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
In addition to granting passes, the Southern Pacific discriminated
by changing open rates suddenly for the benefit of persons fortunate
enough to be advised in advance. Mr. Stanford once explained that
individual items in the company’s tariff were changed whenever by so
doing the company could encourage business in any direction.[368]
Indeed, a tariff would scarcely be in force ten days before the
necessity for changes would be apparent.[369]
How this might work was shown in 1892, when complaint was made of
discrimination in favor of the Standard Oil Company. It was then
alleged that the Central Pacific was lowering oil rates from $1.25 per
hundred pounds to 82½ or 90 cents, when the Standard Oil desired to
make shipments from eastern refining points to the Pacific Coast, the
rates being subsequently raised when the shipments had been completed.
A letter to the vice-president of the Standard Oil Company, bearing
upon an episode of this sort, written under date of December 4, 1888,
got into the public press, and seems to establish the fact that
transactions of this nature were going on. The letter follows and is
self-explanatory.[370]
SAN FRANCISCO, December 4, 1888
W. H. TILFORD, Vice-President, Standard Oil Company,
26 Broadway, New York
DEAR SIR:
I herewith hand you copy of a letter I have just received from Mr.
Sproule, Assistant General Freight Agent of the Southern Pacific
Company, this city. This letter I interpret to mean the 90-cent rate
is for us to stock up from time to time, and that the $1.25 rate will
be in effect whenever we may desire. This $1.25 rate is what Mr.
Sproule refers to in the latter portion of his letter, as my offer of
90 cents to Mr. Stubbs was on condition that he has the rate of $1.25
put into effect when we might ask him. This letter also reads as if
the 90-cent rate and the $1 rate was to be put in effect January 1st.
No doubt Mr. Stubbs was unaware that we were stocked up at the present
rate of 82½.
The Transcontinental Association adjourned at Chicago yesterday, and
I understand that Mr. Stubbs is now on his way home. I will see him
on his arrival here, and if Chairman Leeds of the Transcontinental
Association has been notified to put the 90-cent rate in effect
January 1st I will have the same corrected by wire and the $1.25
rate put in. As soon as Mr. Stubbs reaches home I will telegraph you
whether it is intended that the 90-cent rate should be put in effect
January 1st or the $1.25.
Yours truly,
E. A. TILFORD
Relations with Standard Oil
Public-domain text, read in full here on John Shaqi.
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