Omaha daily bee., 1889-10-15
THE CAPITAL CITY CRIST.
The Board of Transportation and
the Coal Rates.
A MIDDLE BY THE SECRETARIES
They Fail Co Follow the Prescribed
Form in Putting the boards
Order Into Effect--Lincoln
in Brief

1899 u STREET,
LINCOLN, Neb, Oct. IA.
The state board Of transportation will
hold meeting TO morrow to consider its fu.
ture action on the schedule of coal rates,
which has hung fire several months.
An Investigation of the situation would in
dicato that the secretaries of tho board have
gotten into something of a muddle. When
Senator Sutherland made complaint
against tho Chicago, St. Paul, Minneapolis
& Omaha railway conditional order was
issued directing that road to show cause why
its rates should not be reduced. The parties
to the controversy then had hearing. After
the hearing the secretaries should have made
finding of fact and upon that based final
order to the st. Paul road. An order was
issued subsequent TO the hearing, but upon
investigation it appears to have been of the
nature of q conditional instead of final
order. The st. Paul. which has refused to
adopt the schedule of coal rates fixed
by the board, Is therefore not
amenable to discipline, because of
the failure of the board TO
go through the prescribed forms of putting
It's notice into effect Not only did the
secretaries serve this second notice upon the
st. Paul road as a final order, but it was
served on all the other roads in the state.
There has been an impression that the board
| VI transportation nau maue
finding, binding upon oil roads alike, and
that the railways were maintaining their old
rates in defiance of the board. But such is
not the case. Each road is entitled to
hearing for itself. The other roads cannot
be bound by the findings of the fact in the
case against the st. Paul.
An effort will be made ut to-morrow's
meeting to unravel the tangle. The secre-
taries contend that they have been regular in
their proceedings, but their records do not
tvl1tN nhohl hlt- hn md, IN,
| issue final order on the st. Paul to put iD
| force the boards schedule of rates, which
reduces the charges on coal from 42 to 50 per
cent. The board may issue a conditional
order to each of the other roads, or,
| if the notice already sent them be
| allowed to stand as such order the next step
| will be hearing. Then will follow the
findings of the secretaries and the final or
| ders.
The enforcement of the coal schedule is,
| therefore, matter of weeks and perhaps
months.
The b. & M, the Rock Island and the st.
| Joe S Grand Island have paid no attention
| to the order of the board
The other roads have made answers urr-
ing reasons why the order should not be Gu
forced, and the following abstracts give the
| essence of their arguments:
The Union Pacific objects to the same rate
| beng fixed for hard and soft coal in viola
ton OF two important principles:
| l. That freight rates should be based on
| the value of the commodity, the more vau-
! able taking the higher rate.
| 2. That the rates should be based on the
| relative quantities of hard and soft coal
| transported.
| The Union Pacific also says that the rates
| established by the board for distances less
| than fifty miles are not sufficient to pay the
cost Of service IN carrying soft coal.
| The Chicago, ST. Paul, Minneapolis &
| Omaha denies tho jurisdiction of the board
of transportation in liking rates. 1t also
| asserts that the schedule issued by the board
| is grossly Unjust and unreasonable and Will
not defray the actual cost of the service rem
| dered without any return upon the capital
| invested. Then follows an elaborate state
ment of the roau's cost, bonded indebted
! ness, earnings, etc. 1t is alleged that the
! 241 miles in Nebraska cost Sf2 600 per mle a
| total of $4,000, 600; that it has been bonded
for SIS, 900 per mile, total of 1856, 900, at
per cent; that it is necessary to earn over
| and above operating expenses, repairs and
| renewals the sum of S2l7, 600 per year to pay
| interest on bonds; that the gross earnings
| for 1888 were SjSS, 3lO and the expenses S562,
| 762; that there was deficit of $4,000 IN the
| interest fund that had to be paid from the
| earnings in other states; that the order Of
| the board is IN the nature of appropriating
| the railroads property without process of
| law; that the railroads had made conces-
| sion by adopting the boards schedule of 1887
| and should not be hampere6 further.
| The Fremont, Elkhorn g. Missouri Val
| ley and Sioux City & Pacific make in general
| terms objections similar to the foregoing.