Chapters on the History of the Southern PacificDaggett, Stuart
History
Chapters on the History of the Southern Pacific
Daggett, Stuart
Pacific railroads -- History; Railroads -- California -- History; Southern Pacific Company
At the same time that the passenger schedule was introduced Mr. Cone
submitted a freight tariff, which was also adopted. This schedule cut
rates mainly on agricultural products originating in the northern
part of the state. Stoneman objected to it—but later said that he
did not prepare an alternative schedule because he knew it would not
be adopted. He did, however, call the attention of the board to the
fact that southern California was being discriminated against.[272]
Beerstecher had no part in the preparation of the new rates, but made
no opposition to them.
Delay in Enforcement
Armed with the new passenger and freight schedules, Mr. Cone went over
to the Southern Pacific offices and left the figures with Mr. Towne,
general manager, for comment. The railroad people at once objected.
They said they were building the Southern Pacific and selling bonds
to raise the money. The proposed reductions would injure their credit
and could not be accepted. Cone was anxious to avoid litigation and to
get quick action.[273] Moreover, Stanford wished to get away and go
to Europe, and Cone did not like to keep him. As Cone said in another
connection, Stanford was pretty winning in his ways. The result was
that the railroad agreed not to contest the new freight rates and Cone
consented not to press the reduction in passenger rates, at least not
until October, 1881. There is no evidence that Cone possessed authority
from the commission to negotiate with the Central Pacific, but he
seems to have acted in confidence that Beerstecher would support him
in action favorable to the railroad and Stoneman in action of contrary
tenor.
[Illustration: George Stoneman]
As a matter of fact the board did not take further action in regulation
of passenger fares until August, 1882, a year and a half after
the question had first been raised. By this time Cone had become
convinced, so he says, that Stanford would concede no further reduction
in railroad charges. On the 15th of August, Stoneman accordingly
reintroduced his original passenger schedule, but slightly changed.
The matter was laid over for a month, and in September, at a meeting
at which only Cone and Stoneman were present, a substitute resolution
was adopted, setting a maximum fare of four cents per mile. Stoneman
thought the maximum should be three cents, but Cone would not consent.
The new maxima were suspended in October “until further order of the
board” in order to give the railroad companies an opportunity to be
heard. Before the commission came together again, however, Stoneman
had resigned. This left Beerstecher and Cone—with two as a quorum. It
is eloquent of Beerstecher’s attitude that he attended no meeting of
the board after November 22, 1882, and that on that day his action in
respect to passenger rates was to move to postpone consideration.
Public-domain text, read in full here on John Shaqi.
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