shown, and some witnesses did check to see that the bills provided to Harkema were reflected. Harkema cites Herrin Transp. Co. Extension-Atlanta, Ga., 114 M.C.C. 571. It is stated that the data concerning these shipments, including time in customs for clearance, is within the knowledge of, or available to, the protestants. Overnite Transp. Co. Ext.-Jacksonville, Fla., 115 M.C.C. 718, is cited to the effect that even undocumented testimony is sufficient unless refuted by the protesting carriers.

The applicant maintains that the protestants failed to respond to all criticisms of their service by the supporting witnesses. Overland Western's 1-day traffic study is discussed as showing a need for improved service since about 17 percent of the shipments involved transit time, from customs to delivery, in excess of 1 day.

The nature of international traffic is noted and Balazs Common Carrier Application, 98 M.C.C. 522, is cited to the effect that the Commission must look to the overall substance in both interstate and foreign aspects. Norton Common Carrier Application, 92 M.C.C. 82, is cited for the proposition that we not consider the need for service in Canada, or the effect a grant of authority might have upon existing Canadian carriers, these matters having already been decided by Canadian authorities. Any question of Harkema's operating rights within Ontario are said to be for Canadian authorities to regulate and need not concern this Commission. However, as stated in Diversified Transp. Ltd., Com Car. Applic., 120 M.C.C. 289, 292, charter bus operations, as in the Norton case, supra, must be considered in a different light from normal shipper-consignee matters.

The applicant argues that the supporting testimony is in compliance with Shaeffer Extension-New York City, 106 M.C.C. 100, as to adequate notice being given to the protestants. Motor Carrier Operation in the State of Hawaii, 115 M.C.C. 228, is also cited in this regard.

The applicant concludes that its fitness and ability to perform are not seriously in question, that the evidence of need for the proposed service is overwhelmingly and that no question should exist with respect to the admissibility of the traffic studies.

On brief, Maislin Transport Ltd. and Maislin Transport of Delaware, Inc., contend that the application stems from the desire of Harkema to expand its business rather than public need. It is argued that the applicant has failed to establish that it can perform as proposed, that the supporting traffic studies merit no consideration, and that the decisions of Canadian authorities are not suasive as to an issue of public convenience and necessity within the United States. Harkema has allegedly failed to sustain its burden of proof.

Maislin notes that a number of witnesses supporting the application did not complain of service but were motivated by the promise of an expedited service. There allegedly were few substantial complaints.

Harkema has had no experience with international traffic and is said to base its proposal on the handling of domestic traffic. Specifics are lacking as to how the applicant would accomplish the proposed service. Jerry Lipps, Inc., Extension-St. Louis-Florida, 105 M.C.C. 811, is cited to the effect that such a vague application must be denied. These protestants note that it is a relatively simple thing to promise a service which present carriers cannot provide due to circumstances beyond their control, such as customs clearance procedures; entirely different is establishment by convincing evidence that the promise, such as 24-hour service, is capable of being fulfilled.

The supporting traffic studies, in view of the stipulation by parties, allegedly merit no consideration. Also, the applicant's employees compiling the studies may or may not have included all traffic and the accuracy thereof was not always checked by the sponsoring witnesses. In view of the volume of the involved traffic, the shipments actually delayed are alleged to be miniscule. Maislin argues that it has not been established that the traffic studies are representative of service by the protestants.

The decisions of Canadian authorities are said not to warrant consideration herein since each regulatory body makes it own determination on the evidence before it. Instances of contrary decisions in complementary proceedings are cited.

A brief was submitted on behalf of the following protestants: Dominion-Consolidated, Inter-City, Husband, and Smith Transport. It is pointed out that the applicant holds no authority from this Commission operating solely within a portion of Canada. By the application, Harkema intends to expand into international traffic through interline with carriers serving in the United States, a service said to be merely duplicative of that provided by the protestants and used by supporting witnesses. Competition is said to be already keen and revenues decline, and these protestants fear further decline, through diminution of available freight, if the application were approved.

All the supporting witnesses are Canadians, primarily importing from the United States, who would divert traffic to the applicant if the proposal were approved. The traffic studies introduced by them were questioned since they were prepared by Harkema employees and it was agreed, by stipulation, that the underlying bills or witness could not subtantiate all of the data. The dates into and out of customs do not appear on the receiver's documents and must be obtained from the Canadian customs or the delivering carriers. As noted above, the protestants could better furnish that data and are in a position to refute the date shown. Under these circumstances, to question the traffic studies on the basis of nonavailability at the hearing of customs substantiation is but an exercise in legalism. Even more so, in view of certain presentations by protestants, is reference to boilerplate language and verification of attachments.

It is argued that the application is not in response to public demand but rather a desire by Harkema to expand its operations. Most of the public witnesses were solicited by the applicant and no American carrier, consignor or receiver appeared in support of the application. It is stated that the manner in which Harkema would improve the present service remains a secret; interlining American carriers have not even been considered. International traffic involves problems not encountered in domestic operations; an official of Harkema promised a total time border to receiver's dock, of 24 hours.

According to these protestants, dissatisfaction with the present service did not arise until Harkema promised an improved service. Serveral cases are cited to illustrate that delays result from customs clearance procedures for which the carrier is not responsible. These protestants argue that this Commission's determination is independent of conclusions by the Ontario Transport Board, citing several cases. The board's report is noted as not indicating an awareness of customs clearance delays. Also noted is that board's denial of Harkema's request to enlarge its area of service within Ontario, but the applicant has explained that approval was considered unnecessary in view of authority held by its affiliate, Walden Brothers Transport. The same tests for determining public convenience and necessity for domestic and international traffic are said to apply herein: These protestants conclude that the existing motor carriers are providing a reasonably prompt transportation service, that revenues have declined as international freight has diminished, and that supporting witnesses would divert traffic if the application were approved.

A joint brief was filed for Central Transport, McKinlay, Direct Winters, I.C.L. International, Jones, Overland Western and Thibodeau, protestants. A major portion of that brief is devoted to the initial decision by another Administrative Law Judge in Frederick Transport Limited, Extension-Canadian Ports of Entry, docket No. MC-116519 (SubNo. 30), served February 9, 1976, a statement of issues herein being followed by excerpts

from that report.3 While the disposition of similar matters in the inital decision of another proceeding is informative, it is not determinative of the issues herein. The excerpts have been noted but will not be evaluated in this report; this would equally be the situation had that decision been determined by the Administrative Law Judge in this proceeding. It is argued that all of the traffic studies by supporting witnesses should be striken since prepared by employees of the applicant not called for cross-examination, and because of the selection of freight bills, the manner for obtaining customs clearance data and failure by many of the witnesses to check the accuracy of the studies. The stipulation of parties is said to warrant the striking of particular columns in these studies and thus remove the probative value thereof. These arguments have been considered above.

Questioned is the revelance of alleged service inadequacies entirely within Canada, particularly since the applicant made no attempt to show deficiencies in the United States portion of the involved traffic. The determination by the Ontario Transport Board is allegedly irrelevant; the Commission does not rubberstamp those findings in such circumstances, and cases are cited in this regard.

These protestants note that most of the supporting witnesses were from small business firms with relatively light traffic per week or month. Many have only used a few of the available carriers, yet they intend to divert traffic to Harkema if the application is approved. Allegedly, the criteria of Novak Contract Carrier Application, 103 M.C.C. 555, have not been met.

It is maintained that the protestants have proven, through their evidence discussed in this report, that the existing service is reasonably adequate. Noted is the lack of evidence by a supporting motor carrier. Allegedly, the applicant has failed to prove the feasibility of the proposed operation and the application should be denied.

As noted, 36 Ontario shippers or receivers appeared in support of the application. Attached to the statement of most witnesses was study of international traffic prepared by an employee of the applicant from freight bills, within a period reaching from 1973 well into 1975, provided by the shipper/receiver, or data obtained upon permission from Canadian customs records. In some instances, the shipper or receiver had to contact an involved carrier as to dates. Purported to be shown were point of origin, point of destination, originating carrier, pro-number and date, border point, delivering carrier, pro-number and date, date to customs for clearance, data released, date of delivery, number of days to border or transfer point, days to customs, days to delivery, and total days to delivery. Advance Process Supply Company is located at Weston, Ontario. It sells silk screen equipment and related supplies such as inks, dryers, films, and fabric. It also handles printing presses for use on glass, plastic bottles, electronic circuits, and textile products. Most of its supplies come from the United States, more than half of them being manufactured by the parent company in Chicago, Ill. Shipments vary in weight from 100 to 10,000 pounds; there are one or two stock shipments, and five or six shipments to supply customers, a month. Some 85 percent of its shipments come from Chicago over Port Huron, Mich. The transit time by Overland Western within Ontario is questioned, and there have been damaged shipments. The remainder come over Buffalo, N.Y., from Ohio or New Jersey. Transit time on these shipments moving in through service by Maislin is considered too long; Inter-City and Direct Winters have also been used on interlined movements. This receiver has used Harkema within Ontario and has had good service.

3A decision and order by Review Board Number 3, differing in part, is dated July 21, 1976, and was served August 2, 1976.

130 M.C.C.

It would give the applicant all of its traffic from the U.S. border if service proved to be as promised, 24 hours from the border to customs and 24 hours from customs to the receiver. Its traffic study shows 39 shipments from Chicago between July 1974 and April 1975.

Alumicor Limited is located at Agincourt, Ontario, and distributes metal panels used mainly as outer walls for buildings. Its customers include school boards, builders, and contractors. The panels are shipped from Lincoln, Nebr., over Buffalo-Fort Erie or the Niagara Falls border point, and shipments weigh from 100 to 5,000 pounds. Minimum shipments of locks or locksets originate at the city of Industry, Calif. All movements are by truck, except for an occasional air shipment.

This receiver no longer uses Direct Winters in Ontario because of an outstanding damage claim, Wallace Transport Company Limited has been tried, and Inter-City is presently being used although there have been damaged shipments. A dependable carrier is needed to meet construction schedules of customers. Total transit time in Canada is allegedly often 4 days or more; a traffic study indicates 31 shipments between October 1974 and May 1975. It likes Harkema's service within Ontario and would give all of its subject traffic to the applicant if the application were approved.

The supporting receiver Amana (Ontario) Sales Company is located at Scarborough, Ontario. It imports home appliances manufactured by Amana and others in the United States for sale to numerous dealerships throughout the Province of Ontario. Amana refrigerators, air conditioners, and micro-wave ovens are produced at Amana, Iowa, and Fayetteville, Tenn. Waste King dishwashers are shipped from Los Angeles, Calif. It expects to handle Hardwicke cooking appliances.

This receiver has about 12 to 15 truckloads of appliances per month, and as many less-than-truckload (LTL) shipments of parts weighing from a few pounds to several thousand pounds. It has back orders for its appliances and needs expeditious service.

The traffic study shows 46 representative shipments from July 1974 to April 1975, most of which used the New York-Ontario border points at Niagara Falls or BuffaloFort Erie, a distance in Ontario of not over 150 miles. It is alleged that transit time from customs is unsatisfactory, exceeding 2 days. Inter-City and Maislin are avoided as Canadian carriers because of alleged delays, and the application is supported for an improved transportation service which this receiver would use as much as possible.

Amercoat of Canada Limited is located at Burlington, Ontario. It manufactures chemicals and plastic pipes for sale throughout Canada. It imports chemicals in drums and plastic pipe primarily in 20-foot lengths from Buffalo, N.Y., and origins in California, with shipments ranging from 200 to 6,000 pounds. This receiver has changed from Canadian Freightways and Dominion-Consolidated but alleges that its present carrier, Direct Winters, takes up to 3 days from customs clearance to delivery. One day is said to be sufficient, and this receiver would give Harkema at least a fourth of its three to five shipments a month if the application were approved. Its traffic study shows six shipments from Buffalo between January and March of 1975.

American Can of Canada Limited, Rexdale, Ontario, supplies food and beverage companies with paper or plastic plates, cans or tins, and other various holders or dispensers imported in a steady flow from the United States through either the Buffalo-Fort Erie or the Detroit-Windsor border point to its facility at Brampton, Ontario. Shipments range from 10 to 50 a month and weigh 100 pounds to a truckload; numerous U.S. and Canadian motor carriers are used. Considered unsatisfactory is a transit time of several days to customs at Brampton and as long as 3 or 4 days for delivery after customs clearance. The service of protestants is characterized as follows: Overland Western, unsatisfactory or poor, Inter-City, bad, Smith Transport, very bad, Maislin, slow, and Husband,

fair. Support herein is based upon good experience with Harkema within Ontario and this receiver would use the proposed service. A traffic study shows 20 shipments from March to June of 1975.

Frank Brasier & Sons Limited at Weston, Ontario, is engaged in sharpening and selling bandsaw blades, carbide circular saw blades, metal and wood circular saw blades, and some hardware lines such as handsaws, measuring tapes, et cetera for industrial users. Most of the blades and saw blade ends are imported from the United States, three to five shipments a month, primarily from origins in Ohio and Massachusetts. These shipments weigh from 50 to 3,000 pounds. The protestant's Overland Western, Dominion-Consolidated, and McKinlay are used and, while their services are not entirely unsatisfactory, a substantial portion of the traffic would go to Harkema if expedited service in Ontario were provided. For December 1974 to May 1975, 13 shipments appear on this receiver's traffic study.

Frye Copysystems of Canada, Ltd., at Downsview, Ontario, manufactures one-time carbon paper, primarily for use with business forms. It imports about four shipments a month, from various United States origins, consisting of parts for production machinery, whole machines, special products from its parent company, and ink ingredients. Most are LTL, weighing 25,000 to 30,000 pounds. There have been damaged shipments by Inter-City and by Canadian Freightways; Maislin and Dominion-Consolidated are used. Transit time in Canada usually exceeds 2 days. This receiver feels that 2 days is sufficient, excluding time in customs, and supports the application for such service. Its traffic study shows 16 shipments from December 1973 to April 1975.

West Hill, Ontario is the location of Canadian Johns-Manville Company Limited, where mainly insulating materials and abestos cement pipe are produced. The volume of its traffic from the United States, up to 40 LTL shipments per month weighing up to 20,000 pounds of metal rollers, felts, rubber rings, et cetera, is such that most available Canadian motor carriers are used and custom brokers are maintained at main border points to expedite clearance. Most larger shipments move by rail. Harkema has proved to be satisfactory within Ontario and would receive traffic if the application were approved. A traffic study for July 1974 to March 1975 shows 22 shipments.

Canadian Meter Co., Ltd., at Milton, Ontario, makes various gas meters and instruments for use by commercial and household users as well as pipeline companies. It receives about 10 shipments a week weighing from under 100 pounds to 5,000 pounds each. Liquid meters come from Spartenburg, S.C., pumps, motors, et cetera, from Houston, Tex., other meter parts, steel fittings and valves from Huntingdon, Pa., and pipe from Waukegan, Ill. Five motor carriers are said to serve Milton and four are protestants herein; Husband Transport and Smith Transport are avoided because they operate through Toronto warehouses. Dominion-Consolidated is said to delay shipments in consolidating freight. Direct Winters is characterized as not entirely satisfactory. Harkema is used daily within Ontario and would be used under the proposal for at least 15-20 percent of its traffic herein. A small percentage of its traffic is reflected in a study of 28 shipments from August 1974 to May 1975.

Canron Plastics Limited is at Rexdale, Ontario; it manufactures all kinds of plastic pipe used in drainage and water systems, electrical conduit installations, and pressure pipe for industrial users and home-improvement centers. It imports various plastics assessories such as fittings, spacers, et cetera, from Morrisville, Pa., Elkhart, Ind., and Clinton, Iowa. There are one to four shipments a month weighing about 500 pounds each. Inconsistent service for the portion of the haul within Canada is alleged. Harkema has been used within Ontario and would be used as long as the promised expeditious service were maintained. From March 1974 to April 1975, six shipments were shown in its traffic study, about half of those received during the period.