The morning call., 1890-05-24
INTERSTATE CARRYING TRADE.

Up to ths present time Congress has done
nothing to prevent foreign railroads built
and sustained by Government money from
engaging in our interstate carrying trade.
Some three years ago it created a commits
sion to enforce an act which might be
termed An act to cripple American rail-
roads" By that act American transcon-
tinental railroads were prohibited from
reducing rates between terminal points be-
low those maintained between local points.
The foreign roads, not being subject to this
act, make their own rates, and in fixing
them are governed by the rule to do the most
cutting where it will do them the most good.
Yet, so far, our Government has done moth
ing but to inquire into conditions which
every one knew to exist In August, 1888.
the Senate authorized the Committee on
Interstate Commerce to investigate the sub
lect After two years the Chairman, SEN
ator CullOm, reported, but as yet no action
has been taken on the report. Senator
Cullom said in MS report that the regula-
ti0nS under which the transit trade is carried
on by the Canadian Pacific "are without
adequate authority of law, and are preju-
dical to American interests" But, while
Senator Cullom was clear as to his facts, lie
was obscure as to his remedy. He sug-
gested that a license system might be
adopted, by which the Canadian Pacific
would be subjected to the conditions of the
Interstate Act. If we admit that American
law can be enforced against foreign cor
poration, no provision is made to equalze
conditions between competing roads grow
ing out of the fact that American roads
nave to pay their own operating expenses
and interest on the money which built
D, 10 n. 4
structed with Government money, and any
deficit in revenues is in one way or another
made good by the Government There is
not much use in talking of license system
while these unequal conditions prevail
The only remedy is to apply to the Cana
dian road the law which forbids foreign YES
sells from engaging in the American coast
trade. Any remedy which falls short of
this conclusion will be found inadequate
The New York Sun, about the only Eastern
paper which sees any harm in an arrange
ment which transfers a large portion of our
transcontinental traffic to the Canadian
road, says on this point:
To license the Canadian railroads to continue
In our Interstate carrying trade would be TO
legaiiZe gross wrong against American inter
ests. Such license might he like ned to a letter
OF marque issued by our Government authorizing
an alien enemy TO prey upon our own commerce.
The wise and manly course for Congress Is to
prohibit The trade altogether, and leave the
Canadians to find way cut OF the dilemma into
which an Imperial colonial policy directly hostile
TO the United States has brought them. FOrtu-
nately, this course can be adopted without injury
to any paramount American interest; ana it may
lead 10 peaceabe settlement not only OF this
question, but OF many others.
A gentleman is reported to be engaged in
the work of canvassing this city for money
to offer some Eastern road, which will build
through line to San Francisco, to serve as
competing road to the Southern Pacific
system. The persons engaged in this move
ment. if such it may be called, do net seem
to realize that under existing regulations
the Canadian Pacific is pretty lively COM
peting road. As that road has had, in one
way and another, nearly $500, 100000 from
Government. larger subscription will be
required to put an American competing
road on an equal footing with the Canadian
system than our business men will be likely
to make.