New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-05-08
CANADIAN COMPETITION.
cYAUNCEY "a. pEpEw BEFORE THE SENATE
COMMITTEE.
HOW THE GRAND TRUNK AFFECTS AMERICAN
MISUNDERSTANDING POOLS.

NEUTRALITY-SUSPICIOUS. POOLS
The Standing Committee of the United States Sen
ate on Interstate Commerce continued Its meetings 81
the Fifth Avenue Hotel yesterday morning, the same
Senators bong present on Monday. NUMBER vi
visitors were present in Parlor during the course
Of the day among thorn being George Francis Train
Promptly at 10 O'Clock Chauncey NJ Depew was cahed
to the chair TO undergo examination Whioh ias'eo
two hours After explaining his reiauohs " H''
NewYork Central its terminal points ana conhec'ons
with the Grand Trunk Limo. he SAID that tne iA"o.
road had a peculiar position. II had the Whoe Oh
Canada from which to make good any serious ioSs's
and thus could compel the American roahs 10 give
percentage OF the trade II would demoraliIo thcm
Concessions were absolutely necessary. f3aouy "n''
these concessions wcrc Mr. Dcpew was uraoie 10 say
but supposed OF course diffcrcntias played role.
That remark bringing UP the subject OF o'neren'AS'
Mr. Depew said that he believed all ralifoaa mon
looked upon diferentials a necessity. The rarOad
hpe,nops he said differed from all other businesses.
II WAS impossible by competition to drive rival out
OF the ranks; 1t would continue TO exist Iho puohc
could get the benefits alono when dh"rennas "ero
allowed The tendency of the interstate commerce
Act was to give the stronger roads the major part
of the business and ~ weaken the more feeble ones
lie admitted however, IN answer to the chairmanS
question that prior to the passage Of the law thee
was a comparative recklossncss In the management OF
the roads In Ear as they were not governed pH
voluntary pools. This condition had been improved
since the law had been In operation, but had pools
also been made legal the beneficial effects ~ouh hA'o
been still greater.
FEARS OF THOSE WHO FRAMED TIT. LAW
The trainers Of the law had feared thai such
privilege would lead to exorbtant rates. The eAp'r'
ence OF railroad men proved however that these Tears
were groundless. The tendency OF rates, MI prpc"
continued, constantly d0Wnwam iheFe WIZ,
he said three evils which threatened III" AHVs'4
constantly decreasing rates, constantly III
creaslng expenses, and too many railroads lhero
was an upward tendency in wages Road STOCK was
heavier and better than formerly, the bridges "ere
moro substantial the road beds we're better ana isS'er
time was made At present freight trains ran
twenty-five miles an hour, rate "hich ps>Sc"e'l
trains hardly equalled few years ago contrary 10
the general opinion. Mr. Depew said that inc r0urr
upon railroad capital less than from that In
vested In other business Legislators looked upon
railroads in a peculiar They allowed inc ou'in
Ing Of parallel roads when there was absolutely no
need OF such construction. When once built, mo
road could not be crowded out "a rfvai IN aho'%
business The State should have the power AT an
times 10 say whether q road was necessary al"
whether it should be constructed. II was true ths'
the Interstate Law had checked somewhat me iNd"
eliminate building OF roads
Returning 10 the question Of thu Canadian railways,
the chairman asked what the United states conid 40
10 force them to obey the laws. To this Mr. pepcW
answered that the powers Of the lnteTHts'e Iomms
sion should be increased The Canadian lines should
be forced 70 obey the same laws as the roads OF IN"
United Otherwise they should be cut on the
Canadian Pacific had received such enormous subsidies
that Il could operate even without sustaining bust
ness basis When Mr.. Blair a. this point asked Mt
Depew II tho American people would care to pay
home railways 81 for what thoy could get In Canada
for so cents, he answered that it was not necessary to
egsate to that extent but that the SIX or eight thou
sand millions Invested in American Uads were en-
titled to some protection
PROTECTION TO AMERICAN ROADS.
The Government took taxes from them and yet
allowed an alien power to cnasCula'e the American
lines If through lin" from coast |" coast wc''
established in this country, subsidized and exempted
from the requirements 81 the law, that would be
case parallel TO that Of the Grand Trunk Of Canada
The solution of the difficulty lay, Mr. Dpew 'hOHght,
In ALI enlargement OF the power Of tho interstate Com
mission He thought that Canadian roads would
gladly accept such conditions. The Canadian roads
being relieved from the operation Of the Commerce
act the same condition Of affairs was brought about
as existed prior To rs passage
MI Depew understood, however, tbA the con
dition OF Canada such that the rOSls could not
hope 10 receive much from the treasury In tie future.
lie did not favor che cutting or Of CahHhan roa!s
for various roasoDs. II not good policy In the
first place Although Canadians hal been allowed &"
construct, unimpeded, railroads in this country,
Americans had manifested LITTLE d"'r- to d" the sam"
in Canada as they had plcJy Of land themselves and
the probable developments morr rapid and certain
Consequently, they preferred to Use their own terri
tory.
Recurring to the Interstate law, Mr.. Dcpcw said
that n could never DC literally enforced untl II re
cctved another form and pooling had been loyal
lied The object OF Governmental Interference was 10
secure the people good rats and sIatl" rates. ia"
weakness Of pooling had been the inability l" rnfoVo
the agreements. That would be obv!a"d by The
gallzed pool He almost prepared To say that
a legalized pool better than all Inerata" COM
mcrce act. The Government and pool could aErec
upon the tariff and the Government couh eit"Fce u
AMERICAN AND CANADIAN CARS
In rcsnonse TO the cNairman's question, Mr..
Denew then said that Canadian and American
cars were used interchangcably upon the respective
roads in the relation of about 10 10 IN favor Of
Americans We're 1t not for this nterChangr the traffic
could not be carried on lie had urged the repeal OF
an order Of the Secretary OF the Treasury ~ enforce
the tax upon coming from Canada
Said Senator Plat: We do not allow any coast
wise business to be done any but American vessels
Why then should we permit railroads to do practically
the thng Is not the same principle involved =
"Yesu replied Mr.. Dcpew, &" the principle IS
involved but there is principle that governs rail
road operations"
Mr. Depew said further, in agreement with Mr..
Patt that It would have been better had the system
OF allowing American freight to be carried 10y Canadian
cars never been adopted but 1t since 1t had been intro
duccd he would not be IN favor Of abolishlng It.
He would not admit with regard to Mr.. Kings ties
tmony that the $500 900 year formerly paid the
Eric from the pool was really paid by the shippers.
or that had the Erie not existed the rates other
" pool roads would have been propoTonately less
This payment" he said "woud NOT affect the rates
They were fixed at what termed living rates The
Erie not being able maintain these and got its share
OF business was allowed that annual sum. 1t
not money however but transfer Of tonnage equal to
| that amount. The balance was taken from tn" roal
which had transported the greatest amount OF freight"
SOME COGENT REASONS.
Returning, then, TO the Canadian Pacific Railroad
Mr. Depew said that the only the United