Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1901-08-17

ed a schedule Of rates preparatory to
putting IL into effect. All the prelimi-
naries OF the law were compiled 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.
IL was contended by the attorney
general and the attorneys for the rail-
way commission that no schedule OF
rates could be declared Illegal which
yielded sufficient revenue to pay oper-
ating expenses, taxes n any part of
the interest on bonded indebtedness
and dividends on capital stock. This
view the court repudiated and followed
the decision OF Justice Brewer In the
case OF Ames vs.. the Union Pacific rail-
road (the Nebraska rate case). and the
decision of the supreme court OF the
United States In the Regan case, which
was appealed from Texas.
The board of railroad commissioners
was therefore enjoined from publish
Ing or continuing or permitting the
publication OF any notice OF the adop-
ton n the time Of taking effect OF the
schedule OF rates adopted by II on Au-
gust q, and from taking any proceed
ing TO put into effect a schedule OF
rates reducing the average rates OF
revenue OF the railroads In South Da-
kota, or from enforcing or attempting
TO enforce said schedule until the fur
ther order OF this court"
The only railroads In the state not
included In the order were the Illinois
Central and the Black Hills and Fort
Pierre roads. The former has only
eight miles OF track within the borders
OF South Dakota, n is practically an
affected by the new schedule of rates
proposed by the commissioners. The
Black Hills and Fort Pierre is a mar
row gauge road In the Black Hills. IT
adopted and accepted the tariff pre-
scribed by the commissioners.
Handicapped by Lack OF Funds.
The taking OF testimony in the Ease
had been looked forward to with inter
est. Owing to the fact that the rail-
road commission was short OF funds to
carry on the fight as aggressively as
the members OF the board desired, the
matter of calling an extra session of
the state Legislature to make a suitable
appropriation was seriously considered
for a time. Some OF the more radical
ones ever advised that If a special ses-
sion OF the Legislature were called hat
n Legislative schedule OF rates be passed
with an emergency clause attached so
the new rates would be put into effect
as soon as the measure was approved
by the governor.
But II was seen hat this curse
would not avoid the inevitable legal
contest, and those who proposed II were
compelled to subside. 1t was decided
TO call a special session,
Governor Lee agreeing, with the aid OF
friends, 10 provide the funds necessary
carrying the cases through. Tn.
commission took up only one case, that
OF the Chicago, Milwaukee and st.
Paul road. and has mad a test OF that.
This involves all the questions in con
troyersy.
Judge Crofoot, Of Aberdeen, was APP
pointed master I'm chancery, and in
January, 1898, the railroad commission
ers, with their attorneys. and the
master in Chancery, investigated the
books and records of the Milwaukee
company. In May, 1898, the
master In chanCery's report was sub
to Judge Garland. After n full
hearing, the judge dismissed the tenn
porary injunction, holding that the re-
duced schedule OF rates gave ample
return to the company for the service
rendered.
The railroad company at once APP
pealed the case to the United. States
court, which In January, 1900,
the case, with instructins to
the lower court to investigate the earn
lngs OF the road In South Dakota SO as
to arrive at the equities OF the case.
Judge Crofoot had the matter In charge
and prosecuted the investigation for
over a year, filing his report last June.
This report was approved. on the
jth OF this month arguments were made
before Judge Garland In the case. Sen
ltor A. B. Kittredge represented the
company at the hearing,
and the railroad commission was rep
by Attorney Genera Pyle and
Attorneys r. IL. McMartin of Sioux
and Thomas H.. Null OF Huron.
r. Peck OF Chicago, general So
icitor of the Milwaukee company, was
interested listener to the arguments,
were along the same lines az
those at the hearing In August, 1897.