History of Dakota Territory, volume III, Part 42

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1146

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The Fourteenth Session of the Legislature was unusual in several particulars. The work was notably characterized by the absence of partisan or factional en- counters or disputes. Very few freak bills found their way out of the committee rooms. The introduction of unnecessary bills was constantly and consistantly discouraged. As a result the bills introduced numbered 200 short of the total number introduced at the preceding session. There was not a fight, as was usually the case, over the organization of the House and the session closed with- out a serious political contest over any question. From a political standpoint, the most important work of this Legislature was the adoption of a substitute for the Richards primary law. The measure adopted finally was the same as the statute which was displaced by the Richards law with the addition of a party registration measure. This bill was passed as an emergency measure. Imme- diately after the session a movement to have the law declared invalid was inaugurated by Mr. Richards and his adherents. It was questioned whether the Legislature had the right to repeal a law secured by the people through the initiative. The Supreme Court decided that the Legislature had power in this case. At this session also a new partisan judiciary law was adopted. The ballot law was likewise amended to restore the party circle at the head of the ticket. The bankers guaranty law was one of the most important measures passed. It was not radical, was aimed to secure the co-operation of the bankers and was not seriously opposed by the banking fraternity. Resolutions to submit amendments calling for state wide prohibition and for state wide suffrage were discussed with considerable emphasis and some feeling, but both were finally adopted. The opposition did not desire to have these issues go before the people, owing to the strong adverse majority registered against a similar movement a short time before. The decision to do away with capital punishment was regarded as an advanced step in the management, control and treatment of convicts. Another radical step in court procedure was the provision that five-sixths of a jury in civil cases could determine the verdict. There was passed also a constitutional amendment concerning the tax commission's plea for a classification of property

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

for taxation to be submitted to the people for ratification. Other notable meas- ures fully discussed at the session of both houses were a law to prohibit the sale of habit forming drugs, blue sky law, liberalization of the libel law and an anti- cigarette law.

CHAPTER VII RAILWAYS, TELEGRAPHS, TELEPHONES, GOOD ROADS, EXPRESSES, ETC.

Late in the 'Sos the Farmers' Alliance was a powerful influence in South Dakota. Its object may have been right, but many of its methods were im- practical and occasioned considerable hardship. It assumed an attitude of hos- tility to all capitalized organizations in the state, particularly against railways, declaring that they were not sufficiently taxed and that they escaped the assessor. In 1888 their attitude was so severe that the railways at times talked of stopping the service unless their attitude was altered or their attacks were withdrawn. They insisted that the railways should be not only more severely taxed but that their rates for freight and passenger traffic should be reduced. This occasioned a strong remonstrance from the railways, owing to the continued restriction. Col. J. H. King was railway commissioner in 1889.

At this time the trade of the Black Hills went almost wholly to Omaha and Chicago. Owing to lack of railroad connections with eastern South Dakota, that portion of the state received no trade from the Black Hills. . This occa- sioned millions of dollars' worth of lost trade to the eastern half of the state as well as to the Black Hills. It would have paid Dakota Territory to have built as early as 1880 at least one railroad line from east to west across the state. Had it done so the road would have paid for itself in a short time, and the vast trade of the Hills which went east would have come to the towns and cities in eastern South Dakota. In all probability had this been done the present cities east of the Missouri would have become much larger than they are at present and the state itself would have been advanced from 15 to 20 years in settlement and progress. Of course, a railway across the state east and west would have had to cross the great Sioux Reservation, but this right could easily have been secured by treaty. The railways themselves did not care to make this venture. The Northwestern succeeded in reaching the Hills through Nebraska, and the Milwaukee system was not ready to proceed further west. Thus the two sections of the state remained isolated from each other, unable to assist in growth and development, though each made strenuous efforts to people their sections and to induce railway companies to extend lines across the great reservation.

When the great Sioux reservation was opened to settlement in 1890, it was believed by everybody that at least two railway lines would be extended west- ward to the Black Hills, one from Chamberlain and the other from Pierre. It was further believed that a little later another would be extended westward from the Missouri River across the northern part of the state, but as time passes these projects remained unacted upon and the country west of the Missouri

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without railroads continued unsettled and was given over to ranges for the cattle men.

The old railroad law of Dakota Territory computed railroad taxes on a basis of gross earnings. The settlers, though really opposed to this plan, did not make an open fight against it, but remained silent in order not to antagonize too severely the railway companies which were aiming for this part of the country. The value of railroads was recognized as indispensable, and accord- ingly the people were willing to favor the roads in any reasonable way in order to secure the services.

"The Northwestern now has a road into the Hills. The Burlington system also had a road into the Hills ; a line from Sioux City via Niobrara is now being surveyed to the Hills; the Union Pacific has long been figuring on a road into the Hills from the south; while the Milwaukee system is surveying and must complete a line to that country within the next year or two. With the business of the Hills divided up among these different roads there is no inducement for the Northwestern to spend $2,000,000 in bridging the river and building a duplicate trunk line to the Hills .- Huronite, August 19, 1890.

As early as 1890 the small road built by the Homestake Company was in operation in the Hills. The Hills community formed a wonderful microcosm of their own. For a number of years they had no railways whatever, but reached the outer world by stage coaches and wagon trains. They first began railroad building from one point to another in the Hills. This gave them great facilities for carrying on mining operations, and accordingly built up the Hill section with population at so rapid a rate that the large mining companies found it imperatively necessary to construct short lines that would unite the principal cities and communities of the Hills section.

Immediately after the state was admitted, all authorities agreed upon the importance of advertising extensively at once the resources of the state, the desirability of living here, and the ease with which a comfortable living could be made. The railways were induced to advertise in their circular sthose advantageous features which would apparently attract settlers. The artesian wells and their splendid water were thus described and the circulars of the companies carrying the news found their way to all parts of the world.

In 1892 the Yankton & Norfolk Railway was projected. This movement was greatly aided by John T. M. Pierce. For five years previous to 1893 a road had been contemplated from Sioux Falls to Yankton. In 1892 largely through the influence of Senator Pettigrew, this project was revived and strengthened. Another railway project at this same time was one connecting Yankton, Kearny and Sisseton. H. J. Rice was at this time chairman of the State Board of Railway Commissioners. From his report it is learned that on June 30, 1891, there were 2,679 miles of railway in South Dakota, of which 182 miles were built during the year ending June 30, 1891. The capital stock of these railroads amounted to $340,000,000. At this time the Deadwood Central or Narrow Gauge was in operation and the Forest City & Sioux City was projected. In the fiscal year 1890-91, four new railways for South Dakota were incorporated. At this time an electric railway was planned from Deadwood to Lead, Terra- ville and other cities. With this electric system F. A. Burkick was prominently connected. The Sioux Falls Western Railway Company was organized in

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

August, 1892, at Sioux Falls with the following directors: Melvin Grigsby ; C. A. Jewett; J. T. Corson; C. E. Baker; C. E. Johnson ; J. H. Chapman ; G. H. Brace; E. B. Meredith; and D. L. Mckinney. Mr. Grigsby was elected presi- dent of the directorate, and at once commenced the work of grading between Sioux Falls and Yankton and Sioux Falls and Madison.

In 1893 the state was divided into three railway districts and a commissioner for each was appointed. In October, 1893, the Great Northern completed its line to Yankton, and upon the arrival of the first train there a great celebration took place. On September 10, 1893, track laying on the Sioux Falls and Yank- ton branch was completed within sixteen miles of Yankton. This line was then known as the Yankton & Southwestern Railway. The first trains over this line ran to Yankton in September. The Great Northern was competing for the trade of Southeastern Dakota at this time. It finally reached Yankton with its first train on October 14.

In January, 1893, Governor Sheldon in his inaugural message expressed the opinion that should the Legislature make the railway commissioners elective, the act would undoubtedly transfer the whole subject to the province of politics and to other undesirable fields of interference and distraction. The republican state convention had recently and officially declared in favor of this movement. It now remained for the Legislature to take pronounced and specific action against such proceedings, said the governor.

The following table shows the railroad companies that were doing business in South Dakota in 1893, together with their mileage and their assessments as equalized by the state board :

Companies

Mileage

Assessment

Chicago, Milwaukee & St. Paul

1,091.69

$3,768,436

Chicago & Northwestern.

929.16

3,182,115

Grand Island & Wyoming Central.

133.20

406,053

Cedar Rapids, Iowa Falls & North Western.

82.76

276,435

Black Hills & Ft. Pierre.

42.10

142,320

Chicago, St. Paul, Minneapolis & Omaha.

88.20

317,520

Dubuque & Sioux City.

14.95

62,720

Wilmar & Sioux Falls.

24.31

80,223

Duluth, Watertown & Pacific

69.84

209,520

Great Northern

99.25

337,450

Wisconsin, Minnesota & Pacific.

38.84

97,100

Sioux Falls & Terminal

7.01

17,525

Sioux City & Northern

7.25

23,367

South Dakota Rapid Transit

7.25

5,075

Madison Water Line

3.5

2,625

Forest City & Sioux City.

16.5

13,200

Watertown & Lake Kampeska

5.61/4

2,812

All the roads except one showed during the previous fiscal year gross earn- ings considerably in excess of the operating expenses. The Grand Island & Wyoming Central showed gross earnings of $195,953 and operating expenses of $252,877.

In 1894 the Burlington & Missouri River line was being extended from the Black Hills and Spearfish terminals to a junction with the North Pacific in Montana. Late in 1894 the Hot Springs and Wind Cave Railroad, twelve miles

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

in length, was incorporated with a capital of $150,000. In 1894 the railways resisted the levy 'of a sinking fund tax made by the counties through which they extended. They brought suit against Faulk County to prevent the accom- plishment of this object. At the legislative session of 1895 the House voted against the railway bill by 18 to 38. The movement of the grangers and of the farmers' alliance and other retrenchment organizations against the railways and for economy put all the railways on the defensive and they therefore imme- diately organized strong lobbies, employed able lawyers and fought for their rights.

The report of the state auditor in June, 1895, showed that the Pullman Palace Car Company and the Wagner Palace Car Company had small interests in the state and hence they were taxed on only a small valuation. The former ran cars through Fall River, Custer, Pennington, Lawrence, Lincoln and Minne- haha counties and the latter ran cars through Beadle, Hand, Hyde, Hughes, Meade, Custer, Fall River, Pennington and Lawrence counties. The express companies doing business in the state were the Great Northern, Adams, Amer- ican and United States. The largest amount assessed against either was $17,506 against the American.

In 1898 the railroads of the state possessed property of great value, and the roads themselves exerted a powerful influence in manipulating state affairs and in shaping legislation. They steadily evaded and successfully resisted laws that were passed for their regulation and control. It was admitted at this time that the railroad question was one of the most important and difficult yet remaining for the people to settle and adjust. It was believed that they did not bear their full share of the burden of taxation. However, it became known that the total value of the railroad property of South Dakota companies in 1898 was over thirty million dollars, and that it was assessed at a little over nine million dollars. Thus it was strangely claimed by the state authorities that the railroad assessment was not high enough. On the other hand railroads consistently maintained and justly so, that their assessment was as high as the average throughout the state. Many realized that the railroads in coming through the new state had worked at a disadvantage and been subjected to enormous outlays, and the people justly believed that they should be favored not only with low taxation, but with the privilege of charging more for their services than was paid by companies farther east. One provision of the law which applied to railroads but did not apply to any other class of property, was the course or custom of taking into consideration the earnings of the roads as well as their values. This was believed to be unjust by many in the state. The state auditor asked that this provision of the law be repealed, because the state board had no means of learning the earnings of the road except from their annual statements, and these statements were regarded as practically worthless for the purposes of ascertaining the correct valuation. Most of the companies refused to place any valuation on their main lines, but usually placed a fair valuation on their side tracks, buildings and equipment. One company in 1898 reported that its depots were worth four times as much as its rolling stock, more than five times as much as they were in 1897, and yet did not add a single mile of track to its main system. The companies in computing their earnings did so upon the mileage basis, which was unfair to the state, and their con-

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

clusions in this particular were useless to the state board in determining the earnings. Other defects in the railroad law were pointed out by the state auditor.

The Chicago, Milwaukee & St. Paul Railroad in this state was taxed $106,779.06 in 1898. This was 5.79 per cent on their total earnings of $1,844,- 118.67. They claimed that the tax was 18.36 per cent on their net earnings, that since statehood their average assessment in this state was 5.88 per cent, and that on the net earnings it had averaged 22.84 per cent per annum. They claimed that their operating expenses in this state in 1898 was $1,178 per mile and in 1899 was $1,254 per mile. The operating expenses per mile of the North Western Road in 1898 were $1,249 and in 1899 were $1,238 outside of bond interest. The latter road claimed earnings of $1,147 in 1898 and $1,215 in 1899. The Milwaukee showed earnings of $1,675 in 1898 and $1,855 in 1899. The Elkhorn showed earnings per mile of $2,095 in 1898 and $2,108 in 1899, while their operating expenses per mile were $2,023 in 1898 and $2,064 in 1899. The Winona & St. Peter division of the North Western, with a length of 34.48 miles, showed earnings of $12,756.17 in 1898 and $13,808.65 in 1899, with operating expenses of $1,220 in 1898 and of $1,229 in 1899. Proper rail- road valuation and assessment at this time was an important question both in politics and in commerce.

In 1899 William Plankinton, a wealthy citizen of Milwaukee, was president of the Western Portland Cement Company of Yankton. He owned at this time large interests in railroads, banks, lands and packing projects in South Dakota. In 1899 the Forest City and Sioux City line between Forest City and Gettys- burg was graded and put in order for operation.

In 1899 the following railways were in operation in this state: Black Hills & Fort Pierre; Burlington, Cedar Rapids & Northern; Chicago, Milwaukee & St. Paul; Chicago & Northwestern; Chicago, St. Paul, Minneapolis & Omaha ; Illinois Central; Forest City & Sioux City; Fremont, Elkhorn & Missouri Val- ley; Grand Island & Wyoming Central; Great Northern; Wilmar & Sioux Falls; Madison Water Line; Sioux City & Northern; Sioux Falls Transporta- tion ; Sioux Falls Terminal; Watertown & Lake Kampeska; Minneapolis & St. Louis; Wyoming & Missouri River. The assessments on these roads per mile varied from $2,625 to $5,850. The branches of the Chicago, Milwaukee & St. Paul line were as follows: Iowa & Dakota Division; Running Water-Eden Branch; South Minnesota; Madison Branch; Hastings & Dakota; Whetstone Branch; Fargo Branch; James River Branch; Edgerly Branch; Bowdle Branch ; Orient Branch; Sioux City & Dakota Branch; Armour Branch; Sioux Falls Branch. The branches of the Fremont Elkhorn & Missouri Valley were as follows: Narrow Gauge; Black Hills Division; Hot Springs Branch; Minne- sela Branch. The branches of the Chicago & Northwestern Railway were as follows: Winona & St. Peter; Dakota Division; Watertown; Oaks; Groton ; Watertown & Gettysburg; Southeastern; and Yankton. The branches of the Grand Island & Wyoming Central in South Dakota were as follows: Narrow Gauge; Nebraska to the Wyoming boundary; Edgemont to Deadwood; Spear- fish; Hot Springs; Great Northern extension from Aberdeen to Breckenridge and another out from Huron.

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

In September, 1899, the Milwaukee Company began the work of extending its line from Yankton to Charles Mix County. About the same time the Minnesota & South Dakota Company, of which Marvin Hughitt was president, filed articles of incorporation and prepared to build twenty-six miles of line of which seven were to be in South Dakota. In September, 1899, the Mil- waukee "broke dirt" on the Charles Mix County extension.

It became manifest late in the 'gos that South Dakota would have before many years a material reduction in its railroad rates. The populists had early started this crusade for lower railroad rates, and the movement continued after they had been retired from state control. Credit for the movement was also due to the men who advanced money to sustain the state when the appropriations had been exhausted. Likewise newspapers and public speakers who had fought for a reduction for several years were given credit. In the settlement was the act of Judge Carland who really suggested how the railroad problem should be and could be handled. Further help was given the move- ment also by Governor Herreid and Senator Kittredge who finally completed the movement and set it in operation, but this board of railway commissioners missed fame, popularity and power by not effecting anything beyond repeated procrastination.

The first line of railway to give the Black Hills relief and provide it with an opening to the commercial world was the old line from Valentine and Chad- ron and from Ainsworth and O'Neill to the Black Hills directly from Norfolk and Omaha.

In December, 1901, there was a conference of governors at Helena, Mon- tana, in regard to railroad matters generally. Governor Herreid and Attorney- General Pyle were there to consider the interest of South Dakota. It was planned to consolidate the Northern Pacific, Great Northern and the Burlington Railway properties. South Dakota was not as much interested as Minnesota was, because the effects of the consolidation would be mainly in Minnesota and farther west than Montana.

During 1901 short extensions of the Northwestern were made in the Black Hills. This system also acquired a few of the old railway organizations in that portion of the state. A loop thirty miles long into Campbell County for an extension of the St. Paul, Minneapolis & Sault Ste. Marie to the Missouri River near the northern line of the state was planned. There was also pro- jected a line from Evarts on the Missouri River to Butler, Montana, with a branch extending to the Black Hills. There was also planned a branch of the St. Paul Minneapolis & St. Louis line from Aberdeen to Bismarck.

In 1900 and also in 1901 Sioux Falls and a considerable portion of the eastern part of the state were interested in the railway project which con- templated the construction of a line from Sioux Falls to Madison. The Sioux Falls council appropriated $10,000 for the purchase of the right of way.

In 1901 a branch of the Fremont Elkhorn & Missouri River line was projected into Gregory County with terminus at Bonesteel. This extension was demanded by the proposed early opening of Rosebud Reservation. About the same time the Milwaukee line extended a branch from Eureka northward across the state to connect with the Northern Pacific at Linton in North Dakota. This line also projected an extension to the Black Hills.

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

In the spring of 1901 the Franklin electric road was projected in the Black Hills. A franchise was given by the Deadwood city council and the electric company prepared to start the line from near the smelter in the first ward thence passing through Main street. It divided, one branch passing up Poor Man's Gulch to Lead via Central City and the other branch going up White- wood Gulch via Pluma. It was planned to secure right of way from Lead; and the other principal Hill cities were expected to grant franchises as soon as the lines could be extended.

In several of the counties west of the Missouri River the legislative cam- paign in 1902 was conducted largely upon the issue that a railroad would be built by the state from the eastern to the western boundary, if certain important results ensued in the political field. While the demand for this road was impracticable, the agitation demonstrated that the first desire of the range country was for a railroad.

In November, 1902, the Railroad Commission reported that the railroads of the state had enjoyed during the past year a season of unprecedented pros- perity, and that South Dakota had contributed generously to the earnings of the railroad companies operating within its borders. The total mileage of all state railroad companies reported within the state was 3,056.04 miles. This was an increase over the former year of 48.18 miles. The gross earnings of these roads in South Dakota during the year as reported to the commission were $5,354,334.26, and for the year 1901 were $4,614,879.10. This did not include the earnings of the Burlington & Missouri River Railroad Company within the state. The total taxes paid in South Dakota during the year ending June 30, 1902, by all railroads operating in the state, amounted to $284,641.79. The one paying the highest tax was the Chicago, Milwaukee & St. Paul, the amount being $110,871.30. The next highest was the Northwestern, which paid $71,799.44. The roads paying these taxes were as follows: Chicago, Cedar Rapids & Northern; Chicago, Burlington & Quincy; Chicago & North- western; Chicago, St. Paul, Minneapolis & Omaha; Chicago, Milwaukee' & St. Paul; Dubuque & Sioux City; Fremont, Elkhorn & Missouri Valley; Great Northern, (Duluth, Watertown & Pacific and Wilmar & Sioux Falls) ; Minne- apolis & St. Louis ; Minneapolis, St. Paul & Sault Ste. Marie; and Wyoming & Missouri River. During the year 43.38 miles of new road were constructed, a part being on the Fremont, Elkhorn & Missouri Valley on the extension of the Minneapolis, St. Paul & Sault Ste. Marie and on the Burlington & Mis- souri River.

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History of Dakota Territory, volume III, Part 42

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920 Publication date: 1915 Publisher: Chicago, Ill. : S.J. Clarke Publishing Company Number of Pages: 1146

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1146