B.C.D. 00-53 NOV 2 7 2000

EMPLOYER STATUS DETERMINATION

Delta Southern Railroad Company

Delta Southern Railroad, Inc.

This is the determination of the Railroad Retirement Board concerning the

continuing status of Delta Southern Railroad Company (DSRC) (BA No. 2860)

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 seq.)

(RUIA). DSRC was found to be an employer effective January 3, 1989. This is 

also the determination of the Railroad Retirement Board as to the employer

status of Delta Southern Railroad, Inc. (DSRI) under the aforesaid Acts. DSRI

was not heretofore determined to be an employer.

On October 1, 1999, DSRI filed a verified notice of exemption with the Surface

Transportation Board to acquire and operate all of the assets of DSRC,

including leaseholds. See STB Finance Docket No. 33802, decided October 12,

1999. On January 3, 2000, DSRC and DSRI executed a purchase and sales

agreement which completed the entire acquisition set forth in the aforesaid

verified notice of exemption. Effective January 3, 2000, DSRC last

compensated its employees and ceased operations and DSRI began actual

operations. DSRC, as ofJanuary 3, 2000, no longer owns equipment or track

and is now not capable of operating a railroad. According to William P.

Wainright, former Chief Executive Officer of DSRC and now President and

Chief Executive Officer of DSRI, both DSRC and DSRI are exactly the same

except for the name change. However, in view of the fact that a new

corporation known as DSRI was formed on September 3, 1999, it is clear that,

not only has the name changed from DSRC to DSRI, but also that a new entity

was created, and that new entity is legally separate and distinct from the other,

notwithstanding the fact that there was no change in actual operations.

Therefore, a new employer status determination is required for DSRI.

As it was with DSRC, DSRI has terminal points at Tallulah and Sterlington,

Louisiana, and McGehee and Monticello, Arkansas, with appropriately 150

miles of track. DSRI interchanges with Union Pacific Railroad at McGehee,

Arkansas and Monroe, Louisiana; and with Kansas City Southern Railroad at

Tallulah, Louisiana.

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

Transportation Board under part A of the subtitle IV of Title 49

United States Code.

BA# 2860
Delta Southern Railroad Company

Delta Southern Railroad, Inc.

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/

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

interstate commerce. Accordingly, it is determined that DSRI became an

employer within the meaning of section l(a)(lXi) of the Railroad Retirement

Act (45 U.S.C. §231(a)(1)) and the corresponding provision of the Railroad

Unemployment Insurance Act effective January 3, 2000, the date as of which it

commenced operations. The evidence of record further establishes that DSRC

ceased to be an employer under the Acts administered by the Board on January

3, 2000, the date on which it ceased operations and was no longer capable of

operating as a railroad employer.

Cherry/tT Thomas

V. M. Speakman, Jr.