Notice2021-17130
John J. McCarthy-Acquisition of Control-Trombly Motor Coach Service, Inc.
Primary source
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Published
August 11, 2021
Effective
September 28, 2021
Issuing agencies
Surface Transportation Board
Abstract
John J. McCarthy (Applicant), a noncarrier, has filed an application for authority after-the-fact to acquire control of Trombly Motor Coach Service Inc. (Trombly) from Michael J. Trombly (Seller). The Board is tentatively approving and granting after-the-fact authorization of the transaction, and, if no opposing comments are timely filed, this notice will be the final Board action.
Full Text
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<title>Federal Register, Volume 86 Issue 152 (Wednesday, August 11, 2021)</title>
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[Federal Register Volume 86, Number 152 (Wednesday, August 11, 2021)]
[Notices]
[Pages 44128-44129]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17130]
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SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21094]
John J. McCarthy--Acquisition of Control--Trombly Motor Coach
Service, Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving and authorizing finance
transaction.
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SUMMARY: John J. McCarthy (Applicant), a noncarrier, has filed an
application for authority after-the-fact to acquire control of Trombly
Motor Coach Service Inc. (Trombly) from Michael J. Trombly (Seller).
The Board is tentatively approving and granting after-the-fact
authorization of the transaction, and, if no opposing comments are
timely filed, this notice will be the final Board action.
DATES: Comments may be filed by September 27, 2021. If any comments are
filed, Applicant may file a reply by October 11, 2021. If no opposing
comments are filed by September 27, 2021, this notice shall be
effective on September 28, 2021.
ADDRESSES: Comments may be filed with the Board via e-filing on the
Board's website. In addition, one copy of any comments must be sent to
Applicant's representative: Andrew K. Light, Scopelitis, Garvin, Light,
Hanson & Feary, P.C., 10 W Market Street, Suite 1400, Indianapolis, IN
46204.
FOR FURTHER INFORMATION CONTACT: Amy Ziehm at (202) 245-0391.
Assistance for the hearing impaired is available through the Federal
Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION: According to the application,\1\ Applicant
is an individual who directly owned and controlled another passenger
motor carrier, NRT Bus, Inc. (NRT), prior to the closing of the
transaction. (Appl. 2.) NRT held and continues to hold interstate
passenger motor carrier authority in the United States through the
Federal Motor Carrier Safety Administration (FMCSA). (Id.) Under the
transaction, which was completed on April 13, 2013, Seller transferred
to Applicant all issued and outstanding equity shares of Trombly.\2\
(Appl. 1, 3.)
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\1\ The application initially was filed on May 4, 2021. On June
3, 2021, the Board issued a decision requiring Applicant to submit
additional information in support of the application. Applicant
filed an unverified supplement to its application on June 30, 2021,
and a verification of that supplement pursuant to 49 CFR 1182.2(c)
on July 12, 2021. Therefore, for purposes of calculating the
procedural schedule and statutory deadlines, the filing date of the
application is July 12, 2021. See 49 CFR 1182.4(a).
\2\ Applicant states he did not seek approval of the transaction
before it was completed because neither he nor Seller were aware
that the transaction was subject to the Board's jurisdiction. (Appl.
1.) Applicant now requests that the Board approve the transaction
after-the-fact. (Suppl. Appl. 1.) The Board has permitted parties to
obtain after-the-fact licensing authority for a transaction when the
failure to seek approval was without malice and by mistake. See
Winthrop Sargent--Aquis. of Control--Plymouth & Brockton St. Ry.,
MCF 21089, slip op. at 2 (STB served Jan. 3, 2020) (citing Allied
Indus. Dev. Corp.--Pet. for Declaratory Order, FD 35477, slip. op.
at 6 (STB served Sept. 17, 2015), and Gen. Ry.--Exemption for
Acquis. of R.R. Line--in Osceola & Dickinson Cntys., Iowa, FD 34867,
slip op. at 5 (STB served June 15, 2007)).
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Applicant provides the following description of the two carriers:
<bullet> Trombly primarily provides non-regulated student school
bus transportation services in the Commonwealth of Massachusetts--in
the counties of Essex and Middlesex--and occasionally provides charter
services when its buses are not in use for school activities. At the
time of the transaction, it utilized a fleet of approximately 150
passenger vehicles, consisting of school buses and mini-buses, and it
used approximately 160 drivers. Currently, Trombly utilizes a fleet of
approximately 266 passenger vehicles, consisting of school buses, mini-
buses, and passenger vans. It currently uses approximately 142 drivers.
(Suppl. Appl. 3.)
<bullet> NRT primarily provides non-regulated student school bus
transportation services in the Commonwealth of Massachusetts--in the
counties of Essex, Middlesex, Norfolk, Suffolk, and Worcester--and
occasionally provides charter services when its buses are not in use
for school activities. At the time of the transaction, it utilized a
fleet of approximately 1,350 passenger vehicles, consisting of school
buses, mini-buses, and passenger vans, and it used approximately 1,400
drivers. Currently, NRT utilizes a fleet of approximately 1,490
passenger vehicles, consisting of school buses, mini-buses, and vans;
and it uses approximately 1,221 drivers. (Id. at 2.) \3\
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\3\ Additional information about these motor carriers, including
U.S. Department of Transportation (USDOT) numbers, motor carrier
numbers, and USDOT safety fitness ratings, can be found in the
application. (See Appl. 2-3; id. at Ex. A.)
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As a result of the transaction, Applicant owned and controlled two
regulated interstate passenger motor carriers that operate in the same
territory. (Id. at 2-3, 5-6.)
Applicant claims that the transaction has not had, and will not
have, a material, adverse impact on the adequacy of transportation
services available to the public. (Id. at 7.) Applicant states that the
services provided by Trombly prior to the transaction have been
provided by Trombly under the same name since the transaction, just
under different ownership, and will continue to be provided by Trombly
going forward. (Appl. 4.)
Under 49 U.S.C. 14303(b), the Board must approve and authorize a
transaction that it finds consistent with the public interest, taking
into consideration at least: (1) The effect of the proposed transaction
on the adequacy of transportation to the public, (2) total fixed
charges that result, and (3) the interest of affected carrier
employees. Applicant has submitted the information required by 49 CFR
1182.2, including information to demonstrate that the transaction is
consistent with the public interest under 49 U.S.C. 14303(b), see 49
CFR 1182.2(a)(7), and a jurisdictional statement under 49 U.S.C.
14303(g) that the aggregate gross operating revenues of the involved
carriers exceeded $2 million during the 12-month period immediately
preceding the filing of the application, see 49 CFR 1182.2(a)(5).
Applicant asserts that the transportation services available to the
public will be maintained and improved as operating efficiencies are
realized as a result of the transaction. (Appl. 4.) Since the
transaction, Trombly has continued to provide transportation services
to the public under the same name. (Id.) Applicant represents that
Trombly has continued to operate under the control of Applicant, who is
``an individual thoroughly experienced in school bus transportation
operations.'' (Id.) Applicant also represents that there has been no
reduction in the charter
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services provided by Trombly or NRT. (Suppl. Appl. 7.) He also states
that the transaction resulted in improved operating efficiencies and
cost savings derived from economies of scale for both Trombly and NRT.
(Id.) Specifically, the transaction has allowed both NRT and Trombly to
take advantage of increased purchasing power when acquiring new
equipment, parts, fuel, and insurance. (Id.) These operating
efficiencies and cost savings have helped the financial strength of
both NRT and Trombly, allowing them to effectively compete in their
respective geographic markets. (Id.)
Applicant states that fixed charges are not contemplated to have a
material impact on the transaction. (Appl. 5.)
Moreover, Applicant asserts that the transaction did not have a
substantial impact on employees or labor conditions because the
operations of both Trombly and NRT have continued ``substantially
unchanged.'' (Suppl. Appl. 7.) The transaction did result in a limited
number of duplicative back-office positions, and those positions were
phased out. (Appl. 5.) According to Applicant, any reduction in the
number of drivers used by either company since the transaction is not
the result of layoffs or reduction in the workforce at NRT or Trombly
but rather the result of their inability ``to find, hire and retain
additional qualified drivers,'' in part due to the COVID-19 pandemic.
(Suppl. Appl. 8.)
The Board finds that the acquisition as described in the
application, as supplemented, is consistent with the public interest
and should be tentatively approved and authorized after-the-fact. If
any opposing comments are timely filed, these findings will be deemed
vacated, and, if a final decision cannot be made on the record as
developed, a procedural schedule will be adopted to reconsider the
application. See 49 CFR 1182.6. If no opposing comments are filed by
the expiration of the comment period, this notice will take effect
automatically and will be the final Board action.
This action is categorically excluded from environmental review
under 49 CFR 1105.6(c).
Board decisions and notices are available at <a href="http://www.stb.gov">www.stb.gov</a>.
It is ordered:
1. The transaction is approved and authorized after-the-fact,
subject to the filing of opposing comments.
2. If opposing comments are timely filed, the findings made in this
notice will be deemed vacated.
3. This notice will be effective September 28, 2021, unless
opposing comments are filed by September 27, 2021. If any comments are
filed, Applicant may file a reply by October 11, 2021.
4. A copy of this notice will be served on: (1) The U.S. Department
of Transportation, Federal Motor Carrier Safety Administration, 1200
New Jersey Avenue SE, Washington, DC 20590; (2) the U.S. Department of
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW,
Washington, DC 20530; and (3) the U.S. Department of Transportation,
Office of General Counsel, 1200 New Jersey Avenue SE, Washington, DC
20590.
Decided: August 5, 2021.
By the Board, Board Members Begeman, Fuchs, Oberman, Primus, and
Schultz.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2021-17130 Filed 8-10-21; 8:45 am]
BILLING CODE 4915-01-P
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</html>Indexed from Federal Register on August 11, 2021.
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