This is a determination of the Railroad Retirement
Board concerning the continued status of Central of Tennessee Railway &
Navigation Company, Inc. d/b/a the Longhorn Railway Company (CTR) (B.A.
No. 5550) 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 CTR was provided by Mr. Donald T. Cheatham, owner
and legal counsel for CTR. According to Mr. Cheatham, CTR formerly
provided rail service in the states of Tennessee and Texas. In Board
Coverage Decision (B.C.D.) 01-41 dated May 10, 2001, we noted that CTR
formerly operated approximately 162 miles of rail line that was owned by
Capital Metropolitan Transportation Authority (CMTA)1.
Mr. Cheatham stated that because CMTA terminated CTR’s operating contract,
CTR last compensated its employees and ceased its rail operations in Texas
and Tennessee on March 31, 2000 and August 1, 2000 respectively. Mr.
Cheatham stated that CTR had no assets other than the operation’s
contracts. Mr. Cheatham further stated that the proceeds from the sale of
CTR’s Tennessee operation were assigned to the Internal Revenue Service
which applied the proceeds to the taxes due under the Railroad Retirement
Tax Act.
Section 202.11 (20 CFR 202.11) of the Board’s regulations states: |
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.
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The evidence of record
establishes that Central of Tennessee Railway & Navigation Company, Inc
d/b/a The Longhorn Railway Company no longer possesses the characteristics
of an operating railroad. Therefore, effective August 1, 2000, the last
date it compensated its employees and ceased rail operations, Central of
Tennessee Railway & Navigation Company, Inc d/b/a The Longhorn Railway
Company ceased to be an employer under the Railroad Retirement Act and the
Railroad Unemployment Insurance Act.
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