Notice2026-18121
Henry Posner, III-Control Exemption-Morristown & Erie Railway, Inc.
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 4, 2026
Issuing agencies
Surface Transportation Board
Full Text
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<title>Federal Register, Volume 91 Issue 171 (Friday, September 4, 2026)</title>
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[Federal Register Volume 91, Number 171 (Friday, September 4, 2026)]
[Notices]
[Page 56939]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18121]
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SURFACE TRANSPORTATION BOARD
[Docket No. FD 36948]
Henry Posner, III--Control Exemption--Morristown & Erie Railway,
Inc.
Henry Posner, III (Posner), a noncarrier, has filed a verified
notice of exemption under 49 CFR 1180.2(d)(2) for authority to acquire
27.75% of the stock in Morristown & Erie Railway, Inc. (M&E), a Class
III rail carrier operating in New Jersey.\1\ Posner indirectly controls
Iowa Interstate Railroad, LLC (Iowa Interstate), a Class II rail
carrier,\2\ through his control of RDC Domestic Holdings, (RDC), a
noncarrier holding company. According to the verified notice, Iowa
Interstate operates in Iowa and Illinois.
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\1\ Posner concurrently filed with the verified notice of
exemption a motion to dismiss the notice of exemption. The motion to
dismiss and the motion for protective order will be addressed in
separate decisions.
\2\ See Iowa Interstate Reply 2, March 1, 2024, Canadian Nat'l
Ry.--Control--Iowa N. Ry., FD 36744.
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According to the verified notice, as supplemented,\3\ Posner has
entered into a Stock Purchase Agreement and a Shareholders' Agreement
whereby a new investor group, which includes Posner, will purchase 50%
of the stock in M&E. Following the transaction, M&E's incumbent
ownership group will retain the remaining 50% of the stock.
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\3\ On August 20, 2026, Posner filed a supplement to the
verified notice, a motion for protective order, and a highly
confidential version of a Stock Purchase Agreement submitted under
seal. Accordingly, the date of the supplement, August 20, 2026, is
deemed the filing date of the verified notice.
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Posner has certified that: (1) M&E does not connect with Iowa
Interstate; (2) the proposed transaction is not part of a series of
anticipated transactions that would connect M&E and Iowa Interstate;
and (3) the transaction does not involve a Class I rail carrier. The
proposed transaction is therefore exempt from the prior approval
requirements of 49 U.S.C. 11323 pursuant to 49 CFR 1180.2(d)(2).
The earliest this transaction may be consummated is September 19,
2026, the effective date of the exemption (30 days after the verified
notice is deemed to have been filed).
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. Because the transaction
involves the control of one Class II and one or more Class III rail
carriers, the transaction is subject to the labor protection
requirements of 49 U.S.C. 11326(b) and Wisconsin Central Ltd.--
Acquisition Exemption--Lines of Union Pacific Railroad, 2 S.T.B. 218
(1997).
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 effectiveness of the
exemption. Petitions to stay must be filed no later than September 12,
2026 (at least seven days before the exemption becomes effective).
All pleadings, referring to Docket No. FD 36948, must be filed with
the Surface Transportation Board either via e-filing on the Board's
website or in writing addressed to 395 E Street SW, Washington, DC
20423-0001. In addition, a copy of each pleading must be served on
Posner's representative, Justin J. Marks, Clark Hill PLC, 601 13th
Street NW, Suite 600, Washington, DC 20005.
According to Posner, this action is categorically excluded from
environmental review under 49 CFR 1105.6(c) and from historic
preservation reporting requirements under 49 CFR 1105.8(b).
Board decisions and notices are available at <a href="http://www.stb.gov">www.stb.gov</a>.
Decided: September 1, 2026.
By the Board, Anika S. Cooper, Chief Counsel, Office of Chief
Counsel.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2026-18121 Filed 9-3-26; 8:45 am]
BILLING CODE 4915-01-P
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</html>Indexed from Federal Register on September 4, 2026.
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