[Federal Register Volume 68, Number 12 (Friday, January 17, 2003)]
[Notices]
[Pages 2633-2634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-971]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34300]


Jeffrey L. Sutch and Leonard J. Smolsky-Intracorporate Family 
Transaction Exemption

    Jeffrey L. Sutch and Lenorad J. Smolsky (Applicants), have filed a 
verified notice of exemption to merge Penn-Jersey Lines, Inc. (PJRL) 
into SMS Rail Service, Inc. (SLRS) with SLRS as the surviving 
entity.\1\
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    \1\ See Penn-Jersey Rail Lines Inc.--Acquisition and Operations 
Exemption--WMI Properties, Inc., STB Finance Docket No. 33414 (STB 
served June 24, 1997); SMS Rail Service, Inc.--Lease and Operate 
Exemption--Pureland Association, Inc., STB Finance Docket No. 32494 
(STB served May 26, 1994); and Jeffrey L. Sutch and Leonard J. 
Smolsky--Continuance in Control Exemption--Penn-Jersey Rail Lines, 
Inc., STB Finance Docket No. 33415 (STB served June 24, 1997).
    Both PJRL and SLRS are Class III carriers. PJRL's lines are in 
Pennsylvania. SLRS's lines are in New Jersey.
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    The transaction was scheduled to be consummated on or after 
December 27, 2002, the effective date of the exemption (7 days after 
the notice was filed).
    The proposed merger transaction will eliminate the administrative 
expense of maintaining two separate organizations, thus reducing the 
operating costs of each. The merger will permit the consolidation of 
the railroads' equipment, their locomotives and cars, thus resulting in 
improved service to the shippers served by the two railroads.
    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 Applicants state that the transaction will not result 
in adverse changes in service levels, significant operational changes, 
or a 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. 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 
that statute, may not impose labor protective conditions for this 
transaction.
    If the verified 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.

[[Page 2634]]

    An original and ten copies of all pleadings referring to STB 
Finance Docket No. 34300, must be filed with the Surface Transportation 
Board, 1925 K Street, NW., Washington, DC 20423-0001. In addition, a 
copy of each pleading must be served on Fritz R. Kahn, 1920 N Street, 
NW., 8th Floor, Washington, DC 20036-1601.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: January 10, 2003.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 03-971 Filed 1-16-03; 8:45 am]
BILLING CODE 4915-00-P