New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-11-24
FIGHTING SUBSIDIES.
UNFAIR CANADIAN RAILWAY ADVANTAGES
VIEWS OF PRESIDENT CAKES, OF THE NORTH
ERN PAuFIC-THE EVIL AND THE
REMEDIES

REMEDIES.
The coming session of Congress Is naturally eagerly
looked TO by the different interests OF the country
liable to be affected by legislation The railroads
form, probably, Of the most important OF those
concerned and the question Of Canadian composition
Is one that VIII doubtless draw the attention Of egs-
lstors. Especially IS this likely TO be the case i'll
Wow OF the enormous subventons granted Dy the
Dominion and the British Governments TO the Canadian
Pacific Railway and It's heavily subsidized steamer
lines, tie connecting st. john y. b., with Liver
pool, and the other the Pacific connecting British
Columbia with China and Japan.
Talking with Tribune reporter. President Thomas
f. Cakes, OF he Northern Pacific Railroad, declared
that these subvenons were highly Injurious TO Amer
can interests. lie added
why just see what have to contend with.
In The first place. the Canadian Pacific is the political
darling OF the Dominion Government virtually oulit
by it, for he direct gifts the company in money
and the value OF stocks and other securities guaranteed
by that Government, according to their own showing.
amount to about $4,000. 900. In my opinion this
exceeds the original cost of the road by about
S54oO0000. OF course, 1t placed the Canadian
Pacific greatly TO advantage at the very start Then
the Dominion and British Governments have sub
sldzcd line OF from Vancouver, the western
terminus Of the Canadian Pacific, to China and Japan
10 The amount of 100000 year The principal
business OF this line Is derived from the diversion Of
American commerce from American seapOrs and
American transportation lines. So you see we are
really struggling against the Dominion and British
Governments
"The Canadian Pacific and its AsatIc
steamer line exist merely by virtue Of
subsidy. Besides all this the Dominion
Government virtually grants the Canadian Pacific
carte blanche in all Its schemes. Contrast this with
the financial status of the american companies, and
the attitude assumed toward them by our National
and State Governments Our road, for example, was
tfnn
for the obligations which attach IT'S character.
Then We regulated almost TO death. The long
and snort haul rule places MS in tie power Of the
Canadian Pacific, whenever It may choose 10 exercise
the advantage. You situaton-foes without
and foes within. We unable to the COM
mercal and industrial interests of this country We
would like to do. The state Of Washington is capa-
bic Of sustainlns three times the population that
British Columbia support. And Puget Sound
ought D. be the commercial centre OF that part Of this
country. II would be II the United States had only
stood for fifty four forty I'm 1916. But now,
In fair and square commercial struggle could beat
British Columbia out Of sight There ought TO be
strong steamer line from Puget Sound to China and
Japan. That would greatly tend promote the pros
peHty of the State Of Washington. But you see, our
Canadian and British competitor IS subsidized right
over our heads What do, or encourage any
steamship company to do"
" Is there any prospect Of a changel ~ inquired.
YES President Oakes replied. think the people
Of the Pacific coast coming to realize the
fact that their commercial and industrial
interests closely identified with traffic inter.
ests. We certainly realize that fact We increase
traffic only through the development of business
along lines and at termnl. Therefore
want aid In the growth of the State Of Wash
lngtOn and 10 share In It's prosperity
Have you in mind any remedial measures for the
difficulties which now confront yO4p
" Yes, have and l believe the people Of the Pa
cinc Coast beginning what is needed. The
action OF the Commercial Conference OF the Pacific
Coast held at Francisco last August, points to-
ward the proper remedies. In the first place
ought be relieved OF the handicap imposed by the
long and short haul rule OF the Interstate Commerce
Canadian Pacific Railway constitute circumstances
and conditions which fully Justify such exemption.
Then our Government is aiding the Dominion Govern
ment and the Canadian Pacific Railway Company by
having al Vancouver office TO certify b manifeSS
and thus enable the Canadian Pacific Railway 10
strslnt imposed upon American lines. This is
ali wrong and should be stopped
The facilities now afforded the Canadian Pa
c,fc by the Treasury Department to
trade between tho Pacific Coast and the Atlantic
seaboard are also in my Opln on all wrong. This was
inaugurated during the Cleveland Administration.
Prominent Democrats we'll a. Republicans DO
! nOunced IT,
THE people Of Pacific Coast are beginning to see
| how the Canadian Pacific. with the Dominion Govern
m mt behind f. l. cutting into their commerce. Every
| American steamer line the Pacific Ocean Is now
threatened by aggressive neighDorS. ms WhoIe
commerce properly belongs the United States and
our Government ought at once 10 adopt such line
OF policy a. II enable US to hold II for all time, ana
| To establish new Inns when trade will Justify it,