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
Complaints similar to those voiced by Stockton were registered by the
people of Los Angeles. In the eyes of inhabitants of that city, the
rates on northbound freight from Los Angeles consigned to the San
Joaquin Valley were relatively higher than the rates from San Francisco
south into that same valley. Yet, dissatisfied as Los Angeles was with
the relation which her rates bore to those out of San Francisco, it
seemed to other cities in the south that her position was on the whole
more favorable than was that of her neighbors. In 1889 a dealer in the
city of San Bernardino protested against being forced to pay a higher
rate from eastern points than was charged the city of Los Angeles. He
showed that the rate on agricultural implements from the Missouri River
to San Bernardino was $1.27 per hundred pounds while to Los Angeles it
was $1.07. On stoves the rates were $1.19 and 99 cents, respectively,
and on school furniture $1.55 and $1.35. This preference was alleged to
be discriminative and illegal.[392]
In a decision approving the discrimination against San Bernardino,
the Interstate Commerce Commission in 1890 remarked that originally
southern California had been served from San Francisco direct; and that
San Francisco jobbers had covered its territory. When the railroads
reached Los Angeles they found it to their advantage to grant it low
rates, not so much because it lay near the Pacific Ocean as because
the interests of the Southern Pacific and especially of the Santa Fé
demanded that some point in southern California should be given such
a rate that merchandise from the East could be brought there all-rail
and from that point be distributed. The fact that water competition
was not the only influence which determined the Los Angeles rate from
the eastern states was indeed shown later by the fact that the port of
Los Angeles, San Pedro, did not receive a terminal rate until 1910,
although Los Angeles itself had been given terminal privileges at least
twenty years before.[393]
Stockton, Los Angeles, and San Bernardino thus illustrate in their
conflicting claims the constant effort of cities in California to
extend the area over which they might distribute goods. Among other
instances of dispute between California cities may be mentioned
the demand of Santa Barbara in 1907 to be made a Pacific Coast
terminal,[394] and the angry contentions of Santa Clara, San José,
Marysville, Santa Rosa, and Fresno in 1914 over the question of
relative railroad rates from eastern points.[395] The characteristics
of the system of transcontinental rates which were involved in these
complaints will be discussed in the following chapter.
CHAPTER XVI
THE TRANSCONTINENTAL TARIFF
Market and Railroad Competition
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