[Federal Register Volume 64, Number 18 (Thursday, January 28, 1999)]
[Notices]
[Page 4490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1888]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33704]
Pioneer Railcorp and Wabash & Western Railway Co.--Acquisition of
Control Exemption--Michigan Southern Railroad Co., Inc.
Pioneer Railcorp (Pioneer), a noncarrier holding company, and
Wabash & Western Railway Co. (WAB), a Class III rail carrier, have
jointly filed a verified notice of exemption to acquire, through stock
purchase, Michigan Southern Railroad Co., Inc., (MSR), a Class III rail
carrier, operating in the States of Michigan and Indiana.1
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\1\ See Morris Leasing Co., Ltd. and Michigan Southern Railroad,
Inc.--Acquisition and Operation Exemption--Lines of Consolidated
Rail Corporation, STB Finance Docket No. 33265 (STB served Nov. 13,
1996).
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The earliest the transaction could be consummated was January 6,
1999, the effective date of the exemption (7 days after the exemption
was filed).
As indicated by Pioneer and WAB in their notice, pursuant to the
original lease agreement between WAB, MSR, Gordon D. Morris, and Morris
Leasing Co., Ltd. (MLSC), WAB has the option to purchase the
outstanding stock of MSR, and the rail assets of MLSC would be
transferred to MSR prior the closing of the stock purchase. WAB will
continue to lease and operate the lines of MSR as well as operate under
the name of Michigan Southern Railroad.2
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\2\ See Wabash & Western Railway Co.--Lease and Operation
Exemption--Morris Leasing Co., Ltd., and Michigan Southern Railroad,
Inc., STB Finance Docket No. 33306 (STB served Dec. 24, 1996).
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WAB is a subsidiary of Pioneer Railcorp (Pioneer), which directly
controls thirteeen existing shortline rail carriers. 3
Pioneer will indirectly control MSR upon completion of this
transaction.
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\3\ See Pioneer Railcorp--Continuance in Control Exemption--
Pioneer Industrial Railway Co., STB Finance Docket No. 33550 (STB
served Feb. 20, 1998).
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Pioneer and WAB state that: (i) The railroads do not connect with
each other; (ii) the transaction is not part of a series of anticipated
transactions that would connect the railroads with each other; and
(iii) the transaction does not involve a Class I carrier. Therefore,
the transaction is exempt from the prior approval requirements of 49
U.S.C. 11323. See 49 CFR 1180.2(d)(2).
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. 33704, must be filed with the Surface Transportation
Board, Office of the Secretary, Case Control Unit, 1925 K Street, NW,
Washington, DC 20423-0001. In addition, a copy of all pleadings must be
served on Daniel A. LaKemper, Esq., 1318 S. Johanson Road, Peoria, IL
61607.
Board decisions and notices are available on our website at
``WWW.STB.DOT.GOV.''
Decided: January 21, 1999.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-1888 Filed 1-27-99; 8:45 am]
BILLING CODE 4915-00-P
