[Federal Register Volume 62, Number 241 (Tuesday, December 16, 1997)]
[Notices]
[Page 65848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32777]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board
[STB Finance Docket No. 33413]


Trimax Holdings, Inc.--Corporate Family Transaction Exemption--
Allegheny Valley Railroad Company and Southwest Pennsylvania Railroad 
Company

    Trimax Holdings, Inc. (TMH), a noncarrier holding company, has 
filed a verified notice of exemption for the acquisition of control 
through stock ownership of the Allegheny Valley Railroad Company (AVR) 
and the Southwest Pennsylvania Railroad Company (SWP).<SUP>1</SUP> TMH 
is wholly owned and controlled by Russell A. Peterson (Peterson), a 
noncarrier individual. Prior to the transaction covered by the 
exemption, AVR and SWP were commonly controlled through stock ownership 
by Peterson, Philip C. Larson (P. Larson) and Dennis E. Larson (D. 
Larson), also noncarrier individuals.<SUP>2</SUP> TMH has acquired all 
of the outstanding stock of AVR that had previously been owned by P. 
Larson and D. Larson.<SUP>3</SUP> Following the issuance of stock to 
TMH by SWP's board of directors that is as anticipated to occur in the 
near future, TMH will own 92.69% of the stock of SWP.<SUP>4</SUP>
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    \1\ AVR and SWP are Class III common carriers by rail operating 
in the State of Pennsylvania.
    \2\ In addition, Peterson, P. Larson, and D. Larson commonly 
control the Camp Chase Industrial Railroad Corporation (CCIR), a 
Class III common carrier operating in the State of Ohio. No changes 
in the ownership of CCIR are planned at this time.
    \3\ The stock of AVR is currently 50% owned by Peterson and 50% 
owned by TMH.
    \4\ At that time, TMH would own 92.69% of the stock of SWP, 
Peterson would own 3.67%, and P. Larson and D. Larson would each own 
1.82%.
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    The transaction was to be consummated on or after the December 8, 
1997 effective date of the exemption. TMH's acquisition of control of 
AVR and SWP is intended to create operating and management efficiencies 
for these 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 state that the transaction will not result in 
changes in service levels, 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 the 
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 reopen the proceeding to 
revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time. 
The filing of a petition to reopen will not automatically stay the 
transaction.
    An original and 10 copies of all pleadings, referring to STB 
Finance Docket No. 33413, must be filed with the Surface Transportation 
Board, Office of the Secretary, Case Control Unit, 1925 K Street, N.W., 
Washington, DC 20423-0001. In addition, a copy of each pleading must be 
served on Kevin M. Sheys, Esq., Oppenheimer Wolff & Donnelly, 1020 
Nineteenth Street, N.W., Suite 400, Washington, DC 20036.

    Decided: December 9, 1997.

    By the Board, David M. Konschnik, Director, Office of 
Proceedings.
Vernon A. Williams,
Secretary.
[FR Doc. 97-32777 Filed 12-15-97; 8:45 am]
BILLING CODE 4915-00-P