Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-01-04

the total costs including fixed and over
head expenses properly %chargeable to the
carriage of this commodity and against
the earnings therefrom. That the car
riage of Ignite coal by the 500 line
within this state during said fical year
was not only non: profitable but occa-
stoned q loss to it when its fixed ex.
penses objectionable to all traffic are
in proper proportion and amount assign
ed to and charged against the earnings
from his commodity. From the forego-.
ing epitomized findings Of fact it is held:
(a) The statutory freight rate is pre-
sulned to be reasonable, which presump-
ton continues until the contrary appears
and the rate is show beyond a reason
able doubt to be conflscatory.
90 Proof that a rate is ~non.compen-
satory, that is, while producing moro
revenue than sufficient to pay the ac-
tual expenses occasiOned by the transport
tation' of the commodity, but insufficient
to also reimburse for that proportion of
the railroads fixed or overhead costs
properly apportionable to such commod-
ity carried, is not sufficient to establish
that the rate is confiscatory in law.
(c) In order to establish sucl, a non-
compensatory rate to be donfiscatory
it must further appear that n deficit
under the rate affects the net intrastate
freight earnings materially and reduces
them to a point where they are insult
ficient to amount to a reasonable rate of
profit on the amount of the value Of the
railroad property within the state con-
%tributing to produce such net earnings.
(d) TO ascertain whether such net in.
trastate freight earnings are thus con-
fiscatory because unreasonably low, tho
railroad attacking the legislative. rate on
such grounds must by proof establish the
! total value 'Sof its property devoted to
railroad use and within the state. and
then by proof establish the proportion
thereof equitably objectionable as pro-
ducing such net intrastate or domestic
freight earnings after which the reason
ableness Of the gross net return from
intrastate business upon the railroad in
vestment producing it can be determined.
(e) For the next and final step in tho
proof Of conflscation under the rate it
must further appear either "a that the
net total intrastate freight earnings are
insufficient to yield property used to
produce such net earnings, and that the
commodity in question is carried for less
than sufficient to meet all expenses, In
GLIDING out.Of-pocket costs n fixed
charges; or, (2) it must be reasonably
certain that the loss on the commodity
rate attacked reduces the balance Of
the net intrastate freight earnings to O
point where such total net intrastate
earnings. including the loss on the com
modify rate. fail to yield a fair and rea-
sonable return on the investment, meas
urcd under the above rules. upon making
Of which proof the connscatOry nature
Of the rate is established.
f) IN determining the value OF rail.
road properties proof Of the so-called
railroad value is insufficient to establish
the fair actual value upon which as q
basis apportionment Of values and rea.
sonablcness Of rates may be computed.
Co Measured by the foregoing rules.
which seem to be the law as applicable
to the facts in this case, there is a fall
ure Of proof on the part of all the car
rier defendants in that the Northern Pac
ifs and Great Northern Railroads have
offered no proof of the value of their
property or the approximate proportion
thereof utilized to produce its domestic
earnings; and the 500. while attempting
such proof has failed to make the proof
required by the Minnesota, Missouri, Ar
kansas and Oregon Rate Cases, 800 U.
S. 3352-560, and other Federal decisions.
(h) Under such failure Of proof the
presumption of rcasonableness "of the
rate attacked continues and the statute
must be held to prescribe a reasonable
charge for the intrastate transportation
of Goa. t-s. "
(SylIabus by the Court.)
Proceedings on application on behalf
of the State for an original writ direct
ing the observance Of the freight rates
In question and enjoining the collection
of higher than the maximum statutory
rate.
Writs granted. Costs and disburse-
mcnts Of State ordered taxed by the
Clerk. -"'
Opinion of the Court by Goss, j.
Andrew Miller. Attorney General, and
G. l.. Young II Alfred ZugeT, ASSls-
tant Attorneys General, attorneys for
the State. 81 4 .t @
Watson & Young. Of Fargo, and Chas.
W. Bum and Charles Donnelly Of st.
Paul, attorneys for the Northern Pacific
Railway Company.
A. II. Bright. John l.. Erdall and Cobb.
W~heelwright & Ollie, OF Minneapolis,
Mimi. attorneys for the Minneapolis. st.
Paul & Soult. Ste. Marie Railway Com.
ANY. ..
r. c.. Lindley and Sanford II. Z. Freud,
of ST. Paul. Mimi, and C.. j. Murphy.
Of Grand Forks, attorneys for Grea
Northern Railway Company.
A comedy called Marrying Money
which was produced recently in SYRIA
cuse, was written by A. Washington
ro.> ~ ottooho NJ thu 1~SnrNyi0n