In discharge of the duty imposed upon us by Section 28. of the Act of the Legislature of the State of Arkansas, creating the Railroad Commission, which directs that the Commissioners shall make to the Governor annual reports of the transactions of their office, we, the undersigned, the Railroad Commissioners of Arkansas, respectfully make this report of our acts and doings for the year ending December 31, 1904.

During the year the railroads have enjoyed a large share of prosperity. In another division of this report will be found the figures relating to the operation of the railroads of this State. The returns have been compiled in this office, and are presented in tables conveniently arranged for inspection.

Construction of new railroads which has been going on

in the State for the last five years continues. During the year work has been progressing on the White River Branch of the St. Louis, Iron Mountain & Southern Railway, which is now operated to Yellville, Ark., a point 107 miles north of Batesville. This line is building northwest to Carthage, Missouri, and it is expected will be operating trains from Carthage, Missouri, to Batesville, Arkansas, by January 1, 1906. The Iron Mountain is constructing a line from Memphis down the west side of the Mississippi River to a connection with the Texas & Pacific Railway in Louisiana. This line is now in operation from Watson, Arkansas, in Desha County, south, and our next report will doubtless report the completion and operation of the entire line.

The Rock Island has completed its Searcy Branch, building from a point on its main line near DeVall Bluff, Arkansas, to Des Arc. This gives railroad facilities to a productive country along its entire length, a distance of some forty miles.

We report the first time this year the Midland Valley Railroad, which operates twenty-six miles of line, in the western portion of the State. This line is a large coal carrier. We understand that coal is being mined and shipped in large quantities at every station. It has physical connection with the Iron Mountain, the Frisco and the Rock Island Systems, and is destined, we think, though a short line, to have a large and paying business.

A road is now projected from a connection with the Arkansas Southwestern Railroad in the southwest part of the State to Fort Smith. This will open a large territory for settlement and occupation.

There is now good prospect for a new road from the north, and the lumber companies are extending their lumber roads to the interior.

Everything considered, our railroad situation and prospect is very encouraging.

The Commission has used all of its power and influence to establish and maintain equitable rates between the railroads and the shippers, and in all of its rulings and decisions has endeavored to be just and fair to all interests.

In one instance it has been necessary to pass upon a question where it was believed that a decision favorable to the complainant would be prejudicial to the interest of many other portions of the State. On account of certain alleged