B.C.D. 01-67

EMPLOYER DETERMINATION

Landisville Terminal & Transfer Company

The Landisville Railroad, Inc.

AUG 1 5 2001

This is a determination of the Railroad Retirement Board concerning the 

continued status of The Landisville Railroad, Inc. (LRI), B.A. No. 4393, as an

employer under the Railroad Retirement Act (45 U.S.C. § 231 et sea.l(RRA)

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

sea.KRUIAl and the status of Landisville Terminal & Transfer Company

(LTTC) as an employer under the RRA and the RUIA.

THE LANDISVILLE RAILROAD. INC.

Information regarding LRI was provided by Mr. Robert A. Hamstead, 

Treasurer of LRI. According to Mr. Hamstead, LRI ceased rail operations on 

December 29, 2000. Mr. Hamstead stated that LRI’s part-time employees

were last compensated on December 29, 2000. Mr. Hamstead further

stated that LRI’s assets have been offered for sale as well as the railroad

repair shop assets of Amherst Industries of Pennsylvania, LRI's parent

company. Mr. Hamstead also stated that effective January 1,2001, LRI

leased its assets to Landisville Terminal & Transfer Company to operate its

rail line. Mr. Hamstead last stated that LRI has not abandoned its railroad

operations.

Section 202.11 (20 CFR 202.11) of the Board's regulations states:

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.

Based upon the information above, The Landisville Railroad, Inc. no longer

possesses the characteristics of an operating rail carrier covered under

the RRA and the RUIA. Therefore, effective December 29, 2000, the last

date of operations and the last date LRI compensated its employees, The

Landisville Railroad, Inc. ceased being covered under the RRA and the

RUIA.

BA# 4393
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LANDISVILLE TERMINAL & TRANSFER COMPANY

In Surface Transportation Board Finance Docket No. 33983, decided

December 28, 2000, LTTC filed a notice of exemption to lease and

operate less than two miles of rail line owned by LRI in Lancaster County,

Pennsylvania. The rail line extends between its connection to Norfolk 

Southern Railway Company (B.A. No. 1525) on Amtrak’s1 (B.A. No. 8301)

Harrisburg Line and the end of track south of Nolt Road and north of Stony

Battery Road. The STB decision further stated that LTTC would lease all of

LRI's assets and would continue to provide common carrier railroad

service formerly provided by LRI.

Information regarding LTTC was provided by Mr. Douglas Golden,

President and Chief Executive Officer of LTTC. According to Mr. Golden,

he and Eyal Shapira are the owners of LTTC. Mr. Golden stated that

Amherst Industries, the parent company of LRI, leased the 1.5 miles of rail

line to LTTC to provide common carrier services. Mr. Golden stated that

LTTC began rail operations on January 1,2001, but reported that LTTC

currently does not have any employees. Mr. Golden stated that New York

& Ogdensburg Railway2 (NYOG) (B.A. No. 2272), on a contract basis,

provides employees to LTTC and that if business develops, LTTC will hire its

own employees. East Penn Railway (B.A. No. 2363), also on a contract

basis, will provide services to LTTC on an as needed basis. Mr. Golden

further stated that LTTC provides common carrier freight service and

expects to handle approximately 100-150 carloads of freight annually. He

also stated that LTTC interchanges with Norfolk Southern.

Section 1 (a)(1) of the Railroad Retirement Act (45 U.S.C. § 231 (a)(1)), 

insofar as relevant here, defines a covered employer as:

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

Surface Transpiration Board under Part A of subtitle IV of title 49,

United States Code;

Amtrak a/k/a National Railroad Passenger Corporation.

Mr. Golden stated that the majority owner of LTTC is a minority owner in NYOG.

Mr. Golden further stated that the majority owner of NYOG is a minority owner in LTTC.
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Section 1 of the RUIA contains essentially the same definition, as does 

section 3231 of the Railroad Retirement Tax Act.

The evidence of record establishes that LTTC is a rail carrier operating in

interstate commerce. Accordingly, it is determined that Landisville

Terminal & Transfer Company became an employer within the meaning of

section 1 (a) (1) (i) of the Railroad Retirement Act and the corresponding

provision of the Railroad Unemployment Insurance Act effective January

1,2001, the date on which it commenced railroad operations.

V. M. Speakman, Jr.