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z - 3 y - ? 7 p MEMORANDUM z

Washington

September 29, 1937

TO: Mr, Schreiber y < = 7

FROM: Mary B. Llcklns

SUBJECT: Status of Oakland Terminal Railroad Company

Based upon the attached summary, I am of the opinion that the Oakland Terminal Railroad Company was on August 29, 1935, a carrier subject to the Rail­ road Retirement Act of 1935, and is at the present time a carrier subject to the Railroad Retirement Act of 1937; that service therewith is creditable from , 1.935, to date; and that service with its predecessor in name, Key System, Ltd., is creditable from August 7, 1930, to , 1935.

My reasons for these conclusions are:

The Company was incorporated on August 7, 1930, under the laws of as the Key System, Ltd., but its articles of incorporation were amended on February 26, 1935, when the change in name took dace. In a letter of July 10, 1935, to the Director of the Bureau of Statistics of the interstate Commerce Commission, the vice president of the company stated that the Oakland Terminal Railroad Company was not a new company, but was the new name of the Key System, Ltd.

By Decision n o .22,941, the Railroad Commission of California granted the application of a. ' . Campbell, A. B. Peterson and K. F. Guichard to sell, and the Key System, Ltd., to purchase, the properties known as the transbay system, which had been purchased from the Key System Transit company at fore­ closure sale August 6, 1930, by the individuals named. There were other opera­ tions, such as motor coach service and street railway service conducted by the Key System Transit Company, but it was found that they were almost valueless operated as a unit.

At present, the company operates a little over fifty miles of tracks on various streets and on private right of way in cities of California. In 1930, it operated under its former name about sixty miles of tracks in Oakland, Berkeley, Kill Station and Emeryville, California.

The Oakland Terminal Railroad Company was not listed in the official Guide or Equipment Register at the time we investigated. However, its prede­ cessor in name reported connections at Oakland with the Atchison, Topeka and Santa Fe Railway, Sacramento Northern Railway, and Southern Pacific Company, and advertised them in the Official Guide from 1930 to February, 1935.

The Company used three electric locomotives in 1930, and two electric locomotives and one steam locomotive in 1931 to 1934. In 1935 and 1936, it used

L one steam locomotive and one electric locomotive, and no other equipment. It performed a "terminal freight switching" business. In 1934, it reported to the Board in reply to a questionnaire that its freight business was handled in standard steam railroad freight equipment.

The Company filed annual reports with the Interstate commerce com­ mission in the name of the Key System, Ltd., from the three months ended December 31, 1530, to December 31, 1934. Annual reports were filed in the name of Oakland Terminal Railroad Company for 1935 and 1936.

The Key System, Ltd., adopted the tariffs of 3. W. Campbell, A. B. Peterson and ?. F. Guichard (Key System), as of October 17, 1930. It had effective freight tariffs In that name on file with the Interstate Commerce Commission throughout its existence. It also had at various times freight powers of attorney, freight concurrences, passenger tariffs and passenger concurrences on file with the Interstate Commerce commission.

Effective March 1, 1935, the Oakland Terminal Railroad company adopted the freight tariffs of the Key System, Ltd., and, including the adop­ tion notice, has filed five freight tariffs with the interstate Commerce Commission. It has also filed five freight powers of attorney and three freight concurrences. Under its present name, the Company has filed no passenger tariffs, concurrences or powers of attorney.

Prior to the change in name, the Company’s freight and switching re­ venues were low compared to the passenger revenues, in 1934, they were only three per cent of the passenger revenues.

The annual reports for 1935 and 1936 show that in these years the Company’s transportation revenues were derived solely from the carriage of freight and the performance of switching. Its non-transportation revenues exceeded its transportation revenues in 1935. A large item in the non- transportation revenues arose from rent of tracks and facilities. These rents were probably from the lease to the Key System as of July 1, 1935, of railway lines in East Bay cities. These leased lines arc the passenger lines formerly operated by this company. The Key System, prior to February 26, 1935, was the Key Terminal Railway, Ltd.

In reply to the Board's questionnaire in 1934, the Company reported that of the 292 employees in its service on August 1, 1934, only 9 handled freight; that while it had joint freight tariffs with other carriers, these were intrastate only; and that interstate freight was handled under an absorbed switching charge. There have been no cases before the interstate Commerce Commission involving this company under either of its names.

The Company filed Hours of Service reports with the Interstate Commerce Commission throughout its existence.

Based upon the facts contained in the summaries, I am of the opinion that the Oakland Terminal Railroad Company was on August 29, 1935, and has been ever since, more than a street, suburban or electric railway, and, as such, is subject to the 1935 Act.

As the 1937 Act provides

That service rendered prior to August 29, 1935, to a company which on that date was a carrier as defined in the Railroad'Retiremeat Act of 1935, shall be in­ cluded in the service period in connection with any annuity certified in whole or in part by the Board after the date of enactment of this Act, irrespective of whether at the tine such service was rendered such company was a carrier as defined in the * * * Act of 1935

I am of the opinion that service with this company is creditable from August 7, 1930, the date of its incorporation, to date.

Respectfully submitted,

Mary B. Linkins Oakland Terminal Railroad Go* (Present company) Inc. - Kama changed -

Key System, Ltd. (Former name of present company) Inc. -

(B. V. Campbell ) (A. B. Peterson ) (R. F. Gurchard )

( Transbay system of Key System Transit Co.)

Key system Transit Co.

San Francisco-Oakland Terminal Railways

: and San San Francisco, Oakland & San Jose Consolidated : Jose Ry., inc. (no East Shore & Suburban Railway Co. ; annual reports)______Oakland Traction Company :San Francisco and Bay California Railway :Counties Ry., inc. (no :annual reports)______