[Federal Register Volume 64, Number 127 (Friday, July 2, 1999)]
[Notices]
[Pages 36066-36067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16896]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Docket No. MC-F-20947]


Francis Tedesco, Mark Tedesco, Frank Tedesco Trust, Francis 
Tedesco Trust and Mark Tedesco Trust--Acquisition--Red Apple Transit, 
Inc., Hoboken Transportation Company, Inc., Willow Bus Line, Inc., and 
Agresta Bus Company, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving finance application.

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SUMMARY: Applicants, Francis Tedesco, Mark Tedesco, Frank Tedesco 
Trust, Francis Tedesco Trust and Mark Tedesco Trust, noncarrier 
individuals who control several motor passenger carriers and a 
noncarrier, No. 22 Hillside Corp. (No. 22 Hillside), seek approval 
under 49 U.S.C. 14303 to acquire, through No. 22 Hillside, certain 
properties and the operating authorities of the following motor 
passenger carriers: Red Apple Transit, Inc. (Red Apple), Hoboken 
Transportation Company, Inc. (Hoboken), Willow Bus Line, Inc. (Willow), 
and Agresta Bus Company, Inc., d/b/a Red Apple Transit, Inc. (Agresta) 
(collectively referred to as the acquired carriers). Persons wishing to 
oppose the application must follow the rules at 49 CFR 1182. 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 must be filed by August 16, 1999. Applicants may file a 
reply by August 31, 1999. If no comments are filed by August 16, 1999, 
this notice is effective on that date.

ADDRESSES: Send an original and 10 copies of any comments referring to 
STB Docket No. MC-F-20947 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 comments to applicants' 
representative: Fritz R. Kahn, Suite 750 West, 1100 New York Avenue, 
NW, Washington, DC 20005-3934.

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

SUPPLEMENTARY INFORMATION: Applicants directly control Academy Bus 
Tours, Inc. (Academy Bus),1 Academy Express, Inc. (Academy 
Express),2 Academy Lines, Inc. (Academy Lines) 3 
(the Academy companies), Asbury Park Transit Lines 
(Asbury),4 Commuter Bus Line, Inc. (Commuter),5 
and No. 22 Hillside. Under the proposed transaction, applicants will 
indirectly acquire, through No. 22 Hillside, certain properties and the 
interstate and New Jersey intrastate operating authorities of Red 
Apple,6 Hoboken,7 and Willow,8 and the 
New Jersey intrastate operating authority of Agresta.9
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    \1\ Academy Bus holds federally issued operating authority in 
Docket No. MC-165004 to provide passenger service and other regular-
route operations principally between New York City and various 
points in New Jersey, Pennsylvania, and New York, and to conduct 
nationwide special and charter operations.
    \2\ Academy Express holds federally issued operating authority 
in Docket No. MC-145482 to provide passenger service between New 
York City and various points in New Jersey and to conduct nationwide 
special and charter operations.
    \3\ Academy Lines holds federally issued operating authority in 
Docket No. MC-106207 to provide passenger service and other regular-
route operations principally between New York City and various 
points in New Jersey and Pennsylvania and to conduct nationwide 
special and charter operations.
    \4\ Asbury holds federally issued operating authority in Docket 
No. MC-1002 to provide passenger service between New York City and 
various points in New Jersey and to conduct nationwide special and 
charter operations.
    \5\ Commuter holds federally issued operating authority in 
Docket No. MC-162133 to provide passenger service between New York 
City and various points in New Jersey and to conduct nationwide 
special and charter operations.
    \6\ Red Apple holds federally issued operating authority in 
Docket No. MC-182453 to provide passenger service between New York 
City and various points in New Jersey.
    \7\ Hoboken holds federally issued operating authority in Docket 
No. MC-54000 to provide passenger service between New York City and 
various points in New Jersey.
    \8\ Willow holds federally issued operating authority in Docket 
No. MC-240453 to provide passenger service between New York City and 
various points in New Jersey.
    \9\ Agresta holds intrastate operating authority to provide 
passenger service in New Jersey.
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    Applicants state that the aggregate gross operating revenues of the 
motor passenger carriers that they control exceeded $2 million in 
calendar year 1998. Applicants also state that No. 22 Hillside will 
continue to provide the same operations that were provided by the 
acquired carriers; that applicants will incur no debt in their 
acquisition so there will be no increase in fixed charges; and that the 
employees of the acquired carriers will be offered the opportunity to 
apply for positions with the motor passenger carriers controlled by 
applicants.
    Applicants submit that the proposed transaction will benefit the 
traveling public. According to applicants, the frequency of schedules 
will be increased, giving the public a greater choice of buses, and the 
schedules will be coordinated with those of the other Academy 
companies, reducing the need for transfers and making passenger service 
more convenient. Applicants also submit that their motor passenger 
carriers have regularly scheduled safety training programs and employ a 
full-time safety director to supervise their operations. They operate 
fleets of approximately 600 buses, cooperate to make volume purchases 
of fuel, tires and other supplies, and operate two large garages in 
Secaucus and Hoboken, NJ, where their buses routinely are inspected, 
repaired and maintained. In addition, applicants have access to

[[Page 36067]]

financial resources and profess to possess management skills that will 
permit the operations by the acquired carriers to grow.
    Applicants certify that: (1) the motor passenger carriers 
controlled by the applicants and Red Apple, Hoboken, and Willow hold 
satisfactory safety ratings from the U.S. Department of Transportation; 
(2) the carriers have the requisite liability insurance; (3) no carrier 
is domiciled in Mexico or owned or controlled by persons of that 
country; and (4) approval of the transaction will not significantly 
affect either the quality of the human environment or the conservation 
of energy resources.
    Under 49 U.S.C. 14303(b), we must approve and authorize a 
transaction we find consistent with the public interest, taking into 
consideration at least: (1) the effect of the transaction 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 is consistent with the public interest and should be 
authorized. If any opposing comments are timely filed, this finding 
will be deemed vacated and, unless a final decision can be made on the 
record as developed, a procedural schedule will be adopted to 
reconsider the application.10 If no opposing comments are 
filed by the expiration of the comment period, this decision will take 
effect automatically and will be the final Board action.
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    \10\ Under 49 CFR 1182.6(c), a procedural schedule will not be 
issued if we are able to dispose of opposition to the application on 
the basis of comments and the reply.
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    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''
    This decision will not significantly affect either the quality of 
the human environment or the conservation of energy resources.
    It is ordered:
    1. The proposed acquisition is approved and authorized, subject to 
the filing of opposing comments.
    2. If timely opposing comments are filed, the findings made in this 
decision will be deemed to be vacated.
    3. This decision will be effective on August 16, 1999, unless 
timely opposing comments are filed.
    4. A copy of this notice will be served on: (1) the U.S. Department 
of Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, NW, 
Washington, DC 20530; and (2) the U.S. Department of Transportation, 
Office of Motor Carriers-HIA 30, 400 Virginia Avenue, SW, Suite 600, 
Washington, DC 20024.

    Decided: June 28, 1999.

    By the Board.
Vernon A. Williams,
Secretary.
[FR Doc. 99-16896 Filed 7-1-99; 8:45 am]
BILLING CODE 4915-00-P