Agee's request. All things considered, the motion by Mr. Agee should be and, it is hereby, denied.

F.D. No. 27827

Trains Nos. 1 and 2, the "Southern Crescent," operate over Southern's system between Washington, D.C., and New Orleans, La. (a distance of some 1,153 miles), through Atlanta, Ga., and Birmingham, Ala. Between Washington and Birmingham, these trains operate daily, and between Birmingham and New Orleans they operate thrice-weekly with connections at New Orleans with AMTRAK trains operating thrice-weekly to and from the west coast. Coach and sleeping cars are interlined with AMTRAK at Washington, and sleeping cars only at New Orleans.

It is Southern's proposal herein to operate trains Nos. 1 and 2 between Atlanta and Birmingham thrice-weekly instead of daily, continuing daily service of these trains between Washington and Atlanta, and continuing thrice-weekly service between Birmingham and New Orleans. Train No. I will operate from Atlanta to New Orleans via Birmingham every Tuesday, Thursday, and Sunday, and train No. 2 will operate from New Orleans to Atlanta via Birmingham every Monday, Wednesday, and Friday. These schedules to and from New Orleans are presently in effect. Presently, train No. 1 following arrival from Washington, leaves Atlanta daily at 9:05 a.m., arriving in Birmingham at 11:55 a.m. central time, and on Tuesday, Thursday, and Sunday provides service beyond Birmingham to New Orleans, arriving there at 7:50 p.m. central time. On the other 4 days of the week, train No. 1 terminates at Birmingham. Train No. 2 leaves New Orleans at 7 a. m. central time on Monday, Wednesday, and Friday, arriving at Birmingham at 1:55 p.m. central time. Train No. 2 leaves Birmingham daily at 2 p.m. central time, arriving at Washington, D.C. at 8:15 a.m. the following day via Atlanta.

On those days that the trains operate to and from New Orleans their regular consist between Atlanta and Birmingham is eight cars: three coaches, two sleepers (one of which operates between New York and Los Angeles), a diner, a parlor dome car, and a baggage dormitory car; four diesel units pull these cars. On the 4 days a week. that Birmingham is the terminus, there are regularly five cars, two coaches, one sleeper, a bar-food car, and baggage car; these are pulled by three diesel units. The traincrew in each instance consists of an engineer, fireman, conductor, baggage man, and a flagman.

Additionally, there is a train porter for the coaches and one sleeper car porter for each sleeper on the train. The dining car in the train consist, on the thrice-weekly service to and from New Orleans, has one dining car steward, two cooks, and two waiters; on the 4 days that the operations begin or terminate at Birmingham, there is only a bar-food car attendant present. It is estimated that five crew members and two porters would have to go into freight service as their jobs on trains Nos. 1 and 2 between Atlanta and Birmingham would be lost if the thrice-weekly service were begun.

Southern claims that trains Nos. 1 and 2 have operated at a deficit for many years and that these trains in their operations between New Orleans and Washington suffered an approximate loss of $3,500,000 in 1972, $4,200,000 in 1973, and $2,500,000 for the first 9 months of 1974. Southern stresses that during the period January 1, 1972, through September 30, 1974, its direct expenses of operating trains Nos. 1 and 2 south of Atlanta exceeded the revenue derived by more than $3 million. During the same period, the 4-day operations between Atlanta and Birmingham accounted for over $800,000 of this loss.

The number of revenue passengers (excluding short-haul and school excursion groups) on trains Nos. 1 and 2 between Atlanta and Birmingham on the 4 days a week that Birmingham is a terminus is as follows, with the average number per trip shown in parentheses:

For the first 9 months of 1974, of the 4,932 passengers on train No. 1, 3,764 of them boarded north of Atlanta, and of the 4,717 passengers on train No. 2, 3,560 of them continued and traveled beyond Atlanta. Southern's experience is that group excursions and short hauls normally consist of small school children who board at one station and depart at the next in a one-way operation. The number of passengers involved amounted to 312 in 1972, 499 in 1973, and 904 in the first 9 months of 1974. In the latter period, all movements were between Anniston and Birmingham. On the 3 days of the week the trains operate through Birmingham to and from New Orleans, the following number of revenue passengers were transported, with the average number per trip shown in parentheses:

The financial results of operating trains Nos. 1 and 2 between Atlanta and Birmingham on the 4 days a week on which Birmingham is a terminus, including the entire earnings from all revenue passengers handled are as follows: For 1972, the total revenue passengers handled were 10,290, the direct expense was $325,300, and the direct expense shown in excess of revenue was $250,000. For 1973, there were 12,250 passengers, the direct expense was $386,300, and the direct expense in excess of revenue was $298,300. For the first 9 months of 1974, there were 10,553 passengers at an expense of $361,500 and the direct expense in excess of revenue is shown as $263,500. The direct expenses used are confined to those essential to operate the passenger trains, four trips a week in each direction. Southern submits that there are certain items of expense not included, such as supervision, depreciation, retirements, maintenance of right-of-way or of right-of-way or tracks and structures, and maintenance of equipment.

The amounts shown for servicing of locomotives, locomotive repairs, train supplies and expenses, and passenger car repairs are based on system averages apportioned to the mileage operated by trains Nos. 1 and 2 between Atlanta and Birmingham on their 4-day a week operation. Similarly, the fuel expense was obtained by developing the amount of consumption from a simulation analysis and the cost of diesel fuel oil during those periods shown was applied. According to Southern, trains Nos. 1 and 2 consumed a total of 1,064 gallons of fuel. In 1973-74, applicant actually metered fuel consumption of trains Nos. 1 and 2 for 12 runs between Washington and Atlanta, and the difference between this actual meter system and a simulation of the same number of runs was only 1.5 percent. From a study made, Southern estimates that trains Nos. 1 and 2 achieve only 8.3 passenger miles per gallon for all revenue passengers as compared to the passenger miles per gallon achieved by the airlines of 21, private automobiles of 32, and 125 by bus. It is estimated that operations by these trains on a thrice-weekly schedule between Birmingham and Atlanta will result in an annual saving of 229,800 gallons of diesel fuel. Expenses of rental of equipment represents that amount paid to foreign lines for use of their equipment during the time shown, and the dining car net loss is

348 LCC

the bar-food attendant's wages plus those food and beverages expenses in excess of all bar-food car revenues during the period

shown.

The net feeder value of the 4-day operation on the AtlantaBirmingham segment using the Commission's formula is calculated as follows:

Passenger revenue feeder value trains Nos. 1 and 2 between Atlanta and
Birmingham (4-day operation)

Southern estimates that 70 percent of the revenue now accruing from the 4-day operation between Atlanta and Birmingham will be retained as passengers change travel plans to use the proposed thrice-weekly service. Also, retention of 70 percent of the segment's 4-day feeder value is also anticipated. Taking these estimates into account, the net savings for the past periods shown are calculated as follows:

Savings that would have been realized had trains Nos. 1 and 2 not operated
between Atlanta and Birmingahm during the 4 days a week the train originate
or terminate at Birmingham

On the basis of these figures, Southern figures that to break even, trains Nos. 1 and 2, on the 4-day operation to and from Birmingham, would have to carry 44,755 additional passengers per year. Annualized, Southern estimates that savings for 1974 on

operations between Atlanta and Birmingham will amount $357,000, with future savings possibly greater due to increased prices of materials and supplies and higher labor costs.

The only interchange affected by Southern's proposal between Atlanta and Birmingham is that with AMTRAK which operates the Chicago-Miami-St. Petersburg "Floridian" through Birmingham daily in each direction. The proposed change of service to 3 days a week will necessarily limit the connection with the "Floridian" to the same number of days. A study of the 3 months ending November 30, 1974, indicates that on the 4 days that trains Nos. 1 and 2 would be discontinued there was a total of 77 interline passengers or an average of .74 per trip. On the 3 days a week these trains will continue to operate there was a total of 139 who interlined or an average of 1.78 per trip.

The record indicates that there are substantial air and highway bus services, as well as asphalt or all weather roads, including interstate highways for passenger autos, between the points affected by Southern's proposal.

F.D. No. 27828

In F.D. No. 27828, Southern proposes to discontinue permanently that portion of the operations of passenger trains Nos. 5 and 6, the "Piedmont," between Charlotte and Atlanta, and to change the schedules of these trains over the remaining segment of their run between Charlotte and Washington. The most significant rearranging of the schedule between Washington and Charlotte is the departure time from Washington at 10:45 a. m., rather than 9:45 a. m., and departure from Charlotte at 10 a.m., rather than 12:49 p.m. Daily operations will continue by trains Nos. 5 and 6 between Charlotte and Washington and these trains will stop at all intermediate points now served by them. It is submitted that the greatest improvement as a result of the rescheduling of trains Nos. 5 and 6 will be to afford Southern additional connections with AMTRAK at Washington to and from New York and other points in the East, and provide for more convenient stops in Virginia and North Carolina.

Presently three sets of equipment are required to operate trains Nos. 5 and 6. The consist of the regular passenger train is a coachcombine, with 44 reclining seats, a baggage compartment, and a coach-lounge containing 30 reclining seats; there is also a pantry and food-bar serving hot meals, sandwiches, and beverages between