The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-25
OPEN DEFENSE
! OF PROPOSED
LIGNITE BOOST
Railroads, in Hearing Here,
Attempt to Show Level
Is Too Low
DOUBLE HEARING HELD
n. ID. Railroad Commissioners
and Interstate Commerce
Examiner Hear Case
DOUBLE HEARING HELD

Representatives OF railroads., open
,ing their case here today in whicn
fhey seek to justify proposed in
creases in freight rates on Ignite
coal claim, d by operators to average
81 percent, sought to show that the
present level of Ignite rates is ar
Inheritance of emergency conditions
caused by the World War.
Through j. G. Morrison, assistant
general freight agent of the North.
ern Pacific Railroad, st. Paul, first
witness for the carriers, the North
Dakota railroad commissioners and
w. H. Wagner, examiner for the
Interstate Commerce Commission
hearing the case jointly, were in
xformed that an extremely low level
Of Ignite rates was ordered by the
United States railroad commission
in 1918 to avert fuel shortage in
the Northwest by increasing Ignite
production.
The hearing opened here as a con.
tinuation. of the hearing conducted
by Examiner Wagner at Aberdeen
South Dakota, last week. D. F. Lyons
General solicitor for the Northern
Pacific railroad, in charge of the
case for the petitioners, omitted an
opening statement of the carriers
position and proceeded with the in
trpduction of testimony. He was
assisted by a battery of railroad
lawyers and experts.
Stanley Houck, chief counsel for
the North Dakota Ignite Coal Oper-
ators Association, Raymond Dillman,
assistant Encouragement of South
Dakota; Ross Miller, engineer for
the South Dakota commission; At
Torney- General George Shafer and
's::rst assistant, John Thorpe, of North
Dakota; G. f. Peterson, traffic mama
ger for the Fargo Commercial Club,
and j. w. Goodman, traffic manager
Tor the North Dakota Mill and Eleva-
or Association, Grand Forks, entered
appearance for the protestants.
Representative of northwestern dock
interests, Wyoming and Montana coal
interests also were present.
The hearing is being held in the
United States court room.
Extent is Uncertain
When the hearing opened it was
undecided as to what scope and ex-
.ent it would embrace. Because Ex-
miner Wagner must leave Wednes-
LAY for Spokane, it is uncertain
whether the examiner and the North
Dakota Railroad Commission, will
lear more than the carriers side
IF the case. 1t had been proposed
~ Mr.. Wagner to continue the case
until March "a after the present
session is concluded, but Chairman
hilholland Of the state commission
laid that if the case is not concluded
now the North Dakota commission
probably cannot sit in it again until
in April. 49, ~
Because Of this. uncertainty Mr..
Houck. counsel for the operators, said
that he was not certain just what
course the case for the operators
would be. The Ignite operators and
the representatives of the public
have made elaborate preparations for
the defense Of present rates on lig-
mite coal.
4 Shipments Shown
\ At the outset of the carriers pre-
\sentation, the commissioners and the
examiner we're informed through an
exhibit prepared by the railroads
that coal shipments on the, Northern
Pacific railroad in the coal year
ending March 81, 1923 were 49O,216,
carload tons, and that of this amount
1872 percent move intrastate (wholly
between points in North Dakota), 10
percent move to stations in Mime
sofa and 1.8 percent to stations in
South Dakota. Because the state
railroad commission has also pre-
>sented figures to show that approx
imately 85 percent of all Ignite coal
mined in North Dakota is moved in
trastate, especial Importance is at
tached to the intrastate rates.
The jurisdiction of Examiner Wag-
ner is confined to interstate rates
and that of the North Dakota COM
mission to intrastate fates.
Celebrating on his statement of
gate changes during the war the wit
ness Morrison said that in the early
spring of 1918 the North Dakota lig-
mite producers and representatives of
carrying lines, the coal situation re-
suited from the effort of the fuel
administration to confine consump-
tion of coal as much as possible to
the areas of the country in which it |
was produced, to avoid long railroad
hauls. The North Dakota operators
and others represented that every en-
couragement should be given the lig-
mite industry, he said. The railroads |
agreed and published new schedule
of rates in July, 1918,
Those rates were not satisfactory
to the shippers of Ignite and renew
ed pressure was brought to bear on |
the railroad administration to adjust
rates on Ignite COAL Mr.. Morrison |
said "On November 20, 1918 the
Jaiiroad administration prescribed a |
very low scale Of Ignite rates to
meet the alleged emergency. These |
emergency rates of Nov. 20, 1918,
were prescribed both inter and in
trastate. %qbnl II y4B Ia 50
They continued, he said, until ad->
Continued on page 81 :