Hempy

This is a proceeding to review an order of the Public Utilities Commission which authorizes the transfer of certain highway operating rights upon condition that specified creditors of the transferring utilities be given preferéntial treatment in the payment of their claims.

Highway Transport, Inc. was a highway common carrier (Pub. Util. Code, § 213) and Highway Transport Express was an affiliated express corporation (Pub. Util. Code, § 219). On March 7, 1960, they requested the commission to suspend their operating authority. On the same day they made common-law assignments for the benefit of creditors to petitioner. On March 8, 1960, the commission on its own motion ordered an investigation and suspended the operative rights of the two Highway companies pending further order. On May 19, 1960, petitioner, the two Highway companies (hereinafter referred to collectively as “Highway”) and Interstate Motor Lines, Inc. jointly applied to the commission for authority to transfer Highway’s operating rights to Interstate as provided in an agreement between petitioner and Interstate made on March 31,1960. Conditioned upon the commission’s approval, Interstate agreed to pay $127,000 for…