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
There is no question that the rate system upon the Pacific Coast made
it difficult for intermediate and local towns to import supplies
directly from the East and to distribute them through their own
organization. This was not the result of the difference between
terminal and local rates alone, but was the combined result of the
practice of the transcontinental carriers with respect to rates and
their practice with regard to carload shipments. That is to say,
the carriers not only quoted generally lower rates, carload against
carload, and small consignment against small consignment, to terminal
cities than to intermediate or to interior towns, but they also
granted many carload ratings to terminals which were altogether denied
to their interior competitors. In some cases this occasioned an
extraordinary difference in the total charge.
On the other hand, it should not be forgotten that to encourage
distribution through Pacific Coast terminals was not necessarily
to concentrate the whole business of distribution. The competition
between the Pacific terminal and the eastern jobber was just as real
as that between the Pacific terminal and the intermediate point. It
is sometimes forgotten how active this eastern competition was. That
it continually threatened the western distributor is shown by the
fact that in spite of the advantages enjoyed by western terminals, 50
per cent of the jobbing business in the hardware trade in southern
California was done in 1902 by houses east of the Missouri River, so
that the Interstate Commerce Commission expressed the opinion that in
the absence of some distinct advantage in the rate it would be very
difficult for Pacific Coast dealers to hold their own.[408] In central
California the proportion of the jobbing business done by eastern
firms ranged from 25 to 40 per cent. Certainly no decentralization
in business would have taken place had the California distributors
been compelled to withdraw in favor of men in Chicago and St. Louis,
nor would the aggregate cost of getting goods from producer to final
consumer have been decreased.
Inconsistency
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