Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Notices 38689

1 Global incorporated SAC, a noncarrier, to

acquire the assets of Sunnyland Stages, Inc. (SSI),

a Missouri corporation and motor passenger carrier.

2 Immediately upon its creation, Global acquired

the shares of two regulated motor passenger

carriers—one with interstate authority and one with

intrastate authority. Because the initial acquisition

of the shares of a single interstate carrier did not

require Board authorization, Global assumed that

the subsequent stock acquisition of additional

interstate carriers required no Federal approval.

3Bortner is a Pennsylvania corporation. It holds

federally issued operating authority in MC–111191

and intrastate operating authority in Ohio and

Pennsylvania. Bortner provides charter and special

operations between points in the United States

(including Alaska and Hawaii).

4C&D is a Tennessee corporation. It holds

federally issued operating authority in MC–191957.

C&D provides charter and special operations

between points in the United States (except Alaska

and Hawaii).

5Comet is a Florida corporation. It holds federally

issued operating authority in MC–231149. Comet

provides charter and special operations between

points in the United States (except Hawaii).

6Connolly’s is a Pennsylvania corporation. It

holds federally issued operating authority in MC–

176826 and intrastate operating authority in

Pennsylvania. Connolly’s provides charter and

special operations between points in the United

States.

7C&W Tours is a Tennessee corporation. It holds

federally issued operating authority in MC–263068.

C&W provides charter and special operations

between points in the United States.

8Franciscan is a California corporation. It holds

federally issued operating authority in MC–140403

and intrastate operating authority in California.

Franciscan provides charter and special operations

between points in the United States (including

Alaska, but excluding Hawaii).

9 George Ku is a Pennsylvania corporation. It

holds federally issued operating authority as a

common and contract carrier in MC–31422 and

intrastate operating authority in Ohio and

Pennsylvania. George Ku provides charter and

special operations between points in the United

States (except Hawaii).

10 GTT is a Delaware corporation. It holds

federally issued operating authority as a contract

carrier in MC–235493 and intrastate operating

authority in Florida.

11 GTT of FL, a wholly owned subsidiary of GTT,

is a corporation that holds no interstate authority

but is licensed by Dade County, FL, for intrastate

passenger service. The fact that these operations

appear to be entirely within the State of Florida is

not determinative of Board jurisdiction. It is well

settled that service within a single state may be

interstate commerce and subject to our jurisdiction

when there is a through ticket or some other

arrangement between the involved carriers for

through transportation to or from a point in another

state. Also, if the participants to a finance

transaction are motor carriers of passengers, subject

to Board jurisdiction under 49 U.S.C. 13501, then

under 49 U.S.C. 14303(f), they are subject to our

exclusive and plenary jurisdiction in all matters

relating to their consolidation, merger, and

acquisition of control, and this extends to intrastate

operating rights. See Colorado Mountain Express,

Inc. and Airport Shuttle Colorado, Inc., d/b/a Aspen

Limousine Service, Inc.—Consolidation and

Merger— Colorado Mountain Express, STB Docket

No. MC-F–20902 (STB served Feb. 28, 1997).

12 JJ Kelly is a Florida corporation. It holds

federally issued operating authority in MC–172787.

It provides charter and special operations between

points in the United States (except Alaska and

Hawaii).

13Palmeria is a Pennsylvania corporation. It holds

federally issued operating authority in MC–167547

and intrastate operating authority in New Jersey and

Pennsylvania. It provides passenger service as a

contract carrier between points in Tennessee and

Kentucky, and charter and special operations

between points in the United States (except Alaska

and Hawaii).

said Circular Letters to General Agents

and Operating Letters to General Agents

not heretofore terminated.

FOR FURTHER INFORMATION CONTACT: P.

Jean Barile, Office of Ship Operations,

Maritime Administration, 400 Seventh

Street, S.W., Washington, D.C. 20590,

telephone (202) 366–5776, facsimile

(202) 366–3954.

SUPPLEMENTARY INFORMATION: CLs and

OLs were identical letters sent to all, or

multiple, General Agents and relating to

the operation of Government vessels by

private companies under General

Agency Agreements. During the course

of reviewing files for outstanding CLs

and OLs, MARAD found that all had

become obsolete in the context of

current vessel operations procedures

and arrangements with General Agents.

MARAD has determined that none of

the Circular Letters to General Agents

and none of the Operating Letters to

General Agents presently outstanding,

and not heretofore revoked, have

application to current ship operations

functions of the Maritime

Administration, or the National

Shipping Authority, and they are hereby

revoked.

By Order of the Maritime Administrator.

Dated: July 14, 1998.

Joel C. Richard,

Secretary.

[FR Doc. 98–19116 Filed 7–16–98; 8:45 am]

BILLING CODE 4910–81–P

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. MC–F–20924]

Global Passenger Services, L.L.C.—

Control—Bortner Bus Company, et al.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving

finance transactions.

SUMMARY: Global Passenger Services,

L.L.C. (Global or applicant), a

noncarrier, filed an application under

49 U.S.C. 14303 to acquire control of 20

motor passenger carriers, consisting of

15 existing subsidiaries—Bortner Bus

Company (Bortner), C&D

Transportation, Inc. (C&D), Comet Bus

Lines Corporation (Comet), Connolly’s

Limousine Service, Inc. (Connolly’s),

Country & Western Tours, Inc. (C&W

Tours), Franciscan Lines, Inc.

(Franciscan), George Ku, Inc. (George

Ku), Golden Touch Transportation, Inc.

(GTT), Golden Touch Limousine of

Florida, Inc. (GTT of FL), JJ Kelly

Charter Bus Service Co. (JJ Kelly), The

Palmeri Motor Coach Corporation

(Palmeri), PROTRAV Services, Inc., d/b/

a PROTRAV Charter Coach Services

(PROTRAV Charter), PROTRAV

Services, Inc. (PROTRAV Services),

Santa Barbara Transportation

Corporation (SBTC), and Tiger Air

Express, Inc. (Tiger)—and 5 new target

companies, Hemphill Brothers Coach

Co., Inc. (Hemphill), Hansruedi and

Marcia Muggli, d/b/a The

Transportation Company (TTC), Pacific

Explorer Lines, Inc. (Pacific), Stardust

Executive Transportation, Inc.

(Stardust), and Sunnyland Acquisition

Corp. (SAC).1 Persons wishing to oppose

the application must follow the rules

under 49 CFR part 1182, subpart B. The

Board has tentatively approved the

transaction, and, if no opposing

comments are timely filed, this notice

will be the final Board action.

DATES: Comments are due by August 31,

1998. Applicant may reply by

September 21, 1998. If no comments are

received by August 31, 1998, this notice

is effective on that date.

ADDRESSES: Send an original and 10

copies of comments referring to STB

Docket No. MC–F–20924 to: Surface

Transportation Board, Office of the

Secretary, Case Control Unit, 1925 K

Street, N.W., Washington, DC 20423–

0001. In addition, send one copy of

comments to applicant’s representative:

Mark J. Andrews, Barnes & Thornburg,

1401 Eye Street, N.W., Suite 500,

Washington, DC 20005.

FOR FURTHER INFORMATION CONTACT:

Beryl Gordon, (202) 565–1600. [TDD for

the hearing impaired: (202) 565–1695.]

SUPPLEMENTARY INFORMATION: Global, a

Delaware limited liability company, was

created on May 15, 1997. According to

Global, it was unaware of the

requirements of 49 U.S.C. 14303 prior to

January 1998.2 After reviewing its

records, Global determined that

interstate and/or intrastate passenger

authority had been issued to 15 entities

out of the 30 corporations that it directly

or indirectly controls at this time. Upon

discovering this unresolved control

issue, Global filed an application to

acquire control, through indirect stock

ownership, of the existing

subsidiaries’Bortner,3 C&D,4 Comet,5

Connolly’s,6 C&W Tours, 7 Franciscan, 8

George Ku, 9 GTT, 10 GTT of FL, 11 JJ

Kelly, 12 Palmeri, 13 PROTRAV
38690 Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Notices

14PROTRAV Charter is a California corporation.

It holds federally issued operating authority in MC–

227448 and intrastate operating authority in

California. It provides charter and special

operations between points in the United States

(except Alaska and Hawaii).

15PROTRAV Services, a wholly owned subsidiary

of PROTRAV Charter, is a corporation that holds no

interstate authority but is licensed by Nevada for

intrastate passenger service. For a discussion of the

effect of intrastate operating authority, see supra

note 11.

16SBTC is a California corporation. It holds

federally issued operating authority in MC–198757

and intrastate operating authority in California.

SBTC engages primarily in school transportation

activities, which are not regulated.

17Tiger is a Missouri corporation. It holds

federally issued operating authority as a common

and contract carrier in MC–217893 and intrastate

operating authority in Indiana and Missouri. It

provides passenger service over certain regular

routes in Arkansas, Missouri, and Oklahoma, and

charter and special operations between points in

the United States (except Alaska and Hawaii).

18Hemphill is a Tennessee corporation. It holds

federally issued operating authority in MC–336635.

It provides charter and special operations between

points in the United States.

19TTC is a California corporation. It holds

federally issued operating authority in MC–182176

and intrastate operating authority in California. It

provides charter and special operations, beginning

and ending at San Francisco and Mateo Counties,

CA, and extending to points in Oregon,

Washington, Nevada, Arizona, Utah, and New

Mexico.

20Pacific is a California corporation. It holds

federally issued operating authority in MC–251473

and intrastate operating authority in California. It

provides charter and special operations between

points in the United States (except Alaska and

Hawaii).

21Stardust is a California corporation. It holds

federally issued operating authority in MC–304399

and intrastate operating authority in California. It

provides charter and special operations between

points in the United States.

22SAC is a Delaware corporation. It is the

transferee of SSI’s federally issued operating

authority in MC–52479 and intrastate operating

authority in Missouri. It provides passenger service

over certain regular routes in Arkansas and

Missouri, and special and charter operations

between points in the United States (except

Hawaii). Because the acquisition of SSI has been

structured as an asset transaction, Global reports

that it has trusteed (presumably placed in trust)

SAC, which will become a carrier upon its

acquisition of SSI’s assets.

23 Global seeks nunc pro tunc approval of the

control of the 15 existing subsidiaries that it already

controls. While we are granting our tentative

approval, the need for retroactive effect has been

demonstrated. Global evidently recognizes that it

should have sought our approval sooner but, under

the circumstances, the Board does not intend to

pursue enforcement actions against Global for the

previously unauthorized common control.

Charter, 14 PROTRAV Services, 15

SBTC, 16 and Tiger 17 and of the target

companies, Hemphill, 18 TTC, 19

Pacific, 20 Stardust, 21 and SAC. 22

According to Global, the stock of the

target companies has been placed in

voting trusts pending disposition of this

proceeding.

Global submits that the instant

transactions have not reduced and will

not reduce competition in the bus

industry or competitive options

available to the traveling public. It also

submits that it has no intention of

changing the operations of any of the

existing subsidiaries or target companies

as a result of the approvals sought here.

Global asserts that each of the

subsidiaries and target companies faces

substantial competition from other bus

companies and transportation modes. It

estimates that, at the end of 1997, its

regular-route, charter and special

operations accounted for approximately

0.54% of the relevant market for such

services in the United States. It believes

that its control of the target companies

will increase that market share by only

one-tenth of a percentage point.

Global also submits that its control of

the subsidiaries and target companies

has produced and will produce

substantial benefits, including interest

cost savings from restructuring of debt

and reduced operating costs from

Global’s enhanced volume purchasing

power. Specifically, Global claims that

the carriers it acquires benefit from the

lower insurance premiums it has

negotiated and from volume discounts

for equipment and fuel. Global also

asserts that it improves the efficiency of

all acquired carriers, while maintaining

responsiveness to local conditions, by

providing centralized services to

support decentralized operational and

marketing managers. Centralized

support services are provided in such

areas as legal affairs, accounting,

purchasing, safety management,

equipment maintenance, driver training,

human resources, and environmental

compliance. In addition, Global states

that it facilitates vehicle sharing

arrangements between acquired entities,

so as to ensure maximum utilization

and efficient operation of equipment.

According to Global, the involved

transactions offer ongoing benefits for

employees of acquired carriers not only

because of the efficiencies described

above, but also because Global’s policy

is to honor all collective bargaining

agreements of acquired carriers.

Global certifies that: (1) none of the

involved subsidiaries or target

companies has been assigned a safety

rating of less than satisfactory by the

U.S. Department of Transportation; (2)

all involved carriers maintain sufficient

liability insurance; (3) none of the

involved carriers has been or is either

domiciled in Mexico or owned or

controlled by persons of that country;

and (4) approval of the transactions will

not significantly affect either the quality

of the human environment or the

conservation of energy resources.

Additional information may be obtained

from applicant’s representative.

Under 49 U.S.C. 14303(b), we must

approve and authorize a transaction we

find consistent with the public interest,

taking into consideration at least: (1)

The effect of the transaction on the

adequacy of transportation to the public;

(2) the total fixed charges that result;

and (3) the interest of affected carrier

employees. The prior consummation of

the transactions involving the 15

existing subsidiaries does not bar

approval of the application under

section 14303 if the evidence establishes

that the transaction would be consistent

with the public interest in other

respects, and for the future.23 Approval

is granted in such circumstances when

the record contains strong affirmative

evidence of public benefits to be derived

from the resulting control, warranting

the view that the public should not be

penalized by being deprived of those

benefits. Moreover, in this case, the

record shows an absence of intent to

flout the law or of a deliberate or

planned violation. See Kenosha Auto

Transport Corp.—Control, 85 M.C.C.

731, 736 (1960).

On the basis of the application, we

find that the proposed acquisition of

control is consistent with the public

interest and should be authorized. If

opposing comments are timely filed,

this finding will be deemed vacated and

a procedural schedule will be adopted

to reconsider the application. If no

opposing comments are filed by the

expiration of the comment period, this

decision will take effect automatically

and will be the final Board action.

This decision will not significantly

affect either the quality of the human

environment or the conservation of

energy resources.

It is ordered:

1. Global’s control of the existing

subsidiaries and the target companies is

approved and authorized, subject to the

filing of opposing comments.

2. If timely opposing comments are

filed, the findings made in this decision

will be deemed vacated.

3. This decision will be effective on

August 31, 1998, unless timely opposing

comments are filed.

4. A copy of this notice will be served

on: (1) the U.S. Department of

Transportation, Office of Motor CarriersHIA 30, 400 Virginia Avenue, SW, Suite

600, Washington, DC 20024; and (2) the

U.S. Department of Justice, Antitrust

Division, 10th Street & Pennsylvania

Avenue, N.W., Washington, DC 20530.

Decided: July 9, 1998.
Federal Register / Vol. 63, No. 137 / Friday, July 17, 1998 / Notices 38691

1On July 6, 1998, UP filed a petition for

exemption in STB Finance Docket No. 33631 (SubNo. 1), Union Pacific Railroad Company—Trackage

Rights Exemption—The Burlington Northern and

Santa Fe Railway Company, wherein UP requests

that the Board permit the overhead trackage rights

arrangement described in the present proceeding to

expire on July 31, 1998. That petition will be

addressed by the Board in a separate decision.

1The Board will grant a stay if an informed

decision on environmental issues (whether raised

by a party or by the Board’s Section of

Environmental Analysis in its independent

investigation) cannot be made before the

exemption’s effective date. See Exemption of Outof-Service Rail Lines, 5 I.C.C.2d 377 (1989). Any

request for a stay should be filed as soon as possible

so that the Board may take appropriate action before

the exemption’s effective date.

2Each offer of financial assistance must be

accompanied by the filing fee, which currently is

set at $1000. See 49 CFR 1002.2(f)(25).

By the Board, Chairman Morgan and Vice

Chairman Owen.

Vernon A. Williams,

Secretary.

[FR Doc. 98–19128 Filed 7–16–98; 8:45 am]

BILLING CODE 4915–00–P

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Finance Docket No. 33631]

Union Pacific Railroad Company;

Trackage Rights Exemption; The

Burlington Northern and Santa Fe

Railway Company

The Burlington Northern and Santa Fe

Railway Company (BNSF) has agreed to

grant overhead trackage rights to Union

Pacific Railroad Company (UP) from

milepost 345.6, at Tower 55–UPRRX

near Fort Worth, to milepost 217.3, near

Temple, a distance of 128.3 miles in the

State of Texas.1

The transaction was scheduled to be

consummated on July 13, 1998.

The purpose of the trackage rights is

to permit UP to use BNSF trackage

while UP’s trackage is out of service for

maintenance.

As a condition to this exemption, any

employees affected by the trackage

rights will be protected by the

conditions imposed in Norfolk and

Western Ry. Co.—Trackage Rights—BN,

354 I.C.C. 605 (1978), as modified in

Mendocino Coast Ry., Inc.—Lease and

Operate, 360 I.C.C. 653 (1980).

This notice is filed under 49 CFR

1180.2(d)(7). If it 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. 33631, 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 Joseph D.

Anthofer, Esq., 1416 Dodge Street, No.

830, Omaha, NE 68179.

Board decisions and notices are

available on our website at

‘‘WWW.STB.DOT.GOV.’’

Decided: July 13, 1998.

By the Board, Joseph H. Dettmar, Acting

Director, Office of Proceedings.

Vernon A. Williams,

Secretary.

[FR Doc. 98–19129 Filed 7–16–98; 8:45 am]

BILLING CODE 4915–00–P

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Docket No. AB–57 (Sub–No. 45X)]

Soo Line Railroad Company;

Abandonment Exemption; in Dakota

County, MN

Soo Line Railroad Company (Soo) has

filed a notice of exemption under 49

CFR Part 1152 Subpart F—Exempt

Abandonments to abandon an

approximately .62+/-mile line of its

railroad on the Farmington Minnesota

Line between milepost 143.73+/-to

milepost 144.35+/-in Farmington,

Dakota County, MN. The line traverses

United States Postal Service Zip Code

55024.

Soo has certified that: (1) No local

traffic has moved over the line for at

least 2 years; (2) any overhead traffic

can be rerouted over other lines; (3) no

formal complaint filed by a user of rail

service on the line (or by a state or local

government entity acting on behalf of

such user) regarding cessation of service

over the line either is pending with the

Surface Transportation Board (Board) or

with any U.S. District Court or has been

decided in favor of complainant within

the 2-year period; and (4) the

requirements at 49 CFR 1105.7

(environmental reports), 49 CFR 1105.8

(historic reports), 49 CFR 1105.11

(transmittal letter), 49 CFR 1105.12

(newspaper publication), and 49 CFR

1152.50(d)(1) (notice to governmental

agencies) have been met.

As a condition to this exemption, any

employee adversely affected by the

abandonment shall be protected under

Oregon Short Line R. Co.—

Abandonment—Goshen, I.C.C. 91

(1979). To address whether this

condition adequately protects affected

employees, a petition for partial

revocation under 49 U.S.C. 10502(d)

must be filed. Provided no formal

expression of intent to file an offer of

financial assistance (OFA) has been

received, this exemption will be

effective on August 16, 1998, unless

stayed pending reconsideration.

Petitions to stay that do not involve

environmental issues,1 formal

expressions of intent to file an OFA

under 49 CFR 1152.27(c)(2),2 and trail

use/rail banking requests under 49 CFR

1152.29 must be filed by July 27, 1998.

Petitions to reopen or requests for

public use conditions under 49 CFR

1152.28 must be filed by August 6,

1998, with: Surface Transportation

Board, Office of the Secretary, Case

Control Unit, 1925 K Street, N.W.,

Washington, DC 20423.

A copy of any petition filed with the

Board should be sent to applicant’s

representative: Larry D. Starns, Esq.,

Leonard, Street and Deinard

Professional Association, 150 South

Fifth Street, Suite 2300, Minneapolis,

MN 55402.

If the verified notice contains false or

misleading information, the exemption

is void ab initio.

Soo has filed an environmental report

which addresses the abandonment’s

effects, if any, on the environment and

historic resources. The Section of

Environmental Analysis (SEA) will

issue an environmental assessment (EA)

by July 22, 1998. Interested persons may

obtain a copy of the EA by writing to

SEA (Room 500, Surface Transportation

Board, Washington, DC 20423) or by

calling SEA, at (202) 565–1545.

Comments on environmental and

historic preservation matters must be

filed within 15 days after the EA

becomes available to the public.

Environmental, historic preservation,

public use, or trail use/rail banking

conditions will be imposed, where

appropriate, in a subsequent decision.

Pursuant to the provisions of 49 CFR

1152.29(e)(2), Soo shall file a notice of

consummation with the Board to signify

that it has exercised the authority

granted and fully abandoned the line. If

consummation has not been effected by

Soo’s filing of a notice of consummation

by July 17, 1999, and there are no legal

or regulatory barriers to consummation,

the authority to abandon will

automatically expire.

Board decisions and notices are

available on our website at

‘‘WWW.STB.DOT.GOV.’’

Decided: July 13, 1998.