Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1914-01-08
COURT SUSTA|NS THE
Ignite RATE LAW
ROADS MUST TRANSPORT THE
COAL AT FIXED RATES.
Case in Litigation Six Years-End
Not Yet,

ing the opinion of the supreme court
in the famous Ignite coal rate cases
was filed, the court in unanimous
opinion written by Judge Goss, up
holding the constitutionality of the
Ignite coal rate law as not confisca-
tory of the property of the railroad.
In brief, the history of the case is
that the 1907 legislature passed a
tariff to govern the hauling of Ignite
coal within this state and prescribing
the maximum rates chargeab BILE, and
that when a shipment is over two diff
ferent roads it shall be charged for
as one hong haul, instead Of at the
rate of two short hauls, and greatly
reducing the then coal freight rates.
1t governed all domestic coal ship
ments. but in effect it was particular
ly applicable to Ignite.
The railroads refused to change
their existing rates in 1907 to meet
the statutory requirements, and the
attorney general, McCue, began an
original injunction proceeding in the
supreme court to enforce compliance
The supreme court then sustained
the rate, and ordered the companies
to obey the 1907 law. They appeal
ed to the United States supreme
court, claiming they were being forc-
ed to carry Ignite G: {. loss. And in
effect that their property was there
fore being confiscated. The federal
supreme court conditionally affirmed
the state supreme court, but gave the
railroads the right to again apply for
relief after they had actually oper-
ated under the rate law. -, ,v.y.
The statutory rates we're then
made effective and after fifteen
months in force the railroads again
submitted proof to the supreme
court of collections and cost of car
riage of Ignite, and urged the inval-
idity of the rate law as being too
low to allow them reasonable rec
ompense, and confiscatory of their
property.
Much testimony of expert charac-
ter was submitted, the book OF exhib-
its alone constituting about three
hundred railroad tabulations. All
this fall the volumes of testimony Of
fered on both sides of the case, is re-
viewed in the lengthy eighty-page
opinion of the court.
The findings are that as to the
Great Northern the rates return a
reasonable net profit over cost of
treightage of Ignite. AS to the
Northern Pacific but trifle over the
cost of carriage and it being as to it
non-compensatory. As to the 500
line the rate does not return within
$4,000 to $4,000 of the full cost of
transportation of that commodity,
owing to the pro-rating feature of
the statute giving the long hand por-
ton of freight collections of large
part of the Ignite traffic, beginning
on the 500 to the Northern Pacific
and Great Northern lines. But the
court holds that under the Minneso-
ia, Arkansas, Missouri and Oregon
rate cases.. recently decided by the
United States supreme court, this
fact alone does not establish the rate
as confiscatory as to the 500 line, it
not being shown that such loss reduc-
es the general domestic or state earn
ings to so low point that they do
not pay an adequate return on all it's
property devoted to creating such
earnings.
It would seem that the effort of
the Minnesota rate case, United
States supreme court decision, is to
make it impossible for proof of con-
fscation to be made by any railroad,
as the railroads have the burden of
proving the statutory rate to be un-
and also as jurating to
confiscate their property.
This case will probably be appeal
ed to the federal supreme court for
an early decision. The outcome of
such second appeal to that great
court from our supreme court will be
awaited with interest.
Much credit is due Attorney Cen
eral Miller and his former assistant,
c. s. Young, who have handled the
states side of this litigation, and
have succeeded in sustaining the rate.