Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-07-25
COMPETITION BY FOREIGN RAILWAYS

COMPETITION BY FOREIGN RAILWAYS.
The New York Eceaing Post is in di-
lemma on the question of the unfair COM
petition of the Canadian Pacific Railroad
with the transcontinental American roads.
Commercially, its sympathies are with its
clientage in New York and the Central and
Western States; politically, it SHES at the
faintest shadow of anything like protec-
ton. Yet it must accept either one or the
other of the positions indicated. There is,
as we view it, no middle ground to take
we must protect the American transconti-
mental system, or submit to the diversion
of through traffic tie a foreign line.
Let us look at the position of our con-
temporary with calmnesa. Speaking of
the action of tn Chicago Board of Trade
1t says:
The Board of Trade committee are opposed to
any and every kind Of RESTRICTION on the Csna-
dian roads doing business in our territory and
they say that any political party which becomes
responsible Tor imposing such restrictions will
tition of railroads, and call for the enforcement
of the interstate commerce law and the abol-
1shment OF all associations which seek to evade
its provisions. This Is rather sweeping, but per-
hapS something as emphatic was needed to pre-
vent the SENATE committee from going too far
the other way in its treatment of the question at
issue. Justice requires that the Canadian roads
shall not have an advantage over our own in
carrying American freight. If the long-and
short-haul clause, apple able to our roads, but
not to the Canadian operates as an advantage
10 the latter, that is an evil to be rectifed.
Here is clear admission that if there
is injury to our home roads, it is an evil to
be rectified. But the Post thinks no new
legislation is necessary that the power
of the Interstate Commission to discrim-
mate or afford relief where the circum-
stances and conditions are not substantially
similar" gives scope for relief 1t quotes
the Railway RerieU as saying that the
American railway lines have the right to
meet the Lake and Canadian rates without
reducing their intermediate rates. But
manifestly the question of remedy is a
secondary matter. The Post in further
consideration of the subject, shows its dis
favor to applying the principles of "pro-
lection to the American roads, but adds
The statement so often made that the Cana.
dian Pacific Road is competing unfairly with us
by reason of a Government subsidy, ignores
our subsidies to the Pacific railroads. which
counting bonds and lands together. are proba-
bly, greater than those of the Canadian line
although ours were divided among several COM
panies, instead of being concentrated on one.
As a matter Of fact, The subsidies granted
to the Canadian Pacific Railroad exceed in
the aggregate the sum of all the subsidies
granted TO American roads. Disposing of
that premise of the Posts argument, there
remains the admission that the American
subsidies were divided among many roads.
The situation would, possibly, be somewhat
different had all the American subsidies
been given to one transcontinental COM
pany. But the very fact that they were
divided among many, forces to the front
this vital truth, that there was thereby
created internal competition between
American roads which has reduced the
earning capacity of the original line
that first laid out aided and con-
structed as military and post road. 1t
lis germane to the debate to here interpo-
late the historic fact, that when this origi-
nal line was aided by the United States it
was not contemplated that the Govern
ment would put into the field against it
competitors to divide its earnings and
cripple its capacity, to earn sufficient in
excess of operating expenses and other
necessary expenditures to enable it to
meet its obligations to the Government
Yet that is precisely what the Govern
ment has done.
But passing that consideration, the Post
must take into account these other facts if
it desires to reach a just conclusion con-
corning the lines of transportation of its
own country First. that the American
subsidies are demanded in repayment by
the Government, and that given percent
age of earnings long has been, and now is
being paid into the national Treasury in
discharge of such obliga ions. Secondly,
that the American road, by reason of
state of war during construction, was not
able TO avail fully of the subsidy grants
made, butwas compelled to sacrifice them
largely in order TO convert the aid into
available coin. Thirdly, that the Amer
lean road was constructed under abnormal
conditions, involving unusual and heavy
cost for material and labor, to which none
of its rivals have been subjected. Fourth.
that the Canadian competitor of the
American road eajoys continuing or an
nual subsidy of enormous proportions for
the maintenance of Oriental steamship
connections, that it is certainly intended
by the British Government shall strip
from us the Asiatic trade, since the subsi-
dies vastly exceed any needed grant to
enable the British-Asiatic mails to be car
ried. Finally, that the Canadian Pacific
Railroad enjoys a further and unfair adj
vantage, that of being exempt from taxa
tion for twenty years, and does not have in
its financial contemplation the repayment
of the subsidies granted to it.
1t is perhaps unnecessary at this time to
further enlarge upon the subject. The
cold, bald statement of facts is, or ought to
be, sufficient to iliumine any intelligence
upon this important question. No apology
for tenderness toward the alien competitor