The times., 1897-08-18
DISPUTES OF RAILROADS
Companies Interested in a Con.
struction Of Tariff Law.
EAST AGAINST THE WEST
Question Concerning the Rate of
Discriminating Duty Upon Goods
in Transit Oh the Canadian Pa.
cific when They Enter This Coun~
try Argued Before Mr.. McKenna.

The contention that under the Dingley
Law goodsin transit carried by the Canadian
Pacific road will be subject to the o per
ccntdscriminating duty when they enter the
United States has resulted in a bitter rail-
road war, in which the East is pitted
against the West. The question is now be-
fore the Attorney General for decision
upon a reference to that department made
by Treassiry officials, and the case has been
elaborately argued by attorneys repre-
senting conflicting interests.
The result will have little or no effect
upon the revenues, but the benefits of the
decision will accrue entirely TO railroads.
Under the present order OF things the
Canadian Pacific road, which has the priv
ilege of carrying things in bond through
United States territory, gets all the haul
ing from British Pacific ports and proves
a sharp competitor with the American
trunk lines East and West. All goods
hauled by it from the Pacific and intended
fer Roston or other New England ports,
and, In many cases, as far south as New
York are turned over at the terminus or
tie Canadian Pacific in the East 10 the
New England roads, and these roads are,
naturally, Interested III continuing the
present custom.
Messrs Carlisle and HaInlin, recent Treas
ury officials, appeared before the Attorney
General as counsel for these New Enela nd
roads.
Should the opinion OF the Attorney Gen
eral hold that all such goods are subject
TO tho 10 per cent discriminating duty
1t wcuId result in the shipment of Oriental
merchandise to American posts and theiF
transportation across the continent over
the American roads. This would be Of
material beuefit TO the Southern and Cen
tral Pacific, the Union Pacific, and the
Great Northern, which roads would get
| the long haul.
on the other hand it is said that with
the Canadian Pacific thus destroyed as
| q connection these roads would put up
the freight rates, and destroy competi
tion, thus diverting every dollar OF posi-
bic advantage into the Golfers OF the
roads instead OF among the shippers
| Frieu,ls Of the road deny that this would
OF could he done, and point TO the Inter-
| state Commerce Commission as power
| sufficient to prevent the establishment oi
I such an agreement, a power which, they
! say, is imperative when applied to the
| Canadian road.
1t is said by some very good lawyers
| that the Attorney Gene raj cannot construe
/ tie law in any other way uian the inter
| probation 2onterded for by these Western
roads. although IL is pro.a bic thai Con
| gTess had nu such intention when the bil
/ was passed. The new language OF thi'
| sertion was inserted in conference, but u
| what influences 1t is due is not known
| The statement was made on the floor o.
18th houses that the then existing law wa:
| not changed and both houses Were salts
| fiad. The conferees were apparently i'm
| posed npon OF did not understand the pur
| port of the language used by them.
! Assistant Secretary Howell in discuss
ing the subject said that If the cvnstruc
tion eonuended for was placed upon the la
| tile Government would derive no addIroLa
! revenue, inaau och as the effect would bt
| flerely To prevent importations through
Canada. 1t would, he added, simply CON
| pei shippers TO use the American lines II
! transportation from the Pacific coast.