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then from 2 to 4 years old. It appears that applicant, in August 1939, augmented its equipment by purchasing certain motor vehicles from Western Grocer Company, hereinafter referred to as Western, and that in November 1939, when the hearing was held in No. MC21170 (Sub-No. 3), it owned and operated 16 semitrailers and 9 straight trucks. It has appropriate operating authority in Iowa, Missouri, and Minnesota and is able, financially and otherwise, to conduct the operation herein authorized.

The purpose of the instant application is to secure authority as a common carrier by motor vehicle to transport groceries and canned goods in a "call and demand" service over irregular routes, from Minneapolis and St. Paul, hereinafter sometimes referred to as the Twin Cities, and from Kansas City and St. Joseph to the 11 abovespecified points in Iowa. Applicant now claims the right to serve one of them, Hampton, as an intermediate point on its regular route between Kansas City and St. Paul under its "grandfather" clause application. However, this appears to be a scheduled operation in the transportation of general commodities over specified routes only and is unlike the service proposed herein. Applicant also claims the right to operate over regular routes through, but not serving, Nevada, Waverly, and Charles City. With the exception of Atlantic, the points sought to be served are located in the same general territory through which applicant operates on its regular route between Kansas City and the Twin Cities. Applicant also now claims the right to serve (1) Waverly and Hampton in the transportation of salt from Hutchinson and Kanopolis, Kans., (2) Waverly in the transportation of flour and feed from Kansas City, Mo., and Kansas City, Atchison, and Arkansas City, Kans., and (3) Hampton in the transportation of paper and cardboard boxes and cartons from Lawrence, Kans.

The National Tea Company, hereinafter referred to as National, is a retail grocery company serving five States in the northwestern part of the United States. It has a large warehouse in Minneapolis and, with the exception of Atlantic, owns one or more stores in each of the towns in Iowa to which authority is here sought. Its traffic manager testified that, owing to competitive conditions and fluctuations in market prices, it is necessary that each store maintain only a relatively small stock of merchandise and that accordingly it is essential that each store be provided with frequent and expeditious service in the replenishment of its stock. His company requested applicant to file the instant application.

Applicant delivered merchandise directly from National's warelis to its various stores in Iowa prior to the t ceased when doubt arose as to its authority to Since that time, it has been hauling groceries

house in Mi early part of render such

in truckload lots directly from Minneapolis to Marshalltown under claim of a "grandfather" right covered by No. MC-21170. The merchandise is then stored at applicant's terminal at Marshalltown, usually from 1 to 3 days, before being delivered to the stores in Iowa upon instructions from National. A substantial supply of groceries is maintained at applicant's terminal at all times in order that the needs of various stores in Iowa may be adequately met. The goods are consigned from Minneapolis to Marshalltown, and their ultimate destination is not known when shipment is made. This is not a satisfactory arrangement, but it provides a service superior to that at present available. Upon the grant of authority sought herein, the shipper desires applicant to move truckloads of merchandise from its warehouse in Minneapolis on certain days of each week and to make delivery direct to its stores in Iowa according to their needs. This arrangement would enable the stores to supply the wants of their customers with a relatively small inventory which, owing to price fluctuations, is very desirable. It was pointed out that each store sends in its order on a specified day in order that the merchandise may be efficiently distributed.

The services of some four or five other common carriers by motor vehicle have been used, but none has been found to be satisfactory and adequate. It does not appear that any one of these competing carriers has authority to serve all of the towns in Iowa in which the shipper has stores. The witness expressed a preference for a carrier which is authorized to serve all the points, over the service of several carriers having no such authority.

The record is convincing that there is a real need for applicant's proposed service and that it will be superior to that at present available. The extent of the service rendered by existing motor carriers is not clearly shown, but it does not appear that the grant of authority as contained herein will materially or adversely affect the revenues of such operators.

The witness for the shipper admitted that it did not, at the present time, have a store in Atlantic, although some consideration has been given to such an establishment. He also stated that his company was not interested in securing the services of applicant in the transportation of groceries and canned goods from Kansas City, St. Joseph, or St. Paul. To the extent indicated herein, the application will be denied.

The application requests authority to transport groceries and canned goods. However, at the hearing, the witness for the shipper testified that it was desired that applicant be authorized to transport such groceries and canned goods as are usually found in a grocery

store. Since it is generally understood that "groceries" includes "canned goods," the latter will be omitted from the findings herein. No. MC-21170 (Sub-No. 3).—By another application, filed August 21, 1939, as amended, applicant herein also seeks a certificate of public convenience and necessity authorizing operation in interstate or foreign commerce as a common carrier by motor vehicle of groceries, canned goods, and store supplies between points in Iowa, Missouri, Minnesota, Oklahoma, Arkansas, and Kansas, over irregular routes. Rail lines and motor carriers operating in the affected area oppose the application.

Western Grocer Company and its subsidiary, the Marshall Canning Company, are manufacturers and canners of various grocery items and food products, and distribute such commodities from their jobbing and branch houses at certain points in the States sought herein to other points in the same group of States.

Prior to August 1939, when part of the motor-vehicle equipment owned by Western was sold to applicant, it operated its own equipment or leased trucks to transport its own freight from and to points in the States sought. Its traffic manager testified that it desires that applicant be authorized to render the same service as was formerly rendered by the use of its own equipment, and urges that in so doing no traffic will be diverted from existing carriers.

Applicant introduced an exhibit which purports to show in some detail the commodities to be transported and the origin and destination of such traffic within the States sought. However, it was admitted that the principal need for applicant's service was between Marshalltown and points in Oklahoma, Arkansas, and certain parts of Kansas and Missouri. The stores proposed to be served by the granting of the instant application are not owned by Western but only handle the brand of merchandise distributed by it and are free to buy where they choose and to select the transportation service best suited to their needs.

Western now uses the services of applicant. Shipments moving to points which applicant claims the right to serve are handled entirely by it, whereas shipments to points which applicant is not authorized to serve are transferred to connecting carriers. Applicant's through service has been satisfactory, but service by interchange has not. Western has also used the services of other motor carriers, but it was contended that such service was not satisfactory, although no specific instance of inadequacy was shown. On crossexamination it was admitted by Western's traffic manager that the service of several motor carriers was satisfactory, but that his company had a personal preference for the service of applicant.

The Heuer Truck Lines operates 32 units of equipment in rendering service by motor vehicle in the States sought herein, and its representative testified that only 50 percent of its equipment was being used at the present time. The Gateway City Transfer Company operates 107 pieces of motor equipment in rendering service generally in Iowa, Illinois, Wisconsin, and Minnesota, and is in a position to handle any additional traffic. H. & W. Express Company operates generally between Dubuque, Iowa, and Minneapolis, Minn., and points intermediate thereto.

Applicant makes no showing of any reason for the proposed operation other than the fact that Western and its subsidiary personally desire its service. Their willingness to use the contemplated service is apparently actuated by the desire to effect a saving in transportation cost. The protestants show that there are numerous common carriers by motor vehicle in this territory which hold themselves out to perform the considered operation, and there is no showing of inadequacy in the existing service.

The desire of a shipper to engage the services of a particular person as a common carrier, standing alone, does not constitute a sufficient ground for the granting to that person of the right to enter the trucking field where the traffic proposed to be transported can be satisfactorily handled by existing facilities. The granting of a certificate on this ground alone would not be consistent with the national transportation policy declared in part I of the Interstate Commerce Act.

A supplemental argument was submitted to us by applicant in the instant case, but it was returned to the sender thereof for the reason that under our rules of practice there is no provision made for accepting supplemental arguments or exceptions received after the due date for the filing thereof. Now applicant, by formal petition, again seeks authority to file a supplemental argument and urges in connection therewith that the reasoning followed in another unrelated proceeding be adopted in the instant case. The reason advanced for the filing of the petition is that our decision embodying the reasoning sought to be incorporated herein did not reach applicant until after the due date for the filing of exceptions. Our decision in this case is based upon the facts presented before us, and there is no sufficient showing why we should make an exception here and receive late-filed supplemental arguments. Applicant's petition accordingly is denied. By application, in No. MC-100811, filed August 24, 1939, A. H. Bos, president of Bos Freight Lines, Incorporated, also of Marshalltown, doing business as Bos Transfer Co., seeks a permit authorizing operations in interstate or foreign commerce as a contract carrier by motor vehicle of groceries, canned goods, and store supplies between points in Iowa, Kansas, Missouri, Oklahoma, Arkansas, Wisconsin, and

Minnesota, over irregular routes. Rail lines and motor carriers operating in the affected area oppose the application.

At the hearing, applicant moved that his application be dismissed, to which no objection was made by protestants. It need not be further considered.

In No. MC-21170 (Sub-No. 1), we find that public convenience and necessity require operation by applicant in interstate or foreign commerce as a common carrier by motor vehicle, of groceries from Minneapolis, Minn., to Perry, Newton, Grinnell, Webster City, Charles City, Boone, Clear Lake, Nevada, Waverly, and Hampton, Iowa, over irregular routes; that applicant is fit, willing, and able properly to perform such service and to conform to the provisions of the Interstate Commerce Act and our rules and regulations thereunder; and that an appropriate certificate should be granted. In all other respects the application should be denied.

Upon compliance by applicant with the requirements of sections 215 and 217 of the Interstate Commerce Act and our rules and regulations thereunder, an appropriate certificate will be issued. An order will be entered denying the application, except as indicated.

In No. MC-21170 (Sub-No. 3), we find that applicant has failed to show that public convenience and necessity require its operation as a common carrier by motor vehicle in interstate or foreign commerce of groceries, canned goods, and store supplies between points in Iowa, Missouri, Minnesota, Oklahoma, Arkansas, and Kansas, over irregular routes; and that the application should be denied. An order denying this application will be entered.

An order dismissing No. MC-100811 will be entered.

28 M. C. C.

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