The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-08-21
WATER UTILITY
TAKES CASE TO
DERAL |. COURT
Asks Injunction Against Rail-
road Commission to Prevent
Enforcement Present Rates
HEARING ON AUGUST "a
Plea of Company to go Before
Three Federal Judges
In St. Paul
HEARING ON AUGUST "a

Suit to have the present water rates
is Bismarck declared confscatory was
filed in United States district court
at Fargo by attorneys for the Bis.
marck Water Supply company. No.
tice also was served of the intention
of the company to make motion for
an interlocutory injunction prevent
ing the state railroad commission OF
the attorney general from any at
tempt to compel the plaintiff to .:,ain.
tain the present rates until just and
reasonable rates are established by
law.
The water company sets out that
the railroad commission held a hear
ing, which ended May 4, on the sub
ject of rates, that the plaintiff moved
for the establishment of temporary
rates but that this was denied, and
that the railroad commission had
never given q decision on the ques-
tion of permanent rates.
Delay Is Alleged.
Alleging delay on the part of the
railroad commission in determining
the matter to the injury of the plain
tiffs, the complaint says: "In spite
of the fact that the time for the FL
ing of briefs fixed by the said board
at the close of the hearing, expired
on July goth, 1922, the said board not
only has not completed its appraisal
of the property and its audit of the
plaintiffs books, but has taken no
steps to begin such appraisal or audit
and plaintiff is Informed and be-
lieves that it is not the intention of
the board to begin said appraisal
and audit in the near future and
plaintiff AYERS thai evenif the board
should now begin said appraisal and
it's audit of the plaintiffs books it
would be many months before final
determination of the value ~of the
plaintiffs property ard of pefma-
nent schedule of rates by the COM
mission"
The water company AYERS in the
complaint that for the fiscal year,
ending Sept. 20, 1922, its net revenue
will be but a fraction Of. one per
cent of the net worth of the property,
says it will not have no current funds
with which to pay any part of de-
linquent taxes and penalty, no cash
reserve to meet taxes for the year.
1922 and other charges. 1t asserts
that the existing rates have been
grossly inadequate and insufficient
and have resulted in continuing
coniscation of the property.
Reports Set Out.
"By reason of these facts it is and
for sometime past has been impos-
sible for it to borrow money for any
purpose or to attract the investment
of capital" says the complaint. Vari-
Gus schedules and reports of auditors
are set out.
The prayer of the company asks:
That the rates and charges be de-
clared in violation Of the federal con-
stitution in that they constitute con-
fiscation of property; that the de-
PENDANTS be restrained, until just and
reasonable rates are established,
from compelling the plaintiff, tis Of
ficers, ETC., to maintain in force the
present rates; that they be restrain
ed from taking any steps to maintain
these in force.
The plaintiff company is represent
ed by Davis, Serevance and Morgan,
St. Paul, and Zuger and Tillotson,
Bismarck.
Hear Motion Aug. "a.
The motion for temporary injunc-
ton, to be heard in st. Paul, Aug. "a,
will be before three federal judges.
Recently the electric utility of Minot
obtained an injunction against the
railroad commission similar to the
one asked here.
A conference was expected to be
held this afternoon or tomorrow
morning between the railroad COM
missioners and the attorney-general
to determine action to be taken by
the defendants in the case.