Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-06-27
CANADIAN AGGRESSION.
PROTECTION DEMANDED FOR AMER
ICAN COMMERCE.
An Open Letter From A. n. Towne to
the Senate Committee on Our Re-
lations With Canada.

chic Company, which were answered by
him in clear and comprehensive man
ner. The publication of these answers
and of other salient facts connected with
the subject has aroused the active interest
of many thinking men, where before there
had been but apathy.
Mr.. Towne's mail has since been crowded
with requests for information and data,
and he has been thereby impelled to ad-
dress an open letter to the committee
covering broader ground than in his cata-
gorical answers to the questions pro-
pounded. The letter is of intense interest
to all who have the welfare of this country
at heart, and we regret that space will not
permit its publication in full. Its i'm
portance is so great, however. that we
quote some of Its salient points.
PROTECTION OF AMERICAN INDUSTRIES.
Supplementing his former answer to the
question, State any further matter which
occurs 10 you pertinent TO the subject upon
which you have been examined" Mr..
Towne says:
That the United States, under a system pro-
tectlye of our industries, has prospered in a
time or nation is universally conceded. Great
Britain, on the other hand largely depending
Tor her prosperity, as free. trader a share in
the commerce of the world, was thWarted in
her designs and hopes by the result of our last
election, which decided the issue that seemed
so threatening to our commerce and industries
ana hnally settled the future policy of the
United states. By voice of the people protec-
ton was the banner TO be hung upon the outer
walls, and which was unfuried on the east
south ana west; but on the north, forsooth, the
greatest OF commercial powers is left free to
prey upon our border and enjoy the fruits of q
pohcy calculated to enrich its people and Gov
eminent at the expense of our own. | refer to
the result of the election not in partisan spirit
but merely as illustrating the temper of the
American people on the subject.
CANADIAN PACIFIC RAILWAY INInIIcAL TO A,IEEI-
CAN INTERESTS.
The most insidious instance of England's
movements for the maintenance of commercial
supremacy, the invasion of American com
merce, and the absorption of the benefits of
American prosperity, is found in the Canadian
Paelilc Railway and its steamship lines Not
only has this road, with this cheap construction
and equipment, its cheap labor and b5unteous
Government assistance already cut largely into
a carrying trade that rightfully belongs 10 the
United states but 1t is steadily reaching forth to
seize more.
The President of the Canadian Pacific Rail-
way Is reported to have said that his company
was getting at the present time, about 10 per
cent. OF the entire transcontinental traffic
since this gentleman is reported to have adj
mltted that this amount represented only about
per cent. OF the entire traffic of his company
II is evident that this great subsidized and for
elgn corporation can sfford to force the rates
down far below the cost of carriage thus die
tatlng the rates at which the roads of the United
states must accept the remaining % per cent.
oil the Enthusiastically theirs-or abandon the
business. Ten per cent. of the traffic NAV not
seem large TO the casual observer, but it should
not be forgotten that the taking of a tenth at a
paving rate ynOiH M itSplf a Ia
haTm to that cOmpany-not burdened with as
heavy responsibilities as the American trans
continental lines and having a valuable local
business butt fixes the rates for saw one third of
the entire traffic of competing American lines AT
which they must accept the business or sur
render to the foreign carrier, which paws out
no money TO our people, owes no allegiance to
this country, and OF course is not compelled to
respect the strict and binding laws enforced
upon the American carriers.
This impending danger TO our industries and
enterprise, and this curious feature of protec.
ton, which has not yet attrsc the attention
It merits, should engage the earnest considera-
ton of Congress
MIR. Towne then gives the history of our
mercantile marine, showing that in 1855
American vessels carried 75t per cent. of
our exports and imports, while in 1861 we
carried but 663 per cent after the civil war
We carried but % per cent, and for the
fiscal year ending June 80, 1888, something
less than ii per cent. This decline of the
American foreign carried trade occurred in
the face Of marvellous growth in our for
elgn commerce, and hence leads to the in
evitable conclusion that foreign vessels
have taken the traffic from u.s.
The decline of ship-building for the for
elgn carrying trade is also pointed out. and
the writer proves conclusively that this re-
suit has been brought about by placing our
Sims nnpnnal r,atitinr L.;
British rivals, which, constructed where
money is cheap, where coal and iron are
procured at minimum expense, and
skilled artisans receive but meager remit
nerauon for their labor, can be launched
at a cost far below ours, and are then
manned by officers and seamen whose scale
of compensation ranges low.
A happy contrast is presented by cur
domestic shipping which has prospered
during the very period our foreign trade
steadily declined, for the reason that our
navigation laws restrict our domestic COM
merce to American vessels, which, thus
protected from unequal competition with
foreign carriers, occupy their natural
sphere with profit to themselves and bene-
fit to the people.
Mr.. TowIe continues:
apply the same principles to the transporta-
affected the American shipping trade, and like
results may reasonably be looked for Intro.
duce the competition of foreign railroad lines
constructed under signally favorable conditions
which, for example, render it needful for them
to earn future dollar to meet their fixed
charges where the average American road has
to earn two dollars and twenty five cents op-
Grating under large responsibilities which per
NIT them, if they please, to carry transcontj-
mental traffic from State to State of our nation
at value below the cost of carriage, without
peTceptibiy affecting their finances; enable
them to continue this until they practically
drive the American roads out of the through
business, and IL VIII be seen, when perhaps il
is too late, that foreign enterprise has been uur-
tuTed at the expense and by the sacrifice of
American interests. our navigation laws re-
strict our domestic commerce to American YES
sells. Why should not our laws proceed on the
same lines to restrict our domestic railway
transportation to American rail carriers? Who
can contend that American prosperity has been
furthered by the ruinous competition to which
our merchant marine in the foreign trade has
succumbed? Or who will contend that our
prosperity has been checked by preserving our
domestic water transportation for American
vessels As futile is ii TO argue that in railway
transportation unequal competition benefits
American interests, or contrariwise that the
protection of American railways against foreign
aggression will be hindrance to the prosper.
ity OF the American nation.
THE PROTECTIVE SYSTEM SHOULD APPLY To
TRANSPORTATION.
According to the last census report 1850 the
capital invested in manufactures (includlng
petroleum refining, mining industries and fish
cries, not including value of product of hand
trades, as carpenters, masons, blacksmiths and
hers working singly, or the statistics of gas
manufacturing or manufacturing by seam rail
roads, which two industries last named are not
summarized in copy OF cenSLS reports at hand
was s., Sl7 5yS $50: humber OF hands employed
3, OSllS total wages paid during the year, S952,
$500: value OF products. s., 1854 OS2.
Capital invested and total wages paid in min
ing Industries and fisheries are also omitted
from the census reports; but this amount. what
ever ii may be, is probably so small as not to
materially affect any comparisons
According to reliable estimates, the total rail
road mileage in the United States at the end OF
the year 1855 was about l5IO00 miles, and the
number of railroad adult employees is probably
not less than $50 600, representing population
of nearly six millions, one-tenth the entire in
hab,tants OF the United States who are entitled
either for manufactures or railroad operations
appear to be available for the years 1887 or 1855
we will conine our comparisons to 1850 In
1880. then, the total number of miles of road in
the United States, according to the last census
report was 81, 70l miles; the total cost of these
roads was as follows:
Construction of road Ii2 S07 lie
Equpment-. iiS,045. iSs
lUo, sig cij
Telegraph lines aud miscellaneous 20t, 9lS, 10:
The gross earnings tor the year $50 were $780,
i5O,5yi; operating expenses, not including in.
terest on invested capital, $3.50, 500 10.
1t viii be noticed that general manufacturing
requiring an investment of less than S. Goa, &C.,
oUJ of capital, turned out products to the tot