Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-05-19
mage carried by steamers of the Canadian lins

line, was at greatly reduced rates OWING " GULL
petition
AS 10 west-bound tonnage carried by the
Canadian Pacific Company from Eastern cities
of the United States TO Asia, we have little del
TO the tonnage from Pacific Coast ports to Asia
diverted by the Canadian Pacific line from the
Pacific Mail and Occidental and oriental
Steamship Companies lines from San Francisco
From data furnished by the United states IN
spector OF Customs at Vancouver, D. U, IL sp-
pears that of cotton piece goods, or donestics
alone s. S5I Cos pounds were exported from the
New England States through that port during
the last six months of less. During the Twelve
months preceding, which ended June ~,
1888, there were exported by that route 3, 2o00O
pounds OF these goods. These figures indicate
n rapid increase of the yelume of this branch OF
traffic, and in confirmation of this CONCLUSION II
may be noted that duf:ng the month OF Janu-
airy, 1879, no less than 2400 900 pounds OF these
goods We're similarly exported via Vancouver.
As the total export CT cotton goods from the
United States to China during the year 1888
amounted to 81 600 ,0Uo yards, or about lo,OOoOuu
pounds. il would therefore appear that 81 per
cent. of the total export of cotton goods from
the United States to China during the year
1ssS were shipped over the Canadian Pacinc
Railway and steamer lines. 1t Is fair to assume
that the Canadian Pacifc's influence in the
diversion of miscellaneous American manufact-
ures is also becoming serious.
As to passenger business, the influence OF the
Pacific line on the passenger trrtfic formerly
transported by American Carriers can be put
impertectly determined, on account OF the olfil-
Guilty OF obtaining statistics winch convey an
adequate idea of the variations in the business
involved. We are unable to state to what ex-
tent ocean passenger travel between the racine
coast aud Asiatic ports. in either direction, has
been diverted from the Pacific Mail ana Occl-
dental and Oriental Steamship Companies to
the Vancouver route and likewise have no data
within reach to show what travel between
European points and Asia, across the North
American continent, has been lost TO the Amer
lean rail and ocean companies through the COM
petition of the Canadian carriers.
We are able to state however, on the author
ity of the Auditor OF the Transcontinental Asso-
citation, that there were 1000 through passen-
gers by way of the Canadian Pacific Railway to
and from the principal cities in California, Ore
gon, Washington Territory and the western
coast of British Columbia during the six months
ending December 81, 1855.
This travel, amounting to say 2l.0OO passen-
gers per annum. must have sought the Ameri-
can hues had this foreign competitor not been
in the field.
10 What remedy, if any, do you suggest to
protect American railroad and steamship lines
against the competition of the Canadian Pacihc
road and the Canadian steamship line?
A-The Canadian Pacific Company exists ana
compels recognition 1t came into existence II
is true, under more favorable conditions IMAM
any other transportation line on the American
continent. II is a privileged competitor against
the carriers in the United States, and the rea-
sons for this are many and exceptional. The
road extends from Montreal on the St. Law
renee, 10 Vancouver in British Columbia. dis
lance of 2, 905 miles 1t also has lines to Quebec
and into the State of Maine, and direct connec-
tons with many of the United States roads, thus
giving it entry into the principal seaport and
interior cities of the United States between the
Atlantic seaboard and the Missouri river. 1t
also has direct connection with the Northwest
through Winnipeg and st. Paul connecting with
several domestic roads-in all controlling a
mileage OF $50 Its road is well equipped with
rolling stock of modern design and in great
abundance. 1t runs its own steamers on the
great lakes, and is now building Iine to Hall
lax, Nova Scotia. soon to be in operation which
will give it a connection with European ports
nearer by several hundred miles than any
United States ports.
The Canadian Pacific road. as an individual
corporation, has really been quilt by the Cana
dian Government; their gifts of money, of land
and of credit being uneXampled in the history
of the world, not hesitating even at largely in
creasing the national debt 10 expedite the road
completion.
AS already mentioned the Canadian Pacific
Railway is, under its charter, freed for all time
from taxation. by the dominion or by any
Province established after the date of the
charter. Its land grant in the western territory
is also freed from taxation for twenty years
unless sold in the meantime.
The Canadian Pacific Railway, in consequence
of the munificent aid 1t has received, has the
lowest fixed charges of any system of roads on
the American continent, being less per mile
by one-half than the average fixed charges pei
mile of the combined United States roads fol-
interest on their bonded debt alone. 1t also has
cheap labor and material for its construction
repairs and maintenance expenses. 1t has, ac-
cesslble TO large portion OF its lines extensive
fields of coal of the finest quality and in ex-
haustless quantity, thus insuring an abundant
fuel supply at low prices, in contrast with which
the item OF fuel alone is most serious expense
to the Southern Pacific Company, which pays a
greater price therefor than any other company
on this continent, the 5000 miles of country
through which its roads run being without
available coal
This much-favored foreign COMPANY should
not enjoy privileges and immunities denied the
railroads of the United States under the inter.
state commerce law, which, SO far it con-
Germs the subject under consideration, should,
as view it, be so amended as to recognize the
unequal contest in VIII .ch the United States car
riers are forced TO engage with foreign carriers
seeking United States or International traffic.
Interstate and international traffic of foreign
carrier should therefore be regulated by treaty
and Legislation, or other adequate means. Fur
ther than this, the law should include all trans
portation lines-water as we'll as rail- compel.
ing for the traffic upon which the railroads OF
the United States depend for revenue to meet
their financial obligations, which is of the ut
most Importance to the people dependent on
the roads and enjoying the benefits they confer.
II has recently been announced that grant
OF $4,000 or, IN round figures, $50 600 per
annum, has been arranged with ner Britannia
Malestys Government as a postal subsidy for a
line OF steamers TO carry the mails between
Vancouver snd Chinese and japanese ports II
has been asserted also that an admiralty OF
secret subsidy is additionally provided for these
steamers.
Compare with this the total amount paid by
the United States of less than s 900 for the car
riage via San Francisco in 1855 OF trans-Pacific
postal matter which was nearly thirty times
heavier than that of the Canadian line. In
other words the British and Dominion Govern
ments are contributing most literally to the
cost OF maintaining steamship line across the
Pacific. Just as the Dominion Government paid
so bouniifully towards the construction of theiI
great military and commercial railroad line
across the continent. steamship line thus
subsidized and controlled by au overland road
under one management from ocean to ocean
admirably built and with magnificent equip
ment far in excess OF current needs, unhamp
cred by our restrictive commerce laws, Is
naturally taking, gradually but surely the
traffic properly belonging to the carriers OF the
United States.
The Canadian Pacific Company, then, being
practically exempt from our laws. can dictate
the rates ard NEST successfully compete fol- the
transcontinental traffic. taking the same at les
rates than the United States roads eau afford &c
accept; taking il, too, without depicting the
revenue natural to and necessary for its loca
traffic. The United States ROADS, on the other
hand, are tied under restrictive provisions, and
are compelled to make large sacrifices of theil
local earnings. II they would compete with the
foreign lines for the through traffic. 1t may bt
said that there is no conflict apparent between
the United States carriers and their Canadian
competitors, but there is no conflict only be
cause the foreign line stands in the position of 9
victor, for it was able to demand unreasonable
concessions as the price of its cooperation with
the overland roads of the United States, who had
to accept the best terms they could obtain
Were that company in resluy subject to the
same rigid restrictions as the United States
roads, it could not have enforced unreasonable
demands. nor could it, IN this or any other re
spect, be in position to transact business with
in the limits of the United States under condi
tions more favorable than accorded 10 Amer
lean lines Therefore, | am of the opinion
after years of experience and observation II
traffic affairs that If any of the carriers are sub
jected 10 legislative restrictions, all the com
peiing carriers, domestic and foreign, rail ano
water, should be placed under like and uniform
control.
Tee results sought should be fair and remu
nerative rates for the carriers. and at the same
time reasonable and stable rates for the public
AS between American rail carriers, the great
obstacle tapart from foreign competitionl, here
tofore encountered In maintaining stability Of
rates, is the competition of ocean and inland
water carriers These water carriers should
believe, be made strictly amenabe to the inter
state commerce law, so long as that law Is en-
forced against the railroads. Ii should be fur
ther made legal for the rail lines TO enter with
such water carriers into joint traffic arrange
ments for the purpose of avoiding demoraliza
ton of the transportation and commercial in
terests involved; the law to grant the carrier.
permission to pool and equitably divide tnei
earnings on the traffic IL necessary.
Having thus afforded American rail carrier
much needed and proper relief from wasteiul
and unjGstifiable competition With each other
or with inexpensive carriers over waterway
which cost nothing TO maintain such compel
ton being admittedly hurtful alike 10 the ship
per and the carrier. would then by treaty aro
legislation provide and enforce that the rate
charged by Amer eau roads on United States OF
international traffic should be the minimum
which the foreign competitor may accept on tn,
same traffic. and if Leedful, would permit III,
American lines to enter into a pool of ca rrlinv