[Federal Register Volume 61, Number 189 (Friday, September 27, 1996)]
[Notices]
[Page 50904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-24707]


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DEPARTMENT OF TRANSPORTATION
[STB Finance Docket No. 32121]


RailTex, Inc.--Continuance in Control Exemption--Connecticut 
Southern Railroad, Inc.

    RailTex, Inc. (RailTex), a noncarrier holding company, has filed a 
notice of exemption to continue in control of the Connecticut Southern 
Railroad, Inc. (CSO), upon CSO's becoming a Class III railroad.
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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).
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    This notice relates to functions that are subject to Board 
jurisdiction pursuant to 49 U.S.C. 11323-24.
    The transaction is expected to be consummated on September 20, 
1996.
    This transaction is related to STB Finance Docket No. 33120, 
Connecticut Southern Railroad, Inc.--Acquisition and Operation 
Exemption---Lines of Consolidated Rail Corporation, wherein CSO seeks 
to acquire and operate certain rail lines from Consolidated Rail 
Corporation.
    RailTex controls 20 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; 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; Austin & Northwestern Railroad Company, Inc. (including Texas-
New Mexico Division), operating in Texas and New Mexico; Cincinnati 
Terminal Railway Company, operating in Ohio; Indiana and Ohio Railroad, 
Inc., operating in Indiana and Ohio; Indiana & Ohio Railway Company, 
operating in Ohio; and Indiana & Ohio Central Railroad, Inc., operating 
in Ohio.
    RailTex states that: (i) The rail lines to be operated by CSO do 
not connect with any railroad in the RailTex corporate family; (ii) the 
transaction is not part of a series of anticipated transactions that 
would connect CSO 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. 33121, 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, Esq., Ball, Janik LLP, 1455 F 
Street, N.W., Suite 225, Washington, DC 20005.

    Decided: September 18, 1996.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 96-24707 Filed 9-26-96; 8:45 am]
BILLING CODE 4915-00-P