PATTERSON, Chairman, dissenting in part: I do not agree with the majority in finding that defendants have been, or are, conducting any operations in violation of our certificates, as none of them contained or limit the operations to be performed thereunder. In my opinion, defendants' certificates should have been restricted to service which is auxiliary to or supplemental of that of its parent rail company. I agree with the action of the majority, so far as it goes, in reopening the cases covering operations listed in the appendix for the purpose of imposing, in the certificates, such specific conditions as may be justified. If conditions are imposed only as to such operations, defendants will still be free to continue to operate over a major portion of its routes without restriction. It seems to me inevitable that sooner or later consideration must be given to the propriety of imposing conditions covering defendants' entire operation and, in my opinion, the necessary steps should be taken to deal with the whole subject at one time instead of piecemeal. APPENDIX Points between which, and routes over which, defendant Transportation Company' is authorized to render only a service which is strictly auxiliary and supplementary to the train service of the defendant railway' Between Joplin, Mo., and Miami, Okla., over U. S. Highways 66, 166, and 69. Between Walnut Ridge and Memphis, Tenn., over U. S. Highways 67 and 63. 1 The Frisco Transportation Company. St. Louis-San Francisco Railway Company (J. M. Kurn and John G. Lonsdale, trustees). 43 M. C. C. No. MC-32783 SOUTHEASTERN GREYHOUND LINES SELF-INSURANCE Submitted July 5, 1944. Decided August 28, 1944 Application for authority to qualify as a self-insurer under section 215 approved. REPORT OF THE COMMISSION DIVISION 5, COMMISSIONERS LEE, ROGERS, AND PATTERSON BY DIVISION 5: By application filed May 12, 1944, Southeastern Greyhound Lines, Lexington, Ky., seeks authority to self-insure under the provisions of section 215 of the Interstate Commerce Act. On August 3, 1936, acting under section 215, we prescribed rules and regulations governing the filing and approval of surety bonds, policies of insurance, qualifications as a self-insurer, or other securities and agreements, for motor carriers subject to the act. Rule V is as follows: The Commission will give consideration to and will approve the application of a motor carrier to qualify as a self-insurer if such carrier furnishes a true and accurate statement of its financial condition and other evidence which will establish to the satisfaction of the Commission the ability of such motor carrier to satisfy its obligations for bodily injury liability, property damage liability, or cargo liability without affecting the stability or permanency of the business of such motor carrier. Applicant owns 494 busses and is engaged in the transportation of passengers, baggage of passengers, express, mail, and newspapers as a common carrier by motor vehicle in the States of Alabama, Florida, Georgia, Indiana, Kentucky, Ohio, Tennessee, and West Virginia, together with chartered service to any point in the United States or Canada, as described in Docket No. MC-32783 and subnumbers thereunder. The compelling motive for applicant's desire to become a selfinsurer is economy of operation. Applicant's present insurance arrangements are based on a certain percentage premium per hundred dollars of revenue and other agreements which result in the company's having been practically a self-insurer for the past 5 years. In view of this, and of the fact that the company has a Safety and Claims Department which has been successfully functioning for the past 10 years, applicant feels that the public interest would be adequately served and that it would effect a substantial saving in operating cost if it is authorized to self-insure its operations. "grandfather" rights Reddish had, subject to the limitations imposed by the findings in the purchase proceeding and the limitations agreed to by applicant in the stipulation previously referred to. In the second report, 43 M. C. C. 871, it was said: No extended discussion of the key-point restrictions and other restrictions imposed in certain proceedings (See Kansas City, S. Transport Co., Inc., Com. Car. Application, 28 I. C. C. 5, as representative) involving coordinated railand-motor service is necessary because these restrictions were adequately described in our prior report, and the conclusion reached that applicant was entitled to whatever "grandfather" rights Reddish had, subject to the limitations imposed by the findings in the finance proceeding and the limitation against St. Louis-Memphis service agreed to by applicant in the stipulation referred to in the prior report. In Frisco Transp. Co.-Purchase-Ozark Truck Lines, Inc., 35 M. C. C. 255, the Transportation Company was authorized to acquire the operating rights of Ozark Truck Lines, Inc., covered by a "grandfather" application in No. MC-15911 and Sub-Nos. 2 and 3 therein, over a regular route, between Treece, Kans., and St. Louis, by way of Springfield, approximately 330 miles, including certain intermediate and off-route points. The "grandfather" application embraced other operating rights between Chicago, Ill., and St. Louis, previously sold to another carrier, and certain irregular routes which the vendee agreed to have eliminated. Accordingly, in approving the purchase of the rights remaining between Treece and St. Louis, the findings provided for the exclusion from the certificate of all irregular-route rights and all rights to render service from or to, or to interchange traffic at, any point not a station on the line of the railway if more than 10 miles by highway from such a station. No reservation of the right subsequently to impose further conditions or limitations was made. The remaining rights, the purchase of which was approved in the proceeding just cited, were assigned Docket No. MC-89913 (SubNo. 8). This was the subject of two hearings, a report and a report on reconsideration, Ozark Truck Lines, Inc., Common Carrier Application, 27 M. C. C. 803 and 32 M. C. C. 459, and a report and order of an examiner on further hearing, 41 M. C. C. 955, which became effective as the order of the Commission on December 10, 1942, no exceptions having been filed. A considerable part of the operations covered by the No. MC-89913 (Sub-No. 8) application, just referred to, had been included in "grandfather" rights acquired by the Transportation Company in the other proceedings hereinbefore considered. These duplications are described in considerable detail in the report on reconsideration, 32 M. C. C. 459, at page 460. In view of the duplications, it was found that as a result of the Ozark acquisition, the Transportation Company was additionally entitled to operate only between Carthage and Springfield, over U. S. Highway 66. However, by the recommended order of the examiner on further hearing, 41 M. C. C. 955, it was also found entitled to operate to and from intermediate points on U. S. Highway 66 between St. Louis and Springfield, which are stations on the line of the railway or not more than 10 miles by highway from such stations, and at certain specified off-route points, in addition to the operations previously authorized. The operations covered by the No. MC-89913 (Sub-No. 8) application are at present authorized in the certificate issued December 20, 1943, free from any restrictions as to the character of the service to be performed. In Frisco Transp. Co.-Purchase-Bennett, 35 M. C. C. 802, the Transportation Company was authorized to purchase operating rights of T. N. Bennett, doing business as Bennett Truck Lines, between Lake City and Blytheville, Ark., over Arkansas Highway 18, approximately 45 miles. The recommended order of the examiner, which became effective as the order of the Commission, contained the proviso that the authorization of the purchase was subject to such further limitations, restrictions, or modifications as the Commission might thereafter find it necessary to impose in order to insure that the service would be auxiliary and supplementary to that of the railway. The Transportation Company's application for these rights was assigned No. MC-89913 (Sub-No. 10). The authority thereby sought is included in the certificate of December 20, 1943, which, in connection with the Lake City-Blytheville operation, contains a proviso the same as that in the recommended order of the examiner, referred to above. From the foregoing, it is apparent that all of the acquisitions of operating rights by the Transportation Company, except the Reddish and Ozark acquisitions, were approved subject to the condition that the service to be performed is to be auxiliary and supplementary to that of the railway. It is undisputed on the record before us that this defendant is engaged in performing an independent motor common carrier service of the same kind and character as is performed by motor common carriers generally. It holds itself out to transport, and does transport, shipments moving entirely by motor vehicle between points on its lines, and between points on its lines and points on the lines of other motor common carriers, under its own bills of lading, and it is a party to and collects all-motor rates, both those having local application over its lines and those having joint application over its lines and the lines of other motor common carriers. Its service in this respect is exactly the same as that rendered by a motor common carrier which is not engaged in performing a service auxiliary to or supplemental of rail service. Both defendants are parties to substituted Freight Service Directory, I. C. C. No. 5, MF-I. C. C. No. Applicant's financial condition is reflected in a balance sheet statement submitted with its application for authority to self-insure which shows assets as of March 31, 1944 of $15,342,813. Current assets were $8,388,304 of which $6,932,494 was in cash or temporary cash investments. Current liabilities were $7,858,344. Capital and surplus in excess of all liabilities amounted to $4,475,065. It appears that applicant possesses sufficient resources to meet the obligations with which it might be confronted as a self-insurer, arising out of its operations in interstate or foreign commerce as described herein, without affecting the stability or permanency of its business. Upon the information and facts submitted, we find that the application of Southeastern Greyhound Lines, for authority to self-insure, should be approved. An appropriate order will be entered. 43 M. C. C. |