Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-08-27
a QUESTION OF COMPETITION.


better judgment, asks why the people of
California should concern themselves about
the competition of the Canadian Pacific
and American transcontinental railroad
lines? "lor if the latter are not able to
compete with the former, there is no one
hurt but the roads, while the business men
are the gamers by reason of the lower
rates accorded to them by the foreign
road"
TO any intelligence that has given the
subject thought the answer to this ques-
ton is obvious. The barest statement of
facts Sufices to expose the folly and short
slghtedness of the inquiry. If the Cana
dian and American roads were upon an
equality as to cost of operation, fixed ex-
penses, Governmental backing and inter
est-bearing capital invested, there would
be but one reason, a patriotic one, for
fayoring the lines of our own citizens.
But the roads are not on an equality in
competition. The foreign company re-
ceiyed ia miles of its track out of hand,
ready constructed for it by the British
Governments, home and colonial; it is
freed from taxation for long term of
years; it is enormously subsidized, in ex-
cess, in fact, Of the aggregate of all the
subsidies granted to American roads; it
has steamship connections with Asia that
are also heavily subsidized; it has in con-
cessions, grants, privileges, exemptions and
governmental aid of other character, such
assistance that it is well said that the
operating expenses of the road are guaran-
teed beyond the possibility of interruption.
On the other hand the American roads
are not only taxed, but pay tic the Govern
ment regular percentage of earnings to
discharge Indebtedness TO the Government
and are largely bonded for the capital with
which constructed. In the main, they
were built at very heavy cost for material
and labor; in some instances their capital
was realized upon bonds that were of neces-
sity sacrificed at half, and less, their face
value. Two of the roads were built while
the nation wasin the throes of internecine
war; unlike the foreign company thew
had no duty-free importation of material
for construction. They do not enjoy the
the advantage of enormously subsidized
lines Of swift steamers relating them to the
ASiatic trade
Now our correspondent will understand
that the railroad traffic OF the country is
so interviewer with the business of the
country. that it is impossible for the one to
take punishment and the other not to feel
Ii. If the inability to compete under
present conditions, and under the handi-
cap of an interstate commerce law that
does not operate to regulate the charges of
the foreign line, cripples the American
roads, and cuts off their through traffic,
they must, to continue in operation and
move the products and merchandise of the
country, derive their income wholly from
the local business The latter, under such
conditions, must bear the burden of main
tanning the roads that is now distributed
between through aud local shippers and
the trade of Asia with this continent
The unequal competition of the Canadian
Pacific, therefore, must result in visiting
alike upon the producers and consumers of
the country burdens they do not now bear,
and should not be called upon to assume.
The mutually of interest OF railroads and
the producers and consumers of State
carries with it mutuality of obligation and
liability-they are inseparable
IN this consideration we have taken no
account whatever Of the immediate effect
upon the commerce of the metropolis of
the State by the diversion of trade to the
line OF foreign road; nor of the propo.
sition that the latter shall be permitted
to enter the field of trade in the United
States AID carry out and bring in goods
between points in the Union, free of duty.
Those questions are of such magnitude as
to be independently discussed.
II now our correspondent believes that
his trade will be bettered, the people of
the Pacific States benefited, their ability
to deal with him augmented, by turning
over the through traffic business and
the Oriental trade that American carriers
now enjoy, he holds to views not enter
tanned by any perversion of the most far
seeing and experienced business men of
the Slope. Should that happen which his
question implies be believes might tome
about TO his beneft, he will find that while
foreign road, TO accomplish the conquest
OF peace, may deliver his goods to him at
a rate below that possible to the home line,
the people will not find their interest to
reside in his advantage. II he is to live
upon the prosperity of the community. it
should be his concern 10 labor in the
direction Of freeing the American trans
continental reads from the restrictions