The Portland daily press., 1889-05-08
THE CASE OF THE GRAND TRUNK.
General Manager HIxon Before the
senate Committee.
The Proportion OF American Freight
Carried by Canadian Lines.
chauncey DePew's Opinion OF the
Interstate Law.

committee to inquire into the workings Of
the interstate commerce law today there
were two witnesses whose testimony will
command wide attention. General Manager
Joseph Hixon Of the Grand Trunk road.
represents the Canadian line most interested
in the subject before the committee, while
President Depew Of the New York Central
road, is so widely known as the head of one
Of the largest railroads in the United States,
and as man whose judgment and fairness
command respect, that his opinion Of the
law will be received with great interest.
Mr.. Hixon, upon taking the stand. ac-
knowledged that the Grand Trunk road con
trolled freight between Portland and Chi
cago, and said that each road under separ-
ate management did not like to acknowledge
that the separate management was merely a
matter of form, but finally had to. Accord
ing to the statement of Mr.. Hixon, the
Grand Trunk road was allowed by the
American roads to make rates for West
bound freight. II they did not have this
privilege they could not dc business.
Senator Cullom asked what assistance the
Canadian Pacific road received from the gov
ernment. The witness replied the Canadian
government had done S37,00O,00O worth OF
construction on the work and given S25, ,0OO.-
900 in cash and $780, 900 worth of govern
ment land. He unwillingly acknowledged
the foreign trade through Canada from the
United States was much greater than Cana
dian trade though the United States. The
Canadian Parliament annually voted money
to various branches Of the Canadian Pacific
road as subsidies, and lines of steamships
were yearly subsidized by the government.
In 1888 freight which passed through Mon
treal from the western part OF the United
Canadian line to Portland, Me-, amount
ed to 81, ,241 tons. The witness stated also
that 40 per cent of all the business done by
the Canadian Pacific railroad was due to the
United States. In the Northwest, particu-
larly in Michigan, almost all the carrying
trade was done by Canadian trunk lines.
Chauneey M. Depew took the stand and
told the committee what he knew regarding
the workings of the law. Mr.. Depew said
that the tendency of the interstate commerce
law was to give all the carrying trade to the
large roads. The smaller roads could make
no money. All reads were obliged to pub
lish their rates, and as they were not allowed
to give rebates. the larger roads were the on
ly ones that could compete for the trade. In
explaining the relation of the New York
Central to the Erie road, Mr.. Depew said
that each road was independent of the other
and that there was only an interchange of
business. Furthermore, the New York Cen
trail had very little business with the Grand
Trunk road.
BY Senator Cullom.-Have you favored ex-
tension of the Grand Trunk lines in the
United States.
Mr.. Depew-I have not. The United
States roads are practically at the mercy of
the Canadian roads as to the local traffic.
They can fix the rates from Chicago, and
than ra0nati0n hu axtra
charges on goods passing over the Canadian
portion of the line. 1t is entirely matter of
discretion with the Canadian roads how
much they shall charge. They have an
agreement with certain steamship lines
whereby they guarantee them so much busl-
ness
Senator CulIom--Is 1t true that the Cana
dian roads make up their losses from their
American trade?
Mr.. Depew-So understand. But think
that the Grand Trunk management Is trying
to be honest in its dealings with the people
OF the United States. But 1t seems TO me
that 1t is queer law which tries to regulate
the American roads and allows an alien
road. that does nothing for the support of
the government to come in and cut the
rates. Since the passage OF the Interstate
commerce law, the condition Of the roads
has been improved, but the improvement
would have been greater had pool been al
lowed. The tendency of all the roads Is to
lower rates, and no pooling can prevent 1t.
Mr.. Depew said further that in his opinion
foreign roads, whether Canadian or Mexican,
should be obliged to conform to the laws of
the United States. The effect of the inter-
State commerce law has been beneficial to
the public at the expense Of the roads. 1t
has also stopped the indiseriminate building
of unnecessary roads by capitalists looking
for investment. The roadbeds are better,
I the cars are better, and the service is better
throughout the country than it was a few
years ago. At present even the cattle and
meat trains make better time than the ex-
press trains OF twenty years ago.
By Senator Cullom-D0 you favor the
abolition of Canadian roads In the United
States?
THAT is not necessary. Make them conform
to the same laws as the American roads,"
Mr.. Depew's opinion is that the interstate
commerce law will never be success until
pooling under some other.name is legalized
and the American roads are allowed to make
rebates
Mr.. Depew stated that there were ten Amer
lean cars in Canada to one Canadian car in
the United States. IL a duty was charged
on foreign cars entering In the United States,
it would be detrimental to American roads
as each line uses any cars that happens to
be on the line. He said the Erie road re-
ceived yearly under the pooling system
S500,000. This was not in the nature Of a
buying off process" but simply portion
OF the profits made by the pool roads.
Mr.. Depew continued: I'm my opinion, rail-
roads are not built with the intention Of
getting differential rates. A majority Of the
unnecessary roads in the country are due to
the misguided enthusiasm Of the people who
reside in their vicinity"