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Seventeen carriers appeared in protest to this application. Of these Hilt Truck Lines, Inc., Freeman Transfer, Inc., Mc Allister Transfer, Inc., Arrow Freight Lines, Inc., Yellow Freight System, Inc., Illinois Califomia Express, Inc., J. B. Montgomery, Inc., Herman Bros., Inc., and Ruan Transport Corporation offered evidence in opposition to the application.'
Applicant has specialized in the transportation of meat and meat products, frozen foods, foodstuffs, and canned and preserved foodstuffs since it began business in 1956. It has increased its transportation of these products from 205 million pounds carried in 1970 to over 300 million pounds in 1972. Its main office and headquarters is located in Sidney, Ohio, and it has 12 other offices located in Chicago, II.; Cleveland, Ohio; Washington, N.J.; Trevose, Pa. (a suburb of Philadelphia, Pa.); Aurora, Nebr.; St. Louis, Mo.; Milwaukee, Wis.; Buffalo, N. Y.; S. Keamy, N.J.; Baltimore, Md.; Waterman, DI.; and Sioux City, lowa. In Aurora its facility, which is 50 percent owned by applicant, contains two bays for maintenance located on its 11 acres. It holds cenificates and subnumbers to transport its commodites from and to points in numerous States and its authority was stated as basically north of the southern boundaries of Delaware, Maryland, Pennsylvania, Ohio, Indiana, Illinois, Missouri, and Kansas, and east of the westem boundaries of Kansas, Nebraska, Kentucky, and Arkansas.
Applicant operates approximately 139 tractors and 167 se mitrailers in over-the-road operation and 2 tractors and I trailer in city operation. The majority of its trailers are fully insulated and equipped with mechanical refrigeration units while only eight or nine are straight vans without insulation. It does not presently own or operate any flatbed equipment. Its witness indicated that applicant would purchase five flat beds and vans for the exclusive use for the transportation of commodities involved herein. It has drivers experienced in the handling of flat-bed commodities and the operation of that type of equipment.
Applicant offers truckload, LTL multiple pickup and delivery services including stopping in transit for partial loading and unloading. Its balance sheet, as of March 3, 1973, shows total assets of $999,901, liabilities of $583,928, and capital (common stock and retained eamings ) of $4 14,972. Its income statement shows that operations in the 6 months ended March 31, 1973, resulted in net income before income taxes, of $121,077. The vehicles are maintained and its drivers are supervised under a safety program. Applicant's witness claimed that the application is restricted so that the authority sought could not be interlined or tacked, that he did not intend to perform any operations from Aurora, Nebr., to points within that State and he was excluding commodities in bulk from the authority sought with the permission of the supporting shippers.
Applicant presented four supporting shippers-one representing an irrigation casing business, two on behalf of Century Manufacturing Company and Eco Industries, and a shipper for Midland Agricultural, Inc.
'Hirschbach Motor Lines, Inc., Graves Truck Lines, Inc., Diamond Freigh ways, Inc., Hagen, Inc., Nolte Bros. Truck Lines, Inc., and Urica Transfer, Inc., withdrew without offering evidence. Although it did nor withdraw, Denver-Midwest Motor Freighi, Inc., offered no evidence. An appearance was filed for Anderson Trucking Service, Inc., but it did not participate in the hearing. According 10 the official 1972 Nebraska State map which is based upon the 1970 census the population of Aurora is 3,180. (Exhibit 16, p. 2.)
Mr. John Stuchlik identified himself as being in the real estate and irrigation casing business and associated with the chamber of commerce and president of the Aurora Development Corporation, the latter being a corporation organized to bolster the economic structure in th& agricultural communities. In describing the community of Aurora, he pointed to a population of around 3,500 with diversified industries. He purchases his casing materials from Dennison, Tex., and sells to well diggers throughout Nebraska and parts of Kansas and Colorado. He found that service from various carriers from Dennison to be "terrible" and purchased his own unit. He would rather not operate his own equipment in Aurora and would utilize the services of applicant from Texas if he found its service to be adequate and good. The casing materials require flat-bed equipment and he needs approximately 2,000 feet per week during the season running from March through October. He was familiar with the services of McAllister Transfer out of Aurora and considered them to offer a fine service but he was unable to secure flat-bed equipment from them and was told that they had none. His outbound shipments to Kansas and Colorado are presently limited to around five or six truckloads per year because of only two drillers in those areas. He is not, however, interested in the delivery of these outbound materials since he utilizes his own specially equipped truck for this operation.
Mr. Maul, the first witness to appear on behalf of Century Manufacturing Company and Eco Industries of Aurora, described Century as a manufacturer of approximately 1,000 bathing units yearly used in hospitals, nursing homes, and Federal and State governmental installations throughout every State in the United States and Canada. Its manufacturing and sales have been increased from 25 to 30 percent per year. The units themselves are shipped on a conventional van. He indicated that he had experienced delays in shipments and handling damages with interlining service.' He testified that he had a need for service into all States. He also expressed a desire for an availability of single-line carrier service from its suppliers located throughout the country. Eco Industries manufactures lightweight camper trailers. These trailers which are classified as 13-foot are manufactured at the rate of three units per day—with hope of an increase to five-and are moved by its own equipment. Component parts used in manufacturing the trailers come from either Newton, Kans., or Elk hart, Ind. Delivery time to its facilities from Elkhart (a distance of from 600-650 miles) averages 2 weeks, and there is an average delivery time of 10 days from Newton (a distance of approximately 250 miles). The witness did not bring any shipping records to the hearing to substantiate this testimony. Additionally, he was either unaware of the services or had never been solicited by many of the protesting carriers.
Mr. Gary Brohst, general manager of Midland Agricultural, Inc., of Aurora, described Midland as a manufacturer of farm equipment employing from 5 to 16 employees depending upon seasonal considerations. Midland manufactures a combine
'In discussing shipments of the previous month, the witness spoke of two truckloads shipped to New York State. Each truckload contained 40 units and were delivered to approximately eight different installations. He also testified that he shipped from 80 10 100 units to Ohio in the past year.
*Pictorial exhibits were received in evidence depicting the commodities and specifications of the bathing units and trailers discussed here.
or buncher called a Bunchmaster' which salvages waste crops with a planned production for 1973 of 300. This unit weighs approximately 2,200 pounds. It also manufactures an adapter which has a shipping weight of 175 pounds. Midland intends to manufacture what is described as a gravity box, which has a box weight of approximately 1,400 pounds, and already has an initial order for 150 units. The gravity box will be shipped for Lindsay Bros. Co. of Minnesota, principally to the seven-State area embracing Montana, North Dakota, South Dakota, Minnesota, Iowa, Nebraska, and a portion of Wyoming. Since the gravity box will be manufactured also under a private label by Midland they will be shipped to any part of the United States with the. exception of those areas of the licensees. The Bunchmaster and gravity box require flat-bed equipment for handling while the adapter can be shipped on equipment other than flat bed although flat bed is preferred. For the 6-month period prior to the hearing Midland shipped five truckloads (each truckload containing three Bunch masters) to Colorado, four truckloads to lowa and Kansas, two truckloads to Missouri and North Dakota and one truckload to Montana. It is in the process of obtaining new distributors located in various points in the United States. It anticipates shipping an additional number of truckloads of Bunchmasters to the States named above as well as Minnesota, Ohio, Oklahoma, Tennessee, Wisconsin, and Wyoming. Additional States will be served by its distributors. Midland anticipates making sales in the relatively near future to all States involved in the application.
Since they sell to dealers and distributors they require the service of a carrier on a statewide basis with stops in transit. They support the application primarily because they need flat-bed equipment and wish to eliminate delay in transit caused by interline movement and circuity. Midland also seeks return authority to its plant for the transportation of commodities used in the manufacturing of its product. In that connection, they receive augers from Chicago, III., sheet and tubing steel from Manhattan, Kans., Kansas City, Mo., and Chicago, Ill. If the application is granted it anticipates offering 80 percent of its outbound shipments to applicant which has a terminal within 5 minutes away from its plant. Both Arrow Freight Lines and McAllister Transfer, Inc., have provided satisfactory incoming services from Midland but the witness was unaware of the availability of flat-bed equipment if it was available from them. Midland was not solicited for its traffic by other protestants and was unsatisfied with the services of certain carriers not protesting the application.
Mr. Berthelsen also appeared on behalf of Century Manufacturing Company. He testified that Century purchased Eco Industries on August 15, 1973. In addition to the bathing units and trailers described by Mr. Maul in his testimony, the witness testified that Century has recently entered into the shipping of bath oil solution, a shampoo product, and germicidal solutions all of which move in containers and can be moved together either with the bathing units or separately. Century's trailers are presently moved by its company truck. Since Century anticipates an increase in production of from 3 to possibly 10 trailers a day it would require four trucks to handle these shipments. Century listed incidents of delays and damages incurred in using the services of carriers to certain States but produced no probative documents to fully substantiate these claims. On the other hand, the delays were atrributed to the interline services offered.
Herman Bros., Inc., of Omaha, Nebr., specializes in the transportation of commodities in bulk. It operates primarily to the States of Nebraska, Iowa, Colorado,
'Pictorial exhibits were received in evidence depicting the commodities and specifications of the Bunchmaster, adapter kit, and gravity box discussed here.
Kansas, Missouri, South Dakota, North Dakota, Minnesota, Illinois, Wisconsin, Tennessee, and numerous other States. They haul petroleum products, cement, fertilizer, anhydrous ammonia, and other products in equipment designed for transportation of commodities in bulk. Although it holds substantial authority into and from Aurora its interest lies primarily in seeking the imposition of a restriction excluding authority for the applicant to transport commodities in bulk.
Ruan Transportation Company of Des Moines, Iowa, is a regular- and irregularroute carrier transporting various commodities, primarily in bulk. It serves a number of shippers at Aurora in the transportation of petroleum products. It has authority to transport cement as well as bulk commodities into and from Aurora but did not have any evidonce of transporting any other commodities to or from Aurora over the past 5 years..
Yellow Freight System, Inc., of Kansas City, Mo., is a regular and, irregular motor common carrier of general commodities to numerous destination States. As to Aurora its authority is basically points west of Nebraska, Colorado, Wyoming, New Mexico, Arizona, California, and connecting line service to other States in the west. To the east, Yellow interchanges with other carriers at Lincoln or Omaha and from Omaha to Chicago then to numerous States. As pertinent, it has terminals located in Lincoln and Kearney, Nebr. Yellow purchased on May 15, 1973, the authority of Adley Express Company by grant of authority from the Commission. Adley is a common carrier by motor vehicle of general commodities basically operating north and south on the east coast. It is operated as a separate corporation.
Yellow presently handles its traffic out of Aurora by interline service provided by McAllister to Lincoln, Nebr. Yellow has provided service for Century, the supporting shipper, and claims it has not received any service complaints. Its witness stated that it is operating empty and light loaded from its Lincoln terminal and outbound traffic is desirable to fill these vehicles. Yellow operates 350 flat-bed trailers ate division that is part of its special hauling division but did not show any flat-bed equipment on its equipment exhibit. The witness did not have any documents showing delivery time on any shipments originating at or destined to Aurora. He claimed that Yellow had open-top trailers (referred to as rag-top trailers) available to shippers and indicated that supporting shippers' units costing approximately over $100,000 would be shipped in these rag-top units.
Illinois-California Express, Inc., is a motor common carrier transporting general commodities over a network of routes which extend between the Pacific coast, on the west, and Chicago, III., and Dallas, Tex., on the east, traversing the States of California, Arizona, Nevada, Utah, New Mexico, Colorado, Wyoming, Texas, Oklahoma, Kansas, Nebraska, Missouri, Iowa, and Illinois. Chicago is its most easterly point that it is authorized to serve. ICX provides service to and from Aurora, Nebr., both on a direct basis from its Denver, Colo.-Omaha, Nebr., over-the-road units or via a connecting carrier over Omaha, Nebr. It operates 2,389 units of equipment including forty-two 40-foot converta-van flat beds. The witness did not produce any documents showing traffic to and from Aurora. Its revenues for 1972 were approximately $49 million with an operating ratio of 90.5 The witness was unable to state whether ICX's flat beds were ever used to or from Aurora.
J. B. Montgomery, Inc., an Iowa corporation, is a motor common carrier over irregular routes, of specified commodities, including substantial authority in the transportation of meats, meat products, meat byproducts and packinghouse products primarily in the Midwest and Rocky Mountain States. Montgomery has authority to transport what is tantamount to general commodities between Chicago, III., and Denver, Colo., on the one hand, and, Aurora, Nebr., on the other. Montgomery also has authority to transport meats and packinghouse products and various foodstuffs
from numerous points to Aurora, Nebr. It has joint-line service between various other points, on the one hand, and, Aurora, Nebr., on the other, interchanging at Chicago, IIL, and Denver, Colo. On joint-line volume traffic it operates under a trip-lease arrangement so that there is no transfer of lading.
It maintains a terminal at Council Bluffs, Iowa, which is approximately 130 miles from Aurora, Nebr., and has 60 tractor-trailer units of which 41 flat beds are available. It also maintains terminals at Chicago, Ill, and Denver, Colo., where equipment is also available.
The witness indicated that Montgomery needed traffic from the outlying areas to Nebraska to serve its meat plants in the vicinity of Aurora on outbound movments. Its flat-bed equipment terminates in Central Nebraska and either dead heads or hauls grain in an easterly direction. Montgomery has never handled any direct or joint-line traffic to or from Aurora and many of its authorities are restricted to traffic originating at specific places. At the time of the hearing, it has not solicited traffic from the supporting shippers.
McAllister Transfer, Inc., of York, Nebr., is a motor common carrier over regular and irregular routes of general commodities and serves Aurora under its authority authorizing service to and from the intermediate points in Lincoln, Nebr., and those west of Lincoln, and the off-route point of Council Bluffs, Iowa. It operates 25 units of equipment but has no flat beds. It serves Aurora both inbound and outbound on a 5day-8-week basis and shipments to and from there represent about 21 percent of its total gross revenues. Its terminal and headquarters at York is about 23 miles from Aurora. It conducts interline operations with a number of carriers. Its traffic originating from Aurora would be transported either to Omaha (approximately 135 miles) or to Lincoln, Nebr. (approximately 75 miles). Its participation on this basis on traffic moving to or from Aurora is on a nearly nationwide basis. It has handled traffic for the supporting shipper, Century Manufacturing Company, but does not handle any commodities previously described by supporting shippers which essentially require flat-bed equipment According to the witness, of the carriers named by him who serve Aurora and are competitors of McAllister only one-Arrow-is protesting the application at the hearing The witness is fearful of a diversion of its traffic if the application is granted.
Hilt Truck Linc, Inc., of Omaha, Nebr., is a regular and irregular motor common carrier engaging in the transportation of a broad range of commodities principally from Omaha to a number of destination States. Its main terminal at Omaha is located about 125 miles from Aurora. It operates approximately 271 units of equipment, 8 of which are flat-bed trailers, and is taking deliveries on 40 additional trailers. It holds extensive authority both to and from Aurora but has only handled one shipment of pickle jars into Aurora and no shipments outbound over the last 5 years. It has not solicited business from any of the supporting shippers to this application. Its freight revenues have almost tripled during the years 1970 through 1972. The witness estimated that Hill's revenue from the single movement to Aurora was about $250.
Arrow Freight Lines, Inc., of Grand Island, Nebr., is a motor common carrier of general commodities over a network of regular and irregular routes extending from Omaha to various other points in Nebraska. It maintains a terminal at Omaha and headquarters a terminal building at Grand Island, Nebr., which is approximately 2 miles northwest of Aurora. It operates approximately 141 units of equipment including three recently acquired 40-foot flat-bed trailers. It operates at least two trucks a day into Aurora. It submitted an abstract of shipments to and from Aurora during the period of March 10, 1973, through May 10, 1973. Most of its shipments would be interlined over Omaha. It has transported a variety of commodities especially into Aurora and experiences competiton from other carriers operating in