COASTAL — It was called the "Great Free Harbor Fight" and it came down to a classic David and Goliath confrontation on the floor of the U.S. Senate between a hitherto undistinguished senator from California and a powerful railroad tycoon and his congressional cronies. At stake was the official harbor for the city of Los Angeles.
It all took place nearly a century ago and had a young senator named Stephen M. White caved in under the enormous pressure of railroad baron Collis Huntington and his congressional allies, the Port of Los Angeles would be in Santa Monica instead of San Pedro.
San Pedro had always been regarded as the natural spot for the harbor because the Palos Verdes Peninsula protects it from most heavy seas and gales. Even before the founding of Los Angeles, the pious but practical padres at Mission San Gabriel did a brisk business with smugglers who landed at San Pedro, swapping hides and otter pelts for supplies the Spanish authorities in Mexico would not send them.
San Pedro grew slowly but steadily through the 1800s, along with the tiny community of Los Angeles 20 miles to the north.
Soon after the Civil War ended, the Southern Pacific railroad was founded in San Francisco, and tracks began to reach southward along the coast. The founders were four of the most illustrious names in California history--Huntington, Leland Stanford, Charles Crocker and Mark Hopkins. All four had grown wealthy selling picks, shovels and other equipment to miners during the Gold Rush.
The four men rotated the presidency of the railroad, but Huntington soon emerged as the dominant member of the group, in no small part because of his forceful personality.
In its early years, the Southern Pacific served only California. The only rail connection to the East was via the Union Pacific, completed in 1869. Eventually, the SP would join the ranks of transcontinental railroads with a route across the Southwest into Texas.
As it reached southward, the railroad immediately made the old horse and wagon system obsolete, and it ruthlessly exploited its monopoly over all transportation in the state. SP agents, sometimes led by Huntington, would meet with town officials as its tracks were laid south and make their demands: considerable cash, a wide right of way and a large piece of property in the town center for a depot. If the town leaders objected, the route would be shifted to bypass the community, leaving it to die on the vine.
Everyone knew Los Angeles desperately needed outside railroad connections. In 1871, Southern Pacific named its price: $600,000 in cash, the usual wide right of way, 60 acres of choice downtown property, and the 20-mile Los Angeles & San Pedro Railroad, then the crucial link with the harbor.
Only after a year of bitter wrangling did the city accept the terms. The railroad gained a complete monopoly over all commercial shipping in and out of Los Angeles, and its agents took full advantage. For some goods, it cost more to ship from Los Angeles to San Pedro than from San Pedro to Hong Kong.
In 1874, Sen. John P. Jones of Nevada, one of the Comstock Lode millionaires, had the temerity to announce that he would build a short rail line from Los Angeles to a new seaside community to be called Santa Monica.
On Nov. 31, 1875, the day that Jones' Los Angeles & Independence Railroad was completed, the Southern Pacific cut all its rates in half, then halved them again the next day. Jones' railroad quickly failed and, with all other potential buyers scared off, he sold it to the Southern Pacific for one-quarter of its original value.
However, any kind of competition was intolerable to Huntington, and when a St. Louis group ran a new line from Los Angeles to what is now Terminal Island in 1891, the railroad baron developed a secret agenda unknown even to his SP partners.
First, he quietly purchased most of the Santa Monica waterfront. Early in 1892, he startled the populace of the region by starting to build his own harbor in Santa Monica, including a wharf stretching nine-tenths of a mile into the bay.
The Long Wharf (it was, in fact, the world's longest) became a tourist attraction. Sightseers would ride the old Jones rail line, now operated by Southern Pacific, to the beach to watch it taking shape.
Even before the new harbor opened in July, 1893, Huntington named it Port Los Angeles, strong-armed area firms into shifting their business from San Pedro to Santa Monica if they wanted to use his railroad and had it designated a sub-port of entry for the U.S. Customs District. This was unprecedented recognition for a private, partly completed port with no federal approval, but a good example of Huntington's clout.