Southern Pacific Railroad History Center


Pricing and Divisions Department

This function is under the direction of an assistant vice president – pricing, who reports to the executive vice president traffic.  The primary areas of responsibility are:

  1. Jurisdiction over all freight rate and division matters
  2. Supervision over formal and informal cases and other commerce matters before the Interstate Commerce Commission and state commissions
  3. Supervision over handling of reimbursement questions resulting from misrouting, and
  4. State and national legislation affecting freight traffic.

Rate-making activities are segregated into the following general categories of bureaus:

  1. Agricultural and foodstuffs
  2. Lumber, paper products, and chemicals
  3. Manufactured products
  4. Minerals and copper products
  5. General adjustments and unit trains
  6. Transit and terminal adjustments, and
  7. Transcontinental rates.

In addition to rate-making activities, the following three bureaus arrange for the quotation, publication, and in the case of joint rates the division of revenue between the participating railroad companies, and, when necessary, defense of rates:

  1. Rate quotations
  2. Divisions and tariff, and
  3. Commerce.


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