Balance sheet for vendor as of September 30, 1939, shows assets aggregating $43,949, consisting of: Current assets $7,546, principally cash $17,342 and accounts receivable (credit balance) $10,306; carrier operating property, including 67 motor vehicles, less depreciation. $30,920; intangible property $306; and prepayments $5,177. Liabilities were; Current liabilities $4,964, representing accounts payable $4,539, and taxes accrued $425; capital stock $40,000; and earned surplus (debit balance) $1,015. Income statements of vendor's predecessor, covering the operations here involved, for 1937, 1938, and the period January 1 to May 27, 1939, show net incomes of $20,089, $27,988, and $8,057, respectively. Vendor's income statement for the period May 28 to August 19, 1939, shows a deficit of $1,015. Pro forma balance sheet of applicant giving effect to the proposed transaction as of September 30, 1939, shows assets aggregating $287,444, consisting of: Current assets $186,743, principally cash $23,877, temporary cash investments $135,000, and accounts receivable $27,093; carrier operating property, less depreciation, $95,353; and prepayments $5,348. Liabilities were: Current liabilities $48,324, representing accounts payable $36,232 and taxes accrued $12,092; equipment obligations $48,000; reserves $5,868; capital stock, common, $50,000; and earned surplus $135,252. Although vendor's balance sheet as of September 30, 1939, records the 67 vehicles and miscellaneous equipment to be acquired at a depreciated value of $30,920, it is claimed that the latter figure does not truly reflect the value of such property. Witness for vendor testified that when the latter was organized there was no attempt made properly to evaluate the equipment, and applicant's president has appraised such property at $61,639 as of the date of the agreement. When journal entries are submitted for approval, appropriate consideration will be given to the matter of accounting for the value of equipment. Applicant's intangible account should not be permitted permanently to reflect any amount which herein may be paid for intangibles, and our findings will be conditioned accordingly. While vendor's predecessor derived a substantial net income from the operations involved, the operations both of the predecessor and vendor have been handicapped by labor difficulties, and, as a result, the latter's principal shipper canceled its transportation contract for distributing its traffic from Charlotte, leaving vendor without sufficient tonnage to justify operations. Applicant has successfully served the same shipper for a number of years from other distributing points and expects, if approval herein is obtained, to render a more comprehensive transportation service for that shipper in the same general territory. Applicant estimates that, by eliminating duplicate adminis trative and operating functions, it will derive a profit from the added business which will be sufficient to take care of the deferred payments on the purchase price and other contingencies. The territory involved is served by another contract carrier and by several common carriers by motor vehicle. We find that purchase by The A. G. Boone Company of operating rights and property of Mecklenburg Transport, Incorporated, including the right to operate pending determination of the latter's "grandfather" application in No. MC-59492, and the right to any permit which may be issued as result of that application, herein authorized to be unified with rights otherwise confirmed in applicant, 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 the authority herein granted is exercised, applicant shall amortize in equal annual amounts over a maximum period of 10 years, commencing with the date of consummation herein, the amount of increase in the "Other Intangible Property" account as result of the instant 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 the 10-year period applicant may write off to surplus, 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 the increase. An appropriate order will be entered. 35 M. C. C. No. MC-F-411 CONSOLIDATED BUS LINES, INCORPORATED-CONSOLIDATION-CONSOLIDATED BUS LINES ET AL. Decided December 29, 1939 Lease by Consolidated Bus Lines, Incorporated, of the operating rights of Angle Star Lines, Incorporated, for an extended period of 1 year, approved and authorized, subject to condition. Prior report, 5 M. C. C. 309. Appearances as in prior report. SUPPLEMENTAL REPORT OF THE COMMISSION DIVISION 5, COMMISSIONERS EASTMAN, LEE, AND ROGERS BY DIVISION 5: In the prior report, 5 M. C. C. 309, decided December 28, 1937, which also concerned other matters not here involved, Consolidated Bus Lines, Incorporated, of Beckley, W. Va., was authorized to lease for 2 years, at $480 per year, the operating rights1 of Angle Star Lines, Incorporated, of Bluefield, W. Va. Applicant subsequently filed an application in No. MC-F-893, Consolidated Bus Lines, Incorporated-Purchase-Angle Star Lines, Incorporated, in which authority is sought to purchase the leased rights. Pending disposition of such application, petition has also been filed herein seeking authority to extend the lease on the same terms for another year or, in the alternative, until such time as the transaction involved in No. MC-F-893 is consummated. No objection to granting the petition has been filed, nor do we disapprove, so far as the 1-year extension proposal is concerned. The alternative proposal is objectionable, however, in that the application in No. MC-F-893 might not be approved, or, if approved, actual consummation might long be delayed. Hence, as under the alternative proposal the lease term is indefinite, and conceivably might be continued for an unduly prolonged period, this portion of the petition 'In Angle Star Lines Common Carrier Application, 16 M. C. C. 189, decided March 13, 1939, applicant therein was found entitled to continue operation as a common carrier by motor vehicle, of passengers and their baggage and of express, mail, and newspapers in the same vehicle with passengers, over a specified route between Bluefield and War, W. Va., vis Bluefield and Pocahontas, Va., and Squire, W. Va. Negative action respecting all other operating rights claimed by Angle Star Lines, Incorporated, was taken on October 9, 1939, in Murphy Bus Co. Common Carrier Application, 19 M. C. C. 447, wherein No. MC-79011 (Sub-No. 1), Angle Star Lines, Inc., Common Carrier Application, was denied, effective November 25, 1939, and No. MC-79011 (Sub-No. 2), Angle Star Lines, Inc., Change of Route Application, was dismissed, effective November 25, 1939. cannot be approved. Compare Kansas City S. Transport Co., Inc.Lease-Pur-Tri-State, 15 M. C. C. 509, 510. We find that lease by Consolidated Bus Lines, Incorporated, of the confirmed operating rights of Angle Star Lines, Incorporated, for not exceeding 1 year from December 29, 1939, at $40 per month, will be consistent with the public interest, and that the provisions of section 213 have been or will be fulfilled; provided, however, that a duly authenticated copy of a lease, executed pursuant to the foregoing authorization, shall first be filed with us. An appropriate order will be entered. 35 M. C. C. No. MC-F-931 RISS & COMPANY, INCORPORATED-PURCHASE— RINGSBY TRUCK LINES, INCORPORATED Submitted December 22, 1939. Decided December 29, 1939 Furchase by Riss & Company, Inc., of operating rights and property of Ringsby H. D. Driscoll and John F. Mueller for applicant. REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS PORTER, MAHAFFIE, AND MILLER BY DIVISION 4: No exceptions were filed to the order recommended by the examiner, but it was stayed by us. Riss & Company, Inc., of Kansas City, Mo., a Colorado corporation, by application filed June 7, 1939, seeks authority under section 213, Motor Carrier Act, 1935, to purchase the operating rights and properties of Ringsby Truck Lines, Inc., of Denver, Colo., for an amount not exceeding $17,800, as hereinafter explained. Hearing has been held, at which certain rail carriers and a motor carrier intervened but offered no evidence. Pursuant to authority granted under section 210a (b), applicant has leased vendor's motor-carrier properties for a period expiring January 13, 1940, at a rental of $100 per month. Applicant claims rights to operate pursuant to pending "grandfather" application in No. MC-200, as a motor-vehicle common carrier of general commodities, in interstate or foreign commerce, over regular routes, serving numerous intermediate points, principally between Chicago, Ill., and Denver via St. Louis and Kansas City, Mo. (also via Hannibal and St. Joseph, Mo.), Salina and Oakley, Kans., and Limon, Colo., with alternate route via Hutchinson and Garden City, Kans., and Pueblo, Colo.; between St. Louis and Amarillo, Tex., via Springfield, Mo., and Tulsa and Oklahoma City, Okla.; between Kansas City and Dallas and Fort Worth, Tex., over several routes, principally (1) via Fort Scott, Kans., Muskogee, and Durant, Okla., and (2) via Florence and Wichita, Kans., Ponca City, and Oklahoma City, Okla.; between St. Louis and Cincinnati, Ohio, via Indianapolis, |