that a granting thereof would be contrary to the principles announced in Copes Broker Application, 27 M. C. C. 153, where the Commission found that close scrutiny should be given brokerage applications of those who by reason of past or present connections, or otherwise, are able to control the traffic of large shippers. Such applications should be denied when services of real value to the carriers are not to be given. Services of value to the shippers or to others, which are to be paid for by the carriers, do not justify the grant of a license.

We find that applicant has failed to show that his operation as a broker in arranging transportation by motor vehicle, in interstate or foreign commerce, in the manner described will be consistent with the public interest and the national transportation policy, and that the application should be denied.

An appropriate order will be entered.

43 M. C. C.

No. MC-729231

INTERSTATE TRUCK SERVICE, INC., COMMON CARRIER APPLICATION

Decided June 2, 1944

1. Upon reconsideration in No. MC-72923, findings in prior report on reconsideration, 42 M. C. C. 870, modified. Application to the extent reopened denied. Other prior reports, 21 M. C. C. 645, and 41 M. C. C. 443.

2 Upon reconsideration in No. MC-72923 (Sub-No. 1), findings in prior report, 42 M. C. C. 836, modified. Public convenience and necessity found to require operation by applicant as a common carrier by motor vehicle, in interstate or foreign commerce, (1) of general commodities, with exceptions, (a) between a described base territory in Ohio and West Virginia, on the one hand, and, on the other, designated territories in southwestern Pennsylvania and western New York; all points within 30 miles of Philadelphia. Pa., New York City, and points within 30 miles thereof, and Sparrows Point, Md.; and (b) between West Virginia points in the base territory and all points in Ohio; (2) of special commodities (a) from points in the base territory to certain points in Pennsylvania, Maryland, the District of Columbia, Indiana, and Kentucky; and (b) from Marcus Hook, Pa., and Baltimore, Md., to certain points in Ohio within 80 miles of Wheeling, W. Va., and to Parkersburg and Orma, W. Va.; (3) of iron and steel articles from Ohio points in the base territory to Dunbar, W. Va.; and (4) of evaporated milk from Barnesville, Ohio, to certain points in Pennsylvania, the District of Columbia, and Maryland. Issuance of a certificate approved upon compliance by applicant with certain conditions, and application in all other respects denied.

Appearances as shown in prior reports and also John T. Money for protestants.

REPORT OF THE COMMISSION ON RECONSIDERATION

DIVISION 5, COMMISSIONERS LEE, ROGERS, AND PATTERSON BY DIVISION 5:

By application in No. MC-72923, as amended, filed February 10, 1936, under the "grandfather" clauses of sections 206 (a) and 209 (a) of the Interstate Commerce Act, Interstate Truck Service, Inc., formerly of Wheeling, W. Va., but on and since November 1, 1943, of Martins Ferry, Ohio, seeks a certificate or a permit authorizing continu

This report also embraces No. MC-72923 (Sub-No. 1), Interstate Truck Service, Inc.Extension-Ohio Valley.

Substitution of Interstate Truck Service, Inc., as applicant in place of Paul H. Michael, doing business as Interstate Truck Service, Inc., was approved on July 28, 1938, in No. MC-FC-4040.

ance of operation as a common or contract carrier of general commodities between points in Georgia, South Carolina, North Carolina, Virginia, West Virginia, Maryland, the District of Columbia, Pennsylvania, New Jersey, New York, Kentucky, Missouri, Illinois, Indiana, and Ohio, over irregular routes. Several motor and rail carriers oppose the application.

This application has been twice heard and has been the subject of three prior reports. The history of the proceedings is set forth in the prior report on reconsideration herein of August 11, 1943, 42 M. C. C. 870, and will not be repeated here. In that report the findings in the report on further hearing, 21 M. C. C. 645, were modified. Applicant was authorized under section 206 (a) of the act to continue the transportation of general commodities, except articles of unusual value, livestock, dangerous explosives, commodities in bulk, commodities requiring special equipment, and household goods as defined in Practices of Motor Common Carriers of Household Goods, 17 M. C. C. 467, (a) between all points in Ohio and West Virginia within 2 miles of the Ohio River northerly from Sistersville, W. Va., and Fly, Ohio, to the junction of the West Virginia-Ohio-Pennsylvania State boundaries, hereinafter called the base territory, on the one hand, and, on the other, Baltimore, Md., Pittsburgh and Philadelphia, Pa., and (b) from Lancaster, Pa., to points in the base territory, over irregular routes, and under section 207 of the act to transport general commodities, with the exceptions mentioned in this paragraph, (1) between points in the base territory, on the one hand, and, on the other, points in Pennsylvania (except as covered by the findings under section 206 (a) of the act (a) to and from Pittsburgh and Philadelphia and (b) from Lancaster) on and south of U. S. Highway 62 from the OhioPennsylvania State boundary to Franklin, Pa., U. S. Highway 322 from Franklin to Harrisburg, Pa., and U. S. Highway 22 from Harrisburg to Easton, Pa., and (2) between points in the West Virginia portion of the base territory, on the one hand, and all points in Ohio, on the other, over irregular routes. The application in all other respects was denied. This action reduced the size of the Ohio-West Virginia base territory and eliminated points in Pennsylvania north of the above-described line and all points in Maryland (except Baltimore), Virginia, the District of Columbia, and New Jersey, and those in the New York commercial zone embraced in the authority granted applicant in the prior report on further hearing.

Upon petitions of applicant and protestant, rail carriers in official territory, by an order of December 7, 1943, we reopened the proceeding

Except articles of extraordinary value, high explosives, commodities in bulk, commodities requiring special equipment, or those contaminating to other lading.

This report embraced No. MC-72980. Paul H. Michael Broker Application, but the subsequent reports do not deal with that application. The denial thereof remains unchanged.

for reconsideration on the present record for the purpose of determining the scope of authority that should be granted under section 207 (a) of the act and the order in the "grandfather" proceeding entered in connection with the report on reconsideration of August 11, 1943, as subsequently modified, insofar as it denied authority to continue operations commenced between June 1 and October 15, 1935, was vacated and set aside.

By application No. MC-72923 (Sub-No. 1) filed September 30, 1941, as amended, hereinafter called the extension proceeding, the same applicant seeks a certificate of public convenience and necessity under section 207 of the act authorizing operation as a common carrier by motor vehicle, in interstate or foreign commerce, of general commodities, except articles of unusual value, high explosives, commodities requiring special equipment, household goods, and commodities injurious or contaminating to other lading, between the points and over the routes (both regular and irregular) described in the appendix hereto. Certain rail and motor carriers oppose the application.

The prior report in the extension proceeding, 42 M. C. C. 836, decided April 15, 1943, denied the application. It was issued approximately 6 months after the report on further hearing of November 10, 1942, in the "grandfather" proceeding granting applicant extensive operating rights. The denial was based on the grounds that to a large extent the authority sought had been granted in the "grandfather" proceeding and that as to the remainder of the authority sought applicant had failed to show that public convenience and necessity required the proposed operations. As stated in the prior report on reconsideration of August 11, 1943, the "grandfather" proceeding materially reduced the operating authority granted in the report on further hearing. Thus, the prior finding in No. MC-72923 (Sub-No. 1) rests principally upon a situation that no longer exists.

Upon petition of applicant, by order of December 7, 1943, we reopened No. MC-72923 (Sub-No. 1) for reconsideration on the present record for the purpose of determining the scope of authority that should be granted under section 207 of the act and vacated and set aside the order denying the application.

"GRANDFATHER" APPLICATION

Applicant in its petition does not question the findings under section 207 in the report on reconsideration of August 11, 1943, hereafter called the prior report, except with respect to the denial of the authority sought between points in the base territory, on the one hand, and points in New Jersey and points in the New York commercial zone, as described in New York, N. Y., Commercial Zone, 1 M. C. C. 665 and 2 M. C. C. 191, on the other. The base territory fixed in that report

is acceptable to it. The facts relating to applicant's operations between these points are conceded to have been accurately set forth in the prior report, but it is asserted that we reached an incorrect conclusion therefrom.

Protestant rail carriers in their petition question only the findings in the prior report under section 207 of the act authorizing applicant to transport general commodities, with exceptions, between points in the base territory, on the one hand, and all points in Ohio and the authorized points in Pennsylvania, on the other. They do not question the conclusion reached regarding the base territory, but maintain that the evidence does not warrant the authority granted between the base territory and points in Ohio and Pennsylvania. They say that applicant should be granted, in addition to the authority granted under section 206 (a) of the act, authority to transport rugs from Marcus Hook, Pa., to Wheeling, W. Va., and steel articles between Warwood, W. Va., on the one hand, and Dayton and Moraine, Ohio, on the other. Both Wheeling and Warwood are points within the base territory. Thus, all that remains for consideration in this respect is whether or not the present and future public convenience and necessity require the continuance of the operations begun during the interim period, June 1 to October 15, 1935, between points in the base territory, on the one hand, and, on the other, points in New Jersey, the New York commercial zone, the part of Pennsylvania described in the findings of the prior report, and Ohio. These matters will be considered in the order named, with the discussion relating to operations between points in the base territory, on the one hand, and points in the named States, on the other.

New Jersey-Applicant transported during the interim period 1 shipment of galvanized steel sheets from Martins Ferry, Ohio, to Hackettstown, N. J., and 1 shipment each of lineoleum, bonding mortar, and chromix from Kearny, N. J., to Wheeling, from Gillespie, N. J., to Steubenville, Ohio, and from Sayersville, N. J., to Steubenville, respectively. One shipment of mortar in drums moved from South River, N. J., to Steubenville in 1936. Three shipments of caps and collapsible tubes moved from Wheeling to Jersey City in 1937. Ten shipments of window glass, wall tile, floor tile, metal tubes, and bottle caps moved from Sistersville or Wheeling, W. Va., to Trenton, Palisades Park, Newark, Jersey City, or Morris Plains, N. J., and 7 shipments of rugs, linoleum, or synthetic gum compound moved from Trenton or South Bound Brook, N. J., to Wheeling in 1938. Twentythree shipments of wall tile, floor tile, boat davits, collapsible tubes, earthenware, and sheet steel moved from Wheeling, Chester, or Weirton, W. Va., to Lyndhurst, Perth Amboy, Jersey City, Parlin, Palisades Park, Newark, South Kearny, or Camden, N. J., and 12 shipments