[Federal Register: January 9, 1998 (Volume 63, Number 6)]
[Notices]               
[Page 1529]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja98-116]

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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33530]

 
RailTex, Inc., Indiana & Ohio Rail Corp., Cincinnati Terminal 
Railway Company, Indiana and Ohio Railroad, Inc., Indiana & Ohio 
Railway Company, and Indiana & Ohio Central Railroad, Inc; Corporate 
Family Transaction Exemption

    RailTex, Inc. (RailTex),<SUP>1</SUP> Indiana & Ohio Rail Corp. 
(I&O),<SUP>2</SUP> Cincinnati Terminal Railway Company (CTER), Indiana 
and Ohio Railroad, Inc. (INOH), Indiana & Ohio Railway Company (IORY), 
and Indiana & Ohio Central Railroad, Inc. (IOCR) have jointly filed a 
verified notice of exemption. CTER and INOH will be merged into IORY. 
After consummation of the transaction, I&O will directly control two 
Class III railroads: the IORY and the IOCR.
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    \1\ RailTex is a noncarrier which directly controls 17 Class III 
railroads operating in 21 states, as well as 3 rail carriers that 
operate in Canada.
    \2\ RailTex also directly controls I&O, a noncarrier, which 
controls CTER, INOH, IORY, and IOCR, 4 Class III railroads that have 
been operated as a single system.
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    The transaction was to be consummated on or after December 18, 
1997. The transaction will simplify RailTex's corporate structure and 
eliminate costs associated with separate accounting, tax, bookkeeping 
and reporting functions.
    The merger of CTER and INOH into IORY 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 changes in service levels, 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 verified 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 reopen will not automatically stay the 
transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33530, 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 Karl Morell, Esq., Ball Janik LLP, 1455 F Street, N.W., Suite 
225, Washington, DC 20005.

    Decided: December 31, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 98-580 Filed 1-8-98; 8:45 am]
BILLING CODE 4915-00-P