The New York herald., 1920-01-11
TARIFF MAY SPLIT
CANADA into NEW
POLITICAL PARTIES
Farmers Free TradeSentiment
Grows-Conservatives Are
Alarmed by Strength.
Esrrc1AL pEspArcs 10 THE uynArp.l

tsrEcTAL DESPATCH TO THE nyRAIp1
OTTAWA. Ontario. Saturday.
conditions In Canadian politics have given
rise to tentative proposals looking to a
new alignment. The old Conservative
party has been pretty we'll replaced by
The Unionists. who embrace also section
Of the Liberals. The former are tradition
ally protectionists. At the same time the
platform of the regular Liberal party, as
adopted ut it's national convention. Is re-
gsrded by many OF the adherents as too
sedical in respect to fiscal reform.
This element. like the Conservatives and
niany OF the Union party, now favors a
moderate tariff. involving in many re-
spects the principle of protection. On the
ather hand is the menacing growth OF the
FARMERS or Peoples party recruited from
I'll others and having not only low tariff
eox actual free trade as an ultimate goal.
Those behind the move for n new align
r1ent urge that the fiscal issue is and
SHOULD be the essential dividing line. They
would put on one side in the formation
st definite party. all those favorable to
Ge tariff and to moderate protection, re-
cardless OF what their present or past
Affiliations may have been. The other
party would be comprised OF farmers. low
tariff Liberals, Labor or any sharing like
siews. Already the suggestion is assaiied
p simply substitute for unionism. which
thrived in the war. but appears to be
travelling a rough and uncertain road in
t<ins OF peace
No Change in Morale.
Since Canada lifted the ban on the i'm
Fortation and interprovincial traffic in
iNpuor on New Years there has been no
eppreciabie change In the morale OF the
yopuiace so far as surface conditions in
etcate. Express and other common car
rers report fair sized movement OF In
Foxicants from wet to dry centres but,
svithal, 1t is very temperate. 1t was ex-
eeoted that millions of gallons Of Ameri, !,
can whiskey might be sent TO Canada in.
xile limited period In which American dis
.iliers have 10 dispose Of their stocks, but
slis plan has been thwarted partly by
IN order Of the federal government ban
cling the privilege Of storage in bond.
The liquor can be brought in but, IL So
jhe full customs and excise duties must
- paid and, while good deal is being
imported, the quantities are not as large
IS was expected The ban on bonding is
imposed for only thirty days, and IL ap-
Giles to all countries as well as the
United States, but by the end OF that
period the States will have ceased to
sxport and then the restriction as ap-
Piled to Great Britain Is likely to be
lifted, largely II not wholly.
Habits of sobriety were acquired during
he war. and though since New Years
many have added TO their domestic sup
)lios, there has been no increase in drunk
snness and no indications OF the high car
7ival which some had anticipated. In
place of prohibition there is temperance
rhe federal government has intimated that
It Is through with legislation on the SUBJ
ioct, now that it has given every prov
ince which prohibits the sale the right
20 go bone dry by prohibiting, after
olebiscite, the import and manufacture os
we'll.
Not ono province. however, has made
A move TO avail itself of this act. Even
N Ontario, where an overwhelming vote
was piled up in October in favor of the
retention OF prohibition of the sale of
liquor. the farmers government shows a
disposition to fight shy OF the question.
While the lid is on the sale OF alcoholic
beverages, their import for domestic con-
sumption in dwelling is permitted and,
50 far, without any resultant denioraliza-
ton.
Government to Take Railroad.
Within a few days shareholders of the
Grand Trunk Railway in England will
meet and ratify the agreement whereby the
ownership and operation OF the system In
Canada and the United States will pass
80 the Canadian government. Tho road
Sill become part OF the national system.
lust when tho United States Is returning z
Ns lines TO tho private companies Canada
Is reaching out upon tho somewhat spec
Native undertaking of national ownership
Sn most extensive lines and reducing the
transportation of tho country to two sys-
sems-tbat OF the government and OF the
Canadian Pacific
Within "A month arbitration proceedings
will begin to determine the amount to be
paid for the common stock. on tho pre-
ferrod stock interest will be paid. The diff
dcrent state owned lines will be coordinate
cd and Implications eliminated In many
eases The lines in the United States COM
prise 1900 miles, mainly m Michigan, Illi-
nois and Maine. The enlarged system will
10 under one operating control early in
the spring.
While state ownership appeals 10 the
west the east rs very much divided as to
its practicability. The system is adopted
not so much on it's merits as an alternative
40 government financing 10 wipe out the
repeated financial embarrassment of the
companies that have been acquired.
new hoard of directors will be created TO
manage the roads. There viii be no change
in operating officials In tho American
lney but officers OF the subsidiary COM
panies Of the Grand Trunk there will likely
retire.
The apro,ntrnent this week or Sir will
lam Hearsv. defeated Premier OF Ontario
20 the international Joint Commission is
thought 60 have a bearing upon the COM
sng adjudication by that BOARD Of the
deepening OF The St Lawrence route so a.
10 develop potential millions OF horse
power and make theA Great Lakes accee-
sibie 10 ocean navigation. Ontario Us par
ticularly interested In the power develop
Tneat question.
To the ocean navigation scheme. the
opposition voiced in New York and Buffalo
S. reflected in Montreal and by tho Can
rdan railroads. but It has strong support
in Toronto and other ontario cities and
also In tho west both American and
Canadian The question s about 20 go
TO the tribunal. representatives Of the two
governments having approved the terms
Of reference