Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-01-04
Supreme Court
IN THE SUPREME COURT.

~ 1WUTF ~ t|H. fTf
IN THE SUPREME COURT.
STATE OF NORTH DAKOTA.
State of North Dakota, EN-. Rel, T. +.
McCue, Attorney General, Plaintiff. VS..
Northern Pacific Railway Company, De-
PENDANT, and, VS.. Great Northern Rail-
way Company, Defendant, and, VS.. Min.
.neapolis, St. Paul & Sault Ste. Marie
Railway Company. Defendant,
Three separate actions, against the
above named defendants severally, were
consolidated as to proof and are decided
by this opinion. These actions were be.
gun by the State to compel observance
by defendants of Chapter 81. Of the Ses-
sion Law Of 1907, prescribing a maxi
mum %intrastate freight rate for trans
p%ortation Of ligniat coal and requiring
that when q shipment is over more than
one railroad line the entire distance shall
be considered as haul and the freight
rate pro-rated between said carriers.
The granting Of the writs compelling
observance Of the statutory rate was
opposed under the defense hat the sta
tute was void because SO low as to be
confiscatory Of the property OF the car
riers and hence Yiolative of the 14th
amendment to the Federal Constitution.
This contetion was overruled by this
court in the opinion at 10 N. d. As, filed
in 1909, and writs a sasked by the State
were ordered to issue. The defendants
appealed to the United States Supreme
Court, which affirmed said decision will,
out prejudice but granted defendants per-
mission to reopen the case by appro-
priated proceedings, If after adequate
trial" with the rates in force, they
Should see fit to again present the re
suits under the rates as proof. of the con
fiscatory character of the statutory coal
rate. The statutory rate was put in effect
and the railroads are still operating un-
der it. In 1912 they again submitted proof
to this court Of the receipts for the fiscal
year lei preceding jun 80, 1911, to-
gether with proof of expenses charge
able against the Ignite coal traffic. Each
road has submitted its separate pr ,of
and contention that the statutory rate
does not yield sufficient revenue to d..
fray the expenses of carriage of this
coal, to the effect that the state is con.
polling its common carriers to transport
this commodity for less than cost and
therefore coniiscating their proptrty. The
proof vas taken, as in the original pro.
ceedingx before this court, by a referee ,
who has reported all the testimony e.
fered but WHO was not authorized -
make, and who has not made, findings Ct
fact or conclusions of law. This court
has made separate and full findings Of
fact, under the proof submitted, as 10
the effect of the rate upon cach ROAD
It finds: '"' ''
,(1)That as to the Great Northern
Railway Company, owing to conditions
peculiar to the country travcrsed by 1t
the statutory rate yields it a reasonably
fair compensation over and above I'll
charges and expenses against the liz
mite trffic, and that as to it the statutori
rate is reasonably compensatory.
t2) That as to the Northern Pacific
Railway Company. out Of total freight
receipts for Ignite coal amounting TO
SIS, 1853, the total cost of transportation,
or out.of.pocket costs, together with Gil
all fixed or overhead expenses apportin-
able to said Ignite traffic, consumed an
Of said receipts excepting SS47., its net
profit in the handling of the Ignite c"s-
mess for the twelve months ~ question.
That such rate is slightly re u'',eratiV"
but in fact non-compensatory. consider
ing the volume of freight carried and
the property of the railroad devoted
thereto. 81 h" '.
90 That the total Soc line freight
receipts from Ignite coal hauled during
said fiscal year amounted to $83,G70. That
nearly one.half of it's entire Ignite coal
tonnage originated at Wilton, 1882 car
loads of which was hauled only % miles
to Bismarck and delivered to the North
ern Pacific carrier for ar average haul
by it of 105 miles, upon which the
freight rate when pro-rated as to dis
lance, as required by the statute, has
reduced what the 500 carrier would
otherwise receive under the statute from
40 cents per ton to 24.5 cents per ton for
the 1882 car loads hus delivered to the
.<OrtncTn RACINE ultIllIS tHc SCAl' III
der similar connections with the Great
Northern at Minot it has there hauled
approximately 500 car loads OF ignite
coal for an average of II miles, realiz-
ing therefrom S.5 cent per ton only, or
$1.83 per car load for such haul, deliver
ed to the Great Northern o for an
average haul and charge based thereon
Of IS miles, from which the Great North
ern received S7.5S per car load. These
and many other conditions have placed
the 500 line at a disadvantage in this
traffic. The pro-rating feature OF the
statute alone has reduced it's freight re-
ceipts on Ignite approximately sl3,Oo
bclo wwhat it otherwise would have re-
ceived, and nearly that amount under
what the same freight carriage would
have yielded the Northern Pacific or the
Great Northern under usual conditions
on their lines. Its total receipts amount