L-39-183 Opinion No. 193S R.R. 26

April 4, 1939

The Director, Claims Service

The General Counsel

New Orleans Railway Clearing House and Railway Clearing Houses at Washington, D. C. and Macon, Georgia.

Organized About 1908 (exact date unknown). In 1910 the three offices were consolidated into one office at Macon, Georgia. Clearing house operations ceased in 1910 or 1911 (exact date unknown).

Number of On September 19, 1912, Mr. F. M. Curry, Chief Clerk, Members Railway Clearing House, Macon, Georgia, addressed a letter requesting contributions for the purpose of winding up the affairs of the Clearing House to the following carriers:

The Illinois Central Railroad Company The Gulf and Ship Island Railroad Company The Company The Mobile and Ohio Railroad Company The New Orleans & North Eastern Railroad Company The Great Southern Railroad Company The Cincinnati, New Orleans & Texas Pacific Railway Company The Alabama and Vicksburg Railway Company The Louisville and Nashville Railroad Company Nashville, Chattanooga & St. Louis Railway St. Louis and San Francisco Railroad Company Norfolk & Western Railway Company

In a letter of March 28, 1939, Mr. E. Bergelt, Auditor of the Southern Railway Company, stated that he was of the opinion that the above carriers constituted the full membership of the Railway Clearing Houses and this would appear to be so inasmuch as it may reasonably be assumed that contributions would be requested from all members.

Duties Tracing movement of yellow pine over the railroads Functions and in the Southeastern territory to determine who Activities owned the lumber in transit, compiling records by which the two cent refund ordered in the Two Cent Memo, to Director, Claims Service

Yellow Pine Rebate Cases could be properly allocated between the various carriers and handling reparation claims. (See The Central Yellow Pine Association v. Illinois Central Railroad Co., 10 I.C~C. 505, H. H . Tift et al v. Southern Railway Co., 10 I.C.C. 548, Tift v. Southern Railway Co~., 12 3—Fed. 789, 138 Fed. 753, Southern Railway Co. v. Tift, 148 Fed. 1021, 206 U.S. 428, and Illinois Central Railroad Co., Gulf and Ship Island Railroad Co., SouthTern Railroad Co. v. The Interstate* Commerce Commission, 206 U.S. 4 4 1 . 7

4. Maintained Through proportionate contributions from each railroad involved. Employees of the Association were paid directly by it and not by the individual members.

5. Managed Apparently by special attorneys assigned by all carriers involved to handle reparation claims of purchasers and shippers affected by the Two Cent Yellow Pine Rebate Case.

6. Conclusion That the New Orleans Railway Clearing House and the Railway Clearing Houses at Washington, D. C. and Macon, Georgia were associations controlled and maintained wholly or principally by two or more "car­ rier employers" under the Act and engaged in the performance of services in connection with or inci­ dental to railroad transportation, and were therefore "employers" within the meaning of the Act.

7. Service According to information received from one of the Creditable carrier members of the Clearing Houses, all records of the Clearing Houses had been stored at Burlington, North Carolina, but were completely destroyed by fire on June 12, 1918. Other information furnished indicates that the Clearing Houses were in existence from about 1908 to 1910 or 1911 but the exact dates of organization and termination cannot be obtained. Therefore, to the extent that service is proved with the Clearing Houses, it may be credited towards annuities.

Copies to: Mr. Latimer Lester P. Schoene Mr. Eddy General Counsel Mr. Reed Mr. Davidson Mr, Hursey Mr. Glover Mr. Merrman Mr. Schoene