The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-09-03
ST. PAUL ROADS WIN
INTERSTATE COMMERCE COM
MISSION FILES A DECISION

Six Months War I'm Passenger
Canadian Lines Settled In Favor
of the Former.
WASHINGTON, Sept. 2.-The inter
state commerce commission, by decision
| today, in the matter Of the passenger
rate disturbance of the Canadian Pa
| cific railroad, involving the propriety
of differential passenger rates between
Eastern points and the Pacific coast,
held that the Canadian Pacific is not
| entitled to the differential cortended
| for.
The case is one of the most important
! that has been before the commission
| for long time, the American railroad
lines and the Canadian Pacific having
been engaged six months or more in a
war in passenger tariff between the
East and the West. Investigation was
had in Chicago on Aug. 1, 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 1888,
when the Transcon tinental association was
formed. The Great Northern became trans
continental line in 1888, made large reduc-
tious in passenger rat from st. Paul to
the Pacific coast and it subsequently agreed
to give the Canadian Pacific an allrail con-
nection to Seattle, Tacoma and Po,tland, in
return for which the Canadian Pacific Differ
entails through St. Paul were waived and
the Great Northern obtained train service 10
Vancouver. The difRerentials were, however,
continued on the Canadian Pacific line until
after the United States supreme court de-
cided the trans Missouri Ere ght as ociation
case under the antitrust law. The then ex
listing Transcontinental association was there
upon dissolved.
The Klondike travel soon after assumed
considerable volume, and the Canadian Pa
cifc found, upon inquiry, that tickets were
being sold by the American lines from $40
to SIS less than their tariff rates, the con-
cession being made through increa ed COM
missions allowed to ticket agents. The
American lines asserted that the Canadian
Pacific had also cut the rates. but in sis ed
that this was not material to this investiga-
ton, in which the differential Is the real
matter at issue.
The passenger tariff war involved in this
dispute also applies between st. Paul and
other localities and points on the Pacific
American lines to longer continue allowing
the Canadian Pacific a differential basis un-
der which fares from the East to Pacific coast
points by that route were less than those
by the American lines by $3.50 on frst-class
and So second-class business Very large
reductions in rates have been made during
the contest The Canadian Pacific reduced
the frst-cass fare from Boston to Seattle,
first from $71.75 to $40, and then, on March
NH
had suspended the long and short-haul clause
to enable the American lines to meet the
rates made by the Canadian Pacific This
order was to expire on June 30 but on June
% the suspension was extended by the COM
mission until Jan. /, 1899, and about the
time this was done the present inquiry was
instituted.
ARBITRATION OFFERED.
The Canadian Pacific offered to arbitrate
the differential question, provided the old
rates should first be restored but this was
during the heavy Klondike business and
the American lines refused. Subsequently it
made this offer without any condition, and
the American roads appear to have consented
with the exception Of the Great Northern.
The other American lines afterward came
around to the Great Northern view
The commission is unable to find in the
duct of the Canadian Pacific in this mat
ter. It says there may be reasons why this
particular differential ought never to have
been granted, but adds that the company
simply claimed what numerous American
lines claimed and what many were enjoy
ing. Whatever induced it to openly reduce
It's rates, the Great Northern and Northern
Pacific, its chief competitors, had cut their
thereby In wi.ful violation of the law, and
OY1Iu halic had 1ha
but took a substantial differential for them
selves. If the American lines deemed the
differential unwarranted, they should have
published rate which ignored 1t. Neither
does the commission see anything radically
wrong in the present attitude of the ques-
ton. It's proposition for arbitration was not
unfair. On the other hand, the commission
disc.aims any intention to criticise the Great
Northern for refusing to arbitrate. In view
of the aid granted to the American roads
by suspension Of the long and short haul
clause and the request for its continuance
the commission finds 1t necessary to deter
mine whether this claim for a differential
is just, and says that all along this has
been the real source of contention between
the parties.
The commission holds that the claim made
In behalf Of the American roads that no
Canadian road is entitled to a differential
| under any American line on any American
| business is probably untenab,e, even from
| the standpoint 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 competition is not to be ignored
| The application of a rule that a Canadian
road shall in case charge less than an
American road might go far towards Destroy
| ing the benefits of competition. Whether or
not Canadian roads should be allowed to
participate at all in the carrying trade of
| the United States is a much broader and al
| together a different question. Under acts Of
| congress they admitted to such par
| ticipation, and whether it Is wise or the re-
verse is for the consideration of congress
and the treaty-making power and 1t issp point
| ed out that this is one of the subjects be-
for the Ang.o-American high joint commits
sion now in session at Quebec.
QUESTIONS OF FACT.
| Passing to the question of fact
whether at the present time the Cana
| dian Pacific ought to have a differential
| on the business involved, the commits
| sion holds that the distance between
| New York and San Francisco, by the
| Canadian Pacific, is about 1000 miles as
against 5000 by the direct American
routes; that the Canadian Pacific does
| not seem to have any business with the
| passenger traffic between those points
and that a differential should be denied
on that ground But the Canadian Pa
cific does not seriously contend for a.
nn ac.ci<N