Omaha daily bee., 1898-01-06
STRUGGLE WITH RAILROADS
Resume of the Fight that south Dakota
Carries On.
TESTIMONY TO BE TAKEN THIS WEEK
History OF the Celebrated Cases Makes
Some Interesting Rending-specia1
Session of Legislature Nur-
rowIy Ayerted.

CHAMBERLAIN S. D., Jan. 5.-(Specal) !
THE commencement this week in Chicago
OF the taking of testimony in the South Da-
kota railroad rate cases will add another |
chapter to the prolonged struggle between
the railroads having lines in this state aud |
the railroad commission of South Dakcta. !
The history OF the fight and its present |
status Is as follows: February last the
state legislature passed an act empowering. |
among other things, the railroad commission
to prepare and out into effect a maximum
freight and passenger tariff for the railroads
doing business in the state. AS q preliminary /!
to this action the schedule us adcoted by
the commssicn was to be published as no.
tice to the railroads The new railroad law
as originally drafted contained an emergency
clause but this was stricken out prior 10
it's passage and approval, AS a substitute
1T was provided that in any event the orig
inal schedule should go iuto effect July l. !
The bill passed the legislature by almost
unanimous vote the republicans democrats
and populists practically to man voting
for It,
Prior to July l. last, the railroad COM
mission, consisting of Messrs. Kirkpatrick,
Tompkins and LaFolette, who were elected
by the fusionists year ago last fal Visiteu
Des Moines Chicago and other eastern points
In quest OF lnlOrlDAtOu WHICH NOulb aSSiSb
them In preparing what they deemed proper
and equitable schedule After many weeks
labor they were enabled to prepare scheduLe
of passenger and freight rates, ana intended
promptly on July | to promu!gate IL ana
put 1t into effect. On June the railroad
commission had issued public notice 10 the
railroads. and to other corporations OF per
sons engaged as common carriers IN the
state for the transportation of passengers OF
property by railroad, as well as interested
shippers that on June 81, and from that
time until July 1, they would be In session
and grant a public hearing to the corpora
tions and persons interested, ,,t Un oune Nriio
attorneys representing the Chicago MIL
waukee L. st. Paul, the Chicago, Burlington
& Quincy, the Chicago d Northwestern, the
Great Northern, the Chicago ST. faul, MIN
ncapolis & Omaha and the Fremont Elkhorn
& Missouri Valley railroads, filed bills OF
complaint in the United States court pray
ing for temporary and permcnent lhJunctlons
against the threatened and intended acts
OF the Board Of Railway Commissioners
CARLAND'S ORDER.
Judpe Garland of the federal court issued
an order recurring the railroad commission
to show cause why temporary lhJuhctloh
should not be granted and set August us
the date for the hearing. restraining
clause was inserted in the order' pfSTe.Iins
the commissioners from making, establishing
or promugating without notice or nearing,
given and had after July l, any schedule OF
passenger or freight rates.
On August 2 the hearing was held. Attor,
news for the railroads appeared ana argued
70 the effect that any reduction by the Board
of Railway Commissioners in the present
rates of freight and passenger fares WOULD
be depriyng the railroads of their property
without due process of law and or the equaI
nrntection of the law. It was contended that |
the board OF commissioners intended reduc-
ing freight and passenger rates to such an
extent that the earnings OF the railroads
from such sources would be 10 per cent less |
md
the railroads could not pay operating ex- |
Denses of their roads and interest on their |
bonded Indebtedness. The attorneys ior the
railroads also declared that the roads are not |
able at the rates and fares now charged Dy
them In South Dakota to pay the operating |
expenses and interest on the bonded indebt- |
edness.
In reply the railroad commissioners denied
that they had prepared a schedule OF frelSht |
and passenger rates and that neither mad
they at any time threatened reduction OF |
10 per cent or any other sum on frelght |
transported over the lines of railroad In |
South Dakota, nor had they agreed upon any
maximum passenger rates. The commission
ers declared that at the time the restraining
order was served upon them they had not
completed their Investigations
Judge Garland, in his decision denying the
iniunctions expressed the opinion that all
acts of the railroad commissioners Qrior to
July / were void and OF no effect. THE de-
PENDANTS could not give the notice required
by law ten days prior to July 1, declded
he "hence their attempted action was illegal
but the restraining order of this court pre-
vented any action on July I, 1897, without
the legal notice, and it is uot apparent that
a temporary injunction could now restrain
the Beard of Railway commissioners from
doing something on July I, 1897. without no.
tice; and so far as any future action is con-
cerned. must presume the Board OF Rail
way Commissioners will obey and comply
with the law. So on this branch of the case
q
rary Injunction"
INVESTIGATIONS COMPLETED.
After this decision the board of commits
sioners completed its Investigations and
on August q adopted a schedule OF rates
preparatory to quitting 1t into effect All the
pTeliminares OF the law were comOlied with.
The railroads again commenced proceedings
for an order restraining the commissioners'
from advertising the schedule, on the ground
that should the proposed rates become oper-
aive they would be ruinous to the railroads,
1t was contended by the attorney general
and by the attorneys fOr the railway commits
sion that schedule of rates could be de-
clared Illegal which yielded sufficient revenue
to pay operating expenses, taxes and any
part of the interest On the bonded indebted
ness and dividends on capital stock. This
view the court repudiated, and followed the
declsico of Justice Brewer in the case OF
Ames against the Union Pacific railroad (the
Nebmska rate case). and the decision OF the
supreme court of the Uaited States in the
iNeeun case, Wnlcn was aIDealed from leNaS.
The board OF railway commissioners was
Therefore enjoned from publishing or con-
tinulng or permitting the publication OF any
notice OF the adoption and the time OF taking
effect OF the schedule OF rates adopted by
them on August 27, and from taking any
proceeding TO put into effect said schedule
of rates or any schedule OF rates reducing
the average rates of revenue of the railroads
in South Dakota, or from enforcing or at
tempting to enforce said schedules until the
further order of this court"
The only railroads in the state not in