Dodson, Malta, Saco, Hinsdale, and Glasgow, Mont. These cities and communities have a population of over 44,000.

Applicant expects to maintain a dependable daily schedule over the proposed extension between Great Falls and Glasgow, with busses leaving Great Falls at 7:15 a. m. and 6 p. m., and arriving at Glasgow at 3 p. m. and 1:20 a. m., and leaving Glasgow at 7:30 a. m. and 4 p. m., and arriving at Great Falls at 3:10 p. m. and 11:40 p. m. It is the intention of applicant to operate both 21- and 33-passenger busses in the proposed service. These vehicles will be inspected regularly, maintained in good mechanical condition, and equipped to comply with all safety regulations. Adequate insurance will be carried.

Applicant proposes to interchange traffic moving in interstate or foreign commerce at Glasgow and Havre with its own lines, and at Great Falls with the Great Falls Coach Lines Company, Northland Greyhound Lines, and its own service. Numerous witnesses residing on the route embraced by the extension testified in support of the application. Their testimony is to the effect that a bus service operating in interstate or foreign commerce is needed to meet the requirements of the public in the described territory. According to applicant the intrastate service conducted by it over the described route has been profitable and it is anticipated that the revenues will be substantially increased in the event the instant application is granted. The extension proposed will provide an outlet by motorbus to eastern cities from northern Montana and will enable applicant to offer a direct service, in conjunction with its connections, to California and Pacific coast points.

Protestant motor carriers oppose the granting of the application for the alleged reason that this extension and other extensions proposed by applicant and now pending before the Commission will invade the territory served by them and effectively bar such carriers' natural extensions of feeder lines within the State of Montana. These motor carriers do not serve Glasgow or any intermediate point between Glasgow and Great Falls. It clearly appears, therefore, that the principal question with which the joint board is concerned in this proceeding is whether public convenience and necessity require applicant's proposed service over the route embraced by the instant application. The allegation was made at the hearing that applicant is in fact conducting operations in interstate or foreign commerce between Glasgow and Great Falls in contravention of the Motor Carrier Act, 1935. There is some evidence of record that applicant has on occasions transported passengers in interstate or foreign commerce over the described route. It is pertinent to observe here that any service conducted by applicant in interstate or foreign commerce

over the route embraced by the proposed extension prior to the granting of authority therefor by the Commission is in violation of the act. The evidence submitted on behalf of protestant, Great Northern Railway, discloses, among other things, that the Great Northern operates two or more passenger trains daily in each direction between Great Falls and Glasgow, providing service from and to points on the route heretofore described. The fact that such points have adequate rail service is not, in and of itself, a sufficient reason on which to base the denial of a certificate to operate as a common carrier by motor vehicle. Maas Contract Carrier Application, 4 M. C. C. 65. Moreover, communities are entitled to adequate service by motor vehicle as well as by railroad. Petroleum Transit Corp. Common Carrier Application, 3 M. C. C. 607.

Applicant appears to be able financially and otherwise to conduct the operations for which authorization is sought herein.

Upon consideration of all evidence of record, the joint board finds that present and future public convenience and necessity require operation by applicant as a common carrier by motor vehicle, in interstate or foreign commerce, of passengers and their baggage, and of light express, mail, and newspapers in the same vehicle with passengers, between Great Falls and Glasgow, Mont., over Montana Highway 29 between Great Falls and Havre, Mont., and U. S. Highway 2 between Havre and Glasgow, serving all intermediate points on such route, and Fort Benton, Mont., an off-route point; that applicant is fit, willing, and able properly to perform such service and to conform to the provisions of the act and the requirements, rules, and regulations of the Commission thereunder; and that an appropriate certificate should be granted.

In view of the findings herein, the joint board recommends that the appended order be entered.

9 M. C. C.

No. MC-28165 1

GEORGE HELM COMMON CARRIER APPLICATION

Decided July 9, 1938

1. Applicant, as successor in interest to R. L. Kachelmier, found to have failed to establish the right to a certificate as a common carrier by motor vehicle, of general commodities, in interstate or foreign commerce, between Orofino, Idaho, and points in Washington and Idaho, under the "grandfather" clause of section 206 (a) of the Motor Carrier Act, 1935. 2. Public convenience and necessity found to require operation by applicant as a common carrier of livestock, machinery, cement, brick, and building materials, in truckloads, in interstate or foreign commerce, between points and places in Idaho and Washington within 150 miles of Orofino, Idaho, over irregular routes. Certificate granted.

Chas. W. Carolus and R. P. Carolus for applicant.

Dean H. Eastman for protestants.

REPORT OF THE COMMISSION

DIVISION 5, COMMISSIONERS EASTMAN, LEE, AND ROGERS

BY DIVISION 5:

On June 4, 1938, the following recommended report and a recommended order appended thereto, filed with us by joint board No. 169, were served on the parties. No exceptions to the order were filed, but on June 29, 1938, we postponed to July 9, 1938, the date on which the said order should become the order of the Commission and become effective. Not having been stayed or further postponed by us, it has become effective as our order.

REPORT AND ORDER RECOMMENDED BY JOINT BOARD NO. 169, COMPOSED OF J. W. CORNELL OF IDAHO AND WILL M. DERIG OF WASHINGTON

By application in No. MC-28165 under the "grandfather" clause of section 206 (a) of the Motor Carrier Act, 1935, filed February 12, 1936, as amended, George Helm, as successor in interest to R. L. Kachelmier, of Orofino, Idaho, seeks a certificate of public convenience and necessity authorizing operation, in interstate or foreign commerce, as a common carrier by motor vehicle, of general com

1 This report also embraces No. MC-28165 (Sub-No. 1), George Helm Extension of Operations.

2

* Substitution of George Helm as applicant in place of R. L. Kachelmier was approved by the Interstate Commerce Commission on February 8, 1937, in No. MC-FC-871.

modities, between Orofino and points located in Washington and Idaho, over regular and irregular routes.

By application in No. MC-28165 (Sub-No. 1), filed May 4, 1937, as amended at the hearing, applicant seeks a certificate authorizing operations, in interstate or foreign commerce, as a common carrier by motor vehicle, of livestock, machinery, cement, brick, and building materials, in truckloads, between points and places in Idaho and Washington within 150 miles of Orofino, over irregular routes.

In accordance with the provisions of the Motor Carrier Act, 1935, the applications were referred to joint board No. 169 for hearing and the recommendation of appropriate orders thereon. Hearing has been held. Northern Pacific Railway Company, Union Pacific Railroad Company, Camas Prairie Railroad Company, and the Railway Express Agency intervened in opposition to the granting of the applications but offered no evidence.

Hearing developed in respect to No. MC-28165 that applicant as alleged successor in interest to R. L. Kachelmier is not entitled to any operating rights under the "grandfather" clause of section 206 (a) of the act with respect to any commodities or commodity by reason of having been continuously engaged in such transportation since prior to June 1, 1935. Accordingly, we find that application in No. MC-28165 should be denied.

Under the authority sought by No. MC-28165 (Sub-No. 1) applicant proposes to perform a service which contemplates the pick-up, transportation, and delivery of livestock, machinery, cement, brick, and building materials, in truckloads, wherever located, between points and places in Idaho and Washington within 150 miles of Orofino. Numerous witnesses, including merchants, cement dealers, farmers, and livestock raisers, appeared and testified as to the need for applicant's proposed service.

Applicant owns and operates a 2-ton 1935-model truck and is financially able to procure additional equipment. He has, insofar as this record discloses, complied with the laws of the respective States of Idaho and Washington. His fitness, willingness, and ability to conduct the proposed operation apparently are not disputed. The record affirmatively shows that there is a need for the service.

Upon consideration of all evidence of record, the joint board finds that present and future public convenience and necessity require operation by applicant as a common carrier by motor vehicle, in interstate or foreign commerce, of livestock, machinery, cement, brick, and building materials, in truckloads, between points and places in Idaho and Washington within 150 miles of Orofino, over irregular

routes; that applicant is fit, willing, and able properly to perform such service and to conform to the provisions of the act and the requirements, rules, and regulations of the Commission thereunder; that an appropriate certificate should be granted; and that the application in all other respects should be denied.

In view of the findings herein, the joint board recommends that the appended order be entered.

9 M. C. C.