ARKANSAS SOUTHEASTERN RAILROAD. The Arkansas Southeastern Railroad serves the mill of the Summit Lumber Company at Randolph, La., a point on the Rock Island, which passes within 150 yards of the plant. The track is laid from Randolph in a southeasterly direction for about 28 miles, to Farmerville, where a connection is made with the Iron Mountain. At a point 17 miles from the mill known as McKay an unincorporated logging road of the Summit Lumber Company connects with the tap line and on those tracks the lumber company operates logging trains, using three locomotives. The tap line itself has 2 locomotives, a combination passenger car, 18 flat cars, and 73 logging cars. The tap line was constructed by the lumber company several years before its incorporation, in 1904, which is admitted to have taken place for the purpose of obtaining divisions of through rates. The record indicates certain changes shortly prior to the hearing in the ownership of a majority of the stock of the tap line. Our understanding, however, is that the ownership of the tap line is vested in persons who are directly interested in the mill at Randolph, which it serves. In other words, the mill and tap line are still to all intents and purposes one and the same investment.

The Summit Lumber Company loads the logs on the cars and moves them with its equipment over the unincorporated tracks to the junction with the tap line; and the tap line hauls the logs to the mill without charge. The lumber is switched by the tap line from the mill to the junction, a distance of three-quarters of a mile. The Rock Island allows from 1 to 4 cents per 100 pounds out of the rates on lumber. For the year ending June 30, 1910, the shipments of the Summit Lumber Company aggregated 70,702 tons, while the traffic of outsiders was 2,469 tons. There is a small hardwood mill owned by W. F. Usrey & Company, which purchases its logs from the Summit Lumber Company; there are also a small yellow-pine mill and stave mill which use the tap line. One mixed train is run in each direction daily on which a few passengers are carried. The revenue from that source for the year 1910, however, was only $778.90. The lumber company furnishes 96 per cent of the traffic of the tap line.

This mill is within 150 yards of the Rock Island rails, and we hold that no allowance out of the rate may lawfully be made by the Rock Island. On lumber delivered by the tap line to the Iron Mountain at Farmerville a division of 2 cents may be paid to the tap line.