GRAIN RATES.

I presume the first and most important item affecting the interests of Porterville, is the grain rate. From the tariff inclosed, it appears that the rate on grain, carloads, from Porterville to Port Costa, two hundred and forty-three miles, is $4 25 per ton, being the same rate per mile as charged from points on the main line for like distances to Port Costa. Instead of being a discrimination," therefore, the rates are practical y mo favorable to the Porterville shippers than to main line shippers, because it is a well known fact in transportation that it costs more to handle a limited amount of tonnage on a branch line than it does a larger volume of business on a trunk line.

The rate of $4 25 per ton, Porterville to Port Costa, is only 1.7 cents per ton per mile, which I think cannot be called excessive or unreasonable. If the road between Porterville and Fresno had been built and operated by an independent company, no such rates as are now in force would have been possible, or could have been secured by the producers at Porterville.

LIVE STOCK RATES.

The rate on cattle, in carloads, from Porterville to San Francisco, two hundred and sixty-four miles, is $52 50, which, considering that Porterville in on a branch, compares favorably with Delano, a main line point, and approximately the same distance from San Francisco, from which the rate is $49 50.

The rate on sheep, in carloads, from Porterville to San Francisco, is $47 50, and from Delano, $44 30.

GENERAL MERCHANDISE RATES.

Our rates on merchandise between Porterville and San Francisco are just and reasonable.

Rates on general merchandise, such as whisky, tobacco, tea, dry goods, etc., are, between Porterville and San Francisco, $1 12 per one hundred pounds, being the same rate as Delano on main line, approximately the same distance.

In view of the fact that the Fresno branch is comparatively a new road, which has created and made valuable lands which, previous to building the road, were of little value, 1 am much surprised that any complaint should be laid before your honorable body. I am sure, on looking into the facts, you will conclude that our rates are just and reasonable, and if you have time to go into all the facts, will admit that the capital invested in the Fresno Division has never received a fair return.

Yours truly,

RICHARD GRAY.

PORTERVILLE, TULARE COUNTY, CAL.,
February 5, 1891.

Pursuant to adjournment, the Board met at Porterville at 11 o'clock

A. M.

Commissioner Rea stated that the object of the meeting was to hear complaints of the people of Porterville and vicinity against the Southern Pacific Company; also, that the complaints on file from Porterville were informal, not being sworn to; but as Mr. Smurr, representing the Southern Pacific Railroad Company, was present, he would consider the proceedings legal and formal. Sixteen witnesses were sworn and testified.

Commissioner Litchfield offered the following resolution:

WHEREAS, At a meeting of this Board held at Porterville, February 5, 1891, to listen to complaints against the Southern Pacific Company, it appearing by the evidence of some of the complainants that most of the causes of complaint had been remedied by the Southern Pacific Company since the above named complaints had been filed with this Board and the railway company had been informed of the complaints; and whereas, the evidence of lack of transportation facilities, loss of grain in shipment, and evidence of other irritating circumstances having been called to the attention of the railroad officials, said railroad officials having already remedied a number, and are now making arrangements to speedily remove all just causes of complaint along the line of the said railroad; and whereas, the complaint from the citizens of Porterville and vicinity, at a meeting of this Board at the above named place, bringing out and listening to the evidence of all complaints, has already redounded to the great benefit of the citizens along the line of said railroad; now, therefore, be it

Resolved, That it is the duty of this Board to visit the different shipping points of the State, examine into the management of the railroads, notify the citizens in the town and surrounding country to appear before our Board with any complaints and grievances

they may have to offer, and that this Board take such steps as may be necessary to remove all just cause of complaint.

Resolved, That the Chairman and Secretary of this Board lay out a route, designate stopping places, dates of stoppages, and notify the citizens along the road of our meetings and the object of such meetings.

The above resolutions were seconded by Commissioner Beckman. Commissioner Rea offered the following resolution as a substitute:

Resolved, That the Southern Pacific Company be required to show cause why its freight rates to and from points on its Fresno Division, commonly known as the Porterville branch, should not be revised, with a view to modification, on the basis charged to other communities similarly situated.

The resolution offered by Commissioner Litchfield was adopted. Commissioners Litchfield and Beckman voting in the affirmative, and Commissioner Rea voting in the negative.

Commissioner Rea's resolution was taken up and adopted unanimously.

Commissioner Rea submitted his report on the new schedule for the Porterville branch of the Southern Pacific Company, and wished to embody the following paragraph in the report:

It is also understood that with this schedule the switching charges are to be removed.

Rejected.

Upon motion of Commissioner Beckman, the schedule for freights upon the Porterville branch of the Southern Pacific Company, as submitted by Commissioner Rea, was adopted unanimously, and the Secretary was instructed to serve the same upon the officers of the Southern Pacific Company at once.

STATEMENT OF EXPENSES AND EARNINGS OF PORTERVILLE BRANCH. Porterville branch investment..

$1,575,000 00

Filed in office of Railroad Commissioners, March 12, 1891.

70,219 32 $148,969 32

85,311 25 $63,658 07

JAS. V. KELLY,

Secretary.

Pursuant to a resolution adopted by this Board at its regular meeting held in San Francisco, Cal., February 12, 1891, the following decision was unanimously adopted:

DECISION OF THE BOARD.

Before the Board of Railroad Commissioners of the State of California.

The above case was called, and argument having been made before this Board in defense of said Southern Pacific Railroad Company's present rates, and full and fair consideration given same, it is now ordered that the rates as per Schedules "A,” “B,” “C.” and D," annexed, be substituted for those now in use or force; same to take effect not later than fifteen days from date.

JAS. W. REA, President,
WM. BECKMAN,
J. M. LITCHFIELD,

Filed in office of Railroad Commissioners, March 30, 1891.

Commissioners.

JAMES V. KELLY,
Secretary.

SCHEDULE A.

PROPOSED SPECIAL LIVE STOCK AND WOOL TARIFF RATES.

Live Stock.-Rates in dollars and cents per car; to be loaded and unloaded by owner. Shipped under special live stock contract." Wool.-In carload lots, rates in cents per 2,000 pounds. In less than carload lots, rates in cents per 100 pounds.

NOTE. In each case where two rates are given, the top figures show old rate. Rates are in cents per ton of 2,000 pounds.