present record. The facts of record are set forth in the prior report and will be restated here only to the extent necessary for an understanding of the issues.

In its petition applicant maintains that a grant of authority to serve certain points was unopposed by protestant; that rail carriage is inadequate and unsatisfactory; that large quantities of salt are shipped by motor carrier; that no adequate motor-carrier service is available; and that the application should be granted.

The application is supported by three shippers, all of whom presently ship salt to the area under consideration. Shippers estimate that approximately 298,000 tons of evaporated salt and 234,000 tons of rock salt are consumed annually in the destination States under consideration. Of this total, International Salt Co. supplies approximately one-third of the evaporated salt and 75 percent of the rock salt, although it appears that not all of this tonnage moves from the origins under consideration here. This shipper operates salt evaporating plants at Watkins Glen and Ludlowville and a rock salt mine at Retsof. Morton Salt Co., which operates a salt evaporating plant at Silver Springs, is a major competitor of International Salt Co. in the area under consideration. Harvey Salt Co. obtains salt at Watkins Glen and Ludlowville and distributes it to customers in the destination States. The supporting shippers have experienced a growing trend on the part of their customers to request motor-carrier transportation, and some have converted their facilities to accept motor delivery of salt in bulk. Demands by local and State authorities for motor transportation of rock salt used for highway maintenance have recently increased.

Rail carriers transport the major portion of shippers' salt, but motor-carrier service is used to meet the needs of customers located at off-rail points or other receivers desiring a more expeditious service in order to maintain a lower inventory. Although there appears to be some motor-carrier service available to shippers, the motor carriers providing such service, except Parkville, have not appeared in opposition to the application, and their authorities and willingness to provide service are not of record. Shippers complain that these carriers are unable to provide services to all points in the described destination States, and that they make their vehicles available only when they have inbound traffic, so that shippers suffer delays in pickup of their shipments. Shippers wish to offer motor-carrier delivery of salt, in bulk as well as in bags, to their customers because it is more convenient and economical than rail service. They are familiar with applicant's equipment, and they would use its service to points within the proposed destination States.

Parkville appeared in opposition to the application. He formerly held authority to serve certain portions of the area under consideration, although at the time of the hearing his authority had been leased to Weldon T. Poole, doing business as Poole Trucking Co. Later, this authority reverted to Parkville; and subsequently, pursuant to authority granted in No. MC-FC-62886, it was transferred by Parkville to Thomas F. Buzby, doing business as Maryland-Pennsylvania Express, of Baltimore, Md.

The evidence establishes that a substantial amount of salt is shipped annually to customers throughout the proposed area. Although the greater part of shippers' traffic moves by rail, individual customers as well as local and State authorities have expressed a desire to receive salt by motor vehicle. Truck delivery of salt will be more economical for receivers, while at the same time it will afford shippers and their customers a flexibility of service which rail carriers cannot provide. It seems clear that the greater part of this traffic will continue to move by rail. We think it unlikely that a grant of authority to applicant will result in any materially adverse effect upon rail carriers, and none have appeared in opposition to the application. The only motorcarrier opposition was that of Poole and Parkville who no longer have an interest in the application. Buzby, the new holder of the authority formerly held by Parkville, has expressed no interest in this application, and his willingness and ability to provide the needed service is not of record. Shippers have attempted to use the service of other motor carriers, who are not parties to this proceding, but without success. We believe that the shippers are entitled to the advantages inherent in motor-carrier service, and there is no evidence on this record that any such service is available. We conclude that a grant of authority as sought is required to enable applicant to provide shippers with a complete service to meet their present and future transportation needs.

In Interpretation, Operating Rights-Returned Containers, 82 M.C.C. 677, it was found that specific authority to transport, or return, pallets used in the outbound movement is not necessary. This portion of the application, therefore, will be denied.

We find that the present and future public convenience and necessity require operation by applicant in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, of salt (1) from Silver Springs, Watkins Glen, and Ludlowville, N.Y., to points in Delaware, Maryland, Virginia, West Virginia, Ohio, and the District of Columbia, and (2) from Retsof, N.Y., to points in Virginia, West Virginia, Ohio, and the District of Columbia; that applicant is fit, willing, and able properly to perform such service

and to conform to the requirements of the Interstate Commerce Act and our rules and regulations thereunder; and that a certificate authorizing such operations should be granted.

Upon compliance by applicant with the requirements of sections 215, 217, and 221(c) of the act and with our rules and regulations thereunder, within the time specified in the order entered concurrently herein, an appropriate certificate will be issued. An appropriate order will be entered.

COMMISSIONER MURPHY, whom COMMISSIONER HERRING joins, dissenting:

I would deny the application for the reasons given in the prior report.

84 M.C.C.

No. MC-118621 (SUB-No. 3)1

BLACK DIAMOND TRANSPORT COMPANY EXTENSIONWILKES-BARRE, PA., AREA

Decided December 30, 1960

Public convenience and necessity found not shown to require operation by appllcant as a common carrier by motor vehicle, over irregular routes, of general commodities, with certain exceptions, between Wilkes-Barre and Sayre, Pa., on the one hand, and, on the other, designated points in Pennsylvania and New York. Applications denied.

Richard D. Lalanne for applicant.

John E. Fullerton for protestants in No. MC-118621 (Sub-No. 3). C. J. Braun, Jr., G. F. Gunn, Jr., and Irving Klein for protestants in No. MC-118621 (Sub-No. 5).

Peter T. Beardsley, Leonard A. Jaskiewicz, James R. Lindsay, William J. O'Brien, Jr., and Chester A. Zyblut for protestants in both proceedings.

REPORT OF THE COMMISSION

DIVISION 1, COMMISSIONERS MURPHY, GOFF, AND HERRING BY DIVISION 1:

These proceedings were heard on separate records and were the subject of separate examiner's reports and recommended orders. As they involve related issues and the same applicant, we will dispose of them here in a single report. Exceptions to the order recommended by the examiner in No. MC-118621 (Sub-No. 3) were filed by certain protestants, and applicant replied. Exceptions to the order recommended by the examiner in No. MC-118621 (Sub-No. 5) were filed by applicant, and certain protestants replied. Our conclusions in the former proceeding differ from those recommended.

In No. MC-118621 (Sub-No. 3), by application filed June 18, 1959, as amended, Black Diamond Transport Company, a corporation, of Newark, N.J., seeks a certificate of public convenience and necessity authorizing operation, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, of general commodities, including commodities requiring special equipment, but excluding articles of unusual value, class A and class B explosives, household goods as defined by the Commission, and commodities in bulk, between

This report also embraces No. MC-118621 (Sub-No. 5), Black Diamond Transport Company Extension-Sayre, Pa.

Wilkes-Barre, Pa., on the one hand, and, on the other, Ashley, Avoca, Beaver Meadows, Courtdale, Coxton, Crestwood, Dallas, Dallas Township, Dunmore, Dupont, Duryea, Edwardsville, Exeter, Exeter Township, Forty Fort, Foster Township, Freeland, Green Ridge, Harding, Hanover Township, Hazleton, Hazle Township, Hudson, Hughestown, Jackson Township, Jeddo, Jenkins Township, Kingston, Kingston Township, Laflin, Larksville, Lattimer Mines, Laurel Run, Luzerne, McAdoo, Minooka, Moosic, Mountaintop, Nanticoke, Noxen, Old Forge, Olivers Mills, Pittston, Pittston Township, Plains, Plains Township, Plymouth, Providence, Pringle, Ransom, Scranton, Shavertown, Stanton, Swoyersville, Sugar Notch, Taylor, Trucksville, Virginia, Warrior Run, West Hazleton, West Nanticoke, West Pittston, Weatherly, Wilkes-Barre, Wilkes-Barre Township, West Wyoming, White Haven, Wright Township, Wyoming, and Yatesville, Pa., in conjunction with trailer-on-flatcar service of the Lehigh Valley Railroad Company, hereinafter called the Lehigh. The application is opposed by Alto Trucking Company, Inc., Hall's Motor Transit Company, Karn's Transfer, Inc., the Local Cartage National Conference, and the American Trucking Association, Inc., hereinafter called Alto, Hall, Karn, the conference, and the A.T.A., respectively.

In No. MC-118621 (Sub-No. 5), by application filed October 23, 1959, as amended, the same applicant seeks a certificate of public convenience and necessity authorizing operation, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, of general commodities, except class A and class B explosives, household goods as defined by the Commission, commodities in bulk, and those of unusual value, between Sayre, Pa., on the one hand, and, on the other, South Waverly, Athens, Milan, Ulster, Towanda, Wysox, Monroeton, and New Albany, Pa., and Waverly, Elmira, Elmira Heights, Horseheads, Van Etten, Spencer, Cayuta, Barton, Tioga Center, Owego, Newark Valley, and Berkshire, N.Y., including the commercial zones of the points named, in connection with traileron-flatcar service of the Lehigh, limited to service which is auxiliary to or supplemental of rail service of the Lehigh, with all traffic having either a prior or subsequent movement by rail. The A.T.A., the conference, Alto, Fowler & Williams, Inc., and Associated Transport, Inc., oppose the application. The two last-named carriers presented no evidence. United Van Lines, Inc., withdrew its opposition upon amendment of the application to its present form.

The examiner hearing the No. MC-118621 (Sub-No. 3), application recommended that it be granted except as to those points which are not stations on the Lehigh's lines 2 and subject to conditions which

Harding and Minooka were apparently included in the recommended grant through an oversight inasmuch as they are not on the Lehigh's Lines.