# Transcript of Record — Southern R. Co. v. North Carolina

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Transcript of Record
- **Published:** January 1, 1964
- **Citation:** 376 U.S. 93

## Text

&

' bon
ines leg ere YY :

: _ SUPREME COURT OF THE UNITED $ STATES

ae ” No. 74 Ge
— . ae ae
| Se SOUTHERN RAILWAY COMPANY, APPELLANT, - 3
: q : o— :
a ‘NORTH CAROLINA, BT aL
a ae No. 93.

Sr ae . : :
UNITED STATES, ET AL., APPELLANTS,
| + NORTH CAROLINA, ET AL.

— wrrnsia» FROM THE UNITED STATES DISTRICT COURT FOR THE
3 DLE DISTRICT OF NORTH CAROLINA .

Beit Se, pee ee
VOLUME 1

Record from the United States District Court for
the Middle District of North Carolina hae .
‘ Complaint as amended ee ae Ye
Exhibit “A”—Report and order of the inter :
state Commerce Commission, dated June 27, a
— oo 1962 to discontinue operation of trains Nos. ai
a .: - 13 and 16 between Greensboro and Golds-
= boro, “North Carolina’ “ Shs | 10°

Recorp Press, Punrrena, New York, N. Y., Avausr 22, 1963 _

F ; ~ ‘ t+ =, She,
4 ° . ; s _— e
a ‘ . c ; - . *
ras B, ”
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ya Sees Se : ° ; .
ee ; . : : ree
: pt °
Ra GS . I> ° zi
* . %

“the Middle District of North, Carolina—Con-

tinued - \
Complaint as ; ae
: Exhibit “B” of the Interstate Com-.
% - ” merce: Commission bearing service date of.

- July 20, 1962 postponing the effective date —
of the order issued June 27, 1962

Exhibit. “B-1”—Order of the Interstate Com-

merce Commission, dated August 8, 1962

=. + denying: petition for a finding that this pro-

= eating teri see ee gee eee

portation! importance
* Answer of Southern Railway Company
_ Exhibit 1—Report and order recommended by

William J Gibbens, Hearing Examiner,

1.C.C.

Appendix A—Schedules of Trains. Nos. 13°
and 16 operating between Greensboro and

Goldsboro and Populations of -Communi-
ties. served :
Appendices B & C—Lists of number of pas-

senigers handled on Train 13 and on Train

me
Appendix D—Operating Results of Pamen-

ger Trains 13 and 16 between Greensboro, |

_N. C. and Goldsboro, N. C., Year 1960 __
: Answer of the United States of America and the
Interstate Commerce Commission _'....

Proceedings before the. Interstate ‘3 ateaee Com-

. . mission

Petition of the Southern Seco Company for’
authority to discontinue the operation of
+ Trains Nos. 13 and 16 between Greensboro and

Goldsboro, North oni ew |
Exhibits :
1 Sebetals of Trains Nos. 13 and toon
between Greensboro and Goldsboro
2 - Noth Carolina’ _Offieial— —
(1960) with the Routes. of re
4 and 16 shown in red coloring - =

20 :
19°21 :
“a 20s
3943:
0 “4 -%
42 46
44+ 48. 3
48 51 i
48°" 51.
81. 78 :
Yl ° 23
74
soe ey,
A
.
r oom “3 >. F

A by ft + Original Print |.

Sects before the Interstate ‘Commerce Com-
mission—Continued
Petition of the Southern Railway Company for
authority to discontinue . the - operation of |
Trains Nos. 18 and 16 between Greensboro and -
~ Goldsboro, North ‘Carolina—Continued
? Exhibits :—Continued po
3—Southern Railway Company, @Passenger
‘Service Operations showing passenger efi- -
ceit for the years 1948-1960 __.. ___
4~Populations of Counties Traversed by
pe Trains Nos. 13 and 16 compared with the
__. State of North Carolina and the ‘United

States Fs

5—Estimated Ratio of Persons. Per Regis-
. tered Passenger Automobile in the Sev-
> eral. North Carolina Counties Traversed
_ -by Trains Nos. 13 and 16 compared with
the State of North Carolina
6—Estimated -Ratio of Persons Per ‘Regis-
tered Passeriger Automobile in the Prin-
cipal Cities and Towns of The Several
+ Counties Traversed by Trains Nos 13 and .
Map. showing . possible points. of inter-
change of: passengers between Trains Nos.
13 and 16 and rail passenger trains of
- other rail lines of Southern Railway Co.;”
Se _ Seaboard Air Line Railroad and Atlantic
. Coast Line Railroad _ :
* . 8 Timetable of. other Southern Railway
Co: Passenger Trains serving Greensbors, .
N. C., dated October 30, 1960 . goad Passenger ‘Traing Serving Raleigh, °

-N. C.

mt. |

a °°) 6

8 77

91° 283
> °
» .
a?
'

"gee FeeShe —.

ss ‘Proceedings pufese-the Interstate Commerce Com-

> 3 : >
Q

mission—Continued-_,
. Petition of the Southern Railway, Guniiene for

authority to | discontinue the operation of ©

- Trains Nos. 18 and 16 between Greensboro and
_ Goldsboro, North tinued.
Exhibits :-—Contin

11—Timetable showing the operation of Sea- i

board “Air Line trains through Raleigh,
N. C., effective December 17, 1960

_-. 19-imetable of Atlantic Coast Line Rail-
road Passenger Trains serving Selma,

- N. C.; dated December 15, 1960

: 13—Timetable of Atlantic Coast Line Rail.

road Passenger Trains Serving Goldsboro,

i | N.C, dated December 15, 1960 2
- 14—Carolina Trailways Schedule :of buses
Between Charlotte, Raleigh, Norfolk show-

ing 15 bus schedules daily in each di-
- rection between Greensboro, Durham ‘and

Raleigh -

_A&—Greyhound, Lines schedule, of buses
between Columbia, ! Sumter, Florence,
Myrtle Beach showing 7, bug schedules

daily in. each direction “between Raleigh —

and Goldsboro —-
_ 16—Carclina Trailways. ahs of buses
between New York, Richmond, Raleigh,
' Fayetteville, Jacksonville (Table 8110)

on 17—Trailways Eastern Linee—Condensed os
ato Thru-Liner Routes (Table°8022) -....’

-18—Seashore Transportation ‘ Company’s
- Timetable showing the bus schedules oper-

- ated and connecting bus lines asmeneh

3425-34272)
- . 19—KEastern Air Lines Ychedule users

' daily first class flights between Raleigh- -
. - Durham Airport and a wide variety of -
ee other -_ ete.

ch

97 89
98-90.
99 91
10: . 93
102 94
103 95
104-96 -
ce aa ae

He ie

g Proceedings before: the Interstate Grannenn srerrete
mission—Continued |
» Petition of the Southern Railway C y. for

authority “to discontinue the operation sof

Trains Nos. 13 and 16 between Greensboro and

~ Goldsboro, North Caroljna—Continued
| Exghibits—Continued)
~~ 20—Capital Airlines schedule ling one

eae ee flight daily in each direction between New :
e York, Raleigh-Durham, Atlanta and New s

Orleans
_21—Piedmont Airlines schedule ioiings one

_ flight daily in each direction, between Wil-
mington, N. C., Raleigh-Durham, Greens--

——— boro-High Point, Wington-Selem and
Lexington, Ky.

22-—-Compariann of Air Line Traffic Depart-
‘ing From Greenshoro-High ‘Point and

es ee eae Airports Pears 1949 and

23—Map showing highway distancés from
various communities in the general area.

served by -Trains Nos. 13 and 16 to the

Raleigh-Durham Airport--..*
'24—Statements showing Passengers Han-

dled on Trains 13 and 16. (Operating daily .

oe _. Goldsboro, N. €. to Greensboro,oN. C.),
-".. \ amd (Greensboro, N, €..to Goldsboro, N.

C.) beg npr trips, Year—1960—
366

_ 25—Southern Railway Company, Passenger

Traffic Statistics for Trains.13 and 16 .
2 operating between Greensboro, ‘N. C. and -

Goldsboro, N. C., Years 1959. and 1960 .

26—Southern Railway Company, Passenger

Traffic Statistics for Trains.13 and 16 op-
«erating between Greensboro, N. C. and

_ Goldsboro, N. C., Years 1948-1960

Originel—Print
106 = 98
110. 192
111108
112 104

g
113 105
. , _ direet (by Mr. Bryant) _
en - __— eross (by Col: Joyner)
XN ped es turtber direct

(by Mr. Jones) *

¥

3

120 «oa
121 113°
13% , 129
138 130
139 131.
141 -138-
142 133

142. 138
145 - 136.

148 - 139
149: 140
149 ©=:140

~150- 141
153-148
156146
156147

me pevssll foes an Digna Dees iak ei tine
North Carolina, Tenth District, Fall Term 1960
~ in case No. 457, State 6f North Carolina, ex rel.

. v. Southern Railway Company consisting of por-

_ tions af proceedings before the North Carolina i

Utilities Commission—Continued .
Transcript of hearing—Continued
SS , Testimony of Dr. Sherwood Githens—Con-
. tinued .
ae further. cross *..
at ARS (by: Col. Joyner)...
further direct —
(by Mr. Burns) —_.
area f further direct

further’ cross

eee oe "ee
Mr. sieia’

rk (by Mr: Burns) —

1 GS Sls ae Soe 8 Bo)

s ° J. M. White
ae a ee "direct (by Col. Joyner) -

beng Sliver yeaa Mrs. see Biddle-Trent
or direct (by Mr. Brooks). .,

e@ _ * eross (by Col. Joyner) _.. -

Piciernseotoo ones

: Shey "direct (by Mr. Bryson) .
. | cross (by'Col. Joyner) ....

_ redirect (by Mr. Bryson)
recross (by Col.. Joyner.) ..

redirect (by Mr. Jones) _

recross (by Col. Joyner).
_ redirect fby Mr. Jones)
Examitiation by Commissioners
- .. Yedirect (by Mr. Jones) -
: : a ates Re recross (by. Col. Joyner) ..
a vedicést (by Mr. Jones) ~
- recross (by Col. Joyner)...

: \
. ’

me
ee

CA
. Z 5 oe:
. co
- bid Be E
a ™

(by Mr. Brooks)

we gi: Joyner)

cross (by Mr: Bryant) —

6.
SS pe
158 * 148
163 153
163. 158
163° 153
165 . 154 -
172 160
173 161
178°? 164.
179. 165
181 166
188172
188 * 172.
190 *: 174.
191 . 175
192 +176
192 176:
193 177
193-177
193 178°
194 -. 178
194 © 178
194 179
194 ~ ‘179.

nti ° . i * x " ; eee : 4
bee my

‘ ¢- Original Print
Record: from the Supreme Court of thet State of - :
North Carolina, Tenth District, Fall Ternt 1960
“+ "4m ease No. 457,. State of North Carolina, ex rel.
ee,” ‘Southern Railway Company consisting of por-
tions of proceedings before the North Carolina
__. Utilities Commission—Continued
Tramecript ef hearing—Continued Pasi
7 ee Harold Hotelling— . eed ge
direct (by Mr. Beaks) ~ 194 179

ne

eo s+ ross (by Col. Joyner). 197. 181 -> ;
: of a fxaminstion by Commissioner 197° direct (by Mr. erent) 230-209
. Mrs. Mary Biddle Trent : :
‘Semans (recalled )— ee,
redirect (by Mr. Brooks) - 240 | 219
Fe
‘ * re

“| - Record from the Supreme. Court sith a teen
| North Carolina, Tenth District, Fall Term’ 1960
____im ease No. 457, State of North Carolina, ex rel. -
- vy, Southern Railway Company consisting of por-
.. tions of -proceedings “before. the North Carolina .
- -_ Utilities Commission—Continued °
Transcript of hearing—Continued :
_ Testimony of Dr. H.: T. ‘Parker— wey
- ens sina Burns) _

Stipulation read into record
— of ‘Parks ‘M. Low—

2

‘direct (by Mr Burns) Ly
further direct: —
\ , | (by, Mr. Bryant) styretetee
: cross (by Mr. Dixon) ._..
‘i . -. Mrs. Lucille Blake—
: ; (by Mr. Bryson) .
KS a Petere can Fe Pr, _, direct (by Mr. Bryson) .
; oo ~~ COBB (by. Mr. Joyner) —
a ; redirect (by, Mr. Bryson)
: Dr. T. E. Powell—
- . 3 direct (by Mr.-Burns)
4 eee cross. (by Mr. Dixon) ... -
5 _redirect (by Mr. Burns). ©
= Nite - peeross (by Mr. Dixbdn) ~
é Examination by Commissioner
q : _ Proceedings before the Interstate Commerge Com-
| ' mission in Finance Docket No. 21568 eer
2 -- Transcript of hearing July: 11-14, 1961: Be tt
£ Appearances
_. .. Motions to dismiss and lives one aa
4 -! Testimony of L. L. Waters— °
i : , . - -@ross Pe
a nga Aaron Cruise—° ©
me toe eve, tn
a: ; “9.0 CPOs
reap >
~ % f :

. -
ee

cross (by Mr. Soren),

a

_-e

ye
Asi?

: 252 -

- 235

Sey

Ss ; (9 :
4 Ye 3 INDEX

"pain bafoie the Interstate Commerce Com- -
mission in- Finance Docket No. 21563—Continued _
Transcript of hearing July 11- 14, AO.

tinued *
Testimony of J. A. Watson— .
- direct aod

rom,

o

“examination by examiner z

2

_. VOLUME 2.
‘Testimony of Hugh McVay—

direct -
redirect
recross

ae eee 5 B. Gleason— BP ARR,
rule ee, ie

examination by examiner

edirect
/ peeross
Ernest Rechel—
cross -
_ Fedirect -

A

direct

J. W. Kidd— wae Oa

direct

CTOSS

Oieage V. Baylin ae
direst Beatie
Dr. T. E. Powell—_

cy et esa

_cfoss
“Davis\H. Beck—

.
OS.

ae |
-
”
- ae
o>
Z \
He

OE pce

Sy Vad Ale Bek ean ale VR DP phe as
«6 : .
ry ® :

Provabdings before the Tnieretats Cummnaces Con. )
- _ mission in Finance Docket No. 21563—Continued-

_‘Pranscript of hearing a 11-14, baci sited is

tinued : Re a
Testimony of I. H. tht rie fei ae
7 _ direct JS Cea 587 . 456 -
; _. Poss 594 461:
* peeross 603 4, 468
SN abeae further direct... (ss 604° 468
be ' William L. Fayle— - a pee
: ; io direct went 605 469
o Yee ee as a. 3 0 se
an ee
s we * Reereds Oe 617 477
ees | - George Herbert— -
direct _.. 619 478
Cross, 630 486
George Cox—
direct - 683 «= 488
fied : .CTOSs -* 639- © 492
y habe Herbert ae .
fata further direct - ere 494
ee ' ° Paul Greer— : tbe
O.. |, direct . i a a
: cross 648 499
- .Dr. Wilhelm Jecpeies-
_ direct —. 651 501
- eross __.. 655 504
redirect ___... 659 = 5506
. - Dr. Sherwood Githens—.,
cps ona ne NE 660 - 507
Aes -~*. @em a “B17
ae ; George Parks—__ 1d ae es
“s : , direct | a ee
are cross .. 2. | 689 526
le atia RO Binal.”
a Cite a
eae ee cross . 700. 534
: redirect’ : 704 536
° 6"
: “ b:
pee : "

bio
ings before the Interstate Commerce Com-
_ mission in Finance Docket No. 21563—Continued
Transcript of ite July 11-14, amine
& . tinued - fone
psoraeed of Hugh M. Canimings— -
‘ direct 3 704 . 537
: cross ___ - aFe>-
' direst “712 ~=« N42
Dr. Paul H. Clyde— . ene
3 a. j——
direct __ PE 787. 591
* ——¢eross 791 593.
redirect 793 595
At William R. Belfield—
direct 794 595
: I a 796 596.
: °

INDEX .

_ Proceedings cite the Saneetete Conia Com-
- mission in Finance Docket No. asian sacorezacn
o Exhibits:

‘ H-1—Present Schedule teens Greensboro-

’ Goldsboro, N. C., Truck Route |

H-2—Proposed Schedule between Greensboro-
Goldsboro, N. C.,. Truck Route —__|

_H-3—Average. Monthly shipments -handled at

all offices between Greensboro and Golds- -
boro, N. C.; March” 1960 through February

1961 2

H-4—Southern Railway Company, Passengers.

-handled on Trains Nos. 13 and 16 (Operat-

ing daily Geldsboro-Greensboro, N. C.) Jan-—
uary thru May 1961—151 trips: Se,
‘ H-5—Southern -Railway Company, Passenger.

Fine as Traffic Statistics Trains .Nos: 13 and. 16
ase operating between » Greensboro-Gol boro,
N. C:, January thru May 1961, Nam r of
trips, trip mileage, ete. _2f

H-6--Southern Railway Company, Passenger:

’ Traffic. Statistics Trains Nos. 13 and 16

N. C., years 1948 thru 1961 (5 Months),

Number of trips, Number, of passengers, ete...
| . H-7—Southern Railway Company, Operating —

Results of Passenger Trains Nos. 13 and 16,

Greensboro, N. C. to Goldsboro, N. C., Jan-

uary thru May 1961

. H-8—Southern Railway System, Feeder Value

_ . of Trains Nos. 13 and 16, operating between
o - Greensboro, N. ©. and Goldsboro,” N. C.,

!

accruing to the Southern Railway System |

H-9—Southern Railway Company, General ‘-

Balance Sheet as of April 30, 1961 -
H-10—Southern’ Railway Company, Tneonie
| acount, for Four poate ended April 30,

+ ASE «2S ec

\moval pf passenger service between Greens-
ro, N. C and Goldsboro, N. Ce...

: Peat benefits to be detkeed: by re-_

: 4 Z eS : i

operating between Greensboro-Goldsboro, —— .

806 603
B06. 603
807 ~=—-604

B08 605

809. ~ 606
811 «608
812 609

Speers

813 610

814. 611
815 612
816” 613

817 °614

Proceedings before the Interstate Cominerce Coni-
*. mission in Finance’ Docket No. 21563—Continued

Exhibits:—Continued ‘aa
__ H-12—Timetables_ of other Southern Railway
Co. Passenger Trains, Seaboard Air Line
' Railroad, Atlantic “Coast Line Railroad;
' Carolina Trailways, National Trailways, and
_ Seashore Transportation Company, effective
April 30, 1961 and July, 1961. (These are
Tevised schedules of those shown in Exhibits
8, 9, 10, 11, 12, 13, 14, 16, 17 and 18) __.

H-13—List of North Carolina Counties that .

do not have rail passenger service (50 out
of a total of 100 counties) _

- #14—Southern Coach Company timetable ___
Record from the United States District Court. for a

the Middle District of North Cann sicactacciaelic
Opinion, Preyer, J. ‘a

_ Decree
| Notice of appeal by Southern Railway Genpay
‘to-the Supreme Court ‘of the United States __
Notice of appeal by United States to the Su-

preme Court of the United States

Notice of appeal hy the Interstate Commerce
Commission to ‘the ° Supreme Oourt of the
United States

Clerk’s certificate (omitted in orintiney Sala

oe noting probable jurisdiction Se

818

836

ape

871

878

881

* 883a
884

615 .

667

668

|

opeinenit ait. Ss tiuitioan eaceag, oieueas se? MOF SRS CS RNAS NE ea MR til AN
. . -
. > ‘

_ fare of the people of the County and City of Durham, many

‘ oJ
; Veu sf

fol. Be: [Pile endorsement omitted]

i IN THE UNITED STATES CT COURT
FOR THE MIDDLE DISTRICT OF NORTH CAROLINA

Civil Action File No. C-158-D-62

Stare or NortH Carouina; Duxe University; Toe DurHam

~ , CHAMBER OF CoMMERCE, INCORPORATED; RESEARCH .TRI-
ANGLE [ystiTUTE; Erwin MiLLs, Ing.; and mae TRENT ces
Semans, oe SA 2

°

Pee ¥ a

Tweens. STATES OF AMERICA ; INTERSTATE CoMMERCE GoMMIs- -
‘ SION; and Sournean Ramway Company, Defendants.

Couptatst (as Amended) d)—Filed_August 28, 1962.
_ Plaintiffs, complaining ing of deféndants,; meee and say:

Plaintiff; State of North ae is one of the several . oe :

fi sovereign states, interested in its citizens, users of the

Southern. Railroad, and interested in trarisportation gen-

* erally which serves the State of North Carplina and inter-

ested plirticularly. in the specific trains involved herein. .
Plaintiff, Duke University, is an educational institution
located in the City of Durham, North Carolina; said plain-

. ary tiff also owns and. operates a large, géneral hospital, and

‘some of said plaintiff’s trustees, faculty members, stud2nts,
doctors and hospital patients use the services of the South-

> . ern Railway Company and, in particular, the ‘trains in-

volved herein. Plaintiff, The Durham Chamber of Com-

" merce, Incorporated,-is a’ North Carolina corporation with

‘its office located in the City of Durham, and, as Durham's _
Chamber of-Commerce, is primarily -dedicated to the wel-, ~

of whom use the services of the Southern Railway Company -
and the trains involved herein particularly. Plaintiff,

Research Triangle Institute, is a North Carolina corpora-

tion created for tlie i af promoting research in the

}
; °

: = =r zs | | = S . [fol. 3] tion .with the Iiterstate Commerce Commission
_ (Finarice Docket No. 21563) again seeking authority to
discontinue the operation of Passenger Trains Nos. 13 and
‘16 pursuant tothe provigions of. Section 13a (2) of the.
-. _Interstate’ Commerce Act~(49 U.S.C.A; §13a. (2)). After —
a ‘hearing before Examiner William J. Gibbons, said Exam- —
. iner filed his report, recommending the issuance of an order.
— wing Southern’sPetition. Exceptions to said report and ©
mmended order ‘were duly filed by all-of the plaintiffs
he in, and on July 2, 1962, Division 3 ‘of the Interstate
. Commerce Commission issued an order adopting the rul-*
4 ings, findings and conclusions of the Examiner and author.
|. g izing,effective: July 22, 1962,-the discontinuance. of said =
passen;
order is. ttached. hereto. and marked ‘Exhibit “A”. “That ’.

erce ‘Commission postponed the effective date |

nation of

July 16, 1 2. these plaintiffs, in contemplation of filing
‘ Petition. for reconsideration by the full Interstate Coth-. —
erce Commission of said Division’s order, filed a Petition on

tion\importance. This petition was denied by order of the
Interstate Commerce Commission of August 8, 1962, ‘the.
effectivé date of which was determined.by- the ‘Cominission
to be August 23, 1962. A true and correct copy of said: |

7 order is attached hereto and marked as. Exhibit “B- Woe
: > (This setion is 5 briaghs to annul, set ‘aside and enjoin. the ‘

: certo and enforcement of said order of Division 3 of
the Interstate Commierce Commission which has the effect

‘of a final: order, of the Interstate. Commerce Commission
under the general rules of practice of said Commission.

trains. A true and correct copy of said final: — an
ring service date of July 20, 1962, the Inter- aie

of-the afordsaid Order, (Exhibit ‘A’), pending the determi-
e Petition requesting a determination of the ~
presence of an issue of general transportation importance,-. -
d a copy of, said Order, identified as. Exhibit ‘B’, being at-- _
\ tached hereto ‘and made a part hereof.” Thereafter, 0 ae |

requesting the Interstate Commerce Comniission -to deter-~ yee:
mine that this case involved an issue of general transporta-

oie en ee
{fel.4] Southern Railway Trains Nos. 13 and 16 provide |
the last remaining rail passenger service between Greens- —
boro and Goldsboro, North Carolina. Bhey are, operated
~ over track,gnd right-of-way leased to the Southern Railway
Company by the North Carolina Railroad Company, a cor-_ -
poration, the majority o the stock of which is owned by .-
' the State of North Carolina, and a discontinuance by South--
. ern Railway Company of the operation of these trains .
- ‘would constitute a breach of the lease agreement under

which Southern is utilizing¢he track and right-of-way upon: _
te. . ie
pee

which these trains ope
Southern Railway Compariy is not a financially depressed =x

_, ham, Raleigh, Smithfield, and others; further, said discon-
_ tinuance will leave the cities of Durham, Burlington,
Graham, and surrounding areas totally and completely
without any:

(e).In attracting, to the area. served by. said passenger
trains industrial . development and in holding on to the |

being vital to the economy of North Carolina and to the —
welfare of her citizens. — ;

_ Many: industries already established there, said industry . .

“eninterrapted operation of said passenger trains-is-neees——-—~—

ee

\ P

Sp 6 ; . i ; 5 r ‘

»

—*. [fol 6) “(#) To: oleae ssiaily a large portion . of’ the. .

by said passenger trains ;

e

4

* ea
- 8°

Ds That, shina to: the charter issued by’ the ‘State of
‘North Carolina to the North Carolina Railroad Company,

‘pany and Southern oxen 9 Nacho defendant herein;
‘ ‘that a copy of said lease agreement, identified as Exhibit
_ #C”, is attached. hereto and, by reference, made a part

sail “agreement imposes upon defendant, Railroad, the
‘obligation to continue the operation of the passenger trains
_ involved in this action; ‘that, further; any discontinuance

. of said trains would constitute a breach of, the provisions
Bete of said lease —— by the ‘Railroad. °

c ie

_ purporting to authorize Sduthern Railway Company to
discontinue the operation of its Passenger Trains Nos..13
and 16 between Greensboro and Goldsboro, North Carolina,

‘others, in that:

ets Mehie Karin eee . Sates Sb a Se pea ta he
© (prints iy %e sah Ms Sid ee gles as Cie aid

“U.S.C.A. §13a (2)), under which the Interstate Commerce
Commission purpo. aga to allow Southern’s petition, is un-
constitutional 6n its face and ‘Ym its application to the facts
“© - involved. herein in that it violates, among. other articles,

tion, it that it is aw attempt by the Congress to éonfer

population of North Carolina residing i in the-aréa | served 7

J. = ~—_—s..__ Artiéle I, Sections 8 and 9, of the United States Constitu-

-(g) And in other partidulars n not epecidinly enumerated

. Atigust, 1895, betweei-said-Nétth Caroljaa Railroad Com- _

* hereof; ‘that, viewed in its entirety and from its four —
es: oem and in the light .of the circumstances existing and -
ounding the parties at the time of its execution, said :

‘That the order of the Taterstate Csctneres Commission

is void and unenforceable for. farthtr reasous, aoaens

‘(a) Section 13a (2) of the Interstate Commerce ‘Act (49 —

| = _. ~ . upon’ said Interstate Commerce Commission j iction —
4 over intrastate’ somumeree, whereas’ the United Stites Con- .
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[fol.8] ties in the present. proceeding’ and is, therefore,
: res adjudicata, Therefore, the only-question properly to °
oe have been adjudicated by the Interstate Commerce Commis-
‘ é : merce. We think that such premise is contrary. to the.intent
_ of Congress under the statute here involved. By analogy,
interveners’ view would require a determination that over-

all“losses have resulted on traffic handled over. the line..

‘In that instance, however, petitionér could obtain adequate
relief under the abandonment prov isions of section 1(18)
of the Act. Section 13a(2) specifically. empowers the Com-
- mission to authorize the discontinuance of trains upon find-

ing that (a) the present and future public convenience and_

necessity permit of such dis¢ontinuance or change in whole
_or in part of the operation or service of such train or ferry,

and (b) the continued operation or. service of such train:
or ferry without discontinuance or charge, in whole or part, -
will constitute an unjust and undue burden: upon the inter-

state operations of such carrier or carriers or upon inter-
state commerce. (italics supplied).

The legislative history of section 13a(2) ‘indicates that
-the purpose thereof is to permit the discontinuance of the
operation of services that “no longer. pay their way and
for which there is no longer any public neeg to justify the

heavy financial losses involved.” (S. Rep, 1647, 85th Cong.).

(Emphasis supplied). In considering a ‘somewhat similar ~
contention, in Southern Pacific Co.—-Partial Discontinuance °
of Passenger a, Los Angeles, etc., 312 i; LC .C. 631, we.

stated:

“Nowhere in gection 13a(2) or elsewhere in the law is

there any requirement that the prosperity of the intra-
“state operations of thé carrier as a whole, or any par- —

-ticular segment thereof, must be. given effect. in deter-
_ mining whether the operation of an individual intra-

state train imposes an unjust and undue burden on °

interstate commerce. To hold otherwise~ would be con-
trary to. the apparent intent of the Congress. ”

Nething hes heen submitted herein to warrant a change i in

this view.
Nor can we agree with interveners that the petition : in

this proceeding should be dismissed for petitioner's failure -

fr ts : 3 ie . 3

ee

to cbeaive the rule included in our order of November 12,

1959, Fequiring the posting of notice of the proposed dis- -

__eontinuance in each station, depot or other facility involved. .

[fol, 14] While the statute clearly requires such’ posting

* of notice in proceedings instituted under section 13a(1),

a the statute is equally clear in not providing for. such require-
. Inent under paragraph 2:

. “When any petition shall be filed with the C Comnsindion
under the provisions of this paragraph the Commission
-. shall notify the Governor of the State in which such

train or ferry is operated at least 30 days in advance —
. of the hearing provided for in this paragraph, and
such hearing shall be held by’the Commission in: the

2 State in which such train or ferry i is operated; Rest aed

_ It is further apparent that the inclusion of the. require-
ment regarding the posting of notice*in our order of No-

in not amending section 43.6 to conform to the relettering
of section 43.5 in our order’ of the above date. Since peti-
tioner complied with the rules-and regulations promulgated
by our order of August 14, 1958, and since there was no
intent that our subsequent amending order of November 12,
1959, impose an additional requirement regarding notice |
_ upon petitioners in, proceedings under section 13a(2), and
since no specific evidence has been introduced to show that.
_ the position of any of the parties has heen prejudiced or
" matérially affected by our error, the motion. of interveners-
is denied. , js
Interveners’ exceptions include. other assignments oe
’ error to.the examiner (1) in computing. the ‘revenues and.

to give sufficient weight to the overall prosperity of the
petitioner when considering whether continuance of the
operation would constitute an undue burden on interstate |

2 This ‘oversight was corrected by the issuance of the Commis-.

sion’s order of. November 28, 1961 (Ex Parte No. 217) in which

section 43.6 was amended 2 eliminate reference to paragraph (j)
of sectiqn 43.5. .

rr
- J . .
. ,

vember .12, .1959,' and the resultant conflict between that
order and section.13a(2) was caused by an obvious error —

expenses of operation of the trains involved, (2) in failing

16.

commerce, (3) im failing 10 considie: the inerense in: the
average number of patrons in 1960 and the period of 1961 |
over the number of passengers utilizing the service in —
1959, (4). in failing to recognize that petitioner had allowed
service along and over the line to decline in order to pre- --
_-sent a plausible case for the abandonment uf
vice, and (5) in-concluding that future i
of the’ area is not dependent upon existi

, service, _ .

In his determination of the financial. results ‘a operation
the examiner has allowed or disallowed certain items of - .
“expense ¢onsistent with our prior. decisions in similar dis- .
continuance proceedings. Interveners have assailed the
methods utilized in approximating certain cost items where

_ the actual expense cannot be determined. However, they
have offered no substitute formula whereby a more sag
determination may be made. Under the circumstances we .:
_ will rely on the’ methods which have been acceptable to us .
‘in the past. |

The contention that the overall prosperity ‘of the. peti-
tioners must be given effect in the disposition of the issues
involved herein has been adequately discussed in our con-

_ sideration of one.of interveners’ motions and no further
clarification of our position in that matter is necessary.

, {fel 15] The fact has not been overlooked that there has
‘been an increase of nearly 50 percent in the daily average
number of pasengers patronizing these trains in ‘the first —
5 months of 1961. The record also discloses that the in-

- erease in the 1961 period was due largely to an increased
number of group mov ements of school children. However,
despite the increase in patronage during ‘the first 5 months -

- of 1961, passenger revenues during that period amounted

_ to only $10, 653 or approximately $26,000 less tan train and
engine crew'wages. .

The evidence of record fails to support. inherveners’ con-
tention that petitioner has deliberately discouraged the use
_of the trajns as a part of its plan to present a plausible case—

_ for discontinuing passenger service over the line. Neither.

the present nor prospective traffic on the line would justify
the use of expensive or ultramodérn equipment and,: as
etter by the examiner, we have ¢ repeatedly "held that" pio-

spective shied ‘whe toust be ecaxed to use a service have - :

no urgent need for it.
~ We have also expressed the view that wiile industrial
expansion may, under certain circumstances, depend upon
the existence of rail passenger Service, it would/appear that
prospective industries are much more interesfed in freight

' gervice than rail ‘passenger facilities. See Chicago, M. St.

> P. @ P. R. Co. Discontinuance of Service, 307 LC.C. 565

578 and Chicago d N. W. Ry. Co. Discontinuance of Ser

vice, 307 L.C.C. 775, 782.

-. From a review of the evidence of record we conclude that ..
the cost to the carrier of oyierafing the trains involved

greatly exceeds the benefit derived from said trains by, the
traveling public; that existing alternate transportation ser-
vice by rail, bus, airline and motor truck are reasonably
adequate for the transportation of passengers, and express ;

that the public will not be materially inconvenienced by the
discontinuance of the service here involved; that the sav-—

ings to be realized by the carrier outweigh the inconve-

nience to which the public 1 may be subjected by. such discon-

tinuance; that such savings will enable the carrier more
efficiently to provide transportation service to the public
which remain in substantial demand; and that the continued
operation of trains Nos. 13 and 16 would constitute a waste-

.. ful service and would impose an undue burden on interstate

commerce.

We have heretofore coneluded that we have no authority |

under section 13a(2) to impose conditions for the protec-

. tion of rail employ ees adversely affected by the discon-—

tinuance. While.it is recognized that the probable adverse
effect upon employees is a factor to be considered in deter-
mining public convenience, such probablé adverse effect ir

the present proceeding does not afford a sufficient basis to

justify continued operations of the involved trains. -

Contentions of-the parties as to either law or fact not -
specifically discussed herein have been given consideration —

and found to be without material significance or not ane
Se. er

¢ We find that the present ‘and future public convenience
and necessity permit the discontinuance ‘of service by the
Southern Railway Company of its passenger trains Nos. 13

aaa

3

NERA EOS NR

18 : . ; ; ; - ; af | =

an 16 between Greensboro and Goldsboro, N. C., and that

the continued operation thereof would constitute an unjust —

_,and undue -burden upon the interstate operations of that
carrier and upon interstate commerce.
An An appropriate order will be éntered. pha

“Tol. 1 16} mee Bk
ORDER | : Fi F . « Ge
Ata eee of the. INTERSTATE COMMERCE COM-

’. MISSION, Division 3, held at its office in Washington,
eee D. C., on the 27th day of June, A. D. 1962.

3 Finance Docket No. 21563 -

’ SOUTHERN RAILWAY COMPANY DISCONTINU: .
ANCE OF. SERVICE BETWEEN GREENSBORO -
e AND GOLDSBORO, N. C:

rivestignticn of the matters and things. ‘involved in this
_ proceeding having been made, a hearing having been held, |
and said Division, on the date hereof; having made and
filed ‘a report herein containing its findings of. fact and
conclusions of law, which report is hereby referred to and
made a part hereof : ;

It-is ordered, That fintueveners” sestions i dismiss the.
_' proceeding. be, and they are hereby denied.

It is further ordered, That the petition of the. Southern
- Railway -Company to- discontinue the operation of the pas-
_‘senger trains specified in the aforesaid — be, and it is
hereby, granted.

It is further ordered, That this wie shall be atlective
20 days from the date of service hereof ; and

8

‘It is further ordered, That if the authority herein. granted
is not exercised within .one year from the effective date
£ thereof, it shall be of no further force or effect.

By ‘the Commission, division 3.
Ss perks Shed Rc - - -Harotn D. McCoy, :

| Re nen F Secretary. — -

_ Finance Docket No. 21563°

ANCE OF SERVICE BETWEEN GREENSBORO |
AND GOLDSBORO; N: C..

Presence of an Issue of General Transportation Importance.
PRESENT: KEN NETH H. TUGGLE, Commissioner, to

signed for action thereon.

Upon consideration of the record in the above-entitled
‘proceeding, including the petition: of the State of North

‘Triangle Institute, Erwin Mills, Ine., Duke University, and

provisions of section 1.101(a)(4) of the ‘General Rules of
_ Practice before the Commission, for a determination of the
presence of an issue of genera] transportation importance ;
and ~ cs

It appearing, That the Commission, Division: 3, by its re-
, port and order decided June 27, 1962, and served*July 2

. 1942, granted the petitien of the Southern Railway Com-
pany to discontinue its passenger train service between
Greensboro,and Goldsboro, N. C., which order is to become
effective 20 days from its date of service ; and - ,

° It further appearing, That the petitioners herein hes
complied with the provisions of: said section 1. 101(a)(4)
of the General Rules of Practice and that the question of
_ the presence of an issue of general transportation im- |

: : 19,
(faery. :
Cea ‘Exaorr “B” ro Conruannt

7 | ‘* SERVICE DATE
2 JULY 20, 4962 ©
ORDER :

SOUTHERN RAILWAY COMPANY DISCONTINU- |
: In the Matter of.a Petition for. a Determination of the

whom the above-entitled. matter has been as--"

Carolina, the Durham Chamber of. Commerce, Résearch .
Mrs. Mary. Trent Semans, filed July 16, 1962, under the ~*

portance. will become moot if the order of the Commission; »: 39
Division 3, decided June 27, 1962, is to become effective:
. : : } e az ‘ + ats

e ’

2 Riactat og oo ; A ;

It is ordered, That the efféctive date of the order of the
Commission, Division 3, decided June 27,\1962, in this pro- -
ceeding be, and it is hereby, postponed pending the deter-
mination of the petition requesting a determination of the.
'. presence. of an issue of genéra ransporéation importance.

Dated at Washington, D. €., this 18th day of July, A. D.
1962. -

+ x ‘
=“ \

. By the Commission, Commissioner Tuggle. ak
ae ‘ - Hanowp D. McCdi
ies Maher ee -.\- Secretary. \,
Weg). baad 2 we eles | rs X\
" [fol. 18] ee 0 ees Pay Gaeages

Exar “B-1” To CoMPLAINT - eg

SERVICE DATE
AUGUST 8, 1962

aS :
- Ata General Session of the INTERSTATE COMMERCE. -

. COMMISSION, held at its office in Washington, D. S. on. .
the. 6th day of August, A. D. 1962.

; ae Finance Docket No. 21563

* SOUTHERN: RAILWAY COMPANY DISCONTINU..
- ANCE OF SERVICE. BETWEEN GREENSBORO
AND GOLDSBORO, N.C. >>

Upon consideration of the record in ‘the above-entitled |
- proceeding, including the petition of the State of North .
_ Carolina, the .Durham_Chamber of Commerce, Research |
Triangle Institute, Erwin Mills, Inc., Duke University, and —
Mrs. Mary Trent Semans,’ filed: July 16, 1962, under the |
‘provisions of section 1.101(a)(4) of the General. Rules of
Practice before the Commission, for a finding that this pro-
ceeding involves an issue of general transportation im-
portance; and —

ce
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‘It appearing, 7 no issue of general transportation im-"
portance is involved in the proceeding :

It is ordered, That said petition. he, and it is hereby, de- sy
‘nied, and the order of June. 27, 1962, be, and. it is-hereby ©
made effective 15 days from the date of service hereof.

By the Commiasisn. :

Hanotp D. McCoy’
‘ > Secretary. -
(Sea) - : Ree es
% ‘*¢ % a . . 3 : | : : . : \
- {fol.19] _-_[Fileendorsement omitted] ‘|

| INvTHeE Unrrep Srares Disraict Court tC
‘For THE Mp.e Disraicr OF. NortH Da |
> Civil Action they No, C- 158-D-62 \

So
XY
\ .
\ \
\ . .
iN :
\

X

\ —Filed September 10,1962
The Defendant, ‘Southern. Railway Company, answering

\ [Title o 0 itted) | .
\ serene or SouTHERN Ratway Picardy ;

: = Cecepldiat of the inmsaniins alleuse and Bays:

1. .
It is denied that many people in the City and. Gian of

‘ Durham use the trains ‘involved in this proceeding. It is’
:-~-denied that the operation of the - Research Triangle re-
" quires the services of these trains. It is denied that the °
_ Officers, directors and employees of Erwin Mills, Inc. use
. [fol. 20] the services’ of the trains involved in this pro-

ceeding. Except as herein. denied, the allegations of Para- ;
graph 1 are admitted, ge. are

22 a

Ne leg

‘The allegations of Paragraph 2 are admitted. In this
connection, it is specifically alleged that Greensboro is on

“.the main line of the Southern Railway, Company and it is

serve by five (5) trains daily in each direction between
Wash¥tton, D. C., Atlanta, Georgia, dnd other points,
and two (2) trains daily i in each direction between Greens-
boro and Asheville via Winston Salem; that Raleigh is
on the main line of the Seaboard Airline Railroad Com-

.pany and is served by six (6) trains daily in each direction

between Richmond, Virginia, and points North, and Florida

- points and Atlanta and Birmingham, and one (1) train

daily in each direction between Raleigh and Portsmouth,
Virginia; that Selma, North Carolina, is on the main line
of the Atlantic Coast Line Railroad and is served by three
(3) trains daily in each direction between Richmond, ,Vir-
ginia, and points Northy and Florida; that Goldsboro,
North C&rolinagis on the Atlantic Coast Line Railroad and
is served by one (1) train daily in each direction between"

Rocky Mount and Wilmington, North Carolina, which con-

[fol. 21}: nects with other trains at Rocky Mount to provide

' through sleeping car service bétween Wilmington, North
. Carolina, Washington and New: York. .

3.

It is denied that the passenger trains involved in ‘this
proceeding afford the only passenger service. between

. Greensboro and Goldsboro, the truffi being that passenger

service between the two points is provided by numerous

_.. busses. In addition, the Cities of Greensboro, Raleigh,
.’Sélma..and Goldsboro are served by passenger trains as’ .
"+. deseribed in: Paragraph 2“abéve. Except as herein denied, -'

the allegations of Paragraph 3 are admitted. In this con- ~

nection, the Defendant attaches hereto as its Exhibit No. 1
.a true and correct eopy of the ares of Examiner William oe
“\ J. Gibbons. os és

The sits of Paragraph 4 are admitted.

5.°

It is denied that the discontinuance of the operation of
the trains involved in this proceeding would constitute a
breach of the lease agreement with the North Carolina
_ Railroad Company. Except as herein denied, ee
of Paragraph 5 are admitted... pe
[fol. 22] Tae 6.. a a
It is.admitted that Southern ailway Company is not. in |
- default in the payment of any of its financial obligations;
that the Southern. -Railway Company does not operate at
a loss; that the passenger trains involved in this proceed-
ing are the only passenger trains running between Greens-
boro and Goldsboro. Except as herein admitted, the alle-
gations « 7 &, Bisthine.

Joyner & Howison, By W. T: J oyner, Jr.

oe (tah 28° * ce A.
Rige eas 5 Exmert 1 To Axgw eee

ei ~ INTERSTATE C COMMERCE COMMISSION
ot ds «Served Obtober 27, 1961 ©

_NOTICE TO THE PARTIES

Mreaptions, if any, must be filed with the Secretary, IN-® *

- TERSTATE COMMERCE COMMISSION, Washington, *
egg. & days from the date of service shown above, or within such
further period as may be authorized for the filing of such

_ éxceptions. At the expiration of said period for the filing
of exceptions, the attached order will become the order.of _
the Commission and will become effective unless excep- .-
tions have been seasonably filed or the order -has been -%
_ stayed or postponed by the Commission. If exceptions are
., , filed, repiies to exceptions may be filed within 20 days after
' , the final date for filing of exceptions. “It should_not be
assumed that the recommended order has become e ive .
as the order of the Commission until a notice or order’ to |
- effect, has been Lg ae bth - .

>

toe

sc Railway Company.

. Finance Docket No. 21563 |
. SOUTHERN RAILWAY COMPANY

‘DISCONTINUAN CE OF SERVICE BETWEEN
GREENSBORO AND plcaniaseaces N. C.

j 3 ¢
Desi ‘
° fi -# as
i: Wottons of protestants , to dismiss proceeding over-__

.

Ty) Order granting | alia of Southern Railway —s
7 to discontinue the operation of trains 13 and 16
between Greensboro and Goldsboro, N. C. aie *
' Arthur J? Dizon and Earl E. Eisenhart. for Southern
6
.

F. Kent Burns for State ‘of North Carolina and North
Carolina Utilities Commission. —

Bees B: Holton, W. J. Burton, Jr., and R: L. Carnes
for railway labor organizations, protestants.

Claude V. Jones, Victor S. Bryant, E. C. Bryson, E. Cc.
Brooks, Jr., A. H. Grapam, Jr., and Francis E. Walker for
: _— protestants.

"REPORT AND ORDER.
RECOMMENDED: BY. WILLIAM J. GIBBONS,
Beir: _ HEARING EXAMINER |

On: April 6, 1961, the. Southern Railway Company, a
common carrier by railroad subject to Part I of the Inter-
ee Commerce Act, filed a petition under section 13a(2)”

__ [fol. 25] of the At for authority to discontinue the opera- .
tion of trains Nos! 13 and. 16 between Greensboro and

\ nk

ety

' Goldsboro, N. C. ‘A hearing was held in Raleigh, N. C. on —

July 11 through July 14, 1961, of which the Governor of .
the State of North Carolina and the North Carolina Utili-
ties Commission had notice. he supey na Railway Com-
pany wil. be referred to h as the “petitioner”, the .

Ae os Ob se

26 : ei:
railway labor alata and their representatives as .”
“employees”, and all other parties, including the State of
North Carolina and the North Carolina Utilities Commis-
sion, will be referred to as “protestants”. ‘The proceeding
has been referred to-the examiner who presided at the
hearing for 4 recommended report and order. Briefs have —
been filed. . ae Feat aa tap Sa ates | ;
On July 8, 1959, the Southern Railway Company filed an
application with the North Carolina Utilities Comizhission —
for authority to discontinue the operation of the same
' trains that are involved in this proceeding. After hearing, —
the North Carolina: Commission issued its order dated
January 20,.1960, denying the application. On appeal, a
judgment of the Superior Court of Wake County, N: C., .
affirming the order of the North Carolina Utilities Com-'
mission, ‘was affirmed by the North Carolina Supreme Court
on February 3, 1961. State of North Carolina, ex rel.
Utilities Commission et al. v. Southern Raitlway,Company, ._
254 N.C. 73. | ES Niels * a ba
At the outset of the hearing, protestants filed three
separate motions to dismiss the proceeding on the gragnds |
that (1) section 13a(2) is unconstitutional, (2) decision of
_ the Supreme Court of North Carolina which sustained the |
order of the State Commission is res judicata, and (3) no
proper notice of the hearing was given as required by law.
- It is well established that an administrative agency is
without power. to pass upon the constitutionality of a
federa! statute Which it is called upon to administer. See
> Engineers Public Service Co. ¥. SEC, 78 U. S. App. D.C.
199, 138 F. 2d 936, 952-953, dismissed as moot 332 U.S.
788; Panitz v. District of Columbia, 72: App. D.C, 131, |
FB. 23, 39; Todd v. SEC, 137 F. 2d: 475; 478 (6th Cif); |
Central Neiraska Public Power & Irr. Dist. v. FPC, 160°”
F. 2d 782 (8th Cir.), certiorari denied 332 U.S.-765; and”
Public Utilities Conimission v. United States, 355 U.S. 534,
With respect to the second motion to-dismiss, it is thé
position of protestants that the matter has beeri conclusively
adjudicated by a court of. competent jurisdiction and that
. all parties are bound by such detérmination in the absence -
of an allegation or showing of.a change of conditions, and

_

a:
‘since no change in conditions has been’ alleged or shown,
the decision of the Supreme Court of N orth Carolina,
supra, is res judicata. — raat
. ‘In the past, this Commission has superseded court deci-
‘. . sions when the applicable statute clearly indicated that it
_ should do so. Chicago, S. 8. @ 8S. BO’R., 234 LC.C. 34; ©
-. Street Elect. Ry. d M. Coach Employees v. C., A. @ E.R.
[fol. 26] Co., 234 I.C. C. 301; and Sprague v. Woll,%122 F. 2d
128, certiorari denied 314 U. S. 669. The jurisdiction of d
this Commission over the subject matter of this proceed-
ing has been established by virtue of the denial of peti- . °
_tioner’s application by the North Carolina Commission and |
"the subsequent filing by petitioner of the petition herein. —
After the jurisdiction,of this Commission has been properly
invoked, section 13a(2) contemplates that the matter be
tried de novo-and that the prior determination by the ap-
propriate State authority is of an advisory nature ouly,
_having no binding effect upon this Commission.’ To hold
otherwise would render section 13a( 2) ineffectual or wholly
inoperative. Moreover, section_]3a(2) raises an issue with —
respect to the burden on. interstate commerce, an issue
which neither the North Carolina Commission nor: the
North Carolina Supreme Court was empowered to deter-
mine. The doctrine of res judicata does not preclude re-
litigation when a new-or different claim or issve is pre-.
sented. For the above reasons, the examiner concludes
that this Commission is not bound by the order of the
North Caroling Commission or b¢ the State Court deci-
_ sions which edthatorder. ~ .
Protestant’s third motion to dismiss is based upon the
ground that petitioner did not post notices of its proposed
discontinuance in its stations, depots and passenger cars
as required by law. In support of this motion, they con- ‘
- tend that the applicable regulations (49 CFR 43.1) specif- ee
ically state that the rules apply to a “notice” under section. Pa
tt} of the Act, or to a “petition” under section 13a(2),

ye 18a (2) ‘sondiiia? ‘among other ‘thins, that this Com-
‘mission “is authorized to avail itself of the cooperation, Services,
records. and facilities’ of the authorities in’such State in the per-./ |
formance of its functions under this paragraph.” :

ron RereReeTeNS as AS ch SIRS AT IG BORA SP Ge peaks a, RD a! ited ar eas ae

BF

-

eee ee

and, further that section 43.5(j).of the regulations requires _

_ that a copy of the notice of the proposed discontinuance

for authority to effect the discontinuance of a train shall | |

tions, paragraphs (a) through (k), specifically applies to.

- be posted “in a conspieuous place in each station, depot or ——

other facility involved, including each ferry-and each pas- —

Senger car. ” (49 CFR 43.5(j)).

It is to be observed that the regulations define the te er —g

. “notice” as a notice provided for in section 13a(1) of
. Act, and the term “petition” as a petition filed under sec- °

tion 13a(2). (49 CFR 43.2). Section 43.5 of the regula- | 3

a “notice” in a section 13a(1) proceeding, and section .43.6,

‘paragraphs (a) through (d) specifically applies to a “Petry
tion” in.a 13a(2) proceeding.’

Among: other things, section 43.6 provides that petitions

contain information required by.'section 43.5 excepting

[fol. 27] paragraph (i) thereof. (49 CFR 43.6). By re- .
' quiring all other: information contained in section 43.5 ex-

cepting paragraph (i), section 43.6 would appear to re-

quire the carrier to comply with the. notice posting re 3

quirement of section 43.5,(j). ©

Despite the language. of” section 43.6, duch a requirement
on the part of the earrier was never inténded i in a section
13a(2) proceeding. As origifially issued by this Commis-

“sion on August 14, 1958, paragraph (i) of section 43.5 con-

tained the requifement with respect to the posting of no-

tices in a section 13a(1) proceeding, and section 43.6, relat-.-
ing to petitions, required the information set forth in section

43.5 excepting. paragraph (i) thereof. (23 F.R. 6378, Au- — .

gust 20, 1958): Thus, it is clear that, as originally issued,
the applicable regulations did: not require that the notice.

called for in a section 13a(1) proceeding be required in a.

- section 13a(2) proceeding.

By subsequent amendments to the regulations on No- a:
vember 12, 1959, a new paragraph (i) was added to’section
43.5 and the then existing paragraph (i) was amended and

redesignated paragraph (j). (25 F.R. 434, January 20,

1960). No amendment or change in section 43.6 was made
at that time and through inadvertence or as a result of-an
? Sections 43.7 and 43.8 apply to notices and petitions.

Ws

’ tified as trains 13 and-16, operate daily between Greens-

_oapparent mishap, the reference to paragraph (i) was re-

tained in section 43.6 when it (paragraph (i)) should have

_ been relettered paragraph (j). Thus, thé only conclusion
that can be drawn from the administrative history of the

applicable regulations as well as from the contemporaneous

- construction placed thereon by this Commission is that the
. type of notice required in a section 13a(1) proceeding is.

not required in a section 13a(2) proceeding. In this con- 3
nection, see Pennsylvania R. R. Co.—Discontinuance of ©

Passenger Service, Camden-Pemberton, N. J., F. D. No:

20553, decided June 6, 1960. To interpret the regulations
differently would be inconsistent with the obvious intent
expressed in sections 13a(1) and 13a(2) of the Act. . —

For the reasons Atated, the 3 motions of protestants -

- above-described to’dismiss this proceeding should be over- |

ruled. x cy Cane et ao : P
The trains. sought to be discontinued, hereinafter iden-

boro and Goldsboro, a distance of 129.1 miles. As pres-
ently scheduled, eastbound train 16 leaves Greensboro at
6:10 a.m., and arrives at Goldsboro at 10:45 a.m.,.serving .

12 intermediate stations on regular. stops and 9 stations .

on flag stops. Train 13 leaves Goldsboro at 3:05 p.m., and

arrives at Greensboro at 7:50 p.m., serving 10 regular in-

termediate stations and 11 flag stops. These are the last

- two° passenger trains operating in an east-west direction

between Greensboro and. Goldsboro. Appendix. A hereto’
shows the schedules of the trains, the regular stops, flag
stops and the populations ‘of the cities and towns served
by the trains. : eae

.

[fol..28] The trains regularly consist of a 1500-horse-

power diesel electric locomotive, a passenger coach, and a -
combination car for passengers, baggage and express. In

addition, on the portion of the run between Raleigh, N. C., ~~
- and Greensboro, each train handles a sleeping cary which,

in turn, is handled on other passenger trains of petitioner

‘ between Greensboro.and Washington, D. C., and on trains”

of the Pennsylvania Railroad between Washington and

4° New York City, thus providing through sleeping car ser-. -
'. ° vice between Raleigh, Washington, Philadelphia and New

York City. The trains carry express but no mail. The

80

eee parr are operated ber a 5 man railroad crew aaaieliens of
.°. @ @M engineer, fireman; conductor, flagman, and, brakeman.

Although one
sary in the ope
sees cers of working

‘During the pe
passengers carri

_ on'each train and ‘average passenger _ per train mile
| Were as follows: ?
| Z " Passengers. te Sa Sade:
m 1959, 1960. 1961 (5 mos.)
B Train 13 6,462 7,076 | 4,384
Train 16 7,789 .- 7,700 4,550 |
: Total .. 14,251 14,776 8,934
ee Daily -Average “e ;
See > 1959,. 1960 1961 (5 mos:)
Train 13 SS 193 29.0 a
Train 16 21.3 21 ~ 30.1.
Total 195 20.2 (29.6.
Average Passenger Mile Per Train’ Mile
) 1959 1960 -. 1961 (5 mos.)
‘Train 13 = ee i 10.67".
Train 16. 7.16 7.50 9.27 -
Total . 6.83 S2 coe | aoe

crew makes a round trip, two crews are neces- ©
ration because of limitations on the num-
days. In addition, a pullman conductor and
a porter work the s

ping cars and an express erceeitn. ted
works: the trains 5 days a week.
_ indicated below, the total stihl of :

on trains 13 and 16, the daily average

: Appendix “By shows the .on-and-off ‘passenger count at
* .. each station for train 13.in 1960 and the daily average at.
_- each station. Appendix “C” shows similar data with Te-

spect to train 16 in 1960. In 1959and in the first 5 months

of 1961, the pattern of entrainment and detrainment was ~ :

substantially the same.as in 1960. As
' tistics, the ‘overwhelming majority of
ee less than 1 ane a day boarding train 13 or

aloe

by these sta- ©
e stations served

: 31

“16 ‘of the total passengers (7076) pee by: train 13 in
- [fol. 29] 1960, 989 passengers entrained at Goldsboro, 826
‘at Raleigh, 2,929 at Durham and 1,464 at Burlington, and
5,048 passengers detrained at Greensboro. Of the total -
‘passengers (7,700) carried by train 16 in 1960, 5,101 en-
_ trained at Greensboro, 112 at Burlington, 775 at Durham
and 667 at Raleigh. All but 1,279 of these passengers on
. train 16 detrained before reaching the end of the line at.
‘Goldsboro, the heaviest detrainment (2,712) occurring at
Durham, and at Burlington and Raleigh, with 1,275 each.

In.1948, both trains carried 56,739 passengers, an aver-
age of 77.51 per trip, as’ compared with a total of 14,776,
or an average of 20.19 per trip, in 1960. During the same
period, total passenger. revenues declined from $60,534
Or an average passenger revenue of $82.70 per trip, to
“$21,135 or $28.87 per trip. In 1959, 1960 and during the
first 5 months of 1961, the ‘average revenue per passenger
was respectively, $1.39, $1.43, and $1.19. Each train &arns
. from 21 to 22 cents per train mile i in passenger rvvenue, and
about 34 cents per train mile in express revenue.

As shown by petitioner’ s exhibits, the revénues derived
from the operation of the trains in 1959, 1960, and the —
first 5‘months of 1961, the direct expenses ineurred in con-
nection therewith and the expenses in excess of revenues
/ were as follows: Ls os

[ pean : “1950 es 1961 (5 mos.) ©.
- heistiiies St ee & i ;
.. Passenger ........ $.19,839- $ 21,135° $10,653
_ Express ) $ 31,875 | $31,630 § $ 4,697
Miscellaneous ................. $ ° 356 tial, the exclusion: of ‘them from petitioner’s operating re-
_ sults will not ,alter the ultimate findings made herein.*

- Except for these, thé-remaining expenses presented. by

‘petitioner are directly attributable to the operation of the

s trains and appear to be proper and fairly realistic.

‘In determining the net feeder value of these trains, the |

protestants contend that the reduction. of the gross sys-

tem-conn revenues by 50 percent; as, representing the

cost of producing such. revenues, is ly speculative.
- _ Protestants, however, suggest no tive cost formula.

In rail abandonment proceedings aswell as in train discon-

tinuanep cases, the Commission has accepted the 50 percent -

'. formilla as reasonably reflecting the cost of producing sys- ‘

tem off-line revenues: Chicago,.M. St. P. d-P. R. Co., Dis-
continuance of Service, 307 1.0.C. 865. Ini the absence of a
more precise method for determining net feeder value, the
examiner accepts as reasonable the 50 pexvont cost’ formula
used by. titioner.

It is the further position of protestants that revenues are .

| aideulada: gince no revenue wag assigned to the trains

for the transportation of pass riders. In a recent case, the -
Commission, in rejecting a similar contention, observed.

. that “constructive revenues or phantom revenues—revenues

(fol. 34] from fares never collected—are of no measurable |

‘financial advantage to the carrier, and, thus should be dis-

regarded in. the computation of total revenues.” Southern
‘Pacific Company Partial Discontinuance of Passenger

| Trains Bétween Los Angeles and Sacramento; Oakland
and Sacramento; and San Francisco and San Jose, Calif.,

F. D. 20503, decided Augnst 11, 1961. These remarks are

equally applicable here. While no doubt the carrier incurs
some expense in -the transportation of pass riders, the ex-
penses involved should be considered. as being merely in- .
cidental to the a 8 ) prithary responsibility of _—

ee

In 1960 expenses for injuries to persons were, $500 and for
- .-.damage to livestock $50. In 1961 expenses: for injuries-to persons

was $3,500. Neither of these expenses was incurred in 1959.

| a % :
ating the trains for the’ benefit-of the public. So long as
. the trains are required to 6 erate, the additional cost of —
_ ‘earrying pass riders or d dheads is infinitesimal. Thus,
there is no basis for reducing or adjusting the a of «
these trains because of the pass riders. Similarly, there is.
_ no merit in protestants’ contention that the. computation of -
express revenues on a car-foot ‘mile. basis is im roper. See,
Chicago & N. W. Ry. Co. Discontinuance of. ervice. 307
LC. O.7%. °°
~ Another ecnifisition of sobtetniitt is that any sedate
deficit,on this line should be reduced by a percentage
,amount equivalent: to the combined federal and State cor-
porate inegme taxes. In considering and rejecting a similar :
-contention in New York Central R. Co. Abandonment, 254 °
1.C.C. 745, 755, the Commission stated:

' “The committee of Yonkers Commuters contends, in
effect, that the actual loss of $60,155 from the opera-

cause if the loss had not been incurred, applicant
would-have paid a 40 percent Fedetal income tax on
‘ah equal sum, amounting to $24,062. but obviously the. ”
loss was actually incurred, and dt cannot reasonably >

‘be considered that it was less. because applicant’s total
iuome [sic] tax might have been $24,062 less than it:

‘*would have been had it not been-incurred.” .

The findings and conclusions in the ‘above report were .
affirmed in Public Service-Commission of New York v.
United States, 56 F. Suppe 351, affirmed 323°U. S. 675, |
rehearing denied 323 U. S. 817. The -Commission has re.

‘cently reaffirmed its position on ‘this issue. See Southern
Pacific Co.—Partial Discontinuance of Passenger Trains,
- Los Angeles, etc. supra. The contention of protestants on

' this issue must accordingly be rejected.

At the hearing, protéstants emphasized the fact that peti.
tioner’s net railway operating income in 1960 was $36,-
107,599, and that its net income alone from freight: opera-
tions on the line between Greensboro and Goldsboro aver-
- ages $630,000, thus contending ‘that the overall prosperity
of the. deepen as. well as its intrastate freight ‘operations,

.tion of the branch should be ‘reduced to $36,093 be- «°

- »

ve must be given ‘effect in the Seectiiin of the issues ‘inbelved ;
- ,[fol. 35) herein. ‘With these eéntentions, the examiner dis-

~ of the ‘operation of gervices that ang longer pay their-way ~

agrees. The legislative history of section 13a(2) indicatgs
that ‘the purpose thereof. is to permit. the discontinuance

and for which there is no longer public need to justify

the heavy financial: losses involved.” (S. Rep. 1647, 85th

Cong.). (Emphasis supplied). In éonsidering a somewhat

-siniilar, contention, in Southern Pacific Co—Partia] Dis,

continuance of Passenger Trains, Los Angeles, etc. supra,

- would not be consonant with the national transportation ;

the Commission made the following pertinent statement:

-“Nowhere in section 13a(2) or.elsewhere in the law is:

_ there any requirement that the prosperity of the in,
trastate operations of the carrier as a whole, or any

particular segment thereof, must be given effect in |
determining whether the operation of an individual’.
. intrastate train imposes an unjust and undue burden.

- on interstate commerce: To hold otherwise would be
: pea to the upparent intent of the etc ney

In this same connection, the argument that losing passen-

freight rates is also untenable. In rejecting this-argument,
the Commission stated that such “theory of. regulation

policy, and would be fraught with disastrous possibilities.”

Great Northern Ry. Co. Discontinuance of Serviee,.307

1.C.C. 59, 61. Similarly, the fact that petitioner’s system

: operations are profitable is entitled to little or no weight.

See New York.Central R, Co. Abandonment, supra; Sea-
board ‘A. L. Ry. Co. Abandonment, 257 I.C.C. 758, Great

.Northern Ry. Co.—Discontinuance.of Service, supra.
? Although protestants submitted no financial data with
. | Tespect to trains 13 and 16, they contend on brief that the

maximum loss incurred by ‘the operatiqn: of these trains in

1960 was $33,688 instead of petitioner’s claimed loss ‘of.
$117,641. To reach this conclusion, protestants subtraéted

$6,940 (terminal expenses at, the Goldsboro Union Station)

| and. $41, 517 (net feeder. value) from a aatnes

ye

* ger operations must be supported by constantly increasing -

_ Joss. Sites this amount ($70, 184)," they turther subtfacted °
‘a federal income tax deductidn (52 percent of $20, 184) of
sar ee ; 4 °

Goldsboro have been allowed, and protestants’ contention
regarding income tax savings has been overruled. In the

trains.. Petitioner claims that it
- [fol. 36] Neither of these positions can be reasonably sus-

connect&i revenue losses, however: can not be determined
from the record. But @suming tn

value of these trains will. be lost, petitioner’s minimum
' out-of-pocket loss froma the operation of these traing;.on the
- basis of- 1960°figures and aftes dedacting $550 for non-
recurring expenses resulting from i injuries to persons an

ings of $15,015 in’ —_ expenses, previously referred to
_ herein, ‘and the net“savings to be realized from the discon-
tinuance.of thése ‘trains would be at least $90,589 @ year.
On -the theory that some of the feeder value will be re-

~ ings will-be considerably én excess of $90,589 a year.
‘Among others, t ctors.to be considered in a proceed-
‘ing of this nature ake }the populations of the communities

- and the financial losses sustained by the carrier in provid-

- determination’ must be designed to protect interstate cOm.

of the carrier to continue to provide efficient transportation
. Servite to the publie generally. Thus, in determining pub-
lic convenience and necessity, the needs of the entire public,

7 There appears ‘to be a ‘mathematical error of. ec, p00" in Lad
: Aestante’ calculation. | nS

* hn

-

ae SE, SER RRR RACE
. . .
e
» .
a
~ od °.
\ 39

For reasons hereinbefore stated, terminal expenses: at_

foregoing computation, protestants assume, that petitioner 7
will lose all, system-conrected reven aepomes by these.
retain all of it, -

- tained. It seems obvious that petitioner: will neither lose.
nor retain all of such revefine. The exact amount of system- .

hat tfe entire net, feeder
livestock would be $75,574 annually. Add:to this the,sav-

tained, the examiner is of the opinion that the annual sav- .

served, the use made Vy the public of the trains sought to ‘
_ be discontinued, other mearfs of transportation inthe area, .

ing the service? Colorado v, United States, 271 U. S. 153. .-
Under the provisions of section 13a{2), the Commission’s

merce from onerous burdens which may aifect the ability —

_ as — from the relatively few, mnt va taken into

fs

S a

sccount. When there is i eesti trated. “el ne the ser-

2 vice, the continuation thereof might he justified even at a

loss to the carrier. In the final analysis, however, the need
for the service must be: balanced against the losses ' sus-

~ tained, in providing the service.

That some need exists for the service of trains 13 and
16 is shown by the testimony of the opposition witnesses.
Their need, however, is relatively insubstantial when

viewed in the light of the density of the population of the

area segyed and the patronage that is potentially a available.’
Only scattered opposition appeared at the hearing in this
proceeding and at the hearing held by the North Carolina -

; Coulee, and most of .the o ss came from, Dur- .

ham, with virtually none-east thereof. It is obvious that
the needs of these few would. be insufficient to justify the
institution. of a new service. Conversely, it should be

__ equally apparent that under the test of. public convenience ~

and necessity, their needs no. longer Justify the continus-
tion of existing service. d
_ In arriving at this conclusion, the fact See not sean :
overlooked that there has been an increase of nearly 50
percent inthe daily average number of passengers patron-
izing these trains in the first 5 months of 1961 as compared
with the entire year of 1959.- In actial numbers, the daily: .
[fol. 37] average for both trains increased from 19.5 in
1959 to 29.6 in the first 5 months of 1961. is
These figures, however, are of minor significance because :
the comparison. of two“entirely different periods fails to

'.- take-into’ consideration ‘seasonal variations: in passenger

traffic patterns and for the further reason that the increase
in’ 1961 was due largely' to an increased number of group
movements of school ehiidren.’- Moreover, the percentage 2

e

Mincrease becomes even less meaningful when considered in

the light. of petitioner’s statement that 82,000. additional
passengers @ year on these trains would. be- required to
enable it to break even. Despite the increase in patronage ~

_ ‘in the first 5 months of 1961, passenger revefiues during

that-period amounted to only $10,653; or $26,020 less than

. the wages of the train and engine crews.

For most of the major communities, shiacaiki passenger
service is available by. bus and by air and 4 communities

‘ .
ee et eidiemaamiaains . e:
oi ‘
.
o ® -
ies y
o /
~
’ erty Se! ees e z . » ;

‘have rail passenger service. Only 3 small communities — :
_ would be left wholly without bus service. Likewise, express
service by motor truck, as proposed by the Railway Express

_ Agency, should be adequate for most of the communities.
While industrial expansion may, under certain circum;

"stances, depend on rail passenger service, it would appear

-that industry is much more concerned about. rail freight

service than rail passenger facilities. For this reason, and * —
because of the ever-increasing use of automobiles_in the
area involved, the economic: growth aspect of. this’ is.

’ relatively unimportant. Neither the isolated instances of
poor service nor defective train equipment sustain pro- .
testants contention that petitioner has deliberately dis- .
couraged the use of these trains as part of its plan to pre-. _-,
sent a plausible case for abandoning service on the line.

_ Neither the present nor prospective traffic on the line would -

- justify the use of expensive or ultramodern equipment on
-.these trains. As to petitioner’s failure to advertise the
services of these trains, the Commission has repeatedly held
that prospective patrons who must be coaxed to use a ser;
vice evidently have no urgent need for it. :

- In the light ‘of all these considerations, and for reasons |
hereinbefore stated, the conclusion is warranted that, the
continued operationgof trains 3, and 14 would constitute .

a wasteful service and would impose an unjust and undue
_ _burderi upon the interstate operation of ecarsenn. 4 and’
upon interstate commerce.- :

At the hearing, employees of petitioner whose jobia may .
be adversely affected as a consequence of the discontinu-.
ance herein requested that appropriate employee-protective |

“conditions. be imposed in the event the trains.are discon-

' tinued. Although the 10 operating employees on’ the trains-
will be entitled to other jobs with equal or better. pay,
other employees with less seniority may be furloughed, or

_ [fol. 38] temporarily displaced. Three station. employees
and 2 pullman employees may also be furloughed. For rea- |
sons expressed in Missouri Pacific Railroad Company Dis-
continuance of Passenger. Service, 312 I.C:C. 105, the ex-

a er concludes that there is no authority under section.
(2) for the imposition of conditions for, the protection
af employees adversely affected by the discontinuance of

intrastate trains. It is seoanhial heiasiaes that the ino
able adverse effect: which the discontinuance of service
would have. upon employees is a factor to be considered in _.
_ determining: public corivenience and necessity. In the in-
stant ing such probable adverse effect does not .
afford: a’ sufficient basis, when considered in connéctiou
with all of fhe facts hereinbefore discussed, to justify the
continued operation of the trains.
Contentions of the parties as to either fact or law not BS
specifically discussed herein have.been given consideration
. and found to be without material significance or not justi-
fied. ¢, |
In S anticn of the petition. here, the akon ad-
duced at the hearing, the contentions of the parties, and -
being fully advised in the premises, the examiner is of the
opinion and finds that present and future public conve-
nience and necessity permit the Southern Railway. Com- |
pany to ‘liscontinue the operation of its Pata ‘trains .
Nos. 13:and\16 between Greensboro and Goldsboro, N. C., -
and that the continued operation thereof would constitute
’ an unjust and undue burden upon petitioner’s interstate
" operations and upon interstate commerce.
- In view of the findings herein, the examiner recommends
that the attached order granting the petition be entered.

By’ Wm. 7: Gibbons, pearing Examiner.

/s/ Ww. J. Gaszons
(Signature) Wm. J. Gibbons ;

a _ 3
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: Docket No. 21563 ;

- SCHEDULES OF TRAINS NOS. 13 AND 16,
‘OPERATING BETWEEN GREENSBORO AND ~
“GOLDSBORO AND POPULATIONS OF

‘COMMUNITIES SERVED. |
Read Down ~ - ' Read Up
16 - Miles». - | a
A AARON
6M10 0. Ly. icine .. 119,574. Ar. ° 7M50_
f. 6:22 . 80 MaLeanaville os 300° f.7:25 4
* 6:30 14.7 Gibsonville ....- 1,784 f 7:16 i
6:34 16.7. Elon College... _——-1,284 f 7:10°
6:50. «21.4 Burlington .... 33,199 14
f- 6:53 23.1 Graham ........... 7,723 f 6:42 3
6:57 25.8 Haw River .... 1,410 f 6:38 | |
- . 7:10 © 31.7 Mebane ............ 2,364 6:32
f 7:20 37.0. Elfland ..........:. ie £621 ©
7:25 40.9 Hillsboro ...:.... 349 6:15.
£735 464 (|: Glem -:........ n.:s.* £ 6:06 ©
- 7A55. 55.0 Ar. , Durham ........... 78,302 Lv. 5P55
8M10° 55.0 Lv. Durham .......... Ar. 5M55 :
f 8:32 68.7. Morrisville 222 f 5:19
8:39 728 Oe se 3,356 5:1
8A55 81.1 Ar. Raleigh ........... 93,931 Lv. 5
9M10. 81.1 Lwv.. Raleigh .......... Ar. 4M30
9:18 86.9. Garner .........:.. 3451 4:20
-9:30 ° 96.1 Clayton ....:.....: 3,302 4:07 -
9:39 103.7 Wilsons Mills 280 .. .f 3:57
109.2 Ar. Selma ............ 3,102 Lv. 3P50
J0M00° 109.2 Lv. Selma w00...: - © Ar. 3M50 - ay
oS ee ae eee ot oe ae
“117.7 °— .. Prineston ..c... 828
‘1938.7 eo A me A £ 3:15 3
_, 129.1" Ar. Goldsbore ww 28,873 Lv. 3P05 —
“tFlag stop.
n. s.—No population shown. .
, oe 3 * i}
i + . ’

Source: ee ee

. Southern Besiviy System Passenger Train Schedules, Ss
folder dated October 30, 1960. Population figures taken
"from Final 1960 Census, US. orp Census except

that those marked: with an asterisk ere obtained from

- Rand McNally Commercial Atlas & Marketing Guide, 91st. -
i 1960. - ) omen :

{fol. 40) I ae
Aone APPENDIX B To Exam 1. &.
“\ co eae te oe Finance Docket No. 21563 :
a PASSENGERS HAN DLED- ON TRAIN Se
OF were * DAY Of °° D/A
_ Goldsboro, NO OO 4% 2 SS
Rose, N.C. ... eg Oe Se Ui oe
Princeton, N.C. ......... seas i Ppa, See” 4
‘Pine Level, N. C. ee Bb + 16 «—
Selma, N.C.’ Oe 4O°.. 9 . 21 5
_ Wilsons Mills, N.C. .......... -. 29 ae ee
, ON, Te bo 124 2 2
Garner, N.C. ........ Yee te meee Dagan
Raleigh, N.C. .. 826 2.3 STi -- 10-.-
Gary, N.C. ri ce Free. Bee
_. ‘Durham, N-C, .......... ia 2929 8.0 453 1.2
- Glenn, N.C. .. a ei — - 538 —
‘Hillsboro, N. GC. Lael Kielce ee a. 266 4 gee
Efland, N.C.. — — wie
Mebane, N. Bee aris 117 3 ee |
re ee; B.D — 12 a.
Graham, N.C. .......:... 4 — 3 os
, Burlington, -N.C. .............- eee GOO ie ae
ie tele, BO OTT ee OO
Gibsonville, N.C., ............ 8 — (1400: «4
Greepsboro, N.C. — = = NB «dB
Fey Seis aA ee 7076 19.3: 7076 | 19.3
-*—Daily Averages ws, eae
eo
a hoa ae

, . ° : . 7 . hd
ee ee at . s decieeahie aeeeiininet 5 oan nahaenhaie " PRE SADE GE IOI SHE
: > :

! j e
ee ae
et :
[foli 41] | 7
ee , Appexory C to Exar 1 eee ee
| ; Finance Docket No. 21563
‘PASSENGERS HANDLE ON TRAIN 16
eh: ae D/At. om. Dyat
sical, ee 5101 / 139 8 — _
‘McLeansville, N.C... —j/2o0—- © 2, —-
. Gibsonville, N.C. -...2......- —- Po, Sierra TP
‘ Blon College, N.C. .:....- 19-- - 1 «51 nd) | uit peal si
Burlington, Mae cy 3. 1375 3.5 - :
: Gratiam, N.C. W.:.; oo a Se
Haw River, N.C. Se =e GB wt 2
Mebane,’ N.C. -................ vee 2 . 63 2
WON, FU. essences _— 2° —
Hillsboro2N. 3 odie | eee, A
Gian NO...) 7’. BD tL Se ae
Durham, N.C, ......... amo a1. 2713 74
Morrisville, ‘N.C. me —
' Cary, N.C. WN ee dB
Raleigh, N.C. ~............. 667. 18 . 1,274 3.5,
Garner, N.C. ...:............:. 49 1 17,
' Clayton, N.C. ............ RO 5 374 1.0
Wilsons Mills, ‘N.C. ........ a I aS
, Betmn, NO. os S147 a os 43.‘ 9
" Pine Level, NjC. i’ 96 | ” Shee
~ Princeton, Re 378 1.0 Yee oe
oe N. C. PERS RE & —- — 1279° 33.5
‘ex 7990 (210 7,700 210.
—Daily Average Ps eas } ;
é e s
=\ é

| : ale ; ae rm | ie
a2 46 6 : 4 36 ; : -
OS | 3g
: “se, Aprexorx Do Exuimr Ba EAE EET y
ie ieee = Finance Docket No. 21563 |

‘Geena Results of Passenger Trains 13 aad 16 between-
Greensboro, N. C. and Goldsboro, N. C. Year 1960

_ Revenisess

Te, Passenger FEET EERE habeas $ 91,135 .
ee) Say CE AAD Laie ee ea 31,630
~, Miscellaneous .. RRR APPLES PS 336:
Total Revenues . jighlissetenrdcpcubtoanianenes $ 53,101
Direct Expenses: ees aes an @ we ven
~ Wages, Trair and Engine Crews | 11,244 ©
I. Injuries to Persons + i
- Damage to Live Stock on R/W -: ok
- Pullman Co. Net Loss Hh EER Aaa 4,226 -§
" Engine House Expenses siSicniees ~ "1,590
Passenger Locomotive, Lubricants ................ : 1,816
ake Vag -OtherSuppl. ............ 372. «
-passenger trains daily in eath direction through Selma,
~ and 1 train a day throu Coldsboro. These trains

ea

2 : Z os “
PH AMARANTE D CRD HE PATS LOT RE, UI
| Sees

- 7 . ¢

ey re ee FT a

-

wsaitts wiinsh's service, ‘including. pullman accommo-
dations, to and from, among-other points, Washington, —
D. C., New York City, Atlanta, Ga, Binniaghom, Ala,
aes and Richmond, Va. .

(Report of the Examiner in eri ‘Docket No. 21563, S
: pp. 7-8, October: 27, 1961). This finding adopted by the ._
Commission, Division 3, in its report dated June 27, , 1962. °.

F VA
/ Itt,

; _ Admit the allegations. of paragraph 3, except that defen.
dants deny that the designated passenger trains afford the
_ only passenger service between the named points. Defen-. g
- dants aver. that the Commission found that, there is pas- _

-senger bus transportation between the naméd points. See
page 7 of Examiner’s report referred to in II above.

. Admit the allegation. of paragraph 4. - a.
7 le 3

‘Admit the allegations of the first sentence of paragraph es
“ Neither admit nor deny the remaining allegations since. they

call for an opinion regarding matter not Sc a ‘to a,
jurisdiction of the Commission. . : ete

> Answering the ‘sllegations of salami 6 defendants
- , admit that the Southern Railway Company is not a finan-

" cially depressed railroad and that it makes a profit on its . -
{f0l.46] total overall operation; that the passenger trains .
involved in this proceeding are the only passenger trains
"operating between Greensboro, and Goldsboro. The remain-
ing on are denied. - :

on Deny each and evéry allegation of ‘paragraph. , Ai

S

aad : . en

~“

wi ~gauaetyast of the Commission.

Answering paragi 8, admit the efistence ‘of a lease
agreement between the North Carolina) Railroad Company
atid the Southern Railway Company. Neither admit. nor

. deny the remaining allegations of paragraph 8 since they

call for an*opinion regardmg matter not — to the

=

4

Ix. ete Wer co

Deny each and every allegation of paragraph 9.
hey >” Wee : i aa M

_ Admit the allegdtion of .paragraph 10.

Further answering the complaint,. the dctendante: aver —
. that‘the action of. the Commission is valid and lawful i in all -*

respects. Except as expressly admitted herein, defendants

the extent that they are inconsistent with the averments

of this answer and with the order of the Commission “dis- :

missing the complaint. Pee &

' deny e@ch and all of the allegations in said complaint to: §

Wauenerorz; the United States of >

"According to the U. 8S. Census Bureau, the average family

in the U. S, based upon the 1960 Census, consisted of 3.68 persons.

. ™

ee Ow

8 eesden ‘on sterstate Dene of the petitioner’ and
commerce generally. a i.

_ [fol.57] 5. The names of all railroads Pee eee pas-
sengers with the subject trains and the points of such inter-
ehange are listed below and are illustrated by reference to
Exhibit 7, which is a map showing possible points of inter-
change of passengers between Trains Nos. 13 and 16 and
rail passenger trains of other rail lines at Jeigh, Selma

e and Goldsboro as well as petitioner’s otheFrail passenger

trains through Gréensboro, N. C. As -indicated on — ex-
- ‘hibit, possible points of interchange are:

Qa At! Greensboro: With other passenger trains * of

~~ ~—~—Southern Railway Company , operating between

Washington and Atlanta; Birmingham and New Or-

leans, and between Ceesnenens, .Winston-Salem and
-, .. Asheville. ° ete

a

(2) “At Raleigh: With passenger trains of the Seaboard
Air Line Railroad operating between Richmond, Vir-
ginia and Flerida points, and between Richmond,
Virginia, Atlanta and Birmingham, and’. between
Portsmouth, Virginia and Baleigh.

'. (3) At Selma,.N. C.: With Atlantic Coast Line Railroad
- passenger trains operating between Richmond, Vir-
ginia and Florida points. +‘

(4) At Goldsboro, N. C.: With Ailantic Coast Line Rail.
road trains operating between Rocky Mount, N. C.

passenger trains of the Atlantic ‘Coast Line Rail-

and Florida points. . Pe
; Interchange ‘of passengers setwote Trains N os. 18 and 16.
_ ligible. There is some interchange of passengers at Greens-
boro between petitioner’s other passenger trains and Trains -
Nos. 13 and /16. The New York-Raleigh sleeping car |

» (handled pn Trains Nos.-13 and 16 between Greensboro and °
* Raleigh) is coupled on and off other passenger trains of

ree
Mii s

(fol. 58] and Wilmington, N. C., connecting with other — :
road at Rocky Mount om between -Richmond- rey

and other rail lines at Raleigh, Selma or Goldsboro is neg- -_

mS

ae fore | ee Tee

; petition lasetising bitweah Greensboro wid points a

and. west thereof and Wasliington) at Greensboro. "

' man passengers from or to points south or west of Greens-.

boro detrain at Greensboro and all coach passengers to or

. from other trains detrain and board. Trains Nos. 13 and 16
at Greensboro. ;

6. A description of other common carrier service, in- .
cluding service of the subject carrier, of ¢he same kind .
rendered by the trains involved, between and at the points
described in the petition and other common carrier service
available in the immediate territory follows: .—

Trains Nos. 13 and 16 are the last. of three’ pairs of j pas-
[fol. 59] senger trains formerly operated by petitionen.on

3 the Greensbero-Goldsboro line. Discontinuance of the other .

‘two pairs of trains formerly operating on this line were
‘ authorized by the North Carolina Utilities Commission fol-
lowing application to and formal, hearings. held by that
Gommission.’ Trains Nos. 21 and 22 were discontinued on ~
September 3,.1954, and: Trains Nos. 111 and 112. were dis-
- -gontinued May 2, 1958. . a
- While Trains 13 and 16 are the last trains offering rail
passenger service between certain intermediate points on |
the line, north-south rail passenger service is available by —

other passenger trains at four a served by Trains |

_ Nos. 13 and 16 (Greensboro, Raleigh, Selma and Goldsboro). | )
Attached hereto as Exhibit 8 is a timetable showing the

_ operation by petitioner: of five daily passenger trains: in |

each direction through. Greensboro. All five of these trains
in each direction’ handle coaches between Greensboro and °
‘points south thereof and Washington, D. C: Four of these
five trains in each-direction handle Pullman sleeping’ cars
between such points as-New Orleans-Washington and New
. York; New. Sei srg aoreeenp ca agp

York; Augusta-Columbia-Was on and New York; Ashe-_ . |

ville-Washington-New. York; ‘Winston-Salem-Washington
and New York and between Greensboro-Washington’ and
New York, Trains Nos. 47 and 48 handle through coaches
between New York and New Orleans; Washington and
[fol. 60] New Orleans; Washington-Birmingham and be”
tween New York and Birmingham. . g

PADRE ASEM IES EMPRESS
’ ‘ ~

ee ee

Attached hereto as Exhibit 9 is @ timetable showing the
'_ operation by petitioner of two trains daily in each direction ©. -
between Greensboro, Winston and Asheville. Trains . -
Nos. 15 and 16 handle -Pullman sleeping cars (between '
Greensboro and Asheville) and Train Ng, 21 handles a
Pullman sleeping car (Greensboro- Winston-Salem) in con-
nection with through sleeping car service between New York
‘and other Eastern cities and Greensboro ‘and Winston- ~
‘Salem.. (This sleeping car returns on Train*N6. 16 to
. Greensboro.) All of these trains handle coaches. between

Greensbero and~Asheville and Train No. 22 (Asheville-
Greensboro) handles coaches only: Trains Nos. 2t and 22
also connect with other trains’ of petitioner at Asheville,
- operating between Charleston and Cincinnati. ~
’ Attached he as Exhibit 10, is a tinietable showing
schedules of S&oard Air Line Railroad passenger trains.
through Raleigh. Four of these trains in-each direction |
provide through service between New York, Washington’ .
~ and Florida points.
Attached hereto as Exhibit 11 is a tiinetabie showing the
operation. of Seaboard Air Line trains through Raleigh.
In connection with consolidations at-Hamlet with New York-
Florida trains, three schedules are offered daily in each -
direction between New York, Washington, Richmond, At-
lanta and Birmingham. Trains 33 and 34 handle sleeping
fol. 61] cars and coaches while Trains Nos. 3 and 4 and
rains Nos. 5 and 6 handle coaches only. This-exhibit also - :
shows the schedules of Seaboard Air Line Railroad Trains _
. Nos. 17 and 18, operating between Regleigh gnd Portsmouth,

- Trains Nos. 17 and 18 handle sleeping ca¥#® and coaches in
through service between Jacksonville and Portsmouth and
_ Atlanta and.Portsmouth. we
As is: shown by Exhibit 12 attaghed hereto; the Atlantic
Coast Line Railroad operates five trains daily in each direc-:
tion throngh Selma, N. C. (two in each, direction do not
stop at Selma). Four of these:trains in each direction pro- .
vide thro sleeping car and.coach,service between New
York, Washington and Florida points. Trains N os. 375 and
376 handle coaches:only.
As is shown by Exhibit 13 attached hereto, the Atlantic |
Coast Line Railroad operates one train daily in each direc-

* Oe aS % :

\

Graham, (with one additional schedule daily eastbound) ;.

‘ in each direction, it will be noted, that the operations are

tion between Wilmington, N. C. and Rocky Mount, N. C.,
via Goldsboro, i in connection with through Pullman sleep-
ing car service between Wilmington, Washington and New
York. These trains handle coaches betweeh Wilmington
and Rocky Mount and through coach passengers to and from
points north 6f Rocky Mount board or detrain from con- _
- necting trains of the Atlantic Coast Line at Rocky Mount”
handling through coaches to and from Washingtoft and New
York and between those points and Florida points. f
[fol.62] Exhibit 14 attached hereto shows that the ©
lina Trailways operate 15 bus schedules daily in each direc- .
tion between Greensboro, Durham and Raleigh. Thirteen
of these schedules in each direction (with one. additional
westbound schedule daily) also serve Burlingtén. Eight of
° the fifteen schedules @aily in each direction. also serve —

five of the fifteen daily schedules in each direction serve Gib-
sonville and Elon College; four of the fifteen daily schedules
in each direction also serve Haw River, Mebane, Efland:
and Hillsboro (with one additional schedule eastbound
through those communities). Three of the fifteen daily
schedules in each direction also serve Morrisville and Cary.
A number of additional bus schedules operate daily except
Sundays and holidays’ between Raleigh and Durham. It
will be noted that of the fifteen daily schedules in each direc-
tion between Greensboro and Raleigh, -ten’ eastbound and,
-nine westbound schedules, operate in express service be- «
tween such points as Norfolk-Birmingham and‘ Dallas,
Tex.; Norfolk-Charlotte; Norfolk-Memphis; Norfolk-Den-
ver; Raleigh-Oklahoma City; Beaufort-Asheville; Norfolk-
Atlanta; Norfolk- Montgranery Dslias; Haleigh-Asheville-.
New York and Raleigh-Atlanta. — Ne *,

' Exhibit 15 attached hereto shows: the Atlantic Greyhound
. Lines operating. seven schedulés daily in each direction be--
” tween. Raleigh and Goldsboro. Six of these seven schedules
- [fol. 63] in each direction serve Clayton, Selma, Pine Level
_and Princeton as intermediate points. Three of the seven
schedules’ daily. in. each direction serve the intermediate
point of Wilsons Mills. Of these seven daily schedules buses

not limited to competition with Trains Nos. 13 and 16 be- .

3
Hh se

. . bs 61
tween Raleigh and Goldsboro and: the intermediate points.
Four south (eastbound). buses operate in through service
between such points as’Raleigh-Savannah ; Cincinnati-Beav- .
fort; Winston-Salem-Wilmington, N. C.. and Detroit to
=Saturdays, in each direction ‘between Raleigh-Dur-
ham, Pittsburgh and Detroit. Two-fligkts daily to Columbia, -
S. C., and three flights daily in the reverse direction. Four
‘flights daily Raleigh-Durham to Atlanta and five returning
daily. Eastern Air Lines also. operates. from Raleigh-Dur-
ham Airport one flight daily, except Saturdays, to Chat- .
tanooga, Nashville and Louisville; with one flight returning
‘from those cities to Raleigh-Durham daily. Be
As is shown by Exhibit 20, Capital Airlines offers one.
flight daily in each direction between New York, Raleigh-
Durham, Atlanta and New Orleans. ©
_ Capital Airlines also offers one flight daily, except Satur-
days, hetween Washington, D.C., Norfolk, Ralei h- Durham,
High Point and Knoxville, with on flight from «4
4% the reverse direction daily. At Knoxville con- -
y be made with flights to and from Huntsville,

nections
Ala..

°

a “ By righ NE NN LF, AEE
ee ent « Sant
© .
: P . . e
‘ ° ; . *
: . : ,

!

oo 134.1 tons in 1949 to 361.2 tons in 1959, an increase.
- of 169, 4 percent.
Attached hereto as Exhibit 23.18 a map showing highway
distances from various communities in the general area |
served by Trains Nos. 13 and 16 to the Raleigh-Durham -
Airport. It will be noted that the City of Durham is located
_- 12.5 miles from the airport and that the City of Ralbigh
is located 13.5: miles from the airport, both cities being
‘accessible to the airport over U. 8. Highway No. 70, a @
_ modern four-lane highway. The Raleigh-Durham Airport.
is also available to communities within a wide area, includ- = __.
’ ing a number served by Trains Nos. 13 and 16, other than
Durham anq Raleigh. The City of Chapel Hill is located
16.5 miles from Raleigh-Durham Airport via North Caro-
' lina State Highway No. 64 (12.5 miles) and a paved, access

road (4.0) between Nelson and the airport. The Research +
[fol. 70] Triangle Park is-located approximately six.miles .
from the airport. Morrisville, a station served by Trains
. 13 and 16, is located 45 miles from the Raleigh-Durham
Airport.
Another important einieuiel airport serving thé gen-
. eral area served by Trains Nos. 13 and 16 is the Greensboro-
' High Point Airport which is’ located approximately nine Ea
: miles west of Greensboro. This airport is also available to
many communities within a wide area, including a number
of communities served by Trains Nos. 13 and 16.
The REA Express Agency, Inc., which utilizes Trains
‘Nos. 13 and 16 for the transportation of express traffic, also
utilizes highway trucks for the transportation of express
to and from a number of communities served by Trains
Nos. 13 and 16.. Express traffic is also’ handled by other
passenger trains at Greensboro, Raleigh, Selma and Golds-
‘boro:
The various bus: lines operating it the area served by
Trains Nos. 13 and 16, besides handling passengers and
baggage, also offer a limited express serv ice.

The .air lines serving the area served by Trains Was
13’and 16 also, in addition td handling passengers and
(fol. 71) baggage, transport air express and air cargo.
As is shown by Exhibit 2 attached hereto, the line of
Southern Railway Company between Greensboro and,Golds-

~

«" :
4 G

hore over whieh: Drains Ness 13 eaa. 16 eperete, is closely.

paralleled by. U. 8. Highway 70. Other U. S..and North

_

Carolina highways, paraliel and intersect the line. of rail.
read at a number of points. Practically all of the com.

manitien served by Trains Nos. 13 and 16 are located ‘on |

through highways and the remainder have easy access to
through highways from short distances over paved, -all-
weather roads, As indicated by this Exhibit 2, Federal
Interstate Highway No. 85 follows the route of U. S. High-
way 70. between Greensboro and a point south of the village
. of Efland and from that point ‘to a point just west of Dur-
ham will be newly located. When completed, Federal Inter-
state Highway°No, 85. is expected to shorten the highway

: — distance between Durham and. Greensboro by several miles

lows than the present 56-mile distance. |
A comparison of the rail distances between petitioner's

lines and those of rail competitors from certain stations

along the route of Trains Nos. 13:and 16 and Washington,

D.C. and points nort thereof, is most revealing: the rail
mileage via “Southern ilway’ Company, Goldsboro to —

Washington, D.C. is 413 ‘miles, whereas the distance pe-
‘ tween those points via Atlantic Coast Line

in 775 miles ; the rail distance between Selma, N. Cc. and
-’ Washington via Southern Railway Co. is 393,1 miles, where-
"asx the distance between those points via ACL-RF&P is
270.8 miles; the rail distance via Southern Railway Co.,

| fol, 72] Raieigh to Washington, D. C.,.is 365.0 miles where-

ws the rail distance via essoemiag Air Line Railroad-RF&P
ix 2714 miles, ;

7% The trattic transported on ih e trains involved icin
_ 1939 and 1960 is shown in an orMand-off statement mgrked
see 4 and pertinent statistics relating to passenger
ad these trains are presented in Exhibit 25 fbr the same
Nata wars, Exhibit 26 ‘offers an historical accognt of ‘pas-
senget statistics om these traims fromi 1448 gh 1960.
“At the time these exhibits were prepared, more. recent ante
were net available
Exhitit 4. consisting of four sheets, is a series of’ aate-
ee showing the pumber, of reverue passengers getting 5
ant af Trains is 6 at each of the stations for th-

=)

a

EL AAEM E I Be

eee 61 °

. cabinitel? years1959 and oo? This information 1 waa ob-
__ tained from the tickets lifted by the conductors and turned
in to the Auditor of Passenger Accounts. The figures shown

for Greensboro include passengers originating or continu. 2

ing trips beyond Greénsboro via Southern Railway, as well. ~

as those originating and terminating at Greeisboro. It will
be noted from the exhibit that most of.the use of the trains
was from the stations of Golisboro, Raleigh, Durhain and

Burlington going to Greensboro and beyon In the reverse -

direction, it was fice Sopeel Greensboro and Greensboro

‘to the same places.

_ Exhibit 25, consisting Sf two sheets, an for the years
1959 and 1960, with respect to Trains 13 and 16, the number

[fol. 73] of trips. operated, trip mileage, total train miles

‘operated, total number of revenue passengers carried, total

revenue passenger miles and total passenger revenue.. It

may be noted that for both trains for the year 1960, the

_. average number of passengers per trip was 20.2; average

miles per passenger, 46.8; average revenue per passenger,

expressed in cents, 143. 036; average passenger revenue per-— .

train mile, also expressed in cents, 22.382; and the average, =

passenger miles per train mile, 7.33. The last figure, 7.33,

was the average number of passengers for the entire trip

at a time when the train crew consisted of six members
and the Pullman crew of two for part of the distance.

' Exhibit 26 is a statement..of the traffic: statisties for

Trains 13 and 16 for the years 1948 through 1960. It shows —

the number of trips, the number of revenue passengers, the .

passenger revenue, the average number, of revenue passen-

gers per trip and the average passenger revenue per trip. —

_ It may be noted that the number of passengers decreased in -
this-period from 56,739 to 14,776, or 73.96 percent. The

passenger. revenue decreased from $60, to $21,135, or ©

- 65.09 percent. The average number of passengers per trip

decreased from 77.51 to 20.19, or 73.95 percent. The aver-
’ age E appiem ok revenue per. trip decreased from $82. 70 to
= 37, 65.09 percent. _ °

. The financial results of ioalina ¢ the trains inv olved
Per 3 1959-1960, segregated by trains, are shown on Ex-
(fol. 74] hiibits 27. and 28. Exhibit 29 shows the feeder valué
‘of the trains sought to be discontinued to the Southern -

sy a

s

v9

edie System for the same years. ‘Later: figures were not
avaiiable at the time of preparing this petition. oe

‘Exhibit 27 is the operating results for Trains 13 and 16 |
for the.year 1959. This is a single sheet exhibit which has’
been prepared in the same magner, explained below, as the
following exhibit marked “28”, except that the showings on.
27. are in totat rather than by individual months and the~
detailed, schedules, attached to No. 28, have “not, been ap- -
pended to Exhabit 27. For the year 1959, the expenses of
operating Trains 13 and 16 exceeded thy revenue in the
amount of. $122,837. .

Exhibit 28, consisting of 10 schedules, covers the. oper.”
ations of Trairis 13 and 16 for the year 1960. The revenues —
and expenses are computed in accordance with the require- _
ments of the National ‘Assaciation-of Railroad and Utilities
Commissioners’ formula. This formula was recommended
by the NARUC September .23, 1953, and\has been used by.
our company and other carriers in passenger train hear. -
“ings before the various state regulatory bodies. For the
year 1960, the expenses exceeded the revenues in the amount .
.of $117,641 or it cost the Company $3.22 to earn a revenue
__ dollar.’ The items of revenues and expenses shown on ‘Ex.
~ hibit 8 are explained as follows :

[fol. 75) Operating Revenues aos
(1) A/ 102—Passenger_ eel

Tickets lifted by conductor are sounchied into IBM cards :.
showing station to station, class ‘of passage and other in-

ee fermation. These cards are processed through the com-

pute. which is programmed to compute the passenger rev-
enue based on authorized rate for class of passage. .

(2) Asc 107—Expifess . eee a

Revenue per @urfoot mile for the company was Sadianek
by dividing total revenue received from the REA by the:
total carfoot miles. The resulting revenue per carfoot mile -

- was aga to the carfoot miles — to Trains 13°

and 16

) r : 3 : » J or

oe.
ise 69

——

* (3) A/C 108—Miscellaneous
. Represents revenues received for the handling of news- ©
papers and movement of terminal cases.

Sesenets ;
(1) A/C $92-401—Wages'o of train and engine crews °

From time returns of the members of the crews operating.
these trains plus, vacation allowances. |

: (2), AC 632—Payroll taxes

Payments made to the railroad retirement boat for
- retirement and unemployment benefits for the members of
the crews.

(3) ‘A/C 394—Train Fuel | cae ff 8

Actual consumption of*fuel by these trains was deter-
mined by a fuel test and this ——- apple’ to the
company. average cost ‘per. gallon. ,

(4) A/C 420—Injuries to Persons

Actual paythents made to persons injured in the ® opera
tion of these trains. - | .

[fol. 76], are :

(5) A/C s17—Damaget to Live Stock on ‘Right-of-Way

Actual payments ‘made- for damage « caused by operating
Traine, 13 and 16.

(6 A/C 403—Pullman panier Net Loss»

| This represents the excess of expenses over revenues for
- ..this line as billed by the Pullman Company. The line op- -
: erates from. Washington, D. C. to Raleigh, N. C., and the
figure shown is the proportion applicable to. Trains 13 and
16 between Greensboro and Goldsboro.

“) Locomotive Expensés— a
‘A/C 400—Engine House -

A/C 398—Lubricants :

A/C 399—Other Supplies | Wea ee
A/C311—Repairs

eS ee
The average cost per.diesel unit milé for the Company

was determined for each of these items and these unit eos

applied: ‘to the diegel unit miles sateen in Trains 2 fid 16.

(8) Passenger Car Sgemee—

A/C 402—CHLW & Icing BS a ‘ °
A/C 402--Lubricants ~ : | ae AN thee
A/C 402—Other Expenses -: .“ ~ °

A/C 402—Air Conditioning . , ag
A/C:317—Repairs Rae

The average cost per passenger car tills le #8 the company
was determined for each’ of these items and this cost ap-
plied to ‘fhe car miles nf&ide by trains 13 and 16. In our
accounting precedure Acct. 402—“Train Supplies & Ex-
penses” is broken down between CHLW cars, lubricants,
other expenses and air conditioning.

. (9) Sonat Facility Expenses |

This represents ‘the’ savings that wea have been ‘ile :
had Trains 13 and 16 not operated during this period. Total
expenses at Goldsboro Union Station apportioned to the
user roads on the basis of the number of cars in and out of
the station for each road.”

[fol. 77] ene oe | ta a)
» (10) Rental of Equipment ‘4

* soem ey

‘Payment made to foreign lines for use of passenger equip.”
ment; no — made to Southern System lines are
included. ns :
“Exhibit 29 is a shitensinat for the years 1959 and 1960
_ of the revenue accruing to the Southern Railway System
for tie off-line portion of the trips made by ‘passengers —
‘using Trains 13 and 16. These revenues have been reduced ~
by the amount of 50 percent, representing an estimate of
the cost of: producing the. revenue accepted by this Commis-
sion in abandonment:and discontinuance casts. In the aad

\s *

:
:
: a,

. Sy . . t

gut instance, the usual expenses sof producing a twanaport-"
ing passengers could be augmented by the Pullman net loss
on =e line between Greensboro and Washingtoti ($14, 794
in 1960) which must be paid by Southern Railway since in
’ the event of discontinuance of Trains 13 and 16, the. Pull-
man car would be removed over the entire distance between
Washington and Raleigh, other Pullman service being ade-
quate for the main line. trains between Greensboro and
Washington. 3 IBS

9. Exhibit 30 is the balance sheet of ‘the Soutberst Rail-
way Company as of December 31, 1960, and is taken from the —
-Company’s Annual Report -to the Interstate Commerce
Commission. — ba
Exhibit 31 is the Southern Railway Company income
account-for the years 1959 and 1960 as reported to the
[fol. 78] I.C.C. A statement for any portion of the current
year was not ‘available at. the time of preparing this
petition.

Bo Attached hereto aud marked ‘Exhibit 2 is a map
forth in red colaring the line of railroad over which
Traine Nos. 13. and 16.operate between Greensboro and
Goldsboro, inclusive, which shows the geographic situation
of the line. All stations served by Trains Nos. 13 and 16
are shown on this map.
ye is
helieitien: for discontinuance of Trains N Os. 13 and 16
was filed with the North Carolina Utilities Gommission on
, July'8, 1959. Following a hearing on October 6-9, 1959, that-
‘ Commission issued its order dated January 20, 1960, which,
‘with one dissenting ppinion, denied the application. Sub- :
sequently, the.rder of the Commission was upheld in the
$ Superior Court of Wake. County and the siete Court of
North Carolina. —~ .
Filed only with the original of this petition to ‘the-Inter-
state Commerce Cémmission is a copy of the record made
before the North Carolina Utilities Commission, including “
copies of the application to the North Carolina Utilities
[fol. 79] Commission, transcript of oral hearing and deci-
sioft and orders. - 4
: = ; 5 oO

¢

9%

orders of the Superior Court of Wake County and of th

‘pany to permanently discontinue the operation of its p
Goldsboro, North Carolina. |

‘April, 1961.

4 a

“e

For the convenience of this Commission there is

filed only with the. original of this petition copies of t

North Carolina Supreme Court.

‘Wherefore, petitioner respectfully prays. that ‘this “0
mission issue an order under Section 13a(2) of the Inte
state Commerce Act authorizing Southern Railway Co:

senger Trains Nos, 13 and 6 between Greensboro

- Southern Railway Company, By: D. W. Bro osnat
P.O. Box 1808, ‘Washington 13, D.C. :

[fol. 80] et “Certificate
D. W. Brosnan hereby certifies that he is ninniies View

_* President of Southern Railway Company, Petitioner herein;

that he has been authorized by proper corporate action on
the part of .such Petitioner to execute’ and file with the
Interstate Commerce Commission the foregoing Petition;
that he has-carefully examined all of the statements ~re-
ferred to in said Petition and the exhibits attached thereto
and made a part thereof; that he has knowledge of the

_ matters set forth therein; and that all such statements made

and matters set forth therein are true and correct to the
best of his know ledge, information and belief. eon

Sate : D. W. Brosnan |
Datedthis day of April, 1961. | los

- Daily Sea PAS yee eee ze ' Zz
= .., Wiese Xe SS Se ee * ae
610 . “ .0 ‘Ly.\Greensboro....119,574 Ars 74450
f 6:22 8.0 .° McLeansville... OO# £.7225
6:30 7 3 - £9216 |
6234 16.7 * £7310.”
: 6350 21.4 : 7:02
On owe > £ 62h2
6:57 25.8 oo -Haw Ri: TMecece v. $e 4 6:38
eee iS oe 31.7 — Mebane... seeee 2,364 6332
£ 7:20 - | 37.0. . > Bfland..\c... 5008 =f 632
7325 40.9 . = Hillsboro races 1,349 e323
: 7335 L6.4 e ' “Glenn.s.scede. ne S.* f 6: 3
- “7a55. i. 55.0 e Ar. Durham. eeeceseds 78,302 ae Lv. 5P55 ;
-8M10 55.0. Lv. Durham. -ececece . . =” Bie : 5M55
2 Bese: :. 68.7. Morrisville... \ 222 . f 5:19 -
aay 8:39. i 72.8 wt Caryceccccccces 3,356 ae 531,
8K55 : 81.1 . Be Raleigh. .cccce 93.3931 . ‘Le , 5P00 Seite
‘ 9M10 81.1: Lv. Raleigh..cccce \ Ar. ‘+ 4M30 piss ae
9:18 86.9 ° *QOPRETeicccchs 3,40 4:20 ¥
9330 96.1 Clayton.ecsess 3,302. > 4307
£ 9339 + 103.7: -. -Wileons Mille. 260 © £ 3259
10A00° 109.2 Ar. Selma eeccecece Fd» 102: \ Lv. 3P50
pon ey 10M00 ” 109.2 Lv. SOAMAsscoceces : Ar. : 3M50°
f'10:08 §=§ 111.9 Pine Level... 833°. “£.3230.
ee 10:18 cae 117.7 ras te Princetoneececee: 948 ee Ne 3323
f 10:25 123°.7 rasan ROSS ec ccsceecee: neSo* ie) ‘F. 3215
eas “1 5° . 129.1 Ar. Goldsboro...,. 28, 873 Lv. = >"
f - Flag stop. eet
- NeBSer Nee ps paPation shown...

Southern Railway System Passenger Train: Schedules,
folder, dated October 30, 1960. Population figures taken.
from Final 1960 Census, U.S.. Bureau of the Census except that \
those marked with an asterisk * were obtained from Rand McNally

_ Commercial Atlas & Marketing Guide, 9lst. Edition, 1960. |

NOILILEY OL [ LIalHxG

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[fol. 82]

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: ae

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NORTH CAROLIN
OFFICIAL HIGHWAY. MAP. if
ee py re ee

~ LEGEND

Paved MOADS es

A., WEATHER n0A05--commmmmmme | PevED-SeCinOARY ROADS mmm a Em

_ OMMARY OR. MITERSTATE @UADS UMOER CONSTAUCTION. = 5“naxa== est tne}
MLEAGE CETWEEN smCTIONS eqfmmemiengs COMERCIAL ee Ys T°

POPULATION OF CITIES amo Toes ~~ *
Ge ow 1ap00 |@ 2000 10 spon

P rf
J
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* *

CAROLINA...» -

¢,
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fobs FORT BRAGG ,
MLITARY RESERVATION ~~ SEM

r :
10 meet Stedmen

Route of Trains Nos. 13 and 16
ee oe ems. — 28

8
>

' Exuterr 270 Peritios

; iy
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: i "3: 6
; : \ .
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j (fol. 83] :
/ Exuisit 3 to PetiTion
— am rs | a . r: | . Z t .
625 in efatg ONE WONG IE, WIEN Cpt ‘Passenger Service Operations is F f
Passenger he _ Equipment . = Total Bee eee CE ered | “
‘Service §. -- Passenger - . ° and Joint . —-—« Operating Net Railway Passenger - Average . Average Average Cost
Operating . Operating ~ Facility Expenses,Taxes Operating = Train Revenue Per Cost Per Per $1.00 of
Revenues _Expenses - Taxes Rents and Rents Income -. Miles #§ Train Mile in Mile Revenue 3
eppiyeseaicstee i 5 pe ame Sera " * “Galeseconee Col 2-Col6 _ Col.2eCol.6 Col.6sCol.8 Col.6eCo1.2
Sa ; de a wy . ane ; ‘¢Col.5 - e a eek, . . °
eee ee a, a ees | a Mecca ORIG ee | ara dee +
|" $35,003,788 $42,282,209 - $3,659;878 $ 274,177. $46,226,264 reine: 10,619,081 Liss. 30 $4.35 — $an3e
-. 4 32,337,779 . +52 5490615 . 3,803,482 | 31,145 - 46 1325, 282 - D 13,937 .; 10,229,625 * 3.17 4,53 1.43
went 30,276,601 “Wa ,127,072 - 1,785,687: ; 212,710 43,125,469 D 12; , 868 9,833,963 3.08 4.39 1. ,
5 36 , 454,296 ; 46,164 ,166 ——3 , 404 , 966° ee 1,032,435 3 50,601, 567: D 14,1 7,271 10,065,700 3.62 5«03 ‘1.39
- 36,568,817 46,301,300 3,629,465, 4,556- 49,935, 322 , D «13,366,504 9,612,451 = 3..80 5419 =
34,037,739 45,635,504 3,616,068 Cr. 497,175, . 48,75%,397°" D 14,716,658 8,795,542 3.87 - "5454 1.43
32,372,126 2,429,763 3,550,075 Cr. 262,712 45,717,126 D 13,345,000 ~- 8,359,786 3.87 5.47 Leki
ald aa) 41,960,451 3,516,310 Ue 3s »299 D 15,264,572 7,808,349 3.89 58h "1.50
_ /29,437,8h2 42,662,881 3,659,369 - ,489 ‘46,616,739 D 17,178,897 . 7,411,85m- 3.97 6.29 * 1.58
28,323,631 . 43,299,978 3,687,569. aT 33: -47,257,680 D 8,934,049 7,033,036 4.03 2 ': Gas 2-67.
26,5T%,695 41,214,889 3,529,697 Cr. 674,858. kk,069,728 9D 17,495,033 6,637,956 4.00 See
/.26,385,737 38,805,530 3,667,408 Cr. 498,852 41,974,085 _D 15,588,349 6,304,240... 13 6.56 /. 1.59
26,366,269 37,898,275 3,697F020 555,228 | k1,036,067 D 14,669,798 6,190,020. 26 6.63 1.56.
ie es 2 ; 3 : ‘, 23 “Y, ° . Fi 6
x Naix’ Pay of $2,859,874 - - Applicable to aaa 1948 anc 1g9k9 which was audited in 1950 has been ‘ietnnes in appropriate years, -
_ wotes deficit. Wis AMC ye A ee ts feat cits . La
; / ee 3 ; See : tN “ ‘ fs
* Annu Heports to thé 00 and Company Secords. Mo A wots a , ae :
r pales, ay, a Rea eae ier (cs
Pe BES oo PE a © | -
5 ae y nf : ; | ip 5
ie | rf Ae rate ee f LZ
vy, . ; yas
fonts / / A]
Loe av Ae

N03. ‘13 AND 16 COMPARED
THE STATE OF ‘NORTH CAROLINA

SND THE UNITED Staves 5 Se
? ____ POPULATION °
Os } Percent
” 5 ea a2 : Increase
: ee Mee ee 3 or .
r : = ous Decrease
~County_ pom? | Baa Mm ne... 1950-}
7 : 26,520 378.6 =~——:191,057 29.0
- Alamance ~. = 85,674 197.4 71,220 | 20.3 -
Die — age 30769 SR
| 111,995, 37be5 ee are
rate Estimated .° 3
oo Registered 3 | ee
>> : =e 3 os of ~—
at on~ utomo es. er Kegistere ;
“County _ a sate (% “| Pass. Cente oo
Guilford — 246,520 9,088 - ee arene
“Alamance — oo 556th 32,33h 2.6
‘Orange = =—Ss 2,970 11,083 369
Durham = si, 995 379122 | 3.0—
“Wake © =. 169, 082 63,177 2.9
. Johnston 63,936" . 27,035 308
Mayne 82,059 es 21,685 \ 3.8
Sotale = BOERS 215K ie ee
pa §o2,2 | &
Average (Seven Counties | ~ 209 - hii.
-. State of —— 5 : : ‘
North Carolina: 4, 556 155. 1,380,461 343 |
3 4 w
—_ Z e yy
Source: : feu ; Be Zr ae “
De at of Motor Vehic ,» State Jee 5
North Carolina and U. 8. Bureau of the ee, i?
Sapee ween of COMET CR } as Nee
J fi
S o Go
: 3

ge ee RATIO OF PERSONS. PER REGTSTERED |

- Estamargp RATIO OF PERSONS PER REGISTERED
|

ASSENGER AUTOMOBILE IN THE PRINCIPAL CITIES

AND TOWNS. OF THE SEVERAL COUNTIES TRAVERSED Qa
BY TRAINS NOS. 13 AND 16
Se | 3 Estimated ae :
3 ~ Registered Estimated —
City * Passenger Ratio of Persons
of tig Automobiles — Per Registered |
Town on »___ (1960) -Pass- Automobile |
Greensboro. 119,574 52,390 Si et Ge *
i "33,199 19,355 pee. §
Chapel) Hill* 12,573 6,937 1.8
D ores 4
Durham vo ee - 355962 201
Raleigh © 93,931" 43 ,39b 21
Selma. 3am sm 2,498 42
Goldsboro. _ 26,873... 1k, 766 vdeo ae
Totals - 3

Sedigeeocts NET as x25
ep Saicasae es sar ee aR
CHERA:

Pe ae Railway a Ey ee Sere ij i
Route of frains Nos. 13 & 16.0. —_
Seaboard Air Line Railroad..%.. |

Atlantic — Lin Railroad... sane

AMZ ING 4,

WL

f Uf

iMETABLE GF OTHER SUU*HERN RAILWAY CO.
4 SUKVING GREENS POW ,N.C.

WASHINGTON-CHARLOTTE-ATLANTA __

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: i an T Sta. {Per sree Char ES

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BLEOF O°HEK SOUTHEKN RAILW
SEK TKAINS SERVING. GREENS

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; ‘ Southern bsiiuen ayssee Passencer
"rain Schedules, Foider, dated Oct. 30,1960

: . . i
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° = . °

Sapea ate eee

pete ret
eatedales chown in 1) ”

[06 [03]

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sits Seetiame tet” mm i

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tr ? spvanes semmmae

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Source:

_ Sout. he sn ‘Railway System Passenger.
rain Schedul piesizge dated October 30, 1960

~L -
a

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Exasit 1

To PETITION

mT: s se ~o —i- ike wh TE en ee = *. bY =
sl iad R (paameny sites woven) Somers weet MVLS BIATIS ae
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= || SqQeeeane nese" * ~ «—-. AS OBLIW UBATS.. neon We ee eee 3H... x
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THAINS SEhVING KALEIGH, N.C.

828 8

WIMSTABLE OF SSABOAKD Aik LINE iALLIOAU: PASUANGHR ~

8 goerens ju a ae oer sane 2euse Rk,
with See ah "WO9 MAYS SL ig ig? ou “aes gil ih i.
| eeereGEe Ee eS 2 w (panseney sve0g ones) eeeep ay J OORL3WN UBATWS 2
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pages 3-6, 30

en page 14;,- |
i

— Pages 13-14)

~

Light Face Figures A.M. :

’ *
Se ° Peg. rich '; ; De 2 s . we i K, $ \ 3 ve oe . ; ?
“ ‘rage .; we BR i " “4 . 5 : | s 2 ah = s
Phe ‘ : e, rat gi e : ‘ t 7 ‘ aay OEY, 6 ee?
* owt

Re Mee: Me i on EMER ie Vee
|e ass | ao. TABLE 2 ; Ee Soames _] _-_-— CHARACTERG—TABLES 1 and 2 .- ©
ee a 7 te at} See ee So ene | RS we | 6 | 2 | a le Sops-t recaive and dacharge pascangar tor
ee Li fw fe Te tS) eee: | wee] izes] 10 So} * Boe ean at Sacre passengers for
| re) S| | Ree =|=|=|=] - sepsoee
B —— —_— —" . “ Patrick! Fea 2H r) — —_— — ERS : to
2 ss Be — to en st - Puke etd et nkeicuevveeunes ota “eee a ah
£3 i038 ~~ | 28) 33 ‘Teanaten s sles Eclat — To
7 | > SP RTs ies ee mt
i/ | Ba) AP HR ste 18) EB) BBY 3B) Te
=i iF p-— Live SMESCE RO Saan ARR aa . — =
: Hl — | int : eae & HI = } eee
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ati — Ale yi sor Fah
a fl — | dan $ gece... ooo”! Abe etcs: fs 1 cies | —
Pagt BOA EE. 410.8 E ‘deere tase faves" lr Apts:
AM S| |S Becca SS
: 1198 | aia ecco = ets] Beg, end Foe:
)-— | — |“ ie ig pane ees ee
Bt j Suet Geared Baws a Bae Psa an hays se recteassbevers “v —_ |; —_— | — | —
4 om) — | — | = [ei Pe] 1S iS :
130 a pos oe po B ‘ Seger Senden rece senate Yo t1'n Bye — pote — salons neseed Wed
a ay oes oa " ‘Savisinan Riven | Be BG r Stops to receive and di ‘pamengere
aE —" — — aai.4 « Sthwei Rbsuuasraphevss Soanenes . at — |= | =f — |], ‘orvand: rom sackaorvile, Talanecoe nd
ee Locate ban 198 he esse Pa ED ome Leo, he Ghai te eitaees from north
18 8) 88) i 3 t SAVANNA us| &B) it 13] HR] oh tian, end receive tor Cotumbsa and
Pa baer At ES | |e Become | | |] | tant Renna hi edtetette "na
Te — | — | — | 553] “done... gf Na Goaaety poarye Beery dag
—— | — | — | — | 884)" Were ee PO Ee) pe jana ‘ Stops to discharge passengers front Savannah
t _ _ ~~ $52 Rs ownsend. .. : in:j — sein ong eS Seyond, to receive for Ocala, Ta}ahasses
ti ory Cash. ewes sa s etx Aurawama Riven See aoe . cana tres Petere- |
fg SS ec agree) = | ae) ee ee
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(Contioued on page 29) °

ce:

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s effective

. Seaboard Air Line: Ratlroad ™imetable Folder

December.17, 1960..

J

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9%

« Py Bee
ni it ¢ reais ss . dt rf! —

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. - ° =~ ® \ ae
& | Le Now b aciiiha tenons teeta | Bee
1 | Le Phledeighte (Penne. $10? 30S) “Aro $0645...
"008 |4Lw Wiheagton ... oes. AP O44 4......2
& .—t Le Settimere Weare. Sto.) Mai hoes “ Ae ; 743 Bah
| 48) @ Dt Re
% _ | Ar Qichmeond, Ve......... we # \ , TB eee
: Mi | Lv Richmond, Ve..........°.... ACL 330'}..-. 40s.
Pe Ms pms ong } ie Bs ipe en ee et * tim Oe Biecaaces
‘| 2030) 409 | Lv Gepore, Vo./............... “ae Fea aS
ay ros Me | Ly Weldon, NCO ioe. " Dre 7 spate "
. 2 ae Rocky Mevnt........., “ “be 1289 }....... - ‘
: : ial ‘345. “ Ly Mount... ‘ Ae is as eR
Roger oT 3) «sh baaameagaes © tel tte fccccce::
ae aul ao te cy seen ica : i
44? cre o @ tv » Fe pec ewevne ‘
SE NE _ 44! a. - sill SE ; “
sy | ws = tel tee@e}........ e °
gets SRR ats i ae su) ms , 6 Ae] MME : ee Mest
Re es eee oe se | se | by “ uv] Sate... ss :
x py ™ 605| S23 | bw Colyer “ *ty iM. basses
. ees at . 60} Se |! “ tel 9.ael. :
Se F3si 1 = oy ead ©. te 6.07
= kes 790} 9S itv at Oe eeS “ tv i 7.86)..... e oa
, ee p99). 90 be as eal ee =
Pon oa: nee ae Opa: * ty lg vse! ........ 7 _—
ser biny: REPERENCE NOTES S
@ Transler between Petersburg L. Pessenger Station) ond Petersburg (Appomettos Street Setion) 5 ee > :
; mode by texl upon payment of taxi fore. . : :
2 New Wikaington sleeper operotes in PRE troin 101, RFLP train 91 ond ACL train 91 New York '
: ee eee coma now Tot Sto aoe €.20 PA For schacsda. see thle D on sage 9.
BR Asiatic Greyhound bus leaves Wilmington bus terminal 12°30 PM, arriving Myrtle Reach 2:55 PM.
BB Asthatic "Greyhound bus leaves Myrtle Beach 2.22 PM, arriving Wilmington bus te-minal 6.35 PM : "
E
-
} . —
. _ r
——s
3 a
; . ‘ : e ; a
: ues : ee a ° ; eye
_ Source: ee =
os ‘ . ° hee : ? . - ba
Bs 4
Atlantic Coast, Line Kailroad Timetable Folder; =
dated December 15, 1960. ~ e | 3 fe
e | e . -t :
2 :
‘ se = . | : ;
ad 7 4 7. ; r 3 ry a o a§
é : ? :
2 8 s > ¢
ail * s ss “4 oe
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é tee. : 3) Feo 4
. ~ >
. | ‘- 2 4 ,
7 e °
os 2 PS Sees

‘ See sasty

[fol 99) ss o
e. _ Expwit 14 10 Petition -

sere an — is won :

. ¢) eowy sen (10H) SIMBA Avpang .
> sd Testy OF paw (wy OO S) PPA TEABN WIA
Po 2” : " enaten Seauasols Goneees %

WNT

Ag se

RATIO

BS

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- é
t
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: e

2,
a 2

es]! i! bee iat | ‘J
. HHH ur sth i

iat Nie ry

aes ise of
3 i

Source:

i]
/ |
ead |

Russell's Officfal. National Motor Coach Guide, January Sls

9

Sees _ (fol. 100]

3 oy —ve
t ' ‘, ¢
- - = :
i HE ;
\ i : $333E
=) " ; = =x
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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386411_0005%3A1. Public record. Not legal advice.
