The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-09-10
DESIRES TO CONTROL
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Canadian Pacific Railway Finally
Tips ITS Hand.
WOULD ABSORB RAIL WAY
PROPOSED DEAL MEANS CLEAV-
AGE IN CANADIAN POLITICS.
The General Interests of the Govern
ment Railways Will Not Be Sac
rificed-Liberal Party Will Not
Agree to Dispose of the Intercolo-
NAL to thes Canadian Pacific.

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 DESTROYS 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
dropped. Since then the business of the
lntercolonial has shown such signs of
improvement that there is now no doubt
that the Canadian Pacific is anx-
louS to secure possession, particularly
as under existing circumstances the
government road has close and profit
able relations with the Grand Trunk,
the Canadian Pacific's rival.
Sir William Van Horne, chairman of
the directors of the Canadian Pacific
in 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 long term
of years, the Canadian Pacific would
be willing to guarantee that the rail-
way would cost the people of Canada
nothing in the future. Sir William sad
if the Canadian Pacific railway had
control of the Intercolonial, it would
be willing. for yearly subsidy of $780,
600, to establish a fast Atlantic line of
passenger steamers, which would ply
between Liverpool and Canada, rum
ming to Quebec in summer and to Hall
fax in winter.
EXcites Interest.
This statement excites exceptional in
terest, because it may 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.
G. Blair Immediately upon entering
Office he set himself to work to make
the Intercolonial an effective factor in
the Canadian situation.
Traffic Arrangement.
Then a traffic arrangement was made
with the Grand Trunk by which the
two roads exchanged freight at Mon
treal. This working arrangement was
bitterly opposed by the Canadian Pa
cific, which had, by a former traffic
arrangement, the right to secure freight
from the Intercolonial at st. Johns,
thus deprivin~ the government road Of
the long haul on freight originating in
its own territory. This arrangement
Mr.. Blair positively refused to con-
tinue, and in consequence the relations
between the Canadian Pacific and the
government are strained. An interest
ing feature of the quarrel is the threat
of the Canadian Pacific to boycott the
town of ST. John.
A Fighting Alliance.
1t is not probable that the govern
ment will yield, Mr.. Blair in an inter-
view saying he will not sacrifice the
general interests of the government
railways even to advance the local in
terests Of St. John.
1t is from this apparent that the lib
eral government will not agree to dis
pose of the Intercolonial to the Ca
madam Pacific railway, its policy being
to extend and consolidate the system
and make it increasingly effective as
a. competing road, and Sir William Van
Horne's deliverance is interpreted by
some to mean that the railway is pre-
pairing to make a fighting alliance with
the conservatives, the understanding
being that if it is effective in returning
them to power at the elections which
will be held within the next year, the
reward will be the consolidation of the
two railway systems under the present
Canadian Pacific management.