The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-08-10
RAILROADS WIN OUT
SOUTH DAKOTA RATE CASE is DE-
CIDED IN THEIR
FAVOR
BOARDS TARIFF KNOCKED OUT
State Railroad Commission Perpet-
uaHy EnjOined From Interior
ing With the Published
Schedules.

States court, late this afternoon hled his
decision in the now celebrated South Da-
kota railroad rate case, The decision is
in favor of the railroads and the rail-
road commissioners of South Dakota
are perpetually enjoined from attempting
to put into effect the schedule of freight
and passenger rates adopted by the
board.
Feb 8, 1897 the state Legislature passed
an act empowering the state railroad
commission to prepare and put into eff
feet a maximum freight and passenger
tariff for the railroads doing business in
the state. AS a preliminary to this action
the schedule as adopted by the commits
sion was to be published, as notice to the
railroads. The new railroad law as
originally drafted contained an emerg-
ency clause, but this was stricken out
prior to it's passage and approval.
AS a substitute it was provided that in
any event the original schedule should
go into effect July l. 1897. The bill passed
the legislature by almost an unanimous
vote Prior to July l. 1897. the railroad
commission, consisting of Messrs. kirk
patrick Tompkins and LaFoltete, visited
Des Moines, Chicago and other eastern
points, in quest of information which
would assist them in preparing what they
deemed proper and equitable schedule.
After many weeks labor they were
senger and FIRE ght rates, and intended to
promulgate it and put it into effect on
July J. 1897. On June 2, 1897, the railroad
commission issued public notice to the
railroads and other corporations or per-
sons engaged as common carriers in the
state for the transportation Of passengers
or property by railroad as we'll as in
terested shippers, that on June q. and
from that time until July l, they would
be in session and grant a public hearing
to the corporations and persons interest
ed.
June 2S, 1897, attorneys representing the
Chicago, Milwaukee & st. Paul, the Chi
cago, Burlington & Quincy. the Chicago
& North Western the Great Northern, the
Chicago, st. Paul, Minneapolis & Omaha,
and the Fremont, Elkhorn & Missouri
Valley railroads filed bills of complaint,
praying for temporary and permanent IN
functions against the threatened and in
tended acts OF the board of railroad COM
missioners. Judge Garland of the United
States court, issued an order requiring
the railroad commission to snow cause
why a temporary injunction should not
be granted, and set Aug. 2, 1897, as the
date for the hearing. A restraining clause
was inserted in the order, preventing the
commission from making, establishing or
promulgating without notice OF hearing,
given and had after July l. 1887, any
schedule of passenger and freight rates.
On Aug. 2 the hearing was held. At
tOrneys for the railroads appeared AMI
argued to the effect that any reduction
by the board of railway commissioners
in the current rates of passenger and
freight fares would be depriving the rail-
roads of their property without cue
process of law. 1t was commended that
the board of commissioners intended re-
ducing freight and passenger rates to
such an extent that the earnings of the
railroads from such sources would be TO
per cent less than at present, and that If
this were done the railroads could not
pay operating expenses Of their roads,
and interest on their bonded indebted
ness. 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 to pay the
operating expenses and interest on their
bonded Indebtedness.
In reply, the railroad commissioners
denied that they had prepared a schedule
Of freight and passenger rates; neither
had they at any time threatened a re-
duction of 10 per cent, or any other sum
on freight transported over the lines of
railroad in South Dakota. nor had they
agreed upon any maximum passenger
rates. The commissioners declared that
at the time the restraining order was
pleted their investigations
Judge Garland, in his decision denying
the injunction, expressed the opinion that
all acts Of the railroad commissioners
prior to July l, 1897 were void and Of
no effect
After this decision the board of rail-
road commissioners completed its in
vestigaions, and on Aug. q, 1897 adopt
ed a schedule of rates preparatory to
li,,,s
naries of the law were complied with.
The railroads again commenced pro-
ceedings for an order restraining the
commissioners from advertising the
schedule on the ground that should the
proposed rates become operative they
would be ruinous to the railroads
It was commended by the attorney gem
eral, and by the attorneys for the rail-
way commission, that no schedule of
rates could be declared Illegal which
yielded sufficient revenue to pay oper-
eung expenses, taxes and any part of the
interest on the bonded Indebtedness and
dividends on capital stock. This view
the court repudiated.
The board of railroad commissioners
was therefore enjoined from publishing
or continuing or permitting the publica-
ton of any notice of the adoption and
the time of taking effect of the schedule
of rates adopted by it on Aug. q, ard
from taking any proceeding to put into
effect said schedule Of rates. or anv
schedule of rates reducing the avera &c
rates Of revenue of the railroads in South
Dakota, or from inforcing or attemptins
to inforce said schedule until the further
order of this court"
The only railroads in the state not in
cluded in the order were the Ilinoi.
Central and the Black Hills & Fort Pierr,
roads The former has only eight mile.
OF track within the borders of South Da
kota, and is practically unaffected bv tn,
new schedule of rates proposed bv tn,
commissioners. The Back Hills & For
Pierre Is a narrow gauge road in tn.
Black Hils L adopted and accepted tn,
tariff prescribed by the commissioners
Bonds in the sum of $4,000 were reouIr
ed in each case to secure costs and an,
damages that the court might award If
on the termination Of the suits it Shout,
be determined that the writ was i'm
properly issued.
The taking of testimony IN the cas-
had been looked forward to with interest
Owing to the fact that the railroad com
mission was short Of funds to carry NJ
the fight as aggreasively as the member
OF the board desired the matter of can
ing an extra session of the state legisIs
ture to make a suitable appropriation
was seriously considered for a time. bu
was ultimately abandoned Gov. LIE
agreeing with the aid o. friends, to pro
vide the funds necessary for CARRYING N
cases through. Tie commission took II
only ore case that OF the Chicago. Nil
wauEee & st. PAM. and made a test o
that This involves al the questions 4
controversy.
Judge Crofoot of Aberdeen. was an
pointed master In chancery, and in Ian