[Federal Register Volume 61, Number 121 (Friday, June 21, 1996)]
[Notices]
[Page 32027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15893]



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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board1
[STB Finance Docket No. 32975]


RailTex, Inc.; Control Exemption; Indiana & Ohio Rail Corp.

    RailTex, Inc. (RailTex), a noncarrier holding company, has filed a 
notice of exemption to acquire control through stock ownership of 
Indiana & Ohio Rail Corp. (I&O), a noncarrier holding company.2 
I&O controls four separate Class III railroads as follows: Cincinnati 
Terminal Railway Company; Indiana and Ohio Railroad, Inc.; Indiana & 
Ohio Railway Company; and Indiana & Ohio Central Railroad, Inc. These 
four I&O rail carrier subsidiaries are separate corporate entities 
comprising a single rail system operating in the States of Indiana and 
Ohio as the Indiana & Ohio Rail System (I&O Rail System).
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    \1\ The ICC Termination Act of 1995, Pub. L. No. 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. 11323-24.
    \2\ RailTex is acquiring all of the issued and outstanding 
capital stock of I&O.
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    The exemption became effective, and it was reported in a letter 
filed in The Indiana & Ohio Rail Passenger Corporation--Acquisition by 
Trackage Rights and Operation Exemption--Cincinnati Terminal Railway 
Corp., Indiana and Ohio Railroad Company, Indiana & Ohio Railway 
Company, Inc., and Indiana & Ohio Central Railroad Company, Inc., STB 
Finance Docket No. 32976 (STB served June 21, 1996), that the 
transaction was consummated, on June 4, 1996.
    RailTex controls 16 existing Class III railroad subsidiaries: San 
Diego & Imperial Valley Railroad Company, Inc., operating in 
California; North Carolina & Virginia Railroad Company, Inc. (including 
Virginia Southern Division), operating in North Carolina and Virginia; 
South Carolina Central Railroad Company, Inc. (including Carolina 
Piedmont Division), operating in South Carolina; Mid-Michigan Railroad, 
Inc. (including Northeast Kansas & Missouri Division and Texas 
Northeastern Division) operating in Texas, Kansas, Missouri and 
Michigan. Chesapeake & Albemarle Railroad Company, Inc., operating in 
Virginia and North Carolina; Michigan Shore Railroad Company, Inc., 
operating in Michigan; New Orleans Lower Coast Railroad Company, Inc., 
operating in Louisiana; Dallas, Garland & Northeastern Railroad, Inc., 
operating in Texas; Indiana Southern Railroad, Inc., operating in 
Indiana; 3 Missouri & Northern Arkansas Railroad Company, Inc., 
operating in Kansas, Missouri and Arkansas; Salt Lake City Southern 
Railroad Company, Inc., operating in Utah; Grand Rapids Eastern 
Railroad, Inc., operating in Michigan; Central Oregon & Pacific 
Railroad, Inc., operating in Oregon and California; New England Central 
Railroad, Inc., operating in Vermont, New Hampshire, Massachusetts, and 
Connecticut; Georgia Southwestern Railroad, Inc. (including Georgia & 
Alabama Division and Georgia Southwestern Division), operating in 
Alabama and Georgia; and Austin & Northwestern Railroad Company, Inc. 
(including Texas-New Mexico Division), operating in Texas and New 
Mexico.
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    \3\ The Indiana Southern Railroad, Inc. operates in the State of 
Indiana but does not connect with the I&O Rail System.
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    RailTex states that: (i) the I&O Rail System will not connect with 
any railroad in the RailTex corporate family; (ii) the acquisition of 
control is not part of a series of anticipated transactions that would 
connect the I&O Rail System with any railroad in the RailTex 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. 32975, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Branch, 1201 Constitution 
Avenue, N.W., Washington, DC 20423. In addition, a copy of each 
pleading must be served on Karl Morell, Ball, Janik & Novack, 1455 F 
Street, N.W., Suite 225, Washington, DC 20005.

    Decided: June 14, 1996.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-15893 Filed 6-20-96; 8:45 am]
BILLING CODE 4915-00-P