in lieu of those heretofore in use: འཡ 120 130 140 150 160 170 180 190 200 210 220 6 5 53 12 II 10 11 11 12 10 11 11 car-lords. Class D comprises grain, malt and cow peas, in any quantity, and hay, shucks, fodder and straw pressed in bales, and corn in ear, in carloads, to be charged as 20,000 pounds. Class F comprises flour and meal, in barrels, any quantity. 5th. Class C comprises flour and meal in | still pending before the Supreme Court of the sacks, any quantity, and mill stuffs in less than State, are hereunto appended. This bill of the complainants, the answer and cross-bill of the Commissioners, demurrers, etc., are fully set forth in Appendix A. The special attention of your Excellency is invited to these proceedings. The decision of the able Chancellor, refusing the injunction, is also presented. All these, taken together, show fully the grounds upon which the Commission acted in passing the circular here under consideration. These proceedings will also show clearly the reasons why, in the opinion of the Commission, this circular is applicable to the Georgia Railroad as well as to the other railroads of the State. The railroad corporations of this State derive their franchises from our own people; and are protected by our State laws in all their rights of property, and should give our own public, in the matter of transportation, equal advantages with those given to the people of other States. Complaints to the Commission were made by the millers of this State that unjust discriminations in transportation by the railroads were made against their products, in favor of similar industries abroad. It was plain that these discriminations would have the effect of driving these industries from the State; and would paralyze, in a measure, grain producing interests of Georgia. the After full consideration, the Commission concluded that these complaints were just; and passed Circular No. 20, which they thought would, to some extent, afford a remedy for the evil complained of. We here give a brief statement of the reasons which led us to these conclusions. We would call your Excellency's attention to Appendix A, hereto attached, for a more full and particular statement of the grounds upon which this action of the Commission rests. Much complaint has been made, on the part of the railroads, against the effects of this order. The railroads have urged that the order, if enforced, would result in very serious injury to their interests. Consulting brevity, we must content ourselves with embracing in the body of our report a very short statement of the grounds upon which this order rests. One instance alone, quoted from our answer filed in said case, will, in our opinion, be here sufficient to show the unjust discriminations, practiced by the railroads, against the millers and farmers of our State, in favor of Western millers and farmers. A Cincinnati or Louisville miller can ship a barrel of 200 pounds of flour from his place to Charleston, SC., directly through Atlanta-a distance of 783 miles-for 30 cents per barrel. If an Atlanta miller shipped 300 pounds of wheat from Cincinnati or Louisville he paid therefor 93 cents freight to Atlanta-a distance then paid 60 cents per 100 pounds, or $1.20 per of 474 miles. After grinding it into flour he barrel of 200 pounds of flour freight from AtJanta to Charleston-a distance of 309 milesmaking $2.13 per barrel freight that the Georgia miller really paid on a barrel of flour ground in this State as against 30 cents that the Cincinnati and Louisville miller paid freight on a barrel of flour ground there and transported over identically the same roads and $1.83 per barrel against the Georgia miller in the same distance, being a discrimination of favor of the Western miller, and against the farmer of our State in favor of the Western farmer. Out of a rate from Cincinnati Railroad for hauling 171 miles voluntarily acor Louisville to Charleston, S. C., the Georgia cepted 6 1-5 cents as tolls on a barrel of flour; The application for injunction was based, in but the proportion of the rate on a barrel of brief, upon the grounds, first, that the rates re-flour shipped by a Georgia miller from Atlanta quired by these circulars were unjust and un- miles, was about 32 cents. to Charleston, which that road transported 171 That is, over five reasonable, and secondly, that by a provision of times as great a rate was collected by the its charter the company was not subject, in the Georgia Railroad on a Georgia miller's barrel fixing of its rates, to the control of this Com- of flour shipped to Charleston, S. C., as was voluntarily accepted by that road on a barrel mission. of flour shipped by a Čincinnati or Louisville The full proceedings in this cause, which is miller the same distance over its road. And in The Georgia Railroad and Banking Company and Wm. M. Wadley, as the lessee of that company, filed their bill against the Commission, praying an injunction restraining the operation of this circular and of circular No. 21, on their railroad. * * addition the Georgia miller was required to ship as much as a car-load of flour to get the benefit of even this rate, while the Cincinnati miller was permitted to ship any quantity, from one barrel up, at the greatly discriminating rates mentioned, granted him by the railroads. This shows sharply the discrimination against our millers and our people. The rates of Circular 20, to which the Georgia Railroad so strenuously objected, permitted it to charge 28 cents for carrying a barrel of flour 171 miles; which was more than four and one half times as much as that road was then voluntarily accepting for the transportation of a barrel of flour shipped from beyond the State. These discriminations manifestly tended not only to seriously injure our milling and grain producing interests; but of necessity were burden-ome and oppressive to our public generally. The Commission sought, by this circular, to place our industries, in question, more nearly upon a footing of equality with similar interests abroad. We are satisfied that the enforcement of this order will, in a large measure, accomplish this very desirable result. a spirit of complaint; but to suggest that if, under the rules of practice obtaining in such cases, one of our ablest Chancellors has found it necessary to allow an injunction to stand in effect, which, in his opinion, had no legal ground to support it, then a legislative corrective ought, in our opinion, to be applied. While this restraining order remains of force the people, who are served by the Georgia Railroad, are subjected to discriminating rates, while the people, served by every other railroad in this State, have the benefit of the cheapened rates on flour, meal, grain, etc., specified in Circulars 20 and 21. If this rule of practice is held correct by the highest court, then it is manifest that it would be in the power of the railroads to easily thwart the will of the Legislature, expressed through this Commission. Another cause of complaint made to the Commission was that certain railroads, which were being operated virtually by one and the same corporation, were charging a combination of the maximum local rates allowed, making, in many instances, the totals of the rates charged, exorbitant and unjust to the consumer. After investigation the Commissioners met this complaint by paragraph 3 of Circular 20, which, in their opinion, will correct this evil. Circular No. 21, dated March 3, 1882, is as follows: A careful examination of the proceedings, in the cause referred to, will show that no attempt was made by the Georgia Railroad Company, or by Mr. Wadley to contravert the truth of the facts set forth in the answer of the Commissioners, as to that railroad's discriminations against the people of Georgia therein mentioned. The complainants in the cause seemed content to rely entirely upon the legal proposi-lowed by Commissioners' "Standard Tariff," tion that they had the exclusive power by the law of their charter to fix their own rates within certain maximum limits. As has been already intimated, the Chancellor refused the injunction, holding that the company did not have, by the law of their charter, the right to fix rates, as it claimed to have. In this connection we invite your Excellency's attention to the fact that, while the injunction was refused by the Chancellor, he nevertheless deemed it his duty, under his construction of the law, to allow the restraining order granted against the Commission to remain of force until his action could be reviewed by the Supreme Court of the State. The effect of this ruling is to allow the injunction, which was refused, to remain virtually in force against this Commission, for a length of time which may be almost indefinite. We do not advert to this in On and after April 1, 1882, the rates of freight, transported by regular passenger trains, must not exceed one and one-half the rates al for first-class freight by ordinary freight trains; but a charge of 25 cents may be made for any single shipment. This circular was passed for the purpose of reducing the charges made by express companies and by the railroads, on shipments by passenger train, and on extra baggage. We thought the maximum charges allowed were too high; and they were more generally complained against than any other character of railroad service, hence this order. Circulars 22 and 24 will be found below. Circular 22 reads thus: The Georgia Pacific Railroad Company and the Augusta and Knoxville Railroad Company are each permitted to add the percentages mentioned below to the Commissioners' "Standard" Freight Tariff and charge such totals as maximum freight rates. Add thirty (30) per cent. to Classes 1, 2, 3, 4, 5, 6, A, B, E, G and H, Add fifteen (15) per cent. to (cotton) Class J. Add twenty (20) per cent. (heretofore allowed every other railroad by Circular 19) to Fertilizers. Classes C, D and F remain at "Standard" rates allowed by Circular 20. All other classes remain at Commissioners' "Standard" rates The Georgia Pacific Railroad and the Augusta and Knoxville Railroad are each placed in passenger Class B, and allowed to charge four (4) cents per mile. Circular 24 is as follows: The Gainesville, Jefferson and Southern Railroad, and the Marietta and North Georgia Railroad are permitted to add the percentages mentioned below to the Commissioners' "Standard Freight Tariff," and charge such totals as maximum freight rates. Add thirty (30) per cent. to Classes 1, 2, 3, 4, 5, 6, A, B, E, G and H. Add fifteen (15) per cent. to "Cotton" rates. Add twenty (20) per cent. to Fertilizers," in Class K. Classes C, D and F remain at "Standard Tariff" allowed by Circular 20. The Gainesville, Jefferson and Southern Railroad is placed in Passenger Class B, and is permitted to charge four (4) cents per mile passenger fare. This circular to take effect September 15th, 1882. The roads mentioned in these two circulars, being in an incomplete state, and not controlled by connecting railroads, the Commission, after investigation, thought proper to allow to them the increased rates named in these circulars. Circular No. 23, issued by the Commission, is in the following terms, and bears date August 4, 1882: On and after September 1, 1882, the maximum rates allowed on rice, in any quantity for any distances will be those of Class C with fifty (59) per cent. added thereto, and subject to rules in 3d paragraph of Circular 20, dated February 10, 1882. After due investigation of the subject the Commissioners thought that the rates of transportation charged on rice were unjustly and unreasonably high. The effect of Circular No. 23 will, in our opinion, be to stimulate the production of rice; and by increasing the quantity of the article transported add to the revenues of the roads, as well as to the wealth of our people. Passenger Class A, the roads and branches mentioned in Circular 25, passed September 21, 1882, which reads thus: 1st. On and after November 1, 1882, in addition to the roads named in preceding circulars, all portions of the following railroads, branches or leased lines situated in Georgia, are placed in Passenger Class A, (Ticket rate three (3) cents per mile): The Alabama Great Southern Railroad. Gordon and Eatonton; Fort Valley and Perry; Albany and Blakely; Cuthbert and Fort Gaines; the Savannah, Griffin and North Alabama Railroad; the UpThe Cherokee Railroad. son County Railroad. The Columbus and Rome Railroad. The East Tennessee, Va. and Ga. R. R. between The Georgia Railroad between The The Cochran and Hawkinsville. Marietta and North Georgia R. R. The Rome Railroad. 3d. A railroad may charge 25 cents as a minimum full rate and 15 cents as a half rate, where the tare would be less than these amounts. The effect of this and previous orders of the Commission is to restrict all the railroads, branches and leased roads, in this State, to three (3) cents per mile, as the maximum ticket rate for passengers; except the Gainesville, Jefferson and Southern Railroad and the Knoxville and Augusta Railroad, which are allowed to charge four (4) cents per mile; and the Talbotton Railroad, the Sandersville and Tennille Railroad, the Louisville and Wadley Railroad, the Walton County Railroad, and the Gainesville and Dahlonega Railroad, which are allowed to charge five (5) cents as maximum ticket rates. The experience of nearly two years proved to the Commission that the revenues of the railroads in this State were not diminished by The lumber millers along the lines of the reductions of passenger fares. The effect of the Central Railroad and of the Brunswick divisreductions of passenger rates has been to in-ion of the East Tennessee, Virginia and Georcrease the volume of travel on the roads, thus adding to their revenues. In the light of this experience, the Commission has added to the list of the "three cents per mile" roads, or to gia Railroad complained before the Commission that, owing to the depressed price of lumber, they could not continue to operate their mills at the rates of transportation charged by |