Dana Reed Bailey.

History of Minnehaha county, South Dakota. Containing an account of its settlements, growth, development and resources ... Synopsis of public records, biographical sketches .. online

. (page 41 of 99)
Online LibraryDana Reed BaileyHistory of Minnehaha county, South Dakota. Containing an account of its settlements, growth, development and resources ... Synopsis of public records, biographical sketches .. → online text (page 41 of 99)
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turing- industries of South Dakota.

Queen Bee Mill. — In Aug-ust, 1879, the construction of the
Queen Bee Mill was commenced, and the enterprise in its results
has been a notable one. The money for its construction was fur-
nished bv eastern and Eng-lish capitalists, and there was no lack of
funds at the command of the superintendent of construction to build
the finest flouring- mill on the continent. The building- is of stone,
80 by 100 feet from the foundation to top of walls. There are six
stories beside the basement. The materials used in finishing- the
inside of this building- were the best that could be procured for the
purpose, and the workmanship excels in finish that of any other
manufacturing- structure in the Northwest. Its desig-n was a marvel
of accuracy, and when the building- was completed and ready for the
placing- of the machinery, nothing- but the latest, most improved
machinery was purchased to equip this remarkable mill. To enum-
erate and describe the machines put in this building- would take too
much space, but some idea of its completeness when ready to be
oj)erated can be imag-ined when it is known that there were ten miles
of l)elting-, eig-ht of spouting-, three of conveyors and two of elevators.
But this does not represent all the expense incurred in this project.
An extensive elev'ator and warehouse were built, and to g-et the
proper head of water a canal was blasted throug-h the rocks a long-
distance and the water conveyed to the wheel in an iron tube seven
feet in diameter. On the 25th da}^ of October, 1881, every thing-
being- completed, the water was turned on the eig-ht hundred horse-
power turbine wheel, and the first wheat was g-round. Col. J. H.
Drake was president of the company at that time, and C. W. Hub-
1)ard superintendent. After a few months E. Elwell became the
manag-er. But notwithstanding- the expenditure of nearly a half a
million dollars upon this enterprise, which promised so much for the
City of Sioux Palls and the County of Minnehaha, its operation re-
sulted in loss instead of profit. The water power was insufficient to
operate it, except for a short season in each year, and the supply of
wheat that could be obtained at a reasonable cost was inadequate to
meet its capacity. It ceased operation early in 1883, and the whole
plant was attached on the 20th day of April of that year to secure an


indebtedness of S*^)7,000. Since then the title of the property has
passed into other hands than its ori<>-inal owners, and the conundrum
''what will he done with it" is no nearer l)eino- solved than ten
years ag^o.

Polishing Works. The polishino- works were l)uilt hv J. H.
Drake of St. Paul, in 1883. They are located in the city of Sioux
Falls on the east bank of the river, at the foot of the falls. They
were not completed until the following- year, when they were fully
equipped for business on an extensive scale. Two very large polish-
ing- beds were put in August 11, 1884, having the capacity to polish
450 feet of surface at once. S )me very fine work was done in polish-
ing jasper and chalcedony. The cost of the entire plant was about
S75,000, and for some years after it commenced operation bid fair to
pay a good dividend, but the hard times and other unforseen obsta-
cles stood in the way of its success, and for awhile it seemed as
though it would remain a companion piece to the Queen Bee mill, but
recently it has been in operation although upon a much smaller scale
than at first.

Pork Packing Houses. — About the 15th of October, 1883, a
copartnership was entered into between E. G. Smith and A. B.
Clampit of Sioux Palls, for the purpose of engag-ing in the business
of pork packing-. A pork packing- house was built on the east side of
the river between Eig-hth and Tenth streets, and before the season
was over $40, 000 had been paid out for hog-s. The following- March
the junior member of the firm retired.

The business had 1)arely commenced before complaints were
made to the city authorities that the establishment was a public
nuisance, and notwithstanding every precaution was taken to con-
duct the business so as to inconvenience no one, its location was such
that the city authorities ordered its removal. During- the summer
of 1885, the house was taken down, and a new establishment was
built by E. G. Smith & Co., on the east bank of the river below the
falls, with a capacity of 250 hogs daily. During- the following- season
a larg-e business was done, and at the end of March, 188(), 8,500 h(>g-s
had been slaughtered. On the 30th day of October of that year, the
buildingfs of the company were totally destroyed by fire. The loss
was estimated et §25,000. Major Smith, who had been the manag-er
of the business from the time it started, went to work at once to
secure the capital necessary to rebuild, and during 1887 erected u])on
the old site the buildings now standing- there. For sometime a larg-e
business was done, but in some way the firm became financially
embarrassed and ceased doing business.

The Sioux Falls Stock Yard Company. — During the summer
of 1880, R. P. Pettig-rew conceived the plan of establishing- extensive
stock yards and a packing house at South Sioux P\'ills. The Sioux
Falls Stock Yard Co., was incorporated with a capital stock of
S500,000, and about one thousand acres of land purchased and put
into the corporation at a valuation of S200,000. September 25, of that
year, work was commenced on the buildings which are located near
the center of the southeast quarter of section 25, in the township of
Wayne. R. F. Pettigrew was president, A. J. Pettengill, a resident


of Portland, Me., who had taken quite a block of stock, was vice
president and general nianao-er, S. L. Tate secretary, and C. C.
Carpenter treasurer of the corporation. Mr. Pettengill came to
Sioux Palls in 1890, and during- that year pushed the construction of
the building-s as rapidlv as possible. But the company became finan-
cially embarrassed, and althoug-h about S370, 000 of improvements had
been made, the company was compelled to suspend work, and the
enterprise was in a dormant condition until 1895, when Mr. Petten-
o-ill reorganized the company with a capital stock of 82,000,000 under
the name of

The Northwestern Packing Company. ^ — This company added
1800 acres of land at a cost of about S66,000, and proceeded to com-
plete the buildings, putting in all the machinery necessary to make it
one of the most complete packing house plants in the country. But
notwithstanding- this great expenditure of money — making- the
entire cost of the plant about S890,000 — the company for some reason
permitted the plant to lie dormant. During the spring of 1899, this
property passed from the control of the Northwestern Packing Co.,
and the new owners reorganized under the name of the

A. Lester Heyer Packing Company, and commenced at once
to put the buildings and machinery in proper condition for active
work. On Tuesday, July 18. 1899, the machinery of this g-reat plant
was put in operation, and one hundred and fifty hogs were killed, and
the success of a great industry with all its accessories assured.

Sioux Falls Brewery. — The Sioux Falls Pantag-raph in its
issue of October 7, 1873, stated that John McClellan had sold four
lots on the side hill to Messrs, Krudnig- and Foerster of Yankton, on
which they would commence the erection of a brewery as soon as
materials could be procured for that purpose. These lots were
located near by, if not the same lots now occupied by Heynsohn
Bros., but no attempt was made to build a brewery upon them. In
an issue of the same paper of August 29, 1874, we find the following-
item: "Parties are now engaged in building- a brewery, and will
have it completed so as to offer the genuine lag-er by Christmas,"
and that "Knott and Nelson arethe names of the gentlemen building
it." The boiler reached Sioux Falls October 27, 1874. About Jan-
uary 20, 1875, the firm of Knott & Nelson was dissolved by mutual
consent, S. S. Nelson retiring; and C. K. Howard became associated
with Mr. Knott, first under the firm name of George A. Knott & Co.,
and then the parties incorporated as the Sioux Falls Brewing- Com-

The business was conducted for several years bv this firm, with
a capital stock of 840,000, Georg-e A. Knott taking S15,000 of the
stock, C. K. Howard 815,000, and the oificers of the First National
Bank of Sioux Falls the balance. Mr. Knott was the general man-
ager of the business until the aifairs of the company became involved
in litigation in 1886.

In January, 1886, R. J. Wells became president and W. F. Fur-
beck cashier of the First National Bank of Sioux Falls. The bank
got into trouble during the month of January, owing to complications


arising from issuing to C. K. Howard, ccninty treasurer, the famous
cashier's check of $16,571.61, and it became necessary for the bank
to make some changes in the securities it held. Among those it de-
cided to dispose of, was the brewery stock it owned and held as col-
lateral. On the 17th day of February, 1886, a contract was made be-
tween the bank and Moriz Levinger, the bank selling to Mr. Levin-
ger all the personal property outside the city of Sioux Palls belong-
ing to the Sioux Falls Brewing Company, Mr. Levnnger agreeing in
consideration of such sale, to pav the bank in cash $2,000, March 3,
$2,000, April 3, $1,000, June 3, $1,500, and July 3, 1886, $2,500. Upon
the cash payment being made the bank agreed to make a good and
valid assignment of three hundred and twenty-five shares of the cap-
ital stock of the brewing company to Levinger.

Levinger agreed to purchase all the real estate belonging to the
company, and to pay for the same $20,000, within eighteen months
from date of contract, the bank then holding a mortgage on said real
estate in the sum of $20,000, agreed to foreclose the mortgage and
procure for Levinger a good and valid sheriif 's deed of the same.
The bank also agreed to save Levinger harmless from all indebted-
ness of the brewing company. This contract was signed by Wells
and Furbeck in their official capacities. The capital stock of the
brewing company was divided into 400 shares of SlOO each, and the
bank claimed to own 325 shares. Levinger made the cash payment
of $2,000, executed and delivered his notes to the bank for the sev-
eral sums specified to be paid on the third days of March, April,
June and July, and went into possession of the brewery.

Soon after this, the condition of the bank became more and more
embarrassed, and a receiver was appointed March 11, 1886, who took
possession March 31. When the March payment became due, Lev-
inger tendered the bank officials payment and demanded his note,
but the bank owing to its attachment or other disposition of the note
was unable to produce it.

This mortgage of $20,000 was assigned to P. P. Peck before the
receiver took possession, and he brought foreclosure proceedings,
making the Brewing Company, W. F. Furbeck, J. Leslie Thompson
as receiver, and Moriz Levinger defendants.

It was an interesting law suit. Boyce & Boyce appeared for
Peck, McMartin and Gamble Bros, for Receiver Thompson, and
Bailey & Davis and H. H. Keith for Levinger. The attorneys for
the receiver acted with Boyce & Boyce, both opposing the claim of

Before the case was tried, Levinger had paid $5,000 to third par-
ties to whom his notes had been assigned by the bank, and had also
been compelled to pay several thousand dollars of the indebtedness
of the brewing company that the bank had agreed to pay.

Levinger in this action demanded judg-ment that his interest in
the premises be declared superior to that of the plaintiif ; that he be
entitled to all beneficial interest in said mortgage; that the bank by
its receiver be required to specifically perform said contract, or to
account to the defendant for all monies received thereunder, and
that the same be applied as a set-off or counter-claim in reduction of
the mortgage debt, and that the plaintiff's action be dismissed.


This case was on the calendar of the supreme court of the terri-
tory at its February term in 1888, and was arg-ued by the attorneys
at that time. The supreme court held that the contract entered into
"was atrainst public policy and could not be enforced by specific per-
formance, nor allowed to be declared upon by way of recoupment."

At the May term, 1888, a rehearing- was granted as to the right
of Levinger to recover the money paid under the contract. Again
the court declared the contract against public policy and one which
a court of equity would not lend its aid to enforce specific perform-

In a great many cases new trials have been granted and judg-
ments reversed upon newly discovered evidence, but in this case,
after the second hearing before the supreme court, Park Davis dis-
covered some new law, or in other w^ords, found that a contract, sim-
ilar to the one that had been declared to be against public policy by
the supreme court of the territory, had been held not to be against
public policy by the supreme court of the United States. Davis took
this decision and went to Yankton to see Chief Justice Tripp, who,
upon reading the case, remarked that "either the supreme court of
the territory or that of the United States was in error in the mat-
ter." At that time, to obtain a rehearing, it was necessary first to
obtain the indorsement upon the petition for the rehearing- of one of
the judges w^ho had concurred in rendering the decision sought to be
reviewed. Judge Tripp, upon being asked for his indorsement for a
second rehearing, said he would do so if one of his associates would
also indorse the petition; that it was not usual to grant a second re-
hearing, and that he would not like to assume the responsibility of
doing so alone. However, he did indorse it, with the understanding
that another judge's indorsement should also be procured. Judge
Spencer was applied to, who upon reading the decision of the United
States supreme court indorsed the petition.

The case came on for hearing upon the petition at the October
term of the supreme court at Deadwood,at which time the most elab-
orate brief was presented on the part of the petitioner. The court
declined to grant a new hearing upon the ground that it would be a
bad precedent under any circumstances to grant a second rehearing,
but the chief justice stated to Mr. Davis that he hoped the case
would go to the supreme court of the United States, and that if the
brief presented at that time had been presented at the first hearing
it was quite likely the case would have been decided the other way.
The case was then appealed to the supreme court of the United

This put a new phase upon the case, and it was not long before
a settlement was made of the whole matter, much to the satisfaction
of Levinger and Kaufman.

Another piece of litigation in connection with the brewerv was an
attempt made by some of the stockholders to have a receiver ap-
pointed a few months after Levinger had taken possession of the
property. The proceeding was commenced by C. O. Bailey, and
Bailey & Davis and Judge Parliman were emploved bv Levinger and
Kaufman to resist the appointment. The grounds upon which the


application was made were numerous charo^es of fraud on the ])art of
Leving-er and those associated with him in conductino- the Inisiness.
The case was foug-ht vig-orously, but finally resulted in the defeat of
the stockholders.

A very few days after Thompson had taken possession of the
bank, a large block of the stock of the brewing- company was found to
be in the possession of Jacob Schaetzel, Jr. An action was broug-ht
in the nature of trover, to recover of Schaetzel for the alleg-ed con-
version of 150 shares of stock of the brewing* company, demanding- a
judg-ment for S25,()00. This stock the plaintiff claimed belong-ed to
the bank, that it had been assig-ned to it bv Georg-e A. Knott as col-
lateral for his indebtedness to the bank. Schaetzel claimed that he
had only 100 shares of the stock sued for, and that it had been turned
over to him by the bank as security for services rendered the bank by
him; and that he had transferred the stock to Leving-er under the con-
tract made by the bank with Leving-er, and that Leving-er had paid the
bank, and that this contract had been ratified by the receiver.

This case was tried to a jury at a term of the district court in
Minnehaha county, T. B. McMartin appearing- for Receiver Thomp-
son and C. O. Bailey for Schaetzel. It was foug-ht vig-orously bv
both parties, resulting- in a verdict ag-ainst the defendant. An ap-
peal was taken to the supreme court, and H. H. Keith was retained
with C. O. Bailev. The case was reversed and remitted for a new
trial, but was afterwards settled.

In September, 1890, proceeding-s were commenced in the circuit
court of Minnehaha county, to abate the brewery as a liquor nuisance
under chapter 101, sections 1 and 13, of the session laws of 1890.
The writer, then state's attorney, refused to act in this case, as the
firm of Bailey & Davis had gfiven a written opinion in March pre-
ceding-, to the brewery company upon the question whether the
brewery could be interfered with under the nuisance provisions f)f
the law. W.A.Wilkes, employed by the Law and Order Leag'ue, aj)-
peared as prosecutor in behalf of the state, and Judg-e Carland ap-
peared for the defendant. Judg-e Aikens declared it to be a nuisance,
but the defendant appealed, a stay was g-ranted and bond g-iven and
the case went to the supreme court. While this case was pending-,
new proceeding-s were commenced ag-ainst the brewery as a nuisance,
but were never prosecuted to the end.

At the hearing- of the case before the supreme court, Robert
Dollard arg-ued the case on the part of the state and Judg-e Carland
in behalf of the defendant. The opinion was handed down March 3,
1894, and the syllabus of the decision is as follows:

Under a statute which does not specifically name the liquors the sale of wiiich as a beverage
it prohibits, but considers and holds all liquors intoxicating which are spirituous, malt, vinous, or
fermented, as well as all mixtures thereof which will produce intoxication, the malt or intoxicating
quality of beer, when in question, should be shown by the evidence, the weight and sudicicncy of
which is for the court or jury, as the case may be.

It being a matter of general knowledge that there are varieties of the beverage denominated
" beer," and used in this state, that contain no malt and are not intox'caling, we hold that the term
" beer," in the absence of evidence as to its quality or effect, does not import an intoxicatirg

In the absence of a statute declaring that "beer" shall be deemed an intoxicating li(|uor, the


mere statement of the witness that tliev bought beer, without any evidence as to the purpose for
which it was bought, or that it contained malt, or of its effect upon persons using it, or of the
manner in which it was made, is not sufficient to show that it was intoxicating; and a court will
not take judicial notice that beer so sold was a malt or intoxicating liquor.

The opinion was written by Justice Puller, and in closing; he
said: "For the reasons we have mentioned and upon the authorities
examined, we conclude, that the judo-ement and decree of the trial
court should be reversed."

The foreg-oino- comprises a brief synopsis of the manag-ement of
this institution and the obstacles that have stood in the way of its
success. The first vear the quantity of beer manufactured was 250
barrels, the second year 500 barrels and the third year 1,500 barrels.
The last vear it was under the manag-ement of Mr. Knott the output
was nearlv 10,000 barrels. Since the brewery came into the hands
of Leving-er and Kaufman expensive improvements have been and
are now being- made, and the quantity of beer manufactured has
been constantly increasing-.

The Sioux Falls Water Works.— April 8, 1884, W. S. Kuhn
of Pittsburg-, Pa., submitted a proposition in the form of a contract
to the city council for the establishment of a system of water works
in Sioux Falls. Prior to this time the project had been presented to
the council by Mr. Kuhn, and it was evident that he desired to obtain
a contract from the city, and it was also evident that the city author-
ities were anxious to have a system of water works constructed as
soon as possible. Mr. Kuhn did not then know as much about water
works as he does at this writing-, and there were no water experts
on the council. The Daily Press of April 9, printed the proposed
contract, and requested the citzens "to scan it closely," and advise
the aldermen whether or not in their opinion the contract should be
accepted. The evening- of the 9th the council met, and after consid-
erable discussion the question was put to a vote. Aldermen P. P.
Peck, John F. Norton, N. E. Phillips, True Dennis and Georg-e A.
Knott voted in the affirmative, and C. S. Bowen and H. M. Stearns
in the neg-ative — M. Grig-sby absent. The council then instructed
Mayor Schaetzel and Clerk Holt to sig-n the contract in behalf of the

By the terms of the contract the work was to be commence on
or before June 1, and completed on or before October 15, so as to be
in full operation by November 1, 1884. It was also understood by all
the parties concerned that the water would be taken from the Sioux
river, althougfh the contract required that "pure water for ordinary
house use" should be furnished.

The works were completed on time. On the 8th day of October,
1884, in the lang-uag-e of the Press "the water works' smoke-stack
belched forth its first puff of smoke." From this time a series of
complaints arose from the people of the city ag-ainst the water works.
They claimed that the water was impure and unfit for use; that the
fire pressure was inadequate; mains burst and flooded cellars; hy-
drants froze up; the tank overflowed — and worst of all — that the use
of the water had caused an epidemic of typhoid fever. In short, noth-
ing- was right and everything- wrong-, and to such an extent were the


people prejudiced ag-ainst the Water company, that on more than one
occasion the council was requested to ignore the contract and make
no further payments to the company.

The first eno-ine house was located on the bank of the river oppo-
site the Cascade mill, and the water pumped from the mill pond, but
the complaints in reference to the quality of the water were so
numerous that the temporary expedient w^is resorted to of extendino-
a lart>-e supply pipe up stream past the island. But this did not sat-
isfy the consumers, and in the summer of 1886, another enjj-ine house
was built on the bank of the river between Tenth and Eleventh
streets, and the water taken from there. But the water still re-
mained too impure for domestic use, and in February, 1888, a larjj-e
filter was put in throug-h which the water had to pass before being-
sent on its way to the consumers. But the water did not prove satis-
factory, and the Water company having- exhausted all known methods
of procuring- g-ood water from the river, begfan to look elsewhere for
a supply.

Early in may, 1890, the Water company i)urchased 100 acres of
land about three miles north from the center of the city, after having-
ascertained that underlying- it there was a g-raveled bed about 50 feet
in depth containing- an inexhaustible supply of pure water. As early
as the season would permit, the company commenced the improve-
ments necessary to obtain water to supply the citv from that source.

About this time another element of trouble to the company came
to the surface. J. H. Drake had a spring- on the east side of the
river, and he claimed it was absolutely pure water and that there
was a suificient quantity to supply the city, and he was not dilatory
in endeavoring- to influence the city council to take such action as
would make his spring- the source of water supply for the city.

On the 14th day of July, 1890, althoug-h the company had a larg-e
force of men at work north of the city putting- down wells and con-
structing- building-s for the necessary machinery, a committee of
aldermen appointed by the city council made a report recommending"

Online LibraryDana Reed BaileyHistory of Minnehaha county, South Dakota. Containing an account of its settlements, growth, development and resources ... Synopsis of public records, biographical sketches .. → online text (page 41 of 99)