EMPLOYER STATUS DETERMINATION

Hollidaysburg & Roaring Spring Railroad Company

This is the determination of the Railroad Retirement Board 

concerning the status of Hollidaysburg & Roaring Spring Railroad 

Company (HRS), as an employer under the Railroad Retirement Act (45

U.S.C. § 231 et seq.) (RRA) and the Railroad Unemployment Insurance

Act (45 U.S.C. §351 et seg.) (RUIA).

Information regarding HRS was provided by A. W. Maples, President

of HRS. According to Mr. Maples, HRS acquired, pursuant to ICC

Finance Docket 32633, a 10.2 mile rail line in Blair County,

Pennsylvania, formerly owned by Conrail. Operations began April 1,

1995 . All operations of HRS are contracted to The Everett Railroad 

(B.A. No. 3324), an affiliate of HRS and an employer under the RRA 

and RUIA. HRS reports that it has no employees or payroll.

In cases such as this where an entity has authority to operate a

rail line, but does not actually operate the line in question, the

Board looks to the identity of the entity operating the line and

the nature of the relationship of that entity to the ICC certified 

carrier to determine the status of the certified carrier under the

RRA and RUIA. If the operating entity is itself a carrier employer 

covered under the Acts administered by the Board, or if that entity 

has been recognized by the ICC as the operator of the line in

question, which will result in that entity being found to be a

covered employer with respect to the operation of the line it has

undertaken, and if the certified entity has no involvement in the

actual operation of the rail line, the Board will find the

certified entity not to be a covered employer under the RRA and the

RUIA. If, however, the operating entity is neither a covered 

employer nor an entity that has been recognized by the ICC as the

operator of the line, the Board will find the certified entity to

be a covered employer and persons operating that line to be

employees of the covered employer.

HRS has no employees and operations are conducted by the employees 

of another railroad carrier, which is an employer under the Acts.

That employer reports the employee service rendered to operate 

HRS's rail line to the Board. Consistent with above-described

analysis of cases such as this, a majority of the Board finds that

Hollidaysburg & Roaring Spring Company is not an employer subject

to the Railroad Retirement and Railroad Unemployment Insurance

Acts .

BCD 1996-4
-2-

Hollidaysburg & Roaring Spring Railroad Company

The Hollidaysburg & Roaring Spring Railroad Company is reminded to

inform the Board of any change in the operation of the rail line in

this case.

Glen L. Bower

V. M: Speakman, Jr\ (Dissenting

opinion attached)

Kever

%
t

DISSENT OF

V M. SPEAKMAN, JR.

ONEMPLOYER STATUS DETERMINATION OF

HOLLIDA YSBURG & ROARING SPRING RAILROAD CO.

Itake exception to the majority ofthe Board’s decision not to cover Hollidaysburg &

Roaring Spring Railroad Co. (HRS) as an employer under the RailroadRetirementAct

and the Railroad Unemployment Insurance Act (the Acts). As a rail carrier under the

jurisdiction ofthe ICC, the Acts direct the Board tofindHRS covered That HRS has no

employees but rather contracts with a carrier thatprovides employees to conduct

operations, is not relevant to this determination. Its status as a carrier subject to ICC

jurisdiction is the determiningfactor which renders it a covered employer. See Board

Coverage Decision 94-112.

To decide otherwise, as the majority has done, sets a badprecedent and conflicts with

current law. For the reasons stated I dissent.

V. M. 'Speakman, Jr.

JAN 2 - i«5

Date