The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-08-12
Shippers of State Through EN-.
ployers' Association Say In
crease Would Be Too Much
STATE LAW ATTACKED
Representative of Carriers Says,
If State Will Not Act, Inter-
state Commission Must

per CcuI Ill SIdCc lIcA6HI ldICo, oo
asked by railroads, was voiced today
at opening of hearing before the state
railroad commission on the carriers
petition for increase in both freigh:
and passenger rates within state COM
mensurate with increases granted oy
Interstate Commerce commission.
The hearing is being held in the SEN
ate chamber of the state capitol.
'7ShippeCs hold that thirty-fiye
per cent increase in interstate freight
rates, or any increase State Commits
sion finds justified, should be based
upon schedules as contained in state
law of 1919, and not upon present
rates." said Richard E. Wenzel, OF
Grand Forks secretary of employers
association of North Dakota, in an
interview at the opening of the hear
ing. s-e H" -...
Railroad rates were increased dur
ing the war twenty-five per cent by
the government, and if a thirty-five
percent increase is added to that
North Dakota freight rates will be
fully 40 per cent higher than rates
in Minnesota, and higher than in
South Dakota, Wenzel declared. He
added that shippers do not oppose
reasonable advance in rates for car
'riers.
Few Shippers Represented
Shippers were represented at the
hearing by ', enzel,, R. NJ. Stanton,
secretary of Grand Forks commerce
organization, and w. j. Dundeen, g..
d. See. S. Morgan and E. A. Shirley,
CT Minot.
G. F. Dupuis, of the state commits
sion, presided. mmissioners Aan-
dahl and Alilhollan being absent.
Fred Bremier, director OF utilities OF
commission, and V. E. Smart, traffic
expert, sat with Mr.. Dupuis.
The railroads case was presented
by 3, w. Scandrett, assistant general
solicitor of the Great ..orthern, St..
Paul, took up the case with introduc'
ton of testimony, and "A. H. Lessalr,
general attorney for the 500 lines.
Says Act Void
Mr. Scandrett told the commission
that the state law fixing maximum
freight rates is void, having been
nullified by act of Congress turning
roads back to the carriers, which
provided that level of rates then Oh.
tanning should be level upon which
legislature and commissions should
act in future.
He also declared railroads would
show present rates in North Dakota
are confiscatory, and that the same
increase as granted in interstate
s. II, rofpc wit Thin
North Dakota.
1--WE will offer testimony which we
are satisfied will demonstrate that
the rates not only are unreasonable
and unjust but are confiscatory' he
said.
National Act Provisions
After stating the provisions of the
Esch-Cummins transportation act
which he said provided that if there
is a conflict between Interstate Com
merce commission and state commits
sions, and the state commissions shall
fail to fix rates to yield a return
contemplated under the act the pow
er to fix rates within the state shall
60 to the Interstate Commerce COM
mission. Mr.. Scandrett said: I'VE
would much rather have the commls-
SION act that for the matter of fin
ing rates within the state go back
to the Interstate Commerce commits
sion.' r..
Can Make Adjustments
He also told the commission that
there is nothing in Esch-Cummins act
to prohibit the commission from ell
tering local complains and making
adjustments of rates within the state
so long as the adjustments do not
Interfere with the general ADJUST
ment of rates.
A. H. Hogeland, chief engineer OF
the Great Northern, was first wit
ness placed on stand by carriers. who
expect to show by testimony and by
testimony taken by commerce com
mission that the state rates are con-
fiscatory.