The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-07-27
PROPOSAL IS
LAID BEFORE
COMMISSION
Decrease in Purely Intra-
State Rates Urged to Build
Up Milling Business
EXPERT IN TESTIMONY
State Railroad Commissions
Investigation Into Grain
Rates Under Way
EXPERT IN TESTIMONY

A scale of intra-state grain rates
lower than the scale now in effect
was proposed before the railroad
commission today in it's general in
vestigation into grain rates in North
Dakota by v. E. Smart, traffic expert
of the railroad commission.
In urging the scale Mr.. Smart said
that the<reports Of the railroads do
not show that they are earning fair
return on their investment in North
Dakota at the present time, but thai
proportionately their earnings in
North Dakota are greater than other
portions of their systems and th4t a
discrimination he said exist e d
against North Dakota millers and
manufacturers should not be permit
ted to exist.
= The hearing also was called to in
quire into rates from North Dakota
points to the state mill and elevator
at Grand Forks, which Mr.. Smart said
would benefit by decreased rates. :
The position of the railroads, as
indicated in questioning Of p. A. Lee,
representing the Farmsrs Ora n
Dealers association, was that the in
ter-state rates from North Dakota
points to Minneapolis were too low,
and that il there is any discrimina-
tion to be removed it should be re-
moved by raising those rates instead
of decreasing North Dakota intra-
state rates. Since the proportion Of
business moving from point to point
within the state is very small as COM
pared to interstate movement Of
grain, decrease in the former would
benefit farmers of North Dakota very
little while an increase in the latter
would cost them a great deal of
money, according to Attorney Hag-
man of the Great Northern.
Rates to Grand Forks.
The rates from North Dakota
points to Grand Forks on grain in
many cases are almost as high as to
Minneapolis, though less the distance,
Mr.. Smart said, urging that this was
am impediment in building up the
state mill and elevator in Grand
Forks. The proportion of intra-
state business at present, he said,
was about per cent but urged lower
Yates for building up the grain and
-four manufacturing business within
the state.
The sale Of rates urged by Mr..
Smart for North Dakota varied from
cents hundred pounds on wheat
for distances less than five miles to
"a cents for distances from $50 to
400 miles, the decrease over pro-
pbsed rates varying from 10 to 20
per cent. The rates. he said, would
not be as low as the Minnesota scale
of distance rates that serves its
millers and distributors, nor as low
fas the Interstate terminal rates ap-
plying between North Dakota and
Minneapolis and Duluth.
"All five of our large carriers have
rails direct into Minneapolis and four
of them have rails into Duluth" said
Mr. Smart. "This has the effect of
giving Minneapolis a single line rate
to every consuming market in North
Dakota whereas the North Dakota
miller or manufacturer Is restricted
to single line rate to small por-
tion of the state and must depend
upon joint rates that will permit him
to compete with the Minneapolis
miller or distributor in reaching the
tory"
First Witness.
Mr.. Lee opened the testimony this
A~1V r.
Smart. He said that the intra-s state
grain and -four rates are 80 high as
to retard local business and that
some elevator men do not wish to
ship to the state mill az Grand Forks
because of the high intra-state rate.
He said he was not trafiic man and
based his ideas mainly on a compari-
son with the interstate rates. The
railroads representative replied that
since practically all grain produced
in North Dakota found it's market
outside of North Dakota 1t was to
the advantage Of North Dakota far
mers to have lower interstate rate
than intra-state rate.
Presents Many Exhibits
Nearly 40 exhibits were submitted
in the hearing bv 7 Traffic Expert
Smart Of the railroad commission.
showing the history of rate-making
in North Dakota and rate compari-
Sons. Railroad construction In tho
state hepan in 1872 with the North
ern Pacific at Fargo. he said. Rail-
road building nv decades was given
az follows: 1872 to 18a2--6a5 mile.:
1899 tn 1892. 1897 miles: 1892 to 1902
735 miles: 1902 to 1912. 1:ks6 miles:
1912 to 1922, 793h miles. There has
been no new railroad built in North
Dakota since 1916 when the Great
Northern extended line from Wild
Rose to Grenofa, excluding new
main line tracks. the witness said.
- nurpose Of The exhibits WIS -,
show. that the development Of the
wheat rsising country vas from. ea-
to west Mr.. Smart said. the exhibit
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