The Bismarck tribune., 1930-08-27
RAILROAD PETITION
FOR REHEARING IS
HELD OPENING GUN
Seek to Defer Effective Date Of
Interstate Commerce Com.
missions Order
CASE IMPORTANT TO N. D.
History Of Case, Dating Back to
1924, Long and Involved,
Says Board Chairman
CASE IMPORTANT TO N. D.


commerce commission, loomed today
as result of action taken by the
railroads affected by the order. The
case affects the entire grain rate
structure of North Dakota.
Under the order of the interstate
commerce commission. the new rates
become affective October /, but a
petition has been filed by the rail-
roads to postpone the effective date
until January 1, according to a
notice received here by the state
board of railroad commissioners.
The railroads asked for a post
ponement of the date to permit
preparation of a petition asking the
interstate commerce commission to
set aside entirely its order on the
grounds that the rate level is too
low
AS the order now stands, rates
fxom North Dakota will be increased
in some instances and decreased IN
others. according to c. w. McDon-
nell, chairman Of the state commits
sion.
"The effect of the new rates from
North Dakota" he said, "will be
some increases, particularly in the
northeastern section where the rates
are now on lower basis than from
other sections of North Dakota and
other states, and some reductions
from central and southern North Da-
kota."
Typical examples of the proposed
readiustment, he said, show the
present rate on wheat from Devils
Lake to the Twin Cities or Duluth,
TO- be 1917 cents per 100 pounds, while
the new rate would be FL cents.
On the other hand, the present
rate from Minor is 1912 cents, while
the new rate is 17h cents, Mr.. Nc
Donnell said.
zone important feature of the
new adjustment" he continued, "is
placing the rates on coarse grain
throughout the entire western dis
trict on the wheat basis.
Get Stop Privilege
"Other features are provisions Tor
three free stops at intermediate
points, two for any purpose and one
for inspection; additional stops
al an additional charge of two cents
per 100 pounds, and reduction in the
spread of the North Dakota Chicago
rates over the Twin Cities to II
cents per 100 pounds, the present
spread being 13 cents.
"This case not only affects North
Dakota but all grain raising states,
including. Minnesota, South Dakota,
Montana. Kansas, Iowa, Nebraska
and others.
"The report Of the interstate
commerce commission was not unan-
imous. Commissioner McManamy
dissented from the abolition of the
separate transit charge in the
northwestern states where transit
is now separately charged for, be-
cause adding the charge for transit
in the rate increases the rate level
and includes compensation for a
service which the majority of ship
pers do not want and do not use.
"He also objected to the cancel
lation of the differential rate on
coarse grains, saying that in his
opinion the present basis, 10 per
cent less than the wheat rate, should
be continued.
commissioner Lewis expressed
the thought that the proposed
changes bring the general level of
rates too low. Commissioner Wood
lock said that the new rates are far
too low and will reduce the carriers
revenues in the western district ap-
proximately S15,000,000 year.
Commissioner Porter also dissented
from increasing the coarse grain
rates to the wheat rate level. Com
missioner Eastman. in a partly dis
senting opinion, sustained our con-
tention of lower rates from North
Dakota. without free transit, based
on cost studies, but the majority
would not accept this view."
The proceedings involving grain
rates have been before the interstate
commerce commission almost contin-
uously since October IL, 1923, Mr.
Mcdonnell said.
Has Long History
Outlining the history of the case
the commission chairman stated that
the l. C.. C. entered into an investi-
cation on its own motion Of the
grain rates throughout the United
States. Numerous hearings were
held, briefs filed and oral argument
had. in which the North Dakota
commission took an active part.
On July IL, 1924, the l. c.. C.
handed down it's decision in which il
held that the rates were not shown
to be unreasonable or unlawful and
that the proceedings should be dis
continued.
Congress, on January 80, 1925,
enacted the Hoch-Smith resolution
which declared agriculture to be the
basic industry Of the nation and d.
rected the l. C. C. to enter into a
general investigation of the rate
structure of the United States with
the view of establishing the lowest
possible lawful rates on products of
agriculture, including edible live
stock.
The l. c. c.. on May IL, 1925, in
stituted its investigation on grain.
Prior to hearings under this general
investigation, the railroads serving
Isorth Dakota filed new tariffs to be-
come effective August 10. 1925, pro-
posing general increases in the rates
on grain and grain products to the
Twin Cities, Duluth, and other points,
IN amounts ranging from one-half to
eight cents per 100 pounds.
Under protest to the Interstate
Commerce Commission" Mr.. McDon.
nell said, filled by the North Dakota
Commission and others. the tariffs
containing the increased rates were
suspended to November %, 1925,
pending hearing and investigation
The increased rates were further sus-