The San Francisco call., 1896-04-17

greatest commercial antagonist. It violates
our interstate commerce law with compacent
Indifference; it cuts rates and it takes freights
from our Pacific railroads, in which the United
States has a direct interest. 1t hauls more
cheaply from st. Louis and other interior
points in our country, by way of Canada to
Oregon and San Francisco, than the Pacific
roads can do, though the distance is much
shorter. 1t is a sharp competitor now for busi-
ness with all the Pacific roads from and to CAL
ifornla. For 1000 miles the Canadian Pacific
trayerses a non-productive country, one not
able to support a railroad. 1t lives off its sub
ventions and the business it takes from the
railroads of the United States.
All we have to do is simply to discontinue
the bonding privilege, under which they carry
goods IN bond, starting from Vancouver to
Europe and points in the United States. l
would suggest that we stop every car and
break every consular seal at our frontiers be-
yond Chicago and the $500" This would throw
the trade from Asia to San Francisco and pass
it over the Pacific railroad lines. 1t would
break up, in part or largely, the violation of
the interstate commerce law and stop the CIV
ing of rebates and the cutting of rates.
The Dominion Government has granted the
Canadian Pacific Railway subsidy or bonus
of $25 900, 900; has donated to it % 000, 600
acres of land, embracing only such are suit
able for settlement; has also given right of
WAY, station grounds, dock privileges and
water frontage, in so far as within the control
of the Government; and, further, has con-
structed and transferred to the Canadian Pa
cific Railway Company, free OF cost 714 miles
of railway, the estimated value of which, ac-
cording to that railway company's report for
the year 1887. is $35, 900, 900. The Canadian
Pacific was permitted to import steel rails free
of duty, also other materials used i'll the con-
struction of its road and telegraph line Under
it's charter the Canadian Pacific is freed for all
time from taxation by the Dominion Govern
ment or by any Provincial Government estab-
lished after date of its charter. Its land grant
in the Northwest Territory is free from taxa
ton for twenty years, unless sold in the mean
time. In addition to all this the Canadian
Government has bound itself not to permit
during the term of twenty years the building
of any line or lines that would parallel the
Canadian Pacific Railway.
II may be true that theoretically, the Cana
dian Pacific Railway is subject to the inter
state commerce law on interstate traffic pass
ing to or from Canada. But it is obvious that
while the United States roads are subject to all
the restraints the interstate commerce act i'm
poses, it is impossible for this Government to
hold the Canadian Pacific Railway to an
observance of the law, for the United States
can have no jurisdiction over the rates charged
on intermediate business picked up and laid
down in Canada, which, together with the
relatively small amount intercnanged be-
tween points in Canada and the United States,
| amounts TO 90 per cent of that mpany's
entire earnings, according to published
letter from the president OF that company.
The Canadian Pacific Railway can thus make
rates on through business without interfering
with its earnings on traffic between Vancouver
on the west and Canadian frontier points on
the east, or between points intermediate
thereto. Even on business for example, from
San Francisco to Canadian points, formerly
wholly enjoyed by the American roads, there
are no means OF knowing whether the Cana
dian Pacific Railway Company obeys the law
or not in this regard, for that company might
take freight to Winnipeg at higher rate tnan
for the same class of traffic through Winnipeg
| to Chicago; but the consignee in Canada even
/ if he knew American law, would be very un-
| likely TO seek or receive redress from United
| States court or commission as against a Cana
dian road