The Bismarck tribune., 1931-12-23
Scale Raised For Certain Com.
imodities as Substitute For
General Increase

RAILROADS operating in North Da.
kota will derive approximately $780,,
600 additional revenue within the
state from increases in freight rate.
on certain commodities, ordered BY
the Interstate commerce commission
as q substitute for the Is per cent
increase sought by the railways.
Ben G. Larkin, chairman Of the
North Dakota railroad commission
said that while it is difficult to esti.
mate the added earnings on traffic
to and from North Dakota, the in.
crease, if applied to all movements
of coal, would be about $4,000 8
year. He estimated that on gasoline
and kerosene it would amount te
around $4,000 a year, and on sand
and gravel about $4,000 a year.
considering the financial emer.
gency with which many of the rail.
roads are faced" Larkin said, land
the finding Of the I. C. C. that q
serious emergency exists, requiring
some immediate action, designated tc
bolster up the railroads credit
North Dakota is exceedingly fortu-
nate in having no increases pre-.
scribed on its most important Of all
products, products of agriculture y
$5,OOO,O0O Year
1t is estimated that railroads in
The northwest will derive more than
$5,000,00O year from the increases
The higher rates, which will termi-
nate March 1, 1888, were ordered By
the I. c. G. as an emergency measure
to relieve the financial distress of
railroads, resulting from declining
traffic. The increases for the coun-
trv are estimated at about $780,
100000 annually.
The interstate. commerce commits.
sion, on re-argument, modified its
original report on the application of
the railroads for a general Is per
cent increase in all freight rates and
charges.
The original report permitted the
railroads to make certain emergency
increases, conditioned on pooling Of
the extra earnings for the benefit
of weak lines, and directed the rail-
roads to submit a plan on or before
Dec. for putting into effect the
recommendations.
Offer Substitute Plan
The railroads offered a substitute
plan under which Delaware cor
poration would be formed with gen.
eral powers to loan money to the
weak roads under certain circum-
stances.
Larkin said that the I. C. c., in its
supplemental report, practically re-
cedes from the pooling plan.
"The practical result of the COM
missions action" he added. sis that
the railroads are permitted to im-
pose certain increases to expire
March 81, 1888, without designating
how the added revenue shall be used.
So far, tariffs containing the in
creased rates have not been filed
and we are unable to say when they
will become effective.
1T should be clearly understood
that the increases are on interstate
traffic only. The railroads have ap-
piled to the North Dakota commits
sion for similar increases on intra-
state traffic, but no action has yet
been taken by us. It is expected,
however, that formal hearing will
be held at Bismarck in the near
future at which time all interested
parties will be given an opportunity
to appear and state their views"
Some Rates Unchanged
E. NJ. Hendricks, traffic expert
for the state commission, said q
study Of the l. C. C. action indicates
that commodities of particular i'm
portance to North Dakota on which