^^'^^ VICTORIA UWVERS/rr \^S -LIBRARY '^ A CANADIAN SCHEME OF AGORESSION UPON AMERICAN COMMERCE, AND HOW IT SHOULD BE TREATED. BY JOSEPH MMMO, Jr. lA{ May, 1889 WASHINGTON, D. C. Gibson Bros., Prinikrs and Bookbin^E'^s 18S9. INTRODUCTORY REMARKS. The chief object had in view in the preparation of this article has been to present the constantly growing and now clearly developed necessity for a thorough rectifica- tion of our commercial relations with Canada, if not, in- deed, for a radical change of policy regarding our Canadian relationships generally. The almost absolute freedom of restraint which marked the beginning of the " transit trade " has been found to be in important particulars incompatible with a pioper ad- ministration of our Interstate Commerce Act. The rail- road political policy maintained by Canada during the last twenty years has shut railroad extension by American companies out of the Dominion, while Canadian companies have been enabled under the provisions of general rail- road laws of our border States and by persistent entreaty at the doors of State legislative halls to gain every year some new favor. By dint of almost unremit^^ed begging, the Treasury Department has also been coaxed into the granting of favors to Canadian railroads, until dutiable goods may be transported through Canada with even less restraint of our customs regulations than is imposed upon American railroads. The whole situation of afi'airs lacks those essential elements of reciprocity, which should always cliaracterize international arrangements, both of treaty and of comity. The Treaty of Washington, by a blunder or a fraud, gives to Canadian railroad companies the right to trans- port goods from one point in the United States, tli rough Canadian territory, to another point in the United States, without payment of duty, but omits to give to American railroad companies the reciprocal right of transporting goods from one point in Canada, through the United States, to another point in Canada, without payment of duty. For several years past the Dominion government has granted a rebate of 18 cents a ton on grain passing through the Wolland Canal in favor of export via Montreal, al- though the practice is held in this country to be clearly in violation of Art. XXYII of the Treaty of AVashington. Although Canadians are constantly shipping merchandise across the territory of the United States, even to the value of $40,000,000 a year, free of duty, the Dominion govern- ment still refuses to allow American fishermen to ship pro- ducts of the sea fisheries across Canadian territory free of duty. But the most vexatious and injurious disturbance of the natural interaction of commercial forces has arisen from the eonstriiction of the Canadian Pacific Railway, by means of a governmental subsidy of over two hundred million dollars, in connection with heavily subsidized steamer lines across the Atlantic and the Pacific, which steamers receive additional British Admiralty subsidies in consideration of the fact that they are so constructed as to be available as armed cruisers. These warlike features of a political scheme for turning trade out of the natural channels are accentuated by a formidable British military establishment on the Pacific coast. The uncertainties which characterize our Canadian re- lationships and the audacious and persistent course of the Dominion government in taking advantage of such uncei-tainties and of using the full force of its political power in the direction of diverting American commerce has led the United States Senate to assign to two of its committees, within the limits of their respective spheres, the duty of investigating and reporting upon our Cana- dian relationships. The awakened sense of our people in regard to this matter has also thrown a weight of re- sponsibility upon the present administration of the Gov- ernment. i'> ) The nation is now confronted bj conditions at the North which far outweigh any possible American interests which may be involved in the internecine struggles of unenlight- ened and barbarous people upon isles of the sea with which our commercial and political relationships are of compara- tively insignificant value. Any line of policy which fails to guard the commercial and political interests of the United States against Cana- dian encroachment or which does not fully and fittingly respond to every act of aggression on the part of the Dominion government will be lacking in prescience and in courage. A CANADIAN SCHEME OF AGGBESSION. A most audacious proposition has within a few days been made by the Canadian Pacific Railway officials. The managers of that line, built for political purposes inimical to the United States, and with the object of diverting American commerce from American steamer lines, American seaports, and American railroads, have come up here and asked that the Secretary of the Treas- ury shall so exei^cise his discretion in the conduct of the *' transit trade " as to place their road upon terms of per- fect equality with American lines, or, in other words, en- able it to establish connections for tapping American transportation lines and diverting commerce from Ameri- can cities. It is proposed, in this connection, briefly to consider the true character of this new and glaring in- stance of Canadian presumptuousness. The (Canadian Pacific Railway is a political and military enterprise, conceived and carried to execution for the pur- pose of accomplishing the following objects : ' ' \ First. Politically to unite the four disconnected blocks of inhabited territory comprising the Dominion of Canada. Second. To cause these foiir sections of the Dominion to trade among themselves instead -of trading with the United States. Third. To suppress the growth in Canada of a sentiment favorable to annexation to the United States. Fourth. To divert as much as possible of the internal and foreign commerce of the United States from American transportation lines and American cities. Fifth. To serve as a line of military communication be- tween the different parts of the Dominion. 7 Sixth. To promote the scheme of British Imperial Con- federation, to which the leaders of the Dominion Government are devoted. These several objects were fully discussed throughout the Dominion when the proposition to construct the road was under consideration, and an appreciation of their po- litical importance led to the accomplishment of the enter- prise. Sir John A. Macdonald, the Premier of Canada, aijd chief promoter of the Canadian Pacific Railway, declared a year ago to the editor of the Pall Mall Gazette that his chief aim was to establish a strong government on this conti- nent, hased upon monarchial principles^ and, at the same time, he expressed his ardent espousal of the cause of British Imperial Confederation — the Canadian Pacific Railway being the chief instrumentality for the accom- plishment of both those objects. In order to carry out its gigantic political and military scheme, inimical to the interests of the United States, the Canadian government has incurred expenditures whereby its debt has been increased from $96,896,666, in 1868, to $284,513,842 in 1888. In a word, the Dominion govern- ment, for the accomplishment of this object, has imposed upon the people of Canada, with their consent, a burden of debt proportionally as great as that assumed by the loyal people of the United States in order to preserve our Union. The political character of the Canadian Pacific Railway is indicated by the fact that it has received from the Do- minion government the following subsidies : Cash and concessions which became available as cash $105,000,000 Bonds and stock guaranteed by the Dominion government 110,000,000 Total subsidy $215,000,000 President Van Home of the C«anadian Pacific Railway WHS compelled to own up to this entire subsidy before the Interstate Commerce Committee of the United States Senate at its last session in New York. Recently there has appeared a statement, which I have not yet been able to verify, that during its late session the Dominion parliament appropriated $53,0U0,000 for rail- wav subsidies. The total cost of the Canadian Pacific Railway, with its equipment, plant,