The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1889-05-10
POOL OR NO POOL?
Interestir : Evidence Developed at
the SAte Investigation of Can
adian Railways.
Roberts. of the Pennsylvania. Does
Not Believe That Pools Are Best
for the Roads.
Vanhorne of the Canadian Pacific. TsIls of
the Business of His Road Atehi-
son Omcers Elected.

NEW GORK. May s--The senate inter
state commerce committee resumed its
work this morning, end President Roberts
of the Pennsylvania road testified. He said
that since the United States began to regu-
late the railroads by special legislation the
latter had been placed at a disadvantage in
competition with those of Canada The
effect of the Grand Trunk road being indie
pendent of the legislation which affects
those of the United States is a constant
menace TO the latter. Il don't know that
at present the Canadian roads do any
serious injury TO American commerce." he
said, "but they are in a position to do so at
any time the managers see fit"
What advantages have the Canadian
roads over those OF the United States ~
was asked.
"The Canadian Pacific is heavily subsi-
zed by the government to encourage the
development of the country. The Grand
Trunk and Canadian Pacific draw their
supplies from England free OF duty"
"Can roads in the United States be ope-
rated as eheaply as the Canadian roads ?''
There is considerable doubt as TO the
answer to that question"
What remedy have you TO suggest as an
amendment 10 the law that would place
American roads and Canadian roads on an
eQuality?' ?'
81 think any foreign corporation doing
business in the UHited States should be
subject 10 the same laws as the roads of
our own country. If Canadian roads are
permitted 20 carry traffic in End out of the
United States. they should be made amen
able 10 sour law. of course we cannot
0blige foreign roads to conform to our
laws when out of the country, but while
they do business within our borders, the
same law should apply to both. In fact, |
am not sure foreign roads should be allowed
the privileges they enjoy in this country,
even If under these conditions. l cannot
quite understand why foreign roads should
Dts allowed tn in and Ouf of fha limited
States while foreign vessels are not al
lowed to do coasting business with this
country"
Senator GOrman-There is move on
foot, understand, 10 construct a through
line from the Pacific TO the Atlantic coast
to connect at either end with n subsidized
line of steamers, its object being to take
the trade that comes from China and Japan
and transport it TO the eastern coast. What
chance, in your opinion, do American
roads stand OF controlling this trade?
Roberts-The American roads have the
first call on all such trade, and under equal
conditions with the Canadian roads could
control il.
Roberts said he was in favor of pooling.
Under the old system of pooling certain of
the roads kept part of the contract, but
other conditions were violated.
Senator Blair-Then il is not true prin-
ciple of railroad business that a combina-
ton is better than competition?
ROberts-Hardly; am in favor of fair
this could be brought about ii would be
much better than any pools.
President w. G. Nanhorne, of the Cana
dian Pacific, was called and described the
Canadian Pacific from Halifax to Van
couver, thence by line of subsidized steam
ers to China, Japan and Australia. The
Canadian roads compete with American
roads for trade from San Francisco, China,
Japan and Alaska, and some of the trade
from Ontario to Manitoba.
Senator CullOm-What percentage of
your traffic is from the United States?
Vanhorne-I do not know the exact fig
ures, but aside from coal the percentage is
very small. The traDscontineutal trade |
from China, Japan and the western part |
OF the country over the Canadian Pacific is |
constantly increasing. 1t gets 10 OF IL per |
cent of all the western and Pacific trade.
''The impression IS general" said Presi- |
dent NanhOrne, '.that the relations of the /
Canadian Pacific road with the govern
ment are exceedingly intimate: but L as |
sure you the relations are anything but in |
innate, and not as cordial as those between /
the Pennsylvania road and the government |
at Washington. Then nearly all our rails |
and material came from the United States, |
and altogether we have no advantage over |
the American lines although labor is some !
tion of our coal comes from Pennsylvania |
and Ohio, and therefore costs US more than |
il does your roads"
Vanhorne was followed by President and |
General Manager Newell, of the Lake
Shore x Michigan Southern. He testified |
that his road suffered severely from the |
competition practices of the Canadian
roads, and offered to furnish the committee
with documentary evidence of the unfair
dealings and methods of the Grand Trunk
railway in particular, which he said was
now one OF the longest carriers out of Chi
cago. Chairman Cullom accepted his offer.
President and General Manager Ledyard,
of the Michigan Central, said his road was
losing business rapidly by reason of the
fact that the Canadian roads were practical
Iy free TO do as they pleased, while American
roads were fettered by the Interstate law
Ledyard was quite bitter against the Can
adian railroads and favored special legisla-
ton against them.