The Portland daily press., 1890-12-26
United States and Canadian Rail-
roads,

The grounds on which the trunk line rail-
roads of the United States have asked legis-
lative restriction of the Canadian railroads
are as follows:
~ The advantages of Canadian railroads
by reason of government subsidies and for
eign capital.
~ The diversion to Canadian roads of
traffic that naturally belongs to the railroads
Of the United States.
90 The advantage Of Canadian roads In
their local traffic, the interstate commerce
act enabling them to recoup their long haul
American traffic by high local rates.
az The lower cost of operation of Cana.
dian roads.
% The differentials which American
roads are compelled to grant their Cana
dian competitors.
6) The destruction of the revenues of
American lines by excessive competition.
In pamphlet submitted to the committee
of Interstate commerce of the United States
Senate, Mr.. A. G. Raymond of Detroit takes
up these various sections and exposes their
insuficiency in very convincing manner
AS regards government aid to railroads Mr..
Raymond has no difficulty in showing that
the grants to our trunk lines, notably the
Union Pacific, Northern Pacific and South
ern Pacific. have been greatly in excess of
that extended to Canadian roads, and that
the yearly subsidy In the way of compensa-
tion for carrying the mails far exceeds that
OF the Canadian Pacific. The total yearly
subsidy to the Canadian Pacific is $780,, 9O9,
while the Vanderbilt system of roads re-
ceves every year for carrying the mails
$2,9O3,0 900; the Pennsylvania system S2.lS3.-
600; the Union Pacific 81, 0O9, 900; the South
ern Pacific 1881, 900; and the Northern Pa
clfic $399,15 1t is evident enough from
these figures that the advantage from subsi-
dies, direct or indirect, is greatly on the side
ofthe American roads. AS reg ards diversion
OF traffic which has an American origin be-
tween San Francisco via steamer to Vancou-
yer and thence east by the Canadian Pacific
road, which is one. of the grounds of COM
plant on the part of American roads, the
reports Of the earnings OF the transcontinen-
tai lines for 1889 show that Of all the east
bound continental States to States traffic the
Canadian Pacific got only 1.72 per
cent. an amount SO Insignificant as
to be unworthy of serious consideration.
The Canadian railroads per centage Of the
west bound States to States traffic is only
slightly higher. AS regards the trans-Pacifc
traffic, the principal items of which are tea,
domestics and silks, the statistics show that
the per centage of the imports transported
Dy the American roads for the year ending
May 1879, was larger than in any year since
1875, proving that the diversion via the Cana
dian Pacific route has been entirely at the
expense OF British steamers and sailing yes-
sells. AS regards thel transportation of do
mestlcs Tor the China market, Mr., RAYMOND
SHOWS that the American roads could not
have lost any for the very good reason that
they never had any of any consequence. 1t
Is true that the Canadian roads have by
means of special silk trains been able to di
vert some Of the traffic in raw silk, but the
trainc SO diverted does not exceed II per
cent
Mr.. Raymond disposes of the allegation
tnat the Canadian roads recoup themselves
Dy nlgn local rates in Canada nv sbowino
from comparison of the local tariffs of the
0ranu trunk and half dozen American
roaus tnat the local rates of the Canadian
roads average lower than the American
The alleged lower cost of oneratIon ot
canadian railroads is shown by sta
tistics to be delusion. As matter %
fact, the cost of passenger traffic on
the Canadian Pacific exceeds that of all it's
competitors, and the cost of its freight traffic
is exceeded by only two of its competitors.
and that only slightly. The net earnings of
the Canadian Pacific are, however, relatively
higher, difference due entirely to the more
economical construction of that road
The dlfferential rates granted Canadian
ROADS, Mr.. Raymond says, have absolutely no
force, inasmuch as differential rates are row
ana always have been granted to numerous
railroads by standard lines like the Wander
bilt and PENNSYLVANIA systems.
As regards the destructive effect of Cana.
dian competition, Mr.. Raymond shows that
1t is the competition of American lines
All American lines that plays the mischief
American rates.
l Raymond's pamphlet appears to dis