NACOGDOCHES & SOUTHEASTERN RAILROAD. The Nacogdoches & Southeastern Railroad is one of the tap lines of the Frost-Johnson Lumber Company, having been acquired by that company in 1910, when it purchased the mill of the Hayward Lumber Company, at Hayward, Tex. The tap line was incorporated in 1904 and has capital outstanding to the amount of $245,400, which is in the hands of the stockholders of the Frost-Johnson Company. The track connects with the Texas & New Orleans Railroad at Hayward and extends through the timber to a point known in the record as Woden. Since the hearing an additional mile of the track has been put in operation westbound, from Hayward to Nacogdoches, and connection thus effected with the Houston East & West Texas. The entire length of the track operated, including sidings, is about 17 miles. It has 2 locomotives, 1 combination passenger car, 8 freight cars, and 54 logging cars. In addition to the tracks described, the lumber company has 15 miles of unincorporated logging spurs, on which it operates 1 locomotive that it owns and 1 leased from the tap line.

The tap line runs one train daily in each direction and carries a few passengers, its revenue from that source during 1910 being $322. The logs are hauled to the mill by the lumber company, which enjoys trackage rights for that purpose over the tap line, a yearly rental of $1,000 or $1,500 being paid to the tap line. The tap line switches the cars for lumber shipments for a distance of about one-quarter of a mile to the Texas & New Orleans or about one and a quarter miles to the Houston East & West Texas. There is one other small sawmill on the line the lumber traffic of which is hauled a distance of about 10 miles by the tap line, but more than 93 per cent of the lumber traffic for the year 1910 was handled for the Frost-Johnson Company, which supplied 88 per cent of the entire tonnage of the tap line, in addition to using the tracks for its own logging trains.

No allowance may be made out of the rate by the Texas & New Orleans on the products of the mill of the controlling company, which, as stated, is within a few hundred feet of its rails. For switching the products of the mill to its rails at Nacogdoches the Houston East & West Texas may allow the tap line out of the rate a reasonable switching charge, which we fix at $1.50 a car.