following authority granted in Spitzer-Control-Hedrick Truck Lines, Inc., supra, Hedrick's service was substantially curtailed. By the purchase applicant would be able to render an improved service to certain points not at present served by him and to effect economies through consolidation of separate administrative and operating functions. A railroad operates between the principal points involved, and other motor carriers serve portions of the duplicating route. Subsequent to the hearings, applicant advised that he did not contemplate amortizing or otherwise writing off the amount of increase in his "Other Intangible Property" account resulting from the instant transactions. This increase would amount to approximately $4,500 in connection with No. MC-F-829, and $7,200 in No. MC-F-887. In our opinion applicant's books should not permanently reflect an increase in this account as result of these transactions, and our findings will require amortization or write-off of the amount of such increase, if the authority herein granted is exercised. Herrin Transp. Co.Purchase-Coleman, 35 M. C. C. 88. We find that purchase by R. G. Spitzer, doing business as Rio Grande Truck Lines, of (1) the previously described operating rights and property of H. Howe, doing business as El Paso-Arizona Motor Freight Lines, and (2) the operating rights and property of Hedrick Truck Lines, Inc., including the right to certificate covering such rights in No. MC-4392 and No. MC-2430, herein authorized to be unified with rights otherwise confirmed in applicant, with duplications eliminated, 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, if any of the authority herein granted is exercised, applicant shall amortize in equal annual amounts over a maximum period of 10 years, commencing with the respective dates of consummation herein, the amount of increase in the "Other Intangible Property" account as result of each transaction, in a manner consistent with the provisions of the uniform system of accounts for class I motor carriers, or, in lieu of amortization, in any year of such 10-year period applicant may write off to proprietorship capital, in accordance with said accounting provisions, one-tenth or more of the amount of such increase in the "Other Intangible Property" account, so as to remove from such account within said 10-year period, either through amortization or write-off, the entire amount of each increase. An appropriate order will be entered. No. MC-F-835 CENTRAL GREYHOUND LINES, INC.-ASSUMPTION OF OBLIGATION Decided March 26, 1940 Findings in prior report, 25 M. C. C. 435, modified to authorize Central Greyhound Lines, Inc., to assume obligation and liability as guarantor or endorser of not exceeding $150,000 promissory notes, subject to conditions. Appearances as in prior report. SUPPLEMENTAL REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS PORTER, MAHAFFIE, AND MILLER BY DIVISION 4: In our prior report, 25 M. C. C. 435, dated August 7, 1939, Central Greyhound Lines, Inc., was authorized to assume obligation and liability as guarantor or endorser of secured promissory notes of aggregate principal amount not exceeding $150,000, upon certain terms and conditions. As stated in said report, it was contemplated that, in establishing improved rest and lunch stops on applicant's routes, Greyhound Travel Stations, Incorporated, hereinafter referred to as Stations, would license various persons to operate such facilities, and to finance same it was expected that each licensee would borrow funds in an amount equal to 60 percent of the cost thereof, to be evidenced by its promissory note secured by a first mortgage on premises on which the facilities would be located. To assist the respective licensees, applicant sought and obtained authority to guarantee by endorsement payment of such secured notes. When the proposal was first submitted to us, definite arrange. ments with prospective licensees and lenders had not been completed, and hence data concerning same were not available. In proceeding with the plan the parties have found it desirable to provide for alternative arrangements for the purpose, among others, of obtaining lower interest rates available on unsecured notes to be issued by Stations and guaranteed by applicant. By petition filed March 18, 1940, applicant requests issuance of a supplemental order which, in addition to continuing the authorization in our prior report and order, would authorize applicant to assume obligation and liability as guarantor or endorser of promissory notes in the aggregate amount approved in said prior report and order under the circumstances there contemplated as well as under the alternative arrangements hereinafter set out. In some cases licensees will own and operate the lunch and rest facilities as originally planned, but in others Stations now proposes to own and operate such facilities, and except where financing is arranged as originally authorized it is proposed that Stations in each instance issue its unsecured note in an amount equal to approximately 60 percent of the estimated cost of the improvements, to a bank or other lending agency, payment of which would be guaranteed by applicant by endorsement and pursuant to terms of an agreement to be entered into by parties to the transaction. As collateral security for the guaranty, Stations, where it owns the facilities, would deliver to applicant an indemnity bond or its note (in amount equal to the note guaranteed) secured by a first mortgage on the situs of the facilities. Where the latter is owned by a licensee, Stations, after borrowing funds on its unsecured note guaranteed by applicant, would loan approximately an equal amount to the owner of the facilities, who in turn would issue and deliver his promissory note to Stations secured by first mortgage on the premises, which latter note and mortgage would be assigned without recourse by Stations to applicant as collateral security for the guaranty. Specimen copies of notes and agreements proposed have been filed with us. Under the circumstances applicant will not be required to furnish additional information concerning each transaction prior to exercise of authority herein issued as contemplated under the first proviso contained in the findings of our prior report. Applicant also asks that the supplemental authority, if issued, be made retroactive to date of our prior order. Any assumption of obligation by applicant not in conformity with our authorization is void, and the statute provides no method for validating same. Upon further consideration, we find that the proposed assumption by Central Greyhound Lines, Inc., of obligation and liability as guarantor or endorser of promissory notes of aggregate principal amount not exceeding $150,000 for the purpose and upon the terms and conditions set forth in the prior report as modified herein, (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; provided, however, that the authority granted herein shall not apply to any note or notes issued subsequent to August 7, 1941. An appropriate supplemental order will be entered. No. MC-F-900 WHEELER TRANPORTATION COMPANY-PURCHASEYELLOW TRUCK LINES, INCORPORATED Decided March 26, 1940 Findings in prior report, 25 M. C. C. 599, approving and authorizing, subject to condition, purchase by Wheeler Transportation Company of operating rights of Yellow Truck Lines, Inc., between Madison and Stevens Point, Wis., serving all intermediate and certain off-route points, modified. Appearances as in prior report. SUPPLEMENTAL REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS PORTER, MAHAFFIE, And MILLER BY DIVISION 4: In the prior report, 25 M. C. C. 599, which also concerned another transaction not involved herein, we approved and authorized, in No. MC-F-900, the purchase by applicant, for $4,000, of certain operating rights of vendor over a 115-mile route between Madison and Stevens Point, Wis., over U. S. Highway 51, serving all intermediate points, including Portage, Wis., and certain off-route points, upon the following condition: provided, however, that if the authority granted in No. MC-F-900 is exercised, the rights transferred shall contain no service restrictions with respect to Portage. This condition gave effect to our disapproval of a provision of the purchase-and-sale agreement which attempted to restrict applicant's service between Portage and points south thereof following the purchase. By joint petition the parties represent that since the prior report they have amended their contract so as to eliminate from the operating authority to be purchased by applicant all intrastate and interstate rights to serve Portage, and they ask that an order be entered approving the purchase as so modified. As indicated in the prior report, vendor serves, and will continue to serve, Portage over several highways other than U. S. Highway 51. Applicant, on the other hand, is primarily interested in the longer operation between the larger points of Madison and Stevens Point, particularly because the latter point is in approximately the center of the remainder of its operations. The record indicates that most of the Portage interstate traffic normally moves into that point from Chicago, on the southeast, and from Minneapolis and St. Paul, Minn., on the northwest, over routes other than U. S. Highway 51, and that Portage would not be without adequate motor-carrier service to and from all directions, including Madison and Stevens Point over the considered route, if the modified transaction is approved. Upon consideration of all the facts in the light of the amendment to the agreement between the parties, the record warrants a finding that the proposed modification will be consistent with the public interest. We find, our prior findings in No. MC-F-900 being modified accordingly, that purchase by Wheeler Transportation Company of previously described operating rights of Yellow Truck Lines, Inc., including the right to a certificate covering such rights confirmed in No. MC-26560, herein authorized to be unified with rights otherwise confirmed in applicant, with duplications eliminated, upon the modified terms and conditions above set forth, which terms and conditions, as so modified, are found to be just and reasonable, will be consistent with the public interest, and that the conditions of section 213 of the Motor Carrier Act, 1935, have been or will be fulfilled; provided, however, that if the authority herein granted is exercised, the operating authority purchased from Yellow Truck Lines, Inc., shall be modified, coincident with such purchase, by excluding therefrom all right to render service from and to, or to interchange traffic at, Portage, Wis., in connection with freight moving over the route purchased. An appropriate supplemental order will be entered. MILLER, Commissioner, concurring: The instant report appears to be in accord with the agreement reached by vendor and applicant. That agreement does not appear to be contrary to the public interest. I therefore vote for the report. 35 M. C. C. |