The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-03-06
MASTER Will
DECIDEWATER
COMPANY RATE
Judge Booths Memorandum
Decision in Case Received
in Bismarck
is S u ES INJU N CTION

The next step in the case of tn.
Bismarck Water Supply Compan,
against Railroad Commission IN
volting rates Of the company is ex.
pected to be the appointment of /:
master by the federal court to take
testimony on the matter of .whe.
Their or not the rates laid down by
| the railroad commission are confis.
catory. This was the rule filed in a
Mjnot utility case in which similar
action was taken.
The case of the local company
first went before the federal court
in August, 1922, on application by
the water company for an injunc-
ton to restrain the railroad COM
mission from enforcing the ten-ex-
listing rates. The court, composer
of three judges granted an inter-
locutory injunction upon conditions,
one of which was that pending the
final hearing plaintiff should not
charge rates higher than IS percent
in excess of then-existing rates. An
other condition was that the injunc-
ton should not interfere with The
investigation then being carried on
by the railroad commission with q
view of establishing just and rca-
sonablc rates"
Since that time, the memoran,
dunn of Judge Wilbur Booth of fed
eral court, st. Paul, says, the rail-
road commission has prescribed a
Il
the 35 percent increase: Based upon
supplemental bill and affidavits,
the plaintiff asked for restraining
order against the enforcement of
the new rates.
Doubts Premise
Judge Booths memorandum con-
tinues:
"The presumption is that the new
rates prescribed are just and rea-
sOnable, and l should be loath to
interfere by restraining order with
the rates thus prescribed until after
a final hearing of the cause, if the
showing made on this application
consisted simply in comparing con-
flicting evidence as to values and
drawing conclusions therefrom.
but a somewhat careful prerusal
of the record that has been introduce
ed at this hearing has raised in my
mind grave doubts whether the con.
illusions of the Commission, on
which the new rates were based,
were not reached either by .assum-
ing wrong premises, or by erroneous
reasoning, or both; and also whe-
Their a materially different result
would not have been reached if these
errors has been avoided.
"Of course it is not possible from
this preliminary hearing to state
positively these conclusions, but
they appear more than probable
from the consideration / have been
able to give the matter. To be more
specific, in the case of the City of
VS.. Rand, Receiver, de- |
cided by the Circuit Court of APP
peals of this circuit in January
1928, a number of the same ques-
tions involved in the case at bar
were discussed and determined. One
was that the matter Of going value
could not properly be disregarded
in making up rate-base for a pub
lie utility, even though the past fl
nancial history of the utility COM
pany showed large earnings and in
excess of what, under state supervi-
sion, would be considered by the
Commission, apparently on the
ground disapproved by the Court in
the case just cited.
Must Consider Prices
"Again, in the same case, the
Court decided that the present day
prices, though caused by the war,
not only should be considered in
making the valuation of a utility
property, but thu, to