by the coal company or its successor in interest, or by other mines now or hereafter located and operated between Middle Grove and Iowa Junction; but the applicant is barred from the movement of such coal destined to stations between those points or to the Peoria. switching district when for local delivery therein or where the haul beyond is to be made by any carrier other than the parties to the agreement, and it is mutually agreed that the receiver is to have the initial haul from the mines on all coal shipments to destinations served by the receiver and on shipments destined to stations west of the M. & St. L. main line from Middle Grove to the Twin Cities and served by the applicant. Shipments destined to points west of the main line which are not served by either party are to be hauled by the receiver to the usual point of interchange with the railroad serving the point of destination, except that the applicant may be used as a bridge carrier under specified conditions. All coal destined to stations east of the main line are to be hauled by the applicant to destination or junction point, with the exception that if the rates on shipments moved by the receiver and the applicant to such destinations are less than the applicant's single-line rates, the receiver is to move such shipments from the mines and deliver them to the applicant at the junction point via which the lower rates apply.

As rental the applicant is to pay the receiver 10 cents a net ton, but not less than $5,000 a year, for all coal which it hauls over the Middle Grove-Iowa Junction segment, and this charge is to cover the applicant's movement of empty cars inbound, and switching by the receiver of loaded and empty cars at the mines, but not the classification of outbound cars. Provision is made for the furnishing by the receiver, if desired by the applicant, of clerical services, fuel, water, supplies, etc., for compensations to be determined by agreement or in accordance with the practice prevailing among railroads.

The agreement is to be in effect for 10 years from and after the date on which coal shipments commence to move over the applicant's line, but is to be considered to be renewed for a further term of 10 years unless the applicant gives the receiver timely notice to the contrary. In case its shipments do not amount to at least 50,000 tons in any one year, the applicant has the right to terminate the agreement upon 60 days' notice, and the receiver likewise may cancel the agreement upon 60 days' notice in the event that any default in the performance of the applicant's obligations thereunder is not remedied within six months from the date of notice of such default. Execution of the contract by the receiver has been authorized by the court in which the receivership proceeding is pending. It is to extend to and be binding upon the successors and assigns of the parties.

The arrangement proposed by the applicant involves no substantial risk of carrier funds and, if the hopes of the coal company are realized, should be of advantage both to the public and the carriers concerned.

We find that the present and future public convenience and necessity require the operation by the Chicago and North Western Railway Company, under trackage rights, over the line of railroad of the Minneapolis & St. Louis Railroad Company, in Peoria and Fulton Counties, Ill., described in the application.

An appropriate certificate will be issued.

193 I.C.C.

FINANCE DOCKET No. 9879

CENTRAL OF GEORGIA RAILWAY COMPANY
ABANDONMENT

Submitted April 24, 1933. Decided April 29, 1933

Certificate issued permitting H. D. Pollard, as receiver of the Central of Georgia Railway Company, to abandon a line of railroad of said company in Chatham County, Ga.

A. R. Lawton, Jr., for applicant

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MEYER, EASTMAN, AND MAHAFFIE BY DIVISION 4:

Pursuant to authorization contained in an order dated March 4, 1933, of the District Court of the United States for the Southern District of Georgia, Savannah Division, H. D. Pollard, as receiver of the Central of Georgia Railway Company, on March 11, 1933, applied for permission to abandon that part of the railroad of the Central of Georgia Railway Company extending from a point 2.55 miles east of Savannah to the southern end of Tybee Island, 15.22 miles, all in Chatham County, Ga. No representations have been made by any State authority, and no objection to the appliIcation has been offered.

The line to be abandoned is part of a railroad constructed between Savannah and Tybee Island, about 17.77 miles, in 1888. After several changes in ownership the railroad was acquired by the Central of Georgia on November 1, 1895, and was operated by the latter until it was placed in receivership on December 19, 1932. Since the latter date it has been operated by the receiver. The 2.55 miles to be continued in operation adjoins Savannah. While there are no industries thereon, there are adjacent industries located on another railroad, and this part is sometimes used in getting freight to and from those industries. The part to be abandoned runs in an easterly direction across marsh lands and serves no one, except a United States quarantine station, until it reaches the north end of Tybee Island on the Atlantic Ocean. That island is a seaside resort with an estimated population of 500 in winter and approximately 5,000 in summer. The railroad traverses it for about 4.57 miles to its eastern terminus on the south

end. Near the north end is a United States Army post at which there are stationed approximately 235 officers and men. The entire island, with the exception of the army post, is included within the corporate limits of the town of Savannah Beach.

For many years the only freight and passenger service to the island was supplied by the railroad, but in 1923 a State highway was constructed, which parallels the railroad, and has since been hard surfaced. As a consequence rail operations have almost ceased, there being no passenger service given during eight months of the year. During the four summer months of 1932 there were only 7,653 passenger-train miles operated and the gross revenue per passenger-train mile was 93 cents. Much of the freight to and from the island is handled, and all of it can be handled, by truck or by water. Nearly all the travel is by automobile. No industries are served by the part to be abandoned.

The railway operating revenues of the line, including the 2.55 miles to be continued in operation, were $44,434.71 in 1927, $38,950.80 in 1928, $35,773.94 in 1929, $48,257.62 in 1930, $21,850.96 in 1931, and $14,224.60 in 1932. Railway operating expenses decreased from $70,863.14 in 1927 to $9,047.30 in 1932. Railway tax accruals were $7,080.75 in 1932. The annual average for the 6-year period 1927-32 was $7,893.81. The deficit in railway operating income was $32,816.09 in 1927, $22,891.37 in 1928, $26,086.44 in 1929, $3,888.18 in 1931, and $1,903.45 in 1932. The railway operating income in 1930 was $3,579.26, which was due to an abnormal freight revenue from handling nonrecurring road-building material. The railway operating revenues, railway operating expenses, and taxes were compiled from actual figures, so far as it was possible to determine.

Freight tonnage was 4,859 tons in 1928, 4,339 in 1929, 13,125 in 1930, 3,449 In 1931, and 4,209 in 1932. This tonnage includes considerable tonnage originated at or which was destined to industries adjacent to the 2.55 miles to be retained, which should continue after the abandonment of the other part of the line. Passengers carried declined from 137,672 in 1927 to 36,930 in 1932, from whom the revenue was $32,181.57 and $7,153.36, respectively. The applicant states that the line cannot be successfully operated in competition with the highway, that its operation does not even pay taxes, and that it is a constant drain on his overtaxed resources. The record shows that continued operation of the mileage to be abandoned will impose an undue burden on interstate commerce, and that its abandonment will not result in serious public inconvenience.

We find that the present and future public convenience and necessity permit the abandonment by H. D. Pollard, as receiver of the Central of Georgia Railway Company, of that part of the railroad of said company in Chatham County, Ga., described in the application. An appropriate certificate will be issued effective from and after 30 days from its date. Suitable provision will be made therein for the cancelation of tariffs.

193 I.C.C.