Another former driver for Loyless testified that, during the period of his employment from 1934, until the summer of 1936, he transported the named commodities in the manner indicated: Cotton piece goods from Lyman to Charleston, Macon, Baltimore, Sunbury, and Philadelphia; sugar and canned goods from Charleston and Savannah to Greenville, Greer, and Spartanburg; steel drums from Lyman to Newark; textile machinery from Columbus, Ga., to Lyman; lard from Savannah to Spartanburg, Greenville, Gaffney, and Greer; cooking oil from Savannah to Charlotte, Spartanburg, Greer, and Greenville; pulpboard from Cedartown, Ga., to Lyman; stoves from Rome, Ga., to Spartanburg; oil from Newark to Spartanburg; matches from Winston-Salem to Spartanburg; tapioca, soap paste, and starch from Savannah to Lyman; cranberries from Philadelphia to Asheville, N. C.; and coconuts from New York City to Spartanburg.

One of the organizers of Paramount, who was its vice president from the time the corporation was first formed in October 1936, until in 1937, supported the application and indicated that there was no interruption in the service rendered between the time when Loyless discontinued his operation and when Paramount instituted a similar service. He testified that, during the period when he was actively engaged in the operation of Paramount, it served principally Atlanta and Cedartown, Ga., Lyman and Greenville, S. C., and New York City. The record is not entirely clear, but it appears that the bulk of the New York traffic which Paramount secured at Atlanta was interchanged traffic received from other motor carriers and consisted principally of cotton piece goods. Other traffic, including seed and machinery, was transported between Atlanta and Greenville. During the described period, another motor carrier was engaged to perform the pick-up and delivery service for Paramount at Atlanta, and terminals were maintained at both Greenville and New York City. It was testified that operations on call were conducted between Greenville and New York City, and the intermediate points of Washington, Baltimore, and Philadelphia were served. A witness, who had been in charge of maintenance of equipment for Paramount, testified that three trucks were acquired from Loyless and two more were purchased and operated by Paramount.

An employee of Paramount, at the time its operation was acquired by Southern, testified that there was no interruption in the service at the time of the transfer; and that Paramount maintained offices in both Greenville and New York City but that it also served Cedartown and Atlanta, Ga., and Charleston, S. C.

A truck driver for Paramount, from April 1937, until its operation was acquired by Southern, and who at the time of the hearing in September 1938 was driving for Southern, testified that there was

no interruption in the service which was rendered between the time when Paramount discontinued its operation and when Southern instituted a similar service. His last trip for Paramount was during the latter part of July 1937, when he transported cotton piece goods from Concord, N. C., to New York City. He indicated that a load of freight was transported on return to Atlanta.

Southern's manager testified that continuous service was rendered after the considered operation was acquired from Paramount; that his company conducts an "irregular route operation" between Atlanta and Greenville; that "we have had a few loads to Savannah, very few though"; that, with respect to operations north-bound from Greenville, "we usually run up there about every two or three weeks”; and that the commodities north-bound usually consist of cotton piece goods although "some rayon" has been transported. It was indicated that from Greenville some scrap brass had been transported to Philadelphia and some cotton piece goods to Baltimore and New York City. The witness testified that "we usually haul back [from New York City] anything we can get," and indicated that his company had hauled to Greenville a few loads of liquor and jar tops from Baltimore and bathroom fixtures from Baltimore and Philadelphia. When the witness was asked how the present operation compared with that conducted by its predecessors, Paramount and Loyless, he replied "well in my estimation it runs right along in line from the L & C on up to the present time. I don't see but very little variation here." But he admitted that his company does not conduct a heavy operation in the transportation of cotton factory products to Charleston as did Loyless. It was also admitted that, except between Greenville and Atlanta, service is limited to truckload shipments and that no authority is sought to transport small shipments any great distance. The witness was formerly employed by Paramount as its agent at Greenville for a short time prior to the acquisition by Southern. At that time, Paramount was operating "most every day" in each direction. between Greenville and Atlanta.

An office employee of Southern, since September 1938, testified that her company was operating two trucks and that a daily operation was conducted between Atlanta and Greenville, and she indicated that operations to New York City and Charleston were not regular.

On the foregoing, the examiner found that there had been a change in the inherent nature in the Loyless operation accomplished by Paramount and applicant; that applicant had accomplished another change in the scope and character of the considered operation; and recommended that the application be denied.

Exceptions were filed by applicant in which it is claimed that the instant application should be granted authorizing operations in

the transportation of general commodities between points in the States named in the application, in order that applicant may render any desired service. Protestants, on the other hand, urge that findings in the recommended order on further hearing of the examiner be affirmed.

At the further hearing, in March 1941, applicant's manager testified that applicant maintains its principal office and headquarters at Greenville and that it has continued to operate in like manner as it did in December 1940. Applicant submitted, pursuant to permission granted, a late-filed abstract upon which it relies to support its claim to a "grandfather" operation, listing several hundred shipments transported between August 5, 1936, and April 16, 1941, from and to various points, said to be illustrative and representative of the nature and extent of the then operation. The original shipping papers from which the abstract was compiled were made available for the inspection of the parties in an agreed manner but were not submitted in evidence. The abstract shows one shipment of canned goods which was transported by Loyless during the period of his operation from Baltimore to Greenville on August 5, 1936. It also shows the following commodities which were transported by Paramount in the manner indicated between October 31, 1936, and June 8, 1937: Lard from Savannah to Charlotte and Hendersonville, N. C.; cooking oil from Savannah to Greenville; trisodium phosphate from Charleston to Charlotte; cotton piece goods from New York City to Charlotte and Laurens, and from Rock Hill, S. C., and Avondale, N. C., to New York City; dry goods from New York City to Greenville; and refrigerators and varnish from New York City to Atlanta. With the exception of four shipments of dry goods from New York City to Greenville and eight of cotton piece goods from Rock Hill to New York City, only single shipments of the named commodities were shown to have been transported during the described period.

The abstract discloses that in 1937, after Southern purchased the operation of Paramount in July, approximately 125 shipments were transported, of which some appear to be intrastate. A substantial number were between Greenville and Atlanta. All but 17 of the remainder moved from or to Atlanta and Greenville. The record as a whole indicates that operations since 1937 have been similarly conducted.

We have consistently held that a mere holding out of service in a territory, particularly of a nonspecialized service, if unaccompanied by an actual substantial operation consistent therewith, is not enough to establish a bona fide operation within the meaning of the "grandfather" clause of the act. Evidence of the extent of the operation of Loyless since 1934 under his holding out and that of Paramount and

applicant has been given consideration. It is clear that applicant and its predecessors have successively been engaged in some continuous motor-carrier operations in the same general territory since prior to June 1, 1935. The separate operations of Loyless, Paramount, and applicant have been discussed at some detail herein. Briefly, the record indicates that for the first 3 years the considered operation as then conducted by Loyless was largely devoted to the transportation of traffic between Lyman and Charleston, and that for the next 3 years this movement ceased to be of major importance, and the bulk of the service was between Greenville and Atlanta. Thus we have a situation wherein the operations of the original applicant have been altered to a certain extent by its successors. However, it is not difficult to determine the scope and extent of the operation of the original applicant, Loyless, which has been continued by his successors, Paramount and Southern. Loyless was domiciled at Lyman, S. C., where he was employed as a shipping clerk by a textile mill and for which he transported numerous shipments. The details of his other operations have already been discussed. Lyman is a small mill town with an approximate population of 1,700. The record indicates that, during the period of his operation prior to October 1936, Loyless held himself out to serve not only Lyman but also points in the vicinity thereof in the transportation of any traffic within the limits of his equipment, which was moving to points in the States named in the application. The drivers were always instructed to secure a return load if possible. From Lyman and points in the vicinity thereof including Spartanburg, Greer, Woodruff, and Greenville, S. C., Loyless transported shipments of various commodities, among others, to points in Georgia including Atlanta. Greenville, with an approximate population of 35,000, is only 15 miles from Lyman, and is a point intermediate between Lyman and Atlanta. It is approximately 150 miles from Atlanta.

There can be little doubt but that Loyless, during the period of his operation, held himself out to serve between Greenville and Atlanta and actually so operated whenever there was a demand for his service in this respect. That such operation was secondary as conducted by Loyless but was developed into a somewhat important operation by Paramount and Southern there can be no doubt. That it was secondary with Loyless does not, however, mean that it was not bona fide. Consideration of the present record as a whole convinces us that applicant as successor to Loyless and Paramount is entitled to authority to transport, over irregular routes, general commodities, with certain exceptions, between Greenville and Atlanta. That such authority is all that is warranted by the evidence seems clear. In no other respects do either the holding out or the actual operations of Paramount

and applicant appear to have been the same or even substantially similar to those conducted by Loyless on and prior to June 1, 1935. Operations other than between Greenville and Atlanta appear to have been sporadic in character and so limited in frequency and volume as to afford no satisfactory basis for a finding that a substantial continuous operation has been conducted.

Upon further hearing, we find that applicant, Southern United Lines, Inc., or its predecessors on June 1, 1935, was, and continuously since has been, in bona fide operation, as a common carrier by motor vehicle, in interstate or foreign commerce, of general commodities, except those of unusual value, dangerous explosives, commodities in bulk, commodities requiring special equipment, and household goods as defined in Practices of Motor Common Carriers of Household Goods, 17 M. C. C. 467, between Greenville, S. C., and Atlanta, Ga., over irregular routes; that applicant by reason of such operation is entitled to a certificate of public convenience and necessity authorizing continuance thereof; and that in all other respects the application should be denied.

Upon compliance by applicant with the requirements of sections 215 and 217 of the Interstate Commerce Act and our rules and regulations thereunder, an appropriate certificate will be issued. An order will be entered denying the application except as indicated.

COMMISSIONER LEE was necessarily absent and did not participate.

42 M. C. C.