B.C.D. 02-25 MAR 2 5 2002

EMPLOYER STATUS DETERMINATION

WTTN. LLC d/b/a West Tennessee Railroad

This is a determination ofthe Railroad Retirement Board concerning the status of

WTNN, LLC, d/b/a West Tennessee Railroad, as an employer under the Railroad

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

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

In Surface Transportation Board (STB) Finance Docket No. 34039, decided

August 9, 2001, WTNN, LLC, filed a verified notice of exemption to lease and

operate, pursuant to an agreement with Norfolk Southern Railway Company (BA

No. 1525), approximately 140.1 miles ofrail line. The rail lme runs from milepost

IC-406.1 at Fulton, Kentucky, to mile post IC-525.0, one mile north ofRuslor

Junction (Corinth), Mississippi. The subject rail line also includes the Bemis to

Poplar Comer, Tennessee branch lme from milepost GW-00.0 to GW-15.0, the

Jackson, Tennessee connection track from milepost Gh-0.0 to GH-2.2, and the

Lawrence and Carroll, Tennessee branch lme from milepost MM-388.5 to MM394.5, as well as associated tracks and spurs. The decision noted that the

transaction was scheduled to be consummated on August 1,2001.

In Surface Transportation Board (STB) Finance Docket No. 34073, also decided

August 9, 2001, Henry G. Hohorst, Bmce Hohorst and Anthony M. Linn,

individuals, filed a verified notice of exemption to contmue in control of WTNN,

LLC, a New Jersey limited liability company, upon its succeeding to the operatmg

rights and responsibilities of West Tennessee Railroad Corp. (WTRC) (BA No.

2568).1

In response to an inquiry from the Chief ofthe Board’s Audit and Compliance

Section, the Board received the following information from Bruce Hohorst, part

owner and CEO of WTTN. According to Mr. Hohorst, WTNN, LCC is owned by

Bmce Hohorst, Henry Hohorst and Anthony Linn. WTNN, LCC began rail

operations on August 1, 2001 and employs 20 employees, having acquired 7

employees from WTRC. Mr. Hohorst further stated that WTTN, LCC is strictly a

freight operation and operates approximately 180 miles oftrack with interchanges

at Fulton, Kentucky, Hmnboldt, Tennessee, and Corinth, Mississippi.

' The Audit and Compliance Section ofthe Railroad Retirement Board is reviewing the continued status

ofWTRC as an employer under the RRA and the RUIA

BA# 5584
WTTN, LLC d/b/a West Tennessee Railroad

Section 1(a)(1) ofthe RRA (45 U.S.C. § 231(a)(1)), insofar as is relevant here,

defines a covered employer as :

(i) any earner by railroad subject to the jurisdiction ofthe 

Surface Transportation Board under part A ofsubtitle IV of Title 49

[45 U.S.C. §231(a)(l)(i)].

Sections 1(a) and (b) ofthe RUIA (45 U.S.C. §§ 351(a) and (b)) contain

substantially the same definition, as does section 3231 ofthe Railroad Retirement

Tax Act (26 U.S.C. § 3231).

The infonnation provided mdicates that WTTN, LLC is subject to STB jurisdiction

by virtue ofits operation over the approxunately 180 miles oftrack with

interchanges in Fulton, Kentucky, Humboldt, Tennessee, and Corinth, Mississippi.

Because WTTN, LLC falls within the definition of employer under section

l(a)(l)(i) ofthe RRA (45 U.S.C. § 231(a)(l)(i)) and the corresponding provision of

tire RUIA, the Board finds that WTTN, LCC became a rail carrier employer

effective August 1, 2001, the date on which it began start-up operations. [CfRev.

Rul. 82-100,1982-1 C.B. 155, wherein the IRS held that a company became an

employer under the Railroad Retirement Tax Act on the date it lured employees to 

perform functions directly related to carrier operations.]

:rome F. Kever