r. 0, H. Pabst, Jr., Vloe President the Philadelphia, Baltimore and ashingtoa Railroad Company Broad Street Station Building Philadelphia, Pennsylvania

Dear Siri

A decision by the Board In the matter of the Central Vermont Transportation Company set forth the principle that a company char­ tered as a common carrier by railroad, whose railroad Is operated in interstate coi$ icroe under lease or other arrangement by a carrier by railroad subjeet to Part I of the Interstate ceraaeroe Aet, Is Iteelf subjeot to Part I of that >ot, and consequently Is an "employer" under the Railroad Retirement Aet and the Railroad unemployment Insurance Aet.

Information contained In the valuation report of the Inter­ state Coomeree Commission on The Philadelphia, Baltimore and ashing ton Railroad Company (23 V. B. 263), Moody's Steam Railroads for 1941 and various leeues of "Statistics of taileays in the united States", in- dieatec that the company was Incorporated on September 16, 1916 under the general laws of Delaware, Pennsylvania and Maryland) that It owns a railroad approximately 397 ailee In length) that the railroad was operated by the company's own organisation prior to January 1, 1*18 and that since that date It has been operated under lease by The Penn­ sylvania Railroad jompany.

Since It appears from the foregoing that The Philadelphia, Baltimore and ashington Railroad Company has been chartered as a common carrier by railroad and elnee its railroad has, at least during the period August 29, 1936 to date, been operated In Interstate com­ merce under lease by The Pennsylvania Railroad Company, a carrier by railroad subject to Part I of the Interstate Commerce Aet, I aa of the opinion that it was on August 29, 1936, and has continued to be since that date, a carrier by railroad subject te Part I of the inter­ state Commerce Act and consequently an "employer" under the Railroad Unemployment insurance Aet and the ioilrood Retirement Aet. :>ervloe to it Is creditable under the latter Act from eptenber 16, 1916, the date of Ite Incorporation, to date. W . G. M. Pabst, Jr., Vie# President

"Die Railroad Retirement Aet and the Railroad Unemployment Insuranoe Aet require "employers" to submit certain reports. It is our experience that many oonpaaios in the nonoperating class do not have and never have had compensated employees, However, while there ■ay be no Individuals engaged in physical operations, the officers of an "employer' are included as employees and the company is respon­ sible under the nets administered by this Board for the appropriate reports and remittances, frequently the officers of a lessor company earn monthly compensation of ,>300 or over for services rendered to another "employer" and the wage reports and contributions of such ’employer" have already been made with regard to such compensation up to the ,300 maximus. If you have such cases, you may wish to ad­ just the books of the companies involved to refleet the proper chargee and to make reports reflecting the proper amount of contributions in the future.

In order that we any give you pertinent information concern­ ing the reports and payments which are required of The Philadelphia, Baltimore and Washington Railroad Company, I shall appreciate it if you will fill in and sign the attached questionnaire and return it to the Chief Liaison Officer, allroad Retirement Board, at your earliest convenience. This should be done even if you have already filed re­ ports with the Board.

Very truly yours.

Joseph H. Freehill General Counsel attelosure HPCiJw