Idaho news. (Blackfoot, Idaho) 1887-1891, 1888-08-04


hoard Of Transportation.
Omaha Republican.
The Union Pacific company yesterday
completed tho answer to the state board Of
transportation relative to the latter's order,
passed July S, last, concerning rates. The
answer opens with denial that the state
board of transportation has any jurisdic.
tion to pass or make the order referred to.
1t alleges there was not any petition or
complaint filed with the board making any
attack upon the tariff or schedules Of rates
in force upon the lines of respondent COM
pany, or those of any other in this state
since November of 49, Further, t. :.
the board made no investigate i. :,
the subject matter of said osdo.
aud that the board has no powe' or nm tb,,r.
ity under the laws of this st ,tA "a ,,,,.a ~
adopt the formula contair "a in said order
Then comes deserir .doa Of the rou,e Of
the Union Pacific th. .ough N. STATE ana
after the citation. Of some familiar ar-
ures, the more PERTINENT part of the answer
Is resumed 4th che allegation that the trAE-
nc OF the state is managed and operated
under a joiat arrangement and tariff; that
vince is known as the local distance tariff,
Ia force since Nov. l, 1887, was and still is
a reasonable and proper schedule
for transportation to aud from points
within this state, and at the time
OF Its adoption was a reduction
approxlmatlng 33s per ceat upon previous
rates; further that since the adoption of
said tariff until the present time bat about
eight months have elapsed and that during
said time said tariff has not operated upoa
the business men of Nebraska su ,ficientIy
longstor it to determined or found that a
reduction can justly be made. Further.
that during the greater part of 1881 and
until November of that year the tariff in
force on the lines of the Omaha u Republi-
can Valley railway was higher than the
rates made by the tariff put in force
November 1, 1887, that the rev.
enues derived from business
transported over said roai during the first
four months of '6S were $37, COO less than
the operating expenses of the road during
the sane period if the proposed schedule
was applied to the business done, than the
volume of business during said period
being greater than for the corresponding
months in 81; that the local business of
the Union Pacific on its main line during
'S7 was not more than the operating ex-
penses connected Herewith; that the
formula referred to will, if applied to the
existing classification of freights, result
in q net loss of about Is per
cent of the gross earnings within the state,
and will infict great and irreparable dam
age upon the stockholders. It is further
more alleged that the stockholders of the
Union Pacific railway company have re-
ceived no dividend from their Investment
In the stock of said company for the period
of five years last past, and that the Repub-
ncan Valley railway company has never,
through Its earnings or otherwise, been
able to pay dividend upon its stock;
wherefore the respondents pray that the
said order may be cancelled and not be en-
forced.
For further defence, it is assured that
the rates and charges fixed by the |
November, 1877 tariff are as low as can be- |
made, taking into consideratio the operating
and other legitimate expenses. References |
il made to the territory tributary to the |
lines of road operated, being sparsely /
settled and largely undeyeloped.
Here follows an extended reference to
the particular manner in which the Union
Pacific came into existence-viz, by direct
governmental appointment. And by
reason of the provisions of the act by
which it was created, the company hold
that it was authorized to fix its own rates.
subject only to the power reserved
by the act itself, until such time
as the net earnings of the entire road and
telegraph, including the amount allowed
for services rendered for the United States.
after deducting all expenditures, shall ex-
coed 10 per cent per annum.
Wherefore respondents further submit
that said board OF transportation and the
secretaries thereof and their tribunal have
no authority, jurisdiction or power to con-
trol or hx, revise or correct, dimin-
isn or increase rates on their
lines Furthermore, it is alleged that
. large amount of the traffic carried
by the Union Pacific Railway company
consists of interstate shipments. and that
the proposed order, if enforced. would
necessitate the modification of its tariffs in
respect of rates aud charges made for the
carriage OF such business, and the responi-
ents allege and maintain that to that ex-
tent the proposed action of the said board ,
OF transportation is beyond the power of
the said board in that it interferes with
and regulates and controls interstate
commerce. Further, it is alleged that
the said pretended order OF july
5, 1888, was not served upon J
respondents or either of them or any officer !
Of the said respondents by any sheriff or I
constable or other officer authorized to
reserve the same. Further, and lastly il 1
Is alleged that it would be contrary to law {
TO enforce the said order, and that it would I
be impossible for the eaid respondents or Q
sither of them to comply With said order
without violating the laws of t
the state, for the reason, that S
said order was not brought TO the notice of ]
respondents, or either of them, as stated. 7
until July IL, '89, and since the said order t
BY its terms, If enforced, will result in t
'aising certain Of the rates now charged Z
Upon the lines of respondents, they saw y
hey cannot comply with the same by il
'utting the rates IN question in forco on or j,
,efore the Goth of July. 'ss, without violating Fl
he laws of this state in that behalf. neither
vas it physically possible to prepare, print y
md publish said tariffs in or within said n
ime, or to physically carry out the terms ]
nd conditions of said order. ii
The answer bears the signature of I. L. Il
Almball, acting general manager for the
a.