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
They take an identical carload of the same commodity, and when it is
going to the Pacific Coast for domestic consumption the rate is 65
cents a hundred, or 5.76 mills per ton-mile. If they were to apply
that rate at the Utah common points—the same 65-cent rate—it would
pay 8.65 mills per ton-mile. But they say, “We cannot afford that; you
must pay 10.84. We haul it for a man in Russia for 3.54, but that is
only the out-of-pocket cost. We will make you a rate of 10.84, which
is a lower rate than you are entitled to.
I think any article, whether it is transportation or anything else,
that could be produced at some profit at a price of 3.54, when you pay
5.76 for it you are paying a handsome profit; and if you pay 8.65 for
it you are paying an abnormal profit; and if you pay 10.84 for the
same thing you are being outrageously imposed upon, which is what we
are doing.”[406]
The second objection of the interior cities is that the system of
transcontinental rates limits the territory in which intermediate
wholesale firms can do a distributing business; and the third ground
of complaint, resulting from the other two, is that the policy of
permitting low rail rates to the coast cities has the effect of
building up large cities on the seaboard at the expense of the whole
interior country.
Reply of Railroads
In replying to these objections the coast towns take the position that
they are not especially concerned with the rates to intermountain
places, nor indeed with the rates which the railroads make from coast
to coast, except in the sense that the greater the number of carriers
which participate in transcontinental business, the better the service
is likely to be. Secure in the possession of adequate water connection,
they do not expect to pay higher rates than they have paid in the past,
whatever policy the railroads may adopt. They have no controversy with
the intermediate territory, and only support the present adjustment
because they conceive it to be for the best interests of the country as
a whole.
Public-domain text, read in full here on John Shaqi.
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