Lewiston teller. [volume] (Lewiston, North Idaho) 1878-1900, 1889-07-04
THE CANADIAN PACIFIC.


United States senate committee on rela-
tions with Canada, by an open letter to
the committee as to the effect of the
competition OF the Canadian Pacific
Railway on the American lines. The
conclusions and the data given in the
letter were at the request Of the com.
mittee.
Mr.. Towne repeats the testimony that
he gave before the committee, citing the
fact that the Canadian Pacific road was
built as military line, and that in ad
dition to receiving subsidy Of $25,O0O,'
600 and 700 miles of constructed rail
way, valued at s35,OOo,OOO, it is free
from taxation, is protected by its charter
from having any rival parallel line, and
has had donated to it 25,000,000 acres
of land, together with water and dock
privileges, making it the most valuable
concession ever granted by a constitu.
tional government.
As the road is not subject to the
interstate law, Towne says it can name
through irates.to intermediate points on
its lines, which the American roads
cannot do.
During sixteen months, dating from
January /, 1883, theuCanadiau Pacific
secvred ia tonnage..of over] 10000 900
pounds of freight from San Francisco to
points in / the United Estates east Of
Chicago, by establishing steamship line
to China and, Japan, subsidized; by
Canada and Great Britain, and operated
in,connection with the Canadian Pacific
road.
Towne says that the. road is now in
practical control Of the traffic, from the
Orient, which before the operation Of
the interstate law was controlled by
American roads. and shows that of
100000 pounds Of cotton goods
shipped from the United States to China
in 1888, so per cent, went by the
Canadian road and steamships. West
bound tonnage, he says, has been diverted
in a greater proportion.
Towne cites that grant Of $500, 900
per annum has been arranged by the
British government as postal subsidy
to the Canadian line to Japan and China,
while the total amount paid by the
United States government in 1883 for
trans Pacific postal matter was Sl7 900,
and the postal matter carried was thirty
times than that carried was thirty times
greater than that carried by the CANADIAN
line.
He says that the steamship line thus
subsidized and contr oiled by an overland
road, under one management from ocean
to ocean, and unhampered by our re
strictive commerce laws, is naturally
taking, gradually but surely, the traffic
properly belonging to the carriers Of the
United States.
The Canadian Pacific Company, he
says, being practically exempt from our
laws, can dictate the rates, and most
successfully compete for the trauscouti.
mental traffic, taking the same at less
rates than U. S., railways can affort to
accept without defeating the revenue
natural to tho necessary for its local
traffic. The United States roads on the
other hand are tied up under restrictive
provisions, and are compelled to make
large sacrifices of their local earnings, if
they would compete with foreign lines
for the through traffic.
Therefore, he is Of the opinion, after
years of experience and observation in
traffic affairs, that, if any of the carriers
are subjected to Legislatures restrictions,
competing carriers, domestic and foreign,
rail and water, should be placed under
like aud uniform control.
Mr. Towne argues for modification
of the long and long and short haul
clause Of the law, to permit the Ameri-
can roads to meet the competition Of
foreign roads, and urges that the pro-
vision which pro hibits pooling be re.
yoked, and to place all pooling organiza.
,ions under the scrutiny Of the inter.
state commission, with the power to
exercise regulative functions.
He finally contends that railroad
system, built by foreign power as
military measure and with the avowed
object Of promoting trade between the
provinces of the country that created it
by Withdrawing their trade from the
United States, should not be favored
where favo.s can be withheld. AmeIi.
can carriers should be relieved OF the
onerous restrictions laid upon them by |