The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-11-09
RATE PROPOSAL
WOULD FORCE
LIGNITE BOOST
Operators Say That Increase
Might Be From $1.OO to
$1.5O a Ton
SUSPENDED 4 MONTHS
Average Increase Asked OF
One-Line Hauls Is Placed
at 81 Per Cent
TAKE ACTION

MinOt. Nov. 9.-The North Da-
kota Lignte Coal Operations. as
sOciatiOn has forwarded an ap-
peal to the Interstate commerce
commission pleading for q sus-
pension of the proposed new liR-
mite rate tariff filed with the
commission Wednesday, by the
Northern Pacific railroad accord
ing to an announcement by
James F. Milloy of this city, ex-
ecutive' secretary.
In the cOmmu mic cation to the
Inter State Commerce commits
sion the new rates are declared
to be unreasonable and prejudi-
cal to shippers and burden on
consumers of the northwest Pre-
liminary work has been started
toward securing cooperation
from civic organization in North
and South Dakota and Minneso-
ia in opposing the establishment
of the new tariff
The proposed increase in the lig
mite coal freight rates in North Da
kota might mean a boost in the price
of coal from $1.O0 to $1.50 a ton, &C
cording to one Of rae largest opera
tors in this section. The increas'
would restrict the present marke
extension of the Ignite coal indus
try, and therefore would entail t.
the operators great loss becans
of the expansion they have undertak
en-. The operators, to continue, ne
cessarily would increase the price o
coal greater than proposed increas
in the freight rates, it was explained
Since the railroad commission ha
suspended the proposed, rate boos
for 120 days, and similar delay j
expected before the Interstate Com
merce Commission, increased rate
would not come in any event unit
after the peak Of the 1923-24 bust
ness.
The proposed increases under tn
basis laid down in the petition q
the railroads, was estimated at AZ t
60 percent on one-line hauls b.
Chairman Milhollan of the railroa
commission. A detailed compariso
md study worked out by employe
Of the commission fixes the averag
proposed increase on Ignite at 81.
percent on one-line hauls and 81 l.
percent on two or more line nauli
the terms being used to describe
movement which passes over two Q
more different railroad lines. Th
same increase asked for intra- stat
business was asked for the inter
state business.
An Investigation of reports OF tn
railroad commission reveals that j
1920 more than 80 percent of tn
Ignite moved on a one-line haul, o
on one railroad from mine to des
tination, while in 1921 s5 percen
moved on the one-line haul, on whic
the greatest increase in rates
asked.
Under the proposed increase tn
cost of hauling one ton of coal frcr
Wilton to Bismarck would be raise
from 81 to IS cents, an increase G
1874 percent. It is proposed in tn
tariffs to provide 61-cent ma ximur
for hauls of 80 miles or less.
The rate for hauling ton Of Goa
70 miles would, be increased 73 cent
to $1.l9, or 63.1 percent; 100 mile:
81 cents to $1.45 40 1-2 percent; Is
miles, $1.22 to $1.82, 49.2 percent
200 miles, $1.70 to $2.55, 80 percent
800 miles, $1.S2 to 1886, 81 1-2 pc
cent, according to the comparison
made by employees of the commission
Considerable coal is now bein
moved from North Dakota mines t
Minneapolis. The present rate pc
ton of Ignite from Wilton is s2.4
and under the proposed schedule
would be $3.71 a ton, a boost of 8
percent according to officials.
The railroads in their petition cit
ed the Holmes and Hallowell case, i
which coal rates from the lake dock
to points in Minnesota, North an
South Dakota, were revised in Sep
tember, 1922 and later.