The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-11-08
OPERATORS TO
GET HEARING
ON QUESTION
Railroad Commission Sus-
pends Rates For 12O Days
Pending Hearing in Matter
PLOT is CHARG E D
j. l.. Sullivan, Attorney For
Operators, Sees Combine
With Pennsylvanians
PLOT is CHARG ED

"The proposed 40 to 60 percent
increase in the Ignite coal freight
rates in North Dakota would abso-
lutely throttle the infant coal min
ing industry in this state" said At
torney John F. Sullivan Of Mandan
counsel for the North Dakota Ignite
Coal Operators Association when in
formed that petitions were filed
with the railroad commission by
railroads for such an increase.
II despise muckraker, but on
the face of this petition l can see
nothing else than a gigantic COM
bine between the railroads and the
coal operators of Pennsylvania and
the east to throttle the Ignite indus
try in North Dakota.
"The main thing holding down
coal mining in this state today is
high freight rates. Twice during the
war freight rates affecting Ignite
coal were raised, 80 percent at one
time and 25 per cent at another
time. There has been slight de-
crease since.
Last summer the eastern operators
invaded North Dakota with price
on eastern screenings at q price so
low that larger users were supplied
with screenings at q price strongly
indicating it was below the cost Of
production and freight. It was so
close that practically all the largest
consumers Of screenings are burn
ing Pennsylvania and eastern screen
ings obtained under these contracts.
Are Underbid
"And today, declared Mr.. Sullivan.
the screenings from the coal mines
In western North Dakota are being
dumped on the ground as waste ma
terial in spite Of the fact that they
are as fine fuel as found any place. =
When anyone stops to cons. der
that in North Dakota we have All
exceptionally high grade of fuel -
the front door of our trade cities,
Minneapolis and St. Paul, and yet
the Pennsylvania soft coal operator
can mine his coal, load into cars,
ship to Buffalo by rail, ship by
water to Duluth, unload from ships
and reload on cars and ship to Min.
neapolis and St. Paul and sell there
at price so low that our western
North Dakota products can't COM
pete with it it would seem it is high
time the trade clubs of this midwest
section took an active interest in the
coal rate matter. There is no justi-
fication for the rate increase"
he indicated that what action the
coal operators might take must be
decided by the board of directors
but declared that action certainly
would be started to fight to the last
ditch any increase in North Dakota
rates.
Increases in Ignite coal rates pro-
posed on both intra-state and inter.
state business by the railroads oper.
ating in North Dakota will be viror-
ously fought by Ignite operators of
North Dakota, it is expected here.
The intra-state tariffs proposed by
the railroads. effective December 6.
were ordered suspended for 12O days
by the state railroad commission
pending an investigation and hear.
ing, the date of which will bet set
later i-'
W. P. Macomber> of Wilton, presi.
dent of the Washburn Ignite Coal
Company, informed of the filing Of
the petition. declared that increases
would be opposed.
"The ignite rates are high enough
now," he said. IF the coal compan-
les were making one-half as much
as the railroads they would be satis-
fled. There isn't Ignite mine in
the state making dollar today"
Mr.. Macomber said an increase
would especially handicap the indus
try since it is now seeking to de- \
velop a market longer distance
from the mines than every before.
The proposed increases, as figured
by the railroad commission staff.
range from 40 to go percent on one
line hauls and smaller increases on
two and three line hauls. A general
increase is sought in whatever man
ner Ignite is moved.
The railroads, in their petition to
the Interstate Commerce Commission
a copy Of which was delivered to the
state commission, cited a former de-
cision Of the United States Supreme
Court in which Ignite rates existing
many years ago were held to be con-
fiscatory. In their petition on state
rates the carriers point to the Hol-
mes and Hallowell case which involv-
ed bituminous coal rates in the
Northwest.
The ~osl.>.I