Los Angeles daily herald. [microfilm reel] (Los Angeles [Calif.]) 1884-1890, 1889-05-10
INTERSTATE COMmERCE.
Discrsmi Against United
states Roads.

determination Against United
states Roads.
New York, May 9.-The Senate Inter
State Commerce Committee resumed its
work this morning. President Roberts,
of the Pennsylvania road, testified:
| "Since the United States began to regu-
late railroads by special legislation, the
latter have been placed at disadvan-
tage in competition with those of Can
ada. The effect of the Grand Trunk
roads being independent of the legislation
which affects those of the United States
is constant menace to the latter. l do
not know that at present the Canadian
roads do any injury to American COM
merce, but they are in position to do go
at any time their managers see fit"
| "What advantages have the Canadian
roads over those OF the United States ?"
"The Canadian Pacific is heavily sub
sidized by the Government, to encourage
the development Of the country. Both
the Grand Trunk and Canadian Pacific
draw their supplies from England free
of duty"
"Can roads in the United States be
operated as cheaply as the Canadian
roads,"
"There is considerable doubt as to the
answer to that question"
"What remedy have you to suggest, as
an amendment to the law, that would
place the American and Canadian roads
on an equality"
81 think that foreign corporations do
| ing business should be subject to the
same laws as the roads of our own coun-
| try. Ii the Canadian roads are permit
] kaI f,> froA Sn opd ~ ho
| United States, they should be made
cannot oblige foreign roads to conform to
our laws when out of the country; but
while they do business within our bor-
In fact, / am not sure that foreign roads
should be allowed the privilege they en-
Joy in this country, even under these
conditions. | cannot quite understand
how foreign roads should be allowed to
60 in and out of the United States, while
foreign vessels are not allowed to do
coasting business with this country"
Senator Gorham-"There is move
on foot, l understand, to construct
through line from the Pacific to the At
lantic coast to connect at either end with
subsidized line of steamers, its object
being to take trade that comes from
China and Japan and transport it to the
Eastern coast. What chance, in your
opinion, do American roads stand Of
controlling this trade?'
Roberts American roads have the
first call on all such trade, and, under
equal conditions with the Canadian
roads, could control it,"
| Roberts was in favor of pooling, as
only the different roads in the com bina
| ton would keep agreements under the
old system of pooling. Certain of the
roads kept part of the contract, but other
conditions were violated.
Senator Blair - ''Then is not the
true principal of railroad business combi-
nation rather than comps tition ?"
Roberts-"Ha Hardly; l am in favor of q
fair competition under proper legislation.
If this could be brought about it would
be much better than any POOLS"
President w. @. Van Horne, OF the
Cans adam Pacific, was called and de.
scribed the Canadian Pacific from Hall
fax to Vancouver, thence by line of
subsidized steamers to China, Japan and
Australia. Canadian roads compete
with American roads for the San Fran
cisco, China, Japan and Alaska and
some of the trade from Ontario to Mani
toba.
Senator Cullom-"What percentage of
your traffic is taken from the United
States ?"
Van Horne-"I do not know the exact
figures, but aside from coal the percent
age is very small"
"The transconLin entail trade from
China, Japan, and the western part OF
the country over the Canadian Pacific is
constantly increasing. 1t gets 10 or II
per cent. Of all Western and Pacific
trade"
Adjourned for an hour.
On reass embling, Mr.. Van Horne
again took the stand. THE impression
is general" said he, "that the relations
of the Canadian Pacific with the govern
ment are exceedingly intimate, but l
assure you the relations are anytt ing
but intimate, and not as cordial as, or as
intimate as, those between the
Pennsylvania road and the government at
Washington. Then nearly all our rails and
materials came from the United States.
Altogether, We have no advantage over
the American lines, as, although labor is
somewhat cheaper with US, the greater
portion of our coal comes from Pennsyl-
vania and Ohio, and therefore costs us
more than it does your roads,"
Van Horne was followed by President
and General Manager Newell, Of the
Lake Shore and Michigan Southern. He
testified that his road suffered severely
from the competitive practices of the
Canadian roads, and offered to furnish
the committee evidence in con-
nection with the Grand Trunk Railway,
in particular, which, he said, was now
one of the largest carriers out of Chicago.
Chairman Cullom accepted his offer.
President and General Manager Ledyard,
of the Michigan Central, said that his
road was rapidly losing business by rea-
son of the fact that the Canadian
roads were practically free to do
as they pleased, while the American
roads were fettered by the Interstate
Commerce law. Ledyard was quite bit
ter against the Canadian railroads, and
favored special legislation against them.
The 1ruSts Sized Up.
ALBANY, May 9.-The State Senate
General Laws Com mittee ordared last