Commission has generally adhered to a liberal attitude in granting permits to freight forwarders, it is not required to sanction or condone unlawful operations.

AAACon and Auto Trip are operated by the same directors, and Auto Trip is a wholly owned subsidiary of AAAC on. The corporate veil may properly be pierced in determining issues of fitness of motor carrier applicants and we see no reason why the same rule should not apply here. Compare Driver Service, Inc.-Investigation of Operations, 77 M.C.C. 243 (1958). Although AAAC on's fitness has not been directly in issue in the proceedings herein, as no AAAC on application proceeding is involved, the matters considered herein certainly reflect upon AAAC on's fitness and, as a result, upon the qualifications of Auto Trip to operate as a freight forwarder. We conclude that the record reveals that the management of AAAC on and, by implication, Auto Trip, is not willing and able to comply with the appropriate laws, rules, and regulations, and we conclude that were an application of AAACon's before us herein we would find AAACon to be unfit' and, accordingly, we must find that Auto Trip, AAAC on's wholly owned subsidiary, is not a qualified applicant for freight forwarder authority. The application in No. FF-359 will be denied.

FINDINGS

We find in No. MC-C-7287, that respondent, AAAC on Auto Transport, Inc., has been engaged in unjust and unreasonable practices in connection with matters relating to the transportation of automobiles, in driveaway service, in interstate or foreign commerce, in violation of sections 20(11), 219, and 216(b) of the Interstate Commerce Act, and has performed operations not authorized by its certificate in violation of section 206(a) of the act and the terms, conditions, and limitations of the said certificate, and that a cease and desist order should be entered.

We further find in No. MC-C-7287 (Sub-No. 1), that the restriction contained in Certificate No. MC-125808 (Sub-No. 1), restricting the authority contained therein against the transportation of traffic to automobile dealers is clear and unambiguous, serves a

In No. MC-125808 (Sub-No. 2). AAACon Auto Transport, Inc., Extension-Driveaway for Prior Rail Movements, an application by AAAC on for operating authority is pending and does involve the fitness issue. It was reopened for further consideration of applicant's fitness subsequent to a final determination in No. MC-C-7287, by order of May 4, 1971. In view of the conclusions and findings reached in the proceedings herein, a separate order will be entered on the same date as this report finding AAAC on unfit in the Sub-No. 2 proceeding.

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useful purpose, and that, accordingly, the petition for a declaratory order should be denied.

We further find, on further consideration in No. FF-359, that applicant, Auto Trip USA, Inc., has failed to establish that it is a qualified applicant or that its proposed operation will be consistent with the public interest and the national transportation policy, and that the application should be denied.

And we further find that these decisions are not major Federal actions significantly affecting the quality of the human environment within the meaning of the National Environmental Policy Act of 1969.

An appropriate order will be entered.

APPENDIX

Contents of order recommended by the Administrative Law Judge

It is ordered, That the respondent AAACon Auto Transport, Inc., be, and it is hereby, notified and required to cease and desist from and utilization of bills of lading which incorporate unreasonable provisions and which incorporate provisions which are at variance with those of the Uniform Bill of Lading filed with the Commission as a portion of its tariff, and specifically any provision of any bill of lading utilized by the company which provides for compulsory arbitration of loss, damage, or injury claims in New York City, subject to the laws of New York State, or any other similar provision which would limit the venue in which a claimant could pursue its claim against the respondent.

It is further ordered, That the respondent be, and it is hereby, notified and required to cease and desist from policies which negate its common carrier responsibility for the property in its possession for transportation, including the assumption of liability for the full, actual loss or damage to that property, as required by sections 219 and 20(11).

It is further ordered, That the respondent be, and it is hereby, notified and required to cease and desist from its policy of not promptly and thoroughly investigating and processing claims and further orders that the respondent make and keep detailed records of the results of such investigation.

It is further ordered, That the respondent be, and it is hereby, notified and required to cease and desist from arbitrarily denying claims when the facts available to it are inconsistent with denial.

It is further ordered, That respondent be, and it is hereby, notified and required to cease and desist from attempting to impose responsibility on its shippers' insurance carriers for loss of or damage to property it receives for transportation.

It is further ordered, That respondent be, and it is hereby, notified and required to cease and desist from advertising that it insures for liability in any amount unless it discloses to prospective shippers the precise kind and type of insurance carried, including deductible amounts, or that it bonds its drivers, unless it is made clear what type of bond is provided and the kind and manner of protection to its shippers.

It is further ordered, That the respondent be, and it is hereby, notified and required to cease and desist from the employment of casual drivers utilized by it without thorough investigation and screening, and it is ordered to make and keep detailed records of the results of such investigation.

It is further ordered, That the respondent be, and it is hereby, notified and required to cease and desist from its policy of not properly instructing and controlling its agents and drivers so that shippers' autos will not be abused or used for any purpose other than transportation from and to the origin and destination points by the most direct routes.

It is further ordered, That the respondent be, and it is hereby, notified and required to cease and desist from misrepresenting the identity of its officer, employee, or agent, with whom the shipper deals on matters relating to claims.

It is further ordered, That the respondent be, and it is hereby, notified and required to cease and desist from the performance of any operation in interstate or foreign commerce found herein to be unlawful or unauthorized, specifically the transportation of autos moving to automobile dealers, and thereafter to abstrain and refrain from the resumption of any such operation unless and until appropriate authority therefor is obtained.

It is further ordered, That upon the willful failure of respondent to comply with any of the provisions of this order, the certificate issued to the respondent, AAAC on Auto Transport, Inc., in No. MC-125808 and subnumbers thereunder, may be suspended or revoked in whole or in part.

It is further ordered, That the application of Auto Trip USA, Inc., in No. FF-359 be denied for lack of fitness of the applicant.

It is further ordered, That the petition in No. MC-C-7287 (Sub-No. 1) be denied. It is further ordered, That the statutory compliance date after which the respondent shall be held to be in willful violation of this order, shall be the 30th day following the service of a notice that this order has become effective as the order of the Commission, in the absence of a stay or postponement by the Commission, or the timely filing of exceptions.

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No. MC-107515 (SUB-No. 858)1

REFRIGERATED TRANSPORT CO., INC., EXTENSION— BOWLING GREEN, KY., MEATS

Decided April 8, 1976

1. Public convenience and necessity found not shown to require operation by applicant in No. MC-107515 (Sub-No. 858) as a common carrier by motor vehicle, over irregular routes, of meats, meat products, and meat byproducts, from Bowling Green, Ky., to points in 20 named States. Application denied. 2. On further proceedings in No. MC-115841 (Sub-No. 425), findings in prior decision and order (not printed), decided May 25, 1973, modified in part. Public convenience and necessity found to require operation by applicant as a common carrier by motor vehicle, over irregular routes, of various foodstuffs from five Kentucky points to points in numerous States, with origin restrictions, and application in all other respects denied.

Paul M. Daniell, Richard M. Tettlebaum, E. Stephen Heisley, Roger M. Shaner, and Gerald K. Gimmel for applicants.

David C. Venable, Fred H. Figge, Lawrence A. Fischer, Donald B. Levine, Paul M. Daniell, Richard A. Kerwin, Donald B. Sweeney, Jr., Thomas A. Stroud, David I. Harfeld, Roger M. Shaner, Richard M. Tettlebaum, and John P. Carlton for protestants.

REPORT OF THE COMMISSION ON FURTHER PROCEEDINGS

DIVISION 1, COMMISSIONERS MURPHY, GRESHAM, AND O'NEAL

MURPHY, Commissioner:

By application filed May 25, 1973, in No. MC-107515 (Sub-No. 858), Refrigerated Transport Co., Inc., of Forest Park, Ga., seeks a certificate of public convenience and necessity authorizing operation, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, of meats, meat products, and meat byproducts (except commodities in bulk, and except hides) as described in section A of appendix I to the report in

'This report also embraces No. MC-115841 (Sub-No. 425). Colonial Refrigerated Transportation, Inc., Extension-Eight States.

Division 1. Acting as an Appellate Division in No. MC-115841 (Sub-No. 425).

Descriptions in Motor Carrier Certificates, 61 M.C.C. 209 and 766, from Bowling Green, Ky., to points in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Texas, Virginia, West Virginia, and Wisconsin, restricted to the transportation of traffic orginating at Bowling Green. The application is opposed by Colonial Refrigerated Transportation, Inc., a motor common carrier. The proceeding was assigned for processing under the modified procedure and evidence in the form of verified statements has been submitted by the parties.

By application filed February 1, 1972, as amended, in No. MC115841 (Sub-No. 425), Colonial Refrigerated Transportation, Inc., of Birmingham, Ala., seeks a certificate of public convenience and necessity authorizing operation, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, of foodstuffs (except in bulk), in vehicles equipped with mechanical refrigeration, from points in Kentucky to points in States on and east of the Mississippi River, Wisconsin, North Dakota, South Dakota, Nebraska, Louisiana, Oklahoma, Texas, and Kansas, restricted to the transportation of traffic originating at points in Kentucky. This application is opposed by Beaver Transport Company, Central and Southern Truck Lines, Inc., All-American Transport, Inc., CW Transport, Inc., Refrigerated Transport Co., Inc., Willis Shaw Frozen Express, Inc., Carl Subler Trucking Company, Midwest Emery Freight System, Inc., Belford Trucking Company, Inc., Trans-Cold Express, Inc., Tompkins Motor Line, Inc., and Gordons Transports, Inc.

Colonial's application was heard before an Administrative Law Judge. Applicant filed exceptions to the initial decision and recommended order, and certain protestants replied. By a decision and order of May 25, 1973, Review Board Number 2 found a need for Colonial's service as a motor common carrier (1) of cheese (a) from Leitchfield, Ky., to Monroe, Wis., and Syosset, N.Y., and (b) from Harrodsburg, Cynthiana, Tompkinsville, Russell Springs, Lexington, and Louisville, Ky., to Fond du Lac, Wis., Washington Court House, Ohio, Neosho, Mo., and points in Alabama, Florida, Georgia, Tennessee, North Carolina, South Carolina, and Virginia, (2) of canned and packaged foods (nonfrozen) from Bowling Green, Ky., to points in Alabama, Arkansas, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West