[Federal Register Volume 70, Number 76 (Thursday, April 21, 2005)]
[Notices]
[Page 20802]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7880]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34683]


Watco Companies, Inc.--Continuance in Control Exemption--
Mississippi Southern Railroad, Inc.

    Watco Companies, Inc. (Watco), has filed a verified notice of 
exemption to continue in control of the Mississippi Southern Railroad, 
Inc. (MSRR), upon MSRR's becoming a Class III rail carrier.\1\
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    \1\ Watco owns 100% of the issued and outstanding stock of MSRR.
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    The transaction was scheduled to be consummated on or shortly after 
April 5, 2005.
    This transaction is related to the concurrently filed verified 
notice of exemption in STB Finance Docket No. 34684, Mississippi 
Southern Railroad, Inc.--Lease and Operation Exemption--The Kansas City 
Southern Railway Company. In that proceeding, MSRR seeks to acquire by 
lease from The Kansas City Southern Railway Company and operate 
approximately 26.5 miles of rail line extending between milepost 133.0, 
near Bay Springs, MS, and milepost 159.5, near Newton, MS.
    Watco, a Kansas corporation, is a noncarrier that currently 
controls 11 Class III rail carriers: South Kansas and Oklahoma Railroad 
Company (SKO), Palouse River & Coulee City Railroad, Inc. (PRCC), 
Timber Rock Railroad, Inc. (TIBR), Stillwater Central Railroad (SLWC), 
Eastern Idaho Railroad, Inc. (EIRR), Kansas & Oklahoma Railroad, Inc. 
(K&O), Pennsylvania Southwestern Railroad, Inc. (PSWR), Great Northwest 
Railroad, Inc. (GNR), Kaw River Railroad, Inc. (KRR), Mission Mountain 
Railroad, Inc. (MMT), and Appalachian & Ohio Railroad, Inc. (AO).
    Applicant states that: (1) The rail lines operated by SKO, PRCC, 
TIBR, SLWC, EIRR, K&O, PSWR, GNR, KRR, MMT, and AO do not connect with 
the rail line being leased by MSRR; (2) the continuance in control is 
not part of a series of anticipated transactions that would connect the 
rail line being acquired by MSRR with any railroad in the Watco 
corporate family; and (3) neither MSRR nor any of the carriers 
controlled by Watco are Class I carriers. Therefore, the transaction is 
exempt from the prior approval requirements of 49 U.S.C. 11323. See 49 
CFR 1180.2(d)(2). The purpose of the transaction is to reduce overhead 
expenses, coordinate billing, maintenance, mechanical and personnel 
policies and practices of applicant's rail carrier subsidiaries and 
thereby improve the overall efficiency of rail service provided by the 
12 railroads.
    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. Accordingly, the 
Board may not impose labor protective conditions here, because all of 
the carriers involved are Class III carriers.
    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.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 34683, 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 Karl Morell, 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 http://www.stb.dot.gov.

    Decided: April 13, 2005.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-7880 Filed 4-20-05; 8:45 am]
BILLING CODE 4915-01-P