Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1889-06-28
CANADIAN COMPETITION.
Mr.. Towne Gives His Views to the In
terstate Commission.

| SAN FRANCISCO. June ga. n. Towne,
general manager of the Southern Pacific
company, has supplemented his testimony
given recently before the United States
senate committee on relations with Can
ada by an open letter of the committee as
to the effort of competition of the Cana
dian Pacific railway on American lines.
The conclusion and the data given in the
letter are at the request of the committee.
Mr.. Towne repeats the testimony he
gave before the com mittee, citing the fact
that the Canadian Pacific was built as a
military line, and that in addition to re-
ceiving a subsidy of S25. 000, 900 and zoo
miles of constructed railway valued at $780,
600, 900 it is free from taxation, is protected
by its charter from having any rival
parallel line, and has had donated to it
%, 100000 acres of land, together with
water and dock privileges, making it the
most valuable concession ever granted by
a constitutional government. As the road
is not subject to an interstate law,
Mr.. Towne cites it can name through
rates to intermediate points on its lines
which American roads can not do. During
sixteen months, dating from January l,
the Canadian Pacific secured tonnage of
over 10000, 600 pounds freight from San
Francisco to ports is the United States
east of Chicago by establishing steam
ship line to China and japan, subsidized
by Canada and Great Britain and form
ing connection with the Canadian Pacific
road.
Mr.. Towne cites that the road is now in
practical control of traffic from the lori
entail countries which before the operation
of the interstate law was controlled by
American roads, and shows that on TO-
000.000 pounds of cotton goods shipped
from the United States to China in 1888
60 per cent went by the Canadian roads
and steamships. West bound tonnage
has been diverted in much greater
proportion. NJ. o Towne cites silat
has been arranged by the British gov
eminent as postal subsidy to the Can
adam line to Japan and China, while the
total paid by the United States govern
ment in 1888 for transportation of postal
matter was SIT 900, and the postal matter
carried was thirty times greater than by
the Canadian line.
He says the steamship line thus subsi-
died and controlled by the overland road
under one management from ocean to
ocean, unhampered by our restrictive COM
merce laws, is naturally taking, gradually
but surely, the traffic properly belonging
to the corriers of the United States. The
Canadian Pacific company being practic-
ally exempt from our laws, can dictate
rates anu HOSD successfully COU1 peCS lOr
the transcontinental traffic, taking the
same at less rates than the United States
can afford to accept with depicting reve-
nue. natural to, and necessary for, its 10
cal traffic. The United States roads,
on the other hand, are tied up I'M
der restrictive provisions and are
to make large sacrifices of
their local earnings if they would COM
pete with the foreign lines for through
traffic. Therefore | am of the opinion,
after years Of experience and observation
in traffic affairs, that if any of the carriers
are subjected to legislative restrictions, all
carriers, domestic and foreign,
rail and water should be placed under like
and uniform control.
Mr.. TOwne argues for modification of
the long and short haul clause of the law,
to permit American roads to meet. the
of foreign roads, and urges
that the provision which prohibits pooling
be revoked, and to place all pooling organ
izations under the scrutiny of the inter-
state commission, with power to exercise
the regulative functions.
He finally contends that railroad sys-
tenn built by a foreign power as mill
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 faYors can be withheld.
American carriers should be relieved of
onerous restrictions laid upon them by the
fourth and fifth sections of the interstate
commerce law, SO that they may not be
denied any reasonable facility TO enable
them to contest their own ground against
invading carriers.