B.C.D. 00-65 DEC 2 1 2000

EMPLOYER STATUS DETERMINATION

Wisconsin Chicago Link, Ltd. (WCLL)

This is the determination of the Railroad Retirement Board concerning the

status of Wisconsin Chicago Link. Ltd. (WCLL) as an employer under the

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

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

In Surface Transportation Board (STB) Finance Docket No. 33825. decided on

November 29, 1999, WCLL Filed a notice of exemption to acquire a rail line of

Wisconsin Central Ltd. (WCL) (B. A. No. 2633) extending between Forest Park

and Franklin Park. Illinois, a distance of approximately 4.1 miles (the "Forest

Park Line"). According to the STB decision. WCL retained trackage rights on

the Forest Park Line. This notice of exemption also related to Finance Docket

No. 33811 in which Wisconsin Central Transportation Corporation (WCTC)

sought an exemption to continue in control of WCLL after WCLL acquired the

Forest Park Line.

Additionally, in STB Finance Docket No. 33831, decided February 3, 2000, 

WCLL filed a notice of exemption to lease from Pennsylvania Lines LLC (PRR)

approximately 1.9 miles of rail line (the Panhandle line) of the former

Pittsburgh Cincinnati, Chicago & St. Louis Railroad Company (PCC&StL) in

Chicago. Cook County. Illinois. The Panhandle line extends between (1) a 

connection With CSXT via the Altenheim Subdivision of the Baltimore and

Ohio Chicago Terminal Railroad Company at Ogden Junction near Rockwell

Street (approximately PCC&StL milepost 309.8), and (2) a point (approximately

PCC&StL milepost 307.9) 600 feet north of the north bank of the Chicago

Sanitary and Ship Canal, near the Ash Street Interlock. According to the STB

decision. WCLL also would obtain incidental, overhead trackage rights

extending south from PCC&StL milepost 307.9, a distance of approximately 2

miles, to present or future connections with rail lines of Norfolk Southern (NS)

(B. A. No. 1525), Canadian National/Grand Trunk Western Railroad. Inc.

(CNGTW) (B. A. No. 1103). Illinois Central Railroad Company (ICRR) (B. A. No. 

1516). Chicago, Central & Pacific Railroad Company(CCPC) (B. A. No. 2630) and

the Burlington Northern and Sante Fe Railway Company (BNSF) (B. A. No. 

1621). The Panhandle Line was out of service at the time of the STB decision.

However, according to the STB decision, WCLL intends to reconstruct the line

and add additional capacity. Additionally, the decision stated that initial

operations on the line would be conducted by NS, CSXT and WCL pursuant to

trackage rights.

Information regarding WCLL was furnished by Mr. Michael J. Barron, Jr.,

General Attorney for Wisconsin Central System. Mr. Barron stated that WCLL

is a wholly-owned subsidiary of WCTC. The Chief Executive Officer of WCLL

BA#3390
Wisconsin Chicago Link, Ltd. (WCLL)

is Mr. J. Reilly McCarren. According to Mr. Barron. WCLL owns approximately

4.1 miles of track between Milepost 15 in Franklin Park. Illinois and Milepost

10.9 in Forest Park, Illinois. WCLL is also seeking a leasehold interest in

Norfolk Southern's Panhandle Line (milepost 310 to 308) in Chicago.

Mr. Barron states that the Panhandle line does not connect with WCLL, but

access between the two is via CSX Transportation's Altenheim Subdivision.

Mr. Barron stated that in addition to owning right-of-way. WCLL subleases

freight cars for hire. According to Mr. Barron. WCLL currently conducts no

common carrier operations on its own. but contracts its trackage for use by

WCL. Mr. Barron stated that WCLL derives its income from car hire earnings.

WCLL began operations on November 10. 1999 and reportedly has no

employees. Mr. Barron stated that WCLL interchanges with WCL and the

Baltimore and Ohio Chicago Terminal Railroad (B&OCT) (B. A. No. 1302).

In response to a request by the Board’s Audit and Compliance Section for

additional information regarding WCLL's subleasing of freight cars for hire.

Mr. Barron provided further information stating that "WCLL does not currently

receive any lease revenues from the subleasing of equipment."

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 subtitle IV of title 49. United States

Code;

Sections 1(a) and (l)(b) of the Railroad Unemployment Insurance Act (45 U.S.C.

§§351(a) and (b)) contain substantially similar definitions, as does section 3231

of the Railroad Retirement Tax Act (26 U.S.C. §3231).

In its decision regarding the employer status of Railroad Ventures. Inc. (B.C.D.

00-47), the Board held that an entity that has STB authority to operate a rail

line, but leases or contracts with another to operate the line in question, is 

covered under the Acts administered by the Board unless the Board

determines that the entity is not a carrier. The Board enunciated a three-part

test in B.C.D. 00-47 to be applied in making this determination. An entity that

leases a line to another company or contracts with another company to operate

the line is a carrier under the Railroad Retirement Act unless the Board finds

that all three of the following factors exist: 1) the entity does not have as a
-JWisconsin Chicago Link, Ltd. (WCLL)

primary business purpose to profit from railroad activities; 2) the entity does

not operate or retain the capacity to operate the rail line; and 3) the operator of

the rail line is already covered or would be found to be covered under the Acts

administered by the Board.

Applying this test to the facts of WCLL, the Board determines that WCLL is a 

covered rail carrier employer under the Acts. WCLL is a wholly owned

subsidiary of Wisconsin Central Transportation Corporation, which is the

parent company of Wisconsin Central Ltd. (BA No. 2633). We noted in our

decision in B.C.D. No. 00-47 that an entity that is affiliated through common

ownership with other for profit carriers will be presumed to have as a primary

business purpose to profit from the ownership of the line. We do not have to

reach the other two considerations since all three need to be present to remain

outside the coverage of the RRA and the RUIA.

Accordingly, the Board finds that WCLL became a rail carrier employer under

section l(a)(l)(i) of the RRA and the corresponding sections of the RUIA

beginning November 10, 1999, the date it commenced operations.

V. M. Speakman, Jr.

'Jerome F. Kever