The record-union., 1899-09-10
PROPOSED DEAL
IN RAILWAYS.
Announced That The Canadian Pa
cific Company
Is DESTROYS Of Securing Control of the
lntercoloniaI System.
Should 1t Secure Control Of the
System 1t Is Proposed to Estab-
Iish a Fast Line of Steamers
Which Will Ply Between Liver
pool and Canada.

NEW YORK, Sept. "a special to
the Tribune from Montreal says:
A great deal of interest has been
aroused in Canada by the announce
ment of the Canadian Pacific Railway
that it is desirous of securing control
of the IntercOlOnial Railway system,
which is the property of the Canadian
people. Some years ago there were
signs that the Canadian Pacific Rail-
way had designs on the road but the
sentiment hostile to a sale was so un-
mistakable that the matter was drop
ped. Since then the business of the
Intercolonial has shown such signs of
improvement that there is now no
doubt that the Canadian Pacific is anx-
ious to secure possession, particularly
as, under existing circumstances, the
Government road has close and profit
able relations with the Grand Trunk,
the Canadian Pacifc's rival
Sir William Van Horne, Chairman OF
the directors of the Canadian Pacific,
in a public interview within the last
few days. said that his road would be
glad to undertake the management of
the Intercolonial. If the Government
would lease the road for a long term OF
years the Canadian Pacific would be
willing to guarantee that the railway y
would cost the people of Canada moth
ing in the future; that the maximum
rates would never be higher than the
present rates and that the Government
should have power to regulate the
rates and lower them, under certain
conditions
/ Sir William said if the Canadian Pa
cific Railway had control of the Inter
colonial it would be willing, for a year
ly subsidy of S750,000 to establish a
fast Atlantic line of passenger steam
ers, which would ply between Liverpool,
and Canada, running to Quebec in the
summer and to Halifax in the winter.
Sir William claimed that at present
the Intercolonial was costing the peo,
pie of Canada S7500o0 a year, though
this fact is disguised by clever book
keeping and the manipulation of the
capital account. As a further bait, Sir
William said that the Canadian Pa
cific would be prepared to build a fine
system of summer hotels along the line
of the railway and to spend money in
encouraging tourist travellers.
This statement excites exceptional in,
lcIeSl, D6cduSe 1t IIldy Indicate a new
line of. Cleavage in Canadian politics.
For some years past an agitation in
favor of the Government ownership of
railways has been carried on and a
strong feeling aroused Advocates of
this policy are to be found in both po-
litical parties. but the most practical
steps in this direction have been taken
by the present Minister of Railways. A,
B. Blair.
Immediately upon entering office he
set himself to work to make the Inter-
colonial an effective factor in the Ca.
madam situation. AS it then stood. it's
western terminus was in a field near
Point Lewis, across the st. Lawrence
River from Quebec. and it was de-
pendent on the Grand Trunk for West
ern freight. Mr.. Blair extended it to
Montreal by buying the Drummond
County Railway, which carried the sys~
tenn west for a distance of 80 miles,
and. by securing running rights in per-
petuity over the Grand Trunk lines and