Mr. J. J. Skin, Comptroller The Cincinnati, Indianapolis * Western Railroad Company Baltimore and Chle Building Baltimore, aryland

bear Sirs

A decision by the Board In the rntter of the Central Vermont Transportation Company aet forth the principle that a company chartered as a oeiun.on carrier bj rail rod, whose r&ilroad is operated In interstate commerce, under lease or other arraagsu-ent, by a carrier by railroad subject to Part I of the Interstate Conar.eroe Act, la itself subject to Vert I of that .ct, and consequently is an "employer" under the - ail road Retirement Aet and the ivallroad L'nemployToent Insurance Aet.

Information contained in Control of Cincinnati., Indianapolis i ■iestera I allroad Company by oaltinore and ( M o tiilros i'~'c pany • 111 i.C.C. llti), ioody^s iteam Railroads for the year litel and various editions erf "Statistics of Ixallways In The United States" indicates that The Cinolnnati, Indianapolis A Western kailroad Company, referred to as a "oarrier by railroad subject to the Act [interstate Cotcmeroe Act]," was incorporated on October 50, 1915, under the laws of Indiana, as successor to the injiatl, i Railway it owns a line of railroad approximately 507 allot in lengths that the railroad was operated by its osn organisation prior to JUne I, 1*37, and that since the latter date it has been operated under lease by The Baltimore and ( M o Railroad Company.

Linee it appears from the foregoing that The Cincinnati, Indianapolis * estera . ailroad Company has beea chartered as a eon non oarrier by railroad and since its railroad has, at least during the period Auvust 29, 1935 to date, been operated in interstate commerce under lease by The Baltimore and M o Railroad Company, a oarrier by railroad subject to kart I of the Interstate .ommuree *ot, I an of the opinion that it was on August 29, 1956, and has oentiaued to be since that date, a oarrier by railroad subject to kart I of the interstate Coai&eroe Act and consequently an "employer" under the railroad Unemploy­ ment Insurance Act and the Itailroad Retirement Aet* 5enrj.ee to it is '.re iitablt under t..e latter aot froi v . etcher So, 1916, the date of its -corporation, to date. -2- Mr. J* J. Skin, Controller

The Railroad Bstiresent Aot and the Railroad l.-nemploymeht Insurance Aot require "employers" to euonit certain reports. It Is our experience that many companies in the nonoperating class do not have and never have had compensated employees. However, while there cay be no individuals engaged in physical operations, the officers of an "employer" are included as employees and the company is responsible under the Acte administered by this aoard for the appropriate reports and remittances. the officers of a lessor company earn monthly compensation of 300 or over for services rendered to another "employer" and the wa^e reports and contributions of such "employer" have already been cade with regard to such compensation up to the maximum. If you have such cases, yeu m y wish to adjust the books of the cci.,panics involved to reflect the proper chargee and to stake reports reflecting the proper amount of contributions in the future.

In order that we say give you pertinent informtlou concerning the reports and payments which are required of The Cincinnati, Indianapolis ft western Railroac company, I shall appreciate it if you will fill in and sign the attached questionnaire and return it to the Jireetor of the Bureau of Administration, nailroad Retirement boara, at your earliest convenience, this should oe done even if you have already filed reports with the Board.

Very truly yours.

Joseph He freehill General Counsel

Snolosure