The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-10-03
1HE AMERHczw RAILROADS. AND THB
CANlDTAN PAcTFYC
Some Remarks on the Recent Opinion of
the Interstate COmmission.

1N,N -n,ork c.A Nnptn10a ~ thn TRfaH.Noto Nounz
800 coro,nis.ion on Canadisn Psciac nnssen.
sSnSs.s st1asaa,t.I. q. .s.,asaotoSr a. n. -
III. ssSn sa.sl,S.- Len a. Hnatoo .h.t ~
s,0cseat,.1o ,,Sht 20 ~ an,rio,ad he tho can.1
sI.s p..ta. Cs..... mi. a.5tn. 4. 1900
49, amaI.hina ~ tho t.ot. IN en- I,cht ~
hat 49, nndarstood hv tho comnio.ton 20 he
~ n.ia.tnIns ns.ssntrs a. ornI,,a,.an - an
diferentinl basis as customarily employed in
the United 6tatep. While the Commission
found itself powerIcss 70 make a ruling on a
u~uestion Of this charnoter. which oould be en-
Sorred IN tho court. n "vonld deem n az.
tr.ro o,v ,ortrnoto 20 tho oorcir.,ons rc,chod
n,I-nt ~ mssa. ha h..,s - - nar,r ad;nstmont
astSS EsA.S- S,g.s-ssa
This recommendation has been accepted by
the Canadian Pacific. apparently in good faith.
though perhaps In a spirit savoring somewhat
OF patronage; In substance It Gays to the Amer
loan lines. Put In your rates; we will not par
tlclpate In making them. but when you are
through we will establish rates the same as tho
lowest combination available through United
States gateways; and II we catch you shading
your figures we will thrash you rs you de-
serve" It Ia obvious that the reservations thus
made contain the seeds OF possible future
friction and disaster: and In making them the
Canadian Pacific Is far from expressing q will
inRness to compete on even terms with Its sew
GIhl AIuOEICuuC OInUGoEb. NONCItICl0bbe NI0 DIV
uation Is better than It was. and for this relief
much thanksl
One or two statements are found In the opin-
ion OF tho Commission which seem to be unfor-
tunate and incorrect, and which in o way ap-
pear to Justify the Canadian Pacific for is past
methods and its present dictatortal attitude.
The first is this:
vo ~ rr.h,. - Ana IN tho ,.,,,r,orv ,,v+h,r,
outr,geour in tho oonsnct of tbe C.nadi.n road An
tbia matter. Itmny have originally used ita power
to infict injury as q means Of obtaining the allow
ance Of this dinerential, aud IL It did, that IL Pre-.
cisely what, In q greater or less degree. every road
which obtains a diHerentlAl. or an advantage in the
shape Of . diderentiAl. does.
Thu bistorv NJ tba diyeront,.l rata IN the
unitod stnto. doo. NJ .aor 20 he nndarstood
corroctIv nv tho Co,n uission D,fyaroptiol. bava
hoan consented 10 orror1ad In conferancea
svorded nv transc oommiseiono eTnorto and
orh,trotor- A,t 90 t.r.. NV r.r,orv ovt.nd.
oIvavs "A an orreed neono 10 an and beino A
rocoon,vod mnthod tboroh Dorhon. ~ doubt.
hi arn.d;.rov Co. on.hInr an inforior I,na n
Obtain The share n, common hnsinosa which the
otber linz. v,sre vrninr n ohouId oot Fore
omnio ths nro..nt hound 1reioht difrer-
ont,aIs ~ tho Ort.rio anS Woatorn yvera
o,,rdad 70 tho. ,Ina IN 80 th,t a anal MOD
go 20 h,,tnosa w.Icht ~ ottrn.tod TT
t. a. 80 ~ - a di0o.ontIa, he. hooD
onca concodod tha Iinns which oriov ~ baro
hoon yorv ;oaIouo for Its nreeorvotion vndornn
Suct,at;ons ~ ratss mon comnotine Inss
and tbis tenacitv has NJ time. occasjoned m,nv
complaints; but 1t is doubtful II many cases
can be stated In which a new Line or O circui-
tous route has deliberately asserted a claim to
eniov N atated difYerential. and announced its
nurnoea n anforce thia claim Through n war ~
rates Tbia Ia 1vbat the Canadian paciac ba.
dono ond ~ has oIso NJ d,Torort time. bnoLed
- a.. 49, - - 49, 80 4SssS~s
other lines. coupled with the announcement OF
a determination to continue such reductions
to the end. Certainly NO other such case as
this was ever known among the transcontinen-
tai lines. for no difIerential rates exist or over
have existed west OF the Mississippi River ex-
cept those which the Canadian Pacific has sue
ceeded in forcing upon its competitors by
processes that can best be described as bull
dozing.' As the Commission suggests, it's
power to infict injury without corresponding
injury to itself was exceptional. The American
transcontinental roads could not engage in q
rate war with the Canadian Pacific their losses
would be too enormous; practically. their en-
tire traffic would be affected. and their interest
charges and taxes must be met. 1t seems to
me that the history Of the transaction by
which these differentials were forced into
effect showst that the methods Of the Canadian
line were we'll characterized By the epithet
Outrageous
The second point In the opinion OF the Com
mission to which I call attention Is this:
No. ,.r ,,. c.,.H., ro .h.u ~. ,,s.
.nv circnm.t.nc.. enIov a dir.rsnt,.I 4. 70 az IN ~
feet that Il sb,lI IN no c,ae ohnrga less than The
American line. II NAV carry trafnc between points
in the United States, but IL must do 90 at the rate
fixed by the United States railroad. The application
Of auch n rule miaht no far toward deatroyin1 the
benefits of Canadian competition.
rh,. soon saom ,ro.. ou,onuuuA
e. tha kmarioan ro.ds In foot .nd ootnonT
- a. ConadI.n pooiao .aonTroS-a .Iat.m
tha Gmoric.n Iines should aIwavs ohnr1a
higher rates than itself. II they were unwilling
to do this the penalty was a rate war. This de-
mand extended to freight trahic as well as mas
aApoer trafBc and vas an forcAd nv the sama
motboda Tho 1ra,obt d,HarontjaI ~ ~ nor
a~St - t.naoontin.nt.I tramo th,. ohto,1aS