Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-05-19

cess in capturing that which the American lnes
have built and heretofore held, they would IN
future become more aggressive, seeing tnat tnes
command the valuable local trafnc OF va. uT
m ain the earnings from which are absolutely
unaffected by any rates they choose 10 maxi "
secure American tonnage, however low 'n 81
may deem it necessary to make lh0se iales. ~
its Charter the Canadian Pacific RAILWAY wss
given the sole right to operate or conslIuc. ial
roads west of Ontario. How valuable Inis iis a,
is deemed by that company ana the Doi ila,a
Government my be cleaned from the ciicunl
stance that when the Province of MANITOBA re-
yolted against that CONCESSION. SO iar as II " d.
concerned, the Dominion Government. III con.
sideration Of the company reIinquishl99gs tna'
provision of its franchise for portion OF Mani
toba guaranteed the interest at Three ana Dal,
per cent. on bonds, amounting 10 sio,vooveeo,
payable in fifty years. The Canadian racing,
through this provision OF Its charter, STANDS
without danger Of rival west of Ontario for
twenty years.
The total expenditure by the Dominion Gov
ernment on the Canadian Pacific Railway to
June 50. 1897 was over 500, 900 900, in itself an
UNPARALLELED endowment Independently OF the
extraordinary franchise and lavish grants of
land bestowed on that company. The splendor
of these concessions must not cause us to over
look other privileges most important in the con-
struction and maintenance OF atranscontinental
railway. such as importation duty free OF steel
rails and other material used in construction OF
the rail and telegraph line. and freedom OF the
railway from taxation forever.
Contrast with this the conditions under which
lines competing not only with each other and
with the ocean lines in endeavoring to secure
overland traffic. but being compelled to compete
also against that foreign line which has no vital
interest or tangible responsibility dependent on
its conduct of American traffic. Even were its
through and local business interdependent, and
subject to the control of our Government, as in
the case of American lines, il should be observed
that the fixed charges for interest the funded
debt of the Canadian Pacific Railway averaged
$3.50 IS per mile, according to Poor's Manual for
1855. whereas the average interest on the funded
debt alone ofthe combined railroads ofthe United
States is, according to the same authority,
s., S32 46 per mile, and the average taxes (per
last United States census) of those roads Sl51 So
per mile, making a total of 81 ,4Ss 20 per mile.
Thus the fixed charges per mile of the Canadian
Pacific Railway in these particulars are but A
per cent of like charges to be met By the United
| States roads 1t will be noticed, therefore that
| to meet vital financial obligations-the failure
| to do which would be disastrous alike to the
railroads and the general public. and would adj
mittedly be against public pc icy-it is neces-
| sary that American roads earn So % per mile
| for each dollar the Canadian Pacific is required
! to earn. In the general average thus given for
| the combined roads in the United States, the
vast and inexpensive mileage of the roads con-
| structed in the great plains and valleys of the
East is included with the smaller mileage of the
roads west of the Missouri river, constructed
| through mountainous and comparatively
sparsely settled districts where the cost of con-
struction and maintenance is high, and may
add that 1t is upon the latter the great burden OF
conflict with our Canadian Pacific competitor
| falls
While referring to these latter roads would
call your attention to the great contrast between
| the privilege granted the Canadian Pacific oil
importing their material duty free, and the re
| strictions laid on the Central Pacific Railroad
| for example, which was built under the eye OF
| this Government and was expressly restrained
| from awaiting itself of the cheaper markets Of
| the world. 1t could not buy its iron or rails in
Wales or Belgium; it could not ship its material
10 San Francisco under foreign flag; it was
forced to purchase American rails at an average
of over $50 per ton, while foreign rails could be
| purchased at an average, including duty, of $50
per ton; it was forced to pay ST. 50 per ton fol
freight from New York to San Francisco when
| it could have shipped from Cardiff to San Fran
cisco for less than $40; it was forced to pay q
war insurance for freight thus shipped under
the American flag rs high as IL per cent, wher
the same goods could have foated under the
| English flag for less than per cent. On many
Locomotives it purchased there was war tax
paid to the Government of $3.50 each.
| What wonder then, that this company anG
| other American lines, all dependent on theil
earning power for capacity to meet their fnan
cial obligations. should view with misgiving
not to say with alarm, the encouragement o.
their Canadian rival, which has been indul
gently nursed into vigorous life by a foreign
Government, ana whose object is, by the use o
Government subsidies on land and sea, to diver
| American commerce from American ocean auC
rail transportation lines; nor are the transport
alton lines alone interested. This diversion
| AFFECTS every seaport from which the traffic bust
ness is diverted and every town and city which
the traffic ceases to traverse when diverted t
| Canadian lines. 1t cannot even be said in miti
CATION that consumers are benefited by the di
version, for it is obvious that except on raw
materials the cos. of transportation enters bu
slightly into the price the consumer pays fo
any commodity, while on articles OF genera
consumption the cost Transportation is almost
| if not altogether, imperceptible.
| Therefore it would seem to be the first duty o
this Government to adopt such measures as MAY
| be necessary to protect and foster its own vas
and important commercial interests, no longe
lndulging the apathy which is so well calcu
lated to further the ambitious schemes OF ou
foreign neighbors, who are striving 10 wres
from us commerce righttully our own
A. y. TowNE.
San Francisco Nav IL 1889