The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-09-18
Roads and Shippers Present Briefs on
Freight Rate Boost to Federal BOdu
North Dakota Commission Chal-
'enges Claims Made by
Carriers at Hearing

Washington, Sept. 18.-F-Widely
divergent views on the proposal OF
railroads to raise freight rates is per
cent were presented Friday to the In
terstate Commerce Commission in S.
briefs.
Several score more written argu-
ments ri expected before the COM
mission Monday begins to hear oral
discussions by attorneys. Today was
the last day for filing briefs but COM
mission officials said briefs which did
not reach them today would be re-
ceived because only about ten days
were allowed for preparing them.
The briefs covered the full range OF
industries and organizations appear
ing at hearings throughout the coun-
try.
The larger railroads, through q
committee Of 10, and the western car
riers presented briefs designed to show
they have made q case which the
commission should decide in their
favor.
The Minnesota railroad and ware
house commission and the states of
South Dakota, Massachusetts,. North
Dakota and California, also submitted
arguments.
Unlike the short-line railroad brief
filed two days ago. which indicated
willingness for agricultural products
to be exempted, the brief for the ma
jor carriers asserted leach class Of
traffic owes to the railway service adj
ditional compensation"
The Minnesota. South Dakota
North Dakota and California briefs
urged the commission to grant the
motion made by q group Of western
states for dismissal Of the railroads
petition.
The North Dakota railroad COM
mission declared the railroads were
not faced with any emergency requir-
ing such drastic and summary ac-
ton"
I'VE insist" its brief said. that the
only lawful way carriers may In
crease their rates Is by filing OF spe-
cific tariffs subject to suspension and
Justification in the manner prescribed
by law.
I'VE deny the carriers are efficient
" managed when their entire passen-
ger business is either operated at q
loss or at least on q profit 50 thin
that the freight traffic Is required to
bear the burden Of insufficient pas
senger train revenue.
I'VE deny their capital expenditures
have been wisely and properly MADE.
In the face of constantly declining
tonnage the railroads made huge cap
ital expenditures in 1880 which could
not possibly be justified by any rea-
sonable anticipation OF future puSi-
ness. ..
"The railroads have been overbuilt
and there is today In the United
States a huge surplus Of Transporter
ton facilities. No reasonable rate
level can be maintained which WILL
produce attractive returns on rail.
road facilities valued far in excess OF
a fair value considering the available
tonnage and needs OF the shipping
public"
E. M. Hendricks. traffic expert for
the North Dakota commission. and
Rex willard, Fargo, economist for the
state agricultural college. are IN
Washington and plan to make oral
arguments in behalf Of North Dako-
ta's case Monday. Willard Is chair
man Of the economic committee OF the
western states opposing the increase
and also will represent the other
states. -.
The brief recites that "two-thirds
Of the state has suffered q terrible
drouth, resulting In q total loss OF
crops and sustenance for thousands
Of farmers"
THOUSANDS Of families" 1t con-
tinues, ARE being cared for by the
Red Cross or other agencies and are
In such q state Of abject poverty thai
it Is utter folly to expect increased
revenues from increased freight rates
to or from North Dakota"