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 chief difference between the local situation in California and the
condition of affairs which prevailed in the case of through shipments
to eastern points, lay in the fact that the competition of markets
and the rivalry of competing carriers played a more important part
in the through shipments than they did in local shipments. By market
competition we mean the attempt of geographically distinct producing
centers, each aided by a separate group of railroad lines, to sell in
a common area of consumption. Such competition occurred, for instance,
when California oranges sold in the Mississippi Valley in competition
with oranges from Florida, or when California lemons sold in the same
territory in competition with Sicilian lemons imported at New Orleans
or at New York. We have already seen that cities competed with each
other within California itself, but this competition was less important
within the state than it was in the case of hauls across the continent.
It should be recalled that the Huntington interests possessed a virtual
monopoly of local business, while the extent of the competition between
carriers on through traffic may be briefly indicated by observing that
the Central and Southern Pacific companies had direct relations with
no less than six other transcontinental railroads, namely, the Union
Pacific, completed in 1869; the Santa Fé, which reached the town of
Deming and effected a connection with the Southern Pacific in 1881; the
Texas Pacific, built to El Paso in 1882; the Northern Pacific, opened
from St. Paul to Portland in 1883; the Canadian Pacific, completed in
1887; and the Great Northern, which was finished in 1893. None of these
railroads reached San Francisco except the Santa Fé, which obtained an
independent California connection in the late nineties. The Santa Fé
entered Los Angeles, however, in 1885, and the Union Pacific enjoyed a
connection with Portland through the Oregon Short Line and the Oregon
Railway and Navigation Company as early as 1884. From Portland, Los
Angeles, and Vancouver, freight could be distributed by water all up
and down the Pacific Coast.[396] Moreover, the competitive relations
which Pacific Coast cities bore to each other made it necessary to keep
their rates from the East on an approximate parity, and caused the
Central Pacific to be affected by charges which were not on their face
applicable to any point in which that company had an interest. There
were combinations in respect to transcontinental railroad business from
time to time, but none sufficient to control rates except for short
periods.
Transcontinental Rate Adjustment
Public-domain text, read in full here on John Shaqi.
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