East Moline and Freeport, Ill., and St. Louis; a manufacturer of steel straps at Chicago; a producer of shoes and one of packaged food products, both at Beloit; a manufacturer of ink at Menomonie, Wis., a wholesale jobber of railroad and hardware supplies at Chicago, for export; a manufacturer of metal building materials at Cicero, Ill.; an export agency, responsible for the routing of electrical appliances from 75 to 100 origins in the considered territory, for export; a company in Cincinnati, that manufactures brass articles principally for plumbers, shipping, insofar as here material, to Washington, D. C., Baltimore and Sparrows Point, Md., Norfolk, Newport News, Portsmouth, Richmond, and Rosslyn, Va.; a mercantile company at Baltimore that deals in a full line of hospital supplies which it exports; a nationwide mail-order house with a regional plant or warehouse in Baltimore; and a chain-store concern dealing in general merchandise with headquarters in Baltimore and approximately 900 towns as sources of supply in the considered origin States. These companies, considered collectively, originate between 1,000 and 1,425 tons of freight monthly in the involved origin area for movement into Maryland, Virginia, Delaware, and the District of Columbia. They desire applicant's service and indicate that they expect to use it if authorized. Several shippers desire the proposed service particularly in order to handle export traffic via Hampton Roads, Va., which generally embraces the port cities of Portsmouth, Newport News, and Norfolk. The Federal Government has made great improvements in this harbor area until now it is said to be one of the largest and finest in the world. An official of the State Port Authority of Virginia indicated that he was unaware of any freight forwarder offering service from Chicago to Norfolk, either by rail or by truck, and that the lack of such service has been one of the most detrimental factors affecting the use of this port area. The port official unqualifiedly supports this application as promoting the best interests of the public. Many of the supporting shippers also indicated their desire for statewide delivery service by applicant, particularly in Virginia.

Acme, a freight forwarder holding nationwide operating rights, operates scheduled cars from Chicago to Norfolk, Richmond, and Roanoke, Va., Baltimore, and Washington, D. C., and occasional cars from Cincinnati to points in Virginia when the tonnage is sufficient to warrant such service. Traffic for points in Delaware is distributed from a car which breaks bulk at Philadelphia. The cars from Chicago to Norfolk move 2 or 3 times a week, containing both domestic and export traffic. Acme emphasizes certain alleged inconsistencies in applicant's position and representations in the present proceeding and those maintained in the prior proceeding in which it contended that the proposed export service would be superior to that provided

285 I. C. C.

by the existing forwarders because it would be specialized service restricted to export only. It questions applicant's financial ability and submits that the amended permit here sought, if granted, will be dormant for the most part for the reason that any such grant of authority would be based on misapprehensions as to the type of service that will be offered.

As a prerequisite to the issuance of operating authority under part IV, we must find that an applicant is ready, able, and willing properly to perform a proposed service, and that such service would be consistent with the public interest and the national transportation policy. From the evidence before us in this proceeding, we cannot make those findings. Applicant's operations for 11 months of 1951 resulted in a net loss of nearly $10,000. Its balance sheet, dated November 30, 1951, shows that its current liabilities exceed its current assets by approximately $1,200. It is clear, therefore that applicant is in unsound financial condition. At the time of the hearing in June 1952, applicant submitted no other balance sheet or other financial statement to show any material improvement in its financial status. It would not be consistent with the public interest and the national transportation policy to grant additional authority to an applicant which appears practically on the brink of insolvency, merely on the expectation that more extensive operations might enable the applicant to improve its financial position.

We find that applicant has failed to establish that its proposed operation as a freight forwarder in interstate commerce will be consistent with the public interest and the national transportation policy, and that the application should be denied.

An appropriate order will be entered.

285 I. C. C.

FINANCE DOCKET No. 172391

COMMERCIAL BARGE LINES, INC., PURCHASE, ETC.

Submitted December 12, 1952. Decided March 3, 1953

1. Purchase by Commercial Barge Lines, Inc., of a portion of the operating rights and property of Greene Line Steamers, Inc., approved and authorized, and provision made for issuance of superceding certificates to vendee and vendor.

2. Acquisition by Commercial Petroleum & Transport Co. of control of the operating rights above described through stock ownership of Commercial Barge Lines, Inc., and by J. Newton Rayzor, J. W. Hershey, E. D. Butcher, E. R. Barrow, M. C. Butcher, and Gus S. Wortham as owners of a majority of capital stock of Commercial Petroleum & Transport Co., approved and authorized.

James W. Wrape for applicants.

REPORT OF THE COMMISSION

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

By a joint application filed February 12, 1951, as amended December 8, 1952, Commercial Barge Lines, Inc., an Indiana corporation, hereinafter sometimes called Commercial, and Greene Line Steamers, Inc., an Ohio corporation, referred to as Greene Line, seek authority under section 5 (2) of the Interstate Commerce Act, as amended, for the purchase by the former of a portion of the operating rights and property of the latter for $4,500. Commercial Petroleum & Transport Co., hereinafter sometimes referred to as Transport, which controls vendee through ownership of all of its voting capital stock, and J. Newton Rayzor, J. W. Hershey, E. D. Butcher, E. R. Barrow, M. C. Butcher, and Gus S. Wortham, individuals, who control Transport through ownership of a majority of its outstanding capital stock, concurrently seek authority under the same section of

1 And, for the purpose of giving effect to the determinations herein, No. W-751, Commercial Barge Lines, Inc., Common Carrier Application, Commercial Barge Lines, Inc., Extension Applications, Commercial Barge Lines, Inc., Extension-Automobiles; No. W-751 (Sub-No. 2), Commercial Barge Lines, Inc., Extension-Cincinnati; No. W-751 (Sub-No. 3), Commercial Barge Lines, Inc., Extension-Missouri River; No. W-751 (Sub-No. 5), Commercial Barge Lines, Inc., Extension-Mount Vernon; No. W-751 (Sub-No. 7), Commercial Barge Lines, Inc., Extension-Mayersville; No. W-438, Greene Line Steamers, Inc., Common Carrier Application, Greene Line Steamers, Inc.-Extension, Upper Mississippi; and No. W-438 (Sub-No. 1), Greene Line Steamers, Inc., ExtensionRemoval of Limitations.

the act to acquire control of the operating rights to be purchased. No representations have been made by State authorities, and no objection to the granting of the application has been presented.

Vendee's corporate history, affiliations and its control by Transport which, in turn, is controlled through stock ownership by the individuals named above, are described generally in Commercial Petroleum & Transport Co.-Control, 58 M. C. C. 439, and need not be repeated herein. Pursuant to seventh amended certificate issued January 25, 1949, in No. W-751 and others, vendee is authorized to serve ports located in the States of Ohio, Kentucky, Indiana, Arkansas, Tennessee, Illinois, Alabama, Missouri, Mississippi, Minnesota, Louisiana, and Texas. Transport is the beneficial owner of all the common stock of Commercial Carriers, Inc., a motor carrier subject to part II of the act, and of a substantial amount of nonvoting stock of vendee.

In Finance Docket No. 15832, Greene Line Steamers, Inc., Lease, 265 I. C. C. 813, decided December 8, 1947, we authorized, among other things, Commercial to lease, for a period of 3 years, that portion of Greene Line's operating rights granted in No. W-438, authorizing operations as a common carrier by water by self-propelled vessels and by non-self-propelled vessels with the use of separate towing vessels in the transportation of commodities generally between ports and points along the Ohio River from Huntington, W. Va., to Louisville, Ky., inclusive, together with the non-self-propelled steel doubledecked automobile barge Stogie White. By order of December 13, 1950, the expiration date of the lease was extended to February 14, 1951; and by order of February 13, 1951, the term of the lease was further extended until final disposition is made of the instant application. In effect, applicants now seek authority to purchase the operating rights and property covered by the lease approved in Finance Docket No. 15832.

In consideration of the payment of $2,000, Greene Line granted an exclusive and noncancellable right and option to Waterways Enterprises, Inc., to purchase the operating rights and property herein involved. Thereafter, Commercial paid to Waterways Enterprises, Inc., the sum of $2,500 as consideration for the assignment of the option to it.

For many years prior to the lease of its operating rights to Commercial, Greene Line and its predecessors were engaged in the transportation of general commodities between the authorized points on the Ohio River. In this service, the principal traffic consisted of automobiles and general freight moving between Cincinnati and Louisville on a weekly schedule.

Commercial is the largest inland water carrier engaging in the handling of automobiles in specially designed vessels. Officers of the company have specialized in that particular traffic since 1936, and are well versed in the practices, policies, and needs of automobile manufacturers utilizing such service.

In the latter part of February 1947, Greene Line suffered a labor and work stoppage as a result of a controversy with a labor union at Louisville. Operations were suspended, and the labor controversy continued until approval of the above-described lease of operating rights and property to Commercial. Prior to such lease Greene Line, of necessity, was forced to embargo all service between Louisville and Cincinnati.

General Motors Corporation, through its Chevrolet Motor Car Division, maintains a large assembly plant at or near Cincinnati, and used the services of Greene Line on its southbound transportation. The Ford Motor Car Company maintains a similar plant at Louisville and used the services of the lessor northbound. There were no other water carriers specializing in the handling of automobile traffic on a suitable schedule between those ports, and Commercial was requested by the automobile manufacturers to establish a water-carrier service between Louisville and Cincinnati.

Following approval of the lease, Commercial instituted a regular daily service in each direction between Louisville and Cincinnati, and such service has been maintained continuously except for interruptions due to adverse weather conditions or other causes beyond the control of the carrier. In such operations, Commercial transports general commodities as well as motor vehicles. Appropriate vessels have been acquired for the service performed, and convenient terminals have been established and maintained at Cincinnati and Louisville. Both terminals have been staffed with personnel experienced in such operations, and a large volume of general freight, as well as automobiles, has been transported under the leased operations. During the year 1951, and the first 8 months of 1952, in order, the total volume of freight handled under the leased rights amounted to 6,367,610 and 3,869,777 pounds, producing gross revenues for Commercial of $478,109 and $314,394, respectively. By the instant application, Commercial proposes to establish a permanent operation on the same basis as that now rendered the public under the lease.

Commercial's balance sheet as of August 31, 1952, shows total assets of $2,556,929, consisting of current assets $1,191,070, principally cash $406,037, and accounts and claims receivable, less reserve for doubtful accounts, $736,322; special funds $1,487; investment securities $418,530; operating property and equipment, less reserve for deprecia