April 27, 1938 Mr. A. 0. Rhodes, Secretary Pere Marquette Radio

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April 27, 1938 Mr. A. 0. Rhodes, Secretary Pere Marquette Radio Corporation 6-103 General Motors Building Detroit, Michigan Dear Sir: Reference is made to your letter of October 14, 1937, sub mitting certain information requested by the Railroad Retirement Board relative to the status under the Railroad Retirement Act of the Pere Marquette Radio Corporation. From the information furnished by you, it appears that the Pere Marquette Radio Corporation was organized under the laws of the State of Michigan on June 20, 1930, for "The sending and receiving of radio communications, signals and transmissions for the public and the carrying on of all matters and business in relation thereto"; that all of its capital stock is held by the Central Land Company, a wholly owned subsidiary of the Pere Marquette Railway company; that it oper ates a radio station at Ludington, Michigan, and a M p stations on the Railway Company’s car ferries which carry carload freight and passen gers between the ports of Ludington, Michigan, and Kewaunee, Manitowac, and Milwaukee, Wisconsin; that in addition to transmitting messages between Ludington and the car ferries, the Radio Corporation transmits messages to shore stations located at Frankfort, Menominee and Manistique, Michigan, which stations are owned and operated by the Wabash Radio Corporation, and to the station at Manitowac, Wisconsin, also operated by the latter company but owned Jointly by that company and the Pere Marquette Radio Corporation; that the Railway company formerly operated the radio service itself in connection with its rail road business and organized the Radio Corporation only when denied a license by the Federal Radio Commission; that under an agreement dated June 20, 1930, providing for the transfer of the radio facilities of the Railway Company to the Radio Corporation, the Radio Corporation agreed to furnish radio service to the Railway Company at actual cost; that although the Radio Corporation operates its service for the public at rates filed with the Federal Communications Commission, practically Mr. A. C. Rhodes, Secretary all of its business consists of the handling of messages for the Railway Company, "such messages pertaining to the general operation of the railroad." Upon the basis of these facts, it is my opinion that the Pere Marquette Radio Corporation is a company controlled by a carrier by railroad subject to Part I of the Interstate commerce Act; that it performs a service in connection with the transportation of passengers and property by railroad, and that it is, therefore, an "employer" within the meaning of the Railroad Retirement Act. Very truly yours, LPS:DBS:JJD:SG:ab:bmm April 23, 1938.

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