[Federal Register Volume 61, Number 59 (Tuesday, March 26, 1996)]
[Notices]
[Page 13228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7241]
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DEPARTMENT OF TRANSPORTATION
\1\ The ICC Termination Act of 1995, Pub. L. 104-88, 109 Stat.
803, which was enacted on December 29, 1995, and took effect on
January 1, 1996, abolished the Interstate Commerce Commission and
transferred certain functions to the Surface Transportation Board
(Board). This notice relates to functions that are subject to Board
jurisdiction pursuant to 49 U.S.C. 11323.
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[STB Finance Docket No. 32877]
Pioneer Railcorp; Acquisition of Control Exemption; KNRECO, Inc.,
d/b/a/ Keokuk Junction Railway
Pioneer Railcorp. (Pioneer), a noncarrier holding company, has
filed a notice of exemption to acquire a controlling interest (66.62%
of the stock) of KNRECO, Inc., d/b/a Keokuk Junction Railway (KJRY)
from its majority shareholder John Warfield. KJRY is a Class III common
carrier railroad which owns 38 miles of track as follows: 28.4 miles of
track from Keokuk to LaHarpe, Hancock County, IL, from MP 195.0 to MP
223.4; 5.1 miles of track from Hamilton to Warsaw, Hancock County, IL,
from MP 222.6 to MPW 227.7 (of which 1.5 miles are actively operated
from MPW 222.6 to MP 224.1) and 4.5 miles of track extending from
Keokuk westward from MP 0.0 to MP 4.5 (of which 2.5 miles are actively
operated from MP 0.0 to MP 2.5). Pioneer will make a tender offer to
acquire the remaining stock of KJRY. The transaction was scheduled to
be consummated on or after March 8, 1996.
Pioneer owns and controls eight existing Class III shortline rail
carriers: West Michigan Railroad Co., operating in Michigan; Fort Smith
Railroad Co., operating in Arkansas; Alabama Railroad Co., operating in
Alabama; Mississippi Central Railroad Co., operating in Mississippi and
Tennessee; Alabama & Florida Railway Co., operating in Alabama; Decatur
Junction Railway Co., operating in Illinois; Vandalia Railroad Company,
operating in Illinois; and Minnesota Central Railroad Co., operating in
Minnesota.
Pioneer states that: (i) The railroads will not connect with each
other or any railroad in their corporate family; (ii) the acquisition
of control is not part of a series of anticipated transactions that
would connect the nine railroads with each other or any railroad in
their 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. 32877, must be filed with the Surface Transportation
Board, Office of the Secretary, Case Control Branch, 1201 Constitution
Avenue, N.W., Washington, DC 20423 and served on: Keith G. O'Brien,
Esq., Rea, Cross & Auchincloss, Suite 420, 1920 N Street, N.W.,
Washington, DC 20036.
Decided: March 20, 1996.
By the Board, David M. Konschnik, Director, Office of
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-7241 Filed 3-25-96; 8:45 am]
BILLING CODE 4915-00-P
