in transit time of from 1 to 3 days. The coordinated rail-motor service here proposed would be slower than the unrestricted all-motor service of Frisco but would be faster by 1 or 2 days than the local freight-train service formerly afforded by the railroad. By restricting the operations of Frisco to stations on the railroad and designating the key points heretofore indicated, approval of the transaction as amended and as modified herein would not materially affect the services of motor-carrier protestants and should be to their benefit at least insofar as interstate operations are concerned, because Frisco would no longer be engaged in conducting an all-truck operation in interstate commerce.

Frisco is willing to write off immediately the amount as assigned to its "Other Intangible Property" account as a result of this transaction, and our findings will be conditioned accordingly.

We are of the opinion that the purchase by Frisco of the previously described regular-route operating rights of Righter, subject to a condition modifying the rights acquired so as to permit only an "auxiliary and supplemental” service in handling solely rail freight in combination with the railroad, at rail rates, and confined to points which are stations on the railroad, would enable the latter to use service by motor vehicle to public advantage in its operations. Our findings will be conditioned to modify the operating rights concerned accordingly. In addition to the "key-point" restrictions previously mentioned, conditions will also be imposed to require that all contractual arrangements between Frisco and the railroad shall be reported to us and shall be subject to revision if, and as we find it necessary in order that such arrangements shall be fair and equitable to the parties; and to provide that the authority herein granted shall be subject to such further conditions as we, in the future, may find it necessary to impose in order to insure that Frisco's operations shall be limited solely to service which is auxiliary to, or supplemental of, rail service.

Upon further hearing, we find that the purchase by the Frisco Transportation Company of the previously described operating rights and property of the Righter Trucking Company, Incorporated, and the acquisition of control of the operating rights and property by the St. Louis-San Francisco Railway Company through the purchase, upon the terms and conditions above set forth, which terms and conditions, as modified, are found to be just and reasonable, constitute a transaction within the scope of section 5 (2) (a), will be consistent with the public interest, will enable the St. Louis-San Francisco Railway Company to use service by motor vehicle to public advantage in its railroad operations, and will not unduly restrain competition, and that, if the transaction is consummated, the Frisco Transportation Company will be entitled to a certificate covering the portion of the operating rights

described in the appendix attached hereto, which rights are herein authorized to be unified with rights otherwise confirmed in it with duplications eliminated, and subject to the restrictions set forth in the appendix, which restrictions shall be applicable to the operating rights herein authorized to be acquired from Righter and to its present operating rights; provided, however, that, if the authority herein granted is exercised, and concurrently therewith, the operating rights of the Righter Trucking Company, Incorporated, in No. MC-75281, shall be concurrently modified by excluding therefrom (1) all regular-route operating authority between St. Louis and Cape Girardeau, over U. S. Highway 61, and (2) all irregular-route operating authority, except that between points in Mississippi County, on the one hand, and, on the other, points authorized to be served on the regular routes retained between St. Louis, Cape Girardeau, Mound City, and Sikeston, and except that between points in Arkansas on and east of U. S. Highways 63 and 67, on the one hand, and points authorized to be served on the regular routes retained between Memphis, Blytheville, Arbyrd, and Campbell, on the other; provided, further, that the irregular-route and regular-route operating rights purchased by Frisco shall be concurrently modified so as to eliminate all irregularroute rights and to authorize, in lieu thereof, service at Crowder, Micola, Netherlands, Rockview, Shade, Tanner, Charter Oak, La Valle, and Salcedo, Mo., as off-route points to the regular routes as set forth in the appendix hereto; and provided, further, that, if the authority herein granted is exercised, the Frisco Transportation Company shall immediately write off the amount assigned to its "Other Intangible Property" account as a result of the transaction the writeoff to be accomplished in the manner to be determined upon submission of the journal entries proposed to record the purchase as required by our order herein.

An appropriate order will be entered.

COMMISSIONERS LEE, PATTERSON, and BARNARD dissent.

COMMISSIONER ROGERS did not participate in the disposition of this proceeding.

APPENDIX

Operating authority to be covered by a certificate to be issued to the Frisco Transportation Company, with duplications between these rights and its present rights eliminated, pursuant to the findings in the attached report, upon exercise of the authority granted

REGULAR ROUTES

General commodities, except those of unusual value, and except dangerous explosives, household goods as defined in Practices of Motor Common Carriers of

Household Goods, 17 M. C. C. 467, commodities in bulk, commodities requiring special equipment, and those injurious or contaminating to other lading—

Between Cape Girardeau, Mo., and Blytheville, Ark.: From Cape Girardeau over U. S. Highway 61 to Blytheville and return over the same route. Service is authorized to and from all intermediate points, which are stations on the line of the St. Louis-San Francisco Railway Company, hereinafter called the railroad, and the off-route points of Crowder, Micola, Netherlands, Rockview, Shade, and Tanner, Mo.

Between Sikeston, Mo., and Poplar Bluff, Mo.: From Sikeston over U. S. Highway 60 to Popular Bluff, and return over the same route. Service is authorized to and from all intermediate points, which are stations on the line of the railroad and the off-route points of Charter Oak, La Valle, and Salcedo, Mo.

Between Jackson, Mo.; and Arbyrd, Mo.: From Jackson over Missouri Highway 25 to Arbyrd, and return over the same route. Service is authorized to and from all intermediate points, which are stations on the line of the railroad.

Between the junction of U. S. Highways 61 and 62 and Campbell, Mo.: From the junction of U. S. Highways 61 and 62 over U. S. Highway 62 to Campbell, and return over the same route. Service is authorized to and from all intermediate points, which are stations on the line of the railroad.

RESTRICTIONS

The service authorized under the above-described operating rights is subject to the following conditions:

The service to be performed by Frisco Transportation Company shall be limited to service which is auxiliary to, or supplemental of, rail service of the St. Louis-San Francisco Railway Company.

Frisco Transportation Company shall not serve any point not a station on the rail lines of the said railroad.

No shipments shall be transported by Frisco Transportation Company as a common carrier by motor vehicle between any of the following points, or through or to or from more than one of the following points: South-bound-St. Louis, Chaffee, and Hayti, Mo., and Memphis, Tenn., and north-bound-Memphis, Hayti, and St. Louis; and no shipments shall be transported by Frisco Transportation Company from St. Louis to points south and west of Chaffee, from points between St. Louis and Chaffee, on the one hand, to points south and west of Hayti, on the other, between Memphis and points north of Hayti, and between points intermediate to Memphis and Hayti, on the one hand, and points north of Chaffee. on the other.

All contractual arrangements between Frisco Transportation Company and the said railroad shall be promptly reported to the Commission and shall be subject to revision if, and as, the Commission finds it to be necessary in order that such arrangements shall be fair and equitable to the parties.

Such further conditions as the Commission in the future may find it necessary to impose in order to restrict operations of the Frisco Transportation Company to service which is auxiliary to, or supplemental of, rail service of the said railroad.

50 M. C. C.

No. MC-F-3421

ROY C. STONE AND L. C. CARTER-CONTROL; ROY STONE TRANSFER CORPORATION-PURCHASE (PORTION) ELLIOTT BROTHERS TRUCKING COMPANY, INC.

Submitted September 2, 1947. Decided October 10, 1947

Application of Roy Stone Transfer Corporation, for authority to purchase certain operating rights of Elliott Brothers Trucking Company, Inc., and of Roy C. Stone and L. C. Carter to acquire control of the operating rights through the purchase, denied.

Glen F. Morgan for applicants.

Frank X. Masterson for protestants.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MAHAFFIE, MILLER, AND MITCHELL

BY DIVISION 4:

Exceptions were filed by applicants to the examiners' proposed report which recommended denial of the application, and protestants replied. In an endeavor to meet objections of the examiners to the proposed division of operating rights, applicants' exceptions contain a motion, accompanied by an amended agreement, requesting that the amended agreement be substituted in lieu of the original agreement and the application amended accordingly. Applicants also request that they be heard in oral argument. The motion to substitute the amended agreement is hereby granted, and the application will be considered as amended accordingly. In our opinion oral argument is unnecessary to a determination of the issues presented, and the request for oral argument contained in the exception is, accordingly, denied. Roy Stone Transfer Corporation of Martinsville, Va., and Elliott Brothers Trucking Company, Inc., of Easton, Md., herein called Transfer and Elliott, respectively, by a joint application filed March 11, 1947, seek authority under section 5 of the Interstate Commerce Act for the purchase by the former of certain operating rights of the latter. By a supplemental application, also filed March 11, 1947, Roy C. Stone and L. C. Carter, of Martinsville and Bassett, Va., respectively, who control Transfer through ownership of a majority of its outstanding capital stock, seek authority under the same section to acquire control of the operating rights through the proposed purchase. Hearing has been held, at which rail carriers in trunk-line

territory, except The Chesapeake and Ohio Railway Company, opposed the application, but confined their participation to cross-examination of applicants' witnesses. Applicants operate more than 20 motor vehicles.

Transfer, a Virginia corporation, has an authorized capitalization of 200 shares of common stock par value $50 each, of which 150 shares have been issued and are owned 64 shares (42.7 percent) by Roy C. Stone, president and director, 22 shares (14.6 percent) by A. C. Drewery, vice president and director, 39 shares (26 percent) by L. C. Carter, director, and 25 shares (16.7 percent) by G. S. Carter, director. Roy C. Stone and L. C. Carter each owns 20 percent of the outstanding capital stock of R. P. Thomas Trucking Company, Incorporated, herein called Thomas, of Martinsville. In No. MC-F-2469, Stone-Control-H. M. Turner Trucking Corp., 39 M. C. C. 834, decided October 19, 1944, among other things, it was found that Transfer and Thomas were under common control through stock ownership,1 and there is nothing in the instant record warranting a conclusion that such common control does not continue to exist.

On January 13, 1947, in No. MC-61825,2 a certificate was issued to Transfer, authorizing operations in interstate or foreign commerce, as a motor common carrier, over irregular routes, (a) of general commodities, with exceptions, (1) from Baltimore, Md., to points in Virginia; (2) from New York, N. Y., Clarksburg, W. Va., Cincinnati, Ohio, points in New Jersey on, east, and south of U. S. Highway 202, points, including Reading, Harrisburg, and Philadelphia, in that portion of southeastern Pennsylvania bounded on the north by U. S. Highways 202 and 422 and on the west by U. S. Highway 15, points in Maryland north of a line extending from the Pennsylvania-Maryland State line eastward along U. S. Highway 40 to Baltimore and thence northeastward along the shore of the Chesapeake Bay and Elk River and the Chesapeake and Delaware Canal to the Maryland-Delaware State line, points in North Carolina on and east of U. S. Highway 52, and points in South Carolina, to points in Henry County, Va., including Martinsburg, points, including Roanoke and Lynchburg, in an area in south central Virginia and points, including Winston-Salem and High Point, in an adjacent

1 Also see similar finding in No. MC-F-2640, Roy Stone Transfer Corp.-Pur.—Academy Storage & Whse., Inc., embraced in Harrison Motor Frt.-Academy Storage & Warehouse, 40 M. C. C. 813, decided March 28, 1945.

Embraces (1) and operating rights previously granted in Nos. MC-61825 and MC-61825 (Sub.-No. 1), (2) operating rights acquired pursuant to No. MC-F-2469, supra, (3) operating rights acquired from Academy Storage & Warehouse, Inc., in No. MC-76634 pursuant to No. MC-F-2640, supra, and (4) operating rights acquired from Bassett Furniture Trucking Co., Inc., in No. MC-63398 pursuant to authority granted in No. MC-F-3055, Roy Stone Transfer Corp.-Pur.-Bassett Furniture, 40 M. C. C. 843.