Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1901-08-17
RAILROADS WIN 4
DECISIVE VICTORY
Long Fought South Dakota Rate
Case Has Been Finally
Adjusted.
b. s. JUDGE CARLAND's DECISION
Declares That to Enforce Commission
Proposed Schedule Would Tako
Property OF the Railroads with
out Sanction OF Law.

Sioux Falls. S. D., Aug. ~12.-Judg'
Garland. OF the United States court
late Friday afternoon filed his de
cision I'm the now celebrated South Da'
kota railroad rate case.
His desicion Is I'm substance as fol
lows: THE schedule OF maximum
rates OF charges for the transportation
OF freight and passengers adopted, fixed
and established by the board Of rail
road commissioners of South Dakota
is held TO be in violation OF the consti.
tuition OF the United States I'm this, to-
wit. That the scedule, II enforced
would operate 10 take h property OF
the railroad without just compensa.
ton; without due process OF law, and
would deprive II OF the equal protec-
ton OF laws. 1t Is held that the
schedule adopted by the railroad com
missioners would not afford the rail
o company reasonable compensation
for the service performed.
THE railroad commissioners and
their successors, agents, etc, are per-
petually enjoined and restrained from
| putting into effect or attempting OF
claiming 10 put into effect, the schedule
OF freight and passenger rates adopted
by the board. 1t Is ordered that the rail-
road company recover OF the commits
sioners It's costs 10 be taxed, together
with It's disbursements necessarily In
cured"
Judge Garland further decides that
when circumstances have changed 50
that the rates adopted In the schedule
shall yield the railroad company rea-
sonable compensation for the service
performed the board OF railroad
commissioners "A apply TO his court.
by supplemental bill or otherwise, for
II further order In that behalf.
A Hard Fought Case.
The history Of the case shows II to
be one OF the most holly contested In
the legal annals OF the country. Feb
ruary 3, 1897, the state Legislature
passed an act empowering, among
other things, the state railroad com
mission to prepare and put into effect
Il maximum freight n passenger
tariff for the railroads doing business
I'm the state. The bill passed the legis-
lature by almost a unanimous vote re-
publicans. democrats and pOpulists
practically to "A man voting for IT.
Prior TO July /, 1897, when the bill
was to become effective, the railroad
commission, consisting OF Messrs. Kirk
patrick, Tompkins and LaFollette, who
were elected by the fusionistS at the
election in the fall OF 1896, visited Des
Moines, Chicago and other eastern
points In quest of information which
would assist them I'm preparing what
they deemed n proper n equitable
schedule. After many weeks labor
they were enabled to prepare a schedule
OF passenger and freight rates, and in
tended promptly on July /, 1897, TO pro-
mulgate 1t and put 1t into effect.
June 2, 1897, the railroad commission
had issued public notice to the rail-
roads n other corporations or per-
sons engaged as common carriers In
the state for the transportation OF pas
sengers or property by railroads, as
well as interested shippers, that or
June n, and from that time until July
/, they would be In session and grant
u public hearing to the corporations
and persons interested.
on June %, 1897. attorneys represent
Ing the Chicago, Milwaukee & st. Paul,
the Chicago, Burlington a. Quincy, the
Chicago q Northwestern, the Great
Northern, the Chicago. st. Paul, Min
neapolis 81 Omaha, and the Fremont,
Elkhorn d Missouri Valley railroads
filed bills OF complaint, praying for tenn
porary and permanent injunctions
against the threatened and intended
bNAo VI NiN 'bi' Va A"il bahN
sioners to show cause why a temporary
injunction should not be granted, and
set August 2, 1897, as the date for the
hearing. A restraining clause was in
serted In the order, preventing the com
mission from making, establishing or
promulgating without notice OF hearing
given and had after July 1, 1897, any
schedule of passenger and freight
rates.
Deprive Them OF Properly.
August 2 the hearing was held. At
torneys for the railroads appeared and
argued to the effect hat any reduction
by the board OF railway commissioners
In the current rates OF passenger n
freight fares would be depriving the
railroads OF their property without due
process OF law, and OF equal proteC-
ton of the law. 1t waS Intended hat
the board Of commissioners intended
reducing passenger rates to such all
extent that the earnings OF the rail
roads from such sources would be 10
per cent less than at that time, and
that II this were done the railroads
could not pay operating expenses of
their roads and interest on their bond
ed Indebtedness. The attorneys for the
railroads also declared that the roads
were not able at the rates and fares
then charged by them in South Dakota
pay the operating expenses inc in
on their bonded Indebtedness.
In reply the railroad commissioners
that they had prepared a sched-
ule OF freight and passenger rates;
had they at any time threat
ened Il reduction of 10 per cent or any
sum on freight transported over the
lines OF railroad in South Dakota, nor
had they agreed upon any maximum
rates. The commissioners
hat at the time the restrain
ing order was served upon them they
had not completed their Investigations.
Judge Garland. In his decision deny
Ing the injunction, expressed the opin-
ION that all acts Of the railroad COM
m~issioners prior to July 1, 1897, were
void and OF no effect. The defendants
could not give the notice required by
ten days prior to July H. decided
he, thence their attempted action was
illegal, but the restraining order OF this
court prevented any action on July /,
1897, without the legal notice, and IL is
apparent that q temporary injunc-
ton could now restrain the board of
commissioners from doing
on July /, 1897. without no
tice; and SO far as any future action
IS concerned, | must presume the board
IF railway commissioners will obey and
comply with the law. So on this branch
this case there seems to be no neces-
sity for a temporary injunction"
Adopted Schedule of Rates.
After his decision the board of rail-
commissioners completed Its In
and Augusta 1897, adopt