The Portland daily press., 1891-01-13

have been built and fOstered as feeders to the
main line of the Canadian roads will vet turn
the bulk OF their traffic into the channels of
American commerce. Ia fact, We have al
ready seen an Illustration of this In the
movement of large quantities of wheat
raised In Manitoba, not by the Canadian Pa
cihc road, but by southerly line, the Mani
toba, Minnesota q ST. Paul road. into Amer
lean territory. finding. its way to the sea-
board by the lakes and Erie Canal Traffic
in such high latitude as the Canadian Pacific
road Will have southern trend, and will
slip off that road wherever it can find an
easier and cheaper route.
The geographical position Of Canada ex-
tending across the continent in such high
latitudes as to make 1t impossible to find on
Its eastern shores at least through the whole
year an outlet for its products renders 1t nee
essary for her to use American roads and
American seapOrts to carry off her surplus
grain and the products of her forests As
the limit of population extends northward
witt in her borders with the vast regions as
yet only explored, but which are rich In all
the treasures Of the earth, the necessity Of
using American roads will be increased and
with theincrease Of population We shall see
the great trunk lines of Canada building
feeders in northerly direction, which will
bring in the main lines an ever increasing
traffic which will pursue a southerly course
to ind market In our country or to avail
itself of our seaports to reach the nations of
Europe.
The subsidies granted to the c. P. r. have
been the subject af much adverse comment
on the part of our American roads, and es-
Lecially our transcontinental lines. 1t does
seem unfair for our roads to be obliged to
compete for American business with road
wholly built by gifts Of cash and lands and
sustained by subsidies and guarantees along
the whole length of it. 1t makes no differ
ence at what rate such a road takes business.
Ii Is under no obligation to its stockholders.
The Dominion of Canada has provided for
an annual dividend to them Of 8 per cent at
least for ten years. There seems some jus.
tice in the plea Of our trunk and TRANSCRIPT
mental lines that they ought not to be
obliged 60 compete with heavily subsidized
road as this one is for American business,
especially as there is no reciprocating ad-
hundred miles of the G. P. r. which is an
uninhabited wilderness without freight
without travel. Our transcontinental lines
cannot enter a very strong plea
against subsidized lines for the
reason that they have received
cash and gifts of land. The competition of
the G. p. r. as far as our transcontinental
lines are concerned has been particularly ag-
gravattng as they have gone down the Pa
aud brought up freight, both domestic and
foreign, for transshipment at Vancouver to
the East. they have invaded the territory of
the Northern Pacific and Union Pacific ON
the Western coast, and by circuitous route
carried freight into territory naturally be-
longing to our American lines on the Mis- sis
sippi and Missouri rivers.
BY their reckless cutting of rates and out
| rsgeous competition for transcontinental
business they forced our American lines to
buy them off, and purchased peace by giving
| them differentials of from five to 20 cents per
| 100 pounds, in order that they might attract
| to their line pant of the business
The cities on the Pacific coast are in some
hat fhac asAx H.
| p. X. that Boston and Portland are with ref
erence to the G. T. r. They desire to have
the competition of the G. p. r. in order to
Keep rates OF freight across the continent
down to low level. but they fear the loss of
the Asiatic business by its diversion to Vani
couver just as Portland fears the diversion
OF European business to Halifax or st John.
There Is no doubt that the Eruption of the
Y. Z. K into California In quest of domestic
freight has resulted in great reduction of
| freight rates eastward ami has tended to
| bring to the Atlantic coast in greater abund-
ance, the excellent fruits, wine, iish and a
| great variety of other products of the Pacific
coast. We understand that there Is prob
ability that the Treasury Department will
soon make some change In its regulation for
the transit of dutiable goods via Vancouver
and the Q. T. X. which will break up the
transportation of foreign goods via San
francisco by the C.P.R., but do not under
stand that any Treasury regulation can inter-
fere with the direct transportation of goods
| from China and Japan to the cities of the
| Atlantic seaboard over the Canadian Pacific.
| Our American roads complain that in their
competition with Canadi 4 lines the interstat @
commerce law imposed upon them, restrict
ions and limitations which work to their
| great disadvantage. The provision of that
law that obliges them to scale the rates OF
freight to all intermediate points on their
road to the basis of the through or compel.
ing rates Is too rigid, not allowing enough
| elasticity to the rate to competing points to
| enable them to meet their competitors freely
and easily. They say, put the Canadian
roads on terms of equality with us, or in
other words restrict their local rates Of
| freight as you have ours, and we will offer
| no objection to their interference with the
| interstate traffic of this country. but we are
obliged to do the competitive business at
rates that do not pay and reduce our local
traffic to the same rates while our rivals not
| being subject to the interstate law after
| they pass into Canada are able to recoup
their losses on their through traffic by high
local rates in Canada. This assertion of our
place, through traffic is not done at loss, if
| it were American roads UouId not continue
it, and Canadian roads could not. In the
| second place Canadian local rates of freight
on the g. T. R. are governed during. seven
| carriage by lake and the river ST. Law
renee, while on the G. P. r. for 1000
miles of its course the local
traf1c Is so meagre that 1t would be impos-
sible to burden it with any charges not its
own.
Again, the laws of the Dominion of Canada
In regard to inland commerce are quite as
restrictive as our own, and it is not reason
able to suppose that the Canadian shipper or
merchant who does business on these roads
would submit to have his freight burdened
| with part of the cost of carrying American
| interstate traffic.
Several ways have been proposed to pro-
| tect the right Of American roads to carry the
inland commerce of this country. The first
| and radical one Is hostile legislation on the
| part of our government which shall drive
| foreign roads out of the business. Secondly,
a change in the regulations of the Treasury
Department which shall restrict and hamper
transit in bond" Thirdly, international
agreement which will place Canadian roads
upon the same footing as American roads in
| doing American business. l do not favor
| any OF these, but complets reciprocity of
| traffic between the two countries and the
common and free use of all the water and
railways belonging to both nations.
| This | believe would be in the interest of
| the millions Of producers and consumers of
| both countries, and to the advantage of all
the highways Of commerce In this country,
not even excepting the trunk lines,