'.r.lW.n l.H '■' 510] (JornFll Ham irlynnl library come* U"W..»'« ': WAY \i^ , y 1837 , , Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924024689725 Railroad Legislation in Minnesota, 1849 to 1875. A Thesis submitted to the Faculty of the Graduate School of the University of Pennsylvania iJf Par- tial Ful:FILLMENT of the BBany.^*° This corporation had been created the previous year by an act amendatory to the, charter of a company of the same name granted by the territorial legislature in 1857.^" In all, about twelve million acres,^*^ or very nearly one-fourth of the total land area of Minnesota, was given by the federal government to aid the construction of her railroads. Railroad Co. Date of Grant. Amount. 1st Div., St. Paul and Pac, Mch. 3, 1857, and Mch. 3, 1865. .1,248,450 acres Minn. Western, Mch. 3, 1857, and Mch. 3, 1865 815,000 " Minn. Central, Mch. 3, 1857, and Mch. 3, 1865 180,000 " Winona and St. Peter, Mch. 3, 1857, and Mch. 3, 1865 1,670,000 " St. Paul and Sioux City, Mch. 3, 1857, and May 12, 1865. .1,205,000 " Lake Superior and Miss., May 5, 1863 862,000 " Southern Minn., July 5, 1866 500,000 " Hastings and Dakota, July 5, 1866 350,000 " St. Vincent (St. P. and Pac), Mch. 3, 1871 1,500,000 " Northern Pacific (in Minn.), July 2, 1864 3,392,000 " Besides these congressional land grants, there were also land grants made from the state swamp lands held under acts of Congress passed in 1851 and 1860.^*^ As we ha^-e already seen, the Lake Superior and Mississippi in 1861 received a grant of the swamp lands within seven miles of each side of its railroad.^** In 1863 the St. Paul and Pacific received from the state a grant of all the swamp lands lying within the limits of seven miles on each side of a proposed branch road from St. Paul to Winona in aid of this branch.^*' In 1865 certain swamp 236. . 13 U. S. Stat., 526, act approved March 3, 1865. 237. 14. U. S. Stat., 87, act approved July 4, 1866. 238. 14 U. S. Stat., 87, act approved July 4, 1866. 239. Special Laws, 1867, ch. 6. 240. Ibid., oh. 12. 241. Session Laws, 1857, ch. 39. 242. Donaldson, The Public Domain, Its History and Statistics. 243. Acts approved Sept. ^8, 1851, and March 12, 1860. 244. Special Laws, 1861, ch. 1. 245. Special Laws, 1863, ch. 4. RAILROAD LEGISLATION IN MINNESOTA. 59 lands were set apart and granted to tlie Southern Minnesota and the Minneapolis and St. Cloud railroad companies, to ac- crue at the rate of four sections of land for each mile of cer- tain parts of their railroads completed within specified time limits. ^*° In 1864 a new group of incorporators had been given the charter of the old Minneapolis and St. Cloud railroad com- pany incorporated in 1856.-*^ Fortunately the new corpora- tion did not organize within six months as required, for the old company had organized and kept up its corporate existence and was not willing to see its valuable franchises turned over to others.^*^ The legislature, therefore, repealed the sections of the act of the previous year which conflicted with the rights of the old corporation. The national and state governments were not the only sources of beneficent aid; the local governments were, accord- ing to ability, even more liberal. In 1864 St. Paul was author- ized to provide for the purchase of depot grounds and right of way for the use of the Minnesota Central,^"" and the action of its city council in voting the issue of bonds to the amount of $250,000 was legalized and confirmed by the state legisla- ture.^"" According to the general statutes of 1866 it was un- lawful for the corporate officials of any county, township, city, town or village, unless specially and expressly authorized by law, to incur any liability for the payment of either the prin- cipal or interest for which it would be necessary to levy more than a fixed maximum rate during the current year or any subsequent year. The officials were made personally liable for all contracts made in contravention of these provisions.-''''^ This practically meant that municipal aid to railroads could only be given by special legislative consent ; but, judging from the increasing number of enactments from 1 866 and on, which au- thorized such aid by counties, to-mis, cities and villages throughout the state, such consent must have been readily obtained. 246. Ibid., 1865, chs. 1 and 3. 247. Ibid., 1864, ch. 5, amending Session Laws, 1856, ch. 160. 248. Ibid., 1865, ch. 4, sec. 1, summarizes the facts of the case. 249. Special Laws, 1864, ch. 37. 250. Ibid., ch. 49. 251. General statutes, 1866, ch. 11, sees. 78-80. 60 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. When a municipal bond issue was authorized, the legisla- ture, as a rule, limited the amount which might be issued and fixed a maximum rate of interest and also a certain time within which the bonds were to be made payable. In each case the question of bond issue was to be referred to the voters of the territorial unit concerned, and the bonds were not to be deliv- ered until the railroad eompanj^ had fulfilled its part of the agreement. Taxation to meet the obligations of the bonds was generally expressly authorized, and the levy and collection of taxes for this purpose were made the duty of the local officials. Beginning in 1869, the legislature frequently fixed the maximum total indebtedness which might be incurred for the purpose of aiding railroads as a fixed per cent of the assessed valuation of the taxable property, generally ten per cent. In November, 1872, this per cent was fixed as the maximum for all counties, towns, cities and villages within the state, by the adoption of an amendment to the state constitution.^^^ An act of 1871 provided for the registration of all municipal bonds at the office of the state auditor. The auditor was required to ascertain annually the amount of interest due and accrued on such bonds in each county, and to transmit statements of the amount due to each county auditor. The county auditor in turn was required to levy sufficient taxes in each of the local units to pay the interest on its bonds. These taxes were to be collected along with the state taxes and according to the same laws.^^^ The different localities had been willing, and many others were still willing, to vote almost any bonus demanded by the railroad companies; but experience had already shown that when the burden began to be felt, and when the railroads failed to fulfill all their expectations, they were not all willing to meet their obligations. A centralized administration of these taxes became necessary to insure their levy and prompt collection and disbursement. 252. General Laws, 1872, oh. 13, ratified at the November election. 253. General Laws, 1871, oh. 17. RAILROAD LEGISLATION IN MINNESOTA. 61 CHAPTER VII. ATTEMPTS AT RAILROAD CONTROL, 1861-1870. Special railroad legislation occupied the attention of the state legislature a great deal of the time during the sixties. It is evident that the idea of legislating railroads into existence had not yet been abandoned. Land grants were invariably given to companies not under the general railroad law, and as long as the legislature had federal and state lands at its dis- posal; and later, when the time limits set for the completion of the railroads were about to expire, it tried in each instance to drive the best bargain possible through special legislation. At first the main consideration was the early completion of the roads, but soon various kinds of control and regulation became common stipulations. The railroad companies looked upon their charters as contracts which the state could not materially alter without their consent. They would accept or disregard the legislative enactments at their pleasure. If a company could not get what it wanted from one legislature, it would wait and try to get it from the next. In the meantime the demand for its railroad would be constantly increasing, and a popular clamor would support its demands. In the year 1862 the St. Paul and Pacific built ten miles of railroad and trains began to run between St. Paul and St. Anthony. By the end of 1865, notwithstanding the Civil War, which had just been concluded, and the Sioux Indian mas- sacres of 1862, which had cast gloom and discouragement over the state, there were two hundred and ten miles of railroad in Minnesota, of which over half had been bixilt in that one year. In the four following years one hundred and five, one hundred and fourteen, one hundred and thirty-one, and two hundred and ten miles, respectively, were built. The year 1870 added three hundred and twenty-two and a half miles, making a total mileage of one thousand ninety-two and a half, with gross re- ceipts amounting to nearly three million dollars in that year.^^* In spite of the impatient struggle for railroads in evidence in all parts of the state before railroads were built, we find 254. Report of Railroad Commissioner, 1871, p. 42, and table insert- ed opposite p. 40. 62 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. that no sooner had they been built than an equally impatient struggle with the railroads began. The railroads were charged with discrimination and extortion, and the power of the state control became a subject for heated discussion. Throughout the confusing mass of special legislation intended mainly to facilitate railroad construction, we find, strangely enough, a marked tendency toward state control. The old territorial charters had, as a rule, authorized the railroad companies to fix their own rates ; and, as we have seen, a number of these charters were from time to time revived and continued. As long as the different railroads remained inde- pendent, it was often difficult to get them to make proper con- nections; and, connections having been made, each would through its rate-making powers try to get the lion's share of the profit on the joint traffic. It was not long before some sort of government regulation was found to be necessary. In the years 1862-65 the legislature in amending the territorial char- ters frequently inserted the provision that the railroads were to transport all passengers and freight delivered to them by any connecting line on the same terms and at no higher rate for the same service than was at the time charged patrons liv- ing on their own lines, and the connecting lines were to be governed by the same rule.^^' From 1866 to 1870 a number of the special railroad laws contained the provision that the railroad company should be bound to carry freight and passengers at reasonable rates. Two companies were authorized to build branch roads condi- tional on compliance with this provision.^^' Four enactments authorized the construction of branches with this provision applicable to the branches.^'' In two of the revived charters this provision was incorporated as an amendment.^^^ One com- pany was authorized to withdraw a $20,000 guarantee deposit, provided it submitted to this exaction.-^^ The evident object of this provision was to make the railroads possessing special 255. Special Laws, 1862, chs. 17, 19, 20; 1863, chs. 1 and 2; 1864, ch. I, chs. 1 and 2; 1865, oh. 2. 256. Ibid., 1866, chs. 4 and p. 257. Ibid., 1867, ch. 18; 1868, ch. 9; 1890, chs. 59 and 60. 258. Ibid., 1867, oh. 11; 1870, oh. 57. 259. Ibid., 1866, ch. 6. RAILROAD LEGISLATION IN MINNESOTA. 63 rate-making powers subject to the common law rule that com- mon carriers may only charge uniform and reasonable rates. If railroads were placed on the same footing as other common carriers, the question of reasonableness would, in the absence of legislative enactment, be determined in court. The right of the legislature to fix rates for turnpike, canal, and plank- road companies, had been generally accepted, and maximum rates were frequently fixed in the charters. Until the Dart- mouth College decision,^"" the state legislatures could estab- lish or change rates for common carriers at any time. After this decision they would have the same right unless "con- tracted away" in the chartcjrs. As a result of this series of enactments, the principal lines of the state were legally bound to carry passengers and freight at reasonable rates. Later the legislature tried to determine what the maximum of reason- able rates was. In 1866 the legislature authorized the construction of two branch roads, expressly reserving in each ease the right to regulate the price of freight and fare on the proposed branch.^"^ A similar reservation was made in an act authorizing an Iowa company to build a railroad connecting its line in Iowa with the Minnesota Central at Austin, Minnesota. ^°^ In 1867 the congressional land grant of the previous year was given to the Southern Minnesota, "provided, that the legislature shall have the right to fix and regulate from time to time the rates of freight and passenger tariffs on said railway, or on any branch or division thereof. " ^°' A discussion arose in this legislature as to whether it had the constitutional power to fix and reg- ulate freight and passenger rates, and particularly whether the exercise of such power would be in conflict with the judicial power. These questions were referred to the attorney general, who gave as his opinion that "as the courts must decide from the evidence in each case as it arises, whether such rates are equal and reasonable, therefore, legislative enactment to fix or establish such rates specifically would, unless accepted by the 260. 4 Wheaton, 518, February Term, 1819. 261. Ibid., 1866, ohs. 7 and 11. 262. Ibid., 1866, oh. 8. 263. Ibid., 1867, oh. 6. 64 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. company, be in derogation of the judicial powers, and of no binding force or validity. ' ' ="* As a result of this opinion, no more Ieavs asserting the right of the legislature to make any such regulation were passed for several years. The offending provision in the Southern Minnesota enactment ^°' was imme- diately repealed, and the company announced in a prospectus issued some time later that the state had "disclaimed all right to interfere by legislation with the rates of freight and pas- sage over the road, no such right having been reserved by the charter. "2'"' The general incorporation law of 1858 had fixed a maximum rate of three cents per passenger mile, and five cents per ton mile, for companies organized under this act. In the general statutes of 1866 this provision remained unchanged. The leg- islature had not succeeded in fixing maximum rates for the companies not under the general law, and the question came up for discussion why unaided railroads under the general law should not be allowed to charge as much for their services as the companies who had been heavily subsidized with land grants.^"' A bill was introduced in the legislature of 1869, the object of which was to bring all the railroads of the state un- der the same general law respecting rates. ^'^ This bill was defeated, and another bill passed, which authorized any rail- road company organized under the general law to charge such reasonable rate for freight and passengers as might be fixed by the corporation or prescribed by law.^°^ The territorial charters had in most cases provided differ- ent penalties for damaging or obstructing trains, or endan- gering the lives of passengers, on the different railroads. This lack of uniformity was remedied by a general law enacted in 1868, which was made applicable to all the railroads of the state.^^" The legislature did not find it necessary in this case 264. Opinions of the Attorney General (1858-1884), pp. 237-8, Feb. 20, 1867. 265. Special Laws, 1867, oh. 7. 266. Prospectus of Southern Minn. Railroad Company, 1869, p. 10. 267. St. Paul Daily Press, Feb. 18, 1869, p. 1, c. 2. 268. Ibid., Feb. 14, 1869. 269. General Laws, 1869, ch. 78, sec. 2. 270. General Laws, 1868, ch. 57. RAILROAD LEGISLATION IN MINNESOTA. 65 to make an amendment to each of the several territorial char- ters in force at the time. From the first the gross income tax was invariably asso- ciated with federal land grants. This idea seems to have orig- inated in Illinois, in connection with the Illinois Central, the pioneer land grant railroad company.^" In 1854 Wisconsin made a gross income tax of one per cent, in lieu of all other taxes, applicable to all her railroads. ^^^ The constitution of the state of Minnesota provided that ' ' all taxes to be raised in this state shall be as nearly equal as may be, and all property on which taxes are to be levied shall have a cash valuation and be equalized and uniform throughout the state." ^" When state lands were given, no mention was made of the gross in- come tax; for instance, when the Lake Superior and Mississippi was given state swamp lands in 1861.^'* But when the same company four years later was given a federal land grant, a gross income tax was imposed on the company in lieu of all other taxes, state and local.-" In the former case a gross in- come tax would have been clearly unconstitutional, but in the latter the state, as a trustee of the federal government, could dispose of the lands under such conditions as it might see fit to impose, being responsible only to Congress for the manner in which the trust was executed. This form of taxation was believed to be less burdensome and vexatious to the railroads, especially in their infancy, and ultimately more advantageous and productive to the state. ^'^'^ Three per cent was at first the usual rate required; but, as an added inducement to an early construction of the projected lines, the burden was temporarily made lighter. By special enactments in each case, every company having claims to fed- eral land grants was, by 1865, required to pay only one per cent of its gross receipts annually for the first three years after the first thirty miles of railroad had been completed, two per cent for the next seven years, and after ten years the full three 271. Private Laws of 111., 1851, p. 61. 272. General Laws of Wis., 1854, ch. 74. 273. Art. p., sec. 1. 274. Special Laws, 1861, ch. 1. 275. Ibid., 1866, oh. 2; Land grant of May S, 1864. 276. St. Paul vs. Ry. Co., 23 Minn., 469. n bb MINNESOTA HISTORICAL SOCIETY COLLECTIONS. per cent. Later land grants contained similar provisions. In 1870 the nine railroad companies paying gross income taxes paid according to this plan.^^' The companies favored this form of taxation, for it relieved them of all local taxation. They seem to have regarded the temporary reduction as a very substantial aid.^^' The people as a rule were satisfied with this method of taxing the rail- roads, for, while the companies were exempt from local tax- ation, the state as a whole would be benefited by this substan- tial source of income to the state treasury. In connection with the collection of the gross income tax came a certain amount of supervision of accounts. This was expressly provided for in the enactments. The governor, or aUy other person legally appointed, was given authority to inspect the books and papers of the railroad companies and to examine their officers, agents and servants under oath, to as- certain the truth of their reports. According to the original enactments the land grants held by the railroads were exempt from taxation until sold and conveyed. Interpreting this provision liberally, the railroad companies rented out land on long time leases and delayed in formally conveying much land actually sold, thus withholding such land from the operation of the tax laws. Since the rail- roads were not subject to general law, the legislature tried to remedy the evil by passing a series of special enactments, pro- viding that land was to be sold, conveyed, or leased; but, in case of delinquent taxes on such land, the title or interest of the railroad company or of any trustee or mortgagee was not to be impaired, only the improvements and interests of the pur- chaser or lessee being liable to forced sale."^ It was optional with the companies in each case, however, to accept these en- actments or not, as they chose. The revived charters of the Hastings, Minnesota and Red River of the North and of the Minnesota Central also contain these provisions.^*" The right of the state legislature to exempt the lands from taxation, con- ditioned on the payment of a percentage of the annual gross 277. Report of the Railroad Commission, 1871, table opposite p. 40. 278. Prospectus of Southern Minn. Ry. Co., 1865, p. 9; 1869, p. 14. 279. General Laws, 1865, oh. 15; Special Laws, 1865, chs. 5, 7, 8, 9, 10. 280. Special Laws. 1866, ch. 12, sec. 19; 1867, ch. 11, sec. 19. RAILROAD LEGISLATION IN MINNESOTA. 67 earnings of the companies, was not seriously questioned for over thirty years. The gross income tax itself was clearly rec- ognized in a constitutional amendment ratified in 1871.^*^ When in 1895 the state legislature tried to subject to taxation the land grants still held by the railroads, this act, though up- held by the state supreme court, was declared unconstitutional by the federal supreme court because it impaired the obliga- tion of contracts made by the state with the railroad compa- nies.^*^ The state supreme court had up to this time (1898) consistently upheld the gross income tax and the exemption from other forms of taxation of railroad franchises and prop- erty, including the land grants received from the federal gov- ernment.^*'' In 1871 the railroad commissioner estimated the total land grants to railroads in Minnesota at 12,222,780 acres, "an area larger than the whole of Massachusetts, Khode Island, Con- necticut, and one-half of New Hampshire, embracing much of the finest wheat land in America. ' ' ^'* Up to the close of the year 1870 municipal aid to these railroads had been voted to the sum of $1,751,000, of which $388,000 had been received.'*^ In his discussion of the aid given the first division of the St. Paul and Pacific, the commissioner concludes: "It appears then that the public has granted for its construction $43,452 per mile for the length of the road."^'" Other railroad com- panies had received, in lands and municipal aid, from $8,400 to $29,000 per mile, according to his estimation.-*^ Six years be- fore the Southern Minnesota railroad company, to which the state had given about half of the property and interests of one of the original land grant companies, estimated the value of its shg,re of the roadway, grading and bridging of its defaulted predecessor at over $200,000. It valued fifty thousand acres of 281. General Laws, 1871, ch. 18. 282. Stearns vs. Minn., 179 U. S., 223; reversing 72 Minn., 200 (1898). 283. Ry. Co. vs. Parcher, 14 Minn., 297; Minn. vs. Ry. Co., 21 Minn., 315 and 472; Ry. Co. vs. St. Paul, 21 Minn., 526; Ramsey County vs. Ry. Co., 33 Minn., 537; Todd County vs. Ry. Co., 38 Minn., 163; St. Paul vs. Ry. Co., 39 Minn., 112; State vs. Luther, 56 Minn., 156. 284. Report of the Railroad Commissioner, 1871, p. 12. 285. Ibid., p. 50, table 10. 286. Ibid., p. 13. 287. Ibid., p. 12, ft. 68 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. its federal land grant at about $300,000, and its one hundred and fifty thousand acres of state swamp lands at $375,000, with prospects of immediate increase and both grants exempt from taxation till sold by the company.-"* These figures are not much below those of the railroad commissioner. The people had not forgotten these grants and they naturally looked for corresponding benefits. The state had heavily subsidized these railroads, and as a result 99314 miles, out of a total mileage of 1,092%, were oper- ated by land grant companies, although thirty-nine other com- panies had been incorporated under the general incorporation law during the j^ears 1858 to 1870.^*" We find, then, that over ninety per cent of the mileage was governed by special law and subject to an extra-constitutional system of taxation. Ac- cording to the Dartmouth College decision, these companies were virtually beyond the control of the state whose legisla- ' ture had originally created them. The main railroad problem had at first been how to get rail- roads constructed. When the railroads actually began oper- ation, new problems arose which proved fully as difficult. Railroads were being built in advance of the business needs of the country, and competition for larger shares of the meager business soon led to discrimination. The companies tried at non-competitive points to make up for their low rates at com- petitive points. Farmers at some places had to haul their wheat fifteen or twenty miles beyond their nearest market, to get the benefit of more favorable rates. Between certain points freight charges were so high that farm pK)ducts and merchandise could be hauled more cheaply by team.^^" The success of individual shippers, as well as the prosperity of entire communities, depended largely on the good will of the railroad companies. ^^"^ In order to secure elevators and proper facilities for handling grain along their lines, some railroads had guaranteed to certain grain-dealers special reducecj rates and rebates. This resulted in a virtual monopoly of the local 288. Prospectus of- Southern Minnesota Railroad Company, 1865, p. 5. 289. Report of the Railroad Commissioner, 1871; see list in appen- dix, p. 93, ff. 290. Ibid., p. 17. 291. Stiokney, the Railway Problem, ch, 1. RAILROAD LEGISLATION IN MINNESOTA. 69 grain markets, and frequently led to gross abuses which the state had no power to remedy under the existing interpretation of the law. Other railroad companies had built their own ele- vators and bought the grain themselves. Competitors were generally denied access to the railroads, and those who se- cured access were unable to compete because of the higher rates charged them. When farmers decided to ship the grain themselves, they almost universally found it an unprofitable undertaking.^*"- Loud and frequent complaints of extortion, and of unjust and burdensome discrimination, were heard along the different lines right from the start. The farmers especially believed themselves to be at the mercy of the "cor- porations." The situation was all the more exasperating be- cause the railroads operating at the time had been so heavily subsidized by the state. In 1865 the directors of a land grant company had looked upon their enterprise as a "trust liberally bestowed upon them by the state to be carried out faithfully and honestly, but also for the development of the resources of the state, and as a part of its well-devised system of im- provements." ^^^ The public in general Avas not very well sat- isfied with the manner in which the companies had carried out their trusts. The state had given the railroad companies appropriation rights which could legally be exercised only for public pur- poses. These rights had been freely made use of. From this it was argued that the railroads were public highways, and that all had an equal right to their use.-^* The courts had held the railroads to be common carriers. As such they would, under the common law, be bound to serve the public at equal and reasonable rates without discrimination. This restriction had, according to the Dartmouth College decision, been con- tracted away in the case of the special charter companies. The vested rights of the companies were upheld by the courts, but now the people began to believe that they, too, had certain 292. Ibid,, ch. 3. 293. Prospectus of the Southern Minnesota Railroad Company, 1865, p. 12. 294. For instance, in a letter read at the Minn.. State Grange, June, 1870, and ordered printed for circulation. O. H. Kelley, Patrons of Husbandry, pp. 256-259. 70 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ' ' vested rights, ' ' and they meant to assert them. This struggle on the part of the people to maintain its common law right of control over railroads as common carriers has become known as the Granger Movement. CHAPTER VIII. THiJ GRANGERS. The Granger Movement derives its name from the Gran- gers, a term popularly applied to the Patrons of Husbandry, a secret agricultural order whose lodges are known as granges. The so-called granger or anti-railroad movement, which re- sulted in restrictive legislation, aiming to control railroad rates, in Illinois, Iowa, Minnesota, and "Wisconsin, was only a com- paratively local manifestation of a general farmers' move- ment, which had for some time been gaining momentum both in this country and in Europe. In the United States the Na- tional Order of the Patrons of Husbandry proved one of the most efBcient organizations for this general movement, which resulted in a very marked advance in the social, economic, and political position of the American farmer. The membership of the order had a phenomenal increase among the farmers of the country at the time when the farmers, especially in the middle west, were in the midst of their revolt against what they termed railroad oppression ; and the popular name of the members of the order immediately became associated with the anti-railroad agitation in a few states, rather than with the more general movement. The two decades preceding 1870 had been a period of or- ganization among the farmers. Societies for the promotion of agriculture had been organized in this country as early as 1785, and for many years a number of these societies did much good in encouraging this industry by holding fairs and award- ing prizes for the best cattle, sheep, farm produce, and farm implements, exhibited. They also awarded prizes for essays on agriculture, and distributed these essays and other agricul- tural literature among the farmers. The proceedings of their meetings were generally published in the local papers, and in RAILROAD LEGISLATION IN MINNESOTA. 71 this way some came to exert a wide influence. The members of these societies, however, were not the average farmers of the community, but were in the main "gentlemen, merchants, and landowners," who from philanthropic and patriotic motives wished to foster and develop the agriculture of the country. A large proportion of the farmers at the time looked upon their occupation as mean and servile, and comparatively few took any pride in their work. . A number of county and state agricultural societies-were formed in the first decade of the nineteenth century; but the main incentive to an active interest in such organizations came in the year 1837-8, when food products had to be imported to the amount of several million dollars. Congress in 1839 appro- priated $1,000 "for the collection of agricultural statistics and investigations for promoting agriculture and rural economy and the procurement of cuttings and seeds for gratuitous dis- tribution among the farmers." This appropriation was made at the suggestion of the commissioner of patents. After 1847 appropriations became regular and were constantly increased in amount, so as to be more commensurate with the end in view. The first United States Agricultural Report was made by the patent office in 1839. This office through its agricul- tural division did much for the advancement of agriculture, and demonstrated the need of a separate department of agri- culture. As early as 1841 an attempt was made to organize a na- tional agricultural society, but without success. In 1852 twelve state agricultural societies called a national convention, Avhich met at Washington, D. C, June 14, 1852. Twenty-three states and territories were represented, and the United States Agri- cultural Society was organized. This society met annually at Washington, D. C, and held successful agricultural exhibitions in different parts of the country every year until the outbreak of the Civil War. In an address published in the agricultural report of 1852, the number of agricultural societies in the United States was said to be three hundred.^^' Five years later the commission- 295. Agricultural Report, 1852, p. 22; Report of the Commissioner of Patents. 72 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. er of patents named twenty-one states in which state agricul- tural societies had been incorporated, and estimated the total number of agricultural societies at eight hundred.^"' The commissioner of patents, and later the commissioner of agri- culture, encouraged the formation of such societies in every part of the country, and advocated a more intimate union and a more decided co-operation on their part with the general government in the great work of agricultural improvement. The government was especially interested in efficient local or- ganizations which could furnish agricultural statistics. ^''^ In 1867 there were 1,367 agricultural societies recorded on the books of the department of agriculture. Most of the county societies had been organized between 1850 and 1860, while the greater number of the more numerous township societies and farmers' clubs had been started after I860.'''* In some states many more were organized between 1867 and 1870.^"^ The state, county, and township societies were in various ways encouraged and subsidized by the state and national gov- ernments. In most cases their main function seems to have been to hold annual fairs and exhibits, or to assist in such undertakings. These fairs were of great educational value to the farmers, and did much to encourage invention and im- proved agricultural methods. At first the work was unjustly criticized and ridiculed by those whom it was intended to ben- efit, but later the farmer came to see that he actually could learn something new about farming. But when the farmers themselves became interested, they were not content with an- nual meetings, fairs and exhibitions, and the voluminous lit- erature distributed among them, They proceeded to organize farmers' clubs, which met frequently for social intercourse and mutual aid in solving practical every-day problems. As early as 1846 the Monthly Journal of Agriculture published a set of 296. Ibid., 1857, p. 13. 297. Ibid., 1860, pp. 20-22; Report o( the Commissioner of Agricul- ture, 1863, p. 9. 298. Report of the Commissioner of Agriculture, 186T, pp. 364-403. List of agricultural societies, their officers, date of organiza- tion, etc. 299. List of agricultural and pomological societies, farmers' clubs, etc., on the books of the Department of Agriculture, July 1, 1870, 47 pp. RAILROAD LEGISLATION IN MINNESOTA. 73 rules for the organization and government of farmers' clabs, and urged the farmers to unite and look after their own wel- fare as the other classes were doing.'""' Agricultural papers frequently published such constitutions, and the call to unite became more urgent as time went on and the practicability of such organizations became more apparent. ]\Iost of the township organizations in the lists of agricultural societies pub- lished by the commissioner of agriculture in 1867 and in 1870 were farmers' clubs. This movement was general, and we find these clubs in all parts of the country. It was at this time that the order of Patrons of Husbandry appeared on the scene and gave this general movement an efficient centralized organi- zation. The idea of a national agricultural order originated with Mr. Oliver H. Kelley, a native of Boston, who moved to Min- nesota in 1849, settling on a farm near Itasca, Sherburne county. He spent the winter of 1864 in Washington, receiv- ing a clerkship in the department of agriculture by the friendly aid of Senator Ramsey of Minnesota. He returned to Minne- sota in the spring of 1865. On January ], 1866, he received a commission as special agent of the agricultural department to investigate the agricultural and mineral resources of the South. As a government official he did not expect a very friendly re- ception, but, being a freemason of good standing and a man of tact and pleasing address, he travelled through all the states east of the Mississippi without any unpleasant experiences, returning to Washington, April 21, 1866. The war had just closed, and the work of material recuperation had scarcely begun. Mr. Kelley became convinced that there was need of a fraternal organization of all the farmers in both North and South, to obliterate sectionalism and to elevate the farmers as a class to a position of dignity and power. Agricultural clubs were numerous, but they were neither permanent nor effective. He conceived the idea of a union of agricultural societies for practical co-operation in the promotion of their common inter- ests, a masonry of farmers. Mr. Kelley spent the summer of 1866 at work on his farm in Minnesota, but returned to Washington in November. 300. Monthly Journal of Agriculture (New York), vol. II, p. 241. 74 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. Early in January, 1867, he secured an appointment in the post office department. In the summer of 1867 he succeeded in in- teresting a small select group of men, most of whom were clerks in various departments.^"^ After much work and care- ful deliberation they completed a scheme of organization, and on December 4th they constituted themselves the National Grange of the Patrons of Husbandry. As modified the follow- ing January, the plan of organization was as follows : Subordinate Granges. 1st degree. Laborer (male) or Maid (female) ; 2nd degree, Cultivator or Shepherdess ; 3rd degree. Harvester or Gleaner; 4th degree, Husbandman or Matron. State Grange. 5th degree, Pomona (Hope). All masters and past masters of subordinate granges are entitled to this degree ex officio. National Grange. 6th degree, Flora (Charity). All masters and past mas- ters of state granges are ex officio entitled to this degree. Those of the sixth degree constitute the national council and meet annually. 7th degree, Ceres (Faith). All who have served one year in the national council are eligible and on attaining the degree become members of the senate. All acts and resolutions origi- nate in the council, but are subject to the approval or rejec- tion of the senate. The order was designed to include on equal terms all men and women interested in agriculture. The first officers were to serve five years, so as to secure the control of the order in the hands of the founders during its formative period. A cir- cular was published in February, setting forth the educational and social advantages offered by the new order which by the charm of secrecy would tend to insure permanence. Mr. Kelley 301. W. M. Ireland, chief clerk in Finance Office of Post Office Dept. ; Wm. Saunders, superintendent of the garden and grounds of the Agricultural Dept.; Rev. A. B. Grosh, clerk in the Agricultural Dept.; Rev. John Trimble, clerk in the Treas- ury Dept.; J. R. Thompson, clerk in the Treasury Dept.; F. M. McDowell, vineyardist at Wayne, N. Y. RAILROAD LEGISLATION IN MINNESOTA. 75 had advocated the insertion of a few words relative to co-oper- ation in protecting the members from imposition and fraud, for he was satisfied that such a feature would be necessary to make the order popular. Others, however, were of a different opin- ion, and it was not incorporated. Mr. Kelley resigned his clerkship in February, 1868, that he might devote his entire time to the promotion of the order. A trial grange was organized, and the ritual was practiced and perfected; and soon a regular subordinate grange, which was given the name Harvest Grange, was established in Washing- ton. Kelley now decided to leave for Minnesota to begin work among the farmers there. Before he left, the National Grange met (six in all) and authorized him to visit the different states to organize the order, and generously voted him an annual salary of two thousand dollars and necessary travelling ex- penses, "the same to be collected by him from receipts from subordinate granges." On April 3, 1868, Mr. Kelley left "Washington, determined to work his way to Minnesota by organizing granges. He had a remarkable faith in the project, and believed that the order could and should pay its own expenses. He attempted to or- ganize a grange in Harrisburg, Pennsylvania, but did not suc- ceed. At Penn Yan, N. Y., he met with cheering words from a brother Mason and Patron, Mr. McDowell, who had for some time been interested in the order, but he failed in his attempt to establish a grange. At Fredonia, N. Y., however, he met with success, and the first regularly organized grange of the order was there established. Mr. Kelley next had an agree- able visit with a friend of the order in Spencer, Ohio, Mr. Bart- lett, whom he instructed in the work of organization and au- thorized to introduce the order in that part of the state. In Chicago he found a club ready to be organized into a grange. This was encouraging at the time, but the grange did not ma- terialize. His next visit was to Madison, "Wisconsin, where he had hoped for much, but met with complete failure. He reached St. Paul, Minn., May 1. On the way from "Washington he had received dispensation or charter fees at Harrisburg, Fredonia, Columbus, and Chicago. He now received by mail an application for a dispensation from Newton, Iowa, enclos- 10 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ing the required fee of fifteen dollars. These receipts paid the expenses of his trip, but the prospects of the order were not the brightest. The farmers of Minnesota were at this time far more in- terested in protection against middlemen, corporations and monopolies, than in any plan for social or educational improve- ment. They had lost interest in the old agricultural societies and were ready for something new. The Farmers' Union, an agricultural monthly, which was started in Minneapolis in August, 1867, with a claimed circulation of ten thousand, im- mediately took up the farmers' cause. It recommended month- ly township fairs, where farmers could meet to buy and sell to each other directly, without the aid of middlemen.^"- It planned to protect the farmer against unscrupulous agents who practiced fraud and deception, and urged all who had been swindled to give information.^"'' The editor, Mr. Nimocks, was secretary of the Minnesota Farmers' Mutual Fire Insurance Association, and he made effective use of the columns of his paper in advertising the "Farmers' Association." He gives the following account of its origin: "On the 15th of July, 1865, a number of farmers of this state assembled at Minne- apolis and organized a club or association for the purpose of assisting one another when fires occur, or, in other words, do their own insuring and save a large amount of money and thus avoid being swindled by irresponsible insurance companies. . . . Each farmer insured is a member, and has a voice in its affairs and a vote in the election of officers. ' ' ^"* In November, 1867, the Farmers' Union began an active campaign for the organization of social farmers' clubs. It proposed to have in the field an able corps of associate editors and traveling correspondents, to assist in the establishment of such clubs in every neighborhood in the state for the bene- fit of farmers, their wives, and families.''""' This plan was car- ried out during the winter, and, judging from the letters from farmers' clubs in different parts of the state, the farmers must have taken considerable interest in the work. 302. The Farmers' Union, Aug., 1867 (Vol. I, No. 1). 303. Ibid., Sept., 1867. 304. Ibid., Aug., 1867. 305. Ibid., Nov., 1867; Jan., 1868. RAILROAD LEGISLATION IN MINNESOTA. 77 When Mr. Kelley, on his return from Washington in May, 1868, began to work for his order, the Farmers' Union pro- nounced his plan of organization the most perfect that had ever been introduced, and recommended it heartily to the farmers of the state. It continued, however, for some time to work for the establishment of farmers' clubs as before. One effective argument for organization was the co-operative feature, where- by farmers would be enabled to purchase machinery, nursery stock, groceries, and other necessities, without the expensive services of retailers and commission men, who frequently were guilty of charging exorbitant prices. The success of the Farm- ers ' Association in the field of insurance was pointed out as a proof of the practicability of co-operation, and the farmers were urged to apply this principle of co-operation in other fields. It is not to be understood that the Farmers' Union was the cause of this great agitation among the farmers of Minnesota at this time. It merely offered the farmers a formula accord- ing to which it was believed they would be enabled in a large measure to improve their condition. The times were hard and the discontent was general throughout the state. This discon- tent was due partly to local conditions and partly to general causes. A general movement toward improved farming and improved farmers had been in progress for several decades in this country and in Europe. AVhere any material advance was made, a period of social and political re-adjustment, with its struggle and its discontent, necessarily followed. The immediate causes for discontent, however, were more concrete. The farmers of the state blamed the railroads and the middlemen for the hard times, and later they added high taxes, high protective tariff, and bad currency, to their list of grievances. Retailers and agents, as a rule, fixed a large mar- gin of profit on goods sold. This practice was to some extent justified by the risk involved, for the farmers at that time seldom paid cash, and many of them were notoriously slow payers. Large profits on cash sales, and good accounts, made up for possible losses on doubtful accounts. But when the farmers realized that high prices were in a large measure due to these large profits, they felt swindled and their ire was 78 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. aroused. Many irresponsible men did swindle them outright, thus adding fuel to the flame. With the rapid extension of interstate railroad systems, th« question of railroad regulation and railrxjad control had al- ready in 1868 ceased to be merely a matter of local concern. In the second session of the fortieth Congress, the committee on roads and canals was instructed by the House to investi- gate whether Congress had the power, under the constitution, to provide by law for the regulation and control of railroads, especially those extending through the several states, so as to secure, first, the safety of the passengers ; second, uniform and equitable rates of fare; third, uniform and equitable charges for the transportation of freight ; fourth, proper connections with each other in the transportation of passengers and freight ; and if, in the opinion of the committee, Congress possessed such powers, it was to report a bill which would secure these objects.^"" The committee reported that in its judgment Con- gress had such power over railroads connecting two or more states, but that it had no constitutional power to -legislate in relation to railroads which do not form parts of continuous lines extending from one state to another. The committee did not report any bill, for they were not in possession of much necessary information.^"^ Two members of the committee sub- mitted a vigorous minority report.'"' The need of railroad regulation was general, but the situa- tion became most acute in the frontier states where imports and exports had to be transported great distances, and where discrimination seems to have been most flagrant. Communities and individuals discriminated against could justly complain of unreasonable charges-, and when the railroads insolently main- tained their vested. rights to fix charges to suit themselves the people did not find the "oppression" more tolerable. . Mr. Kelley immediately began his campaign for the new order. Believing thoroughly in publicity, he lost no time in enlisting the services of the press. The order was advertised as a national organization, making rapid progress in a number 306. Congressional Globe, 1867-8, part 3, p. 2331. 307. 40th Cong-., 2d Session, House of Representatives, Report No. 47, pp. 1-8. 308. Ibid,, pp. 8-20. RAILROAD IjBGISLATION IN MINNESOTA. 79 of states, and now being introduced in Minnesota as a protec- tive organization which would be of great benefit to its mem- ^,gj,g 309 rpjjg headquarters of the order were in Washington, D. C, and its nine officers were from seven different states and the District of Columbia. ^^'' The constitution of the order and its circulars were printed in the various newspapers of the state. In his monthly report to the National Grange, made August 1, 1868, Mr. Kelley says: "I can now report to you the friendly aid of five agricultural papers, whose columns are open to our cause, viz. : The Prairie Parmer, Chicago ; Farm- ers' Chronicle, Columbus, Ohio ; Ohio Farmer, Cleveland; Rural , "World, St. Louis; Farmers' Union, Minneapolis. Besides these the various daily and weekly papers in the state will publish any matter to advance our interests. ' ' ^^^ Mr. Kelley availed himself of every opportunity to bring the order before the farmers. He attended a meeting of the executive committee of the State Agricultural Society held in June, 1868, and seems to have received encouragement from its members.^^^ He attended a horticultural fair in Minne- apolis the first week in Jialy and met many farmers. In a re- port of this fair which he sent to the Sauk Rapids Sentinel, he expresses his pleasure because of the interest which the offi- cers of the state and county agricultural societies in Minnesota were taking in the new order. He optimistically estimated that according to present prospects at least fifty granges would be represented at the coming State Fair."' The editor of the Sauk Rapids Sentinel congratulated the Patrons upon the in- crease of their number since the first grange was organized in the state, and added: "They may well feel encouraged. The order is endorsed by the executive committee of our state agri- cultural society and by all the leading farmers who have be- come familiar with the order." '^* A month later he reported: "Granges of the Patrons of Husbandry are springing up in all 309. Sauk Rapids Sentinel, June 19, 1868. 310. Ibid., June 19, 1868. 311. Kelley, Origin and Progress of the Order of Patrons of Hus- bandry in tlie United States, p. 117. 312. Ibid., p. 110. 313. Sauk Rapids Sentinel, July 10, 1868. 314. Ibid., July 17, 1868. 80 MINNESOTA HISTORlCAl^ SOCIETY COLLECTIONS. parts of the state. The farmers are looking after their inter- ests, and every town should have a braneli of this order." ^^'' This was no doubt what ilr. Kelley wanted, but as a matter of fact the order was at the time meeting a rather cool recep- tion. The farmers were not ready to join a secret society whose objects and purposes they were not familiar with. The cir- cular did not give them sufficient definite information. They considered it too flowery and ambiguous. They had no need of a "mutual admiration society," but wanted an association that would aid and protect them.^'^ In a letter to the officers of the. National Grange, dated July 12, 1868, Mr. Kelley writes : "In the country the farmers ask, 'What pecuniary benefit are we to gain by supporting the organization?' Let the National Grange point it out, let it show that each Grange is of itself a Board of Trade, and by the system of communication between subordinate, state, and National granges they can market their produce independent of the Chambers of Commerce, Millers' and Wool Growers' As- sociations, which are gotten up to control the market Ask them this question, 'Why not, the producer establish the price of his products as well as the manufacturer?' Not to secure exorbitant demands, but to get a fair profit over the cost of raising the crops. No man can accumulate money who sells below cost. If you hit this point right, you will sweep the West. . . . JMark ray word, there is a revolution going on among the people, and if you strike the right chord in a new circular letter, you will soon see the Patrons will be a power, and yourselves at the head of it." ^^^ During the summer two abortive attempts had been made at establishing subordinate granges. The first active grange in Minnesota was the North Star Grange which was organized in St. Paul, September 2. Col. D. A. Robertson, the leader in this grange, immediately set to work and revised the circular of the order, with the hearty approval of Mr. Kelley. The new circular was issued over the signature of 0. H. Kelley, Secre- tary of the National Grange, and under the date, "National 315. Ibid., Aug. 21, 1868. 316. Kelley, op. oit, p. 110, 317. Ibid., pp. 113-114. RAILROAD LEGISLATION IN MINNESOTA. 81 Grange, AVashington, D. C, Sept., 1868." According to its statement, the objects of the order were to advance educa- tion, to elevate and dignify the occupation of the farmer, and to protect its members against the numerous combinations by which their interests are injuriously affected by means of com- bined co-operative association. The order was to provide sys- tematic arrangements for procuriiig and disseminating infor- mation relative to crops, demand and supply, prices, markets and transportation throughout the country, and for the estab- lishment of depots for the sale of products in the cities; also for the purchase and exchange of stock and seeds, for employ- ment bureaus, for ascertaining the merits of newly invented farm implements, and for detecting and exposing those that were unworthy, and for protecting, by all available means, the farming interests from fraud and deception of every kind.'^* On the new circular, embodying these with the former provi- sions, was based the real foundation of the order. ^^' But even though the order trimmed its sails to the agita- tion among the farmers, its progress continued far from sat- isfactory. By the close of 1868 only four granges in Minne- sota had paid their dispensation fees, and a fifth had been organized gratuitously. But Mr. Kelley continued the strug- gle, though at times ' ' almost against hope. ' ' '^° Beginning with the new year, prospects brightened. By February 20, six new granges had been added to the list, and on February 23, 1869, the Minnesota State Grange was duly organized,^^^ and continued its session two days. It was here suggested that the different subordinate granges should lease flouring mills in their respective localities and appoint a busi- ness agent at St. Paul, who was to receive the flour and ship it to New York, where it would be sold on commission.^^^ The executive committee accordingly appointed Mr. Prescott state agent. Mr. Kelley approved of this business feature, and be- gan to look around for men of means to support the enterprise. The National Grange held its first annual session in "Washing- sis. Ibid., pp. 125-130; Sauk Rapids Sentinel, Oct. 2, 1868. 319. Kelley, op. cit., p. 130. 320. Ibid., p. 151. 321. Ibid., p. 165. 322. Ibid., p. 168; Letter from O. H. K. to McDowell, March 1, 1869. 6 82 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ton, April 13. They here discarded the Minnesota state agency as premature. ^^^ Every subordinate grange in Minnesota, how- ever, approved of the plan, but held it to be a local matter which did not necessarily involye the order. Their immediate concern seems to have been to secure farm machinery at re- duced rates. Mr. Kelley was glad to see something started, for, if the farmers could be brought to fight the retail dealers through the order, the order would be advertised throughout the state and nation. If the agency proved g, success, the Na- tional Grange could adopt the plan. If it failed, all official connection with it could be disclaimed. ^^* At the meeting of the National Grange held in Washington, January 25, 1870, Mr. Kelley could report a total of forty-nine granges, forty of which were in Minnesota. Iowa had three granges; Illinois had three ; and Ohio, Pennsylvania, and New York, each one.'^' So far the Grange Patrons had been mainly interested in their fight with the middlemen. Many communities through- put the state were still without railroads, and were anxious to secure them at any cost. The agitation against railroad abuses had not yet taken any definite form. In Illinois the situation was different. The main railroad lines had already been built. Corn, their chief farm product, could not bear heavy trans- portation charges and discriminatory rates would be particu' larly oppressive. Hence it was not long before the farmers were engaged in a lively struggle with the railroads. The Prairie Farmer was instrumental in calling a convention of producers, to meet at Bloomington, Illinois, April 20, for the purpose "of devising means to combat the vast railroad mo- nopolies that threaten to overwhelm the country. ' ' ^-° Mr. Corbett, the editor of this paper, considered this the best op- portunity that had ever been oifered for the order of Patrons of Husbandry to make itself felt among the farmers, and there- fore wrote to Mr. Kelley, inviting him to attend the conven- tion and bring the order before them. He closed his letter with the following words: "You must be present fully pre- 323. Ibid., p. 180; Letter from O. H. K. to McDowell, April 17, 1869. 324. Ibid., pp. 186-7; Letter from O. H. K. to McDowell, May 4, 1869. 325. Ibid., p. 219; second Annual Report. 326. Ibid., p. 245; of. Periara, A History of the Origin, Aim and Progress of the Farmers' Movement, p. 225. RAILROAD LEGISLATION IN MINNESOTA. 83 pared to make a telling appeal for the cause through the or- ganization to which you have already devoted so much time and labor. You can do more for it here in a single day than in months in the usual manner. Please let me hear that you will be present. ' ' '^' Mr. Kelley does not seem to have been prepared to incor- porate anti-railroad agitation in the program of the order, and did not accept the invitation. The convention was attended by a large number of leading farmers from different parts of Illinois. Governor John M. Palmer sent a letter in which he expressed the hope that the convention would assert and pre- pare to maintain that there is no interest in this country that is or can be beyond the control of the law.''^^ A series of eight resolutions were drawn up in which it was declared: "First, that the present rates of taxation and transportation are un- reasonable and oppressive and ought to be reduced; second that our legal rights to transportation and market ought to be clearly set forth and defined. ' ' ^'^ On the thirteenth of May, 1870, a constitutional conven- tion adopted a new constitution for the state of Illinois which was subsequently ratified by the people. This constitution reflects the influence of the farmers of the state by devoting seven sections to railroads,'^" and another seven to ware- houses.^'^ Railroads were declared public highways, and it was made the duty of the general assembly, from time to time, to pass laws establishing reasonable maximum rates of charges for the transportation of passengers and freight on the dif- ferent railroads of the state, '^^ and to pass laws to correct abuses and prevent unjust discrimination and extortion in rates on the different railroads, and to enforce such laws bj' adequate penalties.^'*' These provisions led directly to the en- actment of the so-called Granger laws of 1871 and 1874. When the constitutional couA'^ention met in May, 1870, there were two subordinate granges in the state, and when the legislature 327. Kelley, op. cit., p. 245-6; W. W. Corbett to Kelley,. April 11, 1870. 328. Periam, op. cit., p. 228. 329. Ibid., p. 229. 330. Const, of 111., 1870, Art. II, sees. 9-15. 331. Ibia.,Art. 13. 332. Ibid., Art. II, sec. 12. 333. Kelley, op. cit., p. 269 and 271. 84 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. met in January, 1871, only one more had been organized. As an advertisement for the order, a temporary state grange was organized in Chicago in July, 1870;^-^* but it did not prove active and had to be reorganized in 1872, when granges began to get numerous. On May 20, 1870, Mr. Corbett wrote a letter to Mr. Kelley, in which he expressed his firm conviction that the order had a work to perform in the war that was about to be waged by the people against the monstrous monopolies. Said he : "Rail- road Companies, AVarehouse and Telegraph Companies, are crushing the life out of the producing classes. * * * » We know the claims of vested rights that Railroad Companies, in the West especially, lay claim to. A corporation on. the plea of publi& interests, gets the right of way," condemns prop- erty — our very homesteads, perhaps ; to do this they are public corporations, acting for the public good. The charter and right of way once gained, this public character ceases, and railroad companies are private institutions not amenable to Legislatures or Courts, because the legislature has given away its power to regulate them. They can extort, oppress, rob. They can dis- criminate in favor of certain localities and individuals; they can combine with owners of warehouses, or build warehouses of their own, and force shippers to pay toll on every bushel of grain that passes over their road ; they can and do refuse to deliver grain or other produce, except to such persons or companies as may pay into their own coffers. * « * * * We, as Patrons of Husbandry, have united for common good and for common protection. * * « * Wfg must not be political in the common acceptance of the term, only so far as to control politicians and office-holders, to make them talk, legislate, and decide on the side of the people all the time, * * * * whichever party will declare itself to stand on our platform, and whichever candidate will unqualifiedly pledge himself to carry oiit the reforms we demand, such party and such candidates should receive our votes. * * * • « Opposition to monopolies seems to me to be entirely consistent with the design of our Order; with it as one of the watch- words, I believe we have the opportunity of extending our 334. Kelley, op. cit., pp. 269 and 271. RAILROAD LEGISLATION IN MINNESOTA. 85 Granges indefinitely throughout all these North- Western States." '^^ This letter was read before the Minnesota state grange which met June 22, 1870, and it gave such general satisfaction that it was ordered printed for circulation.'""' Mr. Kelley had some misgivings as to the result of such a war, but looked upon the publication of the letter as another way of bringing the order more prominently before the public. ''''' Definite expres- sion was here given to the farmer for his grievances against the railroads. The agitation against railroads soon became as lively in Minnesota as in Illinois. When the Minnesota state grange met in June, 1870, there were sixty-six subordinate granges in the United States, of which fifty were in Minnesota. The order had been advertised as national, and Mr. Kelley was anxious to make it such in fact as well as in name. The other officers of the National Grange had disappointed him bj^ their inactivity. He decided to move to Washington and make that city his headquarters, believing that he could in this way exert a wider influence.^'* The services of a number of good men were enlisted in a number of states, and the order began to make a remarkable progress throughout the country. "Co-operation," and "down with the monopolies," were proving popular catchwords. The growth of the order for several years was unprecedented. The number of granges organized each year for 1868 to 1^74, in- clusive, was as follows -.^^^ Subordinate granges. Granges in Minn. (Total No.) 10 5 38 33 36 19 130 1,105 8,868 358 11,941 It was with these figures in mind that Mr. Aitkin, an old Granger, said in an address before a convention of agrieul- State granges. 1868 1869 1 1870 2 1871 2 1872 8 1873 22 1874 4 a35. Kelley, op. cit., pp. 256-259; W. W. Corbett to Kelley. 336. Ibid., p. 256. 337. Ibid., p. 259. 338. Ibid., passim. 339. Department of Agriculture, Special Report No. 2 (1883), p. 63. 00 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. turists held at the Department of Agriculture in January, 1883: "Prom the Potomac to the Rio Grande, from the Golden State to the Hudson, and even into the pineries of Maine, and across the border, throughout the length and breadth of the Dominion of Canada, farmers fairly leaped, as with one pre- concerted bound, to the upholding of the Grange standard." CHAPTER IX. THE CAMPAIGN FOR RAILROAD REGULATION IN 1870. The discontent among the farmers of Minnesota was con- stantly increasing during the later sixties: They were not enjoying the prosperity they had looked for, and as the hard times continued they became more and more convinced that they were being exploited. In general they attributed their sorry plight to three main factors : the exorbitant charges of the middlemen, the financial policy of the national government, and the increasing power of corporations and monopolies, es- pecially of the railroad companies. When the legislature convened in 1870, Governor Austin in his inaugural address ^*'' took occasion to examine the popular complaints against the management of the railroads within the state, and also to present as fairly as possible the rail- roads' side of the ease. Realizing that the charges made by either side against the other might be neither wholly true nor wholly false, he advised that a commission be created to make full inquiry into the alleged abuses and to present some plan remedying the difficulties, if abuses be found to exist. He did not question the constitutional right of the legislature to reg- ulate freight and passenger tariffs, nor doubt the necessity of so doing, but he desired regulation based on accurate knowl- edge gained by careful investigation. "If the people are wronged," he said, "it would be a short-sighted policy on the part of the companies to strive to perpetuate the wrong; for when the people can bear it no longer, they will arise in their might and find some means of redressing their grievances, and then there will be danger of injustice on the other side. If ' 340. Minn. Exec. Docs., 1869, Inaugural Address (25 pp.). Corpora- tions, pp. 6-14. RAILROAD LEGISLATION IN MINNESOTA. 87 the popular complaints are not well founded, a full impartial investigation will establish the fact, vindicate the corporations, and put the question forever at rest, — a result much to the advantage of all concerned. "^*^ The governor's recommendation met with general approval among the people. A bill embodying its main features was in- troduced in the Senate and passed, but when the bill reached the House it was permitted to die of neglect. ^^^ The question of railroad regulation had not figured promi- nently in the preceding campaign, but in the campaign of 1870 it sprang into prominence in different parts of the state. The farmers in particular were aroused. As we have seen, the order of Patrons of Husbandry was proposed to them as a means of self-protection against railroads and monopolies, but its growth at this time was slow. It was not yet strong enough to exert the influence its friends expected of it.^*^ The anti-railroad sentiment was especially marked in the first congressional district, where the Winona and St. Peter railroad was very unpopular at the time. In the Republican convention of this district, held in Owatonna July 6, emphatic protests were made against railroad extortions, and the fol- lowing declaration was embodied in their platform : " * * * the tendency toward consolidation of parallel or competing lines of roads, and of roads without competition from other roads or lines of water transportation, to exact extortionate rates of tariff for the transportation of freight, and to operate the corporations in the interests of jobbers, speculators and monopolies, without regard to the interests of the people, is dangerous to the commerce and industries of the country, and should be restrained and suppressed by the exercise of all pow- ers over the subject delegated to Congress or retained to the state. "^" In support of this plank in the platform. Governor Austin said in the convention: "I believe the masses of our state are beginning to suffer from the extortions and burdens 341. Ibid., p. 14. 342. Ibid., 1870, Governor's Message, pp. 38-39. 343. See Wabasha Weekly Herald, Sept. 15, 1870, p. 1, c. 3: "Now why don't this Order come up to its pretentions? * * • It is time the Patrons showed themselves equal to their under- taking." 344. Minneapolis Daily Tribune, July 7, 1870, p. 1, c. 4. 88 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. imposed by merciless, greedy monopolies and soulless corpora- tions, to an extent hardly equalled from all the taxes imposed by the combined general and state governments. To relieve them from these burdens will test the powers and resources of politicians and statesmen more severely than the old well-worn issues of the past. The wrongs aimed at in the resolution have rapidly grown in great proportions, and if necessary in order to correct them, we should seize them by the foretop and shake them over hell till they get a smell of their manifest des- tiny."=*= It is not to be understood, however, that this was primarily an anti-railroad convention. The delegates were fully as in- terested in the tariff, and it must be considered a notable achievement that the discordant elements managed to agree on resolutions heartily endorsing President Grant and Congress, and at the same time urging the reduction of the tariff to a revenue standard.''*^ Mark H. Bunnell was nominated for Con- gress, pledged to corporation control and tariff for revenue only. Republican county and senatorial district conventions endorsed this platform, and quite generally passed resolutions in favor of legislative railroad regulation.'*^ The Democrats of the first congressional district met in con- vention at Owatonna, September 15. Some of the county dele- gations were decidedly mixed. In Fillmore county, for in- stance, the delegates had been chosen in a "people's conven- tion," without regard to former political affiliation.^*^ There were quite a number who had hitherto regularly affiliated with the Republican party, who now refused to support Mr. Bun- nell, contending that he was a monopolist and a politician. Though evidently many had looked for this to be distinctly an anti-monopoly convention, resolutions offered against mo- nopolies and railroads were voted down and not included in 345. St. Peter Tribune, Oct. 26, 1870, p. 2, c. 2. 346. Minneapolis Daily Tribune, July 7, 1870, p. 1, c. 4, for party platform. See also St. Paul Daily Pioneer, July 7, 1870, p. 1, c. 4; July 9, p. 1, o. 1. 347. See Wabasha County Republican platform, Wabasha Weekly Herald, Oct. 6, 1870, p. 1, c. 4; 20th senatorial district Republi- can platform, The Wells Atlas (Faribault Co.), Oct. 14, 1870, p. 1, c. 3. 348. Federal Union (Rochester), Sept. 17, 1870, p. 1, c. 3. RAILROAD LEGISLATION IN MINNESOTA. 89 the platform.^*^ This may have been done to gain votes for their congressional candidate, Mr. Buck, in frontier counties where the people vpere still clamoring for railroads and favor- able railroad legislation. The Olmsted county Democratic convention, which met at Rochester, September 10, had shown itself more militant. A call had been issued to "all men, irrespective of past party associations, who are in favor of taking the robbers by the throat. ' ' ^^" While nominally a Democratic convention, it was in reality a joint convention of Democrats, anti-monopolists, and " anti-tariffites. " It was here resolved that the state leg- islature had the power and ought to fix the maximum rate of charges on all transportation lines in the state, and to regulate and control the consolidation of transportation companies. They agreed not to support anj' man for office who would not pledge himself to work faithfully for these principles and to bring about at once "such legislation as will protect farmers, merchants, tradesmen, and all other citizens of the state, from a repetition of intolerable and heartless swindles like those that have been and are now being perpetrated upon them by the management of the Winona and St. Peter railroad. ' ' ''^''^ All the candidates nominated in this convention, excepting one, were farmers, men who had "consistently opposed monopolies and protective tariffs for years. ' ' ^^^ On September 12 a call was issued for an indignation meet- ing against the abuses of the Winona and St. Peter railroad company, and for considering the "propriety of contesting the legality of the present rates of tariffs in freights or securing some other relief from the oppression. ' ' ^^^ The meeting was to be held at Rochester, September 16. This call was signed by thirty-seven men, of whom only six were Democrats. The Democrats felt aggrieved at this, and decided to capture the meeting.^'* They thought it a device of the managers of the 349. Rochester Post, Nov. 5, 1S70, p. 2, c. 3; for platform see also Federal Union, Sept. 24, 1870, p. 4, c. 3; St. Paul Daily Pioneer, Sept. 16, p. 4, c. 2; and Sept. 17, p. 1, c. 2. 350. Federal Union (Rochester), Sept. 17, 1870, p. 4, o. 3-7. 361. Ibid., Sept. 17, 1870, p. 1, c. 4. 352. Ibid. ass. Ibid., Sept. 24, 1870, p. 4, c. 4. 354. Ibid., Sept. 24, 1870, p. 1, c. 3. 90 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. Republican party for making political capital out of the anti- railroad sentiment of the community.^"' "When the Republi- cans found the Democrats ready to join them thej"^ held back. A Democrat was elected chairman and another secretary. The committee of five on resolutions was mainly Democratic. The resolutions offered and accepted at the meeting had been pre- pared beforehand by Mr. Jones, a Democratic candidate for state representative. These resolutions denounced the wheat rings and the excessive transportation charges, and demanded redress by the railroad company and the enactment of state laws to afford the people ample protection in the future. '^^ Little or nothing came of this indignation meeting. One member of the committee appointed to report to the railroad company believe'd that the company had been punished enough already, and feared that the stirring up of popular feeling would lead to the destruction of property if not of life.^°' A dispute arose as to which party was entitled to credit for leadership in the anti-railroad crusade. The Democrats blamed the Republican party for the existence of the vexing problem, it having been in power continuously for ten years. The Republicans in turn pointed to the first congressional dis- trict platforms, in which they were openly pledged to railroad control, while the Democrats were not.^"* They could also refer back to territorial days, when Democratic legislatures had granted the charters on which the railroad companies based their rights to manage their business in their own way without state interference. In the first congressional district the anti-railroad senti- ment ran high, but in the second it was not so marked. There the tariff question was of greater interest. For a long time it seemed as though the Republicans would be hopelessly • di- vided, but when they finally met in convention in St. Paul, September 1, they agreed on a platform in which they, like the first district Republicans, endorsed President Grant and Con- 355. Rochester Post, Sept. 24, 1870, p. 3, u. 4. 356. Federal Union, Sept. 24, 1870, p. 4, c. 4. 357. Ibid., Dec. 10, 1870, p. 1, c. 3.^ 358. See Address of the Rep. Congressional Committee to the voters ' of the First District, St. Charles Herald, Oct. 21, 1870, p. -2, c. 1-3. RAILROAD LEGISLATION IN MINNESOTA. 91 gress, and pledged themselves to the "sound and incontro- vertible doctrine of tariff for revenue only. ' ' ^^' The platform does not mention the railroads at all, save to commend the Northern Pacific and to recommend liberal national aid in its favor. General John T. Averill was nominated for Congress. Many Republicans of the second district v^ere dissatisfied with the results of the convention, being pleased with neither candidate nor platform. Consequently a number of them, twenty-five hundred according to the St. Paul Pioneer, joined in signing a petition requesting Ignatius Donnelly to run as an independent candidate on a Ioav tariff, labor and economy plat- form.''^" The Democratic district convention, which met in St. Paul, September 15, endorsed his candidacy and platform.'"^ No definite stand was taken on the railroad question. In the November election the Republicans elected both con- gressmen, though by a reduced majority, and made gains in the lower house of the state legislature. They elected thirty- three representatives, the Democrats twelve, and two were elected on independent tickets. The preceding House had con- tained twenty-eight Republicans and nineteen Democrats. The 1871 Senate, however, would contain twelve Republicans, eight Democrats, and two Independents, as against fourteen Republi- cans and eight Democrats in 1870.'"^ The Federal Union of Rochester announced the results of the election under the following headlines: "The People Vic- torious! Monopolists Sentenced! Our Railroads must be managed in the interests of the Whole People, instead of being run to enrich Wheat Rings and other Speculators. The People have spoken! Their will must be obeyed! Death to all who dare betray them. ' ' ^"^ In that part of the state two anti- monopoly parties had been in the field, and the results of the election in many cases merely determined what men were to be permitted to carry out almost identical anti-monopoly pledges. 359. Minneapolis Daily Tribune, Sept. 2, 1870, p. 1, c. 1; platforr p. 2, c. 2 and 3. 360. St. Paul Daily Pioneer, Sept. 14, 1870, p. 1, c. 2. 361. Ibid., Sept. 16, 1870, p. 1, c. 1, and p. 4, c. 2. 362. Minneapolis Daily Tribune, Nov. 12, 1870, p. 1, u. 3. 363. Federal Union, Nov. 12, 1870, p. 1, c. 3. 92 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. Popular interest in the railroad issue did not subside with the election. On November 12 the Federal Union issued a call for a convention: "To the people of the first congressional district, to those who are being fleeced annually by the extor- tions of the railroad monopolists and rings of speculators, to those who are willing to do their duty as citizens by lending their assistance and influence in honorable and proper efforts to procure the repeal of such legislation as is prejudicial to the public interests, and the enactment of such laws as will protect the people against the extortion of railroad companies and all other monopolies, including wheat rings. ' ' ^°* The convention was to be held in Rochester, December 1. The people of the second congressional district were urged to hold a similar con- vention, and to co-operate in bringing to bear upon the state legislators "a force they cannot resist, and which will strengthen them in their efforts to carry out the objects we have in view. ' ' ^"^ Editors ' ' without regard to partisan pro- clivities" w«re called upon to help advance the movement. State senator-elect Hodge (Dem.) issued a fiery appeal to the people of Olmsted county: "* * * and now, without dis- tinction of party, let us organize our forces for the contest. A call has been made to meet in convention * * * for the purpose of taking counsel together and of devising ways and means whereby we may effectually, thoroughly and forever emancipate ourselves from a system of railway extortions that have become too galling and oppressive for a free people to endure. ' ' ^^^ At this convention the committee on resolutions presented the following grievances: 1. Railroad charges were exorbitant, and places were dis- criminated against. They showed that the Winona and St. Peter railroad company made the following charges for the transportation of wheat : From Eyota to Winona, 38 miles 15c. per bushel. Prom Rochester to Winona, 45 miles 15c. per bushel. Prom Kasson to Winona, 58 miles 17c. per bushel. Prom Owatonna to Winona, 92 miles 10c. per bushel Prom Mankato to Winona, 150 miles 13c. per bushel. 364. Ibid., p. 1, c. 7. 365. Ibid., p. 1, c. 7. 366. Ibid., Nov. 19, 1870, p. 4, c. 5; Letter dated Nov. 15, 1870. RAILROAD LEGISLATION IN MINNESOTA. 93 . They contended that if the rates from the two latter places to Winona were reasonable, the other rates must be exorbitant. They believed that the transportation charges should be re- duced from twenty to fifty per cent or more. 2. The Winona and St. Peter railroad company discrim- inated in favor of certain associations or "rings," to the ruin of local business men. 3. The railroad company had assumed authority to grade the grain and had permitted its employees to favor its "ring" patrons. The convention passed resolutions calling for reasonable rates with no discrimination, and for a satisfactory elevator system not owned or controlled by the railroads. A committee of seven was constituted a permanent executive committee. A memorial to the state legislature was drawn up, urging the enactment of laws (1) compelling the railroads of the state to carry freight and passengers at fair, equitable, and reasonable rates ; (2) to make unfair or partial discriminations by means of lower rates, drawbacks or rebates, criminal offences; (3) to forbid the railroad companies to own or operate elevators or to purchase grain for speculation."'" The farmers had at first been anxious to get elevators and warehouses on almost any terms. With a fluctuating market the storing of grain might not always prove profitable, and besides it was perhaps only a question of time wheii the farm- ers would build granaries and store their own grain.'"* In order to meet the demands of the farmers, the railroad com- panies frequently made arrangements with certain persons or companies, who furnished facilities for receiving and storing grain and were given a certain "toll" on every bushel shipped at their station, or in other eases rebates, large enough to cover market fluctuations and ward off competition.^"'' To pay such tolls or rebates and still get a good price for transporting the grain, the railroad companies were practically 367. Ibid., Deo. 3, 1870, p. 1, c. 4-8; Proceedings of the Anti-Monop- oly convention. 368. Stickney, The Railway Prohlem, p. 22. 369. For contracts of this kind see Report of the Senate Committee to investigate the elevator monopoly on the St. Paul and Pac- ific in 1874, St. Paul Dispatch, Feb. 14, 1874. See also Roches- ter Post. Feb. 11, 1871. 94 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. forced to make the regular rates quite high. These high trans- portation charges tended to lower the prices of farm products, and the farmers soon began to denounce the "wheat ring" in no uncertain terms.^^" The farmer fared little better when the elevators were owned and operated by the railroad companies. The farmer then felt himself at their mercy, both as to grading and trans- portation charges, and independent buyers were as effectually barred out as under the other system. The "Winona and St. Peter railroad company in the summer of 1870 forced the farmers at Rochester to sell their wheat stored in the com- pany's elevators at what was generally considered an unfavor- able price. Under the pretext of having to rebuild and repair the elevators in Rochester, the company set a date at which the grain must be sold, or twelve cents a bushel per month storage, without responsibility for safekeeping, would be charged. ^''^ The railroad companies also frequently gave a monopoly of the wood and coal supply in towns and cities to certain favored individuals or corporations. "While this originally may have been intended to simplify a crude industry and to give better service to the consumer, the system soon proved oppressive and aroused the antagonism of many town people, enlisting their sympathies with the farmer. At times those who enjoyed these monopoly rights in hauling grain and fuel — ^in common parlance, the "rings" — became so powerful that instead of continuing to receive rebates as a favor, they practically con- trolled the railroads and fixed their own rates by playing off one railroad against another.^^^ The executive committee provided for in the Rochester con- vention, December 1, issued a call for a state convention to be held in St. Paul the first week of the following January. This convention did not prove a success. Farmers in different parts of the state had called meetings to elect delegates,''^ but there seemed to be a general suspicion, based on certain develop- 370. Stiokney, The Railway Problem, p. 22. 371. Federal Union, Sept. 24, 1870, p. 1, c. 3. 372. Stiokney, The Railway Problem, p. 23. 373. St. Paul Daily Dispatch, Dec. 27, 1870, p. 1, o. 1, quoting Man- kato Union. RAILROAD LEGISLATION IN MINNESOTA. 95 ments at the Rochester convention, that certain played-out politicians were trying to mount the reform wave and get back into political power."* The regular Republicans opposed the convention strongly, and the Republican press gave it little or no support. Both Republicans and Democrats regarded it as a scheme for organizing a new independent Anti-Monopoly party.^''^ The first session was adjourned to the following evening without any action or speeches, because of the small number present.^^" At the regular session Mr. Donnelly made the prin- cipal address. He complimented Governor Austin on the fear- less way in which he handled the railroads, but expressed lack of confidence in the legislature which had just convened. He did not believe that it would do anything to "relieve the peo- ple of the master monopoly that was closing its monster meshes around them. ' ' ^'' The convention adopted a series of anti-railroad resolutions, and authorized its president to appoint a committee of seven to call future conventions and to urge further organization throughout the state. ^'* This plan, which would inevitably have led to the organization of a new political party within the state, met with no popular favor and was for the time being abandoned. CHAPTER X. RESTRICTIVE RAILROAD LEGISLATION IN 1871. When the legislature met in January, 1871, the people of the state began to look with keen interest for the fulfillment of campaign pledges. "We wonder," said the St. Paul Dis- patch, "whether the blandishment of railroads, operating in the shape of passes, upon the members of the present legis- lature, will lead them to forget their first love, and the prom- ises made the people during the late campaign. We shall look 374. Ibid., Jan. 5, 1871, p. 1, c. 1. 375. Federal Union, Jan. 7, 1871, p. 1, c. 4; St. Paul Daily Dispatch, Jan. 5, 1871, p. 1, u. 1; Jan. 6, p. 1, c. 1. 376. St. Paul Daily Dispatch, Jan. 5, 1871, p. 1, c. 1. 377. Ibid., Jan. 6, 1871, p. 4, c. 1 and 2. 378. Ibid., p. 4, c. 2. 96 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. with anxiety for a notice of the fact that the honorable mem- ber from has introduced a bill regulating the rate of charges by railroad companies for passage and transporta- tion." "« Governor Austin in his message to the legislature again took up the railroad question and discussed it at length.^*" Since his inaugural address his ideas concerning railroad regu- lation had become more definite. After further investigation he had come to the conclusion that the system of freight tariffs and elevator charges practised by some of the railroads Avas unjustifiable, extortionate and oppressive to the last degree. They destroyed wholesome competition (1) by their discrim- ination in favor of particular markets and lines of transpor- tation, against private warehouses and buyers and shippers not in the "ring;" (2) by drawbacks and rebates, which en- abled the favored speculator to manipulate to market to the injury of both consumer and producer; (3) by the establish- ment of arbitrary grades of grain and classes of freight. ''^^ To remedy these evils the governor recommended that the following measures be adopted by constitutional enactment and appropriate legislation :^^^ 1. All existing special railroad charters not in operation within a specified time were to be declared void."*" 2. Every railroad company doing business within the state to maintain an office in the state, where certain records were to be kept for public inspection.^^* 3. No parallel or competing lines of railroad to be per- mitted to consolidate.-''*^ 4. All railroads to be declared public highways free to all for transportation under regulations prescribed by law, includ- ing maximum reasonable charges.^*" 5. No stocks or bonds to be issued except for money, labor, 379. St. Paul Daily Dispatch, Jan. 9, 1871. 380. Minn. Exec. Docs., 1870, Governor's Message, pp. 38-55. 381. Ibid., p. 39. 382. Ibid., pp. 53-55. 383. Cf. Const, of 111. (adopted in convention May 13, 1870), Art. XI, seo. 2. 384. Ibid., sec. 9. 385. Ibid., see. 11. 386. Ibid., sec. 12. RAILROAD LEGISLATION IN MINNESOTA. 97 or property actually received and applied to the purpose for which the corporation was created; all fictitious increase of capital stock or indebtedness void.^^^ 6. The state's right of eminent domain to apply to rail- road property and franchises in the same way as to other prop- erty.^^^ 7. Laws for the correction of abuses and the prevention of unjust discrimination and extortion to be enforced by ade- quate penalties, involving, if necessary, forfeiture of property and franchises.''^'' Public warehouses were also to be defined and similar provisions applied to them.'""' These seven propositions were taken almost verbatim from the constitution of Illinois adopted May 13, 1870. Among the legislators many were "breathing dire threat- enings" against the railroads. One of the leading newspapers of the time says: "Almost every other member has a bill or resolution or scheme to launch upon the subject, and it prom- ises to be one of the leading topics this winter." ^°^ The Koch- ester Board of Trade presented to the legislature a memorial relating to alleged extortionate freight charges of the Winona and St. Peter railroad coinpanj'.^"^ "Two thousand citizens of Olmsted, Winona and Fillmore counties petitioned for the en- actment of a law compelling the railroad companies of the state to carry freight and passengers at equitable and reason- able rates. ^^^ The anti-monopoly element was strong within the legisla- ture, and strong pressure was brought to bear from the out- side. But it is quite apparent that the railroad interests were not without representation and influence. A bill which pro- vided for the apportionment of the internal improvement lands of the state among the different railroad companies was- skil- fully engineered through both houses of the legislature, meet- ing practically no opposition. This "Land Grab" bill failed 2, c. 1. ' 387. Ibid., sec. 13. 388. Ibid., sec. 14. 389. Ibid., sec. 15. 390. Ibid., Art. XIII; Warehouses. 391. St. Paul Daily Dispatcli, Jan. 18, 1871, P, 392. House Journal, 1871, p. 52. 393. 7 Ibid., p. 52. 98 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. to become a law only because of the governor's veto and his unsparing exposure of its^questionable eharacter.^^* Early in the session the Hastings and Dakota railroad com- pany applied for an extension of time for the completion of its road and soon found itself in hot water.^^° It was charged that the large stockholders had gobbled up the smaller ones and issued to themselves preferred stock which rendered ut- terly worthless the common stock held by the original Hast- ings stockholders.^"" The city of Hastings had given a liberal bonus to the railroad company, but found itself discriminated against. Shakopee also was in arms. The legislature had re- quired the company to run its line of road through Shakopee ; but. as there was a township as well as a city named Shakopee, the railroad company insisted that it could satisfy the legal requirements by passing through Shakopee township. Senator MacDonald, however, managed to introduce and rush through both houses of the legislature a bill changing the name of Shakopee township to Jackson.'"' It was believed that this measure would compel the company to pass its line through the city of Shakopee. The railroad company found it expedient to make conces- sions. Arrangements were made whereby its old stock was placed upon an equality with the new preferred stock. Prac- tically all opposition now vanished, and a bill was passed grant- ing the desired time extension.'"^ In the later sixties a number of railroad enactments had reserved to the legislature the "right to regulate the price of freight and fare." "When a similar provision was inserted in a proposed amendment to the Minnesota "Western charter, it was violently attacked by some of the anti-monopolists. Mr. Jones of Olmsted county strongly insisted that this right ex- isted independently of such express provision, and contended that if inserted it would virtually concede that the right de- pended on its insertion and would thus place the friends of 394. See foregoing Chapter IV, p. 42. 395. St. Paul Daily Dispatch, Jan. 24, 1871, p. 1, c. 2. 396. Ibid., Jan. 20, 1871, p. 4, u. 1. 397. Ibid., Jan. 24, 1871, p. 1, c. 2; Special Laws, 1871, ch. 91, p. 395. 398. Special Laws, ch. 63. RAILROAD LEGISLATION IN MINNESOTA. 99 legislative control in a false light. ^°° The provision was finally omitted."" Formerly it had been regarded as a safeguard of the rights of the people, but in this session it was characterized as stale, flat and unprofitable, ancient and worn out. But, strangely enough, the legislature made use of another provision to secure reasonable rates and service without dis- crimination. A number of enactments gave certain railroad companies special privileges or grants on the express condition that proper connections should be made at points of intersec- tion with other railroads, and that freight should be received at such junctions and transported at rates not exceeding the lowest rates charged on any portion of their lines for corre- sponding distances, and not to exceed the lowest average rate of the railroads of the state for similar distances ; ears of con- necting railroads were to be transported at rates allowed by common usage for exchange of car service from time to time ; no discrimination was to be made in favor of or against any locality, person, or connecting railroad.*" One would have expected this legislature to pass a general law to this effect, rather than to revert to the old practice of attempted general legislation by uniform special enactments. Formerly territorial charters had at times been revived and continued in an amended form, thus evading the general in- corporation law. The legislature of 1871 passed a similar act, but it was promptly vetoed by the governor, who refused to sanction the revival of an old territorial charter ^"^ under which the incorporators could claim exemption from effective state control."^ Governor Austin was fearless in his use of the veto power, and proved himself faithful to his campaign pledges. Though the legislature might Avaver and pass laws under questionable influence, the people found that they could depend on their governor to do what he believed to be right. 399. St. Paul DaUy Dispatch, Feb. 1, 1871, p. 4, c. 5; practicaUy so held later (1876) in Vi'^inona and St. Peter Railroad Company vs. Blake, 94 U. S., 180. 400. See Special Laws, 1871, ch. 71, p. 278. 401. Special Laws of Minn., 1871, oh. 63, sec. 3; ch. 64, sec. 3; ch. 66, sec. 5; ch. 67, sec. 2; ch. 70, sec. 2; ch. 71, sec. 2. 402. That of No. 9, Special Laws, 1856, oh. 159. 403. St. Paul Daily Dispatch, March 7, 1871, p. 4, u. 6. 100 MINNESOTA HISTORIc5^L SOCIETY COLLECTIONS. It was not until the legislatufe had been in session for some time that the Senate proposed a joint eomraittee to investigate the alleged railroad abuses. By joint resolution this commit- tee, to be composed of three members from the Senate and five from the House, was to investigate and report to the legis- lature then in session on the following points : 1. The amount and probable value of lands, held by the railroads for other than railroad purposes. 2. The amount and probable value of all other real prop- erty so held. 3. The amount and probable value of all personal prop- erty so held. 4. The annual gross earnings and necessary operating expenses. 5. The rates charged for freight, passenger, and elevator service. 6. The number of acres sold or contracted to be sold, and the average price per acre. 7. The cost per mile of construction and maintenance of railroads. 8. Whether there is any discrimination against individuals or localities. 9. All other facts the committee may deem proper and necessary information for the legislature. In making its investigations the committee was given full power to send for persons and papers.*"* It was impossible for them to investigate and report on the whole field assigned them in so short a time; and so, con- trary to the expectation of those who did not wish for any particular results, they devoted most of their time to hearing the testimony of those who claimed to have suffered wrongs, and instituted an investigation for their benefit. Six railroad companies were investigated."^ The testimony taken in regard to the Winona and St. Peter railroad company went to show that there were discriminations in favor of individuals and of certain points along the line, and 404. St. Paul Daily Press, Feb. 16, 1871, p. 1, c. 1; Committee Report. 405. Namely, St. Paul and Paciflo, Milwaukee and St. Paul, Lake Superior and Mis.sissippi, St. Paul and Sioux City, Winona and St. Peter, and Southern Minnesota railroad companies. MAY SO 1912 RAILROAD LtGiPLAaWftf IN that the management of ^i^^jailroa^s^a^ exasperating to the farmers and ruinous to n^g^eliMej;^ wheat dealers. The "rings" were given special rebates. One member of such a "ring" testified that he was charged a net twelve cents per bushel when the regular rate was fifteen cents, Ijut he tried to justify the system by claiming that he gave the farmers the benefit of the rebate. A miller and buyer likewise testified that the policy was injurious to the other buyers but was a benefit to the producers. The Winona and St. Peter railroad company owned most of the elevators along its lines. Several witnesses were examined with reference to the St. Paul and Sioux City railroad company, but nothing was elicited to sustain any charges of discrimination in rates or of unfair management of its elevators. The company owned and con- trolled the elevators along its line and made no elevator charges. On the St. Paul and Pacific the elevators were owned by iildividuals or corporations with whom the railroad company had special contracts, giving them exclusive rights and allow- ing them from two to three cents a bushel for handling the grain. This railroad company also carried wood much cheaper for parties with whom they had special contracts, which vir- tually prevented others from shipping wood over their lines. There were also complaints against the freight charges of this railroad company. One man testified that he found it cheaper to haul his fiour from Minnetonka City to Minneapolis in win- ter than to ship it by rail. A merchant in Anoka testified that he hauled his goods from Minneapolis by team when pur- chased in considerable quantities. The committee agreed with Governor xiustin in regarding competition an insufficient remedy for railroad abuses. In the first place only points of intersection and places near by would be benefited, and secondly the "tendency toward consolidation and confederation is almost sure to bring lines built as com- peting under one management or an agreed uniform scale of rates, that extinguishes all competition and in the long run compels the people to expend in overcharges all and more than has been saved from cheap rates in times of the most active rivalry. ' ' 102 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. The committee called attention to the fact that there was no longer in any one state an independent railroad, system. Minnesota farmers were vitally affected by the combination of New York and Pennsylvania railroads that had previously been competitors. *"" "It is clear," says the committee in its report, "that state lines have been obliterated by this process, that in very many instances the power which it is desired to control exists and operates beyond the jurisdiction of the state." The committee had realized this quite forcibly when they came to investigate the Minnesota Central, for they found that it had passed under the control of a Wisconsin corpora- tion, and its officers were therefore beyond the limits of the state and not subject to their subpoena. The committee had found a disposition among many to believe that the railroad problem could only be solved by the federal government in the exercise of its constitutional power to regulate commerce among the different states.^"' This had been proposed repeatedly in the preceding campaign, espe- cially by speakers on the Republican stump. *°^ The committee, however, regarded this as a source of relief which should not be sought until all other means were exhausted. As a partial remedy for the grievances complained of, and, if possible, to prevent the recurrence of such grievances, the committee recommended that a railroad commissioner be ap- pointed; and they reported favorably on a Senate bill provid- ing for the appointment of such a commissioner and prescrib- ing his duties. They further recommended the enactment of a law regulating the freight and passenger tariffs on all, the railroads of the state. The report of the committee was laid before the senate February 15 ; and five thousand copies of the report, including all evidence and statistics gathered, were ordered printed for the use of the legislature.'"''' The St. Paul Daily Press comments on this report: "The 406. St. Paul Dispatch, Dec. 22, 18 70, p. 1, u. 4, and Dec. 29, 1870, p. 4, c. 5, tell of pools formed by Eastern trunk lines, after which rates on Western bound freights were raised ten per cent. 407. See Winona county Republican platform, St. Charles Herald, Oct. 21," 1870, p. 2, c. 1. 408. For instance, Mr. Stearns; Rochester Post, Nov. 5, 1870, p. 2, 0. 3. 409. House Journal, 1871, p. 166. RAILROAD LEGISLATION IN MINNESOTA. 103 report is rather a statement of facts, or rather of the testi- mony elicited by the investigation, than of conclusions founded upon evidence, which in fact formed no part of the duties of the committee. ' ' "° The Minneapolis Tribune did not consider the report worth the paper on which it was written, because too little time had been given for a thorough investigation, and expressed the hope that the legislature would not stultify itself by attempting to pass such a bill during the short remnant of that session, because both time and material were wanting and any hasty legislation on such an important and intricate mat- ter would be sure to be many times worse than nothing."^ Many who sincerely favored a thorough-going reform real- ized the need of more time in which to grapple with the com- plicated problem. A number were in favor of appointing a temporary board of railroad commissioners to continue inves- tigations and report their conclusions to the next legislature. Others, however, were anxious for immediate action. Their constituents were clamoring for legislation. To them this pro- crastination was a clear indication that their representatives were being won over by the "monopolists." Said the Owa-' tonna Journal: "Do those legislators who left the people brim full of virtuous indignation at these things, who went breath- ing out 'threatenings and slaughter' against the perpetrators of the wrongs they suffer, whose indignation has been turned to reconciliation and whose threatenings have been changed to gentle cooing of sucking doves, hope to come back to their constituents with honeyed words and ingeniously constructed lies, to palliate this offense of confidence violated, sacred trust betrayed and hope deferred, while aiding the riveting still tighter the chains and adding to the power by which they are held in bondage to these corporations which are sapping the life-blood of the people to enrich themselves?""^ * The legislature finally passed an act creating the ofiSce of railroad commissioner.*^' This commissioner was authorized to investigate railroads and their operations, their pecuniary con- dition and financial management, and to report annually to 410. St. Paul Daily Press, Feb. 16, 1871, p. 1, o. 3. 411. Minneapolis Daily Tribune, Feb. 17, 1871, p. 1, c. 2. 412. Owatonna Jburnal, Feb. 9, 1871, p. 2, c. 1. 413. General Laws, 1871, ch. 22; approved Mch. 4, 1871. 104 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. the legislature. That the commissioner might be enabled to perform these duties, it was made a felony for officers of rail- road companies to neglect sending in annual reports in such form and at such a time as the commissioner might prescribe. It was likewise made a felony for any one to wilfully obstruct, hinder and impede the commissioner in the performance of his duties. He was empowered to issue subpoenas, administer oaths and compel obedience in the same manner as would a court of law. All the books, papers and documents of railroad companies were to be open to his inspection. This act can hardly be called a Granger law. The railroad commission or commissioner idea did not originate in the so- called Granger states. It had been adopted in a number of states for different purposes. The general assembly in Rhode Island in 1839 passed an act to establish railroad commissioners.'''* According to the pro- visions of this act, the general assembly was to appoint a board of railroad commissioners consisting of not less than three members. It was the duty of this board upon complaint or otherwise to examine into the transactions and proceedings of any railroad corporation in order to secure to all citizens of the state the full and equal privileges of the transportation of per- sons and property at all times, that might be granted directly or indirectly by any such corporation to the citizens of other states, and "ratiably in proportion to the distance any such persons or property may be transported on any railroad as aforesaid." The board was given full power to send for per- sons and papers and to examine under ojith. It M^as required to report as often as twice a j^ear to the general assembly on such matters as public interest might require. In 1844 New Hampshire passed "An act to render railroad corporations public in certain eases and constituting a board of Railroad Commissioners." This commission was authorized to investigate and report on the public utility of proposed rail- roads. Where expropriation rights were granted, the com- mission, in conjunction with the road commissioners in the 414. Public Laws of Rhode Island, 1839-40, p. 1087; act of June 14, 1839. RAILROAD LEGISLATION IN MINNESOTA. 105 different counties, would assess the damage done to private property.*^'^ In 1853 the Connecticut legislature passed an act "to pre- vent injuries and the destruction of life upon railroads and railroad trains," which provided for an appointive railroad commission. This commission was given only investigating and advisory powers.*'" Two years later New York established a board of three rail- road commissioners to consist of the state engineer and sur- veyor, ex officio, one person to be selected by the stock and bondholders of all the railroads, and the third to be appointed by the governor. The board was authorized to report to the attorney general illegal acts and irregularities on the part of the railroad corporations. In their regular reports to the leg- islature, they were to suggest additional legislation to secure to the public greater safety and benefit in the use of the rail- roads.*" In 1858 Maine enacted a law "to secure the safety and con- venience of travelers on railroads." An appointive railroad commission was established, whose main duty was to examine into the condition of the railroads, their rolling stock, speed of trains, time tables, rates, and connections.*'* Ohio had all along been taking an advanced position in the line of railroad regulation. In 1867 the legislature of Ohio passed an act "to provide for the appointment of a commis- sioner of railroads and telegraphs, and to prescribe his du- ties." *'^ The commissioner was authorized to investigate com- plaints and prosecute all violations of any of the laws relating to railways, to examine into the condition of railroads, and to order repairs when necessary. Detailed reports were re- quired of the railroad companies, and the commissioner in turn was directed to report annually to the governor. In 1869 Massachusetts established an appointive board of railroad commissioners to have general supervision of all rail- roads within the state. Their powers Avere in the main ad- 415. Laws of N. H., Nov. session, 1S44, ch. 128. 416. Public Laws of Conn., 1853, ch. 74. 417. Laws of N. Y., 1855, ch. 526. 418. Public Laws of Maine, 1858, ch. 36. 419. Laws of Ohio, vol. 64, 1867, p. 111. 106 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. visory.*^" Section twelve of the Minnesota act requiring the investigation of accidents resulting in personal injury or loss of life is verbatim like section fourteen of the Massachusetts law. The law which evidently served as a model for the Minne- sota act, however, was that passed by the legislature of Ver- mont in 1855,^^^ most of it being verbatim the same. The chief differences are that in Vermont the railroad commissioner was to be appointed by the judges of the supreme court, while in Minnesota he was to be appointed by the governor. In both cases the salary was to be paid out of the state treasury, but in Vermont the salary and expenses were to be apportioned among the railroad companies in proportion to the expense incurred and the time spent on each. The penalties provided for in the Minnesota act are more stringent than those of its model. The real Granger law of this session was passed shortly before adjournment, — ^the so-called Jones Railroad Bill.*^^ This was an act to regulate the carrying of freight and pas- sengers on all railroads in Minnesota, and it passed both Houses by a large majority. In the Senate, only four voted against it.*^^ By this act freight was classified, and maximum legal freight charges were fixed as follows:*-* Classes of FssieHT. 20 miles or less. 1 All kinds of grain, 6o per ton mile, potatoes, flour, meal, car load lots, beef, pork, and meats of all kinds. 20-50 miles. 5c per ton per mile. 50-100 miles. Over 100 Less tbau miles, carload lots 4o per ton 3Ko per ton 20% more, per mile, per mile. !. Sawed timber, lum- ber, lath, shingles, coal, and salt. 510 per car load 18c extra per 13c extra, lie extra, of 20,D0O lbs. car load per mile. 20^ more. 3. Dry goods and other mdse., usually called 25^ more than Class 1. first class. 4. Sugar in barrels Same rates as Class 1. and fourth cUss freight. Wood, less than 35 miles, $9.00 per car load of not less than 6 cords. 35=^ miles, 18c extra per car load per mile. 60 miles and over, 13c extra per car load per mile. The railroad companies were authorized to charge five cents 420. 421. 422. 423. 424. Laws of Mass., 1869, ch. 408. Public Acts of Vermont, 1855, No. 26. General Laws of Minn., 1871, oh. 24, approved March 6, 1871. St. Paul Daily Pioneer, March 2, 1871, p. 1, c-. 1. General Laws of Minn., 1871, ch. 24, sec. 1, summarized and tabulated. RAILROAD LEGISLATION IN MINNESOTA. 107 a mile for carrying passengers.*'^ These charges for freight and passenger service were declared to be the maximum of reasonable rates.*^" Under the general railroad incorporation law of 1858 *^' and the General Statutes of 1866/^* railroads were permitted to charge only a maximum of three cents a mile for passengers, and five cents per ton-mile for freight transported thirty miles or more. These provisions had been repealed in 1869, and rail- roads incorporated under the general law were permitted to charge such reasonable rates as might from time to time be fixed by the corporation or prescribed by law.*^^ All railroads in the state without exception were by the new law declared to be public highways, and therefore all per- sons had the right to service at reasonable rates.*^" No addi- tional charges were allowed for handling, transferring or stor- ing freight, excepting a reasonable storage charge on all freights kept for a longer period than two days after notice had been given the consignee. *^^ When freight was carried over two or more lines, the rates were to be the same as would have been charged if the goods were carried over only one line."' It was made the duty of all railroad companies in the state to receive all kinds of freight at any depot or station, what- ever brought for transportation, and to provide suitable places for the reception and storage of such freight.'^^ Equal facili- ties for shipment were to be furnished all shippers,^^* and all freight to be transported without discrimination within a rea- sonable time and in the order received.*^^ No discrimination in favor of any warehouse or elevator was allowed ;*''° and if freight were carried for any one at less than the maximum 425. Ibid., sec. 2. 426. Ibid., sec. 9. 427. General Laws of Minn., 1858, cli. 70, sec. 12. 428. General Statutes of Minn., Revision, 1866, ch. 34, title I, sec. 35. 429. General Laws of Minn., 1869, oh. 78, sees. 2 and 3. 430. General Laws of Minn., 1871, ch. 24, sec. 8. 431. Ibid., sec. 8. 432. Ibid., sec. 6. 433. Ibid., sec. 4. 434. Ibid., sec. 4. 435. Ibid., sec. 7. 436. Ibid., sec. 4. 108 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. legal rates, the railroad company was obliged to transport freights of the same description for all other persons at the same reduced rates diiring the time such discrimination was in force.*"^ If any railroad company failed to comply with any of the requirements of this act, the aggrieved party was entitled to one thousand dollars damages to be recovered in civil action, the company paying the costs. *^^ Besides this, demanding or receiving higher rates than the legal maximum rates was to be deemed a misuser of charter powers; and, on receiving proper evidence, the attorney general must proceed against the rail- road company for the forfeiture of its charter and franchises, or for the collection of a fine not exceeding one thousand dol- lars for each violation of the provisions of the act, at the dis- cretion of the court trying the case.*^^ The evident intent of the act was to prevent discrimination of all kinds against which the people had risen in revolt. If all railroads were public highways and all railroad companies common carriers, it followed as a corollary, in the minds of the legislators, that they had a legal right to prescribe rates for all. Disregarding the Dartmouth College decision, the legis- lature asserted its authority to determine what was the max- imum of legal rates for all railroads, without maldng any dis- tinction between those organized under special law and those incorporated under the general incorporation law. This is the radical departure from previous legislation, and it stamps the act under discussion as a Granger law. We have already referred to the main provision concern- ing railroads embodied in the Illinois constitution of 1870. It had there been considered necessary, or at least expedient, to authorize the legislature to fix maximum legal rates for all railroads.*^" Michigan had in the same year amended its con- stitution *" so as to give its legislature this power **- and to 437. Ibid., sec. 7. 438. Ibid., sec. 8. 439. Ibid., sec. 9. 440. Const, of Ills. (1870), Art. XI, sec. 12. 441. Laws of Mich., 1870, Extra session, Joint Res. No. 1, proposed amends. 442. Const, of Mich., Art. 19A, Of Railroads, sec. 1. RAILROAD LEGISLATION IN MINNESOTA. 109 prohibit the consolidation of parallel and competing lines.**^ Governor Austin, as we have seen, recommended "constitu- tional enactment and appropriate legislation" to the legisla- ture of Minnesota, but this body was convinced of its powers to regulate railroad rates on common law principles, without express constitutional authority. In this respect it was more radical than the Grangers of Illinois and l\Iichigan. The people of Minnesota had failed in their attempt to leg- islate railroads into existence, and they likewise encountered difficulty in legislating them into submission. Under the cir- cumstances, a law satisfactory to all parties would have been inconceivable. Before the passage of the Jones Railroad Bill, the Owatonna Journal characterized it as an incongruous, blundering affair, which looked very much as though some one other than a friend of real progress had figured in its con- struction.*" On the other hand, the Federal Union (Roch- ester), another railroad reform paper, expressed confidence in the new law and considered its enactment the fulfilment of the pledge of the democracy of Olmsted county.**' The St. Paul Daily Pioneer commented on the enactment of the new law in the following words: "The bill known as the Jones Railroad Bill to regulate the rates for carrying freight and passengers by railroads in this state went through the senate with a rush, only four senators having the nerve to vote against it."**" As a rule, the newspapers of the state had very little to say about the new law. In his first communication to the legislature, the railroad commissioner, A. J. Edgerton, reported that the railroads with- out exception had refused to comply with the law,**^ but con- tended that there could be no doubt that the legislation had been beneficial, because, directly or indirectly, it had caused a great reduction in the price of transportation.**^ It was not long before a case was brought before the courts to test the constitutionality of the law. John D. Blake and 443. Ibid., sec. 2. 444. Owatonna Journal, March 2, 187], p. 2, c. 2. 445. Federal Union, March 11, 1871, p. 5, c. 3. 446. St. Paul Daily Pioneer, March 2, 1871, p. 1, c. 1. 447. Railroad Commissioner's Report, 1871, p. 10. 448. Ibid., p. 28. 110 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. others brought action against the Winona and St. Peter rail- road company in the district court for Olmsted county, for refusal on the part of the defendant to deliver certain freight on tender of payment according to rates fixed by law. The court decided jn favor of the defendant, holding that the leg- islature had no constitutional power to fix rates. **° The case was appealed to the state supreme court, which reversed the decision of the lower court, holding that the act of 1871 was valid, operative, and applicable to the defendant in this case. In the first place, the law did not impair the obligation of a contract with the defendant, for the state had never expressly granted to the defendant the right to charge any toll for freight or passengers carried over its road, and its right to demand compensation would depend upon the lan- guage of its charter, and not upon the rules of common law. The court, assuming that the right to take some toll existed by necessary implication, believed that this right could be ex- ercised to its full extent under a law fixing a maximum rate. Secondly, the law in question was not a usurpation of judicial authority by the legislature, for while the legislature repre- sents the sovereign as a party contracting with the defendant, it also, in the capacity of sole law-making power, acts for the sovereign in exercising the sovereign right of control over franchises in the hands of the subject.^"" The railroad company appealed to the federal supreme court, and the case was numbered among the Granger cases.*"^ This court did not base its decision on a strict construction of the charter rights of the company, as had the state supreme court ; but, following the principles laid down in Munn vs. Illinois, held that state legislatures had the right under the constitution to regulate intra-state railroad rates, and to pro- vide penalties for violations. This decision was rendered in 1876, some time after the Granger movement had subsided. The state had not pressed its claims against any of the other 449. See Blake et al. vs. The Winona and St. Peter Railroad Com- pany, 19 Minn., 41S, 419, and 420. 450. 19 Minn., 418, (October term, 1872); note pp. 428 and 429 in particular; see also State vs. Railroad Company, 19 Minn., 434; Nation, vol. 17, p. 266. 451. 94 U. S., 180; Winona and St. Peter Railroad Company vs. Blake. RAILROAD LEGISLATION IN MINNESOTA. Ill railroads ; and when the final verdict was given Minnesota had already changed her railroad laws twice since the enactment of the law of 1871, the constitutionality of which was upheld. CHAPTER XI. RAILROAD LEGISLATION IN 1872 AND 1873. In his message to the legislature which met in January, 1872, Governor Austin characterized the law prescribing max- imum legal freight and passenger rates as crude and ill-con- sidered in many of its provisions, affording but little protec- tion to the agricultural interests of the state. lie recom- mended a careful revision. But notwithstanding its imperfec- tions and the fact that the railroad companies had professed to disregard it, he felt convinced that it had, in no small de- gree, modified their charges and thus saved to the people no inconsiderable sum. He commended the work of the railroad commissioner very highly, and approved of his recommenda- tions.*'^ The legislature of 1871, as we have seen, created the oflfice of railroad commissioner, but it had neglected to make appro- priations for his salary and necessary expenses. It was feared at the time by many friends of reform that the act might for this reason fail to become operative. *^^ But General Bdgerton, Governor Austin's appointee, immediately entered upon his duties and the following legislature made the expected appro- priation *"* and provided him with a contingent fund for the year 1872.^^^ The office was not to perish for want of funds. The report of the railroad commissioner, made directly to the legislature as required by law, shows plainly that he real- ized the responsibility of his position, and that, while thor- oughly in sympathy with the movement for railroad regula- tion, he wished to conduct his investigations impartially and reach conclusions supported by facts. As to infringement of the laws, he reported, as we already 452. Minn. Exec. Docs., 1871, vol. I, pp. 17 and IS. 453. Rochester Post, March 11, 1871, p. 2, c. 4. 454. General Laws of Minn., 1872, ch. 110. See Governor's Message, p. 18, Minn. Exec. Docs., 1871, vol. I. 455. General Laws o£ Minn., 1872, ch. 100. 112 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. have noted, that the railroads had all refused to conform to the maximum freight and passenger rates prescribed by the new railroad law, and that the attorney general had commenced action to test the validity of this form of legislation.*^" He had not yet had time to make a thorough inspection of the different roads, as was contemplated by the law, but from what he had learned he could report that the different railroads were very generally improving the condition of their roads.*'^' In discussing land grants made to railroads, he takes up different companies and estimates the value of the land grants and the local aid rendered them.*^^ He reaches the conclusion that the different railroads of the state had received from the public no less than fifty or sixty million dollars, which he re- gards as given in trust that the state may be developed and that its mineral, agricultural and other productions and man- ufactures may be transported to market on equal and reason- able terms. *^^ Great complaint had been made against the Winona and St. Peter railroad company for making unjust discriminations against certain places.*"" The commissioner entertained seri- ous doubts as to the effectiveness of unregulated competition as a remedy for such abuses. He believed that fair and just rates from all places should be established by law. Then, whenever the railroads cut rates to break down competition, they would have to do so at their own expense and not at the expense of producers residing at a distance from the com- petitive points.*"^ He was not prepared to subscribe to the radical position taken by certain members of the Illinois con- stitutional convention that the "right to regulate and prescribe the terms of the use of that which has been taken and is held for the public use" can never be irrevocably surrendered by the legislature to any board of directors, but he presented their arguments and admitted that they had much force.*"^ He believed, however, that the time would soon come when the 10 and 11. X, sec. i. 456. Ry. Commissioner's Report, 1871, pp. 457. Ibid., pp. 11 and 12. 458. Ibid., pp. 12-16. 459. Ibid., p. 39; see Const, of Minn., Art. 460. Ibid., p. 17. 461. Ibid., p. 20. 462. Ibid., pp. 32-36. RAILROAD LEGISLATION IN MINNESOTA. 113 principle would be recognized that the public as well as the railroad corporations have "vested rights;" and that, if such unreasonable rates are charged, or such discriminations made, as would obstruct the necessary commerce, or paralyze the various industries of the state, it is as much the duty of the legislature to interfere and remove such unjust obstructions as it is the duty of a court to abate a nuisance.*"^ There was some doubt as to the power of the legislature to prescribe rates for all the railroads of the state until the courts had decided certain pending cases. But four of the principal railroads had charters which expressly provided that freight and passengers should be transported at reasonable rates. The commissioner believed that, if the legislature amended the char- ters of these roads and placed them under just and whole- some restrictions, of which there could be no doubt it had the power, the whole question would be settled; for, when these roads were compelled to adopt reasonable rates and cease un- just discriminations, the other roads would have to fall in line."* Eailroad lands were exempt from taxation until sold or contracted to be sold. In many counties the amount of land thus held by the railroads was very large, and consequently the burden of taxation fell heavily on the settlers and became the cause of much complaint and ill-feeling. The commis- sioner found that in a number of eases much railroad land had been contracted away, but on such terms that the title re- mained with the railroad company. These lands, therefore, were not listed for taxation. One company had sold its road- bed and equipments, but kept its land grant and claimed ex- emption from taxation. The commissioner recommended that every means should be used to make these lands subject to tax- ation as soon as contemplated by the laws exempting them.*"" Railroad companies were to pay a certain annual tax or per centum of their gross earnings. In the past no direct pro- vision had been made for an esamination into the correctness of the returns sent in by the companies. The commissioner 463. Ibid., pp. 39-40. 464. Ibid., pp. 36-37. 465. Ibid., pp. 21-25. 8 114 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. therefore recommended that the companies be required to send in monthly statements of their gross earnings, and that the commissioner should at least once a year make a personal in- vestigation to ascertain the correctness of their returns. *"" Since the authority of the legislature over special charter railroads had not yet been judicially determined, it was not to be expected that any important railroad legislation would be enacted during the session. Governor Austin had been nom- inated by acclamation as' a candidate to succeed himself, and was re-elected by a large majority in November.*"' The Dem- ocrats, during the campaign, had denounced the Republican administration for its utter failure to enforce the laws of the state relating to corporations,*"' but the voters remained loyal to the party in power. The legislature was strongly Republi- can and the grangers remained in the ascendancy. Thirteen of the forty-one senators, and fifty-three of the one hundred and six representatives, are listed as farmers in the legislative handbook of 1872."^ Few general railroad laws were enacted during this ses- sion. The railroad commissioner was required to examine the books and accounts of the railroad companies at least once a year to ascertain the amount of gross earnings of each road. An act was passed to compel the railroads of the state to build and maintain proper cattle-guards and fences along their line.*'" Their failure to do this in the past had been a source of great annoyance and loss to the farmers, and a law to this effect had been strongly urged by the railroad commissioner in his report.*'^ But quite a number of special railroad laws were enacted. Three acts were passed giving companies the privilege of build- ing branch lines, with provision for securing proper connec- tions with interseetiag roads and reasonable rates and services without discrimination.*'^ These provisions were identical with 466. Ibid., pp. 25-26. 467. World Almanac, 1S72, p. 69: Austin, 46,415; Young, 31,441. 468. St. Paul Daily Pioneer, Sept. 14, 1871, p. 4, c. 2; Dem. party platform. 469. Legislative Manual of the state of Minn., 1872, pp. 146-153. 470. General Laws of Minn., 1872, ch. 26. 471. Railroad Commissioner's Report, 1871, pp. 16-17. 472. Special Laws of Minn., 1872, chs. 96, 122, and 124. RAILROAD LKGISLATION IN MINNESOTA. 115 those which we noted as inserted in a nurtiber of special acts by the legislature in the winter of 1871.*" Two other acts confer special legislative benefits on the express condition that the companies shall at all times carry freight and passengers at reasonable rates,*^* while a third makes it a condition that the railroad shall be subject to all laws of the state which are general in their nature.^"' An Iowa corporation was permitted to extend its line into the state on condition that it paid a three per cent gross income tax to the state and charged such reasonable rates for the transportation of passengers and freight within the state as might be fixed by -the company or prescribed by general law.*'' The First Division of the St. Paul and Pacific was authorized to build a branch line on condition that it would carry freight and pas- sengers on this branch at such reasonable rates as might from time to time he prescribed by law.*''' These enactments show the determination of the legislature to bring the railroads operating with special charters under legislative control by special agreements, since there was some doubt as yet as to their amenability to the general law. Two acts passed by this legislature very liberallj'- left blank the maximum amount of common and preferred stock which might be issued in connection with branch lines.*'^ What would seem to be another step backward in railroad legisla- tion was the revival of two territorial charters. The charter of the St. Paul and St. Anthony railroad company "^ had been revived and amended for the St. Paul street railway company in 1868. This amended charter was now revived and further amended by the legislature in 1872.*^" The Winona and La Crosse railroad charter, granted in 1856,*" was revived and continued for a new set of incorporators.**^ The new corpo- 473. Ibid., 1871, ohs. 63, 64, 66, 67, 70, ana 71. 474. Ibid., 1872, oh. 93, sec. 3; ch. 119, sec. 2. 475. Ibid., oil. 100, sec. 2, 476. Ibid., ch. 95, sec. 2. 477. Ibid., ch. 120, sec. 1. 478. Ibid., ch. 96, sec. 1; ch. 124, sec. 2. 479. Session Laws of Minn., 1853, ch. 12. 480. Special Laws of Minn., 1872, ch. 112. 481. Session Laws of Minn., 1856, ch. 159. 482. Special Laws of Minn., 1872, oh. 101. 116 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ration was to carry freight and passengers over its road at just and reasonable rates. **^ At this session an amendment to the constitution was pro- posed, providing that the legislature should not authorize any municipal corporation to aid a railroad to an amount exceed- ing ten per cent of the assessed value of the property within its boundaries.*^* This proposed amendment was ratified by popular vote in the November following.**' During the summer of 1872 the presidential campaign and national issues were of primary interest throughout the state. At this time there was in some states considerable disagree- ment in the Republican ranks with reference to the tariff, the civil service, and the administration reconstruction policies. In Missouri the dissenting element, or Liberal Republicans, gained control in January, 1872. They called a national con- vention which met in Cincinnati in May, nominated candi- dates for president and vice-president, and drew up a plat- form embodying their main tenets. The Democrats met in national convention in Baltimore, July 9, and adopted the Lib- eral Republican platform and candidates. By making this coalition they hoped to defeat the administration Republicans in November. In Minnesota the defection within the Republican party was not particularly strong. The Republican state convention met May 8, and in its platform expressed its confidence in the national administration and heartily endorsed President Grant for a second term.*^" The three congressional district conven- tions followed suit.**' In none of these platforms was any specific mention made of railroads. The St. Paul Dispatch was the only prominent Republican paper in Minnesota to espouse the Liberal Republican cause, *^^ although their presidential candidate, Horace Greeley, had been quite popular in the state. The opposition element in the state united as in the previ- 483. Ibid., ch. 101, sec. 9. 484. General Laws of Minn., 1872, ch. 13; Const, of Minn., Art. 9, sec. 14, 485. Railroad Commissioner's Report, 1872, p. 39. 486. St. Paul Daily Press, May 9, 1872, p. 4, c. 2-3. 487. Ibid., July 12, 1872, p. 2, u. 3, First dlst.; July 17, p. 4, c. 2, Second dist.; July 19, p. 4, c. 1, Third dist. 488. Smalley, The History of the Republican Party, p. 193. RAILROAD LEGISLATION IN MINNESOTA. 117 ous campaign ^*' and presented platforms denouncing the na- tional and state administration and demanding reform. They caused quite a stir in many parts of the state but the adminis- tration Republicans came out victorious in the November elec- tion. Grant received 55,708 votes; Greeley, 35,211.'*'"' The Liberals were defeated by a large majority in all three con- gressional districts, *^^ making a good showing in only a very few counties. In the state legislature the Republicans made gains over the preceding year, having thirty members to the opposition's eleven in the Senate, and seventy-eight to the op- position's twenty-eight in the House. "^ In the summer and fall of 1872 the papers had very little to say about railroad abuses. There seems to have been comparatively little agita- tion, yet we find that about as large a proportion of farmers were elected to the legislature as in 1871.*"^ The St. Paul and Pacific, Lake Superior and Mississippi and the Northern Pacific railroad had a Railroad Building at the State Fair in November, 1872, and gave an exhibit of what had been raised on lands lying within the limits of their land grants. A special committee appointed by the state agricul- tural society gave an eight column report of this exhibit in the Farmers' Union, and commended the railroads very highly on their liberality and enterprise in bringing to public notice the productiveness of their lands. In the opinion of this commit- tee thousands of settlers would be attracted to the state, and hundreds of thousands of dollars be invested, as a direct result of this exhibition, which it was hoped would become one of the prominent features of future state fairs.*"* When the legislature met in January, 1873, there seemed to be no measures of exciting interest demanding action.*"" 489. St. Paul Daily Pioneer, June 16, 1872, p. 4, u. 1; July 11, p. 2, c. 1; July 20, p. 2, u. 1. 490. Smalley, op. oit., p. 194. 491. The Tribune Almanac and Political Register, 1873; First dist., 20,371 to 10,841; Second dist, 15,257 to 10,832; Third dist., 19,182 to 12,609. 492. The World Almanac, 1873, p. 42. 493. Legislative Manual of the State of Minn., 1873, pp. 166-171, 12 farmers in the Senate and 52 farmers in the House; St. Paul Daily Pioneer, Jan. 10, 1873, p. 4, c. 2. 494. Farmers' Union, Nov. 7, 1872, pp. 2-3. 495. St. Paul Daily Pioneer, Jan. 7, 1873, p. 2, c. 1. 118 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. The railroad cases were" still pending, and it was generally- understood that appeal would be made to the federal supreme court, if the railroads lost out in the state courts. Under the circumstances the prospects for immediate railroad reform were not promising. The governor in his message informed the legislature that all the companies, local and non-resident, operating within the state, continued to disregard the maximum rate law.*^^ As an intelligent basis for judicious legislation, he recommended the appointment of an able committee to make a searching and far reaching investigation.*^' He favored making conspiracy against trade, or the entering into a combination to prevent competition, an indictable offense punishable by fine and im- prisonment; and in case directors or managing officers were convicted, such conviction should work the forfeiture of the franchises of the corporation.*"^ In addition to necessary state legislation, he recomlnended that Congress be memorialized to exercise its constitutional prerogative to regulate commerce among the several states, and by an act embracing the entire system of the Union to' accomplish what the several states by their discordant legislation, their deficient legislation, and their non-legislation, could never accomplish.'"'^ The governor re- commended that Congress be further memorialized to aid in the construction of canals to give continuous water communica- tion from the Mississippi river and its tributaries to the sea- board. He believed that this was fully as important to the people of the West as the correction of railroad abuses.'*"" He urged the farmers especially to profit by the experience of the trades unions and the protective and co-operative societies of other trades and calling, and to organize for securing economic independence.''"^ The railroad commissioner in his report to the legislature gave a short summary of the origin and progress of each road 496. St. Paul Daily Pioneer, Jan. 10, 1873, p. 2, c. 2; Minn. Exec. Docs., 1872, vol. 1, Governor's Message, p. 5. 497. Ibid., p. 8. 498. Ibid., p. 8. 499. I>id., p. 8. 500. Ibid., p. 8. 501. Ibid., p. 10. RAILROAD LEGISLATION IN MINNESOTA. 119 already constructed or in the process of construction.^"^ He again called attention to the fact that much railroad land was escaping just taxation, and urged the legislature to take appro- priate action. As a remedy for discrimination against places he recom- mended the enactment of a pro rata law similar to that pro- posed by the Massachusetts Commissioners in their report for 1870.^°^ The commissioner was convinced that discrimina- tions, both against persons and localities, were opposed to the well-defined principles of common laM^, and claimed for the state an inalienable police power to prevent and restrain such infringement on the rights of the public.^"* The commissioner reported in the main favorably on the physical condition of the roads, and was enthusiastic over their rapid extension throughout the state. He commended the practice of building railroads in advance of actual business needs, asserting that Minnesota was twenty-five years in ad- vance of what she would have been if the "timidly conserva- tive ideas of the past" had prevailed.^"^ If the legislature had carried out the recommendations of the governor and railroad commissioner, much of its time would have been occupied with important remedial railroad legislation. As it turned out, comparatively little was done. An act was passed making the state treasurer collector of railroad taxes and providing more adequate means for their collection.'*'"' This act did not go as far as desired by the rail- road commissioner. Any railroad company organized under the laws of Iowa was authorized to extend its lines into Min- nesota, and, as to these extensions, was to possess all the pow- ers, franchises, and privileges, and be subject to the same lia- bilities, as railroad companies organized under the general laws of the state. During this session a large number of counties, towns, cities and villages were authorized by special law to issue bonds to 502. Railroad Commissioner's Report, 1872, pp. 5-22. 503. Ibid., p. 45. See Railroad Commissioners' Report (Mass.), 1870, p. ox. The Mass. Commissioners In turn copied tlie Mich, law of 1869, No. 109, sec. 17, el. 9. 504. Railroad Commissioner's Report, 1872, p. 46. 605. Ibid., p. 50. 506. General Laws of Minn., 1873, oh. 114. 120 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. aid in railroad construction.^'" An act was passed which on the face of it would seem to amount to partial repudiation. The city of Hastings was authorized to adjust and compromise its outstanding bonded railway indebtedness at a rate not to exceed fifty cents on the dollar, new bonds to replace the old.^"' As in 1872, attempts were made to bargain with railroad companies as to rates through special legislation. The Mil- waukee and St. Paul railroad company was authorized to build a bridge across the Mississippi river from La Crosse on con- dition that it would carry freight and passengers on equal and reasonable terms ;^°^ and on this same condition the legislature extended the time for the completion of certain branch lines of the St. Paul and Pacific railroad company."" Many gran- gers throughout the state must have thought this provision rather superfluous. CHAPTER XII. THE GRANGER MOVEMENT IN 1873. In the winter of 1873 the agitation against railroad abuses was resumed, and before long it surpassed in intensity the railroad war of 1870. In this renewed contest the grangers of the Order of Pdtrons of Husbandry figured prominently. The farmers had learned to recognize the need of efficient organiza- tion, and as the purposes of the grange were frequently inter- preted to meet the particular needs of different localities and the grange everywhere was proclaimed the farmer 's best means of self-protection against all oppression, granges began to spring up on all sides. Soon many unauthorized organizers were in the field, making the best of the movement for their personal interests, political or financial, and the "Worthy Mas- ter of the National Grange found it necessary to give notice to the effect that no dispensations would be issued in Minne- sota on the application of any person except deputies ap- pointed by the Master of the State Grange.^" 507. Special Laws of Minn., 1S73, chs. 152, 153, and 156-166. 508. Ibid., ch. 151. 509. Ibid., ch. 106. 510. Ibid., ch. 107. 511. Farmers' Union, March 29, 1873, p. 102, c. 3; notice dated Wash- ington, D. C, March 18, 1873. RAILROAD LEGISLATION IN MINNESOTA. 121 The constitution of the Order forbade the discussion of political questions in the meetings of its granges. But how could a constitutional provision prevent the discussion of rail- roads, monopolies, middlemen, and the tariff, when the mem- bers of the grange had in many cases united for the express purpose of discussing these questions and planning concerted action? And even if such discussion had no recognized place in the grange meeting proper, there was nothing to prevent an informal discussion before or after the regular program. At this time these questions were uppermost in the minds of the people everywhere. The Minnesota State Grange held a large and enthusiastic meeting at Lake City in February. ''^^ In his address to the State Grange the Lecturer, Mr. D. C. Cummins, proclaimed as the highest ambition of the Order the elevation of the "family of husbandmen from their present ignoble position to that exalted station in society and government which the contem- plation and imitation of nature's works, associated with in- telligence, is calculated to do. ' ' ^^^ It is difficult to see how the Order could accomplish such purposes without taking part in the political activities of the day. There seems to have been no ban placed on the discussion of the railroad problem at this meeting. The Grange even went so far as to pass the following resolution : Resolved, That the Secretary of the State Grange request our representatives in the legislature of the present session to use their Influence to pass a bill in effect to appropriate a sum of money suflB- cient to employ the necessary legal council to test the validity of the present law on our statutes, defining the charges of railroads for freight and passenger tariffs over their respective roads. ii" By this resolution the Grange officially showed its interest in existing reform laws. It was not inclined, however, to pro- pose definite plans for further reform. During the months of March, April, May and June, Ignatius Donnelly made a series of addresses before the granges in Dakota, Rice, Goodhue, Fillmore, Mower, Olmsted, Winona and Washington counties. These addresses were on live ques- 512. Farmers' Unjon, March 1, 1873, p. 67, c. 4. 513. Ibid., May 3, 1873, p. 140, c. 4. 514. Ibid., March 15, 1873, p. 83, c. 5. 122 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. tions of the day, such as ' ' The necessity for co-operation among farmers ; Patent laws against them ; Railroad legislation against them; The robberies of high tariff against them; The evil of paper currency against them; Their remedies: Cheap trans- portation, ship canals, specie payment, and low tariff." Ex- tracts from his speeches were published in pamphlet form and widely circulated. ^^^ Mr. Donnelly was very popular as a speaker, and by his brilliant wit and Tiis spontaneous eloquence he could hold the attention and win the applause of an audi- ence on any subject, whether they were convinced by his argu- ments or not. Mr. Donnelly gave the Patrons credit for having revolu- tionized the interpretation of the laws concerning railroads in bringing them under the control of the state legislature. To him the Order of Patrons of Husbandry meant reform, revolu- tion; it was the fulcrum Archimedes wished, from which to move the world. He believed it to be "the foundation of an universal party, the party of the people — the party of the farm- ers of the West, the planters of the South, and the poor men of the whole nation * » * * j^ -^yiU name the next Presi- dent of the United States ! " ^i" It is very probable that Mr. Donnelly was far more interested in the foundation of such a new political party than he was in the Order itself. He was mainly interested in the Order as a means to this end. In the "P. of H." column of the Farmers' Union, May 10, 1873, appeared some fiery "declarations of principles and rights." A series of resolutions had been adopted at Fari- bault which were endorsed as the "true ringing declaration of a determined class of men to change the order of railroad government and extortion." These resolutions demanded im- mediate legislation, state and national, to protect labor against the encroachment of capital, to prohibit the consolidation of parallel railroad lines, to fix the maximum of railroad charges, and to prevent unjust and oppressive discrimination between local and through freight. They maintained that the inherent power of the people over the railroads had never been for- 515. I. Donnelly, Pacts for the Granges (21 pages). The subjects of his speeches cited above are those given on the title page of this pamphlet. 516. Ibid., p. 10. RAILROAD LEGISLATION IN MINNESOTA. 123 felted, and protested against the subterfuges of the legisla- ture in avoiding the enactment of necessary laws. The farm- ing community was described as being in an embarrassed and prostrated condition, and a general bankruptcy of the farmers of the state was declared inevitable if the law-making powers did not come to their aid in this great emergency. '^^'^ A lively discussion arose among the grangers of the state as to what discussions were political and therefore barred from the granges. One Patron in a letter to the Farmers' Union, the official organ of the State Grange, calls the outcry against the grangers' dabbling in politics senseless, and con- tends that it is the "imperative duty of the friends of morality and good government to combine their influence in the main- tenance of pure political action." He says further: "The Order of P. of H. has undertaken one of the greatest moral reforms that ever blessed an oppressed people, and they are fully competent to complete the task so well begun. Party ties' should no longer be heeded, unless parties present men for the suffrage who are known to be paramountly favorable to the agricultural and other industrial interests of the coun- try. ""^ Another Patron says: "Let us throw politics away and elect good, honest, intelligent farmers for every office in the State except our legislature. Some might think we were a little piggish if we wanted that body composed wholly of farmers. * * * Patrons, this is a point worth looking after. Let us think of it at election time.""" A little later this Patron writes : ' ' Let us inform our next legislators that they shall have our votes with the understanding that they will work for the interests of the farmer and pass a law fixing reasonable rates of transportation and compelling railroad companies to carry our produce to market in reasonable time and be responsible for the safe delivery at any desired mar- ket; and they should be informed that if they break the con- tract and vote in favor of the railroad monoplies, they should be subject to the decision of Judge Lynch and close confine- 517. Farmers' Union, May 10, 1873, p. 14S, c. 1. 518. Ibid., May 3, 1873, p. 140, c. 1; Letter of \Vm. Close. 519. Ibid., March 22, 1873, p. 93, c. 4; Letter of Geo. E. Hopkins. 124 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ment under a white oak limb for a term of not less than five minutes nor more than fifteen. ' '■'^° "Bro." J. S. Denman wrote: "And now, brothers, as elec- tion draws near and our town caucuses and county conventions are at hand, we must be up and doing. * * * If we are going to bring about a reform in politics, every man in every town wants to attend the caucus and see that the right kind of men go to the county convention." -'^^ The question occupying the minds of a great number of grangers was what action they should take in the coming cam- paign. They had common interests, and it seemed absurd for one to go to the polls and vote one ticket while his neighbor voted another.'^^ The local grangers were hampered in giving formal expression to their political views by the constitutional provision already referred to. But in many counties there was a County Council composed of representatives from the dif- ferent subordinate granges in the county. These Councils were extraneous to the constitutional plan of the Order, and were therefore not considered bound by the constitution as were the national, state, and subordinate granges. Mr. Donnelly and others for this reason urged the formation of County Councils in all counties and encouraged political discussion and political action by them.''^^ The Steele County Council of Patrons of Husbandry met at Owatonna in the first part of June, 1873, and after some dis- cussion drew up a very vigorous set of resolutions. They agreed that the railroad companies must be radically reformed and controlled by the strong hand of law. The aid of every Patron and of every fair-minded man was invoked to secure legislation fixing maximum charges, preventing watered stock, and prohibiting the consolidation of competing lines. Rail- roads were to be compelled to assume all the duties of common carriers, and particularly to receive and transmit freight with- out discrimination or favoritism. They resolved finally, ' ' That we recognize the fact that to secure and enforce these enact- 520. Ibid., May 10, 1873, p. 148, c. 2. 521. Ibid., July 5. 1873, p. 211, u. 2. 522. Ibid., June 21, 1873; Letter of Wm. N. Plymat, p. 197, c. 3. 523. Donnelly, Facts for the Granges, p. 19. RAILROAD LEGISLATION IN MINNESOTA. 125 ments our votes must enforce our wishes and our action must be strongly political, though not partisan in its bearings. ' ' ^^* Other County Councils met and adopted similar resolu- tions.^^'' Another plan frequently adopted by the Grangers to secure concerted political action was to call meetings of the members of the different subordinate granges in a county, who were to act "not as grangers but as citizens." ""^ Such a meeting was held in Brownsdale, Mower county, July 26, 1873. The grangers here issued a call for a county convention to organize a new political party and to issue a call for a state convention.'*^' Mr. J. J. Hunt, Master of the Brownsdale Grange, presided, and Mr. Donnelly delivered the principal address."^* The con- vention drew up a series of resolutions. They expressed a lack of confidence in both existing political parties, and condemned the present management of railroads whereby monopolies and rings secured special advantages. They considered it the duty of the attorney general to enforce the law of 1871, and de- manded an amendment of this law so as to make its provisions more fair and equitable to the people. They called for a county convention of farmers and laborers to meet at Brownsdale, September 25, to nominate candidates for county offices. Finally an invitation was extended to all who agreed with them in these declarations of principles to meet in mass con- vention at Owatonna, September 2.^^^ The people throughout the state were thoroughly aroused, and many were beginning to believe with Mr. Donnelly that the time had come for the organization of a new political party to carry out the proposed reform. As in 1870, the Republican party aligned itself against "railroads and monopolies," and appealed for the support of all who favored reform."" In its state convention held in St. Paul, July 16, they adopted in their 524. Farmers' Union, Jan. 28, 1873, p. 205, c. 2. 525. For instance, Le Sueur County Council, Oct. 7, Farmers' Union, Oct. 18, 1873, p. 333, c. 1; Olmsted County Council, Oct. 17, The Minn. Record (Rochester), Oct. 25, 1873. 526. Donnelly, Facts for the Granges, p. 19. 527. Ibid., p. 19; St. Paul Daily Pioneer, July 27, 1873, p. 1; c. 2. 528. Farmers' Union, Aug. 9, 1873, p. 252, c. 1-4. The address is given in Donnelly, Facts for the Granges. 529. Ibid., Aug. 9, 1873, p. 252, o. 4. 530. See Duluth Minnesotian, Nov. 1, 1873. 126 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. platform resolutions to the effect that no rights should be vested in railroad corporations beyond the control of future legislation, and that the legislature should attach such condi- tions to all new grants, and to amendments and extensions of old charters, as would place the rights of legislative control over such corporations beyond question. They pledged them- selves in favor of the enactment of such laws as would limit to just and reasonable rates all tolls, tariffs, and charges of rail- road and transportation companies. °°^ There was a hard fight in the convention between the old "Ramsey dynasty" and the "young Republicans" over the candidate for governor. Mr. "Washburn, the Ramsey aspirant, had a strong political backing and was considered by many a worthy favorite ; but, after a series of ballots, the choice fell on C. K. Davis, a St. Paul attorney, whose lecture on "Modern Feudalism" had made him popular with those who favored a more stringent corporation control. Mr. Davis was nominated on a very narrow margin, and was not very enthusiastically supported during the following campaign by some of the old party leaders ; but as he had been a pioneer in the anti-monop- oly movement, his nomination was quite generally looked upon by the people as an overthrow of the "politicians." °'^ It is not to be understood, however, that Mr. Washburn was opposed to reform. He had been actively interested in the enactment of the law of 187i; and in the campaign of 1873 he spoke strongly in favor of railroad regulation, state and na- tional.^^^ Throughout the state most of the Republican can- didates pledged themselves to support the farmers' movement. The Democrats co-operated with the new Anti-monopoly party during this campaign. They postponed holding their state convention till after the Owatonna Anti-monopoly con- vention, having made up their minds to support its candidates, provided they and the platform adopted were acceptable. They contended that the new movement was fully in accord 53i: St. Paul Daily Press, July 17, 1873, P. 4, u. 2; Federal Union, July 25, 1873, p. 2, c. 4. 532. St. Paul Daily Dispatch, Oct. 11, 1873, p. 2, c. 1; St. Paul Daily Press, July 17, 1873, p. 1, o. 1; July 20, 1873, p. 2, c. 6, quotes nine papers endorsing Mr. Davis. 533L Farmers' Union, Nov. 1, 1873, p. 349; speech before Dodge County Agricultural Society, Sept. 26, 1873. RAILROAD LEGISLATION IN MINNESOTA. 127 with Democratic principles and deserved Democratic sup- port.=^* Some subordinate granges had met and appointed delegates to the convention to be held in Owatonna, September 2, and other granges were considering what action to take, when State Master Geo. I. Parsons issued a notice giving it as his opinion that not only was such action unwise but also in direct violation of the fundamental law of the Order, and that it subjected the granges so doing to the danger of a revocation of their charters. He expressed profound regret and mortifica- tion at having witnessed a departure from the cherished prin- ciples of the Order. ^'^ This move on the part of the State Master was perfectly consistent with the original aims of the Order and was heartily endorsed by many of the Patrons,"' but it proved an effective check on organized political action by the granges, much to the chagrin of the Anti-monopolists. It was frequently interpreted as being in itself partisan, because it influenced so many to act through the regular Republican party organization who other- wise would have joined the new movement. Mr. Donnelly was unsparing in his criticism of State Master Parsons, who, he said, would vote for the devil himself if he were regularly nominated by the Republican party.^^^ But the anti-railroad agitation was by no means checked. It continued as lively as before among the grangers, and gran- gers had by this time come to mean all those who sympathized with the farmeris' movement, whether they belonged to the Order of Patrons of Husbandry or not. As a matter of fact, in many localities most of the farmers did belong to granges. The regular agricultural societies of the time took no part in the movement. The hitherto numerous farmers' clubs and so- cieties, other than granges, had nearly all suspended opera- tion, or had been transformed bodily into granges. The grange was practically the only vital farmers * organization during this 534. St. Paul Daily Pioneer, Sept. 2, 1873, p. 2, c. 1; St. Paul Daily Press, Aug. 19, 1873, p. 1, c. 1. 535. Farmers' Union, Aug. 16, 1873, p. 261, c. 2. 536. For example. North Star Grange (St. Paul) by unanimous res- olution; Farmers' Union, Aug. 23, 1873, p. 269, c. 1. 537. See Anti-Monopolist, Jul%r 16, 1874. 128 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. period. Though the granges could take no actiye part in politics officially, yet they continued as before to afford a com- mon meeting place where farmers could discuss more or less formally the questions in which they were so vitally interested and come to an informal understanding on issues and candi- dates. TheOwatonna convention was not so well attended as many had hoped for, although twenty-three counties were repre- sented.^^* A long series of resolutions was drawn up and adopted, which was to serve as the platform of the new Anti- monopoly party. They pledged themselves to recognize no political party or candidate as worthy of support which did not declare that the government cannot alienate its sovereignty, either in whole or in part, to any person, association, or cor- poration, for any purpose whatever. They would support no candidate who objected to the exercise by the legislature of its power to reverse or annul at any time the chartered privilege, or "so-called vested right," when exercised by the corporation to the detriment of public welfare. They also condemned pro- tective tariff, high official and congressional salaries, and "back pay." They condemned the wood and coal rings which mo- nopolized the fuel supply in the cities. They favored free ■w^ater communication with the ocean. They heW that the state ought to bear the cost of suits against railroad companies, and commended the state supreme court on its decision in the case of Blake vs. The Winona and St. Peter railroad company. Farmers and laborers were advised to choose and elect their own candidates in the coming elections, independent of the action of all other political organizations.^'^ The convention nominated candidates for all state offices, and urged the minor political subdivisions of the state likewise to present complete tickets at the coming election. During the campaign on the stump and through the press, the Republicans showed that the law of 1871 had been enacted by a Republican legislature and had been upheld by Repub- lican judges. They claimed that they continued to support 538. St. Paul Daily Pioneer, Sept. 3, 1S73, p. 1, c. 1. 539. Ibid., Sept. 3, 1873, p. 1, c. 2; Farmers' Union, Sept. 6, 1873, p. 285, c. 1-3. The resolutions are also given in full in Martin, History of the Grange Movement, p. 510; RAILROAD LEGISLATION IN MINNESOTA, 129 the reform movement, and that they were pledged to further reform legislation. On the other hand, the Anti-monopolists insisted that the law of 1871 had never been enforced by the Republican officials, the railroads having disregarded it from the start. They contended that the pledges of the Republican platform referred only to future roads and further grants to existing roads, and that they seemed to imply an acknowledg- ment of vested rights in former grants.''*" The railroads were by no means disinterested observers during this campaign. They realized that much was at stake and made free use of passes and other valuable considerations which they were in a position to offer.^*^ During the years 1872 and 1873 a fierce railroad war was waged, in which Minnesota was vitally interested. The people of the state had long been looking for the completion of a rail- road connecting Minneapolis and St. Paul with Duluth, to bring into competition with the all-railroad route to Chicago a cheaper route eastward via the great lakes, and thus to re- duce rates on products sold and on goods shipped in. And low rates came almost immediately on the opening of the new road. The distance from the Twin Cities to Duluth is one hun- dred and fifty-six miles, while the distance to Chicago is four hundred miles. The promoters of the Lake Superior and Mis- sissippi railroad company figured on doing most of the carry- ing trade, during the season of lake navigation, for the entire section of the country comprising all of Minnesota and the Da- kotas and the parts of Wisconsin and Iowa nearer Duluth than Chicago. But President Mitchell of the Milwaukee and St. Paul railroad issued a decree "making every station on its road as near Chicago on Lake Michigan as Duluth on Lake Supe- rior," and though the actual difference in distance in many cases was fully two hundred and fifty miles this difference was to be ignored in fixing freight charges.''*^ Rates were fixed in such a way that cities and towns within fifty miles of Minneapolis and St. Paul were practically com- pelled to sell their produce and buy their goods in Chicago. 540. Federal Union, July 25, 1873, p. 2, c. 4. 541. Stickney, The Railway Problem, p. 100. 542. Ibid., p. 98. 130 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. While this rate war was on, the farmers in many districts en- joyed extremely low transportation rates, but the railroads had to recoup themselves the best they could during seasons of closed navigation and in districts where competition was not strong. It was claimed that districts in Wisconsin had to pay a considerable part of the expense of the transportation of favored sections in Minnesota during this rate war,"*' and this may account to some extent for the strength of the granger movement in Wisconsin at this time. There was little or no anti-railroad agitation in Minnesota in 1872. It may be that the people were waiting to see what the results of the legislation enacted in 1871 would be, and of the contest between the railroads. But in 1873, as we have seen, the anti-railroad sentiment in this state was not to be ignored — a sentiment shared, however, by many other states."** In September, 1873, the Milwaukee and St. Paul railroad joined with the West Wisconsin and the Winona and St. Peter railroads in raising the rate on wheat to Chicago three cents a bushel."*" The Northern Pacific, which had control of the Lake Superior and Mississippi railroad and connections,"*' did not make any advance in rates and was highly commended by many for its action."*^ The concerted increase of railroad rates called forth a storm of indignation and gave new impetus to the granger movement."*' In the midst of this intense agitation came the panic of 1873. This financial crisis was the inevitable conclusion of 543. Ibid., p. 112. 544. Railway Gazette, Dec. 27, 1873, 'The Railroad Tear." tfnder this caption the paper says the year has been distinguished by the growth of distrust and Jealousy of railroads, and gives In- stances from a number of states not usually classed as granger states, namely, V^^isconsin, Illinois, Iowa, and Minnesota. 545. Duluth Weekly Tribune, Sept. 18, 1873. 546. To make connections with the Twin Cities from Duluth, the Northern Pacific leased three connecting lines: the Lake Supe- rior and Mississippi, May 1, 1872; the Minneapolis and Duluth, Sept. 1, 1871; and the Stillwater and St. Paul, Nov. 1, 1870. See Railroad Commissioner's Reports for 1871, p. 40, app., and 1873, p. 163 app. 547. Duluth Minnesotian, Sept. 20, 1873; Nov. 1, 1873, from the St. Paul Press, Oct. 29. 548. Duluth Weekly Tribune, Sept. 18, 1873, "The Three Cent Ex- tortion" (from St. Paul Press) ; Duluth Minnesotian, Sept. 20, 1873, "Increase of Railroad Charges;" Farmers' Union, Sept. 27, 1873, p. 308, 0. 2, "A Protest." RAILROAD LEGISLATION IN MINNESOTA. 131 an era of over-speculation and misdirected production, and it was national and international in its scope. In this country money had been scarce and the rate of interest high at dif- ferent times during the two preceding years. The crisis was precipitated September 18, by the failure of Jay Cooke, who had been unable to float a large issue of Northern Pacific bonds. The news of this failure shattered all confidence, and a general panic ensued on Wall street, thence spreading over the whole country. Minnesota had also had her share of speculation. Railroads had been pushed as never before, and almost altogether on borrowed capital, in spite of the fact that different railroad companies had been showing deficits at the end of each year.^*^ As in the other Granger states, railroads were built far beyond present business demands. Enormous sums of capital were tied up for the time unproductively, and in such amounts per railroad mile as to offer little hope for remunerative returns for some time to come. Business enterprises of all kinds were undertaken with frontier optimism, and to a considerable^ ex- tent on borrowed capital, for money at the time was plentiful. But when the crash came ready cash disappeared and busi- ness operations were suspended. Even the farmer found it nearly impossible to dispose of his products.'^^" Fortunately Minnesota had comparatively few business failures,'^^^ and, as the crops that summer had been reasonably good in spite of local devastation by the grasshoppers,^^^ the people of the state looked upon the depression as merely temporary. The railroads suffered severely, it is true, but their "ab- sentee owners," who were popularly ranked with tyrants and oppressors, did not get much sympathy. The farmers through- out the middle west had been in arms against "railroads and monopolies" for several years, and now it was freely charged 549. Railroad Commissioner's Report, 1871, appendix; 1872, app., p. 207; 1873, app., p. 231; Railroad Gazette, Oct. 11, 1873, p. 414; Poor's Manual of the Railroads of the United States, for 1872-3, pp. xUi and xlill; for 1873-4, pp. xl and xli. 550. St. Paul Daily Dispatch, Sept. 19, 1873, p. 4, c. 2, "The Sense- less Panic." 551. St. Paul Daily Pioneer, Sept. 20, 1873, p. 4, o. 2; St. Paul Daily Dispatch, Sept. 19, 1873, p. 4, c. 2; Oct. 10, 1873, p. 2, u. 1. 552. St. Paul Daily Dispatch, Sept. 20, 1873, p. 2, v;. 1. 132 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. that they had thereby shaken public eonfideuce in railroad in- vestments and brought ruin to the country. The grangers in turn pointed to the recent disclosures of immense frauds in connection with several of the larger railroads and particu- larly to the Credit Mobilier,^''^ and saw in this a sufficient rea- son for a shaken faith in railroads as operated at the time. Some might admit that their warfare had precipitated an un- avoidable catastrophe, but they denied being in any way its cause. They believed for a while that after all the panic was only a flurry in the fictitious values in which the speculators had been interested, and that good honest industry, the eco- nomic "bone and sinew" of the country, would not be mate- rially affected."'* The grangers remained firm in their conviction that their cause was just and continued their fight for railroad regula- tion. The campaign seemed in the main unaffected by the panic. The Olmsted County Council of Patrons of Husbandry met October 17. They passed a resolution declaring that it was the duty of the state and general government to establish rea- sonable maximum rates of freight upon railroads. The Coun- cil submitted twenty-five questions to the subordinate granges of the county for discussion. None of these referred to the railroad or monopoly problems of the time. This seems to in- dicate that they intended to live up to the letter of the law and not formally discuss political questions in the granges."'*' The Democrats and Liberal Republicans met in state con- vention at St. Paul on September 24 and formally endorsed the 553. See House of Representatives, 42d Congress, Sd session. Report No. 77, Credit Mobilier Investigation, Feb. 18, 1873 (pp. xix, 523); Report No. 78, Affairs of the Union Pacific Railroad Com- pany, Feb. 20, 1873 (pp. xxvi, 770); Report No. 78, part 2; Re- ports No. 81, 82, and 95; Senate Report No. 519, 42d Congress, 3d session, Feb. 27, 1873 (pp. xxxvi, 162); J. E. Stevenson, Speeclies in the House of Representatives, Feb. 26 and March 1, 1873, and Exhibit of Credit Mobilier Legislation and Oper- ations (Wash., 1873); .1. B. Crawford, The Credit Mobilier of America, its Origin and History; St. Paul Daily Dispatch, Oct. 3, 1873, p. 2, u. 1; Farmers' Union, Oct. 4, 1873, p. 308, u. 3; The Duluth Minnesotian, Sept. 27, 1873; Cultivator and Country Gentleman, Oct. 23, 1873, XXXVIII, 683, "Cause of the Panic." 554. St. Paul Daily Pioneer, Oct. 23, 1873, p. 2, c. 1; Nov. 1, 1873, p. 2, u. 2; Nov. 9, 1873. 555. The Minnesota Record (Rochester), Oct. 25, 1873. RAILROAD LEGISLATION IN MINNESOTA. 133 platform and candidates presented by the Anti-Monopolists at Owatonna."^" It was believed that concerted action on the part of all the opposition forces would inevitably lead to a Republican defeat at the polls in November. The unusual interest taken in this off-year election is shown by the comparatively heavy vote cast throughout the state on election day. The voting was frequently for men rather than parties. The number of votes received by different men on the same ticket varied considerably. Of the state offices, the most lively contest was for the office of state treasurer. Dur- ing the legislative session of the previous winter the treasurer had been accused of placing state money at the disposal of a "gang of St. Paul politicians" without securing to the state any compensation for its use.''^' An investigation followed which disclosed a number of irregularities. The state treas- urer was receiving a comparatively small salary, but through a secret, well-established practice of depositing the state money judiciously the party in power was enabled to strengthen its organization and the treasurer could add materially to his rather meager income. When these facts became known a gen- eral hue and cry for reform was raised, and during the cam- paign of 1873 great political capital was made of this example of "Republican corruption and mismanagement." The Republican convention had made a tactical mistake in not nominating for state treasurer Mr. E. W. Dyke, whom Governor Austin had appointed to fill the resigned treasurer's place, and who had filled this position creditably. The oppo- sition element saw in this another flagrant example of "ring" rule within the Republican ranks, and the Anti-monopolists, seizing their opportunity, nominated Mr. Dyke as their candi- date for this office. In the November election the Republicans were victorious. They elected the entire state ticket, with the exception of treasurer. To this position Mr. Dyke was elected by a good majority. Of the one hundred and six representatives, the Republi- 556. St. Paul Daily Pioneer, Sept. 25, p. 2, u. 1; Duluth Minnesotian, Sept. 27, 1873, "The Demo-Liberal Convention." 557. St. Paul Daily Dispatch, Oct. 20, 1873, p. 2, u. 1; Oct. 27, p. 2, c. 1; Nov. 1, p. 2, c. 1. 134 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. cans elected seventy-eight. Of twenty senators to be chosen at this election, the Republicans elected a sufficient number to give them thirty out of a total of forty-one members of the Senate. ^''^ This was an increase in the Republican member- ship in both the House and Senate over the preceding year.^^' The defeat of the opposition was variously explained. The St. Paul Pioneer claimed that it was due to lack of efficient cam- paign organization, asserting that the Democratic state central committee had never met, and that the Anti-monopoly com- mittee had likewise done absolutely nothing to keep able men in the field.^"" It is to be noted, however, that the defeat of the Anti-mo- nopoly party and its allies did not mean the overthrow of the farmers' movement. By nominating C. K. Davis, a known •sympathizer with the grangers, for governor, the Republican party practically adopted this movement as its own, and seri- ously interfered with the plans of Mr. Donnelly and others to identify the anti-monopoly movement with a new political party.^^^ A letter which Mr. Davis published shortly after his nomination was instrumental in reassuring many whose faith in the party was wavering. °°^ Had Mr. Dyke been nominated state treasurer by the Republicans, the opposition party would have made a sorry showing. All Republicans were by no means in accord with the granger ideas of their gubernatorial candidate. This was evident at the state convention, and later throughout the campaign. But under his leadership the gran- ger element remained in the ascendency and the party gained a decisive victory at the polls. The interest in the railroad question did not subside after election. Although the railroads were about to go into the hands of receivers, the people remained determined that they should be compelled to submit to law. During the annual meeting of the State Grange held in Faribault in December, the State Master delivered an address 558. World Almanac, 1873, p. 42. 559. Cf. World Almanac, 1872, p. 69. 560. St. Paul Daily Pioneer, Nov. 12, 1873, p. 2, c. 1. 561. St. Paul Daily Press, July 17, 1873, p. 1, c. 1; Aug. 19, 1873, p. 1, >;. 1. 562. Smalley, The History of the Republican Party, p. 196. RAILROAD LEGISLATION IN MINNESOTA. 135 on transportation. Although he had opposed political action on the part of subordinate granges, his speech was thoroughly in sympathy with the farmers in their complaints of exorbitant and unjust tariffs and in their demands for reduced rates. He held that since the railroads of the state had been largely built by the people through land grants and bonuses, it was unjust for 1;hem. to earn dividends on other than their actual invest- ments and thus make the people pay dividends on their own donations. He therefore recommended that the State Grange send a select committee to the next legislature to assist in the framing of a law looking to the correction of the evils of the existing system of transportation. He also recommended that assessments be levied on the granges for carrying on any suit in which the validity of such a law might be contested.'"^ It is dif&cult to understand how Mr. Parsons could con- strue such action on the part of the State Grange to be any- thing but political in its nature. Later ia the session a motion to provide for such a "lobbying" committee as recommended by the State Master was voted down because of the expense involved, and especially because many deemed the plan dis- creditable to the Order.'"'* CHAPTER XIII. THE GRANGER LEGISLATION OP 1874. During the campaign of 1873, as we have seen, the railroad question was the most vital issue in most parts of the state. The widespread dissatisfaction with the railroad management of the time found expression through caucuses and conven- tions, in party platforms, and ia campaign speeches, and was voiced in no uncertain tone on election day. In the legislature which met in January, 1874, a large majority, regardless of party affiliations, had been pledged to railroad regulation. Of the one hundred and six members of the House sixty-four were farmers, and there was also a good sprinkling of farmers in the Senate.^"^ Most of these were Patrons and came as "ex- 563. Farmers' Union, Dec. 27, 1873, p. 412, c. 4-7. 564. Ibid., March 7, 1894, p. 68, u. 1. 565. Minn. Legislative Manual, 1874, pp. 148-153; Farmers' Union, July 18, 1874, p. 220, ^. 1. 136 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. press representatives of the Grange movement."""" There seems to have been a general feeling of confidence in these legislators. Most of them were believed to be men who had the "moral courage to attack iniquity in its very citadel.'"" At the opening of the session the more radical element tried to unite all those who were pledged to reform and thus cap- ture the organization of the House. All "anti-monopolists," without regard to former party ties, were invited to meet in a caucus to nominate candidates for the elective House offices.^"* Their candidate for speaker, a member of the grange, lost out by only three votes. Many felt this defeat keenly and took it as an indication that the cause was lost for the time being. ""^ The Pioneer, in commenting on the organ- ization of the House, expressed itself as follows:^'" "It was to their credit that a iew members of the House elected on the Republican ticket came here with an honest purpose to aid reform. It was to their discredit that the ring-master, with whip and club, drove them into the monopoly trap, by which the organization of the legislature will be handed over in all its parts to those corrupt and venal few who have so long preyed" on the vitals of the state. * * * The . party of monopoly and corruption is still in the ascendant in Minne- sota." Mr. Donnelly, who had been elected senator, immediately expressed lack of faith in the legislature and began prepara- tions for a new campaign. He was appointed to serve on the Senate railroad committee, but refused to meet with the other members because he did not believe they were in sympathy with the people."'^ Governor Austin, in his final message to the legislature, reviewed the railroad situation at length. It is evident, from his recommendations and remarks, that his position in regard to railroad regulation remained unchanged. The state supreme court had upheld the constitutionality of the law of 1871 in 566. Farmers' Union, July 18, 1874, p. 220, c. 1; "Mr. Donnelly once more." 567. St. Paul Weekly Pioneer, Feb. 20, 1874. 568. St. Paul Daily Dispatch, Jan. 5, 1874. 569. Ibid., Jan. 7, 1874; "Defeated by Treachery." 570. St. Paul Daily Pioneer, Jan. 4, 1874. 571. Farmers' Union, Feb. 21, 1874, p. 52, c. 2. RAILROAD LEGISLATION IN MINNESOTA. 137 the Blake cases, but the railroad company had appealed to the federal supreme court. The governor deemed it advisable to make it the duty of the attorney general, or of the railroad commissioner, hereafter to prosecute suits of this nature -at the public expense. ''^^ He believed that the law of 1871, if main- tained, would be found too arbitratry and inelastic, especially because all railroads could not justly be required to carry freight and passengers at the same rates.^''^ He recommended that complaints against railroad companies should be heard and determined by a board to consist of the railroad commis- sioner and a number of efficient men appointed to serve with him."^ He approved of adopting in the main the French plan of strict government inspection and supervision of all roads, the regulation of their charges, and allowing no tariff ad- vances without showing good cause and obtaining leave. '^^^ He believed as before, however, that cheap transportation could only be secured by improving and extending the waterways. He urged a considerate attention to the claims of foreign creditors at this time of financial depression. The railroads of the state had been built largely by foreign capital, the St. Paul and Pacific alone having twenty-six million dollars in bonds held in Holland. Though the money had in many cases not been honestly applied, he considered the claims just and worthy of consideration.'^^^ The "Winona and St. Peter railroad company stood in need of legislative confirmation of its claims to certain lands. The governor suggested that in this, as in other cases where rem- edial legislation was sought, it should be given with such con- ditions as would expressly secure the company's submission to the general laws and regulations of the state. As we have seen, the legislature had frequently embodied special provi- sions as to reasonable rates in such enactments, but these had not gone to the extent of requiring a full surrender of their special privileges. Since all the special charter railroads had not come before the legislature at the same time for relief, it 572. Minn. Exec. Docs., 1873, vol. 1, Governor's Message, p. 16. 573. Ibid., p. 18. 574. Ibid., p. 19. 575. Ibid., p. 20. 576. Ibid., pp. 11-12. 138 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. had been repeatedly argued with effect that such a provision in an individual instance would be an "unfriendly and unjust discrimination. ' ' "'' Governor Davis, in his inaugural address, showed himself equally interested in securing reform. He was not certain that the law of 1871 would be binding on other railroad companies, even though it were held applicable to the Winona and St. Peter.''^^ He considered the claims of the special charter rail- roads, if upheld, a standing menace to the state. He proposed two remedies. First, the state's right of eminent domain might be applied to the railroads in such a way that the state on payment of just compensation could acquire the right to pre- scribe rates. The measure of such compensation could not be what abuse and extortion on the part of the companies would yield if permitted to continue forever, but would have a more reasonable standard.^'® Second, he recommended a constitu- tional amendment prescribing that when any statute is enacted in favor of or for the benefit of a company at its instance, the company should by the mere force of the beneficial enactment be subject to such duties and control by the state as the amend- ment might propose. Since railroad companies were frequently in need of such favorable and enabling legislation, he believed such a policy would soon annihilate the claims of the special charter companies to self-regulation.''®° The new constitution of Pennsylvania, adopted in 1873, contained such a provi- sion."*^ As we have seen the retiring governor recommended a similar plan, but not so fully developed. The railroad commissioner, in his annual report, complained that his powers were too limited to remedy the railroad abuses. He called attention to the fact that he could not commence suits against railroad companies and had no poAver to prevent extortions, his duties being mainly limited by the law to the collection of facts and statistics for the information of the leg- islature.^*^ He made no recommendations in this regard, but 577. Ibid., pp. 13-14. 578. Ibid., Inaugural Address, p. 12. 579. Ibid., p. 13. 580. Ibid., pp. 13-14. 581. Const, of Penn. (operative Jan. 1, 1874), Art. 17, sec. 10. 582. Railroad Commissioner's Report, 1873, pp. v and vi. RAILROAD LEGISLATION IN MINNESOTA. 139 left it to the legislature to determine whether an extension of powers would be advisable. The commissioner had continued his investigation of rail- road lands which were legally subject to taxation, and re- ported new cases of evasion.^*^ Most of the companies paid their gross income tax promptly, but where the companies neg- lected or refused to make returns of their gross earnings there was no proper method provided by law for its collection. He recommended legislation to remedy this defect.^*'' Various remedies against unreasonable rates are discussed. In view of the fact that most of the railroads of the state were bound by their charters to transport freight at reasonable rates, and since proofs as to reasonableness or unreasonable- ness were mostly in the exclusive possession of the railroad companies, he contended that the burden of proof ought to be shifted from the shipper to the company, and that the legisla- ture should establish certain rates to be prima facie reasonable. The railroads would be permitted to bring forward proofs to rebut this assumption of reasonableness."*^ The railroads continued to insist on their "vested rights" and immunity from the general laws and regulations. Dis- criminations continued to be the rule, rather than the excep- tion. The commissioner believed that as long as the railroads insisted on these wrongs, so long would the revolt against them assume greater and greater magnitude.'*" He again reviewed the federal, state, and municipal aid to the railroads of the state, and contended that the people had not shown themselves unfriendly to the railroads as often charged. They had been liberally dealt with in franchises, land grants, bonuses, and right-of-way donations; and all that the people ask for these prodigal gifts, said he, is security from extortion and freedom from unjust discrimination."*' The great question before the legislature of 1874 was the solution of the perplexing railroad problem. All agreed that something must be done, but there was a great variety of opin- 583. Ibid., pp. vi-xi. 584. Ibid., p. xiv. 585. Ibid., pp. xlv-xlvi. 586. Ibid., p. Ixiii. 587. Ibid., p. Ixiii. 140 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ions in the legislature and throughout the state, as to what should be done. Many held that nothing short of a constitu- tional amendment defining clearly the power of the state over railroads would suffice. St. Julien Cox proposed in the Senate to add an article of ten sections to the constitution.^** These sections embodied the main provisions of the recent Illinois and Pennsylvania constitutions relating to railroads. '^^^ This proposed amendment was received with favor by many anti- monopolists in both houses, but its consideration was indefi- nitely postponed by a vote of eighteen^ to thirteen. ''^° One pro- vision of this proposed amendment forbidding the consolida- tion of parallel lines Avas later in the session enacted as a law.^"^ It is verbatim from the Pennsylvania constitution, except that it applies to railroads only and not to railroads-and canals.^"' At its annual meeting in December the State Grange had decided against maintaining a "lobbying committee at the capital during the legislative session.'^''' But when the legis- lature met the executive committee of the State Grange, at the request of a number of legislators, appointed a committee to confer with them as to what legislation was desired by the Patrons and farmers of the state.""'' Its members were given seats in the Senate, with the understanding that they were to look after matters of interest to the farmers.''''" In certain quarters much was expected of this committee,'^'"' but little was accomplished beyond stirring up considerable ill-feeling in many of the granges because it had been appointed against the express wishes of the State Grange.""' At first the farmer element in the legislature had a feeling of distrust and jealousy toward the other members, which threatened to interfere seriously with the legislative work, but 588. St. Paul Evening Journal, Jan. 9, 1874; An address to the Anti- monopoly Party in Minn., 1874, p. 9. 589. Const, of Ills., Art. XI, sees. 9-15; Const, of Penn., Art. XVII, sees. 1-12. 590. An address to the Anti-monopoly Party in Minn., 1874, p. 9. 591. General Laws of Minn., 1874, ch. 29. 592. See Const, of Penn., Art. XVII, sec. 4. 593. Farmers' Union, Mch. 7, 1874. 594. Ibid., March 28, 1874. 595. Ibid., Feb. 21, 1874, p. 52, c. 2. 596. Ibid., p. 52, c. 2. 597. Ibid., March 7, 1874, p. 68, u. 1; March 21, 1874, p. 84; Apr. 11, 1874, p. 108. RAILROAD LEGISLATION IN MINNESOTA. 141 this soon passed away/'^^ The reformers were divided into two main factions. The more radical wished to follow up the state supreme court decision in the Blake case, and advocated laws fixing the rates of charges arbitrarily on the plan of the law of 1871. Others favored the enactment of a new law framed on the theory that the railroad corporations should each be al- lowed to charge a reasonable toll, after taking into account the benefits they had received from the people.'"" A bill establishing maximum reasonable rates and provid- ing stringent penalties was introduced in the Senate, but met the same fate as the proposed constitutional amendment, — it was indefinitely postponed. -AH the six who voted against postponement were anti-monopolists. One had been elected as an independent, and five as Republicans; of these five, three were grangers."'"' State senator Donnelly introduced a bill based on the law of 1871. Its main feature wds a provision that whenever any railroad company refused to obey the law, it should at once be put into the hands of receivers. Railroad companies were in this way to be compelled to obey the law while litigation was going on. They were not to have the privilege of refusing obedience until the law had been sustained in the highest courts.""^ In the House a bill was introduced by Mr. Crandall, and was favorably reported by the committee of the whole.""*^ This bill was in the main like the Illinois railroad law, but it in- cluded a maximum rate above which the railroad commission- ers were not to go in fixing rates. The railroads were to be divided into classes according to the amount of business done, and rates were to be prescribed for each separately. ^"^ This bill passed the House by a vote of sixty-five to twenty-nine,""^ but came only as far as the second reading in the Senate.""^ 598. Ibid., Feb. 14, 1874, p. 44, c. 2. 599. Owatonna Journal, Apr. 9, 1874; Speech by Hon. Amos Coggs- well. 600. An Address to the Anti-Monopoly Party in Minn., 1874, p. 10. 601. Ibid., p. 10. 602. House Journal, 1874, p. 185; H. F. No. 36. 603. Farmers' Union, Feb. 14, 1874, p. 44; see also Feb. 21 and 28. 604. House Journal, 1874, p. 217; H. F. No. 36. 605. Senate Journal, 1874; see Index, p. 622, Bills of the House, No. 36. 142 MINNESOTA HISTORICAL SOCIBTT COLLECTIONS. The House indefinitely postponed a bill to provide for the appointment of a board of railroad coramissioners,°°° but passed a bill creating the office of assistant railroad commissioner.""^ A number of bills were also under consideration in the Sen- ate, when its Railroad Committee introduced a substitute bill for all pending railroad bills, including thiose passed by the House.""* This bill passed the Senate,""' but did not prove stringent enough to suit the House. First the committee on railroads, to which it was referred, reported back a substi- tute,"^" but on recommitment they reported it back with amend- ments and recommended its passage."^^ Two successive con- ference committees were appointed before the bill as amended by the House with some further amendments was acceptable to both houses."'^ The House for a long time insisted that a maximum rate should be fixed above which the commissioners were not to be allowed to go, but was at last forced to yield."" The bill passed the House by a vote of eighty-three to three."'* In the Senate only two votes were cast against the bill, those of Donnelly and Drake, "'° one the leader of the new Anti- monopoly party, and the other the president of the Southern . Minnesota railroad and Republican leader in the Senate."'"- Donnelly objected to the bill because it gave a commission of three appointed by one man, the governor, the power to fix rates without any limits whatever. ' ' The people elected a leg- islature to regulate railroads," said he, "and after sixty days session the Republican majority discard all the bills proposed by the Anti-monopolists, and coolly tell the people, 'You picked the wrong men; we know nothing about railroads, we are too ignorant and incapable to fix a schedule of charges.' " "" 606. House Journal, 1874, p. 185; H. F. No. 4. 607. Ibid., p. 235; H. F. No. 86, here by misprint No. 36. 608. Senate Journal, 1874, p. 291; S. F. No. 271. See Farmers' Union, Feb. 28, 1874. 609. Ibid., p. 344. The vote stood 2D to 7. 610. House Journal, 1874, p. 424. 611. Ibid., p. 463. 612. Ibid., pp. 498, 560, and 562. See St. Paul Daily Press, March 6, 1874, p. 2, u. 2; St. Paul Daily Dispatch, March 6, 1874, p. 4, c. 2. 613. St. Paul Daily Press, March 6, 1874, p. 2, u. 1. 614. House Journal, 1874, p. 563. 615. Senate Journal, 1874, p. 482. • 616. Rochester Post, March 14, 1874. 617. An Address to the Anti-Monopoly Party, 1874, p. 12. RAILROAD LEGISLATION IN MINNESOTA. 143 This railroad law of 1874 '^^ created a board of three rail- road commissioners to be appointed by the governor, with the consent of the Senate, for a term of two years. No stockhold- er, trustee, assignee, lessee, agent or employee of any railroad corporation was to be eligible to this office. The commission- ers were severally required to give bonds with security in the sum of twenty thousand dollars for the faithful performance of their duties. The governor was given authority to remove any member when convinced that he was guilty of malfeasance or non-feasance of official duties."^' The salary of each was fixed at three thousand dollars per annum and necessary ex- penses."^" They were to be in session at all times for the performance of their duties, and were required to keep a record of all their proceedings and to make an annual report to the governor, containing such information as would disclose the actual work- ings of the system of railroad transportation in its bearings upon the business of the state and such suggestions as they might deem appropriate. The governor might also direct them to make special investigations and reports.*^^ They were given plenary powers of investigation, and were authorized to em- ploy experts when they deemed it necessary."^^ The commissioners were directed to make a schedule of maximum legal rates of charges for each of the railroads doing business within the state. "^^ Special charter railroads were not excepted. The law fixed no maximum rates whatever except for terminal ■charges."^* The published schedules were to be deemed prima facie evidence of what were reasonable rates at any given time. The commissioners had authority to revise the schedules as often as circumstances might require, and the changes were binding after publication for three successive weeks in two weekly St. Paul newspapers."^^ The act forbade unjust discrimination of 618. General Laws of Minn., 1874, ch. 26. 619. Ibid., sec. 1. 620. Ibid., sec. 2. 621. Ibid., sec. 3. 622. Ibid., sec. 4. 623. Ibid., sec. 5. 624. Ibid., sec. 9. 625. Ibid., sees. 6 and 7. 144 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. all kinds and virtually enforced flat pro rata transportation charges. Different companies might charge different rates, but each company was obliged to charge the same rates at differ- ent points for transportation in the same direction on all parts of its main lines, its branches, and on other roads which it used or operated. All variations in charges for services under sim- ilar circumstances, directly or by means of rebates or draw- backs, were made prima facie evidence of unjust discrimina- tion, and competition with another railroad at any point could not be proffered as a sufficient excuse or justification. Com- mutation, excursion, and thousand mile tickets might be issued as before. Otherwise there were only two exceptions to the general rule : Agricultural products might be shipped from outside the state to points within the state at uniform rates, less than the established local rates; and lumber might be transported to points at least twenty-five miles outside the state at special rates."-" Railroad companies were required to furnish cars for the transportation of freight when requested to do so, and to re- ceive all freight offered and transport it with reasonable dis- patch."-' At all points within the state where two or more railroads intersected, it was made the duty of the railroads to provide for the convenient transfer of cars and freight from one line to another without unreasonable or unnecessary de- lay."^« All who owned coal, wood, or lumber yards, elevators, ware- houses, mills or factories, at or near any railroad, were given right of access to the railroad tracks for necessary connec- tions at a reasonable annual rental, which was to be determined by the railroad commissioners where the parties could not agree."^' If any railroad company charged unreasonable rates or unjustly discriminated against any person or corporation, town, village or city, the aggrieved party had a right to re- cover in a civil action treble damages, together with costs and 626. Ibid., sec. 9. 627. Ibid., sec. 10. 628. Ibid., sees. 11 and 12. 629. Ibid., sec. 13. RAILROAD LEGISLATION IN MINNESOTA. 145 a reasonable attorney's fee."^" Any company guilty of violat- ing any provision of this act was liable to a fine of one thousand dollars for the first offense, and from two to five thousand dol- lars for the second and subsequent offenses. In all eases aris- ing under the act, either party had the right to trial by jury."^'^ Whenever final judgment was rendered against a railroad for the recovery of a penalty prescribed by this act, it became the duty of the railroad commission to institute quo warranto pro- ceedings to procure the vacation of the company's charter and the extinguishment of its franchises; and if the company con- tinued to violate the act while this case was pending, the judge before whom such proceedings were instituted was authorized to appoint receivers for the company.'^'^ Any resident of the state feeling himself aggrieved because of the violation of any provision of this act had the privilege of making a complaint in writing and under oath to the board of railroad commissioners. If the commissioners on inquiry deemed it proper, they could require the attorney general or the proper county attorney to bring suit against the com- pany. "^^ Employees and agents of railroad companies were made personally liable for willfully aiding in the violation of the law in the same manner as the railroad companies them- selves.'^* The act was not to be construed as repealing the common law remedies against railroad abuses, but expressly provided that its remedies were cumulative. Actions brought under its provisions were given pi-ecedence over all other business in the courts of the state, excepting criminal business f^''' and no such action commenced on behalf of the state might be dismissed unless the reason for dismissal were recorded.'**' The board of railroad commissioners was to possess the powers and perform the duties given the railroad commis- sioner under the law of 1871, except as changed in this act.'**^ 630. Ibid., sec. 15. 631. Ibid., sec. 16. 632. Ibid., sec. 17. 633. Ibid., sec. 19. 634. Ibid., sec. 23. 635. Ibid., sec. 18. 636. Ibid., sec. 22. 637. Ibid., sec. 24. 146 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. The remainder of that law was repealed, as was also the max- imum rate law of that year, but the repeal was not to affect suits brought under it.°^' The provisions of this law were drawn freely from two laws passed by the legislature of Illinois, namely, the act creating a board of railroad and warehouse commissioners, enacted in 1871,*^® and an act to prevent extortion and unjust discrimi- nation, enacted in 1873.°" While competition alone was no longer relied upon as an efScient safeguard against railroad extortion and abuses, the sentiment remained strong that competition must be main- tained as far as, possible. The legislature therefore passed an act to prevent the consolidation of the stock, property, or franchises of parallel or competing companies by purchase or lease, nor were their interests to be merged by means of com- mon officers. The question whether railroads were parallel or competing was to be decided by jury as in other civil cases."*^ An act was passed making, railroad companies liable for fires along their lines, such fires being made prima facie evi- dence of carelessness or neglect on the part of the company."*^ Another act relative to proceedings in expropriation for railroad purposes was made applicable to all railroads whether incorporated under the general law or by special charter.'*^ This last feature virtually repealed a great amount of special law, for such provisions were found in all special charters. The senate appointed a committee early in the session to investigate "elevator monopoly" along the lines of the St. Paul and Pacific."** On February 12 this committee reported that they had conclusively established the fact that a small group of men had enjoyed a complete monopoly of handling, storing, and forwarding grain on the main line of the St. Paul and Pacific railroad ever since it was built. Written contracts had been found which gave them these exclusive privileges. The committee held that a railroad is a common carrier and as such 638. Ibid., sec. 25. 639. Revised Statutes of Illinois, 1874, p. 828. 640. Ibid., p. 816. 641. General Laws of Minn., 1874, oh. 29. 642. Ibid., ch. 30. 643. Ibid., oh. 28. 644. Senate Journal, 1874, p. 86. RAILROAD LEGISLATION IN MINNESOTA. 147 has no right to establish a monopoly of the storage or commis- sion business, but should be compelled to furnish facilities to all who desired to build warehouses and handle grain. As a remedy for the evils complained of by the farmers along the line, the enactment and rigid enforcement of a suitable ware- house law was recommended. As a further remedy, an action might be brought against the railroad company to vacate its charter for the long continued exercise of ultra vires powers to the detriment of the people."*^ The legislature acted upon the recommendations of this special committee."** A law was enacted declaring all ele- vators and warehouses situated on any railroad within the state to be personal property and subject to taxation as such.'*' By joint resolution the attorney general was instructed to im- mediately commence judicial proceedings to vacate the charter of the First DiA'ision of the St. Paul and Pacific railroad, or to take other action as might be proper to remedy the alleged abuses."** Complaints with reference to the handling of grain were not confined to any one railroad. They were quite general. The farmers believed that they were exploited both as to grade and Aveight. When they shipped their own grain to market the loss of weight en route was frequently such as to discour- age similar independent shipments in the future. Various measures were proposed to afford relief. A bill to revive the common law respo'iicibility of common carriers passed the Sen- ate but failed in the House."*" Another bill to remedy the evil of "shortage and stealage" in the transportation of grain by requiring certified weight at the shipping point also failed."^" A bill was passed, however, which fixed the maximum charge of two cents per bushel for receiving, elevating, handling and delivering grain, and provided that the grain inspector must in no way be interested in the purchase and shipping of grain. 645. Ibid., pp. 231-234; Report of the special committee on ware- houses and elevators on the St. Paul and Pacific. 646. ^ee St. Paul Daily Dispatch, Feb. 14, 1874, p. 2, c. 2, "Elevator Monopoly." 647. General Laws of Minn., 1874, ch. 32, 648. Ibid., p. 310; Joint Res. No. 30. 649. An Address to the Anti-Monopoly Party, 1874, p. 10. 650. Ibid., p. 10. 148 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. If a railroad company refused to handle grain at the prescribed rate, any person would, on demand, have the privilege of build- ing and maintaining a vparehouse or elevator at the station, without payment of any compensation to the railroad com- pany. Violations of this act involved the penalty of a fine of from one hundred to five hundred doUars.^''^ Since the legislature had so strongly asserted its authority over all railroads, one would hardly expect it to make special agreements with railroads for the express surrender of their rate-making power. This course of action had, as we have seen, been recommended by Governors Austin and Davis and by the railroad commissioner, and it was considered expedient because the federal supreme court might yet decide against the rate-making powers of the legislature in the case of special charter corporations. The time limit for the completion of branch lines of the Minneapolis and St. Louis railroad company was extended for a period of five years on condition that ' ' passengers and freight shall always be carried on said lines of railroad at such rea- sonable and equitable rates as may be from time to time fixed by law. """^ This was also one of the conditions upon which time extension was granted to the St. Paul and Pacific rail- road company."^' The Green Bay and Minnesota railroad company, a Wis- consin corporation, was permitted to extend its line into the city of Winona with the privileges and liabilities of railroad companies organized under the general law and subject to the laws regulating the "rate of taxation or rates of freight and passenger traffic ' ' as pertaining to the operation and use of its railroad in Winona."'"* There were considerable sums due for materials and serv- ices in connection with the construction of certain lines of road of the St. Paul and Pacific. The legislature passed a law making the railroad company liable for all these debts and providing that no lands accruing to the company were to be transferred by the state till all debts due to citizens of the state 651. General Laws of Minn., 1874, ch. 31. 652. Special Laws of Minn,, 1874, ch. 103. 653. Ibid., ch. 106, sec. 2. 654. Ibid., ch. 100. RAILROAD LEGISLATION IN MINNESOTA. 149 were paid, and if these debts were not paid within six months the governor was authorized and directed to sell public lands held for the company to pay the debts to pay these claim- ants."'"' We have here reflected the very prevalent hostile sen- timent toward absentee claimants. The law was later declared unconstitutional.'^'"' Owing to the financial stringency following the panic of 1873 the St. Paul and Pacific had been unable to complete two of their lines in the northern and western part of the state within the time specified by the act of Congress granting the company lands. The legislature urgently requested Congress to continue the land grants to the state but directed the Min- nesota senators and representatives in Congress not to permit the passage of any act of time extension which did not grant the lands in question directly to the state of Minnesota for her to grant to any company or companies on such conditions as experience had shown necessary for the protection of the people.""^ The development of water transportation had been a sub- ject of special interest in Minnesota from the earliest terri- torial days but during the farmers' movement during the early seventies the question was discussed with particular enthu- siasm. Some doubted that railroads could ever transport bulky freight, such as grain, great distances at a rate reason- able to the farmers. Many grangers believed that the only way to bring railroads to terms was to bring them into direct competition with water transportation wherever possible. Newspapers published all sorts of projects, as editorials and in their correspondence columns. The legislature of 1874 re- fleeted the public opinion of the time by its unusually large number of memorials to Congress bearing on this subject. One joint resolution memorialized Congress to cause a sur- vey to be made of the water routes between the navigable waters of the Minnesota river and the Red river of the North to ascertain the feasibility of connecting the two by canal."'** 655. Ibid., ch. 105. 656. Minn. Exec. Does., 1876, vol. 2, p. 621. 657. General Laws of Minn., 1874, p. 305, Joint Res. No, 24. 658. Ibid., p. 291, Joint Res. No. 7. 150 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. In another they asked for an appropriation for improYing the navigation of the river and lake of St. Croix.*°' A third re- quested Congress to make appropriations for the improvement df the harhor of Duluth to keep it up to the growing necessi- ties of the Northwest."®" In other resolutions they requested their senators an(d representatives in Congress to use their in- fluence to secure the improvement of navigation on the Mis- sissippi river""^ and on the Minnesota river°°^ and the con- nection of St. Croix river with Lake Superior by canal, locks and dams.""^ It was believed that by connecting the river systems of Minnesota with each other and with Lake Superior nearly all parts of the state would have the benefits of cheap water transportation and of reduced rates on the railroads which were in competition. Navigable rivers and lakes were by act of Congress under the direct control of the federal govern- ment and free to all, hence no private individual could mo- nopolize their use. The case of canals was different and in the last mentioned resolution it was stipulated as a condition that the proposed canal and improved water courses should for- ever remain under control of the United States government. It is not to be understood that this agitation in favor of water transportation was confined to Minnesota and that it was only of local interest. President Grant in his fourth an- nual message to Congress, December 2, 1872, called attention to three proposed waterways to connect the "West and the South with the Atlantic seaboard and recommended that a committee or commission be appointed to consider the whole question of cheap transportation."'* The Senate appointed a- select committee "to investigate and report upon the subject of transportation between the interior and the seaboard. ' ' This committee spent a good portion of the year 1873 in investigat- ing the subject of transportation and in its report, submitted to the Senate in the spring of 1874 it discusses at length a num- 1789-1897, 659. Ibid., p. 307, No. 26. 660. Ibid., p. 302, No. 19. 661. Ibid., p. 294, No. 12. 662. Ibid., p. 297, No. 15. 6.63. Ibid., p. 299, No. 17. 664. Richardson, Messages and Papers of the Presidents, vol. VII, p. 195. RAILROAD LEGISLATION IN MINNESOTA. 151 ber of proposed improved waterways and canals "^^ and Tinani- mously recommends four water routes as particularly feasi- ble."'" It may be of interest to note that the chairman of this committee was Mr. Windom, senator from Minnesota. He does not seem, however, to have taken any active part in the gran- ger movement in this state. A great number of municipal corporations had been author- ized to issue bonds in aid of railroad construction by the leg- islature in 1873. Many more desired the same privilege in 1874. New Ulm had by a four-fifths majority voted to give the Winona and St. Peter a right of way through that city and was authorized to issue bonds for this purpose.""^ The city council of Winona had resolved to issue bonds to the amount of fifty thousand dollars in aid of the Green Bay and Minne- sota railroad company when authorized by the legislature to do so. The legislature gave the desired consent.""* Other vil- lages, towns and counties were authorized to give aid to rail- roads ""° and from the reports of the railroad commissioner we learn that the aid given was considerable. War was being waged, not against railroads but against rail- road management and railroad claims based on the Dartmouth College decision."'" The farmers were not enemies of the rail- roads but they were determined to assert the supremacy of the people over everything within the state, including railroads. CHAPTER XIV. THE SITUATION IN 1874 AFTER THE ENACTMENT OF THE GRANGER LAWS. The new railroad law was variously received by the press of the state. The St. Paul Press told of its enactment under 665. Senate Report 30 7, Part I, 43d Congress, 1st Session; Report of the Select Committee on Transportation Routes to the Sea- board, pp. 161-240. 666. Ibid., pp. 243-254; see also Senate Misc. Doc. No. 104, 43d Con- gress, 1st Session; Mr. Windom's Resolution. 667. Special Laws of Minn., 1874, ch. 54. 668. Ibid., ch. 57. 669. Ibid., chs. 59, 61. 670. See Chas. Francis Adams, Jr., Railroads, their Origin and Problems, pp. 126-8; E. W. Martin, History of the Grange Move- ment, p. 335; The American Law Review, ,Tan., 1874, "The Dart- mouth College Case;" and the following Ch. XVI. 152 MINNESOTA HISTORICAL, BOCIETY COLLECTIONS. the headlines, "The People's Triumph, The New Railroad Law." It claimed that the representation of the railroads in the legislature had been so small that they had had nothing to say in its enactment."" The Minneapolis Tribune did not consider the problem solved, but believed the law the best that could have been devised under the circumstances. The legis- lature had not "killed the iron horse to gratify the insane caprices and spleen of some fanatics and demagogues," but "had at least put a snaffle on him and a curb bit to hold his rebellious nose in subjection.""" The Rochester Post, under the heading, "Donnelly and the Railroad Bill," would not claim perfection for the bill in all its details, but gave it credit for incorporating the wisest and most judicious thoughts, deductions, and decisions, of the best brains and the clearest heads of that legislature.®" The Record and Union (Rochester) conservatively ex- pressed its belief that while the new bill was an advance on that of 1871, it would not prove "adequate to the consumma- tion desired. " "" On the other hand, the St. Paul Dispatch regarded the bill as a triumph of the railroad companies and objected forcibly to the plenary powers, ministerial and judicial, executive and legislative, which had been granted to the commission, and considered its appointment by the governor as a dangerous grant of power to the executive."'^ Among the people likewise there was a difference of opinion as to the wisdom of the new law. The more radical Anti- monopolists attacked it violently. Amos Coggswell, an Anti- monopolist member of the legislature, in a speech before the Turtle Creek grange in Steele couflty, expressed his convic- tion that the law would be a complete failure. In the first place it was unconstitutional because it embraced more than one subject in one act, besides not having sections ten to four- teen, referred to in the title. In the second place, it. would afford no real remedies. He did not believe the railroads would 671. St. Paul Dally Press, March 7, 1874, p. 2, c. 1. 672. Minneapolis Dally Tribune, March 7, 1874, p. 2, c. 673. Rochester Post, March 14, 1874. 674. Record and Union, March 13, 1874. 675. St. Paul Dally Dispatch, March 6, 1874, p. 4, c. 2. RAILROAD LBGISLATIOJS IN MINNESOTA. 153 pay any attention to the commission if it should attempt to reduce rates.°^" A more general sentiment in regard to the new law seems to have been that while it would not cure all the evils of which complaint had been made, still it would check the more flagrant wrongs, such as discrimination against persons and places.''^ As members of the new board of railroad commissioners, the governor appointed ex-governor Wm. R. Marshall, John J. Randall, and A. J. Edgerton, who had served as railroad commissioner since 1871. Though some were disappointed to find that the Grange was not represented on the board,"'* the appointees seem on the whole to have been quite acceptable to the people. This commission had been created to bring the railroads into subjection to the law, but the times were particularly un- favorable for carrying out any disciplinary measures. The financial stringency following the panic of 1873 had increased rather than abated. The railroads of the state were on the verge of bankruptcy. Money was very scarce under the most favorable circumstances, and bankrupt railroads under the ban of the law could offer no alluring inducements to men with capital. Naturally enough, men in railroad circles believed that this ban must be remoA^ed. State Senator Drake, presi- dent of the St. Paul and Sioux City railroad company, in a letter to J. A. Kiester, said: "It may as well be laid down at once as a maxim, that no money will be furnished by capi- talists from abroad or at home, to build roads, until by judicial decisions or otherwise the absolute control of roads when built will belong to those who built them. ' ' "'' The railroads felt themselves aggrieved. There was little or no business, and they were in no mood for reducing rates. In Wisconsin a new railroad law became operative by publica- tion April 28. President Mitchell, of the Chicago, Milwaukee and St. Paul railroad, immediately notified the governor of that state that the board of directors on the advice of able 676. Owatonna Journal, Apr. 9, 1874. 677. See Farmers' Union, Apr. 11, 1874, p. 109, u. 3; Resolutions of Dodge County Council. 678. Anti-Monopolist, Ded. 24, 1874; Mr. Parsons' Address. 679. Anti-Monopolist, July 23, 1874; Mr. Drake on Railroads. 154 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. counsel, and after due delibera.tion, believed it their duty to disregard so much of the law as attempted arbitrarily to fix rates of compensation for, freight and passengers."''" When this became known, it was quite generally believed that the railroads in Minnesota would do likewise, and the people did not like the prospects of lengthy and expensive litigation which eventually might bring no relief."^^ The commissioners published their schedule of maximum legal rates in August. In preparing this schedule they could not be guided by any rule of remunerative interest or divi- dend on legitimate cost and operating expenses, for, excepting the River Division of the Milwaukee and St. Paul, the rail- roads were not earning remunerative revenues. ■ Two rail- roads were in the hands of the receiver, three had defaulted in interest of debts, and others maintained credit by assessment on. stockholders."^^ But, though operating at a loss, they were guilty of unjust discrimination and of excessive charges at non-competing points. The commissioners tried to interfere as little with the control and regulation of the roads by their owners as was consistent with the prevention and correction of such abuses. The schedule published by the railroad commissioners di- vided freight into four main classes and ten special classes. Articles of freight were arranged alphabetically under each, and following this list of freights came a statement of what each road might charge for each class according to the dis- tance transported. Rates were somewhat different on different roads, but the same rates were applicable on all parts of the same road.""' The avowed aim of the commissioners was not to reduce rates but to remedy abuses. According to the law of 1874, competition at a certain point did not constitute a valid ex- cuse for lowering rates to and from that place. If the sched- ule of the commission had been rigidly enforced, rates would 680. Wisconsin Railroad Commission Report, 1874, app., pp. 1-4. 681. Minneapolis Daily Tribune, July 16, 1874. 682. Railroad Commissioner's Report, 1874, p. 6. 683. St. Paul Weekly Pioneer Press, Aug. 6, 1874, Supplement, gives ofBcial publication of schedules. RAILROAD LEGISLATION IN MINNESOTA. 155 have been raised at the so-called competitive points and low- ered at the intervening points. ' The competing points were as a rule centers of popula- tion and of industry. To a large extent they had been made so through railroad discrimination. Any increase in rates would naturally meet with protest at such places. The railroad companies in Minnesota, unlike those in Wis- consin, did not openly refuse to comply with the new sched- ule. As stated in New York Tribune editorials, the railroads rather expressed their intention of trying to accommodate themselves to the new rates.'^* When the schedule went into effect legally, the railroad companies actually raised rates at a number of places, and the opponents of the new law attacked it violently. The Anti-Monopolist called it a fezle and a fraud, and held it to be quite natural that the railroads should accept the schedule of the commission.'*'* The St. Paul Dispatch said the "Grange ironclad railroad law" worked reform with a vengeance, and went on to show how rates had been raised on the St. Paul and Pacific.'*" The reduction of rates at non-competing points was slight and was no source of great satisfaction to the farmers. Any reduction made at such places was more than counterbalanced in the minds of the people by raised rates at other points. Where the traffic was small and the rates were lowered, the railroad companies gave slower and inferior service, besides withdrawing from service as many trains as they possibly could. They informed their patrons that they were losing money as it was and consequently had to reduce expenses in all ways possible. The St. Paul and Sioux City threatened to withdraw a passenger train on their line unless they were per- mitted to charge five cents per passenger mile. The people along the road petitioned, the railroad commission to permit this charge, and the commission complied with their request. The Owatonna Journal in commenting on this incident say's: 684. New York Daily Tribune, Aug. 5, 1874, p. 4, c. 4, "The Railway Problem in Minnesota;" Aug. 10, 1874, p. 4, c. 3, "Minding Other People's Business." See also The Railroad Gazette, Aug. 15, 1874, p. 814; Anti-Monopolist, Aug. 13, 1874. 685. Anti-Monopolist, Aug. 13, 1874. 686. St. Paul Daily Dispatch, Aug. 6, 1874. • 156 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ' ' Tally one for the company. What company will next threaten to withdraw a train?" °^^ The railroad commissioners had to deal gently with the bankrupt companies and this attitude was frequently inter- preted as an indication that they were in "cahoots with the railroads." The commission cost the state ten thousand dol- lars a year. This was a material increase in state expenses, and it was feared that expensive litigation would add to the burden. The grangers did not work in harmony, and this in- ternal discord had a deadening effect. Besides appointing the so-called lobbying committee, which met with so much disfavor, the State Grange executive com- mittee also appointed a special committee to investigate and report on the Minnesota Farmers' Mutual Fire Insurance Association, popularly called the Farmers' Association."^^ This organization had started in 1865 as a farmers' association for mutual aid in case of fire, and was incorporated under the laws of the state in 1867.°*" It was extensively advertised in the Farmers' Union, which began publication as a monthly in August, 1867. Mr. W. A. Nimocks, the editor of this Minne- apolis farm paper, was secretary of the association. In 1869 its membership numbered over four thousand,""" and it claimed to insure at the rate of seventeen cents per thousand dollars.""^ In 1873 the State Grange took preliminary steps towards ab- sorbing the association, and a committee appointed by the State Grange to investigate made a very favorable report to the state convention in December. They reported fifteen thou- sand farmers insured, one hundred thousand dollars paid out in losses, and insurance at one-third the usual cost.""^ But the committee appointed by the executive committee presented a far different report. The company was declared unsound. They claimed that there was only $50,762.15 on hand to meet the liabilities of 12,752 policies covering $9,622,084, 687. Owatonna Journal, Deo. 3, 1874, 688. Farmers' Union, March 7 ,1874. 689. Ibid., Aug., 1867, Vol. 1, No. 1. 690. Ibid., Aug., 1869. 691. Ibid., April, 1869. 692. Ibid., Dec. 27. 1873. RAILROAD LEGISLATION IN MINNESOTA. 157 and condemned the business management of the enterprise.""' This adverse report greatly exasperated the grangers. They believed that the chairman of the committee, Mr, Sherwood, had for personal reasons tried to discredit the association.'"^ Its officers immediately published a lengthy reply to this re- port and assured the public that the association was sound to the core,'"' and it seems that they were given greater credence than Mr. Sherwood's committee. The Patrons had from the beginning been interested in co-operation. They had frequently tried to unite and elimi- nate the "middleman's profit," and while many of their ven- tures were not particularly successful it was generally believed that their activities had forced retailers to reduce their prices materially. In 1873 the executive committee of the State Grange had appointed a state agent to carry out co-operative plans. The agent, Mr. J. S. Denman, on his own responsibility organized a Patrons' Co-operative Society and incorporated it. He made the headquarters of the society at Winona, but planned to establish sub-agencies in the different counties. No distinction was made among those who dealt with the so- ciety, a small commission being charged of all whether patrons or not.'"" Mr. Denman 's announcement of his plans created a great stir. He was denounced as a middleman because he charged a regular commission. He was accused of having acted with- out authority in incorporating the state agency. His action was officially investigated and declared illegal. The State Grange, at its meeting in December, 1873, would not recognize him as its agent nor sanction any of his acts."'"' Nevertheless the grange proceeded to create the office of state agent, at- taching a salary of fifteen hundred dollars, and unanimously elected Mr. Denman to this position.'"* But though the lead- ers tried to smooth over the difficulty, the mistrust and ill feel- 6^93. St. Paul Daily Dispatch, Feb. 25, 1874; Farmers' Insurance Com- pany (a four column report). 694. Farmers' Union, March 7, 1874. 695. St. Paul Dispatch, March 3, 1874, "The Other Side." 696. Farmers' Union, Nov. 22, 1873, "The 'fifth wheel' Ln the Grange;" Dec. 13, 1873, "What is it?" Dec. 20, 1873. 697. Ibid., Dec. 27, 1873; "The Duty of the Patrons." 698. Ibid. 158 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. irig was not altogether swept away. Many who had been at- tracted to the order because of its co-operative features were disappointed and lost interest in the grange work. State Master Parsons had in a large measure checked the formal participation of grangers in the campaign of 1873. Mr. Donnelly's plan to create a new granger party had mis- carried, but nevertheless the granges had been an important factor at the polls and in the legislature. In the winter of 1874 Mr. Donnelly resumed his efforts to organize an independent anti-monopoly party. The anti-mo- nopolist members of the legislature fnet while the legislature still was in session, and a committee of five was appointed to prepare an address to the people of the state.°°' The address aimed to show that what good had been accomplished by the legislature was to the credit of the anti-monopolists, and that the best measures and real reform had been blocked by the Republican majority. All friends of reform were invited to meet in every township of the state June 27 to elect delegates to cotinty conventions.'""' There were at the time over three hundred active granges in the state. William Paist, secretary of the State Grange, was chairman of the committee which prepared the anti-monopolist address. Nominally through him, the anti-monopolist address and circulars were sent to all the granges of the state to be read at their meetings.'"^ Later Mr. Donnelly assumed all responsibility.'"^ This irregular proced- ure met with the approval of some grangers,'"^ but on the whole it seems to have been strongly resented. For instance, the Lone Cedar Grange, in a spirited reply to the request to have the anti-monopolist circulars presented to the grange by its officers, treated this request as an insult, because grange officers were under solemn obligation not to use their position to influence any member in matters of politics or religion.'"* A prominent Patron of Hennepin county sent in a com- plaint to Grand Master Adams of the National Grange, and 699. Address of the Anti-Monopolist Party, 1874. 700. Farmers' Union, March 14, 1874. See also Address of the Anti- Monopolist Party, 1874. 701. Farmers' Union, March 21, 3 874. 702. Ibid., May 30, 1874. 703 Ibid., March 21, 1874; letter from "A Burns Granger." 704. Ibid., June 13, 1874. RAILROAD LEGISLATION IN MINNESOTA. 159 received the following reply: "I have no doubt but the Mas- ter of your State Grange will promptly apply the correction to any subordinate grange that will so far forget its constitu- tional obligations as to take part in partisan politics. I fully agree with you that our Order must not, as such, become a political organization ; but I most earnestly hope that our mem- bers will be true to their duty as American citizens and take an active and prominent part in moulding the institutions and laws of our country.""' State Master Parsons then published the following notice, dated July 11, 1874: "Upon any complaint made to me that any Grange in this jurisdiction has violated article XIII of the constitution of the National Grange [prohibiting political activity], I shall not hesitate to suspend that Grange and ask the Worthy Master of the National Grange to revoke its char- ter upon proof of guilt after hearing." """ Mr. Donnelly immediately began an attack on Mr. Par- sons for this action, accusing him of having issued the notice for partisan purposes, namely, as in 1873, to save the Eepub- lican party from disruption. Again a lively discussion was evoked. Those who had joined the order to secure legislative reform were not content "to amuse themselves with running little parlor machines while others ran the government."'"' The more radical members looked upon Mr. Parsons' action as despotic, and became thoroughly dissatisfied with the order. Men of all sorts of opinions had joined the grange, and often for widely differing purposes. In the enthusiasm of or- ganization each one confidently looked to the order for the realization of his ideals. The work of organization continued to flourish and the number of granges was greatly increased,'"^ but misunderstandings and disputes are fatal in any fraternal order. "While the growth of the order was at its height, re- ports began to spread that it was dying. As early as January, 705. Anti-Monopolist, July 30, 1874. 706. Ibid.,July 30, 1874. 707. Ibid., July 16, 1874; letter from Lewis Porter, a, Patron, to the Rochester Record and Herald. 708. Grange Advance, Dec. 22, 1874, Meeting of Minnesota State Grange. State Master Parsons reported the organization of 142 granges in Minnesota, and 12,000 in the United States and Canada, during the year 1874. 160 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. 1874, while granger legislatures were in session in several states, The Nation had almost prophetically said: "The farm- ers' movement, politically considered, has indeed passed in the last few months througk the various stages of progress from birth to decay and dissolution, to which all movements of the sort seem nowadays to be destined. ' ' '"" This publication was not in sympathy with the farmers' movement,'^" and was not blinded by enthusiasm for its progress. The Grange, however, protested life and vitality. In De- cember the Grange Advance gives as a news item that there were at that time 21,472 organized granges in the United States, an increase of 364 during the last month. It then asks, Does this look much like dying? But the item is immediately followed by this comment: "Patrons who are now will- ing to desert the field on account of some little neighborhood troubles or personal differences are like men who have plowed the ground, obtained and sowed the seed, and watched the crop to maturity, refusing to harvest because neighbor Jones, or Smith, or Jenkins, have killed their bull pup. ' ' "^ It is evident that the patrons themselves recognized signs of dis- loyalty and indifference within their ranks. The campaign conducted in Minnesota in the summer and fall of 1874 was not very exciting. Hard times dampened the enthusiasm of the people. Mr. Donnelly failed to arouse the interest of the farmers in his Anti-Monopoly party, and the grangers seem to have taken no active part in the campaign in any way.'^^ The question of railroads and monopolies did not come up for serious discussion. At the election the Republi- cans elected twenty-four state senators, and the Democrats seventeen. Sixty Republicans and forty-six Democrats were elected members of the lower house. The State Grange met in Mankato December 15, 1874. In 709. The Nation, vol. 18, p. 55, "The Farmers' Future." 710. Ibid., vol. 16, see Index, under The Week, "Railroad excite- ment in Illinois;" p. 249, "The Farmers' Clubs, and the Rail- roads;" p. 329, "The Latest Reform Movement;" p. 397, "The Grangers and the Judges;" vol. 17, see Index under The Week, "Farmers' Fallacy," etc.; vol. 18, pp. 55, 325, 340, 294, "The Cheap Transportation Report;" vol. 19, p. 36, "The Granger Method of Reform;" p. 199, "The Right to Confiscate." 711. Grange Advance, Dec. 22, 1874, P. of H. column. 712. Record and Union, Deo. 11, 1874. RAILROAD LEGISLATION IN MINNESOTA. 161 his opening address State Master Parsons strongly condemned the new railroad law, asserting that the operation of that law as executed was an actual aggravation of the evil. He be- lieved, however, that one end had been gained, namely, that "We hear no more of chartered rights above and beyond the power of the legislature to restrict. For reasons obvious to the dullest understanding, the corporations affected, with one accord, make haste to yield a ready obedience to the behest of the Commissioners. The fault of this condition of things is not to be found in the provisions of the law itself, but in the execution of those provisions. The measure which we had fondly hoped would afford a relief from our burdens, has been turned against us and made an agent of still greater oppres- sion.""^ He reported some progress during the past year by way of securing competition among sellers and thereby reducing the prices of all goods bought by the farmer. He believed that cheaper transportation could be secured on the same principle by bringing water transportation into competition with the railroads.''* At this convention the following resolutions were drawn up and were adopted, it is said, with enthusiasm : Whereas, One ot the greatest causes of the general industrial de- pression is the want of cheap means of transportation to the sea- board; and Whereas, This result can only be obtained by competition, secured by the opening of water channels between the Mississippi and the ocean by way of our lakes and rivers; therefore. Resolved, That we cordially endorse the report of the select com- mittee on transportation submitted to the Senate during the first ses- sion of the Congress. * * * * Resolved, That the present state law for the regulation of rail- roads is expensive and useless to the people and vexatious to the roads, and we demand its repeal, and in the name ot 20,000 voters we demand the passage of a law that shall guarantee cheap transporta- tion for the productions of the farm, especially wheat. Resolved, That we propose to exercise our right of franchise in defence of our own interests, and we promise to act unitedly at the 713. Anti-Monopolist, Dec. 24, 1874; Grange Advance, Dec. 22, 1874. 714. Ibid. 11 162 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ballot box against those who prove themselves hostile or Indifferent to our welfare. Resolved, That while religion or politics should not be discussed in the work of the Order, we hold that each Grange has a right, and that it is a duty, to discuss and understand all the great economic questions of taxation, which underlie our prosperity as a people, and that we propose to exercise that right, regardless of its effects upon political parties or politicians. Resolved, That Minnesota's true outlet for her production to Eastern markets is via Lake S'uperior, and we call upon the legisla- ture of the state at its coming session to make an appropriation for a survey of the watershed between the St. Croix and Lake Superior to ascertain the best route and the lowest cost of a canal between them.715 The Grange also endorsed the project of opening the Pox and Wisconsin rivers that the people of the Northwest might have another opening by water to the Great Lakes. These resolutions would seem to indicate that the grangers still had an interest in polities. They here proposed a defi- nite legislative program, and while they did not come out as a new political organization they did pledge themselves to act unitedly at the ballot box against candidates who were hos- tile or indifferent to their plans. They tried to make a distinc- tion between politics and partisan politics, which does not seem to have been made clear to anyone. As was said in a letter to the Anti-Monopolist : ' ' The great question is settled at last. The Grangers can discuss whatever they please except partisan politics. As no one has ever even wanted to discuss partisan politics, not even Donnelly, I suppose those little creatures who were in favor of the 'hush up policy' will hide their heads in shame and silence. If State Master Parsons had said 'partisan politics' there would have been no controversy about the mat- ter." "« Col. Samuel B. Adams was elected State Master to suc- ceed Mr. Parsons. Mr. Donnelly tried to make political capital out of this fact, construing it as a disapproval of Mr. Parsons' action in forbidding political activity on the part of granges. In the Anti-Monopolist he said: "The State Grange draws a 715. Anti-Monopolist, Dec. 24, 1874. 716. Ibid., Aug-. 13, 1874. RAILROAD LEGISLATION IN MINNESOTA. 163 long breath of relief. The old man of the mountain who had so long ridden it is no more. Parsons is dropped out of sight deeper than plummet ever sounded. * * * He preserved the Republican party in power at the expense of the Patrons of Husbandry. He tried to emasculate the Order and to reduce its members to silence and nothingness. But for his presence we should today have one thousand subordinate Granges in Minnesota, instead of five hundred."'" With a new state master and a set of resolutions so strongly tinged with politics, the State Grange to all appearances was about to enter the political arena. As a matter of fact, how- ever, the grange masters in convention did not by these reso- lutions truly express the sentiments of their subordinate granges. The resolutions were not the spontaneous product of grange enthusiasm. They not only failed to arouse enthusiasm, but in many instances they met with determined opposition. Several subordinate granges passed resolutions protesting against the demanded repeal of the railroad laws.'^^ The grangers were not prepared to take any united action at the ballot box at this time. Many believed that Mr. Donnelly was back of this movement, and later in a speech in the state senate he acknowledged his authorship of the resolutions.'^'^ Mr. Parsons was not re-elected state master, but to con- strue this as a disavowal of his policy of keeping the grange out of politics does not seem to be warranted. Mr. Donnelly, as we have seen, was bitterly opposed to Mr. Parsons person- ally, and undoubtedly had influence in bringing about his de- feat. But Colonel Adams, a war Democrat, who was elected to succeed him, was in favor of the same general policy as Mr. Parsons, and he says that this question did not come up as an issue in the election.'^" 717. Ibid., Deo. 24, 1874. 718. Rochester Post, March 6, 1875. 719. Owatonna Journal, March 4, 1875. 720. In an interview at his home in Minneapolis, July 27, 1909. 164 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. CHAPTER XV. THE GRANGER LAWS REPEALED AND A NEW RAILROAD LAW ENACTED IN 1875. The railroad law of 1874 had proved disappointing. It was enacted to curb the arbitrary power of the railroads and to make them amenable to state control; but, owing to the finan- cial stringency following the panic of 1873, it had been im- possible to give it what its friends would call a fair trial. Business was at a stand-still, and the railroads were unable to meet their obligations incurred in times of optimism and pros- perity. At the State Grange an attempt had been made to re- vive interest in further railroad regulation, but it met with no hearty response. By the winter of 1875 the state press had come to an almost unanimous decision in favor of an about- face in the railroad policy of the state. The St. Paul Press considered the practical results of the law "mischievous in the extreme," and believed it "univer- sally demonstrated, because experience has painfully admitted, that the experimental legislation of last winter in this state was a disastrous mistake," though administered leniently."' The Minneapolis Tribune characterized the farmers' move- ment as a senseless railroad war. In its judgment ' ' ten years will not suffice to repair the injury to the state which the law has inflicted. * * * The railroad war of the West is re- sponsible to a great degree for the hard times of which we have been complaining so much recently. ' ' '^^ The St. Paul Dispatch said: "The mistake which has been made in this war upon railroads is now very generally con- ceded, and few have the temerity to Jonger attempt to ride upon the commune sentiment as a political hobby. ' ' '^' And again : ' ' The comments of the Stillwater Messenger, reprinted elsewhere, reflect the sentiment of nine-tenths of the people of 721. The St. Paul Daily Press, Feb. 26, 1875, p. 2, c. 1; "Repeal of the Railroad Law." 722. The Minneapolis Tribune, March 5, 1875, p. 2, c. 1; "The New- Railroad Law." 723. St. Paul Daily Dispatch, Jan. 21, 1875, p. 2, c. 2; "Paralyzing Business." RAILROAD LEGISLATION IN MINNESOTA. 165 Minnesota. We can call to mind but three newspapers ^^* of the state, which have given expressions to opinions in favor of the present law or any law regulating railroads. We know the business portion of the community desire to see the rail- road restriction removed. ' ' '^' The St. Cloud Press observed : ' ' Never before in this coun- try have the railroad interests felt the result of unjust laws more than now. Never before have the people felt the result of these laws with the same bitterness as now.'^^' -The Grange Advance, a grange organ, in discussing the law of 1874, said: "It was an illy advised laAV gotten up in a hurry near the close of the session as an excuse for not doing anything else, providing for three commissioners who should stand between the people and the legislature and bear the odium of the failure. ' ' ''" The Wisconsin State Grange in its annual meeting, Jan- uary 14, 1875, in speeches and by resolutions, called for modifi- cations in their granger laws."^ The Wisconsin railroad com- missioners reported that the Potter law had proved a failure.^^^ Governor Taylor likewise frankly admitted that railroad reg- ulation in Wisconsin had not been a success. ■'^° News of this kind was circulated freely by the press in Minnesota. When the state legislature convened in St. Paul in 1875, it seemed that the "country press joined with the city press in demand- ing such modifications in the legislation as will enable railroads to operate at a fair profit. ' ' ^^^ Mr. Bdgerton, one of the railroad commissioners, made a 724. These probably were the Rochester Post (see Feb. 27, 1875), Owatonna Journal (see March 4, 1875), and Record and Union (see Feb. 5, 1875). I found no other papers that stood by rail- road control, and these recognized tlie sentiment against it. 725. St. Paul Daily Dispatch, Feb. 9, 1875, p. 2, u. 1; "A very gen- eral sentiment." 726. Reprinted in the St. Paul Daily Dispatch, Jan. 19, 1875, p. 3, c. 1. 727. Grange Advance, March 2, 1875. 728. St. Paul Daily Dispatch, Jan. 19, 1875. 729. Ibid., Jan. 9, 1875, p. 3, c. 1; St. Paul DaUy Pioneer, Feb. 17, 1875, p. 2, c. 1; "The Potter Law." 730. St. Paul Daily Dispatch, Jan. 2], 1875, p. 2, c. 2; "Paralyzing Business." 731. Minneapolis Tribune, Jan. 16, 1875, p. 2, c. 1; "Steps that should be retraced;" reprinted in St. Paul Daily Dispatch, Jan. 21, 1875, p. 2, c. 2. 166 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. speech at Mantorville which became generally known as the "confiscation speech." The St. Paul Pioneer in commenting on the address said: "He shows that he has compelled the Winona and St. Peter railroad to run at a cost of $30,000 a year beyond their receipts, and then he asks : Now let me ask any responsible man if he would advise any greater reduction on this road till the results of a few months would demonstrate its possibility. In other words he says, Can we put our hands deeper into the pockets of the owners of this road, until we find whether, after the end of a few months, they have any more money left for us to take." The paper goes on to char- acterize the plan of the railroad commission as a cool and de- liberate scheme of legalized plunder. ^^^ The Owatonna Press declared: "A gang of highway rob- bers would not improve this statement. Not content with tak- ing away all the profits of the "Winona and St. Peter road, the owners are compelled to lose over $30,000 yearly. * * * Is there any wonder there is 'hard times?' Let justice be done though the* heavens fall. ' ' ''^'^ Strange as it may seem, the Winona and St. Peter railroad company, which had been the main factor in exciting the railroad war in 1870, and which again in 1873 had been the chief object of attack, was now pictured as suffering injustice at the hands of men who had been appointed to bring relief to an oppressed people. The general belief seems to have been that the granger movement was more or less directly the cause of the financial depression. The railroad law and the panic became associated in the minds of the people as cause and effect, — they were now suffering the "quick return which communism always reaps for aggressive assaults upon the bulwarks of national exist- ence. "^^'^ It may be true, as Governor Davis said in his message to the legislature in 1875, that Minnesota was not so badly af- fected by the panic as other states, but, after, all, this was poor consolation. The commercial and industrial interests, and par- 732. St. Paul Daily Pioneer, Jan. 16, 1875, pp. 2, c. 1; "A Railroad Commissioner's Boast and Petition," 733. St. Paul Daily Pioneer, Jan. 16, 1875, p. 2, u. 3; "Another Opin- ion upon Commissioner Edgerton's Confiscation Speech." 734. Ibid., Feb. 26, 1875, p. 2, c. 1; "The People and the Railroads." RAILROAD LEGISLATION IN MINNESOTA. 167 ticularly the railroads,'^^ were the first to suffer, but the ef- fects of the panic were soon shared by the farmer as well. The grangers had looked to the legislature for relief from railroad oppression, and the granger laws had been enacted for their benefit. The railroads now complained that these laws were oppressive and confiscatory, and that they would never regain credit while such laws were in force. Railroads, "reduced to penury and starvation" and compelled by law to serve the public at rates "far below cost," were no longer oppressors, but victims of oppression. The idea became more and more prevalent that something must be done to help the prostrate railroads and to restore prosperity. The grangers had never planned to cripple the railroad industry. They had meant to control the roads for the public interest. Though no longer militant, they had no inclination to give up their contention that the state had the right to control railroads. Some change in policy seemed necessary, but many were reluctant about ac- cepting radical changes. When the legislature met in Januarj^ 1875, the senatorial election appeared to be of greater interest to the people and to the legislators than railroad legislation. No one seemed to have very definite ideas as to just what should be done, and no one seemed anxious to commit himself on the railroad ques- tion."" The governor in his message characterized the railroad law of 1871 as crude in its conception, harsh towards the people it intended to benefit, and unjust to the weaker railroads, its sole value lying in the fact that it asserted the right of the legisla- ture to protect the people against excessive rates and unjust discriminations, and that it had been upheld by the courts. But on the whole he favored the law of 1874. ' ' Statutes, ' ' said he, "are generally vindicated or condemned by their results. The statute has resulted in the substantial abolition of local discrimination. ' ' ^'^ The railroad commission could not present a very gratify- 735. The Railroad Gazette, Sept. 27. 1873; "The RaUroads First Affected by the Financial Crisis." 736. St. Paul Daily Dispatch, Jan. 28, 1875; "Where are the Gran- gers?" 737. Minn. Exec. Docs., 1874; Governor's Message. 168 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ing report. Two railroad companies were in the hands of re- ceivers, three had defaulted in interest of debts, and the others had maintained their credit only by levying assessments on their stockholders. '''^ They had interfered as little with the railroads as was consistent with the prevention and correction of abuses. The commission believed that the main benefit of the law was that it at an early stage asserted the right of the state "to so far regulate and control these indispensable and beneficent agencies of material and social development as to protect the people from evils and oppressions that are felt in older communities," and that "the certain effect will be to check and repress the growth of evils that have scarcely any present existence here, but which the experience of older states demonstrates are sure in time to develop."'^' In actual operation they had found the pro rata principle too inflexible, and recommended changes looking toward flex- ibility, that "the rates may be varied to equitably adapt them to the circumstances affecting cost and profit of service on different parts of the same road."'^° When the railroad question finally was taken up for discus- sion, little enthusiasm was shown one way or another. Mr. Morse of Minneapolis introduced- a bill in the House, which substituted a single advisory commissioner for the strong rail- road commission under the law of 1874. This bill was favor- ably acted upon without any particular discussion in the com- mittee of the whole, but when it came up for the final reading in the House, Mr. Brown, who opposed the bill, protested that it was being rushed through without due consideration. He admitted that a reaction had taken place in the minds of the people, making them more favorable to the railroads than be- fore, but he objected to creating the office of railroad com- missioner with merely the clerical powers of gathering sta- tistics and reporting to the governor.'*^ Mr. Egan, in support of the bill, tried to show that the evils to be remedied were future rather than present evils, as indicated in the railroad commissioner's report, and therefore he thought the Morse 738. Minn. Railroad Commissioner's Report, 1874, p. 6. 739. Ibid., p. 9. 740. Ibid., p. 8. 741. Record and Union, March 6, 1875; "Tiie Legislature." RAILROAD LEGISLATION IN MINNESOTA. 169 bill sufficient under present circumstances. Mr. I;istoe, another representative, said on the floor of the House that some farm- ers howled for railroads, and some against them. His people howled for them, and hence he would encourage them by vot- ing for the bill.'*2 The Morse bill passed the House by a large majority, but met with greater opposition in the Senate. The Senate com- mittee on railroads reported against a repeal of the existing law,^*' but later a joint committee on railroads agreed to re- port favorably on the new bill.'** The reports of the Massa- - chusetts railroad commissioner, Mr. Adams, seem to have ex- erted a considerable influence at this time. Mr. Adams' opin- ion was that "the only effective restraint upon railroad cor- porations, consistent with the freedom of action absolutely necessary to successful management of their complicated busi- ness, is the moral one of public opinion. * * * He says in substance that experience has demonstrated that no railroad company will persist in palpable abuses in the face of official exposure, backed as it is sure to be by public opinion. ' ' '*^ Arguments of this nature gave the bill under consideration a strong theoretical justification. It was not to be considered a mere repeal of the old law, but rather a positive measure based on good sound principles. The bill did not pass the Senate without a struggle. A number of the Anti-Monopolists of the previous year rallied to the support of the law of 1874, which was about to be repealed. While they did not favor some of its details, they were in sympathy with the principle of state control underlying it. Senator Coggswell, one of their number, denied that the law had injured the railroads. He attributed the cessation of rail- road construction to want of capital seeking investment, to the absence of land grants, and to the general lack of confidence among capitalists in railroads and business management.'*" Senator "Westfall disowned the law of 1874 as the offspring 742. Ibid. 743. St. Paul Daily Dispatch, Feb. 12, 1875, p. 2, c. 2; "The Railroad LtSL'W." 744. St. Paul Daily Press, Feb. 26, 1S75, p. 2, c, 1; "Repeal of the Railroad Law." 745. Ibid. 746. St. Paul Daily Dispatch, March 3, 1875, p. 2. 170 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. of the grange movement, considering it merely a compromise measure. He proposed, however, "to hold and stand on the ground already taken, — that the people have a right to reg- ulate freights and tariffs. ' ' ''" Senator Donnelly also spoke vigorously against the bill. He had voted against the law of 1874 at the time of its enactment, but he "preferred it to no law at all." '^8 Those who favored the bill did so for various reasons. Sen- ator Graves "voted for the bill only out of consideration for the impoverished condition of the railroads ; " '*" Senator Doughty because there was nothing to the bill but repeal."" Senator Knute Nelson favored a simple repeal instead of this "sugar-coated" bill. He "preferred to take his medicine straight, but was compelled to take it as it was offered." His constituency were anxious to secure railroads and were of the opinion that the existing law kept capital out of the state.'"' There was little enthusiasm for the Morse bill as a positive measure. It passed the Senate by a vote of twenty-eight to thirteen, and was approved by the governor. '^- The new law '"'^ provided for one railroad commissioner, to be elected at the general election for a term of two years. He was required to give ten thousand dollar bonds, approved by the governor, for the faithful discharge of his duties.'"* His salary was fixed at three thousand dollars a year, and provi- sion was made for a secretary at a salary of twelve hundred dollars.'''' It was made the duty of the commissioner to inquire into the neglect or violation of the laws by the railroad companies or by their employees and officers, to inspect each railroad and its equipment with special reference to public safety and con- venience, and to investigate as to financial condition and man- 747. Rochester Post, March 6, 1875; "Westfall Law." on the Railroad 748. St. Paul Daily Dispatch, March 3, 1875, p. 2, c. 4. 749. Ibid., March 4, 1875, p. 2; Morse Bill passed. 28 to 13. 750. Ibid. ■ 751. Ibid. 752. Ibid. 753. General Laws of Minn., 1875, ch. 103. 754. Ibid., sec. 1. 755. Ibid., sec. 2. RAILROAD LEGISLATION IN MINNESOTA. I7l agement.'"" He was to report annually to the governor, and to make such suggestions and recommendations as he deemed advisable.'^' The president or managing officer of each rail- road company was required to report under oath to the rail- road commissioner annually, on or before October 1/^^ The commissioner was empowered to investigate books and papers, and to examine officers or employees under oath or otherwise. -He was given power to issue subpoenas and to compel obedi- ence in these matters, in the same manner as regular courts of law. "Wilful obstruction or refusal to give testimony was made a misdemeanor punishable by a fine of not over one thousand dollars.'"'^ Eailroad companies were prohibited from charging one per- son or corporation more than another "for a like service from the same place, and upon like conditions and upon similar cir- cumstances;" and all concessions of rates, drawbacks, and contracts for special rates, were to be "open to all persons, companies, and corporations, alike under similar circumstan- ces."^"" Unreasonable charges for any privilege or service on the part of railroad companies was likewise prohibited. ^"^ It was made the duty of railroads, "when within their power to do so, and upon reasonable notice," to furnish suit- able cars to all who applied, and to "receive and transport such freight with all reasonable dispatch," and to provide "suitable facilities for receiving the same at any depot" on their lines."*^ Any railroad company which violated the provisions of this act, as to "extortion or unjust discrimination," was to forfeit treble damages and costs to the aggrieved party. The railroad law of the previous year was repealed, but the repeal was not to affect any pending action.'"^ The enactment of this law meant a definite change of policy 756. Ibid., sec. 3. 757. Ibid., sec. 4. 758. Ibid., sec. 5. 759. Ibid., sec. 6. 760. Ibid., sec. 7. 761. Ibid., sec. 8. 762. Ibid., sec. 9. 763. Ibid., sec. 10. 172 MINNESOTA HISTORICAL.- SOCIETY COLLECTIONS. in regard to railroad control."* The railroad commissioner was given plenary powers to investigate and report, but had no power to prevent or correct abuses. Unreasonable charges, as we noted, were forbidden, but were in no way defined. Discriminations were likewise prohibited, but in such guarded terms that little substantial protection was afforded. The ag- grieved party would have to bring civil action against the railroad company and prove that different charges had been made for "like services from the same place and upon like conditions and similar circumstances," or must show in court that the charges were unreasonable, or that cars had not been furnished upon reasonable notice, when it was in the power of the railroad companies to do so. Discriminations and extor- tions were no longer offences against the state and punishable as such. They were again placed within the domain of private law, and the individual aggrieved must himself bring action, and must stand the cost in case of an adverse decision. The legislature also passed "An act for the protection of exporters of grain from this state." ^°' According to this law, "common carriers" doing business within the state and en- gaged in the transportation of grain, were required to give a receipt for the amount of grain received and were bound to deliver the same amount to the destination, allowing a max- imum of forty-five pounds loss per carload during transporta- tion. Refusal to give such a receipt when demanded made the company liable to a fine of from ten to fifty dollars. In case of refusal or neglect to deliver the amount of grain so receipted, the common carrier was made liable for all loss be- yond the legal maximum, and was subjected to a fine of fifty to one hundred dollars for each offence. All prosecutions un- der this act were to be made in the name of the state, under the direction of the attorney general.'""' The purpose of this law was to remedy the "shortage and stealage" abuse against which the farmers and independent shippers had so long contended. The railroads were here called common carriers and the legislature undertook to regulate 764. See the Railroad Gazette, March 13, 1875, p. 109, "Minnesota Railroad Laws;" The Nation, vol. 20, p. 183. 765. General Laws of Minn., 1875, cb. 88. 766. Ibid., sec. 3. RAILROAD LEGISLATION IN MINNESOTA. 173 them in their transportation of grain. The penalties under the law were not severe, but the manner of enforcing them was in striking contrast with the weak provisions of the act cal- culated to prevent discriminations and extortions. These were the important general laws passed at this ses- sion. Numerous special laws were passed authorizing cities, counties and towns to issue bonds in aid of railroads. ^"^ This shows that the people in different parts of the state were anxious to see railroad construction resumed. A number of special laws were passed by the legislature to aid railroads. Two railroads were given state swamp lands.'"^ The St. Paul and Pacific railroad company had its time limit for completion extended, but was bound to charge only just and reasonable rates and to make no unjust and unreasonable discrimina- tions.^'^ The Minneapolis and St. Louis railroad company was authorized to extend a branch line, and its charter rights were made applicable to this branch, provided passengers and freight were carried over the lines, ' ' at such equitable and reasonable rates as may from time to time be fixed by law.""" These acts are a reversion to the previous type of railroad regulation. Direct legislative control of railroad rates, as contemplated by the granger laws, had been given up as inexpedient, but the legislature promptly resumed the plan of regulation by special law wherever possible. The granger legislature of 1874 had passed laws to control railroad rates and railroad management, but, as we have seen, they also memorialized Congress for river improvements and canals, in order to bring a cheaper means of transportation into competition with the railroads. The legislature of 1875, which repealed the granger laws and by joint resolution directed the attorney general to discontinue the suit pending by express order of the preceding legislature against a railroad company to have its charter declared forfeited,^^^ continued the agita- 767. Special Laws of Minn., 1875, chs. 126, 127, 129, 130, 131, 132. 768. Ibid., chs. 51 and 54, the Taylor's Palls and Lake Superior and the Duluth and Iron Range railroad companies, resp. 769. Ibid., oh. 49. 770. Ibid., ch. 63. Other special acts were chs. 50, 52, 57, 58, 64. 771. General Laws of Minn., 1875, p. 218; Joint Resolution No. 19. Suit had been brought against the First Division of the St. Paul and Pacific railroad company. 174 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. tion for extended and improved water transportation. By joint resolution Congress was requested, verbatim as in 1874, to make a survey of the "water routes between the navigable waters of the Minnesota river and the Red river of the North, ' ' to ascertain the feasibility of a canal connection between the two. Surveys had been made of the two rivers and measures were progressing for improving the navigation on the rivers, it is stated in the resolution, but the surveys were not being made with the idea of connecting the rivers and making them a continuous navigation system."^ Congress was in like manner "requested" to survey the Red or Otter Tail river to ascertain the feasibility of improv- ing that river from Fergus Falls upward to where the North- ern Pacific crossed it near Perham.'''^ The senators and repre- sentatives of the state in Congress were urged to use their in- fluence to secure the improvement of the Red river between Breckenridge and Manitoba, ^^* of the Mississippi river at St. Paul,''" and of the Minnesota river. ''" It was believed that navigable streams and canals under the control of the federal government would forever remain in competition with rail- roads and tend to keep down their rates. The Minneapolis and St. Paul papers quite generally en- dorsed the new railroad law. The St. Paul Dispatch had advo- cated the Morse bill from the time it was introduced.''' The St. Paul Pioneer heartily commended it, and congratulated the state upon its passage; for, "While the new measure in no respect abates the principle of state control, it substitutes for the heavy hand of iron-clad tariffs a system which will accom- plish every just reform and at the same time secure capital against the arbitrary persecution which has resulted in blight- ing railroad interests all over the West. By the new bill the interests of the people are amply guarded, while those of the 772. Ibid., p. 213; Joint Resolution No. 10. 773. Ibid., p. 207; Joint Resolution No. 1. 774. Ibid., p. 208; Joint Resolution No. 2. 775. Ibid., p. 210; Joint Resolution No. 5. 776. Ibid., p. 210; Joint Resolution No. 6. 777. St. Paul Daily Dispatch, Feb. 23, 1875, p. 2, c. 1, "A Sensible Bill;" Feb. 26, 1875, p. 2, c. 1, "The Pending Railroad Bill;" March 1, 1875, p. 2, c. 1, "A Political Movement;" March 2, 1875, p. 2, u. 1, "The New Railroad Law." RAILROAD LEGISLATION IN MINNESOTA. 175 railroads are secured against violent and communistic confis- cation. ""» The Minneapolis Tribune said: "The Morse bill virtually restores to the railroad companies the right to manage and control their own property, which right was taken away from them last winter. * * * Thus has our state at last taken a step calculated in the end to repair the in,jury inflicted upon her by the senseless railroad war. "^''' The press outside the Twin Cities was not so unanimous in its approval. The Grange Advance said: "A number of our exchanges are amusing themselves by miscellaneously pitching into the new railroad law. * * * While we do not think it perfect, we cannot agree with the broad assertions that are being constantly paraded before the public in the following style : The Minnesota legislature at its recent session virtually sold out to the railroads and repealed all the legislation of 1874, and left the people at the mercy of the corporations. ' ' '*" The Owatonna Journal was one of the papers here referred to. It came out strongly against the bill and "asserted un- hesitatingly that all the railroad lawyers this side of perdition could not have framed a clause to expressly grant the right of discrimination in better terms or more eflPectively. ' ' ''^'^ Ex- governor Austin wrote to the Journal a letter- commending it on its attitude and characterizing the repeal of the law of 1874, without enacting a better substitute, as a "criminal piece of stupidity and folly." He predicted an early repeal of the "Morse fraud. "^^' The Monticello Times agreed with Mr. Austin that the law of 1874 had not been given a fair trial.'^'' The Rochester Post considered the enactment of the law an "acknowledgment by the legislature that the attempt to fix rates of compensation for transportation services by a differ- ent system from that by which other values are fixed has proved a failure. ' ' ^^* Its tone is quite moderate considering 778. St. Paul Daily Pioneer, March 4, 1875, p. 2, u. 1, "The New- Railroad Bill." 779. Minneapolis Daily Tribune, March 5, 1875, p. 2, c. 1. 780. Grange Advance, March 2, 1875. 781. Owatonna Journal, March 4, 1875. 782. Ibid,, March 25, 1875. 783. Anti-Monopolist, Apr. 15, 1875. 784. Rochester Post. 176 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. its previous stand. The Windom Reporter called the railroad law a farce, and continued: "Common law guarantees as much protection, and the penalties of the new law will have no effect in frightening the railroads to adopt a reasonable tariff." "= The Winona Republican said: "The bill prac- tically amounts to a total surrender on the part of the state of the right to regulate railroads * * * it would be better to have no railroad law at all and save the useless clerk hire."'^« The Anti-Monopolist perhaps came out the very strongest against the repeal of the former law. It called the new law a ' ' sham, a mockery, a delusion, and a snare. ' ' "^ It quoted the Chisago County Post as saying : ' ' The new railroad law is not well thought of by the state press; in fact, there are few papers in the state that do not denounce the law as a sham conveying no meaning whatever. ' ' ''^^ This last statement is too sweep- ing, but enough quotations have been given to show that the new law was not favorably received by all. There were many throughout the state who were disappointed because the gran- ger law of 1874 was not given a longer trial. CHAPTER XVI. THE SIGNIFICANCE OP THE GRANGER MOVEMENT. The repeal of the granger laws in Minnesota and the neigh- boring granger states, following the sudden decline in granger activity, was taken by many as an indication that the granger movement had spent its force and accomplished nothing. But such was hardly the case. The grangers did not succeed in solving the railroad problem, but as a direct result of their revolt against the railroad abuses of their day the fact came to be generally recognized that the people as well as the rail- road corporations have "vested rights," and this was no mean contribution toward its solution. 785. Anti-Monopolist, March 18, 1875, "Tlie Railroad Law;" Win- dom Reporter quoted. 786. Ibid., March 11, 1875, "The New Railroad Law;" The Winona Republican quoted. 787. Ibid., March 18, 1875. 788. Ibid., March 25, 1875. RAILROAD LEGISLATION IN MINNESOTA. 177 Whenever attempts were made to subject the railroads to regulation in the interest of the people, they sought refuge behind the Dartmouth College decision. In this case the United States supreme court had held that the original charter of Dartmouth College constituted a contract between the Crown and the trustees of the college, which was not dissolved by the Revolution, and that an act passed by the state legis- lature of New Hampshire altering this charter without the consent of the corporation impaired the obligation of the con- tract and was therefore null and void.^^° All rights once legally vested in corporations were thus placed beyond the reach of subsequent state legislation. "This decision," said Chancellor Kent approvingly, "did more than any other sin- gle act proceeding from the authority of the United States to throw an impregnable barrier around all rights and franchises derived from the government ; to give solidity and inviolability to the literary, charitable, religious and commercial interests of the country.'"^" This statement, made in 1826, seems al- most prophetic in the light of later developments. The growth of corporate enterprise and the part this decision was to play could not be foreseen, even by such far-sighted men as Mar- shall and Kent. The doctrine laid down in this decision was followed in later cases in federal and state courts, and it soon came to be regarded as a settled principle of American consti- tutional law that charters of private corporations were invio- lable contracts between the legislature and the corporators, and that the subsequent power of the legislature was restrained by their terms.''* This decision did not lead to an amendment of the federal constitution calling for a different interpretation of the provi- sion in question, as did the decision in Chisholm vs. Georgia f^^ but the different states began almost immediately to guard against the interpretation of future charters as inviolable con- tracts by expressly reserving to the state legislature the right 789. The Trustees of Dartmouth College vs. Woodward, 4 Wheaton, 518; decided 1819. 790. 1 Kent's Cora., 392; First edition, 1826. 791. See 94 U. S., 185, Stone vs. Wisconsin, dissenting opinion. 792. 2 Dallas, 419; decided 1793. The eleventh amendment was pro- posed in 1794. 12 178 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. to alter, amend, or repeal acts incorporating private corpora- tions.'^' The first plan was to insert a provision to this effect in the charter when granted,''^'' and soon became quite general. Another plan was to make the reservation of legislative power of amendment or repeal applicable by general law to all fu- ture charters.'^" A third plan was to insert this reservation of power in the state constitution. Beginning with the Dela- ware constitution as amended by a constitutional convention in 1831, we find that by 1866 this provision is to be found in the constitution of at least fifteen different states.'^" From the great amount of legislation and constitutional enactment which it provoked, it is evident that the doctrine promulgated in the Dartmouth College decision was regarded as new and not altogether acceptable by the different states. And as time went on and railroads were built and railroad cor- porations grew in power, the situation became more and more serious ; for the new corporations, though controlling an essen- tial factor in the economic life of the country, claimed exemp- tion from state regulation in the interests of the public they were serving as common carriers, because their charter rights were constitutionally beyond legislative interference. Even where reservation had been made that charters might be al- tered or repealed, it was a matter of grave doubt in some quar- ters whether, after all, this reservation was not an empty for- mula."' If a company had vested rights in the franchises / 793. 10 Barbour, 260, New York Supreme Court, 1851; Amer. Law Review, vol VIII, p. 189 (Jan., 1874), "The Dartmouth College Case." 794. For instance, Laws of New York, 1819, oh. 110, sec. 3; Laws of New Hampshire, 1820, ch. 34, sec. 10. The provision may be found later In charters of most of the states. 795. 1 New York Revised Statutes (1829), 600, sec. 8, — this provision dates from Dec, 1827; Session Laws of Mass., 1830, ch. 81; 3 Public Laws of Maine, ch. 503, approved March 17, 1831. 796. Del., Const, of 1831, art. 2, sec. 17. N. Y., 1846, art. 8, sec. 1. Penn., amend., 1857, art. 1, sec. 26. Wis., 1848, art. 11, sec. 1. Kan., 1859, art. 12, sec. 1. Cal., 1849, art. 4, sec. 31. W. Va., 1861, art. 11, sec. 5. Mich., 1850, art. 15, sec. 1. Nev., 1864, art. 8, sec. 1. Ohio, 1851, art. 13, sec. 2. Md., 1864, art. 3, sec. 51. Orfi.. 1857, art. 11, sec. 2. Mo., 1865, art. 8, sec. 4. fowa, 1857, art. 8, sec. 2. Tex., 1866, art. 7, sec. 31. 797. 1 Amer. Law Rev., 451, 456, ff. (Apr., 1867); "Legislative Con- trol over Railway Charters. '^ RAILROAD LEGISLATION IN MINNESOTA. 179 granted, to what extent would the legislature be authorized to interfere materially with these property rights? And the United States supreme court later did decide that the reserved power of alteration and amendment was not without limit, but that "the alterations must be reasonable, they must be made in good faith, and be consistent with the scope and object of the act of incorporation. ' ' '^* The right of the legislature to control its own creatures, the corporations, was at the time of the granger movement no longer an academic question of political and legal theory; it was a vital question in the economic life of the country, and it had to be faced squarely. Thomas M. Cooley, the eminent jurist, expressed his opinion of the situation in 1873 as follows : "It is under the protection of the decision in the Dartmouth College ease that the most enormous and threatening po^vers in our country have been created ; some of the great and wealthy corporations actually having greater influence in the country at large, and upon the legislation of the country, than the States to which they owe their corporate existence. Every privilege granted or right conferred — no matter by what means or on what pretence — being made inviolable by the Constitu- tion, the government is frequently found stripped of its au- thority in very important particulars by unwise, careless, or corrupt legislation; and a clause of the Federal Constitution, whose purpose was to preclude the repudiation of debts and just contracts, protects and perpetuates the evil. ' ' '^^ In an address in 1873 James A. Garfield criticised the judi- cial application of the Dartmouth College case, and ventured the opinion that some feature of that opinion as applied to the railway and similar corporations must give way under the new elements which time had added to the problem, and said fur- ther : "It will be a disgrace to our age and to us if we do not discover some method by which the public functions of these organizations may be brought into full subordination, and that 798. 95 U. S., 319, 324; Shields vs. Ohio. 799. Cooley, Constitutional Limitations, Third ed., 1874 (preface dated Dec, 1873), pp. 279, 280 note. This statement is not found in the first edition, published in 1867, before the granger movement had brought the question into prominence. 180 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. too without violence and without unjust interference with the rights of private individuals. ' ' *'"' Railroads had from their first appearance been considered common carriers, both in England and in the United States ;*°^ and, this being the case, many failed to see why railroads should not, like other common carriers, be subject to legis- lative regulation. That railroads, though constructed by pri- vate corporations and owned by them, were public highways, had been the doctrine of nearly all the courts since the ear- liest days of railroad construction.*"^ Because they were pub- lic highways for the public benefit, the right of eminent do- main had always been given to them;*°^ and courts had fre- quently held that the public had an interest in such roads, whether they were owned and operated by a private corpora- tion or not.'"* Because railroads performed public duties and functions and were indispensable to the public interests, the state legislature could rightfully tax or authorize taxation for the purpose of aiding railroads.*"" The United States supreme court in 1872 expressed this doctrine in the following words: "A railroad built by a state no one claims would be anything else than a public highway, justifying taxation for its con- struction and maintenance, though it could be no niore open to public use than is a road built and owned by a corporation. Yet it is the purpose and the uses of a work which determine its character. ' ' *'"' The railroads reaped all the benefits of their quasi-public character, but in the matter of business management they claimed to be private corporations subject only to such provi- sions as were to be found in their charters. The railroads may have had some reason to fear the legislatures of the time. On 800. James A. Garfield, "The Future of the Republic, its Dangers and its Hopes;" 5 Legal Gazette (Phila.), 408-9, Dec. 19, 1873. 801. See Redfleld on Carriers and other Bailees (Cambridge, 1869), ch. 3, "Railroads Common Carriers," and cases there cited. 802. Alcott vs. The Supervisors, 16 Wall., 678. 803. Sharpless vs. The Mayor of Philadelphia, 21 Penn. State Re- ports, 147, 169-170; decided 1853. 804. Ibid., 169; 2 Mich., 427; 18 Minn., 482; 56 111., 377-379; see also 3 Wall., 654, 663, and oases there cited. 805. 21 Penn. State Reports, 147; 2 Mich., 427; 3 Wall., 654; for argu- ments contra, see 20 Mich., 462. 806. Alcott vs. The Supervisors, 16 Wall., 678, 696. RAILROAD LEGISLATION IN MINNESOTA. 181 the other hand, the people had grievances against the rail- roads, some imaginary and unfounded, perhaps, but many were very real and substantial, and particularly in the w^estern states the people weve in no mood to permit court decisions of the past to stand in the way of redressing existing wrongs. Lawyers who had not forgotten the Dartmouth College deci- sion began in some places to find themselves ineligible to the elective judiciary."" The courts had always in the past been ready to protect the corporations in their chartered rights, but the people now began to demand that the courts should be equally ready to insist that they perform faithfully to the pub- lic those duties which were the objects of their chartered powers.^"* The granger movement was an attempt on the part of the people to secure control over railroad corporations and to pre- vent extortionate and discriminating rates by legislation, which, according to the usually accepted understanding of the Dartmouth College decision, would be unconstitutional. The granger states were those whose legislatures enacted such laws and provided means for their enforcement. Cases involving the constitutional rights of state legislatures to regulate i^ail- road rates soon came before the United States supreme court from three of the four granger states, namely, Iowa, Wiscon- sin, and Minnesota.^"" The railroads contended that state laws fixing maximum rates, or authorizing railroad commissions to do so, were unconstitutional, because they impaired the obliga- tion of the charter contract, because they virtually deprived the corporations of property without due process of law, and, finally, because such laws were a regulation of inter-state com- merce over which Congress had been given exclusive jurisdic- tion.^'" The constitution of the state of Wisconsin reserved to the legislature the right to amend or repeal charters.*'^ The railroad corporations here argued that this reservation clause must be construed in connection with the fourteenth amend- 807. Martin, History of the Grange Movement (1873), p. 335. 808. See 56 111., 365, 379. 809. From Iowa, 94 U. S., 155; from Wisconsin, 94 U. S., 164, 179, and 181; from Minnesota, 94 U. S., ISO and 181, note. 810. The Chicago, Burlington and Quinoy Railroad Company vs. Iowa, 94 U. S., 155. 158, ft. 811. Const, of Wis., Art. 11, sec. 1. 182 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. ment of the federal constitution, for the right to a reasonable compensation for their services was not a franchise or privi- lege granted by the state, but an inherent right which could not be abridged or impaired by the state, — the question of rea- sonableness was not for legislative but for judicial determina- tion. ^^^ The supreme, court, however, followed the decision it had just rendered in the case of Munn vs. lUinois.^^^ In this case it had held constitutional an Illinois statute which fixed the maximum charges for the storage of grain in warehouses at Chicago and other places in the state having not less than one hundred thousand inhabitants. The court asserted that, under the powers inherent in every sovereignty, a government may regulate the conduct of its citizens toward each other, and, when necessary for the public good, the manner in which each shall use his property; when the owner of property devotes it to a use in which the public has an interest, he in effect grants to the public an interest in such use, and must, to the extent of such interest, submit to be controlled by the public for the common good as long as he maintains the use ; of the propriety of legislative interference within the scope of legislative power, the legislature is the exclusive judge.**" In applying the principle of this decision in the railroad cases the court disappointed the railroads, for they had relied on the Dartmouth College decision as a precedent. It had been so long judicially declared that it was supposed to be no longer open to discussion, that charters of private corporations were inviolable contracts, protected by constitutional guarantees against legislative interference.^'^ The decisions in the gran- ger cases did not overrule the Dartmouth College decision, but they did assert the general principle that a legislature has a right to regulate the compensation for the use of all property and for services in connection with it, the use of which affects the community at large, even though the charter of a company confers upon it the right to charge reasonable rates.*'" The 812. Peck vs. Railroad Company, 94 U. S., 164, 167. 813. 94 U. S., 113; decided 1876. 814. Ibid., see summary. 815. See Stone vs. Wisconsin, 94 U. S., 185, dissenting opinion. 816. Ibid., 186. RAILROAD LEGISLATION IN MINNESOTA. 183 railroads could no longer seek refuge behind the "impregna- ble barrier thrown around all rights and franchises derived from the government" by the Dartmouth College decision.'" As public highways and common carriers, they were held sub- ject to state regulation, and thus were "practically placed at the mercy of the legislature of every state." *^' Later decisions have modified to some extent the principles laid down in the granger cases, and afford the railroads ample protection by a liberal interpretation of the fourteenth amend- ment, which makes the federal judiciary the final judge as to the reasonableness of rates prescribed according to state law.*^° But since the granger movement in the early seventies and the decisions handed down by the federal supreme court in the granger cases in 1876, the railroad corporations have not laid claim to vested rights beyond reasonable legislative control. BIBLIOGRAPHY. The following publications have been examined in the prep- aration of this thesis, many of them being cited in its foot- notes. Acts, Joint Resolutions and Memorials passed by the First Leg- islative Assembly of the Territory of Minnesota, 1849. Republication of Important Greneral I^aws of Wisconsin now in force in the Terri- tory of Minnesota, by Provision of the Organic Act, 1849. (These are published together, and the chapters are numbered consecutively throughout the volume.) Session Laws of the Territory of Minnesota, 1850-1857. (Pub- lished annually; extra session in 1857.) Collated Statutes of the Territory of Minnesota and Decisions of the Supreme Court; collated pursuant to a Resolution of March 5, 1853. St. Paul, 1853. Public Statutes of the State of Minnesota, 1849-58. General and Special Laws of Minnesota, 1858-1875. (Annual ses- sions; no session in 1859; extra session in 1862.) The General Statutes of the State of Minnesota, 1866. 817. 1 Kent's Com., 392, first edition. 818. 94 U. S., 185. See C. F. Adams, Railroads, tlieir Origin and Problems, pp. 127, 129, 147. 819. Cliioago, Milwauliee and St. Paul Railroad Company vs. Minne- sota, 134 U. S., 418, decided March 24, 1890; see dissent by Jus- tice Bradley, p. 461, ft. Reagan vs. Farmers' Loan and Trust Company, 154 U. S., 362. Smytli vs. Ames, 169 U. S., 466. 184 MINNESOTA HISTORICAL, SOCIETY COLLECTIONS. An Analytical Index to the General and Special Laws of the Ter- ritory and State of Minnesota from 1849 to 1875. By John C. Shaw and John B. West. St. Paul, 1876. Journals of the Council and of the House of Representatives of the Territory of Minnesota. (The Legislative Assembly met annually from 1849 to 1857, with an extra session in 1857. The Governors' Mes- sages are found in these Journals.) Journals of the Senate and of the House of Representatives of the State of Minnesota, from 1858 to 1875. No session in 1859. Debates and Proceedings of the Minnesota Constitutional Conven- tion; Officially Reported by Feancis H. Smith. [Democratic.*] St. Paul, 1857. Debates and Proceedings of the Constitutional Convention for the Territory of Minnesota; T. F. Andkews, Official Reporter to the Con- vention. [Republican.*] St. Paul, 1858. Minnesota Executive Documents, 1860-1875. (These contain the governors' messages, auditors' reports, treasurers' reports, etc.) Reports of the Railroad Commissioner for the years 1871 to 1873, inclusive; annual. Report of the Railroad Commissioners for the year 1874. (Under the law of 1874 a board of three commissioners was appointed, and served until the repeal of this law the following year. From 1875 to 1884, inclusive, a single railroad commissioner served and presented annual reports. The present Railroad and Warehouse Commission dates from 1885.) Reports of Railroad Commissions or Commissioners of other states, particularly of Massachusetts, Ohio, Illinois, and Wisconsin. Annual Reports of the Secretary of the Board of Agriculture [of Massachusetts]. Boston; 1854, and onward. A. J. Edgerton [Minnesota Railroad Commissioner], Compilation of the Railroad Laws of Minnesota; St. Paul, 1872. Original Records in the Office of the Secretary of State of Min- nesota, in St. Paul. Minnesota: Its Place among the States; being the First Annual Report of the Commissioner of Statistics, for the Year ending January 1st, 1860. Hartford, Conn. 1860. Second Annual Report of the [Minnesota] Commissioner of Sta- tistics, for the years 1860 and 1861. St. Paul, 1862. Legislative Manuals of the State of Minnesota. * Two constitutional conventions convened independently of each other in St. Paul; for both Democrats and Republicans claimed victory at the polls. Neither convention recognized the other, but unofflcially they compared work as they proceeded and finally agreed upon the same constitution, word for word. The constitution was accepted almost unanimously by the people. The enrolled copy of the Democrats was sent to Washington. The other is preserved in the Library of the Min- nesota Historical Society in the oapitol at St. Paul. See Neill's History of Minnesota, 1858, pp. 627-8. RAILROAD LEGISLATION IN MINNESOTA. 185 Opinions of the Attorneys General of tlie State of Minnesota, 1858-1884; St. Paul, 1884. Session Laws and Revised Statutes of the following states: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Con- necticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, North Carolina, Georgia, Kentucky, Ohio, Indiana, Illinois, Michigan, Wisconsin, Iowa, Missouri, Kansas, Nebraska, and Oregon. (In tracing the origin of the Minnesota territorial railroad charters, special attention was given to the turnpike, canal, plank road, and early railroad charters of these states. See Chapter II.) State Constitutions and the Federal Constitution. State Court Reports of Minnesota, Michigan, Illinois, and Penn- sylvania, cited in this work. The following are important Minnesota Supreme Court cases deal- ing with the railroad gross income tax and railroad land grants: Railway Co. v. Parcher, 14 Minn., 297. Minnesota v. Railway Co., 21 Minn., 315; 472. Railway Co. v. St. Paul, 21 Minn., 526. Ramsey County v. Railway Co., 33 Minn., 537. Todd County v. Railway Co., 38 Minn., 163. St. Paul V. Railway Co., 39 Minn., 112. State V. Luther, 56 Minn., 156. Minnesota v. Fred. Stearns, 72 Minn., 200. (Reversed Stearns v. Minn., 179 V. S., 223.) United States Supreme Court Reports. United States Statutes at Large. The following is a list of United States Statutes concerning land grants to Minnesota: Act of June 29, 1854, 10 U. S. Statutes, 302, Land grant. Act of Aug. 4, 1854, 10 U. S. Statutes, 575, above grant repealed. Act of March 3, 1857, 11 U. S. Statutes, 195, Land grant. Act of March 12, 1860, 12 U. S. Statutes, 3, Swamp lands granted. Act of July 12, 1862, 12 U. S. Statutes, 624, Route changed and land grant. Act of May 5, 1864, 13 U. S. Statutes, 64, Land grant. Act of May 12, 1864, 13 U. S. Statutes, 72, Land grant. Act of July 2, 1864, 13 U. S. Statutes, 365, Northern Pacific grant. Act of March 3, 1865, 13 U. S. Statutes, 526, Grant of 1857 in- creased. Act of July 4, 1866, 14 U. S. Statutes, 87, Land grant. Act of July 13, 1866, 14 U. S. Statutes, 93, makes up probable defi- ciencies. Act of July 13, 1866, 14 U. S. Statutes, 97, relating to choice of lands. 186 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. Public Lands: Local and Temporary Laws. Revised Edition, 1882. Government Printing Office, 1883. Senate Reports. House of Representatives Reports. Congressional Globe. Annual Reports of the Commissioner of Patents (on Agriculture), 1837-1861, incl. Annual Reports of the Commissioner of Agriculture, 1862-1888, incl. Department of Agriculture; Special Report, No. 2, 1883. List of Agricultural and Pomological Societies, Farmers' Clubs, etc., on the books of the Department of Agriculture, July 1, 1870. (47 pages.) Washington, 1870. Tenth Census of the United States; Report, Volume VII. Eleventh Census of the United States; Report on Wealth, Debt, and Taxation. Adams, Charles Francis, Jb. Railroads, their Origin and prob- lems; Revised Edition, New York, 1878. The Granger Movement; 120 N A. Review, 394. An Address of the Anti-Monopoly Party of Minnesota to their Constituents. A Review of the Legislation of 1874. (Prepared by a committee, Ignatius Donnelly, chairman.) St. Paul, 1874. CooLEY, T. M. A Treatise on the Constitutional Limitations which rest upon the Legislative Power of the States of the American Union. First edition, Boston, 1868; third edition, Boston, 1873. Crawtord, J. B. The Credit Mobilier of America, its Origin and its History. Boston, 1880. Dabrow, J. W. Origin and Early History of the Order of Patrons of Husbandry. Chatham, N. Y., 1904. (This pamphlet is based on O. H. Kelley's book on this subject.) Donaldson, Thomas. The Public Domain, its History and Sta- tistics. Government Printing Office, 1884. Donnelly, Ignatius. Facts for the Grangers. (A pamphlet of 21 pages.) St. Paul, 1873. FoLWELL, William Watts. Minnesota, the North Star State. In American Commonwealths series: Boston and New York, 1908. Garfield, James A. The Future of the Republic: Its Dangers and Its Hopes. (An address delivered in 1873.) Reported in Legal Ga- zette, Philadelphia, Dec. 19, 1873. Goodwin, T. S. [Nom de plume, Gracchus Amerioanus.] The Grange, a Study in the Science of Society. G. P. Putnam's Sons, 1874. Gordon, J. H. Illinois Railway Legislation and Commission Con- trol since 1870. Illinois University Studies, vol. I. RAILROAD LEGISLATION IN MINNESOTA. 187 Kelley, Olivek H. Origin and Progress of the Order of Patrons of Husbandry in the United States; A History from 1866 to 1873. Philadelphia, 1875. Kent, James. Commentaries on American Law. 4 volumes; New York, 1826. Labeabee, William. The Railroad Question. Chicago, 1893. McKee, T. H. The National Conventions and Platforms of All Folitical Parties, 1789-1900. Third edition, Baltimore, 1900. Martin, E. W. History of the Grange Movement, or The Farmers' War against Monopolies. Philadelphia, 1873. Meter, Balthasah H. A History of Early Railroad Legislation in Wisconsin. Wis. Historical Society Collections, vol. XIV, pages 206- 300; Madison, Wis., 1898. Million, John W. Aid to Railways in Missouri. Chicago, 1896. Neill, Edward D. The History of Minnesota from the Earliest French Exploration to the Present Time [1858]. J. B. Lippincott and Co., Philadelphia, 1858. Paine, A. E. The Granger Movement in Illinois. Illinois Univer- sity Studies, vol. I. Parker, N. H. The Minnesota Handbook for 1856-7. Boston, 1857. Pehiam, Jonathan. A History of the Origin, Aims and Progress of the Farmers' Movement. Chicago, 1874. Poor, Henry V. Manual of the Railroads of the United States. New York, 1868, and onward. Prospectus of the Southern Minnesota Railroad Company, 1865; Ibid., 1869. Redfield, I. F. The Law of Carriers of Goods and Passengers, Private and Public, Inland and Foreign, by Railway, Steamboat, and Other Modes of Transportation. Cambridge, Mass., 1869. Richardson, James D. A Compilation of the Messages and Papers of the Presidents, 1789-1897. Ten volumes. Government Printing Office, Washington, 1896-99. Sanborn, J. B. Congressional Grants of Land in Aid of Railways. Madison, Wis., 1899. ScoTT, W. A. Repudiation of State Debts. New York and Boston, 1893. Smalley, E. V. The History of the Republican Party from its Organization to the Present Time, to which is added a Political His- tory of Minnesota from a Republican Point of View. St. Paul, 1896. Smith, Stephe. Grains for Grangers, Discussing all Points bearing upon the Farmers' Movement for the Emancipation of White Slaves from the Slave Power of Monopoly. Union Pub. Co., Chicago, Cincin- nati, San Francisco, 1873. 188 MINNESOTA HISTORICAL SOCIETY COLLECTIONS. Stickney, a. B. The Railway Problem, with Many Illustrative Diagrams. St. Paul, 1891. Tribune Almanac and Political Register. New York. WoKLD Almanac. New York. The following Minnesota newspapers have been quoted or directly referred to in this work: Anti-Monopolist, St. Paul. Duluth Minnesotian. Duluth Weekly Tribune. Farmers' Union, Minneapolis. Federal Union, Rochester. Grange Advance, Red Wing and St. Paul. Hastings Gazette. Minnesota Record, Rochester. Minneapolis Daily Tribune. Monticello Times. Owatonna Journal. Owatonna Press. Record and Union, Rochester. Red Wing Argus. Rochester Post. Sauk Rapids Sentinel. St. Charles Herald. St. Cloud Journal. St. Cloud Press. St. Paul Daily Dispatch. St. Paul Evening Journal. St. Paul Daily Pioneer. St. Paul Weekly Pioneer. St. Paul Weekly Pioneer Press. St. Peter Tribune. Stillwater Messenger. Wabasha Weekly Herald. Wells Atlas (Faribault County). Windom Reporter. Winona Republican. The following out-of-state newspapers and periodicals have been quoted or referred to : American Law Review, Boston. Cultivator and Country Gentle- man, Albany, N. Y. Harper's Weekly, New York. Legal Gazette, Philadelphia. Monthly Journal of Agriculture; New York, 1846-48. Nation, New York. New York Daily Tribune. North American Review, New York (Boston till 1877). Railroad Gazette, New York. 'V.'rJ<,''.i.Y|il