The morning call., 1891-10-21
STRONG COMPETITION
Views of q Merchant OH the Cam
ndifr Pacific Question.
How the Road Secures Heavy Annual Sub
sidy From the Transcontinental
Association.

The Canadian Pacific Will not run its new
steamers to San Francisco. as announced
some time ago. The programme seems to
have been slightly changed, and now every
body is asking what inducement has been
brought to bear sufficient to make the COM
pany relinquish a bid for the oriental trade.
When the Canadian Pacifc's General
Passenger Agent was here few weeks
since he told the newspapers that the next
steamer due at Vancouver would be ordered
to this city. and also that regular trips would
be made hereafter between San Francisco
and Asiatic ports. The Empress Of Japan
arrived at Vancouver on the 18th inst. and
is booked for Monday to leave on the return
trip, but she will not come here.
Whether a subsidy has been offered this
company by the Pacific Mail is question
upon which officials OF both corporations
are very silent. The Canadian Pacific only
knows that the order to run to San Fran
cisco has been countermanded. and the Pa
ciic Mail men smile sweetly and look wise
when the word subsidy is mentioned
ONE THING IS CERTAIN.
"One thing is certain" said prominent
merchant yesterday, "the Canadian line has
not given up the prospect of securing big
part of the oriental traffic without a sub
stantial consideration-in all probability a
moneyed one. These new steamers, the
Empress of Japan. Empress of China and
the Empress OF India, with fast time and
carrying capacity far superior to that OF
any craft owned and operated by the rival
company. would soon play sad havoc with
the foreign traffic of the Pacific Mail. 1t
seems to me perfectly logical conclusion
that the latter company and the Oriental
and Occidental line have agreed upon an
annual subsidy TO be paid the Canadian Pa
cific. If not this, then what pressure mas
been brought to bear, and from what other
source could an inducement of this character
Gomez
Continuing on the subject of the Cana
dian Pacific competition with the American
all-rail lines the merchant quoted above,
who does not care to see his name men,
toned in this connection, said:
SERIOUS FOR AMERICANS.
"The matter is becoming a serious one
for American railroads, and is attracting
the attention of transportation men all over
the world, for nowhere else Is the light so
close and bitter, and fraught with such dan
gerous consequences. Under the fostering
care of the English Government the Cana
dian Pacific road has grown powerful, and
exceedingly aggressive. No other road has
been so favored and protected by the strong
arm of governmental patronage.
"The line extends from ocean to ocean.
1t is free for all time from taxation, and no
other road can parallel it, even for one mile.
The company is given an enormous annual
subsidy from the Government, besides hav-
ing received land concessions worth mill
ions of dollars. The rOad-bed is always
kept in excellent condition, and the rolling
stock is acknowledged TO be the best in the
country. How can the American roads sue
cessfuly compete with such line?
CoAXED INTO THE TRANsCoNTINENTAL
"Some time ago the road was coaxed into
the TranscOntinental Association on con-
ditiou that it be allowed differential rate
on overland traffic. On freight the lower
senger business it amounted to So on second
class and SO on first class tickets. We
who have watched the situation closely
fornia traffic went East over the Canadian
Pacific What could the Transcontinental
Association do? Nothing al all.
"If this organization refused TO allow the
Canadian Pacific 4 lower rate, it would
it could well afford to do on account of
So matters stood for long time, while the
mentS which the American lines had
the Transcontinental Association became
alarmed at the situation, and set itself to
work on the problem of keeping the Can
adian Pacific people out of California busi-
ness.
A