ganization is adequate to conduct the unified operations. Although applicant would be one of the few operators performing single-line service in transporting the considered commodities between Texas points and points in Illinois, there are numerous other operators rendering this type of service in the general territory.

We find that purchase by C. L. Tyrrell of the previously described operating rights in Texas of H. L. Johnson, including the right to a certificate covering such rights confirmed in No. MC-61434, upon the terms and conditions above set forth, which terms and conditions are found to be just and reasonable, will be consistent with the public interest, and that the conditions of section 213 have been or will be fulfilled; provided, however, that, in event the authority herein granted is exercised, applicant shall charge directly to his sole proprietorship capital account the entire amount of the instant purchase price.

An appropriate order will be entered.

35 M. C. C.

No. MC-F-862

URBAN J. HAAS AND CYRIL H. WISSEL-PURCHASEIOWA FREIGHT LINES, INC.

Submitted October 25, 1939. Decided February 16, 1940

Purchase by Urban J. Hass and Cyril H. Wissel, doing business as H. & W. Motor Express Company, of certain operating rights and property of Iowa Freight Lines, Inc., approved and authorized, subject to condition.

D. C. Nolan for applicants.

P. F. Gault and S. E. Gregory for interested parties.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS PORTER, MAHAFFIE, and MILLER BY DIVISION 4:

Urban J. Haas and Cyril H. Wissel, partners, of Dubuque, Iowa,1 doing business as H. & W. Motor Express Company, by application. filed April 7, 1939, seek authority under section 213, Motor Carrier Act, 1935, to purchase certain operating rights and property of Iowa Freight Lines, Inc., an Iowa corporation, of Cedar Rapids, for $7,500. Hearing has been held before an examiner, at which western trunkline rail carriers were represented but did not oppose the application. The parties have waived service of a report and recommended order. Applicants' operations as a motor-vehicle common carrier of general commodities, in interstate or foreign commerce, in Iowa, Illinois, Minnesota, and Wisconsin, are described in Haas and Wissel-Purchase-Daniel, 15 M. C. C. 335, and cases therein cited. Applicants have pending a section 207 application in No. MC-69224 (Sub-No. 1) for authority to extend their operations between Maquoketa and Cedar Rapids via Anamosa and over numerous additional routes in Iowa and Illinois.

The corporate relationship of vendor and Hawkeye Motor Express, Incorporated, also an Iowa corporation, of Cedar Rapids, and their respective operations as motor-vehicle common carriers of property, in interstate or foreign commerce, the former entirely in Iowa, and the latter in Iowa and Illinois, are described in Hawkeye Motor Exp., Inc.-Lease-Iowa Freight Lines, Inc., 15 M. C. C. 456.

All points mentioned are in Iowa unless otherwise indicated.

On September 9, 1939, in No. MC-69224 (Sub-No. 2), rights authorized to be purchased by applicants were confirmed in the latter.

No. MC-F-971

V. J. AND C. H. SMITH-PURCHASE-T. GLEN MILLER, JR.

Submitted October 18, 1939. Decided February 16, 1940

Purchase by V. J. and C. H. Smith, partners, doing business as Smith's Transfer Company, of the operating rights and property of T. Glen Miller, Jr., doing business as Miller Motor Lines, approved and authorized, subject to condition. B. F. Williams for applicants.

John M. Miller for an interested party.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS PORTER, MAHAFFIE, AND MILLER BY DIVISION 4:

V. J. and C. H. Smith, of Lenoir, N. C., partners, doing business as Smith's Transfer Company, by application filed July 29, 1939, seek authority under section 213, Motor Carrier Act, 1935, to purchase the operating rights and property of T. Glen Miller, Jr., also of Lenoir, doing business as Miller Motor Lines, for $1,500. Hearing has been held, and affirmative recommendation has been made by the joint board without accompanying order.

On August 3, 1937, in No. MC-7804, applicants were issued a certificate under the "grandfather" clause, covering operations in interstate or foreign commerce as a motor-vehicle common carrier of general commodities, over regular routes, between Boone, N. C., and Knoxville, Tenn., via Lenoir, Hickory, and Morganton, N. C., serving all intermediate points, except points between Lenoir and Morganton on North Carolina Highway 18, and serving Brockford and Rhodhiss as off-route points; and between Asheville and Murphy, N. C., and intermediate points over U. S. Highway 19. Pursuant to authority granted in Smith Extension of Operations-Charlotte, 7 M. C. C. 739, certificate was issued applicants on November 12, 1938, in No. MC-7804 (Sub-No. 1), covering similar operations over two routes between Hickory and Charlotte, N. C., with intermediate-service restrictions over one of the routes. In Smith Extension of Operations-Morganton-Charlotte, 17 M. C. C. 801, issuance of a certificate to applicants was authorized, covering operations between Morganton and Charlotte via Toluca, Lincolnton, Denver, and Lowesville, with service to all intermediate points except Lincolnton.

In Axley Common Carrier Application, 9 M. C. C. 643, which embraces No. MC-84738,1 T. Glen Miller, Jr., Common Carrier Application, issuance of a certificate under the "grandfather" clause to vendor was authorized, covering operations as a motor-vehicle common carrier of general commodities between Murphy and Chattanooga, Tenn., over U. S. Highway 64, serving all intermediate points. Pursuant to authority granted in Miller Extension-Murphy, N. C.-Ducktown, Tenn., 11 M. C. C. 487, a certificate was issued vendor on November 29, 1938, in No. MC-84738 (Sub-No. 2), covering operations as a motorvehicle common carrier of general commodities between Murphy and Ducktown, Tenn., via Ranger, N. C., and Turtletown, Tenn., with service to all intermediate points, except that service to Turtletown and points between it and Ducktown is restricted to traffic originating at or destined to points east of Turtletown.

Under the transaction as proposed, applicants would acquire all of vendor's operating rights, including certain office furniture and terminal equipment valued at approximately $200, for $1,500, payable in cash upon approval herein.

Applicants' balance sheet as of August 31, 1939, shows assets aggregating $84,820, consisting of: Current assets $38,256, including cash and working funds $8,317 and accounts receivable $18,543; carrier operating property, less depreciation, $35,396, including that leased to others $1,726; prepayments $4,730; and other deferred debits $6,438. Liabilities were: Current liabilities $24,105, composed of notes payable $18,629, accounts payable $1,697, wages payable $773, taxes accrued $2,859, and other current liabilities $147; equipment and other longterm obligations $3,430; deferred credits $3,866; reserves for injuries, loss, and damage $3,349; and partnership capital $50,070. Income statements for 1937, 1938, and the first 8 months of 1939 show a deficit of $4,230 and net incomes of $14,613 and $9,919, respectively.

Vendor's balance sheet as of August 31, 1939, shows assets aggregating $6,282, consisting of: Cash $347; amount due from agents $30; accounts receivable $5,109; carrier operating property, office equipment, less depreciation, $46; and franchises $750. Liabilities were: Accounts payable $6,196; taxes accrued $7; and sole proprietorship capital $79. Vendor testified that his operations from commencement thereof on June 14, 1937, to late in 1938, during which no accurate records were kept, were conducted at a loss. His income statement for the first 8 months of 1939 shows net income of $391.

1 This number was assigned to that portion of the "grandfather" application in No. MC-35319 in which vendor was substituted as applicant in lieu of J. H. Axley, doing business as Axley Truck Lines, pursuant to arrangements made June 14, 1937, in No. MC-FC-1714.

Under agreement of January 14, 1939, applicants would purchase vendor's interstate operating rights and corresponding intrastate rights (Iowa certificates C-31, C-183, and C-541), between Clinton and Cedar Rapids via De Witt, Stanwood, and Mount Vernon, with the right to serve Tipton as an off-route point, and two motor vehicles. The physical property to be acquired is valued by applicants at $1,500, the intrastate rights at $4,500, and the interstate rights at $1,500. Under the agreement, applicants would pay $500 on execution of the contract, $5,500 upon approval (which has been granted) of transfer of the intrastate rights, without restrictions, by the Iowa commission, and the remainder upon our approval of the transaction.

Applicants' pro forma balance sheet as of February 28, 1939, giving effect to the proposed transaction, shows assets aggregating $85,419, consisting of: Current assets $30,032, principally cash, receivables, and material and supplies; carrier operating property, including approximately 60 motor vehicles, less depreciation, $28,216; franchises $20,834; and prepayments $6,337. Liabilities were: Current liabilities $13,535, including accounts payable $6,430 and payments due on purchase herein $7,000; unearned surplus $11,000; and partnership capital $60,884. Their income statements for 1937, 1938, and the first 4 months of 1939 show deficit of $1,170 and net incomes, before provision for Federal income tax, of $8,371 and $2,244, respectively.

Vendor's balance sheet as of April 29, 1939, shows assets aggregating $20,914, consisting of: Current assets, principally cash and accounts receivable, $1,069; carrier operating property, less depreciation, $7,173; and intangible property $12,672. Liabilities were: Current liabilities $5,146, consisting of accounts payable $146 and notes payable $5,000; reserve for officers' compensation $3,300; capital stock $10,000; and earned surplus $2,468. Its income statements for 1937, 1938, and for the period January 1 to April 29, 1939, show deficits of $496, $195, and $24, respectively.

Since the hearing, applicants have advised that they will amortize over a period of 5 years any amount added to their intangible-property account as a result of recording the transaction herein authorized upon their books, and our findings will be conditioned accordingly.

The route which applicants would here purchase, 85 miles, intersects their present route between Dubuque and Davenport at De Witt. Applicants do not possess interstate rights between Clinton and Cedar Rapids, but operate in intrastate commerce between these points over a route via Maquoketa and Anamosa. In connection with the

3 In Haas and Wissel-Purchase-Daniel, supra (embracing No. MC-F-241, Haas and Wissel-Purchase-Raab), applicants sought to purchase alleged interstate rights over this route. Division 5 found, however, for reasons stated in that report, that vendor therein did not possess such rights, and the application was accordingly dismissed.