The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-07-03
NORTH DAKOTA FREIGHT RATE
IS BASIS OF A BITTER BATTLE
Counsel for Railroads Declare
Schedules Would Oiscrimi.
nate Against Moorhead
CASE Is UNDER AMUSEMENT
Decision ls Expected to Be
Handed Down by Board
Before July 12

st. Paul. July 3.-(P)-Three fed
eral judges today had under advise
ment the application Of North Da-
kota railroads for an injunction re-
straining the board Of railroad COM
missioners from making effective
new intrastate rates recently ordered.
Providing for q reduction Of ap-
proximately 10 per cent in distribut-
ing rates from all points in North
Dakota, the new rates were to have
become effective yesterday. but were
postponed until July II pending out
come Of the hearing.
In presenting their application to
the three judges. sitting en- banc,
counsel for the railroads contended
application Of the new rates would
discriminate against Moorhead,
Minn.. in favor Of Fargo, N. D.. just
across the Red river.
r. J. Hagman represented the
Great Northern railroad and the
Farmers Grain and Shipping Co.
of North Dakota. He asserted the
discrimination against Moor h e d
would be caused by the conflict be-
tween the new intrastate schedule
and the higher interstate rates in
effect at the Minnesota city.
Pleads for Shippers
Freight depotS In the two cities are
only mile and half apart. he said.
so that Moorhead shippers would be
forced to truck their freight to Fargo
and use that city as shipping point
In order to compete with Fargo ship
pers.
Application of the new intrastate
schedule. Mr.. Hagman said. would
cost the North Dakota carriers ap-
proximately $4,000 yearly. He said
the Interstate Commerce Commission
now has proceedings before it 60
determine whether the new schedule
will discriminate against interstate
freight rates.
Application of the new schedule
should be held up by injunction" he
said. until the commission makes its
decision
Arguments for the board OF rail-
road commissioners, presented by
James Morris, state attorney general
and H. 8. Bronson, his special as
sistant. contcnded the new rates
should be permitted to become eff
fective SO that the Interstate Com
merce Commission could determine
their practical effect. In addition
they argued the court hearing the
petition for the injunction was with
out jurisdiction in the matter.
Morris Leads Attack
If any relief can be Lad by the
railroads in any courts" said Mr.
Morris, 1T must be through an ap-
peal to the state courts. The matter
Of whether there Is q disparity be-
tween the new rates and the inter-
state rates is a matter for the Inter-
state Commerce Commission alone ia
determine"
Bronson took issue with Hagman'a
statement that railroads ir the state
would lose $4,000 yearly through up.
plication Of the new rates.
mo one can determine at present
what effect the new schedule will
have on the revenue Of the Norti,
Dakota railroads" he said. 1.-THE rail.
roads say they will lose ellS,O0(
yearly, but this may be more thar
made up by the increased traffic"
Judges hearing the case were Johr
B. Sanborn. st. Paul. Andrew Miller
Fargo, and Archibald K. Gardner
Huron. s. D. Their decision is ex.
pected early next week.