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Un des symboles suivants apparaitra sur la dernidre image de cheque microfiche, selon le cas: le symbole — ► signifie "A SUIVRE", le symbols V signifie "FIN". Les cartes, planches, tableaux, etc., peuvent dtre filmds d des taux de reduction diffdrents. Lorsque le document est trop grand pour dtre reprodult en un seul ';lich6, il est filmd d partir de Tangle supdrieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 4 5 6 I ..>i^ ^ ^ «*' / ^^^ \ 'X ^o. A-^ ^ %c. A ^ANAI^AIM PACIFIC RAILWAY AGGRESSIONS ^ ^"^ v>^ UPON AMERICAN COMMERCE. / >^ \) vk Vo ^ /9 A. LETTER ^ uV ADDRKSSKD TO Mr. lOSBPH Mu, r. WM. C. VAN HORNE, Pycs,idcnt of the Cimadiiui Pacific Raikuny^ AND Mr. NIMMO'S REPLY. — \-^^*- WASHINGTON, D. C. GinsoN Bros., Pkinters and Bookmnders. 18S9. S.4L4(> Letter Addressed to Mr. Joseph Nimmo, Jr., by Wm. C. Van Home, Esq., President of Canadian Pacific Railway Company. i\rAi;cii '11, 1S8<). My Deak Sir : I assnmo that in coiuiiunitiii.u; upon the reliitions and policy of the Canadian Paeirtc Railway Coni- panv you are actuated only by a desin^ to i)roiiiot(' tlu! public sood, and I therefore venturi; to write you to cor- rect some misapprehensions under which you nre lahor- inii;, if you are quoted correctly in the enclosed clipping from a (■]iica|.';o newspnper. The Canadian Pacific Railway Company, although orig- inally subsidized by the Dominion goveriinicnt, hos no closer relation to that government than the Raltimor(> A- Ohio Raihvay has to the Government of the United States. It borrowed money once or twice from the Dominion government to enable it to complete its work, but the money was paid back wit}\ interest. It is in receipt of no subsidy or assistance from the Dominion government beyond the usual com])ensation for the carriage of mails, save only an annual ]iaym(uit for a, term of years in respect of a line connecting with the Mari- time Provinces and which came to the Canadian Pacific by purchase. The steamships on the Pacific working in connection ■with the raihvay have no subsidy whatever from any (fov- ernment, and do not even get anything for carrying mails. The " States to States" traffic carried by the Canadian Pacific Railway, tluit is, business from one section of the United States to another, does not contri1)ute four ptu- cent, to its earnings. Much of what has appeared in the American press al)out I tlio Canadian Pacific Raihvay for a year or two lm(;k has resulted from its having boon usod as a biighcar by tlio Anu)ri(;an linos in opposing the Interstate Commerce Act and in seeking to evade its enfcn-cement. The freqnently publisluMl stat(iment that it attackcnl the other Pacific lines is absolutely untrue. Tluur difhculties commenced six months before the C-anadian Pacific was opened for trafiic. The trans-continental rate war was brought about by the withdrawal of the subsidy to the Pacific Mail Ste.amship Company, that had for a number of years been paid by the rail lines. This occurrinl in December, 1885, and the Canadian Pacific was not opened for traffic until July, 1886. The Canadian Pacific Railway was built for cash by those who intended to hold and work it. The amount contributed by the Government towards its construction was, as compared with the vast capital invested, almost insignificant. There were no profits taken out by credit raobiliers or construction companies. No sleeping-car, telegraph, express, or other companies of that kind absorb the profits from its working. Its success is due to the fact that no private interests are fed at the expense of its share- holders and that it has only to pay intt^rest on capital ac- tually invested. It is a strictly commercial enterprise, depending upon its own resources, and worked, as I beHeve, on sound busi- ness principles. All of the facts that I have stated may be easily verified, and I have given them to you in order that all you may write may be as infallible as your statistics. Yours very truly, W. C. VAN HORNE, President. Joseph Nimmo, Esq., W((s/tlngion, D. G. $ 4 Mr. Nimmo's Reply to Wm. C. Van Home, President of the Canadian Pacific Railway Co. 1831 F Street N.W., AVasiiington, 1). C, April 12, 1889. Wm. C. Van Horne, Esq., President of the Canadian Pacific Railway Co. Dear Str : I have the honor to acknowloclge the receipt of your letter of the 27tli ult. enclosing an article of mine in regard to (Canadian Pacific Railway aggressions upon American commerce, which article appeared in the Chicago Times of the 18tli of March. To the statements made in this article you object. Your letter relates entirel}-^ to matters which have coiumanded my attention in the public discussion of topics of a political nature touching " our Canadian Eelationships." I maintain that whenever a man discusses a public question he is morally bound not only to state the facts upon which his argument rests, but also to make known the motives by Avhich he is actuated. Holding myself amenable to this rule, I regard your ])olite letter as a perfectly proper demand for such a statement. The political character of the Canadian Pacific Railway is impressed upon my mind by the following facts : The enterprise had its inception in purely political considera- tions, which were first publicly announced in Canada and in England during the terribh? civil war which raged in this country from 18G1 to 18(55. In 1802 Sir Edward Bulwer Lytton advocatinl the construction of an inter-oceanic railway across British North America, upon the floor of the British Parliament, " for imperial interests, commercial 6 ;iiul ])()liti('fil," juid in IHfin tlu; Dnko of Nowcnstlts tlion a mi'iiilM'r (»f tlic IJritiwh ('jibiiKil, ilccl.ircd in the Hoiist; of Lords tliJit siicli a raiUvay wonM snlistu-vt; iniportiint ends " in the event of war on tlie otlier sido of tlie Atlantii;." Sir J^'.dwai'd \\ . Watkin, at one tinu; president of the (irand Trnnk liailwav, and foi' nianv years a mendx-r of tli(^ Hritisli Parliament, strennously advocated tlu? seliemo ill eoiiiiection with " a line of mihtary ])osts of strenj^th and uiaj^nitude, hei^inniny; at Halifax on the Athmtic and endin}^ on tln^ Paeitic." Th(> (;onstruetion of tho Intercolonial and the Canadian Pacilii^ llailways wen; at th(> bej^inninfj; nv}i;ed mainly n])on pohtieal fvrounds, the object liad in view luvin^' to hrin;^' into eh)ser cojnmercial a' d i)olitical relaticmships the four wMely-separated lialiitahh; and inhabited bhjcks of terri- tory (•om[)osin|u; the Dominion of Canada, viz., the Mari- tinu! Provinces, the ProvincH'^ of Ontario aiid Quebec, Manitoba and British Cohunbia, and in so far as possible to r(Mi(h'r them indejienchmt of trade relations with the Ignited States, witli whicli country they are much more closely related by g(>ographical contiguity than witli each other. Those four sec+ljns of the Dominion were politi- cally united by the British North American act of July 1, 18()7. Lord LansdoAvne, late Governor-General of Can- ada, said in 1885, " Confederation without the railway was not worth the pa])er u[)on which the British North American act was written." As the result of an issue arising in the inauguration of this great political enterprise, Sir John A. McDonald and his ])arty went out of j)ower on the Otli of Noveml)er, LS78, but on the l()th of October, 1878, they returned to power, and have held the reins of government evi;r since. The construction of the Canadian Pacific Hailway is the crown- ing act of this forceful administration, whose chicif is un- iiiistdkHbly tlio stroiif^est porsonulity iii the Dominion of Cfiimtlii. Do not tlios(5 fiu'ts clearly prove the ])()liti(*ul clijinictor of tlu^ inception of tln^ ('iinudiau I'aeilic Hallway V And now 1 turn to the vaiions forms of aid tlu; snh- ventions and larj^t'sses bestowed upon the ( 'aiiadian Pa(dtic llailwuy in aid of its constrnction, which also ])rovo the intense political chai'acter of tlu^ enterprise from its intu^p- tion until its completion. TUv follow! iiji; statement from my rc^port on the internal commerce of the United States for the y(!ar 188 1, as an ofHciU' of the Natiomd ( Jovernment, was ]H'epar(;d from (hita furnished to mc; by IMr, Charles Drinkwator, then and n!!r{0,000,000. The com])any is also authorized to build a line of telegraph along the entire railway, which under its charter it is empowered to use for commercial as well as railway purposes. The privilege is extended to the com}»any of importing free of duty steel rails, and other material used in the construction of its road and tc^legrapli line. It is also empowered to build braiudi lines, with right of way and rtliw«!st Tcn'ritorics is also dcclanMl to 1)() fr('(! tVoni taxation for twonty yearn unksss sold in tho nirantinif. " Tho capital stock of tlu^ company is $1()0,00(),{)00, upon whicli the nonunion ^oviu-nnunit has j^narantcMul a niininuun dividend of H per c«nit. per annum for ten years, tiu^ c()m])any liavin<^ placiul with the ^ovfU'nmimt a sum which at 1 per cent, interest will be e(|ual to tho dividj)orts. TIk! a(^tual c(»st of the 714 miles of railway presimted to your Company as a fr(H! j^ift from the Dominion <^overu- meiit is stated in your report for 1887 at $;}r),000,000. The land subsidy of 25,000,000 acres at $1.50 per aero amounts to $37,500,000. In the year i88() the fi;overinnent took back 0,71)3,01-4 acres of this land at $1.50, paying for it $10,180,521. Your Company, as Ixjfore stated, was by its charter en- dowed with extraordinary franchises, giving it a practical monopoly of railroad construction west of Ontario. But the Province of Manitoba revolted at this provision, and in settling the difficulty the Dominion government guar- anteed the interest {it 3^ V^^' t^ent. on boids to the amount of $15,000,000, payable in fifty 3'ears. These bonds pre- s(mted the attractiveness of investment securities, and, as I understand, in consequence of this government guaran- tee, became readily available as cash in your trc^asury. This was simply a payment made to you for the relin- quishment of a ci^nparativoly small part of your franchises, the gift of the Dominion to you, and as stated on page 19 of your annual re^jort dated May 9^ 1888, it furnished your road " the necessary capital required for permanent ¥% 9 improvom<^nts, additional roUinpf-stoc^k, and facilitieH of all kiiiilK for its rapidly iiwrraHiii^ tralHc." In tlit> yt'ar 1 construction of its road. On tlio 'Ust of DocenilM 1, 188(), the total amount of tlio ori^'inal subsidy of !?2r),()()(),000 had been paid to the (Ca- nadian Pacific llaihvay. (Stio Annual llcport of Minister of llailways and ( -anals, p. xii.) Your report submitted in 1887 states that tin? Dominion government has subsidi/cid that portion of your liiui ex- tending from your St. Lawrence llivor Brid, a ])oint on tluj Penohscot lliver, at the rate of $18(1,000 a year. I know of nothinjj; comparable to this in the United States, and I think it is unicpie tis a metlnxl of preserving the carrying trade to Canatla and her seaports. It app(!ars from tht! balanc(i sheet of tlu; dominion of Canada that the total expenditun by the government on the Canadian Pacific llaihvay in cash to the 'U)th of June, 188(), was $()0,84r),727.04, and that on the ;}Oth of June, 1887, it was $(il,7()0,78r).4;5. I think I am simply voicing a fact kn(jwn to every intelligent person in Caniida when I say that the increase of the i)ublic debt of the Dominion from «il79,4;i3,871.21 in 1870 to !<27;],i;]7,(>20.4a in 1887 was incurred maiid>' through the extension of tinancial aid to the Canadian Pacific liailway. To be able to stat(^ with any degree of precision the exact value of the largesses bestowed by the Dominion government upon your Company, including land grant, wharfage facilities, remission of duties, and 714 miles of railroad as a gift, and also to draw nicely the distinction between actual or viitual gifts of money and loans, would involve full powers for the audit of all your accounts and 10 ili the appraisement of all your properties. I have not thou(>iit inquiry into this matter jilxmt a. year aoo. AMicu tlie Aiiierican transcontiiunital liiu^s, on tlie 'JTtli of April, 1887, niado a 75 cent rate on sii^ar from Han Francisco to tlio Missouri river, did vou not make a 60 cent rate by means of wliicli you carried suf^ar from San Francisco via Victoria and Winnipe<^, and thence over AnuH'ican lines to Omaha, St. Jos(^pli, and Kansas City, and was not this what is commonly known as " railroad war ?" I could submit to you several other similar inquiries. But are you not now woikin«jj under " differential rates " in order to enable you to secure a share of our " States to States " traffic ? Again, Iiom- is it that about 80 per cent, of our exports of cotton goods from the New England States to China and Japan are going by the way of the Canadian Pacific Eailway and your steamer line from Vancouver ? At this distance it looks very like the result of a " cut rate," /. e., a " war rate." A few months after the opening of the Canadian Pacific, the Chief Engineer and General Manager of the Govern- ment Piailways of Canada said exultingly in a report dated Dec. 20, 1887 : " Already notes of alarm have been sounded by the American press at tlie manner in Avhich the Cana- dian Pacific Piailway is cutting into the business of the transcontinental roads of the United States." But all this gives us no new surprise, for from the very beginning the projectors and promoters of that enterprise, in mak- ing commercial survey of this country from the Atlantic to the Pacific, were in the habit of using expressions which seemed to say : " Moab is my washpot, over Edom will I cast out my shoe." In a pamphlet mailed to you to-day I have recounted unfriendly and illiberal acts of the Canadian government toward citizens of the United States, embracing two viola- tions of agreement and a refusal to reciprocate even in a matter of common humanity. From some of these acts the 15 Canadian ^ov€>rnineiit, (luriii<>- tlu>- past year, has dccnuul it expo(li(uit to reoodo. As stated at tiu; ber^iiiiinnp;, my public coiiimeiits upon the Canadian Pacific llailway and its nianafijenient have been incidental to considerations of a political character. This I have attempted to explain to you. In the exercise • of your adininistrativf^ and ministerial duties you cannot of course be supposed to pay much attention to such con- siderations. As a railroad executive, you naturally make the best possible use of all the opportunities presented to you, as V)usiness men are doing everywhere. I fear your feelings are touched by an impression that I have cast some reflection upon the credit of your road. Not at all. Your balance sheet certainly makes an excel- lent showing, and I have two good reasons in mind why it should ; one, that your Company has been so highly endowed by the Dominion government ; and the other, tliat your road is ably managed. Mr. Olds, your traffic manager, is tie only gentleman connected with your Company whom I know personally. I think the niilroad managers on this side of the line regard him as " a foenian w^orthy of their steel." And now, my dear sir, I think I have pretty fairly re- deemed my pledge to disclose to you my facts and my motives in the discussion of the Canadian Pacific Railway question. I acknoAvledgi^ my indebtedness to your Secre- tary, Mr. Drinkwater, and to your Traffic Manager, Mr. Olds, for valuable information and courteous treatment in years past, and desire to thank you for the complimentary terms in which you have been pleased to refer to me per- sonally. I am, sir, with great respect. Very truly yours, JOSEPH NIMMO, Jr.