The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-09-03
Canadian Pacific Not Entitled to
a Differential Rate.
IT Is A COMPETING ROAD
The Line Is Equal in Every Way to the
American Transcontinentsl Routes.
The Decision Is Most
Important One.

cific, involving the propriety of differ
entail passenger rates between Eastern
points and the Pacific coast, held that
the Canadian Pacific is not entitled to
the differential contended for. The case
is one of the most important that has
been before the commission for a long
time, the American railroad lines and
the Canadian Pacific having been en-
gagged six months or more in a war
over passenger traffic between the East
ana West. The decision says:
The commission holds that the
claim made in behalf of the American
reads that no Canadian road is entitled
10 a dimerential under any American
line or any American business is prob
ably untenable, even from the stand
point Of the American roads. as some
Canadian roads, notably the Grand
Trunk, work in close connection with
American lines. and the public interest
in the reduced rates caused by compe-
tition is not to be ignored"
The commission, however. states that
II has no power to allow or disallow
the differential in dispute, but would
consider 1t extremely fortunate If the
conclusions reached should be made the
basis of any early adjustment. The
commission in conclusion says:
1t must be distinctly understood that
we do not recommend the settlement of
this controversy by the making of any
agreement involving arbitration or 9TH
erwise, which Is in violation of the
antitrust law. as interpreted by the
United states supreme court. Such
features Of the past or future history of
this controversy as may, in our judg-
ment' render appropriate any state
ment or recommendation To congress
VIII be presented In our annual report
To that body. So far as our official ac-
ton can affect the matter. we conclude
that we ought not at present to rescind
the suspension of orders made hereto
tore, but IL the difficulty should be ad-
Justed in accordance with the views
mere expressed, IL may become our duty
10 revoke the permission granted by
those orders"
The passenger tariff war involved i'm
this dispute also applies between 81
faul and other localities and points on
the Pacific coast which arose from the
refusal of American lines to longer
continue allowing the Canadian Pacific
dlHerential basis under which fares
from the East to Pacific coast points
by that route We're less than those by
the American lines by $3.50 on first
class and 81 on second-class business.
Very large reductions have been made
during the contest. The Canadian pa
cifc reduced the first-class fare from
Bostol. to Seattle first from S7l5 10
$40, anG then on March 10 last to S35.
This was after the commission had
suspended the long and short haul
clause To enable the American lines
TO meet the rates made by the Canad-
ian Pacific. This order was to expire
on June 80, but on June 22 the sus-
pension was extended by the commits
sion until Jan. l. 1899. and about the
time this was done the present inquiry
was instituted
Investigation was made i'm Chicago
on Aug. /, 1898, and the decision now
rendered Is based upon the facts then
disclosed. The decision says:
The first agreement for a differential
In favor OF the Canadian Pacific was
In lssS, when the Transcontinental as
sociation was formed. The Great
Northern became transcontinental
line in 1898. made large reductions i'm
passenger rates from st. Paul to the
Pacific coast. and it subsequently
agreed To give the Canadian Pacific
an all-rail connection 10 Seattle Ia
coma and Portland. i'm return for which
the Canadian Pacific differentials !
st. Paul We're avoided and the /
Great Northern accorded train service /
TO Vancouver. The differentials were
however, continued on the Canadian 1
Pacific main line after the supreme /
court Of the United States decided the 1
Trans Mississippi Freight association /
case under the antitrust law. The /
then existing Trans Continental asso-
ciation was thereupon dissolved.
The KlOndike travel soon after as 1
lumed considerable volume and the /
canadian Pacific found upon inquiry. /
hat tickets We're being sold by the
american lines at from so 10 SIS less
han their tariff rates, the concessions
,eing made through increased commits
ions allowed to ticket agents The
American lines asserted that the Can
dian Pacific had also cut the rates.
,ut insisted that this was not material
o this investigation in which the differ
initial is the real matter at issue.
The Canadian Pacific offered 10 arbi-
rate the differential question. provided
he old rates should first be restored
ut this was during the heavy Klondike
rattle and the American lines refused
subsequently, it made this offer without
ny condition and the Americans roads
ppear 10 have consented with the ex-
epiOn OF the Great Northern.
The other lines afterwards came
round to the Great Northern view
he commission Is unable 10 find in the
astimOny anything Outra geous in the
onduct Of the Canadian Pacific in this
natter. 1t says there may be reasons I
-hy this dlnerentlal ought never 10
ave been granted, but in insisting
pom II that company simply claims
nat numerous American lines had
Iaimed and what many were enjoying /
Whatever induced il 10 openly reduce
; rates. the Great Northern and
'orthern Pacific. its chief competitors. .
ad cut their rates In wilful violation
the law and thereby not only abol-
he'd the differenJial but took a sub
anJIal differential for themselves II
le American lines deemed the differ
ltial unwarranted, they should have !,
ualisled a rate which ignored IT, ,
either does the commission see any ,
hing radically wrong in the present ,
.t'tude of the Canadian Pacific regard ,
x the settlement OF this question Its
rnpusition for arbitration WAS not un- ,