Daily Los Angeles herald., 1882-06-08
The Hardware Trade and Special
Rates.

| = New YORK, June 6.-The Tribune
says: The Pacific railroads enjoy a
monopoly of large share of the freight
business between New York and the Pa
cifc coast, as they avoid the competi-
tion of the Pacific Mail Steamship Com
pany by subsidizing it for maintaining
rates. Their only rivals are clipper ships
that voyage by way of Cape Horn.
About three years ago the overland
roads advanced their tariff rates to an
exorbitant figure. Those firms who
agreed to ship no goods whatever arouud
Cape Horn received special rates under
contracts which ran for year at time.
Perishable goods, or those wanted for
prompt delivery, are sent by mail across
the continent. Heavy goods and those
that are not needed quickly, go by clip
| per lines. The railroads, by their action,
forced large dry goods dealers to use the
rail route for the shipment of all lines of
articles.
A similar policy has just been adopted
by the overland roads against the hard
ware and manufactured-iro trade.
There are half dozen heavy firms who
have refused to contract for the exclu-
sive shipment of freight overland. The
principal ones are Baker & Hamilton,
NJ. G.. Hawley & Co., Carolan & Co. and
Holbrook, Merrill & Stetson, of San
Francisco, and Thompson, De Hart &
Co., of Portland, Ogn. This trade fur
nishes about one-third of the total ton
mage of the clipper lines to San Fran
cisco. On May Oath the California Fast
Freight line which controls the through
land shipments advanced tariff rates on
hardware and iron goods of all kinds
from $3.50 go to $l34. 40 ton. The con-
tract price, to obtain which shippers
must bind themselves to ship entirely by
rail for a year, is left at $50 ton. Great
Indignation is expressed by the hard
ware trade at this advance in rates. The
members declare it is intended to coerce
them into accepting contracts with the
overland line, and they assert that they
will pay exorbitant rates ON the goods
they are obliged to ship by rail rather
than put themselves in the power of the
railroads. They fear that if they accept
the terms of the roads the Clipper lines
will be so badly crippled by the loss of
business that the roads will be able to
advance contract rates.
An agent of the clipper lines said to-
day: 1--WE have the shippers in SYM
pathy with us. We cannot afford to
lose one third of our trade. If need be
we will reduce rates 25 per cent from
those of last year. They are now about
$40 to $l2 per ton. The hardware trade
is about the only trade that the rail-
roads can secure of which they have not
already obtained exclusive control. If
the roads can carry that stronghold they
will have virtual monopoly of the bus
mess between the Atlantic and Pacific
coasts" The agents of the California
Fast Freight line are confident of success
in compelling surrender of the non
contracting hardware firms. eff we are
not successful" said one of them yester-
day, 1--WE will get handsome profits on
the goods they must of necessity ship
by rail. Sometimes q clipper ship is
lost, and its cargo has to be duplicated
at once and sent by rail. Then again
an unexpected order depletes their
stock, which has to be replenished by
rail. +"