The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-12-15
RAILROAD RATE
PLEA REFUSED;
TO BE APPEALED
Commission in Third Action in
Case Turns Down 1ntra-
state Increase
FOLLOWS LONG FIGHT
Commission Grants IL IL Per
Cent Express Rate \
Boost
FOLLOWS LONG FIGHT

Railroads operating in North Da-
kota are expected to ask the Inter
state Commerce commission to in
crease intrastate freight and passeng-
er rates to par with interstate rates,
following the action of the state rail
road commission here late yesterday
in denying the increases asked. l,
was announced by B. F. Scandrett, as
sistant general solicitor Of the North
ern Pacific at the start of the public
hearing here, that such action would
be taken if the increase was denied.
Similar applications from several
states where the increases asked fol
were denied are pending in the In
terstate Commerce commission.
At the same time the railroad com
mission announced it had granted an
increase of 12k per cent on express
rates within the state, excepting on
milk and cream and stated this was
the increase granted by the Interstate
Commerce commission. The express
company had asked for an increase
of 26.5 per cent. ~
The denial of the railroad rate in.
creases asked for by the same board
which twice before ordered them.
marks another step in the railroad
rate fight which has been carried on
since last August. :.
~- After a hearing held last August
the commission granted the 35 per
cent increase on freight rates, 20 per
cent increase on passenger rate, bat
denied the SO per cent surcharge ask
ed for on Pullman rates.
Injunction Granted
The supreme court enjoined in the
increases on the ground that tbs
board had not conducted it's meeting
at which the increase order was adopt
ed in accordance with the statutes.
The board, which is composed OF
c. F. Dupuis, Sam Aandahl and Frank
Milhollan, again adopted the increase.
Milhollan dissenting,
The supreme court again halted
the action A new hearing was ord
cred. This hearing was started last
week and was concluded yesterday
Then the same board which twice
voted for the increase denied it,.
TO Test Law
The next step is expected to be an
action by the railroads in which the
extent of the power of the Interstate
Commerce commission over intrastate
rates in carrying out the provisions
Of the Esch' Cummins act.
At the hearing yesterday afternoon
William Lemke, Attorney-General-
elect, as interviewer, submitted addi.
tional date. A reply was received
from the railroads on Lemke's demand
for information, but it was claimed
the railroads had evaded order To
submit information regarding the
railroads holdings in subsidiary coal
and lumber companies.
After the conclusion of the hear
ing the commissioners held an exec
utive session and at 5 p. m. announced
they had denied the increase.
-ss Motion Of Denial
The increase was denied on the
following motions:
Mr.. Dupuis: Mr.. Chairman, l
move that the board of railroad COM
missioners deny the carriers appli-
cation for a 20 per cent increase on
the passenger rates, excess baggage
and other classes that come under the
20 per cent increase, and also deny
the IS per cent horizontal increase
in freight rates, also deny the sur
charge on Pullman rates, and also
the milk and cream rates, based on
the following reason: That constru.
ing the Legislative acts which the
carriers are at the present time op
Grating under to a greater or less ex>
tent it is questionable as to the com.
missions jurisdiction over said rates.
Mr.. Milhollan: 1 will suggest as
an amendment that the following be
added: For the further reason that
the rates applied for are unjust and
unreasonable and would work ire
parable damage upon the shippers and
producers of North Dakota by reason
of the fact that it was conclusivel!
shown at the hearing that the rail-
roads are now earning more than six
per cent on the investment"
Dupuis accepted the amendment and
a vote was taken.
A statement Of the operating ex
penses of Northern Pacific for the
month of October over the month OF
September, was given by Mr.. Lemke.
He said there was a decrease of s183,
600 in the payroll alone. 1t is said
by commission attaches that de-
crease in the payroll of railroads was
noted when they emerged from the
government guarantee period.
"a surplus of employees accumulated
during the period of federal control
was disposed off," said one commission
Beyond Lemke's Request
In denying the railroad increases
the commission went even farther
than Mr.. Lemke contended for. He
had stated that no objection could be
offered to an increase of IS per cent
based on the maximum freight law of
the state, which. he said, would put
North Dakota rates about on par
with Minnesota rates. Railroad COM
say that the present rates
are about Is or 80 per cent above
49, n feh inc