St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-05-06
And the Probabilities Of an
Alliance With the Bur-
lington
In Connection With the North
ern Pacifie-WiScOnSin
Central Alliance.
Probable Effect of These Com
binations on TranScOnti-
mental Trade.

tween the Manitoba and Canadian Ia
cifc railroads has strong foundation.
Sir Donald 4. Smith and Sir George
Stephen, the Canadian Pacific railways
two biggest men, have become directors
of the Manitoba. and it may be stated
with authority that j. j. Hill either has
or will at once become director of the
Canadian Pacific railway. Another
rumor with apparently good foundation
is that the Burlington is lin on the
deal.n
1t will be remembered that the Cana
dian Pacific used its every endeav0r to-.
keep the business of the whole Cana
dian Northwest. When the Norquay
government failed to negotiate the
bonds for the road projected to relieve
the country of what was considered
monopoly, and was beaten at the polls
by Greenway and his party, the Cana
dian Pacific railroad kept up the fight.
even using force to prevent the new
road crossing its tracks. The roads
were partially built, and certain men,
bers Of the Northern Pacific directorate
obtained a controlling interest. Other
roads are projected and i'll course of
construction. The whole system
is known as the Northern Pacific
d Manitoba, of which James Nc
Naught, counsel for the North
ern Pacific. Is president. Though it
cannot be said that the Northern Pa
ciic owns the Northern Pacific & Man.
itoba system. the controlling interest is
in such hands that the two roads are
operated in close connection with each
other. This was
VERY SEVERE BLOW
to the Canadian Pacific. This road had,
up to that time, an absolute monopoly
of the great and growing grain trade of
the Northwest territories. This new
system of roads, controlled by such
powerful corporation as the Northern
Pacific, brought a competitor which ell
tirely destroyed the monopoly, and
which babe fair to become such pow
Central Pacific railroad in self-de-
Tense had to cast about them for
new alliances. The most obvious
ally was the Manitoba road, the great
rival of the Northern Pacific. Here is
a road which taps Manitoba just as the
Northern Pacific does, and the direct
Ors of the Canadian Pacific naturally
thought that such an alliance would
prove strong combination. Their first
move. however, was the purchase of a
controlling interest in the Duluth,
South Shore IL Atlantic, with the ulti-
mate obiect,as Mr.Van Horne admitted,
of building road from Duluth to Win
nipeg, so as to give an outlet for Mani
toba business through the United
States and also to give them lake port
of infinitely more intrinsic value
than Port Arthur ever can be. This
purchase of the Duluth, South Shore e
Atlantic also gave them controlling
interest in the International bridge
across the 500. which meant good
DEAL in view of the Grand Trunks
project of a Manitoba extension. If the
c. p. r. had not bought this road, the
Grand Trunk would have done so. Sir
Henry Tyler came over from England
with the intention of buying it, but
Messrs. Stephen and Van Horne were
too quick for him, and the president of
the Grand Trunk was very annoyed
about it.
For years there has been talk of an
intimate alliance, with the same practi-
cal effect as purchase, between the
Northern Pacific and Wisconsin Cen
trial. That there was some foundation
for this talk is shown by the recent
agreement entered into between these
roads. This agreement was entered
into so as to give the Northern Pacific
an entrance to Chicago and an Eastern
outlet, which would to some extent
counterbalance the Canadian Pacific
railroads facilities for Eastern trade.
This move Oh the part of the Northern
Pacific precipitated the cementing of
the relations between the Canadian Pa
citic railroad and the Manitoba: and the
alliance with the Burlington, which is
ALMOST CERTAIN TO TAKE PLACE,
looks very much like another move on
the railroad chess board which would
give the Canadian Pacific railroad and
Manitoba connections at Chicago equal
to those so recently obtained by the
Northern Pacific. What will be the
next move is difficult to say, but at pres
ent the situation seems to stand about
thus: The Canadian Pacific and Mani
toba have a great system of railway
which taps Manitoba, the whole north
west OF Canada and large portions of
nectiOn with the Burlington will give
them large portion of the business of
Nebraska, Colorado. Kansas, Iowa and
Missouri. They have three distinct
outlets eastwards-first, via the Cana
dian Pacific railroad to Montreal and
Boston: second, via the Canadian Pa
cific railroad to Port Arthur, and thence
by their line of steamers to Owen Sound
and the lower lake ports; third, via
the Manitoba and Burlington systems
to Chicago; with prospective fourth
via new line from Winnipeg to Du-
luth, thence via the Duluth, South
Shore & Atlantic eastwards; this latter
also giving an Eastern outlet to the
Manitoba through Canadian TERRITORY,
and the shortest haul to st. Lawrence
ports and Boston. The Northern Pa
cilic taps the whole northwest of the
United States, British Columbia and
Manitoba. By the new system of roads
now building in the latter province. it
will have an equal chance of getting the
Manitoban trade. Its outlet eastWards
is, of course, at Chicago.
1t seems probable that the Northern
Pacific's next move will be an alliance
with the Grand Trunk. This would be
in accordance with Henry Wizards
celebrated scheme for system of roads
from the Atlantic to the Pacific, and, in
view of the avowed desire of the Grand
Trunk to penetrate the Northwest,
would seem on a careful survey of the
facts to be
a VERY PROBABLE ALLIANCE.
1t would give the Northern Pacific a
valuable outlook eaStwardS. and would
give the Grand Trunk it's much-desired
western arteries, forming system of
roads extending clear from Portland
and Tacoma on the Pacific to Montreal
and Port Lewis on the st. Lawrence,
and Portland, Me-, On the Atlantic.
The latter combination would tap vast
area OF territory consisting of all the
Northwestern states and Manitoba, with
chain of lake ports entirely unri-
vailed; Duluth, Ashland, Milwaukee,
Chicago, Detroit, Buffalo and Toronto,
would all be reached by this gigantic
system of railroads, while the great
grain belt would be penetrated in every
direction, ard very short haul would
carry the produce of this vast territory
to the East. to Portland in the winter