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/ 
 
 POLICY OF THE ADMRfiSTRATIOiY 
 
 REPLY TO MR, SPOFFORD'S LATEST ATTACK. 
 
 To the Editor of the llodon Eveninf/ Traveller: 
 
 In i-eplying to the letter of Mr. 8poffor(l in your issue of 
 tlic sevonteenth instant, I deem it unnecessary to answer 
 tiiat part of hi.s communication which reUites specifically to 
 Mu" (juestion of the fisheries, since the remarks on that suh- 
 joct are merely a repetition of former utterances which liave 
 long since had their full effect, and more especially as none 
 o( us are so unpatriotic as not to desire such a settlement of 
 tliat question as will he most advantageous to the American 
 lishermen. 
 
 Mr. Si)ofiord's fundamental error consists in supposing 
 that the right to ship American products through a foreign 
 country, without paying duty Ujion their reintroduction into 
 the Lnited .States, was created by certain sections of the treaty 
 ot Washington, and conse(iuuntly ceased upon the abroga- 
 tion of those sections. Hence he charges the Executive 
 with usurpation of legislative powers in continuing these 
 abrogated sections of the treaty in force. 
 
 Ho says: "This matter concerns the relations of the 
 Canadian Pacific railway to our great American railwavs 
 and especially our transcontinental lines, as those relations 
 /mrc />an created Inj the action of the Executive authorities at 
 'ya^lnmjton:' 
 
 In faot.as T shall show, nonoof tJio relations between our 
 
m 
 
 railroads and the Canadian Pacific have boon created by the 
 Jv\e(,'Utivc autliorities. 
 
 After [)()intino- out (what is perfectly true) L!iat the oOth 
 Article of the treaty conceded certain privileges to British 
 vessels on the 8t, Lawrence and the Lakes, and that by the 
 abrogation of Article 30 these privileges ceased, he says: 
 
 "Thus it will be seen that with the abrogation of Article 
 30 of the 'i'l-caty of Washington it was no longer possible 
 for l^ritish vessels to participate in tiic domestic coinmcrco 
 of tlie United Stales, nor for any transportation company, 
 British or other, to carry without i)ayment of duty goods, 
 wares, or merchandise from one port or place to another 
 within the UniJ^ed States through the J)on)inion of Canada," 
 and quotes the circular of July 2, 1885, issued by the Treas- 
 ury Department to collectors of customs. 
 
 This circular inlbrms the collectors of customs that "ship- 
 ments of merchandise in transit from one port or place 
 within the territory of the United States to another by a 
 route, a part of which is by land carriage through the Do- 
 minion of Canada, and a part by the great lakes and the 
 rivers connecting the same, or by the river St. Lawrence in 
 cither Ih'itLsh or American vessels for ports on the Northern 
 frontier of the United States to ports on the Canadian frontier 
 for transshipment to railway cars, and from points on tlie 
 Canadian frontier, at the termini of railway transi)ortation, 
 to ports on the Northern frontier of the United States, will 
 hen^ifter be treated in all respects as ordinary importations 
 from foreign contiguous territory." 
 
 This circular, however, went beyond the powers of the 
 Treasury Department, inasmuch as the right to transport 
 American products through Canada was a right created by 
 law long befoi-e, and independently of, the treaty, and was 
 not, therefore, allected by the detorminr.tion of the treaty. 
 
 As soon as the error was discovered a second circular, cor- 
 recting it, was issued by Secretary Manning under date of 
 July "24. It is as ibliows : 
 
CIRCULAR. 
 
 Tramit of Merchandise Throiujh the Dornhwm of Canada. 
 
 1885. 
 
 Dopartmcnt No. IIG. 
 
 Division of si»eeial agents. 
 
 The A s UK v D i-: i>a htm ent, 
 Oi-i'icE OK TheSkcket 
 
 akv 
 
 W 
 
 ASHixVGToN, D. C, Jabj 24, 188: 
 
 To collectors and other officers of (Justoin 
 
 Under the anthority contained in sectu,., 
 Itevised Statntes imported merchandise, in 1 
 
 in section 3000 of tjie 
 >ond or duty 
 
 ]'aul,and products and manufactures of the United 
 
 may, with tiie con.sent of tl 
 
 ish provinces, be transported from 
 
 ^States, 
 e proper authorities of the Brit- 
 
 States to another port t 
 
 one port, in the United 
 
 lereni over the terrif 
 
 provinces, by such routes and under such rul 
 and conditions as the KSecretary of the T 
 sen be. 
 
 ory of such 
 
 regulations, 
 
 reasury may pre- 
 
 Therefore so much of circular No. 102 of this 1) 
 
 therein referred to, to A 
 
 • , , . , - epartment, 
 
 as rescuK ed article 8-14 of the Customs 
 
 !1.!"^.^'" \ ''^"^^ .said article is hereby 
 
 "'0 transportafioii, 
 icors 
 
 dated the 2d instant 
 regulations of 1884, _ 
 mended in such manner a^to mstric't'tl 
 
 mei'icaii vessels. Customs otl 
 
 will be governed accordingl > . 
 
 The .salaries of officers stationed in Canad 
 transnipmont from vessels to 
 reimbursed to the Govern 
 panics interested. 
 
 I to supervise 
 
 cars, anu rUx rerm, must be 
 
 nient by the transportat 
 
 ion com- 
 
 I>A\iEL M.\x\i\(i, Secretary. 
 
 Mr. Spoiford's suggestion that a different course would 
 uive been adopted if Mr. Manning had remained in otHce is 
 therefore, wholly without foundation. 
 
 The whole question is not one for the K.vecutive branch of 
 tlio ( government, but is rei-ulated bv law 
 
 Section 3000 of the Revised StaUites, a i)art of which is 
 
li 
 
 M 
 1 
 
 quotoiJ ill (his last circular, was uiiaoteil in l,S»5<i, ami is siilj 
 in force. 
 
 Mr. Spoflbrd calls special attention to that part of the Joint 
 Uesolution of Conoress of March ;j, 1.S8;}, which enacts that 
 "every department of the United .States should execute the 
 laws of the llnited States (in the premises) in the same n.an- 
 ner and to the same etfeet as if said articles had never been 
 in iorce," and this is precisely what lias been done by the 
 Treasury Department, acting under the authority of an act 
 passed many years before the Treaty of Washington was 
 made. Thus it was not out of article 30 of the treaty that 
 the present situation arose, but out of a i)re-existiiicr law 
 
 As late as February 4, 1887, this right of the shipper to 
 use a foreign transportation line as a means of .sending his 
 goods to market was incidentally recognized as a part of the 
 existing law by section six of the "Act to lieguiate Com- 
 merce," which provides that " any freight shipi)ed from the 
 United States through a foreign country into the I'nited 
 States, the through rate on which shall not have been made 
 public as required by this act shall, before it is admitted into 
 the United States from .said foreign country, be subject to 
 customs duties as if .said freight were a foreign production " 
 a provision which clearly takes for granted the right .so to 
 ship and prescril)cs a further condition. Although it is 
 probably true that the Canadian railway has benefited by 
 the possibility opened to it of participating in the trans- 
 continental shipments of American goods, and also by the 
 operation of the Interstate Commerce law, it must be remem- 
 bered that the privileges granted by the act of 18(JG, as well 
 as the restrictions imposed on our own transcontinental 
 lines by the Interstate Commerce Law, were, in the opinion 
 of Congress, for the benefit of the American shipper and con- 
 sumer and not in the interest of any ageiicv of tran.sportation 
 domestic or foreign. ' 
 
 Enough has been said to show that the right under which 
 shippers by the Pacific Coast Steamship Co. act is a rioht 
 
;rantocl by law and ii„t L,y the lOxceutivo. Tlio only ii 
 
 slial 
 
 , inctiuu 
 . ............ .....,.., matter is to make siioli rugulatious as 
 
 protect tlio United States from fraud. Instead of re- 
 quiring the shipper to prove the origin of the goods hi the 
 case of each shipnient.a bond is accepted from the transp(.rta. 
 I. on company binding it to observance of the law in respect of 
 such shipments, and thus obviating the necessitv of such 
 .special proof m each case. This is not a " privilege '' granted 
 to tiie transporting agency, as is assumed bv Mr. SpofFord 
 throughout his argument, but a measure of i^lief and con- 
 vomena, to the American shipper and the American con- 
 s.gnee for the purpose of facilitating the transportation of 
 goods between different parts of the country bv the cheap- 
 est route. * 
 
 The bond accepted in the particular case mentioned in the 
 lettorwas from th. TacificCoast Steamship Company, upon an 
 ai.plication transmitted to the Treasury Department by the 
 collector ot the port of San Francisco, and supported by the 
 New England railroads, among others. This company is a 
 domestic corporalion,:organi/.ed under the laws of California 
 and transi,ort.ng goods to the British provinces in American 
 bottoms, ot American registry, an,I flying the American 
 ensign; and this Steamship Company, so far from being a 
 me.e tool ot the Canadian Pacific, as is intimated by Mr 
 Si.o/lord was incorporated in 1876 - years before the latter 
 comi)any came into existence. 
 
 It should be remembered that no negotiations have been 
 
 iiad v\ith the Canadian Pacific railroad. 
 
 This is not the only corporation doing business with the 
 
 a.adum I aeific ]lailway Company, but only forms one 
 
 ' k m a Cham of which a large number of American 
 
 raihoad companies form a part. I^r instance, in 1884 
 
 •lunug I resident Arthur's administration, and just at the' 
 
 tnnewhen the termination of article 30 of thetreatv was 
 
6 
 
 approacliinj.', an upplinitioii IVoni Hu' Muicliunts' I)c'S|iatcIi 
 Tran.sportalioii C.'oinpaiiy wa.s ^rrantod. It is to In; noted 
 that tho bond in this case was to facilitate transportation 
 through Mexico us well as throufrh Canada, and was ono in 
 which not only the railroads running out of IJoston and 
 I'ortland were interested, but also all of Mioso transconti- 
 nental lines whose interests Mr. Spoflbrd now tells us are 
 in danger on account of the granting of a similar facility. 
 
 Many applications of this .sort, both i)efore tho making of 
 the treaty and since its abrogation, have been granted by 
 the Treasury Department which has never discriminated 
 against any transportation company, but has administered 
 the law im[)artially in tho interest of American producers 
 and consumers. And the present ollicials of the Treasury 
 have simply continued what for more than twenty years has 
 been tho uniform practice of the Department, a practice 
 which, as Mr. Sijofford himself admits, luis never until now 
 been objected to by anybody. 
 
 Does not, then, the suggestion of a " malign inHuonco," 
 and of superior diplomacy on the part of the English Gov- 
 ernment, and of corru[)tion of our otlicials, become slightly 
 absurd when it appears that the only action of our Kxecu- 
 tive has been to secure American citizens in the enjoyment 
 of their statute rights? 
 
 It should be added that it is not in the power of the Ex- 
 ecutive to prevent the exercise of this right of cheap trans- 
 portation through Canada, nor in any important measure to 
 discourage it. It has the power merely to obviate the incon. 
 venience of proof in each case that tlic merchandise came 
 from a place in the United States; and so slight is this in- 
 convenience that the smallest difference in freight i)erccntage 
 between any such foreign route and a route wholly within 
 the United States would be sufficient to divert the entire 
 business to the less expensive route. 
 
 Such being the state of tho law all ground for Mr. Spof- 
 ford's attack upon the Administration is taken away. The 
 
wliulo ( 
 
 on ut 
 
 luestioii is one for Congress ; but, ns i\rr.S,,ofror.l 
 conshlcrfiblo \vu<rlh eniplmsizing the d 
 
 this country wliicli flow from this syste 
 tunc to remind him that thci 
 
 system, it is not in 
 
 goes 
 inadvantiigcs to 
 oppor 
 
 whet! 
 
 may slill be a (juestion 
 
 ler a system of protection for the great railroad 
 
 panics at the expense of the rest of the Am 
 
 com- 
 
 nol the least of Boston and Portland-wouhl bo lik 
 commend itself either to Cong 
 
 orican public — and 
 civ to 
 
 organized labor 
 As to the exned 
 
 fcss or to the '" C 
 
 'ouncils of 
 
 pediency of the present policy, it is liardlv to 
 
 be expected that the interests of tl 
 
 cific slope, and the slioe, cotton, or oth 
 
 10 wool grower of the 1 
 
 I"'ngland, shou 
 
 >o sacrificed to railroad 
 
 er manufacturer of N( 
 
 'a- 
 
 'W 
 
 liave been ci'eated and favored by the C 
 press purjwsc of bringing thesjprod 
 
 companies which 
 
 ex 
 otl 
 
 ler, or that they should be prevented f 
 lots, though the path lies through tl 
 friendly neighbor. 
 
 With all mv svi 
 ieel considerable hesitancy in entering tl 
 
 government for the 
 
 ucei's nearer to each 
 
 rom going across 
 
 10 grounds of an un- 
 
 iipathyfor "organized labor" [ should 
 
 ticularly in New Englaml, and ad 
 
 ig their "councils," par- 
 
 vocatingan appeal to the 
 
 Congress of the [Inited States for a cK.„ 
 
 would inevitably enhance the cost of tl 
 
 lower the value of the product of their laboi. .v., 
 
 such a change might enure to the advantage of tl 
 
 employes (comparativelv small 
 
 ange in the law which 
 
 loir necessaries and 
 
 even though 
 
 le skilled 
 
 rail 
 
 italists 
 
 in number) of the Pacit 
 
 •oads-to say nothing of the still smaller number of 
 
 ic 
 
 who own them 
 
 cai 
 
 Edw. a. Mosf 
 
 LKV