primarily is limited to the transportation of rail traffic moving on the railroad's bills of lading. The railroad does not desire to continue the two types of service. It has decided, as a matter of policy, to limit the service of its motor-carrier subsidiaries to that which is auxiliary to or supplemental of rail service, with certain minor exceptions. The tonnage transported by Alko is predominantly intrastate and, under the Pennsylvania law and the regulations of the Pennsylvania Public Utility Commission, on intrastate traffic Alko is required to render common-carrier motor service to all shippers and receivers of freight regardless of whether such service is auxiliary to or supplemental of rail service. These requirements make it difficult to confine the interstate operations of Alko solely to service as an adjunct of the railroad. After consideration, it was decided that it would be neither feasible nor practical to segregate the operations of Alko so that it would provide a general common-carrier service for the public in intrastate commerce and service in interstate commerce limited to that which would be auxiliary to or supplemental of rail service. Consequently, as a first step in the establishment of the new policy, it was decided to dispose of the operating rights and property of Alko in the manner proposed.

FINANCIAL DATA

Motor Freight's balance sheet as of December 31, 1946, shows assets aggregating $859,675, consisting of: Current assets $204,821, principally cash $29,986 and accounts receivable $136,753; carrier operating property, less depreciation, $531,618; intangible property $32,752; investments and advances, associated companies $50,000; and deferred debits $40,484, principally prepayments $37,984. Liabilities were: Current liabilities $222,138, principally accounts payable $82,794 and taxes accrued $76,941; deferred credits, other $325; capital stock $75,000; premiums and assessments on capital stock $10,000; and earned surplus $552,212. Its income statements for 1944, 1945, and 1946, show, before provision for income taxes, net incomes of $80,084, $69,804, and $158,575, respectively, and, after such provision, $43,893, $33,719, and $89,061, respectively.

Transfer's balance sheet as of June 30, 1946, shows assets aggregating $1,339,064, consisting of: Current assets $592,605, principally cash $175,950 and accounts receivable $244,940; carrier operating property, less depreciation, $506,783; intangible property $34,000; investments and advances, associated companies $128,182; other investments and advances $5,000; and deferred debits $72,494, principally prepayments $55,110. Liabilities were: Current liabilities $451,320, principally payables to associated companies $210,322, accounts payable $146,286, and taxes accrued $58,504; advances payable, associated companies $61,000; long-term obligations, other $9,330; deferred credits,

other $1,027; capital stock $274,000, and earned surplus $542,387. Its income statements for 1944, 1945, and the first 6 months of 1946, show, before provision for income taxes, net incomes of $63,630, $88,874, and $113,277, respectively, and after such provision, $40,290, $52,829, and $68,048, respectively.

Merchants Terminal's balance sheet as of June 30, 1946, shows assets aggregating $4,431,341, consisting of: Current assets $1,544,327, including cash $356,652; tangible property, less depreciation, $2,200,202; investments and advances, associated companies $513,135, and other $113,350; and deferred debits $60,327. Liabilities were: Current liabilities $826,332, principally notes payable $695,867; long-term obligations, other $100,000; deferred credits $4,256; reserves, other $38,694; capital stock, preferred, $1,250,000, and common $441,000; and earned surplus $1,771,059. Its income statements for 1944, 1945, and the first 6 months of 1946, show, before provision for income taxes, net incomes of $395,009, $192,786, and $234,636, respectively, and, after such provision, $209,993, $128,591, and $138,971 respectively.

Alko's balance sheet as of December 31, 1946, shows assets aggregating $176,115, consisting of: Current assets $107,597, principally cash $55,688, and accounts receivable $33,833; carrier operating property, less depreciation, $39,903; and deferred debits $28,615. Liabilities were: Current liabilities $169,772, principally payables to associated companies $148,895; advances payable, associated companies $250,000; deferred credits, other $206; capital stock $65,955, and earned surplus (debit balance) $309,818. Its income statements for 1944, 1945, and 1946, show deficits of $100,800, $47,720, and net income of $286, respectively.

GENERAL

Motor Freight's existing routes connect with those proposed to be acquired at Harrisburg, Lancaster, and York, and coincide with them between Harrisburg and Lancaster, between Harrisburg and Hershey, between Harrisburg and York, and between Lancaster and Hanover, an aggregate of 115 route miles. Excluding the routes for which a certificate is requested, the principal nonduplicate routes involved in the transaction are between York, Chambersburg, and Hagerstown, aggregating 169 route miles. Other small nonduplicate routes are extensions of the duplicate routes in the triangular area between Harrisburg, York, and Lancaster. The routes over which Alko and Motor Freight each would continue to operate, concerning which a certificate is sought, aggregate approximately 345 route miles.

If the transaction is approved and the certificate issued, Motor Freight proposes to perform through service, without interchange, between Pittsburgh and points on its present routes, as well as points

on the routes south and east of Harrisburg and Chambersburg which it would acquire from Alko. It proposes to make arrangements with other carriers at Pittsburgh for the interchange of traffic moving to and from points beyond Pittsburgh; and it proposes to afford after noon pick-up and next-morning delivery on shipments between the Hagerstown area, on the one hand, and, on the other, Lancaster, Hárrisburg, and Pittsburgh, and between Pittsburgh and Harrisburg.

Motor Freight maintains terminals in Baltimore, Harrisburg, York, Hanover, Lancaster, Philadelphia, Reading, and New York, all of which are owned, except those in Baltimore and Hanover. It pro poses to establish terminal facilities at Chambersburg and Pittsburgh. At all of its terminals except the one at Hanover, Motor Freight has garage and maintenance facilities for the servicing and repair of equip ment. It has sufficient equipment and other facilities to conduct the unified operations. Available for service on the unified routes are 77 tractors, 109 trailers, and 88 trucks, and additional equipment would be purchased when and if required. 1,214.000,00% 4 moisirong doa Although, as indicated, on shipments moving between points on Motor Freight's existing routes, on the one hand, and Pittsburgh, on the other, interchange at present necessary would be eliminated, on shipments moving to and from points on the Harrisburg-Pittsburgh and Chambersburg-Pittsburgh routes, it would be necessary to interchange the shipments with Alko or some other carrier. Thus, division of the routes as proposed would require interchange on some shipments which presently may be transported by Alko without interchange.

The gist of applicants' evidence was that Motor Freight could.render a better service over the considered routes than Alko has rendered in the past, and that the service at present available on traffic moving between Pittsburgh and points east thereof, which it would serve, is înadequate to meet the needs of the shipping public. Protestants contend, and introduced evidence to show, that the service which is now available is adequate, and that approval of the application would cause a diversion of freight from protestants and jeopardize their satisfactory existing services. The services afforded by protestants, all of which are motor common carriers, will be summarized below to the extent pertinent to this proceeding, mahd or not, New! 81 Lancaster Transportation Company transports general commodities over regular routes between Baltimore and Harrisburg via York, between Lancaster and York, and between Pittsburgh and Philadelphia via Harrisburg and Lancaster or York. On traffic moving to and from Pittsburgh, it is restricted against serving York, Middletown, Harrisburg, Hagerstown, Wrightsville, Hershey, and Spring Grove, all of which are points on the routes proposed to be transferred. This carrier operates 225 units of equipment and maintains terminals of

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substantial size in Lancaster, Philadelphia, and Pittsburgh. It op erates a daily schedule of 4 units between Lancaster and Pittsburgh, which are used to about 90 percent of capacity. It has adequate terminal facilities and equipment to handle additional business if offered to it. It accepts interline freight from all carriers and regularly inter lines at Pittsburgh with 14 carriers serving points in Ohio, West Vir ginia, Indiana, Illinois, and Michigan. vreme, bon b2 1 sangpå di Bernard F. Rauch transports general commodities over regular routes between Hanover and Pittsburgh via York, Harrisburg, Middlesex, and Irwin, serving those and other intermediate and off-route points. He maintains terminal facilities at Hanover, York, and New Cumberland (within the business district of Harrisburg) and on the date of the hearing operated 9 tractors, 11 trailers, and 6 trucks. Interchange arrangements are in effect at Pittsburgh for the handling of traffic moving beyond that point. He could handle additional freight with his present equipment. Hartman's Transportation Co. transports general commodities over regular routes between Harrisburg and points in Pennsylvania west thereof, including Reading. In Hartman's Transp. Co, Purchase÷Rauch, 45 M. C. C. 832, we authorized Hartman's Transportation Co. to purchase the operating rights and property of Raucho antes none shoqenit nodetega)

Royal Transportation Company, transports general commodities over regular routes between Richmond, Va., Washington, Baltimore, Pittsburgh, and Cleveland, Akron, and Youngstown, Ohio. It has 35 units of equipment, and operates 6 to 8 units each day between Baltimore and Pittsburgh, where it interlines with a number of car! riers. It is not using its equipment to capacity, and is fearful that, if the instant application is granted, some of the traffic carried by it will be diverted to Motor Freight.bind brodom) woteron. H daud In addition to transportation of certain commodities over irregular routes, Harry G. Massey transports general commodities over regular routes, among others, between Hagerstown and Washington via Freda erick, Md., and Baltimore; between Washington and West Virginia points via Winchester, Va.; between Hagerstown and New York via Philadelphia; between Philadelphia and Harrisburg via Lancaster and between Allentown and Lancaster via Reading; with service to most intermediate and numerous off-route points. He owns 25 traço tors, 45 semitrailers, and 34 trucks, and leases from 10 to 15 additional tractor-trailer units a day. He maintains terminals at Hagerstown, his headquarters, New York, Philadelphia, Harrisburg, Baltimore, and Washington, as well as at other points on his routes. "Howard Miller and Nellie E. Miller, doing business as Baltimore and Pittsburgh Motor Express, transport general commodities over regular routes, among others, between Pittsburgh and Washington over U. S. Highway 30 50 M. C. C. of fetuel ei dgund: MI Dna si of eten suusšni zutioq

to Breezewood, thence via Hagerstown and Baltimore, serving all intermediate and certain off-route points, including all points within a radius of approximately 50 miles of Pittsburgh. They maintain terminals at Baltimore and Pittsburgh and have an agent at Hagerstown, and they operate 15 tractors, 27 trailers, and 16 pick-up and delivery trucks. They interchange traffic with numerous other carriers, and in August 1946 and January 1947, Motor Freight delivered to them at Baltimore, for delivery in the Pittsburgh area, 13,489 pounds and 13,993 pounds, respectively. Their equipment is not always loaded to capacity.

Charlton Bros. Transportation Company, Inc., transports general commodities over regular routes extending from Hagerstown to Harrisonburg, Va., via Winchester, Va., to Chambersburg via Waynesboro, Pa., to Philadelphia via Harrisburg and Lancaster, and to Baltimore via Martinsburg, W. Va., with service at substantially all intermediate points. Terminals are maintained in Hagerstown, Philadelphia, Baltimore, and Winchester, and it operates 18 tractors, 27 semitrailers, and 28 trucks. Traffic is solicited at points served for delivery in western Pennsylvania, western West Virginia, and Ohio, interchange being made at Winchester. The Cumberland Motor Express Corporation transports general commodities over regular routes, among others, between Baltimore and Pittsburgh over 2 principal routes, one via Hagerstown, Cumberland, and Uniontown, Pa., and the other via Emmitsburg, Md., and Waynesboro and Breezewood, Pa., the latter route being over U. S. Highway 30 between Pittsburgh and Breezewood, with service at substantially all intermediate points. It may also operate over the Pennsylvania Turnpike. It operates 18 tractors, 27 trailers, and 15 trucks, and maintains terminals at Pittsburgh, Hagerstown, Cumberland, Baltimore, Washington, Philadelphia, and Wilmington, Del.

Continental Transportation Lines, Inc., transports general commodities over regular routes extending from Pittsburgh to Baltimore via McConnellsburg and Uniontown, Pa., and Hagerstown, and to New York City via Harrisburg, Lancaster, and Philadelphia, and to Cleveland and Cincinnati, Ohio. It maintains terminals at New York, Philadelphia, Baltimore, Pittsburgh, and other points, and operates 150 tractor-trailer units in line-haul service. So far as affected by this application, it is primarily interested in service between Pittsburgh, New York, Philadelphia, Baltimore, and Washington.

Kramer Bros. Freight Lines, Inc., transports general commodities over regular routes, among others, between Chicago and New York via Cleveland, Pittsburgh, and Harrisburg, and between Pittsburgh and Philadelphia, Baltimore, and Washington, with service to and from most intermediate points. Its service to Harrisburg, and other points intermediate to it and Pittsburgh is limited to shipments of