IMAGE EVALUATION TEST TARGET (MT-3) A V] * % ■//// yS O / !.0 I.I 1.25 l^illM IIIII2.5 I4S Photographic Corporation 12.2 2.0 1.8 U IIIIII.6 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 ^^ (5> CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions / Institut canadien de microreproductions historiques Technical and Bibliographic Notes/Notes techniques et bibliographtques The Institute has attempted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. 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To accomphsh this Cam^dianRah' vw^ /'^- investment in the onthn- ui,r>n can 1 a n u,m;^ "'^""^ $yoo,cx33.cx3D, u-hile bilhon '"' ^^^ '""'■^' '"^^''■'^'^^' transporta- ciniremvnN VVe x- vou-lv .' r ''''"^' r''^^>' '" ^'-^^■^'■^^ "^ l^'-^-^^-'nt re- sc.ntre,,ardto U.r,^-oh bifu ^S'n ^''.'"J^.-^'V' -I-^^''tures w.th underl^M\Vr nKni\e hein ;,^^. ^^^^ "' poss.b-hty of cash dividends, the p.-och.je .mci to d^vek;;;^:;; :Su ':Sc''^ '" ^^'^"'-^^^^'^-^ ^^ -"• -- shouya^.^;:;!^^;;^ •:^-J-[i;^>!: -^^;>;^^ •-, -P'-j;-"ts. as the figures enterprises, is simnlv a I'l kin ,. 1 V 'V'^'*''^' "'^ fansportation H'cakisthnk N u^the, ai n^n■'^'''^ ^^^ ^^V'^ '^ stronger than its tolls to the cost o re d 1 'X '"'■';'■' ^^ "l" "^^^"^'^^'^ "'" ^•^'^^^' ■so vast an out■a^• b eak- clou n' U '^Pot uhere the si'stem, built up at of$265.cxDofronVth Vel ,„r5^^ 'f} ^T'"'"^ '•-■cnue $339 ooo received from oi t/l ' canli J^-Z""''"" ^'''■'^' -"^'^ '^^ ^he obstacle whicii stands in the -n-f ■"> '^teni ;-> niaintani the chief results in the iu>pe of uldou /-..,; ""T.''''^'''"^ ''^"^^' niac^nificent pe runiLlioui tiansportation system uas established neve?u 'irr!:; "''n;:!::^^;!,:;.^;;;-- '-- — • l-id and I'Pon pureh' busines n^;. d 'i ' "'^■^" ^'^^ retention of the tolls point Lf ^i^.-:nn^i^^:,:;^^^^^ the san.e narrou- teen feet as a>i l nprc,fitablc cJ h ,>-■ V /rajvrence canals to four- can he expected If t r ^■^1'^'^^''^^"^ from u-hich no direct dividends work, not'." ^nanda v ^n unera^v " ^"' '^- " l'''— '-^ -i^h this fit to the sh.ppin, and iroSuani' • u^ ;:'r';iS.e^" of ^'^^ " '"^^'" valid reasons which slim.l,! i,r,.,m,. ;t ► , "°' """-'' "">''•' -America,, vessels a ,df,,' ■ ''"'""'''' t'"-' ''■■^"■ictions as^ainst canal tolls i./orde, to a " S e ;-,:';i:';,'i-r'Thc°' ''''''""' ''"'^^'^ '->"' nei,d^o:"Ii;";;;;;;;^:,™;^-nt.^;';d't' ^ 'T"\ ^'•™" "'^■■■- -'«--^f"i If, notwith..;?ancli4 I ec-reatn' .1 Kvnnt "■''''';■""" "^ '^""''' "-"ffi^- 't . ch,eA, Because o.::"-;!;!; ^l^ll,^;^^ ^^J:':^^^ icvv is that ut of our "a! channel lie lari^er . to find a phsh this -■stnient in >OD, while 1 early one ransj)orta- M'escnt rc- ires With -Muls, the I our own - fisj^ures l)ortation 1' than its of canal uilt up at revenue of the lie chief j^niificent iblishcd. paid and the tolls narrow- to four- i\idei"ds nth this a bcne- 1 more ai^ainst ed from enry in I accrue for the :cessfiil traffic. L^hwa)', of the- hereof, ise and i 8 lil)erality in offering inducements to shippers. If we have spent much money in canals, they have spent more. The New York canals have cost the people of that state over $ioo,goo,ooo, all raised by direct taxation, not for their own local traffic but to attract the carria<^eof western [)roducc. The lu-ie canal is free of tolls alike to Canadian and American producers. There may have been times when an anti- Canadian feclin<,^ was, in some .sections, prevalent acro.ss the b()rdor, but it never wa.xetl stroni,' enough to blmd the far si<,dited commercial classes to their owr. interests as far as transportation matters were concerned, nor to lead them to overlook the important fact that to bring the ijjreat l^roductivc areas of our North West tributary to the volume of Airierican traff'c, thus building up American seaports and employing American labor,' was more profitable than the exaction of fractional dividends on a great public work or the maintenance of petty and irritating national di.scriminations. We have no right to expect to reclaim the traffic they have captured unless we are prepared to offer those eciual and even superior advantages which now for many years Canada has been in a l)Osition to offer. By thus .securing for their inland navigation system an immense outflow of traffic in food products from the west to the port of New \'ork, Manitoba being in this respect a large contributor, the people of that state have steadily built up and enlarged their export and import trade. The law of suppl>- and dem.and governs in the matter of shipping accommodation just as in any other department of commerce. The de- mand for ocean transportation at New York, Boston and other Atlantic cities creates the supply. As centres of the cxjiort trade these cities attracted shipping, and competition soon improved facilities and lower- ed freights. The reason wh)- Montreal cannot, under existing conditious,^ compete with them, notwithstanding a slight advantage in point of distance, is that the channel through which the great volume of produce for export reaches the seaboard does not flow in her direction. It must first be diverted to its natural course along the St. Lawrence route before Montreal can be established on a permanent basis as the rival shipping centre of the American ports. It has been argued that the export traffic seeks New X'ork rather than Montreal because rates arc lower and facilities better at the fornier port. The converse statement is equally true that rates are lower and facilities better at New York be- cause the traffic to be accommodated is so much greater. With the deepening of the St. Lawrence canals to fourteen feet, with modern lock improvements applied and the removal of national discrimination and tolls, grain will be carried from the Upper Lakes to Montreal at a cost of about 2 cts. less per bushel than the average freight to New York via the Erie Canal. With this advantage, coupled with the shorter and, with prospective improvements, safer ocean route to I Liverpool, the port of Motnreal would soon attract an Incrcasincr „,-() portion of the exijort },r,-ai,i trade, l^ut to establish the conimercc of Montreal upon a satisfactory and permanent basis it will be necessary to secure a.i absolutely safe channel with proper light-houses and buoN-s nllf'T''.'''; h"'^'^ ''^''V"'"^- ^^'^''^^ tlicse hitrhly needful improve- ments effected and the port charges assumed by the Government the prmcipal obsucles which deter Western .shippers from availing them- selves of the bt^ Lawrence route would disappear. With the augmented intiuxofgram for shipment, competition amongst steamship Hnes and transient vessels which become available at all seaports when obtain iblc cargoes are sure, would soon, without any injustice to existing lines bnng down the rates to those of American ports. ..r .K^"^"''f '' -^^^'^"iship companies, as soon as they realized that the trade of the port was on a .sub.stant.al footing, would promptly fit out a class of vessels specially adapted to the service and of cap icity s, 4cl ml equipment fully up to the poss bilities of the route. ' ' The likelihood of vessels from the Upper Lakes securing return cargoes IS a con.s.derable factor in cheapening the freights of weste produce. The present Welland canal toll of 2S cts. per^'n o c fl 'r' vents this return traffic. Owing to this heavy impost co: 1 w c W J , d otherwi.se be sent by rail to Oswego and Charlotte and be shippec Ifr those points by ve.s.sel to the Upper Lakes is now haule T rea e distance from the mine by rail to Buffalo, this being don - in mm els for the purpose of avoiding the Welland canal. VVith the tol emoved many of these coal shipments would seek the nearest port and tlfe m : Sior' ' ''^'"" '"'"•'" ^'''^^''' practically as remunerative as if^/roin One great advantage of the Canadian route would be the ^ ---'•- Just in proportion to the volume of grain traffic findin- an all witc-r route to the At antic will belated cargoes^ which detaine Vy elw h^ moving or held for a rise hi price or Stored at convenien pointsl^^d ribution for winter .shipment, have to be transferred o't^he raHwa " for carriage to the open .seaports. ujinciaiiua>.- We have, therefore, to consider not merely the conditions which will attract the early shipper who can be .sure of an uni/Ccde 1 wa e route, but wo must have regard also to the preferences of the forwarder I ■asiiif; pro nmcrcc of * necessary and buoys 1 1 improvc- ninicnt the iliiii;- thcni- iuj,nnentcd lines and obtainihle ^w^ lines, : the trade ut a class speed and ip return in western f coal pre- ich would 'ped from a L^reater any cases reino\-cd, the i^rain- as if from ■ Lij'rcater :ii can be jston md 'Uccessfu! pro\ision Jincnt at rward to :cuniiilat- all water delay in Its of dis- railwa^-s ns which ed water )rwarder ft who m ikes his shipnunts when the fall season is well advanced, and who has to bear in niinii the ciiance or the certainty of dependence on rail- w.iNs for the latter sta.i,^c of the inlaiul trij), as wl'II as ui)on ihe storage facilities at distri'^)Utive points. Here, a.L;ain, with canal tolls and lis- criminations abio^atetl. we should be able to offc* sui?erior inducements because elevators and stor.i^'e warehouses wouhl be (|iiickly providcvi at l\int;>.tn;i I'n'scott, points, at which there is every ficilit)- f )r their erection and maintenance at rates much lower tlian those current in iiuffalo. l'"veii L;reater acconunodations would :.'.lso, and more spcedil\-, need to be proxided at Montreal, where the advantai^e o\er Muffilo in point of ample and comparativel)' lo.v'-priced frontai^c ava.lablc for the locitioii of eiewitors, warehouses and all needful sLoraj^c and tranship])ini;' aj)pliances, and for railwa\' connections tlicreto, would soon be profita- bly manifestetl, inasmuch 1 and the desir.ibilit)- of often breaking cargoes into smillei i lonts arc considered, will pr()\e more ])rofitable than for the . I to pro- ceed to Montreal without breaking bulk. This transu.^ will pro- babl\' be done at a cent per buslicl, i.icludingcost of towing t(j Montreal. The iiU'cstment and risk in the use of transfer barges would be greatlv below that involved b\' continuing the lake craft to Montreal. It will not be Icjiig before the need of an enlargement of the W'elland canal to carr\- the largest vessel that enters the port of Buffalo will be ai)parent, when the profitableness of the present system of tr.msfer barges will be even more manifest, These transfer barges and tugs so used may perhaps be ad\-antageousl\- confined to Canadian construction, there- by affording emplo\-ment to Canadian labor and a large oj)cning for Canatlian iron, timber and other products. Compared with both \ew ^'ork a :d Buffalo the jjort of Montreal stands in an excellent position in this respect; in the former port the expenses of car lighterage are vcr\' considerable, and at both New Vork and Buffalo the great railwaws largel)' control the terminal facilities thus miteriall}' lessening tlie intlaence upon freight rates which the Erie can;il wo'jld othi:r\vise exert. Such a serious drawback to cheaper trans[)or- tation would .scared)' appear jJos^ibL at the St. Lawrence i)oints of transhipment when the extent of ,-;uital)le river frontage is considered. '1 his view has [)erliaps not l)een sufficien.tl}- taken into account bj- tlio.se who are disposetl to regaid this as, in .some measure, a cpiestion of 'railways versus canals ' These two branches of our tran.sportation .sN'stcm, largelx' on account of clim;itic reasons, are not, in my opinion, I aiita^^onistic hut niter illtc^•-licl)c.u^fM.^ ■ .•„ r . «s more important th.u, the t^ m, -iV '""^n ';" ''^^''"^^ "'^ '^'^ •^'^''^^tiou ontlcts for the traffic annual v'e^d-u nlenn V ^'"' "'''^^''' ''^^''^^ '- "Ppn.aehof.vinterorotheruise "»tcrniecl-a.e p„nits by the 1 he pi'ifcctiou af tUi' f'Tii-ii ..•,,.»■ a.ni>lc an/l rcasonablv fou-^ :ccr':^!te'^u; %''"r^ "^"^'^^-'- '>>• ments. nill. every yeiu-. provide a la'e 7nru v l^'j-^'^'IV^^^''^ ^rra.i^e from kui.Tston. Prescott or AI.>ntrearto 'uH^^^ ^^J^^f^t to ,e hat.Ied Ihisousinessourraiiu^ns cvcei)t t - . "'''''*"'; '^.t- J'>li'i or I'ortland. '"^^ nou' obtain and can^^- I vT,p "^'"l^'l''^'-'^^'^'^' >' ''■•"'>ocl extent, do canal tolls and the other in prve^^^^^^^^^ unless the abolition of offer s-ifficient inducement o Wc -c^- : u •^> •^^^''» ''''-c^dy indicated Canadian route to the seaboard\o ih \vT% '" r'^''. ''^'^'" '^••^'^'- ^'^^^ i here is but little comi,r.M>,V.;i . " ^''^' ^''■'^' ^ 'i^''' ^'^ Ncu' VorL- the Anierican u^^:^'^^,^^^;^;'«^ through lines of raihvav ami oncthird theavcraffe CO t of ,""''":'' '^^"' -'"^^'^ '^^''P'^'^ "'^t about reason. Thc.v should,' i crrforc '< ?li ' ."'f^'^'-' '" ''"'■'"'-' "'<= '™^<^^ nicMsurc „ hicl. alms „ ,c ,!?,,.. ' '''"'"f «' "' ic-ar ,„. ■,, toba for export and , ver T i^re P.';'' ''"''•■ '"^ ""■' «'■"" '"'•""> ^'^'-i" mens from the America ;;,,c>''t &TT'" " . ',l»-' K™" ^'"P stora.yeai thorl(,seof«-at,.r n,^- V -:i»roiice hi,!,'hway, and if^ take it up .ordJlivxry d ,r n' ?h 'S d"",.?' ':?""-^ "r''='" "'^' ■•••'■'>-'>. can ap|>ear.s to me very nccc' s A- n \ "" ■^" '^■"^'"' "'^' "•'";i- 'outc' their friendly co-o ,cr ^:: ' ,l'",^ i"!", ll^'^'^,^- '" "-: '-'ua, ... and lie accumulated for snch uinte, carriUe. 'I'lnUHy which max- hvmir u.creased i,nsi„es.s to h ruhv ' T '" ^■'";idw" J-orts, nou7.1 ■mporfations. W-^scU in th^ ,„ ' '' ^^' ""R'nentui^r the vohuiie of for return frei^dUs" f^r |k\ es,^ u'd 'i !!•'>""« "•••"V,'" ^''""^l'- «-ould oo considerabls- h, order t<>obAi,'" ""','„","''' ^''^^'>'<' '" Inud- rat,-s amount ol ,oods in,port d f" ' | " ^^^, «f ^?,"-Pc.r freights the largely increase and the Canad an r , throufjil Canada would ■stimulus thus unparted to t ■ na li ,' ''^' '"'" "■""'^' '"^"'•fi' V 'i'e country an increasinc. nu .fitv n? 1 l '•;°"""'-''ce and brinfX> " Poitl.uul to Liverpool.... -•<"•" •• Halilax to I.iv,.ipo,,l ", -•'i^'* " Alontmal to Halifax, rail....". -'^l-^ - Montreal to St. .John rail "'" " Montreal to Boston, rail ' '•"<' "• Montreal to Portland laii •^'^•"> " Buffalo to New ^'ork.,,. ^'" •" ();?Jenshnrg to Boston, rail ^t'"' " OgdenshurK to Portland, rail ^^^"^ - Ogdenshurg to New ^'ork. rail '"'' " Oswego to Xcw York, rail .'.'.".'.*.' I^'" " and SlS."i"r:i. ';;/a™r?„" ;i;''' "«t-b„„ . „.eil ;. t'thc c.„„l produci„gltatcs o " ,?e «"„ch ^^i^T i^'f ''"'T'''^ '"' ''"-' ""'-■"t HHtional restriction an,l t 'is IVom t],p u' II Vc" ' ''' '■'■''""^■^'' "''■'" should .ecu. to t„e si.,, ^f'lz '":2:!!:]:1^^'^,^^:---:^:^' possess and eujoi- tlie nrefeicncr ov, ,■' '• iT ""■■;'■ actions ;uul at . i-^n-ence tl,e ^.-eat "fo'^'d ^^.l'^^^ f?.:,^; N.'.'rth'Aln^nr' ""''■''^- ""■ e obstructions ;uul at once St. o.ablc as those ctMTcnt via Bu/Talo and the Erie ca.ial to Montreal as fav Neu'\ork.theo-,-eat want of a Canadian to Kini^-ston and winter seaport, with all t]ie ^'SW^^ss^^tf^'-s^vi^^ss^^i^aats.^siMfetmssiteKfti in.") " :i:,\) - :i;A) •• IDS •' 121 " H.liSO •• 2,.S(M) •• 2..S(M) •' 2.(i()() •• 2.7S.-, •. 2.:il2 «• Tod •• (SI •• :«.-) •' 2!)7 •• Mo •• im •• nil) " M72 '• .-{21 - > to the canal ^ of the .i,n-cat einova! of all retice canals, tricted coast eacKaiitas^'cs elicf that the ■>ii its waters oorO^rciciis- lin would be Aport would to Montreal. nj4- the cold estern ,L;-rain )swei;-o and ot' the L^reat hie to every uid at once ''1^4' the St. iii^-ston and ■ie canal to \ith all the facilities for stora^^c and transhipment requisite for the accommodation of a lar<^c volume of trade, and the railway connections necessary to ensure the ready movement of freit^ht, has been equally great. The advantai^^es, already ai)parent from developing the natural capacities of St John, N. B.. asonc of the main eastern termini of our railway .system, arc already m^ikin.^ it an important winter port and the centre of an expanding ocean service. Great advances ha\e been made in this direction of late. Mr. Hugh Allan says on this subject : -" The port of St. Joiin is not what it was a " year a<>o. The dock space has been increased, an elevator built, and " every facility given for steamship lines. A short time ago there was "not a steamship line there — now there are four or five. With the "excellent accommodation the C. P. R, is giving, with sidings and " terminal facilities for the freight to lie on, St. John will soon be an " important terminus. To St. John is a long haul but the C. P. H. has " made excellent arrangements for handling freight. There is little " local freight with the exce[)tion of deals ; St. John, however, will make " a good wmter port." He might have added that St. John is but 26 miles more distant from the p;i-ain storage elevators at Montreal than New York is from those of Buffalo. The latter point is at the foot of lake navigation for the lirie Canal route, while Montreal with its deepened canals will occupy practically the same position as regards the St, Lawrence system of inland navigation. It is safe to calculate, with the contemplated enlargement of the canals completed and the tolls removed, grain from the West will be delivered at Montreal at very little if any more than one cent per bushel in excess of the rate to Buffalo, and, as before said, ie canal to New York. To supplement and complete the policy which is bringing St. John to the front as a winter port by this abolition of canal tolls and removal of restrictions against American vessels from the Great Lakes will ensure the amount of traffic for shipment which is the only sure and firm foundation upon which an Ocean port can be built up. Steamship lines can be subsidized, mail contracts may be held out as inducements to a legular service and other artificial methods may be adopted to encourage business : these may serve a temporary purpose, but unless there is a sufficient volume of freight seeking ship- ment .so as to make the traffic of itself intrinsically and permanently l)rofitable, it will be impossible to obtain the low rates enjoyed to and from tho.se American seaports which, through the efforts put forth along with certain climatic advantages, arc attracting largely the products of the great West. The attempt to obtain ocean freight rates as favorable as those enjoyed by our neighbors, or a speed of passenger steamers approximat- "•■-p JJ. 10 '••1 one o-re-.f ,rof. 1 ■ , ''^'"'-^ ""^'^ ^'V '> vcr anno, in'i^t^,?/^' " " °"'^ ^-'^f--nV"H.:;;o.,e^:f 't'h-VroX .1 ,!„„, .. .,- . ,r'""-s and u-Iiat un„l,l i„. '^^^ "^ " "'^11 arc |)rop„,sc,l ^lr}^lf^ ^^''^^'^rou^.^^Z'" ''--^ '^-t Unc without L' -successful, t'l proposcfi 'ic means of '■oportion of ic West. ^teni States exj)resscd ■ sliipnicnts It route bv c ChicajT;o -t ill width t the nrj-eat tioii to be lie import , it cannot 3r the vast iway. ^ of traffic Canadian m bond " to many, i^y the ;ii*oposed ■icveIo]jc of these I'crs and rs, who nie tliat iCMltS to ■let ami ntry at without of New ^Up])lc- - enter- matino; 'itiiout -spond npara- k^ til at '^ will 11 11 quickly follow from the increased volume of freight resulting from the abrogation of our canal restrictions and tolls ; at the same time Cana- dian farmers and ex[)ortcrs will enjoy freight rates via the St. I.awrence to correspond with those enjoyed by the farmers and exporters of the Cnited States who have the use of the Erie Canal without toll or tax, and of the great ocean "greyhounds" without bonus or bounty. I suggest a careful consideration of the fact that a yearly bonus of $500,000 to $750,000 to a fast line will pay the interest on from $17,000,000 to $25,000,000, the total estimated cost of the Montreal, Ottawa and Georgian Bay Canal, which constructed woiild bring Montreal 435 miles nearer Chicago than the port of New York, besides wliich the main* ad\-antagcs that would result to Canada from the opening up of tliis additional water highway, such as the many great w ater powers, the vast deposits of minerals and forests of timber, would be of itself of far greater value to the country than any extra ^[)eed of ships ])urchasablo at so large an annual expenditure. This cpiestion of transi)ortation vitally interests the great producing class, to whom cheap rates mean an increased return on every com- modity they grow or manufacture for exportation and a direct saving on all imported articles they consume. How great the economy in freight rates would be, supposing that a sufficient amount of exports were .shipped from Montreal or St. John to induce the competition that has lowered the rates from American ports, may be gathered from so.ne statistics given by Mr Edward Farrer, in an article which appeared in the CANADIAN MAGAZINE of September, 1.S98. I le gives the average freight rates on two imported articles of Canadian production for 1897, from the ports of Boston and Montreal, resj)ectively, as folknvs : — C'lu'csc from Moiitical to Liverpool 21s !)(! or $5 I.S per ton •* Boston " " i:^s :^(l " •]•.]{) >« >■ liuttcr " .Montreal " •• 2().s Ud '• (J.OS " '• '• Boston •• •• Us (id '• :i.;i~ •' " Of Cheese there was shipped from Montreal during the year ending June 30th, 1898, 98,350 tons which paid $2.13 per ton more than it would have cost by way of Boston, or a total of $209,485. Of butter, there was shipped from Montreal, during the same }'ear, 5,627 tons, which i)aid $3.31 per ton more than die Boston rate being a total of $18,625 so that Canadian producers have on this ([uantity of cheese and butter alone paid in this one year no less than $228,110 more in ocean freight than the producers of the United States paid, or would have paid, on a similar quantity, and an average rail freight to the seaboard quite as high as the rates paid by American producers. The excess of ocean freight on these two staples alone is about Zi of the amount re- ceived in tolls on the Welland and St. Lawrence canals, which, for the year 1896 amounted to $264,573. 12 A careful calculation of Canadian exports of farm P'-o^^Jl^^^^^^^^o ^rcat Britain (not includin^r those to the United States) dur.n- the ea. el nff June 30th, 1897, as shewn by the 1897 Canadian Y^^^^^ '^'^d reduced to tons, giCes an agL,n-egate of not lccr cent on the total value of all Canadiai: agricultural products exported to Cxrcat Britain during that fiscal year. In addition to the above there arc yearl\- exported to Great Britain produce of the forest, of the mine, of the fisheries and of manufactures which in value, during the fiscal year ending June 30th, 1897, exccedec those of the soil by over $10,000,000. The excess of ocean freight paid on these exports oVer what the current rate averaged from Boston, amounted undoubtedly to a very large additional sum, probably as much as that upon farm products calculated upon Mr. I'arrers basis ot com- parison. It IS obvious at least that ten times the amount of revenue repre- sented by the Welland and St. Lawrence canal tolls and the harbor dues of Montreal would be directly saved to Canadian prodi.cer.s in reduced freicrhts by their removal, but the whole extent of the benefits secured to the agricultural interests and the public at large cannot be measured by the volume of produce exported. It is a truism of commerce that the price of wheat the world over is fixed not in the country of production, but in the world's markets, and. I may safelv add, largely in the British market. The producer receives the price, as regulated by the world's requirements, less the cost ot shii)- ment and the profits of the intermediary, which are settled by com- petition Any saving in transportation benefits the farmer by increasing the portion of the price which he receives, not mcrel>- on such grain as is purchased for exportation, but on the whole product. A saving, there- fore even of a comparatively insignificant amount on the freight, raises the price at the farms of the entire wheat crop. And, just in proportion as the demand for all cereals and other products such as cattle, beef, pork, cheese butter, in fact, of every commodity of which we produce a surplus, increases in England, will the prices paid to the farmer have a tendencj- to rc-ulatc themselves by market values abroad, a.ul to increase with cveiT saviivr effected in the cost of transportation. If our arnun^ conr munftv but^xalizedthesic^mificanceofthis ^^ and th. effect of SficUt rates i,) stiffening and increasing prices of every exportable nroduc independent of depressing local conditions, there would be such ^ iman m^^^^^^^^ outspoken demand for free cana s and even greater imirvrents to our Ivaterways as means to this end, as no government could afford to ignore. The problem has hitherto been dealt with in view merely of exist- in- or readily attainable conditions, putting aside future po' the serious formation of ice therein, can certainly be kept navigable later in the season than the 350 miles of Erie canal with its comparatively limited supi)ly of water. If, as is alleged by many vrell versed in the matter, Canadian tonnage is quite inadequate to move the })roducts of Manitoba from Fort William and Duluth to Kingston— Prescott during the season of water navigation, justice to Manitoba would warrant the use of Ameri- can tonnage for through exportation via the St. Lawrence. It would not be unreasonable to expect that, with free canals, American bottoms will transport Manitoba's cereals to Ogdensburg for transhipment to Montreal, if it be thought best not to open Canadian coasting privileges to ' American tonnage even for export grain via the St. Lawrence route The vast interests in the United States, comprising the great cities and seaports of .the Atlantic and of the Gulf of Mexico, the interests centering about Buffalo, the Eric Canal and the Mi.ssissipi)i route and the great x^merican Trunk lines of railways may all continue opposed to any exchange with Canada that would improve and make free the St. Lavvrcnce route at the expense of any of the traffic eiijo\-ed b\' these great highwa\'>.' We need not delay in expectation of any profitable exchange of this character with our neighbors. Our own Canadian interests are paramount an'd demand quick, prompt and thorough action. In conclusion, I repeat that by the early adoi)tion of the ])olicy out- lined, we, by means of lessened freight rates, bring additional prosperity to j)roduccrs aiKLconsumers alike : We secure the Fast Line without the payment of a bount>-, for we ensure a volume of traffic to our great steamship lines which will encourage to far greater enterprises than those which they ha\c alrcad)' accomplished. We settle, forever, that troublesome question of ''transit in bond." IK Ik By utili/inj^ nature's hiL^hway— the St. Lawrence— we attract a traffic productive of progress and prosperity to our own people. We afford increased employment to our mechanics and laborers, and a use for Canadian and British capital in advances upon the products stored or in transit from the Western States to Europe. We provide our farmers and manufacturers with additional markets in Canada for the fruits of the soil, mine, forest ard stj-eam, and greater industrial development by their conversion m great shipbuildnig yards, iron working establishments and other mechanical p ants, mto upper lake crafts, \-iver barges, tugs, elevators, dwelling houses and othcr crections which al\va\'s accomp^my an active and growing trathc. We contribute to the prosi)erity of our railways, and make great distributive centres and seaports of Kingston, Montreal. Halifax and St. lohn ■ we influence to a commercial activity throughout our Dominion that comes naturally from increased i)rofits to those great interests which produce, manufacture and transport at the minimum. Free canals arc simply a detail, though a most important one, in the fTcncral and comi)rehensivc course which the administration appears to have entered upon, in view of drawing closer the bonds of imperial unity buildin<^ up Britisli institutions on this continent, and developing our commerce and industries on such lines as will strengthen the Empire, by perpetuating the union of interests between Canada and the mother country. , To secure this and the other means indicated, a great permanent food supply route through (.'anadian territory, by which the gram and oth.n- "i-eat .staples <^f the west, on which increa.smg mu titude.s of Britain's population depend for subsistence, may be cheaply and expeditiously forwarded at all seasons to the British market and with- out haxing to pass over foreign soil, is a fitting and worthy corollary to the "preferential tariff' and the policy of bringing us mto closer touch with Imperial commerce and Imperial sentiment. The "Open door" of a free St. Lawrence -Canada in no manner surrendering her ownership or control of the canals-wiU also be a worthy contribution to the farmers and manufacturers of the great tood producing areas of the United States and Canada, by far the largest proi)ortion of which is tributary to this great highway. It will create an additional bond of friendship with our kinsmen to the south ot us, and its adoption will be an honorable tribute on our part to the com- mercial wisdom of Great Britain, which, in her "Open door policy com- mands the highest respect of every progressive people. The crov-rnment which is broad-minded, patriotic, and farsighted enough t? carry it into effect, will certainly merit and receive the same Very respcctfull)', E. W. RAT! I HUN. has lilcc liich atcr I