The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-10-18

. Oh Terms which are ru1nOuS 10 our rOauS
and would have been ruinous to the Canadian
Pacific itself were 1t not upheld by the
subsidy and by other favors granted to 1t
by the British and Dominion governments.
And even with these advantages in its favor
the rates offered to passengers and shippers
of freight would have been Improbable to
the Canadian Pacific. 1t was, in plain
terms. a case of sapdbagging. The Canadian
Pacific, relying upon It's governmental boun-
ties and freedom from taxation, deliberately
bid for United States trade, so as to threat
en- ruin to our roads. The alternative Of
fered by the Canadian Pacific was the grant
ing 1t of 'differentia.s' Our roads con-
scented, because they dared not refuse. But
now that the United States roads have grown
stronger, they are anxious to recede from
a compact made under commercial duress.
The Interstate commerce commission has
practically decided against such "differen-
tails" With less than their usual shrewd-
ness however, the United States roads which
benefited from the rulings of the commission
agreed to submit their cause to further
hearing by three arbitrators. The chief argu-
ments presented to The arbtrators in behalf
Of the United States roads may be con-
densed thus:
1t Is inequitable and against sound national
policy to grant such faVors to a competing
foreigner as are not granted to competing
lines owned by the citizens of this country.
For example, the distance from Chicago to
San Francisco by the Illinois Central route
Is about 3,40o miles. The distance between
the same points via Omaha and Ogden is
about 1851 miles. By the Santa Fe route
1t Is about 2577 miles. Yet the Illinois Cen
trial and the Santa Fe ask no "differential'
from the line running the shorter route
through Omaha and Ogden. Each company
goes into the open market and completes for
freight and passenger traffic on its own mer-
Its. Why, then should the Canadian Pa
cifc. which by using United States lines to
Minneapolis and then shipping United States
freight and passengers via Winnipeg and
Manitoba, over a route of $500 miles, de-
man0 "differentials %
But for the bounties and privileges referred
to the Canadian Pacific could no. ship pound
of freight or carry sing,e passenger through
United States territory. Nowhere except in
the United States Is alien line of railway
or OF steamships permitted to interfere with
the domestic carrying trade. 1t was we'll said
by counsel for the United States lines:
The great nations of the earth that send
their ships to this country loaded with
merchandise for New York, and then desire
to send them to New Orleans or Galveston in
order to get return cargo of cotton or grain
are not permitted to take freight from New
York to New Orleans or Galveston at any
rate They are absolutely prohibited from
participating in the American coast traffic.
This is done in order to protect our coast
ing trade by a law which prevents foreign
bottoms from entering this traffic. With such
a law our statute books for the protec-
ton of the shipping business along the edges
Of our country, is 1t at all surprising that the
American railroads seriously object to freight
cars Of foreign bottoms being permitted to do
the inland business Of the country through
q foreign land at lower rates than the domes-
tic lines are permitted to carry the traffic for
themselves?
The United States roads paid $43, 000,0 900 as
taxes during the last fiscal year, and during
this year will pay about 81, DOC, 900 more than
that sum as their contribution to war ex-
penses. The Canadian Pacific pays a mere
bagatelle into the federal treasury. 1t runs
cars and engines built in Canada and manned
by Canadians who work for less than United
lines in American territory built by Americans
and manned by Americans, the profits of the
Canadian corporation and the wages Of it's
operators being spent in Canada, though both
are earned mainly by use of United States
trackage.
1t is to be hoped that the board Of arbitra-
ton, before which the case now Is pending,
will confirm the ruling of the interstate COM
merce commission. But whatever the present
result may be, the senate should give an en-
phatic denial to the unjust claim of the
Canadian Pacific when the protocol of the
Quebec conference comes before 1t for en-
bodiment in treaty.-Chicago Inter Ocean.