[Federal Register Volume 64, Number 12 (Wednesday, January 20, 1999)]
[Notices]
[Pages 3149-3150]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1113]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33693]
RailTex, Inc., Mid-Michigan Railroad, Inc., Michigan Shore
Railroad, Inc., and Grand Rapids Eastern Railroad, Inc.--Corporate
Family Transaction Exemption
RailTex, Inc. (RailTex),1 Mid-Michigan Railroad, Inc.
(MMRR), Michigan Shore Railroad, Inc. (MS), and Grand Rapids Eastern
Railroad, Inc. (GRE), have jointly filed a verified notice of
exemption. MS and GRE will be merged into MMRR with MMRR being the
surviving corporation. After consummation of the transaction,
[[Page 3150]]
RailTex will control 20 Class III railroads in the United States.
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\1\ RailTex is a noncarrier which directly controls 22 Class III
railroads operating in 22 states, as well as 3 rail carriers that
operate in Canada.
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The transaction was scheduled to be consummated on or shortly after
December 31, 1998.
The purpose of the transaction is to simplify RailTex's corporate
structure and eliminate costs associated with separate accounting, tax,
bookkeeping and reporting functions. The properties of the rail
carriers involved in this transaction are located in the States of
Michigan, Kansas, Missouri and Texas.
The merger of MS and GRE into MMRR is a transaction within a
corporate family of the type specifically exempted from prior review
and approval under 49 CFR 1180.2(d)(3). The parties state that the
transaction will not result in adverse changes in service levels,
significant operational changes, or a change in the competitive balance
with carriers operating outside the corporate family.
Under 49 U.S.C. 10502(g), the Board may not use its exemption
authority to relieve a rail carrier of its statutory obligation to
protect the interests of its employees. Section 11326(c), however, does
not provide for labor protection for transactions under sections 11324
and 11325 that involve only Class III rail carriers. Because this
transaction involves Class III rail carriers only, the Board, under the
statute, may not impose labor protective conditions for this
transaction.
If the notice contains false or misleading information, the
exemption is void ab initio. Petitions to revoke the exemption under 49
U.S.C. 10502(d) may be filed at any time. The filing of a petition to
revoke will not automatically stay the transaction.
An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 33693, must be filed with the Surface Transportation
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W.,
Washington, DC 20423-0001. In addition, a copy of each pleading must be
served on Karl Morell, P.C., Ball Janik LLP, Suite 225, 1455 F Street,
N.W., Washington, DC 20005.
Board decisions and notices are available on our website at
WWW.STB.DOT.GOV.
Decided: January 12, 1999.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-1113 Filed 1-19-99; 8:45 am]
BILLING CODE 4915-00-P
