Findings.-1. We find that with the exception of Akron Parcel Delivery, Inc., the respondents herein are all controlled by U. S. Truck Lines, Inc.

2. We further find that the Consolidated Cartage & Storage Company, Daniel Creedon & Sons Trucking Company, Buffalo Delivery, Inc., Detroit Delivery, Inc., The Superior Transfer Company, an Ohio corporation, Motor Express, Inc., a New Jersey corporation, and Motor Express, Inc., of Indiana, common carriers by motor vehicle, do not operate over the same routes or within the same territory as The Superior Transfer Company, a Delaware corporation, and a contract carrier by motor vehicle, and that, therefore, the provisions of section 210 are inapplicable to them.

3. We further find that, under section 210 of the act, the holding of a permit by The Superior Transfer Company, a Delaware corporation, and the holding of certificates by The Cleveland, Columbus & Cincinnati Highway, Inc., and Motor Express, Inc., an Ohio corporation, authorizing operation by the respective respondents in the transportation of property over the same routes or within the same territory, will not be consistent with the public interest and with the national transportation policy.

4. We further find that the holding of amended certificates by The Cleveland, Columbus & Cincinnati Highway, Inc., and Motor Express, Inc., an Ohio corporation, excluding service on traffic originating at or destined to Toledo, Ohio, and intermediate or off-route points in Lenawee and Monroe Counties, Mich., and the holding of a permit by The Superior Transfer Company, a Delaware corporation, as authorized in No. MC-1777, will be consistent with the public interest and with the national transportation policy; and that to this end the two above-named motor common carriers should file a petition on or before November 15, 1944, requesting appropriate modification of their certificates; or that, upon compliance with the further conditions with respect to the elimination of common control previously set forth herein, and subject to the approval of this Commission respecting any transfer of rights, the holding of the certificates at present issued to The Cleveland, Columbus & Cincinnati Highway, Inc., and Motor Express, Inc., an Ohio corporation, and the holding of the permit granted in No. MC-1777 by the person then entitled to receive it, would preclude the application of section 210.

5. We further find that, in the event respondents do not make the election as herein provided, the order entered July 15, 1939, in No. MC-1777, will be vacated and set aside, and the application therein denied.

6. We further find that this proceeding in so far as respondents, other than The Superior Transfer Company, a Delaware corpora

tion, The Cleveland, Columbus & Cincinnati Highway, Inc., and Motor Express, Inc., an Ohio corporation, are concerned, should be discontinued.

An appropriate order will be entered.

PATTERSON, Chairman, concurring in part:

I concur in the report except as to the election provision permitting Motor Express (Ohio) and C. C. & C. to file a petition for amendment of their certificates.

43 M. C. C.

No. MC-6681

LINCOLN TUNNEL APPLICATIONS

INTER CITY TRANSPORTATION COMPANY, INCORPORATED, COMMON CARRIER APPLICATION

Decided July 31, 1944

On reconsideration, the holding of joint certificates by certain commonly controlled pairs of motor carriers found contrary to the public interest and such holders required to elect within a stated time which of each pair shall receive a certificate which will be issued in lieu of the now outstanding joint certificates. Prior reports, 12 M. C. C. 184, 26 M. C. C. 832, and 28 M. C. C. 829.

Appearances as shown in the prior reports.

REPORT OF THE COMMISSION ON RECONSIDERATION

DIVISION 5, COMMISSIONERS LEE, ROGERS, AND PATTERSON

BY DIVISION 5:

In the prior report in Lincoln Tunnel Applications, 12 M. C. C. 184, division 5, authorized, among other things, the issuance to certain applicants, hereinafter described, of joint certificates authorizing operation as common carriers by motor vehicle, in interstate or foreign commerce, of passengers and their baggage, and, in some instances, of newspapers and express in the same vehicle with passengers, over specified routes, which need not be described herein, between specified New Jersey points and New York, N. Y. Pursuant thereto joint certificates were issued as follows: (a) In Nos. MC-668, MC-668 (Sub-No. 1), MC-1079, and MC-1079 (Sub-No. 1), one certificate jointly to Inter City Transportation Co., Inc., and New Jersey-New York Transit Co., Inc., both of Paterson, N. J. (hereinafter called Inter City and Transit, respectively); (b) in Nos. MC-3699, MC-3699 (Sub-No. 1), MC-3700, and MC-3700 (Sub-No. 1), one certificate jointly to Manhattan Coach Line, Inc., and Manhattan Transit Company, a corporation, both of Clifton, N. J. (hereinafter called Manhattan Coach and Manhattan Transit, respectively); and (c) in Nos. MC-3701 (Sub-No. 1) and MC-3705 (Sub-No. 1), one certificate jointly to Westwood Transportation Company, a corporation, and Westwood Transportation Lines, Inc., both of Clifton, N. J. (hereinafter called Westwood and Transportation, respectively).

This report also embraces the applications described in appendix D hereto

In the prior report in Inter City Transp. Co., Inc., Alternate Tunnel. Routes, 26 M. C. C. 832, issuance to Inter City and Transit of a joint certificate in Nos. MC-668 (Sub-No. 4) and MC-1079 (Sub-No. 4), authorizing operation over certain alternate routes in New Jersey was authorized; and the prior report in Manhattan Coach Line, Inc.-Extension of Operations, 28 M. C. C. 829, the issuance of a joint certificate, in Nos. MC-3699 (Sub-No. 6) and MC-3700 (Sub-No. 8), to Manhattan Coach and Manhattan Transit, authorizing operation over an alternate route also was authorized. These joint certificates have been issued.

Concerning the issuance of joint certificates division 5 stated in the prior report, in Lincoln Tunnel Applications, supra, at page 197:

As hereinbefore described, certain groups, each composed of two carriers, conduct joint and coordinated operations over certain routes. In each group the same individuals own all or most of the stock and manage the affairs of both corporations. Each of these corporations owns some motorbusses which, however, in most cases are used interchangeably by both companies in the group. Insofar as the physical operations and holding out to the public were and are concerned, each coordinated route was and is conducted as a single operation and only one operating authority may be granted therefor. See Bigley Bros., Inc., Contract Carrier Application, 4 M. C. C. 711. In the case cited we stated that in view of the fact that administrative difficulties may result from the issuance of a certificate in the name of both corporations, the issuance of the operating authority would be withheld until we are advised which corporation was to receive such authority. In the instant case, however, we are of the opinion that in the interests of a prompt disposition of these matters, joint certificates should be issued.

The administrative difficulties which division 5 anticipated are now appearing in connection with the joint certificates. For example, the joint certificate issued to Inter City and Transit authorizing operation between Paterson, N. J., and New York, authorizes service at all intermediate points including so far as here important those on Marginal Street between New York Avenue in Union City, N. J., and the entrance to the Lincoln Tunnel.

In Inter City Transp. Co., Inc.-Merger, 37 M. C. C. 55, Inter City only was authorized to acquire and merge with its own, with duplications eliminated, all of the interstate operating rights of Garden State Lines, Inc., including particularly a right to transport passengers between Hackensack, N. J., and New York, over a regular route through the Lincoln Tunnel serving intermediate points in Hasbrouck Heights and Wood Ridge, N. J., only. The operating right so acquired by Inter City duplicates the right held jointly by Inter City and Transit over the Marginal Street approach to the Lincoln Tunnel, except that Inter City individually as successor of Garden State has no authority to serve intermediate points on this street.

Nevertheless, the Commission now has before it in another proceeding a complaint alleging that Inter City in its individual operation, between Hackensack and New York, as successor of Garden State, is serving intermediate points on the Marginal Street approach to the tunnel. Such service is not denied by Inter City but rather is said to be within the authority which it holds as a result of the merger of Garden State's right with its own right under the certificate jointly held with Transit. In other words, Inter City and Transit are now conducting a joint operation serving all points on Marginal Street, and at the same time Inter City individually is conducting another operation over the same route under separate authority but serving the intermediate points on Marginal Street under the authority of the joint certificate, claiming a merger of its individual and joint rights.

It is not our purpose to adjudicate such complaint herein, and we mention it here only because it is clearly a direct result of the issuance of the joint certificate to Inter City and Transit. That similar difficulties and others may arise in the future with respect to the operations of these same carriers or the others to whom joint certificates have been issued is apparent. We are, therefore, reopening on our own motion the title proceeding and those described in appendix D hereto for the purpose of considering further whether the respective pairs of applicants can and should yet be required to elect which one of each pair shall be authorized to perform the operations involved. The corporate organization of each group of applicants will be described.

Inter City and Transit.—At the time of the filing of the applications in Nos. MC-668 (Sub-No. 1) and MC-1709 (Sub-No. 1) Theodore J. Richmond was president of Inter City and vice president, treasurer, and secretary of Transit; Samuel Nelkin was vice president and secretary of Inter City and president of Transit; and Jacob Raia was treasurer of Inter City. Richmond, Nelkin, and Raia were the sole directors and stockholders of Inter City, and Richmond and Nelkin were the sole directors and stockholders of Transit.

An examination of the consolidated annual report to the Commission of both carriers for the year ended December 31, 1943,2 reveals that as of that date Richmond was president of Inter City and vice president of Transit; Nelkin was president of Transit and vice president of Inter City; and Joseph Krueger, Isidore H. Davidson, and Isador Krueger, were vice president, secretary, and treasurer, respectively, of both companies. Both companies had the same stockholders,

'If the information taken from the reports for 1942 is not correct, the respective applicants may request further hearing for the purpose of presenting such pertinent matters as will facilitate the disposition of the matters discussed herein.