among other things, also permits the use of separate towing vessels in the performance of towage between ports and points along the Atlantic coast and inland tributary waterways, exclusive of the New York State Barge Canal system, from Maine to Pamlico Sound, inclusive. Counsel for Dauntless has agreed to the cancellation of whatever duplications might exist in the operating rights should the application herein be approved. All duplications will be eliminated if and when the superseding certificate is issued herein. See McAllister Lighterage Line, Inc., Purchase, 265 I. C. C. 483. The proposed transaction does not involve the guaranty or assumption of payment of dividends or fixed charges, and no increase in total fixed charges will result therefrom. The interests of carrier employees will not be adversely affected because Eastern has not operated for a considerable period.

We find that purchase by Chris Nielson, Charles M. Miller, Harry W. Miller, Carl Nelson, Hjordis Johnson, and Julie Taraldsen, doing business under the trade name and style of Dauntless Towing Line, is a transaction within the scope of section 5 (2) of the Interstate Commerce Act, as amended, that the terms and conditions proposed and the conditions herein prescribed are just and reasonable, and that the transaction will be consistent with the public interest.

We further find that Chris Nielson, Charles M. Miller, Harry W. Miller, Carl Nelson, Hjordis Johnson, and Julie Taraldsen, doing business under the trade name and style of Dauntless Towing Line, are fit and willing, and when they build or purchase the necessary vessels will be able, properly to perform the common-carrier service which Eastern Transportation Company is authorized to perform, and to conform to the provisions of part III of the act, and the requirements, rules, and regulations of the Commission thereunder; that transfer to them of the operating rights of Eastern Transportation Company authorizing operation by non-self-propelled vessels with the use of separate towing vessels in the transportation of commodities generally, and by towing vessels in the performance of towage, in interstate and foreign commerce, between ports and points along the Atlantic coast and inland tributary waterways (not including the New York State Barge Canal system) from Maine to Pamlico Sound, inclusive, subject to the condition as to the acquisition of vessels herein prescribed, is consistent with the public interest; and if the transaction, as herein authorized is consummated, Chris Nielson, Charles M. Miller, Harry W. Miller, Carl Nelson, Hjordis Johnson, and Julie Taraldsen, doing business under the trade name and style of Dauntless Towing Line, will be entitled to an amended certificate granting the operating rights heretofore indicated less all duplications. Suitable provisions

will be made in our order herein for proper notice to this Commission of the consummation of the transaction, and for submission of journal entries. Upon receipt of such notice and compliance with the prescribed condition, a certificate will be issued superseding the certificate heretofore issued said partnership in No. W-237, and the certificate heretofore issued to Eastern Transportation Company in No. W-600, which rights will be unified and all duplications eliminated.

An appropriate order will be entered effective 40 days from its date.

285 I. C. C.

FINANCE DOCKET No. 176161

AMERICAN COASTAL LINES, INC., PERMIT TRANSFER,

ETC.

Submitted March 12, 1953. Decided June 1, 1953

1. Application of National Container Corporation of Virginia (Marine Division) for transfer to it of the second amended permit and order dated May 23, 1950, issued in No. W-14, to American Coastal Lines, Inc., denied. Finance Docket No. 17616.

2. Application of National Container Corporation, a Delaware corporation, through ownership of stock of the Airdepot Realty Corp., owner of the stock of the National Container Corporation of Virginia, to acquire control of the operating rights of American Coastal Lines, Inc., while continuing control of the Marinette, Tomahawk & Western Railroad Company through stock ownership of the National Container Corporation of Wisconsin, dismissed. Finance Docket No. 17616 (Sub-No. 1).

F.C.Hillyer, T. C. Maurer, Daniel S. Dubbin, and Malcom D. Miller for applicants.

J. Roger Stanfield for an interested party.

Warren Price, Jr., L. A. Parish, Richard H. Specker, J. Carter Fort, Jr., James A. Bistline, Donald Macleay, John H. Eisenhart, Jr., L. Agnew Myers, Jr., and Robert H. Shertz for protestants and interveners in opposition.

REPORT OF THE COMMISSION

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

Exceptions to the report proposed by the examiner were filed and oral argument was heard. Exceptions and requested findings not specifically discussed nor reflected in our findings or conclusions have been considered and found not justified.

The National Container Corporation of Virginia, a Virginia corporation, through its Marine division, and the American Coastal Lines, Inc., applied jointly on January 14, 1952, under section 312 of the Interstate Commerce Act, as amended, for approval of transfer to the former, hereinafter called the Virginia company or the applicant, of the second amended permit and order dated May 23, 1950, issued to American Coastal Lines, Inc., herein sometimes called Coastal or

1 This report also embraces Finance Docket No. 17616 (Sub-No. 1), National Container Corporation of Virginia (Marine Division) Control.

the transferor, Finance Docket No. 17616; and the National Container Corportion, a Delaware corporation, herein called the Delaware company, on February 1, 1952, applied for authority under section 5 (2) of the act, to acquire, through ownership of stock of the Airdepot Realty Corporation, a realty management company which owns the stock of the Virginia company, control of the operating rights of the American Coastal Lines, Inc., while continuing control of the Marinette, Tomahawk & Western Railroad Company, a carrier subject to the act, through ownership of the stock of the National Container Corporation of Wisconsin, Finance Docket No. 17616 (Sub-No. 1). Protests were received from various carriers by water and by railroad. The Jacksonville Traffic Bureau supports the applications. No representations have been made by State authorities. A hearing was held May 20-21, 1952, and a further hearing was had on August 4, 1952. Briefs were filed.

The applications are opposed by the Pan-Atlantic Steamship Corporation, Seatrain Lines, Inc., S. C. Loveland Company, Blue Stack Towing Company, and C. G. Willis, Inc., common carriers by water; the Great Lakes Ship Owners Association, the Atlantic Coast Line Railroad Company, the Seaboard Air Line Railroad Company, and the Southern Railway Company. They will be referred to herein individually by the distinguishing portion of the respective names, and collectively as the protestants. The rail carrier protestants each has extensive mileage in the South Atlantic States, and each serves Jacksonville, Fla., and other ports in the South. The railroads enjoy considerable traffic to and from paper mills in the South, and consider that traffic to be important and valuable. They have capacity to handle more traffic than now moves over their lines, and are in particular need of southbound traffic. Several of the water carriers protest the transfer on the grounds that the Virginia company would offer more aggressive competition than did Coastal, to the detriment of the carriers now serving the area and the ports in question. The other water carriers and the Great Lakes Association are concerned primarily with the effect of the decision as a precedent if the request is approved and the related corporations are permitted to assume a "shipper-carrier" status.

In other proceedings related to the transaction herein, the Virginia company filed a request for temporary authority under section 311 (a), which was denied by order of January 18, 1952, under No. W-1043. It also filed a petition under section 311 (b) for temporary approval of operations under the permit in question pending the determination of the application to transfer such rights. That petition was denied by order herein of March 21, 1952. Several water carrier and railroad protestants, which also appear in this proceeding, objected to

the granting of any temporary rights. Under No. W-1043 (SubNo. 1), the Virginia company on January 28, 1952, applied for a certificate of exemption from the provisions of part III of the act, under section 303 (h), to engage solely in transporting property of the Delaware company, which through Airdepot Realty Corporation owns substantially all the voting stock of the Virginia company. A certificate of exemption was issued March 14, 1952, insofar as the Virginia company performs transportation by water for the Delaware company. Upon approval of the transfer requested herein, the certificate of exemption would be surrendered for revocation.

The transferor's second amended permit and order authorizes contract carrier operations by self-propelled vessels and by non-self-propelled vessels with the use of separate towing vessels, in interstate or foreign commerce, in the transportation of general commodities in lots of 500 net tons or more for not more than 3 shippers on any 1 voyage, between ports and points along the Atlantic and Gulf of Mexico coasts from Maine to Louisiana, inclusive, and tributary waterways, but not (a) between 2 or more points on the Gulf of Mexico coast by way of the Gulf Intracoastal Waterway, (b) from or to points on the Mississippi River above New Orleans, La., nor (c) from or to points on the Hudson River beyond the area defined in the order of March 26, 1941, in Ex Parte No. 140, Determination of the Limits of New York Harbor and Harbors Contiguous Thereto. That permit is a reissue of the amended permit and order of Atwacoal Transportation Company, dated November 15, 1949, issued with the report of division 4, in Atwacoal Transp. Co. Contract Carrier Application, 265 I. C. C. 649, on reconsideration after a prior report. See Atwacoal Transp. Co. Contract Carrier Application, 260 I. C. C. 409. The reissuance occurred when the initially authorized company on April 6, 1950, changed its corporate name (without involving a change in ownership), and requested that the permit be changed accordingly.

The sales agreement.-The proposed purchase by the Virginia company of the permit in No. W-14 is part of a transaction involving the outright purchase of two steel barges from the transferor. By an agreement dated December 28, 1951, the transferor sold the barge Steven D for $78,800; the Burton D for $82,500; and the permit and operating rights for $5,000. Title to, and possession of, the vessels were transferred at the time of the agreement, except that under an escrow agreement, transfer of possession of the Burton D was to be subject to the assignment to the applicant of a bareboat charter, dated December 18, 1951, to expire February 19, 1952.

The more important terms of the sales agreement provide that the purchase price shall be paid partially in notes guaranteed as to face value, and partially in cash payable on or before 5 years from the