No. MC-118831 (SUB-No. 40)

CENTRAL TRANSPORT, INCORPORATED, PETITION
FOR INTERPRETATION

Issuance of certificates of public convenience and necessity authorizing described operations as a common carrier by motor vehicle approved upon compliance by applicant with certain conditions.

DECISION AND ORDER

At a session of the INTERSTATE COMMERCE COMMISSION, Review Board Number 2, Members Boyle, Parker, and Eaton (Member Boyle not participating), held at its office in Washington D.C., on the 26th day of September 1975.

Upon consideration of the petitions for interpretation, the application, and the record in the above-entitled proceedings, including the report and recommended order of the joint board and the Administrative Law Judge; and

It appearing, That the Administrative Law Judge and the joint board in their initial decision recommended the granting to applicant in Nos. MC-118831 (Sub-No. 97) and (Sub-No. 98) of a certificate of public convenience and necessity authorizing the operation described in the appendix to this order, and further recommended that the petitions for interpretation or modification in Nos. MC-118831 (Sub-No. 40) and (Sub-No. 44) be dismissed; It further appearing, That the Administrative Law Judge and the joint board failed to find that applicant was fit to receive the recommended grant of authority; that although applicant's fitness is being questioned in Docket No. MC-C-7723, Bulk Haulers, Inc. v. Central Transport, Inc., and No. MC-C-8332 Chemical Leaman Tank Lines v. Central Transport, Inc., no administratively final determination has been rendered in these proceedings; and, applicant's fitness is not under investigation by this Commission's Bureau of Enforcement; that the evidence of record establishes that the carrier's conduct does not represent a willful and persistent disregard of the provision of the Interstate Commerce Act; that

'Also embraced in this proceeding is MC-118831 (Sub-No. 44), Central Transport, Incorporated-Petition for Interpretation of Certificate; MC-118831 (Sub-No. 97), Central Transport, Incorporated-Petrochemicals; and MC-118831 (Sub-No. 98), Central Transport, Incorporated-Petrochemicals from South Carolina.

applicant has been performing the proposed service in good faith for approximately 10 years; and that therefore, in our opinion, applicant's past challenged operations do not make it unfit to conduct the proposed operations and the recommended order will be modified accordingly;

And it further appearing, That the pleadings raise no new or material matters of fact or law not adequately considered and properly disposed of by the Administrative Law Judge and the joint board in their report, and are not of such nature as to require the issuance of a report discussing the evidence in the light of the pleadings;

Wherefore, and good cause appearing therefor:

We find, That the proceedings in Nos. MC-118831 (Sub-No. 40) and (Sub-No. 44) should be dismissed.

We further find, That in Nos. MC-118831 (Sub-No. 97) and (SubNo. 98) the findings of the Administrative Law Judge and the joint board should be, and they are hereby, modified to reflect that applicant is fit, willing, and able properly to perform such service and to conform to the requirements of the Interstate Commerce Act and the Commission's rules and regulations thereunder.

And we further find, That in each of the considered proceedings the evidence considered in the light of the pleadings does not warrant a result different from that reached by the Administrative Law Judge and the joint board; that the statement of facts, the conclusions, and the findings of the Administrative Law Judge and the joint board, as modified herein, being proper and correct in all other material respects, should be, and they are hereby, affirmed and adopted as our own; and

It is ordered, That the proceedings in Nos. MC-118831 (Sub-No. 40) and (Sub-No. 44) be, and they are, hereby, dismissed.

It is further ordered, That said applications in Nos. MC-118831 (Sub-No. 97) and (Sub-No. 98) except to the extent granted herein, be, and they are hereby, denied.

It is further ordered, That upon compliance by applicant with the requirements of sections 215, 217, and 221 (c) of the Interstate Commerce Act and with the Commission's rules and regulations thereunder, within the time specified in the next succeeding paragraph, an appropriate certificate will be issued.

And it is further ordered, That unless compliance is made by applicant with the requirements of sections 215, 217, and 221(c) of the act within 90 days after the date of service hereof, or within such additional time as may be authorized by the Commission, the grant

of authority made herein shall be considered as null and void and the application shall stand denied in its entirety effective upon the expiration of the said compliance time.

APPENDIX

SERVICE AUTHORIZED:

Operation by applicant, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, (1) in No. MC-118831 (Sub-No. 97), of liquid petrochemicals, in bulk, (except anhydrous ammonia, fertilizer and fertilizer materials), from points in North Carolina (except Charlotte), to points in South Carolina and Virginia, restricted against the transportation of caustic soda from Acme, N. C., and points within 5 miles thereof to points in South Carolina; and (2) in No. MC-118831 (Sub-No. 98), of liquid petrochemicals, in bulk, in tank vehicles, from points in South Carolina to points in Georgia, North Carolina, and Virginia, restricted against the transportation of liquid chemicals from Charleston, S. C., to points in Georgia.

The statement of facts, of facts, conclusions, and findings of Administrative Law Judge Joseph A. Reilly, and D. D. Coordes, State of North Carolina, James H. Still, State of South Carolina and R. Polk Gordon, Jr., State of Virginia, Joint Board No. 196, follows:

In No. MC-118831 (Sub-No. 40), by petition filed March 29, 1973, Central Transport, Incorporated seeks interpretation or modification of certificate in the above-numbered docket.

In No. MC-118831 (Sub-No. 44), by petition filed March 29, 1973, Central Transport, Incorporated seeks interpretation or modification of certificate in the above-numbered docket.

In No. MC-118831 (Sub-No. 97), by application filed March 29, 1973, Central Transport, Incorporated seeks a certificate authorizing operation, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, transporting liquid petrochemicals, in bulk, (except anhydrous ammonia, fertilizer, and fertilizer materials), from points in North Carolina (except Charlotte) to points in South Carolina and Virginia, restricted against the transportation of caustic soda from Acme, N.C., and points within 5 miles thereof to points in South Carolina.

In No. MC-118831 (Sub-No. 98), by application filed March 29, 1973, Central Transport, Incorporated, High Point, N.C., seeks a certificate authorizing operation, in interstate or foreign commerce, as a common carrier by motor vehicle, over 125 M.C.C.

irregular routes, transporting liquid petrochemicals, in bulk, in tank vehicles, from points in South Carolina to points in Georgia, North Carolina, and Virginia, restricted against the transportation of liquid chemicals from South Carolina to points in Georgia.

The petitions and applications were referred to the Administrative Law Judge and Joint Board No. 196 for hearing and initial decision thereon. Hearings were held on February 27, 28, and March 1, 1974 at Charlotte, N.C., and on April 17, 1974 at Washington, D.C. Chemical Leaman Tank Lines, Inc., and Bulk Haulers, Inc., opposed the granting of the applications and petitions. During the course of the hearings, Bulk Haulers, Inc., withdrew its protest to the petitions and the applications. Applicant is a motor common carrier engaged primarily in the transportation of bulk commodities, in tank vehicles. It maintains terminals at Charleston and Greenville, S.C., Charlotte, China Grove, High Point, Wilmington, and Moncure, N.C. It also maintains equipment and drivers at three points in North Carolina and four points in South Carolina. It operates 119 tractors and 192 tank trailers. As of September 30, 1973, Central had total assets of $2,621,676, liabilities of $441,647, and net woth of $2,180,029. For the 5 months ending September 30, 1973, Central had gross revenues of $2,581,811, and an operating profit of $566,694.

On August 8, 1967, a certificate was issued to Central by the Commission authorizing the transportation of liquid chemicals, in bulk, (except petrochemicals, anhydrous ammonia, fertilizer and fertilizer materials), from points in North Carolina, except Charlotte, to points in South Carolina and Virginia, restricted against the transportation of caustic soda from Acme, N.C., and points within 5 miles thereof to points in South Carolina.

On September 30, 1966, a certificate was issued to Central by the Commission authorizing the transportation of liquid chemicals (except petrochemicals), in bulk, in tank vehicles, from points in South Carolina to points in Georgia, North Carolina, and Virginia, with no transportation on return except as otherwise authorized, restricted against the transportation of liquid chemicals from Charleston, S.C., to points in Georgia.

It should be pointed out that in both the Sub-Nos. 40 and 44 applications Central sought the commodities described with a restriction against the transportation of petroleum and petroleum products. As finally issued by the Commission, the certificates were issued with a restriction against the transportation of petrochemicals without explanation of the reason for the substitution of petrochemicals for petroleum and petroleum products. The supporting shippers in both applications testified as to the need for services in the transportation of specific chemical commodities without regard to whether or not such products were derived from petroleum or were petrochemicals.

Immediately upon the issuance of the certificates in Sub-Nos. 40 and 44, Central embarked upon a substantial service in the transportation of chemicals within the scope of the certificates for shippers within the scope of the certificates. These chemicals included, but were not limited to, dimethyl terephtalate (DMT), methanol formaldehyde, glycols, latex, resins, chlorthenes, acetates, acetones, and acetic acid. During 1973 it transported within the scope of the authorities granted in Sub-Nos. 40 and 44, 8,443 loads with a total weight of 353,830,920 pounds with a total revenue of $2,076,248.

125 M.C.C.

EVIDENCE OF SUPPORTING SHIPPERS

American Cyanamid Company is engaged primarily in the manufacture and sale of a wide and diversified line of agricultural, medical, chemical, building and consumer products. As pertinent here, it maintains a plant at Charlotte, N.C., at which it receives shipments of formaldehyde from a manufacturer at Cel River, S.C. It has utilized the service of Central for the past 10 years in the transportation of its commodities. During 1973 it utilized Central for the transportation of 13 loads from Cel River to Charlotte. It also utilized the services of Chemical Leaman during the same period for the transportation of 42 loads. It will continue to utilize the services of Central in the event that the Commission finds, as a result of the petitions for interpretation, that Central is presently authorized to transport formaldehyde or in the event the applications are granted.

Borden Chemical Co. maintains a facility at Fayetteville, N.C., at which it produces, stores, and distributes various liquid chemicals, such as formaldehyde, methanol, urea formaldehyde resins, phenolic formaldehyde resins, adhesives, sizings, and wax emulsions. With respect to shipments made from this plant to points involved in the applications herein, Borden ships approximately 23,890,000 pounds of formaldehyde a year, 4,544,000 pounds of methanol per year, 75,173,000 pounds of resins, adhesives, and sizings. It has utilized the services of Central for the transportation of these products since the grant of the authorities in Sub-Nos. 40 and 44. Its primary carrier has been protestant Leaman but over the past few years it has been dissatisfied with this service because of inability to supply equipment, a continuing decline in the number of vehicles stationed at a point near the facility and a failure to improve service despite many meetings with protestant Chemical Leaman in an effort to cure the deficiencies of service. The matter culminated in January 1974 when a driver for the protestant Chemical Leaman in an effort to cure the deficiencies of service. The matter culminated in January 1974 when a driver for the protestant Chemical Leaman refused to handle a load of product from the Fayetteville plant and pulled his equipment from the nearby station, thus reducing the available units of protestant Chemical Leaman to one. Since that time it has placed increasing demand on the services of Central, so that it is now transporting the majority of its product moving by motor vehicle. Borden feels that it would be absolutely disasterous for its operation at Fayetteville, N.C., if it were now to lose the services of Central Transport.

Celanese Corporation is a major manufacturer and distributor of chemicals, plastics, fibers, and paints. As pertinent here, it maintains a chemical producing plant at Cel River, S.C. The plant manufactures fibers and formaldehyde. However, it serves as a storage depot for approximately 27 different varieties of chemicals which are either manufactured or distributed from that point. During 1973 its shipments from Cel River exceeded 193 million pounds. In addition, it has a Fiber Industries affiliate which maintains plants at Filberton and Earl, N.C. It is also building a multi-million dollar plant at East Darlington, S.C., scheduled to begin production in early 1974. At the Fiber Industries plants, ethylene glycol is used in the manufacture of fibers, among other things. During the manufacturing process, the pure ethylene glycol becomes "spent," that is, contaminated with foreign matters which renders it unsuitable for further use until it is cleaned or purified. The new plant at East Darlington will receive and conserve about 40 million pounds of pure ethylene glycol during its first year of production. In addition, Celanese also expects as an auxiliary source of supply to use Wilmington, N.C., as a point from which ethylene glycol can likewise be shipped into the East Darlington plant.