LIBERTY-WHITE RAILROAD. The entire capital stock of the Liberty-White Railroad Company, of which $300,600 has been issued, is owned by the stockholders of the J. J. White Lumber Company, the shares in the two corporations being held in substantially the same proportions. Their officers are practically identical; and the tap line owes the lumber company or its president ti bout $134,000.

Prior to 1880 a narrow-gauge logging road was laid from McComb, Miss., westward into the timber. When the land was all cut over the track was about to be abandoned and taken up when the citizens of the town of Liberty induced the owners to change the location of the tracks and build into that point. Such is the statement on the record. The tap line was incorporated in December, 1902, and then took over the tracks already laid and in operation, the narrow-gauge line being changed to standard gauge. As incorporated the operation did not begin until June, 1904. In 1907 about 9 miles of track were built eastward from McComb to a point known as New Holmesville. The line now in operation, as described on the record, connects with the Illinois Central at McComb, extending from that point westward about 24 miles to Liberty, and also extending eastward from McComb for 9 miles to New Holmesville. The tap line also operates under a trackage agreement, at a rental of $300 per month, an unincorporated track 10 miles in length connecting with its main line at a point between McComb and Liberty known as Irene, and running southward a distance of 10 miles to Keith. The equipment consists of 5 locomotives, a mail and baggage car, 6 passenger cars, 1 passenger motor car, 2 cabooses, 4 tank cars, and 14 box cars. There are station buildings at a number of points on the line, costing from $1,500 to $2,500 each. The tap line has a train master, roadmaster, 6 station agents, 12 enginemen, 10 trainmen, and several crews of trackmen. It is said that none of its employees are in the service of the lumber company. Two passenger trains and two logging trains run daily between McComb and Liberty; and there is one daily " mixed train" running eastward from McComb to New Holmesville and return. The passenger revenues for the year 1910 aggregated $15,190.39; the receipts from express matter were $686.51, and for the carriage of the mails $1,437.08. The freight earnings for the same year amounted to $94,766.57. The principal traffic was forests products, of which there were 127,214 tons out of a total freight movement of 137,789 tons. The proprietary company contributed 89,514 tons of the forest products, and 37,700 tons of such commodities are said to have been shipped by others. It will be observed therefore that there is a substantial tonnage in which the proprietary company is not directly interested.

The mill is near the tracks of the Illinois Central in McComb, and that company customarily places the empty cars at the loading plat-form and moves the shipments therefrom. The tap line occasionally switches a car from the mill, a distance of about 600 feet. The logs are loaded by the lumber company, and the cars are moved by it to the junction of the logging spurs with the main line; from that point they are taken by the tap line to the mill, for which a charge of $5 per car is made against the lumber company. The through rates on lumber from points on the tap line are 2 cents per 100 pounds higher than the Illinois Central rate from McComb. The tap line is allowed 4 cents per 100 pounds, or 2 cents in addition to the arbitrary. From the mill of the proprietary company the rate applied does not include the arbitrary of 2 cents, and the tap line receives on such traffic a division of 2 cents per 100 pounds.

We, hold on the facts appearing here that any allowance out of the rate on the products of the mill of the proprietary company is unlawful.