Capitol Bus Company; Pooling; Greyhound Lines, Inc.

DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[No. MC-F-20783]

Capitol Bus Company; Pooling; Greyhound Lines, Inc.

AGENCY: Surface Transportation Board.1

\1\ The ICC Termination Act of 1995, Pub. L. 104-88, 109 Stat.

803 (the Act), which was enacted on December 29, 1995, and took

effect on January 1, 1996, abolished the Interstate Commerce

Commission (ICC) and transferred certain functions and proceedings

to the Surface Transportation Board (Board). Section 204(b)(1) of

the Act provides, in general, that proceedings pending before the

ICC on the effective date of that legislation shall be decided under

the law in effect prior to January 1, 1996, insofar as they involve

functions retained by the Act. This notice relates to a proceeding

that was pending with the ICC prior to January 1, 1996, and to

functions that are subject to Board jurisdiction pursuant to 49

U.S.C. 14302. Therefore, this notice applies the law in effect prior

to the Act, and citations are to the former section of the statute,

49 U.S.C. 11342(a).

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ACTION: Notice of proposed revenue pooling application.

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SUMMARY: By application filed November 29, 1995, Capitol Bus Company

(Capitol), of Harrisburg, PA, and Greyhound Lines, Inc. (Greyhound), of

Dallas, TX, jointly request approval of a revenue pooling arrangement

under former 49 U.S.C. 11342(a) with respect to their motor passenger

transportation services between Syracuse, NY, and Harrisburg, PA, and

between Harrisburg and Washington, DC. Applicants already pool

transportation services on these routes, and under the proposal they

also seek to pool the earnings from these routes. Their stated

objective is to reduce excess bus capacity on the pooled routes and

cement the business relationship between them.

DATES: Comments on the proposed agreement may be filed with the Board

in the form of verified statements on or before March 1, 1996.

Applicants' rebuttal statements are due on or before March 21, 1996.

ADDRESSES: Send verified statements to: (1) Surface Transportation

Board, Office of the Secretary, Case Control Branch, Room 1324, 1201

Constitution Avenue, N.W., Washington, DC 20423 and (2) Applicants'

representatives: Dennis N. Barnes, Morgan, Lewis and Bockius, 1800 M

Street, N.W. (#600N), Washington, DC 20036-7060; and Fritz R. Kahn,

Suite 750 West, 1100 New York Avenue, N.W., Washington, DC 20005-3934.

FOR FURTHER INFORMATION CONTACT: James Llewellyn Brown, (202) 927-5303

or Beryl Gordon, (202) 927-5610. [TDD for the hearing impaired: (202)

927-5721.]

SUPPLEMENTARY INFORMATION: The Interstate Commerce Commission

previously approved an agreement allowing Capitol and Greyhound to pool

their services between Syracuse and Harrisburg and between Harrisburg

and Washington, DC. See Capitol Bus Company--Pooling--Greyhound Lines,

No. MC-F-19154 (Sub-No. 1) (ICC served Nov. 28, 1988). Under the

proposed pooling arrangement, Capitol and Greyhound now seek to pool

their revenues over these routes, as well.

Applicants state that, while their service pooling agreement has

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succeeded in permitting them to reduce redundant services, increase the

load factor, and increase revenues, the load factor remains

unacceptably low, causing an intolerable drain on their resources.

Assertedly, they feel compelled to operate the number of schedules they

operate to protect their respective market shares, notwithstanding that

the market is being overserved.

Applicants state that revenue pooling will allow them to achieve

greater economies of operation, permitting each to manage better its

pricing structures and capital improvements. Each carrier would share

financially in the vicissitudes of the pooled-route operations of the

other, creating an otherwise unattainable degree of financial

stability. They assert that the agreement is in the public interest.

With the additional measure of financial stability, they maintain that

they will be able to improve service to the traveling public.

They argue that there are overwhelming intermodal competitive

pressures that are available to protect the public. Ample rail

passenger service is available on Amtrak between these points via New

York City, NY, or Philadelphia, PA. The major points served by these

routes also receive frequent daily air service from United Air Lines

and USAir. Several interstate highways connect these points, as well.

Copies of the pooling application may be obtained free of charge by

contacting petitioners' representatives. In the alternative, the

pooling application may be inspected at the offices of the Surface

Transportation Board, Room 1221, during normal business hours. A copy

of this notice will be served on the Department of Justice, Antitrust

Division. [Assistance for the hearing impaired is available through TDD

service on (202) 927-5721.]

Decided: January 11, 1996.

By the Board, Chairman Morgan, Vice Chairman Simmons, and Board

Member Owen.

Vernon A. Williams,

Secretary.

[FR Doc. 96-1915 Filed 1-30-96; 8:45 am]

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