[Federal Register Volume 63, Number 152 (Friday, August 7, 1998)]
[Notices]
[Pages 42479-42480]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21295]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20929]


Laidlaw, Inc., et al.--Control--Dave Transportation Services, et 
al.; Merger--Allegheny Valley Transit Inc. et al.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance application.

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SUMMARY: Laidlaw, Inc. (Laidlaw or applicant), has filed an application 
under 49 U.S.C. 14303 to control 10 motor passenger carriers through 
direct or indirect stock ownership and to merge 21 motor passenger 
carriers into Laidlaw Transit, Inc. (Transit), a subsidiary of Laidlaw. 
Persons wishing to oppose the application must follow the rules at 49 
CFR part 1182, subpart B. The Board has tentatively approved the 
transaction and, if no opposing comments are timely filed, this notice 
will be the final Board action.

DATES: Comments are due by September 21, 1998. Applicants may reply by 
October 6, 1998. If no comments are received by September 21, 1998, 
this notice will become effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20929 to: Surface Transportation Board, Office of 
the Secretary, Case Control Unit, 1925 K Street, NW, Washington, DC 
20423-0001. In addition, send one copy of any comments to applicant's 
representative: Mark J. Andrews, Barnes & Thornburg, Franklin Tower, 
Suite 500, 1401 Eye Street, NW, Washington, DC 20005.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600 [TDD 
for the hearing impaired: (202) 565-1695.]

SUPPLEMENTARY INFORMATION: Laidlaw, a publicly-held Canadian 
noncarrier, seeks authority to control 10 motor carrier subsidiaries 
through direct or indirect stock ownership and to merge 21 motor 
carriers into Transit. Apparently, the transactions have previously 
occurred, but the required authority had not been obtained from the 
Board or its predecessor, the Interstate Commerce Commission (ICC). 
Laidlaw indicates that it is coming forward voluntarily to seek nunc 
pro tunc authorization for these transactions.
    Laidlaw initially contends that the transactions may not be subject 
to Board jurisdiction, claiming that the transactions will affect 
regulated passenger service only in form rather than substance. See 
Stone Container Corporation--Control Exemption--Southwest Forest 
Industries Inc., Finance Docket No. 30998 (ICC served Apr. 1, 1987). We 
disagree. Laidlaw's principal business is motor carrier transit, and 
its acquisition of control and merger of motor carriers is precisely 
the sort of authority Congress desired to regulate by enacting 49 
U.S.C. 14303.
    Eight of the motor carriers subsidiaries Laidlaw seeks authority to 
control are: (1) Dave Transportation Services, Inc. (Dave 
Transportation) (MC-144040), which is authorized to provide charter and 
special operations nationwide except in Hawaii; (2) Greyhound Canada 
Transportation Corp. (Greyhound Canada) (MC-304126), which is 
authorized to provide nationwide charter and special operations as well 
as limited regular-route service in Michigan, New York and Washington 
near U.S.-Canada border crossings;\1\ (3) Laidlaw Transit Ltd. 
(Limited) (MC-102189), which is authorized to provide nationwide 
charter and special operations as well as limited regular-route service 
in Michigan near a U.S.-Canada border crossing; (4) Roesch Lines, Inc. 
(Roesch) (MC-119843), which is authorized to provide nationwide charter 
and special operations and intrastate operations in California; (5) 
Safe Ride Services, Inc. (Safe Ride) (MC-246193), which is authorized 
to provide charter and special operations nationwide except in Alaska 
and Hawaii; (6) The DAVE Companies Inc. (DAVE) (no federal authority 
but holds intrastate authority in California and Minnesota);\2\ 
(7)Vancom Transportation--Illinois L.P. (Vancom) (MC-167816), which is 
authorized to provide charter and special operations nationwide except 
in Alaska and Hawaii; and (8) Willett Motor Coach Co. (Willett) (MC-
16073), which is authorized to provide charter and special operations 
between the Chicago, IL area and 14 States and the District of 
Columbia.
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    \1\ Apparently, Greyhound Canada is not affiliated with 
Greyhound Lines, Inc. of Dallas, TX.
    \2\ Laidlaw maintains that, even though this carrier holds only 
intrastate authority, control of this entity falls within the 
preemptive provisions of 49 U.S.C. 14303(f). The provisions of 
section 14303(f) apply to the extent Laidlaw's control of DAVE is 
subject to our jurisdiction.
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    Transit, the ninth carrier subsidiary (MC-161299), holds nationwide 
charter and special operations authority as a result of a transaction 
authorized in Laidlaw Transit, Inc. et al.--Control and Merger 
Exemption--National School Bus Service, Inc, Charterways Transportation 
Limited, Enterprise Transit Corp., and MCS Interstate, Inc., STB 
Finance Docket No. 33007 (STB served Oct. 25, 1996).
    The tenth carrier subsidiary, Gray Line of Vancouver Holdings 
Limited (Gray Line), proposes to acquire operating authority in MC-
94107 held by Pacific Northwest Bus Company, Ltd., authorizing 
nationwide charter and special operations and regular route service 
between Seattle-Tacoma International Airport and nearby U.S.-Canada 
border crossings.
    Applicant further seeks approval for the merger into Transit of the 
following motor carriers: (1) Allegheny Valley Transit, Inc. (MC-
172080); (2) Blanchard Charter Service, Inc. (MC-177427); (3) Cheshire 
Transportation Co. (MC-27518); (4) Hunt's Bus Co., Inc. (MC-212740); 
(5) Jelco LaCrosse, Inc. (MC-165562); (6) Johnson's Bus, Inc. (MC-
153441); (7) Mark IV Charter Lines, Inc. (MC-141743); (8) Mobility, 
Inc. (MC-182217); (9) Palmer Motor Coach Service, Inc. (MC-106642); 
(10) Peaslee Transportation, Inc. (MC-167553); (11) Raleigh 
Transportation Services, Inc. (MC-165041) (Raleigh); (12) Strain's Bus 
Co., Inc. (MC-148366) ; (13) Timberlane

[[Page 42480]]

Transportation, Inc. (MC-139100); (14) Town & Country Transportation & 
Leasing Corp. (MC-167514); (15) Travel Time Bus Lines, Inc. (MC-
147777); (16) Tri-State Transit Corp. (MC-134039); (17) United 
Transportation, Inc. d/b/a Mark IV Coaches (MC-167307); (18) Vancom, 
Inc. (MC-163845); (19) Vancom-Indiana, Inc. (MC-141600); (20) Vancom 
Transportation, Inc. (MC-256505); and (21) Van Trans, Inc. (MC-167403).
    Laidlaw states that all of the merged carriers primarily provided 
school transportation services within the United States, except for 
Raleigh, which primarily provided transit services in the U.S.
    Applicant asserts that the combined aggregate gross revenues of its 
affiliates exceed the $2 million jurisdictional threshold of section 
14303(g). Applicant states further that most of its operations are 
either unregulated, or take place outside the U.S. Allegedly, the 
regulated U.S. transportation service faces substantial competition 
from other bus companies and transportation modes.
    Laidlaw further indicates that the transactions have produced and 
will produce substantial benefits, including interest cost savings from 
restructuring of debt and reduced operating costs from its enhanced 
volume purchasing power. Applicant claims that the carriers it controls 
benefit from the lower insurance premiums it has negotiated and from 
volume discounts for equipment and fuel. Applicant also avers that it 
improves the efficiency of all acquired carriers, while maintaining 
responsiveness to local conditions, by providing centralized supporting 
services, including legal affairs, accounting, purchasing, safety 
management, equipment maintenance, driver training, human resources and 
environmental compliance. In addition, applicant states that it 
facilitates vehicle sharing arrangements between acquired entities, so 
as to ensure maximum utilization and efficient operation of equipment. 
According to applicant, employees will benefit from efficient 
operations and from applicant's policy to honor all collective 
bargaining agreements of acquired carriers.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize 
transactions it finds consistent with the public interest, taking into 
account at least: (1) The effect of the transactions on the adequacy of 
transportation to the public; (2) the total fixed charges that result; 
and (3) the interest of affected carrier employees.
    On the basis of the application, we find that the proposed 
acquisition of control and merger transactions are consistent with the 
public interest and should be authorized. If any opposing comments are 
timely filed, this finding will be deemed vacated and a procedural 
schedule will be adopted to reconsider the application. If no timely 
comments are filed by the expiration of the comment period, this 
decision will take effect automatically and will be the final Board 
action.\3\
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    \3\ Laidlaw seeks nunc pro tunc approval of these transactions. 
While we are granting our tentative approval, the need for 
retroactive effect has not been demonstrated. Laidlaw evidently 
recognizes that it should have sought our approval sooner but, under 
the circumstances, the Board does not intend to pursue enforcement 
actions against Laidlaw for the previously unauthorized common 
control.
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    Board decisions and notices are available on our website at: 
``WWW.STB.DOT.GOV.''
    This decision will not significantly affect the quality of the 
human environment or the conservation of energy resources.
    It is ordered:
    1. The acquisitions of control and mergers are approved and 
authorized, subject to the timely filing of opposing comments.
    2. If timely opposing comments are filed, the findings made in this 
decision will be deemed vacated.
    3. This decision will be effective September 21, 1998, unless 
timely opposing comments are filed.
    4. A copy of this notice will be served on (1) the U.S. Department 
of Transportation, Office of Motor Carriers-HIA 30, 400 Virginia 
Avenue, SW, Suite 600, Washington, DC 20024; and (2) the U.S. 
Department of Justice, Antitrust Division, 10th Street and Pennsylvania 
Avenue, NW, Washington, DC 20530.

    Decided: July 30, 1998.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-21295 Filed 8-6-98; 8:45 am]
BILLING CODE 4915-00-P