The record-union., 1893-01-05
UNFAIR COMPETITION.
How British Railway hbsorbs Amer
iCan Trade.
Enormous Benefits Derived by the
Canadian Pacific Railway From
the Government.


The Chicago Herald, on the 24th ult.,
published the following article, which
should be read carefully by every patri-
otto American:
The Canadian Pacific Railway system
Is $1,000 miles long, large mileage for a
population under 5000, 600, scattered over
marrow fringe Of territory extending for
1000 miles. The late Sir John Mae
donald was the father OF it, as Of almost
everything else in the colony. When he
entered public life iii lS44 there were only
thirty miles of railroad in operation. The
Donuslng plan, under which the large
1aDrlc OF to-day has been created. was in
troduced shortly after his entry on the
scene, when Parliament passed an Act
guaranteeing payment Of interest for a
term OF years on the bonds OF roads sew
! enty miles long or more. In 1892 the
Grand Trunk was incorporated, and the
construction of its line from Portland,
Me-, the winter port, and from the sum
ner ports OF Quebec and RiVieTe du LUup
| IN Canada was carried on with vigOr.
Inc English investors, promised a mimi
mum return Of IL per cent. for all time,
We're numerically plundered by the con-
tractors, as well as by local politicians.
with the result that $4,000, 900 Of the
money sunk i'll the enterprise has been as
good as lost-it has never yielded a divi-
dend, and probably never will.
AN IMPORTANT GOVERN1IENT WORK.
The next great road to be built was the
Intercolonial from Halifax 10 the st.
Lawrence River. 1t was designed to con-
meet the maritime provinces with central
Canada, and at the suggestion OF the mill
ltary authorities Of England the line was
carried by long northern detour, so as
10 he : ia bo A
frontier as possible. The road was con-
structed by the Government Of Canada
and has ever since been operated by it,
| With its extensions, it is nearly 200
miles long, and has cost the Canadian
taxpayer on capital account S53, COO, 900.
The Canadian Pacific, froIn the St. Law
renee to the Pacific Ocean, was under
taken as Government work in 1871,
commenced, after years Of surveying, in
1873, transferred to the present company
IN 1850 and finished at the end of 1855.
| The idea OF an all-British line from the
Atlantic to the Pacific, fulfilled on the
| completion Of these roads, is said to have
first suggested itself to British army of
hcor, Major Carmlchael-Smith, who saw
that it would be useful to Britain as a
counterpoise to the development Of trans
pOrtatiOn lines in the United States
and, curiously enough, the first loaded
train that crossed from ocean to ocean
was freighted with munitions Of war be-
longing to the Imperial Government.
MILITARY ADVANTAGES.
The military advantages Of the route
have never been lost sight of by Great
Britain. There is a British fortress at
each end, at Halifax and at EsQuimalt. b.
&. 1t is a common thing NOWADAYS to
see a train load of British blue Jackets
travelling to or from the war ships at
those points. Military experts regard
the route as an important stage on the
road to India-as vital one in case the
Suez Canal should be blocked against
British troop ships. The British Govern
ment guaranteed loan of $4,000, 900 for
the construction ofthe IntercoleniaI and
has given yearly subsidy to the Cana
dian Pacific Steamship line between Brit
ish Columbia and China besides indi-
rectly aiding the railroad to float its
bonds in the London money market. At
the coming session of the Dominion Par
lament the InterColonial is to be handed
over to the Canadian Pacific on consider
alton that the latter shall, with the help
Ofa subsidy, establish a fast line ofsteam-
! ships between Halifax and Liverpool
/ When this is done the military highway
between Britain, British Columbia and
Asiatic countries will be rendered all the
more efficient in case of war with Russia
or the United States.
VALUABLE FRANCHISES.
A large number Of minor railroads.
many of which do not pay operauinr ex-
penses, have been built partly with Cana
dian subsidies and partly with private
British capital, but nearly all have been
absorbed by the three great lines Just
named. The amount spent by the Cana
dian people in building Government
roads or in substituting other roads down
to June 30, 1891, was Sl92, 500, 600. This
includes the expenditure Of the Provincial
/ Government before 1867, when confedera-
| ton took place, and that Of the Dominion
and Provincial Governments and the
municipalities since confederation; in
short, the whole outlay OF public money
from the beginning. The population OF
the Dominion to-day is in round num-
| bers 100000, so that as things stand
/ about $40 per head has been spent in rail-
road subventiOnS. Taking numbers
alone and not wealth into account, this is
/ equivalent to an expenditure in the
| United states to-day OF -, ,6JJ, ,009, 900, or
/ nearly as much as it cost the North to
/ suppress slavery. The entire cost OF the
! 1900 miles Of road in operation is given
| in the official returns as SSH, ,001, 900 and
| the net earnings Tor the last recorded year
/ as Si3,23O, ,500-leSs than per cent. Hence
the public subsidies represent very nearly
! one-tourth OF the whole cost Of the Cana
! dian roads. There remain the land sub
sides, which have not been included in
| these figures. These amount to 81, 200, 900
acres, and may he valued at 81 90 per
acre all round. Those sold by the Cana
dian Pacific have fetched over q, but
they are choice.
SUBSIDIES GRANTED.
| For the purpose in hand, which is to
| give III the lump the subsidies granted TO
| the Canadian Pacific and Grand Trunk.
! the lntercoOnial with its qualifications
| may be put aside. The Grand Trunk.
/ counting leased lines, has a mileage within
Canada of3, l43. 1t has received Dominion
and Provincial aid to the amount OF Slg,-
495, 900, and in municipal aid s., $50, 600, OF
total III pald-up subsidies Of SIS, 80. 600.
Neither the Grand Trunk property nor
any OF its leased lines has received subsi-
dies in land. The mileage Of The Cana
dian Pacific within Canada is given as
! 90 q, consisting of ,6J1 leased and !, ,9J!
owned miles. Down to June 80, 1891, il
had received the following subsidies, paid
up:
From Dominion and Provincial
Governments ,117 900
From municipalities. es............-..... 4,495.OOO
This sum includes the cost of the sec
| tions of the main line built by the Do
minIOn Government. In addition the
! Canadian Pacific and its absorbed lines
have been voted rs, ,40S,O01 acres OF land,
worth. say, $40, 100000 more. lis steam
ship line on the Pacific Ocean draws a
subsidy from the Dominion, as well as
one from the British Government In
| 1889 the Dominion Parliament passed an
act authorizing the Ministry to pay a
subsidy of 4l5.O00 per annum for n