The Nonpartisan Leader Newspaper, March 15, 1917, Page 7

RN RSt o I8 N “Jokers” in T'wo Cent Rate Bill Was There a Railroad Plot Behind This Scheme to Put North Dakota Farmer Legislature “in a Hole”?—Looks Like it League members were ‘‘favori ring the railroads.’”’ Ieague members worked hard fo passage of the FULL CREW bill, which was also THROTTLED BY THE Old Gang and their newspaper friends don’t want to’say much now about railroad le people of the Northwest would like to know some more about it. Little frame-up as ever was attempted. Note this: There was no railroad lobby on the ground at Bismarck to work against the two-cent fare bill. There was a very strong lobby against the legislation favored by the League men and killed by the Old Gang. That, in itself, Did the railroads know in advance all about the two-cent fare and know that it WOULD NEVER DO THEM ANY tells volumes. Since the defeat of the Dupuis railroad freight rate bill by the 0ld Gang in the North Dakota senate after a SECRET CAUCUS on the measure, and while railroad lobbyists were still in Bismarck working against the measure, HARM AND MIGHT PO THEM A LOT OF GOOD? It may be that they did. HE charge is being made that the League members of the house of representatives of the Fifteenth North Dakota : assembly were co-operating with the railroads when they rejected House Bill No 72 introduced by Mr, Hendrickson providing that when rail- road corporations in this state were able to earn $1200 or more per mile on passenger traffic that the rate charged for carrying passengers should be limited to two cents a mile and that in any event interchangeable family mileage books should be sold for two cents a mile. This looks all right on the face of it but when the passenger earnings of the four principal lines operating in North Dakota are examined, it is as plain as day that this bill contained a wood chuck the size of an elephant. RAILROAD REPORTS TELL ELOQUENT STOFEY Turning to the reports of railroads operating in this state to the North Dakota. Railroad commission for the year ending June 30, 1916, we discover that revenue from passenger train service including excess baggage, sleep+ ing car, parlor and chair car, mail, ex- press and all other charges is as fol~ lows: Northern Pacific ........$3,144,368 Great Northern ... S00 .ecceicesiseene oo 2,114,143 Milwaukee 521,057 After deducting the operating ex- penses, we find the net rail revenue, fixed charges and taxes not deducted, to be Northern Pacific .vc......$1,680,036 ertessssennans Great Northern .. .. 2,216,478 $500: 50 S s . 1,163,625 Milwaukee .........o... 7 217,229 or per mile, net operating revenue, ex- clusive of fixed charges and taxes, to be Northern Pacific .....+......$1,108 Great Northern .. voeeee 1,179, 8005, il ties sleieis als onle semein 809 Milwaukee ........ eeesesns . b72 The proportion of fixed charges which is borne by the passenger traffic is as follows: Northern Pacific .iiveceeeess 589 Great Northern .. eee 508 Soo ...... Ve sanee ere T10 Milwaukee .....oee0vevenes.. 458 Deducting net earnings over and above operating expenses and fixed charges which include rent, {interest and other kindred charges, per mile of Northern Pacific «vveeeeess.s 519 Great Northern ,. 673 Soo . 99 T MilWauKee soieessscccessesss 114 WHERE DID AUTHOR GET HIS FIGURES? The author of the bill produced fig- ures showing that all the roads, with the possible exception of the Milwau- kee, would come under the two-cent fare. He must have arrived at this by dividing the gross earnings by the miles within the state, since we have seen above that even the net revenue after operating expenses have been deducted, would not give the two-cent fare to any railroad within the state. - There can, however, be but one meaning attached to the language of this bill which is “that in all cases where any railroad, railroad corporation and common carrier doing business in this state shall earn $1200 or more per mile on passenger traffic that the rate charged shall be limited to a com- pensation of not to exceed two cents per mile. If this language means anything, it means, of course, net profits upon busi- ness. In figuring his profits, the 'North Dakota farmer would undoubte; deduct the rent that he paid for lan . and the Interest that he paid to the bank, and the taxes that he paid to the - N s not much has been heard of the charge that r the passage of this bill and they worked also for the OLD GANG after the railroad lobby put in its appearance. The gislation in the Fifteenth assembly, but perhaps the That’s why the Leader prints this study of the two-cent bill, as choice a government, before he would consider he had earned anything. The same is true of this bill. It means that the railroad companies would be allowed to deduct their oper- ating expenses, that is, what they pay for coal, labor, the up-keep of their rolling stock and track and all the ex- pense that they are to, to run their trains and, in addition, they would de- duct their taxes paid, the interest on their bonds and current loans, and the rent they pay for track privileges over other lines, for cars, station priv- ileges, etc. After all these are deduct- ed, only one railroad in the state, that is, the Great Northern comes within fifty per cent of having enough net earnings from their passenger traffic to come within the provision of the law. BUT HERE’S THE JOKER IN THIS LITTLE SCHEME Now comes the white elephant walk- ing out of this measure! The legisla- ture has the sole power of fixing rates within the state. They may, of course, delegate this power to the railroad commission. They have done so in all cases wherever the rates are not fixed by statute. When the legislature fixes a rate, it takes it out from under the control of the railroad commission. If this bill had been enacted into law, so long as it remained upon the statute books, the railroad commission could not tamper with passenger rates and it would probably be about fifty years before the railroads would earn enough to come within this provision. It would undoubtedly repeal by im- Committee Rooms at Bismarck plication the presént two and one-half cent fare and, if declared unconstitu- tional, would leave the state without any rates and the railroads would hope, of course, to secure a higher rate than the present rate of two and one- half cents a mile. Some very good lawyers consider the bill would have been unconstitutional since it might provide for a two-cent rate on some roads and a two and a one-half cent rate on other roads, and if it repealed by implication the two and one-half cent rate, then some roads might have a fixed rate, while other roads would would have no rate at all unless fixed by the railroad commission. DECISIONS TO SHOW WHAT THE BILL MEANT As to the provision for an inter- changeable two-cent mileage book, the language of the act is identical with chapter 199 of the N. D. Session Laws of 1907 which the supreme court of North Dakota declared unconstitution- al in State ex rel McHugh vs. The Great "Northern Railroad company 17 N. D. 370, 116 N. W. 89, which decision followed the decision -of the TUnited States Supreme Court in Lake Shore and Michigan Railroad company vs. Smith, 173 U. S. 684, 43 L. Ed. 858, both of which decisions follow a long line of decisions on the part of state courts and the supreme court of the TUnited States. In declaring a similar provision in the Michigan statute un- constitutional, Justice Peckham deliv- The most Interesting building in Bismarck—the Baker building, whare all senate and house committees meet. The committee rooms are on the third floor gained by an automatic elevator or stairway. In these rooms have been rendered the formal sentences of death, or leases of life for nearly all the 768 bills that were born during the 1917 session. rooms equipped with rough board tables on “saw horses,” collapsible chairs, for. the members and lobbyists, and a few arm chairs for chairmen. Hendrickson’s bill would not have made ANY REDUCTION AT ALL IN PASSENGER FARES, the records show. fect would have been to cause AN INCREASE . IN RATES. Read this careful article to show on what grounds farmer legislators were ac- cused of “favoring the railroads.” The upper floor is cut into numerous small Its probable ef- ering the unanimous opinion of the, su« preme court of the United States said: “The legislature having fixed a maxi- mum rate, and what must be presumed prima facie, to be also a reasonable rate, we think the company, then, has a right to insist that all persons shall be compelled to pay alike; and that no discrimination against or in favor of certain classes of married men, or families, excursionists, or others, shall be made by the legislature. If other= wise, then the company is compelled, at the caprice or whim of the legisla- ture, to make such exception as it may think proper, and to carry the excepted person at less than the usual and legal rates, and thus would part in their favor, with'its property without that compensation to which it i3 entitled from all others, and therefore would part with its property without due process of law. The affairs of the com= pany are, in this way, taken out of its own management, not by any general law applicable to all, but by discrimin= ation made by law, to which the com- pany is made subject. Whether an act of this nature shall be passed or not is not a matter of the right of the company to carry on and manage its concerns, subjects of a general law applicable to all, which the legislature may enact in the legal exercise of its power to legislate in regard to persons and things within its jurisdiction.” MINNESOTA LEAGUE TO WIN (Editorial in Sunbean (Minn.) Sun- beam) Rubes Must Organize Owing to the strong lobby that the iron mine owners are keeping at St. Paul, the bill to tax iron ore is likely to be defeated in the senate, after passing the house. Of course the farm- ers have no one there to look after their interests but some of those sena= tors, who vote against that bill are likely to hear from the Nonpartisan League two years hence. That is why we favor the organization of the Min- nesota farmers, the same as the North Dakota farmers are organized. North Dakota have men in that legislature looking after the interests of the farm- ers, all the time, and that is what the farmers of this state must do, if they would obtain justice in legislation.. Only last week in that®Minnesota leg= islature they laughed an honest mem- ber to scorn, because he introduced a resolution to have an investigation made of the doings of the Chamber of Commerce and the St. Paul Stock Yards but they won’t do it two years hence, for the rubes are going to or= ganize. 2 SHE ANSWERS CRITIC Judson, N. D., Feb. 22, 1917, Editor Nonpartisan Leader: I am sending a clipping from the New Salem Journal, from one of our real estate men. He says we should be sure we are right then go ahead. I believe the farmers very well knew what they were doing when they join- ed the League. Those nine dollars were well spent. My husband is a member of the Liague and the Leader comes wto us regularly and it is one of the first papers to be read. If a person hasn't got time to read the paper one glimpse at the cartoons is enough. I wish to congratulate you for the splendid work you are doing. . MRS. JAKE KULLER. FOSTER ON THE JOB 2 g Bathgate, N. D., Mar. 8, 1917, A. C. Townley, : Fargo, N. D. I have twelve auction sales listed for the north half of Pémbina county and intend to boost the League at every one of them. It does not cost any=- thing to get the crowd and it gives me a good opportunity to do some effec= tive work for the League. You do not need to worry about Pembina county. ‘We'll stick, 3 Y IXE FOSTER. A SIS ETTIHOE