REPORT.

OFFICE OF THE RAILROAD COMMISSION OF GEORGIA.

ATLANTA, GA., October 15th, 1897.

To His Excellency, W. Y. Atkinson, Governor :

In obedience to the requirements of section XIV of the Act creating the Railroad Commission of Georgia, we have the honor to submit this, the Twenty-fifth Report of the transactions of this Commission during the past year, together with recommendations for legislation which we deem advisable under the provisions of this Act.

The circulars issued from time to time embody the various changes made in the rules, tariffs, &c., by the Commission during the past year, which are annexed and referred to as a part of this report.

WORK OF THE COMMISSION.

The many matters of local and transitory interest which have daily required our attention, and which were decided and disposed of without making any material change in classification or rates, will not be specifically named, nor noticed in detail.

CHANGES IN CLASSIFICATION AND RATES.

There has been no increase in any rate upon any commodity worthy of mention. The Commission has, however, lowered rates on the following articles, viz.: Monuments and grave stones, packed and prepaid, have been reduced from double first class to first class, at carrier's risk, and from second to third class owner's risk, or fifty and ten per cent., respectively. The rate on soap stock was reduced by the removal of ten per cent. in addition to the Standard Tariff, allowed most of the roads previously. The car-load weight of cotton-seed hulls was increased from 20,000 pounds to 25,000 pounds, and the class changed from class "G." to

of 6th class in L. C. L. lots; per cent., respectively. These On most of the roads the reduc

class "P.," effecting a reduction in the rate of 42.6 per cent. Salt, L. C. L., was changed from class "B." to class "C.," or a reduction of 40 per cent. The car-load weight of brick has been increased from 30,000 pounds to 40,000 pounds, at the same rate per car load, making a reduction of 33 per cent. in the rate. Monuments, finished but unlettered, have been given the same rate as rough stone, changing same from first class to class "P." in carloads, and from first-class to reduction in rates 863 per cent. and 73 figures are based on the Standard Tariff. tion was considerably greater, they being allowed various percentages in addition to Standard rates. All percentages above Standard Tariff were removed from fertilizers, and the rates made class "M." less ten per cent., and class "K.," less ten per cent., in car loads and less than carloads, respectively, making an average reduction of the rates on fertilizers in this State of about 18 per cent. The rates on kainit and cotton-seed meal were reduced the same as those on fertilizers, or about 18 per cent. The rate on saws has been reduced from 1 times first class to first class packed and to second class if boxed, or 333 per cent. and 40 per cent., respectively. Sizing, for factories, has been changed from fifth to sixth class, in carloads, or a reduction of 27.7 per cent. In lots less than carloads this commodity has been made fifth class instead of fourth, or a reduction of 18 per cent. in the rate.

The above enumerated reductions in rates on the different commodities, when taken in the aggregate, make a heavy reduction in the revenues of the roads. While it is the policy of the Commission to give to the people as low rates as can be made with justice to the roads, and while the Board is impressed with the fact that there are other commodities which seem to be heavily burdened, the Board has declined to grant reductions in a number of cases, feeling that they could not justly make further general and material reductions in the revenues of the roads at this time; as some lines are now failing to pay their operating expenses and fixed charges under the rates at present allowed, while a large majority of them barely earn sufficient revenue to pay cost of operation and fixed charges. Under present conditions, any considerable reduction of the income of the roads, would place many of them in circumstances likely to terminate in receiverships.

RAILROADS AND THE RATE FIXING POWER.

Railroads are the great land highways of commerce and travel; they are the arteries of transportation; the life of the nation. They affect to an incalculable degree the interests of every citizen and every industry. They tax the commerce of the country, and in return afford accommodations for transportation and travel. If this power to tax is left unrestrained, and no regulation is provided by law for the control of these great highways, they may arbitrarily extort from the people unjust and unreasonable charges, and make unjust discriminations against persons and places, greatly to their damage and detriment. The very nature of things demands a commission to stand between the people and the roads, to make reasonable and just rates of freight and passenger tariffs; to make equitable and proper rules and regulations for the handling and delivering of freights; to prevent unjust discriminations against persons and places, etc. This duty is an arduous task, and one of great responsibility, in the performance of which there are many things to be considered; such as the different conditions surrounding the different roads, industries and communities to be affected.

From the standpoint of the people, it may be said that rates are always too high; and from that of the railroads that rates are always too low. Between these extremes it becomes the duty of a railroad commission to find the measure of just and reasonable rates to all parties concerned, taking into consideration all of the circumstances and environments, and to establish and maintain the same.

After having ascertained the amount of revenue necessary to pay fixed charges on investments safely and properly made, and operating expenses honestly and economically expended, the duty which then confronts a commission is that of making a distribution of the whole tariff upon the various classes and commodities in such relative proportions as will be just to all; and, when successfully performed, the problem of fixing just and reasonable rates has been solved.

No exact or arbitrary rule can be laid down for fixing a just and reasonable rate on a given article. In doing so the value of such article is not per se a controlling element, further than relates to risk of damage, which is small, and may be offset by insurance. Value figures largely when the proportion of the whole tariff that a commodity can justly bear