intermediate points of Pemberton, Hull, and Allerton for pickup and discharge of passengers. Also applicant provided a semiweekly service between Boston and Plymouth. The distance by water between these points is about 40 miles. Authority to perform such service in interstate commerce is sought in order that applicant may join with rail and motor carriers in establishing through interstate routes. Interchange service will be provided at Boston, Plymouth, and Provincetown.

Pemberton, Hull, Allerton, Nantasket Beach, and Provincetown are focal points of vacation colonies, while Plymouth is of historical interest. In addition to its regular service between those points and Boston, applicant proposes to provide nonstop cruises from and returning to points in Massachusetts and cruises between points in Massachusetts. Authority to perform these services is desired in order that applicant may handle excursion groups originating outside of Massachusetts jointly with other carriers. For example, a group originating in Connecticut may come by motor carrier to New Bedford, Mass., for a cruise through the Cape Cod Canal into Massachusetts Bay, returning to that point, or the cruise may be from New Bedford to Boston. In either case the group would return to Connecticut by motor carrier.

Applicant has four vessels under charter for use in its proposed services. The vessels are licensed to carry from 900 to 2,600 passengers. The principal officers in charge of applicant's affairs are experienced in the type of operation proposed. These facts, together with other facts of record, warrant the conclusion that applicant is fit, willing, and able to conduct the proposed operations, and that such operations are required by the present and future public convenience and necessity.

We find that public convenience and necessity require the operations proposed by applicant; that it is fit, willing, and able properly to perform such service and to conform to the provisions of part III of the act and the requirements, rules and regulations prescribed by the Commission thereunder; and that a certificate and order should be issued authorizing such operations, subject, however, to general conditions which are necessary to carry out, with respect to such operations, the requirements of part III of the act, and the orders, rules, and regulations of the Commission thereunder.

An appropriate certificate and order will be issued.

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No. W-587 (SUB-No. 16)

FOSS LAUNCH & TUG CO. EXTENSION-OLYMPIA

Submitted June 11, 1951. Decided August 1, 1951

Applicant's proposed extended freight-car ferry operation to include service between Seattle and Tacoma, Wash., and Olympia, Wash., found not to be required by public convenience and necessity. Application denied.

Don Cary Smith for applicant.

Joseph O. Earp for intervener.

Roscoe Krier and L. W. Hobbs for protestants.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MAHAFFIE, ROGERS, AND JOHNSON

BY DIVISION 4:

Exceptions to the report proposed by the examiners were filed by applicant and intervener, and protestants replied thereto. Exceptions and requested findings not specifically discussed in this report nor reflected in our findings or conclusions have been considered and found not justified.

By application filed October 31, 1949, Foss Launch & Tug Co., under section 309 (c) of the Interstate Commerce Act, seeks a certificate of public convenience and necessity authorizing extension of its operations as a common carrier to include a freight-car ferry service between Seattle and Tacoma, Wash., on the one hand, and, on the other, Olympia, Wash. Northwest Towboat Association intervened in support of the application. Northern Pacific Railway Company and Union Pacific Railroad Company, each of which now serves Olympia by operations over its own rails, oppose the application.

Pursuant to fifth amended certificate of July 29, 1949, in No. W587 et al., applicant is at present authorized to operate as a common carrier by non-self-propelled vessels with the use of separate towing vessels and by towing vessels (1) in the transportation of commodities generally (not including freight cars, loaded or empty, in the performance of a freight-car ferry service) between points in Washington on Grays Harbor, Puget Sound, the Straits of Georgia and Juan de Fuca, and interconnecting and tributary waterways, (2) in the performance of general towage between points along the Pacific coast, including points on Grays Harbor and points on Puget Sound,

the Straits of Georgia and Juan de Fuca, and interconnecting and tributary waterways, and (3) in the performance of freight-car ferry service (a) between Seattle and Tacoma, Wash., on the one hand, and Shelton and Port Gamble, Wash., on the other, (b) between Tacoma, on the one hand, and Keyport and Indian Island, Wash., on the other, and (c) between Seattle, on the one hand, and Kennydale and Houghton, Wash., on the other. As noted, among other points, it is authorized to perform a freight-car ferry service between Seattle and Tacoma, and Shelton. Olympia is about 6 miles off the route traversed by applicant in its operations to and from Shelton. Eight hours are required to make the run from Tacoma to Shelton, and it is estimated that about 6 hours transit time would be required in ferrying freight cars from Tacoma to Olympia. Return trips to Tacoma would require about the same amount of time.

Applicant has been in operation as a water carrier between points in the Puget Sound area for more than 50 years. It owns and operates a considerable number of barges and towing vessels. Two of the barges are fitted with railroad tracks and are used in car ferry service between the points authorized in its certificate. Other vessels suitable for ferrying rail cars are available when needed. If applicant were to operate a freight-car ferry service to and from Olympia it would be necessary to install at that port a facility known as a slip or connecting apron, and to switch cars to and from the ferry at periods other than low tide. Applicant has available a slip, acquired from an agency of the Federal Government at a cost of approximately $9,000, which is suitable for use at Olympia. It has a 30-year contract with the port of Olympia for the use of certain of its facilities in performing the proposed service. As of July 31, 1950, it had assets totaling $3,951,664 of which $870,060 were current. Applicant had current liabilities of $747,998, long-term debts and advances payable of $351,580, and capital liabilities of $2,852,086 consisting of capital stock of $530,180 and earned surplus of $2,321,906. Its fitness and ability to operate a freight-car ferry service between the ports covered by the application is not questioned.

Olympia, population 15,711, is the capital of Washington. Geographically it is northward from Portland, Oreg., and southwestward from Seattle and Tacoma. The distance from Tacoma to Olympia through navigable waters of Puget Sound and an inland connecting waterway known as Budd Inlet is about 36 miles. Four rail lines, Chicago, Milwaukee, St. Paul and Pacific, Great Northern, Northern Pacific, and Union Pacific, serve Seattle and Tacoma, and applicant publishes joint rates with those carriers which apply to and from the Puget Sound ports now served in car ferry service. The Northern

Pacific and Union Pacific serve Olympia and provide it with daily train service. From Tacoma to Olympia the distance approximates 33 miles by way of main line of the Northern Pacific southward to St. Clair, Wash., thence westward over a branch line, and about 42 miles by way of main line of the Union Pacific southward to East Olympia, Wash., thence westward over a branch line. If the authority here sought is granted, applicant would join with the Milwaukee and Great Northern in the establishment of through rates to apply by rail to and from Seattle and Tacoma, and by car ferry between those points and Olympia.

The port of Olympia, a municipal corporation, was created in 1924, and since that time has expended more than $1,200,000. The industrial area of Olympia, and the terminal railroad tracks, some of which are owned by the port, are in the northern part of the city near the port docks. The lines of the Northern Pacific and Union Pacific enter the city at the southeastern and southern boundaries, respectively. To reach the industrial area the two railroads, pursuant to franchise, operate for an undisclosed distance over a single track which traverses a street running north and south, through the heart of the city, and crossing east-west streets on which at certain periods of the day there is a large volume of automobile traffic. No underpass or overpass is provided at any of these street intersections, and it is not unusual for east-west automobile traffic to be blocked for several minutes by lengthy trains of freight cars en route to or from the industrial section. City and chamber of commerce officials, and a longshoremen's union representative, adduced evidence in support of the proposed car ferry service. They are hopeful that it will diminish the congestion by diverting some freight traffic from rail lines operating through the busy streets. They also are interested in obtaining for the city a car ferry connection with two additional trunk-line railroads which they believe will contribute to the industrial growth of Olympia and at the same time enlarge export movements by way of that port.

Witnesses representing four shippers testified in support of the application. Olympia Brewing Company operates a plant at Tumwater, Wash., a community suburban to Olympia. It utilizes the services of motor and rail carriers in the movement of beer from its plant and for incoming traffic such as hops, malt, rye, and empty containers. In 1949 and the first 6 months of 1950 it shipped 164,144 and 86,338 tons, respectively. This shipper competes with other breweries in cities located on Puget Sound which have access to four transcontinental railroads. It claims that branch-line rail service to Olympia and arbitrary rates preclude the marketing of its product at many points reached by competitors. If the proposed car ferry connection

285 I. C. C.

is made available, the shipper is of the opinion that such service will open up new territories to it and that it will be in a better position to compete with other shippers in the distribution of beer. Rail shippers at Olympia are restricted to routing cars south-bound through the Portland gateway. The brewing company stresses the point that it would be most advantageous to it to be able to route cars over the Great Northern by way of the Bieber gateway when rail congestion would occur at the Portland gateway.

Western Metalcraft Company, a manufacturer of aluminum kitchen cabinets and other metal products, ships from 75 to 100 carloads of metal products yearly from Olympia, about half of which moves to points in California and southern Oregon. The majority of its freight moves by truck to west coast points. It has received satisfactory service from the rail lines serving Olympia but fears that in the event the Portland gateway becomes congested as it did during the war, it would be hampered in marketing its products in California and southern Oregon. Establishment of the proposed car ferry service is desired because it would make possible an alternate route to points south of Olympia. This shipper has been unsuccessful in its efforts to obtain lower rates for the movement of its products in rail service. It is of the opinion that two additional rail lines would enhance its chances of obtaining more favorable rates.

Wood Preserving Company is engaged in the business of treating poles with creosote, and maintains a large treating plant at Olympia. Most of the poles sold by it are moved to the Dakotas and Montana for use in rural electrification. This shipper believes it would receive some benefits from direct routes into those territories over the lines of the Milwaukee and Great Northern.

Reliable Welding Works uses from 75 to 100 tons of steel monthly in the manufacture of bulk storage tanks. The steel moves in steamship service from eastern origins to Seattle, and thence rail service to Olympia. The shipper has experienced some delay in receiving shipments from Seattle by rail. It has not attempted to use barge service between Seattle and Olympia. However, this shipper is of the opinion that establishment of the proposed car ferry operation to Olympia would result in improved rail service to itself and other Olympia shippers.

The Northwest Towboat Association, an association of approximately 25 tug and barge companies operating on Puget Sound, supports applicant's proposed service. It is of the opinion a car ferry connection to Olympia would aid in stimulating the industrial growth of that community and thereby contribute to the over-all transportation revenue and traffic of other carriers. Other testimony along the