The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-08-25
FEDERAL COURT
JUDGES. ISSUE
COMPANY ORDER
New Rates to Be Effective
Until Determination by
Railroad Commission
COMPANY PUTS UP BOND
Required to Give $25,OO0 to
Protect Consumers in
Event of Reversal /

| Event OF Reversal
A IS per cent increase in water
rates in Bismarck, pending final de-
termination and fixing cf new rates
by the state railroad commission in
the. water case before it, was
ordered by three federal judges
in federal court at St. Paul last even.
ing. The decision followed a hear
ing on the petition of the Bismarck
Water Supply company for the in
crease, the opposition to it by at
torneys for the city of Bismarck and
the answer Of the railroad commits
sion. # 49,.
The water company was required
to furnish a bond of $4,000, pending
final determination OF the matter.
The same procedure, was followed in
this case that was followed in Mi
not electric rate case recently when
the case was taken into federal court
and an increase in rates ordered.
The water company's contention.
was that present rates are confsca-
tory and that there has been such de
lay by the, railroad commission In
determining the matter that the court
ought to order the temporary. in
crease pending the railroad commits
sion's decision.s = u..
The city intervened, n. F. O'Hare,
city attorney, and 8. J. Hunt, employ
ed as expert by the city in the recent
case, presented the city's opposition
to the company's plea.
The railroad commission set out
the progress Of y the case before it,
and denied undue delay in its ac-
tions.
Another Step In Litigation.
The decision is another step in the
protracted litigation between the city
Of Bismarck and the Bismarck Wates
Supply company.
The controversy between the city
and the water company began IN
June, 1919, with the filing of a petit
tion with the Railroad Commission,
complaining against the water COM
pany as to service, adequacy an.
rates. In December, 1919, and JAN
uary, 1920, a protracted hearing was
held before the commission, which
resulted in an order, on October 2,
1920, by the commission granting th'
water company an increase OF about
60 per cent in its rates. From that
order the city of Bismarck took an
appeal, which has never been tried.
The validity of that order, however,
was attacked in certiorari proceed
ing in the supreme court of this
state and the court held the com
mission was without authority to in
crease the rates, solely on the grounI
that there was neither notice NOR
hearing of the proceedings for an IN
crease in the rates before the board,
the matter being proceedings IN
which decrease of rates was sought.
Consumers r;le Petition.
In December %, 1921, R. P. Logan
and other consumers filed a new pet.
tion with the railroad commission,
alleging that the rates were excessive
and the service inadequate, and pray
ing for a reduction in rates. On
February "a, 1922, the water COM
pany filed counter petition alleging
that the rates we. inadequate ano |
and asking for an in
crease The two petitions were
heard together on May 1st, End, Bra
and 4th, 1922. BY stipulation the
testimony in the prior hearing was
used, and in addition much new evi-
dence was offered by both sides. AT
the, close of the hearing the attor-
neys for the water company moved
for temporary increase pending the
final decision on the merits. On May
rs, 1922, the board denied the mo-
lion for temporary relief, stating:
'This commission il OF the opinion
that in order to justify an emergency
increase it must be conclusively
shown that the operating expense of
the utility exceeds its operating rev.
,nue." The water company thereafter
applied to the federal court for tenn
porary relief, with the result. above
stated.
Additional Litigation.
Additional litigation between the
,ity of Bismarck and the Bismarck
Water Supply company consists OF
IN action commenced by the city in
September, 1920, in the district court
IF Burleigh county to annul the fran
.hise of the company, which action
las been removed to the federal court
md is still pending; an action by the
,ity of Bismarck against the water
company commenced at the same
line in the state court to acquire the i
through eminent domain,
This last suit was removed to the
'ederal court and there demurrer
o the complaint was sustained and
he action dismissed.