ANSWER OF SOUTHERN PACIFIC COMPANY TO COMPLAINT OF SHAW BROS. SAN FRANCISCo, June 12, 1893.

MR. J. V. KELLY, Secretary State Board of Railroad Commissioners, City: DEAR SIR: Referring to complaint of Messrs. Shaw Brothers, of Raymond, Cal., dated January 26, 1893, copy of which was referred to this office for consideration.

After looking into the matter carefully we find that it stands as follows:

The rate on wood from Raymond and Herbert to Fresno, distance 49 miles, is $1 50 per ton, or $15 per car of ten tons or seven cords, whichever measure gives our patrons benefit of lowest rate. Messrs. Shaw Bros.' information that parties on the Porterville branch ship almost double the distance at less rate to Fresno is erroneous.

.

The rate from Exeter to Fresno, distance 52 miles, is $1 50 per ton, same as from Raymond and Herbert. From Kaweah, a point on the same branch, 48 miles distant from Fresno, like rate is in effect. From Sanger Junction, a point 14 miles distant from Fresno, rate of 80 cents per ton is in effect; thus from a point one third the distance the rate is over one half that of Raymond.

I trust that these figures show that the Raymond shippers are on an equality with other wood-shipping points in the vicinity of Fresno.

Concerning wood shipments to Merced: The rate from Raymond, distant 47 miles, is $1 80 per ton, or $18 per car of ten tons or seven cords. Under this rate 1,115 tons were shipped in 1892. The only other point of rail competition on this business is Arundel, 12 miles distant from Merced, which enjoys a rate of 90 cents per ton, under which rate, however, but 206 tons were shipped in 1892. Thus rates from other points evidently do not affect business.

We have recently, in accordance with the request of the farmers along the line of the Yosemite branch, reduced our grain rates to tide-water points as follows:

In carloads of not less than 20,000 pounds. Rates are in cents per 2,000 pounds.

* Add usual switching charge when consigned to Stockton wharf.

You are doubtless aware that business over the Yosemite branch is exceedingly light, but we are pleased to give all the encouragement and assistance in our power to traffic originating in that section.

We trust that this statement of facts as they stand will demonstrate the impropriety of future reducing rates.

Previous to change in the grain rates to the above figures, the tariff read as follows:

Filed in office of Railroad Commissioners, June 13, 1893.

JAS. V. KELLY,

Secretary.

COMPLAINT OF CUNNINGHAM & CO.

Before the Board of Railroad Commissioners of the State of California. CUNNINGHAM & COMPANY, Plaintiff,

VS.

SOUTHERN PACIFIC COMPANY, Defendant.

To the said Honorable Board:

Complaint.

The plaintiff, your petitioner herein, respectfully represents and shows:

I.

That during all the times herein mentioned said plaintiff was and now is a corporation duly organized and existing under the laws of the State of California, doing business as such and having its principal place of business in the city of Santa Cruz, county of Santa Cruz, and its officers and stockholders are all citizens of said State.

II.

That the defendant, the Southern Pacific Company, is a corporation duly and legally organized, acting and existing and doing business as a common carrier in the State of California, and is the owner and lessee of certain lines of railroad and operating the same within said State, from said city of Santa Cruz to Santa Margarita, in the county of San Luis Obispo, and all intermediate points.

III.

That the above named plaintiff since the year 1890 has been and now is engaged in the business of manufacturing, shipping, and selling lumber, the principal market whereof is in the counties of Santa Cruz, Monterey, and San Luis Obispo, along the line of defendant's railroads aforesaid.

IV.

That said defendant for more than two years last past has made and now makes unjust discrimination against plaintiff in freight charges for transportation of all lumber shipped by said plaintiff over the said railroads from the said city of Santa Cruz to said town of Santa Margarita and all intermediate stations. Which discrimination is in favor of shippers of lumber from other towns on the line of said railroad, viz., Capitola, Monte Vista, Loma Prieta, Aptos, and Pajaro, to said Santa Margarita and said intermediate points, as will more fully appear from the "table of distances and rates," which is hereunto annexed, marked "Exhibit A," and hereby made a part of this complaint.

V.

That in the vicinity of said Monte Vista, Loma Prieta, and Aptos there have been and now are large lumber mills and manufactories which have been and now are manufacturing for shipment and sale large quantities of lumber of a class and grade similar to that manufactured by plaintiff and with which plaintiff is compelled to compete in the market along the line of said railroad at all points between said Monte Vista and said Santa Margarita and all intervening points between said last named places.

And for further and separate cause of complaint against said defendant, said plaintiff avers, alleges, and complains as follows, to wit:

I.

That during all the times herein mentioned said plaintiff was and now is a corporation, duly organized and existing under the laws of the State of California, doing business as such, and having its principal place of business in the city of Santa Cruz, county of Santa Cruz, and its officers and stockholders are all citizens of said State.

II.

That the defendant, the Southern Pacific Company, is a corporation duly and legally organized, acting and existing and doing business as a common carrier in the State of California, and is the owner and lessee of certain lines of railroad, and operating the same within said State from said city of Santa Cruz to Santa Margarita, in the county of San Luis Obispo, and all intermediate points.

III.

That the above named plaintiff, since the year 1890, has been and now is engaged in the business of manufacturing, shipping, and selling lumber, the principal market whereof is in the counties of Santa Cruz, Monterey, and San Luis Obispo, along the line of defendant's railroads aforesaid.

IV.

That the rates charged by the said defendant for the transportation of lumber and planing-mill products over the lines of its said railroads from the city of Santa Cruz to the town of Santa Margarita, on the line of said railroad, and to all points on the line of said road between said city of Santa Cruz and said town of Santa Margarita, are excessive and unjust, and that according to the information and belief of this plaintiff the said rates should be thoroughly revised, and should be reduced not less than 33 per cent upon the existing rates.

And plaintiff further represents that all of the witnesses to be produced in this behalf upon the hearing of this complaint reside at said city of Santa Cruz, and it would work a great hardship and inconvenience, and will entail a great expense, both upon them and the plaintiff, to be required to testify before your honorable Board at any place other than in said city of Santa Cruz.

Wherefore this plaintiff prays—

First-That the rates of freight on lumber shipments from said city of Santa Cruz to all points on the said railroad of defendant, between said city of Santa Cruz and said town of Santa Margarita, be reduced 75 cents per thousand feet, so as to equalize the rates and correct the discriminations against shippers from the said city of Santa Cruz, and thereby enable this plaintiff to fairly and justly compete in the market aforesaid.

Second-That your honorable body cause to be revised the freight rates upon lumber and planing-mill products from said city of Santa Cruz to said town of Santa Margarita and all intermediate points, and that such rates be reduced not less than 33 per cent upon the said existing rates.

Third-That this complaint and the prayer thereof be heard and determined by your honorable body without unreasonable delay, and that such hearing be had at the said city of Santa Cruz, and for such other and further relief as may be just and equitable.

STATE OF CALIFORNIA,

County of Santa Cruz.

SS.

JAMES O. WANZER,
BART BURKE,

Attorneys for said Plaintiff.

James F. Cunningham, being duly sworn, deposes and says that he is the President of the corporation, Cunningham & Co., the plaintiff named in the foregoing complaint; that he has heard said complaint read and knows the contents thereof; that the same is true of his own knowledge, except the matters therein stated upon information or belief, and that as to those matters be believes the same to be true.

J. F. CUNNINGHAM.

Subscribed and sworn to before me, this tenth day of October, 1893.

[SEAL.]

JAMES O. WANZER,

Notary Public in and for said Santa Cruz County.