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MEMORANDUM , January 25, 1944

TO The Director of Wage and Service Records

FROM The General Counsel

SUBJECT Associated Railroads of

In response to your request, I herewith submit my opinion on the following:

QUESTION

Is the Associated Railroads of Pennsylvania an "employer" under the Railroad Retirement Act or the Railroad Unemployment Insurance Act?

OPINION

It is my opinion that the Associated Railroads of -Pennsylvania is an "employer" under the Rail­ road Retirement Act and the Railroad Unemployment Insurance Act.

DISCUSSION

Information furnished by Mr. William A. Reiter, Chairman, Associated Railroads of Pennsylvania, is that the Associated Railroads of Pennsylvania was organized on April 2, 1921. Its membership is com­ posed of the following companies:

The and Railroad Company Bessemer and Railroad Company The Central Railroad Company of The and Hudson Railroad Corporation The Delaware, Lackawanna and Western Railroad Company Company The Huntingdon and Broad Top Mountain Railroad and Coal Company Lehigh and New England Railroad Company Railroad Company The Central Railroad Company New York, Ontario and Western Railway Company - 2- Memorandum to the Director of Wage and Service Records

The Company The and Lake Erie Railroad Company Western Railway Company Railway Express Agency, Incorporated The East Broad Top Railroad and Coal Company

All of the foregoing are "carrier employers" under the Railroad Retire­ ment Act and the Railroad Unemployment Insurance Act. With the excep­ tion of The East Broad Top Railroad and Coal Company, which was admitted to membership in April 1937> all of the foregoing have been members of the Association since its organization in April 1921. The duties, func­ tions and activities of the Association are "to analyze all resolutions and bills introduced and take measures to protect the railroads against enactment of vicious adverse legislation and at the same time aid in the passage of legislation which not only protects the railroads, but the public as well." The Association is controlled by the members, each carrier having one vote. Funds necessary for the Association's opera­ tions are obtained by assessment on the members of the Association "on the pro-rata basis of the percentage of the mileage of each road to the total mileage in the State of Pennsylvania, compiled from mileage fig­ ures furnished annually - 'Total miles of first track owned and in addition thereto the miles leased and exclusively operated in the State of Pennsylvania.1"

In view of the foregoing, it is my opinion that the Associated Railroads of Pennsylvania is a railroad association controlled and main­ tained wholly or principally by two or more "carrier employers" under the Railroad Retirement Act and the Railroad Unemployment Insurance Act and is engaged in the performance of services in connection with or incidental to railroad transportation and is, therefore, an "employer" under those Acts. 'Since it was an "employer" on August 29, 1935, serv­ ice to it is creditable under the Railroad Retirement Act from April 2, 1921, the date of its organization, to date.

Joseph H. Freehill General Counsel