The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-04-23
LIGNITE RATE
BASE NOW IS
ON HIGH LEVEL
V. E. Smart, Witness for Op.
orators, Declares Haulage
Is Profitable Revenue
SHOWS THE INCREASE
Production of Coal Boosted on
Present Rates. Making
Business for Railroads

North Dakota Ignite coal opera
tors, in fighting the railroads pro-
posal to increase freight rates on
the commodity approximately SO
percent, at the hearing being con-
Quoted jointly by an examiner for
the Interstate Commerce Commission
and the state railroad commission,
have declined to base their case SOLE
ly on economic grounds. Through v.
r. Smart, traffic expert of the Miss
ourl railroad commission and form
erly in the same capacity with the
North Dakota commission, told the
examiner and commissioners in his
testimony today that Ignite coal
rates on the basis of principle in
rate-making laid down by the Inter
state Commerce Commission in one
case are too high, that Ignite coal
produces good revenue for the rail
roads operating in North Dakota
and is carried under conditions more
favorable than many other commo-
dltles, and by comparison left the In
tlmation that because of the present
basis of rates a big industry had
been built up in the state with the
result of increased tonnage to the
railroads and increased population
within the state to consume other
products shipped over the railr. ad
lines.
Measured by the factors usually
used in rate making, Ignite coal rates
now are just and reasonable, Mr..
Smart asserted, and he also dcclar-
cd that on this same basis Ignite
was modify which should en-
oy as low rate ms possible, because
" its great value to citizens of the
tate.
Cited Shreveport Case
In beginning his testimony yester-
cay Mr.. Smart cited the so-called
Shreveport rate case, into which in
trastate rates in Texas and Ignite
ates were drawn in, there being a
gnite producing field in Texas. The
lterstate Commerce Commission
found reasonable maximum rates be-
tween Shreveport and eastern Texas.
~ later proceeding Shreveport
Nlthdrew that portion of the COM
laint with reference to Ignite and
ne l. c. A. schedule was never pub
lished.
Mr.. Smart contended that the In
'erstate Commerce Commission es-
tablished by its first order a method
for determining what would be rea-
*onable maximum rates between
hreveport, La. and points in eastern
exas. Inasmuch as that method in
,tolved taking fixed percentage of
the Class D rate fixed /by that COM
mission as reasonable, he contended
That similar method would result
in reasonable Ignite rate for North
hakota, and following the Interstate
Commerce Commissions formula
based upon the present Class u
rates in North Dakota, the result
would be Ignite rates would be con-
slderably lower than the rates now
in effect, and very much lower than
The increased rates proposed by the
railroads.
Production Increased
Mr.. Smart told the examiner and
commissioners that 1896 cars of
Ignite coal moved on the railroads
curing the yearly period ending June
III, 1928, and said that all of these
movements were carefully analyzed
before the hearing. The average haul
Of Ignite shipments, he said, has in
creased from about 40 miles in 1911
10 more than 1876 miles in 1928, and
ignite production in North Dakota
increased from 5O2,62S tons in 1911
to 1,435,605 TONS in 1923. The great
increase in production took place
since the reduction in freight rates
by the United States Railroad Ad-
ninistration to the Texas basis in
1918, he testified.
A great deal of Mr.. Smart's testi-
mOny was directed against the in
creases in Ignite rates made in June,
1913, when an arbitrary increase of
10 cents per ton, and further ar
bitrary increase ranging from Is to
80 cents per ton resulted in increases
rs high as 100 percent in the then
existing Ignite rates, whereas the
U. S. Railroad Administration rep
resented Che increase to be rs per-
cent general increase. Mr.. Smart
took the Position that Ignite is not
coal, and was not mentioned with
coal in the order of the Director
General of Railroads, and therefore
should have been accorded but a %
percent increase. The actual in
creases on North Dakota Ignite aver
aged over 46 percent at that time, he
said.
The witness said that ligAite coal
is mined extensively in Texas, that
pursuant to vigorous protests of the
Ignite interests in Texas the u. s. |
Railroad Administration reduced theI
rates on Ignite in that state to ap-
proximately the rs percent increase
basis, and that the present North |
Dakota rates are identical with the
bSkis at that time prescribed by the
RI lroad Administrator for Texas.
1eteresting figures introduced by
the witness showed that in 1918, 96.1 |
percent of all Ignite mined in North |
Dakota was consumed within the |
state, that two percent only went