Sacramento daily record-union., 1889-08-31


Henry L. Dodge submitted the report of
the committee which considered the Nicar-
aqua Canal. The report of Captain Merry
was approved, With the exception of two
amendments which perfected minor state
ments. The report was unanimously
adopted.l
Captain Merry offered a resolution direct
ing the Secretary to publish a pamphlet
containing all the reports, copy to be sent
to each member of Congress and every
member of the Conference.
Benjamin Sloss offered an amendment to
print sufficient number of pamphlets to
supply every one who might wish 10 obtain
one, and urging upon all to request their
friends in Congress to act favorably.
n. 2. Cajpm IAN ended to print the pro-
ceedings of the Conference in connection
with the reports.
Captain Merry accepted both amend
ments and the resolutions were adopted.
RAILROAD TRAFFIC..
A. R. Boggs submitted the following
report
SAN FRANCISCO, August so, 1889.
The special committee to which was referred
the reports on the question of THE application
of the interstate commerce law to the carrying
trade of the Canadian Pacific Railway, or the
abolition of the bonding system for railway car
rage through foreign territory convened at
A. 5. Hailidal, and the majority report, signed
by Arthur r. Briggs, Albert Gallatin and Robert
Watt, having been read and thoroughly dis
cussed, the majority report of Messrs. Briggs,
Gallatin and Watt was adopted as the one this
committee deemed the best solution of the
question before it, and as result of our deliber-
ations present the following resolutions for
adoption by your Conference:
ReS0tued, That 1t is the sense of this Confer
ence that the fourth clause of the interstate
commerce law under the popular Interpretation
aon n hn
commercial interests of the Pacific coast; that
it is believed liberal Interpretation OF taid
fourth clause would enable our domestic lines
OF railway to successfully compete with foreign
companies in the carrying trade between the
Pacific and Atlantic coasts; that every consid-
Grafton, commercial and national, warrants
active and earnest endeavors to protect our do
mestic transportation interests against all for
eigu aggression. and that we believe strong
and united appeal should be made tn the Inter
state Commerce Commission for such interpre-
tation of said fourth clause of the law as will
enable the domestic lines to restore and main
tain the ascendency in the carrying trade.
ReSOlUed, That in the event of failure to secure
the relief sought from the Interstate Commerce
Commission, this Conference appeals TO Con-
gress for a modification or repeal of said fourth
Tor long and short haul) clause.
RGs0lUed, That copy of these resolutions be
sent to the Pacific coast delegates in Congress,
and that the delegates be urged to use every
consistent endeayor TO place this matter prop
erly before Congress, to the end of promoting
and protecting railway transportation interests
| in the United States and the commerce OF the
Pacific coast.
Resolued, That a copy of these resolutions be
| furnished to the press OF San Francisco.
The resolutions are signed by the various
delegates in attendance from different
points at the conference.
Mr.. Briggs then read the majority report
| of the committee as printed below.
A. S. Hallidie read the minority report.
| rNTEpcT.rr caMMEpcr
The majority of the Committee on the
| Interstate Commerce Law reported as fol-
| lows
Your committee, to whom was referred the
| subject, The Application of the Interstate
| Commerce Law to the American Carrying Trade
| of the Canadian Pacific Railway" or "The
Abolition of the Bonding System for Railway
| Carriage through Foreign Territory has had
/ these alternate propositions under considera-
1 tiou.
! The subjects are broad enough in scope to
merit more consideration than is possible in the
! limited time allowed to prepare aud present
| this report.
| The facts may be briefly stated as follows:
Several lines of railroad built and operated
| by American capital, in American territory,
| subject TO the interstate commerce law and
/ laws of the State through which they run, have
| until recently enjoyed the inland transporta.
tion between the Atlantic and Pacific domestic
/ commercial points,
Recently the Canadian Pacific Railway, a
! fore gn corporation, built and operated by for.
| elgn capital IN foreign territory, and there
| fore not subject the interstate commerce law oi
/ this country, has entered the field as a com.
petitor for the trade and is carrying passengers
| and freight at rates below those of the domestic
| roads
| If this statement was complete in itself il
| might be said the competition was legitimate
| but to the extent that the interstate commerce
| law OF this country, in its application, confeIs
| benefit to the foreign company and operates
against domestic lines, so far is it detrimental
| to the commercial interests of the United States
If, too, as is claimed the law as interpreted is
| the principal obstacle in the way of success
| fully competing with this fore 'gn line for this
| carrying trade, an early remedy should be
| sought and applied.
The Canadian Pacific Railway was constructed
| and is maintained under conditions most favor
| able to that, company. For the road from Mon
| treaI to Vancouver, covering distance of 2 go
miles, which cost S16l, ,O0O, ,00O the Canadian Pa
| citc Company received from the Dominion Gov
| ernment Sl05.000 COO in cash and equivalents
| and sllO,oOOOOO in guaranteed securities. Its
property is made free from taxation; it received
land grant aggregsting 25, ,OO0, 900 acres which
| is exempt from taxation, so much as is unsold,
| Tor period OF twenty years. 1t is fed by con-
meeting lines of steamers, the one from st. John,
| the eastern terminus, TO Great Britain enjoying
| contract for carryi mails for which il re-
| celYes S5OOOOO annually, and the one connect
ing with the western terminus for carrying mail
10 Chlna ana Japan ! Geives annually s30O, 900.
THE LINE THROUGH MAINE.
| VI tHe sLOIl lllle Dulil the forests OF
| Maine this Canadian railway company receives
subsidy of SlS0,000 annually for a period of
twenty years. It has secured control OF lines
| in Maine, Michigan, Wisconsin and Minnesota
| and has been granted a franchise from the
| United States Government to construct bridge
across the Straits of ST. Marie. In all, this COM
pany now controls over 5000 miles of road
These facts are reeited for the purpose of
showing the strength of the foreign line and
| the competition established against the domes-
| tic railway lines of this country.
| Viewed frnu thp Sto inf 4
est, the position would seem TO warrant vigor-
| GUS and united effort in favor of our domestic
| lines. While the policy of the great railway
corporations of this country has not always
| been such as to promote feeling of friendly
cooperation on the part of the people, individ
| ual grievances should not be made the basis of
unfair treatment toward these roads. particu-
larry at time when the commerce of the eoun-
try is imperiled Neither should the fact be
lost sight OF that railway competition between
the Atlantic and Pacific coasts has long been
desired. That competition has been secured in
the benefits
If the interstate commerce law, which was
enacted in response 10 popular demand, so
hampers the domestic railway lines as to rem
der successful competition with the foreign
company impossible, good policy suggests early
modification of that law, but nothing should be
done 10 remove that wholesome regulation of
freights and fares which is secured through fair
competition. An honest difference of opinion
exists in respect TO the benefits of the interstate
commerce law to the people OF this coast
Commercial points enjoying the advantage of
maritime commerce naturally seek low rates
| for the long haul, and therefore the fourth
clause of the interstate law, as now interpreted
operates against seaboard interests. The cues
ton is, whether q liberal Interpretation of this
clause will not afford the relief sought by the
domestic lines and prevent a diversion of the
carrying trade to foreign companies.
EX-coSNISsIoSER WALKERS IDEA
Ex-Interstate Commissioner Walker on this
point says: 81 am of the opInioi. that the fact
OF Canadian competition constitutes a conspicu-
Gus example of that diversity of circumstances
which excepts traffic upon American lines from
the application OF the rule, aud he afirms the
right of the transcontinental lines to meet the
rates of the Canadian Pacific on traffic from the
Pacific Coast to points east of the Mississippi
river and of the lines between the Atlantic sea-
board and st Paul aud Chicago to meet the
Canadian Pacific rates over this territory, not
withstanding the intermediate rates may be
higher"