[Federal Register Volume 66, Number 203 (Friday, October 19, 2001)]
[Notices]
[Page 53285]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26283]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34099]


The Kansas City Southern Railway Company--Acquisition and Merger 
Exemption--Gateway Western Railway Company and Kansas City Southern 
Transportation Company

    The Kansas City Southern Railway Company (KCSR), Gateway Western 
Railway Company (GWWR), and Kansas City Southern Transportation Company 
(KCSTC) jointly filed a verified notice of exemption.\1\ As part of a 
proposed corporate restructuring: (1) KCSTC will convey to KCSR all of 
the stock it owns in GWWR, which is all of GWWR's issued and 
outstanding stock, of all classes; and (2) KCSTC and GWWR will be 
merged into KCSR, with KCSR as the surviving entity. After the 
transaction is consummated, GWER will remain a wholly owned subsidiary 
of KCSR. Under the agreement and plan of merger, KCSR will assume all 
rights, obligations and business functions of its subsidiaries.
---------------------------------------------------------------------------

    \1\ KCSR, a Class I carrier, operating in the States of 
Nebraska, Iowa, Kansas, Missouri, Oklahoma, Arkansas, Texas, 
Louisiana, Mississippi, Tennessee, and Alabama, owns all of the 
issued and outstanding stock of KCSTC. KCSTC, a noncarrier holding 
company, owns all of the issued and outstanding stock of GWWR. GWWR, 
a Class II carrier operating in the States of Kansas, Missouri, and 
Illinois, owns all of the issued and outstanding stock of Gateway 
Eastern Railway (GWER), a Class III carrier operating in the State 
of Illinois.
---------------------------------------------------------------------------

    The transaction was scheduled to be consummated on or shortly after 
September 28, 2001, the effective date of the exemption.
    The purpose of the transaction is to eliminate multiple filing, 
reporting and record keeping to and for various entities.
    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 parties stated that the transaction will not result 
in adverse changes in service levels, significant operational changers, 
or change in the competitive balance with carriers outside the 
corporate family.
    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. Although applicants do not 
expect any employees to be adversely affected by this merger and 
control transaction, they have agreed to apply employee protective 
conditions pursuant to 49 U.S.C. 11326(a). Therefore, any employees 
adversely affected by the merger and control transaction will be 
protected by the conditions set forth in New York Dock Ry.--Control--
Brooklyn Eastern Dist., 360 I.C.C. 60 (1979).
    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. 34099 must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, NW., 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on William A. Mullins, 401 Ninth Street, NW., Suite 1000, 
Washington, DC 20004.
    Board decisions and notices are available on our website at 
``WWW.STB.DOT.GOV.''

    Decided: October 12, 2001.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
 Vernon A. Williams,
Secretary.
[FR Doc. 01-26283 Filed 10-18-01; 8:45 am]
BILLING CODE 4915-00-P