The first merchandise tariff to be established by the new line was somewhat slower in appearing than the tariff on grain, because the formulation of it was a more complicated matter. Nevertheless, such a tariff was filed with the State Railroad Commission on August 22, 1896. The new merchandise rates were based upon the Western classification, and were believed to represent reductions of from 10 to 50 per cent as compared with Southern Pacific rates before the competition of the Valley road had become effective. In the new schedule the first-class rate from Stockton to Merced was 31 cents per hundred pounds, or approximately .9 cents per ton per mile. On class five, the highest carload class, the rate was $4 per ton, or .6 cents per ton per mile.[490] As in the case of the grain rates, the publication of new merchandise schedules continued as the Valley road proceeded south. Thus when the company reached Bakersfield it put in a first-class rate of 83 cents per hundred pounds, a cut of 19 cents under the Southern Pacific tariff, with rates on other classes reduced to correspond.[491] In addition to grain and merchandise rates, the Valley road also quoted commodity rates. The rate on flour from Merced to San Francisco was set at $2.75 per ton, and that on potatoes and on lime at $1.85 per ton, as compared with rates of $4.20 and $3.10 over Southern Pacific lines.[492] Likewise passengers were carried from Stockton to Fresno and to intermediate points at a flat rate of 3 cents per mile. Later, the fare from San Francisco to Hanford was reduced from $7.30 to $4.65, that to Visalia from $7.40 to $5,[493] and that to Bakersfield from $9.10 to $6.90.[494] Relative Position of San Francisco Improved It should be added that the adjustment both of grain and of merchandise rates was such as to improve the relative position of San Francisco as compared with other cities, as well as to reduce directly the freight bills which she had to pay. Generally speaking, the grain rates between points in the San Joaquin Valley and San Francisco were made 50 cents per ton higher than the rates to Stockton. This in itself represented a reduction of 50 cents under the Southern Pacific rates, inasmuch as the Southern Pacific had been accustomed to quote a rate to San Francisco which was $1 per ton higher than the rate to Stockton, in order to encourage shipments to Port Costa. The Southern Pacific rate to Port Costa, exceeded its rate to Stockton by only 50 cents, and was less than the Southern Pacific grain rate to San Francisco by the same amount.[495]