EMPLOYER STATUS DETERMINATION 

Walkersville Southern Railroad, Inc. (WSR)

JAN 1 9 2000

This is a determination of the Railroad Retirement Board concerning the

continued status ofWalkersville Southern Railroad, Inc. (WSR) (BA No. 2357)

as an employer under the Railroad Retirement Act (45 U.S.C. §231 et seq.) and

the Railroad Unemployment Insurance Act (45 U.S.C. §351 et seq.)

WSR is a class three line-haul railroad which operates a “turn of the century”

small-town excursion railroad between Walkersville and Frederick, Maryland.

In B.C.D. 94-30, issued March 7, 1994, the Board held that WSR was operating a

railroad in interstate commerce in the United States and accordingly, became a

rail carrier employer under the Railroad Retirement and Railroad

Unemployment Insurance Acts effective November 12, 1993, the date it

reported it began operations. At that time, WSR’s plans included developing

freight business and interchanging with the Maryland Midland Railway

(MMR).

A recent audit revealed that WSR’s original plans were never realized.

According to WSR’s President, Gene Tucker, WSR does not presently haul

freight, nor does it plan to do so in the future. It has only an ancillary

relationship with MMR, as the two railroads have an agreement whereby MMR

may use WSR’s tracks for the purpose of transporting grain for Cargill, a grain

operator and storage facility located across the street from the WSR station1.

The agreement provides that WSR is restricted from doing business with

Cargill.

Section 1(a)(1) of the Railroad Retirement Act defines the term “employer” to

include:

(i) any carrier by railroad subject to the jurisdiction of the

Surface Transportation Board under part A ofsubtitle IV of Title 49

[45 U.S.C. §231(aXlXi)]-

Section 1 of the RUIA contains essentially the same definition.

Section 10501 of Title 49 of the United States Code provides in pertinent part

that the Surface Transportation Board (STB) has jurisdiction over

transportation by rail carrier:

'The evidence indicates the track is actually owned by the state of

Maryland. See ICC Finance Docket No. 32329 decided September 23, 1993.

BCD 2000-02

BA# 2357
-2-

Walkersville Southern Railroad, Inc. (WSR)

...in the United States between a place in -­

(A) a State and a place in the same or another State as

part of the interstate rail network [49 U.S.C.

§10501(a)(2)(A)].

The evidence shows WSR operates an excursion railroad between Walkersville

and Frederick, Maryland. WSR does not conduct freight operations, nor does it 

operate any passenger service which connects with any other railroad. It

operates only on a seasonal basis, during the months of May through October,

as well as some operations around the December holidays.

The Railroad Retirement Board’s regulations provide that the employer status

of any company or person shall terminate whenever such company or person

loses any of the characteristics essential to the existence of an employer status.

(20 CFR §202.11). The information summarized above establishes that WSR is

not part of the interstate rail network. As a result, it is, according to the

statutory language quoted previously, not subject to STB jurisdiction.

Consequently, it also is not within the carrier definition of “employer” under

the RRA and the RUIA.

The Board finds that effective with the close of business on April 30, 1999, the

Walkersville Southern Railroad, Inc., ceased being a covered employer under

section l(a)(lXi) of the Railroad Retirement Act (45 U.S.C. §23l(a)(l)(i)) and the

corresponding provision of the Railroad Unemployment Insurance Act.

April 30, 1999 is the last day of the month in which the Railroad Retirement

Board first became aware that WSR no longer intended to conduct freight

operations.

Chenyl/f. Thomas