The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-02-24

and commission made freight rates.
That feature was brought out at
the hearing. when George N. Ken
niston, representing the shippers of
Bismarck, and shippers OF numerous
other North Dakota cities. advised
the committee TO move slowly in at
tempting to establish new rates,
pointing to the theory that legislative
made rates might, because there is,
no opportunity to give them the thor
ough study to which they are entitled,
become disastrous to the state, and he
feared particularly for the interests
OF the western section of North Da-
kota.
road committee. sponsor Of III. B. No.
29S, which the house without discus
sion, and with only one amendment,
under which Ignite coal is exempted
from the workings of the class cover,
Ing COAL appeared before the commit
tee, as did Attorney Charles j. Muir,
ply, Grand Forks, p. II. Burnham, st.
Paul. assistant general freight agent.
OF the Great Northern, and Henry
Northern Pacific. Lindquist, repre-
senting Paramount. N. D.. interests,
also addressed the committee briefly.
No final action was taken, the, COM.
mittee adjourning till 10 o'clock next
Monday morning to further consider
the question.
Mr.. Dupuis opened the discussion.
with statement, Of the purposes Of
the bill. He said it was the adoption OF
ative in Minnesota. He said North Da-
kota is operating under a blanket
tariff, operative for the last Is or 20
years. In that period, he contended
the state had developed from 200 to
500 per cent, and that, therefore, the
rates are now high and unjust.
The bill, he. explained, contemplated
q reduction Of approximately % per
cent in the rates on intrastate freight.
Taking this UP from the point Of view
OF gross earnings, he contended 1t was
q reduction of only t5h per cent, and
he cited, too, that the Northern Paci-
fie was operating in this state on a.
margin, slightly in excess OF that, as
compared with the operating expense
over the entire system. In other words,
the operating expense In North Dakota
is nearly six per cent less than the
operating expense on the system, and
therefore, the proposed reduction in
gross earnings OF 5h per cent. within
this state, as contemplated by the
rates proposed in H, B. No. 298, would
not quite take up what Mr.. Dupuis
termed as excess earnings in this state.
Lindquist, of Paramount. said the
N. p. operating expense on the system
was 1914, while in North Dakota 1t
is placed at 52.99. He said the bill only
asked a. partial elimination of the
difference in earnings between this
state and the earnings on the system.
George Remission took up the ques-
ton Of the seriousness of attempting
to establish new rates without thor
ough expert knowledge Of the effect
that such new rates might work. In
tampering with rates, said Mr.. Ken
niston, the legislature. was entering
into the very essential things Of every
day life. He urged that the commit
tee go slow to avoid an injustice to
anybody.
Attorney Murphy, representing the
Great Northern railroad. called the at
tention Of the committee to the fact
that this legislature. in the passage OF
8. b. No. ", the so-called Eastman
act, had committed itself to the policy
Of placing in the hands of the state
railroad commission the power OF
making rates. Now an effort was be-
ing made to take that power from the
commission by putting into effect a
schedule Of classiications and rates,
doing awaynwith. the powers OF the
commission, and making that BODY a.
mere ornament. The old theory that
legislatures should make rates has
given way before the policy of COM
hitting such power to commissions
bodies equipped to make an expert
study of the rate problem, and apply
such measures as may appear neces-
sary to effect proper results. To at
tempt to establish legislative made
rates here, would, contended Mr.. Muir
ply, be q backward step in dealing
with the rate problem. -
II would be possible for commits
sion to investigate the conditions in
Minnesota. where the same rate that
is proposed for this state, Is effective.
The legislature cannot do so, and
would be going blindly on the PROPOSE
ton, BY an Investigation commits
sion could determine II the Minnesota
rates were adaptable to the conditions
in North Dakota, where traftc condl-
tions are so much dtnerent than they
are in Minnesota.
Henry Blakely discussed the ques-
ton of rates operative in Minnesota,
fixed by the railroad commission or
that state under the provisions Of the
eastman act. The rates in Minnesota
he said, have not been accepted by the
railroads, and the companies are seek
ing to enforce their position in the
courts.
In Minnesota, the business, Mr..
Blakely said, was from 400 to 600 per
cent greater than in North Dakota.
The speaker took up the possible
effect of the adoption OF g. schedule
OF rates such as proposed. The Cash
man rates in Minnesota are far lower
than the interstate rates, and should
North Dakota attempt to adopt them,
then the terminal Jobbers in Mime
sofa would make demand for q
fhrafY@h rata from their nOiTltS to
points in North Dakota. With the
same rates effective in the two states,
Mr.. Blakely said the Interstate COM
merce commission might be prevailed
upon to order a through rate on the
basis of the eastman act in Minne-
sofa, and thereby bring about far
reaching changes of O most drastic
nature as affect the jobbing interests
OF North Dakota.
Mr.. Blakely cited a number of in
stances to show the possible effect of
North Dakota points, based on the
eastman, or the Dupuis, acts A Far
20 jobber now has advantages over
the twin city jobbers in supplying the
North Dakota trade, and this, said
Mr., Blaleely, would be wiped out by
the change that might be worked II
the rate should be adopted.
Citing fourth class rates, such as
canned goods, Mr.. Blakely said the
present rate from st. Paul to Buffalo,
N. D., was 81 cents. while the COM
carload lots, and re-ship rate Fargo
to Buffalo on smaller lots is San
cents. ~
Should the rates under the eastman
law in Minnesota be made operative
from St. Paul to Buffalo, the rate