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
Generally speaking, on a railroad system which handles a large traffic
in manufactured goods, the average return per ton per mile will be
large. This is particularly true when the company’s coal tonnage is
of small proportions. In the case of the Southern Pacific, the effect
of such a distribution of business was increased by the fact that the
company possessed the well-nigh exclusive control of a large local
business on the Pacific Coast, on which high rates could be charged.
This was where the efforts of the associates to maintain a monopoly
of rail transportation in California bore fruit. Eighty-two per cent
in weight of the commercial freight handled in 1883 by the Central
Pacific Railroad was classified as local, and almost two-thirds of
this company’s earnings were derived from local business. Indeed, the
local freight during the early years of operation exceeded expectations
as much as the through freight fell behind what was thought would
be its probable development. Prior to the construction of the Union
and Central Pacific railroads, it was supposed that for many years
the through business of the new lines would constitute by far their
principal source of revenue. It was also supposed that the traffic
of the companies would consist very largely in the transportation
across the continent of the products of Asia in transit to the states
situated east of the Mississippi River and to Europe. Both of these
anticipations proved entirely mistaken.
Partly, then, because of the character of the freight which it handled,
and partly because of the fact that a large proportion of its business
was local, the average rate upon the Southern Pacific was very high.
The average freight receipts of the Central Pacific in 1872 were 3.66
cents per ton per mile. While they declined in subsequent years, the
figure was still 2.75 cents in 1878, and 2.14 cents in 1881. In 1878,
while the Central Pacific was earning 2.75 cents per ton per mile, the
Santa Fé received only 2.12 cents, the Union Pacific 2.27 cents, the
Chicago and Northwestern 1.72 cents, the Pennsylvania .92 cents, and
the Lake Shore and Michigan Southern .73 cents.[499] Fourteen years
later, the average receipts on the entire Southern Pacific system were
exactly twice the average receipts per ton per mile on the Illinois
Central, and materially greater than those of most roads in other parts
of the country.
Public-domain text, read in full here on John Shaqi.
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