erty, less depreciation, $472,706; intangible property $22,282; investments and advances, other $1,550; and deferred debits, prepayments $83,953 and other $48,774. Its liabilities were: Current liabilities $240,753, chiefly accounts payable $191,929; equipment obligations $422,499; other long-term obligations $6,596; reserves $8,466; capital stock $29,675 and premiums and assessments on capital stock $40,264; and earned surplus $458,751. Its income statements for 1945, 1946, and first 7 months of 1947 show net incomes of $17,555, $68,308, and $105,995, before provision for income taxes.

Garford's balance sheet as of September 30, 1947, shows assets aggregating $806,509, consisting of: Current assets $385,939, principally cash $91,099 and accounts receivable $206,323; tangible property, less depreciation, $318,612; investments and advances, associated companies $45,744 and other $15,906; and deferred debits, prepayments $36,912 and other $3,396. Its liabilities were: Current liabilities $200,258, chiefly notes payable $30,000, accounts payable $57,561, and taxes accrued $61,765; long-term obligations, other $136,923; capital stock $4,000; and surplus, unearned $109,862 and earned $355,466. Its income statements for 1945, 1946, and the first 9 months of 1947 show a deficit of $1,589 and net incomes of $136,519 and $120,933, respectively, before provision for income taxes. and net income of $74,933 for the last period after such provision.

The balance sheet of the estate's predecessors as of September 30, 1947, shows assets aggregating $26,105, consisting of: Current assets $18,345, principally accounts receivable $11,280, and material and supplies $3,838; carrier operating property, less depreciation, $7,439; and prepayments $321. Their liabilities were: Current liabilities $12,607, chiefly accounts payable $9,790; deferred credits $17,475; and partnership capital (debit balance) $3,977. Income statements for 1945, 1946, and first 9 months of 1947 show deficits of $14,555 and $2,737 and net income of $959, respectively.

No. MC-F-3698.-In an offer dated October 20, 1947, addressed by Trucking to Garford, which the latter accepted, Trucking agreed to purchase, for $20,000, Garford's operating rights therein described as follows:

Between points and places in New York in the New York Commercial Zone as defined in New York, N. Y. Commercial Zone, 1 M. C. C. 665, those in Hudson. Essex, and Union Counties, N. J., those in Bergen and Passaic Counties, N. J., on the east of U. S. Highway 202, and those in Middlesex County, N. J., on the north of New Jersey Highway S-28, on the one hand, and, on the other, Providence, R. I., points and places in that portion of Massachusetts on and east of U. S. Highway 5 from the Massachusetts-Connecticut State line to Northampton. Mass., thence on and south of Massachusetts Highway 9 to Junction U. S. Highway 20; thence on and south of U. S. Highway 20 to Boston, Mass., thence on

and west of U. S. Highway 1 from Boston to the Massachusetts-Rhode Island State line, including points and places in the Boston commercial zone as defined in Boston, Mass., Commercial Zone, 31 M. C. C. 405; those in that portion of Connecticut on and south of U. S. Highway 6.

The offer provides that the agreement to sell is conditioned upon approval by us of Garford's purchase of the operating rights and property of the estate, and that the purchase price is to be payable within 10 days after approval herein. Trucking's balance sheet, described above, does not show sufficient cash to cover the purchase price. The amount of available cash, however, fluctuates greatly from time to time, and was $58,000 on the date of the hearing, and it is proposed to finance the transaction from current funds without incurring any fixed charges. As above indicated, the quoted portion of the agreement refers to points "on the east" and "on the north" of certain highways in Bergen, Passaic, and Middlesex Counties, whereas the certificate authorizes service to and from points "on and east" and "on and north" of the specified highways in those counties. Our findings contemplate modification of the rights purchased to accord with the description in the certificate. Trucking is willing to write off immediately the amount assigned to its "Other Intangible Property" account as a result of the transaction, and our findings will be conditioned accordingly.

As seen, Trucking's certificated authority embraces the right to transport south-bound, general commodities from Providence and points within 25 miles thereof and those in southwestern Connecticut, to points in North Carolina east of, and including, Winston-Salem, Charlotte, and Monroe; and north-bound, textiles and textile products from points in the eight afore-mentioned North Carolina counties to points in Connecticut, Massachusetts, and Rhode Island, and manufactured tobacco products from Winston-Salem and Durham to Boston, Springfield, Providence, and points in southwestern Connecticut. Its leased rights authorize, in part, the transportation of general commodities, over regular routes, between Atlanta and New York and, over irregular routes, between Albemarle and Charlotte, and points within 10 miles thereof, on the one hand, and, on the other, points in Bergen, Essex, Hudson, Middlesex, and Passaic Counties. Through this transaction, Trucking would enlarge the territorial scope of its south-bound operations by acquiring rights to render single-line through service from points in southeastern Connecticut and in the Springfield-Northampton-Worcester-Boston-North Attleboro area to points in the greater portion of North Carolina and those in South Carolina and Georgia which are on the leased routes. The scope of the commodities, as well as that of the territory, would be enlarged in its north-bound

operations by the acquisition of rights to perform a similar service in the transportation of general commodities from the same points in Georgia, South Carolina, and numerous points in North Carolina to Providence and points in the considered areas in Connecticut and Massachusetts. Interchange of traffic and expenses incidental thereto would be eliminated, and transit time would be reduced. Garford would retain its employees.

Trucking's present south-bound service may be illustrated by a shipment from Springfield to Charlotte. The originating carrier picks up the traffic and delivers it to Trucking in Hartford, where it is held over for at least 24 hours before the latter is able to begin moving it to destination. The north-bound service is even less satisfactory because of the longer delays at the points of interchange and the division of rates demanded by connecting carriers. For these reasons, Trucking has been discouraging shippers from tendering for transportation general commodities destined to points in the considered areas. When such traffic is offered, however, it is accepted. For example, a shipment from Winston-Salem to Hartford is moved by Trucking to New York City in 18 hours and there interchanged. On less than truckloads, the normal transit time from Winston-Salem to Hartford is third morning, but manufactured tobacco products from WinstonSalem to Hartford, handled in the same vehicle with general commodities, without interchange, is delivered in approximately 25 hours. The certificate authorized in No. MC-31389 (Sub-No. 15) would not permit a substantial improvement in Trucking's service with respect to eliminating the interchange under discussion. Its rights and those proposed to be acquired are complementary from the standpoint of service. Following unification herein, Trucking will be expected to maintain the separate nature of the regular- and irregular-route operations and to move traffic only through authorized common gateways. Compare B. & E. Transp. Co., Inc.-Purchase-Merchants Transp., Inc., 36 M. C. C. 561.

No. MC-F-3699.-In an order entered October 31, 1947, in the Orphans Court of Somerset County, it is recited that on September 19, 1947, the court directed Jack M. Braverman, executor for the estate, to offer for sale at auction on October 17, 1947, its operating rights in No. MC-65086, motor-vehicle equipment, and certain real estate. It is further recited that such sale was held, at which Harris Klein's bid of $85,000 for all the properties was the highest and best one received. and was accepted by the executor. The order approves the sale and directs the executor to take all necessary steps to transfer title to the properties involved. Klein, in making the purchase, acted as attorney

for Garford. One-third of the purchase price has been paid, and the balance would be payable upon our approval of the transaction.

Garford values the operating rights at $50,000, but an independent appraiser estimates their value between $25,000 and $32,000. The motor vehicles, consisting of six trucks, five tractors, and seven semitrailers, were represented as having a net book value of $19,223 as of the date of the hearing; but this figure is not supported by any balance sheet statement of the estate and appears to be only an estimate. The real estate, located at 37 Lincoln Boulevard, Middlesex Borough, N. J., consists of a lot 175 by 150 feet and a one-story, concrete-block building of garage type containing approximately 8,700 square feet. The net book value of the real estate is not of record, but it has been valued by an independent appraiser at $30,500. Considering all the facts of record, we find that the purchase price is not unreasonable. In accordance with our usual practice in similar cases, the amount to be recorded by Garford on its books for the physical property and operating rights will not be approved at this time, but will be reserved for approval upon submission of the related journal entries proposed to record the transaction as required by our order herein. Garford is willing to write off immediately the amount assigned to its "Other Intangible Property" account as a result of this transaction, and our findings will be conditioned accordingly. Garford would pay the purchase price from current funds without incurring fixed charges. Garford would sell irregular-route operating rights between points in the base territory, on the one hand, and, on the other, Providence and points in parts of Massachusetts and Connecticut. It would acquire similar rights between points in Bergen, Essex, Middlesex, Passaic, Somerset, and Union Counties, on the one hand, and, on the other, points in Connecticut, Massachusetts, and Rhode Island, herein called the new base territory and the new radial territory, respectively. The new base territory does not include points in New York State or those in Hudson County within the New York City commercial zone, but it does include all those points in the other five counties now served by Garford, as well as points in Somerset County. The new radial territory includes all points in the three New England States now served by it. Garford transported freight for some 15 years between points in these States and those south of its base territory, such as Baltimore and Washington, D. C., through points in the base territory. However, Garford has been advised that it may not perform cross hauls in this manner because they would be contrary to the principle considered in Jack Cole Co., Inc., Common Carrier Application, 17 M. C. C. 723, 32 M. C. C. 199, and 41 M. C. C. 657. Since Garford and the estate may provide a two-line service by interchanging at a point com

mon to the rights of each, Newark in Essex County, for example, the former, after unification herein, would be authorized to provide singleline through service between the points in the respective areas by using common gateways, for example, Newark, Paterson in Passaic County, Middlesex in Middlesex County, and Elizabeth in Union County, but not Jersey City in Hudson County or New York City. Compare Carolina Freight Carriers Corp.-Purchase-Edmunds, 36 M. C. C. 259 and Transport Corp. of Virginia Extension-Maryland, 29 M. C. C. 810 and 43 M. C. C. 716. Garford would also acquire operating rights over regular routes between Bound Brook and Boston, over a combination of routes, serving all intermediate points, including Jersey City. Under the unified rights, it would have authority to transport traffic between points in its retained irregular-route area and those on the regular routes through a point common to the respective operating authorities, such as Jersey City. B. & E. Transp. Co., Inc.Purchase-Merchants Transp., Inc., supra. In this connection, however, it must be emphasized that Jersey City is an authorized gateway for this purpose only, and not for the movement of traffic between any points in the respective irregular-route areas which Garford would serve after the unification.

Garford handles daily close to 60 tons of traffic destined to New England points. A substantial portion of this tonnage is consigned to points beyond its authorized territory, such as Pittsfield and Lowell, Mass., and to those within but which it may not serve on cross hauls, such as New Britain, Conn., and is interchanged at Springfield, New Haven, and other points. The facilities of some connecting carriers are inadequate for this purpose and those of others are often congested, with the result that shipments are delayed and occasionally must be returned to terminals. Under the unified rights, most of the freight would move in single-line through service and transit time would be reduced by 24 or more hours. Economies incidental to the elimination of interchange would be realized. Garford is willing to take over the estate's employees. Many motor common carriers compete in the considered territory.

As previously stated, White Motor, controlled by Garford, operates as a contract carrier of clay products and refractory products between points in Middlesex County, on the one hand, and, on the other, points in several States, including those in Connecticut within 150 miles of South River, and of paint, empty containers, and materials, supplies, and equipment, used in the manufacture of clay and refractory products, between points in Middlesex County south of New Jersey Highway S-28, on the one hand, and, on the other, points in several States, including those in Connecticut within 150 miles of South River. Gar