The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-07-26
RAILROADS ASK
RATE INCREASE
WITHIN STATE
Would Boost Freight Rates
25 Percent or More to Meet
Congress Guarantee
LEGISLATIVE ACT VOID?
Railroads Hold Nonpartisan Lea
que Law is Superseded by
Esch- -Cummins Act
LEGISLATIVE ACT VOID?

Representatives of railroads
operating in North Dakota con-
ferred with the board Of railroad
commissioners this afternoon,
asking an early hearing on the
petition of the railroads for an
increase in freight rates on
freight moved from point to
point within the state.
The rate petition filed with the
commission by the North Dako-
ia carriers asks increases on in
trastate freight rates to equal
the schedule to be made by the
Interstate Commerce Commits
sion, it is understood.
The railroads wanted hearing on
their petition early in August. so that
the increase they expect to get in the
state will take effect at the same time
the increases on interstate freight
rates expected to be granted soon by
the Interstate Commerce Commission
become effective.
Attack State Law
Railroad rates within the state now
are fixed by law, passed in the 1919
legislature as part of the Nonpar.
tisan league program. The railroads
take the position that this law has
been superseded by the Esch- Cummins
transportation act passed by the ma
tional congress providing for a fixed
return for the railroads of the country
upon the investment.
This bill materially lowered rates
on some classes of freight.
The increase asked by the railroads
al the present time are based upon a
varying schedule, it is understood.
Rates on grain, products manufactur.
ed from grain and Ignite coal, will not
be disturbed, it is said while the rail-
roads ask big increases on non-essen.
tial products.
Amount Estimated
The amount of the increase which
would be necessary to make the
schedule conform to that of the In
terstate Commerce COMMISSION,
which, it Is expected, will be fixed
soon, is estimated variously from 25
percent to 40 percent. One source
of information placed the exact
amount asked by the railroads at
24.59 percent, but the petition finally
will depend upon the action of the
national commission, it is said
Should an increase be given in in
trastate rates be granteu similar 70
that fixed for interstate rates, the
freight rates within North Dakota
still would be lower than the inter-
state rates, it is said.
The schedules drawn by the rail.
roads. it is said, provide for increases
varying from little or no increase to
as high as so per cent on non-essen.
tials 1t is said the railroads
have taken the view that the
increase should be as light as possi.
BILE on the essential agricultural pro.
ducts of the state and on Ignite coal,
which industry is in the process OF
growth, and make higher on articles
which are classed as luxuries.
The new schedule. if granted, will
become effective about Sept. l, it is
anticipated.
May Alter Petition
Representative of the shippers Of
the state are expected to make appear
ance at the hearing which will be held
by the commission.
The representatives of the railroads.
it is said, may ask an alteration of the
petition now on file to provide for an
added increase to meet proportion Of
expense to North Dakota railroads un.
der the recent wage award granted to
railroad men.
The interstate rate increases asked
by the railroad now total S1,017,O00..
600, and have been within the last
week supplemented by petition of rail.
roads for added increases to cover the
wage awards.