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
The railroad company reserved from the beginning the option of
way-billing the goods and collecting freights according to the printed
rates, agreeing to return the difference on presentation of vouchers to
the general freight agent of the Central Pacific at San Francisco after
the lapse of a reasonable time for auditing and adjusting the bills.
The carrier also always insisted on the privilege of examining the
shipper’s books in case it suspected a violation of the agreement. In
some respects, the wording and administration of the contracts became
more stringent in the later years. J. T. Doyle, a well-informed San
Francisco attorney, asserts that at the beginning merchants were merely
forbidden to import goods otherwise than by rail. Following this the
prohibition was extended to the handling or buying of goods imported
by sea by other parties. Finally the boycott reached to the offending
importers themselves, and firms signing the contracts were bound not
to sell or deliver goods to anyone who was in the habit of importing
otherwise than by rail.[378]
Probably there was some difference in the treatment of different
shippers in these matters. Mr. Hawley, a large importer of hardware,
told a committee of the California legislature in 1884 that he was at
liberty to buy a great many things “to sort up with,” even goods sent
via the Horn. On the other hand, there were a good many cancellations
of contracts for alleged violations, and shippers lived in continual
apprehension.
Taken as a whole, the special contract system was an exchange of a
rebate by the railroad for an agreement for exclusive patronage on the
part of the shipper. Prior to 1878, bulky, low-grade articles moving
between the Atlantic and the Pacific coasts usually went by sea. Rates
were lower and saving in time not important. High-grade goods and
freight requiring quick transportation went by rail. It was the idea of
the railroad that if compelled to choose, Pacific Coast business men
would prefer to import all their freight by rail rather than to bring
it all in by water, and that this would substantially increase railroad
revenues even though incidental concessions in rates had to be made.
Objections to Contract Plan
Public-domain text, read in full here on John Shaqi.
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