[Federal Register Volume 61, Number 177 (Wednesday, September 11, 1996)]
[Notices]
[Page 48002]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-23215]


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DEPARTMENT OF TRANSPORTATION
[STB Finance Docket No. 33014]


Modesto and Empire Traction Company, Beard Land and Investment 
Co., Beard Land Improvement Company, and New Modesto and Empire 
Traction Company--Corporate Family Transaction Exemption

    Modesto \1\ and Empire Traction Company (MET), Beard Land and 
Investment Co. (BI), Beard Land Improvement Company (BL), and New 
Modesto and Empire Traction Company (NMET), have filed a joint notice 
of exemption to undertake a corporate family transaction. MET, a short 
line rail carrier, will merge into its parent BI, a noncarrier. BI and 
BL, a noncarrier subsidiary of MET, will concurrently transfer certain 
rail properties to NMET, a noncarrier company, in exchange for its 
common stock. The name of the surviving corporation will then be 
changed to Modesto and Empire Traction Company. The proposed 
transaction was to be consummated on the date of final agreement of 
parties but not sooner than August 19, 1996, the effective date of the 
exemption.
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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.
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    This 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 transaction will not result in adverse changes in 
service levels, significant operational changes, or a change in the 
competitive balance with carriers operating outside applicants' 
corporate family. The purpose of the transaction is to simplify 
corporate structure to achieve certain economies and efficiencies in 
the surviving corporation.
    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 railroad carriers. Because this 
transaction involves Class III rail carriers only, the Board, under the 
statute, may not impose labor protective conditions for this 
transaction.
    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. 33014, 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: John B. Lowry, 
McCutchen, Doyle, Brown & Enersen, Three Embarcadero Center, 18th 
Floor, San Francisco, CA 94111.

    Decided: September 5, 1996.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-23215 Filed 9-10-96; 8:45 am]
BILLING CODE 4915-00-P