The History of TNG
Information for this story came from 1950 and 1951
issues of The Toccoa Record, Toccoa City documents,
Transcontinental Gas Pipe Line Corporation and former
Toccoa attorney George B. (Boots) Ramsay Jr.
Transco launches bold natural gas line project
Toccoa looks into becoming a natural gas distributor
Toccoa visionaries sell the idea to voters
The Toccoa Record newspaper advocates the idea
The Chamber of Commerce “sponsors” referendum
Folks were talking
Voters overwhelmingly support natural gas
City launches natural gas marketing campaign
Problem getting pipes
Natural gas pays off for Toccoa
The natural gas advantage: a personal account
Transco launches bold natural gas line project
It was 1950, and Transcontinental Gas Pipe Line Corporation (Transco) was constructing what was then the longest natural gas transmission line in the world: 1,832 miles from the Gulf Coast all the way to New York. Transco was formed in 1946 and four years later was launching a bold, expensive project that would be a remarkable engineering and construction feat. It was a risky undertaking, but Transco officials believed in the future market potential of this clean, efficient and economical fuel.
Transco officials were not interested in operation and maintaining distribution systems in small towns and rural areas in the South. They were headed toward major markets in the East, and they succeeded, delivering the first natural gas to New York City in the late 1950’s, a few years after Toccoans could obtain this fuel. However, along the route to New York, Transco would sell gas to smaller towns to distribute. So officials and citizens all along the route were given the decision to build distribution systems and buy natural gas from Transco to market and sell to customers.
Toccoa looks into becoming a natural gas distributor
In 1950 Toccoa city officials were carefully studying the pros and cons. The Transco transmission line reached Bowman, 35 miles away. The commission retained Barry and Switzer Co., a consulting engineering firm, from Baton Rouge, LA to do a feasibility study on constructing, operating and maintaining a natural gas distribution system starting at Bowman. It included projections on costs, profits, estimated revenues, rates, consumption, proposed distribution lines and a market analysis. The investment-banking firm Courts and Co. of Atlanta also was involved in this feasibility study. Results were highly favorable and city commissioners started work in earnest, laying the groundwork for the project.
City commissioners wanted to issue $1.7 million in general obligation bonds to pay for the project over a 20-year period. Investors would buy the bonds and be repaid for their investment at 3.5 percent per annum from revenue from the sale of natural gas. The investors would be taking the risk that the revenue would come in as projected, and they would make money. The city would be under no risk. No local tax money could be used for the project or for future operations of the natural gas system. Revenue from the sale of natural gas was projected to make money for the investors, pay for operating the system and make money for the city eventually.
Toccoa visionaries sell the idea to voters
Voters had to give their approval before general obligation bonds could be issued. Georgia law at that time not only required a majority vote to approve the bond issue. It also required that a majority of the registered voters turn out for the referendum. Thus city commissioners, community leaders and local media worked hard in the weeks before the vote at encouraging registered voters to turn out for the referendum.
In January 1951 Toccoa City Commissioners unanimously approved a resolution calling for that referendum to be held on Feb. 27, 1951. City commissioners decided to be ready to proceed quickly if voters approved the bond issue. They didn’t want any time lost between approval of the bond issue and project startup. So they took bids and awarded a conditional contract to Birmingham Building Company of Birmingham, AL to construct and install the distribution system. The contract amount was $1,396,855. Engineers told commissioners the costs were comparable to contract that were recently let in Elberton, Hartwell, Lawrenceville, Royston and Winder. Engineers said that Birmingham Building Company was the only bidder among 12 contractors who were contacted that could furnish the materials and construct and complete the gas system.
The city commission’s resolution would change the course of the City of Toccoa’s history. Those times are recalled by Toccoa attorney George B. (Boots) Ramsay and documented in city records and in The Toccoa Record newspaper.
“It was quite a happening around here,” Ramsay said. “It was an action people felt would benefit the town and make it grow and give them a cheaper and cleaner fuel than they had.”
Residents also admitted there were risks. Few, if any, had lived where natural gas was used as a fuel. “Coal and fuel oil were the primary fuels used in those days,” Ramsay said. “Very few people used electricity for heating.” A big question was whether natural gas would be as wonderful a fuel as people said it would be.
Documents on file in City Clerk Josephine Gleason’s office and articles, editorials and columns that appeared in The Toccoa Record in 1950 and 1951 indicate an enthusiasm and optimism in the entire community. Proponents of the measure expressed themselves well and frequently. The city commission’s January 1950 resolution, for example, made a strong case for approval of the bond issue, stating in part: “…It is deemed in the best interest of the City and its residents that (natural) gas be made available for both commercial and home use, all of which will afford gas for industrial purposes as well as modern heating and cooking facilities for which the consumers would pay a reasonable amount.” This resolution also drove home the point that the project would be “self-liquidating,” that is, no tax dollars would be used for the construction, operation and maintenance of the system.
The Toccoa Record newspaper advocates the idea
After the commissioners approved that resolution, the late Robert W. Graves, the editor and publisher of The Record and an advocate of the community’s development, wrote several stories explaining the value of natural gas. On a weekly basis Graves wrote insightful editorials and a personal column about local, state, and national events and issues. From the Jan 25, 1951 issue of The Record until after the Feb. 27, 1951 referendum, he expressed his unwavering support of the natural gas system in many of these editorials and columns. Throughout the campaign he emphasized several key points: local taxes would not ever be used for the project, property taxes would be lower because natural gas revenue, other cities in the area already approved natural gas systems with very little opposition, natural gas would be a fuel of choice for residences, businesses and industries because it cost 30 to 40 percent less than other fuels, a natural gas system would play a vital tool in promoting the growth and development of the city and area and a natural gas system would make money for the city for years to come.
The Jan. 27 lead story noted that referenda had already been held in Elberton, Lavonia, Royston, Hartwell, Monroe, Winder, Buford, LaGrange, Lawrenceville, Commerce and Jefferson. “The (general obligation bonds for the) gas system passed with almost no oppositions in each city,” the story reported. According to his information, fewer than 50 “No” votes had been cast in all those referenda combined.
The Chamber of Commerce “sponsors” referendum
City officials, Ramsay and Graves were by no means the only supporters of the project. The Chamber of Commerce directors decided to “sponsor” the referendum. “At a meeting this week it was decided to use all the facilities and members of the Chamber so that the required number of voters will go to the polls,” the Feb. 1, 1951 headline story reported. “The Chamber of Commerce Directors felt that with other cities in this area installing natural gas systems Toccoa would be at a disadvantage in trying to obtain new industries unless the system is approved by the voters of Toccoa.” The Chamber had made “extensive plans for contacting every registered voter before the election and see that transportation is provided for everyone who needs it.”
The Record continued to encourage approval of the bond issue in editorials and columns by Graves. Here is a sampling of quotes:
Feb. 1, 1951: “In the opinion of many, the coming of natural gas will pave the way for a great industrial expansion in Toccoa and other places in the South which heretofore have not had the advantages which gas offered. Industry has been coming south in large numbers, and gas will offer even better advantages than the many we already have.”
Feb. 8, 1951: “This dependable supply of inexpensive fuel will create conditions that will be conducive to the future growth and prosperity of this community. Toccoa cannot afford to be without gas for industries when nearby towns will have it.”
Feb. 8, 1951: “There is all to gain and nothing to lose in the project.”
Feb. 15, 1951: “The future of Toccoa-Stephens County will greatly depend on the outcome of this election. This is true because in order to attract new industry we must have a cheap source of fuel available. All other towns the size of Toccoa in this area are at the present time installing natural gas systems.”
Feb. 22, 1951: “Gas is one of the cheapest commodities and one of the most valuable industrially and domestically. With an unlimited supply of gas and the pipe line within a very few miles of Toccoa’s ‘front door’ it would be most unfortunate should we allow natural gas rights to get away from us … We believe this will be Toccoa’s greatest opportunity we will ever have to expand and by the same token effect a real savings for our taxpayers by the profits which a natural gas system will bring into the City’s coffers. Let’s do out duty and VOTE FOR NATURAL GAS.”
Feb. 22, 1951: The Record reported that the City of Hartwell “became the first city in Georgia, South Carolina and Alabama to get natural gas with a municipal system when the gas lines were officially open there at 11:39 o’clock Monday night, Feb. 12.”
Voters overwhelmingly support natural gas
March 1, 1951: The vote was overwhelmingly in favor of issuing bonds, and Graves wrote that the turnout and approval of the natural gas system was “a shining example of the community interest which prevails in Toccoa.”
Voters enthusiastically approved the bond issue. A total of 1,058 voters turned out. That was a little more than 60 percent of the 1,752 registered. “Yes” votes totaled 1,044. Only two “No” votes were cast. Twelve votes were declared void.
The Record reported that the total potential customer count was 2,471. That included 1,603 residential customers in Toccoa and 203 small commercial, 125 medium commercial, 22 large commercial, four industrial customers in Toccoa and 514 residential and small commercial customers between Toccoa and Bowman.
City launches natural gas marketing campaign
After the referendum, the City of Toccoa launched its first natural gas marketing program. The city offered a one-time deal: a $5 deposit for the gas meter and no additional fees. That meant savings of $45 to $50 on installation and service
charges. In this initial sign-up period, customers were allowed up to 75 feet of free service pipe from the main to their homes. The Jaycees went door-to-door promoting sign-ups and answering questions. Applications for gas taps were also taken in the lobby of the Ritz Theatre from 6:30 p.m. to 9:30 p.m. By the Oct. 4, 1951 issue of The Record, about 1,000-signed applications had been received.
Although sign-ups were rushing in, the City had some problems getting the natural gas to the customers. Ramsay remembered the incident quite well.
“There was still no pipe available because of World War II,” he said. It was no longer a wartime economy in the United States, but domestic production still had not caught up with domestic needs. John H. Bethune of Birmingham Building Company had assured commissioners that he would be able to obtain all the pipe necessary, but just when the project was ready to get underway, the federal Petroleum Administration of Defense froze all gas line construction with new pipe. The city’s engineers located some used pipe in West Virginia that was inspected and lab tested and approved by the engineer and investors. Of course that used pipe was subsequently replaced.
That was the only glitch in the project, according to Ramsay and the historical record.
Natural gas pays off for Toccoa
The decision by city commissioners and citizens for the City of Toccoa to operate a natural gas system was undoubtedly one of the wisest, most far-reaching decisions in the community’s history. It aided in the development of the community, and it contributed to the quality of life here, and, it’s steady source of revenue for the city. “The natural gas system had kept the property taxes down,” Ramsey noted.
The natural gas advantage: a personal account
Margaret Ayers of Lavonia has a vivid memory of the coming of natural gas. It was 1953, and she was a newly wed. She remembers when natural gas lines were being installed along the road where she and her new husband, the late Herman Ayers, lived. Rain was pouring down, and it was a mess. “People were getting stuck,” Ayers said. “You don’t forget something like that.”
Even with the mess it was a great event, she said.
“Natural gas has really meant a lot to this area,” she said. “It was so much better than trying to cut wood and bring in coal and bring in wood to heat with. I was so glad when we got it down Hartwell Road. We were all just thrilled. It’s clean. It’s a warm heat. I’ve heard a lot of people say that they’d much rather have gas than anything else.”
