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 carriers were not, however, so ready to recognize the interruption
of canal traffic as they had been prepared to take notice of its
beginning, and in spite of slides and war conditions which suspended
water competition, it took an order of the Interstate Commerce
Commission to secure an equality in the treatment of intermountain
and seaboard cities to which the former in accordance with the
fundamental theory of transcontinental rates were entitled under the
new conditions.[413]
In forming an opinion upon the rate system of the Central Pacific,
however, too much weight must not be attached to inconsistencies in
application so long as these are not altogether arbitrary, any more
than to the demand of competing cities for their “fair share” of
the business that is to be done. City ambitions are limitless, and
impossible to reconcile. The question is not how to determine the
territory within which a given city may be said to have a right to
distribute its goods, but whether or not the rate system introduced by
the Huntington group, all things considered, promotes the interests
of the territory which is served better than some system that may be
suggested.
Basing Rate System Necessary
It is the writer’s opinion that the transcontinental rate system has
always had evident defects. In the first place, it has generally
provided low rates to towns and it has quoted low rates on commodities
which have no access to the water routes. In the absence of competition
the distance principle should prevail. Second, it has often failed in
the past to make concessions to the cost basis of rate-making, which
would have removed complaint without altering the plan in principle,
such concessions, for example, as the reduction of rates to interior
points to something less than the sum of through and local rates to
allow for the relatively small amount of terminal service rendered.
And, finally, it has increased the amount of transportation incident
to the distribution of a given amount of freight. While the assertion
of cities without terminal privileges that they have the right to do a
specified amount of business is to be received usually with skepticism,
it does seem probable that the transcontinental railroads would have
reduced the aggregate cost of distributing transcontinental freight had
they encouraged more than they did the growth of the interior towns,
provided that they had supported these towns both against Chicago and
St. Louis and against the Pacific Coast.
Public-domain text, read in full here on John Shaqi.
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