[Federal Register Volume 70, Number 95 (Wednesday, May 18, 2005)]
[Notices]
[Page 28599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9739]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 34686]


Indiana & Ohio Railway Company--Merger Exemption--Indiana & Ohio 
Central Railroad, Inc.

    Indiana & Ohio Railway Company (IORY), a Class III rail carrier 
that operates over approximately 498.23 miles of rail line in Michigan, 
Ohio, and Indiana, and Indiana & Ohio Central Railroad, Inc. (IOCR), a 
Class III rail carrier that operates over approximately 261.6 miles of 
rail line in Ohio, both of which are subsidiaries of RailAmerica, Inc., 
have filed a verified notice of exemption with respect to a proposed 
corporate restructuring, through which IOCR will merge into IORY, with 
IORY as the surviving entity. After the merger, IORY will remain a 
Class III rail carrier.
    The transaction, which was scheduled to be consummated on or 
shortly after May 1, 2005, is intended to generate greater efficiencies 
through such actions as a reduction of IORY/IOCR's overhead expenses 
and their car accounting costs.
    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). IORY and IOCR 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. Accordingly, the 
Board may not impose labor protective conditions here, because both of 
the carriers involved in this transaction are Class III rail 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. 34686, 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 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 http://www.stb.dot.gov.

    Decided: May 9, 2005.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 05-9739 Filed 5-17-05; 8:45 am]
BILLING CODE 4915-01-P