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
One case of this sort, which shows the willingness of the Southern
Pacific management to respond to what they considered a reasonable
request, had to do with the shipment of beer from a place known as
Boca, in the state of Nevada, to San Francisco. It appears that a
gentleman named Hess once conceived the idea of establishing a brewery
at Boca. This town was 220 miles from San Francisco, and yet all of Mr.
Hess’s beer had to find a market in the latter place, in competition
with beer from Milwaukee and St. Louis. Mr. Stubbs, general traffic
manager of the Central Pacific, welcomed the proposal to build a
brewery in the West, and put in special rates to help shut out the
eastern product. Every pound of brewery supplies, he reasoned, would
have to go over the Central Pacific. It was all clear gain, like so
much money picked up out of the ditch. In another case the Southern
Pacific quoted special rates on sugar from San Francisco to the
Missouri River, to enable the California Sugar Refining Company and
the American Sugar Refining Company to sell their sugar at the Missouri
River in competition with sugar reaching New York by water and thence
moving westward.[384]
Still again, in 1884 an attempt was made to persuade the St.
Louis-Kansas City lines to participate in a rate of 75 cents per
hundred pounds on cast iron pipe from St. Louis to the Pacific Coast
in order to encourage production in the Middle West in competition
with that on the Atlantic seaboard. The matter of the 75-cent rate was
taken up with J. W. Midgley, Trunk Line commissioner, who declined
temporarily on December 24, 1884, on the ground that the rate would
be a special one, and that there was an understanding that no special
rates should be made prior to January 31 next ensuing, pending an
anticipated agreement between the Transcontinental Association and its
eastern connections.[385]
In the instances which have been given, the impelling motive of the
Southern Pacific was frankly to increase its profit by increasing the
movement of freight over its line. Yet the shipper was also benefited
because his interests were substantially identical with those of the
railroad company, and he warmly welcomed the powerful support of the
railroad lines. These cases are not unimportant. The enumeration of
such isolated instances, however interesting as they may be, affords
no very clear picture of the aggregate of local rate adjustments with
which the Southern Pacific interests were concerned. For this purpose a
more systematic survey of the rate system administered by the Southern
Pacific is necessary, and to this attention is now directed.
Distance the Governing Factor
Public-domain text, read in full here on John Shaqi.
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