from the R. F. C. certain equipment of Motor Freight, but it does not contain information with respect to the nature of such equipment, the purchase price, or the terms of payment. Nothing herein is to be construed as authorizing the purchase of such equipment.

Jones' regular-route operations connect at Tulsa and Fort Smith with the routes which he proposes to purchase between those points and Oklahoma City. His present north-south operations between Fort Smith and Kansas City, via Springdale, and between Tulsa and Kansas City, are connected by an east-west route between Springdale and Tulsa. Jones proposes to acquire additional cross-connecting routes (1) between the junction of U. S. Highways 71 and 160 (near Lamar, Mo.) and the junction of U. S. Highways 69 and 160 (near Frontenac, Kans.), and (2) between Joplin and the junction of U. S. Highways 60 and 69 (near Afton, Okla.). Jones is authorized to serve the junction of U. S. Highways 71 and 160 as an intermediate point on his Fort Smith-Kansas City route, restricted to north-bound operations, but he is not authorized to serve the junction of U. S. Highways 69 and 160 on his Tulsa-Kansas City route. The route which he proposes to purchase between the two junctions is a portion of Motor Freight's route between the former junction and Pittsburg, Kans., a point which Jones is authorized to serve, located approximately 3 miles south of the latter junction. Although the stretch of highway between the junction and Pittsburg is included in the route which Consolidated is authorized to purchase, in No. MC-F-3743, we are of the opinion that Jones should also be authorized to operate thereover to enable joinder of the rights purchased with his own. The "split" of operating rights over the 3-mile segment on which no intermediate points are located is not objectionable. Under the unified rights, traffic moving between points on Jones' present routes and those on the considered route may lawfully be transported by him only through Pittsburg as a gateway, instead of via the junction of U. S. Highways 69 and 160 as apparently intended. B. & E. Transp. Co., Inc.-Purchase-Merchants Transp., Inc., 36 M. C. C. 561.

Joplin is an authorized intermediate point on Jones' Fort SmithKansas City route, but the other termini of the cut-off route, over Missouri Highway 43 and U. S. Highway 60, is not an authorized intermediate point on his Tulsa-Kansas City route, although he may serve that point over irregular routes. The routes which Jones proposes to purchase are segments of Motor Freight's Kansas City-Oklahoma City operation. In the prior report in the title proceeding, we found that the public convenience and necessity required continuance of

operations by Motor Freight over certain segments of the route to close gaps in the operation. As Jones is not authorized to serve the junction of U. S. Highways 60 and 69, or any intermediate point between the said junction and Vinita, if the transaction were approved as proposed, he would not be able to render through service over this segment of the Kansas City-Oklahoma City operation. In our opinion, a certificate should be issued to Jones, in lieu of Motor Freight, authorizing continuance of operations over U. S. Highway 69 between its junction with U. S. Highway 60 and Vinita, restricted as to service at Vinita on traffic moving from or to Joplin or points within 5 miles of Joplin.

Off-route points which are appurtenant to certain routes which Jones proposes to purchase are as follows: Sand Springs and points within 5 miles of Joplin, Tulsa, and Oklahoma City, respectively. As in the prior proceedings, if the transaction herein authorized is consummated, our findings will require cancellation of Motor Freight's ir regular-route rights to transport (a) general commodities between points in Oklahoma on or appurtenant to all of the regular routes in No. MC-107232, on the one hand, and, on the other, points in Missouri on or appurtenant to the regular routes to be acquired by Jones; and (b) office furniture and equipment, store fixtures, and building material between Tulsa, on the one hand, and, on the other, points in Oklahoma and Arkansas on, and points in Oklahoma appurtenant to, the regular routes purchased by Jones.

As previously stated, Jones controls J. T. L., a contract carrier of packing-house products and supplies, dressed poultry, eggs, cheese, and butter, over irregular routes, from Kansas City, Kans., to various points in Arkansas. As a common carrier, he holds a certificate authorizing transportation of general commodities between various points in Arkansas, Missouri, Tennessee, Oklahoma, and Kansas, including Kansas City. He proposes to purchase rights which would extend his common carrier operations to additional points in Kansas, Missouri, and Oklahoma thereby enlarging the scope of present dual operations.16 The enlargement would permit a greater opportunity for discriminatory practices in serving especially packers to and from Kansas City, Kans. Compare Groendyke-Purchase-Harriss, 40 M. C. C. 731.

In some cases involving dual operations, we have found it possible to modify the operating rights in relatively minor respects for the

18 Only certain portions of the present dual operations of Jones and J. T. L. have been found to be consistent with the public interest and the national transportation policy. See Jones Common Carrier Application, 33 M. C. C. 319; and Harvey Jones-Purchase-Powell Bros. Truck Lines, Inc., supra.

purpose of eliminating the more objectionable features of the dual operations and thus to approve the transaction, subject to such modification, with the finding that the remaining dual operations would be consistent with the public interest. Usually the modification required has been small, resulting in the remaining dual operations being in substantially different territories, or in the transportation as a contract carrier of different commodities from those transported as a common carrier; and ordinarily under such circumstances it has been possible for the carrier to continue practicable operations under the modified rights. However, in the instant case, the nature of the dual authority is such that modification of the operating rights of these commonly controlled carriers in such a way as to eliminate the more objectionable features of the dual operations and minimize the opportunity for discriminatory practices would seem to be impracticable. Our findings herein will be conditioned to require that, prior to consummation of the purchase of the considered operating rights, Jones shall completely divest himself of control of J. T. L., and shall promptly report to this Commission the manner in which the divestiture is to be accomplished; or, should the parties elect to exercise the purchase authority herein granted within the 30 days allowed under our order herein, the contractcarrier operating rights of J. T. L. shall be canceled concurrently therewith.

Jones is willing to write off immediately the amount assigned to his "Other Intangible Property" account as a result of the purchase, and our findings will be conditioned accordingly.

NO. MC-F-3636

Harvey operates," in interstate or foreign commerce, as a motor common carrier, over irregular routes, (a) of oil-field equipment and supplies, between points in Indiana, Illinois, Kentucky, Missouri, and Oklahoma, and between points in Indiana and Kentucky, on the one hand, and, on the other, points in Kansas and Texas; and (b) of machinery, materials, supplies, and equipment, incidental to or used in the construction, development, operation, and maintenance of facilities for the discovery, development, and production of natural gas and petroleum, between points in Oklahoma, Kansas, and Texas. In Harvey-Purchase-Nash, 50 M. C. C. 821, he was authorized to purchase the operating rights of another motor carrier covering transportation of the commodities described under (b), over irregular routes, between Big Spring, Tex., and points in Texas within 100

17 Pursuant to certificates issued on May 11, 1942, and April 20, 1940, in Nos. MC-88380 and MC-88380 (Sub-No. 4), respectively.

miles of Big Spring, on the one hand, and, on the other, points in Lee County, N. Mex.

Under an agreement dated September 25, 1947, as amended at the hearing, Harvey would purchase from the R. F. C., for $500, that portion of the operating rights which the latter claims as successor in interest to Motor Freight, under No. MC-107232, covering the transportation of machinery, materials, supplies, and equipment, incidental to, or used in, the construction, development, operation, and maintenance of facilities for the discovery, development, and production of natural gas and petroleum, over irregular routes, between points in Arkansas, and between points in that State, on the one hand, and, on the other, points in Oklahoma. Of the purchase price, $50 was paid upon execution of the agreement and the remainder is payable upon completion of the transfer of the operating rights. The agreement provides that if the sale of Motor Freight's certificate is not confirmed in the R. F. C. or the transfer of the operating rights is not approved by us, all moneys paid in under the agreement would be returned. No fixed charges would be incurred in financing the purchase.

Harvey's balance sheet as of December 31, 1947, shows assets aggregating $197,582, consisting of: Current assets $71,793, principally cash $631, and accounts receivable $70,229; tangible property, less depreciation, $123,926; intangible property $1,050; and prepayments $813. Liabilities were: Current liabilities $56,585, chiefly notes payable $35,000; and sole proprietorship capital $140,997. His income statements for 1945, 1946, and 1947 show net income of $31,375, deficit of $16,019, and net income of $14,633, respectively.

Harvey has been engaged in motor transportation of oil-field commodities for 20 years. His equipment and facilities are specially adapted for this type of service and are adequate to conduct the additional operation which he seeks to purchase. The primary purpose of the proposal herein is to enable Harvey to render single-line service on the indicated commodities to and from points in Arkansas. He has experienced difficulties in arranging for interchange of shipments to and from points in that State. The commodities transported are not readily transferred and shippers generally prefer a direct service. Harvey indicates that, if the transaction is approved, he proposes to operate between points in Arkansas and Oklahoma, as authorized by the rights purchased, and, under those rights as unified with his present rights, between points in Arkansas, on the one hand, and, on the other, points in Missouri, Illinois, and Texas. The proposed operation under the unified rights would be lawfully permissible only via a point in Oklahoma served in common under the rights under separate ownership. Farmer-Purchase Crouse, 45 M. C. C. 267.

Harvey is willing to write off immediately the amount assigned to his "Other Intangible Property" account as a result of the purchase, and our findings will be conditioned accordingly.

NO. MC-F-3658

Green Line operates,18 in interstate or foreign commerce, as a motor common carrier (a) over regular routes, (1) of general commodities, with certain exceptions, between Kansas City, Mo.-Kans., and specified points in southeastern Kansas, and from Kansas City to Tulsa, with service to and from certain intermediate and off-route points in Kansas, Copan, Dewey and Nowata, Okla., without restriction, Pawhuska, Okla., restricted against transportation of packing-house products to Tulsa, and Bartlesville, Okla., restricted to delivery; (2) of petroleum products, in containers, from Tulsa, Bartlesville, and Barnsdall, Okla., and certain points in Kansas to Kansas City, and from Tulsa to Ponca City, Okla., and several points in Kansas; (3) of dressed poultry, eggs, and dairy products, from Tulsa, Bartlesville, and points in southeastern Kansas to Kansas City; (4) of formaldehyde, from Tallant, Okla., to Kansas City, Mo.; and (5) of other specified commodities,1o from Tulsa to Kansas City; and (b) over irregular routes, of roofing, building paper, insulating material, nails, and asphalt, from Kansas City to points in three Kansas counties and Kay County, Okla., returning with no transportation for compensation, except as otherwise authorized.

Under an agreement dated September 30, 1947, Green Line would purchase from the R. F. C., for $6,500, that portion of the operating rights which the latter claims as successor in interest to Motor Freight, under the certificate in No. MC-107232, covering the transportation of general commodities, with certain exceptions, over irregular routes, between points in Oklahoma, on the one hand, and, on the other, points in Missouri on all of the regular routes, and off-route points in Missouri and Illinois specified in the certificate. The agreement provides that only the irregular-route operating rights set forth above, and no others, are to be transferred; that the operating rights are to be sold and conveyed free and clear of all taxes, liens, encumbrances, debts, and claims whatsoever; and that the transaction is entered into subject to final approval of the transfer of the operating rights and

18 Under rights assigned No. MC-106214, being the portion of the operating rights confirmed in the second corrected certificate issued on May 5, 1943, in No. MC-41405 in the name of The Ark Transportation Lines, Inc., which was acquired by Floyd Green, doing business as The Green Line, under No. MC-FC-21302, on October 8, 1945, and, in turn, transferred to Green Line on March 20, 1947, under No. MC-FC-25442.

" Glass products, machinery, scrap metals, waste paper, paint, paint products, dry ice, iron and steel articles, and packing-house products.