The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-08-04
II MAY b SHUT OUT.


ana represents q loss or earnings to the
American roads Of not less than $780,
100000 to $25.O0O.0 900 in money every
twelve months. Statistics of passenger
traffic are not SO complete, but Its vol
ume is likewise shown to be large. The
American lines have not lost a pound
OF traffic on account Of lack of facili-
ties for handling 1t. 1t has not been
lost to them because Of unwillingness
to handle 1t at fair rates.
In this country nearly thirds of
the gross earnings are paid out In OPP
Grating expenses; Practically. the whole
Of this expense IS for wages in some
department. For every dollar spent,
therefore, the American workmen gets
65 cents. 1t is obvious, therefore. that
every time the foreign roads divert
from the American roads $21,0O0,O0O Of
traffic they take $14.O00,0O0 directly out
of the pockets of American workmen.
Furthermore, Mr.. Clough showed, the
Canadian Pacific does not fit into the
system which national legislation in
this country has devised for preventing
the use of unjust determinations be-
tween persons and places in the con-
duct of the railroad transportation bus
mess. Congress may prevent 1t from
discriminating between points wholly
in the United States, but it cannot pre-
vent rebate being given for the haul
on Canadian soil before re-entry into
American territory. If such discrimi-
nation be discovered, congress is I'm
able to punish the offense.
ON A WATER BASIS.
To work out fair indemnihcation to
the American roads for the burdens Of
the protective tariff system put upon
them, Mr.. Clough suggested several
ways. The simplest and most practical
bic way would be to put transportation
by rail on the same footing as transport
taton by water. There is no good rea-
son, he stated, why both kinds of trans
portation should not be upon the same
basis, and every reason why both
should.
Another method perfectly fair, would
be the imposition of a duty upon goods
passing across Canadian territory, in
transit, at a scale sufficient to equaliZe
the conditions made by the American
tariff 1t would not be difficult to fix
such a scale. 1t might be on the ad
valorem basis or according to quantity.
Either would be perfectly practicable
and would abolish the unjust discrim-
ination against the rail transportation
business now exercised by our govern
ment.
'Itsis not expected that the privilege
of competing for the American trade
will be totally withdrawn from the Ca
madam roads at once" said Mr.. Clough.
ga little notice in advance of a pro-
posed change of policy in this regard
may we'll be given. But the early with
drawal of the privilege should be ar
ranged without delay. In the mean
time there are some details of this
competition as now carried on which
ought to have immediate attention.
PRACTICE IS ILLEGAL.
''There is no reason why railway
equipment, liable to very substantial
customs duties, should be suffered to
enter United States territory free. Yet,
outside Of law or even Of departmental
regulation, the practice has crept in
of Suffering cars, both freight and pas
senger, to cross the frontier without the
slightest question being raised. This
practice. plainly illegal, has had the
effect of putting into regular services
over thousands Of miles of road in this
country, freight and passenger cars
owned in foreign countries, and which
making power of the government
has never consented to such a practice.
1t should be stopped Immediately. No
freight or passenger car should be per-
mitted to enter our territory without
payment of the duties which the tariff
imposes upon imported articles. The
American roads are forbidden to bring
into the country either cars or the ma
terialS from which cars are made with
out paying duties. Why should the Ca
madam roads be allowed to bring their
equipment across the boundary free?
The laws have not provided for any
such additional favor to the foreigner.
The practice has grown Up in the face
of the law"
FEDERAL ARRANGEMENT.
What may be expected from tie
hands of the interstate commerce
commission is foreshadowed in the
strong arraignment of the Canadian
Pacific which the members of the fed
eral body promulgated with the call
for the meeting which is now being
held
1.-The general policy of the United
States government said the commits
sion in that official call, "for the past
generation has been that Of protection
to it's industries, transportation as well
sIs manufacturing mining and agri-
cultural. To aid it's shipping indus
tries it absolutely prohibited any for
eign vessel from participating in the
transportation of traffic from one port
of the United States to another port in
the United States. 1t frequently oc-
ours that foreign ship comes into
the port of New York with cargo,
discharges it. and then goes to New
Orleans for a cargo of cotton for Liv-
erpool. In that case it goes empty to
New Orleans. Indeed, it incurs eX-
penses to take on ballast to enable it
to get to New Orleans. Now, if it
could participate in carrying our traf-
fic it would cheerfully take a cargo for
New Orleans at a nominal rate, but
the merchant shipping to New Orleans
cannot avail himself of the cheap rates
which the foreign vessel could afford,
but pays the American ship owner in
stead whatever the service is worth.
can exception to this policy of pro-
tecting our own industries prevails in
railroad transportation. Our congress,
by law, has permitted the Canadian
Pacific Railroad company to bring its
cars into our territory and take our
goods into Canada, and thence carry
them across Canada and back into the
United States again, thus depriving
our own roads of the much needed rev.
enue which they would have derived
from the traffic if foreign railroads
foreign ships. This is a very serious
matter to our roads.
NOTHING ON INVESTMENT.
"For. the past five years more than
So 1000, 100000 of the capital stock of our
railroads has not earned 1 cent on the
investment In addition to that enor-