The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-01-03

~ "ppAOAllktdkGly ~b
year. Under similar connections with
the Great Northern at Minot it has
there hauled approximately 500 car
loads of Ignite coal for an average of :
twelve miles, realizing therefrom SIS
per ton only, or $1.S3 per carload for
Sucn haul. delivered to the Great
northern road for an average haul
and charge based thereon of sixty-fve
miles, from which the Great Northern
received 1888 per carload. These and
many other conditions have placed the
500 line at a disadvantage in this
traffic. h pro-rating feature of the
statute alone has reduced its freight
receipts on ignite approximately $13,-
600 below what it otherwise would
nave received, n nearly that amount
under what the same freight carriage
would have yielded the Northern Paci-
tic or the Great Northern under usual
conditions on their lines. It's total
receipts amount to more than it's
actual out-of"pocket costs, or actual
costs of transportation, but are from
! $4,000 to $4,000 less than the total
costs Including fixed and overhead ex-
penses properly ~chargeable to the
carriage Of this commodity and
against the earnings therefrom. That
" - NOdl- DY LnB SOU
line within this state during said AS
cal year was not only non profitable
out occasioned a loss to 1t when its
nxed expenses objectionable to all
tranc are in proper proportion and
amount assigned to and charged
against the earnings from this com
nloolty: From the foregoing epitomiz-
ed findings OF fact it is held:
.(a) The statutory freight rate ia
presumed to be reasonable. which pre-
ulpt1 continues until the con =
trary appears and the rate is shown
beyond a reasonable doubt to. be con-
iscatory. ~ -, -. 800
(b) Proof that a. rate is pon-con,-
pensatory, that is. while producing
more revenue than sufficient to pay
the actual expenses ~occasioned by the
transportation Of the commodity but
insufficient to also reimburse for that
proportion of the railroads fixed or
overhead costs properly objectionable
to such commodity carried, is not sur
hcient to establish that the rate is
confiscatory in law.
| Cc) In order to establish such a
non~compensatory rate to be confisca-
Tory 1t must further appear that n
dehcit under the rate affects the .neh
Iintrastate freight earnings materially
and reduces them to a point where
they are insufficient to amount to a
reasonable rate OF profit on the amount
ottS1e value of the railroad property
within the state contributing To- nro.
duce such net earnings.
|, fd) To ascertain whether such NET
lntrastate freight earnings are thus
Iconhscatory because u~nreasopahIv
low, the railroad attacking the Iegfs-
lative rate on such grounds must by
proof establish the total value al it'd
property devoted to railroad use and
within the state, and then by proof
establish the proportion thereof euuit-
ably objectionable as producing SUCH
net lntrastate or domestic freight
earnings after which the reasonable
ness of the gross net return from. in
trastate business upon the railroad in
Yestment producing it can be deter
mined.
(e) For the next and final stem i'm
the proof of confiscation under the
rate It must further appear either {t)
that the net total intrastate freisl,t
earnings are insufficient to Weld q.
FAIR and reasonable return on the fair
valuation of the railroad properly
used to produce such net earnings
and that the commodity in question il
carried for less than sufficient to meet
all. expenses, including o~ut-of-pocke
costs and fixed charges: or. f21 III
must be reasonably certain that the
loss on the commodity under the
commodity rate attacked reduces the
balance of the net intra state. freight
~ I.hSs 70 a point where such total
net intrastate earnings, including ne
loss on the commodity a fail 10
Sleld a falr and reasonable return on
rne investment, measured under the
ABOVE rules, upon making of which
proof the confiscatory nature of the
rate is established.
81 In determining the vaI,,a AZ
railroad properties proof of the So
called railroad value is insufficient tn
establish the fair actual vaIlie ,,,o1r
which AS a basis apportionment og
values n reasonableness Of rates
nay be computed.
60 Measured by thu fora.nsnp
rules, which seem to be the Jaus 40
applicable to the facts In this cass
there is a failure of proof on the narS
OF all the carrier defendants In srah
me Northern Pacific and Great
nrnas Z. rallroads nave offered no
the approximate proportion thereof
utilized to produce it's domestic aarn
ings: and the 500. while attemntinm
such roof has failed to make tis
Iroof required by the Minnesota, Mis-
/, es, $50 Us 352-560. and other feSar-
al decisions.
Chi Under such failure of n,.,oe
the presumption Of reasonabieness Az
the rate attacked continues and +ha
atute rarst be held to prescribe Al
ne liz So lpIN IHfsH& mira S} a }AE
transportation of coal.
Syllabus by the court.)
Proceedings on application 81, 49,
half Of the state for an original xvy.i4r
directing the observance of the freieht
rates in question and enjoininr f1,s
collection Of higher than the lnaxirnure
n statutory rate.
Writs granted. Costs and disa,nrss
rtaents OF state ordered taxed by t1,e.
clerk. Z .ip:
Opinion Of the court BY csosx
Ar1drew Miller, attorney general
and G; e Young and Alfred zuger. 40.
sistant attorneys general. attorneys
Tor the state: Watson IL Youf1~ AZ
Fargo, and Charles w, Bum d III
CHARLES Donnelly of st. Paul, aSyor4
news for the Northern Pacific Rail1Tav
Co.; A: II. Bright. John u. ErdaII ana
Cobb WheelWright Il Ollie of Mime
apolis. MINI. attorrMvs for the Min
%neapolis, ST. Paul & Sga,ilt ste. Maria
Railway CO.: II. G. SsIndley and saYs
ford H. e. Freud Of ST. Paul. Mirn.
and al. ]. Murphy of Grand Forks, III.
J atfor'leys for Great Northern 4 Il. Go.