Judge OKs Merger of Catalina Island Ferries

An administrative law judge, persuaded that a quick decision will best serve the public interest as the summer tourist season approaches, said Friday that he will recommend approval by the Public Utilities Commission of the near monopolistic merger of the two companies running ferries between Santa Catalina Island and Long Beach and San Pedro.

Ruling against a group of Catalina residents who opposed the takeover as well as the Inlandboatmen's Union of the Pacific, Orville Wright decided not to hold further hearings on the merger.

Catalina Cruises is selling its operating permits and three 700-passenger ferries and one smaller one to Catalina Channel Express for $1 million.

If approved by the PUC, Catalina Express would assume Catalina Cruise's lease at its Long Beach terminal. It plans to lay off all Catalina Cruises employees, including 60 unionized crew members.