The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-02-13
THE BONDING PRIVILEGE.

In Sundays CALL the opinion was ex-
pressed that the bonding privilege ex-
tended to the Canadian Pacific Railroad
had been the means of divertiDg trade from
San Francisco. The financial difficulties
into which some of the American trans
continen al companies have been thrown
are attributed largely to the same cause.
Under the heading. abolish the Bonding
Fraud" the New York Sun of late date
said:
Canadian railways under the present system
divert at least SIC, 000 600 Of earnings annually
which legitimalely 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 well as by the I'M
perial British Government.
The competition of Canadian railroads
is unfair for two reasons. First, such
principal roads as the Canadian Pacific
and the Grand Trunk have been heavily
subsidized; second, being in a foreign
country they are not subject to the Ameri-
can interstate commerce act. That act
was found necessary for the protection OF
non-competing points and has been useful
in this way but ii has put to disadvantage
American companies in competition with
companies not subject TO such restrictions.
1t has been said that the competition of
the Canadian Pacific secured lower rates
than would otherwise be maintained. The
yalne of this road to the public may be
estimated from the fact that il is always
ready TO take lump sum from the Amer
lean roads to withdraw from competition.
Thus in 1890, before it had proper facili-
ties for transcontinental traffic, 1t exacted
from the American roads 100000 to with
draw from business 1t was not in
a position to do. The Sun says, on
what authority we do not know, that the
Cover nments of Canada and Great Britain
have aided the Canadian Pacific in one
way or another to the extent of $50. 000.-
600. This is a larger sum by SIC 0O0. 600
than Mr.. Huntington OF the Southern
Pacific system wishes to be allowed to owe
the American Government. The Canadian
Pacific acquires its power to successfully
compete with American roads from treas
ury rulings and construction of law. which
permit ii to carry goods from one Ameri-
can port to another in bond. The privi-
lege is given a railroad which is denied to
water transportation companies. There is
no principle of reciprocity In this favorit-
ism. The Canadian Government denies to
American fishermen the privilege of land
ing a cargo al a Canadian port and ship
ping it in bond over Canadian railroads to
the United States. The cases are parallel
in principle though not in magnitude.
The fact that Canada denies to Americans
a privilege that she exercises for herself
suggests little more regard for the inter-
ests OF its citizens on the part of the
United States. The Sun argues for the
repeal of the bonding law or construction
of law on the ground that withdrawal of
the bonding privilege will incline the Do
minion to seek political union with the
United States. 1t seems sufficient. how
ever. to urge such action on the ground of
justice to American interests.