many years of opportunity to do so, is not a sound basis for denying the application, at least insofar as points in Vermont are concerned. In any event, section 410 (d) of the act provides that we shall not deny any freight-forwarder application solely on the ground that the proposed service covered thereunder would be competitive with that of existing freight forwarders.

Furthermore, from the record before us, we would not be warranted in concluding that any substantial impairment in present forwarder service is threatened by the proposed operation that would be contrary to the public interest and the national transportation policy. Protestants have handled only a negligible amount of the supporting shippers' traffic in the past, even though such shippers have available a fairly substantial amount of less-than-carload traffic moving each year to the affected destination territory. It also appears that the forwarder traffic moving from points in Vermont would increase upon the institution of an efficient, readily accessible freight-forwarder service, which offers rail forwarder cars operating out of the State. Although it is urged that there is insufficient traffic available in Vermont to justify the proposed service, it is noted that Acme has just opened one assembly station in this State and intends to establish others in the near future. All things considered, we are of the view that the requested authority to operate as a freight forwarder from points in Vermont to applicant's presently authorized destination area should be granted. There is nothing of record, however, to support a grant of authority to operate as a freight forwarder from points in New Hampshire, and to this extent the application will be denied.

We find that service by applicant as a freight forwarder of commodities generally, in interstate commerce, from points in Vermont to points in the United States west of and including Michigan, Indiana, Illinois, Missouri, Arkansas, and Louisiana, will be consistent with the public interest and the national transportation policy, and that applicant is ready, able, and willing properly to perform such service. The application will be denied in all other respects.

An appropriate second amended permit and order will be issued.

MITCHELL, Commissioner, dissenting:

I have never been able to go along with the theory that we should approve additional freight-forwarder operation in the absence of a showing that there is a need for the additional service. Here there clearly is no such showing. In fact, the report indicates that there is hardly sufficient forwarder traffic for the presently authorized carriers. I respectfully dissent.

FINANCE DOCKET No. 182611

FEDERAL BARGE LINES, INC., PURCHASE, ETC.

Submitted September 15, 1953. Decided December 3, 1953

Purchase by Federal Barge Lines, Inc., and through that company, acquisition of control by the St. Louis Shipbuilding & Steel Company, a corporation, and Herman T. Pott, an individual, of the water-carrier operating rights of the Inland Waterways Corporation, operating as Federal Barge Lines and of the water-carrier transportation facilities and the railroad properties of the said vendor, approved and authorized, and provision made for the issuance of a superseding water-carrier certificate to the vendee. Conditions prescribed.

Honorable Sinclair Weeks, Louis S. Rothschild, Harold B. Corwin, and Ernest Nash for the Department of Commerce, vendor. Herman T. Pott and Wilder Lucas for vendee.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MAHAFFIE, MITCHELL, AND CROSS

BY DIVISION 4:

The Federal Barge Lines, Inc., a Delaware corporation, herein called the vendee or Federal, and the Inland Waterways Corporation, operating as Federal Barge Lines, a corporation domiciled in the District of Columbia, herein called the vendor or Inland, applied jointly on August 21, 1953, under section 5 (2) and/or section 312 of the Interstate Commerce Act, as amended, for authority to the vendee to purchase and through that company for the St. Louis Shipbuilding & Steel Company, a corporation, herein called Shipbuilding, and Herman T. Pott, an individual, by ownership of the vendee's capital stock, to acquire control of the water-carrier operating rights of the vendor under the certificates of public convenience and necessity issued in Ex Parte No. 96, Through Routes and Joint Rates Between Inland Waterways Corporation and Other Common Carriers, the second amended certificate and order dated August 14, 1947, in Nos. W-381 and W-381 (Sub-No. 2), and of the water-carrier transportation

1 And, for the purpose of giving effect to the determination herein, No. W-381, Inland Waterways Corporation Common Carrier Application, No. W-381 (Sub-No. 2), Inland Waterways Corporation Extension of Operations-Omaha, and Ex Parte No. 96, Through Routes and Joint Rates Between Inland Waterways Corporation and Other Common

facilities and the railroad properties of the vendor. No representations have been made by State authorities and no objection to the application has been presented. For the reason that the provisions of the contract of sale, discussed hereinafter, guarantee that the railroad and water-carrier service to the public will be continued in a manner substantially similar to the service now provided, it is our opinion that a public hearing is not necessary in the public interest. By our order dated and effective September 14, 1953, entered in this proceeding pursuant to the applicant's request, Federal was granted temporary approval to exercise and control the operating rights and properties of Inland for a period of 180 days. That approval will cease to be of force and effect as of the effective date of the water-carrier certificate to be issued to Federal Barge Lines, Inc., upon consummation of the transaction herein authorized.

Under the water-carrier certificate issued in Nos. W-381 and W-381 (Sub-No. 2), Vendor is authorized to operate as a common carrier by non-self-propelled vessels with the use of separate towing vessels in the transportation of commodities generally, and by towing vessels in the performance of general towage, between ports and points along (1) the Mississippi River from Minneapolis, Minn., to its mouth, including Cairo, Ill., (2) the St. Croix River from Stillwater, Minn., to its confluence with the Mississippi River, (3) the Illinois Waterway, and Lake Michigan between Waukegan, Ill., and Gary, Ind., inclusive, (4) the Missouri River from Omaha, Nebr., to its confluence with the Mississippi River, (5) the Gulf Intracoastal Waterway from the Mississippi River to Mobile, Ala., and (6) the Mobile, Tombigbee, Warrior, and Black Warrior Rivers, including the Locust and Mulberry Forks of the Black Warrior River and Short Creek, including the ports named. Vendor also holds certificates of public convenience and necessity issued by the Commission in Ex Parte No. 96 under section 3 (e) of the Inland Waterways Corporation Act 2 covering operations between Minneapolis and New Orleans, La., by way of the Mississippi River, and between New Orleans and Birmingham (Port Birmingham) Ala., by way of Industrial Canal, Mississippi Sound, Mobile, Tombigbee, Warrior, and Black Warrior Rivers serving the following ports of call: St. Paul, Minn., Minneapolis, St. Louis, Mo., Burlington, and Dubuque, Iowa, East St. Louis, Cairo, and Rock Island, Ill., Memphis, Tenn., Helena, Ark., Vicksburg, Miss., Baton Rouge, La., New Orleans, Mobile, Holt, and Birmingham (Port Birmingham) on the Illinois River between Joliet, La Salle, Peoria, Pekin, and Havana, Ill., on the one hand, and the confluence of the Illinois and Mississippi Rivers on the other hand; and on the Missouri River between Kansas

2 Continued in effect under section 320 (e) of the Interstate Commerce Act as though issued under section 309 of the act.

City, Mo., and Kansas City, Kans., on the one hand, and the confluence of the Missouri and Mississippi Rivers, on the other. Through Routes and Joint Rates, 153 I. C. C. 129 and 172 I. C. C. 525, and Inland Waterways Corp., Through Routes and Joint Rates, 192 I. C. C. 663. Under No. W-381 (Sub-No. 3), filed February 16, 1953, by order of March 17, 1953, under section 311 (a) of the act, Inland was granted temporary authority to expire September 13, 1953, to extend its authorized operations to embrace service between ports and points along the Minnesota River below and including Port Cargill, Minn., (about 13 miles). Under No. W-381 (Sub-No. 4), Inland requested permanent authority corresponding to that specified in No. W-381 (Sub-No. 3). The application in No. W-381 (Sub-No. 4) has not been reached for consideration. By letter dated September 16, 1953, Federal advised us that under the sales agreement herein, it is required to continue to provide service to Port Cargill, and for that purpose requested temporary authority for a period not exceeding 180 days from September 14, 1953. By our order of September 23, 1953, in No. W-1067, issued to Federal, temporary authority to operate between ports and points along the Minnesota River below and including Port Cargill was granted as an extension of the operations which Federal was authorized to perform temporarily pursuant to the order herein of September 14, 1953. Unless sooner suspended, modified, or set aside by an order entered by us, the order in No. W-1067 will remain in effect to and including March 13, 1954. Nothing herein is to be construed as a determination of the application in No. W-381 (Sub-No. 4).

Inland Waterways Corporation.-The vendor was created by an Act of Congress effective June 3, 1924, under sections 151-157 of title 49, chapter 5, of the United States Code, as amended. Its outstanding capital stock is wholly owned by the United States of America through the Secretary of the Treasury. The operations of Inland are under the direction and supervision of the Secretary of Commerce 3 as the Governor of the Inland Waterways Corporation. Section 153 (c) of the statute, herein called the Waterways Act, declares the policy of Congress to be to continue the transportation services of Inland until, as authorized by Congress, navigable channels and adequate terminals have been completed on the rivers where Inland operates; until joint rail and water transportation service is available to the public; and until private persons engage, or are ready and willing to engage, in common-carrier service on the affected rivers. Section 153 (d) provides that when the prescribed channels, terminals, and joint rail and water service are found by the Secretary of Commerce to be available, he may lease for operation under private management, Directed and supervised by the Secretary of War prior to the Reorganization Act of

1939.

or sell to private interests, any described unit or all Inland's transportation facilities; provided that the lessee or vendee shall not be any carrier by rail or connected with a rail carrier, or be any person unable to agree to provide and with ample security, by bond or otherwise, insure satisfactorily that the facilities leased or sold will be continued in the common-carrier service in a manner substantially similar to that rendered by Inland; and that the appraised and fair value of the properties in question shall be ascertained and reported by this Commission to the President, who shall approve the proposed sale or lease. We made such report.

Inland's water-carrier routes aggregate about 3,400 miles, which reach most of the important river ports in Minnesota, Kansas, Iowa, Nebraska, Illinois, Missouri, Tennessee, Arkansas, Mississippi, Louisiana, Alabama, Kentucky, and Wisconsin. The properties are divided into 3 operating divisions, namely, the Mississippi division, which comprises 4 districts and includes the routes, points, and ports on the Mississippi, Illinois, and Missouri Rivers and certain tributary waterways, 2,818 miles; the Warrior River division, which includes the routes on the Warrior, Black Warrior, Tombigbee, and Mobile Rivers, 586 miles; and the railroad section, which consists of a single-track, standard-gage railroad wholly within Alabama, used for switching and terminal services only. The railroad line connects with the tracks of the Birmingham Southern Railway Company at Ensley Junction (Fairfield) on the outskirts of Birmingham, extends 18.117 miles to Port Birmingham, a landing on the Little Warrior River, and has 4.259 miles of yard tracks and sidings. At Ensley Junction, Inland has trackage rights over 1.98 miles of line of the Birmingham Southern Railroad Company, and owns 0.152 mile of main line, which is leased to the Southern Railway Company. In Finance Docket No. 15985, Inland Waterways Corp. Merger, 265 I. C. C. 813, (not printed in full) decided April 13, 1948, merger of the Warrior River Terminal Company into Inland was authorized.

The water-carrier transportation facilities owned by Inland as of June 30, 1953, included 256 units of floating equipment in use on the Mississippi division and 42 units used on the Warrior River division. The Mississippi equipment consisted of 19 towboats (8 built in 192021, 2 in 1933, 9 in 1938-44), 1 power unit built in 1948, 2 bow pieces, and 28 steel barges used in integrated tows, 14 barges used in semiintegrated tows, 173 steel cargo barges (33 built in 1919-20, 50 in 1926-28, 20 in 1931, 20 in 1938, 47 in 1941-44, and 3 shell barges), 11 oil barges, 5 harbor tugs, and 3 derrick barges; and the Warrior River equipment consisted of 1 towboat built in 1920, 40 steel barges built in 1921-25, and 1 harbor tug. As of the date shown, a towboat and 6 steel barges were under construction at the order of In