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diction of the parties and subject-matter. The voluntary appearance of the defendant is equivalent to personal service.

RULE VII.-The complaint must contain:

1. The names of the parties to the proceeding.

2. A statement of the cause of complaint, in ordinary and concise language, giving such particulars of time, place, and circumstances as may enable the defendant to answer the same intelligently.

3. A demand of the relief claimed.

RULE VIII.—The defendant may, within the time required in the summons to answer, object to the complaint upon the following grounds:

1. That it does not state facts sufficient to authorize the proceedings. 2. That it does not conform to the requirements of Section 9, Chapter 59, Statutes of 1880.

RULE IX. If the objection be sustained, the complainant may amend his complaint. If the objection be overruled, the defendant may answer the complaint.

RULE X.-The answer of the defendant may contain:

1. A general or specific denial of the allegations of the complaint controverted by him.

2. A statement of any new matter of defense or in mitigation or explanaation of the charges made in the complaint.

RULE XI.-The complainant may, upon service of the answer, object to the same as insufficient, and if the objection is sustained the defendant may amend his answer.

RULE XII.—The complaint, answer, and demurrer must be subscribed by the party, his authorized agent, or attorney. The complaint and answer must be verified as required by the Code of Civil Procedure in civil cases.

RULE XIII.-Upon the appearance, answer, or default of defendant, the Commissioners shall promptly hear and determine the cause of complaint, and upon the law and the facts shall render and file in their office a decision in writing, signed by the Commissioners concurring therein. Within ten days thereafter, upon a petition by either party based upon the record in the case, such decision may be modified or changed by order of the Commissioners, setting forth the reasons therefor.

RULE XIV. The Secretary of the Commissioners must keep a calendar of cases pending before them, in their chronological order; and in a suitable book, properly indexed, shall enter all orders and decisions of the Board.

RULE XV. The provisions of Part IV of the Code of Civil Procedure, relating to the general principles, kinds, and degrees, production and effect of evidence, and of the rights and duties of witnesses, shall be applicable to proceedings before these Commissioners.

RULE XVI.-These rules may be amended at any regular meeting of the Commissioners, and amendments so made shall go into effect in ten days thereafter.

RULE XVII.-These rules shall be in force from and after the first day of March, 1883.

ADDITIONAL RULES OF PROCEDURE.

WHEREAS, By Section 11, Chapter 59, of the Statutes of 1880, entitled "An Act to organize and define the powers of the Board of Railroad Commissioners," it is provided that: "Whenever said Board, in the discharge of its duties, shall establish or adopt rates of charges for transportation of passengers or freight, pursuant to the provisions of the Constitution, said Board shall serve a printed schedule of such rates, and of any changes that

may be made in such rates, upon the person, copartnership, company, or corporation affected thereby; and upon such service it shall be the duty of such person, copartnership, company, or corporation to immediately cause copies of the same to be posted in all of its offices, station houses, warehouses, and landing offices affected by such rates, in such manner as to be accessible to public inspection during usual business hours. And whereas, it is further provided in said section and Act that the rates of charges established or adopted by said Board pursuant to the Constitution and this Act shall go into force and effect the twentieth day after service of said schedule of rates or changes of rates upon the person, copartnership, company, or corporation affected thereby, as herein provided." And whereas, unless waived by the party to be affected thereby, as aforesaid, the mode and time prescribed exclude all others. And whereas, it is optional with such party to waive said time, and also service of printed copy of said schedule; and whereas, it is competent and proper for this Commission, when it shall "establish or adopt" rates of charges, as aforesaid, to consult the convenience and preference of such party as to the form and clerical preparation of the schedule it is required to copy and post for inspection and use as aforesaid:

Now, therefore, it is hereby ordered, That in pursuance of said section of said Act, this Commission can and will establish or adopt rates of charges for the transportation of passengers and freight only by schedule; and that in the preparation thereof, in the usual form for convenient use as aforesaid, the Secretary of the Commission is hereby authorized and directed to avail himself of such form or draft of such schedule as may be most conveniently copied and used by the party to be affected thereby.

And it is further ordered, That upon the completion of any schedule of rates and charges, so drafted and prepared as aforesaid, the same shall be submitted to the Commission, and it shall be "established and adopted," as aforesaid. A certified copy of the order adopting the same shall be served by said Secretary upon the party to be affected thereby; and in case such party shall prefer for its own convenience, and to simplify the duties of all concerned, to make its own copies of all such schedules, and shall consent to put the same in operation within twenty days from and after the service of said order, and in accordance therewith, it may do so without further preliminary process or proceeding to enforce the same; provided, that said party, or its general manager, shall, within three days from and after the service of said order, acknowledge the service of said schedule by printed copy, expressly waiving all other service or notice thereof, in writing, addressed to said Commission, and to be filed and remain of record in its office.

And it is further ordered, That if such acknowledgment and waiver, as aforesaid, shall not be filed in said office within three days from and after the service of such order as aforesaid, then, and in that case, said Secretary shall immediately proceed to print such schedule and order, and to serve printed copies thereof on the parties to be affected thereby, and shall keep a record of his action in the minutes of said Commission.

All railroad corporations doing business in this State, and over which this Commission has jurisdiction, have complied with the requirements of law, and have furnished this office, in most instances, with full reports of their conditions and operations for the year 1887. These reports are reproduced in full in the following pages. An examination of them affords a

thorough understanding of the work of all companies, and progress made in the extension of our railroad system.

The importance of these great thoroughfares in the development of the material resources of the State can hardly be calculated, and clearly demonstrates the wisdom of liberal legislation that encourages the investment of the vast sums of money necessary to their construction. Sound policy seems to suggest the continuance of such legislation, and that no obstacles be placed (through inconsiderate measures) in the way of the continued development of our railroad system, upon which the interior commerce of California so largely depends.

It seems apparent from results of operations in this State that a conservative policy, rather than one too exacting, is the one best serving the real interest of the public, and most certain to secure fair rates of transportation.

While the law-making power should see that our railroad corporations are not in a position to impose unfair, excessive, or discriminating charges upon the business of the State, still if lines of railroad shall be multiplied, opening up competing ways to important trade centers, and affording to large manufacturing communities choice of routes in the shipment of their products to market, in the securing of their trade, the intelligent management of our railroad properties, which sharp competition also makes liberal, will leave but little to be desired in the way of legislation for the regulation of tariff rates.

It is believed that a careful examination of the several company reports herewith submitted will establish the fact that the tendency to fair and uniform rates is in the right direction in California.

CORPORATIONS.

Returns have been received by this Commission from thirty-one corporations doing business in this State; thirty of these companies are organized under the laws of this State, and one, the Southern Pacific Company, was organized under the laws of the State of Kentucky. Of the whole number, twenty-four are of the standard gauge (4 feet 8 inches), and seven are of the narrow gauge (3 feet).

The names of the corporations reporting, and the description of the same, are as follows:

Southern Pacific Company.

Broad Gauge Roads.

Amador Branch Railroad Company..
Berkeley Branch Railroad Company.
California Pacific Railroad Company-

Central Pacific Railroad Company..

No roads owned. Galt to Ione. Shell Mound to Berrymans.

Vallejo to Sacramento, Napa Junction to Calistoga, Davisville to Marysville. Sacramento to State line of Nevada, Sacramento to San Francisco, Roseville Junction to Oregon State line, Lathrop to Goshen. Los Angeles and Independenee Railroad Company. Los Angeles and San Diego Railroad Company. Monterey Railroad Company.

Santa Monica to Los Angeles.
Florence to Santa Ana.
Castroville to Monterey.

Pajaro and Santa Cruz Railroad Company... Pajaro to Santa Cruz, Aptos to Monte Vista.
Sacramento and Placerville Railroad Company.
San José and Almaden Railroad Company.
Northern Railway Company..

Sacramento to Shingle Springs.
Hillsdale to Almaden.
West Oakland to Suisun, Woodland to Tehama.

San Joaquin Valley and Yosemite Railroad Company-
San Pablo and Tulare Railroad Company.
Southern Pacific Railroad Company

Berenda to Raymond.
Tracy to Martinez.

San Francisco to San Miguel, Carnadero to Tres Pinos, Goshen to Huron, Goshen to Colorado River, Los Angeles to Wilmington, Mojave to Needles. Southern Pacific Branch Railway Company. San Miguel to Templeton, Saugus to Santa Barbara . Stockton to Oakdale. Elmira to Madison.

Stockton and Copperopolis Railroad Company.
Vaca Valley and Clear Lake Railroad Company.

Atlantic and Pacific Railroad Company..
California Central Railway Company..

No road owned. Los Angeles to San Bernardino, Arlington to Santa Ana, Los Angeles to Port Ballona, Santa Ana to San Juan, Escondido Junction to Escondido, San Bernardino to Mentone. California Southern Railroad Company. National City to Barstow. Northern California Railroad Company. Marysville to Oroville. San Francisco and North Pacific Railroad Company.

--- Donahue to Cloverdale, Fulton to Guerneville, Petaluma to San Rafael. Visalia Railroad Company... Visalia to Goshen.

Narrow Gauge Roads.

South Pacific Coast Railway Company

San Francisco to Santa Cruz, Fourteenth

Street to Mole, Felton to Bowlder Creek, Campbells to Almaden, Newark to Centerville.

Carson and Colorado Railroad Company
North Pacific Coast Railroad Company.
Pacific Coast Railway Company.

Sonoma Valley Railroad Company

San Joaquin and Sierra Nevada Railroad Company.
Nevada County Narrow Gauge Railroad Company.

MAP.

-State line to Keeler, Inyo County.

Sausalito to Duncans.

..Port Harford to Los Olivos.
.Sonoma to Glen Ellen.
Bracks to Valley Springs.

Colfax to Nevada City.

Attached to and made part of this report will be found an Official Railroad Map of the State of California. This is the first map of the kind ever gotten out by the Commission since its organization.

The map represents the different railroad systems of the State that report to the Commission, as the same existed on July 1, 1888. It has been the aim of the Commission to make the map absolutely accurate with reference to the courses of the roads and their several terminal points.

DIAGRAM.

Attention is called to diagram, showing average population of various groups of States, according to United States Census Report for 1888, which is attached to and made part of this report.

This diagram is instructive and interesting, as showing how sparsely our State is settled as compared with other great railroad States.

This diagram, taken in connection with our rates of fares and freights, makes, we think, a very flattering showing for the price of transportation in this State.

PROFILES.

Profiles as follows are also attached to this report:

Southern Pacific Company's through line, San Francisco, California, to El Paso, Texas, compared with New York Central and Hudson River Railroad, and Lake Shore and Michigan Southern Railroad, New York to Chicago.

Southern Pacific Company's through line, San Francisco, California, to Portland, Oregon, compared with same roads; also Central Pacific Railroad, San Francisco, California, to Portland, Oregon, compared with same roads.

These profiles are also exceedingly interesting, as showing the great difference in grade between the Pacific roads and those farther east, and if studied, one can easily see how such grades as these affect the cost of operating.

TRACK MILEAGE.

The total miles of roads owned by corporations reporting to this office, for 1887, were 3,441.70, of which total mileage 2,988.68 were broad gauge

(4 feet 8 inches), and 453.02 were narrow gauge (3 feet). This shows an increase upon the figures of the preceding year of 317.70 miles, or 9 per

cent.

TABLE No. 1.

Showing Progress of Railroad Construction in California from 1856 to 1887, inclusive.

YEARS.

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1856

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As appears from the foregoing table, the average of track laid each year has been 107.56 miles. The first track laid was between Sacramento and Folsom, in 1856; the second road to be built was from San Francisco to Menlo Park, in 1863.

CONSTRUCTION DURING 1888.

The current year will show a marked increase in additions to the railroad lines of the State, distributed as follows: Southern Pacific Company, 232.82 miles; California Central Railroad Company, 85.54 miles; San Francisco and North Pacific Railroad Company, 23 miles. Total added mileage in 1888, 341.36 miles. follows: Statements showing details of added mileage are as

SOUTHERN PACIFIC COMPANY.

STATEMENT SHOWING ADDITIONS TO MILEAGE IN CALIFORNIA, BY CONSTRUCTION OF NEW LINES, JANUARY 1, TO DECEMBER 1, 1888.

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