carriers, this Commission and the Supreme Court have recognized that the service provided by Seatrain is superior to that of other coast wise lines. Seatrain Lines, Inc., v. Akron, C. & Y. Ry. Co., 226 I. C. C. 7, 20-21, and United States v. Pennsylvania R. Co., 323 U. S. 612.

There can be no question that port areas, such as Savannah and New York, are dependent in an important degree upon water transportation for their growth and development. In War Shipping Administration T. A. Application, 260 I. C. C. 589, 591, we stated that:

The dependency of ports and coastal areas upon the existence of water transportation is well known. The economy of such areas, to a large extent, is founded upon the availability of such transportation, without which a large part of their economy would not have been developed, and with the discontinuance of which a large part of their normal economic activity will cease to exist.

It is our view that in determining whether there exists an immediate and urgent need for transportation and whether there is available carrier service capable of meeting that need, we are not limited merely to ascertaining if there are carriers who are physically capable of performing the service, but that we also may consider the economic needs of commerce and industry for a particular type of transportation service.

Moreover, the Commission, division 4, has repeatedly found that communities and shippers are entitled to adequate service by water as well as by rail and motortruck. Pan-Atlantic S. S. Corp. Extension-Port Saint Joe, 265 I. C. C. 169, Inland Waterways Corp. Extension of Operations-Omaha, 265 I. C. C. 207, Norfolk, Baltimore and Carolina Line, Inc., Ext.-James R., 265 I. C. C. 247, and Yankton Barge Line Common Carrier Application, 265 I. C. C. 271.

For many years prior to 1942 shippers had available to them regular and dependable coastwise steamship service between New York and Savannah, a service which influenced the location of industries and contributed materially to their development. This service was suspended in that year, as was coastwise service between all other ports. Since 1945 such service has been resumed at most of the principal Atlantic and Gulf ports, Savannah being one of the very few exceptions. In some cases reestablishment of certain of the routes has been made possible by grants of new operating rights. In War Shipping Administration T. A. Application, supra, page 593, we found that the cessation of the war made it immediately necessary to resume the water services which were suspended by reason of the war, including the route between New York and Savannah. Subsequent to the decision in that proceeding, division 4 granted temporary authority to Newtex Steamship Corporation and Pan-Atlantic Steamship Corporation, under circumstances and on showings substantially similar to those here before us, to extend their operations to various Atlantic and Gulf ports which they were not theretofore authorized

to serve.

There is no valid ground on which the circumstances of this application can be distinguished from those of the applications on which temporary authority was granted to Newtex and PanAtlantic. Questions raised by the protesting rail carriers concerning rates and per diem arrangements and settlements are not pertinent to the issue to be determined. The statements of many shippers supporting the application indicate that their need for service between New York and Savannah such as existed before the war has not been met and that there continues to be an immediate and urgent need for coastwise steamship service between the two ports.

We find that there is an intermediate and urgent need for applicant's proposed service as a common carrier by self-propelled vessels in the transportation of commodities generally between the ports of New York and Savannah, and that there is no carrier service capable of meeting such need.

An appropriate order authorizing the service for 180 days will be entered.

COMMISSIONERS ROGERS, JOHNSON, and MITCHELL dissent.

COMMISSIONERS PATTERSON and CROSS were necessarily absent and did not participate in the disposition of this proceeding.

Newtex was so authorized to serve Boston, Philadelphia, Baltimore, and Port Isabel, Tex. (No. W-896, subnumbers 1, 2, 4, and 5); and Pan-Atlantic, Baltimore, Charleston, S. C., and Miami and Port St. Joe, Fla., No. W-376, subnumbers 4 and 6.

285 I. C. C.

No. FF-38 (SUB-No. 3)1

ABC FREIGHT FORWARDING CORPORATION
EXTENSION-MASSACHUSETTS

Submitted July 16, 1951. Decided November 20, 1951

Extension of service by applicant to include the forwarding of commodities generally (1) between points in Ohio, Kentucky, Michigan, Indiana, Illinois, Wisconsin, Minnesota, and Missouri, on the one hand, and, on the other points in Connecticut, Rhode Island, Massachusetts, and Maryland (except Baltimore), Adams, Delaware, Montgomery, and Philadelphia (except city of Philadelphia) Counties, Pa., and Camden County, N. J., (2) from points in Connecticut, Rhode Island, and Massachusetts to points in Colorado and Maryland, Adams, Delaware, Montgomery and Philadelphia Counties, Pa., and Camden County, N. J., and (3) from points in Connecticut, Rhode Island, Massachusetts, and Maryland, Bronx, Kings, Nassau, New York, Queens, Richmond, and Westchester Counties, N. Y., Bergen, Essex, Hudson, Middlesex, Passaic, Union, and Camden Counties, N. J., and Adams, Delaware, Montgomery, and Philadelphia Counties, Pa., to points in Alabama, Florida, and Georgia, found to be consistent with the public interest and the national transportation policy. Third amended permit issued, and application in all other respects denied.

H. B. Hartman, Arthur J. Brown, and Leon Mitchell for applicant. James L. Givan, Robert E. Webb, George H. Cain, and Edward F. Holzbauer for protestants.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MAHAFFIE, ROGERS, AND MITCHELL BY DIVISION 4:

Exceptions to the report proposed by the examiner were filed by protestants. Our conclusions differ somewhat from those recommended by the examiner. Exceptions and requested findings not discussed in this report nor reflected in our findings or conclusions have been given consideration and found not justified.

By application filed August 14, 1950, the ABC Freight Forwarding Corporation seeks a permit, under the provisions of section 410 of the Interstate Commerce Act, authorizing an extension of its service to include the forwarding, in interstate commerce, of commodities

1 This report also embraces, for the purpose of giving effect to the determination herein, Nos. FF-38, Arthur J. Brown Freight Forwarder Application, FF-38 (Sub-No. 1), Arthur J. Brown Freight Forwarder Application-Extension, and FF-38 (Sub-No. 2), ABC Freight Forwarding Corporation Extension-Maryland.

generally between points in Colorado, Kentucky, Missouri, Illinois, Indiana, Michigan, Minnesota, Wisconsin, Ohio, Pennsylvania, New York, New Jersey, Delaware, Maryland, Massachusetts, Connecticut, Rhode Island, and the District of Columbia; and between these points, on the one hand, and the other, points in Georgia, Alabama, and Florida, except to the extent such service is authorized in its present permit. Applicant is at present authorized to perform freight-forwarder service between the District of Columbia, Baltimore, Md., Philadelphia, Pa., Wilmington, Del., points in seven counties in New York,2 six counties in New Jersey,3 five counties in Illinois,* and Lake County, Ind., on the one hand, and, on the other, points in Colorado, Kentucky, Missouri, Illinois, Indiana, Michigan, Minnesota, Wisconsin, Ohio, Pennsylvania, New York, and New Jersey. Acme Fast Freight, Inc., Universal Carloading & Distributing Co., Inc., and National Carloading Corporation, hereinafter called Acme, Universal, and National, respectively, or protestants, and the Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Employees, hereinafter called the brotherhood, intervened at the hearing in opposition to the application. Pittsburgh Stores Fast Freight and Pan-Atlantic Carloading Dispatch Service, Inc., filed protests, but were not represented at the hearing.

Applicant was incorporated in 1946 under the laws of the State of New York for the purpose of continuing the freight-forwarder operations of Arthur J. Brown. The latter individual had successfully conducted service as a freight forwarder since 1941, and is now the principal stockholder of the corporation, which has conducted operations in its name since November 1946. Applicant neither controls, is controlled by, nor is under common control or affiliated with, any rail, motor, or water carrier subject to the act. Balance sheets as of December 31, 1949, and April 30, 1950, showing total assets of $293,C86.81 and $514,611.84, and liabilities aggregating $136,987.46 and $309,392.11, as of these dates, respectively, reflect a net worth of $156,699.35 and $205,219.73 as of the same dates, respectively. The latter amounts, together with the net worth of $81,118.02, as of November 30, 1948, as shown in the report in ABC Freight Forwarding Corp. Extension-Maryland, 265 I. C. C. 646, are an indication of applicant's ability and success in freight-forwarder operations.

Applicant owns no real estate, but in its present operations it leases office and terminal space at Denver, Colo., Chicago, Ill., Cincinnati, Ohio, Indianapolis, Ind., Louisville, Ky., St. Louis, Mo., St. Paul, Minn., Detroit, Mich., New York, N. Y., Philadelphia, Pa., Baltimore,

* Bronx, Kings, Nassau, New York, Queens, Richmond, and Westchester Counties, N. Y. Bergen, Essex, Hudson, Middlesex, Passaic, and Union Counties, N. J.

4 Cook, DuPage, Kane, Lake, and Will Counties, Ill.

Md., and Newark, N. J. In the handling of shipments in pickup and delivery services, it utilizes the services of local truckers within terminal areas, and in service between origin and destination off-line points, on the one hand, and terminal stations, on the other, it uses intrastate and interstate motor carriers. The operations within the additional territory herein sought will be similarly conducted. In the New England area it contemplates initial establishment of terminal stations at Boston, Mass., Providence, R. I., and New Haven, Conn., and in the southern States at Atlanta, Ga., Birmingham, Ala., and Jacksonville, Fla. Surveys of existing available terminal facilities at these points have been undertaken and, pending the outcome of this proceeding, tentative arrangements have been made for the use of space at suitable nonrailroad industrial properties with adequate railroad sidings, and so located, in relation to rail classification yards, as to minimize difficulty in obtaining necessary switching service in sufficient time for the inclusion of consolidated cars in scheduled trains between terminal points. As sufficient traffic develops, it is planned to establish additional terminal stations at other appropriate and strategically located points. Based upon past experience in inaugurating and improving its service within authorized territory, applicant anticipates little difficulty in making satisfactory arrangements with operators of motor vehicles and in the ultimate establishment of a sufficient number of terminal stations to serve adequately the additional territory. Its present stations are operated by experienced personnel, and additional personnel for use as station managers in the additional territory are in training.

The application for extended territory was filed because of numerous requests from prospective customers, and at the hearing 32 such persons testified in applicant's behalf. The traffic of these shippers, considered collectively, covers a broad range of commodities, such as variety and department store merchandise, wearing apparel of all descriptions, piece goods, novelty jewelry, glassware, radios, phonographs and accessories, phonograph records, beautician equipment and supplies including toilet preparations, scales, clothes hampers, waste baskets, brush holders, ladies' dress patterns, writing and drawing ink, adhesive paste, sealing wax, shoe polish and dressing, snuff, aircraft electronic and radar equipment, essential oils, perfume oils, balsams and aromatic chemicals. Practically all of these commodities move from points in the three New England States to points in the Midwest covered by applicant's present operations and from points

5

Boston, Worcester, Fall River, Mansfield, New Bedford, Attleboro, Springfield, Lynn, Somerville, Brockton, Taunton, Lowell, and Webster, Mass.; New Haven, Hartford, Norwich, Norwalk, South Norwalk, Manchester, Jewett City, Plainfield, Sterling, Glasgow, Bridgeport, and New Britain, Conn., and Providence, Woonsocket, Pawtucket, Apponaug, Westerly, and Lonsdale, R. I.

285 I. C. C.