The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-02-05
Abolish the RondinR Fraud.

Abolish the Bonding Fraud.
Our great railway corporations one after
another are passing into the hands OF re.
ceivers 1t is to be feared that some OF our
transcontinental systems will be broken up
and their efficiency very much lessened be-
| fore the financial condition OF the country is
restored to its normal prosperity. Other OF
the transcontinentall lines would no doubt be
forced into bankruptcy but for the courage
and financial ability Of their leading officers,
who have personally advanced the funds
required to meet maturing obligations.
| Under these conditions a continuance OF
| the present bonding system as applied TO
| Canadian railways is a gross injustice to
our own lines, and should be abolished
without delay. root and branch.
Canadian railways under the present sys-
| tenn divert at least s2O.OOOOO0 Of earnings
annually which legitimately belong to our
own roads. while they have not contributed
one dollar to create. promote, or protect
railway traffic in this country. They have
simply diverted traffic created by our own
lines. In this policy they have been aided
and financially assisted by the Government
of Canada, as we'll as by tho imperial
British Government.
To aid the Grand Trunk Railway Com
pany to construct line from Port Huron
direct to Chicago for the express purpose
OF diverting American traffic to Montreal.
the Government Of Canada paid 1t 81, SOC. 600
for its line from Quebec to Riviere du Loup.
which had always been operated at a seri-
GUS loss. The purchase OF this line by the
Government was made conditional upon the
expenditure OF the purchase money to con-
struct the Chicago and Grand Trunk. The
Government OF Canada also gave the Grand
Trunk Railway Company n cash bonus OF
1875, 900 to enable 1t to raise the capital to
construct the tunnel under the Detroit
River at Port Huron. that 1t might be better
able to compete for American traffic against
our own lines. But for the American traffic
that was diverted to the Grand Trunk Rail-
way by its Chicago connection. it would
long ago have gone into bankruptcy
The construction OF the Canadian Pacific
was deliberately planned scheme to defect
American traffic TO Canadian ports. Not a
single promoter OF the Canadian Pacific
Railway was simple enough to expect
that IL could even earn operating expenses,
II confined to Canadian traffic. The charter
OF the Canadian Pacific and the subsequent
railway legislation OF Canada were deliber-
ately intended to secure for it n monopoly
OF Canadian traffic for many years, and at
the same time leave 1t free to prey upon
American business. The general Railway
act OF Canada was expressly amended To
permit the Canadian Pacific Railway Com
pany to make discriminating charges
against Canadian shippers. whenever this
tzxIt 10 In I'D 4
American traffic to its lines. This policy Of
the Government OF Canada not only JUS
titles but requires that the Government OF
the United States should now promptly ex-
ercise ali lawful powers to protect and de-
fend our own transcontinental lines against
this Canadian competition.
The amended Railway act OF Canada con-
tains the following clause Act OF 1883. clause
226. which was intended to meet the de-
mand OF the granger element OF Canada for
Government supervision OF railway freight
charges without in the slightest degree en-
barrassing Canadian railways Ia cutting
rates TO secure American trafic:
aga. The company. In hxinE or regulating the tolls
be demanded and taken for the transportation Of
goods shall except In respect TO through frame or
franc to and from the United stA',s adopt and con.
form any unUorn cAsAlTcAton OF IreEnt when the
Governor in Council the report OF the Minister,
from time TO time PrsserIbss"
II will be observed that under this clause.
while attempting to protect Canadian cti-
zens from unjust discrimination by rail-
way between points in the Dominion. the
Canadian Government directly authorizes
the railways OF Canada to make such dis
elimination as they choose. in order to
secure through traffic. or tratflc to and
from the United States"
Clause 232 Of the same act is as follows:
ase No company. in nHinE any toll or rate shalt
under like conditions and circumstances make any
Inlust partial discrimination between different 10
eAliues. but no discrimination between loeahtiss
which by reason OF eompetion by water or railways
it's necessary to make to secure uAnne, shah bs
deemed 10 be unjust or partial
In 1890. before the Canadian Pacific had
proper facilities for transcontinental traffic,
it demanded $500 900 Of the American Trans
continental Trafic Association for with
drawing from the trafic of the single city
Of San Francisco for one year. While it
could not carry the traffc il offered to it, il
could make rate that would destroy the
value ofthe business to our own railways,
and therefore that sum was paid 10 it, Ii
was nothing more or less than blackmall. A
bonding system which makes it possible for
a foreign railway corporation TO rob Ameri-
can railway companies, is a gross Injustice
to American interests and should be at once
abolished. Such a system cannot be de-
Tended, II is not only Rnti-American in
spirit. but seriously destructive OF Ameri-
can investments in railways. II is direct
contribution forced from our own railways
Ia aid in building up British power upon
this continent. The destructive effect OF
this clearly anti-American policy is plainly
indicated by the value Of the stocks Of our
lines as compared with the
stock Of the Canadian Pacific Railway. The
latest quotations upon the New York Stock
Exchange Of the stock OF the Canadian
Pacific Railway is 7I1,. while that Of our
own transcontinental systems is as follows
SsuhsFn Pas Sc. ~ AtshisoH. Topeka and
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CsatFal Paeine ...-,- l2ba DenyeFG Rio Grands lo.