Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1913-09-18
SUPREME COURT HEARS
n. D. Ignite CASES
IMPORTANT DECISION RENDER
ED IN REHEARING OF LIG.
MITE RATE CASES.

Bismarck, Sept. 15.-The reop-
ened Ignite coal litigation is before
the state supreme court. The cases
are of unusual Importance, as they
involve a principle that applies to
other commodities besides the trans
portation Of Ignite. The cases have
been previously decided by the state
supreme court in 1909, and the leg
islative rate applied to Ignite was
held constitutional and reasonable.
Inasmuch as this case was carried
to the supreme court of the United
States and the rates sustained, sub
ject to a rehearing after the rates
had been tried, it has become of such
Importance in the view of common
carriers that it has been fought most
stubbornly. While the amount of
traffic involved is small, the gross
revenue being not greatly in excess
of 100000 from the entire Ignite
coal traffic in this state, yet the doc
trine laid down by the North Dakota
court is of such a nature that the
case assumes Importance out of all
proportion to the sum involved.
The ole doctrine under which rates
were regulated was that common
carriers we're charging excessive
rates and the police power was in
voked by the courts to protect the
public from these excessive charges.
Under the doctrine laid down by the
North Dakota court a rate which
does not contribute at all to the net
earnings of the carrier, or which
might even be so low that the reve-
nue. did not cover the operating ex-
penses, is not confiscatory SO long as
the total" revenue derived from all
the traffic in the state yielded a
reasonable revenue. In brief, the
North Dakota court applies the US
age of the railroad classification in
such a manner that rates might be
fixed so as to encourage industries
or to, benefit the people regardless
Of the actual revenue from the COM
modify in question, SO long as the
railroad business in the state pays
a reasonable profit.
On the other hand, the railroad
companies contend that each and
every commodity must yield some
thing to the total net revenue which
it is necessary for the common car
rier to accumulate in order to attract
capital and continue business. While
they admit the classification of COM
modities, yet they contend that these
classifications are so adjusted that
each commodity yields certain net
profits. :.
The laws of 1907 reduced the rate
in force on Ignite within the state
by about one-third. The railroad
companies did not comply and suit
was instituted by the state to en-
force the rates. The supreme court
sustained the legislature, and the
United States supreme court also
sustained the decision. but left the
matter open until the railroad COM
panies had tried the rates and II
they were found unsatisfactory the
case could be reopened in the state
court for further consideration. This
was done in July, 1911, and pro-
ceeddngs before a referee were held
in the Twin Cities, with rate ex-
rerts for both the state and the
companies testifying. The examina-
ton of the books Of the railroad
companies was made and the con-
clusions of the experts went into the
record.
Last week at Bismarck the cases
again came before the supreme
court.
The attorneys of the three roads,
as we'll as Attorney General Miller
and his ex-assistant, Mr.. Young, pre-
sented evidence to the court, to-
gether with arguments on the legal
points involved. Mr.. Donnelly, rep
resenting the Northern Pacific rail-
road, made the first argument to the
court on behalf of the carriers. He
explained that the Northern Pacific
had compiled figures for the fiscal
year ending June 1st, 1911, covering
the >intra-state coal trafiic. The
Northern Pacific handled 4,412 cars
Of coal during that time, for which
they received in round numbers
about $4,000.
The operating cost and taxes ac-
cording to Mr.. Donnelly amounted
for. that period to approximately
1000, making q total deficit Of
about .$2,260. The operating cost
Continued on page adve,) ..,s