The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-07

Montreal and Toronto. The history Of trans
poriation shows thss tho now Of all great crops
TO market 10 clearly defined by the lines Of least
resistance as that of great river and that when
water and wheat are going the same way they will
90 together. To imagine that railway line can
divert tho natural now OF the Northwest wheat
crop from the Great Lakes and the st. Lawrence
| Is 20 imagine vain thing. Wheat 10 q crop which
must DO handled at o minimum Of COST and that
| minimum Is not to be found in two Thousand
| mile railway haul. even under the most favorable
| conditions"
SO far as through traffic is concerned,
the argument thus advanced by the
Gazette is perfectly sound. The con-
struction Of tho line upon basis OF
local traffic through such country as
that which lies along the proposed route
from Moncton to Winnipeg is an e1-
pertinent which presents little or no
commercial encouragement under the
existing circumstances.
The plan will not be adopted without
vigorous and persistent protest. The
reference Of the Gazette to the fads OF
theorists and the hopes Of grafters, /"
finds a companion argument in allega-
tons that the construction Of the line
will constitute q powerful political in
fluence by which the Liberal party, now
in power, hopes to strengthen itself in
the eastern provinces.
To the construction of the western
section, from Winnipeg to the Pacific,
there is and can be no sound objection.
The time is ripe for such a line, and all
conditions point to an abundant sue
cess. The region which it is proposed
to traverse is known to be fruitful, and
it lies directly in the line Of the tide Of
immigration now spreading out to the
northward Of our own Northwest. Such
a line is the logical outcome Of the sue
cess of the Canadian Pacific, and there
Is justification in ample measure not
only for the projected Grand Trunk
Pacific, but az we'll for the proposed
westward extension Of the Central Can
ada Railway and the Canadian North
ern. The question which arises regard
ing these new western lines is whether
there is warrant or need for Govern
mental aid in any form. There would
appear to be sufficient promise Of re-
turns to justify their construction as
commercial enterprises by private cap
ital
1t is estimated that the cost Of carry
ing out the proposed Grand Trunk
Pacific scheme will increase the national
debt by s30OOo,0OO to $40, 0O0,O0 and
the annual interest charges by more
than s1,OOO,OOO The proposal for the
western section is the issue of bonds
guaranteed by the Government to cover
rs per cent. Of the cost Of construction
up to q cost of $4,000 per mile for the
prairie section and up to $4,000 per
mile for a fixed 500 miles of mountain
work.
The line being completed, the eastern
section, owned by the Government, will
be leased to tho Grand Trunk Pacific
Company for fifty years, subject to
specified conditions. For the fret five
years no rental is to be paid, as II is
assumed that the line will be run at a
loss. For the second five years, should
there then be profit, there will DO paid in
terest on the cost Of construction. not
TO exceed a rate of 3 per cent, based
upon the amount Of profit made. For
the next forty years the rental will be
per cent. on the cost Of construction.
A relief clause is also provided for the
western section in the event Of shortage
during tho first five years. So far as
the company is concerned, its PROPOSE
ton is tantamount to the construction
of line financed by bonds guaranteed
by the Government with minimum
outlay Of its own capital. A deposit Of
S. 900 600 with the Bank OF Montreal is
required as an evidence OF good faith
The company estimates the total cost
of construction and equipment at about
SIPS, 600 900, though this is probably ex-
cessive. OF this, 500, OOO, 600 is the esti-
mate for construction OF which it ap-
pears that some s7O0OO,0OO or more is
TO be provided either by the Govern
ment or upon bonds guaranteed by the
Government.
From all present indications. if this
line be constructed, it's western section
will repeat the experience of the Cana
dian Pacific, aud its eastern end dupli-
cate that OF the Intercolonial. The net
profit of the line as whole will depend
upon the surplus Of the western end
in its relation to the deficit of the east
ern end.
1t ia believed that the attitude Of the
Ministry will be declared to-day. Should
it be favorable to the enterprise a warm
contest may be expected,
sprigs and the HOOsier Byron.
! I !