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
Owing to the peculiar intensity of competition at their doors, Pacific
terminals therefore enjoyed exceptional advantages in rates as compared
with their less favored neighbors. On the other hand, even the terminal
cities expressed some dissatisfaction with the transcontinental
adjustment. It appears, for instance, that the growth of great
distributing centers was difficult under the scheme of rates which
was applied. So long as terminals were few in number, a considerable
concentration in business was possible. But when the terminals
multiplied, the territory controlled by any single city became limited
by the low rates accorded to the nearby terminal cities, and expansion
in any one spot became difficult. This rendered the volume of business
of the Pacific Coast jobbers comparatively small. In the case of the
Business Men’s League of St. Louis v. the Atchison, Topeka and Santa
Fé, already cited, the two eastern firms of most prominence in the
proceedings were the Simmons Hardware Company, of St. Louis, and
Hibbard, Spencer, Bartlett and Company, of Chicago. The former of these
firms then did business in every part of the United States except New
England, while the representatives of the latter testified that the
operations of his house were limited only by the confines of the earth.
Competition by concerns of this magnitude was difficult for California
houses to meet, especially at times when the eastern firms used the
Pacific Coast as surplus territory in which they could afford to
operate at a low margin of profit.
Another ground for dissatisfaction on the part of the coast cities
arose out of their belief that the system as applied, in spite of
its recognition of the advantages of the Pacific Coast, still fell
short of the real equities of the situation. It was insisted that San
Francisco was improperly shut out from Denver, Cheyenne, Salt Lake
City, and Ogden. The Southern Pacific was charged with carrying hats
from New York by way of the Union and Central Pacific routes and then
down the San Joaquin Valley to Yuma at a lower rate of freight than the
San Francisco dealer could send the same goods from his city to the
Colorado River.[403] This same complaint was repeated by Mr. Leeds,
of the San Francisco Traffic Association, in October, 1892, with the
observation that if the same rate per mile were applied on eastbound
traffic from San Francisco that was charged on westbound business from
Chicago to Utah common points, then San Francisco would do the lion’s
share of the Utah business instead of a mere 16 per cent.[404]
Public-domain text, read in full here on John Shaqi.
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