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Notice2026-18121

Henry Posner, III-Control Exemption-Morristown & Erie Railway, Inc.

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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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Indexed from Federal Register on September 4, 2026.

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