B.C.D. 01-51

JUN 0 4 2001

EMPLOYER STATUS DETERMINATION

Lapeer Industrial Railroad Company

Detroit Connecting Railroad Company

Charlotte Southern Railroad Company

This is the determination of the Railroad Retirement Board concerning 

the status of Lapeer Industrial Railroad Company, Detroit Connecting

Railroad Company, and Charlotte Southern Railroad Company as

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

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

sea).

Information regarding these companies was provided by Kenneth J.

Bisdorf, counsel for and part owner of the three companies. According

to Mr. Bisdorf, the Adrian & Blissfield Railroad Company, a covered

employer under the Acts (B.A. No. 3288), was formed in 1991 to operate

the rail lines owned by the state of Michigan located in Lenawee 

County. In late 1998 and in 1999, the Adrian & Blissfield acquired

three separate lines of railroad from the Grand Trunk Western Railroad

Incorporated, a covered employer under the Acts (B.A. No. 1208):

“Dequindre Line,” 2.27 miles, acquired December 22, 1998, Surface 

Transportation Board Finance Docket Number 33692; “Charlotte Line,”

3.22 miles, acquired February 23, 1999, STB Finance Docket Number

33718; “Lapeer Lines,” 1.38 miles, acquired June 9, 1999, STB Finance

Docket Number 33747.

In the first week of October 2000, Dequindre Line, Charlotte Line, and

Lapeer Lines were incorporated as Detroit Connecting Railroad

Company (STB Finance Docket Number 33937), Charlotte Southern

Railroad Company (STB Finance Docket Number 33937), and Lapeer

Industrial Railroad Company (STB Finance Docket Number 33936),

respectively, to run the lines.

BA# 2277
-2-

Lapeer Industrial Railroad Company

Detroit Connecting Railroad Company

Charlotte Southern Railroad Company

The three companies are in process of being reorganized to be owned by

Michigan Short Lines, Inc.1, which will be owned by the same

individuals who currently own the three companies2. According to 

Mr. Bisdorf, none of the three companies has any employees. All of the

personnel required for operations are leased from the Adrian &

Blissfield, which will also be owned by Michigan Short Lines, Inc. The 

three lines all interchange with the Grand Trunk Western Railroad.

The Dequindre Line, Charlotte Line, and Lapeer Lines commenced

operations December 23, 1998, June 10, 1999, and February 24, 1999,

respectively. The beginning dates of operations preceded incorporation

of the companies, when those operations were performed as part of 

Adrian & Blissfield. 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 1(b) of the Railroad Unemployment Insurance Act (45

U.S.C. §§ 351(a) and (b)) contain substantially the same definition, as

does section 3231 of the Railroad Retirement Tax Act (26 U.S.C. S

3231).

Based on the information summarized above, the Board therefore finds

that the three companies became rail carrier employers under section

1

2

Currently being investigated by Audit & Compliance.

Kenneth J. Bisdorf, Gabriel D. Hall, Myles E. Paisley, Dale R. Pape, Arthur W. Single, and I. Howard Smith.
Lapeer Industrial Railroad Company

Detroit Connecting Railroad Company

Charlotte Southern Railroad Company

l(a)(l)(i) of the Railroad Retirement Act and the corresponding sections

of the Railroad Unemployment Insurance Act beginning October 1,

2000, the first day of the week the three companies were incorporated.

V. M. Speakman, Jr.