truckload shipments are refrigerated with dry ice. Truckload shipments are normally consigned to a single customer, but at times multiple-delivery service is required. Klarer expects the need for such service to increase in the future for two reasons; first, because it is servicing smaller accounts, and secondly, because of a recent government ruling requiring that less-thantruckload quantities of perishable canned meats be shipped in mechanically refrigerated vehicles. Prior to this ruling, such shipments had been dry iced and shipped in nonrefrigerated vehicles in mixed loads with nonperishable freight.

During the aforementioned 18-month period, Klarer also utilized rail transportation and the services of Youngblood and of a motor contract carrier which is not a party to this proceeding. Midwest Emery and applicant transported Klarer's shipments to Birmingham, Mobile, and Leeds, Ala., and during the first half of 1962, handled some of the shipper's Florida traffic. Shipments to Albany and Atlanta, Ga., were handled by Youngblood and by rail, except for one shipment transported by Midwest Emeryapplicant and another in private carriage. Shipments to points in Virginia, including Bristol, Norfolk, Salem, Smithfield, Williamsburg, and Richmond, totaled 1,176,000 pounds and moved predominantly by rail, although about one-third (383,000 pounds) was transported by consignees in private carriage. Shipments to Baton Rouge and the New Orleans area, including Arabi, were transported by Midwest Emery-applicant in conjunction with Gulf Coast. Prior thereto the shipper utilized the interline service of Southern Forwarding and Gordons on its New Orleans traffic. However, following establishment of the Midwest Emery-applicant-Gulf Coast operation, Klarer discontinued its use of Southern Forwarding and Gordons on truckload freight, but continued to tender them its less-than-truckload shipments until advised by Gordons that shipments of canned meat refrigerated with dry ice would not be accepted for handling during the summer months. Shipments to North Carolina were chiefly handled by Youngblood, but Klarer has recently begun to route all truckload traffic to points in that State via Midwest Emery-applicant and all less-than-truckload freight via Youngblood. Shipments to points in Tennessee, including Clarksville, Gallatin, Nashville, Lenoir City, Newport, Union City, and White Creek, totaled 1,374,000 pounds and moved predominantly in private carriage, although some less-than-truckload shipments were routed via existing motor carriers. A & H has solicited Klarer for its Memphis freight but the volume of traffic

destined to that point has not been substantial. All of the above transportation was satisfactorily performed by the carriers utilized.

Fischer Packing Company, of Louisville, hereinafter called Fischer, produces a complete line of meats and meat products at its plant in Louisville, aggregating 70,000,000 pounds in 1961. A new plant at Louisville, expected to double Fischer's current production and gross sales, was scheduled for completion in March 1963. At present, however, Fischer does not ship any substantial volume of traffic to points in the requested destination States. Since the testimony adduced by this shipper is wholly speculative as to a need for applicant's proposed service, it will not be further considered.

The operating testimony of the opposing motor carriers is summarized at length in the examiner's report and will be restated only to the extent necessary to dispose of the issues involved. All protestants operate mechanically refrigerated equipment, perform trailer interchange with connecting carriers, and are parties to tariffs providing for multiple stops in transit and split deliveries at destination.

Nelms holds certificated authority to transport (1) packinghouse products (a) from Louisville to Smithfield, Va., and (b) from Smithfield to Laurinburg, N.C., and points within 5 miles thereof; (2) meat and meat products from Smithfield to points in Virginia within the Washington, D. C., commercial zone, as well as to Raleigh, Rocky Mount, Greenville, Washington, Wilson, and Wilmington, N.C.; (3) meats (a) from Smithfield to Suffolk, Newport News, and Norfolk, Va., and (b) from Suffolk to Portsmouth, Va., points in Nansemond and Isle of Wight Counties, Va., and those in a described area in the eastern part of Southampton County, Va. By combining these rights at Smithfield and Suffolk, Nelms offers single-line service from Louisville to the above-indicated Virginia and North Carolina points. At the request of the consignees, Nelms recently participated in the movement of three shipments from Klarer's plant at Louisville to Kinston, N. C., and Smithfield. The Kinston shipment was interlined with a connecting carrier at Smithfield, with protestant's trailer moving through to destination.

A & H, a general-commodity carrier, operates over various regular routes extending from St. Louis, Mo., to Indianapolis, Ind., Louisville, and Cincinnati, Ohio, and from Louisville to Memphis, Tenn. It engages in daily operations from Louisville to 95 M.C.C.

Memphis, where traffic destined to points in Tennessee, Louisiana, and Mississippi is interchanged with connecting carriers.

Southern Forwarding is a common carrier of general commodities, with exceptions, and operates over a regular route from Louisville to Memphis, serving off-line points in Tennessee, Mississippi, Louisiana, Alabama, and a portion of Florida by interchange with connecting carriers. It interchanges freight with 62 carriers at Memphis, and recently participated in the transportation of some of Klarer's less-than-truckload traffic to points in New Orleans under an arrangement in which Gordons was utilized as the delivering carrier. However, Southern Forwarding has not been tendered any volume shipments by Klarer since the arrangements between Midwest Emery and applicant went into effect.

Gordons operates as a common carrier by motor vehicle of general commodities, with exceptions, over a network of regular routes extending from Memphis to Atlanta, Ga., through Huntsville, Decatur, and Birmingham, Ala., and from Memphis to New Orleans and Mobile through Jackson, Miss. In No. MC-F-7474, Gordons was authorized, by order entered October 3, 1961, to control Huff, a general-commodity carrier operating over regular routes between numerous Louisiana points, including New Orleans and Baton Rouge. Gordons is not authorized to serve Louisville, but would participate as a delivering carrier on traffic moving to points either it or Huff is authorized to serve. Gordons has performed interchange with A & H and Southern Forwarding at Memphis on traffic originated by those carriers, including truckload shipments originating at the Klarer plant in Louisville and destined to the shipper's former plant at Arabi, as well as lessthan-truckload shipments destined to New Orleans.

Youngblood holds certificated authority to transport general commodities, with exceptions, over irregular routes between specified points and territories in several southeastern States. By tacking its rights at various gateways, it can transport the involved commodities from Louisville to points in South Carolina, those in North Carolina on and west of U. S. Highway 1, and those in Georgia on and north of a line extending through Rome, Atlanta, and Augusta, Ga. Its operations are over reasonably direct routes except with respect to certain points in northwestern Georgia. During the 11-month period extending from July 1, 1961, through May 31, 1962, Youngblood transported 1,600,286 pounds of freight for Klarer from Louisville destined to points in the above States.

The Georgia traffic consisted of two less-than-truckload shipments to Augusta totaling 1,449 pounds and a 26,319-pound shipment to Savannah.

Colonial holds a certificate authorizing the transportation of meats, meat products, and meat byproducts from Louisville to all points in Louisiana except New Orleans and Baton Rouge, serving the two latter points under a joint-line arrangement with a "second proviso" operator. Colonial also engages in extensive operations out of Nashville and has a rate concurrence with a motor carrier operating to that point from Louisville. The connecting carrier, however, is not a party to this proceeding, and adduced no evidence concerning its operations.

While Alterman, Watkins, Argo-Collier, and Chicago Southern hold no authority competitive with that sought here, they are authorized to transport packinghouse products from various origins in the Midwest in single-line service to specified points and territories in the destination States named in the application. The main concern of these opposing carriers is that an unrestricted grant of authority to serve Louisville (a) would permit applicant to interline traffic with carriers with which interchange cannot now be performed at Nashville, (b) would enable applicant to participate in the movement of traffic from origins served by such connecting carriers, and (c) would thereby enhance applicant's ability to compete for traffic moving from and to points which these protestants are authorized to serve directly.

Certain protestants have questioned the validity of equipmentleasing arrangements entered into between applicant and other carriers under which the supporting shipper is afforded through service from Louisville to destination. The record before us does not provide sufficient facts for us to make such a determination. Should protestants desire to further pursue their contentions in this regard, appropriate proceedings before the Commission are available.

Protestants further assert that Midwest Emery does not exercise full and effective control over the transportation performed from Louisville to Nashville under color of its operating rights. For such arrangements to be lawful, the carrier under whose rights the leased equipment is operated must assume full responsibility for the direction, conduct, and operation of such equipment while it is in its possession. Anniston Motor Exp., Inc., Investigation of Operations, 63 M.C.C. 637, 641. Unless this is done, the operation is that of the carrier owning the vehicle, and any movement

over the routes of the putative lessee would be unlawful. Compare Coastal Tank Lines, Inc., v. Pioneer Trucking Corp., 79 M.C.C. 101, 107, and Campbell Sixty-Six Exp., Inc., v. Frisco Tran sp. Co., 81 M.C.C. 53, 56.

Also challenged is the right of Midwest Emery to transport the affected commodities from Louisville to Nashville under its existing operating rights. Midwest Emery holds a certificate in No. MC-114019 (Sub-No. 38) authorizing the transportation of such merchandise as is dealt in by wholesale and retail grocery business houses, between Nashville and Louisville, restricted to shipments moving from, to, or between warehouses or other facilities of wholesale food business houses. The record is not clear as to the identity or character of the ultimate consignees of the involved traffic. Applicant is cautioned to ensure that its leasing arrangements are in compliance with our regulations and the principles set forth above, and that any traffic received from Midwest Emery in the future conforms to the restriction in Midwest Emery's certificate.

To be entitled to a certificate, applicant must show that its proposed operations are required by the public convenience and necessity. In our opinion, such a showing has been made with respect to substantially all points in Alabama, Georgia, Tennessee, Virginia, and the described area in eastern North Carolina, but not with respect to the other destination States named in the application. No traffic is shown to be moving to points in Mississippi, and no inadequacy is shown in the transportation facilities available from Colonial to points in Louisiana. The fact that Klarer may occasionally require multiple-delivery service to destinations both within and beyond the scope of protestants' operating rights does not, in our opinion, constitute a basis for placing applicant in a position to compete for traffic now being handled by protestants for other shippers from Louisville to points within the denied States. As concerns Virginia and Tennessee, the affected protestants do not hold sufficiently comprehensive authority, either as to commodities or territory, to perform the service required. However, A & H, Nelms, and Southern Forwarding deserve to be protected to the extent that they can perform a reasonably direct single-line service on packinghouse products from Louisville to points in the Memphis and Smithfield commercial zones. While Nelms can provide reasonably direct service to the Hampton Roads, Va., area, its authority is limited to the transportation of meats and thus it appears that it cannot meet the shipper's