The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-04-13
HISTORY OF THE RATE WAR
CANADIAN PACIFIC's CLAIMS
ARE REGARDED AS UNJUST

While a. Few Years Ago the Amer
lean Lines Were willing to Allow
DiHerentiaIs, the Increased Serv-
ices and Connections of the For
eign Competitor Make Similar De-
mands Seem Unreasonable.
NEW YORK, April 12.-The special
committees having in charge the set
Element of the trouble over transcon-
tinental passenger rates held meeting
today and adjourned until tomorrow
morning without action. The commit
Canadian Pacific. chairman; F. I.
Whitney. of the Great Northern; w. E.
Davis. of the Grand Trunk; P. S. Eus-
It's, Of the Chicago, Milwaukee & st.
Paul.
A member of the committee declined
to discuss the attitude of the other
roads in the matter of the Canadian
Pacific differential, but intimated that
the American roads will oppose their
rival to the last unless important con-
cessions come from that side. Whether
such concessions will be made could not
be ascentained, but the opinion will be
expressed that the Canadian road will
meet the others at least half way at
tomorrow's meeting.
A meeting Of the committee, consist
ing of representatives Of the Grand
Trunk Railway company; the Cana
dian Pacific Railway company, the
lines between Chicago and ST. Paul and
Transcontinental lines was held yester-
day in New York, with a view to the
adjustment of the question Of differ
entail rate in favor of the Canadian
Pacific on Alaskan business. Local
ro lI-0E n hi ;,,ta
ested in the outcome. If that commit
tee can report a plan by which the
differences can be adjusted there will
doubtless be an early meeting of all
the lines interested If no agreement
is reached it is probable that the exist
ing confusion in rates will continue for
a considerable time to come.
The controversy is peculiar in some
respects, but clearly indicates the
avaricious tendencies Of the Canadian
Pacific in their competition with the
American lines. That company have
always enjoyed the advantage Of diff
ferential rates on freight from the
East to California, via Vancouver and
the ocean: but they never had any
differential on freight rates to points
on Puget Sound in the United States,
or British Columbia or to Portland, Or.
The rates to all these Northern Paci-
fic coast points have been the same
by all lines.
When the Canadian Pacific opened
up for business to the Pacific coast, via
ST. Paul and Winnipeg, their North
Shore through line not being complet-
ed, and they having no connections for
Vancouver, South, except by boat twice
a week, they announced rates from SIS
to $40 less than those in effect by Amer
lean lines, to both North Pacific coast
and California points, and tried to
have such rates inserted in the rate
sheets; but in this they failed.
They then demanded differentials on
California business, on the ground that
there were physical disabilities which
they could not overcome, and which
rates than those in effect by the es-
tablished routes. They made no de-
mand for differentials ON the North
Pacific coast; but when the California
lines finally compromised and allowed
them, under an association agreement,
contain differentials, these differentials
were made, necessarily, to apply to
North Pacific coast points through
which the California business was re-
quired to be routed. yiaa- 1..5s.,..
The first demanded the Canadian
Pacific was, 1T is said, for q cash SUBJ
sidy. Failing to get this, it is alleged,
they proposed to name lower rates than
those in effect upon the American lines,
although the latter, were conceded to
be quite as low as the volume Of the
traffic justified. It may be said that
the granting of the differential tariff
was compromise. The agreement did
not provide for any differential on
Alaska business, or on Trans-Pacific
business.
Within the past few years-that is,
since the completion Of the $500 Pa
cific and the North Shore line of the
Canadian Pacific. and the establish
ment of through railroad service via
the Canadian Pacific to Seattle, the
American lines have felt that the Cana
dian Pacific were no longer entitled
in Justice, to differential, in that
possessing through lire from the At
lantic to the Pacific coast; facilities on
both the Atlantic and Pacific coasts
hundreds of agencies scattered all over
the world, and through car service from
Boston to Puget Sound, they were in
American lines, at even rates. The
Canadian Pacific, however, were never
willing, it appears, to concede this
point although they admitted that the
disabilities on which they based their
demands for differentials had long
since been replaced by facilities quite
equal to those Of their neighbors.
When the Alaska business developed
in so large volume. the Canadian Pa
cific, with their various routes, claimed
and with some show Of reason, that
their line was the best route to Alaska
as against all American lines; and yet
they proceeded to take differential
in connection with the Alaska business
This action was promptly resented by
the American lines, which made their
rates equal to those Of the Canadian
Do Jf flo ho
agreements in effect, neither association
agreements nor agreements between
the Canadian Pacific and other rail.
| ways, so 1t is said, that in any way
sanctioned, or authorized, the use by
| the Canadian Pacific of differentia.
rates.
The Canadian Pacific people were
pleased to consider this making of rates
to Alaska equal to their own as a
cut in rates on the part of American
| roads; hence, without any provocatior
they at once proceeded to cut the rates
from st. Paul to the Pacific coast and
from the Atlantic coast to Oregon
Washington and California, as we'll as
Alaska, from so to IS per cent.
While in the judgment Of some rail.
way traffic men, there might have beer
some justification for the granting Of
the differential ten years ago, when the
Canadian Pacific was lacking many ia
cilities which they enjoy today, it is
| held that no good reason can be adj
vanced now why that road should not
| compete fairly and openly with the
| other transcontinental lines, at equa
| rates.
1t is argued that the Canadian Pa
| cific seemed very quick to resent any
| possible interference on the part OF
| American lines with traffic originating
| within their own territory. An illus
| tration of this seems to have been af.