B.C.D. 04-45

SEP 1 7 2DD4

EMPLOYER STATUS DETERMINATION

Allegheny & Eastern Railroad, Inc. (B.A. No. 2254)

Bradford Industrial Rail, Inc. (B.A. No. 2259)

Buffalo & Pittsburgh Railroad, Inc. (B.A. No. 2249)

Pittsburgh & Shawmut Railroad, Inc. (B.A. No. 2270)

Allegheny & Eastern Railroad, LLC

Pittsburgh & Shawmut Railroad, LLC

This is the determination of the Railroad Retirement Board concerning the 

continuing status of the following employers covered 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 sea.KRUl A): Allegheny

& Eastern Railroad, Inc. (AERI) (BA No. 2254), Bradford Industrial Railroad,

Inc. (BIRI) (BA No. 2259), Buffalo & Piftsburgh Railroad, Inc. (BPRI) (BA No.

2249), and Pittsburgh & Shawmut Railroad, Inc. (PSRI) (BA No. 2270).

Coverage under the Acts began on November 25, 1992 for AERI, May 5,

1993 for BIRI, July 19, 1988 for BPRI, and April 27, 1996 for PSRI.

Allegheny & Eastern Railroad, LLC (AER/LLC) and Pittsburgh & Shawmut

Railroad, LLC (PSR/LLC) have not heretofore been determined to be

employers covered under the RRA and RUIA. This determination also

concerns the employer status of AER/LLC and PSR/LLC.

According to Mr. Scott F. Ziegler, Vice President, Operational Finance,

Genesee and Wyoming, Inc. (GWI) (B.A. No. 2639), AERI, BIRI, BPRI and

PSRI, all wholly owned subsidiaries of GWI, merged on January 1,2004,

and BPRI was the surviving corporation. All employees of the aforesaid

subsidiaries become employees of BPRI and, as a consequence of the 

merger, AERI, BIRI and PSRI ceased to exist as of January 1,2004. The

Surface Transportation Board (STB) authority for exemption of this merger is

set forth at STB Finance Docket No. 34447, decided January 15, 2004.

In two related transactions, STB exemptions for which were filed

concurrently with the merger, AER/LLC and PSR/LLC, newly formed limited 

liability corporations, became wholly owned subsidiaries of BPRI and

acquired all of the non-real estate track-related property of BPRI. BPRI

continues to own all of the real property, engines and rolling stock.

Neither AER/LLC nor PSR/LLC have any employees or provide any railroad 

services. The function of AER/LLC and PSR/LLC, as holders of the track

assets of BPRI, is strictly for certain favorable funding arrangements. See

STB Finance Docket Nos. 34448 and 34449, decided January 15, 2004.
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Section 202.11 of the Board's regulations provides that:

The employer status of any company or person shall terminate

whenever such company or person loses any of the characteristics

essential to the existence of an employer status.

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 [45 U.S.C.§ 231 (a)(1)(i)].

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 equipment or facilities) in connection

with the transportation of passengers or property by railroad,

or the receipt, delivery, elevation, transfer in transit,

refrigeration or icing, storage, or handling of property

transported by railroad * * *.

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. 3231).

In view of the foregoing, it is the determination of the Railroad Retirement 

Board that Allegheny & Eastern Railroad, Inc., Bradford Industrial Rail, Inc.

and Pittsburgh & Shawmut Railroad, Inc. are terminated from coverage as

employers under the RRA and RUIA effective January 1,2004, the date

upon which each one merged into the Buffalo & Pittsburgh Railroad, Inc.

and, thereby, ceased to exist. The Buffalo & Pittsburgh Railroad, Inc.

remains an employer under the Acts.
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It is also the determination of the Railroad Retirement Board that

Allegheny & Eastern Railroad, LLC and Pittsburgh & Shawmut Railroad, LLC

are not employers covered under the RRA and RUIA because, in

accordance with the definition of a covered employer under subsection 

(ii) of section 1(a)(1) of the RRA, they do not provide any service in

connection with railroad transportation, but simply hold title to certain

assets for favorable funding arrangements.