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M E M O R a N D L-43-890 M-276 MEMORANDUM December 31, 1943 TO The Director of Retirement Claims FROM The General Counsel I SUBJECT Illinois Valley Traction Company Illinois Valley Railway Company In response to your request, I herewith submit my opinion on the following: QUESTION 1. Is service to the Illinois Valley Traction Company creditable toward annuities under the Railroad Retirement Act? 2. Is service to the Illinois Valley Railway Com­ pany creditable toward annuities under the Railroad Retirement Act? OPINION 1. It is my opinion that service to the Illinois Valley Traction Company is creditable toward annuities under the Railroad Retirement Act from January 1902 to June 1904. 2. It is my opinion that service to the Illinois Valley Railway Company is creditable toward annuities under the Railroad Retirement Act from June 1904 to December 190?. DISCUSSION Information in various editions of Poor's Railroads (Street Railway Section) is that the Illinois Valley Traction Company was chartered in January 1902 under the street railroad laws of Illinois, for the purpose of building a standard gauge electric railway from - 2- randum to he Director of Retirement Claims Ottawa to Princeton, Illinois, approximately 30 miles. To July 28, 1902, it had completed five miles of railway. By April 1, 1904, it had in operation a line of standard gauge electric railway extending from Ladd to Marseilles, 33 miles, and 9 miles of city lines. In June 1904 the properties of the Illinois Valley Traction Company were acquired by the Illinois Valley Railway Company, which had been incorporated some time during that month under the railroad laws of Illinois. In November or December 1907* the Chicago, Ottawa & Peoria Railway Company acquired by lease or purchase the properties of the Illinois Valley Railway Company, at that time having in operation a line of standard gauge electric railway some 58 miles in length. The Chicago, Ottawa & Peoria Railway Company has been held to have/been a "predecessor" of Illinois Terminal Company. See L-43-453. / It is clear from the foregoing that both the Illinois Valley Traction Company and the Illinois Valley Railway Company were "prede­ cessors" within the meaning of Sections 1(f) and 202 of the Railroad Retirement Act of 1937. Both properties (one directly and the other through an intermediate company) were acquired by the Chicago, Ottawa & Peoria Railway Company, which latter companjr has been held to have been a "predecessor" of Illinois Terminal Company, a "carrier employer" on August 29, 1935; both companies operated interurban railways and thus were carriers by railroad within the meaning of those sections. Service to the Illinois Valley Traction Company is creditable from January 1902 (the month during which it was chartered) to June 1904 (during which month its properties were acquired by the Illinois Valley Railway Company). Service to the Illinois Valley Railway Company is creditable from June 1904 (the month in which it was chartered) to December 1907 (its properties are said to have been acquired by lease or purchase by the Chicago, Ottawa & Peoria Railway Company in November or December 1907). * While the records available do not show whether the property of the Illinois Valley Railway Company was acquired by the Chicago, Ottawa & Peoria Railway Company by lease or purchase in 1907, or whether that transaction took place in November or December, it is clear from the record that some time in 1909 the properties of the Illinois Valley Railway Company were purchased by the Chicago, Ottawa & Peoria Railway Company. randum to e Director of Retirement Claims It is noted that in the annuity application of Lewis D. Shepard service is claimed to the Chicago, Ottawa & Peoria Railway Company from August 1901 to August 1913. It is possible that at least some of this applicant's service prior to April 18, 1907, may have been rendered to the companies ruled on in this memorandum. Joseph H. Freehill General Counsel.
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