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Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand corner, left to right and top to bottom, as many frames as required. The following diagrams illustrate the method: Les cartes, planches, tableaux, etc., peuvent dtre fiimis d des taux de reduction diffiftrents. Lorsque le document est trop grand pour dtre reproduit en un seul cliche, il est f ilm6 A partir de Tangle supdrieur gauche, de gauche d droits, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent la mdthode. 1 2 3 1 2 3 4 5 6 ...«~...«i»».«^..,.w,».«^...««..j|^Y)(Yyy..^^ ;>*!**Ji^*:-r^S*ft'!f;%"^'W^f;«?«^..,. - >''t:..^' _^M r-W^Jt^- ■d*M^|hM>MMMM«NhkM W >iMfci«»» * i^i»»^iM* • m mfmmmm OUR RELATIONS WU'if !-^ Statemerst by JOSEPH KiMMG. Jr., '-*K- BT«F"jiR Tfafi *.: O"^ RELATIONS WFi'lf (;ANA1>A. Al^iifL ae* ISiiO. I i aO'^ EKKMISKT FKlK'TJr^'i OFFlCF.. . !» ■ ■».««» ii a.i^lSI\A«X3.,A... SKLEOT (;OMM!TTKK 01" TllK SliMTE : .^ 1 1 i WoBCEaruB. Mawm., J'lli^ '20, 188',). H.)n. .Io«EPH NiMMo, Huntington, Long fshtnd, xV. J'. My Deau Sib -. Tho Comiuittee ou Rolutious with Caua.lu is to proceed with its* inve^.ti«fttiun iu Uostoii about September 7. \VouM it In.' .ijjrepable to ynu to prepare nnd give to that Conftuittee your views ou ih- gea^rO subject of th.' relatiouH of the United States with Canada y They would be of great interest and value. I am. faithtnlly your8, GEO. F. HOAU. To Seuator Hour'^ mvitatiou Mr. Nimuio replii-d. und.T date of July 27. isHlt. exprosfling his regrets that he voul.1 !>.■ uuabl- to appear before the roimnittee ii, BosUm duriuj,' the tuonth of September. Variou.-. mcumsvanceH intervened to pvevent \hv hearing until April 2! in Washington. Select Committee of the Crnited States Senate on Relatiom with Canada. Soimtor Hoar, of Massadmsetts, Chaimiaii. Hciiator Allihon, of Iowa. • , Buuator Hale, of !Maiu«-. Seuatov DoLrH, of Ortgou. Seuator Puou. of Alabama. Htniator I^UTLElt, of South ("avoliua. Senator YooiuiEES, of IiuliaiiM. : f RKLATIONS WITH CANADA, 885 TESTIMONY OF JOSEPH NIMMO. JE. ' Washington, ]). 0. vli>rt7 20, 1890. JosEPrr NiMMO, Jr., sworn and cxniniiied : Tbo CiiAimiAN. Mr. Niinnio, tho purpose of tliis coininiMce is to col- lect H^c^ iiifon lation hh we ran in regard to the relations Ixitweea tlio Uiiited States and Canada, ill which wo iiieludo tho iclatioii." of the two countrieN to each otiier with releience to trade, the elfect of the tiscal legislation (»f t^ach upon the other, tlu^ social and i)ossil)le closer rela- tions with ecial manner I desire to ask your «80 UKLATIONS WITH CANADA. nttoiitioii to thv iulliu'iu'*' wh'wh (lio ownorsl'.ip nnd maimp'inpnt of cjuiiils iiiid nil n»aiKs, uimI Hh* pntinotion <»( tin* iii(vie«f.s of tiaiixporUi- thtn linen on tlii« IiiimI iind on the hpb, by the J)oiniiiioii ami llritisli GovrninuMitM lias litid iijton AiiiPii<'iin iiitiM'sts. ■ Ever Hiiioc (In-at IJiitiiiii was forced to aokiiowledjje the iiHlepenn by the mother country censed long ajro. The gov- ernor-;;eneral ni Canada, sent out l)y the (^Mieen, has been strii»p<'d of all real authority, and the i)ower to dictate the terms of commercial treatien is oi)(»idy assertt'd and freely exercised by the Dondnion (Joveriiment. The j)olitical party now in i)ow<'r in (Janada has adopted the policy of taritl ]irotection, even against free trade Enjiland, but at the same time it is loudest in its jirofessions of loyalty to (Jreat iiritain. It also i>ro- claiiris ''(Jreatcr Ibitainism," and vehemently advocates the s<:lieme of British imperial coidederation — a scheme which challen}(es the atten- tion of the United Stat<»s. Canada receives uo liscal aiil from, and pays no tribute to, Great Britain. Without an arm}' or a Utavy, the <.'anadians, however, look to Cireat jbitain f«)r military i)rotection. In all other respects the ])ulltical bonds between Canada J'ud Great Britain apjtear to be sentimental rather than practical, and yet the sentiuuMit is a forceful one. The l)ractical abrojt;ation of authority over the North Atuerican cther country is apparently as strong today as e^'er. The philosophy of the C.'anan ,.f tl pall of r virt r *' fe< c.itiv cap (b'U of ^^ exc oft fori of aim as to pre mu: ate cis' the POLITICAL CHARACTERISTICS OF TIIK DOMINION GOVl^RNMENT. Patterned after the Bntif>h (bivernment, but witliout its traditional safeguards, the Dominion (lovernmcnt is ess«*ntially a jiolif ical party g;overnment. The administration of affairs has gravitated into the most autocratic form of political bossism. This appears to be the result of an organic dt-fect in the( anadian system of government. Th*! ]»arty in power absolutely controls both the legislative and executive branches of the Government. The l('aara«;t«'ri/«'H Im»Mi tlio Dominion (Jovcirmiu'iit ;mkI tlio i>rovint;ial j;<»vornnMMitM. As tlu' prinxi ininiHtor is th«; ioador of tlio ('«)ninu)ns, the oxecntivc .'' '"o an American (citizen it lookH like a tierce democracy with a monarch i<^a! leather in itH r,\\* and a somewhat idolatrons fondness for tlie featticr. If the I'resi- (h-nt of the ITtnted Stntcs werea political nonentity, and oni- ►Secretary »)f State at once leader of the llonseof Hepr<'.Mentativ«'s and actual (jhief executive, onr (Jovernment would resendih' t hatof ( 'anada. Same idea t>ftlu' practical workiufj^K of the Canadian (Jovcnimetit. coidd then be foniM'd, by sMpposintJ our "i)remier" going to the Speaker of the Ihtnse of ItcprcHenratives some morning, and, handing to rliat otilcer a bill iinuMMliitory of the (Constitution of the United St.'t<'s. to be. put through as ii party measure, with an .ippropriatiou l)ill in la • of .loctioiis likely to object, and then stepping t»ver to the Senate tiud infornung the president (»f that body that when the bill came over fron) the House it miiHt be put througli at once, and witiiout uel' ' •. T.e Ca'c -iiau Sen- ate is not ele tive, ami, like the J3ritish Homso of Lonls, ii really oxer- ciscs no Mint pendent legislative power. Such a g" jrnuient, closely pa**"ineil after th; riiunarchi(;al institutionsof E-.. o]>o, cau never excite rlic I'uvy of the jieople of the United States. I believe that it is j»erfe(!tly projierto sny tiiat the Dominion Govern- ment is essentially a confederacy from which any one of the •, ' 'winces may seeeci(ied reinig»ian<;e to an intlissoluble uiuon. Something in the nat> lire of political regeneration must precede annexation. The peculiarity of the Dominion Government which chietly all'ects its relations to this country is that, while in fact i)erfectly indejK'ndent of (ireat [Britain in all matters of internal and external policy, its treaty relations are negotiated by Groat Britain as a mere "go bet'.veen." In her diplomacy with the United States, Canada uses the British Hag as a screen behind which she violates treaty stipulations, and refuses to be bound even l)y those reciprocal relations of c^unmerciivl usage, of comity, ami of common humanity which characterize the conduct of civiliz(!d natious towani each other at the present day. Alter two years of most unsatisfactory corresjmndeiu'e Mr. liayard lost all ]>atieuce with the diplomatic farce of treating with Canada thntngli Great Britain. In a letter addressed to Sir Charles Tapper, under date of May 31, 1887, be said: It is evident that the comtnorcial iutorcoiirso Itotwcoii tlio inliabitdtits of Csinada and t.lioHe of tlio United States lias grown i?ito too vuHt proportions to l>e oxposeil niiuli loiif^er to this wordy triangular duol, aud mort* tlirect and reHpotisihh) inetliods "iioiilrt bo ri'sortefl to. I hold most confidently and sliall attempt to prove to this committee tliat by virtue of the superior uatural and acquired advantages wliich t lie United States possesses in regard to the tishcries, i!taiu. 1 sliall «Muleavoi' to sliow o this committee the practical bearings of the foregoing remarlcs, Irom the consideratiou of issues which liave arisen in the progress of events. AN IMPOKTANT DIKKKKEXCK WHICH KXISTS KKTWKKN THK KISCAI I'OWEllS OF THE UNITKI) STATICS COVKU.NMKNT iM) THK DOMINION OOVKUNMKNT. Mueli li<:ht is thrown upon the subject of ourCatuuliaii n^lationsliips by eonsidering tlie radical ditl't'reuce which exists between the fiscal jiuAcrs of the I'nited States and Canada and the mamierin which such ]) [>ages and its customs tarill" n? pages, a total of liKi pages; wliile the Canadian ''eastoms orders in eouHcil'' eoiii))rise KJi.' pages. All of these are ))rinted in Imoks of the same size and type. Here are the two books. [Siiowing them.| This amplitieation of ])owers, of cour.se, gives to the Dominion (lov- enniient iiiii)oitant advantages of a tactical nature in its iulercourse Mith the liiHed States. Forexamjile, l>y act of 18 .Congress ])laci'd piiM' logs on the free list. Tliis was manifestly an act in laA or of the miibiig interests of this ♦•ountry. But it. was at (Mice met by sin or- der in council ])lacing an export duty on logs, in order to pnUect the milling iiitei I'sts of Canada. The Canadian duty on logs is $2 ])er thousand and thcdovernor-Geu- eral, in council, is uuthori/.ed to increase it to $.'! per thousaiul at di»scre- tion. .Soil i'pi>ears that in our commei'cial intercourse with CauiKhv we are (tonllned to the use ot the right arm ol import ihities, while Cunaibi may use the right arm of import duties, the left arm of export duties, and also have recourse to the auxiliary powiu' of ''orders in council," which may 1 c regarded as a sort of kicking arrangement. This extra- orrovinces, consisting of Nova Scotia, I'rince Fa\- ward Island iiud .New I'rnnswick ; Second, Caiuula proper, Cxinsisiing of the Provinces «)f (^Juebec and Ontario J RELATIONS WITH CANADA. 8S9 iience ti'.v da Great iffs of have ist'nl Tliiid, Manitoba and tho Northweatern Territory j and Fourti], BritisU Colnmbia. Tliese inbabited arcaa, the maritime provinces excepted, are bounded (»ii tho north by a region of eternal froat, a vast American Siberia, and on the south by the United States. They have nataially slight com- mercial relations with each other, but geographically and commercially each is closely related to this country. Before the Dominion Govern' uieiit was organized, the several provinces were socially, commercially, and politically strangers to each other. Communication between them is now maintained, chiefly, through the agency of two railroads, tho Intercolonial and tho Canadian ]*aciHc, which subserve political as well :i.s commercial ends, f 4>rd Lansdowne, Iat« Governor-( ieneral of Ciin- iida, said, in 1885, "Confederation without the railway was not worth tlu' paper on which tlu^ Jiritish North American act was i)rinted." >,\'\vK)iiiMlland never joined the confederation, and, as the years roll by, she aiiparontly sees weightier reasons ibr keeping out of it. I I nng POPULATION. Tlie population of the Dominion ,8,'55 as aijfi'inst <)5,74 Provinces. : . Population 18AU. • Oiitnrio British folaniliia 156.6H 12i2, 277 Priuce Kdwiird Iftiund ;U«, 395 150, 390 107, 515 Tdil .Mauit(>l)a .. ..... 5, 0(5, 855 The estimated population of the State of New York at tht; present time is about r),G0(»,0()(), <»r nearly (3()0,00(> in excess of the total popula- tion of the Dominion of Canada. in a si)eech delivered in the Canadian })arliamont on the 14th of March, 1888, wSir Richard Cartwright estimate*! that there were then abont 1,000,000 persons of Canadian biith nt>w residing in the United Statt\s, and that three-fourths of the foreign immigrants into Canada (hiring a i)eriod of twenty years, or nearly 400,000, had crossed the line and settled in the UniuMl States. The statistician of the Canadian Dei)artment of Agriculture inibrms me that there are now about 78,0(^0 persons residing in Caiuulii who were born in the "United States. The tacetious remark that the best peoi)le in ('anada come to the United States and tiie wor:it people in the United States go to Canada appears to have a substantial basis of fact. About 9ii per cent, of the i)oi)ulation of the Dominion is situated east of Lake Superior. I'opidafcion in Ontario anSK omin- idii {jovcrnmcnt is about as mnch a coujmerciijl and transi)ortation cor- poration as a political corporatio'i. Tliis causes it to bo inherently ag grcssive toward American conmicrcial interests. y. CANAIMAN flOVKUNMKNT CANALS. Altouttlie time when the State of New York embarked in the work (»l' (•onstructinf]^ the Krie Canal, Canada began the construction of her xv>!tem of canals connecting Lake Eri«'. with ocean navigation at the port of Montreal. This was accomplished by the construction of the Wclhuul Ca.nal, which ovcrcoioes the fall between Lake Erie and Lake Ontario; and the system of St. Lawrence Kiver ('anals, wliich over- (•(•iiu's the rapids in the St. Lawrence River between Kingston and Montreal. Tlic governments of Canada and (rreat Britain have also had a direct interest in Canadian canals with reference to military objects. I refer especially to the Ottawa and Itideau canal system, which was con- structed between Montreal and Kingston, mainly for military purposes, ill view of the fact that the St. Lawrence Canal is too much exposed to an att;n!k from the United States. The canal system of Canada cost a little over 152,000,000, aud it is .still owned and o])erated by the Dominion (lovernment. The Welland and St. Liiwnuice ('anals, which form the most impor- tant part of these work.*, comitete with Ibe Erie Canal, and with the <';ist and west truidv lines «:f the United States. The cost of maintaining an;' op^'r.iting the canals of Catiada cotisid- erably exceeds the revenues derived from them. This is shown by the following table : Year ended June 30- 1SH7. 1N)9. Total. rociMpt.s. $;!.->;i, 111 37ti. 280 Expondituros. "^^^ Constmotlon. ^m. 709 TotHl. I .$1,87.^1 in $2, 357, 902 1, 0(-l>, 369 This clearly indicates that the canals of Canada, like those of the State of New York, arc oi)ciated in th > public interest, aud not as a source of revenue. , . . ■ . , CANAPIAN" GOVEKNMKNT UAIf.ROAnS. The Dominion Government owns and operates the Intercolonial T^ail- way sysNMu, the main line of which extends tVom Point Levis, opposite sMu'bcc, to lialifax. The total length of lines comjto.'^ing this s\ stem is i,;r»liiii!('s. its total cost on the.'JOth of.Iuue, ISST, was8l4,r>,0;j2. file vvoikiuge.\pen.s«».H of the system exceeded its gross receipts in 1887 ity the ,suin of *'j;i2,10G. The Jntercolonial is essentially a political railroad, conneciting the iiiiiritime Provinces with Ontario and (Quebec. Its construction was one of the essential comlitions of the British North Anieiican act, or so called ('anadian "constitution," by which tlie British Provinces were confederatetl under the Dominion Government. i i 892 RELATIONS WITH CANADA. THK CAKAPIAN PACIFIC RAILWAY. The close relation of interest existing between tlie Dominion Govein- nient aiul the Canadian Pacific Railway Conii)!iny constitntes, Jiowever, by tar the nioHt important fcatnro of the political relations sustained by Canada to the United States. In the annual report of the mijiiater of railways and canals, the Canadian Pacilic is <',lassed as a j^overnnn-nt railroad. The Canadian Paeilie Uaihvay with its connections east of Matta- wamkeajr, Me., extends across the continent from St. eJohn,New Ilrniis wick to Vancouver. It has a total niileaj;e of 4.0.^8 miles. Its eojistrne tion was an intejrral feature of the schenu? of confedenUion, wherel^\ the British North American Provinces wtire unit-«>d under the Dominion Government on the Jst of .Inly, 18(57. The total railroad mileage of Canada is ] 2,701, and may be classe( ('aua. How intinnitely the Canadian trans- jiortation system is related to the Canadian jwlitical system is evidenced by the fact that in r)rder to secure it the people of Canada have submitted to a bur'I.-n ofdebt proportionally cijual to the burden of dc^bt assumed by the people of this country in order to save the American Union. It is my 'inn belief that if the present administration of governmental affairs in ('anada should go uut of power, by the death of Sir John A. MacDonald or otherwise, any political party Avhich should attempt to rt'veisethis political transportation policy of the Dominion Goveinment would be unable to retain power for six months, so intiinately has ibis p(dicy \»ecome identiiicd with the conunercial and industrial interests of the peo])le, and interwoven into the very fabric of their governmental institutions. 'L'he public debt of Canada increased from $9;3,0(>0,000 in 1807, the year of confederation, to $235,107,04S November oO, 1880. This inci ease in the Dominion debt was due chieily to the construction of railroads since the Dominion Government was foinied in I8ti7. It is ditlicult for us even to estimate the force of the public sentinuuit which has created this great public- debt of Canada, or to measure its sif^uilieaiu'.eas an element of aggression ui)ou the commercial and trans- portation interests of this country. TIIK OIIARACTEB OF OUR RELATIONSilll'S OP TRANSPORTATION WITH CANADA. It aj)pears evident from what has just been said that when we come to consider the (pu'stion tjfour relationships of transportation with Can- ada we nuist renu'inber that weared«'aling not only with a government, lint with a great system of transpt>rtali(in backed u}) by that government and sharply c(unpetiug with the commercial and transportation interests RELATIONS WITH CANADA. 893 (»r tlii> FTiiif«Ml States, [ftlie Doniiiiioii of Canada were as completely «liv(H<;o»l liiMU theactuiil coiidiict ol'roiininMcial alVairs sis Ih the UnittMl Hliites, our Canadian ivlationsliipt* would be purely ])olitical relation- slii|)s, bur t!io diHiculty involvt'd in tbeca.se is that the United 8tatos Gnveinuieuu in its foreign policy is ingenuously political, while the for- ouiinion Goveninieut, from the eoinpulsioii (»f polit- ioai a?!d couinieicial forces and of tinaucuil obligation in transportation lines, is intt-nsely coujiuercial. This assumption by the Dominion Crov- erniiient of resimnsibility for tht) commercial success of the country of course Itrinji^s U> bear upon that p)\erunienta pressure the compulsive |i»ice of which wo can form no conception in this counti'y. The man- a.i^einent ot transport.itioii has, in fact, become a i)ublic function inter- woven into the social, political, and cumuiercial life of the people of Canada. r,y virtue of the fact that the Dominion Cuvernment, or rather the political party in power in Canada, has become r(\sponsible to the peo- ple, not oidy for tlte financial success of canals and railroads, l>nt also in a lar;;e dej^ree lor the commercial prosjterity of the country, that Gov- ernment is, from the very force of circumstances, driven to all those ctui- muii expedients commonly resorted to by competitors in commercial uiKlertakings. ^'o such rcsi»on8ibility attaches to the Government of tile I'nited States. The coercion of jmblic sentiment forces the Do- minion (lovernment to be commercially aggressive toward the United i>tates, and I am incIine(fT:o believe that it is l)y the vigorous prosecu- tion of such a line of policy that the political party now in power in (anada has so long held the reins of government. Ijvidently it is impossible for the Canadian Government to enter into ;m\ treaty agreement with the United States which would relieve it from ilie necessity of recourse to all these laetical and strategic expe- dients to which rival trunk lines everywhere compete and war with. eacii other. This is precisely the thing against which the Government ot the I'nited Staf«'S is now called upon to protect American interests, and this, as I apprehend the case, mainly defines the work devolving ui»on this (jommittee. The circumstancos and conditions Just described give a very peculiar character to our Canadian relationships and render it much more diffi- cult for us to enter into fair treaty arrangements with Canada than witli any nation on the globe. I the aggressive political and military cnaracter of the 4:janadtan pacific railway. The Canadian PaciQe Railway was conceived by the leaders of the )«)Iitical party v.-hich li;is been in power in Canada since July 1, ]S(>7, witli the exception of the interval of live years from 1.S73 to 187.S. Those genth-men clearly saw that the tendency of the tra<.it(iii(UM>t' tluH riiilway, tliat tho flint loadod train that invHseil over ir.sontim li'iixl li fiDia ocoau to ocean wan freighted witli iiiival stores belonjriiig to tlio inipuriul WAV (lopartuiciit, transrenod from Quebec to Vuucouvor. Ill speaking of the negotiations for a British subsidy in fiivor of the Canadian Pacitic steamer line to China and Japan, the [)resi«l(}iit of that railroad said in his annual report for 1887 : I'lii) imperial iutercHts involved in tbis ([ueution are no iiuportaut tliut there can be lifili' doubt ofa suti.st'actory rtisnlt. , That anticipation was realized. I'licsc facts clearly prove the [lolitical character of the Canadian J'acitic llaihvay and seem to raise the question as to whether the United States, or :i confederated British Empire is Anally to secure commercial sti|)rema(;y on this continent. The degreo of success already achieved by this gigantic Canadian uiiiler(aking seems to throw a new light upon the subject of the iuflu- ciiw of political forces upon the course of commercial movements. . I AID EXTENDED TO THE CANADIAN I'ACIFIO IIAILWAY BY THE DOMIN- ION GOVJOUNMENT. The Intercolonial liailway was built, and is still owned an,0()0,U(>(). From the beginning the Canadian Pacific Kaiiway Company has been the alter ego of the Ucmiinion Government in all matters touching its relations to the commercial, transportation, and navigation interests ol'ilu' United States. As a purely commercial enterprise the great transcontinental rail- road of Cananini, ouil HCfiirititH which thiil rnmiiaiifi him turn (iitihUd to Jloal (sioekaiitl l>(iii(ls\ ,t.- the remtil of the Domiu'DU tiiKirauIji auil tht Innd yraitt of 2r),(i()l),li0(> lu-icn of linid . ('null Miil»siili<'R as follows: (ii) Siil.Hidy of!C'-.'r>,(ll ; (/i) 711 inilcN of niilroad coiiMtiiutrd Ity thf Dominioii (ioscrniiuMit. ••oslin<{ .ijiiojlMX),! )()(), wliidi wis itr(W!iit«;d to tho Cjuiiulia?) i'riritic, CoiMpJiiiv .is a «:i ft, will) iiitrrcst to .hmo :)l), 1-i-:. (Sec I'lildic Accounts of Cjuiiidii for Iri,-^?) $()l,7liU,7f;5 (.'iJliiliil slock ori;j[i;i;illySlO(»,(H)0,()(»(), Imt rcdiic.-d lo JJ^.M.OOO.dttO, with a tlividfiKi of :? pi.r cont. j;uar;intifd for ton years. (S<'o Poor's Manual) (55,000,000 Dnrinj: tlio session of Parliament of 1S84 tlie Dominion (Jrovemnient antliori/eil a loan to the conii«any of $2i),H.S(),UHi, to h • paid as the work of constmetion eontinned, and for the i»iiriios(f of ox- pedirin;^ "onstrnerion. Of tins anionnt $i>,Hr<0,'J12 in seeniod liy liiri on t lie entire road and land grant snbjeet to the then • oMtstHiidin;^ land-,i;rant bonds; also jiovernnn-nti lionds to tho .iiiio:iiil of *.*U,(»liO,000. which were <-xclian<;ed for a like anionnt of I lie company's loan of ,*i;{.'i,(ifM),0()0, which had Ixcn i.vsned in the place of the aS'''''>,00(i,00(J of «n-iyinnl stock whieli had been retired. (See Hec. 4, act -JOJiiiy, IHB.')) 21>,8dO,i>PJ Bal.mce of ,|;:'m'),(»i((,(IOO loan, after (lednctinji; !t;viO."M)(t,()(iO plai-cd in tlie hands of tlie ;j;ovi'rnnieut, in order to seenre tlie $'20,00(),OUO boiids above montn)iu'y is,iit of thi^ Dominion 25, OOO.OitO IJotnlB, intiTi'sl j^narantied by the Dominion (or fifty years at :'i p< r cent., issne0,010. The various aiils received from the Dominion (lovcrument at tlu'ir])ai- vabu' was, therefore, $48,'.i!()7,JS0li in excess of the cost of the road, and 881,011.078 in excess of its lia- bilities. Even estimating that tlie aids received from the company re- alized to it only t)0 per cent, of their face valm>, the total value of sub- vention largely exceeded both the cost of the rotul and the preiseiit liabilities of the comin\ny. M CONCESSIONS AND FUANCULSES GRANTED TO THE CANADIAN rACIJ^IC RAILWAY COMPANY BY' TIIE DOMINION aoVKKN:\IKNT. The various concessions and fraiudiises conferred by the Dominion Government uiiou the Canadian racilie. Uailway Coniiiany are enumer- ated as roll(»ws : (ai Dire(!i gifis of money, land grant, and other privileges sviiich have become available as t.xAh ussela iu the procef'bes of fiuuliug aa before Stated, $105,UOO,OUU, ■• • KELATIONS WITH CANADA. 897 {!>) P.oiuls iind s(o(;k puaianticjd by (ho Dominion (lovcrnniout, as iM-luicstafnl, .S1HM)<»0,00(). !<■) Ilx^'iiiptioii lioiu luxation by Dominion luul Provincial CJovern- iiit Ills for all time. Ah tiie taxes of botli tlio Union Pacific- Jfajlway :iii(! llio SoatluTii Pacilii! (\)n)pany exceed $l,()(M),000a year (see Poor's Miiiiu.il) I as.siinie that the (Janadian Pacilic taxes, remitted, would ainoiiiit to at hjast $000,000 a year. {il) Ilcmis.sions of duties on rails and all imported material amounting to at I'list $7,0(M».0(M). (<) Protection ii<;ainst the construction of competing? lines for twenty yt.iix. The value of tliis (ton(!ession can not be estiniated. To an Aiiiciifiui line it woidd c«n»stilute the guaranty of a fair rate of interest oil Its co^t. (/■) 'flie Dominion (ioveiiiment has granted an annual subsidy of iilM(;,"(Mi :i yeiir to the i>orti(»n of the line of the. Canadian Pacific Ifail- \v;iy which extends across the. JStale of Maine, 'i'he obvious effect of this litie will be to divert American an,o( 10,000. If similar grants had bet u nnidc sixteen years ago to a i;iilr.>ad corporation in tlie United States their value to (lav would bo ovtr ■'?;-150,000,000. M Ulr now THE DOMINION CrOVERNMENT BY !?TATTTT0BY ENACTMENT AIDS TUi: (CANADIAN K.VILEOADS IN OOMPETINd Wrj'll THE RAILROADS Ol<' THE UNITED STATES. \\lulc the interstate commerce act of the United 8tatcs operates as a u'straint upon our railroads in their attempt to meet the competition of Canadian lines, the laws of Canada by s|)ecial statutory exemi)tion aid die railntads of that <*Mintry in their persistent elibrts to encroach upon Anieric'iu railroads. This tact is i-lcarly set forth i)y the Inter- state Commerce Gomuussion in its recently publisljecl third annual re- poit. iteferiing to the Canadian railroads the Commission says: i'licy !in' ))iactir;illy und^r no nstrictioiis iiiiposi'd l)y th<>ir own rttatute.sin respect to loM>; iuid sliort liaiil Irattic, Imt arc at lilieity to cli.-iri^c, IurIi rattss on iociil l)UKi- iji ^^. to indi'innify for looses on tliroiigli or JnO^rnational IxiHiness. Their niana<;(;r8 di'iiy Willi ln"^ti. The company, in lixing or rofjuiatinjj the toils to be dernandedand taken fii'- (III' tr.'iiiHportalion of woods shall, except in re,sp(iet to thron/ili tratlic to or from the I'liiled State's, adojit and conforni to any uniform clansilicatinn of freifjht whicli the s^dvernor in council, itn tin- report of ihciiiiniHter, from time to time])reMcribc8. ■ Skc. 'S,\2. No eonipauy. in tisinii I'n.v toll or rate, shall, under like oonditionN and < iiemiistaiices, iiiak«^ any utijii-;! or |)artialiiiscriniinati(mbpt ween different localities; bill no ili.-^eriniiiiatHni lietweeii localities, wliich t>y reason of coiupetition by water or iiiiway, it is necessary to make to secure tratlic, sliall be doonicd to be unjust or !>:ntial." I'liese enactnieuts give all traffic carried in competitiou with our carriers unlimited iV''edoiii. • • ■ 1 Mt . (Chairman, these statutory provisions of the Donn'nion Govern- iiieiii are part and ])arcel of a general line of jwlitical encroachment npon Auieiican iiif crests, (-mbraeing the outrageous denial of reciprocal Itiivilegc to ,'Vnierican fishing vessels, inhumanity to American tisher- nan autl wrecked American seamen in Canadian waters, the violations IW^^Kl^'.TIIlWP' * »' 898 T^ELATIONS WITH CANADA. i»l of treaty HtiiMihitioiis in the matter of iliscriiniiirttionH in tolls mid in I «'iitr:in<'«> irul clciiraiu'e tros, tlu>. oiiormons Nul)si«li/-inj2: of tlm CiiMadian I I'acitic kiiilwiiy iind its I'oimoctinjf iM'i'aii Kt«'5iinor linos for tlio ;Ut;(iii- I inonl of t'oninu^'cial and political objecitH ininncal to the conmiotcuil I and political inierests of the United States, the nnHUccessfiii ctlbrt I made )»y tlic Dondiiioii (lovcrnnient to refuse to be bound by ilic I terms of its own statutory stii)ulatiou8 refiardiufjj reciprocal larlt! I legiftilation, and the unsuecesHful ett'ort made in 1888 to refust* to I allow American railroads to engafi;*^ in the business of hanliuK Ciiua I (liau };Ood.s from one point in Canada to another point in Canada with- I out payment of duty, while (Canadian railroads areenjjaijed in the biisi I Tiess — an hundred times as };reat in mapnitudc — of hauling goods iidm I points in the I'liited States toother ])oints in tlie United States vitliout I paynjcnt of duty. .Tiu» facts in regard to these several causes of com- I plaint are hereinafter presented with 80ine degree of ])articularity. I THE UNITED STATES AN1> CANADIAN TRANSIT TRADE. In order to arrive at a (dear understanding of our Oamulian relalioii- ship nf conunerce and transportation, it is necessary to consider very carefully the ciicumstatice remaiked, in passion:, that the privilep's of the foreif^n transit trade are of vastly more importance to Canada than to the 1 iiifcd States, for the reason that the jj:reat seaports of the United .States froai .Maine to Florida are open all the year round, and are more acd'ssible to the ocean than is either Montreal nr (\)uehec. Even y t'ciry. Wt'stwnnl the «;«)iiiw«« of ciiipin' was tukjti},' its way with iiaix'tiious tread. xV lar;;e In-iyht (ralVic al oimh' Hpriinj; inio existence, and tlier*' arose an instant deannnl (or the pii v i lej^es of trans- l)ortation 'Mn bond" across Canada wiiliout iia.\nient of duty, l<'rntik- iin V'ieree was then I'residont of the United States. 'Jhe <|iH^ation wiis" raised as to \\helhtT American goods eonhl he loaded into a ford;,'!! railroad <'ar at Hnspmsioii liriilm' anun*->^ ^),012,'i:.l) Imports into (Junjula aiross tlio United States and from otlier foreijj;n countries '.. ir>, 910, 4(10 'I'ofcai ;iO, 922, 1)10 yOREIGX TRANSIT TUADK OF THE UNITED STATKS TIIROUail CANADA. Import^inlo tlip ITnited Slates throiifrb Caiiatl.i §3, ;U»4,r).ir) The value o|' exports from the (Jiuted States through (Janada tootlutr foreign countries cmii not be stated. The amount is comparatively small, however, in view of the fa(;t that the total vahui of exports from Montrciil during the year I88OMKSTJC TRANSIT TRADE f>F THE UNITED STATES THROUGH CANADA. This (niunot be stated, as no attempt has evtir been made to collect the statistics. The value of goods thus transported between diilereut points in th( United States across Canadian territory probably amounts to$100,U0b,UUUayear. ^•»|JggJ| RELATIONS WITFf CANADA. 901 Tli«' lorejjoiiig farts dearly iinlk-iitd that tlietlnifeil Htatt^H aiMK'anu- diiin tr;in«if trailo on the eiiMterii Hi«lo, of tlu* contiiit'iit wasllH'oiit- {.Muwili (it |M-<'iilJar iiiiriirul (*i>iitlitioiiH, and of eotiiiuenMnl oxi^eiirit'N comi'KHi lt» llio two roiMitiies. riUNiHlT TBADK LKCHHrATION AND TKKATY STirULATKJNrt. Horli luaiXibRM of the tratinit tradt^ lu*i<'iiilH'ton' described, and den- i;,'iiiil(Ml as " tlie toreij^ii Iraiisit trade" and "thi' domestic transit iijide," exisU'd IroMi the lime «)f their inception b.v virtue of adaiinis- hiiiivc discretion, and in tlie abhenci' <»r iiny specillc provision (»f law ,>aiictioiim;4: tlieiii, nntil Jiil.v -8, I8iHl ot' tlm IJiiiIimI Slatt"* wiiich iiitiy lio >)>i)riall,\ dtsijiiialcd by tlic Sfi notary of tlie Treasury, ami iltstiiicd lor iilaci"^ in tlio uiijariiit Drilish jivov- imc.s 'ir iiiiiviu;; at the. port of J'oiiit, I>alii I, IVxnn, or any titlicr |iorfc of tii« United SfaliH ivliicli may bf> Hii('<;ially (lo «'nt('r»'d at. tlnj<'ii.sf(jiii-hoiim>, and oinnrycd in iransif tlir'>n;:li tin' trrritory ot the Uniird Statos witlioiit i Im payment of (iiiiies, under «ncli rule-*, r.-nnlaiums, and condilionrt for tL» itrotoelioii uf the ri'veniie as tin- Secndary of tlio TieaMory may pFi .si;ril>e. 8pi'. *>. And lit' il fiirtlicr inattrd, That imporied floods, ^^anis, or mcreliandiiP in lioiid, or duty paid, and iirodnctH or inamifuolnreH of the liiired States, may, nitli tiie (oDKeiit of tlui proper authoritien ol tlio proviii<;i:n or repuldie. aforesaid, bo traim- porti^d fioiu onii jiort or phu o in the I'nitud Slates to aiiothi r jioil or place then in, tixrr tii(> territory of naid provineeH or r<'piil)lie. by tyieli routes, and under mieh rides, regulations and eonditiniis as flu* Snereiary of tlie TreaMiiy may preserilie ; and tlio S''|)iIn. wans, or iiierehaiidiHe, ho traiiHiiorted, shall npoii arrival in tho I'liited Slates fnini die proviiieos of ie[iiiblio aforesaid, bo treated in rp>;ard to the lialiilily lo, or exiiujilion from duty, or tax, as if the traii»portation li«d taken place entirely within the limits of the United States. S('cti(m 5 of tlie statute above quoted in terms Iejj:alizcd the " foreifjii tiaiisit trade," while Hcctiou (} as specilicall.v legalized tlio "domestit; tiiiiisit trade." Let it be observed tliat tins act was pass* d before the (Canadian Paciiic li;iilway was bej^'un, and that under tlie piovisioiis of tli«^ act the extension of the privile/ies of both blanches of the transit trade was tobt; dej)endent uiioii the discretion ol the ►Secretary of the Treasury. Let the fact also be noted that all the privile;,;cs of the "transit traile" secured by this sttitnte were pronijtti'd by territorial iiilerjeclioiis, and by the suspension of navigation on the 8t. Lawrence l)y ice, as already described, and that these natural coinUtions fully jiistilied the i^\ist,ence of this rcciiu nilfs, if^nlat ions, anil <• mditionss, floods, waros, .ir ini'i- cliiUidiso niii> lie lonvoyt'd in tninHil. witlniut th«^ jinynient of diitifH, from hucIi pos. sessions throngli tin' tt'iiiloiy of tbo Unjlrd Htateuftn- export fioni t bo said jjortsof the United States. It is fnrtluT iifjivcd tlnit, for the like period, floods, wares, or nicreliandise arriving; at any of tlif ports of Her Ilrit:"i;iic Alajes^fy'si possessions in North Anniiea tnid destined I'ortiie I'nittd States may lu- entend at tlie jiroper cnsto.n-lionbii anil cnn veyed in transit, williont ;lie paynn nt of dnties t1iron,L;h tin' said pussessionN, uiiiiu Hneli iides, and rej:cnlat ions, and ei-nditioiis lot Iho proieetion ot the revenne as ilu' governnients of the saitl possessions may from lime to time piescrilie; and, under iijii rules, regulations, and eoiMlitions, ^o'.uls, wares, or merchandise may he eonveyed in transit, without ])ayiiient of duties. tVoni the United f*tates tlironjih the said pe>;;iv. sioiis to otlior j'l.iees in the I'nited States, or for export Irom ports in the .sjiid 1)«>sm:, sions. By aji uuaccountiible blundei-, or tliron^h soiin' sort, of (lii)loiiiiUi(' legonlcmain, ihe piivi]e^;e ol" traiisportin;^ ouod.s iVoni oint in the Uuitetl States across Canaduui territory was ptranted to ('anadian railroads, by the words "tooihei places iu the United States:'' wl)ereas thv; re(;ii»roeal privilcj^e oftraiiv iwrting goods from one point in Canada to another in Canada acro}*s tiie United Stales was not irranted lo American raiboads, as should have been done in the first paragraph by tlie correspomling words " to other places in the said possessions, or," which words shonld have been inserted alter the words "without ])aynientof dnties," near th^^ end of the ]);!raorajili. The wholt^ transit trade existed and still exists in iim- tualilies of interest which lor all time could have had their proper ex- pression .4nd legal status iu reci])rocal legislation, and i have nevei'.yct been able to discover iuiy sensible reason for incrnorati'ig any such pro visions as the^e m the treaty of Washington, or in any other treat,v. And now allow lue to recti pitu late the leading facts hereinbefore stated vvbiich seem to have an important bearing ujmn issues which con- front the country at the present time. The "transit trade" was the chihl of administrative discn'tiou. Snbserjuently it Wiis sanctioned by the act of duly 2.S, 188G, and by Article XXIX of the Treaty of Wash- ington of J'SJl. All this w;is prompted and justilied by the parti(ui!ar circumstances of intei;jecting territory, by the disability under which the pio\inc('S fvf Quebec and Ontario labor of having no winter scii- ports, and by the advantages of competition wliich the St. lyawienco River route aflbrds to our Western and Northwestern States during tin,! season of niu'li i.iro- i'('at>. 1 1 be fore liicih con- was the ioned by )f Wasli- iirjieii!;ir er wiiich titer 8Cii- 'awj'eiice ii'iug the e case i.s eastern ileuc^ of m: coN- f'ore tlie country, ipleted. fore the le then Dual re- )wever, ncricai) id been ble the Canadian and British (Jovernments to divert American commerce from American ships, American sea-ports, and American tiansitortatiou linos, ;in(l to exploit British imperial confederation on tiiis coniiiicnt. jjiitwiti' tlie comph'tion of the l\icilic Railway to the Pacifu' (Jceau in tlic nioutli of May, ISSiJ, the then Secretary of the Treasury, ilon. Daii- icl Manning, ^'ranted to tlie Canadian l*aeii1(! Kail\vay (.'om])any the ))riviIo;;os of the transit trade, so that it was enabled at once to enter into competition with American lines for the transcontinental tratlic of the lIiiit(Hl Htates, and also, by the sheer force of British aixl Cana- dian govern me: .1 subsidy, to compete wiih Aineri<'an steamer tines, American sea- ports, and American railroads for our Asiatic commerce. it will be obserxed that under the provisions of the act of July 2S, bsdO, both tbeforeifjn and domestic transit trade were to be conlined to such routes as the Secretary of the Treasury might prescribe. lam awiMc of the fact that, under a familiar rule oicoustruction, a statute of ajjcnera! nature, although in its Ibrm i>erm!ssive, is iieverMielcss man- dittory upon the otllcers of thetJovernment char^^ed with itsadministra- fioii, and that se(;tioii (> of the act of July 28, iSi'S, may be regarorts, while the Canadian Pacilic Railway, with its J^)riti,sli steamerlineadjuncts, operates very strongly to turn American comiiu kh; from American sea-ports, a fact which has created great alarm on our .Pacific coast, and has led the convention of commercial and inhysi- cal an inivileges of the act of .Inly '28, l.SiUi, and of Article XXIX of the Treaty ol Washington, were all constructed as conimeicial highways, on commercial principles and to subserve merely commercial purposes, but, as before slmwn. the Canadian Pacili(5 Jtailway was con- structed by the tiuancial aids which il received from theDondnion (Jov- ernment and for the purpose of subserving pobtical objects distasteful to the United States and iniiniial to the interests of the peo])le of this (;oMn- try. All this is eviilcnced i)y the contribution of $2Jo,<»()0,U00 in gifts and other siibventioiis byi the Doudnion Government to the Canadian Pacific Pailway, by an ext'niptiou of tlie property of that company from taxatioji, a:nonnting to -■j(iuo,UiM> a year; by the remission (»f duties on rails and other materials, amounting to $7,()(>b,(»(H», upon the basis of the rates of duty charged in the I nited States; i)y piotectitui atlordcd to the Canadian Taititic liailway against the constructi(ui of comjieting lines, and by the subsidy b» the jjortion of that road across the State of Maine, amounting to -^ISOjOOl) a year. Seveulii. The Canadian Pacific Railway connects with a P>ritisli steamer line to Asia so heavily subsidized i)y the Canadian and l!ritish Governments as to threaten the nun of the American steamer liiu's ply- ing between San Francisco and ports in Asia, and to divert our Asiatic commerce from Annnican sea-ports ou the Pacilic to the Canadian IV citic Railway terminus at Van<;ouver. The Canadian and British (iov- eruments, with the idea of the Im[)eiial Confederation of ll.e Riitish Empire prominently invuiw, are now i>liinuing for the establishmeid;of it heavily subsidized British steamer line to Australia and New Zealand. This will undoubtedly break down the Ameiican line of steamers ]»ly- ing I>etween San Francisco and those islands unless Congress shall take vigorous nueasures for preventing such a disaster. The Canadian and British (Joveinments are also i)laniiing lor the establishment of a heavily subsidized transatlantic steamer line from St. John or Hali- fax to Liverpool. This line will teml to divert comnnu'ce from New York, Boston, and Poitlaud, Me. Jiut no su(;h schemes for divcuting commerce from American shifis, from American sea-ports, and from American transportation lines characterized the railroads which were au- RELATIONS WITH CANADA. 905 th()rize(>,000 in Pritish Columbia, and the wealrli ami commerce of that section of the United States are cor- res])oudiiigly greater than those of Canada, no such u)ilitary prepara- tion lias been made by our national Government on or near Paget Sound. As bctore stated, the first freiglit train which passed over the Canadian Pacilic upon its comi)letion was loadcf July 28, 18(5(i. and by the treaty of Washington. J'joni the foregoing statements it apitears that the United States and Canadian transit trade had its origin in mutual commercial needs; that it is based u])on the pliysical conformation of the two countries; that it eiiibiaees within itself, ajul ajiart from any other consideration, the ele- iiieiits of a 'true rccijirocity, ami that it has no necessary connection whatever with the tariff (juestion, or with any other question atte(!tiiig rlie relationshi])s existing bet ween the two countries. It is simply in the nature of the " right of way'' granted by each country across its territory to the citizens of the other. k STKTTGGLE MADE IJY Till; CA^'AI)rAN PAOIFFO FOll THE CONTIU)!. OF AX nil'OIJJ'ANT I'MfT OV THE IxNTEllNAL AND FOUEIGN COMMEHCE OF Tlll^ UiNLTED STATES. The (Canadian I'acitic IJuilway wasojien for tratlie in the month of .Tune, 1S>S(». Witli a phemtmeiial and,i(;ity tlie l)(>iiiiiiion (b)V( rinnent and tlie Canadian Pacific iiaih\;iy numagement assumed that the privileges of both The internal and the foreign transit trade t)f the United States a]»i)lied to transcontinental tralUc, notw ithstan, made t he extension of the "transit trade" subject to the discretion lodged with the iSteretary of the Treasury toueliing the proti'ction of the revcnues^froni customs, and the twenty-ninth article of the treaty of Washington in terms provided lor the transit tra | I'm i ww^ i u w —-MB 906 RKLATIONS WITH CANADA. i it'? tbt'. t ,5* / As oiir navigation l.iws tbrbitl that any foroign vosael sliall engjafrcin our doinesiic coninu'ice, it mils neoe.s.saiy that an Aiiu'rican line of sti'iiiiiers sLiOuUl tonn tlic connection with the Canadian I'acitic Kail- way, whereby that agency of the Dominion Government miglit be aliki tocom})ete with the transcontinental and eastern trunk lines of the, United States for the traflic of California, Ongon, anooling provision and the " long and short haul rule" of the iuterstate commerce act. The general manager of one of the American lines remarked that with iheni it was a questiou of " no traffic or no rates." TheTieasnry Department had given the whole case away in thebegiii- lung, ami about the same time tlie interstate commerce act took effci •^ Everything seemed to favor Canadian aggression. For nn)nths the mamigers of the American transcontinental railroads were in a demor- alized state, while Mr. Collingwood ►Sclireii)er, chief engine(»r and ma- ager of the goveriunent railways of Canada, exultingly rej)orted to his governnusnt, under date of Decend)er L*(i, ISST. tiiat "already notes of alavm have been sounded by the American press at the manner ia which the Canadian Pacific Railway is cuiting into the business oi" the transcontinental roads ol' the United States." Canadian subvention and i)rivilege anil the restrictive legislation of the Unitiul States wen* doing their work. The Canadian Pacilic Railroad, constructed nnunly by the gifts and aids of various sorts extended l>y the Canadian (rovernment. and backed uj) by that Government in evt^'y act of aggression upon Am^-rican in- terests, was lighting a set of American lines constructed mainly or en- tirely by i)rivare capital with large linancial obligations, and confronted by a jealous and somewhat unfriendly public sentiment in this (country toward railroads generally. Tlie whole situation seemed to ilusirate the irony of fate. Altor a while the Interstate Commerce Comniission ruled that l;h«', competition of the Canadian I'acitlc Railroad is a caus(^ for dt- l)arture from the " long and short haul rule." This atforded relief to the transcontinental railroads, bn.t greater relief t6 the producing' in, the Canadian Pacilic Jiailway Company. This constitutes to- day the great emergent ipiestion of the American railroad problem. KELATIONS WITH CANADA. 907 For TTiiiTiy months a war of rates continued between the Canadian Pacitic and tiie American line.^, and tlie situation to day is in the nature of an armistice. Piactically the railroads have been left to fight their own battles. The plan adopted for keeping; the peace is that of dif- ferential rates. By this arranjjement tin; Canadian PaH .12 1 2.00 .10 1.75- .10 j Mcrcbantlidi), Claoa: A. J!. (J . I). E. Direct Cana- Aiiieri- flifin can Pacitic route. route. $1.82 $1.90 1.70 1.02 ! 1.35 1.2« 1.20 1. 1.5 1.10 1.05 Differ, ential. $0 08 .08 .07 .05 .05 The discrimination in passenger tratlic is illustrated by the following statement quoted from printed schedule now (Dec. 26, 1889) in force: Bates from St. Paul, Minn., to Portland, Oregon, Class. Via Xi.rtlieiii I'acitic. Via Caiindiau I'acilio. I.iniitpil : Fii Ht class $60 35 $50 30 Setoud c1h8» The agreement as to rates just described applies oidy to transcon- tineiitial traffic, the eastern out {)fKsrs of which are St. Paul, Milwaukee, (Chicago, St. Louis, and New Orleans. Through rates are quoted be- t\V(\en Atlantic and Pacific coast citit'S, l)ut there is no supervision over such traffic such as that exercised by the Transcontinental Association over tratHc west of Chicago and St. Louis. The Canadian Pacific, in its tigiit with the American transcontinental lines, is now securing a large share of the transcontinental trallic, i. c, traffic between the Pacific coast, and a line of whicdi the principal east- ern points are St. Paul, Milwaidiee, Chicago, St. Louis, and New Or- leans. 1 am informed that in the year 1889 their share was about 39 j)er cent. Besides this there is a traffic ow.t which neither the Transcontinental Railway Association nor any other American railway organization ap- peals to (jxercise any vsort of control, and winch is not included in the percentage just stated. I refer to the direct traffic between points in the Atlantic sea-board States and China and .lapan. The following tabh'.s exhibit, respectively, the kinds and weights of commodities exported fronr the Atlantic seaboard States to China and ■i". |i| I#, ■mLi 908 RELATIONS WITH CANADA. Japan, via British Coliiinbiii, by the Caiiadiim I'acitic Railway, and its heavily subsidized JJritiHh st« -nier line across the I'aeilie Oecun. also the kinds and weights of couiuiodiries inijiorted into the United Slates from Cliina and Japan, thronyh British America, over the Canadian Pacific Railway. t i? Kinds and xceinhts of commodUien, the jiroduciion of the Cnited Stalex, fxpor led from ihe I'nitvd StalcH t!iroii7 4, (560, 1(>8 •27,41ver wire Ciilii>n« Cream of tiiiiar Crcsiii l)r\ -ofids, not spcciflert !)ni '.'.-.. not '(leeitiwl El>Miiie, lixtiires Fill works Gas fixtures Giusenir (rlassw-.re He»\-lii;lii.s for locomotives " !»^' ■ '.'. t>rtilixera 11 U .c i.. . (i; :'.ve .springs not Rpecitiert V ' . -TRsses , Sonli ■> 'i'vi'ewritera Wire roj»e FcundK. r 40 i' 310 i; 40. ,'■.88 ;; 4,007 ■' 4,140 ji 3, Hi-.' !i 3U0 i; 1.25:; I 2,801 i' 19,070 ' 11, 750, .'ill* i 8i;i I! .'•.04 11,. lot 1 8,080 ;: 106,451 ; 1,400 2,119 39,033 ! 100 ; 4.'')0 ■! 182,780 ! 9,762 I 301 13, 111 470 328, 038 1,819 3,603 200 20, 040 Lamps I-i'iitlier beltni;' Mica .Milk, I oiidensed Meichjinilisi' not specifleil Mi.^siunary <;ooils -Musiciil iii.struments : Ortans I'iaiio-i Oils, liiliiicalini; Oils ,!iid (laiul.s P.iper J'ei.eilH of lead Personal etle< ts lMiiPiii>'_'ra|)lis I'liuli.i;! ajihlt goods rietiiies Suljiliiir Silk, raw .. Skates, roller T.a Weight. 'I'eleiirapbic wire ... robaeeo (;i'.;arctto« Till ware Varnish Wood maiiufactures Boat One show-ca.se Wax-candle stock Pounds. 410 1,71,1 «5 l,8!!fi 5, 4li0 70, 41)0 2,7vo 1, (l.iO. 18, Olfi l.lftO mo 8«1 12. Oil.'; a, 100 7H no 274 2, (>n:i 37. 700 m 3, 4:;o 7a,! 3, 70'J 1,531 1,7J4 2, 340 7,786 12,831,091 *■ No weight given. DELATIONS WTTTT CANADA. 909 I'ointds. 1.'', r.?) 1, ."US U't, (ilMt 00 5;!, (i;-.;) 1,896 S, 408 71). KiU 2,720 1, 050. laolR 1. !,')« 100 (■Ml 12. <■:!.■; 1!, 100 7il no 274 2, (i02 :!7. 700 m 3, 4'JO ■ 75.! 8, 792 Jl,531 1,754 2,340 (') 7,786 Eiiidn niid nriiihln of vommoditicH imported into the Uniled States from China and Japan tliidicjh Urilixit Caliiiiihia ria the (Janadinii Pacific llaihvaii durintj the calendar yiar If'^r^'diiil the riercii iihuilhs eiidiiig Xonmher ;'i(l, l.'^r-'.*. [i'rom oliii'iiil n ports ol' the V. ,S. Iiisjioftor of cimtoins at Vanooiivor, Rriiish (^ulniubia,] Ci'iiiMiodiltoH. 1888. 1 Poundg. Tea 14, 087,027 liirfi 21f!,;)8r) ]i:i.\ sillc Cmiiis llitliiij; Straw liriiiil K!ii\ lll'i'f l':i|"'' "Ml-.! , Silk Uil,-!C Fireworks Silk ijinuls J;i|itin wai'c IVrHoiiul etlVuts 500, Wfl MO, ;!74 4, OaO 180 Klovon I lIlOlltllHof I 1889. I 1 'minds, I 8, t)i'0,550 i 3,401,382 700,701 ! ;)01,277 , :iOi), 012 I 100, t>:,h ! 8;t, 370 37, (i]0 \ 27, 1120 10,777 1 10,.S!)1 ; 7, 387 I 7, 350 j ConiiiiiidilioH. 18C8. Poundg. ■I- BnTiiboo Silk llOMS I'orcclHiii Aiiiiiiiil skills Alt jiooils f iroooiies Lily liulbs Ivories Men li iiidiso (liot otlier- •Nv iso (ieHcnboil ) I 1,00,"), 370 16,400 107,0)0 19. 250 180 j Kb'von mouths of 188y. Poundn. ti, 420 3, 91>2 748 tiM) 160 644,411 Tot«l I 10,877,427 14, 407, !i33 The (|ii;iiitit.v of cotton jjroods sliii)i)P(l from the United States to China mill ,);i|)an by the Ciinailiiin Pacitie ronle ai)iiears to have constituted 4.S )iei cent, of our total exports of sucli goods to those countries dur- ing tlie year ended June 30, ISSO. The tjuaiitity ol" tea iniportj'd by this route during the calendar year 1888 C(»n.stituted nearly HO [»er t;ent. of the total inii)ortsof tea into the United States froni Ohijni and Japan during the tiscal year ended June 30, 1889. The ])recise question wliich confronts Congress and the country is: Shall a ioreign railroad built by a foreign government and a subsidized Kiitifsh steamer line, established in connection with that railroad for commercial and political puri)oses iniuiical to the United States, be per- mitted to divert Amei i(!an (toMimerce from American vessels, Americar i<('a ports, and Anieiican Iransportation lines, and if not, what measures t>Iiall be adopted for the protection of such American interests'? I.KGALirv OF THH AKK.ANftKMENTS UNDER WHTOn TUV. PRIVILEGES OF THE "TKAIs'SIT TKAJ)E" UAVE UEEN EXTENDED TO TUE PACIFIC OCEAN. The legality of the arrangement whereby the privileges of the domestic transit trade have been secured by the Canadian Pacific Iv'aihva.v (Company is subject to serious doubt. Such privileges have bct'ii s(>cured by forniii;g a coniu'ction with an American steamer line lil.viiig between Vancouver and ports in the United States as far south as Sail Diego, Cal. Tlje aln-ogation of Article XXX of the Treaty of Washington denied this pri\il(.'ge to foreign vessels. The connec- tion made by the Canadian Pacific with an American steamer line is, however, (puistionable as to its legality. Our navigation laws confine the domestic carrying trade of the United States exclusively to Ameri- cnii vessels. Obviously an American vessel could not take a cargo of ditmestic goods from San Fi-aiiciscio to V^dparaiso, Chili, and there ship tiicm by a foreign vessel to Ncnv York, but American vessels are carry- ing goods from San Franrisco to Vancouver, British Columbia, there to be shipped to New York by the Canadian Pacific and its eastern raihoad connections under the conditions much less favorable to the protectiou of tU^ reveuues tnom customs than in the former case. It will U ;f i u n ;;i ■": i 910 EELATTONS WITH CANADA. hv easy for tlio coirniiitt*'*' to prociiro an opinion from tho law ollicfvs of llu' (rONornincnt upon iliis >sul»jt5et, and I tliercfoio k-avc tJjc nialter Willi a siini)le exi)n'8sion of niy views in logartl to it. There is, however, a feature, of the foreign traiisir tnuh^ thron^'h Vic- toria wliich ai)pears to be openl.y ami lhi^rimtl.v in violation oi' botli the letter ami spirit of the law. Our existing laws eoncernin^ the transpoitution of dutiable ftoods from sea-ports of the United States to interior points in the United States, for examjile, im))orted goods from iSan I'raneiseo to Chicago, refpiire that a consular invoice ol\siicli goods shall be delivered to tlie customs oHicer ac San Francisco for ex- amination : that entry of the goods shall bo made at that port; that the goods .shall be sliii>ped under a transportation bond for the s(^<'mit.v of the duties; that the railroads over whieli the transportation takes plficc shall also be bonded, and that the oars in which they are carried shall l)e sealed. But at the present time foreign goods to be shipp(Hl east to points in the United States are received by an insjiector of customs of tJie district of Paget Sound, who, as I aui informed, has been made a cou- sular agent of the State Department. Ih^ simply certitics to manil'ivsts of American goods, and forwards them without examinatiou or certify- ing to the invoices, and without bonding the goods. The whole pro- ceeding appears to be unwarranted by our la^'. The Canadian I'ai'itic, being a foreign corporation, can not execute a boiul to the IJnitecl States tor the faithful performaiua'. of any service whatever. So witli- out any authority of law, and by what a[)pears to be a uuinifest abro- gation of the law, Vancouver is exempted from important requirements whi(;h apply to San Francisco. Thus the administrative brane.h of our Government is actually aiding the great politico-military railroad of Canada in its work of turiung commerce from Anun-ican shijts, from American sea-ports, and from American transi)urtatiou lines by the sheer force of Canadian and liritish subsidy, 1 hesitate not to charac- terize this discrimination against an American seaport as disgraceful to the Government of the United States, aud a matter which calls for im- mediate correction. TEA NS- ATLANTIC AND TRANS-PACIFIC KTEAMER LINE CONNECTIONS OF THE CANADIAN PACIFIC RAILWAY. I'!* ?. Soon after the completion of the Canadian Pacitic Railway in 18SG, a line of steameis was established between Vancouver, r>rilis!i Columbia, and China and .lapau. Stejis IniA e also been taken for the establishnunt of a British steamer line from Vancouver to Australia and New Zealand, and another Britisli steamer line irora St. John, New^ BrunswicU, and Quebec to Liverpool. The ]>rovisions of huv for the <\'Jtablisli- mentof the British lines just mentioned are embraced in the foiluwjiig act of the Dominion Government passed at its session of 1S89 : AN A(,'T lolating to ocean stoatnrfiip subsidieB. Her Majesty, by and with the ndcice and consent of tho senate and house of oommoiia oj Canada, enacts an follows: (1) Tlio governor in council may grant to any individual or company asnlisidynoi excccdiiig ilwi wuni of tvvc,ntv-liv<> tlioiiKiind |iouiids stt^rling (u-r jinnnni, lo t\»Hisi in CHtal>liwliiii^r an ciiVctivc! fialiiightly stoaniKliip siM-vic!^ hctwci'ii Briti,s1i(jMluinl»ia and the Australian <'<)l()hi(?s and New Zealand, or sncli proiiorrion thcn'oian is decided oi; by the governor in i onnoil to ashist in estiiMi-'-ldng a monthly .service with tho HJiid ccaintrivs, huoIj sub.-iidy to b -gratiUid for sneii term ol" year.i, not excee(iing tou, auil on Huuh conditiouH as liie governor iu couuci] considers oxpccliont. J t' KELATTONS WITH CANAT>A. 911 (2) Tilt' u^vfnior ill council niiiv ^rjitil to ,in,v itir1ivi*1iial or company, to wlioiii tlicrn is i;r:iiiti'(! Iiy tin! (inv(l, a hiilf-idN Mill cxi'ciMliii^ tJK^ HiiMi (if lif'tct'ii MioiiMiiiil |i(>Mn(ls sUM'liiio |it;r aiiiiiiiii, lor a iiKUiililv Mlciiiiishiii NtM\ i('o, or a suliHidy not oxtuM^diiij; titir miiiii oI' twenty-live tlioii- s iiiil ]Miiiii(l:-i ^t«'i liii;^ |u'r iiiiiiiiin, Tor a torlui^litly HteaiiiHlii|i .serviee, lielween HritiHh (.Oiiiinliiii and China and Japan, sindi HnliMJdy to he granted (or miicIi lerni ranlM to niicIi imliviiinal i>r company a suhhidy ol' not Icmh than I'orty-tive thousand poundM Mti less llian Hcveiitylivc T .,.*nd poiuulH sliMliin:' per annum for the f'ntiiinliliy service almve incritioned. (.1) The ;;iiveiii(ir in coiineii may enter into a contract for a term not oxceedinft ten yeiirs « illi any indivuhial or <'ompnny, for tlie performance of a fast \\eelni'h port, on Hiuh terni.s and conditinu.s of to |he carria^^c of mails and olJierwiso iin the jjiivernor in couneii tlcenis cx[teUiunt, for a suh.sidy not exceeding the sum of live hundred thounatid doUarH a year, Tliis iict provides for the estiihlisliiiMMif of the following British lines of steamers : First. A fortniftlitl.v litie from Vancouver to Australia and New Zea- land, with a Canadian subsidy of $125,0(10 a year; cHorts being* made for •!(' "iiring an additional subsidv Ironi Australia and New Zealand ; S'ooiid. A line I'roni \'am;ouver to ('hiiia and Japan, with a subsidy ■■ of *.iOO,t) I'acillc coast, and transportin;: it to lOuropean' markets .' AVliy should wf object to their Kubsidizm;,' lines to carry the produce of our country more cheaply to forei«;n iiuir kets than our own railroads and slcaniship lines can do it. The Wrj'M'.ss. Senator, 1 will answer that ji'cncially in tliis way: it is a question before this conunittce and before C!nn};res8 an., thecountiy for consideration as to whether that little (. 'an idian (lovernnient, in am- nt'cliori with (jicat I'ritain, shall, l)y the power of subvention, divert tlie commerce of the United States trom (air own transportation lines and from our own seai)orts. as well as from our ow n shii)s, if w(^ are ^n- in^ to build sliips; whether it will i)ay ud to allow (»ur own throats to be cut. Senator DoLrii. What do you say as to the prodiu-ersof these luod- ucts i? At'? they not beiu'fitcd by the cheaper tians]»ortation afforded by the Canadian lines / The Witness. Tliere may l)c such advatita;;!' to the producer, bur ir strikes tne as beinij deirimental j^'enerally to the public interest and to us as a nation, in view of oui' oblif^ation to nuiintain and prote(!t the various interests of the country. It would, in my opinion, be disj; race- fid to allow such a state of alfairs. Senator DnLni. Vour tirst i>roposition is that it injures our owa railroads f The Witness. Our own railroads and sea ports. Senator Doj.tii. That it would l)uild up the merchant marine nf Great Britain and juevent the building up. of our own. But you kudw the interests of tlie [troducei' are generally supposed to be antagonistic to those of the transportation companies i Tlie Wi'j NEs.s. I know that i(h^a is entertained. That has been an idea which has j»revailed on the Pacilie. coast and in your own Stale. and you know rlie extent of public, sentimeiit here and there on tlmt subject. But 1 hold that when it comes to a clean-cut issue of foreign p)verninent,d aji^ression upon American interests, we ought to present an unbroken Iront against such aggression. Just such i>. case now ci»n fronts US. » ACTION- OF Tini COMMi:i?CIAL AIS'D INDUSTRIAL UODIES OF THE PA- OIFIO COAST [N UEGAlll) TO OANADIAN rAGlFlO RAILWAY K-V CROACHMENT. The i)eople ol' the I^u'ific coast at last appear to be awalce to the dan gers of J'acitic Bailway cncroacliment. A resolution \^as unanimo'i>ly adopted by the Chamber of Commerce of San Francisco on the 2;>d ot July IksI, inviting the commorcial and industrial bodi«'s of the Tacitic coast to meet in nlerence at San Francisco mainly for the pnipose of considering encroachment made upon the maritime, commercial, and transportation inteiests of that section of the conidry by means of the enormous snbventi(ms granted by the Canadian Government to the Pa citic liidlway, the special Canadian legislation favoring such encroach- ment, and the subsidies granted by the Canadian and British Govern- ments to ocean steamer lines, which are threatening the destruction of RELATTONfl WITH CAXADA. 913 Aiii'ri»'n" Htcani niivijjution on tlio PiKJiflc (>(5ean uiid tlie divcrHion of lr;i(l<^ fVoiii I'acillc coast portH. Tli.it ('oiili'niK'C was held iit San FrjUKM.sco on the L'9th and 30tli of Jiiiy last. In my opinion, it was one of the most important asyoni- MiifTcs hold in (hi.s country (]urin^' the last twenty-tive yeans. Kefer- riiiu H) the V, iioh^ scheme oi' r.ritish and ('anadian suhvention, tlu; report of I la'- conl'erenco declares that — With snili Hiit'ciiil a(ivuiitiijj;t"s the Ciiiiuliim Pacific niui .ilTord to quote ratrn which must (Irivt^ tlio Aincrioiin .strainer IIijoh out of tho China tnwlt;, and indict an alnitrnt irn|>ii;ilili' injury upon 8aii Fiamusoo. 'ihe r»'port of the conference also predicts the destruction of the Aniericnn steamer lines now running,' on the Pacific Ocean to Australia, Nl'W Zealand, (he Hawaiian Ishmds, the. I'iji, and Samoan iMiaiidvS, and to Mi'xico and(;»'ntial AnnTica by J'ritish subsidized steamer lities tuiiuiii;'- part of a j;eneral stiheuie for capturing- the commerce of the sc.is unless the lTni1ef war, and tOva\(>id warfare with Great IJrita'a iu that part of the world, Tlie evident <>hjoct of the Esqiumault vorks is to hold tho conijiieririal vantaj^e of piotected and aoj;res8ive transportation lines "across llritish North Anterica, connecting Liverpool with China and and .lapan. In an editorial notice of tho assembling of the commercial eonfer- eii<:eiU Sjmi I'^rancisco, the Kvening Bulletin of that city stated the mer- iis of liie whole case in a.single paragraph, as follows; lUietly stated, all tljo (jnesfions, to be fonsitlored may bo reyolved iu tliis one: ^\li;it powci' is to have tlic Lomniorcial sn))rpruacyou that part of the PacificOcean b'liderinj,' tliti wt'steni side of North Ainorioaf This summarizes the whole case whi(;h now demands consideration by tlie Filtytirst Congress of the United States. Co[»ies t)f the proceedings and resolves of tlie San Francisco confer- eiKic were sent to each Senator and Be^jresentative from the Faoilio co.ist, with the request that they would use every consistent endeavor to iiliuc the matters hereinbefore mentioned before Congress. 25552 58 a I 11 914 RELATIONS WITH CANADA. TnK MKNACR OF THE CANADIAN PAfMI'IO RAILWAY COMPANY AM. TIIK I'O.MiMhKriAI. INTKUKWTS OF THK 8TATK OP MAINK A}ID Till; MKASIUK NOW I(1U'"C)KK TIIF, HENATE FOR I'llKVKNTINU THK THRKAT- ENIN(i DAMiKi:. • It liaa luM'ii tlic InnKMjt of Mi<< people of Canad;! for more tliaii a liiUMlrcil yoarstliiit the kccoikI aiticU' «>! tl)*' liraty of ihmcc coiicIiiiIimI Willi (Iroat Hritaiii at J'aris ScpteinlMM' ;.{, 1T'.>3, and hearin;; tlic liotuticd iiainoN »il" iloliii Adams, iW'iiiamiii l'"i.nd;Iiii, ami .J(»liii .lay, waw not so drawn as to Miclndo tlu^ wludo of the State oi' Maine in the I'liti.sh ii(»rth Amerifian ])(>ssessions. In ti nieasiiie, however, this assnined niist'oitnne was overcome i)y the privileires of tlie transit trade accoidt'd to the (Irand Trniik l\ail\v;iy, privile^'es which, as I have attempted to show, iiave been niiitnaliy lien eficial to the eoinmercial interests of botli conntries, and I am bound (i» say have been exorcised by the (Ir-uid TninU Kailwn.\ (,'onipany in an lionorableaiid just manner. Assumin;;, apjiareiitly, tliat if one Catia- ilian laih'oad eonhl do iier so niudi yood, twoCanadian liiihoads iniL,!! do her twice a< mnch vi'ood, the State of Abiine has alh»wed the Cana- this a;.j|4r<'.sHive Canadiai) lino, iuiil to restrain our Anieri(!aii rjulroads even from a fr(M' cniripjtitiou wiLli it. This is shown in the iicular of the Interstiite ('ouiinereo Coinniission ol" Mareli L'.'i, 1S.S!>. This cinMihir re(piiies that the i-ail- roads of this c(Uintrv must accept their proportion ol thronjufh export rates t<» or fi(uu points Ix-youd the seji, as tlieir inland ihtmi'slie lateoii tralli and our rest rictive legislation and adverse arts, and to i>romote tlie ]»i()speriiy of Canadian seaports. It is nut at all surprising;, theiclore, that under this adverse condition ofaHairs the State of Maine should be sonuMvliut alaiiued at the threat- (■!ipd di\ersion of commerce from her chief sea-port, or thatj Senator Jlale of that State shoidd have presented Senate bill 515, to set limits to tiie powers other enerjijetie foreijifu invader. AVithout attemptiufT any elaborate exegesis upon the provk^ions of that lii'.I I will say that it pro\ ides — First. 'f!mt western produce shipped om^e throuj^h Canada, say at 8anlt St.e. Marie or Detroit, if bound to Euroi)'.i by the Canadian Tacilio route across the State of Maine, shall be regartled as dutiable when it; reaches the western border of Maine. Second. It i)roposes to char;;e duties twice on all goods imported iiito the Tlniteil States over this route if such goods shall cross the ter- rilory of the Cnited States more t!mn om-e. Third. Ft provides that all goods imported into Canada from foreiga conntjies or ex[)orte,d from Canada to foreign countries over this route, which shall cross the territory ot the United States luore than once, sliail be dutiabhi. I commerul the far-seeing and patriotic purjioso of the Senator from Maine, and hope his bill may rc(u;ive the consideration which it deserves ill Congress. TnE P0SSI7JTI,1TY OF CANADIAN RETALIATION. The question has been suggested as to the elfect which the suspen- sion or pro|ier i-egulation of the privileges of the transit tratle on tlio we;i|'rn ;:a'do of the continent, and other measures lor the protection of American rights and interests, might have upon American interests iu c»M- the Canadian Crovernment should see fit to retaliate by curtailing tin priviU'gesof the transit trade on the eastern side of ^le continent. Nothing could be more absurd than to apprehemi any danger of this >e tnin.sportation of Cmadim goods in bond mid tree of duty over the subsidized Canadian Tacitic. line across the .^tate of Maine, or should forbid the transporta- tion of goods across the tenitory of the United JStates through tiie ports of New York, Boston, and I*ort!and, Me,, in the cmiduct of the foreign commerce of Caiiada, esj>ecially during the winter months, or should forbid the carriage of American me.rcluunlise from one ])oint in the United States to another i)oint in I lie United States across the in- terjecting territory of the Provinces of Ontario and (»>uelH'C, except upon j)a>uientof duty, sncli action would wieck the coinniercial, industrial, .ind transportation interi'sts of Canadaand at once disp«d the cherished race of any projecting head- lands, is commerce and it is tiavigation, and no bling over the language of treaties nor tergiversation of tion acro.ss our territory without pa.Mnent of duty. That amounted during the year ended Jum> 30, 1880, to Dearly .S2i,0(l(),(H)(), but (.ianada refuses to allow to Ameri.aii fisher- nan tbe, comi)aratively small jnivilege of shipping fish across her ter- ritory f^e(^ of duty, althougli obviously bound to do so by the provis- ions of Article XXIX of tlie Treaty of Washington. Second. Under our wan'honsing laws the ])rivilege is freely accorded to tlic citizens of Canada and of Great L^ritain to enter goods of every sort and description at »)Ui- sea])orts, and there to hold them as long as they may choose with the |)rivilege of exporting them at any lime to a foreign ecuntry, without i»ayment of duty in this country, but (lanada reluses even to allov/ one Americnn vessel to lie alongside of another in her jiorts and there to tran.s.^hip a cargo of (isli, even though such ti.sh becaught in the ocean far beyond any jjretended jurisdiction of the Dominion or British Governments. Dry ami salted Cainidian fish in l)ond an? sliip])ed in considerable quantities to American ports, tlieuei^ to be exported to foreign countries free, of duty, butnota |>ound ot American iish is allowed a similar privilege in ("anadian |)orts. The value of foreign lisli thus exj)orted I'lom the I'nited States during the i^car I'lided June 30, IRS\), was about .*U5i.M>00. Tliird. The ve'sseis ot threat llritain and of Canada umy freely j)ur- eliasc in our jiorts food and ship-stores of every sort or description in the open markets. 'J'iiis piivilege is freely acrcorded to (ianadian fish- ing vessels, which visit our i»orts to a greater extent than American lishiiig vessels visit Canadian {.orta. jfo nation which pretends to lie civili/ed — excei)t ("anada — doJiies to the: vessels of other nations this pri\ilegc. Tile Dominion ot Canada alone absolutely refuses to allow AimMican fishing vessels the right to purcJmse in her ports food, bait, ice, seines, lines, and all other supplies and outfits, uulesis that right is jmrtdjased by ca.sh payment or by i)iivilege for v.hich she will not and can no!^ render an eijuivalent. Fourth. The Coiled States and all oiler nations pretending to be civilized — exeejit Caiiada— allow t.he vessels of other nations to ship crews or i»art of crews at jtleasure in their ports, but the Dominiou (.bivernment denies this privilege to Annnicaii fishing vessids. Fifth. In ease a IJritish or CJanadian fishing or other vessel is dis- abled at sea and jnits into one of our ports tor rei»airs, she may there sell her cargo or unload it and take, it on board again witlunit incur- ring duties ui)on it, and she may also liave all necessary repairs done us freely as an xVuicrican vessel, but if an AuiLrican fisluuij vessel 918 RELATIONS WlTir CANADA. i I I wilb a load of fish caujibt oOO miles out at sea comes into a Oiinadiau l)ort in distress, slie is denied every one of tliese privile{j:es. Under the j)reseiit modus vircndi tliese privileges are in part secured by a license (eo of $1,50. This is as absurd and as open a violation of tlie ri{;bts of navii^ation as were tbo sound dues fortnerly exacted by Denmark', or the tribute levied upon tbe ships of otlier nations by the Aljj;erine government, a piracy which the United Stales broke up in 1812. Only last S«q>tend)er the master of the schooner Loring B. lias- ketl, of Gloucester, .Mass., put into Louisburgh, Cape Breton, in distress. He had lost bis sails. A new set of sails was sent to him from Glou- cester to Sydney, Uape Breton. The collector at that port telegraphed the Canadian commissioner of customs at Ottawa, asking what iio should do about it. This reply came back : \. The CoiXECTDU of Customs, Syibiey: Foreign lisliing vessels wiiliont license can Jiot have sails now in bond, nor any oilier vestid have them without payuieut of duty. I. Johnson. The meaning of tins is that the sails sent to this American vessel would be confiscated if she was not licMnsed under the modus vivendi. In other words, the Dominion Government declared that this vessel shall pay tribute for a privilege which the Uiiited States freely accords to all Canadian vessels, and wliich the humane impulses of the civilized and even l)alf-civilizf,Ml world accords to distressed mariners generally, Another A^essel, the .1/. /S\ Baftfon, a f«'.w months ago arrived at Hali- fax in di.stress and was obliged to unload her catch, which she did, en- tering them at the custom-house and paying duty ui)on them; and for this oll'ense Mr. Ross, collector of customs at that port, was summarily remi)vet the rights of commitn humanity to American fishing ves- sels the Hon. Daniel Manning, Secretary of the Treasury, in an otiicial lettei' dated Febiiiary 5, 1887, characterized it as " an aitt of biirbarisnv tit only for savages," # # # " as eontem[)tible and odious as for a Government coiuinetinga naval war to lire, in these days, on a hospital ship atiested by luir color and thig and lilleil exclusively with the sick, wounded, or dying, their surgeons ami ii arses," And further, in de- scribing the inhnmanily and brutality of ihe Canadians, Secretary .Manning told of !ui Aaierican erew \vhi(;h, during the summer of JS87, rescued tbe crew of a wrecked Canadian vessel, but on entering a Canadian port to land th<'s«^ men they W(^re denied the privilege of l)urchasing food, of which they were sadly in need, and were rudely hustled out of port. In his s])ecial message of August LM, 1S,S8, President Cleveland char- acterized the conduct ot the Canadians in terms almost as severe as those employed by Secretary Manning. Meanwhile, the t/ana'a inoiic of dying," rather than "a mode of living." It is essentially iiu agiecinent to be about half-way decent for a consideration, and as siicli I tiiink it ought to be regarded as an immoral compact, liesides, Mr. Chairman, this wodiifi inrendi is virtually a concession by the United States of the right of Canada to visit upon American vessels the denials of privilege and the outrages which I have descjibed. Tiiis, Mr. (chairman, is the outcome of the di])lomatic management of nnr iislicry rights — rights which England was fonted to a<;knowledge ill the treaty of i)eace which followed the Revolutionary war — for the mauitenance of which Samuel Adams was willing to resunn^ the war ot Itidependence, and for which John Adams stood like a rock at Paris ill 1783. In addition to the outrages which I have mentioned, for the better inntcction ol her fisheries Canada has recourse to the civilized exj»e- (licnt of laying a duty of half a cent a pound on fresh tisb, which is al>out the e(]uivalent of an ad valorem duty of •'>(> per cent. Besides, slic. (xemiits hei' tislring vessels fmm all local taxation, and from duty on iiiipoi ted material, and grants to her iishing vessels a bounty of 8.j 'HMiis a ton. We, on the other hand, allow the importation of fresh Canadiiin tish free of duf^', our fishing vessels are not exem])t from lociil t;ixation, we pay them no bounties, and we only extend to them the privilege of importing salt free of duty. l:]vidently the whole aiia and intent of the Dominion trovernment. and more particularly of the maritime provinces, viz, New IJrunswick, Xova Bcor.i!i, Trince Etiward's Island, and Xewfonndland, is, and for the last seventy years has lieen, to drive American fishermen fioiii the seas and to gain a nu)nopoly of the North American fisheries. The Dominion Government is now striving to do this very thing by denying to Amer- ican vessels all commei-clal })rivileges in her ports, by denying them tlie rights of humanity accorded to seamen by the whole world, and by dis- ciiiiiinations jnotective and enabling toward Canadian lisliing vessels. Mr. Chairnuu), I believe the remedy for all these evils and disaltilities wliii'h afflict our fishermen is entirely in our own hands, and tiiat it may be apidied without recourse to any hostile or even vengeful ex- jH(lientv Dui'inj^ the year 1887 the value of tin' «'X|)orts of (ish from Caiisula to tiie United States amounted to $2,446,plied in suiih manner as to meet each refusal of commen.'ial priYilci>e to uur vesstds such as is freely accordiMl by the United States to Canadian tishing-vcssels and all other vessels. Jutjiecase oi the denial of the tights ot humanity to distressed st^unen, 1 would respoiul by an ai>solute prohibition of the in'.i>ortation of Canidian tish. I iioid that in this matter the Ijiiited States is not only bound to defend its own houur and the interest of it.^ citizens, but it is undtr a nu)ral ob)i- gatii'ii to «:ivilizat.ion to do so. This obligation requires that we shall ])Ut a stoji to the disgraceful conduct of the Dominion Oovernnu'ul, towards r.iir lishcrmen, for it is conduct wiiich may almost be charac- terized ;i> l.'galized [)ira<',y. Give to our fi.shermen tliese privileges, and they will (.lieerfully part with tiic ]nivileges of the Canadian in-shoio tishcrit's. Mr. Cliaiiiuan. 1 am aware of the fact that, in terms,, the retaliatory measures adojifed by the acts of .June It), ]8S(>, and iVIarch 3, 1887, aim at the cureof the evils wliich I have referred to. but, with all due respect to the gctitlemt'ii who fimned those statutory provisions, I beg leave to expie.ss ilio oi)iiiion tliat they are too vague and too general in their expression. For example, J think that not only the adiiiinistrativo otlicers of the Gov^m nuient, but the courts, would find it ditfitjult to attaeii a delinite signitication to such expression as "commercial [)rivi- h^g<'s," and also to the expression •' unjustly vexed or harassed." Tlieve is a great variety of "commercial pri\ileges,"some of which we may ol right, demand, and some of which we may not. And, again, there are a great many ways in which people may be "vexed or harassed." Some are serious, and ofhers rnendy in the nature of frictional resist- ances. P.esidcs, in view •■f the importance of our market to the Cana dians aud of our ports to their vessels— lor, remember, the most valuable RELATIONS WITH CANADA. 921 of tlio mackerel and cod-fisberies are off our own coast, and iio^ off the const of tlie British i)rovin(',es — I believe tliat wo can safely coniineour iftlaliutory measures to tlie tishiny; business and to the sea-y()iii{»' ves- sels of C:iiiada, and that it is unnecessi'iy to have retjoursc to the i)ro- liihiiioii of all »'xi»orts from Canada, as provided by the act of March 3, 1887, and much more do I think it is unnecessary to have recourse to ilio extreme measure of the suspension of the United States and Cana- dian tninsil trade, as rcconimeiided by Tresideut Cleveland in his mes- sarotection whatever against CanadiH;! wrong and oi)pression from their own Government, and have tlierefore 0 cents, making $1 for every visit to a Canadian port, whereas no cnlraiu'e or clearance fee whatever is imposed upon any Canadian ves- sel entering a ('anaessels or Canadian trade which it does not improve by nn unfair dis- criniination of some sort in favor of Cauadiau interests. CANADIAN VinT,AT10N 0¥ THE TlillJM.S OF THE TREATY OF WASHING- TON AND OF THE OHLIUATIONS OF THE "TRANSIT TRADE." \ flagrant and most absurd violation of a treaty stii)ulation between the United States ami Cicat Britain was brought to the attention of tli(! Ibmse of liopresentatives on the 1th of January, 188S, in the tbrm <)f a resolution submittet! by !he Hon. Nelson Dingley, Jr., of Maine. During the throe preceding years, through the device of au "order ju 922 RELATIONS WITH CANADA. council," a rebate of 18 cents per ton liad been allowed out of tlu* totiil toll of 20 cents per ton on {jr.ain of all 8ortfl passing;- throu^ii the Wellaiid and ISt. Lawrence Canals, if .shipped to iMontrciil. Tln.s constitutes a premium of 18 cents a ton olfeied by the (\in;idijin (lovenmicut in favor of the diversion roveinie depart- ment of Oan:ida has iiinoc(;nlly confessed that " the object of the Do- minion Governmi^ it in jtromidi^^ating- this order was toencourrij^e trade over the ^t. Lawrence routi)roaching Presidential campaign had called the attention of Congress and the country away from Canada. But again, on the 18th of Alarch. 18.S1), the discriminating order was is- sued by an order in council for the season of navigation of 188',). Last year there was no awakened public sentiment to be feared in this country and the order was issuer has time and a,i;aiii hecii brought to the attention of the Dominion (Toveniineiit, and the subject has several times been «liscnssed in J'arliainent, but the political infliK^K^e of two or three Canadian wrccluMf!: companies has been stioiig enough to i)revent the Dominion (iovcrmuent iVoni acce})tinj,' the terms of our protfered reciprocity, altlioiij^h such action has already resiilteiu,i:' with the refusal of the (!ana- and unfriendly dispusition of the Canadian Government toward the ITnited States was srrikiiij»iy illustrated by the attem])ted refusal of the Canadian authorities to allow iiansit trade iiii.'^ht bo. endanu'ciod by tlu'ir refusal to obs<'rve tlie ohiijiatioius of its reciprocal characU'r aiul tliev })riiikMitly wJtlidrew their t)i)|)o.siti«)ii. Tliis case cU'arly i»r()v<'.s (hat the Doininioii (^loveriiinent canii'smi frieiidshij) into its trade ndatioiia witli the I, Jiited fc>tates. 1 (■ CANADIAN IJEFITSAL 'J'O KKKP FAITI." WITH THE TTNlTEl) STATES IN Tit 10 IMATTKU OF A PKoroSlTION .MADE BY THE DOMINION' GOV- • EKiNMEKT. Mr. Chairman, I sliall offer you but one more iiiatauce of Caiuidiun encroachment ami uufairiieNs toward the LTnited States. On the L'd ot'Ai)ril, 1SSS, the Hon. Charles 8. Baker l»rou,i>ht to Hid attention of the House of fJ(>})resentatives perluips the most flajfiaiitof all the recent breaches of ;;(>od faitli toward thc^ United Stat«'s by (lift Donunion of Canada. The Canadian act of Parliament of J\Iay JT), 1S7!I, ])rovided that a large immber of s])eciiied afjriculturaJ ami othei' pioil nets mij^ht be admitted into (Canada from the United States frci' of duty whenever the Uuited Stat«'S should admit similar artich s t'roiu Canada tree of duty. Tins olfer was accepted by our act of iMarcli 3, 1883, with respect to many of the articles nieiitioneil. But ^or five yeaivs Canada failed to jylace such articles upon her free list. Comi)laiiit huv- iug been matU^. through the Hon. Charles S. Baker by parties iiijiiri(M\sly aliected, Secretary Bayard luon^dit the matter in an unoHicial way to the attention of the (.'anadian Government early in March, but the iniii ister of customs evaded the whole thin'' by asserting that the Canadian Goveiument wasnotobliged to observe the reciprocity contracted iii>on its own motion nntil every one of the articles enumerated l>y the C.uia dial) act of 187!) was made free by the United States. But this wa,^ manili'stly aljsurd, as the act referred to provides that '' anii and all ot the following articles, etc., may be iin])orted into Canada free of dnty." On the 2Srli of March Sir L'eter Mitchell, of New lirnnswick, cidled the i)rime minister sharply to account on the floor of the House of Com- mons for his transparent act of bad faith, to which theimpeiiousk;ul.T sullenly replied that the act was permissive and not mandatory, its language being "may be imported," and that the Canadian Govermeiit was more concerned in protecting the interest of Canada than those of the United States, The shallowness of this defense was readily ex- posed. But the resolution offertMl by Mr. Baker in the House of Rep- resentatives on the 2d of April brought the Canadian chitdtain to terms Two days afterwards, viz, on the morning of the 4tli of April, Sir Charlefe Tapper, minister of Ihiance, announced on the tioor of the House iif Commons tliat, at the iuhtance id' Lord Salisbury, ])rime min- ister ol (Ireat Britain, the articles made free by the act ot^ Congress of March .">, 1883, had been placed upon the free list, and at the same time Sir Charles read a telegram which he had sent the previous day (April 3) to Sir Lionel West at Washington informing him that on receii)t ofa copy of his (Sir Lionel's) dispatch to Lord Salisbur,^ the articles liiid been placed on the free. list. There ajtpears to have been some remark- ably alert diplomacy between Wasldngton, London, and Ottawa betweea the introduction of Mr. Baker s n^solution in the llouso of Kepresenta- tives on the 2d, and Sir Charh*!-- Tupper's announcement in the (Cana- dian Parliament on the 4th. But within three weeks Sir Charles Tap- l»er. on bfhaKOf the Canadian (Joveriimen!, Mibinitted to the " Coiii- mons '' a bill which so construed the words "any or all" in their act of ^'-''^JV? ^^^mmmm*. HiVm RELATIONS ^ ^TH CANADA. 925 1S7!», thai tliP Canadian Covornment would in the fntnre be able to si'lcft Croiu any addition.s which may be made to oui Tree list such j;oods nii!\ ;is it may (ihoosc to make free. This clearly iiidieatcs the shrewd- ness Willi which the Donjinion (fovcrnmeiit manages it« commercial inter- course with the United States. tONCr.l'UINO KKMARKS IN T{KOAItl> TO KISHKUY OUTRACtES, UNJUST DISCKIMINA- TKjNJj, AND \'l(ir,AriONS OK TKKATY. I have tluw submitted to you a .somewhat caret'nlly prejjared series ol «t;iU'inent8 in re{j;ard to the conduct of Canada toward the United States. The Uritish Government can not and' dare not attempt to re- j)rt's.s any of these wrongs, and from I'rudential motives refrains even troiii coiidemninp; them. Un the other hand, the United IStates holds a I'oiitiollin}; power over the whole matter of our Canadian relatio!ishii)s iui''(iiuit( to suppress every outrage and to prevent every encroachment ii])nn Aniericitn interests. Do not these considerations clearly prove the folly of any further at- tiinpt to cure su(?h evils by treaty '^ Appropriate legislation by Con- {;Tt'Hs, (»r|^mi)ted not l)y any hostile or even vengeful feelings, will, I hclicvc. be foun of skins without reducing the size ot the herd, set'uis to impose upon our Government a duty which shall t^idfer no interterance from any other country. We owe it to the whole Morld to proteijt this seal-skin industry. To allow foreigners or our own citizens to captuie seals in the open sea, would be about as much an ofiiMise against mankind generally as to authorize our fishermen on the hiinks of IS'ewfoundland to use dynamite or some other violent ex|do- «i\(i for destroynig fish, of which not one in ahuiuired could be secured. While the legal ma.xim nic ufere tuo nt alienum nou laedas uvAy not be applicable as a Iul{^ of international law upon this subject, yet it does eunvcy a suggestion which appeals to the ))id)lic conscience, and the iseiise of national duty, iu the formulation of a rule which shall de- 920 RETATTONS WITH CANADA. t(^niiine tlio status of this qnostioti (or iill hiin'. [ think tliatwc need li;iv(^ roroinsc to no otluM- ('(»H!siiloriiti<)ii tor tlii' Jnstiriciitioii nt tlni policy which ^hv ihutvd iStiitos Govormnent hii8 thua iar pursued iu regard to the Ahiska seal ti.sherios. COMMERCIAL UNION. Mr. Cliairmnn, the statements which T have already preaenrod to you have an important bearing ni)(Mi the question as to the pnutticu- billty of the sclienie of "coiiunorcial union" of wliich we have hcanlso much (lurmg the last two years. It scoius to me to go without saying that those striking diversities of governmciitfil function and iuconi])atii)ilities of interest hcreitdu't'ovc dc- scril)ed,and llic array of ciicroiichmcnts upon the i)art of the Doniinioii Government, to wlii(di 1 iiave alludcct, i)h>nc repel anythijig in the nat- ure of a copartnership a.rrangement toucliing the Joint maiiageiiiciit of the cnstoiuH revenues of the two countries. Under existing cininn stances, 1 can iunigine m> jiolitical soleeism more striking than would ho [)resente(l by such an anangcment. Isevertheless a ])ropositit)ii oi this sort, denondnatcd "commercial union," has culations and to encroach upon American rights and interests; Third. The diiiiculties of a tiscal nature involved in the question; and Tuurth. The difficulties of an adminifstrative character wliich would a'^tend the practical conduct of such a scheme. All this ]Mr. ^Viman lias carefully avoided. He has, however, been adroit in his methods. At the very beginning he adopted the Ciceron- ian policy of liist placing himself on good terms with his auditors in tii Mk RELATIONS WITH CANADA. 927 Ca)i;ilatform " wotdd be iu;cused of the rankest treason." Jri various parts of liis somewhat voluminous Kj)eeches and wi'itin;;s Mr. U'iman exi)rvssed his Ki'i^nter atbniration for the ^'overnmenlal iiiKfiftitions of (Janathi tlnm for those of the United Statcis. In view of the iiH'ontroviMtible fiict that the Dominion (ioveniment is a mere con- federacy, the acts of which have time and a^ain In'eu ruillitied by the jwovinces, iind that it may be broken up by lawfid secession, and that the executive power of the Dominion dominates the legislative, Mr. Wiman's remarks as to the superiority of the Canadian Government to tliiit of the United States ntay well be reijarded on this side of the na- tional boundary line, as merely ih(-torn'al ex[tressions. Mr. Wiuian declared his "conviction that nothinjjf will contribute in a greater decree to a perpetuiition of Ibitish connection than a close (omaiercial alliance l»y (Jaiuida with the United States." Tiiis he ex- plains by statino that the average duty ou imports int<» the United States is about 10 y)er cent. hi;2;her than that on imports iiilo Caiuida, and that if the United Stiites should lower her rate a i)er cent, and Can- ada correspondingly raise Iter rate, the result to Great Britain would b( ujx'silive tidvantage, for the reason that the lowering of the i«'ion that from his ])ersoual experiences he has ascertained the loca- tion of the Blarney Stone. Said he: Lower Canada is the natnrul scat of the manhood of America. Quebec to-day Khotiid he sittie.^j;- at the seat of tlie ciiBtom of the world. * » » Ouo ataggera at the thought of the euormous area controlled by Quebec and Montreal, ! t 028 RELATIONS WITH TANADA. Tho. nsHtiinptiiin t1r.it (foiiiinerciiil union ini<>]if iiini tlii^ Kr«'at<>aKt uiid west ninciit ol tin* (■uiiiiiicic*^ of tin* United Stittcs to tlM> St. I-uwienwi Kivrr ronfi! docs not, of conrwc, coninM-nd llio sflHuu' to the fjivoi-oi' till' citit's of Now York mid Ho.stoii. lint no iniiiortatinn ain! cxportatinn of nKMchandiso thron<,di .Monticiiland QiU'luT is today a.s frri' to the peitph' of thi' TnitiMl States as it is tliroii^di liostoii and Now York. Coninn'Tcial union oonid add iiotliin^ to iliat. The forciuii conirnoroo of Montroal and ((liioboc and of New Yorii and Koston duiinj^ tlio year I1S88 was as folh>ws: Por««. Iin]ioiU. Kxportd. PortH. Iniporls. EzporU. New York ,.l$470,42r 774 ♦301,480,784 MontriMvl i »42, ■.•4.';. 409 ' f:7,202 174 Boston i da.WC, <7»* I 6!i,4f>2,6(M ; tjuobtiO 4,044,9:13 1 8,;)o7,427 m\ There uro certain general facts which properly acooiii]»any this table viz, first, the fact Ihal the forei^jn conimoroo of Montreal and (^iielMC, ; ehietly (,'anadiaii trade; second, the fact that the transj»ortatiou lines via New York and Boston are in all respe(;ts tnoio desirable for alniowi all j)artsof th(^ I'nitetl States than are those via ^Nionrn'al and Queltee; thitd. the fai-t that the St. Lawrence Kiver is c,loseliiical issue, still as the subject has becu presented to^our committee by its chief advocate, JNlr. \Viuian, for whom, personally, 1 eulertain jjreat respe(;t, i will invite your attention to two objecrioiis tu the preposition which to my mind are conclusive of the whole, matter; First. The liscal conditions of the Dominion Uoxernment and of tlio Govetnineiit of the United States present an insuperable l)a7iier to commercial union or free trade between the two . the debt per cai)tia falling; irom $()9.L'0 in IS(J7 to $15 12 in 188".>. whereas the ,728.t>41 in I8t>7 to !»s2:}7,5o(),()41 in 188'.), the debt ])erca]»ita increas- inU' from i? 21.03 per lapita in 1867 to $l().7nin 1889. Be it remem- bered atsothat the ])r<'sent enormousdebt of Canada was incurred mainly in c<^vertinle of Canada, while the people of the United States cherish a prejudice (not (-ntirely reasonable) against subsidies; a prejudice, which within piiiper liriiitafions we may be forced to overcome in order to provide Hi ting and adequate protection to American shipping and commercial interests. ItlCLATlONK WITH CANAiM. 92U The iilciiof assiinilatiiif; tlic, ciistoin.s tarilVs (»(" two (!oii!itri»'s so differ- eiitly aitiiiited in roj^sinl to their |>ieNeiit, and piobalihi hinire necdis sceni.s Nullicieut to condemn the wliole 8cheiu(j of coniiuoreial union as nil alKsurdity. FUit in tlie se^'oud phieo th(^ Hchenio involves a structural diftl- cnlty which wonhl defeat the very objicl to he acconipli.slied. It pro- poses to except In >ni tlie pnivisiuns of ''coninifi-cial union" or " free- trade" between the twoeountrii's all ar(ieh-s subject to duties of excise or of internal revenue. At the present I ime S(» per cent, of tiio revenues of (Janachi from taxation are derived tio'a ciistonis, ami about 50 j)or cent, of her customs revenue is derived i'roiu duties on imports from the United States. It is, therefoie, perfectly apparent that the huddeu iibiiudonment by Canada of so lar^e a part of lier riistoms revenues wouhl at onci^ involve a very larjie increase of lier ex(;ise duties, to be protected by correspondinj; cust(Mns duties ou articles imi)orted from tlie United States, lint even this such au iustiiution as the present Doininiou Govei :nneiifc to have any participatlou in the collection of our customs revenues. We are too w il acquainted with Canada and her metbods for that. We should demand absolute control of the external customs service of the two countrievS. But that, as Sir John A. Macdonald has very properly remarked, tlio Canadiims would never submit to, and for valid reasons, atteetiui;- the honor of their country. It is also clearly api)arent that any joint ]>art- nership administration of the customs service of the two countries would not only be in the nature of an '' entangling alliance," but that it would lead to inextricable confusion. Viewed from the stand point of Canadian politics, the scheme of com- mercial union is today absolutely chimerical. Sir John A. Macdouiild and the great political party of which he is the leader, are bitterly o]»- posed to the scheme, for it goes in the face of the liscal, political, and commercial features of the ])olicy upon which tliat part^ has so Iodlc held political ascendency and is still tirndy intrenched in i)ower. 'As Ji practical issue in Canadian politics. Sir John crushed " conmiercial union" with an ei)igram. Said he: Eiiffland will liiivc iiotliiiific to do vvilli it, tlio United States will have uothing to do with it, aud Canada will have notliiug to do with it. And Sir Charles Tuppor appears to have laid the still born infant up- on the shelf, when he declared, about a year ago in the Dominion Par- liament that it had gained no foothold in Canadian j)olitics. From all that has been said in advocacy of" commer(;ial union " it aj*- pears as though Mr. Winian and his coadjutors in tne United States and in Canada have viewed the subjects from a rather n;irrovv stand- [)oiiit of trade interests, and that they have erred in ignoring the fact that governments and political institutions and international rivalries con- stitute factors in international relationships. Mr. Chairman, in the whole range of our foreign relationships, I can conceive of no scheme which, under existing circumstances, wouhl be so glaringly in contravention of the injunction of George Washington against " entangling alliances" as would be au agreement in the nature of commercial union with Canada, ui)on the lines projected by Mr. Erastus Winian and Sir Ilichard Cartwright, and their few coadjutors in this country. ANNEXATION. Mr. Chairmaa, au attemptto review the important questions aifecting the relations existing between the United States aivd Canada would be incomplete without some reference to the subject of annexation. It is a subject which heretotbre I have ignored, and yet it might seem to in- dicate some lack of frankness if 1 were to disregard it in this connec- tion. I think I make no mistake in saying that since the thought of sepa- ration from England was first euttntained by the people of the thirteen original States of the American Union, there has been a pretty general desire in this country that the British North Ameiican Provinces shall become a part of the Ai.-CiJean Union. This desire, however, has al- ways been aud to-day is completely controlled by the inflexible purpose of refraining from any act of injustice or of encroachment upon those provinces, and from any act or line of policy which might in any way interfere with the free«lora of the i)eople of Canada to 8ha])e the course of their own political atfairs. But since tin lirst rumblings of our rfvolutionary struggle all th'^ overtures in favor of annexation which have been made by judi<*;ioiis RELATIONS WITH CAjNADA. 031 and by injudicious people on this side of the boiindMry-line have been repelled by our northeru neijgfhbors. The case all ii\on^ seems to have been one of unrequited ail'ectiou. Nevertheless the attempt to woo Canada to annexation has gone on, and it has beeonie with some an unreasoning infatuation, with a])parently the natuial result of incitiujEf the Canadians to a renunciation of oblij^ationsaiid even of courtesies and humanities which at this day ^.iiaracterize the international intercourse of civilized countries, Wiienever any question involving- the rights and interests of the ])eo- pleofthis country has arisen in the course of our commercial inter- course with Canada, or any measure ot ])ublic po'icy touching our Canadian relationship has come up for a fair and reasonaiile consider- ation, theory has been raised in this country by annexationists that we must be careful not to einsh.the budding sentimtuit in favor of annex- ation on the northern side of the interiuitional boundary-line, and tluis, time and again sensible and just conclusions have been prevented. Mr. Chairman, I think this sort of nonsense has gone on about long enough. It has compromised the dignity of this great nation ajid even now it is being employed to screen from the eyes of the American peo- ple indignities which should be repelled, w roiigs which demand redness, and encroachments upon our interests wliich (a-y aloud for just retalia- tion. We have suffered the Canadians to toy with tlic interest, the honor, ajul the dignity of this country long enough. It is high time for us, in an upright and proper maniuM-, to assert the rightful i»ower and iiiliuence of the United States on this continent. It is always unwise for the people of one country to attempt to trace the current of political events in anollier. The only saf«* mode of judg- ing of the disposition toward us of any other country Is by inferences drawn from diversities of social and ])oliti('al institutions and from acts indicative of such disposition. \Vc .shall ^uiely I'all into error if .we "attempt to set any other rule for our judgment as to the attitude of the Canadian mijul toward the United States at the ])resent time. The chief, and almost the onl.v persistent obstacle to annexation is on tl«i other side of the line, ann. On the other hand, the whole force of political circumstance hastendevl for moretlum a hundred years to drive the Canadians in the opposite direcjtion. I say this not to their disparagement, but as a philosophic tact oi history. lii the light of our own experiences let us not wonder that the Ih'itish Provinces of North America cling to their indej^Mident politi- cal existenct under a mere nominal c(tnnectiiin to (ireat Jbitain, which is strong because it sets so Jigiitly upon them, lieligion in i)olitics :i 932 RELATIONS WITH CANADA. and race iircjiidices also distract Canada aad repel annexation. One hundred and tliivty years aijo the British Hag .supplanted the tri color of Franco on tlie plains of Abraham, but to-day the proceedings of the Canadian Parbaiueut are printed both in the English and French laii- guaoes, and tho French element assorts its existence as an integral force in Canadian politics. Canada has her political cranks and theorists and political advent- ureis who prate about annexation to the United States 5 hut the senti- ment in favor of annexation has never been oj^enly proclaimed by any political party, or even by any forceful political faction. The very fact that the Canadian peoj)le have made as great a sacrifice of treasure in the construction of their present system of transportation which at once subserses tiie purpose of binding them togctlier politically by the ties of commerce and of giaspinga part of the internal and foreign comnu'rce of the Unitt-d States, has, I am led to believe, had the elfect of weakening the sejitiment which has always floated in the minds of some Canadians iu favor of annexation to the United States. COIfCLUSlON. It does not appear proper that I should make more specific recom- mendations for the cure of the evils affecting our Canadnm relation- ships than have been incidentally mentioned in considering the facts which define and describe those evils. It seems proper, liowever, that I should enumerate the general conclusion^ which I have reached from a somewhat careful retle<.'tion upon the facts hereinbefore presented. Those conclusions are as follows : First. There are certain incompatibilities existing between the or- ganic features and the interests, aims, and methods ol the Governments of the Dominion of (Canada and of the United States which render it impracticable to prevent Canadian encroachment upon American in- terests by treaty. Tlie first of these incompatibilities arises from tho fact that the Dominion Government has a very large tiuaucial interest in railroads audcan;il.s, which interest is soclo,sely related to cheri.shed political objects tliat tliat Government is forced to pursue a line of policy aggressive towarerior geograjdiieal situa- tion, its more genial climate, and more fruithful soil, and its superiority ti> Caiuula in ahnost every aspect of natural losources, is abU; by legis- lative action to dictate such terms to the Dominion Government and rljc government of Newfoundland as will secure the United States not oiUy against every act of aggression and every violation of the rights of American citizens, but which will also prevent ever> attempt by the Dominion Government to interfere with the natural course of our na- tional development, involving the commercial supremacy of the United States on this continent. Fifth. Our national character, sense of justice, and the friendly dispo- sition of the {)eople of the United States towards the people of Camula totbid that the United States shall ever encroach wpou the rights of the J)omini(m of Canada, or that it shall take any steps in the directio/i of fnereing Cnmida to anTu^xation to the Unite