Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-08-12
TARIFF LAW BENEFITS THEM AT
EXPENSE OF CANADIAN LINES.
DIvERTS TRAFFIC OUR WAY.
DISSEMINATING DUTIES ON GOODS
CARRIED BY FOREIGN LINES.
Clause Referred 10 Attorney General
Mckenna for an OpInIOn-AmerI-
can Railroad officials Keen
Iy Interested-Hard ON
Canadian Ports.

Chicago, Aug. 1.-THE first application Of
the section Of the new tariff bill which, II
interpreted 10 mean as ii reads, may re-
strict Canadian railroads, which have ter
minals I'm the United States, in their abil-
ity to compete with domestic corporations
in delivering Asiatlc and European i'm
ports. has been made by the collector of
this port
A consignment of Japan tea recently
reached here in Canadian Pacific cars
from Vancouver. The tea is not dutlable
article and under the Wilson law the
Japan-Vancouver consignment would have
been permitted 20 go right through for
distribution, the consular seals ON the
cars serving to protect it from interfer-
ence by customs officers. Collector Rus
sell, however, was Of the opinion that the
new phases in section p require the col
lection Of a discriminating duty Of 10 per
cent, because the tea, while on its way
from Japan, had been landed in Van
couver, British Columbia, and he took pos
session Of the property pending a decision
from the treasury department upon the
exact application OF the measure.
The section requires the collection and
payment Of a discriminating duty Of 10
per cent "On all goods, wares or merchan-
disc. which shall be imported in vessels
not OF the United States, or which, being
the production or manufacture of any
country not contiguous to the United
states, shall come into the United
states from such contiguous country"
The secretary Of the treasury advised the
collector 10 permit the importers OF the
tea TO take II away after exacting from
Them promise to pay the dscrimina ting
duty in the event of the attorney general.
70 whom the whole subject was referred
Tor an opinion, determining that the law
required such payment.
Attorney General McKenna deemed the
matter important enough TO give IL his per-
sonal attention. instead OF referring IT TO
one OF his numerous subordinates. as Is
the custom Of the federal law department,
ana when he returns to Washington from
MS vacation In about two weeks he will
write the opinion that has been asked for.
If ne sustains the position taken by the
Chicago collector Of customs IN selling the
tea and holding IL temporarily TO enforce
the collection Of the discriminating duty
and decides that section 22 requires that
all imports consigned to the United States
whether from Asia or Europe, that orig
inally landed I'm Canadian ports, should
pay a discriminating duty Of 10 per cent
he Will strike blow at the Canadian Pa
cihc on one hand and the Grand Trunk
on the other that will at least seriously
cripple these corporations.
American railroad officials are keenly in
tereSted Ia the forthcoming opinion, for
they realize that It will determine whether
be, as II has been, the great rival OF Ameri-
can railroads, especially the Great North
pean and Asiatic fields. The Canadian Pa
cinc has made a speciality Of Asiatic busi-
ness ever since II established its own line
Of steamers, consisting Of the Empress Of
India, the Empress OF Japan and the En-
press OF China, between Vancouver. y. G..
and Japan and China ports. II forced the
Great Northern road to establish a similar
line, whose terminal Is at Seattle. and 1t
made deep inrOads into the business Of the
Occidental a. Oriental Company. which is
Jointly by the Southern Pacific
40 oil
Steamship Company. which Is the personal
property OF Coils i. Huntington. The
canadian Pacinc steamers have controlled
such percentage Of the Pacific carrying
business that the railroad has been en-
abled to secure an unusually large per-
Of Asiatic importations consisting
OF tea. silks and other products destined
for the United States. The roads chief
success has been in China and It Is claimed
that IT brings 10 this side Of the Pacific a
greater amount OF Chinese food products
which are imported expressly for Cinnamon
than all Of the other lines combined. Rail-
road men who are familiar with the extent
Of the volume Of this business say that II is
sufficient to make II a desirable addition to
the business OF any line OF steamships.
The Great Northern and Northern Pa
cihc roads, with terminals at Seattle and
Tacoma. and also Portland. Ore, naturally
suffered most by the aggressiOns OF the Ca
madam road, though the Southern Pacific
with its terminal at San Francisco, and the
Atchison. Topeka & Santa Fe, located far
ther south in California at Los Angeles,
bitterly at times OF loss or
business that was taken from them by their
rival. The Canadian Pacific was
enabled TO transship from Vancouver into
The States through its traffic arrangements
with American railroads as easily as any
Of the American overland roads. Its cars
crossed the frontier without molestation
rom customs officers because they were
protected by seals Of American consuls and
were carried direct to the points to which
hey were billed.
While the AsiatIc business is admitted 10
"a yxyf1 ha
roads have controlled, they have also had
their share Of European business through
at Montreal and Quebec with
lines Of Atlantic steamers that have ter
ninals at one point or the other.
Some idea of the value OF the imports
brought into the States BY the Canadian
roads can be obtained from the published
customs statistics. During the fiscal year
ended June 80, 1895, tine importations from
81 $30.6s .30s. and from British Columbia
s, ,536,6s1, or total of S4.2ls069. Of this
amount t23 il4 was carried by the Cana
itan Pacific and the Grand Trunk rail-
roads, American steam and sailing vessels
'arried 1918 359 and foreign hulls the bal
,nce. All of this enormous traffic will be
7oncernsd II the attorney general shall de-
'ide that the Dingley law operates against |
IMPORTS from Europe and Asiatic foreign |
W. Z. Bissell. general traffic manager Of
he AtChisOn, Topeka q Santa Fe railroad. |
would deprive the Canadian Pacific Of a |
considerable proportion OF the business
Ehich IT has been carrying for years. |
Shippers and importers" said Mr.. BisselI |
will not stand on the ceremony of finding |
lew routes for their freight when they un-
ierstand that they will have 10 pay a dis |
duty Of 10 per cent. The Cana |
liam Pacihce cannot make good the differ |
nee for the reason that the duty is too |
Ugh. The ultimate effect Of the law will /
,e TO have the imports that are now being |
ent from China and japan 70 vancouver |
n Canadian hulls shipped to San Francisco |
n American hulls. l ought to say, per- /
isps. that the Great Northern route will /
make it's share Of business. There Is A /
,reat deal OF misunderstanding about the |
Xtent and the value Of the Pacific busi- |
less anyhow. II may have been profitable /
wo years ago. when II was divided between /
wo lines. but now. when five lines are 1
ompetinR for ii. II is not the best in the \
World importers Of tea inform me that |
heir business Is badly demoralized. I sup |
lose If the new law ls enforced that the |
American lines will get the business that /
las been going 10 the Canadian Pacific"
ONE CASE DECIDED.