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inating to other lading, over regular routes. He does not hold himself out to transport the excepted commodities.

J. H. Horney, doing business as Horney Freight Lines, of Tobias, Nebr., serves, in interstate commerce, Hastings, Glenvil, and Fairfield, and is a member of the bureau and a party to the agency tariff published by it. The interstate rates and classification ratings maintained by Horney and the rail carriers are the same as the intrastate rates and ratings prescribed by the Nebraska State Railway Commission. Three principal ratings, designated as rate scales "1," "intermediate," and "4," are maintained. The prescribed tariff contains less-than-truckload and volume rates subject to minima of 5,000, 8,000, 12,000, 16,000, and 20,000 pounds for each of the three principal classes. The less-than-truckload first-class, intermediate-class, and fourth-class rates, between Hastings and Fairfield, are 40, 28, and 22 cents, and between Hastings and Glenvil, are 36, 25, and 20 cents, respectively. The volume rates between Hastings, and Fairfield and Glenvil, respectively, range from 36 to 20 cents, and 32 to 18 cents for first class; 27 to 17 cents, and 24 to 15 cents for intermediate class; and 21 to 17 cents, and 19 to 15 cents for fourth class. The vast majority of lessthan-truckload ratings are intermediate and fourth class. A large list of articles under the heading "Iron and/or steel articles (in the rough)" are rated "column 45" under which the rates to and from Fairfield are, in less than truckloads, 18 cents, and, in volume, from 17 to 14 cents; and to and from Glenvil, in less than truckloads, 16 cents, and, in volume, from 15 to 12 cents. Some light-loading articles are accorded ratings higher than first class.

The bureau asserts that the respondent's rate is unduly low and constitutes a menace to the revenues of motor common carriers. It also contends that the 15-cent minimum charge is too low. The cost of operation of common carriers by motor vehicle to and from these points is not shown, nor are the highway distances disclosed. An examination of a highway map reveals that these distances are approximately 12 miles to Glenvil and 25 miles to Fairfield. Based upon these distances, the rate of 20 cents yields revenues of 33.3 cents and 16 cents a ton-mile, respectively.

The rate under investigation is 2 cents lower than the fourth-class less-than-truckload rate to Fairfield and is the same as the fourthclass less-than-truckload rate to Glenvil. In Freight, All Kinds, Lincoln, Omaha, and Nebraska Points, 31 M. C. C. 247 and 32 M. C. C. 339, the Commission found just and reasonable any-quantity proportional all-freight rates between numerous points in Nebraska, which were the same as the corresponding intrastate fourth-class rates, including a rate of 31 cents between Omaha and Lincoln, Nebr., 59 miles,

yielding 10.5 cents a ton-mile; and an any-quantity proportional allfreight rate of 20 cents between Lincoln and Exeter, Nebr., 51 miles. The intrastate fourth-class rate between the two points last named was and is 29 cents. As the instant rate applies wholly within Nebraska, it can apply only as a factor of combination rates on shipments originating at or destined to points outside that State, and to this extent it is in the nature of a proportional rate similar to those approved in the proceeding cited above.

We find that the 20-cent any-quantity rate, subject to a 15-cent minimum charge, under investigation, is just, reasonable, and otherwise lawful. An order discontinuing this proceeding will be entered.

CHAIRMAN ALLDREDGE dissents.

42 M. C. C.

No. MC-60749 1

C. D. MCDOUGALD COMMON CARRIER APPLICATION

Decided August 3, 1943

1. Upon reconsideration, findings in prior report, 41 M. C. C. 857, modified. Other reports, 32 M. C. C. 161 and 41 M. C. C. 199.

2. In Nos. MC-60749, MC-61045 (Sub-No. 5), and MC-31046 (Sub-No. 1), Thomas G. Griggs and Charles Franklin Hollis, successors in interest to C. D. McDougald, collectively, found entitled to continue operations, as common carriers by motor vehicle, of general commodities, with exceptions, from and to specified points in North Carolina, South Carolina, and Pennsylvania as described, by reason of the operations of said C. D. McDougald, on and continuously since June 1, 1935.

3. In Nos. MC-60749 (Sub-No. 2), MC-60749 (Sub-No. 4), MC-60749 (Sub-No. 5), MC-61045 (Sub-No. 6), and MC-31406 (Sub-No. 3), public convenience and necessity found to require extension of operations by Thomas G. Griggs and Charles Franklin Hollis, as common carriers by motor vehicle, of specified commodities, from and to points in North Carolina, South Carolina, Georgia, Alabama, Tennessee, Virginia, Maryland, District of Columbia, Delaware, Pennsylvania, New Jersey, New York, Massachusetts, and Connecticut, as described.

4. Issuance of certificates approved upon compliance by the respective applicants with certain conditions, and applications in all other respects denied. Appearances shown in prior reports.

REPORT OF THE COMMISSION ON RECONSIDERATION

BY THE COMMISSION:

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By application No. MC-60749, filed February 8, 1936, C. D. McDougald, doing business as McDougald Transfer Company, of Cheraw, S. C., seeks a certificate of public convenience and necessity, or permit, authorizing continuance of operation as a common or contract carrier by motor vehicle of general commodities, in interstate or foreign commerce, between points in New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, Tennessee,

1 This report also embraces No. MC-60749 (Sub-No. 2), C. D. McDougald Extension of Operations-Southern States; No. MC-60749 (Sub-No. 4), C. D. McDougald Extension of Operations-Northern States; No. MC-60749 (Sub-No. 5), C. D. McDougald Extension of Operations-Massachusetts and Connecticut; No. MC-61045 (Sub-No. 5), Thomas G. Griggs Extension of Operations-Northern States; No. MC-61045 (Sub-No. 6), Thomas G. Griggs Extension of Operations-New England; No. MC-31046 (Sub-No. 1), Charles Franklin Hollis Extension of Operations-Georgia and Other States; and No. MC-31046 (Sub-No. 3), Charles Franklin Hollis Extension of Operations-Tennessee and Alabama. Under the "grandfather" clauses of sections 206 (a) and 209 (a) of the Interstate Commerce Act.

South Carolina, Georgia, and the District of Columbia, over irregular

routes.

By another application, No. MC-60749 (Sub-No. 2), filed September 19, 1939, the same applicant seeks a certificate of public convenience and necessity authorizing extension of operations, in interstate or foreign commerce, as a common carrier by motor vehicle, of general commodities, between Cheraw and points within 50 miles thereof, in South Carolina and North Carolina, on the one hand, and, on the other, points in South Carolina, Alabama, and Tennessee, over irregular

routes.

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By another application, No. MC-60749 (Sub-No. 4), filed December 26, 1939, the same applicant seeks a certificate of public convenience and necessity authorizing extension of operations in interstate or foreign commerce, as a common carrier by motor vehicle of general commodities between points in Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, New Jersey, New York, and the District of Columbia, over irregular routes.

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By another application, No. MC-60749 (Sub-No. 5), filed June 4, 1940, as amended, the same applicant seeks a certificate of public convenience and necessity authorizing extension of operations, in interstate or foreign commerce, as a common carrier by motor vehicle of (1) paper, including scrap or waste paper, paper articles, pulpboard, pulpboard articles, and wood pulp, between Cheraw and points in South Carolina and North Carolina within 50 miles of Cheraw, on the one hand, and, on the other, points in North Carolina, South Carolina, Georgia, Alabama, Tennessee, Virginia, District of Columbia, Maryland, Pennsylvania, New Jersey, Delaware, New York, Connecticut, and Massachusetts, (2) chemicals, including alcohol, from points in New York, New Jersey, Pennsylvania, and Maryland to Rockingham, N. C., and Hartsville, S. C., (3) petroleum products, in containers, from Philadelphia, Pa., to points in South Carolina, (4) stoves and ranges from Rome, Ga., and Greensboro, N. C., to points in North Carolina and South Carolina, and (5) bagging and steel ties from Henderson, N. C., and Augusta, Ga., to points in South Carolina, over irregular

routes.

These proceedings were the subject of an original report and order by division 5, 32 M. C. C. 161, and two reports on reconsideration by the same division, 41 M. C. C. 199 and 41 M. C. C. 857, decided November 19, 1942. Thereafter, upon McDougald's petitions for reconsideration in the "grandfather" clause application, No. MC-60749, we reopened not only that proceeding but also the extension applications,

Except livestock, sand, gravel, coal, high explosives, articles requiring tank trucks or refrigerator trucks for transportation, and articles which on account of weight or bulk cannot be transported by ordinary motor-carrier equipment.

Nos. MC-60749 (Sub-No. 2), MC-60749 (Sub-No. 4), and MC-60749 (Sub-No. 5), as well as MC-61045 (Sub-No. 5), MC-61045 (Sub-No. 6), and MC-31046 (Sub-No. 1). The report of November 19, 1942, hereinafter will be referred to as the prior report.

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Substitutions. Since the hearing in the "grandfather" application, No. MC-60749, applicant has transferred all of the operating rights sought therein. The portion of such claimed rights, covering operations to or from points north of the Potomac River, were transferred to Thomas G. Griggs, of Ruby, S. C., and Griggs was substituted as applicant in respect thereof on April 7, 1942, in No. MCFC-16337. The balance of the claimed rights covering operations to or from points south of the Potomac River were thereafter transferred to Charles Franklin Hollis, of Bennettsville, S. C., and Hollis was substituted as applicant in respect thereof on September 9, 1942, in No. MC-FC-16991, and was found fit, willing, and able to perform the service. Since the hearings in the extension applications, Nos. MC-60749 (Sub-No. 2), MC-60749 (Sub-No. 4), and MC-60749 (SubNo. 5), applicant has transferred all of the operating rights sought in these applications. That portion of the operating rights sought by these applications pertaining to operations from and to points north of the Potomac River were transferred to Griggs, who was substituted as applicant in respect thereof on April 7, 1942, in No. MC-FC16337-A. The balance of the operating rights sought pertaining to operations from and to points south of the Potomac River were transferred to Hollis. In No. MC-FC-16991, authority was sought to substitute Hollis for McDougald in both the "grandfather" and extension proceedings, but the substitution was only authorized insofar as respects the "grandfather" proceeding. In view of the fact that applicant has transferred to Hollis any extended operations to or from points south of the Potomac River, which he otherwise would be granted, we shall substitute Hollis for applicant as to such operations. There is no evidence in the extension proceedings establishing that Hollis is fit, willing, and able to conduct the proposed service. However, in No. MC-FC-16991, Hollis was found fit, willing, and able to perform the services previously performed by McDougald, and we have no doubt that he is fit, willing, and able to conduct any extended operations which may be authorized herein. With a view to avoid

4 No. MC-61045 (Sub-No. 5) has been assigned to the purchaser, covering the operating rights transferred.

No. MC-31046 (Sub-No. 1) has been assigned to the purchaser, covering the operating rights transferred.

No. MC-61045 (Sub-No. 6) has been assigned to the purchaser, covering the operating rights transferred.

No. MC-31046 (Sub-No. 3) will be assigned to the purchaser, covering the operating rights transferred.

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