recommendation of an appropriate order thereon. Hearing has been held. Trunk-line rail carriers and M. Moran Transportation Lines, Incorporated, opposed the application but offered no evidence.

Applicant has two trucks but at the present he is operating only one, which he drives himself. His entire operations now are confined to transportation in intrastate commerce. At the hearing it developed that applicant desires only to transport malt beverages and empty malt-beverage containers over the specified route between Rochester and Wilkes-Barre as a contract carrier for one shipper. The application therefore is considered one for a permit authorizing operation as a contract carrier.

Applicant instituted operations on January 17, 1932, and ceased operations in 1934 because of illness. Applicant made only one trip in 1932 to Scranton, two trips in 1933, and none in 1934, because, as he stated, there was no beer distributor located in Scranton or WilkesBarre at the time. Applicant voluntarily abandoned all operations in 1934 because of illness and made arrangements with a friend, who is a common carrier in interstate commerce, to handle his business. No consideration was involved and the friend agreed to turn back the beer transportation when applicant was able to take it over himself. There was no distributor in Scranton or Wilkes-Barre from September 1935 to December 1936, and, consequently, no beer was transported to these points during that time for the company for which applicant wishes to transport.

This cessation of operation by applicant for such a long period of time, his failure to renew operation when he was able, and his neglect in failing to file his application within the statutory limit, when he had advice or could have easily obtained it, is a cause within the control of applicant, and, therefore, this cessation of operation defeated any "grandfather" rights applicant may have had.

Testimony adduced at the hearing disclosed that the friend of applicant has a tariff on file with the Commission covering the transportation of beer from the point and to the points for which application was made and that he does not intend to withdraw it from his tariff. There is at least one other carrier which holds itself out, and has a tariff on file, for the transportation of beer to the points involved. The volume of beer to these points is not large and the present carriers can adequately serve the shipper and the points involved. The shipper failed to appear on behalf of applicant and apparently would in nowise be damaged by poor service if this application were denied, as the present transportation facilities are adequate.

The examiner finds that applicant has failed to establish that the proposed operation will be consistent with the public interest and the policy declared in section 202 (a) of the act; and that the application should be denied.

It is recommended that the appended order be entered.

No. MC-88392 (SUB-No. 1)

MIKE JAMES VRABLE EXTENSION-SALISBURY

Decided July 11, 1938

Operation by applicant as a contract carrier by motor vehicle, of malt beverages and empty containers, between Norfolk, Va., and Salisbury, Md., over a specified route, found consistent with the public interest and with the policy declared in section 202 (a) of the Motor Carrier Act, 1935. Permit granted.

Mike James Vrable for applicant.

REPORT OF THE COMMISSION

DIVISION 5, COMMISSIONERS EASTMAN, CASKIE, AND ROGERS

BY DIVISION 5:

On June 21, 1938, the following recommended report and a recommended order appended thereto, filed with us by joint board No. 226, were served on the parties. No exceptions to the order have been filed, and, not having been stayed or postponed by us, it has become effective as our order.

REPORT AND ORDER RECOMMENDED BY JOINT BOARD NO. 226, COMPOSED OF HAROLD E. WEST OF MARYLAND AND H. LESTER HOOKER OF VIRGINIA

By application filed May 10, 1938, Mike James Vrable, of Petersburg, Va., doing business as M. J. Vrable, seeks a permit as a contract carrier authorizing operations, in interstate or foreign commerce, by motor vehicle, of malt beverages and empty containers for such beverages, between Norfolk, Va., and Salisbury, Md., as follows: From Norfolk across the ferry to Cape Charles, Va., thence over U. S. Highway 13 to Salisbury, and return, serving no intermediate points.

It appearing, upon investigation of the matters involved in the application, that no hearing in respect thereof might be necessary, the application was referred to joint board No. 226 for appropriate

proceedings in accordance with the provisions of the Motor Carrier Act, 1935. No protest against the granting of the application has been filed.

In Vrable Common Carrier Application, 7 M. C. C. 393, effective May 20, 1938, applicant was granted a permit authorizing operation as a contract carrier by motor vehicle of malt beverages and containers between Norfolk, Va., on the one hand, and points in North Carolina, on the other, over specified routes. The service was performed under contract with Atlantic Ice & Fuel Company, which operates a brewery at Norfolk. Applicant's service for the shipper has been very satisfactory. By the instant application applicant merely proposes to extend his present operations for this shipper so as to permit him to carry malt beverages and containers between Norfolk and Salisbury.

Atlantic Ice and Fuel Company intends to open a new plant and warehouse in Salisbury in the near future, and desires that applicant provide additional service to this point. It does not appear that this operation would be competitive with that of any other carrier. Applicant owns six units of equipment which he uses or proposes to use in his new operations. Applicant has demonstrated his efficiency in conducting his existing operations, and has also manifested a cooperative attitude in his observance of the Motor Carrier Act, 1935, and the Commission's rules and regulations thereunder. He is financially and otherwise able to render satisfactory service in connection with the additional service embraced in this proceeding.

The joint board finds that applicant is fit, willing, and able properly to perform the service of a contract carrier by motor vehicle and to conform to the provisions of the act and the lawful requirements, rules, and regulations of the Commission thereunder; that operation by applicant as a contract carrier by motor vehicle, in interstate or foreign commerce, of malt beverages and empty containers, between Norfolk and Salisbury, from Norfolk across the ferry to Cape Charles, thence over U. S. Highway 13 to Salisbury, and return, serving no intermediate points, will be consistent with the public interest and with the policy declared in section 202 (a) of the act; and that an appropriate permit should be granted upon compliance by applicant with all requirements of sections 215 and 218 of the act, with the rules and regulations thereunder, and with the requirements established in Contracts of Contract Carriers, 1 M. C. C. 628.

It is recommended that the appended order be entered.

No. MC-46240 (SUB-No. 1)

CLIFTON M. DENMAN EXTENSION-INDIANA

Decided July 11, 1938

Operation by applicant as a contract carrier by motor vehicle, in interstate or foreign commerce, of specified commodities, between Port Huron, Mich., on the one hand, and points in Indiana and the Chicago, Ill., commercial zone, on the other, over irregular routes, found consistent with the public interest and with the policy declared in section 202 (a) of the Motor Carrier Act, 1935. Permit granted.

Robert W. Loser for applicant.

REPORT OF THE COMMISSION

DIVISION 5, COMMISSIONERS EASTMAN, CASKIE, AND ROGERS BY DIVISION 5:

On June 21, 1938, the following recommended report and a recommended order appended thereto, filed with us by the examiner, were served on the parties. No exceptions to the order have been filed, and, not having been stayed or postponed by us, it has become effective as our order.

REPORT AND ORDER RECOMMENDED BY THE EXAMINER

By application filed July 16, 1937, Clifton M. Denman, of Marysville, Mich., seeks authority to extend his operation as a contract carrier by motor vehicle, in interstate or foreign commerce, of copper, brass, and bronze products, of equipment, materials, and supplies used in or incidental to the manufacture of these products, and of office supplies and equipment, between Port Huron, Mich., on the one hand, and points in Indiana, Ohio, and the Chicago, Ill., commercial zone on the other, over irregular routes. No protest to the granting of the application has been filed.

It appearing, upon investigation of the matters involved in the application, that no hearing in respect thereof might be necessary, the application was referred to the examiner for appropriate proceedings, in accordance with the Motor Carrier Act, 1935.

The instant application embraces the same territory as that contained in the "grandfather" application filed in Docket No. MC46240. Issuance of a permit in No. MC-46240 was authorized by the

1

1 As established by the Commission in Chicago, Ill., Commercial Zone, 1 M. C. C. 673.

Commission in its order dated September 22, 1937, to transport the commodities specified herein, between Port Huron, on the one hand, and points and places in Ohio, on the other, over irregular routes, upon compliance by applicant with certain conditions set forth therein. The effective date of the order was postponed to November 22, 1937, and later stayed by the Commission upon petition of applicant. The instant application was filed as a precautionary measure in the event any part of the "grandfather" application were denied.

Applicant transports the commodities specified herein under contract (a copy of which has been filed with the Commission) with the Mueller Brass Company of Port Huron, hereinafter called the brass company. Applicant is the sole interstate contract carrier of the brass company and has been so engaged since 1928. Operations proposed herein will not result in any loss to existing transportation agencies now serving the territory but will merely supplement their operations. Applicant's equipment is kept in the vicinity of the brass company's plant and is available on call at any time of day or night. In a great many instances the available service is inadequate and it is to take care of these emergencies that applicant seeks authority herein. Applicant has been satisfactorily conducting this type of service for several years.

Subsequent to July 1, 1935, the brass company located a warehouse at Chicago, and since that time applicant has transported frequent shipments between Port Huron and Chicago under the misapprehension that he had "grandfather" rights thereto. Applicant will obtain tonnage at various points throughout the territory for which authority is sought herein and transport this tonnage to the brass company's plant at Port Huron; from the latter point applicant will transport manufactured products of the brass company to various consignees located in the territory embraced herein. The contract between applicant and the brass company evidences a desire on the part of the latter for the type of service herein proposed. In addition, the fact that applicant has been transporting shipments to Chicago and other points in the territory embraced in this application is further evidence of a need for this type of service.

As issuance of a permit to applicant has been authorized by the Commission in No. MC-46240, referred to above, for operations between Port Huron, on the one hand, and points and places in Ohio, on the other, over irregular routes, that part of the instant application wherein applicant seeks like authority will be denied.

Applicant has been in the transportation business for over 10 years, employs experienced drivers, and has special equipment for the transportation of the commodities specified herein. His equipment