The Portland daily press., 1889-04-09
WILL NOT OBEY THE COMMISSION.
Senator cuIIom Says the Grand
Trunk Snaps Its Fingers.
The IouestIon OF Canadian compe-
titIon with American Roads.
Timely Topics From the City by
the Potomac.

WASHINGTON, April SIN regard to the
question of rates on the Grand Trunk, which
was recently discussed before the Inter-
State Commission, Senator Cullom said to-
day that there was no reason Why we should
wholly exclude foreign vessels from the
transportation business between, say New
York and Charleston, and allow foreign rail-
roads to participate in the carrying trade be-
tween Chicago and Portland; but II this on
omaly were to be tolerated any longer, the
very least we could require would be that the
Canadian roads, doing what might be called
coasting trade along our northern border
should be subject to the same conditions as
the American roads. The Interstate Com
merce law operates as handicap upon the
efforts Of American railroads to- cut each
other out Of business, but 1t cannot be di,
rectly enforced against Canadian roads, and
the Grand Trunk has just frankly avowed Its
determination to disregard the law, and
snapped its fingers in the face of Congress
and the Interstate Commerce Commission.
Congress could not bind the hands Of the
American roads, and then allow the free
handed Canadians to attack them.
The Senator said it would be the work OF
his committee this summer to find remedy
and method of applying 1t. The commit
tee will meet on May Sd in New York, and
get all the information Il can from railroad
men and shippers there as to the effects Of
Canadian competition with our roads. 1t was
not certain what the committee would do
next: 1t would probably not visit any other
point until July, and 1t was not certain
whether 1t would visit Canadian cities. OF
course in Canada 1t could not compel the at
tendance Of witnesses, and it might not be
worth while to go there. But some way
must be found to protect the American roads
from an unfair competition with the Canadi-
an roads subsidized by the British and Do
minion governments, and free from the re-
straint of the Interstate Commerce law.
Senator Cullom was aware that the ship
ping interests In Chicago, Detroit, Minneap-
oils and st. Paul, and other points along our
northern border, got the benefit of reduced
rates over the Canadian roads, and were
very much opposed to shutting these out of
the business or imposing any restrictions up
ON their cutting rates; but Congress could
not leave the American roads In the relative
position they now occupy. OF course there
are remedies that would be efficient If it
should be deemed needful to apply them, and
Senator Cullom believed they might be ap-
piled by the secretary without any new legis-
lation. Without having recently looked
very thoroughly into the legal question. his
opinion was that the trans-shipment law Of
1868 was merely permissory, and that the
Secretary Of the Treasury might in his dis
erection, refuse free entry into the United
States of American produce transported by
a Canadian road. This, of course, would
absolutely exclude the Canadian roads from
the American trade. But, while this exclu-
to our exclusion of foreign ships
from our c0asting trade, still it
might be better not to go as far. But one
thing was essential, and that was that If
Canadian roads were to compete with Amer
lean roads for American business they must
consent to compete under the same condi-
Pacific with the Northern Pacific road for
American business might easily be stopped
by dealing directly with the Pacific Steam
Navigation Company, which Is an American
company, and carries freight from our Pacific
ports to the Pacific terminus of the Canadian
road under bond. The Canadian roads were
developing policy of extending their lines
across the frontier in order to tap the enor-
nous American traffic, and it was evident
that many Of these branch lines were to be
built in the near future. The Canadian lines
could bankrupt all our East and West roads
If this policy were to be tolerated, while the
Canadiad roads could make very low
through rates, and the American roads
were prevented by the Interstate Commerce
law from doing 1t. The committees investi-
cation would cover this whole question of
the relations Of the Canadian railroad sys-
tenn to our own, and it would not be limited
to the railroads. The relations Of American
to Canadian lake shipping would be looked
into, and more particularly the Canadian
canal policy would be investigated. While
Canadian vessels have been using our lake
canals on the same terms as our own yes
sells, differential tolls have been levied on
the Welland Canal, greatly to our disadvan-
tage.