The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-08-04

Oh the Political and
economic Side by Vice President
Clough, of the Great Northern
hallway COmpany-He Says Over
100000 Tons of Freight In
Volving From $2o,oOo,OoO to
$26,oOO,OcO, Is Diverted From
the United States by Non-T.
Paying Institution.
CHICAGO, Aug. 3.-Trafic Manager
McN1coll, Of the Canadian Pacific rail
road, concluded his direct statement he
fore the interstate commerce conrois-
sion today in regard to the rate war
between the Canadian Pacific railway
ana the American lines. Mr.. McNIco1I
III MS closing remarks, told of his ef
rorts to restore peace with the Amer
lean companies, and how his efforts
were thwarted by the refusal of the
companies to discuss the question of
olHerentials. He insisted that tho
American lines had refused to accert
suggestions, and had said that the
Canadian Pacific must agree to all
their terms.
MI. Eustls, general passenger agent
or the Chicago, Burlington & Quincy
he said, had told them that tbaro
would be legislation against the Ca
madam Pacific, and that congress wou1d
| nave legislated last session. If the sub-
Ject had not been overshadowed by the
Cuban crisis. Mr.. McNiccl said that
| ne did not take much notice of these
| remarks, as Mr.. Eustis did not renra
sent the American people, He denied
that the interstate traffic enioyed nv
the Canadian Pacific amounted to $50
100000. While there were no statistics
Tor passenger traffic, the freight traffic
amounted to only $1,000, 900 year. On
the other hand, the Canadian Pacific
he said, bought supplies from the
United States to the amount of s3.OOO.-
| 600 yearly
CLOUGH'S ADDRESS.
The feature of the afternoon session
was supplied by Vice President Clough.
of the Great Northern railroad. who
presented the political and economic
side OF the controversy to the commits
sion. In beginning his address, he said
it would be the duty of the commission
to make recommendations to congress
In order that legislation with regard TO
railways could be altered. He said
that the Canadian Pacific railway had
tapped all the important traffic centers
In the United States, and its policy was
to haul freight from one American
| point to another at rates which the
American lines refused to accept. He
contended that the exceptional circum-
stances of the case called for excep-
tional legislation.
The position which the American
government suffers the Canadian Pa
ciflc to occupy with regard to the do
mestic carrying trade, he insisted, is
altogether exceptional, illogical and un-
just to our people. From the very
birth of the Union congress followed
the settled policy of Great Britain by
declaring that no foreign vessel should
ever trade between one American port
and another. For years this policy was
followed, even on the great lakes Then
it was relaxed for time, until expert
ence showed its wisdom and fairness,
ard it was restored by order of the
president. If sound policy demands the
exclusion Of Canadian vessels from the
trade, no good reason can be advanced
for admitting Canadian railroads to a
share in that trade. Nevertheless. the
United States government has said. for
the advantage of the Canadian railway
owner solely, that the protection and
encouragement invariably afforded by
it to American vessel property shall not
be afforded to American railroad prop
ertV.
PROTECTION INVOLVED.
In working out the American protec-
tive tariff system 1t always has been
the rule that to every industry the ex-
penses of which are enhanced by the
need of using the protected products
of some other American industry a cor
responding and indemnifying protection
against the foreign competitor shall in
turn be given. Yet this has been aban-
doned in respect to one solitary Amer
lean industry, and one having vastly
more capital invested in it, having a
vastly larger pay roll and of vastly
more Importance to the common well
fare, in peace or war. than any other
the railroad carrying trade. All ma
terials used by American railroads are
of the highly protected class, but the
Canadian railways have long been able
to buy their track metal from Amer
| lean makers at price less than de-
manded of the roads of this country,
by an amount practically equaling the
| tariff duty.
On account Of this protective system.
Mr.. Clough argued, American railroads
are compelled to pay the highest wages
in the world, the tariff making living
so high that corresponding wages must
be paid. The railroad must bear a full
share of the burden incident to the pro-
lection of the other industries, it must
stand the direct and large increase in
the cost of materials, supplies and
wages, which it is the very end of the
protective system to accomplish, and,
after all this, 1t must stand alone in
naked exposure to the unlimited and
unconditional competition of the for
| eigner.
SOME STARTLING FIGURES.
The amount of the discrimination
against American roads is stupendous
and constantly grows. The statistics
of the customs department show that
Continued en- Seventh Page.