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
Mr. Spence, director of traffic of the Southern Pacific Company,
admitted that effort was made to send business to California via New
Orleans when the point of origin was in territory east of a line drawn
from Toledo through Indianapolis and Terre Haute to St. Louis.[506] Mr.
Lovett thought that Southern Pacific solicitors even in Chicago did not
work against the solicitation of lines leading to New Orleans, though
acting independently they would solicit business via Ogden.[507] It is
in the record, also, that Southern Pacific solicitors in 1914 sought
freight from the Atlantic seaboard to Oregon and Nevada through the New
Orleans gateway,[508] and that the great bulk of wool from western and
central Nevada destined to the Atlantic seaboard actually moved west
to Sacramento and then south and east over the Sunset line, instead of
taking the direct route via Ogden.[509]
Complaints of Others
This direct testimony of Southern Pacific employees is in harmony with
repeated assertions made by persons outside of the organization, and
seems to indicate that some discrimination against the Central Pacific
and in favor of the Southern Pacific on transcontinental business
was encouraged by those in control of the Southern Pacific Company’s
affairs. As well informed a man as P. P. Shelby, traffic manager of
the Union Pacific, declared in 1887 that he knew by conversation with
shippers that the Central Pacific had diverted all the traffic they
could control to the Sunset route ever since the Southern Pacific
was completed, commencing in 1882. All kinds of merchandise had been
diverted, especially such goods as canned fruits, canned fish, and
wool. Asked whether the Union Pacific would carry 25 per cent more
freight if the Central Pacific were separated from the Southern
Pacific, Mr. Shelby qualified his statement by saying that it was hard
to answer the question. The Southern Pacific gave the Central Pacific
a good deal of freight which that company would not have received were
the two lines segregated. Had they been two independent lines, under
independent management, the Southern Pacific would not have given the
Central Pacific any freight at all.[510]
Similar charges were made by representatives of interests such as
those of the English stockholders of the Central Pacific, who asserted
that Mr. Huntington wished to ruin the Central Pacific, and dwelt
upon the advantages of bankruptcy to a company from which the United
States government was about to attempt to collect a debt. Knowing as
we do that the Huntington-Stanford group shifted the weight of their
investments from the Central to the Southern Pacific in the eighties,
there is of course ground for suspicion that the diversion of freight,
to which the evidence that has been quoted refers, was part of a
carefully thought-out plan, and that more than traffic matters were
involved.
Real Reasons for Traffic Diversion
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