Dam, including the Willamette River. The major portion of its operation on the Willamette River consists of log towing. This carrier maintains some marine equipment at Portland, three diesel tugboats at Willamette, Oreg., 11⁄2 miles above Oregon City, and a log moorage about 3 miles below Albany. A tariff of rates is published by it on general commodities to and from points along the Willamette River between Portland and Corvallis. Other than log towing, the only service which the record shows that the carrier has performed on the Willamette above Oregon City are six tows of contractors' barges or scows between Portland and Independence, Oreg., Salem, and Corvallis, all of which were handled at hourly towing rates. Four of these were moved in January, February, and October, 1952, 1 in 1946, and 1 in 1947.

A certificate now held by Alace R. Leach was issued to Atherton Leach in April 1944, to continue operation as a common carrier in the barging of commodities generally, and in the performance of general towage, between ports and points along the Columbia River and its tributaries below and including Bingen, Wash., but not including the Willamette River above Albany. This carrier's business also has consisted of the towing of logs and contractors' equipment. In April 1950 it towed an army engineers barge and a dredge with operating equipment to points on the Willamette River about 50 to 75 miles, respectively, above Oregon City, and a contractors' barge and construction equipment used in the building of a bridge at Salem. Its equipment consists of 4 diesel-powered tugboats, of from 85 to 330 indicated horsepower, and drawing 4.5 feet or more of water, 3 large barges with a draft of 8 feet, 1 large covered 2-story barge and 2 smaller barges. Additional equipment is chartered when required. It operates a crane which may be used for loading and unloading. Operations on the Willamette may be performed with this equipment. The Leach estate also owns stock in Portland Marine, Incorporated, a machine and repair ship for water-carrier equipment. The carrier holds itself out to perform the barging of commodities generally as far up the river as Albany but has been unable to obtain traffic in volume which it considers "economically sound" for movement thereon.

Protestant motor carriers serve the Willamette Valley generally between Portland and Springfield, Oreg., and provide frequent service over routes which parallel the river. They operate several schedules daily to and from points on the routes. Most of them have a large preponderance of southbound tonnage. Their northbound traffic is largely canned goods and paper, with some lumber products. One carrier has developed a special type of convertible unit for hauling

lumber northbound in competition with rail carriers. These units are loaded and unloaded to the dock with forklift trucks. Most of these carriers have increased their facilities substantially as the communities served have developed and their transportation needs have expanded.

The protestant railroads serve the Willamette Valley, and with their connections provide through service to interstate points. They actively solicit traffic, and provide trains at frequent intervals from points in the valley to Portland terminals for the movement of lumber for export, which sometimes is unloaded and handled directly from car to ship. They are opposed to the proposed operation which they believe would be competitive as to any commodity which is available for rail movement.

On exceptions, the opposing carriers contend that Albany has failed to show that the proposed operation is required by public convenience and necessity; and that the present services of motor, rail, and water carriers now serving points along the Willamette River are adequate to transport all available traffic. They ask that the application be denied, but opposing motor and water carriers contend that if any authority is granted it should be confined to the movement of lumber from Albany to Portland. In this connection motor carriers insist that an authorization to transport general commodities would adversely affect their operations because of the possibility of losing lucrative northbound traffic consisting of canned goods and paper.

In its reply Albany contends that a public need has been shown for the proposed service; that the services of presently certificated water carriers along the Willamette River are inadequate; that protestant water carriers are engaged solely in towing operations and are not performing any freighting services; and that, inasmuch as applicant proposes a freighting service, protestants' existing towing services would not be impaired. With respect to contentions of motor and rail protestants, Albany states that shippers and communities are entitled to adequate transportation service by water with its inherent benefits and advantages upon proof of a need therefor.

There is no evidence to support a conclusion that the proposed service will impair the ability of any protestant carrier to continue its operation of existing services. As the record shows, the services of protesting water carriers have consisted almost entirely of towing, with little or no barging of general commodities. There is no evidence that they have actively solicited the freighting of such commodities. As regards rail service there have been recurrent car shortages in this area, which were the subject of investigation by the Public Utilities Commissioner of Oregon.

As stated in the prior report, Albany proposes to haul primarily commodities which can be transported economically in large volume to shipside and transferred to ships or barges with its efficient and powerful crane equipment, thus avoiding rehandling over the docks. It is also interested in carrying large lots of general commodities on the decks of its combination barges and expects to interchange traffic to and from interstate destinations with connecting water carriers which operate on the Columbia River.

The substantial and continuing increase in population, the development of industry and agriculture in the Willamette Valley area tributary to the operation of the proposed service, and other evidence of record indicates to us that the proposed service is desired and needed by and will be useful to the shippers in that area.

Albany Barge Lines, Inc., is an Oregon corporation which was organized in August 1952. Its officers are Robert W. Thomayer, president, Beulah H. Russell, vice president, and Lew S. Russell, Jr., secretary-treasurer. All of its outstanding capital stock, composed of 100 shares, is held as follows:

Lew S. Russell, Sr., jointly with his wife Beulah H. Russell 33% shares; Lew S. Russell, Jr., jointly with his wife Margery Russell 33% shares; and Robert W. Thomayer (son-in-law of Russell, Sr.), jointly with his wife Betty Lou Thomayer 333 shares. These individuals, all applicants in Finance Docket No. 19097, have been the sole stockholders in Albany since the organization of that corporation. The Russells and Thomayers are not only related through family ties but have been engaged in the water-carrier industry on the Pacific coast for many years and hold offices and directorships in other water carriers under our jurisdiction as will be hereinafter shown. Robert Thomayer, president of Albany, has been engaged in various phases of tugboat operations for the past 6 years and holds a masters license to pilot steam or diesel vessels up to 1,000 tons on the Columbia and Willamette Rivers. Lew S. Russell, Jr., secretarytreasurer has been engaged in various activities connected with the operation of tugboats for the past 20 years and holds a similar license. Section 1 (3) (b) of the act provides that for the purpose of section 5, among other things "control" shall be construed to include actual as well as legal control, whether maintained or exercised through or by reason of the method of or circumstances surrounding organization or operation, through or by common directors, officers, or stockholders, a voting trust or trusts, a holding or investment company or companies, or through or by any other direct or indirect means; and to include the power to exercise control. In the event, therefore, that Albany obtains a certificate of public convenience and necessity as

tion is warranted. Steel is in short supply generally, and if the proposed authority to transport iron and steel is granted to the extent indicated in the findings below, consumers in the Tampa area would be able to extend their sources of supply of such commodities to Chicago and upper Mississippi Valley mills. Some of the Tampa supporters indicate that they would curtail their imports of steel if greater domestic supplies were available at low transportation costs. Although the movement of iron and steel articles from Chicago and Mississippi Valley mills to Tampa has been light, this may be due in part to the fact that no nontransfer water-carrier service, such as proposed by applicant, is available. It seems clear that the proposed nontransfer operation would provide a more expeditious and economical service on this traffic than that available from the opposing water carriers, and that it will generate additional water-carrier traffic. Moreover, in view of the absence of any significant volume of barge traffic from Chicago and Mississippi Valley origins to Tampa, it does not appear that the proposed service would divert any large amounts of traffic from protestants.

Although the application in No. W-630 (Sub-No. 4) seeks authority to transport "iron and steel articles and products," we believe that the erm "iron and steel articles" is sufficiently comprehensive to embrace he commodities for which a need for applicant's services has been shown.

We find that the present and future public convenience and necessity require operation by applicant as a common carrier by non-selfpropelled vessels with the use of separate towing vessels, in interstate ›r foreign commerce, in the transportation (1) of iron and steel aricles from ports and points along the Illinois Waterway, as herein lescribed, and that portion of the Mississippi River from Clinton to St. Louis, both inclusive, to Tampa, and (2) dry sewage sludge from Chicago to Tampa; that applicant is fit, willing, and able properly o perform such services, and to conform to the provisions of part III the act and the requirements, rules, and regulations of the Commision thereunder, and that an amended certificate should be issued auhorizing such operations, in addition to those specified in its present ertificate, subject, however, to general conditions which are necesary to carry out, with respect to applicant's operations, the requirenents of part III of the act and the orders, rules, and regulations of he Commission thereunder. In all other respects, the application will e denied.

An appropriate fourth amended certificate and order will be issued. COMMISSIONER MITCHELL did not participate in the disposition of hese proceedings.

362 shares. Lew S. Russell, Sr., is the president and a director of this corporation.

From the foregoing it is clear that Lew S. Russell, Sr., Lew S. Russell, Jr., and Robert W. Thomayer, together with their wives, Beulah Russell, Margery Russell, and Betty Lou Thomayer, are in complete numerical stock control of Russell Towboat & Moorage Company and Albany Barge Lines, Inc. and necessarily would be primarily responsible for the actions of both carriers. Also that Lew S. Russell, Sr., jointly with his wife, Beulah, and Lew S. Russell, Jr., own 39.2 percent of the stock of Tidewater-Shaver Barge Lines, Inc., and together with one other stockholder (Homer T. Shaver) control the majority of outstanding capital stock of that corporation, which in turn controls, through stock ownership, Consolidated Navigation Company and Babbidge & Holt, Inc. Russell, Sr., and/or his wife, Beulah, hold offices or directorships in all of the foregoing corporations, and Russell, Jr., and/or his wife, Margery, hold offices or directorships in all but Babbidge & Holt, Inc. If the operating authority sought in No. W-1062 is granted, Albany Barge Lines, Inc., would become a carrier subject to part III of the act, and the conclusion is warranted that as such it would be jointly controlled, and its affairs managed in a common interest, with all of the other affiliated corporations through Lew S. Russell, Sr., Lew S. Russell, Jr., Robert W. Thomayer, and their respective wives, Beulah Russell, Margery Russell, and Betty Lou Thomayer.

While the application does not specifically request authority for the individuals involved to exercise joint control or management of the various corporations mentioned jointly with Albany Barge Lines, they have submitted information with respect to their activities for such consideration as we deem proper. Accordingly we will make the appropriate findings. See Shaver Transp. Co. Certificate Transfer, supra, page 171.

A comparison of the authority sought by Albany with the certificated authorities held by the above-mentioned affiliated carriers discloses that Albany's proposed operations would not be competitive with nor duplicative of those certificated rights. Accordingly, the joint management and control herein found to exist is not inconsistent with the public interest. The interest of Albany's employees will not be adversely affected by the transaction and therefore no conditions relative to the protection of the employees are deemed necessary. There is no guaranty or assumption of the payment of dividends or fixed charges involved in the transaction, and there will be no increase in total fixed charges. Adequate transportation service to the public will be promoted.