[Federal Register Volume 68, Number 93 (Wednesday, May 14, 2003)]
[Notices]
[Pages 25929-25930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12002]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34339]


Huron & Eastern Railway Company, Inc.-Corporate Family Merger 
Exemption-Saginaw Valley Railway Company, Inc.

    Huron & Eastern Railway Company, Inc. (HESR)\1\ and the Saginaw 
Valley Railway Company, Inc. (SGVY),\2\ both of which are subsidiaries 
of RailAmerica, Inc., have filed a verified notice of exemption with 
respect to a proposed corporate restructuring, through which SGVY will 
merge into HESR, with HESR as the surviving entity. Under the agreement 
and plan of merger, HESR will own all of the assets of SGVY and will be 
responsible for all debts, liabilities, and obligations of SGVY.
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    \1\ HESR, a Class III rail carrier, owns and operates 
approximately 171 miles of railroad in the State of Michigan.
    \2\ SGVY, a Class III rail carrier, owns and operates 
approximately 56.72 miles of railroad in the State of Michigan.
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    The transaction was scheduled to be consummated on or after April 
21, 2003, the effective date of the exemption (7 days after the 
exemption was filed).
    The purpose of the transaction is to reduce corporate overhead and 
duplication and save state taxes.
    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 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 rail 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 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. 34339 must be filed with the

[[Page 25930]]

Surface Transportation Board, 1925 K Street, NW., Washington, DC 20423-
0001. In addition, a copy of each pleading must be served on Louis E. 
Gitomer, Of Counsel, BALL JANIK LLP, 1455 F Street, NW., Suite 225, 
Washington, DC 20005.
    Board decisions and notices are available on our Web site at 
www.stb.dot.gov.

    Decided: May 8, 2003.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 03-12002 Filed 5-13-03; 8:45 am]
BILLING CODE 4915-01-P