The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1889-05-10
FETTERED BY THE INTERSTATE LAW.
.RaiIroad Managers Say That Their
Export Trade Is Vanishing
In the Cars of Their Rate Cutting
Canadian heIghbors.
President Van Horne Tells About the
Canadian Pacific.

NEW YORK, May 9.-The United States
Senate Interstate Commerce Investigating
Committee met again today
The first witness was President George FL.
Roberts Of the Pennsylvania system.
BY Senator Cullom-"What have you to
say of the relations between the Canadian
roads and those of the United
States?"
Mr.. Roberts-"Slnce the United States ha
begun TO regulate the railroad companies by
special legislation, the latter have been
placed at disadvantage in their competition
with those Of Canada. 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. don't know that at present the
Canadian roads do any serious injury to
American commerce, but they are in posi-
tion to do so at any time the managers see
fit"
'What advantage have the Canadian roads
over those Of the United StatesY
"TheCanadianPacife Is heavily subsidized
by the government so as to encourage the de
velopment Of the country. Both the Grand
Trunk andthe Canadian Pacific reads draw
their supplies from England free Of duty"
"Can roads in the United States be oper-
"There is considerable doubt as to the ans
wer to that"
amendment to the law that would place
American roads and Canadian roads on an
eQuality?"
81 think that any foreign corporation do
ing business here should be subject to tn @
same laws as the roads Of our own country.
President w. @. Van Horne Of the Cana
dian Pacific road was called and described
the Canadian Pacific road from HALIFAX
across the Continent tG Van Couver, and
thence by line Of subsidized steamers toChi-
ma, Japan and Australia. Canadian roads
compete with American for trade from San
Francisco, China, Japan and Alaska, in the
west and some of the trade from Ontario to
Manitoba. He said he did not know the exact
figures, but aside from coal, the percentage
of trade taken from the United States by
his road was very small. The road was be-
gun by the Dominion government in compli-
ance with an agreement made between the
government and British Columbia. Work
dragged along slowly and public sentiment
demanded that some private corporation
take the work from the government and
complete it. In consideration OF subsidy
Of S25, 900 cash, 25,000000 acres Of land
and certain privileges from the government,
the Canadian Pacific people took hold OF the
work in 1885 and completed it. The govern
ment has in many ways, financially and by
privileges, aided the road. 1t has not made
any money, and many OF its bonds were
bought with money made from the sale Of
lands which the government originally gave
the. Canadian Pacific Company. The total
amount Of subsidy and aid given the road by
the government was little over S62, 900, 900.
According to Mr.. Van Horne's statement,
transc0ntinental trade from China, Japan
and the western part OF this country over
the Canadian Pacific road Is constantly in
creasing. IL gets about 10 or IL per cent Of
all Western and Pacific trade.
"The impression Is general, said MIR.
Van Horne. "that the relations OF the Cana
dian Pacific road with its government are
exceedingly intimate. assure you the rela-
tions are anything but intimate. Nearly al
the rails and materials for the road came
from the United States. We have no ad-
vantage over the American lines. Although
labor IS somewhat cheaper with US, the
greater portion Of coal comes from Pennsyll
ynnia and Ohie and costs as more than u
M. Va Van Horne was Followed by Presf-
dent and General Manager John Newell Of
the Lake Shore 4 Michigan Southern rail,
road. He testified that his road
suffered severely from the com
petitive practices of Canadian roads
The Grand Trunk. by its Canadian operation
can do all the cutting and under bidding its
wants. As an instance the witness said that
his line and the Grand Trunk had the same
steamer fare from New York to Liver
pool, andthe same published rates from Chi
cago to New York. The Grand Trunk were
enabled to quote through rate to Liverpool
on provisions of Al cents. The best the Lake
Shore could do was fraction over 40 cents
President and General Manager Henry
Ledyard, Of the Michigan Central, followed
His road, he said was rapidly losing export
business by reason Of Canadian roads being
practically free to do as they pleased, while
American roads were fettered by the inter-
State law. To question as to what would
be the effect on shippers in the U Unite6 states
il Canadian roads were entirely eliminated,
he replied: Not an iota of difference"
Throughout the examination Ledyard was
quite bitter against the Canadian railroads,
and rather favored special legislation against
them.