The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-04-22
SAYS LIGNITE |
BOOST IS BLOW |
TO MINNESOTA
Rate Expert of Minnesota
Commission Testilies in ]
Hearing in City
WOULD SHUT 1T OUT
Broad Grounds Urged by Min
SneSOta Commission in De.
cisiOn of the Case

Proposed increases asked by the
railroads on Ignite coal produced in
North Dakota mines would have an
adverse effect on the pocketbooks Of
many Minnesota consumers, A. L..
Finn, rate clerk of the Minnesota
Railroad and Warehouse Commission,
told Examiner w. H. Wagner of the
Interstate Commerce Commission and
the North Dakota Railroad Commits
sion, sitting jointly here in the case
in which the railroads propose to in
crease Ignite coal rates approximate
ly so percent.
The interest of the Minnesota COM
mission in the case is on behalf Of
citizens of Minnesota "who reside,
roughly speaking. within radius of
$50 miles of the North Dakota Mimi
esota state line, excluding the lines
reaching the wooded sections of the
state" Mr.. Finn said.
"If the proposed rates are allow
ed to become effective it will result
in increases on this low priced fuel
Qignitc) which will, we believe, re-
suit in shutting it entirely out Of
the small section of the state where
it can now be used in competition
with eastern COAL" said Mr.. Finn,
reading a statement of the Minneso-
ia railroad commission as an inter-
venor in the case.
For Good Of Consumers
"For the good of the citizens Of
the state Of. Minnesota where fuel is
so vitality necessary" the statement
continued "the Minnesota commits
sion has always taken the position
that no increase in coal rates should
be allowed to go unchallenged, and
we believe\ that in the instant case
The burden is on the carriers to make
i post f*e. proof of the. reasonahlcness s
of the proposed rates as applied to
such a low priced fuel as Ignite,
compared with the same rate applied
to eastern coal of high quality.
''The existing interstate rates on
Ignite are the result of lengthy ne
gotiations between the railroad COM
missions of Minnesota, North and
South Dakota, and the Railroad Ad-
ministration, extending from May
1918 until November 18th, 1918, when
scale of rates was made effe,l i've,
which was lower than any OF the
state commissions had ever asked
the carriers to publish, either for
single line or two-line hauls. 1t was
however, the same scale as had been
published for application in Texas,
both state and interstate, and it was
satisfactory to all concerned"
Mr.. Finn reiterated the Minnesota
commissions belief that the conten
tion of North Dakota, that if the pro-
posed rates 60 into effect, Ignite
will be virtually barred from Mimi
esota, is correct. Investigation re-
vealed, he said, that 81 towns and
villages of Minnesota received 25,-
$50 tons of Ignite during the year
1923. 1t sold at an average price of
$6.64 per ton, while the average
price Of eastern bituminous coal sold
at the same stations was $l2.72 per
ton, he said. Other Ignite doubtless
was consumed for which no reports
were available, he said.
Urges Broad Grounds
"The Minnesota Commission is
fully convinced that the case here
before the Commission is one which
cannot be decided by the Interstate
Commerce Commission on the single
grounds of reasonableness of the
proposed rates percent" the state
ment said, "but is a case in which
the economic features of the case
should be fully considered, taking
the status of the commodity itself as
fuel, and the Ignite industry on
the one hand, and the limited rur-
chasing power of the consumers who
do use Ignite on the other.
eff this is done We believe the In
terstate Commerce Commission will
require the cancellation of the sus-
pended tariffs or else prescribe some
reasonable rates on Ignite which
will permit the industry to live and
grow and at the same time permit
those citizens of Minnesota VINO de-
sire to do so, to make use of this low
priced fuel"
Attitude of South Dakota
The attitude of South Dakota,
chiefly consuming state, toward
the proposed increase of about 80
percent in Ignite coal rates from
North Dakota mines, was laid before
Examiner w. Wagner of the Inter-
state Commerce Commission and the
| North Dakota railroad commission
here today in testimony and cross
examination which took the entire
first days session in the coal hear
ing.
Mr.. Kelley's opposition to increase
the Ignite rates to an equivalent
of the Holmes and Hallowell scale
on which coal is moved from Duluth
and Lake Superior docks was based
on the many grounds, the chief of
which was that as a broad principle
coal of lower quality should take a
lower rate, Ignite being, he said, of
lower quality than the coal shipped
from the docks.
The railroads themselves have al-
ways had a general policy of giving
consideration to the principle that
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