The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1911-01-05


the Milwaukee railroad constantly, ]
believe, for nor than twenty-five
years. o some time past and at
least during all the time since the
hallway Companies of the country
combined to raise freight rates, they
have been organizing ali OF their
employees and urging them by pub
lie addresses, circulars and otherwise,
to do everything possible in politics
and otherwise to sustain the increas-
ed freight rates. The Companies
have tried to impress the importance
of this matter upon every employee,
from President to section men. Is
1t reasonable to suppose that Mr.. Ell
lott has not been in harmony with
this action? II so, would the Com
pany have taken him from the class
OF local attorney and made him gen
eral attorney for the State of South
Dakota at a large salary? If you had
a case against the Milwaukee Rail-
road where there was 100000 or even
less involved, would you consent that
Mr.. Elliott should act as Referee to
try the case, ven though he had not
been attorney in that particular case?
The State Of South Dakota has
now pending in the Federal Court
cases involving hundreds of thou
sands of dollars. There is likely to
be other cases arising within the
next few years of even greater i'm
%portance. DO you think it a square
deal to the people of the State of
South Dakota, under the circum-
stances, to appoint Mr.. Elliott as
Judge to sit in the trial of such
cases? Are there no other attorneys
in the State Of South Dakota who
have not been railroad attorneys,
with ability enough, and honesty
enough, to act as a Federal Judge?
Perhaps the Railway Companies are
not looking after the appointment of
BILE to me. know they have not
the general officials to look after the
election OF mayor and council men
in some of the Cities in this State,
ana that within very recent years.
Capital Collected in Rates.
""The Railway Companies of the
country are asking to increase their
rates for transportation, not because
it is necessary to maintain their
property at its present value to pay
fair rate of interest upon the value
of the property used and the cost of
operation, but that it may add to the
value Of the property amounting to
millions of dollars.
THE great bridge cross the Mis-
souri, River at Pierre, recently con-
structed by the c. &. N. w. Ry. Co.,
and the road from Pierre to Rapid
City, 176 miles, was built and paid
for out of the surplus earnings of the
road. The Company has not capital
lied the value of that property, but
1t is the same to the public, and to
the Company. whether it is Capital
ized' or not. Under the decisions
of the Supreme Court of the United
States, rates must be based upon the
value of the property, and not upon
capitalization, and when the North
western Railway Company, or any
other company, has a rate case,
whether before the Courts or Com
missions, it always proves the value
of all of its property, and knows that
it is entitled, under the law, to
rates that will pay a return upon such
value, whether the property was paid
for by the public, or by the invest
ors in it's stocks and bonds.
What Railroads Want.
Briefly stated, the Railway Com
panies of the country are ,%ontending
for rates that will enable them not
only to pay the cost of operation, a
fair return upon the value of it's prop
erty, and to maintain it's property at
its present value, but that will ena-
BILE 1t to accumulate a surplus with
which to pay for betterments, i'm
provements, additions and extern
sions, and then compel the public to
pay a return upon the value Which it
has added to the railroad property.
"You may say that the proposition
Is SO unreasonable and unjust that
no Court would sustain the Compan-
les in their contention. AS early as
last July, Mr.. Knapp, who is to be a
member of the Court that passes up
on these matters, declared himself in
favor of that very thing.
II hope that you will reconsider
your action as to the appointment of
Federal Judge for this District.
Your Obedient Servant,
Geo. Rice