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March 15, 1941 Mr. Comptroller Canadian Pacific

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March 15, 1941 Mr. Comptroller Canadian Pacific March 15, 1941 Mr. Comptroller Canadian Pacific Railway Company Montreal, Canada Dear Sir: Reference is made to your letter of May 31, 1940, contain­ ing additional information with respect to the operations of the Quebec Central Transportation Company. From the information furnished by your company, it appears that the Quebec Central Transportation Company is, and always has been, controlled through complete stock ownership by the Canadian Pacific Railway Company, a "carrier employer" under the Railroad Re­ tirement and Railroad Unemployment Insurance Acts. It was organized on August 8, 1931, as a joint-stock company under the laws of the Province of Quebec "to establish and exploit on the territory served by the Quebec Central Railway Company and in the interest of and in coordination with its railway, a system of motor vehicles and other conveyances to transport persons and goods of all kinds that may be found convenient not to carry by railway: and further to carry on the business of transportation of passengers and goods of all kinds, by motor vehicle and other conveyances at such places and such times and either on regular routes or for special trips." The Transportation Company operates several bus lines in the Province of Quebec and one which extends into the United States for a distance of eight miles. The total route mileage of 299 miles parallels the rail route of the Quebec Central Railway Company* and the Canadian Pacific Railway Company, and is operated entirely in lieu of railroad service, between the following stations: * The property of the Quebec Central Railway Company was leased to the Canadian Pacific Railway Company as of December 31, 1912 for 999 years. "The operation of the Quebec Central Railway Company is included in, and is a part of the Canadian Pacific Railway Company." See Moody’s Railroads (1940), p. 1842. - 2 - Mr. Comptroller Route Mileage St. George, Quebec - Levis, Quebec 63 Valley Junction, Quebec - Megantic, Quebec 81 Valley Junction, Quebec - Black Lake, Quebec 38 Thetford Mines, Quebec - Sherbrooke, Quebec 69 Sherbrooke, Quebec - Newport, Vermont 48 299 These bus routes connect with the Canadian Pacific Railway or the Quebec Central Railway at all the Transportation Company's terminal points in Canada and in the United States. For the year ended December 31, 1938, the total number of miles operated in the United States was 3,238 out of a total mileage operated in Canada and the United States of 110,127 miles. However, it is apparent that in addition to the mileage operated in the United States a substantial mileage is operated in Canada in connection with railroad transportation in the United States. All officers and em­ ployees reside in Canada and all perform their duties wholly in Canada with the exception of the bus operator on the route extending into Vermont. Since the Quebec Central Transportation Company performs, and since August 28, 1935 has performed, services in coordination with and in lieu of railroad transportation in the United States by the Canadian Pacific Railway Company, it is clear that from that date to the present time it has been engaged in the performance of services in connection with the transportation of passengers by railroad within the meaning of Sections 1(a) of the Railroad Retirement Act and the J Railroad Unemployment Insurance Act and Section 202.07 of the Board's ~ Regulations. (See General Counsel's Opinion Ho. 1939 R.R. 117, re Lake Erie navigation Company, General Counsel's Opinion No. 1939 R.R. 40, approved B.O. 30-3&9, re Boston & Maine Transportation Company and General Counsel's Opinion No. l93§'ft.!S. 46, approved 5.0"! 39-330’, re Reading Transportation Company.) \ i; 31 “HI In view of the foregoing, it is my opinion that the Quebec Central Transportation Company is, and since August 28, 1935 has been, an "employer" within the meaning of the Acts. However, the facts set forth above clearly show that the principal part of the Transportation Company's business is performed outside the United States. Accordingly, only service rendered to it in the United States is creditable toward annuities under the Railroad Retirement Act and toward benefits under the Railroad Unemployment Insurance Act. (Section 1(c) of the Rail­ road Retirement Act and Section 1(e) of the Railroad Unemployment In-. surance Act.) Comptroller You will receive, in due course, instructions regarding the filing of reports and the supplying of information required of the Quebec Central Transportation Company. Very truly yours, General Counsel.
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