[Federal Register Volume 62, Number 225 (Friday, November 21, 1997)]
[Notices]
[Page 62400]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30668]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33493]
RailAmerica, Inc.--Acquisition of Control Exemption--Cape Fear
Railways, Inc.
RailAmerica, Inc. (RailAmerica), a noncarrier, has filed a notice
of exemption to acquire, through stock purchase, the Cape Fear
Railways, Inc. (CF), a Class III railroad, operating in the State of
North Carolina.1
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\1\ RailAmerica will purchase the stock of CF from Seaboard
Corporation.
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The transaction was expected to be consummated on or after October
17, 1997.
RailAmerica directly controls 11 common carrier Class III railroads
operating in 7 states: the Cascade and Columbia River Railroad Company;
the Delaware Valley Railway Company, Inc.; the St. Croix Valley
Railroad Company; the Gettysburg Railway; the Huron & Eastern Railway
Company, Inc.; the Minnesota Northern Railroad, Inc.; the Otter Tail
Valley Railroad Company; the Saginaw Valley Railway Company, Inc; the
West Texas & Lubbock Railroad Company, Inc.; the Dakota Rail, Inc.; and
the South Central Tennessee Railroad Company.
RailAmerica states that: (i) The rail lines to be operated by CF do
not connect with any railroad in the corporate family; (ii) the
transaction is not part of a series of anticipated transactions that
would connect CF with any railroad in the corporate family; 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. 33493, 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 Gary Laakso, Esq., RailAmerica, Inc., 301 Yamato Road, Suite
1190, Boca Raton, FL 33431.
Decided: November 17, 1997.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-30668 Filed 11-20-97; 8:45 am]
BILLING CODE 4915-00-P
