[Federal Register Volume 64, Number 6 (Monday, January 11, 1999)]
[Notices]
[Pages 1651-1652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-566]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20942]
Laidlaw, Inc. et al.--Control and Merger--D-A-R Transit Systems,
Inc. d/b/a Galaxy Charters et al.
AGENCY: Surface Transportation Board, DOT.
ACTION: Notice tentatively approving finance application.
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SUMMARY: Laidlaw, Inc. (Laidlaw or applicant), a noncarrier that
currently controls seven interstate motor passenger carriers, has filed
an application under 49 U.S.C. 14303 to acquire control of four
additional motor passenger carriers and ultimately to merge the
carriers into existing Laidlaw affiliates. Persons wishing to oppose
the application must follow the rules under 49 CFR part 1182 (effective
October 1, 1998). The Board has tentatively approved the transaction
and, if no opposing comments are timely filed, this notice will be the
final Board action.
DATES: Comments must be filed by February 25, 1999. Applicant may file
a reply by March 12, 1999. If no comments are filed by February 25,
1999, this notice is effective on that date.
ADDRESSES: Send an original and 10 copies of any comments referring to
STB Docket No. MC-F-20942 to: Surface Transportation Board, Office of
the Secretary, Case Control Unit, 1925 K Street, NW, Washington, DC
20423-0001. In addition, send one copy of any comments to applicant's
representative: Mark J. Andrews, Barnes and Thornburg, Suite 500, 1401
Eye Street, NW, Washington, DC 20005.
FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar (202) 565-1600 [TDD
for hearing impaired: (202) 565-1695.]
SUPPLEMENTARY INFORMATION: Laidlaw currently controls seven interstate
motor passenger carriers 1 and three intrastate or regional
carriers not subject to federal economic regulation.2 A
notice published in Laidlaw Inc. and Laidlaw Transit Acquisition
Corp.--Merger--Greyhound Lines, Inc., STB Docket No. MC-F-20940 (STB
served Dec. 17, 1998) (63 FR 69710) tentatively approved the merger of
Greyhound Lines, Inc. into Laidlaw's wholly owned subsidiary, Laidlaw
Transit Acquisition Corp., to become effective February 1,
1999.3
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\1\ Laidlaw's federally regulated affiliates are: Greyhound
Canada Transportation Corp. (GCTC) (MC-304126), which is not
currently affiliated with Greyhound Lines, Inc.; Laidlaw Transit,
Inc. (MC-161299); Laidlaw Transit Ltd. (MC-102189); Roesch Lines,
Inc. (Roesch) (MC-119843); Safe Ride Services, Inc. (Safe Ride) (MC-
246193); Vancom Transportation-Illinois, L.P. (MC-167816); and
Willett Motor Coach Co. (Willett) (MC-16073).
\2\ Laidlaw's other motor transportation affiliates are: Empex
Ventures, Inc. (California); Laidlaw Transit Services, Inc.
(Minnesota and the Washington Metropolitan Area Transit Commission)
(LTSI); and The Dave Companies, Inc. (California and Minnesota).
\3\ Greyhound holds nationwide, motor passenger carrier
operating authority under Docket No. MC-1515, and controls, directly
or indirectly, the following ten regional motor passenger carriers:
Continental Panhandle Lines, Inc. (MC-8742); Valley Transit Co.,
Inc. (MC-74); Carolina Coach Co., Inc. (MC-13300); Texas, New Mexico
& Oklahoma Coaches, Inc. (MC-61120); Vermont Transit Co. Inc. (MC-
45626); Los Rapidos, Inc. (MC-293638); Americanos U.S.A., L.L.C.
(Americanos) (MC-309813); Gonzales, Inc. d/b/a Golden State
Transportation (Gonzales) (MC-173837); PRB Acquisition LLC (MC-
66810); and Autobuses Amigos, L.L.C. (Amigos) (MC-340462-C).
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Laidlaw is seeking Board approval under 49 U.S.C. 14303 for several
control, merger and consolidation transactions by which Laidlaw
proposes to acquire four additional interstate motor carriers: (1) A
company formerly known as CAR Enterprises Ltd. of Grayslake, IL (CAR),
which has a successor-in-interest known as Laidlaw Transit Services
(Two), Inc. of Burlington, Ontario (Transit Two) (MC-163344); (2) D-A-R
Transit Systems, Inc. d/b/a Galaxy Charters of Crystal Lake, IL (DAR)
(MC-311766); (3) Voyageur Colonial Limited of Montreal, Quebec
(Voyageur), including two successors-in-interest: 1327130 Ontario
Limited of Toronto, Ontario (1327130 Ontario) 4 and 3552926
Canada Inc. of Burlington, Ontario (3552926 Canada) (MC-83928); and (4)
1128570 Ontario Ltd. (1128570 Ontario) and its sole stockholder, Ms.
Gisele Rockey (Rockey) d/b/a Northern Escape Tours (Escape), and its
successor-in-interest: 1327172
[[Page 1652]]
Ontario, Ltd. (1327172 Ontario) (MC-231298).5
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\4\ Allegedly, Voyageur's authority would be transferred to
1327130 Ontario.
\5\ Applicant indicates that the shares of Transit Two, DAR and
1327172 Ontario are currently being held in separate, independent
voting trusts and shares of 1327130 Ontario will be placed in a
voting trust, if necessary.
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Board approval is also sought under 49 U.S.C. 14303 for (1) the
prospective merger of Transit Two and DAR into LTSI; (2) the
prospective consolidation of operations and assets of Voyageur into
GCTC; and (3) the consolidation of operations and assets of 1128570
Ontario into GCTC. Applicants state further that the interstate
operating authorities of DAR, Voyageur and Escape would be surrendered
as duplicative.
Applicant states that the operations of CAR and DAR have
historically consisted primarily of municipal transit services in the
Chicago, IL area, which is not subject to federal authority, and that
the operations of Voyageur and Escape have consisted of regular-route
and charter operations conducted primarily within Canada. Applicant
further states that CAR/Transit Two, DAR, Voyageur and Escape do not
hold intrastate authority. Applicant further states that these
transactions will not significantly increase its current share of the
North American markets for municipal transit/paratransit and intercity/
tourism operations by passenger motor carriers. In each of these
markets, applicant states that its current share is approximately 2%.
Applicant states that the transactions will not reduce competition
in the regulated bus industry or competitive options available to the
traveling public in the U.S. Applicant indicates that most of its
current operations are unregulated, and/or take place outside the U.S.
Applicant acknowledges, however, that this situation would change after
its proposed acquisition of Greyhound that has been tentatively
approved in STB Docket No. MC-F-20940. Applicant indicates, however,
that it will continue to face substantial competition from other bus
companies and transportation modes in the United States.
Laidlaw contends that the proposed transactions will produce
substantial benefits, including interest cost savings from
restructuring of debt and reduced operating costs from applicant's
enhanced volume purchasing power. Applicant claims that the carriers it
will acquire will benefit from the lower insurance premiums it has
negotiated and from volume discounts for equipment and fuel. Applicant
also asserts that it improves the efficiency of all acquired carriers,
while maintaining responsiveness to local conditions, by providing
centralized services to support decentralized operational and marketing
managers. Centralized support services are provided in such areas as
legal affairs, accounting, purchasing, safety management, equipment
maintenance, driver training, human resources and environmental
compliance. In addition, applicant states that it facilitates vehicle
sharing arrangements between acquired entities, so as to ensure maximum
utilization and efficient operation of equipment. According to
applicant, the involved transactions offer ongoing benefits for
employees of acquired carriers not only because of the efficiencies
described above, but also because applicant's policy is to honor all
collective bargaining agreements of acquired carriers.
Applicant asserts that the aggregate gross operating revenues from
interstate operations of the operations of carriers to be acquired and
all of Laidlaw's affiliated motor carriers exceeded $2 million for the
12-month period prior to the date of the earliest agreement covered by
the application. Applicant certifies that none of its current
affiliates nor any of the carriers it proposes to acquire has been
assigned a safety fitness rating of less than satisfactory by the U.S.
Department of Transportation.6 Applicant further certifies
that all involved carriers maintain sufficient liability insurance and
that none of the involved carriers has been or is either domiciled in
Mexico or owned or controlled by persons of that country.
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\6\ According to the application, Laidlaw's current affiliates,
GCTC, Roesch, Safe Ride and Willet have satisfactory ratings;
Laidlaw's other affiliates are unrated. Of the companies to be
acquired, Voyageur has a satisfactory rating; the other companies
are unrated.
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Under 49 U.S.C. 14303(b), the Board must approve and authorize
transactions it finds consistent with the public interest, taking into
account at least: (1) The effect of the transactions on the adequacy of
transportation to the public; (2) the total fixed charges that result;
and (3) the interest of affected carrier employees.
On the basis of the application, we find that the proposed
transactions are consistent with the public interest and should be
authorized. If any opposing comments are timely filed, this finding
will be deemed vacated and a procedural schedule will be adopted to
reconsider the application. If no timely comments are filed by the
expiration of the comment period, this decision will take effect
automatically and will be the final Board action.
Board decisions and notices are available at our website at:
``WWW.STB.DOT.GOV.''
This decision will not significantly affect the quality of the
human environment or the conservation of energy resources.
It is ordered:
1. The above-described transactions are approved and authorized,
subject to the timely filing of opposing comments.
2. If timely opposing comments are filed, the findings made in this
decision will be deemed vacated.
3. This decision will be effective on February 25, 1999, unless
timely opposing comments are filed.
4. A copy of this notice will be served on (1) the U.S. Department
of Justice, Antitrust Division, 10th Street and Pennsylvania Avenue,
N.W., Washington, DC 20530 and (2) the U.S. Department of
Transportation, Office of Motor Carriers-HIA 30, 400 Virginia Avenue,
S.W., Suite 600, Washington, DC 20024.
Decided: January 4, 1999.
By the Board, Chairman Morgan, Vice Chairman Owen and
Commissioner Clyburn.
Vernon A Williams,
Secretary.
[FR Doc. 99-566 Filed 1-8-99; 8:45 am]
BILLING CODE 4915-00-P
