[Federal Register: January 28, 1999 (Volume 64, Number 18)]
[Notices]               
[Page 4490]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28ja99-153]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33704]

 
Pioneer Railcorp and Wabash & Western Railway Co.--Acquisition of 
Control Exemption--Michigan Southern Railroad Co., Inc.

    Pioneer Railcorp (Pioneer), a noncarrier holding company, and 
Wabash & Western Railway Co. (WAB), a Class III rail carrier, have 
jointly filed a verified notice of exemption to acquire, through stock 
purchase, Michigan Southern Railroad Co., Inc., (MSR), a Class III rail 
carrier, operating in the States of Michigan and Indiana.<SUP>1</SUP>
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    \1\ See Morris Leasing Co., Ltd. and Michigan Southern Railroad, 
Inc.--Acquisition and Operation Exemption--Lines of Consolidated 
Rail Corporation, STB Finance Docket No. 33265 (STB served Nov. 13, 
1996).
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    The earliest the transaction could be consummated was January 6, 
1999, the effective date of the exemption (7 days after the exemption 
was filed).
    As indicated by Pioneer and WAB in their notice, pursuant to the 
original lease agreement between WAB, MSR, Gordon D. Morris, and Morris 
Leasing Co., Ltd. (MLSC), WAB has the option to purchase the 
outstanding stock of MSR, and the rail assets of MLSC would be 
transferred to MSR prior the closing of the stock purchase. WAB will 
continue to lease and operate the lines of MSR as well as operate under 
the name of Michigan Southern Railroad.<SUP>2</SUP>
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    \2\ See Wabash & Western Railway Co.--Lease and Operation 
Exemption--Morris Leasing Co., Ltd., and Michigan Southern Railroad, 
Inc., STB Finance Docket No. 33306 (STB served Dec. 24, 1996).
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    WAB is a subsidiary of Pioneer Railcorp (Pioneer), which directly 
controls thirteeen existing shortline rail carriers. <SUP>3</SUP> 
Pioneer will indirectly control MSR upon completion of this 
transaction.
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    \3\ See Pioneer Railcorp--Continuance in Control Exemption--
Pioneer Industrial Railway Co., STB Finance Docket No. 33550 (STB 
served Feb. 20, 1998).
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    Pioneer and WAB state that: (i) The railroads do not connect with 
each other; (ii) the transaction is not part of a series of anticipated 
transactions that would connect the railroads with each other; 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. 33704, 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 all pleadings must be 
served on Daniel A. LaKemper, Esq., 1318 S. Johanson Road, Peoria, IL 
61607.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: January 21, 1999.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 99-1888 Filed 1-27-99; 8:45 am]
BILLING CODE 4915-00-P