[Federal Register Volume 64, Number 209 (Friday, October 29, 1999)]
[Notices]
[Pages 58466-58467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28412]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33809]
RailTex, Inc., North Carolina & Virginia Railroad Company, Inc.,
Chesapeake and Albemarle Railroad Company, Inc., Dallas, Garland &
Northeastern Railroad, Inc., Mid-Michigan Railroad, Inc., and Indiana
Southern Railroad, Inc.--Corporate Family Transaction; Exemption
RailTex, Inc. (RailTex),1 North Carolina & Virginia
Railroad Company, Inc. (NCVA), Chesapeake and Albemarle Railroad
Company, Inc. (CA), Dallas, Garland & Northeastern Railroad, Inc., a
Texas corporation (DGNO), Mid-Michigan Railroad, Inc. (MMRR), and
Indiana Southern Railroad, Inc. (ISRR), have jointly filed a verified
notice of exemption. As part of the proposed corporate restructuring:
(1) the assets of DGNO and MMRR, including the assets of the Texas
Northeastern Division, a division of MMRR, will be merged into Dallas,
Garland & Northeastern Railroad, Inc., a Delaware Division (DGNO
Delaware), with DGNO Delaware as the surviving entity; (2) the assets
of NCVA and CA will be merged into North Carolina & Virginia Railroad
Company, Inc., a Delaware corporation (NCVA Delaware), with NCVA
Delaware as the surviving entity; and (3) ISRR will be reincorporated
in the State of Delaware. After the transaction is consummated, RailTex
will control 16 Class III railroads in the United States.
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\1\ RailTex is a noncarrier, which at the time of filing,
directly controlled 18 Class III railroads operating in 20 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
October 15, 1999.
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 proposed transaction will also
allow for the reincorporation of additional RailTex subsidiaries in the
State of Delaware
[[Page 58467]]
thereby simplifying RailTex's corporate governance.
This 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 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 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 revoke will not automatically stay the
transaction.
An original and 10 copies of all pleadings, referring to STB
Finance Docket No. 33809, 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 each pleading must be
served on Karl Morell, P.C., Ball Janik LLP, Suite 225, 1455 F Street,
NW, Washington, DC 20005.
Board decisions and notices are available on our website at
``WWW.STB.DOT.GOV.''
Decided: October 25, 1999.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-28412 Filed 10-28-99; 8:45 am]
BILLING CODE 4915-00-P
