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REGULATIONS.

The following regulations have been issued by the Commission:
REGULATION NO. 1.

No railroad company operating within the State of Montana, after the adoption by the Commission of such Company's freight, passenger, express and other tariffs, and the rules and regulations with respect thereto, applying locally in this state, shall advance, reduce, change or modify the same or issue new tariffs, locally in Montana, without first obtaining the Commission's consent and authorization therefor.

REGULATION No. 2.

From and after the 1st day of April, 1908, any person, persons, corporation or association, owning, leasing or operating any railroad within the State of Montana, shall so make up their trains, where mixed trains are run, that the mail, express and baggage car or cars on such trains shall be placed behind all freight cars in said train whether said cars are loaded with express, live stock or freight.

REGULATION No. 3.

All railroads or railroad corporations operating within the boundaries of the State of Montana, are hereby required upon the arrival of any delayed passenger train at the first division terminal, within the confines of this state, to notify by telegraph, every station on the line of the railroad within the state, the amount of time such passenger train is delayed, and upon the arrival of any such delayed passenger train at each succeeding division terminal, it is likewise made the duty of such company through its servants, agents and employes, to notify by telegraph every station on the line of such road within the state, which has not yet been reached by said train in its course, the amount of time the train will be delayed beyond the schedule time for arrival at such stations; and every such railroad or railroad corporation is hereby required, and it is made its duty through it servants, agents or employes within 15 minutes after receipt of telegraphic notification announcing the time such train is delayed beyond schedule, to post a notice of the same conspicuously in every depot, station or waiting room not yet reached by any such train advising the public of the time such train is delayed, and the time that it will likely arrive at such station. And it is likewise made the duty of every such railroad or railroad corporation, through its servants, agents or employes, within 15 minutes after receipt of telegraphic notification that any such train is further delayed, to again post notice of such delay in every depot, station or waiting room, as herebefore directed, for the information, benefit, advantage and convenience of the traveling public.

RATE WORK OF THE COMMISSION.

After careful investigation into the methods and organization of older and well established Railroad Commissions, the Board concluded that it would

be necessary to employ a rate-clerk. Commissioner Godfrey was accordingly delegated to go east and select a competent man. This resulted in the engagement of Oliver W. Tong, as Rate Clerk to the Commission, at a salary of $2,000.00 per annum.

ADOPTION OF Tariffs.

Within a short time after the organization of the Commission, the work of securing copies of existing freight and passenger tariffs was completed, and the Board was then placed in a position to comply with Section 13, of the Railroad Commission Law, which provides, "the power and authority is hereby vested in the said Board, and it is hereby made its duty to adopt as soon as practicable after the organization of the Board all necessary rates, charges and regulations to govern and regulate freight and passenger tariffs * * * * on the different railroads in this State, and to make the same effective by enforcing the penalties prescribed in this Act."

Under the Law, it was not imperative that the Commission adopt new rates, but in order to prevent the Railroad Companies advancing rates, it was concluded that the best interests of the State would be served by adopting, with two exceptions, all the tariffs, rules and regulations which were in existence on the various lines operating within Montana.

Accordingly, July 10th, 1908, was set and legally advertised as the date upon which the Board would hold a public hearing and proceed to fix and adopt maximum rates, rules and regulations applicable on intrastate traffic.

The hearing was well attended. The Commission announced that it would be to the best interests of all concerned to adopt all the existing tariffs filed with the Commission, except express tariffs, with the exception of a tariff applicable on coal from producing stations on the Great Northern Railway, and a tariff of the Northern Pacific Railway applying on lumber between points within the State. Vigorous objections were made by representatives of the railroads against the exclusion of these tariffs, with the result that it was finally decided to hold hearings on the two subjects, at which all parties interested could be given an opportunity to come before the Commission.

At later dates, orders were duly and regularly made and directed to each railroad in the State, declaring as a maximum, the existing freight and

passenger rates, rules and regulations, and on and after the date of effectiveness of same, the railroads were ordered to make no changes in rates without authorization of the Commission.

INTERCHANGEABLE MILEAGE BOOKS.

The Commission early took under consideration the question of a reduction in the passenger fare between all Stations within the State and after careful investigation it was convinced of the impossibility of securing for some time to come, a reduction in the present rate of three cents per mile. However, a conference was arranged with the railroads to discuss the subject and an agreement reached whereby, in view of the three cent passenger fare between local stations within the State, the Great Northern, the Northern Pacific, and the Chicago, Burlington & Quincy Railway Companies would issue 3,000 Mile Interchangeable Mileage Tickets at a rate of 2 1-2 cents per mile, the same to be honored for passage in the following described territory:

Northern Pacific Railway. Between all stations, North Dakota and west to the coast.

Astoria & Columbia River Ry.
Butte, Anaconda & Pacific Ry.

Between all stations.

Between all stations.

Chicago, Burlington & Quincy Ry.

Between all stations on their

lines in Montana, Wyoming and Colorado, and for through business on that portion of their lines in South Dakota and Nebraska over which it is necessary to travel in order to reach Colorado.

Farmers' Grain & Shipping Co.'s R. R. Between all stations.

Great Northern Ry. Between all stations on their lines in Manitoba, North Dakota and west, and between stations locally in South Dakota, Albee to Huron, also between Fairmont, N. D. and Aberdeen, S. D. Montana Railroad Co. Between all stations.

Port Townsend Southern R. R.

Between all stations.

Spokane Falls & Northern Ry. Between all stations.

Vancouver, Westminster & Yukon Ry. Between all stations.

Washington & Columbia River Ry. Between all stations.

-Willmar & Sioux Falls Ry. Between all stations locally in South Dakota, Sherman to Booge and Yankton.

In making mileage detachments, conductors to detach two coupons for each mile traveled on these lines.

Accordingly these interchangeable mileage tickets were placed on sale at stations in the State of Montana, and in the other territory mentioned, effective July 10th, 1907.

At this meeting it was also arranged to have the railroad companies continue to grant, on all special occasions, the usual excursion rate of a fare and one-third for the round trip.

COAL RATES ON GREAT NORTHERN RAILWAY.

Immediately after the organization of the Commission, numerous complaints were received relative to the existing coal rates on the line of the Great Northern Railway. Conferences were held with all interested parties with a view to arriving at some fair adjustment, and as a result, the Commission finally fixed and established rates from each producing point on the Great Northern Railway to all consuming points thereon. The inauguration of these rates permitted the opening of new coal mines and the shipping of the fuel to the largest consuming centers in the State.

The approximate reduction in the coal rates in this instance amounted to not less than forty per cent and the reduced rates became effective August 15th, 1907, which enabled the operators to compete for the coal business. of the ensuing winter season.

LUMBER RATES OF THE NORTHERN PACIFIC RY.

Prior to the establishment of the Commission, the Northern Pacific Railway had in use, a distance tariff between all stations within the State applicable on lumber and forest products. In addition to the distance tariff rates provided therein, some specific rates were named to the principal consuming points. Effective June 30th, 1907, the Northern Pacific Railway Company filed with the Commission a new tariff, which, in effect, meant an advance of forty per cent in the rates that previously prevailed. This was one of the tariffs in controversy at the hearing held on July 10th, 1907, at which time the Commission refused to adopt the new rates, but decided to give the Railway Company an opportunity to be heard on the subject. A hearing, therefore, was duly and regularly advertised to be held on July 24th, 1907, at which time all interested parties would be given an opportunity to present evidence on the question of the proposed advances in lumber rates. This hearing resulted in the cancellation of the entire distance tariff, in lieu of which specific rates were established from every producing point to every consuming point on the Northern Pacific Railway and the Butte, Anaconda & Pacific Railway, in the state.

In addition to the changes in rates, arrangements were made with all parties interested for the inclusion of every article of forest product at either the lumber rates, or an arbitrary of one cent per cwt. over. The minimum weights were also changed to the cubical capacity basis, thereby insuring full loading of cars. The effect of this adjustment was a reduction of practically thirty per cent from the rates named in tariff rejected by the Commission.

DEMURRAGE.

The Commission found demurrage rules in rather a chaotic condition, each railroad in the State operating under from one to three sets of rules, with no uniformity. In fact, some sections were favored over others. This condition coming to the attention of the Commission, the matter was consid

ered at several formal and informal hearings in Helena and Butte and resulted in uniform rules, both on State and interstate business, more favorable to the shipper than those of any other state in the Union.

Previously, each railroad had appointed one of its officials to look after demurrage claims and matters in general and in many instances this proved unsatisfactory to shippers on account of delay in adjustment of claims. This has been changed to a much more satisfactory basis, by the forming of a State Association, with jurisdiction over all demurrage matters on all lines in the State, with headquarters at Butte. Mr. J. D. Mendenhall, Commissioner.

DEMURRAGE RULES.

RULE 1.

CARS SUBJECT TO RULES.

Cars held for or by consignors or consignees for loading, unloading, forwarding direction, or for any other purpose, are subject to these Demurrage Rules, except as follows:

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(C)

(D)

for orders.

Private cars on tracks of the owner.

Cars with through consignments not stopped in transit or held

(E) Empty cars held by railroads for prospective loading.

RULE 2.

FREE TIME ALLOWED.

(A) Forty-eight hours free time will be allowed for loading or unloading on all commodities, except three (3) days, seventy-two (72) hours free time will be allowed for unloading lumber, stulls, lagging, coal, coke, lime, lime rock, and bulk precipitates.

(B)

Twenty-four hours free time will be allowed:

1. When cars are re-consigned.

2.

When cars are held for final or amended instructions.

3.

When cars are held for payment of freight charges before delivery to connections.

4. When cars are held with freight in bond for Government

inspection.

(C) When cars are interchanged with minor railroads or industrial plants performing their own switching service, handling cars for themselves or other parties, an allowance of twenty-four hours will be made for switching in addition to the regular time allowed for loading and unloading. If returned loaded an additional forty-eight hours free time will be allowed.

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