The Bismarck tribune., 1931-12-12
CLAIM Higher RAIL
TARIFFS WILLSEND
TRAFFIC TO- TRUCKS
Experts For Railroad Board Say
Increases Would Harm,
Not Help Carriers

Not Help Carriers
Testimony that increased railroad
rates on class traffic within North
Dakota will result in decreased reve-
nue. for the roads by causing di-
version of traffic to truck lines was
given before the North Dakota rail-
road commission here Friday by E.
M. Hendricks, traffic expert for the
commission.
Hendricks took the stand to oppose
an application of the railroads for
placing intrastate class freight rates
or the same scale as the class rates
BY the Interstate Commerce Com
mission on interstate shipments.
Representatives Of Minot, Fargo,
Grand Forks, Jamestown, and Bis
marck. who entered appearances be-
fore the commission for the purpose
Of opposing the railroads applica-
ton, were granted a continuance
after Hendricks and Charles F. Mar
tin. statistician for the state commits
sion, testified.
Will Prepare Answer
Delegations from the various cities
sought the continuance on the ground
that they did not know until Dec. 3
whether the new interstate rates
would become effective, and there
fore had not had sufficient time to
prepare their case. They contended
that previous to appearing at the
hearing here they had no definite
knowledge as to what the railroads
would propose for North Dakota state
traffic and sought time to prepare an
answer to the carriers case.
Representatives of the railroads at
first objected to the delay but later
withdrew their objections They indi-
Gated that an appeal would b taken
to the Interstate Commerce Comn1is-
sion If their application for changes
in the class rates are denied.
Such appeals from decisions Of
state boards generally are interpreted
by traffic men as threats against the
Jurisdiction Of state boards.
Ben G. Larkin, president of the
commission, and Commissioner Fay
Harding presided.
Hendricks expressed the belief that
the new rates ordered by the I. G. G.
on interstate rates, If applied to trat-
fic within North Dakota for short
hauls, would greatly restrict jobbing
by rail. He estimated that the
changes proposed by the railroads
would increase the rates on intra-
state class freight traffic from 10 to
30 per cent, and would amount to
hundreds of thousands Of dollars in
crease in North Dakota's freight bill.
Truck Charges Lower
Exhibits were entered by Hendricks
showing that typical truck charges in
North Dakota are on much lower
basis than the proposed rates.
Under the law, truck lines cannot
raise rates without authority from
the commission, he said.
If the increases 60 into effect" he
added, 'the railroads will earn less
money by reason Of the diversion of
traffic to truck lines"
He called attention to the comment
by the I. G. c. on the large amount of
business lost by railroads to truck
lines. and to the recommendation of
the I. c. G. that railroads give care
full consideration to this situation.
Martin submitted. exhibits which
presented a study OF actual truck
shipments in the state for yearly Pc
riods. The exhibits showed that mill
lions Of pounds Of less-than-carload
freight are already moving by trucks.
Charges that class freight rates on
tntrastate traffic discriminate against
interstate previously had been made
by carriers.
John p Dennis, st. Paul, repre-
senting the Northern Pacific railway;
W. D. O'Brien, st. Paul, for the Great
Northern, and S. w. w. Carr, Aber-
deem, S. D., Chamber Of Commerce,
testified the rates should be changed
to conform to the interstate scale.
Says South Dakota Hit
Carr appeared at the hearing on
the ground that the intrastate rates
prevailing in North Dakota works a
hardship on South Dakota shippers
in competition with North Dakota
shippers. He contended that Aber-
deem jobbers are in competition with
North Dakota jobbing points, and that
the lower rates in this state are dis
criminatory and in violation of Inter-
state Commerce.
Under the class rates ordered by the
Interstate Commerce Commission on
interstate traffice. 1t was estimated
that North Dakota will save approx
mately five million dollars through
reduced rates. Those opposed to the
placing Of intrastate class rates on the
same level as the interstate rates al
lege that much of this saving, gained
through the I. G. C. decision, will be
host.
The rates affected by the class rate
case involve less-than-carload freight
on all commodities and the carload
rates on many important items such
Is agricultural implements, machinery
graders outfits, from and steel ar
ticles, dairy and other products.
Ordered Cut In 1929
The class rate case reopenS a rat,
controversy which dates back to 1925
when the case was opened before tn,
state railroad commission.
In 1929. the state commission or
dered q flat 10 per cent reduction OF
intfastate rates In North Dakota. Al
appeal was taken by the carriers t,
the federal courts In which three
judges, sitting In st. Paul, grantet
the railroads an injunction agains
making the rates effective.
The state appealed to the Unite<
States supreme court. which dis
solved the injunction, and on Jun
IA, 1880, ordered reduced tariffs pub
lished. making rates retroactive {.
the effective date ordered by tn
North Dakota commission.
Jury Deliberating
Over $4,000 Case