Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1910-02-24

-3RSSsnsHsss
being controlling, as long as the car
rier was allowed on the whole to earn
fair profit on the investment in the
business Furthermore, it was con-
tended that other elements may
serve to make the rate reasonable
one, though it is less than the theo-
retical cost of service. In the case
of the rate on coal, it was argued
that it may be entirely reasonable
for the state to put in force low
rate for the purpose of developing
great natural resource by stimu-
lating the purchase of local coal in
place of foreign coal through the re-
duction in the cost of the former.
AS to the argument that the re-
duction of the rate on coal meant an
additional burden on other commodi-
ties, counsel for the state contended
that it was illogical to speak of this
as '5robbing Peter to pay Paul." Ac-
cording to their point Of view, the
subject was neither more or less than
case of proper rate classification
with the incidental result that one
commodity sustains greater weight
of expense than another.
A vigorous attack was made on
other arguments of the railroad. eff
the doctrine contenGed for by coun-
| sci for the defendants be sustained
by this court" said the counsel for
the state, ''the decision will not
merely mark an epoch-it will in
augurate revolution in the devel-
opment of the law relating to the
regulation of transportation charges
by the railways of the country"
It was said that the result of de-
cision in accordance with the con-
tention of the railroads would be to
cripple seriously, if not practically to
destroy, the rate making power of
the nation and of every state.
"The burden of proof is upon the
railroads to show that the rate in
volved will cut down the net earnings
of the railroad from purely intra-
state business below the point of
fair profit" said the stats counsel.
There is no evidence as to the gross
receipts from purely intra-state bus
mess, no evidence as to the gross ex-
pense properly chargeable to such
business; and no proof of the value
of the property which may be fairly
said to be engaged in the carrying on
of such business. 1t therefore stands
admitted upon this record that des-
pite the rate in question, these de-
PENDANTS can earn at least fair pro-
tit upon their purely intra-state bust
ness"
On the other hand, the counsel for
the Northern Pacific contended that
in order to be constitutional, the rate
must permit fair amount of profit
for the railroad.
mo one can contend it to be nee
essary for the protection of the pub
lic," said the railroads counsel,
that any rate be fixed by legislative
authority below the cost of furnish
ing the service. Such a contention
would be contrary to the fundamen-
tai purposes of the police power. And
viewing the situation from the stand
point of the public, it can have no in
terest which ought to compel car
rier to furnish certain classes of SER
vice at less than cost, thus to charge
the loss against the balance of the
service. Such principle is contrary
to public policy.
"Any discrimination by public
service company, which consists in
rendering service below it's cost, is
unjust discrimination and unlawful. '
It is inconceivable that test of reas-
enable rates will be adopted by the
court which would compel carriers to
do the very thing forbidden by law.
Any just rule therefore of rate regu-
lation must preserve to the carrier
both the right and the ability to rem
der all service at remunerative ,
rates."
IF the regulation compels a car '
rier to render portion of it's service
at less than COST" said the counsel
in closing, "inevitably this loss must
be distributed over the balance of it's
business unless the carrier can re-
fuse to render the service, The lat
ter alternative is impossible. All SER
vice rendered at a loss results in
burdening the balance of the carriers
service and considering that railways
are subject to regulation of many
states, as we'll as to that of congress,
the necessary result Of one state re. i,