SALEM, WINONA & SOUTHERN RAILROAD. The Missouri Lumber & Mining Company owns about 19 miles of track connecting with the Frisco at a point known as Winona Junction, Mo., and extending in a northerly direction to a point known as Horse Hollow. It also owns 2 locomotives, 2 coaches, a caboose, 2 box cars, and 50 flat cars. About 13 miles of the track, from Winona Junction to a point known as West Eminence, and all of the equipment are leased by the lumber company to a separate corporation which it caused to be incorporated in 1908, and which is owned by its stockholders, known as the Salem, Winona & Southern Railroad Company. The annual rental is $12,000, or about 8 per cent on the estimated value of the property. The lease in terms apparently does not cover the 6 miles of track between West Eminence and Horse Hollow, but the tap line also operates that portion of the track. The entire line was originally constructed by the lumber company as a facility for its mill, then located at Grandin, Mo., on what is now the Current River branch of the Frisco, over which the lumber company had trackage rights for its logging trains. The plant at Gran-din was subsequently abandoned and the lumber company built a new mill at West Eminence. The tap line enjoys trackage rights over the Frisco for a distance of about two and a half miles between Winona Junction and Winona. There is a small station building and track scales at West Eminence.

The lumber company loads the logs on the cars and with engines which it owns and operates hauls them over the track from Horse Hollow to the mill at West Eminence. The tap line moves no logs to the mill. It hauls the lumber from the mill to Winona, a distance of over 15 miles, where it delivers them to the Frisco, which allows a division of from 1 to 4 cents per 100 pounds. On shipments that move to points where no joint rates and divisions are published the tap line makes a charge of 4 cents per 100 pounds in addition to the rate of the Frisco from Winona.

The tap line moved 53,101 tons of forest products of the proprietary company during the fiscal year 1910 and 3,006 tons for others. It is stated that there is one small independent mill on the line and another about three miles from Horse Hollow, which teams its lumber to that point for shipment. The miscellaneous freight included 5,310 tons supplied by the controlling company and 3,145 tons which is said to have been furnished by outsiders. It will be seen therefore that, the proprietary company furnishes nearly 90 per cent of the traffic. During the same year the passenger earnings aggregated $5,302.49 and the receipts from the carrying of the mails were $822.86. The tap line claims to run two "mixed trains" daily, in each direction on a regular schedule, their principal load being lumber.

It is admitted on the record that the tap line was incorporated for the purpose of securing divisions out of the rates and trackage rights from the Frisco. It has capital stock amounting to $150,000; but the tap line owns neither track, right of way, nor equipment, and the record does not state what proceeds, if any, were realized from the issuance of the stock.

In this case we find that any division to the tap line out of the rate on the products of the mill of the proprietary lumber company in excess of 1-1 cents per 100 pounds would be unlawful.