The herald-advance. (Milbank, S.D.) 1890-1922, 1914-01-30
RATE UPHELD.
JUDGE WILLARD FILES DECISION
WITH CLERK OF FEDERAL s.
f,.t COURT At SIOUX FALLS.
OTHER ITEMS Of INTEREST
From the Capital City, the Various
State Institutions and From
Many Different Parts Of
the Sunshine State.

the Sunshine State.
Sioux Falls.--Holding that the two
cent passenger rate act adopted by
the legislature of South Dakota in
1909, is void because confiscatory,
Judge Willard Of Minneapolis sustains
the proposes; 2h cent rate in an opin-
ION which he has filed with the clerk
Of the federal court in this city. The
opinion practically ends a case that
has had the attention of the courts
for the last six years. Whether or not
the state will appeal the cas- is nee
ain, but in some quarters It is stated
hat it seems likely it will. gt
The az cent rate which is upheld IN
he decision of Judge Willard. is the
same that the railroads agreed to put
asst year, when their proposition was
rejected, and II that which was rec
;mmenaed by J. Howard Gates, mas
.er in %chancery IN the case. who was
It that time a resident of Sioux Fails,
but is now, as a Judge of the state SUI
preme court, living at Pierre.
As master in the case, Judge Gates
reported the value of the company's
property devoted to the passenger
traffic, the revenue from the passen-
ger traffic. and the expenses OF that
traffic. After determining in that way
the net income to the railroad from
that source, he reported. the returns
which the company would receive up
on It's investment in the passenger
business at the different rates of 3
cents, 2k cents and 2 cents per mile.
All the findings We're based upon the
business done during the year ending
June 80, 1908.
On September 20, 1907, the beard Of
railroad commissioners of South Da-
kota promulgated an order declaring
that the maximum passenger rate over
certain lines in the state should be
2h cents per mile between points
within the state. The order Went into
force on October Is of the same year.
However. the different railroads oper-
atfng within the state filed, on Octo-
her 3. 1907, separate bills in equity
against the board asking for i%niunc-
tons against the putting into effect OF
the order and temporary injunctions
were issued prohibiting the board from
putting the order into effect. Ar
engagements We're made in other similar
railroad causes to suspend further pro-
ceedings until the determination OF the
Chicago, Milwaukee and ST. Paul case
hpfnfa tho cnnnIo1 Yoacfor annniptad
October s, 1908. On February 2. 1909,
tho legislature of South Dakota enact
ed an act which fixed the maximum
ratesfO passengers on railroads within
the state at 2 cents per mile. The
act was applicable to the Chicago and
Northwestern Railway company. On
February 3, 1909. a bill in equity was
filed against the Chicago and North
western. the several members of the
board of railroad commissioners and
states attorneys, seeking to prevent
the enforcement, because confiscatory.
and as denying equal protection of the
law.
]. Howard Gates Of Sioux Falls, now
a judge of the state supreme court,
q GppCi.iltQ S1tGiui IlGSlbi II cNdtt~
Gerry in the causes on August 16, 1908.
with power to take the testimony anf
report to the court. The taking Of tes-
tinony began December %. 1909, and
was concluded July 90, 1910. The
master filed his report on Septembei
%. 1911. Nothing mere was done with
the case until after the decision OF the
Minnesota rate cases on June Il. 1917.