TRINITY VALLEY & NORTHERN RAILWAY. The Trinity Valley & Northern Railway Company was incorporated in 1906, with a capital stock of $25,000, which is held by the stockholders of the Dayton Lumber Company. The tap line is indebted to that company in a sum exceeding $60,000, upon which interest, at the rate of 8 per cent, is unpaid.

The tap line extends from a connection with the Texas & New Orleans Railroad at Dayton, Tex., in a northeasterly direction to Fouts, a distance of 10 miles. There is also an extension of about 8 miles from Fouts which was not yet in operation by the tap line at the time of the hearing, but over which the lumber company was running logging trains. The tap line connects at Fullerton with the Beaumont, Sour Lake & Western, a part of the Frisco system. The equipment consists of 1 locomotive, 1 passenger coach, 7 box and 8 flat cars. Two mixed freight and passenger trains move daily in each direction. The passenger, mail, and express revenue for the year 1910 was $2,642.70, and of its freight revenue about 10 per cent accrued on traffic supplied by others than the proprietary company.

The mill is at Ladd, about 1 mile from the Texas & New Orleans and nearly 5 miles from the Frisco. The lumber company hauls the logs to the mill over unincorporated tracks that are laid and maintained for it and at its expense by the tap line and over a portion of the incorporated line' under a trackage right for which it pays the tap line $1 per train-mile. The tap line moves the carloads of lumber from the mill to the Texas & New Orleans, a distance of less than a mile, or 5 miles to the Frisco. Divisions are allowed by both trunk lines, the average being about 2-1/2 cents per 100 pounds. This was so stated on the hearing.

The lumber company moved to its mill during the year 1910 about 32,000 tons of logs and shipped out about 20,000 tons of lumber. About 8,000 tons of ties, stave bolts, and wood were handled for outside shippers during the same period, as is claimed. There are no other mills on the tap line, although there are one or two tie camps and a few farms.

The tap line makes annual reports to the Commission, from which it appears that on June 30, 1910, there was an accumulated surplus of $4,886.08.

In this case we think that, with respect to the products of the mill of the lumber company, any division out of the rate to the tap line in excess of 1 cent per 100 pounds would be unlawful. We fix that as the maximum.