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UNITED STATES
SECURITIES EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No._____)*
Packaging Plus Services Inc.
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(Name of Issuer)
Common Stock, $.005 Par Value
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(Title of Class of Securities)
695 161 406
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(CUSIP Number)
Michael Margolies, U.S. Transportation Systems Inc.
33 West Main Street, Elmsford, NY 10523, (914) 345-3339
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(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
December 31, 1996
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a Statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
______________________________________________________________________________
<PAGE>
SCHEDULE 13D
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CUSIP No. 695161406
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1 NAME OF REPORTING PERSON
S.S OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
U.S. Transportation Systems Inc.
34-1397328
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
D.N.A.
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Nevada
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NUMBER OF | 7 | SOLE VOTING POWER
SHARES | | 850,000 shares
BENEFICIALLY | |--------------------------------------------------------
OWNED BY | 8 | SHARED VOTING POWER
EACH | | None
REPORTING | |------------------------------------------------------
PERSON WITH | 9 | SOLE DISPOSITIVE POWER
| | 850,000 shares
| |-----------------------------------------------------
| 10 | SHARED DISPOSITIVE POWER
| | None
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
850,000 shares
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.4%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
ITEM 1. SECURITY AND ISSUER.
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Packaging Plus Services, Inc.
20 South Terminal Drive
Plainview, NY 11803
Common Stock, $.005 par value
ITEM 2. IDENTITY AND BACKGROUND.
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Reporting Person: U.S. Transportation Systems, Inc.,
a Nevada corporation.
Address: 33 West Main Street
Elmsford, NY 10523
Principal Business: The Reporting Person is engaged in
the business of providing
transportation services and
manufacturing transportation
vehicle components.
Criminal Convictions: None
Injunctions: None
ITEM 3. SOURCE OF FUNDS.
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On December 31, 1996 U.S. Transportation Systems, Inc. ("USTS")
entered into an agreement with the Issuer, which was closed on January
7, 1997 (the "Agreement"). Pursuant to the Agreement, USTS transferred
its entertainment operations to the Issuer in consideration of 850,000
shares of the Issuer's common stock (the "Shares") and other
contractual undertakings by the Issuer.
ITEM 4. PURPOSE OF THE TRANSACTION.
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The Shares were acquired for investment. Pursuant to the Agreement,
and additional 150,000 shares will be issued to USTS during the 24
months following the closing if the Issuer does not exercise its
options to repurchase the Shares.
The Agreement provides that USTS will be entitled to nominate one
member of the Issuer's Board of Directors as long as USTS owns at
least 200,000 shares of the Issuer's common stock, and that the
maximum number of directors will be five.
<PAGE>
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
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850,000 shares; 20.4% of outstanding.
Recent Transaction: None.
ITEM 6. CONTRACTS, ETC.
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See Stock Purchase Agreement dated December 31, 1996 filed as an
exhibit to this Schedule.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
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Stock Purchase Agreement dated December 31, 1996
SIGNATURE
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After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: January , 1997
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Signature: U.S. TRANSPORTATION SYSTEMS, INC.
By: Michael Margolies
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/s/ Michael Margolies
Title: Chairman
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