Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-08-15
CANADIAN PACIFIC COMPETITION.
The Interstate Law Operates Against
the American Railways.

san Francisco Post, August 18th.
The competition of the Canadian Pacific
Railroad with overland lines in the United
States is attracting much attention. If this
were fair and equa. competition, little
could be said against il except from patri-
otto grounds, but the Congress of the
United States has, by the interstate COM
merce law, made the conditions of the
competition unequal and unfair.
The advantage which the Canadian Pa
ciic has over the lines in the United States
is benefit 10 some portions Of this coun-
try and an injury TO Others Those sections
whose trade is helped by the-low rates of
the Canadian Pacific will doubtless strongly
favor the continuation of the competition
under the unequal and unfair conditions
under which 1t is now carried on. Those
sections of the country which are injured
will, In all probability, make vigorous
protest against that clause of the interstate
commerce law which gives the Canadian
Pacific an advantage over the American
lines
San francisco is one of the points whose
trade the Canadian Pacific most seriously
affects. 1t has been shown that this subsi-
{ zed corporation of foreign Government
threatens to rob this city of much of its
commerce with the ORIENT and the islands
of the Pacific. To this extent, at least, the
L
wholly an injury 10 the development and
prosperity Of this city. There is, however,
another phase of the question which has
raised doubt in the minds of some
whether the competition of the Canadian
Pacific is not a benefit to the trade of San
francisco. The Canadian Pacific offers to
carry overland freight to and from San
Francisco at lower rate than our own can
do 1t.
1t. is enabled to do tbs by that provision
of the interstate commerce law which for
bids the railroads of this country from
charging more for short haul than for a
long one under similar conditions. The
object of this provision in the law is to Sc
| cure, if possible, low rates to the local sta
lions on the railroads. TWAS thought that
| the railroad companies would be forced to
make low local rates in order to make a
! through rate which would enable them to
secure business A consequence of this
| clause is that through rates have to be
| maintained al very much higher figure
| than prevailed before the massage of the
! interstate commerce law. The Canadian
Pacific, however, is not subject to this reg
ulation. 1t can, therefore, make low
through rate and still maintain lis local
| charges. This is the advantage the COM
pany has over the American roads. Con-
gress has practically bound the American
lines hand and foot and left the Canadian
free to enter the field and carry off the busi-
ness without struggle.
The question now arises whether this
unequal competition is benefit TO the trade
| of San Francisco, 1t must be admitted at
the outset that the merchants of this city
are enabled 10 get cheaper rates on some
| articles on account of il. II that were the
only result it would be an unmixed bene-
fit. But there is another side which more
than Offsets this advantage The Canadian
Pacific at this time is seriously affecting the
revenue of the five American lines that
reach this city. In the first place, it has
taken much of the through business from
them, and secondly, it has forced down the
| overland rates on much of the business
that is left to the American roads
Fruit, for instance which must be sent
by the shortest and speediest route TO
market to find profitable sale, must go by
| one of the American lines, and not by the
Canadian Pacific. If the Canadian Pacific
had deprived the American lines of much
of the overland business ii is inevitable
that what business is left must bear the
whole bulk of the expenses of the COM
pany. 1t would be impossible to look for
low rate on fruit after the roads had been
deprived of much of their overland bust
ness and consequently much of their rev.
enue. Every tuit-grower in the State,
therefore, is interested in seeing as much
overland business as possible going to the
American roads and not to the Canadian
Pacific.