The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-27
LIGNITE CASE
: OF RAILROADS
is ENDED HERE
Light, Traffic in North and
South Dakota Means High
er Operating Costs, Claim
COMPARISONS GIVEN
Railroad Case Based on Claim
That Coal Rates in Other
Fields Are Higher

Representatives Of railroads sup
porting the plea>for increased freight
= rates on Ignite coal from North Da-
kota mines drew their case to close
today before w. H. Wagner, examin-
er for the Interstate Commerce Com
mission, and the North Dakota Rail-
road Commission, by presenting Ella
borate comparing coal rates and dem
sity of traffic through the north
west.
The railroads presentation of their
case came to close at 10:30 o'clock
this morning, and it was continued
until sometime after April 1, when
the protestants will present their
arguments for retention of the pres
ent Ignite rates.
Examiner Wagner and Chairman
Milholland of the state commission
asked and received assurance from
the railroad representatives that the
rates, which, had been suspended un-
til April 4, would not be put in eff
feet pending completion of the case.
b. F. Moffat, general freight
agent of the Minneapolis and St.
Louis Railroad, the first witness to-
day for the railroads, went immedi-
ately into the question of the relative
cost of moving railroad tonnage in
territories into which Ignite is ship
ped and other portions of the sys-
tenn.
He said that 72 percent of pspula-
tion in Minnesota was in the south
eastern part of the state, to which
coal moves on rates comparable with
the proposed Ignite Increases, while
\ much Ignite moves into the north
western part of the state not so
heavily populated. EndeavQSing to
show that it costs the railroads more
proportionately to move. freight in
territories of small population. he
said that the Minneapolis and St.
Louis experienced deficit on its
lines in South Dakota in 1922, be-
cause of the relatively light freight
traffic. The road derived 3.3 percent
of its revenue from its South Dakota
lines, he said, which was less than it
should in proportion to the number
Of miles of rails there.
Compares Rates
He also went into comparison
of rates from coal fields other than
the Ignite fields. The rate on coal
from Roundup, Montana, to Aberdeen,
S. D. is 1896 per ton, he said, while
the present Ignite rate for the same
distance is $&16 and the proposed
Ignite rate is $4.31 per ton.
Tho-
Watertown, he said, is $4.44 per ton,
the present rate on Ignite for the
same distance is 1928 per ton and
the proposed Ignite rate $4.68 per
ton. From Dietz, Wyoming, to Ard
more, S. D., both points on the, Bur-
lington route, the coal rate is $277 |
per ton and the proposed Ignite rate
for the same distance is $261, he |
said
Mr.. Moffat also introduced figures
to show that Iowa intras tate rates
on coal were, as a whole, higher
than the proposed Ignite rates.
Light Traffic Faster
w. Y. Wildman of Chicago, COM
merce assistant for thes Chicago and
Northwestern Railroad, also went in
to the question of the cost of moving
traffic in South Dakota and North
Dakota, to show THAT because of the
relatively light traffic as compared
to other states on the system, the
railroads operating expense in South
Dakota and North Dakota is greater.
Because of the light traffic density
in South Dakota, he said, in a ma
jority of cases the railroad could
not obtain train loads equal to the
full carrying capacity of the engines.
His testimony dealt chiefly with
South Dakota, because the. North
western has but IA miles of railroad
in North Dakota. q
The railroad case, as adduced from
witnesses, is based on the theory
that Ignite coal rates from North
Dakota mines are extremely low as
compared to coal rates from other
fields in the Northwest, that when
all factors of the cost of moving
railroad tonnage, the movement Of
caFs full and empty, the operating
experience in North and South Da-
sota and northwestern Minnesota are .
,aken into consideration it is estab-
ished that the railroads do not re-
,eive from hauling Ignite coal "a
sufficient rate to enable it to make
my profit on the business.
Operators Case Later
The Ignite operators and repre-. :
'entatives of the states Of North and
south Dakota and Minnesota have
Turing the two and half days hear
ng here introduced no evidence in
he case, the evidence being confined
Q the carriera presentation. When '
t is resumed after adjournment, the Q
,rotestants will endeavor to show n
hat the present Ignite rates are
and. that the proposed 9
ates would mean simply destruc-
ion of the Ignite industry which !.
would be barmSul to the. operators,
he railroads and the public alike.
Comparisons Made -
Comma riSnUs ~ rna1 roSoo i, x,o ~ |