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I 
 
 CAHADIAH- RAILEOAD 
 
 n 
 
 VEESUS 
 
 xRailroads of tho United States. 
 
 WHAT SHALL WE DO ABOUT IT? 
 
 BY JOSEPH NIMMO, JR. 
 
^^I^t TIE course '>[ evonls now Iraiispirinpr iiuHcato« the 
 ■'v\-^-' opeuiji^^- of u iKw t'liaj)ttM' in the history of a 
 •^^ hraiioh of ou)' dij)]oniacy wiiicli i>('ar,s the impress 
 of tlie irony of fate, 1 refer to the international inter- 
 course between tlie Ujiited iStates and the ] dominion uf 
 Canada.. The h>eation of oni- nortlieastern boundary 
 line, by .-ni ;d)surd blunder, deprived us of the islands of 
 Canipo T'ello and Grand Manaii: we \ver(i builietl (.iit of 
 ** fifty-four, forty," oji the Paeitie Coast, whieli, if ad- 
 hei'ed to. would baveLfis^en us a; i unbroken sea-eoast line 
 from ]\Texic< » to the Arei ie Ocean ; the locatioi i of our iiorth- 
 "westernboundai'y line, which ;;'ave VaJicou\'er"s Island to 
 Great Britain, nas unfortunate; in the year 185,") weenttn*- 
 ed into a Reciprocity Treaty '\vith Canadji, wdiicli we were 
 glad enou<4'h to lict ''id of at the earliest i)ossibIe moment, 
 for the reason tliat it open-nl to Canada the advaiita.o'cs 
 of our extensive and valuable markets, and in return 
 <rav(^ lis the priviie;4'(M)f " carrying'' coal to Nt'wcastle;"' 
 the tishery questioj? has always been a- ti)rnuMit to us, 
 ;.nd the award decreed, under the ])rovisions of the 22d 
 Article of tlie Treaty of Wasliin^rton as compensation to 
 *t]ie Canadian,- for the unimportant privileges of the in- 
 shore fisheries was {d)surd beytrnd expression. The 
 United States iias all alouL*- maintaiiu'd that the ri^'ht of 
 our fisliermen to ])urchase bait and to trade iu Canadian 
 ports i:- a. conimv)n and im prescribable c(^mmercial riglit 
 under tlie '* ia^^' of nations,'' and subi(."ct to suspension 
 onlv as a war measure; buL Canada deliantlv lays an 
 embargo u})on bait and s'U])])lies of all sorts and declares 
 that they are mere concomitants of the tishino- business. 
 And this a.bsurd assumption, insultuig to the connrion 
 sense of tlie ])eoj)le of the United States, has been main- 
 taijicd so long that it has actually acquired a sort of pre- 
 
script! \o force. It is, pc!*iia])s, furtnuuto for u-, ihnt 
 (Jaii!id;i li;is iievoj' i)usliO(l the clMini asserted in l?8o that 
 her iisUcry ri^lits extend to tiic uuter iiuu'giu uf the 
 banks of Newfouiidland. 
 
 Ill the relations of the two countries to each other 
 touchiii}? t;,.e iiilei'csts of traiispoi'talion, we have also, 
 (irsl and hvst, ^iven miicli and recnved litih'. Tin.'. State 
 of New i'ork, in the vear IS'^O, completed the Erie 
 Canal, from Lake Erie to the Hiulson, and thus placed 
 our Northwest Territory in connnercial t:onnnunication 
 vvitli the Atlantic seaboard. At once (>a)iadii be;.';an the 
 consti'nction of a system of improvements. (^]id)racini4- 
 the Welland and St. Lawrejice canals, costinj^ in the 
 ag'g'ref^'ale ubout fifty million do^llars, for the sole pui'- 
 pose of competin.i^' for tlie same pri/.e; and later on she 
 has constructed a railroad system, which, likt- h.er i^anal 
 system., <lraws its life-blood from American commerce. 
 Durinii' the last fifty years tlie United States luis con- 
 tri])ut<Ml hundr<Hls of millions of dollars toward sustai]i- 
 inja: the transportation lines and the connnercial int(irests 
 of Caiiatla, and m return we liave not drawn one-hun- 
 dredth part as niucli h'oin tlie domestic and foHMj^-n com- 
 merce of the Dominion. Even now, while denying- to 
 our lishei'men the rig-ht to ship the products of tlieir in- 
 dustry throui^h lier territory to their lioTue markets, her 
 railroads are carrying- millions of dollai's' worth of 
 American goods beiween American ports. 
 
 The inferiority of Canada to the United States in point 
 of resources seems to have been largely olt'-si't by tier 
 su])eriority in the art of securing" intej'uational advan- 
 tages. Small Nvonder, is it, that the Dominion has an 
 appetite for treaties 
 
 But the cap-sheaf of diplomatic misadventure was 
 
laid wlu'ii llie ijrivili^v of |)a]'t.iri|)atiiiLi:- ii» our doniostie 
 crniiiiorco WHS u'raiitct! lo \]w railroads of Canada bv tbo 
 Treaty oi' Wasliiiii^toii. witlioiu oven securlii«2; for our 
 own railroads t! 10 niiicli lo.^s valuabN* rt;ci])roeal privi- 
 lo^o of fi'f'o.ly participating* in iho doniesfic commorce of 
 the Dominion of Canada. This sngt^ests the subject of 
 tlie present ^Vl•iting•: 
 
 THE UNITKl) STATES AND CANADIAN TRAN- 
 SIT TRADE. 
 
 T]ie so-called "United States and Canadian Transit 
 Trade" h is an existence separate and apa7't from any of 
 tliose considerations of poli(\y tonclnn'^'' trade, and indus- 
 try, and (Vistom>^ 7*evcnues, whicli ])ertaln to the inter- 
 chaiii^e of }»rodncts between the two countries. The 
 '' Reeiproeity Treaty'" of l!s55 liad no reference to it 
 whatever. The Ti'ansit Ti-ade had its (n'i(;in in 'an emer- 
 gency. It was inaugurated as an ex])edient for subserv^- 
 ins: tho interests of citizens of tlie United Staters. It be- 
 ^an about the 1st of Aj)ril, 1855, upon the completion of 
 the Railroad Sus])ensioii Bridge across the Niagara 
 River, at a ])oint two mih's below "Tlie Falls." The 
 Gi'eat Western Railway of Canada, extending from that 
 point lo a point opposite the city of Detroit, in connec- 
 tion vvltli tlie New York Central Raili'oad at the east and 
 the Miehigan Central Railroad at the west, then formed 
 the only "all i-ail"' route from the Atlantic seal)oa.rd to 
 CViicago. Franklin Pier(^e was then Pi'esident of the 
 United States. The question ai'ose as to whether foreign 
 railroad cai'S could be allowed to do what foreign vessels 
 on navigable waters had been prohibited from doing 
 since the foundation of the Government, viz.: engage in 
 transporting American merchandise from one point in 
 
the UiiitC'l Plat«'S to fiiiollior ]>oijit in Iho Uiiiipcl States. 
 Let it b(' I'onionibored tliat this was a poricKl of unoxani- 
 ])lod fcri'itoi'ial expansion and a.(lventnr(\ Westwai'd 
 the coiu'se or eiripirt^ was taking its way witli inii)etn(Mis 
 tread. At tlie s.une lime a ei-a^' for the extension of 
 raihx)ad facilities Dervaded Ihe entire eonntry. No 
 prineiph^ touchin,i]r the rehitionsof tln^ cotnnion rar)'ior to 
 the ]>ul)lic intei'f'sts. nor p(>Hey j'ooted in hiw, was tlien 
 allowed to present any obstaide to rai Iroad ])i'o;.i'ress, Tlie 
 idea of re,<^uhitin<>- a railroad, or of inter])()sin;4- any oS- 
 .staeie to the will of a I'ailroad co7n})any in tlie ni; ttei' of 
 extendin*4' its lines, or of h)rTnin,ii,' connections \\]{h tlie 
 lines of other coni])anies, had not been broached. If it 
 liavl been, its aulhiir -.voiih! ha\'e been rej^'arded as a 
 crank of the most oM'ensivT character. There was nnth- 
 ing" in our statutory law which, in terms, pi-ohibitpd the 
 pi'oposed t?vilHc, so the authorities at Washington decided 
 that American merchandise jui;>'ht be locked in a car l)v 
 a customs oflicer of the United States at on(^ end of Liiis 
 (.Canadian line aud opened at the otlier ])y miotiicr cus- 
 toms olKcer, without I'equh'in;^' the ijayment of <luties on 
 such ii'oods. A tew vcars later tlie Grand Trunk Hail- 
 road of Canada secured the privilco-o of transporting- 
 merchandise between our Northwestern una New En- 
 <>'land States, and rec^ently the " Canadian Pacific Rail- 
 way " has succeeded in ett'ectinsj: an ai-ran^-ement with, 
 our authorities at ^Vashin;;-toji, wlierel;>y it is enabled to 
 compete for our transcojitinejital trailic. 
 
 And now let us turn to thele<4'al, diplomatic and ad- 
 ministrative develo])nu'in of the ' Transit Ti'ade.'' Tlie 
 Vet of July 28, hSGt), first <^-ave to ihis trade the sanction 
 of statutory enactment. It is as follows ; 
 
 "Im])orted merchandise, in bond or duty paid, and 
 
e 
 
 pi'oducts oj' iniiiHifaoturos of the Uiiitod Stntos, iiui.v, 
 "witli the cousLMil of the i)i'ni>ri' aullioi-iln s of" tlie 
 Briti'li Provinces or Kopublu' of M<^vic(), he iraiis- 
 portecl IVoiu one port ill tlio United Slates to anotlior 
 port therein, ovei* tlu^ teri'itory of such j)rovinee.s oi* 
 repuhli(\ )).y such i-outes and under sncli re^uh'Uions 
 and coiKhtions as tlie Secretai-y of the Tr(\i,sury may 
 prescri})e. and liie merchandise so trans}K>rled slial]^ 
 upon ai'rival in llie United Slates fnmi such i»J'o- 
 vliices or if'phhlic, ])e treated in re«iard to the liahil- 
 ity to, oi' exem])tion from, duty or fax as if the 
 trans])ortatn)n liad taken ])la(;e entirely within the 
 
 limits of tlie Ujuted States. 
 
 ?i 
 
 [ think my memory is not at fault in sayini^ that tlic 
 Act of July 28, ISdO, was passed with s])ecial )'efer<>nce 
 to enahlij;<^' the (ji-rand Ti'unk Railway Company to ac- 
 quire a more secure ri*i'ht lO en<^'a;.ie in the business of 
 trans})orlin^" inei'cliandise between its tlien western ter- 
 mini, on Uie Detroit River, and tlie States of Maine, New 
 Hani])shire and Vermont, 'this iratlic subserved the in- 
 terests of a ])ortion of tln^ New ]']n*j;-lajid Stat(^s, which 
 otherwise had no adefpiat<? facilities for all I'ail commu- 
 nication with the Wrst. Tlu' Act of Julv 2S, )SG(), also 
 lei-'itimalized the ti'atlic across tlte interjecting' peninsula 
 of Ontario, vvhicii lies be« vveen the State of New York 
 and the State of Michif-an. T^ at, also, was a ti'afilc af- 
 fording such manifest adviuitages to the i)eople and the 
 railroads of the United States as to justify the National 
 Government in allowinir its coiitinuance, 
 
 The Act of July 28, IS66, is objectionable in the enor- 
 mous inafjfnitude of the discretionary power which it 
 confers upon the Secretary of the Ti'easury; hut tlie mis- 
 ciiief was phiyed wiien the Higli Joint Cominission as- 
 
s-cjnblod at Washin^loii in ISTl. Tlio nhsin-d oUih Arti 
 cle pi'ovidj'd for the iraiisportniion in pjn-t liy IJci'i-h 
 vessels and in ))ai't by Caiiailian railroads. Ii was \\o\. 
 very imixtrtaiit in tlie iua<:;-nil\jde of tlir^ ])i'ivile2'es 
 ;:;Tantod, hut it \ if)lat»'d fho sanctity of our clierished 
 '' oofistwise trade/' Ilappily, it was annulled by a 
 Resolution of Conj^n-ess, a]>i^roved March :i 1SS,'5. and 
 the PnM'lanmtion of Prc^sident Arthur of January,')), 
 LS80. 
 
 All mir ])rescnt trouble refrai'din.>-th(^ " Ti'ansit Trade" 
 eoiues from the 2l)th Article of tic 1\'eat.> of VVashinir- 
 ton, in connection \\itlt the Act of July 2S, 1S(U), wliieh 
 it sup()lenients. 
 
 The most astouralino- ft>atiire of tlu^ Tre'aty of "Wash- 
 ino'ton is coutained in the last clause of the second ])ara- 
 ^•rajdi of Ai'tich iD. Thisorantsto C;madian raili-oads 
 the ri^ht to convey j:,''oods, Avares and jnerchandisc in 
 transit witlu>ut [(aynieiit of duty from the United States 
 through the said ])ossess)ons to (^thei' jilaces in tin"! 
 United StaK^s, and it constitut(»s a privile^-e ^reatei- in 
 ma.u'nitude tban ail the rest of tbe trt^atvput toj^r'ther, 
 and yet it srands witliout any intimation whatevei* of 
 gTantino- to the railroads of the Utiited States the obvi- 
 ous recii>roca,l privilei^e of transporting- (?;oods from one 
 part of the Doniinion of Canada to another ])art of the 
 Dominion, Tn a Axord. by this article we (rra.ntcd to 
 Canada, the riu'ht to ch]) her ladle into our bio;- dish, with 
 out even exa(;tin;^' from her the ri^-ht to dip our spoon 
 into h(>r little dish. If the American Connnissioners 
 had insisted that our railroad com]>anies shoiihl have 
 llie privilefie of exteiulinpc their lines into Canada and 
 of trans]K)rtinfi' o-oods fi'oni one part of the Donunion to 
 anotlicj' part of the Dominion, notably from Montreal, 
 
8 
 
 tliroiijj]) Voi'Timnt, New ll;iin]).slm'0 and Maiuo, lo }[.'ili- 
 fax, the British iiwihIm rs of tlic.loiiit ili;j;li CJorniMissiim 
 would ill u\\ |)iH)l)al)ility liavo ivt'usrd lo ajrrrc to Ai'- 
 ti(d<' J^ll. Hut the Grand Tiniiilv l^iilAvay alone enjoys 
 at tilt.' jiresent time a far more important |>rivile<»'e tlum 
 this, by means (d' th(i lines wdiich it owns and. contr-ols 
 from CIneaji'o to I'orthuul, with extensive tributary lines 
 in the New En^'land States. And now tin; Canadian 
 Pacilic. wliieh bas l)e<'n ;i|)j)roi)riate'ly ti-rmed ''Tlie Do- 
 mijiioii on Whctds,"' lias pouneed upon our transcoiiti- 
 iieiital tratlie '■ Jiko a wolf on tbo fold." And Canada 
 lia.s no cor I'er; pond in<^ trallie to oiler our i .lilroads in re- 
 turn. 
 
 The deeeival)]eiiess of the diplomatic art is strikin^^-ly 
 illustrated in the consti ucliou of Section 211 of the Treaty 
 of ^Vashin;;•t()n. That a)'ti<'Ie, upon its face, relates to 
 tli(; commerce of the Uuii'.'il Slatts aiul of Canada in'tJi 
 J'oreiyn c<)}iiih-/es, i. e., countries "' beyond the sea," but 
 the ri^^'ht of Canadian railroa<ls to participate ad lib. in 
 our domc^stic commei'ce is secured by these seven vvoi'dsr 
 ''"to oflu I' places in 111*' United St((fcH,'' interjected into 
 tlie last clause of the second paragraph. This is easily 
 explained. By releri'iu.n' to the article it will be seen 
 that the lirst ])arajL!'raph states what is conceded by tlie 
 United Stales to the Dominion of Canada, aiul that the 
 second parayra))!! states what is conceded by the Domin- 
 ion of Canada to the United States. The phi'aseolof.^y 
 em])lo3'ed in the two pai'a-^'rajth.s is the same, the names 
 of the two countries beinn- t)'ans])OS(Hl: but the last clause 
 of the second ])ara<4Taph diU'ers from the C()rr«^sin)n(liii;.;' 
 clause of the iirst para<>'raph by liavinj^ insei'ted mt*.) it 
 the seven words above mentioned, as they are italicized 
 in the follow iiig quotation from the treaty: 
 
9 
 
 "Aiid iiii(l»>r1iko r'Ucs, r<»;Lfnluti(»nsaiul copditioii-?. 
 fToods, WiU'cs oi' iiH'i'cli.'indlso may \a' coir, t_v«'d in 
 t)':uisit, witlioiU jKiyuuMit cf duties from tl)«' Unitt'd 
 l^tato.s. tlir')U<4!i ilic said ])()s.sessi<)iis to of fir r it/((ci>.H 
 in fhi' Unifi<l Slitter, ui' for C'.\]>()it i'i'md jx^rts in 
 the Huiil ])(>ss«'s.sioiis.'" 
 
 IVliK'li iiidi>j;niiii()!> lias rocoutly been c.\])rossf'd ovor 
 the doad and biii'it d SocUoii 3o, but there i;, im re slie-er 
 devihiKMit impaetci! in liiesevou wortlsof Arlirb^ 20, to 
 wliieh I'etereiice lias just been made, liiaii iu Ai'Li(deod, 
 nj.id all tlio hshery articles \n\i to^'etliej-. Manif(\stly the 
 important ))rivile-v of alh)\vin;4' tlie I'aiii-ojuls (»t" cno. 
 country to |)ai*tl(nitat( in tlie domestie commerce oi the 
 other country should have boon ma(U^ liie su!),ject (>j' a 
 sepiU'ate articde. 
 
 Und(U' this Article 20 tho Camuhan rjiih'oad.s ai*e now 
 cnabbnl to cn«;'a;4'e in the domestic commerce of the 
 United Stal(?s witli mucii less constcaiiil of our '•ustom 
 hiws and reyculations than is imposed U])(ii raih'oads of 
 the United !Stat<\s in transport! n<4" dutialde inej'chandise 
 from the sea])oard to interior ])oi'ts of entry. 
 
 The Secretiavy of the Troasui-y, i)resi!mably l>y direc- 
 tion ol| the Pi*esident of the United vStatc^s, has f<;cently 
 bonded a line formed by tlu^ Pacdic Coast Steamsiii]» 
 Com]>any, an American line, and the (Canadian Pacilic 
 Raihvav Company. Tliis has broui^-ht (bnvn u])om the 
 Administration severe ceiisui'e. Txeci-ntlv ^Ir. Kicliard 
 S. 8})otford, a tliorou;^-]! Democrat, has in the Boston 
 Adrertiscr vehemently denounced the Adnnnistration 
 for its action in thif; case, and similar cliarires are bro>ij:;'ht 
 bv a '' life lono' Democi'at*' in the New York Tribune 
 
 of the 10th i)j; 
 
 Tl 
 
 le (|uestions i'ais(Hl am. 
 
 \\armly di^bated ai'e: I<lrst, when Con^'ress annulled 
 
 sonif 
 ann 
 
 w 
 
 hat 
 
^.-MtiJ^Mt 
 
 10 
 
 Portion 80. ^vln^h provldod fo- the transi)ortatiou of 
 .nods iu Brii\.h v..s.]s - from one poh-torrlm^c withm 
 The torritorv of th<^ United States ui-on tlie St. Lam.nico 
 Riv..r tlie'(;.vat hakes and tln^ rivers connectuio; the 
 saino.\o ai.oth.. poK or plae. witlnn tho territory o t .. 
 United ^laK's as aforesaid"' Nvitlumt i)ayment of duty, 
 -n,ovM.'d that apoi-lion ni si.eh transportation is made 
 Mu.>u.-h l]u> Don.ininn of Canada by Uind earria^e and 
 ,,, l.HMd ^^ (hd it tl,e.-l>y eNinvss its disapprobation ol al! 
 nnxedlandan<l water earria^e in the transit tmde, or 
 aid sneb disapim.bation r: lat. only to the tlie Lake aiid 
 n LuNM-iiee River >v-ion, and to .he ease ot t.eei>v- 
 pl ■ vntni^ o\' Kntisb vessels ? S^coml did Uie annul in- 
 !jF X,.ti.-1<^ ;^0 f.u-bul smdi niiyed earriaKe in transit wliere 
 11,; ,.onlo IS forn.-d in part by an An..riea.i line ol. ves- 
 sels ainl ni p.rt by a Canadian railway^ A fnrd ques- 
 tion raised ^s. do<-s the A<r o^ J'dy 2S. ISSG. whiehstaads 
 unrepealed, in V'ovuhnrr M.) (h. transportation of nn r- 
 .haudis. from one ].omt lo another '" ovrr tlu' territory 
 
 oiilieDondninu of <:'anada by sindi ronies J^h 
 
 tbe ^eeretury mav prcseribe." eoiitempl ate a route parity 
 on the Ui-b sea and partly over the Urntory ot the Do- 
 
 it should be observed .iust leav that th<- provisions of 
 both Artivh> 29 of the Tivaty of AVashino-ton and o1 the 
 ■\eterJuiy 28, isr.f), are permissive and enablin^r, and 
 Qot ma.id^torv upon th*. administraliYe bran-di of the 
 Government, "and therefor- that the Seeretary ot the 
 Treasurv could hav refused his ecmsnit to the bondino- 
 of the Canadian PaeiHe route with its American stean^er 
 eonneetion to San Francisco and other American ports 
 
 on I he Pacific Coast. 
 In passin- it may be observed [hat aa authority snch 
 
11 
 
 as tliat conferred hy the Act of July 28, 1806, upoD tlie 
 Secretary of live Trensnry is (>xercised hy that oflicer in a 
 ministerial uay. under the (hroction of the President, in 
 view of tlie fact that as our executi^'e oltices are (»i'<:ji:an- 
 ized, the t^ecrelary of the Treasury has nothin.^; to do 
 witli the niauao-einent of foreign affairs. 
 
 I shii'li not here euter upon the discussion of 
 the question as to tlie limits of the ])owe)' now con- 
 ferred 1)V law upon tlie Administration in the 'mat- 
 ter of hondino; lines, iP })art water and in ])art rail. 
 Wliile concedinii- that the question is a debatahle one, 
 T hesitate- not to say, with reference to the Pacific Coast 
 Steamer and Canadian Pacific Railway line, that I think 
 the equities of the case touching* the interests of the 
 transcontinental railroads of the United States, and con- 
 sideralion> of puhlic policy hereinafter mentioned, would 
 have fully justiJied the Vdniinistration in refusing' its 
 consent lo such an arran^'emeut, I wouklnot, however, 
 alteni])t to d(\ii'i'ade this important subject to the rank of 
 a i)ai'tisan issue. J-*>esides. as the matter may ])ossibly be 
 considered by th^ body of nef;'otiators now ass(ui>bled at 
 Washijio-ton. I fe(>l constrained to extend to the Admin- 
 istration tlie courtesy ex]U'essed in the familiar maxim 
 Hii() Judf'cc lis csl. Soon, also, ConoTcss will undoubt- 
 edly consider this whole subject of om' relations to Can- 
 ada, and this particular feature of the transit trade will 
 ])robably be discussed in all its bearing's. 
 
 Tlu^ ])r(>sent time, however, a]^pears opportttne for 
 the ])id>li(! discussion of this matter U])on its merits, es- 
 pecially as the Canadian Pa(dfic Railway Company has 
 proceeded to exercise its accorded privile,2:e in a some- 
 what autocratic niaion i*. Its manaofcment ap))eai'S to 
 b.ive ij^one into a fv^hi w the lion's share of our trans- 
 
12 
 
 covitirioiital trailic wit h .m air wliicli seems to say, " if I 
 am thwarted in the exercise of my own swe(4. will in 
 this raid upon youi- domestic eonnnerce you will soon 
 find British iron-clads thunderinn: at your unvrotected 
 sea-ports/^ Tlie Canadian Pari tic appears to he j)avtieu- 
 hu'ly ven,i?eful toward the Northern Paciilc, its nearest 
 
 AuHricnn coni])etitor. 
 
 TIh; Canadian Pacific Railway is essentially an arm 
 
 of tlie Dominion Government. Political consideratlims 
 concc^ived it, and political ohjcM'tsliave irashed it to coin- 
 ple;ion. The polilical policy which controls tho inau- 
 ao-ement of the road is exercised in sucii ninnnei as to 
 set at defiance the laws of nature, and th. natural course 
 of the development of comuKM'cial eutei prise hetween 
 the Dominion and the Uiot.,1 States. The Canadian 
 Government has oranfedto ■Ids railroad com])any dived 
 suhsidies in the form of uit'is and loans of its cr.Mhr, to 
 twice the a)nount <]^ranted hv i1h: United States Govern- 
 ment lo all our ''Pacilic roads" eomhined. The debt 
 thus contracted by the I>oiu!nion (roveiaitnent amounts 
 to -i^l 20,000,000. The Canmhan Pacific lias ak-o received 
 from the Canadian Gi)vernMicnt an enorn'oiis land 
 arrant and monopoly pow(a's mu h as wei-e never l)efore 
 accorded to any tra,nsi)ori;dion lisi^' (»!i the face ot tlie 
 'r\oh(\ The main line of ihe road traverses inore titan 
 tlve hundred miles of wilderness noilh of the yreal 
 Lakes, and one thousand mih's of an arid re<i'ion \v( st of 
 the city of Winnipefi", the soil and 'limaLe of which 
 re<^ion forbid the hope of a develo])inent which will pay 
 operating*' ex])enses. \*ul now the Canadian (;*)\ern 
 raent finds it necessai.v to recoup as mucli as pos.silde of 
 its losses from tliis un remunerative political enterprise 
 b\ layin,!^ violent hands uj)on iJie transcontiuental com- 
 merce of the United States. 
 
13 
 
 The troiisooiitineiital railroads of the United States 
 have certain equitabie claims to the protection of the 
 United States Governnieut a^-ainst the attack of this 
 forei(:;"n competitor, which, in its interests and acknowl- 
 ed<i:ed policy, is trie alt^i^r ego of a forei^j-n j^'-overiiment. 
 
 The hrst transcontinental railroads comi)ieted in this 
 country wei-e undertaken aud carried to conj]jletion 
 under g-overinnental patrotiag-e, for political rather than 
 conmiercial }>ur])oses. Both tliose objects iiave, liow- 
 ever, been fully subserved. AM tlie lines completed are 
 constructed and equipped a(;cordinf^ to tlie most advanced 
 methods of raili-oad enterprise. Recently the time of 
 passeng-er trains has been shortened by about thirty 
 hours. Thus two remote sections of the country have 
 been broug-ht uito close conimercial and social relation- 
 slhp. and a vast area wliich for ages had been the dwell- 
 inji" ]^lace'<:)f the savage and tiie range of the buffalo has 
 been subdued to the uses of civihzedman. The through 
 trailic over these lines, at first sup])osed to be the princi- 
 pal source of revenue, is now (hvided among nine com- 
 panie^i, foi-ming live competing lines, and tlie competition 
 between these lines, together with the competition of 
 the route via Panama, and the ocean r<jute around Caj)e 
 Horn has great!}" redticed the rates on through tratfic. 
 The result is that the several companies have been 
 forced to the policy of constructing branch lines in order 
 Lo keej) themselves out of bankruptcy, and in order also 
 to reach the widely scattered sources of develo])ment 
 throughout a vast area, where agriculture is possible 
 only by means of irrigation. 
 
 For the last ten years the Pacific Railroads which 
 received financial aid from the Government have been 
 subjected to tedious and expensive investigation without 
 
14 
 
 r(';i(;hin<^ any ])r.'ictical plan of settleniont, and suck 
 investigation bo^^'ins to look like the stock' iti trade of 
 political exploitation. To allow a foveig-n o()vei'imieiit, 
 llii'ouj-li one of its political a^'encies, at this tlm(> to 
 swoop dowji ui>on these lines with the, voraciousnesss of 
 raih'oatl bankruptcy and the liercenessof political neces- 
 sity, would iioL only b(i cohl ne,<i-lect, but absolute hos- 
 tility to American enter] u'ise which has wrought bene- 
 ficial ly and grajully '"or the development of our iiatioual 
 resources, 
 
 A few days ai^-o our transcontinental railroads were 
 forced to a compromise \vith this free lance of foreign 
 com])etition, upon the l)asis of differentials which alone 
 h;ive prevented a disastrous railroad wai-, during which 
 serious discriminations as between local and through 
 rates would have been unavoidable. 
 
 The great Ir^sson wliich ^ve as\i nation have yet to learn 
 is that oui' rail road system, while the acknowhnlged object 
 of juitional i)ride, hs a vitally important brand) of tlio busi- 
 ness interests of the country, vital to the prosi)erily of 
 <.'onmierce and industry, vital to the distril)Ution ajid 
 circulation, and the well-lxang of labor, vhal to th<> safe 
 cm}>1oynie]it of quick capital, and vital to the general 
 ])t%)sperity of the country. It is tlie obvious duty of the 
 National CTOvernment to see to it that the natui-al course 
 of the development of these interests is not distui'bed {)y 
 foreign interference. 
 
 Tliat the Canadian railroads do by their unreguhited 
 condition present an obstacle to the natural adjustment 
 of rates aiul to the avoidance of those discriminations 
 which have been the cause y>l so much comi)laLnt in this 
 country, is a fact cleai'ly recogiuzed by the Interstate 
 ConnnerceConnnission in declaring that American lines 
 
15 
 
 are just'fied in chafn'ujp^ more for a sliortr-r tlian for a 
 loii«"C^r haul in ord(<i' to meet Caiiandiaii competition, an 
 expedient to wliioli our railroad com])anies seldom have 
 recourse, exee])t under tlie sti-ess of circumstances and 
 conditions beyond their cojitrol. 
 
 The Interstate Connnerce Law of the United States, 
 in imi)ort:tnL ])articu]ai*s, regulates our* railroads in tlje 
 conduct of both domestic and foreif^'u commerce. Mani- 
 festly, therefojc, every Canadian raih'oad wdiich partici- 
 pates ill out' domestic or forei^-n connnerce in the course 
 of the trajisit trade, on^-ht at once, by Act of Con^-ress, 
 to be compelled to submit itself to all tlie re(iuirements 
 of our Interstate Connnerce Law. as a condition, to its 
 continuance in the business. T<> bind our own railroads 
 by law and then aliovv their thi'oats to be cut at leisure 
 by the Canadian 7'ailroads, would be almost us baneful 
 as C^'anadian diplomacy. 
 
 The propriety of the above-mentioned restraint upon 
 the Canadian I'ailroads is evident fnjm the fact that the 
 Interstate Commerce Act mnv prescriljes a^aijist the 
 Canadian raili'oads for tlie comparatively small offence 
 of nei-'-lectina- to publisli rates, the penalty of subjectin*^ 
 all g<x>ds transported "in transit'' to the paymens of 
 customs duties, 
 
 AVhile the Dominion of Canada is al)le to secure so 
 much mor(.' from our policy of letlin^jr imp(nla]it inter- 
 national intej'ests <;'o at loose ends and from diplomacy, 
 than she can possibly secure from a reci])rocity Avhich 
 gives as nnich as it takes, she will undoubtedl,y prefer to 
 maintain the .s/af^rs ^/?{o of her pre.seni political condi- 
 tions to either connnercini or ])o!itical union with the 
 United States, or to independent nationality, especially 
 ah: her colonial condition ijn])oses upon hvv no financial 
 oblifj^-ations to the mother country, \vhile securin<>- to her 
 
16 
 
 the ])i'otot'tioii of En^^laiurs Navy and other advaiitajoes 
 of Britisl) iiifliieHce. 
 
 The answer is made to arp^uinents- such as the fore- 
 S^oiiijr, that tlie raidin«»' of our transcontinental lines by 
 a forciun railroad snbscM'ves the int€'rests of the sliippers 
 of freij^ht. E\en upon this low plane of cousideration 
 it would he easy to sliow that such an ar<>-umeiit is both 
 unpohtic and unjust, for the reason that it is calculated 
 to impair the ability of the subdivided lines to meet their 
 indebtedness to the Government. It is also o])])osed to 
 the national economy. If, however, there be no motive 
 of patriotic sentiment, or interest, or duty, or interna- 
 tional policy which should abrulcre such foreign compe- 
 tition in our domestic carryiufr trade, then let us be con- 
 sistent, and decree that in the intei'est of cheap trans])or- 
 tation at any cost of national honor or of national 
 intei'est, the patriotism which has preserved our coastwise 
 trade to vessels carryinf^* the American flag shall be 
 renounced, and that foreigners shall be permitted to 
 snp])lant this last vestige of the x\merican mei'chaiit 
 marine, as they have already supplanted American ship- 
 ping in the foreign trade, an occupation in which 
 American and foreign vessels compete on equal terms. 
 The Transit Trade has never had that measure of 
 consideration at the hands of Congi-ess which its impor- 
 tance demands, but it is to be hoped that the action of 
 the Administration in opening up the subject of our 
 relations with Canada, may subser\'e the purpose of 
 awakening a just appreciation of the subject, ajid of 
 leading to a po])ular demand that the Congress of the 
 United States shall see to it that the inten >ts of American 
 commerce on the land as on the sea shall receive no 
 detriment. 
 
 Huntington, Long Island, Is. Y., Nov. 25, 1887.