Construction of the line was commenced in 1906 and completed in 1913. By the middle of 1907 the track was laid from Haylow to a point about 0.5 mile north of Statenville, where the lumber company erected a large sawmill, and trains were then put in operation between Haylow and the sawmill. From then until August, 1910, the railroad was operated by the lumber company, but not as a common carrier. The line was constructed mainly for the purpose of affording means of transportation for lumber to be manufactured from a large body of timber east of the Alapaha River in Echols County. It was hoped that the territory to be served would develop and in course of time would furnish enough traffic to support the line. In August, 1910, the Railroad Commission of Georgia ordered that the line be operated as a common carrier. The applicant thereupon took over the line and has since operated it as a common carrier.

There are no cities or incorporated towns or villages on the line. Haylow has a population of about 50 and Statenville about 100. The population of the tributary area does not exceed 700. Haylow is at the junction of the Atlantic Coast Line and the Georgia Southern & Florida. Statenville is 6 miles from Tarver, a station on the Atlantic Coast Line, and 8 miles from Mayday on the Georgia Southern & Florida.

The timber owned by the lumber company has been cut and manufactured and there is now little traffic on the line. The operation of the lumber company's sawmill was discontinued in 1920 and since then the revenue derived from freight and passenger traffic combined has not been sufficient to pay expenses of operation. The applicant represents that prior to 1913 it handled some passenger traffic, but that the use of automobiles in this section has increased to such an extent that passenger traffic has dwindled to practically nothing. The record indicates that further operation of the line is not justified.

Upon the facts presented we find that the present and future public convenience and necessity permit the abandonment by the applicant, as to interstate and foreign commerce, of its line of railroad described in the application. Our certificate herein will provide that it shall take effect and be in force from and after 30 days from the date of its issue. Suitable provision will be made therein for the revocation of concurrences and powers of attorney and for the cancellation of tariffs and fares. An appropriate certificate will be issued.

COMMISSIONER MEYER did not participate in the disposition of this

case.

CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY

Issued August 18, 1924

Investigation of the matters and things involved in this proceeding having been had, and said division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which said report is hereby referred to and made a part hereof:

It is hereby certified, That the present and future public convenience and necessity permit the abandonment by the Statenville Railway Company, as to interstate and foreign commerce, of its line of railroad described in the application and report aforesaid.

It is ordered, That the said Statenville Railway Company, when filing schedules canceling tariffs applicable on said line of railroad, shall in such schedules refer to this certificate by title, date, and docket number.

It is further ordered, That this certificate shall take effect and be in force from and after 30 days from the date of its issue. Concurrences and powers of attorney may be revoked upon not less than 20 days' notice to the commission, and tariffs and fares may be canceled upon notice to the commission and to the general public by not less than 10 days' filing and posting in the manner prescribed in section 6 of the interstate commerce act.

90 I. C. C.

FINANCE DOCKET No. 4235

GREAT NORTHERN RAILWAY EQUIPMENT TRUST, SERIES C

Submitted August 6, 1924. Decided August 18, 1924

Authority granted to assume obligation and liability in respect of not exceeding $4,500,000 of equipment-trust certificates, series C, to be issued by the First National Bank of the City of New York under an equipment-trust agreement to be dated September 1, 1924; said certificates to be sold at not less than 96 per cent of par and accrued dividends in connection with the procurement of certain equipment.

M. L. Countryman for applicant.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MEYER, AITCHISON, AND POTTER BY DIVISION 4:

The Great Northern Railway Company, a common carrier by railroad engaged in interstate commerce, has duly applied for authority under section 20a of the interstate commerce act to assume obligation and liability in respect of not exceeding $4,500,000 of Great Northern Railway equipment-trust certificates, series C, by entering into an equipment-trust agreement under which the certificates will be issued and into a lease of certain equipment to be purchased. No objection to the granting of the application has been presented to us.

To meet its transportation needs the applicant proposes to acquire additional equipment as follows:

The Great Northern Equipment Company, as vendor, will procure the equipment from the builders, and will enter into an agreement with the First National Bank of the City of New York, as trustee, and the applicant, creating the Great Northern Railway equipment trust, series C, and will sell and deliver the trust equipment to the trustee. The trustee and the applicant will simultaneously with the execution of this agreement execute and deliver a lease of all the trust equipment. Upon the execution and delivery of the agreement of lease and the payment by the applicant to the trustee of $1,550,000, advance rental, the trustee will deliver to the vendor, or order, for distribution to the several subscribers, trust certificates of the aggregate par value of $4,500,000, upon the deposit in cash with the trustee of a sum equal to the aggregate par value of the trust certificates. The trust equipment and lease thereof and the cash deposited with the trustee, as well as the advance rental payable as aforesaid, until paid out by the trustee as provided, will be held for the benefit of the holders of the trust certificates. Whenever the trust equipment is thereafter transferred and delivered to the trustee, the trustee will pay to the vendor, or order, out of the deposited cash an amount equal to the cost of the trust equipment delivered.

The equipment-trust agreement will be dated September 1, 1924, and will provide for the issue by the First National Bank of the City of New York, as trustee, of trust certificates evidencing shares in the equipment trust. The certificates will be in the denomination of $1,000, payable to bearer or registrable as to principal. They will mature in amounts of $300,000 at successive annual intervals on September 1 in each of the years 1925 to 1939, inclusive, and will have dividend warrants attached entitling the holders to dividends at the rate of 41⁄2 per cent per annum, payable semiannually on March 1 and September 1 in each year. By the terms of the trust agreement the applicant will indorse on each of the trust certificates, substantially in the form given in the agreement, its unconditional guaranty of the payment of the principal thereof and dividends thereon when the same become payable.

The lease of the equipment between the First National Bank of the City of New York and the applicant will be dated September 1, 1924, and will provide that the lessee shall pay to the lessor cash for rent which shall be sufficient to pay (a) the amount of $1,550,000 required as advance rental before the issuance of trust certificates, and in the event that the deposited cash and advance rental are not sufficient to pay in full the entire purchase price of the trust equipment, then a sufficient additional sum as advance rental to enable the trustee to pay the purchase price in full as the trust equipment is

delivered to the trustee; (b) necessary and reasonable expenses of the trust and lease; (c) any and all taxes, assessments, and Government charges upon the income or property of the trust; (d) the dividend warrants when they become payable; and (e) $300,000 on September 1 in each of the years 1925 to 1939, inclusive. Until the payments provided for in the lease have been made, title to the trust equipment will remain in the trustee. When all the requirements have been complied with, the title will be transferred to the appli

cant.

No contract or commitment has as yet been made as to the price or rate at which the proposed equipment-trust certificates are to be sold. It is proposed to sell them at the best price obtainable, but at not less than 96 per cent of par and accrued dividends. On that basis the annual cost to the applicant will be approximately 5% per cent. We find that the proposed assumption of obligation and liability by the applicant as aforesaid (a) is for a lawful object within its corporate purposes, and compatible with the public interest, which is necessary and appropriate for and consistent with the proper performance by it of service to the public as a common carrier, and which will not impair its ability to perform that service, and (b) is reasonably necessary and appropriate for such purpose.

An appropriate order will be entered.

COMMISSIONER MEYER did not participate in the disposition of this case.

ORDER

Entered August 18, 1924

Investigation of the matters and things involved in this proceeding having been had, and said division having, on the date hereof, made and filed a report containing its findings of fact and conclusions thereon, which report is hereby referred to and made a part hereof:

It is ordered, That, for the purpose of acquiring possession of, the right to use, and ultimately title to, the equipment described in the aforesaid report, the Great Northern Railway Company be, and it is hereby, authorized to assume obligation and liability in respect of not exceeding $4,500,000 of Great Northern Railway equipmenttrust certificates, series C, to be issued by the First National Bank of the City of New York (a) by entering into an agreement under date of September 1, 1924, with the Great Northern Equipment Company, as vendor, and the First National Bank of the City of New