The Saint Paul globe., 1898-08-04

Heature of Yesterdays Ses.;
Discussion OF the PoIftt.,,
oic Side by Vice President
CIoush, of the Great Nor1
aS Company-He Says over
o'ooo'ooo Tons of Freight, In
volving From sec. cocoon 70
%@o'ooo'oc0, Is Diverted From,
the United States by Non-T,
Paying Institution.
CHICAGO. Aug. 3.-Trafic Manager
McNlcoll, Of the Canadian Pacific rail
ROAD, concluded his direct statement Us,
lore the interstate commerce conn,is-
sion today in regard to the ra+a -
between the Canadian Pacific railway
ana the American lines. Mr.. McNicou
IN MS closing remarks, told of his Of
forts to restore peace with tbe An,ar
iean companies, and how his efforts
were thWarted by the refusal of the.
companies to discuss the question of
olHerentials. He insisted that rho
American lines had refused TO aeoar+
suggestions, and had said that tba
canadian Pacific must agree to all
their terms
Mr. Eustis, general passenger agent
OF the Chicago, Burlington e. Quincy
he said, had told them that tbaro
would be legislation against the ca
nad1an Pacific, and that congress would
nave legislated last session, if the sub
Ject had not been overshadoved bv tho
Cuban crisis. Mr.. McNicon said that
ne old not take much notice of these
remarks, as Mr.. Eustis did not repre-
sent the American people. He denied
tnat the interstate traffic entoyed nv
the canadian Pacific amounted to $50 :
oOo'ooo. While there We're no statistics
Tor passenger traffic the freight traffic
amounted to only 81, 1900, 600 a wear. On
the other hand, the Canadian Pacific
ne SAID, bought supplies from the
United States to the amount of e. oao
600 yearly.
CLOUGH'S ADDRESS.
Ihe feature Of the afternoon session
was supplied by Vice President Clougb
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
IL 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 Ca Dc oiAo
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
enc 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 bv
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
IL was relaxed for time, until expert
ence showed it's 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
1t to American vessel property shall not
be afforded to American railroad prop
erty
PROTECTION INVOLVED.
In working out the American pretec-
tive tariff system it always has been
tie 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 abI,
to buy their track metal from Amer
lean makers at a 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 it must stand alone in
naked exposure to the unlimited and
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.