Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-07-15
PROTECTION IN A NEW AsPECT,
The Most Grotesque Phase of the Pro
fectiNn Policy

tectiVe Policy.
Stockton Evening Mail, July 9TH
The sharp competition into which the
Canadian Pacific has forced the American
ROADS has developed the mcSt grotesque
phase OF the protective policy that could ne
imagined.
The Canadian road has been subsidized
in cash and cash equivalents to the extent
OF l5o,OOO,O00. 1t is exempt from taxation
Tor all time, and has a practical monnpoly
Tor railroad purposes OF all of British North
America west of Ontario. EVERYTHING
which went into the construction or euuin2
ment of the road was released from the
tariff tax. So handsomely hes it been
treated by the Imperial and Colonial gov
ernments, that its per mile interest charge
amounts to but $655.
When the Central Pacific road was built
Its projectors could not buy their rails in
Belgium or Wales for $50 ton, as they
might have done, but were compelled to
buy American rails which cost them $50 a
ton. Instead of paving $40 a ton for
treightage from Cardiff, as they might have
done, they were compelled to pay SI7 80
from New York. They were not allowed
to float their material under q foreign flag
where they could have insured it for 3
per cent.-they paid II per cent. under the
American ensign. On many OF their loco-
motives they paid war tax of $500. All
these extra burdens, with the execution of
the insurance item, were the direct result
of the protective policy. The consequence
Is that the per-mile interest and tax charge
on the American roads is 81 .4S3.
Now, every dollar which the protective
policy forced the Americans to put into the
transcontinental roads is so much money
Invested, and the owners of the roads must
earn profit on it or sustain loss. Some
writers have estimated that the tariff has
added $50 100000 10 the cost of the roads
west OF the Mississippi river. But however
that may be, it is certain that, owing to the
considerations mentioned above, the cost of
the construction and equipment of the
Canadian road was third less per mile
than that of its American transcontinental
competitors. The reason why the per mile
interest charge on the Canadian road is but
5000, While that on the American roads is
81 ,332, is because the Dominion and I'm
perlal Governments assured the payment of
the interest on the larger part of the bonds
which were issued in aid of the foreign
line.
AS before stated, the Canadian road paws
no taxes, and the difference between its
per nile interest charge and the per mile
tax and interest charge of the American
roads is SS2S. Now, the Canadian road is
2 800 miles in length, so that, if we should
assume the operating expenses to be the
same, the Canadian ROAD starts into the
contest for transcontinental traffic with a
yearly advantage of $24 000,000 But as
there are three American transcontinental
roads this advantage must be trebled.
Again, the American roads are handi-
capped by the long and short-haul regula-
ton, while their Canadian rival nav make
such rates as 1t pleases carrying transcon-
unentaI freight at loss and making itself
whole by increasing the rates along inter-
mediate distances.
Now, the average protection given by the
tariff TO the product of the New England
factories is 81 per cent. Still, so per cent.
OF all the New England cottons that were
sold to China last year were transported
from the factories over the Canadian road
and its connections; for it should be under
stood that trains of cars, owned by the
Canadian Pacific Company, load in Boston.
run into Canada at Montreal, and traverse
foreign country until they arrive at Van
couver, on the Pacific coast.
And vet President Speare, of the Boston
Chamber of Commerce, declared the other
day that there were 500 points in New Eng
land which are now btnefcially affected by
the use they make of the Canadian Pacific
Railway and that New England does
not desire and lgW neUer submit to any cur
tailment of the privileges which she en-
joys through the use of that road"
Now here is lesson in political econ
omy which should bring common sense to
the front benches. Enjoying a protection
OF % per cent. under n system which COM
PEELED the builders of the transcontineutsl
roads to expend third more money than
they otherwise would have been REQUIRED
to expend, these philanthropists are up in
arms in favor of free-trade road which
has already absorbed 10 per cent. of the
domes1c transcontinental traffic of the
country. Standing on tip-toe and shaking
their hsis at every ship that brings cargo
OF British manufactures into the country.
they throw their own products into the
control OF road which has been so layishly
subsidized by British gold that it can un-
derbld any American road on the copti
nent
Not only this, the Canadian road now
has petition before the Secretary of the
Treasury asking to be allowed to exercise
the privileges of bonded carrier in the
internal commerce of the country, and
President Speare and the Boston Chamber
of Commerce and $50 manufacturing points
IN New England stand behind it.
we have sometimes thought that the
managers of the transcontinental roads
were hard lot, but they are race of in
nocents compared with these New England
philanthropists.
OUR SISTER REPUBLIC.
A Mexican Editor Jailed dforLibeI-French