B.C.D. 01-1

Employer Status Determination JAN 0 5 2001

Carload Express, Inc.

This is the decision of the Railroad Retirement Board regarding the status of 

Carload Express, Inc. (CEI) 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).

Information regarding the activities of CEI was provided by Mr. Russell A.

Peterson, President of CEI. Effective January 1, 2000, CEI began providing

transportation and logistics management services to several rail carriers. CEI

manages the Allegheny Valley Railroad Company (BA 2266), Camp Chase

Industrial Railroad Company (BA 3387), and Southwest Pennsylvania Railroad

Company (BA 2364).

In addition, prior to January 1, 2000, Carload Express was named Trimax

Holdings, Inc. and was a New Hampshire corporation that provided financial

services, held investments in securities and real estate and leased equipment.

Effective January 1, 2000, Carload Express, a Pennsylvania corporation,

became common paymaster and manager of the railroads listed above and the

officers of the railroads became employees of Carload Express. Prior to

January 1, 2000, the railroads listed above employed their own railroad officers. 

Mr. Peterson owns 100% of CEI, 50% of Allegheny Valley, 100% of Camp Chase, 

and 4% of Southwest Pennsylvania. CEI owns 96% of Southwest Pennsylvania

and 50% of Allegheny Valley. Mr. Peterson is the President of CEI and all 3

railroads. He also serves as Treasurer and Secretary of CEI and Allegheny

Valley.

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;

(ii) any company which is directly or indirectly owned

or controlled by, or under common control with, one

or more employers as defined in paragraph (i) of this

subdivision, and which operates any equipment or

facility or performs any service (except trucking

service, casual service, and the casual operation of

BA# 9244
-2-

Carload Express, Inc.

equipment or facilities) in connection with the

transportation of passengers or property by railroad

* * * [45 U.S.C. §231(a)(l)(i) and (ii)].

Sections 1(a) and 1(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 (RRTA) (26 U.S.C. §3231).

CEI is clearly not a carrier by rail. However, through the common ownership of

Mr. Peterson, it is clearly under common ownership and control with the rail

carriers listed above. Its coverage under the Acts, therefore turns on whether it

provides a service in connection with rail transportation. CEI provides 

management and logistics services to its affiliated railroads. This is a service in 

connection with the transportation of passengers or freight by rail. See Adams v.

Railroad Retirement Board. 214 F.2d 534 ((9th Cir. 1954), where the Court held 

that the provision of accounting services can be considered to be a service in

connection with transportation by rail. Since CEI is providing management and

logistics services and acts as paymaster for its rail affiliates, the Board finds that

CEI provides service in connection with rail transportation.

The Board finds that Carload Express, Inc. became an employer under the

Railroad Retirement and Railroad Unemployment Insurance Acts effective

Januaiy 1, 2000, when it first began providing services to its affiliated railroads.

CherryrT. Thomas

ferome F. Kever