Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1878-12-04

Complete PARALYSIS of Trade on the Pacific
Coust IN Consequence of jay GomId's Er-
'Or!iOndte Tariff Charges OUer the Union
fncifc Acknowledgement of Bitter.
Finht by the Shipping Interest-Tte Mat
ter to Be Brought into the Courts.
New York Times.
R:norts from San Francisco describe the
almost complete paralysis of trade in conse-
quence of the enormous tariff exacted by
the agents of Jay Gould in the vain attempt
to compel New York and San Francisco
houses to stop shipping via the Horn. Yet,
while bitter denunciations Of the policy of
the Union Pacific come from every quarter,
New York and San Francisco houses dare not
declare open war upon the railway interest
Another budget of contracts takes fleet on
December l, and it is estimated that since
the beginning of September, when the move
ment commenced, the clipper trade between
New York and San Francisco has been re-
duced at least one-half, consequently the
shipping trade in the United States is thor
oughly aroused, and a meeting of ship-own-
ers is called for an early date to perfect meas
ures to break up the combination. Under
the natural arrangement of sending coarse
freight via the Horn, shipping has
of late years averaged about
Sl5,0OO,OOO per year, giving en-
ployment to about 400 vessels, valued at
$20,0CO00O These vessels constitute one
of the largest departments of tho American
shipping interest. It is now proposed in
view of the fact that the carriage of grain
from San Francisco to Europe can be made
to pay expenses of the voyage, irrespective
of any profits on bills of lading from New
York to San Francisco, to reduce the tariff
to nominal figure and carry
goods for next to nothing, and let
Jay Gould fight it out with the shipping
interest, which can make upon California
and European carriage what it loses on New
York and San Francisco bills of lading. This
plan is entirely feasible. 1t has been strong
ly urged by some large California shipping
agents in South street, but they declined to
adopt such policy except upon the COM
bined action of the ship-owners of the United
States, and suggested conference to fix New
York and San francisco tariffs at such rates
that the railways cannot compete without
great and constant loss The aim is to fill
the San Francisco market next spring with
goods that can be sold at lower prices than
winter shipments by rail, and to force the
o'h ltioiS0o ul3 SoouS houses eltuer W
cancel their contracts with Gould or take the
alternative of being undersold in their own
market. Another element, that will bring
matters into the courts, has been introduced
by large Thomas street shipping house, one
of the few that have declined to bind them
selves by a contract. This house uses
the railroad, as before, for fine goods, pay
ing the immensely advanced rates under
protest, with the reservation of the right to
bring an action against the Union Pacific as
a common carrier for the balance exacted
over and above the legal tariff. Other houses
in New York and San Francisco are adopt
ing the same plan, and Gould is likely to
have an immense number of annoying suits
on his hands before he shall have fully exc
Gated his project of annlhilating the New
York and California shipping interest.