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
This feature was also characteristic of later agreements between the
same parties, different as the details of the subsequent arrangements
sometimes were. In 1879 the Union Pacific, Central Pacific, and Pacific
Mail companies agreed that the last-named should set aside space for
600 tons of railroad freight in each of its steamers moving monthly
between New York and San Francisco. The railroads were to exercise
full authority over the through rates of the steamship company, and
for their part were to guarantee that the earnings on the railroad
freight shipped were not to be less than $48,000 monthly westbound,
and $35,000 monthly eastbound. In case the earnings on the 600 tons or
less of railroad freight which might be sent in each vessel exceeded
the guaranteed minimum, the balance of freight money was to be paid
over to the railroad, while the moneys received on all freight between
New York and San Francisco and between San Francisco and New York in
excess of 600 tons for each vessel were to be equally divided between
the railroad and the steamship company.[353] An additional clause in
this agreement bound the railroads to pay to the steamship company $5
for each passenger carried whose ticket was purchased at a point east
of Ogdensburg, Suspension Bridge, Buffalo, Pittsburgh, and Wheeling, to
a point west of Sacramento, and vice versa.
An agreement dated June 1, 1885, between the Transcontinental
Association and the Pacific Mail does not differ strikingly from that
of 1879 just summarized, except that the payments per month were to be
$85,000 for a two-way service, instead of $83,000, and that there was
no passenger subsidy. Moreover, the right of the steamship company to
fix rates for the use of its capacity above the 600 tons mentioned in
the agreement was specifically reserved. The $85,000 payment in this
year represented a reduction from the figure of $110,000 contained in
a contract dated March 4, 1880, and from one of $95,000 concluded in
1882. In 1887 the subsidy was set at $65,000, and in 1889, when still
another arrangement between the Transcontinental Association and the
Pacific Mail was signed, it was put at $75,000.[354]
Public-domain text, read in full here on John Shaqi.
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