, 1921-09-22
GOVERNOR MCMASTER RIPS
1T INTO THE RAILROADS

I hh'AN iAi w lONtIfu vi Nlt lhAlu>llY
will he ruined.
w are informed that present rates
must he maintained In order to allow
the railroads to earn q per cent on
their investment. The present rates in
South Dakota can never permanently
earn the railroads 6 per cent. or any
other rate, for the reason that these
rates are destroying the agricultural
industry Of the state. as well as para
lying and demoralizing all other lines
of business. with the result that the
business of the roads will steadily de-
crease. This short-Sighted and unwar-
ranted policy will not only destroy the
agriculture Of the state, but will in the
end destroy the railroads themselves.
"a car of sheep shipped from Ka-
koka. s. d., to st. Paul brought the
owner S12 net after defraying the
freight charges. A car Of sheep ship
ped from Wyoming to st. Paul failed
to bring n price sufficient to defray the
transportation charges. a car of cat
lie shipped from North Dakota to st.
Paul brought the owner SIS net after
paying the transportation thereon. In
Vulnerable instances are on record of
ia M in South Dakota shipping
hides and other products where the
sale price was not sufficient to pay
transportation charges. Oats west of
the Missouri river were selling at 10
cents per bushel and the freight there
OF to Minneapolis was IL cents
per bushel. The railroads are exacting
30 per cent of the total value of the
corn crop raised in South Dakota az
toll for transportation charges.
Now the railroads are not satisfied
with maintaining rates that are crush
ing the life out of the greatest industry
of the state. are not satisfied with the
arrogant. arbitrary. and incompetent
service they have rendered live stock
shippers the past two years-a service
that has financially ruined hundreds of
livestock W of the state-but
they now come bringing a court action
to restrain the state tax commission
from levying an assessment deemed
fair against railroad property.
my vain lihl Nv NdA iblilllllNNAbh
has assessed their property at 100 per
cent of its value. and that farm lands
are assessed at only 80 per cent of
their value. and the Northwestern rail
road with insOlence says that this levy
was fraudulently and corruptly made.
In the coming lawsuit, where the
Northwestern railroad seeks to evade
taxes, it will be interesting to compare
their sheets of physical valuation used
for the purpose of securing lower taxes,
with their sheets of physical valuation
used before the interstate commerce.
commission for the purpose of obtain
ing higher freight rates. In other
words. the Northwestern railroad com
pany after cXacting "A pound of flesh
nearest the heart of the farmer in the
way of Il Understanding freight rate,
now seeks by court action to saddle
their just taxes upon the shoulders of
the agricultural interests.
at is becoming apparent thnt the
general management Of the railroads,
including their legal department. have
ovcrrenched themselves. If they
would spend less money and time in
fighting taNcs and spend less time in
preparing elaborate tables for the pur-
pose of obtaining higher freight rates
at the hands of the Interstate commerce
commission. and would devote their en-
ergies 10 developing efficiency in man
ngement and operation Of their road,
and adopt the slogan that reduced
rates means increased business. they
would begin to obtain results TIA
would he beneficial To all concerned.
Unless the present railroad manag-
crs ear understand the plain fact that
existing freight rates are destroying
agriculture. the basic industry Of his
country. which in the end means the
destruction Of the railroads themselves.
the logic of the situation will sweep
the general management aside and
their places viii bc filled by broad
gaugcd men with ability to comprehend
that the prosperity Of the railroads X
inscparnbly linked with all other lines
Of industry.
"Gf we are going to emerge success
fully from his nom Of crisis, the in.
t~erState commerce commission must
sweep aside red tape. long drawn out
hearings. complicated tables and
churts. and face squnrcly the plain
truth that present rates are surely
|struugling the comtry'S basic industry.
They must recognize the fuct HAT
present rutcs cunnot continue to earn
G per cent pcrmnnrtly. or any other
returns approNimnting such rate. upon
their investment; that decreased rates