Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-08-06
MAKING RATES FOR RAILROADS
Some History of the Process that Has
Been Interrupted.
STRONG ARM METHODS OF PAST
. InteresttnE Review of TranScOntA-
mental transportation History
by the Interstate Com
meree Commission.

When the Interstate Commerce Commits
sion passed on the Spokane, Reno and other
rate cases. the result of which was the de-
termination OF the principle Of the long
and short haul" and the announcement
Of a new basis for rate making on ship
ments between the Atlantic and Pacific
coasts including intermediate points, its
written opinion included a very interest
ing historical review OF transportation dur
ing the earlier days OF the trsnsconunental
lines A portion of this review, which gives
something of an insight as to how the
rates from eastern 70 western points grew,
how the opening OF new lines made changes
in the situation and how the competition
by water was finally taken care of. is here
reprinted:
The TrOublOua Sea.
In 1853. when the Union Pacific and Cen
trial Pacific railroads were united at Prom
ontory Point. Utah. there was no such
thing as a transoontinentai rate, except
ing as II was made up OF = combination OF
locals. IN fact. at that time II was not
expected, so Senator Stanford has testified
before a senate committee. that there
would be any real competition between
the trRnscontinental railroad lines and the
ocean carriers. The original purpose Of
CONSTRUCTIVE ACuAIdl Eod0s 20
far as It's California promoters were con-
cerned was 10 carry eastward from the
Pacific coast TO the interior. ana the rates
MADE across the Sierra Nevada mountains
were made TO meet and overcome the then
existing competition OF the mule team. II
was not the primary purpose 20 extend
this road across Nevada. hut only 10 fur
nish . means of communication between
- .1Fr aF nd n
ing towns along the ridge Of the Sierra
Nevadas and on their eastern slope. Con-
fessedly Il was the lure Of the government
subsidy which induced the extension Of
this line 10 the eastward The purpose OF
the Central Pacific was TO act as the dis
tTibutor OF the ocesn-borne freight which
was brought into the bay Of san Fran
cisco by sailing ship coming In around the
Horn: and for some time following the
Establishment OF this through transconti.
mental route no serious effort was appar-
emily made 70 induce the all-rAA overland
movement OF traffic. which did not re-
quire especial or express service
First Through Rate.
The first through rate published was Al
open rate Of y per 100 pounds. first class
This rate was scaled down. being lowe
from Pittsburg. and stiIl lower from Chi
cage and other points When competition
was begun with the clipper ships out o
New York, class rates were reduced 10
q scale. and these were graded from tn
east westerly Commodity rates were ais
az this time established In an effort 4
take from the ships important volumes o
business These open rates, however. wer
found 20 be unsuccessful IN developing an
considerable amount Of transoontinentl
business. owing to the fact that whatevs
afes the railroads made were met by N
est lines Accordingly In 1871 the Uniol
Pacine and Central Pacific. which workel
together in this matter, instituted what i
ka0Wn as the special contract system un