Southern operation.—Applicant claims a "grandfather" right for the conduct of a so-called southern operation between points in South Carolina, North Carolina, and the portion of Virginia east of and including the Shenandoah Valley. Prior to June 1, 1935, only one class of property, textile machinery and textile-machinery parts, was transported between points in these three States. During this period, shipments moved from and to such representative points as Altavista, Va., Lincolnton, Charlotte, and Raleigh, N. C., and Spartanburg, Chester, and Kershaw, S. C. Since the statutory date, this service has been continued from and to points in the same general area. This class of property moves from and to scattered points in the textile-mill sections of the three States according to the changing requirements of the textile industry. To meet the irregular and unpredictable nature of these requirements, applicant has held out to serve a territory rather than specific points in these States. Upon consideration of this holding out and the actual service rendered, we are of the opinion that applicant has performed a cross-haul operation, on and continuously since June 1, 1935, as a motor common carrier of textile machinery and textile-machinery parts, between points in Virginia, located, on and west of U. S. Highway 501 from the North Carolina-Virginia State line to Lynchburg, on and south of U. S. Highway 460 from Lynchburg to Roanoke, and on and east of U. S. Highway 221 from Roanoke to the North Carolina-Virginia State line, points in North Carolina on and east of U. S. Highway 221, and points in South Carolina on and north of U. S. Highway 76.

General discussion.-To be entitled to a certificate under the "grandfather" clause of section 206 (a), an applicant must show that he has been in "bona fide operation" as a common carrier by motor vehicle within the claimed territory on June 1, 1935, and continuously since. As succintly stated by the Court in the Carolina case:

The questions are whether his service within the territory in question was sufficiently regular and whether his coverage of commodities was sufficiently representative to support a finding that he was in "bona fide operation" as a "common carrier" of the group of commodities or of the class or classes of property during the periods in question.

We have approached these questions in their logical order, first, by determining the commodities transported and then, the points served. Applicant has performed three distinct operations which differ one from another and, hence, the questions have been applied to each of the three operations. The evidence relating to each operation has been viewed as a whole in order to determine the commodities transported and this coverage in turn has disclosed the type of service, that is, either a general-commodity or a special-commodity service. Next, we have considered the points served in each particular type of service

and from them have determined the points and areas from and to which substantial service of that type has been rendered on and continuously since the statutory date.

In determining these questions, we have set forth the essential facts of record and drawn conclusions from them in conformity with the principles announced by the Supreme Court. Our conclusions respecting the commodities transported are in accord with the excerpts quoted from the decision of the Court. Our conclusions respecting the points served are based on the substantiality and continuity of applicant's service and are in conformity with the following statement of the Court:

The precise delineation of the area or the specification of localities which may be serviced has been entrusted by the Congress to the Commission. Alton R. Co. 1. United States, 315 U. S. 15. The Act provides the test of "bona fide operation”. That standard carries the connotation of substantiality. It also makes clear that a holding out to serve a specified area is not alone sufficient. It is "actual rather than potential or simulated service" which is required. McDonald v. Thompson, 305 U. S. 263, 266. Substantial, as distinguished from incidental, sporadic, or infrequent, service is required. * Furthermore, the characteristics of the transportation service rendered are relevant to the territorial scope of the operations which the Commission may authorize. Alton R. Co. v. United States, supra.

In recognition of this last statement, we have considered the transportation characteristics of the particular service rendered in defining the territorial scope of the respective operations. Thus, the territorial scope of the cross-haul operation has been defined broadly since it involves an irregular type of service which is performed between different points in three southern States from time to time. The territorial scope of the north-bound and south-bound operations has been defined more strictly since they involve a regular type of service which is performed between the same points and areas most of the time.

Applicant's north-bound and south-bound operations present a welldefined pattern which is typical of other irregular-route carriers domieiled in North Carolina. These carriers chiefly perform a specialcommodity service north-bound, dedicated to the transportation of specific commodities, such as textile products or new furniture, and a general-commodity service south-bound. They usually serve a small base area in the vicinity of their headquarters in North Carolina and much larger area in the North. Applicant's operations conform to this distinctive pattern of service, thereby indicating that its operations are similar to those of neighboring carriers and are not peculiar to it alone. Compare Billings Transfer Corp., Inc., Common Carrier Application, 41 M. C. C. 514, Reliable Trucking Co., Inc., Common Carrier Application, 41 M. C. C. 864, and No. MC-43608, Ross Motor Lines, Inc., Common Carrier Application, 43 M. C. C. 828.

581984-45-vol. 43- -17

EXTENSION APPLICATION

By application, No. MC-2253 (Sub-No. 1), filed September 8, 1939, the same applicant seeks a certificate of public convenience and necessity authorizing extension of operation, in interstate or foreign commerce, as a common carrier by motor vehicle of general commodities, with exceptions," between Hartsville, S. C., and points within 50 miles of Hartsville, hereinafter called the Hartsville area, on the one hand, and, on the other, points in Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, and the District of Columbia, over irregular routes. This application was filed for the purpose of establishing that public convenience and necessity require applicant's service at points in the Hartsville area in the event that authority to serve these points should be denied in the "grandfather" proceeding. Since such authority was denied in that proceeding, we shall proceed to a determination of the extension application on its merits.

Protestants challenge applicant's fitness on the ground that it began this operation illegally in 1938, long after the statutory date. As a matter of fact, applicant commenced the operation prior to June 1, 1935, by serving three points in South Carolina located in the Hartsville area, namely, McColl, Florence, and Lancaster. On the basis of the service rendered at these points and points in other sections of South Carolina, applicant claimed a right to serve all points in this State in its seasonably filed "grandfather" application. Although the service performed at points in South Carolina before and for some time after the statutory date was insufficient to prove this right, applicant's operation from and to this State was conducted under color of a claimed "grandfather" right and, hence, cannot be considered illegal. No other question was raised respecting applicant's qualifications and the evidence establishes that it is fit, willing, and able to perform this operation to the extent required by public convenience and necessity.

Applicant served points in the Hartsville area at irregular intervals until the fall of 1939 when it constructed a terminal at Hartsville and developed a regular service from and to that point. During the first 2 months of 1940. its tonnage aggregated 400,000 pounds a month, north-bound, and 100,000 pounds a month, south-bound. North-bound, 75 percent of the tonnage originated at Hartsville and 25 percent at Florence, Darlington, and Pageland, S. C. South-bound, one-half of the tonnage moved to Hartsville and one-half to 5 other points: Flor

Exceptions are gasoline, kerosene and fuel oil in bulk, dangerous explosives, currency, gems, works of art of high value, commodities requiring special equipment, and those contaminating to other lading.

ence, Darlington, Pageland, Dovesville, and McBee, S. C. Applicant served 14 regular customers, 5 at Hartsville, 3 at Florence, and 1 or 2 at each of the other 4 points. North-bound, it transported cotton piece goods, cotton yarn, copper rollers, and paper cones and tubes, and south-bound, the foregoing commodities and, in addition, petroleum products in containers, soap, floor coverings, harness, hardware, farm implements, drug-store supplies, candy, and commodities used in the construction of an electric-power project, such as copper wire, pole-line materials, and electric transformers. This group of commodities will cease to move when the power project is completed but the other commodities will continue to move regularly. All of the north-bound commodities moved to points in Maryland and the States north thereof, except paper cones and tubes which moved to Marion, N. C. Most of the south-bound commodities originated at points in Maryland and the States north thereof except a few which moved from Charlotte. Two-day service is rendered between the Hartsville area and points in the North, for example, shipments leaving the Hartsville terminal Monday night are delivered in New York City on Wednesday morning. Single-line service is furnished with through trucks between points in the North and Hartsville, and with pick-up trucks beyond Hartsville.

Applicant presented the testimony of 6 shipper witnesses, two of whom are interested only in south-bound shipments, as proof that public convenience and necessity require its service from and to points in the Hartsville area. A retail dealer in furniture at Hartsville receives less-than-truckload shipments almost every week from points in North Carolina, Virginia, Maryland, Pennsylvania, and New York. Practically all of these shipments have moved by rail for several years, but quicker deliveries are now desired. However, this witness was generally unfamiliar with the existing motor carriers serving Hartsville and had made no attempt to employ applicant although he had been aware of its service for almost a year prior to the hearing. A wholesale distributor of petroleum products at Florence receives shipments of oil in containers from Marcus Hook, Pa., which aggregate 15,000 to 25,000 pounds every 3 or 4 weeks. He has given all of these shipments to applicant since the summer of 1939 and has found its service satisfactory. This witness knows of no other motor carrier operating between Marcus Hook and Florence. He prefers direct service but concedes that interchange service would be practicable. He also receives shipments from Charlotte and is satisfied with the direct service furnished by a competing motor carrier from this point.

A shipper witness representing a cotton mill at Hartsville has no knowledge of any single-line motor carrier, except applicant, operating between that point and points in the North. His testimony with

respect to the adequacy of the existing service is of little value since he has no control over the routing of the traffic. However, three shipper witnesses who exercise such control testified in detail as to their experience with the existing carriers including applicant. They represent converters of cotton and rayon piece goods, with offices in New York City, who ship textile products between points in the Hartsville area and points in the North. Their shipments move between Hartsville, Darlington, and Lancaster and scattered points in the North, including Baltimore, Wilmington, York, Philadelphia, Bangor, Pa., Elizabeth, Paterson, New York City, New Haven, Providence, and Fall River. Most of their shipments move north-bound but some move south-bound. The traffic aggregates approximately 300,000 pounds a month during the busy season of 5 months and somewhat less throughout the rest of the year. In the busy season, quick and dependable transportation is very important to these shippers as goods must be delivered when promised or contracts will be canceled because of the keen competition in the textile industry. All three shippers have patronized applicant since 1938 and have found its single-line service superior to that of other carriers on the few occasions when the latter have been employed. These shippers desire the continuance of applicant's service as it has proved advantageous to them in the conduct of their businesses.

Protestant motor carriers submitted an exhibit listing the points in the Hartsville area and the motor carriers which hold out to serve the respective points. Only one of these carriers presented evidence as to the service actually performed. This carrier receives shipments originating in the Hartsville area from a conecting line at Charlotte and delivers them to New York City, usually, on the second morning. This joint-line service has not been used by the three shippers of textile products who supported the application. Protestant rail carriers submitted no evidence other than an exhibit listing their freight train schedules, which show, for example, that cars dispatched from Hartsville on Monday afternoon would arrive at New York City on Thursday evening.

The evidence is convincing that a public demand exists for applicant's service, but only for the transportation of textile products. Applicant has performed this transportation for three shippers in a satisfactory manner since 1938 and is qualified to continue it in the future. The geographical scope of this service covers Hartsville, Darlington, and Lancaster, on the one hand, and, on the other, scattered points in the North extending from Maryland to Massachusetts. Hartsville and Darlington are in Darlington County, and Lancaster is in Lancaster County, S. C. Service from and to these points, the most important in the respective counties, will be considered to es