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Maps, plates, cherts, etc., may be filmed at 'liifferent reduction ratios. Those too large to be entirely included in omy exposure are filmed beginning in the upper left hand corner, left to r'ght and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent §tre filmds d des taux de reduction diff^rents. Lorsque le document est trop grand pour Stre reproduit en un seui clich6, il est film6 d partir de Tangle sup^rieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images n^cessaire. Les diagrammes suivants illustrent la mdthode. 1 1 2 3 1 2 3 4 5 6 vfl^ CoNGREScj, } HOUSE OF UEPKESENTATIVES. < Ebpobt ^j^ist Scsftion. S i No. lOaV. ; ' -V /o^ RECIPEOCAL COMMERCIAL RELATIONS WlTJl <1ANADA. .FUT.Y 20, 1832.— Kelerred to tlie House Calendar aud ordered to be printed. Mr. Bloi NT, from tue Committee on Foreign Att'airs, submirted the following REPORT: [To accompany H. If. 9324.] * Tlie Committee on Foreign Atfairs, luiving had under «onsi(leration HoiiHe bill 9324, have examined the snbject-matter to which it relates £ind present the following report ; Aitide 27 or the treaty of "WVliingtou v<>"t'luded May 8, 1871 (17 Stat., 872), provides — The (ioveriniieiit of Hor Hrituniiic MajeHty engages to urge upon the (ioveruuiieut of the Douiinion of (Canada to secure to the citizens of the Mr.itefl States the use of the U'eUand, St. Lawrence, and other canals in the Dominion on terms of equality with the inhabitants of the Dominion; and -lu- (iovcrnment of the United States engages tliat the subjects of Her Britannic Majesty shall enjoy the use of the St. Clair Flats t;anal on terms of e(|uality with th»( iilmi)itants of the United States, and further engages to urge xi\um the State governments to secure to tlie subjects of Her Britannic Majesty the use of the several State canals O'tnuected with the navigation of the lakes or rivers traversed by or c(uitiguc»us to the bouudary line bets'cen the possessions of the high c(uitructing parties on terms of e(|uality with the inhabitants of the United States. In pursuance of the purpo.se and spirit of this article, the United States permits the Canadian ciizen tlie use of the St. Marys Falls Canal on the same terms given to its own citizens. It then opens to the Canadian <'itizen on the same terms the use of the St. Clair Flats Canal. The waters of Lakes Suiierior, Huron, and Brie are thus given as a highway for the vast scope of territory lying lu^rth of them by which their produt-ts are enabled to reacli Lake Ontario and the canals along the St. Lawrence, and ever to the .\tlantic Ocean and the marts of the world. More than this; ia the use of this highway the .several sections of Canada are enabled t<»e\«'liange their products without any additional limitatiiuis. This tlic i'anadian enjoys in all its comprehen- siveness. TheWelland, St. H-awrence, anil other canals in (\inada it was ex- pected would be oi)en fo the American citizen on the same terms. This wordd enable the traffic wlsich icjueKciitt'd to the Deiiaitniont art' (substantially as toUows: Tlic Canadian i^ovcrnnu-nt. in aildition to vchsil tolls, also inqioscs a cargo toll on trattic ]iassiiig tliioiiyli tli(* \\«'llaiid and St. Lawrence canaLs. This cargo toll iu the case of wheat and other cereals amounts to L'O ceJ'ts per ton. For some years past, however, the Canadian .yovernnient. by orders iu conneil, has granted are- bate ol' 18 e(ints per ton on grain carried thron^h these .anals, provided it was car- ried thidugh to Montreal or some ])ort east nl' Montreal, 'i'lie rebate is not allowed if the grain is destineay the rebate on grain tran^sllipped at Ogdenslmrg, and did not decide lo do so until after the close of na\igaf ion. In the meantime the businessof transshi]))nent at Ogdensi.)urg was seriously enibai rassed. To prevent such tra'is8lii]iment at Ogdensbiug the Canadian Covernnu^nt, iu its order in conneil, issued March 25, ISitl, ])roviding foi' the nsnal rebate of 18 cents j)er ton on grain for Montreal and ports cast during the seasoji of 18!n, inserted a new condition, as follows: •' 'ri'aussliijMiie'it, if at a ChikkHuu Intermediates jtort, shall not ]>rinent the refnnd aforesaid )>eing made." .*^ince then no rebate has Iummi alloweort. On the tth instant the Canadian Government isssued a similar order iu council for the jireseut year, 1892. reduciug by rebate the tolls ctu grtiiu carried through the Welland and St. Lawrence caniils for Montreal or pdits east from L'O cents t(( 2 cents per ton. Its conditions are as follows: "That the ](rudiicts aforesaid on which the I'-bate of tolls may l>e clainieorts east of Montreal 2 cents per ton, while tluj toll on grain for ex})ort Irom Ameri- can ports is 20 cents per ti)n. (2) In that even the lesser rate is refuse2 tons of grain whieii passed do\\ ii the same caiuil to Ojidensburg, Oswego, and other I'nited States ]iorts Jf-tO, ISb was exacted. The tarili' of tolls on coal is no less discrimi.iating. April 11, 185)0, the Ctniadiaii Govenimeut issued an order reilnciug the tt)ll m coal jiassing (b»wn the cinal from 20 cents to 10 cents ])er tiui, bnt leaving the ful.' toll of 20 cents on coal boniui np the camil. According to the ollieial canal statistics ofCanada during the season ofl8!)0, 22,781 tons of coal, |)aying a toll of 10 cents per ton. were carried down the canal iu Canadian vessels. Only (il5 t((ns were carried down in Anu-rieiin vessels. Of the coal ciirried np the can.il and coni]ielled to \y.\Y a toll of 20 cents, llti,61(i tons were ( arried between ports of the I'nited States, 17,280 from a I'liited States to a Cana- dian port, aud 80 tons only iietweeu Canadiun jiorts. An ajljustmeut of np and down tolls on coal producing so discriminating results could hardly have been un- RECIPROCAL COMMERCIAL RELATIONS WITH CANADA. intentional. Tlio sa •' results are seen in flic gcnfal business of the canals. It is alle^icil tliat of tlu* total fai-;;o tonnajjfo of tlio U'dland Canal durinf;- llic year 1890 57 p«'r cent, destined for American ports, ])ai(l more tlian 72 per cent of its tolls, and 43 per cent, destined from Canadian iiorts, i>aint)lislie(l. It is represented to the 1 )ei)artm',',nt. however, by tlU3 Lake Carriers' Association, of Hnlfalo, that the traffic jiassin^ thron<;h the \Velland Canal in 1S!)1 for 0«rdensl)nrf? alone paid $r)i").Uo7.0.") toll, while, if the same triiriie had heen bound for Montreal or ports oast, the toll would haxc lieen only $7.;>tiO.!U. There was also !i'."),71!l.r)() collect(Ml on grain for Montreal, which Avas tr.insshijijieil at (»!;(lensbnrfi, whi(di, if transshipped ;.t a Canadian jiort, would have only paid •t.')7l.9(), niakinj^ a total discrimination in the use of tht^ U'elland Canal auaiust the business of thejiort of ( )iidensbur>; alone for the season of 18!fl (d' ^52,8L';>.71. It is further reiireaented th.at its traflic was conifielled to i)ay the full toll of 15 cents in the l^t. I.awrein e canals, while the Monticai urain traflic jiassed throu;^li them free. It was also depri\cd of its natui'al share of the business ol' f ransshi^ipin;; jjrain intended for Montreal ami jxirts east. The Coiumissiouer of Navination. in his annual report for 1H8S, called attention to the discrimination of the Canadian a copy ' v»r a rejtort of the Canadian ]irivy council. Tliere apjiears to have lieen no ^'urther iatiou, (d' Ibitfalo. N. \., dat(!d September 18, IXDl. Since t len nusniorials have also been received from tlie Milwaukee Clia'.ii- ber of Connnerce, the Chiiago Board of Trade, the Detroit Hoard of Trade, the Cleveland Hoard of Trade, tlm Oswego Hoard of 'Trade, the Rixdie.ster Chamber of Coninierce. and from other assooiiitions aud indi\ iduals. A copy of the memorial (d" the ake Cariiers' Association was transmitted to Her Majesty's minister at this capital October 10. 1891, with a recpiest fo such explana- tion ot tho fjM-t' in the case as lu^ might desire to make. The I lepartnieut's note stated that iue matter w.-is one of special importance to our ]ieople at that season, ami asked him to give it his early <'onsid<'ration. Sir .lulian re]died. Octobe 12, that he would b ing the matti*' to the attention of his (iox crunient. At the confer- euee which was ludd at this l)e])artnM'ut in l''cl) nary last with the liritish minister and the oonnuissioners from the Canadian lioxernmeut this subjict was p esented, aud asRuraiici' was gi\t'n by the Canadian c nninssioners that the complaint of this (ilovernment should lia\(' proiu]>t considerati(ai and that the <)Uestion of canal tolls should l>e satisfactorily adjusted. Still lu) rejily has been reocixcd to that com- jd.iint. but by its order in council of the 4th instant the Canadian (iovernment has continued its system of discrimination. It dois not relieve till' ])osition oT the Dominion Government with respect to the grain rebiite that considerable ot' the grain carried to Montreal and the I'.ast is shi])ped from jiorts of tiit> Cnited States, and that, the trans]untatiou of such grain being open to American vessrds. they can secure the rebate on the same conditions on whitdi it is given to Canadian vessels. 'The reci])roci>l e(|uality which is sti|>u- lated for in the treaty in the use of the Wellaud and uther Canadian lamils is not to the \-ess(ds of the two coinitries. but to •' the cil izens of the Cnited States" and to "the inhabitants of the Dominion." An equality in the u.se of the canals to Ameri- can V(«ss(ds would not alone satisfy the conditions of the treaty. 'The distinction be- tween the vessel ami the cargo is rreciate any informatiou as to " whether there is anything in existing treaties between (ireat Hritain and the Cnited States which wmild prevent the imposition of tolls by the Cnited States upon conum-rce destined for Canadian pcnts, using or going througii the St. Clair Flats Shi]> Canal or the lanal aud lock .it the .Sault Sie. Marie, in retaliation for tolls imposed at the Welland Canal, should the Government of the Dmuinion of Canada tail to recogni/e its obligation growing out id the tweuty-seveuth article of the treaty of Washington." RECIPROCAL COMMERCIAL RELATIONS WITH CANADA. RE( Ton replied im tho latli of I'Vhruury that "the only trcivty stiimlation in Coiooap- plicahlc to the use l>y Anuirican and I'anadian citizens of the caiialN connected with the (treat Lakes and the St. Lawrence Kiver is contained in tlie twenty-seventh article of tlie treaty of Washington and is dearly intended to be reciprocal in char acler." At the .same time you said that the (Htmpl.iint which was the subject of liis letter had l)cen "brouj^lit to the attention of tlic Canadian commissioners now (then) in this city and an assnran<'e ^iven by tiiem tliat the com))laint whi( h wo ha\'e prefcned shnll have careful and prompt ccmsideratioii. with a view to a laithful observance of the treaty stipulation." It has liceu rcpeateiUy ur;jcdupon this iK'iiartmeiit by uur citizens that the action of Camida in this matter ou;;ht to be met by retaliation in kinersislent and deliiierate xioLition on the ])ai»r of the Donnnion goxeruTuent of Article XWil of the treaty between (ire.at Britain and the Cnited States wiiieli Ix-ars date May 8, 1871, nnd is known ac the treaty of W'ashing- ton. The artiele alM)\<' referred to reads as follows: "The Go\-ernmenr of Her liritannic Majesty engages to urge u])ou the govern- nu'iit of the DiMuinion of Canaa8sing through the Wel- land (\anal. In the case In? shi]tped was about ready to load in .Montieal. It conld then be translerred tv> barges and rcaidi Montreal just when it was needed for loading. Hy this means a eonsiderabh^ expense was avoided ami a corisiderable advantage gaine ter uniler eo the season. ferred at Oj. government' put an end a forwarders \ not care to ; Oil March viding for tl of 18!tl. '11 conditions < aforesaid i>ii nally sliippt laiui Canal. or some por port, shall i While tilt ment at an interpreted was to carr refund won been traiisf this order i Slutrtly MiK govermiieii be paitl lint what the ]> tended to )> enec in Oct could cli''i above refer nient at An ,So nuich Canal. Snpplomi canals (a c^ son of navi hcfore set i council an your depai at Ottawa. It may b the oi>erati taiued in t vear 18!)0 t freight, td' the same s of freight, that iii tin 3:3«>.lUtt(U. tolls exact rnitcd St: rebate wh trattic up «mly :{8,7L> can vessel It also 1 carrh'd uj the coal c tons was ( Canadian consisted was, ther of coal fu coal, how RECirKOCAL (JOMMEHCIAL KELATIONS WITH CANADA. cap- ■ fjrniii was held to iiwail the steamer, at coiisideialtle t!X])eiiise. Altliougli tlie oiiler with I ill council yraiitiii}; rebate on Montreal fjrain IVn- the seaHon of IXyo was aliHoliile iu ■j;rain transHhijiiied at <)y,(leimlmrn, hut took theniat- etter ter niider consideiation and made no decision until about the cloHe of iiaviffation for n) iu the season. It was then decided that the rebate iiniHt be paid on the ;iraiii liaiis- rrod I'erred at < >ji;(h'n8l»nrj;, and such payment was made. The effect, however, of the M'e of governuient's action in witliholdinff its decision until the close of iiavij^ation was to l>ntaii end almost entirely to the traii8Hliii;ment of j;rain at (>j;densl»iiii;, because the •tiou forwarders were nnceitain as to whetiier they would ^ct their i-;ite or not, and did •rder not care to assume the risk of an unfavorable deciHinii by the (Jaimdian authorities, •m of On March 2ii, IHJtl. the ('anacr ton on Montreal j^rain during the season ini- of 18!M. This order, howe\er, ditfeied from ordi'rs made in former years, and tlie ither .. conditions of the rcliate jire slated in the order as loilows: "First, the |iid(liicts al of M aforesaid on which the refiiml may he claimed siiall lie shown to have been origi- nally shipped from Montreal or some port east of Montreal betbre entering the Wel- laiid Canal. Second, they shall lie shown to have licen actually carried to Montreal or some ]iort east of Montreal. Third, traiissiiipnient. if at a C'anadian intermediate- port, shall not prevent l-lu^ refund atbrcsaid being made." While the tliii'd condition above stated docs init state iiiic(|iii\ ocally that transship- ment at an American intermediate port will prevent the refund, it is generally so interpreted, 'i'lnre lan be no doubt that the intention inwiirding this (oiiditioii was to carry the impression that on .Montreal grain traiislcrred at < )gdcnsliurg the refund woiihl not be ]iiiid. As a matter of fact a lew ciP'goes ot' Montreal grain have been transferred at ( >gdeiisb,irg during the jireseiit year, for the purpose ot testing this order in cijuncil. and in each case a demand for a refuinl has been refiiseil. .Shortly after the lirsf of these cargoes was transferred at Ogdeiisbiirg the Canadian government issued an order that no rebated bills under tiie cu-der in council would lie paid until the close of navigation. It is, of course, imnossible to say absolutely what the ]r.irpose of this last order was. but it seems (|nite likely that it was in- tended to ]>ostponi' detinite action in this matter until after the reciprocity coufei- euce in October, so that at the time of siu-li conference the C'anadian eoniniissioners <'ould clii'iii that, in .spite of the worvling of conditi()3,8;>!) tons al carried up 101,010 tens was carried between jiorts of the riiited States, 92 tons was carried between Canadian ports, .and 17,280 tons from ,i I'liited States to a Canadian jiort. It will thus be seen that the up tratlic iu coal through 'he canal consisted almost entirely of a movement in the riiited States coastwise trade, and was, therefore, necessarily carried in Cnited States vessels. On this uji movement of coal full tolls of 20 jier lent per ton were exacted. Of the down movement of coal, however, 22,781 tons was earrie Ki:<'II'ROCAI. COMMERCIAL RELATIONS WITH CANADA. i-it^l ill C;iii;i(liaii vessels. Only 615 tons of coal was eariied down tiiroiijili the canal in ill! Aiiieiitaii vessul or to an .\nierican port. On tiie l.th ol" Ainil, 1H90, the Doiiiiiiinii (iovcninient issiiod an order itMliiciii;;- the toll on enal paHsiiii;- down tlu^ canal Iroiii L'O cents to 10 cents jier ton, but iea\ inj> (he I'iill toll of 20 cents on coal lioinid n|.i (lie canal. It also a|i))ears Croiii this ol'lieial rejiort that of the Montreal jirain transferred at Kingston during the season of IS90 1SL1'7"> Ions was carried to Kiii;istoii in Canadian ves>el-< and li"),."!!)!) tons in \essels of the liiitcd States. The Lake Carriers' Association helievcs that tiie facts hereinlitdnre set forth show rery jdainly a violation hy the Dominion (iovernineiit l>oth of the spirit and letter of the twenty-seventh article of the treaty of \Vasiiin;j-ton. for the following' reasons: First, flic <'tfect of the reiiates on .Montreal j^rain is to allow practically all the jjraiii which ])asses thronj;h the ^Ve]lauasses the canal iioimd fi)i I'liiti'd Stiites ports is ()l)li;ied to ])ay a toll ten times as j^reat. It is under- stood that the Dominion ( Jo\-ernnient claims that the tie!,(,\ is not herel)y violated hccans • the .i;rain carried to Canadian ports is shijiped from ])orts of the United States; that therefore the cairia;;t^ of such ;irain is open hotii to American and Canadian vessels, and that the rcliate is jiaid alike to the vessels of tiotli countries. Therefore they claim that the use of the W'elland (anal is^rivcn to Canadian and Cnited States vess(ds on e(nial terms. It is to he noted. how<'\('r, that the twenty- seventh article of the treaty of W'ashinjiton secures the eipial use of the canal not only to American and ( 'anadian vessels, hut to the citizens of the two countries. The ])iiipose anil intent of that article is (dearly to prevent tiu^ Canadian Covernnieut, hy the use of vexations canal rejjiilations or hy any to their own vessels or to their own ports, or to their <)"vn eonsnmers or citi/eiis, any ad\aiitage over .Vmerican vesstds or .\merican ports or American consniners or citi/.ens. If the intent of the treaty h;id liceii simply to secure t .) \ ess(ds of the t wo countries eqnal rij;lits in t he canal, sncdi intention would have found its natural expression liy iisinji; the word ••vessels" in the arti(de. It is clear that the intent of tlie article is to cover a Itroadcr ;;i'ouiid and to secure the use of the caaal on etpuil terms not only for American vessels, Init for Am<;iican ports, consniners. and hiisiuess interests. The grain rehates are, therefine, in clear viola- tion of the treat •. When an American vessel loaded with urain for an .\ineriean port passes the Wel- laiul Canal, hy what citizens of the I'liited States is tlie canal used? Is it init used as well by tin- owners or cousij^nees of the ear^o as by the owners or charterers of the vessel ' Manifestly it is used by both, and the Canadian (Hiviunmeiit distinctly reeo<;ni/es this t'act by cxactinj;' tolls from both. On every steam vessel passinjj the canal a toll of 1.1 cents ])er re;;istered ton, and on (^very sailing; ^•es.■sel a toll of 2| cents per re.nisti'red ton is collect(!d. In addition to these vessel tolls, tolls are ex- acted on the earico, and it is on these car;;o tolls that (liscrimination is made. ^^'hen two \essels loaded with urain .arrive at the canal tojicther, one cai'ji'o destined for Ojideiisbiir!;- or Oswego, and the other destined for Montreal, and the Canadian government exacts a toll ton times as great on the caigo destined tor the I'liited States ])ort as on the cargo destined for the Canadian jiorf, it is clear that the use of the canal is not secured on e(|nal terms for the I'itizcMis of both countries. On the princi]»al <'ommodity ))assing the canal there is an audacious discriininatiou against American forwarders, ]»orts, consumers, and routes of ex])(>rt and in favor of Canadian forwarders, ports, consniners, and loiitis of cxjiort. lit the year 1800, on 228,51!{ t(uis of grain carried through thi' Welland Canal to .Montreal, only ti!!, 570 tolls was exacted, while on 215.1132 tons of grain which jiasscMl 8wego, and other Cuited States jiorts .'J'l!t,18(> was exacted, Surtdy this is not giving the use of the canal on e(|iial terms to inhabitants (d' the Dominion and citizens of the Cuited States. .\ careful study of the otticial citnal statistics for the year 18!H) shows that the Dominion goverejaent collected on the Welland Canal over and above all refunds cargo tolls to the aiuonnt of ■iv .Vmerican ports paiii ^!t7,IM)(land cargo destined for Canadian jiorts only .^87. 1)00, Of the total cargo tonnage of the canal .")7 per ("■lit destined for .\m(U- ican ports paid more than 72 jier cent of the tolls; ll! per cent destined for Canadian ports paid less than 2S ])er cent of the tidls. With only one third iiKU'c cargo than Canada we paid nearly three times as much in cargo tolls. Mention has already been made of the ditference in the rates of toll on west-boniid and east-bound coal, and in the statement of facts above given it is shown tliat on this article as w
''i^f siicii <;i'aiu is tiaii,>('cnfd at Kiiifistoii, liiil (liat 11" siicli icfiiiid will he made it' smli iranslVr is made al O^tdeiis- l)iir' reduced rates y the I (ominion (iovernmeiit will visit Washington for the express purpose of emi- ferring with rt^iiresentatives of fhe I'nited States on the recijnocal trader lelatioTis of the two countries. A favorable o|']iortuiiity will thus be afforded for hringiug this matter formally to the attention of tin- Dominion (iovernment and for deniauil- ing that heiicelorih the Welland Canal shall hi- open for business to citi/cns of tlie- Ciiited States on terms of equality with the iiilialiit'iiils ot' the Dominion, without discrimination against either .\iiiericaii ports, coiismners, forwarders, or vessels. Should the Canadian (iovernment not grant redress and should it continue to hold that the regulations in force are no violation of the treaty, then the I'nited States (iovernment would certainly be free to place upon the treat\ the same con- struction ]daced iijion it by the (.'anadian (iovernment. It could, tliercfore, )dace in force ii|)ou the St. Clair Mats Canal and the St. Marys Falls Canal a system of tolls which would operate against Carndian vessels and ports just as the \\'elland (^aiial tolls operate against our own. Sujipose thei rniteii States should put in regulations whereliy all ■esHids pass- ing the St. Clair Fl.its C.inal or St. Marys Falls Canal bound for any iiort of the I'nited States should be allowed lo ])ass w itliout pa.\ iiig lolls w hilc high cargo tolls were exacted from all vessels passing these canals bound for any Canadian port. Such regulations could certainly not lie coniidaiued ot' Ity the ( 'anadian ( io\ crument. If it were found as a matter of fact that an> ]>arlicular commodity carried to any Can a trai adiaii ports through these canals was usually carried in .Viiiciican \esscls, or wa> liiidi the business interests of , he I'nited States were deri\iug beiielit, le fi then such coiiiinodity might lie exem))teil from the payment of tolls, just as .Montreal grain and east-liomid coal are ]iartly exeiiipted on the W'ldla'id Canal, leaving, how- ever, all Canadian coastwise luisiiiess through these canals and all biisiiu'ss through these canals bound to Canadian ports and usually carried in Canadian \ cssels .subject to such heavy tolls. Simple justice to Ameriean forwarders and vessel-owners rei|uires that on grain lioiind for Montreal the same tolls should lie exacted at the St. (/lair Flats ( 'anal tliat are now exacted at the Wellai.d Canal on grain destiiied foi- ports of the I'nited Slati's. Vovy resjieetfiilly yn't.'ition of the tioaty riK'htH of AiiMMiciMi ('iti/«'iis li}iv«i luM'ii met in a spirit of evasion, avoidanre, and delay. Such conduct is not only lislioncst in |>Mii>osc and deceitful in uu'thod, but almost reaches to tlie |.oint of <-ontuniely and insult. It aiMM'ars tliat a power should be vested in the President of the United States to so regulate tolls on the St. Marys Falls (3aual as to secure to Auieriean citizens their rights as herein set forth. ihe acconii>unying bill is therefore reported w ith a recoiuineiulatiou that it do pass. l.'W ■-■t ■ '■■ » of uul I ill the < to :iou