[Federal Register Volume 63, Number 6 (Friday, January 9, 1998)]
[Notices]
[Page 1529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-580]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33530]
RailTex, Inc., Indiana & Ohio Rail Corp., Cincinnati Terminal
Railway Company, Indiana and Ohio Railroad, Inc., Indiana & Ohio
Railway Company, and Indiana & Ohio Central Railroad, Inc; Corporate
Family Transaction Exemption
RailTex, Inc. (RailTex),1 Indiana & Ohio Rail Corp.
(I&O),2 Cincinnati Terminal Railway Company (CTER), Indiana
and Ohio Railroad, Inc. (INOH), Indiana & Ohio Railway Company (IORY),
and Indiana & Ohio Central Railroad, Inc. (IOCR) have jointly filed a
verified notice of exemption. CTER and INOH will be merged into IORY.
After consummation of the transaction, I&O will directly control two
Class III railroads: the IORY and the IOCR.
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\1\ RailTex is a noncarrier which directly controls 17 Class III
railroads operating in 21 states, as well as 3 rail carriers that
operate in Canada.
\2\ RailTex also directly controls I&O, a noncarrier, which
controls CTER, INOH, IORY, and IOCR, 4 Class III railroads that have
been operated as a single system.
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The transaction was to be consummated on or after December 18,
1997. The transaction will simplify RailTex's corporate structure and
eliminate costs associated with separate accounting, tax, bookkeeping
and reporting functions.
The merger of CTER and INOH into IORY 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 changes in service levels, operational
changes, or a change in the competitive balance with carriers 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 verified notice contains false or misleading information,
the exemption is void ab initio. Petitions to reopen the proceeding to
revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time.
The filing of a petition to reopen will not automatically stay the
transaction.
An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 33530, 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, Esq., Ball Janik LLP, 1455 F Street, N.W., Suite
225, Washington, DC 20005.
Decided: December 31, 1997.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 98-580 Filed 1-8-98; 8:45 am]
BILLING CODE 4915-00-P
