Los Angeles daily herald., 1889-06-26
TOWNE TALK.
The General Manager of the
s. P. Speaks Out.
THE CANADIAN PACIFIC A HOG
Backed by British Subsidies and the
American Interstate Com
merce Act.

Associated Press Dispatches to the HERALD
SAN Francisco. June 25. - A. w.
Towne, General Manager of the Southern
Pacific Company, has supplemented his
testimony given recently before the
United States Senate Committee on our
relations with Canada, by an open letter
to the committee, as to the effect of the
competition of the Canadian Pacific
Railway on American lines. The con-
clusiors and data given in the letter were
at the request of the committee. Mr..
Toxne repeats the testimony he gave be-
fore the committee, citing the fact that
the Canadian Pacific road was built as
military line, and that, in addition to re-
ceiving a subsidy of $25 100000, and 700
miles of constructed railway, valued at
$35 100000, it is free from taxation, is
protected by its charter from
having any rival parallel line,
and has had donated to it
| 25, 900 900 acres of land, together with
water and dock privileges, making the
most valuable concession ever granted to
corporation by government. AS the
road is not subject to the Interstate law,
Towne cites that it can name through rates
to intermediate points on its lines, which
American roads cannot do. During the
sixteen months dating from January 1st,
1888, the Canadian Pacific has secured a
tonnage of over 100000 pounds OF
freight from San Francisco to points in
the United States, east of Chicago, by
establishing a steamship line to China
and Japan, subsidized by Canada and
Great Britain, and operated in connec-
ton with the Canadian Pacific Road.
Towne cites that the road is now in prac-
tical control OF the traffic from the
Orient, which, before the operation
of the Interstate law was controlled by
American roads and shows that, on TO-
100000 pounds of cotton goods, shipped
from the United States to China, in 1888
60 per cent went by the Canadian road
and the steamships west bound tonnage
has been diverted in greater proper.
tion. Towne cites that the grant oi
$500 900 per annum has been arranged
by the British Government as postal sub.
sidy to the Canadian line to Japan and
China while the total paid by the United
States Government, in 1888 for transpa
cific postal matter, was $l7, 900, and the
postal matter carried was thirty times
greater then by the Canadian line. He
says that the steamship line has been
subsidized and controlled by the railroad
under one management, from
ocean to ocean, unhampered py
our restrictive commerce laws, and is
naturally taking, gradually but surely,
the traffic properly belonging to the
carriers of the United States. The
Canadian Pacific Company, being practi.
cally exempt from our laws, can dictate
rates and most successfully compete fol
transcontinental traffic. takiug the same
at lower rates than the United States Car
: afford to accept without depicting tht
revenue, natural and necessary, for its
local traffic. The United States roads
on the other hand, are tied up unde
restrictive provisions and are compelled
} to make large sacrifices of their loca
earning, if they would compete will
foreign lines for through traffic. There
fore, l am OF opinion, after years OF ex
perience and observation in traffic affairs
, that if any of the carriers are subjected
to legislative restrictions as competing
carriers, domestic and foreign, raj
and water should be placed unde
like and uniform control" Mr.. Town,
argues for modification of the long ant
short haul clause of the law, to permi
Am erican roads to meet the competition
. of foreign roads, and urges that the pro
vision which prohibits pooling be re
! voked, and to place all pooling organiza
, tions under the scrutiny of the Inter
Stste Commission, with power to exer
, else regulative functions. He fnall.
contends that railroad system, bull
by a foreign power as a militar.
measure, and with avowed object of pre-
t noting trade between provinces of tn
country that created it, by withdrawn
r their trade from the United States
t should not be favored where favors ca
be withheld. American carriers shoul
] be relieved from the onerous restriction
t laid upon them by the fourth and fift
{ sections of the interstate commerce Law
so that they may not be denied an
reasonable facility to enable them t
contest their own ground against invad
ing carriers.