EXHIBIT 99.3

                                TEJON RANCH CO.

                                   Common Shares
                      Initially Offered Pursuant to Rights
                         Distributed to Stockholders of
                                Tejon Ranch Co.

Dear Stockholders:

   This letter is being distributed to all holders of Common Stock, par value
$.50 per share (the "Common Stock"), of record on December   , 2000 (the
"Record Date"), of Tejon Ranch Co. (the "Company"), in connection with a
distribution of transferable rights ("Rights") to acquire the Common Stock at a
subscription price of $   per share for each share of the Common Stock.

   Each beneficial owner of the Common Stock is entitled to one Right for each
share of the Common Stock owned. Each Right represents the right to subscribe
for      shares of Common Stock. All fractional Shares will be rounded up to
the nearest whole number.

   Enclosed are copies of the following documents:

     1. The Prospectus;

     2. The Subscription Warrant;

     3. The "Instructions as to Use of Tejon Ranch Co. Subscription Warrant"
  (including Guidelines For Certification of Taxpayer Identification Number
  on Substitute Form W-9);

     4. A Notice of Guaranteed Delivery for Subscription Warrants issued by
  Tejon Ranch Co.; and

     5. A return envelope addressed to ChaseMellon Shareholder Services,
  L.L.C., acting on behalf of Mellon Bank, N.A., the Subscription Agent.

   Your prompt action is requested. The Rights will expire at 5:00 P.M., New
York City time, on January   , 2001, unless extended by the Company (the
"Expiration Date").

   To exercise the Rights, a properly completed and executed Subscription
Warrant (unless the guaranteed delivery procedures are complied with) and
payment in full for all of the Rights exercised must be delivered to the
Subscription Agent as indicated in the Prospectus prior to 5:00 P.M., New York
City time, on the Expiration Date.

   Additional copies of the enclosed materials may be obtained from ChaseMellon
Shareholder Services, L.L.C. Their toll-free telephone number is (866) 293-
6625.

                                          Very truly yours,

                                          TEJON RANCH CO.