[Federal Register Volume 63, Number 152 (Friday, August 7, 1998)]
[Notices]
[Pages 42479-42480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21295]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20929]
Laidlaw, Inc., et al.--Control--Dave Transportation Services, et
al.; Merger--Allegheny Valley Transit Inc. et al.
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving finance application.
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SUMMARY: Laidlaw, Inc. (Laidlaw or applicant), has filed an application
under 49 U.S.C. 14303 to control 10 motor passenger carriers through
direct or indirect stock ownership and to merge 21 motor passenger
carriers into Laidlaw Transit, Inc. (Transit), a subsidiary of Laidlaw.
Persons wishing to oppose the application must follow the rules at 49
CFR part 1182, subpart B. The Board has tentatively approved the
transaction and, if no opposing comments are timely filed, this notice
will be the final Board action.
DATES: Comments are due by September 21, 1998. Applicants may reply by
October 6, 1998. If no comments are received by September 21, 1998,
this notice will become effective on that date.
ADDRESSES: Send an original and 10 copies of any comments referring to
STB Docket No. MC-F-20929 to: Surface Transportation Board, Office of
the Secretary, Case Control Unit, 1925 K Street, NW, Washington, DC
20423-0001. In addition, send one copy of any comments to applicant's
representative: Mark J. Andrews, Barnes & Thornburg, Franklin Tower,
Suite 500, 1401 Eye Street, NW, Washington, DC 20005.
FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600 [TDD
for the hearing impaired: (202) 565-1695.]
SUPPLEMENTARY INFORMATION: Laidlaw, a publicly-held Canadian
noncarrier, seeks authority to control 10 motor carrier subsidiaries
through direct or indirect stock ownership and to merge 21 motor
carriers into Transit. Apparently, the transactions have previously
occurred, but the required authority had not been obtained from the
Board or its predecessor, the Interstate Commerce Commission (ICC).
Laidlaw indicates that it is coming forward voluntarily to seek nunc
pro tunc authorization for these transactions.
Laidlaw initially contends that the transactions may not be subject
to Board jurisdiction, claiming that the transactions will affect
regulated passenger service only in form rather than substance. See
Stone Container Corporation--Control Exemption--Southwest Forest
Industries Inc., Finance Docket No. 30998 (ICC served Apr. 1, 1987). We
disagree. Laidlaw's principal business is motor carrier transit, and
its acquisition of control and merger of motor carriers is precisely
the sort of authority Congress desired to regulate by enacting 49
U.S.C. 14303.
Eight of the motor carriers subsidiaries Laidlaw seeks authority to
control are: (1) Dave Transportation Services, Inc. (Dave
Transportation) (MC-144040), which is authorized to provide charter and
special operations nationwide except in Hawaii; (2) Greyhound Canada
Transportation Corp. (Greyhound Canada) (MC-304126), which is
authorized to provide nationwide charter and special operations as well
as limited regular-route service in Michigan, New York and Washington
near U.S.-Canada border crossings;\1\ (3) Laidlaw Transit Ltd.
(Limited) (MC-102189), which is authorized to provide nationwide
charter and special operations as well as limited regular-route service
in Michigan near a U.S.-Canada border crossing; (4) Roesch Lines, Inc.
(Roesch) (MC-119843), which is authorized to provide nationwide charter
and special operations and intrastate operations in California; (5)
Safe Ride Services, Inc. (Safe Ride) (MC-246193), which is authorized
to provide charter and special operations nationwide except in Alaska
and Hawaii; (6) The DAVE Companies Inc. (DAVE) (no federal authority
but holds intrastate authority in California and Minnesota);\2\
(7)Vancom Transportation--Illinois L.P. (Vancom) (MC-167816), which is
authorized to provide charter and special operations nationwide except
in Alaska and Hawaii; and (8) Willett Motor Coach Co. (Willett) (MC-
16073), which is authorized to provide charter and special operations
between the Chicago, IL area and 14 States and the District of
Columbia.
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\1\ Apparently, Greyhound Canada is not affiliated with
Greyhound Lines, Inc. of Dallas, TX.
\2\ Laidlaw maintains that, even though this carrier holds only
intrastate authority, control of this entity falls within the
preemptive provisions of 49 U.S.C. 14303(f). The provisions of
section 14303(f) apply to the extent Laidlaw's control of DAVE is
subject to our jurisdiction.
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Transit, the ninth carrier subsidiary (MC-161299), holds nationwide
charter and special operations authority as a result of a transaction
authorized in Laidlaw Transit, Inc. et al.--Control and Merger
Exemption--National School Bus Service, Inc, Charterways Transportation
Limited, Enterprise Transit Corp., and MCS Interstate, Inc., STB
Finance Docket No. 33007 (STB served Oct. 25, 1996).
The tenth carrier subsidiary, Gray Line of Vancouver Holdings
Limited (Gray Line), proposes to acquire operating authority in MC-
94107 held by Pacific Northwest Bus Company, Ltd., authorizing
nationwide charter and special operations and regular route service
between Seattle-Tacoma International Airport and nearby U.S.-Canada
border crossings.
Applicant further seeks approval for the merger into Transit of the
following motor carriers: (1) Allegheny Valley Transit, Inc. (MC-
172080); (2) Blanchard Charter Service, Inc. (MC-177427); (3) Cheshire
Transportation Co. (MC-27518); (4) Hunt's Bus Co., Inc. (MC-212740);
(5) Jelco LaCrosse, Inc. (MC-165562); (6) Johnson's Bus, Inc. (MC-
153441); (7) Mark IV Charter Lines, Inc. (MC-141743); (8) Mobility,
Inc. (MC-182217); (9) Palmer Motor Coach Service, Inc. (MC-106642);
(10) Peaslee Transportation, Inc. (MC-167553); (11) Raleigh
Transportation Services, Inc. (MC-165041) (Raleigh); (12) Strain's Bus
Co., Inc. (MC-148366) ; (13) Timberlane
[[Page 42480]]
Transportation, Inc. (MC-139100); (14) Town & Country Transportation &
Leasing Corp. (MC-167514); (15) Travel Time Bus Lines, Inc. (MC-
147777); (16) Tri-State Transit Corp. (MC-134039); (17) United
Transportation, Inc. d/b/a Mark IV Coaches (MC-167307); (18) Vancom,
Inc. (MC-163845); (19) Vancom-Indiana, Inc. (MC-141600); (20) Vancom
Transportation, Inc. (MC-256505); and (21) Van Trans, Inc. (MC-167403).
Laidlaw states that all of the merged carriers primarily provided
school transportation services within the United States, except for
Raleigh, which primarily provided transit services in the U.S.
Applicant asserts that the combined aggregate gross revenues of its
affiliates exceed the $2 million jurisdictional threshold of section
14303(g). Applicant states further that most of its operations are
either unregulated, or take place outside the U.S. Allegedly, the
regulated U.S. transportation service faces substantial competition
from other bus companies and transportation modes.
Laidlaw further indicates that the transactions have produced and
will produce substantial benefits, including interest cost savings from
restructuring of debt and reduced operating costs from its enhanced
volume purchasing power. Applicant claims that the carriers it controls
benefit from the lower insurance premiums it has negotiated and from
volume discounts for equipment and fuel. Applicant also avers that it
improves the efficiency of all acquired carriers, while maintaining
responsiveness to local conditions, by providing centralized supporting
services, including legal affairs, accounting, purchasing, safety
management, equipment maintenance, driver training, human resources and
environmental compliance. In addition, applicant states that it
facilitates vehicle sharing arrangements between acquired entities, so
as to ensure maximum utilization and efficient operation of equipment.
According to applicant, employees will benefit from efficient
operations and from applicant's policy to honor all collective
bargaining agreements of acquired carriers.
Under 49 U.S.C. 14303(b), the Board must approve and authorize
transactions it finds consistent with the public interest, taking into
account at least: (1) The effect of the transactions on the adequacy of
transportation to the public; (2) the total fixed charges that result;
and (3) the interest of affected carrier employees.
On the basis of the application, we find that the proposed
acquisition of control and merger transactions are consistent with the
public interest and should be authorized. If any opposing comments are
timely filed, this finding will be deemed vacated and a procedural
schedule will be adopted to reconsider the application. If no timely
comments are filed by the expiration of the comment period, this
decision will take effect automatically and will be the final Board
action.\3\
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\3\ Laidlaw seeks nunc pro tunc approval of these transactions.
While we are granting our tentative approval, the need for
retroactive effect has not been demonstrated. Laidlaw evidently
recognizes that it should have sought our approval sooner but, under
the circumstances, the Board does not intend to pursue enforcement
actions against Laidlaw for the previously unauthorized common
control.
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Board decisions and notices are available on our website at:
``WWW.STB.DOT.GOV.''
This decision will not significantly affect the quality of the
human environment or the conservation of energy resources.
It is ordered:
1. The acquisitions of control and mergers are approved and
authorized, subject to the timely filing of opposing comments.
2. If timely opposing comments are filed, the findings made in this
decision will be deemed vacated.
3. This decision will be effective September 21, 1998, unless
timely opposing comments are filed.
4. A copy of this notice will be served on (1) the U.S. Department
of Transportation, Office of Motor Carriers-HIA 30, 400 Virginia
Avenue, SW, Suite 600, Washington, DC 20024; and (2) the U.S.
Department of Justice, Antitrust Division, 10th Street and Pennsylvania
Avenue, NW, Washington, DC 20530.
Decided: July 30, 1998.
By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-21295 Filed 8-6-98; 8:45 am]
BILLING CODE 4915-00-P
