Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1920-09-02
DECISION OF N. D.
RAIL COMMISSION
PRESENTS PROBLEM
Findings on Rate Increase
Based on Book Valuation
Taxation Basis of Railroads
Is Much Higher.

blSIHdTCk, ~. ~. aug. 20. NopcEIA')
The decision of the state railroad
commission granting the railroads
petition for increased freight and
passenger rates, which, the commits
sion is informed by the railroads.
will he effective September l, brings
a new problem lc the front
The commission announced that It
based it's findings on the heck value
of the roads. The figures presented
by carriers show that :ne valuation
o. the roads for taxa:i1n in The state
is much higher than the valuation
token for rate-mahir.s purposes.
rio railroads, l. Is cxpecrad viii
take advantage of tins situation 10
press strong dece'rI for the re-
GuttlOn Of tho assa i,':L valuation fn'
ta>a1inn. or in He ru1lll;, make i
demand that tire rates be increased
to provide a return upon that basis.
The railroads maze no specific re-
yrrE":itatiC; s |: rae i, cGua'iHA
TIN noard. The =, !" ~! rtt":7 is
Guaranteed 'iy ~ ;:1c-- u-d the
i.-ter the 'lEes N other rNpansas
IL" :rcate1 Mi be IL rates.
The original book value, or cost,
Of the railroad property allocatcd TO
Mort hDakota for the c. & n. W,
C. NJ. & St. p, G. ~, 500 lines,
Farmers Grain and Shipping Com
pany and the Midland Continental,
en- which the commission accepts for
rate making purposes is $199,557,-
7G6.43. The assessed valuation is
s21S,345,777.00. The reproduction
cost as OF January l. 1920 is repre-
esnted as 9,7O9,2443S. The
railroads represented that they made
an average per cent of profit, for all
lines, of LII percent during the year
ending May 81, 1920.
The effect OF the state railroad
commissions decision in the rate
case, as announced yesterday, may
prove to be of great import to the
state. While the intrastate revenue
Of the railroads is about per cent
of the total revenue derived from
the state-the great revenue is de-
rived from intrastate business-yet
the disparity Of rates existing be-
tween North Dakota, Minnesota and
South Dakota is greatly increased by
the fiat increase of the commission.
The commission, however. says that
efforts will be made to remove this
disparity, the case not being finally
closed by the granting, Of the in
creases. -
The maximum railroad freight
act, passed by the Nonpartisan lea
gUe legislature in 1919, is held to
be contiscatory. The law thus is no
longer recognized as law in the state
by the commission.
Considera BILE surprise was ex-
pressed when the commission z rant
cd the fiat increase on freight and
passenger rates and denied il as to
Pullman rates. Several weeks ago
it was said that the commission
would oppose increases in grain and
put the increase on "luxuries." The
commission holds that a surc:. arge
onaleeping and parlor car fares does
not appear to be proper method
for securing revenue for the car
riers for the reason that there ap-
pears to be no separate se.vice per
formed by the carrier to the pat
rom"
1t was reported here toGay tha t
A. c. Townlely, who was in the city
early this week, vigorously opposed
the proposed action of the commits
sion granting rates and ignoring the
state freight law, which Nonpartisan
league speakers hailed as victory
in 1919.
The commissions order also pro-
vides that the minimum charge Of
$500 now applicable to certain
carload shipments, be continued and
that minimum charge of so cents
for each less than carload shipment
be continued