The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-07-22
NEWS OF THE RAILROADS
AMERICAN CANADIAN RAIL
ROAD MEN IN COUNCIL

Freight and Passenger Agents of
the Canadian Pacific and the
American TranscontinentaI Lines
Meet In This City and Make an
Effort to Solve the Rate Prob
lem Peacefully.
The freight and passenger officials of
the Canadian Pacific, Union Pacific,
Northern Pacific and Great Northern
held and all-day session at the Office
of General Traffic Manager Clarke. Of
the Great Northern, yesterday. Among
those present at the meeting were
Freight and Passenger Traffic Manager
Kerr, of the Canadian Pacific; Gener-
al Agent Peters, Of the Canadian Pa
cific; Assistant General Freight Agent
Garrett, Of the Union Pacific; General
Traffic Manager Hannarord and Cen
eral Freight Agent Moore, of the
Northern Pacific; General Traffic Man
ager Clarke and General Freight Agent
Somers, Of the Great Northern.
Rates in general and the rate war in
particular were discussed all day long,
but SO far as the latter was concerned
the officials were unable to arrive at a
solution that might bring about a sat
isfactory adjustment of the veXing
problem. There was not an official at
the meeting that was not of the opinion
that the present rate tangle is one of
the worst, if not the worst, that they
have ever had to deal with.
When the meeting adjourned late in
the afternoon 1T was learned that an
understanding had been reached look
ing toward a. settlement of the differen-
tial problem. Just what this under
standing was was not made public. In
discussing the differentials the Can
adam Pacific was arrayed against the
other roads represented. 1t was claim
ed by the Canadian road that it was
still entitled to differentials Of $3.50 and
So on California business. The other
roads argued that the agreement that
had covered the allowing of these diff
ferentials had ceased to exist long ago.
In the discussion it developed that
a great many freight and passenger
rates in Western territory had been
cut unnecessarily since the cuts had
not added strength to either SIDE It
was found that this was especially
true in the Pacific coast country.
1t is probable that another meeting
of the magnates will be held before
long and that as a result Of yester-
days meeting an agreement may be
framed covering differentials on West
bound business.
While President Van Horne, of the
Canadian Pacific, was not present at
the meeting yesterday, 1t was under
stood that his presence in the city and
his frequent consultations with Prelsi-
dent Hill since his coming here had
much to do with the understanding
covering the differentfal situation It
is expected that President Van Horne
will leave for home today.
The following statement of the con-
troversy has been issued by the inter-
state commerce commission:
The general policy of the United States gov
eminent for the past generation has been that
Of protection to its industries, transportation
as well as manufacturing, mining ard agrl-
solutely prohibited any foreign vessel from
participating in the transportation of traffic
from one port Of the United States to another
port IN the United States. 1t frequently occurs
that a foreign ship comes into the port of
New York with cargo, discharges it, and
then, goes to New Orleans for cargo Of c1t-
ton for Liverpool. In that case it goes empty
to take en- ballast to enable it to get to New
Orleans. Now, if 1t could participate in carry
ing our traffic it would cheerfuly take a
cargo for New Orleans at nominal rate,
but the merchant shipping to New Orleans
cannot avail himself of the cheap rates which
the foreign vessel could afford, but pays thu
service Is worth.
An exception to this policy Of protecting our
own industries prevails in railroad transporta-
ton. 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 back into the United States
again, thus depriving our own roads. Of the
much-needed revenue which they would have
derived from the traffic IL foreign railroads
were placed on the same footing as foreign
ships. This Is a very serious matter to our
roads. For the past five years more than
5000, 0C0, 900 of the capital stock of rail-
roads has not earned one cent on the invest
ment. In addition to that enormous less, they
have not earned dollar on 5000, DOC. coo of
bonds. But during that time they have paid
to the state governments through which they
pass from $36, coo, 000 in 1894 to SAL 0G0 600 in
1897. Since the panic of 1893 their taxes have
increased at the rate Of more than $1,000. 900
over the preceding year. Now, on top of that
comes the new war taxes which will aggre-
gate many millions of dollars more. The Can
adam Pacific railroad. of Canada, Of course,
pays no taxes. The privilege it enjoys gives
roads. But this is not all. Our congress
enacted laws of very highly restrictive
character controlling our railroads, prohibit
ing them from lowering their rates without
three days public notice. and from raising
them without ten days notice; prohibiting
them from paying rebates to secure traffic,
and requiring them to do some and refrain from
doing other things which make against their
business, unless all of their competitors are
under the same restrictions.
The Canadian Pacific railroad, by reason of
its being situated in foreign territory, has
been held by United States courts to be prac-
tcally exempt from the burdens and embar-
easements which our laws impose upon our
own roads. In other words, the American
roads have their hands tied by our laws
wherever they are in competition with the
Canadian Pacific railroad, while the latter Is
free and unembarrassed to wage destructive
war upon the United Staes lines.
In February last the interstate commerce
commission decided that in a rate war then
being conducted by the Canadian Pacific
against our lines they were buying our traffic
away from our lines and carrying it at about
half what the service was worth, and that
the means employed, If done by a United
States road, would be in violation Of law,
which would subject them to Indictment but,
as the Canadian Pacific road was not subjsc.
to our law there was no way to restrain them
from continuing their illegitimate practices.
Notwithstanding that decision, the Canadian
Pacific, which derives its chief support by ths
sufferance of our laws takes advantage of
their permission to do business in this coun-
try, has continued and yet persists in it's
practices, which are resulting so dlsastrously
to American lines.
In view of these facts, aside from the gen.
eral policy Of protection, the enormous taxes
which our roads contribute to the public
welfare, and that they are available q. all
times to our government for military pur-
poses, they ought in common fairness to be
relieved from the warfare which has de-
generated into one of destruction.
FOR HANDLING LIVE STOCK.