The pioneer express. [volume] (Pembina, Dakota [N.D.]) 1883-1928, 1907-09-20
RAILWAY PROFITS
ARE EXCESSIVE.
STATES ATTORNEY OUTLINES
DEFENSE IN RAILWAY RATE
CASE.
new RATE NOT CoNFlsCAToRY
STATE TO PROVE THAT 2.cENT
RATE AND COMMODITY RATE
ARE REMUNERATIvE.

OBrlen, special counsel for the state
in the injunction proceedings brought
by railroad stockholders to restrain
the operation Of Minnesota's rate
laws, spent three days last week argyll
ing before Judge Lochren against the
issuance of the injunction. After six
days argument by the plaintiffs. Mr..
O'Brien opened for the state. He
took up the evidence to analyze it and
demonstrated that the reductions are
not confiscatory.
MI. O'Brien reviewed first the
states denlurrers. which deny the ju.
risdiction of the court. the right to en-
join state officers or the sufficiency Of
the bills.
What State Will Prove.
In general way he announced that
the state would prove that the mer-
chandise rates and the 2.cent passen-
ger rate are remunerative; that the
present commodity rates are unequal
and unjust, and that the proposed
rates are higher per ton per mile than
the interstate rates now in force. The
state will show that higher net profits
are now earned on local than on inter-
state business, on the companies own
figures and therefore that local rates
are exorbitant.
I'VE claim said Mr.. O'Brien, chat
there being no diverse citizenship, this
court has no jurisdiction
I'VE claim, second, that the railway
commission, rot being concerned with
the commodity rate law or the 2-cent
fare act, the court will not inquire into
their validity in this action.
Third, that the compliments have
not brought themselves within the
nfnety-fourth equity rule.
Is Action Against State.
Fourth, that this is an action
against the state and is in opposition
to the federal constitution.
Fifth, that the bills are multifar!.
Gus.
1--WE insist" continued Mr.. O'Brien.
that an interlocutory temporary in.
junction will not issue because of it's
effect to change existing condition.
and further, that the court will give
no attention regarding the claims in
the matter of the passenger fare and
merchandise rates, two things which
the roads have accepted of their own
Tree will and which they have volun.
tarily put into effect"
The efforts of the state, Mr.. O'Brien
declared, had been employed to place
the railroads at peace with the public
by settling for them once and for all
many vexatious questions with which
they had to contend.
Some Of the Benefits.
BY abOlishing free passes the law
not only relieved the railroads from
the dead weight of non-remuneratiye
service, but had placed railroad off,
Gals where they were no longer pes
tered with endless applications for
free transportation.
BY penalizing rebating the law had
relieved the railroads from cut-throat
competition.
The reduction in rates had stimu.
lated traffic by bringing passenger
rates within the means of the masses.
Not Deep Cut.
The reduction in passenger rates
from to cents mile, declared Mr..
O'Brien, is not nearly so savage cut
as it appears on its face to be. It
does not mean an actual cut of 80 1-3
per cent. Two cents a mile is really
more than the average passenger paid
under the Scent rate. In addition to
the large number who enjoyed the spe-
cial privilege of free transportation
there was considerable class who
paid less than cents mile. All of
these must now pay the regular 2-cent
rate. and the result is, as shown by
their own figures, that the actual re-
ceipts from passenger traffic is nearly
as great as it was before the 2-cent
law went into effect.
Figures Compared.
The total receipts from passenger
traffic Of the ten roads involved in
these suits for May, 1907, the first
month under the operation of the
1-cent passenger law, said Mr.. O'Brien.
was $923.2O7.52. The receipts for
June. 1907. were $1,1S7,S87.17, while
the receipts for June, 1906, were
$1,216.776.91, and the receipts for May.
1906, were 3949,453.9o. These figures
are taken from the reports to the rail.
road and warehouse commission.
Mr.. O'Brfen contended that the
freight rates charged by the roads are
unequal az well as unreasonable.
He maintained that the legislative
rates. as compared with average ex.
tsttng rates, were not on the whole un.
favorable to the railroads. and that in
some instances the maximum of the.
legislative rates are even higher than
those now In existence.
AS an instance of inequality in
rates. Mr.. O'Brien quoted the rates for
cattle. hogs and sheep in double-deck
cara. Some roads have different rates
for each Of these commodities, while
on other. they are all classed at the
same rate. When the court adjourned
until Monday morning Mr.. O'Brien had
not finished his argument.