About a week ago word came to me through Mr. Hunkins of the Yosemite Transportation System to the effect that the Yosemite Valley Railroad would, beginning about sixty days hence, refuse to accept any special train parties over the railroad, this action to be taken by the railroad because of the fact that the construction of the Merced Irrigation District Dam at Exchequer on the Yosemite Valley Railroad will commence within sixty days and continue for some eighteen months. While this work is in progress the Yosemite Valley Railroad will utilize all of its extra equipment for the supplying of sand and gravel and other materials of equipment for the construction of the dam.

          Three or four days ago I had an opportunity to discuss this matter with Mr. White of the Yosemite Valley Railroad and Mr. Hunkins, at which time Mr. White confirmed Mr. Hunkin's statement. I made it clear to Mr. White that the Service would not look with favor upon such a move as I did not feel that he was justified in curtailing service that has ordinarily been given to the park for the sake of helping the contractor on the Exchequer job in meeting the terms of his contract, particularly in view of the fact that his operation of sand and gravel trains would bring a substantial profit to him and that it seemed to me that in view of the fact that by giving this service to the contractor he was materially increasing the revenues of the railroad he should go out and hire the necessary additional equipment to handle special parties, and that it seemed to me that the park was being sacrificed for the benefit of the contractor and the coffers of the Yosemite Valley Railroad.

          Mr. White, however, was adamant in his stand. He stated that he had figured the matter out from every standpoint and he had positively come to the conclusion that he would not handle any special train service or any Pullman cars other that such as could be handled on his regular trains.

          Mr. Hunkins advises me that he has already contracted ten special train parties for next year, of which eight are so scheduled that they could not be handled on the Yosemite Valley Railroad regular train schedule and that he has approximately fifteen more special train parties in view, the bulk of which business to the park will undoubtedly be lost should Mr. White stand on this policy.

          I am wondering if this might not be worth while taking up through Mr. John Drum and possibly higher officials of the Southern Pacific and Santa Fe Railroads. I feel if Mr. White persists in this matter that when the highway is completed and the time comes for the consideration of stage service paralleling his line from Merced to Yosemite Valley, his argument before the Railroad Commission of being able to give adequate railroad service is going to be much weakened and the fact that he will have taken the stand of considering the park travel secondary to the handling of freight for the contractor will work against him in his efforts to prevent the granting of a franchise by the Railroad Commission to a stage line into the Valley.

          The putting of this plan into effect will undoubtedly mean a step backward in transportation to the park and it is better and not poorer service that we are looking for.