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
Besides this, the topography of the state lent itself to schemes of
conquest by a sharp separation of the interior valleys from each other
and from the coast. It was not necessary to occupy the whole country,
for an effective control over one valley could be maintained in spite
of the fact that an adjacent valley was in hostile hands. Nor was there
any public opinion in California at the time thoughtfully critical of
monopoly, as such. The country was new. Theories covering the relations
of large corporations to the consuming public had not been developed.
People hated monopolies because monopolies meant high prices; but the
very persons who were most likely to object to monopoly were also
likely to seek positions of advantage for themselves when possible.
Under conditions like these, Stanford, Huntington, Hopkins, and
Crocker were almost sure to attempt to dominate the railway system of
the state as soon as they determined to make their connection with it
more than temporary. This decision was made as the Central Pacific
approached Ogden in 1868 and 1869. Had the associates been able to
sell out before this time, it is likely that they would have done so.
Indeed, it is credibly reported that 80 per cent of the stock of the
Central Pacific was offered to D. O. Mills as late as 1873, for a price
of $20,000,000,[151] and this was probably the last of several offers
made to different parties.
The evidence seems to show, however, that by 1870 the Huntington group
were inclined to remain in the railroad business. Strategically, the
associates then occupied a very strong position. They possessed the
only railroad line from California to the East. They dominated the
Oakland water-front, and held important concessions in San Francisco.
Branch lines, like long tentacles, stretched from Roseville north to
Chico, on the way to the Oregon state line,[152] and from Lathrop south
to Modesto, to be extended to Goshen by August 1, 1872.[153] By 1869
the Sacramento Valley Railroad, with its extension to Placerville,
had been bought, and the California Central Railroad from Folsom
to Marysville was under Central Pacific control. Even the budding
project for a Southern Pacific Railroad had received the attention of
Stanford and his associates. Indeed, the only really weak spots in
the associates’ position were their failure fully to occupy the San
Joaquin Valley, and the fact that they did not control the short line
between Sacramento and San Francisco. We will, accordingly, consider
the situation and the policy of the Huntington group in these respects.
[Illustration: Map of California Railroad, about 1870.]
Competition of California Pacific
Public-domain text, read in full here on John Shaqi.
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