Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-08-06

der which they published two rate sheets,
one known as the white list" and the
other as the pink list" The white list
contained the open or public rate; the pink
list contained the contract rate. Contracts
were made with individual shippers that
If they would give to the railroad line all
OF their traffic for q year TO the exclusion
OF ocean carriers they would have a re-
bate down TO the figure fixed in the pink
list
''DrIvinE ships OFF the Sea-
The battle began in earnest at this time
between the railroads and the ocean lines.
Whatever competition there had been be-
fore was Insignificant when compared with
that which followed the year 1877 At that
time the railroad interests evidently de-
termined upon driving the ships from the
sea, and they very proudly admit that
they succeeded in this effort at least TO
the extent OF multiplying or controlling the
water competition. The jobbers of the
Pacific coast were individually dealt with
their waybflis by the water lines were
furnished to the railroad, from which it
estimated the volume OF traffic and the
amount OF charges paid thereon by the
shipper. Upon this basis a rate was made
by adding to the ocean charge an add
tional allowance for the saving IN insur-
ance arising out Of movement by rail. the
saving in interest upon the value OF the
freight, and an additional amount for the
comparative certainty OF delivery and ex-
petition. Different rates apparently were
made TO different shippers. This secret
contract system. by which a rate WAS made
20 each individual. firm or shipper was a
logical application of the principle that
the carrier should charge what the traffic
would bear. For several years this sys-
TEN was successfully pursued with increas-
ing advantage TO the railroads; but under
the pressure OF strong popular agitation.
and owing 70 the fact that the shippers
were IN many cases found 70 have broken
faith the railroads determined upon again
publishing but one rate. To arrive at this
rate they adopted policy Of 'harTnoniza-
ton" az II was termed; they averaged
the rates upon various commodities which
had been charged 20 various shippers and
made a new schedule Of rates. from which
they varied as emergency might require
or expectancy advise by the current method
Of nebating.
I Pacific Mall Combine.
Thus far We have taken no account OF
the Panama route. which had been oper
and operated since the early days OF the
rush 10 the gold fields. This route was In
/ the control OF the Pacific Mail Steamship
company. In 1871. hardly two years aftei
the opening Of the transeontinsntal raj
route the Union Pacific and Central Pa
cific railroads entered into agreement 4
subsidize the Pacific Mail. buying its spac,
at an agreed figure. and often running IN,
steamships empty. This arrangement wa
continued until 1871. when the steamship
line was turned over 10 an association
known as the transeontinental association
which continued the arrangement unit
1858. so that during this period the PAnam
route Offered no serious competition q
the rain lines And 10 continue the histOT
Of this negligible factor in sea composition
il may az this time be said that the Pa
cific Mail Steamship company is now con
trolled. through stock ownership, BIZ tn
Southern Pacific company and has bee
since the year 1900.
Throughout this period Of competiti0
between ocean and rain lines We find tn
interesting rate condition 70 have existed
Class rates 20 Pacific coast terminals II
creased with the distance and were highs
from Atlantic ssabOard points than froi
Interior points; commodity rates howsve
which were created 10 meet special cond
tons az the seabOara-the weapons fAsl