It operated a daily service between Battery Park (New York City) and Bear Mountain for many years. Because of a decline in business, its service between these points was limited in 1953 to operations on Sundays. For some time it also has been engaged in charter operations between New York Harbor and Bear Mountain. Sutton Line presently owns no vessels; those used by it are leased from the Hudson River Day Line. Its once-owned vessel, the Clairemont, which had been purchased from the Palisades Interstate Park Commission, was scrapped in 1950 because it no longer was needed in service.

Hudson River Day Line holds a certificate authorizing service by self-propelled vessels as a common carrier of passengers seasonally each year from May to October between New York Harbor and points along the Hudson River as far north as Catskill, N. Y., and in excursion service between points within said harbor, on the one hand, and, on the other, points without the harbor on the Hudson River as far north as Catskill and on Long Island Sound as far east as Roton Point. It is the successor to a prior company by the same name which had been in operation between New York Harbor and various points along the Hudson River from about 1820 to 1948. In the latter part of 1948 and early 1949, the present Hudson River Day Line was organized and acquired the operating rights of the old Hudson River Day Line and also most of its physical assets. The Hudson River Day Line is, and since acquiring the rights of its predecessor, has been, engaged in daily service during the summer season between New York Harbor and points on the Hudson River, including Bear Mountain Park. It also operates excursion service under its existing authority. The New York-Bear Mountain service represents between 40 and 50 percent of its business in regular service. In the performance of these services, this carrier operates 3 vessels, the capacities of which are 3,861, 2,783, and 3,717 passengers, respectively. They are faster than any other vessel operating in and around New York Harbor. Two of the vessels have speeds of approximately 20 miles an hour. All three vessels have restaurants, washrooms, and porter service, as well as private parlors. The old Hudson River Day Line had constructed a larger and finer vessel than any of those in service, with a capacity of over 5,200 passengers, but this vessel was scrapped because of the absence of a need for it in service or otherwise.

The pier of the Hudson River Day Line at 42nd Street, which is leased from the city of New York, is 3 blocks long, is enclosed and sheltered, and has numerous conveniences for the comfort of passengers. This pier is easily accessible to those desiring to take boat trips along the Hudson River. It is not far from the 42nd Street and Times Square subway stations. It is also close to the bus terminal operated by the Port of New York Authority, and adjoins the New

York Central Railroad ferry operating to and from New Jersey. The terminal of the Port of New York Authority is used by numerous bus lines including those operating to and from points in New Jersey.

The Hudson River Day Line and the Sutton Line have been very active in the solicitation of business. During 1953 the Hudson River Day Line spent $80,000 for advertising. Their passengers come from the entire metropolitan New York area, practically all parts of New Jersey, upstate New York, Long Island, and parts of Pennsylvania. Where it is not possible to charter a vessel for the exclusive use of one party, group sales are solicited. Sales of tickets are also made through travel agencies and hotels. The evidence shows intensive solicitation for business extending far beyond the New York area. In spite of this solicitation, the vessels generally operate far below their capacities. As reported to this Commission, the financial statement of the Hudson River Day Line shows that at the close of 1952 its total capital and surplus was a debit balance of $17,010. This situation was not materially changed in 1953.

Applicant contends that it is fit, willing, and able properly to conduct the service proposed and that the proposed operations are required by the present and future public convenience and necessity. It urges that protestants' inability to operate profitably should not be considered a bar to the institution of the proposed service by applicant which possesses the ability based on past operations to perform the proposed service.

No evidence was presented that the proposed regular service would be superior in any manner, or more advantageous to the public than the services presently maintained by protestants between the New York Harbor area and Bear Mountain. Moreover, the record clearly indicates that the use of water transportation by the traveling or vacationing public in the New York area has been declining steadily due largely to other modes of transportation, particularly by bus and passenger automobile. In our opinion, no real public need has been shown for the proposed service.

At the hearing and on brief, applicant raises an issue relative to the extent and scope of its present operating authority, i. e., whether the phrase "in irregular service" as contained in its certificate denies it the right to conduct a regular daily service between New York Harbor and Bear Mountain. Although it has been operating solely an excursion service, applicant expresses the opinion that its present certificate includes authority to operate a daily scheduled service between the points embraced in the instant application. The application here under consideration is clearly for an extension of operations, and the extent and scope of its present certificate is not in issue in this proceeding.

We find that applicant has failed to establish that the proposed operations are required by the present or future public convenience and necessity, and that the application should be denied.

An appropriate order will be entered.

COMMISSIONER CROSS did not participate in the disposition of this proceeding.

285 I. C. C.

No. FF-236

ARROW MARINE FORWARDERS PERMIT TRANSFER

Submitted December 28, 1954. Decided March 14, 1955

Transfer to Arrow Marine Forwarders, Inc., of the freight-forwarder operating rights of Marshall E. Green and Joseph Henry Wolf, copartners, doing business as Arrow Marine Forwarders, found not shown to be consistent with the public interest and the national transportation policy. Application denied.

Donald Murchison for applicants.

James L. Givan, Harold Limonick, Robert E. Quirk, S. S. Eisen, Harry C. Ames, James M. Verner, and Arthur H. Glanz for protestants and interveners in opposition.

REPORT OF THE COMMISSION

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

Exceptions to the report proposed by the examiner were filed by protestants, and applicants replied. Exceptions and requested findings not discussed herein nor reflected in our findings or conclusions have been considered and found not justified. Our conclusions differ from those of the examiner.

By joint application filed March 8, 1954, under the provisions of section 410 (g) of the Interstate Commerce Act, Marshall E. Green and Joseph Henry Wolf, copartners, doing business as Arrow Marine Forwarders, of Los Angeles, Calif., hereinafter referred to as the transferor, and Arrow Marine Forwarders, Inc., of Los Angeles, hereinafter referred to as the transferee, jointly seek approval of the transfer to the transferee of the freight-forwarder operating rights of the transferor. The tansfer is opposed by Acme Fast Freight, Inc., National Carloading Corporation, Republic Carloading and Distributing Co., Inc., Midwest Freight Forwarding Company, Inc., Universal Carloading and Distributing Co., Inc., freight forwarders, and also by the following motor carriers: Spector Motor Lines, Inc., Cooper-Jarrett, Inc., Denver-Chicago Trucking Company, Inc., MidStates Freight Lines, Inc., Ringsby Truck Lines, Incorporated, and Illinois-California Express.

In No. FF-164, Arrow Marine Forwarders Freight Forwarder Application, 265 I. C. C. 811 (not printed in full), decided February 12, 1947, transferor was issued a permit, effective September 5, 1947, au

thorizing operation as a freight forwarder of commodities generally, over routes limited to common carriers by water through the Panama Canal, from points in New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Maryland, Delaware, Virginia, West Virginia, North Carolina, South Carolina, and Ohio to points in Arizona, California, Nevada, Oregon, and Washington. With report of February 4, 1949, in No. FF-164 (Sub-No. 1), Arrow Marine Forwarders Extension-Eastbound, 265 I. C. C. 812 (not printed in full), transferor was issued an amended permit, effective April 11, 1949, authorizing it to engage in service as a freight forwarder of commodities generally, over routes limited to common carriers by water through the Panama Canal, between points in Arizona, California, Nevada, Oregon, and Washington, on the one hand, and points in Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, West Virginia, Ohio, Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, and Texas, on the other. In No. FF-164 (Sub-No. 2), Arrow Marine F. Ext.-Removal of Route Limitation, 285 I. C. C. 805 (not printed in full), decided October 28, 1952, the transferor was issued a second amended permit and order which ultimately became effective March 20, 1953, authorizing service as a forwarder of commodities generally between points in the aforementioned States without the limitation "over routes embracing common carriers by water through the Panama Canal." In the instant proceeding, applicants seek our approval of the transfer of the operating rights issued to transferor in the second amended permit.

The transferee is a California corporation organized on February 23, 1954. The three incorporators, now the directors of the new corporation, are Fred H. Mackensen, V. A. Kathan, and Donald Murchison. The authorized capital stock of transferee is $500,000, consisting of 35,000 shares of common stock, par value of $10 per share, and 1,500 shares of 6-percent preferred stock, par value of $100 per share, but permission must be obtained from the State of California authorities for the issuance of the stock.

Under the terms of an agreement entered into on February 15, 1954, between the partners and Mackensen, an experienced traffic man, which agreement was adopted by the transferee, the partners agreed to transfer to transferee their freight-forwarder operating rights for a total valuation of $100,000, and their tangible assets, consisting of prepaid expenses, supplies and inventory, and furniture and fixtures,

In Acme Fast Freight, Inc., v. United States, 116 F. Supp. 97, decided October 16, 1953, the Commission's order of October 28, 1952, was sustained by the United States District Court of Delaware.