Southern Pacific Railroad

“ Thirty years is a long period, and the arm of the railroad tribute-taker far-reaching. The vast sums which, unrestricted, the Southern Pacific has been able to exact run into enormous totals. From a dollar and cent standpoint, it has paid the Southern Pacific Company to control the machine. ”

“ This same policy would have had the important advantage, from the railroad’s point of view, of developing industry at points which were not affected by every change in the rates of its competitors. The Central Pacific was not the first railroad in the country confronted with the problem of how to treat the non-competitive points upon its lines. ”

“ In 1879 the Union Pacific, Central Pacific, and Pacific Mail companies agreed that the last-named should set aside space for 600 tons of railroad freight in each of its steamers moving monthly between New York and San Francisco. The railroads were to exercise full authority over the through rates of the steamship company, and for their part were to guarantee that the earnings on the railroad freight shipped were not to be less than $48,000 monthly westbound, and $35,000 monthly eastbound. ”

“ Union Pacific, Northern Pacific and their short-line connections provide exclusive rail service between many points in the Pacific Northwest and Portland, Oregon. From Portland, the two competitive routes in question descend, at times parallel, at times intertwined, to Southern California. The route closest to the seacoast consists largely of Southern Pacific. To the east of this route lies the so-called Bieber route whose completion in 1931 was authorized by the Commission to provide competition with Southern Pacific. ”

“ The few works which treat of the later period confine themselves chiefly to particular episodes in Southern Pacific history, often with the deliberate attempt to discredit the railroad company. The truth is that most writers upon the Southern Pacific have relied upon the reports of the United States Pacific Railway Commission or on Bancroft’s “History of California,” and very few have done original work from source material. ”

“ The Central Pacific Railroad extends from the Bay of San Francisco to Ogden, Utah, with a branch extending north from Roseville, in Central California, to the northern boundary of California; and to Kirk, in Oregon, and a branch extending south from Lathrop, in Central California, to Goshen, Cal., and a branch extending south from Hazen, in Nevada, to Mojave, in California, and a branch from Fernley in Nevada, to Susanville, Cal., and a short line in Oregon from Oakridge to Natron. ”

“ A good railroad from San Francisco to Salt Lake, with good terminals, as good a road as the Central Pacific, would cost at least $50,000,000. Of course, a road can be built for a much less sum, but such a road would not compete with the present line, for certainly the present rates are not as much as it would cost to haul the tonnage over a cheap line that could be built for much, if any, less than the figure named. ”

“ The data which have been presented show that, while the system of local rates in California was based originally upon distance, it soon became profoundly modified by conditions of cost, and still more by the presence of competition at strategic points, and by the occasional necessity of reducing rates in order to stimulate the movement of freight. The charges for short hauls in the interior valleys where the Southern or Central Pacific possessed a monopoly were made high, because traffic was scant and because the railroad was able to exact a monopoly return. ”

“ The joint rates established with Southern Pacific are lower than the combination of local rates that would otherwise apply. Since the Bieber route carriers can offer joint rates only with respect to a few commodities, they cannot match the lower rates offered by Southern Pacific to shippers of most commodities between points in California and points in the Pacific Northwest exclusively served by Union Pacific and Northern Pacific via Portland. ”

“ 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. ”

“ The foundation of any system of railroad rates is the distance which commodities are carried. Generally speaking, [260] the Southern and Central Pacific railroads, like other companies in the United States and Europe, varied their local charges with the distance between point of origin and point of destination. To illustrate this point briefly, two charts are here presented.
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Chart showing rates on second-class freight and on grain in the Sacramento Valley, 1876. ”

“ Born during the thirties, the idea of a Pacific railway was of uncertain origin and parentage. Just so soon as there was a railroad anywhere, it was inevitable that some enterprising visionary should project one in imagination to the extremity of the continent. The railway speculation, with which the East was seething during the administrations of Andrew Jackson, was boiling over in the young West, so that the group of men advocating a railway to connect the oceans were but the product of their time. ”

“ In it he says, "There would be no difficulty in the way of constructing a railroad from the Atlantic to the Pacific Ocean * * * * and the time may not be so far distant when trips will be made across the continent as they are now to Niagara Falls to see Nature's wonders."
To just whom belongs the credit of being the first to advocate a railroad to the Pacific Coast is in dispute. No doubt the idea occurred to many at the time they were being introduced and successfully operated in the East. ”