History of Dakota Territory, volume III, Part 45

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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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

products shipped into the state or out of the state was made, with the same condition of affairs in other states. The rates of 1911 represented the effort of the board to prepare all the freight rates on the same basis, and to eliminate the Missouri River as the dividing line on freight or any other kind of traffic. In the summer of 1912 this was the condition of railway traffic in South Dakota.

The 21/2-cent railway rate law was put into force March 21, 1914. From the start the railways had continued a concerted and systematic movement to delay the operation of the law. Becoming tired of the delay the Legislature of 1909 passed the 2-cent railway law which was approved by the governor the next day. The case continued to be drawn out, but in September, 1911, the court held that a 21/2-cent fare was equitable, but that the 2-cent fare amounted to confiscation under existing conditions and therefore was unconstitutional. Thus the case had gone the rounds of the courts for fourteen years, but at last the 21/2-cent rate law was declared constitutional. P. W. Dougherty was the attorney who carried this last case through the courts.

In 1910 about two hundred miles of new railway were built in the state, the Moreau and Cheyenne extensions of the Milwaukee system, the Gettysburg extension of the Northwestern and the Belle Fourche Valley extension of the Northwestern. The Northwestern completed its line from Belle Fourche to Newell. the Milwaukee completed its division along Moreau River from Bridge to Isabelle and the Cheyenne River line from Mobridge to Dupree.

At the close of 1910, the total valuation of the railroad property in the state as compiled by Clark C. Witt, engineer, was $91,695,132, or an average of $23,183 per mile. The total number of miles of main track in the state was 4,458.96. The railroads assessed at this time were the Chicago & Northwestern; Pierre & Fort Pierre Bridge; Pierre, Rapid City & Northwestern; Chicago, Milwaukee & St. Paul; Chicago, Milwaukee & Puget Sound; Chicago, St. Paul, Minneapolis & Omaha; Rock Island; Illinois Central; Dakota Central; Great Northern; Minneapolis & St. Louis; Minneapolis, St. Paull & Sault Ste. Marie; Rapid City, Black Hills & Western ; Wyoming & Missouri River ; Chicago, Burlington & Quincy.

In the spring of 1913 the long talked of interurban railway running from Sioux 'City to the Black Hills via Vermillion, Centerville, Menno, Armour, Chamberlain and other points was again brought before the people. It was now proposed to call for bonds in the sum of $1,000,000 with which to begin the initial construction to be paid for by installments as the road should progress westwardly. This project had been agitated for more than a dozen years. Four years earlier the road was incorporated under the name of the South Dakota Interurban Railroad Company. F. E. Miller was the principal promoter. There had been taken up by this time subscriptions to the amount of $450,000 toward the capital stock of the company.

In the spring of 1913 the Sioux Valley & Northern Railroad Company was chartered with a capital stock of $1,000. This sum was merely nominal. The line was projected from Watertown through Codington, Grant and Roberts counties to the northern edge of the state, a distance of about one hundred miles. Connected with this movement were F. F. Heathcote, John Maxwell, F. J. Klix, H. C. Hagen, T. N. Bergan and others.

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

In 1914 several important transfers of short lines were made to the North- western and the Milwaukee systems, particularly in the vicinity of Belle Fourche, Gettysburg and the James River. The Greenville & Southeastern Railway Com- pany was incorporated this year to connect Greenville with Rosholt. In 1914 the following roads and lines were operating in this state: Chicago, Milwaukee & St. Paul; Chicago & Northwestern; Great Northern; Chicago, Burlington & Quincy ; Minneapolis & St. Louis; Pierre, Rapid City & Northwestern; Chicago, St. Paul, Minneapolis & Omaha; Chicago, Rock Island & Pacific; South Dakota Central; Pierre & Fort Pierre Branch; James River Valley & Northwestern; Dubuque & Sioux City, and extension of the Illinois Central; Soo Line; Belle Fourche & Northwestern; Rapid City, Black Hills & Western; Wyoming & Missouri River; Fairmont & Veblen. All the railways of the state were assessed a total of about $129,474,118, or at the rate of $30,534 per mile.

The legislative session of 1915, as had been the practice for many past sessions, attempted to enact a large amount of railway legislation. However, only a few bills were introduced and they received no enthusiasm and hence little support. The principal bills gave the state commission greater powers and discretion in controlling the affairs of railways which came before them for hearing. Another regulated the weighing of cars and freight offered for shipment in carload lots; also weighing live stock on stock yard scales and ascertaining the weight of hay, wood, coal and grain when weighed in ton lots on private scales; also giving the commission jurisdiction over railways and the right to inspect railway, state, town and private scales. Among other complaints that came in early in 1915 was one from the Town of White Butte for a side- track and depot. This town a short time before had tried hard to secure a station, but their application was fought by other interests and they were prevented from securing their object.

Early in 1915 the project of extending the line of the Milwaukee Railroad from Platte to Chamberlain, a distance of forty miles, was duly considered by the railway authorities. For several years the Charles Mix County line of that road had had its terminus at Platte. Conferences with the farmers were held in order to secure the right of way and all were asked to subscribe $1.50 per acre of the amount of land owned by them toward a general fund of $250,000 out of which the forty miles of railroad were to be built. As this road thus constructed would be owned by individuals, it was planned in the end to lease the line to the Milwaukee Company and thus secure service over the road. The contract which the farmers were asked to sign required that no payments need be made by them until the road extension had reached the town nearest their land. This provision indicated that the promoters of the road were acting in good faith. It was planned that the line should pass through Bijou Hills, which little city since pioneer days had been an inland town of the Missouri Valley. Farmers in the Bijou territory were at first enthusiastic in the support of the project to build this road.

In the spring of 1915 Rapid City won in the Circuit Court of Appeals on the suit for payment of the Crouch Line Railroad bonds which had been brought against the city by a bondholder who held a bunch of these securities formerly issued by the city. The principal and interest amounted to about two hundred and fifty thousand dollars. The case was appealed to the higher courts.

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

In June, 1915, the prospect for the construction of the proposed Huron & Northwestern Railroad seemed promising. Frank W. Henderson did much to advance the project. The plan was to build the road from Huron to Fergus Falls, Minnesota. There was some question at first whether to build between Wallace and Sisseton or by way of Webster or Waubay. Should the Webster route be selected the road would strike the Fairmount and Veblem route at Roslyn. If it passed by way of Waubay it would cross the same road at Gren- ville. The contract for grading was let to a Chicago contractor. The road was planned to reach the following towns: Garden City, Wallace, Webster or Waubay, Roslyn or Grenville, Sisseton, Effington, Wahpeton and Fergus Falls. By July 1, 1915, the survey of the branch of the Huron & Northwestern Railroad from Wallace through Waubay to Pickerel Lake was nearly completed and the work of grading was already commenced. Little grading was needed owing to the level country through which the line ran. New towns were started north of Pickerel Lake and a short distance south of Waubay. Bonds to cover the cost of construction had already been sold, so that everything thus far indicated that the line would soon be completed.

In July, 1915, plans were completed for the further extension of the Luce Railway line which was started two years before with the object of connecting Minneapolis and Watertown, S. D., by an air line route. The line really aimed generally at Eastern South Dakota, and Brookings coveted the favor and con- sideration. The extension of about forty-five miles, it was figured, would cost about four hundred and forty thousand dollars. One plan was to run the road to Hutchinson, twenty-two miles from Winstead, and the other was to run the line from Winstead to New Auburn.

In August, 1915, the project of extending the Platte Railway line to Chamber- lain was again agitated. It was believed that it was a Milwaukee Railway enterprise and that it might finally extend through Western South Dakota.

Telephones have had a marvelous growth in the state during the past fifteen years, but before that date passed through a pioneer period during which time there was much to discourage and very little to attract. In October, 1886, the Emmner Telephone Company was organized at Redfield with A. C. Mellette, afterward governor, as president. The company started with about thirty subscribers and a few miles of line, and for a number of years did not grow very fast. On January 4, 1887, the Dakota Central Telephone Company was organized at Sioux Falls, the leading member being J. L. W. Zietlow. At first this company had sixty subscribers and ten miles of line. Both of these com- panies suffered all the trials of pioneers, but slowly grew and extended their lines under very discouraging circumstances. In January, 1912, Sioux Falls celebrated with much enthusiasm the twenty-fifth anniversary of the birth of its telephone, at which time its history was made public. Mr. Zietlow is justly entitled to be called the "father of the South Dakota telephone." From 1887 to 1896 it had a sorry and discouraging existence and grew slowly and some years scarcely at all. In the latter year Mr. Zietlow, who had faithfully sustained the venture, won and the following year added several new lines to his system. In 1898 the Dakota Central lines were all incorporated under one name and head with a capital of $50,000. On January 7, 1902, the Aberdeen exchange was purchased. In 1904 the Dakota Central Telephone Company was incorporated

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

with a capital of $5,000,000 and with J. L. W. Zietlow as president. By January, 1912, the company had 80 exchanges, 5,000 miles of pole lines, 12,000 miles of toll line circuits and 2,500 miles of farm lines. Other telephone centers in the state had a similar experience of alternate discouragement and growth; notably the one in the Black Hills.

The Interstate Telephone Company was organized at Fort Randall in the spring of 1890 with a capital stock of $5,000, which was placed upon the market and sold. M. W. Wood was the first president; J. B. Brown, treasurer; H. B. Vinton, secretary. This company constructed the telephone lines from the fort to Armour and thence to Grandview.

The telephone companies in existence about 1895 were as follows: Aberdeen Company, with twenty miles of line, total value of property $500, gross receipts for the year $1,170; Watertown Company, with twenty-five miles of line, one office, fifty instruments, total value of property $2,000; Northwestern Ex- change, doing business in Minnehaha and Yankton counties, had sixteen miles of line, 191 instruments, total value of property $3,150, gross earnings for the year $7,991 ; Black Hills Telephone and Telegraph Company, 208 miles of line, number of offices thirteen, total value of property $9,910, gross receipts for the year ending April 30, 1895, $17,760. But the growth was yet slow, though from 1896 to 1899 fifteen or twenty companies commenced operations.

In July, 1896, the following telephone companies were doing business in this state: Northern Telephone Exchange, with 31 miles of line; Black Hills Tele- phone and Telegraph Company, 208 miles; Watertown Telephone Company, 25 miles; Hutchinson County Telephone Company, 5 miles ; Harrison Telephone Company, 23 miles ; Iowa & Dakota Telephone Company, 83 miles; Capital State Telephone Company, 20 miles; Bowdle & Bangor Telephone Company, 191/2 miles ; Peoples' Telegraph and Telephone Company, 7 miles. There were several other telephone properties which did not make report, but were assessed by the state board, among which were the following: Aberdeen Company; J. L. W. Zietlow, a private line; Iowa Union Company; Parker Telephone Exchange, and Springfield & Santee Agency Telephone Company.

In 1899 the following telephone companies were assessed in this state: Hutchinson County, Springfield and Santee Agency, Miller, Clark, Redfield, Dell Rapids, Parker, Watertown, Aberdeen, Pierre, Iowa & Dakota, Dakota Central, Central Dakota, Harrison, Black Hills, Interstate, Eureka & Mound City, Chamberlain, Webster & Pallman, Canton, Carthage, Johnston, L. & G. Co., Howard, Armour, Edgerton & E. D. Southern Minnesota, Southern Dakota, N. W. Telephone Exchange, Eureka, Peoples', Madison, Western Electric and Flandreau. The highest assessments were $37,716 against the Northwestern Telephone Exchange; $19,900 against Dakota Central; $11,596 against the Black Hills ; $8,020 against the Central Dakota ; $7,456 against the Harrison, and smaller amounts for the others ; one-Springfield and Santee Agency-as low as $60.

The construction of telephone lines in South Dakota from 1898 to 1903 was one of the marvels of this era of great development. The greater part of the increase was in rural lines, showing that the farmers had found them of the greatest value. The lines placed them in communication with their neighbors, the markets and saved great loss of time, which is one of the principal assets of rural communities. During 1902 forty-seven different companies reported

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

to the state auditor, showing a total of 3,170 miles of line and 6,744 miles of wire. In 1905 seventy-three companies reported, showing 4,670 miles of line and 9,245 miles of wire. The total valuation of telephone property from 1902 to 1903 inclusive increased from $244,830 to $337,345. Many new companies were projected at the same time, and the outlook was that every portion of the state, if not every farmer, would very soon be in communication with them- selves and with the outside world.

In September, 1904, the old Dakota Central Telephone Company held its annual meeting in Aberdeen. The company was reorganized under the old name. There were in all about two hundred stockholders. J. L. W. Zietlow was presi- dent ; C. N. Herreid, vice president ; W. G. Beckelhaupt, secretary and treasurer. The capital was $5,000,000. The new company embraced and operated the Cen- tral Dakota, the Western Dakota, the Southern Dakota, the Southern Minnesota and the Iowa, Minnesota and Dakota lines. There were about ten thousand miles of the circuit which now extended over the entire state east of the Missouri River, except over a small portion in the vicinity of Sioux Falls, where the Bell Company owned a short line. The newly organized company also secured management of the telephones in Southern North Dakota and parts of Western Minnesota. The reorganized company began operations October Ist.

By January, 1905, the telephone systems of the state had increased amazingly, so that nearly every neighborhood both in the city and country were accommo- dated. In 1900 there were 35 companies operating in the state with 2,908 miles of line. Late in 1904 there were 188 companies with 9,782 miles of line. The increase for the years were as follows: 1900, 35; 1901, 37; 1902, 47; 1903, 73; 1904, 106; late in 1904, 188.

In the spring of 1905 two telephone companies, one in McCook County and the other in Clark, took out articles of incorporation and began business. One was the Farmers' Mutual Telephone Company, with headquarters at Canistota and a capital of $1,000, and the other was the Clark County Mutual Telephone Company at Clark with a capital of $15,000. At this time President Zietlow of the Dakota Central Telephone Company announced that a number of extensions of his line in the southern part of the state would be at once constructed. He further stated that a copper metallic circuit from Chamberlain to Mitchell would be put into operation. There was a sharp telephone war for a time between the local exchange at Pierre and the Dakota Central Telephone Company. The war was finally ended by the purchase of the Pierre exchange by the long distance company. This purchase enabled the Dakota Central to secure better local service and give it a base for western extension, the two systems being recon- nected.

In the summer of 1905 the State Independent Telephone Company was incorporated at Pierre, among the incorporators being George W. Burnside, Coe I. Crawford, G. S. Hutchinson and Andrew E. Lee. This movement was really a consolidation of several small independent systems which had been for some time operating in the central part of the state. The new organization at once extended its lines.

In October, 1905, the same company was incorporated at Sioux Falls by the following men: R. F. Pettigrew, Geo. W. Burnside, Coe I. Crawford, G. S. Hutchinson and Andrew E. Lee. This company was backed by great wealth;

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one of its objects, at least, was to consolidate many of the smaller systems of the state into a single large company.

By July 1, 1906, telephone companies had multiplied so rapidly within a few years that in the whole state they numbered 202, with 10,372 miles of line and 20,723 miles of wire. At this time they were assessed at $780,293. Among the larger companies were the Dakota Central, assessed at $260,410; The Citizens' Telephone Company, at Sioux Falls, assessed at $21,462; Northwestern Tele- phone Exchange Company, $114,289; Nebraska Telephone Company, $27,812; Grant County Telephone Company, $13,241; Brookings Telephone Exchange Company, $10,000; Redfield Telephone Company, $9,674; "all the others were for less amounts. The lowest assessment was against the Civil Bend Telephone Company, $210.

In 1906 the Western Union Telegraph Company was assessed at $240,000 and the Postal Telegraph and Cable Company at $2,800. The express companies were assessed as follows: Great Northern, $12,090; Adams, $10,396; American, $51,700; United States, $64,312; Western, $800.

By the summer of 1906 the Pullman Palace Car Company ran cars over sixty-three miles of railroads in this state and the Wagner Palace Car Company over 263 miles of railroad in this state. The American Express Company had in the state 108 offices; the United States Express Company, 106 offices; the Great Northern Express Company, 22 offices ; and the Adams Express Company, 14 offices. The telegraph companies were the Western Union, with 2,483 miles of line, and the Missouri Mercantile Company, with three miles of line.

The railway commissioners in 1912 duly considered the problem of requiring a uniform system of bookkeeping for all telephone companies in the state, but postponed action to await the completion of a similar system about to be estab- lished by the Interstate Commerce Commission, in order that the system adopted by the state should not conflict with that of the national commission. Already a list of the telephone companies of the state, with all statistics concerning them, had been prepared by the railroad commissioners. Other important questions affecting telephones were considered at this time by the board.

In December, 1913, the State Tax Commission completed its work of assess- ing the telephone companies and found that there had been an enormous increase in the number of such organizations. There were scores of small companies and three very large companies, the latter being Dakota Central, Nebraska Bell and Northwestern, which were increased from $500,000 valuation in 1912 to over two million dollars in 1913. The assessment of the three were as follows :

Company

1913

1912

Dakota Central

$1,352,668

$359,045

Nebraska Bell

389,432

88,094

Northwestern

331,438

104,553

The great comparative increase in the Nebraska Bell system was due to its wonderful expansion over the vast field west of the Missouri River and south of the Cheyenne River.

During the legislative session of 1915 a bill concerning telephones was intro- duced. The proposed law provided that the investor and promoter before engag- ing in the telephone business in any part of the state, should make a showing

DEADWOOD AUDITORIUM, WHITE ROCKS IN THE DISTANCE

GOVERNMENT BUILDING TO THE RIGHT, COUNTY COURTHOUSE TO THE LEFT, DEADWOOD

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

before the Board of Railroad Commissioners that there was an actual public demand and that an actual public necessity existed for the erection and estab- lishment of such telephone system. This was necessary, it was provided, before a party or a company could erect, build or construct a telephone line from farms to business houses in the city or to connect neighborhoods by telephone. This bill met no consideration at the hands of the Legislature.

In 1915 the railway commission was required to restrict the rights of a telephone exchange to supply service to residents outside of the border of the town in which they were located. A complaint came against the Beresford Tele- phone Company from a farmer who lived outside of that town in 1914. He agreed with the Beresford Company to connect a line from his house to the nearest line of the company, where he was to be given connection with the city exchange. This continued until 1915, when the company cut out the country phone and connected it with the rural line. The farmer referred the matter to the state commission.

Little attention was paid to good roads in the early history of the state. Various measures concerning their improvement passed the Legislature from time to time, but the real good roads movement proper did not appear until automobiles were brought into use, both by city residents and ruralists. In the end the automobile is certain to bring good roads to all parts of the country. By about 1900 the necessity of good roads began to be realized when bicycles were all the rage and when bicycle parties or excursions made long trips to the country districts.

In May, 1908, the City of Mitchell passed an ordinance granting to F. B. Elce the right to use the streets, alleys, etc., for a telegraph line upon condition that he should pay the city each year 10 per cent of the annual gross receipts in excess of $2,400 derived from the system. Mr. Elce built the line, operated it until June 3, 1904, when he sold out to the Dakota Central Telephone Lines, and on October 2, 1904, the latter sold out to the Dakota Central Telephone Com- pany. After 1902 the gross receipts exceeded $2,400 and Mr. Elce paid the 10 per cent as agreed; so did the Dakota Central Lines in 1905 and 1906, but the Dakota Central Telephone Company refused to do so in 1907 and 1908, where- upon suit was brought by the city to recover the amounts due.

In June, 1904, the city gave the Lines Company for twenty years the right to erect poles and wires for a long distance system, and in April, 1907, gave the telephone company the right to go under the streets with its lines, but this was not done. In the suit Lauritz Miller and A. E. Hitchcock appeared for the city and Null & Royhl and Spangler & Haney for the company. The issue was whether the city had power to require the grantee to pay the city a percentage of the annual gross receipts derived from the local telephone system as a condi- tion upon the city's consent to the use of the streets, alleys and public grounds for such a telephone system. The telephone company denied this right, denied that it had paid the sums volnutarily in 1905 and 1906, and insisted that the right to erect the long distance system superseded the ordinance under which the city had filed its complaint.

In March, 1897, and again in March, 1907, the Legislature passed laws tax- ing telephone companies. The company now maintained that this tax was to be in lieu of all other taxes and that therefore the tax levied by the city-the 10 Vol. III-21

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SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

per cent on the gross receipts over $2,400 -- was unlawful. It said "that the City of Mitchell is without power or authority to levy, demand or receive from this defendant any tax whatever, whether the same be by levy and assessment on its property situated in said city, or by way of a percentum on its gross earnings arising from its operations in said city." The company said that in spite of this fact the city had demanded in 1905 the Io per cent franchise tax in addition to the tax levied by the state and that the same was paid under threats. The same occurred in 1906. In 1905, 1906, 1907 and 1908 the company had fur- nished the city at its request telephone service worth $159 each year for which it now asked payment.

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History of Dakota Territory, volume III, Part 45

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