3d. Upon the Atlanta Division on all classes, other than "Specials," the maximum rates to be 30 per cent. over "Standard."

4th. Upon Cotton (Class J) the maximum on either Division or on Savannah, Griffin & North Alabama Railroad, for all distances, shall be 15 per cent. above "Standard." All other "Specials" (K, L, M, N, O and P,) remain at “Standard.”

5th. A tariff of joint rates on all the roads operated by the Central Railroad & Banking Company, prepared with the approbation of the Commission, will be furnished by the Company on application.

THE MACON AND BRUNSWICK RAILROAD COMPANY. 6th. The rates applied to the Savannah Division of the Central Railroad apply also to the Macon and Brunswick Railroad in lieu of rates heretofore in force.

THE ATLANTA AND CHARLOTTE AIR-LINE.

7th. The maximnm rates on this road on Fertilizers are fixed at 15 per cent., and on all other classes at 10 per cent. advance on "Standard Rates."

RULES, RATES AND CLASSIFICATION.

8th. In car loads the maximum rates on Rosin and Crude Turpentine shall not exceed Class K of "Standard," and on Spirits of Turpentine shall not exceed Class D of "Standard," and reduced rates may be made under Note 1.

9th. Shingles, Laths and Staves are hereafter included in Class O. 10th. To RULE 1 prefix the words, "Unless otherwise specified.” 11th. Note 1 having been sometimes misconstrued, is altered so as to read as follows:

NOTE 1. The rates specified for Ores, Sand, Clay, Rough Stone, Common Brick, Bone, Lumber, Shingles, Laths, Staves, Empty Barrels, Wood, Straw, Shucks, Hay, Fodder, Corn in ear, Tan bark, Turpentine, Rosin, Tar, Household Goods and for articles manufactured on or near the line of road, and for materials in such manufacture are maximum rates, but the roads are left free to reduce them at discretion, and all such rates are exempted from the operation of Rule 6. Any complaints as to such rates will, on presentation, be duly considered. Shippers of car loads in Classes L, M, N, O and P may be required to pay the cost of loading and unloading.

R. A. BACON, Secretary.

JAMES M. SMITH, Chairman.

EXHIBIT A.

ANSWER OF THE COMMISSIONERS TO THE BILL IN CHANCERY OF GEORGE H. TILLEY.

GEORGE H. TILLEY

VS.

THE SAVANNAH, FLORIDA &
WESTERN RAILWAY CO.

Bill for Injunction, &c, in the Circuit Court of the United States, for the Southern District of Georgia.

In the above stated case, we, James M. Smith, Cam pbell Wallace and Samuel Barnett, being duly sworn, do make the following statement: The first work of the Commission was a very careful study of the various freight tariffs in actual operation on the several railroads in this State, and also for a broader basis of induction, of the roads of some other States, both contiguous and remote. This study was embarrassed by the complexity arising from the large number of classes of freight, and the variety of distances. To avoid this complexity in the prosecution of results, the rates in the tables to be presented are given only on selected classes and for selected distances, approximating sufficiently for a general view, the results of a fuller comparison. The material for this fuller comparison, however, are also given-see Exhibit 2-but they will be found not largely to vary from the briefer and more general view. The selected classes are as follows, viz: Class 4 as representing about the mean general merchandize embraced in the numerical columns, (B) Bacon and (D) Grain, as representing the lettered columns, and Cotton, the most important single item of freight.

The general result as to the relative results of the Savannah, Florida & Western Railroad, as compared with other leading roads in the State, is to be seen in the following table;

TABLE

Showing a comparison of the Tariffs of all the leading Railroads of Georgia over 75 miles in length, operating these rates in actual operation in March, 1880, as established by the Railroad authorities, untrammelled by the Railroad Commission, and furnished the Commission as the basis of information as to the Rates then existing.

The material for comparison of the rates of expenses to gross receipts at our command was quite imperfect.

There were no recently printed reports of the Western & Atlantic Railroad, the Macon & Brunswick Railroad, the Brunswick & Albany Railroad, and the Savannah, Florida & Western Railroad. The following brief tables show the ratio on several roads:

AS TO REASONABLE AND JUST PROFITS, the views taken by different railroad presidents and experts, as to a satisfactory rate of profit, were diverse. In the argument of Gen. E. P. Alexander, President of the Georgia Railroad, before the railroad committees of the Legislature, and before the Commission, he stated that six per cent., if reliable, on the value of the Georgia Railroad stock would be satisfactory. Col. Wadley fixed upon seven per cent. The Railroad Commission inclines to the view that eight per cent. would be about the proper rate, viz: seven per cent. as lawful interest, and one per cent. for contingencies, spent on road and other investments. Bonds of the United States and of various cities and corporations, and of the different States bearing less rates, were at par or above.

Mr. Haines' view required 10 per cent. Presenting these views in a tabular form, the result is as follows:

A road charging high rates would do well to get 7 per cent., perhaps, while a road with low rates might properly not be checked so low,

!, B

The inquiry, "Upon what sum should a given road pay interest?" involves many and nice considerations. Evidently, in the opinion of the Commission, the value of the property, as distinguished from its original cost, is the criterion. But to determine the value is different. Still, practically, this determination must needs be frequently made and acted on. Valuation is necessary annually, for taxation-almost daily for sales and purchases, such a valuation as determines practical application.

These general views of principles and facts open the way for a closer discussion of the action of the Commission and its reasons. The objects as set forth in the law were two-fold-the prevention of extortion and unjust discrimination.

The general mode of procedure of the Commission is set forth in the first semi-annual report herewith appended, as exhibit No. 1, from which it will be manifest that a very broad basis of induction was before the Commission in many particulars-derived from the action of other States-from reports of Commissioners of other States and from the railroad reports of this State. In some respects these reports, however, fail to furnish adequate information, and hence the need of improved methods of keeping accounts, fundamental to the decision of the question as to what rates are just and reasonable for each road.

The basis of estimate as to what is just and reasonable, may be briefly set forth as follows, viz: In their double aspect as corporations of a quasi public character, and also private corporations in their means and resources, the same railroad corporations are entitled to a reasonable profit on the value of their corporate property. We pray for light from the court, if it can give better methods, being very desirous of a right basis.

The value must be ascertained, not merely the cost, for railroad property like all others fluctuates in value,