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52D Congress, \ HOUSE OF EEPRESENTaTIVES. ( Report

) No. 185.

Isi iiession

/ l.L^l-^IA-iV- a-O-L ^x,^o\^lt. UmJA Li

^v-vv.**^-

ti-i^

WATER WAY FROM HEAD OF LAKE SUPERIOR TO THE

SEA. ^

Fkbuuary 8, 1892. — Referred to the House Caloiidar and ordered to be printed.

Mr. LiND, from tlie Committee on Interstate and Foreign Commerce,

submitted the following

■ REPORT:

[To accompany H. Res. 11.] ; >

The Committee on Interstate and Foreign Commerce, to whom was
referred the joint resolntioii (R Res. 11) to promote the improvement
of the water way from the liead of Lake Superior, by way of the Welland
and St. Lawrence canals and St. Lawrence River, to the sea, respectfully
report :

Tlie value and extent of the eonnnene of the Great Lakes has been so
frequently commented upon in this body of late years that it is not
deemed necessary to quote iigures or statistics to demonstrate its im-
portance. Forming, as they do, the boundary line, iit part, of eight of
the larger States, the Great Lakes furnisli a highway for the inter-
change of the productions of those Commonwealths that has no parallel
in any other country. Thus far the tratlic njxm them has been ccmftned
almost wholly to the trade ^vith Canada and the Internal commerce be-
tween the States. The recent (leveh)i)m.ent of the untold resources of
the great Northwest has, however, made the productions of that region
not only a vital part of our internal commerce, but the leading factor of
our foreign trade. To facilitate the internal ccnnmevce, by affording
better facilities in tV.e way of improved liarbors, lights, and deepening
the canals, Congress has not hesitated to vote appro])riations by mil-
lio'is. Its action in this behalf has met tlie ai)i)roval of the country.

Your (H)nunittee believes that it is now equally important to facili-
tate and take the propt'r stei)s to secure a deep-water outlet for the
foreign commerce originating in the Stat(?s bordering on and tributary
to these waters.

I'ublic interest 'u this subject is evidetu'ed by the a<*tion of conven-
tions ami connnercial bodies, as well as by the several ])ropositions sub-
mitted to Congress, looking to the opening of aihMpiate water ways be-
tween the lakes and the ocean. The impracticability of <leei>ening or
improving tbe Erie Canal so as to admit the passage of oceangoing
crafts seems to be admitted on all sides. Ibit it is claimed, however,
by i)ersons who are competent to ex])r(^ss oj)inions on the subject, that
it is feasible to construct a canal from Oswego to th<^ Hudson of suffi-
cient si/.e and dcDth to furnish deep-water passage from the lakes to
the sea. That this may be true, and that the work nniy be undertaken,
if practi<*able, is earnestly hoped for by all who are interested in the
development of our means of conmunication. It stands admitted, how-

2 WATER WAY FROM HEAD OF LAKE SUPERIOR TO THE SEA.

ever, that this project, in connection with the proposed Niagara Canal^
would require decades for ita execution and an amount of money vari-
ously estimated from $40,000,000 to 1100,000,000.

Pending the consideration of tliis plan, and its execution if adopted,
it seems to your committee that the great interests under consideration
should be served by other available means if such are at hand or within
our reach. Nature has provided an outlet by means of the St. Law-
rence River whicli needs bat comparatively little improvement to make
the Great Lakes as available to the commerce of the world as they now
are to the internal commerce of the United States and of Canada. On
the practicability of the St. Lawrence route for that purpose we quote
from a letter to this committee, written by Col. O. E. Poe, in charge of
the construction of the new canal at Sault Ste. Marie, in response to a
reference of this resolution to the War Department, as follows:

Tho Welliiiid ami 8t. Lawri'uce caiiaJs iiudoiibtedly occupy the most favorablet
and therefore the best line oi a\ iiter ((numiuiii ation between the lakes and the ocean*
A dee]) water way can be i.pentMl l)y their route at h?HS cost than by any other, and
there can be no ([ucstion as to its advantaj^es in an entjineeriiij^ jioiut of view.

It must be assumed that the Dominion of Canada is fully aware of the j^reat advan-
tage which so favo-able a route ati'ords, and will be loath to enter into any arrange-
ment bj' which this advantajfe would be divided with another power. However",
such questions belon<f to the domain of diplomacy, and it is probable that I am not
expected to discuss them. So far as communication between the lakes and the conn-
tries beyond the Atlantic is concerned, every argument favors tha proposition of this
bill.

Our neighbors on the north have already improved this natural outlet
by the construction of the Welland Canal between lakes Erie and On-
tario, and the series of shorter canals along the St. Lawrence. These
canals cover the entire distance where canals are required between
Lake Erie and the sea. Their aggregate length is only 70 miles, while
the Erie Canal is 'M>3 miles long.

In pursuance of plans adopted by the Canadian Government for uni-
formity of depth the Welland has been deepened to 14 feet, and the
work is in progress on the other canals with the prospect of completion
within three years if the necessary appropriations are made. The mag-
nitude and importance of the work already done is made evident by
the fact that the steamer Witmore, carrying some 80,000 bushels of
wheat, went through from Duluth to Liverpool last season by lighter
ing her cargo in passing down that portion of the St. Lawrence Kiver
at which the canals have not yet been deepened. This trip, though
largely experimental, proved remunerative tot he owners of the vessel.
The rate paid from Duluth to Liverpool was 9^ cents per bushel, exclu-
sive of the charges for transshipment to lighter the vessel, which was 3
cents per bushel.

This demonstrates that, with the completion of the improvements now
in progress, ster.mers of the size and cai)acity of the Wetmore can be
dispatched from points on the Great Lakes to any port in the world,
provided we c,;n use the canals in conuuon with the Canadians. If the
canals wore further deeiiened so as to correspond with the new "Soo"
Canal, Duluth, Milwaukee, Chicago, Cleveland, and Buflalo would enjoy
all the advantages of seaboard cities with reference to foreign trade.

While we are n()w enjoying the use of these Canadian canals, as the
Canadians are ours, wesh<mld not h)se sight of the fact that such enjoy-
ment is not based on permanent treaty rights.

Under the provisions of Article XXXIII of the treaty of Washington
our right to use the Welland and St. Lawrence canals may be terminated
on two years' notice, and it will be remembered that President Cleve-

EA.

WATER \\AY FROM HEAD OP LAKE SUPERIOR TO THE SEA.

il'

Caiialy
f vari-

opted,

ration

within

, Law-
make

ey now
\ On
quote

arge of

se to a

vorablo'

le oceau*

her, and

t advan-

arrange-

lowever,

I am not

lie coun-

m of this

il outlet
[lud On-
These
between
)s, while

for uni-
and the
npletion
'he mag-
ident by
ishels of
Y lighter
ce Kiver
, though
e vessel.
3I, exclu-
ch was 3

ents now
e t!an be
lie world,
}. If the
w ''Soo"
uld enjoy
trade.
Is, as the
ch enjoy-

land's administration claimed that the article in question has already
been abrogated, so that we are now using those canals by sufferance
only. For these reasons it is deemed important by this committee that
appropriate action should be taken by this Government to secure bj- a
fair arrangement with the Canadians the permanent right to use these
canals for our commerce, in common with and on the same terms as the
citizens of that country.

It also appears to your committee that the present time is exceed-
ingly opportune for urging such action in behalf of the commerce of the
Great Lakes. It is reported that representatives of the Canadian Gov-
ernment will shortly arrive in this city to negotiate with our Govern-
ment for closer trade relations between the two countries.

Your coi imittee therefore recommend the passage of the joint reso-
lution.

ishington
srminated
nt Cleve-

^0,..

52d 'Don
Isi 'Set

PREI

To Senai

July 1, I

To the S

For tl
resolutio
coimiiuii
sentativ<
Wliartoi
canal tol
Adee, S(
tiou of J
W. F; St
t: sented t
missione

The p<
cominuii
whicli C(
Britaiu,
til at ii s
|. exists, a
cident b

It has
to the s
States vv
Las alrei

EXEOI

52d 'Dongres'S, I
1st Session. )

SENATE.

< Ex. Doc. lU.
. \ Part 2.

m THE SENATE OF THE UNITED STATES,

ME'SSAGE

FROM THE

PRESIDENT OF THE UNITED STATES.

IN Kl'HTHKU HKSPONSE

To Senate resolution of February 24^ 1892, relative to trade arrangements
v., ,'5> with Canada. -

July 1, 1892. — Kcud, referred to the C'oiiiinittee on Foreign Relations, and ordered

to be printed.

To the Senate:

For the iiitbrination of tlie Seii.ate, and in further response to tlie
resolution of the Senate of February 24t]i last, I transmit herewith a
conininnication of the 24th instant from Mr. Herbert, the acting re]>re-
sentative of the British Government at this capital, addressed to Mr,
Wharton, acting Secretary of State, upon the subject of the (Canadian
canal tolls; also a memorandum prepared and submitted to me by Mr.
Adee, Second Assistant Secretary of State, reviewing the communica-
tion of Mr. Herbert, and a letter of the 28th instant from Mr. .John
W. ¥, ster, who, as [ have ])reviously stated, with Mr. Blaine repre-
sented this (irovernment iu the conferences with the Canadian com-
missioners.

The position taken by this (xovernraent, as expressed in my previous
comnuinication to the Senate, that the canal tolls and regulations of
which complaint has been made are in violation of our treaty with Great
Britain, is not shaken but rather confirmed. There can be no doubt
that a serious discrimination against our citizens and our commerce
exists, and quite as little doubt that this discrimination is not the in-
cident but the purpose of Canadian regulations.

It has not seemed to me that this was a case in which we could yield
to the suggestion of further concessions on the part of the United
States with a view to set-uriug treaty rights frn* which a consideration
has already been given.

BEN.J. HAIiBISON.

Executive Mansion,

July 1, 1892.

RECII'HOCAL TRADE WITH CAXADA.

Mr. FoHter to the President.

DKrAin-MKNT OF State,
Wnsltimjton. 'lunc L'a, lSlf2.

Tll«' I'UKSIDENT:

KcftMiiiij:' to tlie r«>})()it wliicli I snlmiitted to you on tin- <>tli hisfiaut
of tin' coiifcrtMiccs wliich wric licld iit tli«' Depaitiiieiit of State on tlic
.'3(1 ;iii(l 4th instant, at whic!i tlieit' were present tlie lion. .M'U'Kenzie
Bow ell and the IJon. (leoige E, Foster on tlie part of the Canadian
Govei'nnient. and the then Secretary of State and the undersi<fned on
the part of the Cnited States, I desire lo add tlie following sta'enient:

Durinji the eonferenee on the 4th instant the Canadian eoninnssion-
ei'8 sng«;ested, in a tentative way, but without any formal otfer of the
same as a definite i»roposirion, that an a<ljustnient of the <iuestioii as to
eanal tolls might l)e i<'aehed by the ahtdition of all rebates on tht Wel-
land and St. Lawrenee eauals, (»n e<mdition that an assurance he ,?ivfcn
tha^ tln' continued free use of the Sault Ste. Marie Ca'>al would be af-
Huied to Uiitish subjects and vessels, and that article 30 of the tieatv
of 1871 be revived in full etfect.

The suggestion was <lis(!ussed at sonu' length and the position was
maintained on the part of the leiuesentativesof the I'nited States that
the stii)ularions of article 27 were in nowise moditied by the terni.na-
tion of article .">0 after ten years and nj>:)n two years" notice, and that
the obligations of (Jreat IJritain, under article 27, were Just as hind ng
now as they were before the terndnation (*f article 30. It w'as further
stated that while the i)ro])osition for the revival of article 30 \v;;o one
which the Ex«'cutive would regard as a i)ro])er subject for referen(;e to
Congress, it was not one which comnuMuled itself to the judgm<'nt of
the conferees on the ]>art of the LTuited Stat< s as a Just and satisfac-
tory settlement of the (luestion of the canal tolls discrimination.

Respectfully suhndtted.

.loiiJS W. I'OSTKH.

Mr. Herbert to Mr. Wharton.

British Le(JAtion,

Wanhiiu/fon. r/ane 21, J8f)2.

Sir : I have the honor to intorm you that Sir Julian Pauucefote duly
forwarded to the governor-general of ('aiiada copies of your notes of
th«> 10th October, 1801, and of the 17th iMarch, 1802, inclosing me-
morials from the i.ake Carriers' Association of Buffalo, complaining
of alleged disciinunati<ui on the i)art of the Canadian (lovernmeut
against citizens of the Cnited States in the use of the Wellaud Caual,
an«l 1 have now received a eomnuinication from his excellency in reply,
containing the following observatiofis which the (loverment of the
Dominion desire to subnut tlu^reon.

The (^anadian (lovernmeut have «"arefully examined the statements
made in the two memorials from IN'r. Keep, the secretary of the Lake
Carriers' Association, and they have been found to be in many respects
inaccurate as to tlgures, as well as in<'onclusive in the deductiims drawn
from them.

His assertion that during the season of l.s91 Canadian canal tolls
were levied, discrinunating against the Port of Ogdensburg to the
aggregate amount of $53,3115.07 would appeal to be widely erroneous.

UECIl'KUCAL 'r ADE WITH CANADA.

teiiients
he Lake

respei'ts ••

IS drawn i^

iiai tolls M

r to the I

roneous. 4

He states that on the total freight shippei by Caiunliaii canals in
18!n to ()f,nlensl)iir<>- tin; tolls paid were .'i<r)5,(Ki7.(>h,

By tln' otticial (;aual returns it appears that tlie total t'rci^dit jiaasin};'
thronj^h tlie Wellaud Canal in 1<S!>1 to Ofideiisburg was really 272,5)47
tons, and tolls ])aid were A5.'i,444.;J7, But of the t(»tal canal freight so
ilischarged at Ogdensbury the classes of grain spccihed by the order
in council, namely, wheat, Indian corii,])eas, barh;y, rye, oats, flaxseed,
and buckwheat, amounted to only 1J>1,(!(>7 tons, and the tol's paid on
the same to ."^.■i.S,;i21.4(); and these are the only articles of freight which
when shipped to Montreal »5onie within the purview of the order in
council for rebate of toll. The Jitterence between the amount of tolls
on goods subject to rebate and the full amount of tolls is therefoie
$34,4.S9.LM5, instead of $r);{,;V.)r..(;7 as stat«Ml by .Mr. Keej).

Of the amount of grain of the character subject to rebate passed as
above through the Wellainl Canal to Ogdensburg 17,S17 tous were
transshiped at that i^ort to Montreal. The rel)ate on tliis quantity, if
allowed, would have been •"?3,2(>7. and this sum constitutes the sole dif-
ference in tolls between the two routes, and the amounts in res[)ect of
which any discrimination could be claimed to exisr. The remainder of
the iyi,<i07 tons passed into the Kastern States.

On freight other than the designated products, discharged at Ogdens-
burg in 1(S!U full canal t(dls were paid and would have been levied on
Canadian vessels in Canadian waters, with no refuiul or abatement of
any kind, Canadian an<l United States vessels being precisely on ;> i)ar
in that resi)e<t.

The Canadian Oovernment can not attach any weight t(» the preten-
sions of Mr. Ivee[) that there is ine(}uality iii the use of the canals be-
tween Canadians ami Americans on the ground that the tolls for the
ivse of the canals going westward are 20 cents per ton, while those for
the use oi' the canals going «'astward are only 10 cents per ton. Except
as regards the grain products, already discussed, he does not assert that
there is any difference m i-espect of the amount of these tolls between
Camidian and American \essels going eastward or westward, resi)ect-
ively, nor that the destination of the cargoes eastward or westward in
any way affects the tolls paid. Canadian and American vessels pay
the same toll foi- i)assing through the canals in tne same ilirecticni, and
are entindy unrestncted in respect of such tolls 1,'y their destination or
by any other extraneous circumstances.

By the or<ler in council of April 4 last it was j)rovided that a refund
of 18 cents per ton shoidd be made for a i>ortion of the canal tolls,
widch were fixed at L'Oc«'nts per ton upon freight of all kinds, collect«'d
on the designated products carried through the \N'<'lland Canal and the
St. Lawrence canals to Montreal, or ;'..!.> port east of M<mtreal, in all
cases wlu're these products weie expoited. and in such cases only. The
sann' order stipulated that products on which the rel»ate could be
claimed should b»' shown to have been originally shipped for M<»ntreal
or some p<ut east of Montieal, and should be carrie«l to such i)oint and
actually sent out of the country, with the proviso that the right to this
rebate should iu)t be lost by reason of inh'rmediate transshipment, if
the place of such transshipment be within the Donunion of Canada.
As regards all other fn'ights passing through the cunals there is no
rebate, whatever may be its destination.

The »-tt'ect of tliis orJer in council is to tix the late of toll on all of the
specified jnoducts passing through the Wellaiul ( 'anal and the St. Law-
rence canals, wiihout distinction as to nationality. Vessels of both coun-
tries are entitled to the rebate and also to transship, provided that such

RECirKOCAL TKADE <N'ITH CANADA.

traiissliipnuMit bo iiiado at a Canadian ]Mnt. It', liowcver, flic trans-
sliipuu'iit takes pliict' at an Aim'ik'au porr. tlic vessel loses its riji' t to
the reltate. And the h)ss of rebate woiihl apply e(iuall.v to botli Cana-
dian and American vessels. In like niiinner, the vessels of neither <'onn-
try would obtain rebate should they land ;it a port short of Montreal,
either on the Aniericiin ('V <";niadiaii sid<'.

Under the provisions of the (»rder in council, it is evident that the
Canadian (lovernnient allow tlu' use of their canals both to their own
vessels and to tlcise of the Cnited States ujton such conditions as to
intluenee a certain class of the tratlic to ])ass down the St. Lawrence to
Montreal; but in the inducement thus held out there is no distinction
made as respects the payment for the use of their canals between the
vessels of the Cnited States and their own. In favoriiiii' their national
route the Canadian Covernment «lo so ou precisely the same conditions
with re<iar«l to both nations, and they contend therefore that th«'yhave
acted in accordance with the oblij-ations which Clreat Britain has re-
qnested them to take under article N«». 1*7 of the treaty of Washington.
The stipulation in that article is that United States citizens shall use
the Canadian camils on teims of e(|uality with the ])eople of the Do-
minion, Ami this equality is, in the opinion of the Canadian Govern-
ment, preserved l>y the imjMtsition of the same c<mditions and thejirant-
inji of the same i»rivileges, with the same restrictions, to vessels of both
nationalities.

By the thirtieth article of the treaty of Washington it was agreed
that British subjects might carry in British vessels, without i)ayment
of duty, goods, wares, oi- merchandise from one ]><u"t or jdace within
. y the territory of the Uinted States upon the St. I^awrence, the (Jreat

Lakes, ami the rivers connecting the same, to another port or place
within the aforesaid territory of the United States, iu<>vided that.a
j»ortion of such transshipment should be made through Canada by land
carriage and in bond. And a pri\ilege exactly corresponding, w?/^(</.s'
muttimh's^ was by the sairte article granted to the citizens of the United
States with respect to goods, wares, or merchandise (tarried from one
point in Canada across the territory of the United States to another
jioint in Canada. By the same article, it was agreed that the U'dted
States might susi>end the riglit of cari-ying, so granted to British sub-
jects, in case the Dominion of Canada should at any time deprive the
citizens of the United States of the use of the canals in the Dominion
on teiins of e(|uality with Canadians. In the authorized protocol to
the conference between the British and United States high «;ommis-
sioners with regard to the thirtieth article of the treaty of Washington
it is stated as follows: -, ,

Tliat they dosirod and it was agreed that the traiissliipmciit arraiigernent should
be uiade dependent upon the nduexistence of (liscriniinating tolls or regulati<)n8 of
the Canadian canals and also upon the abolition of the New Brunswiek ex})ort duty
on American lumber intended for the United States.

The Canadian (lovernment immediately took means to relieve Amer-
ican lunilxT from export duty in New Brunswick at a cost of $150,000
per annum, thus completing the conditions required to retain article 30
in force.

It is a(!Cordingly evid(Mit that from the language of the thirtieth rti-
cle of the treaty supplemented by the protoc(d of the conference on that
article, the remedy which the United States reserved to themselves in
the event of Canada depriving the citizens of the United States of the
use of the canals, on terms of equality with her own people, was pro-
vided for by that article and was long ago resorted to by the United
States.

Rp:(ir'R()(AL TRADi: WITH CANADA.

.')

traiis-
liji' t to
li Caiiii-
cr comi-
oiitrt'iil,

lijit the

icir own
(lis as to
rcnce to

tiiiotiou
vecii the
iiiitional
nditioihs

oy have
has re-
liiiigtoii.
ihali use
the Do-
Go vein -
le jiTaiit-
< ot'botli

1 agre<Ml
>a.viiieut
' within
e (Jreat
or place
1 that, a
by land
, mutatis
' Ignited
ioni one
another
' U'lited
ish sul)-
iiiv<' the
oniinion
tcx'ol to
coniniis-
iliington

it .should
atioiis of
[)oit duty

I' Anier-
M50,(M)()
I'ticle 30

By joint rescdution of the Senate and House nt" lli'presentatives,
passed on tiie ."Sd ol .Maicii, l.SS.J. it was (h-teiinined to ;;iv«' notice to
Canada of tlie ^eiinination (»!' tlie tiiirtieth article of the treaty of
Washington at the end of two years.

On the lM and L'tth of duly, IScS,"*, under orders issued by Secretary
Manniufi'. based ui)on the notice yiven. the juivile^e of carrying; trafiic
dutyfree from one point in tlie • iiited Stat'-s to aiatther pciiiit in the
same territory, across an inte'veninj; portion of Canadian territory, was
linally witlidrawn fnnu Cainidian vessels, tiuis exactinj;' from Cana(hi
the penalty for disciimination in the use of the canals, altlionj;!) no iii-
etpuUity really existed. This i)rivile<ie has not been enjoyed by Caiuula
since the lid of July, ISS."*. though hitherto the Canadian (rovernnH"it
have abstained frctni taUin«;' any steps toward previ'Utin^i' the coMtimuince
to the riiited States of the corresponding luivilej^'e provided for t)y the
thirtietli article (d'the treaty.

While, theietbre. the Caiuuliaii CioveinuH'ut are unable t(» adiiut that
any discrindnatiou in the use of the <Janadiaii canals is nuule against
Cidted States vessels l)y the terius of the order in council, they main-
tain that even if the fact rhat transshipment is contined to a Canadian
poit <'ould be constiMU'd as constituting siu'h discrinnnation, tl.e peiuilty
agreed upou itetween the Cnited States and (.reat Ibitain, in such an
event, has alrt'ady l>een exacted by the lTnit<'d States.

The (Jovernment of the Dcuniinon ar^'. nevertheh .s. as heretofor<',
desir<Mis of maintaiidng fricMuUy relations with the Cnited States, ami
are willing to meet their views so far as is consistent with their posi-
tion and with the interests of their i>eople. They believe that tlu' con-
diti(Uis of the treaty of Washington in respect of international trade
were endmuitly calculated to preserve such andcable relations between
the countries, and in tluMr opinion the most satisfactory way of meet-
ing the ]uesent dillticulty would be to revert iu some degrei; to the
terms of that treaty, in so far as they relate to the question under dis-
<'Ussion. With a view to the furtlierance of a good understanding on
these paints, they wf)uld be disposed to enter into an arrangement such
as the following:

Tliiit. IS rcgiirds tbi' nuviyjiitioii of tlie Wellaml iiiel St. Liiwrcucc ciiiiaLs. tin- im-
position of tolls, iiuil tlie jj;rimtiiijf of relcitrs thereon, the same treiitmeiit will be
accoidi'd to citizens of the Unife<l States as is j^iveii ro the subjects o/ller liritannic
Majesty without regard to )>orts of transsbiiMiieiit or export, and that the I'uited
States will eontinne to deal in lilce manner witli the subjects of Il<n' Hritaimie Ma-
jesty in the use of the existing;' Sault Ste. Mario Canal. That the provisions of ar-
ticle 30 id' the treaty of U'ashiunton, ;irantiny liarryinj;' jiowers to vessels belonyiug
to the subjeetb of Her Ihitannie Majesty, as (leseribed in that article, be restored.

In conclusion, I venture to express the hope that this proposal, which
I am instructed by the .Marquis of Salisbury to submit to your Govern-
ment, will be received by them in the same friendly spirit in whicl-i it is
made, and that it will be found to provide an amicable and satisfactory
solution of the question at issue between the two countries.
I have the honor to be. with the highest consideration, sir,
Your most obedient, humble servant,

Michael H. Herbert.

RECIPROCAL TKADH WITH CANADA.

Memorandum hy Mr. Adee.

Depakoieni of State,

Washington, >Jtnie 28, 1892.

» The reply (tf tlie Caiiadiiin Govonnneiit, as conimuiiuated by dircc
tioii of Lord Ssuisbury in 3Ir. Herbert's note of June 24, oidy deals Avith
^Le stateineiits in regard t<Kliseiiiniiiatiiig tolls iu tlu' Well and and St.
Lawrence liiver canals presented in ilu^ memorials of the Lake Carriers'
Association, which acconii)anicd the Dei)artment's notes to Sir Julian
Pauncefote of Octobei 10, 18111, and March 17, 1892.

The report, prepared by Mr. Partrid^^e, and which acc(*!npanied the
President's nicssuge of June 18, deals more mcth(»di<'ally with the (jues-
tion of the nature and etfeet of th( discriminations. In that repcu't the
discvimination on <4rain earj'oes moving eastward was shown to be three-
tVid: First, that the toll on f>rain for export from Montreal or Canadian
ports cast of ]\[( iitreal is by rebate reduced to 2 cen.ts i)er ton, Avhile
the toll on yrain for export from American ports is 20 cents per ton.
, As to this the Canadian rt-ply says:

ruder thf! provisions of tlio order in eouiicil. it is evident that tli(> CanadiiUi
Gov<'rniiient allow the us;- of tlu'ir canals liuth to their own vessels and to those of
the I'liited States upon sneh ciinditions as to intinenee a certain class of the iratf-e
to pass dowii the St. Lawrence to Montreal; Init in the indnceiiieut thus held out
there is no distinction made as respects the ]iayinent for the nse of their c.nals l>e-
tvreen the vessels of tlie Lnited .States and their own. In favo.in^ their national
ronte tiie Canadian <iovernnu'n<^ do so on ]>recisely the sr ne 'onditions Avith regard
to both ii.itions, and they contend, therefore, thai theyliave acted in accordance with
the oldi,t;a*'ions w hi-li (ireat Britain has reqi. ^"d them to take nnder arti<de No. 27
of the tre;ti,y of Washington.

The order in council does more, however, than favor a national route
of fransportotion — it aims to favov the tiade of c.vf.orttdion from tho
Canadian ports of departure for tbreijEfn traffic. The rebates of canal
tolls are merely au instru.uent to favor theex])oit trade from Canadian
l>orts. If the object were to favor the use of tin' Canadian canals, and
that object were carrie<l out impartially, citizens of the Cnited States
would linvc little or wo cause to eom|)lain. ^Moreover, the defense of
the Canadian Covernment is contincd to alleoing that no discrimina-
tion in fact is made between Can idian and Cnited States n'uscli; car-
rying; the favored cargoes throujih the c.tnals; when the treaty of
V/ashington makes the treatment oi' (■i1i:::rns the sole test of equality in
the use of the canals. That the order does favor and is intended to
favor the citizens of Canada at the exitense of the citizens of the Cnitetl
States is clear, lookinji- at the order as a whole. Were the purpose of
fosteiing the Canadian export trade accomplished by a bounty to tiie
vessels carrying grain cargoes from the St. Lawrence ocean pints, the
case might be ditferent: but the ])urpose is effected by levying differ-
ential tolls in antl tor the use (»f tlie Welland and St. Lawrence I\iver
canals, so that the enctniragement of the export trade is converted into
snch a discvimiiiatior. aga-nst the enjoynu'nt of the canals by citizens-
of the Ci>ited States as the ticaty of Washington expressly aimed to
guard against.

(2) Another iunl more evident discrinnnation against the American
citizen lies in refusing the lesser rate of 2 cents per ton on grain for
exf)ort from Montrcijl or itorts east of Montreal if it has been trans-
shi5>ped at an AnuMi<'an i>ort, Mhde it is a'lowed if transshiinnent be
effected at a ('aaailian uoit.

As to this the Canadian reply merely says, " the losh of itbate would
ai>ply e«puilly to both Canadian and American ve;:8el8,'"thus narrowing

RECil'KUCAl, TKADE WITH CANADA.

the contention to the equal treatment of vessels and ij;noi'ing the en-
gagements of the tiej.ty as to the equal treatment of eiiizens. The
reply ftuls ro meet the complaint. Moreover, it is at v'ari,.nce with the
allegation elsewhere pur forth that the purpose of the order is to en-
courage the passage of grain cargoes through the canals, for, i^ fact, it
directly dis^-iairages a large tratlic which would pass through the
Welland Canal if the sui)erior facilities for transsliij>ment atto»(led by
("he elevators at Ogdenshiirg and Oswego were an inducement to send
grain cargoes i)y the Welland route. Tue oi'der i:: in this regard a
naked discrimination against the^Smerican citizen, for the enforcement
of which the canal tolls are employed as a convenient instrument.

(3) As to the traffic passing thro.igh the !St. Lawrence Kiver ca-nals,
a third discrimination exists which is in absolute and open violation of
the intent of the t"<^aty, for if the starting ])oint of the grr.in cargo for
exjtort be a Canau n Lake Ontario port, tlie toll is but 2 cents ])cr ton,
while the 2()-cent rate is exacted on grain for the same destination from
the American Lake Oiitai; • ports. This is a new discriieination, ap-
pearing for tne tirst tiiiic in the Canadian order of April 4, 1S1'1\ and
imposes !i diflerential treatnuMit against American i>orts and American
citizens intt existing, or even contenrplated as ii proi);ii»ility. when the
Lake Carri«'rs' Association presented its memorial of September IS,
1S!)1, to which the i)resent note of the British charge jMirports torei)ly.
The Cani;;lian argument is, therefore, silent as to this, ])erhaps tlie
most inteiitioiudly vexatious discrimination against thestijmlated [tvi\-
ileg«^ of citizens of the United States to use tiie Canadian canals "on
terms of equality with the inhabitants of the Dominion."

(4) A fo'irth discrimination as re I'.irds the system of tolls adopted
in the Welland Canal was applied by a I)<nnini(»n order of April 11,
1S!>0, regulating the tolls on coal. I»y that order the toll on coal pas-
sing down the canal, eastward bound, was reduced fiom LM) cents to 10
cents per ton, but tlie full toll ofL'O cents ju'r ton was left o'UMial bound
up the canal, westwai-d. The memorial fully exhibits the discrimina-
tory effect of this difterence between eastward and westward rates,
showing that the down rate of 10 cents applied in 1S!I0 to lili,7Sl tons
of coal carried m Canadian vessels to Canadian ports and to only <►!.■»
tons carried in an Anu^rican vessel to an American port. Of the coal
carried uj) the can.d and conqtelled to pay a ioll of L'(> (cnts, I1(»,<1H5
tons were carried between poirs of the Cnited States. IT.L'Sd tVwm a
United States to a Canadian port, and S() Ions only between Canadian
ports. This adroit maniimlation of the tolls (q)erates to tat the «*om-
merce of A?neric;in citizens much more heavily than thatof Canadians,
and goes far to exi»laiii the statement —

Tliiit <if thf toti'l r:i !•;;•<) tiMiniiijc iit' tlu! Wi'lluu.I Cinial during- the yi'iir IH'IO. r>7 per
('»'iit dcstiiu'd tor Aiix'iir.an ports jiHiil moif than 7- per leii! ot'tlic tolls, jhhI I'.i j)er
ci'iit ilestine'l for C'an.itliaii ports paid loss tUau ',iH per cent of the tolls.

This statement, supported as it is by Canailian oflicial statistics, is
(dismissed by the <"anadian rei>lyas follows:

riie Canadian (iovcrnnn'iit can not attach any wi'ijcht to tlic pretcnwions of Mr.
Ketp that there is ineiiiiality in the use of thecanaN hctween Can.idians and Aineii-
cans on the jiround that the tolls for the nne of ti.e canal jioi'ifj westward art 20
o^iits per ton, wliile those for th( nse of the canal uoinj,; eastward are only 10 cents
] \ r ton. Hxcej»t as re^ardii tnt^ j,;rain pi. (ducts already discnsMed, ho iloes not assert
that there is any liifferencc in lespect of tlie amount of tliese t(dls between Canadian
and American \ esM«<ls uoin^ eastward or westward, respectively, nor that the d "sti-
nation of 1\u- cariiors eastward or woitward in any way affects the tolls paid. Cana-
dian and American vcss«>]s pay the same toll for jiassiny: through the canal in the
same direction, and !ire entirely tiiirestricted in respect of siu li tolls by their desti-
nation or by any other ei.traneous < ircninstanceB.

BECIPROCAL TRADE WITH CANADA.

Here a<>nin, as throughout the note, the hinguage of the treaty as to
the equal treatment of the eitizens of the two countries, in their enjoy-
ment of the facility of coastwise transit, is lost sight of and a defensive
argument is based on tlie eircuinstiuice that no ditfeieutial toll is im-
posed on the vessels of eithei' party.

Of the four classes of discrimination existing, under the difterential
system of tolls and the differential regulations as to points of origin
and transshipment, the Caniulian reply deals with three, and with
those only by denying that any diflerential riles are applied to the dis-
favor of American vessels.

The (Janadian reply disjtutes the iiccurncy of the figures given in the
nu'inorial of the Lake Carriers" Association respecting the levy of tolls
to the aggregate amount of .*53,3!>r).07 in disciimination against the
freight ship])ed by Canadian canals in 1<S!M to Ogdcnsburg. By con-
lining the examination to the grain stuflV actually transshi])ped at
Ogdcnsburg to . lontreal after having come through the Wclland Canal,
Avliich in 1S!M aniounted to ir,817 tons, the Canadian replv concludes
that—

TlnA rebate tm tlii» (iiiiuility, if allowed, would have lieen !}!3,207, and this sum eou-
stitiites the soil- diti'cienee ill tolls between the Iwo routes, and tlie only amount iu
resjH'ct ol' whiih any discrimination could be claimed to exist.

Tlitn'c is no suggestion that the reduction of the Montreal -bound
transshipments at Ogdcnsburg to the j)altiy figure of 17,S17 tons may
not liave been the direct result of the discrimination complained of;
and had the result of the order l>een altogether proiiibitory and no
transshipments of grain for Montreal been ertected at Ogdcnsburg, it
may be infened tiiat tlie Canadian (iovcrnment would have found
therein evidence tliat no " difference " whatever exists "in tolls between
the two ro'ites."

<»>uitting the defensive argument in sui)i)ort of the contenticn that no
discriminating treatment results from the system of tolls adopted in
the Canadian canals, the re])ly of the Dominion goes on to propose a
compriunise agreement, as follows:

That, as lejfards the iiavi.natiou of thi' Wclland and i^t . Lawrence canals, the ini-
]>ositi<ni of tolls and the ;;r;uiTinj>' of rebates (hereon, the siiine treatment will be ac-
«'orded to citi/eiis of the I'nited States as is <jiven to the subjects of ller Uritannic
Majesty withoul rejj;aiil to ]iorts of transshipment oi- exitort, and that tlie I'uited
States will cdiitinne to deal in like manner with the subjeits of ller Mritanni<^
Majesty ill the use t)f the existinj^ 8ault Stc. Marie Canal. That the pros'isions of
article 30 of the tit'aty of \\ashinj;toii, <;rantin.u; cairyiuj;; powers to vessels iiidoii;^-
iufi to subjects of ller Ibitannic MajeKty, ;is de!,criitcd in that arti<le, be restored.

Tlu' thirtieth article of the treaty of Wasliington reads as tblhnvs:

AlfTICI.K XX.X.

".fi

It is agreed that, for the terms of ycaii mentioned iu aitich' w.xin of this treaty,
Huhjectsof ller nritannic Majesty nia.v carr> iu liritish vessels wilhont payment oi'
<lufy ijooils, wares, or merchantlise Irom one jtori or )dace wiihin the t'-nitory of the
I'nited States u|)(Mi t lie St, Lawr«>nc<'. the (iieat l.aki-s, and the rivets eoiiiiectinji
the same to auoihcr port or jdai'e within th»' territory of the liiited States as .ifore-
Naid ; I'roridxl. i'hat a portion o|' such tr.inH)nirtation i> made throuiih the Dominion
ofCanad.i liy land carria;;'e and in lumd, under such rules and renulatious as may
be ay;reed upon between the <jovernnumt of Her Hritannie Majesty and the (ioveril-
nient of the I'nited .States.

Citi/eiis of the I'liited States may forthelike period carry iu I'nited States vesseln
without ]>ayment of duty );oods, wares, or nu>rehandise from one pint or ]>laee
within the jtossessions of ller Uritanuic Majcty in North j^;iierica to another port or
place within the said possessions: I'roviihii. Tliai ;i portion of such transportation
Is made throu^Ii the territory .d'the liiitcd States by lai d carriage and in liond, un-
der such rules and rennlatious aw m.i.\ be agreed upon betwcn the (Jovornnieut of
the United Stites and the (iovernmeut of ller Britiuiuie .Majesty.

RECii^ROCAL TRADE WITH CANADA.

origin

biii'g, it

Tlie Goveriinenfc (ifthe Uiiitod

duties on f^ootls, wares, or incicli;
tory of the I'liitcd States, and lie
inontoftlie Dominion of Canada
l)ose any export duties on fiooils.
and the Goverumeut of the Inite
]H)8ed by tlic Dominion ot'Canad;
imposed, the ri,i;ht of earrying ^i
IJer Britannic Majesty.

The (Jovevumeut of the Unite<l
in favor of tl)e snhjeets of Her Hr
minion of Caunda should :it any t
use of the canals in liu' said Doni
tlio J)ominion, as jirovided in arl i

States further engages not to impose any export
indise carried under tliis arti<'le tlirongh tlie tt>rri-
■r Majesty's (iovernment engages t«) urge tlie parlia-
and the legislatures o*' tlie other colonies not to ini-

Avai'cs, or merchanilise carru'd under this article;
d States may. in case such ex]jort; duties are im-
I. susiieml, during the period that such duties ;ire
anted under this article in favor of the subjects of

States may suspend the right of carrying granted
itannic ^lajesty undei' this article m case the Do-
inie de]iri\e the citizens of the United States of the
inion on terms of ecjuality with the inliabitaots of
icle wvii.

With rtijiiu'd to the hist chviise of this article, giving to the United
States the ])o\ver to suspend the earrying rights of Caniidiins in the
United States in the event of Canada's denying equal treatment to
^inerieau citizens in tiie use of the Dominion <'anal.s, tlie Canadian re-
ply ([uotes from the anthoiized jnotocol of the high commissioners —

That they desired and it was agrei-d that the transshipment arrangement should
be luade dejicndent niton the nonexistence ol" discriminating tolls or regulations
of the Canadian canals, and also upon the abolition of the New liruuswiek export
duty on .Vmcrican lumber intended for llie I'nited States (For. Rels., IS71, p. 511) —

and i)roceeds to argue tliat —

It is accordingly evident that frt)ui tl.^ language of the thirtieth article of the
treaty sn]>plemcnted by the })ridoi'ol of tlie conference ou that article, the remeily
Aviiich tlie I'uitcd States reserved to themsch es in the event of Canada depriving
the citi/cns of the I'uited States of tin; use of the canals, on terms ot' equality with
her own ])eople, was provided for ity that article and was long ago resorted to by
the I'nited States.

throngli the teiinination oi" the artich^ in ([uestion in -Inly, I.S80, by two
years' notice given by the Unitefl States in l.S.s."] —

rinis exacting from Canada the iteiialiy for discrimination in the use of the canals,
although no inequality really existed. * *■

While, therefore, the Canailiau <iovernin«uit are unable to admit that any discrinu-
natioii in the use of the Canadian canals is made againsr Cnited States vessels by
the ternis of the order in ciuincil, they n'aintain that.e\cn if the I'aet th.it tr.ans-
shipiMcnt is eonliued to a Canadian port could be construtid as constituting such a
discrimination, the penalty agri'cd u])on between the United States and Great
laitain, in sin-h an event, has already been exacted by the United States.

Artich' .■{() was one of several rcmiiiating tlie tishing ]>rivileges and
ccitiiin jiliases of the intercourse of tlie I'nited Stiitcs and Canada
\vlii( li were incorjiorated into the tre;it.\ of Wasliington tind to whicii
a duration was assigned, of ti'ii y«'ars certain and tlicrciifter until two
years" notice (»f their teiininatifm sliould be given ]>y either party, tia
l»ro\ idi'd in tlie thirty-third article of the tn'iily, as foll(»ws:

RECIPROCAL TRADE WITH CANADA.

Tlie laiifjjuage of the ])rot(M'ol of the conference, (|Uoted in the Cana-
dian reply, may be riglitly taksn as representing- th(i judjtfment of the
High Commission that an enj;a{ivment binding the l'nit<Hl States to
grant a privilege to Canada for a term of years Avas not equitably cor-
relative witli tTie reciprocal nualiiicd privilege granted by Canada in
respect of the Dominion canals, which in terms was dependent upon
the pleasure of ('anada and liable to be terminated at any time by ad-
verse legislation or regulation. The meaning of the concluding jiroviso
of article ."JO is clearly that, in the event of tlie privileges of etpuil en-
joyment of the Dominion canals by citizens of the United States being
withdrawn or curtailed, the United States might retaliate by forthwith
suspending the recii)rocal transit ]>rivilege under article 30, even
though the period ftxed ftn' the duration thereof should not have elapsed.
Tlius, had discriminating measures been adopted, in respect to the
Canadian canals, at any time during the ten years' life of the article, or
(luring the two years succeeding notice given of its termination, the
United States could have at once suspended the transit privileges
granted to Canadians within the territory of the United States.

This right of suspension was a mere incident of the peculiar relations
of transit and intercourse created by articles :i7 and 30 of the treaty of
Washington, and is wholly differ<Mit, both in intent and in effect, from
the right of termination given in regard to those and sundry other
articles by the thirty-third article of the treaty. The right of su8i)en-
sion could be exercised, foi" cause, by the United States alone, the case
arising. The right of abrogation was common to both (Jovernments, to
be exercised by either at its ]»leasure after a dcHned term slumld have
elapsed, if in its judgment the continuance of the relations created by
those articles should be found inexi)edient. Like all engagements of
intercourse and recii)rocity, the articles in question were tentative, and
their continuance after a certain time was to be depeiulent on their ccm-
tinuing to work in a manner satisfactory to each of the contracting par-
ties. The United States, for considerations of domestic convenience,
saw fit to exercise the right of abrogation at the earliest i)ossible date
permitted by the terms of the treaty. It ih irrelevant to associate fhis
exercise of an o)dinary right of termination, common to all treaties of
commercial intercourse, with the idea of a penalty for a shortcoming as
yet nonexistent on the ])art of the other contracting party.

The Canadian argument fippears to regard the authorized and nor-
mal tertnination of article 30 as operating, iiuletinitely and for all fu-
ture time, to exhaust the power of itenalty and retaliation for any fail-
ure of Canada to fultill the intended engagement of e«iuality in the use
of her canals. The mere statement of this pro])osition suffices to dem
onstrate its untenableness.

The ])ro])osition to secure for Canadian citizens and prodticts S(mie
additional privilege of transit within the United States, as an offset or
pret<'nded e(|nivalent for the enjoyment by Americans of the facilities
of the Dondnion canals on an identical footing of equality with Cansi-
dians, is not new. It was incidentially suggested in the conferences
held on the 3d and 4th of June. 1 SOL', between the Secretary of State
and the Canadian comndssioners, but was disnussed without serious
consideration. It canu' up also in the same conference in the form of
a proposal that the free navigation of the New York Stat<> canals and
the Huds(m Kiver should be granted to Canadians in return for the re-
moval of the discriminating canal tolls of the Dominion, and was again
dismissed. It is now jtresented anew in its original form.

Kegarded as a whoh', the Canadian reply fails to nuHt (he just com-

RECIPROCAL TRADE WITH CANADA.

plaints of the United States. It narrows the issue to the treatment of
American and Canadian vessels in respect to tolls in the Welland and
St. Lawrence canals, and to the denial of rebate to cargoes of grain
stuffs actually transsliipped in an American port for export from ^lou-
trcal, or a port east of that city. It ignores the adroitly devised sys-
tem by which the traffic of citizens of the United States is made to
contribute a much larger percentage of tolls in the Welland Canal than
the traffic of Canadians. And it is altogether silent touching the dis-
crimination, introduced into this season's order in council, withhold-
ing the export rebate from cargoes coming from any port on the United
States shore of Lake Ontario.
Eespectfully submitted.

Alvey a. Adee,
Second, Assistant Secretary.

52d GoNaBESs,
Ist Session.

IS INNATE.

Ex. Doc.

^^). 114.

m THE SENATE OF THE timTED STATES,

f « ■

>:l,--" :• • MESSAGE-:;::?:::-;::.;';-

— • ■ FROM THE

PRESIDENT OF THE UNITED STATES.

IN liKSI'OXSK TO

Senate resolution of Fehrnorii 'J J, l!^'J2, reUdive to nef/otiationfi for recip-
rocal trade ivith Canada.

June 20, 1892. — Reiul, lelerietl to the Committee on Relations with Canada, and

ordered to be printed. ,.^.,

To the Senate of the United States: ■-.'

The following n'solutioii was i»iissed by tho Senate on the 24th day
of February last:

ReHolv<:d,'l'hiit the I'residt'ut l)e i'e(|ut'st('d, if in his opinion not incomjiatihlc with
thepnlilic interests, to inform the Senate of the jtroeeedinfis recently had with the
representatives of the Dominion of Canada and of tlie IHritish (iovernment auto
arrangements for rtMi])rocal tradt; Itetween Cani:da ami the I'nited States.

In response thereto I now submit the following n<forniation:
On tin' ir)tli day of Ajtril last tin' Secretary of State submitted to
me a report, which is hei'i'with transmitted. Shortly aft«'r the report
came into my possession I was a<lvise(l by the Secretary that the British
minister at this capital ha<l informed him that the Canadian Govern-
ment desired a further conference on the subject of the discriminating
canal tolls of which this country had <*omplained. Tliis information
was accomi)anied by the suggestion that a res[)onse to the resolution of
the Senate might properly be delayed until this further conference was
held.

On the .'id instant the Britisli minister, in connection with Hon. Mac-
Kenzie Howell and Hon. George 10. Foster, members of the Canadian
udnistry, were received by the Se(;retiiry of State, and a further con-
ference took place. In b()tli of the <',onferences referred to Hon. ,Iohn
W. Foster, at the request of the Secretary oi" State, aj)i)eared with him
on behalf of this Government, and the report of the latter conference
was submitted to me on the <>th instant by Mr. l*'oster, and is herewith
transmitted. The result of the conference as U> the practicability of
arranging a reciprocity treaty with the Dominion of Canada, is clearly
stated in the letter of Mr. Blaine, and was anticipated, 1 think, by him
and by every other thoughtful American who had considered the sub-
ject. A leciprocity treaty limited to the exchange of natural products

mmn

RECIl'ROCAL THADE WITH CANADA.

would luive bfH'H such cmly iu fonn. The beiietits of such a treaty
Avouhl have inuied almost wholly to Cauada. Previous experiments
on this line had lte<'u unsatisfactory tt) this (roverument. A treaty
that should be recipiocal in fact, and of mutual advantage, must nee,-
isssarily have eiubra<-ed an imjMUtant list of manufactured arti<*les, and
have secured to the Unite<l States a free or favored introdueti<m of
these articles into Canada as apiinst the world; but it was not believed
that the ('anadian ministry was ready to i)roi)ose or assent to such an
arrangement. The conclusion of the ( 'anadian commissioners is stated
iu the rejxut of Mr. IJlaine as follows:

Iu the setroiul place it scciiu'd to be iiui)Ossil>le for flic Canailinn (ios «'rnnieiit. in
view of its jufHeiit ])olitical rt'lationH and olilijjatioiis. to exteiid to Aiiiericiiii goods
a preferential treatment over tliose of other countries. As Canada was apartof the
British Empire, they did not consider it conijtctent tor the Dominion Government to
enter into any commercial arrangement with the I'nitcd States, from the Itenetits of
■which (Jrea*^ Britain and its colonies should be ex<luded.

It is not for this Government to argue against this announcement of
Canadian official ojnnion. It must be accejited, however, I think, as
th(^ statement of a condition which jilaces an insupej able barrier in the
way of the attainment of that lar^e and beneficial intercourse and
reciprocal trade which ndght otherwise be developed between the
United States and the Donnuion.

It will be noticed that Mr. Blaine rejjorts as «me of the results of the
conference —

an informal engagement to rei)eal and abandon the drawback of 1^< cents a ton given
to wheat (grain) that is carried through to Montreal and sliii)}ied therefrom to Europe.
By the American railways running from Ogdeusburg and Oswego ami other Ameri-
can ports the shipjters paid the lull 20 cents a ton, while in effect those by the way
of Montr< 1 ](ay only 2 cents. It was uiulerstood that the Canadian commissioners,
who were ill three members of the cabinet, would see to the withdrawal of thie
dis('rimiuation.

From the report of the recent conference, by Mr. Foster, it will be
seen that the Canadian comndssioners declare tliatthis statement does
7U)t conform to their understanding, and that the only assurance they
had intended to give was that the complaint of the Government of the
Urdted States should be taken into consideration by the Canadian min-
istry on their return to ( )ttauwa. Mr. Foster, who was present at the
first conference, c(m firms the statements of Mr. Blaine. While this
misunderstanding' is unfortunate, the m<ue serious ]>hase of the situa-
tion is that, instead of rescinding the discriminating canal tolls of which
this Government complains, the Canadian ministry, after the return of
the comndssioners from their visit to Washington, on April 4, reissued,
Avithout any comnuiincaticni with this Government, the order continu-
ing the discrindnation, by which a rebate of IS «'ents a ton is allowed
up«m grain going to Montreal but not to American i»orts, and refusing
this rebate even to grain g(»ing to JMontieal if transshipped at an Ameri-
can port.

The report of JMr. Partridge, the solicitor of the Departnu'ut of State,
which acconii»anies the letter of the Secretary of State, states these
di.scrindnations M'ry clearly. That these orders as to canal tidls
aiul rebates are in (lirect violation of aiticle -7 of the treaty of 1871
seems to be clear. It is wholly evasive to say that there is no discrimi-
nation betwe«'n Canadian and .Vmericaii vessels; that the rebate is
allowed to both, without favor, ui)on grain carried through to Miuitreal,
or transshipi»ed at a Canadian port to Montreal. The treaty runs:

To secure to the citizens cf the United States tlie use of the Wellaud. St. I.,aw-
reuce, and other canals in the Dominion ou terms of eciuality with the inhabitants
of the Dominion.

. \

suggest

RECIPROCAL TRADE WITH CANADA. 3

It was intended to give to consumers in the United Stfiteis, to our
people engaged in railroad transportation, and to those exporting from
our ports equal tenns in passing tlieir uiercliandise tltrough these
canals. This absolute equality «)f treatment wvs the consideration for
concessions on the part of this (Government made in tlie same article
of the treaty, and wiiich have l»een faithfully kept. It is a matter of
regret that the Canadian Government has not resinuided promptly to
our request for the removal of these discriminating tolls.

The papers submitted show how serious th*- loss intlicted is upon our
lake vessels and upon some of our lake ports. In view of the fact that
the Canadian commissioners still contest with us the claim that these
tolls are discriminating, and insist that they constitute no violation of
the letter or spirit of article 27 of the treaty, it would seem approjjriate
that (Congress, if the view hehl by the Executive is ai)proved, should,
with deliberatitui and yet with p* >mptness, take such steps as may be
necessary to secure the Just rigliis of our citizens.

In view of the delays which have already taken place in transmitting
this correspondence to Congress, 1 have not felt justified in awaiting
the furtlier communication from the Government of Canada which was
suggested in the recent conlerence.

Should any proposition relating to this matter be received, it will be
immediately submitted for th<' consideration of the Senate; and, if
forwarded within the time suggested, will undoubtedly anticipate any
final action by Congress.

^ - : Ben.t. Harrison.

Executive Mansion.

June 20, 1892. V. . -V--: '^ ;> > -. . v; .^,.^

Department of State,
Woahinf/ton, April 15, 1892.
To the President:

The Secretary of State, to whom was referred the resolution of the
Senate of February 24, 1S92, recpiesting the President if, in his oi)inion,
not iiu'ompatible with the public interest, to inform the Senate of the
proceedings recently had with representatives of the Dominion of
Canada and the British Government as to arrangements for reciprocal
trade between (Canada and the United States, has the honor to submit
the following report:

In the month of 0(;tober, 1890, Hon. Robert Bond, cohmial secre-
tary of Ni'wfoundland, visited W;ishington for the purpose of confer-
ring with the Government of the United States respecting the commer-
cial relations between Newfoundland and the United States, lie was
"presented to me by the British minister in this city, Sir .lulian Paunce-
fote, and aft»'r various conferences, continuing thrcmgh the montlis of
October and November, a draft of a reciprocity convention between
the United States and X(nvfoundlan<l was framed and foiwarded to
Loudon for the action of the British (Jovernment.

This fact having come to the attention of the Government of the
Dominion of Canada, a strong protest was forwarded by it to the British
Goverinnent against the ratiftcati<in of the action of the coloniMl minis-
ter of Newfoundland, an<l this was foUowed, in December, 1890, by a
proposition initiated and made to me by the British minister in Wash-
ington, for the opening of formal negotiations in this city for a treaty

KECIPllOCAL TRADE WITH CANADA.

embniciiif; ckiii luncial reciprocit'' with Oaiiiida, tlic lislnu'U'H, iiiul other
uiisetth>(l (iiiostions witli tlie Dominion (loverniiu'ut. I (Inclined to
open fornuil n('ji(>tiiiti(»n.s,but stat«Ml that I would be willinj^' to iiavca full
<iiul pri\at(M',onftn'<'n((' witli tlic liritish minister nndoneor more a;;'<'nt.s
of Canada, and consider with rliem every subjj'ct connected with the
rehitions of the tw(t couidiies upon wiiicli a mutual interest could be
found'<|. with a vi«'\v to fornnd ne<;<itiations should the ]»i'oposed <-on-
ferenee indicate a probability of agreement on any of the sultjects dis-
cuss«'d. This basis was accepted by the IJritisii miinster and the Do-
minion (lovernment, l)nt for various reasons of conveineiu;e to tiie meni-
bersof the pro])()sed conferen -e it did not tal<e place until I'Y'bruary 10,
when the Britisli niiidster presented to me, at the Depaitrtient of
State, Sir John TlKHnpson, minister of Justice, lion. (Jcoi-fje K. Foster,
minister of lin;in;'e, ami lion. Maclvon/ie Uowell, minister of ('ustonis,
as conunissioners on the part of the (ioveinmeiit of th«' Dominion of
Canada, to i)artieipate w^ith him in the conterenee.

At the Hrst conference, on February 10, the commissioners stated that
they were autiiorized by the Canadian government to propose the re-
newal of the reciprocity treaty of 1.S54 (which was terminated in l.SO(i
by the action of the Congress of the United States), with such nnxlirt-
eati(ms and extensions as the altered circumstances of both countries
,an<l their lespcctive interests might seem to require.

In answer to an inquiry, tiie coinniissioners stated that the mixliti-
cations or extensions contemplated in the schedules of articles should
be confined to natural i)roducts and should not end)race manufactured
articles.

The commissioners were informed that the Government of the IJuited
States would not be ])repared to renew the treaty of 185+ noi' to agree
upon any commercial reciprocity which should be contined to natural
products alone; aud that, in view of the great development of industrial
interests of the United States and of the ehanged coiulitions of the com-
mercial relations of the two countries siuce the treaty of isr)4 was nego-
tiated, it was regarded of essential impiu'tance that a list of nuxnufac-
tured goods should be included in the schedules of articles for free or
favored exchange in any reciprocity arrangement which nught be made.

The commissioners tlu'U incpdred if the (lovernmeut of the Uuited
States would expect to have preferential treatment extended to the
list of maiuifacturcd goods of the Uidted States on their introduction
into ('auada by virtue of a reciprocity treaty, or whether it would
regard the Canadian (luvernmeut as at liberty to extend the same
favors to the numufactured goods of other countries not parties to the
treaty on their introduction into Canada.

The rejdy given them was that it was the desire of the (rovernment
of the Uuited States to nudce a reciprocity convention which would be
ex<'lusive in its a[q>licati<ni to the United States and Canada, and that
other countries which are not parties to it slnmld not enjoy gratuitously
the faviU's which the two neighlxuing countries might reciprocally con-
cede to each othei- for valuable considerations and at a large sacrifice
of their respective reveiuies.

Upon receiving this reply, the Canadian connnissionci's asked that
the further considcratiiui of the subject be adjcuuned till another con-
ference, to enable them to c<Hisult as to the course which they would
adopt in view of the foregoing declaration. ■

In the confereuee of the 11th the Canadian commissiouers stated
that they had given careful consideration to the suggestion that manu-
factui'ed goods should be included in the schedules of articles for ex-

■ *

RECIPROCAL TRADi: WITH CANADA.

cliau<?e ill a icciprocity <'(Hiventioii, and to the, desiro expressed by the
Govenimeiit of the United States tiiat such American <,n)ods on their
introdnction into Canada should he aecorch'd jaeferential treataient
over siniihy yoods from other countries; and tliey announced, with an
expression of re.i;ret, tiiat they did not c<Misider it jtossihh' to meet the
expi'ctations of I'le (io\erninent of the United States in tlu'se lespects.
In the first place they enciamtered a serious oi>stach' in tiu' matter of
revenue, if any cousideral»le listof manufactnred ^ioodsol' the TTnited
States slumid l)e admitted free into Cana<hi, it would entail a nutterial
loss t«) the Dominion treasury, and if the same favors were hke wise, ex-
ten(h^d to the men-handise oi' other countries the loss of re\-cnue wcmld
be much ji;reater. They felt that they wouh' not b(! able ut rec(aip
these losses by other methods of taxation. In the second i>h>ce, it
seemed to be impossil)le for the Canadian (iovernment. in view of its
l)resent political iclationsand oldii-ation.,, to exten<l to Anu'ricau j;oods
.1 preferential treatment over those ofotlier countiies. As Canada was
a part of tlic liritish I^jUipire, they did not consider it competent for the
Dominion (loNcrnmeut to enter into any commercial anaiif;ement with
the United States, from' the benelits of which Crreat llritain an<l its col-
onies should be excluded.

The announc(5ment of these (tonclusions of the Canadian comniis-
8ion»rs was accei>ted as a l)ai' to further ne'-'otiations (Mi this subject,'
and it was not afjain discussed, except in connecticm with the fishing
privilejics (ui the Atlantic coast.

In the confcreiM'c of F('l)ruary 12, a proposition was nuule by the
Canadian commissioners that in the United States and Canada all duties
should be renujved from tish and the products of Hsh. and that the
Canadian licenses now granted United States lishing \essels and the
privileges incident thereto be accorded them free of charge.

This proposition was not accepted tor the reas<nis that the privileges
therein ottered to Anu'rican tishermen in Canadian territory was only a
partial and an inaderpiate relief from thediscrimimition and inequality
of which they had so huig complained, and that the measure of reciproc-
ity contained in the ])roposed free admission of tish into the two coun-
tries was not regarded as reasonable or equal.

In the confereiu'e of the 11th the Canadian Connnissiouers proposed
that the privileges of the coasting trade both in the waters of the
Atlantic coast and of the lakes be recipro(;ally open to the vessels of
both Canada and the United States; but the proi»osition was declined
as one which the Government of the United States was not at juesent
disposed to consider.

Other questions were informally discussed by the conference. A com-
mission to fix the bouiulary separating Ahiska from British territory
was the first.

The next was the regulation respecting wreckage on the Great Lakes,
and the rules governing the same.

Th<; third was the appoiutnuMit of a ciuinnission of oiu* expert 'from
each country to examine and report the measiues necessary to arrest
certain pra<*tices which are detrimental to the tish in both «'0untrie8.

The fourth was that of placing a line of buoys lui the line between
the two coiuitries, on the St. Croix River where it loses itself in Passa-
macjuoddy Hay. These several subjects were favorably considered by
the conference. They will l>e subjects for consideration in an otticial
conference, or some of them may be disposed of by legislation between
the two countries.

BECII'ROCAL TRADP: WITH CANADA

The (iftli was an iiifoniial fiiiyajjeiiuMit to repeal and abandon tbe
diawback of l-S cents a ton };iven to wheat that is carried thioiifi'li to
Montreal and slii])|K'd tlieref'roni to Europe. By the American lailways
running IVoin ()<>(lcnsl>nr}4" and Oswego and otiier Auierieay ])orts tlie
sliippers jiay the tnll L'U cents a ton, wliih' in etfect tliose by tiie way
of Montri'al pa\ only 2 cents. Fi was understood that tlie Canadian
<!OiniMissiouers, wlio were all thict; nuMubers of the cabinet, would see
to tlie withdrawal of this discrimination. It is obviously in vi<»lation
of the provisions of tiie twenty-seventh article of the treaty of 1.S71.
We learn of late that it has Imm'U leiinposcd for the year 1<S1)2, and
unless we icsortto some form of retaliation our shippers and transporta-
tion eomjjanies will be subjected <'ontinually to this unfair charjjfe, I
jil)pend hereto a ie[)ort from the Solicitor of this Department, setting
forth in detail the facts of this discrimination and copies of corre-
.spondence relating to the subject.

The conferen -e closed on the IGth of February last.

Attached hereto is the list of articles agreed upon tVn- reciprocal ex-
change by tin' treaty of l.s.")4, which was terminated in 1<S<;g by means
of a joint resolution of the ('ongiess of the United States. It wilH^e
seen that the articles were conlined t^^ natural products.

With few exceptions, the articles of the schedule are piodueed in
both countries in abundanci^. Both countries have a great number of
them for exjxut. They do not form the basis of a treaty of reciprocity in
the proper sense. The re<iprocal treaties made in l-siU uniformly took
from this country something which the others did not produce and
gave us something which we did not jn-oduci'.

In 1S74 the British minister in this city, aided by plenipotentiaries
from Canada, framed -a reciprocity treaty and ]>roposed its acceptance
by the (Jovernment of the CJnited States. The President submitted
the unsigned draft to the Senate for its consideration and advice, but
it failed to receive the apinovid of that l»od\'. The schedules of arti-
cles in the projtosed treaty not only embi'aced all the natural products
contained in the terminated treaty of 18o4, but in addition a long and
important list of manufactured articles, which enhanced its value to
the United States ovot tin' treaty of 1854.

The trade statistics for 1800 show that the total exports from Canada
into the United States amounted iu value to »i!39,04li,()00 and of this sum
$38,442,000 consisted of natural products.

The chief competitor of the United States for the import trade of
Canada is Great Britain. For the last tiscal year the import trade was as
follows : From the United States, *53,68.-),057'; Great Britain, $42,047,r>26 ;
all othei- countries, .f 17,011,941. If Great Britain should be permitted
to enjoy gratuitoiisly the beneftta conferred ujwn the United States by
means of a reciprocity treaty, its benefits to the latter country would,
in a great measure, be neutralized.

Respectfully submitted.

James G. Bl'aine.

KhCIPIiOCAL TRADK WITH CANADA.

[Article rir, Treaty wlt)i Orvat Hrltalii of 185i.]

It is iifi^rued that t1it» articles emiinurati
tho yiowtli aiul inodiico of tin- id'oresai
sliall l>i; ailmitteil into each country rcspi

Grain, Hour, an<l brtiadsmiVH of all kinds.

Animals of all kimlH.

Fre.sh, siuokcil, and salted moiits.

Cotton wool, siumIh, and vegetables.

IJndricd fruits, dried fruits.

Fisii of all kinds.

Prodmtsof tisli, and of all other creatures

living in tlie water.
Poultry, eggs.

Hides, furs, skins, or tails, undressed.
Stone, or marble, in it.s crude or un-

wronght state.
Slate.

Butter, cheese, tallow.
Lard, horns, manures.
Ores, of metals, of all kinds.
Coal.

d in the sehttdule hereunto annexed, being
d British colonies or of the United States,
etively free of duty :

I'iteh, tar, turpentine, ashes.
I Timber, and lumber of all kind.-*, round,
I heweil, and sawed. unmanufactured in
I whole or in i)'M't.

I'irewood.

Plants, shrubs, and trees.

I'elts, wool.

Fish ni\.

Kice. broom corn, ;iud bark.

r}yi»sum. ground or unground.

Hewn, or wrought, or unwrought burr
or grindstones.
I Dyestutt's.

FJax, hemp, and tow, uumauufai tured.

I'limanufactrieil to -acco.
I Kags.

[Article IV, Draft of Treaty with Ureat Hritiiiii, 1874. |

It is agreed tluit the articles enumerated in the Schedules A, M, and C, hertMinto
annexed, lieing the growth, produce, or manufacture of the Ij'ominionof (.'anada or
of tli(^ United States, shall, on their imjKjrtation from the one country into the other,
from the 1st day of July, 187."), to the .SOth day of .June. 187f) (both included), pay
only two-thirds of the (luties payable at the date of this treaty on the importations
into such country of such articles resjx'ctivtdy ; and from the 1st <lay of July, 1876,
to the 30th day of .June, 1877 (both included), shall pay one-third of such duties,
and on and after the Ist day of .July, 1877, for the iteriod of years mentioned in ar-
ti(de XIII of this treaty, shall be admitted free of duty into each country, respec-
tively.

For the term montioned in article xiii no other or higher duty shall be imposed
in the United States upon other articles not enumerated in said schedules the
growth, produce, or manufacture of Canada, or in Canada upon such other articles
the growth, produce, or manufacture of the I'nited States, than are respectively
im]»o8ed upon like artich's the growth, produce, or manufacture of (ireat Britain,
or of any other country.

Schedule A.

Cousi-sts of the f(dlowing naturiil products: /

Animals of all kinds.

Ashes, pot, pearl, and soda. %

Bark.

Bark extract, for tanning purposes.

Bath bricks.

Breadstutfsof all kinds.

Bricks for building, and tire bricks.

Broom corn.

Burr or grind stones, hewed, wrought, or
unwrought.

Butter. '.

Cheese.

Coal and coke.

Cotton wool.

Cotton waste.

Dyestulfs.

Earths, clays, ochers, sand, ground, or
unground.

Eggs.

Eisn of all kinds

Fish, products of, and of all other crea-
tures living in the water, except tish
preserved in oil.

Firewood.

Flax, unmanufa(!ti:red. ^

Flour, and meals of all kinds.

Fruits, green or dried.

Furs, undressed.

(irain of all kinds.

Gypsum, ground, unground, or calcined.

Hay.

Hemp, unmanufactured.

Hides.

Horns. v

Lard. : ,

Lime. ' • (

Malt.

Manures.

Marble, stone, slate, or granite, wrought,

or unwrought.
Meats, fresh, smoked, or salted.
Ores of all kinds of metals.
Pelts.

Pease, whole or split.
Petroleum oil, crude, refined, or benzole.
Pitch.

RECIPROCAL TRADE WITH CANADA.

Plants.

Poultry and hinls

Ra<;s of ail kinds.

Kiie.

Salt.

Seeds. < :

Shriil)8.

Skins.

Straw.

Tails.

Tallow.

of all kinds.

Tar.

Timber ; ad lumber of all kinds, round,

iifwed, and sawed, manufactured in

whole or in ]»art.
Tobacco, unmanufa'.'tiired.
Tow, unmanufactured.
Trees, •

Turpentine.
Vej.' eta bios.
Wool.

SCHKOUI.K B.

Consisting of the followin;, agricultural imi)lements:

Axes. , _ ,

Hagholders.

Beehives.

Bone-irushers, or parts thereof.

Cultivators, or ]iarts thereof.

Chafi'-cutters. or jjarts tht^reof.

Cfirii-hnskers, or parts thereof.; ■

Cheese-vats.

Cheese-factory heaters.

Cheese-presses, or jiarts thereof.

Ohurns, or parts tlureof.

Cattie-feed boilers and steamers, or parts

tliere(»f.
Ditchers, or ])arts thereof.
Field rollers, or parts thereof.
Kaniiiiig mills, or ]iart thereof.
reed-eho])|iers, or parts thereof.
Forks for hay and mainire. hand or horse.
Grain drills, or jiarts thereof.
(irain-crtish;'i's, or i)arfs thereot".
Harrows.

i Hoes, hand <»r horse.

I Horserakes.

: Horse-power niaehines. or )iarts therei)f.

i Hay tedders, or parts thereof.

j Licniid uiauure carts, nr jiarts rheraof.

i Manuie sowers, or jiarts thereof.

' Mowers, or parts thereof.

I Oil and oil-eake oiush'-rs, or parts thereof.

j Plow-, or jiarts thereof.

liof>1 and seed jdanters, or parts thereof.
I Root-cutters. ]nilpers, and washcrei, or
parts thereof.

Rakes.
! Rea]iers, or parts thereot",
\ Reaper and niowei- eombined, or parts
i thereof.
I Sjiades.

Shovels,
I Scythes.
I Snaiths.
! Thiashiiig niaehines, or jiarts tlu'reof.

Schedule C.

Consisting of the following manufactures:

Axles, all kinds.

Boots and shoes, of leather.

Boot aad shoe making niaehines.

Buttalo rolx's dresseil a:i<i trimmed.

Cotton grain bajis.

Cotton denims.

Cotton jeans, unbleached.

Cotto'i drillings, tinbleached.

Cotton tickings.

Cotton plaids.

Cottonades, nnbleache<l,

Cibinet ware and furniture, or parts

then^of.
Carriages, eaits. wagons, and other

wheeled vehicles and sleighs, or parts

thereof.
Fire engines, or parts thereof.
Felt lovering for boilers,
Gr.ti percha belting and tubing.
Iron, bar, hoop, pig. pu<i<lled, md, sheet,

or scraj*.
Iron nails, spikes, bolts, tucks, brads, or

sjuigs.
Inm cast tugs.
India rubber lielting and tubing.

Leather, li;irness, and sadilleiv of.

>!ill, or f'sKtory, or steamboat fixed en-
gines and maeliines, or jt.irts thereof.

Manutaetu'ts of marble, stone, slate, or
gianite.

Mauufaetures of wooil solely. <u' wood
nailed, bound, hinged, or locked with
metal mati-rials.

Mangles, washing machines, wringing
Miaehiues, and drying machines, orparts
tiierecd'.

Printing jiapcr for newsji.ip.'is,

F'ajier-making maehiues, or partsthereofT

Printing type, presses, and fiddi»rs, i»aj)er-
cutters, ruling ma<'hiiies, page-number-
iiig machines, .md ster.otyj»ing and
electrotvping apparatus, or partsthere-
<»f.

Refrigerators, or parts therectf.

Railroad cars, caviiages, and trucks, or
)tarts theieof.

Satinets of wortl and cotton.

Steam engines, or parts thereof.

Steel, wrought or cast, and steel (datefi
and rails.

Lo('ouiotiv<'s for railways, m parts there- i Tin tubes .ind idpinj,

of.

Lead, sheet, or pig.
Leather, sole or upper.

T\vee<ls of wiHH solely.
Water-wheel machines and npp.xrutns, or
parts thereof.

» {■■ •

* B *

* II *

t mM •

RECIPROCAL TRADE WITH CANADA.

Mr. PartvUlge to Mr. lihdne.

Department of State,
W<i.shlii(/toii, April II, IS!K-J.
Sir: By your dirocti.m I have the lioiior to report to you respretiug
the (lisi'riininatiou of the GoveruuuMit of the Dominion of Cniuula
against the eitizeus of the Tnited States in the use of the Wclland and
St. Lawrenee eauals.

Artiele 27 of the treaty of Wasliingtou, coiu'hided May S, 1871 (17
Stat., <S72), provides:

The Oovcrinntint <>r Her I'.ritaunic .Majestx cubage.-. t:> iir^e n)»i>ii rlic (Tdvcniiiii'ut
of the Diiuiiiiiiin of Canada to secure to the eiti/.eiisot the United S'ates tlie nse ofthr
Welhuid. St. I.awiNMire, and other canals in tlie I)oi..!iiion (MI terms <d' equality w ith
the inlialiitants of the Daniiniou; and the (ioNerinneiit id" the I'nitcd States enjrajfes
that the subjects of Her llritannic Majesty shall enjoy the use (d' the St. Clair Flats
Ca".:;! on terms of eipiality with the inl>ai)it;mt< of the United States, and further
enijajies t«. ur,i>-e upon the .State u:overnin(;nts to secrure to ^he s;il)JiTts(d' Her Hvitannie
Majesty the use of the se\ eral State canals connected with tli ■ navigation of tin' lakes
or rivers traversed by or eonri^iums to the Ijoundary line l>etwe<'n the ]>ossessions of
theingh contractiu<r paiiies on terms of ('((uality with the inhabitants of the United
."States.

The '>bje(;t of the article was phnnly to secure to the citizens and sub-
jects of tlie United States a?ul Oanaihi, respectively, e([ual ])rivileges
in the use of the canals connected with the nuvijiation of the Great
Lakes and the St. Lawrence Iviver. Inasmuch as the Wclland St. Ivaw-
rence, and other canals in Caiiiida were the property of the(i(»vernmeut
of the Dominion, which was not directly a party to tlu- treaty, Her
MajestyV; (lovernmcnt could Oidy undertake to urjjfc ui)on theCa.iadian
CTOvernment to secure their use to our citize/is upon terms of cqtiality
with Its own iuluibitants. On the other hand, this (Tovernment at that
time owned and controlled the St. Clair Flats Canal. Ileuce the stipu-
lation for its us«' by liritish subjects on terms of ccpmlity witii our iu-
liabitants was nuid(^ explicit. VVitli respect, however, to other Ameri-
can canals, the engaf^enu'nt of this Government was sim])ly reciprocal
tj the enga<'ement undertaken by tin' Go\ernment of Her Majesty.
Although th3 circumstauccs of the ci'.-ic required that article 1*7 of the
treaty of IH71 sru)ul(l take the form which it did, it can not be dotd>ted
that it was nitended to secure thereby complete ei|uality to the citi/cr.s
of each country in the use of the canals of the other necessary to the
nav»;fsition of the Great Lakes and the St. Lawrence Kiver.

As regards such of these (tanals as are within tlu* territory of the
United States, I understand that they are not only used by Canadians
on terms of peifect e(|uality Aitli the citizens of this country, but that
in fact they are enjoyed by them free of any dues oi' tonnage tax what-
ever.

Notwithstanding the full comj)liance of this Government with the
spirit of the treaty as regards American canals, and the liberality of
its [»olicy, which has opeiunl them free of tolls ro Canadian com-
merce, this Department has received numerous complaints tentling to
show, and which it is believed do satisfactorily show, that the Domin
ion (ff Canada has for some time discriminated against our citizens iti
the use of her canals.

The facts as represented to the Dei)artment are substantially as fol-
lows :

The Canadian Government, in addition to vessel tolls, also imjtosesa
cargo toll on trattic i>assing thnaigh the Wellaml ami St. Lawrence
canals. This cargo toll in tlie ca.se of wheat and other cereals an?onnt«

RECIPROCAL TRADE WITH CANADA.

to 20 cents per ton. For some years past, however, the Canadiau Gov-
ernment, by orders in council, has granted a rebate of 18 cents per ton
on grain carried through tliesecanals, provided it was carried through to
Montreal or some i)ort east of Montreal. Tlie rebate is not allowed if
the grain is destined for an American port.

As boats of the class engaged in carrying grain from the upper
lakes through the Welland Canal are unable to pass througli the St,
Lawience canals to jMontreal, it is necessary to transfer cargoes for
that j)ort to lighter-draft vessels. This transfer w;:s usually nmde at
Kingston, Ontario, directly fioni the vessel to the river barges. Du)-
ing the season of 181)0 grain foi' Montreal began to be transferred at
Ogdensburg, N. Y.. where there are large elevators and .storage cai)ac-
ity. Although the orders in ccmncil granting the rebate weie abso-
lute in teinis, the Canadian Government at first declined to pay the re-
bate on grain transshipped at Ogdensburg, and did not decide to do so
until alter the close of navigation. In the meantinu^ the business of
transshipment at Ogdensburg was seriously embarrassed.

To prevent such transshipment at Ogdensburg the Canadian Govern-
ment, in Its order in council, issued March 25, 1801, providing for the
usual rebate of 18 cents per ton on grain for Montreal and ports east
during the season of 1801, inserted a new condition, as follows : " Trans-
8hi])ment if at a CanndUm intermediate port shall not i)revent the re-
fund aforesaid being made." Since then no rebate has l)een allowed
on grain for Mcmtreal tran8shii)ped at an American pent.

On the 4t.h instant the (Canadian (Jovernment Issued a similar order
in council for the present year, 1802, reducing by rebate tlie tolls on
grain carried through the Welland and St. Lawrence canals for Mon-
treal or jtorts ejjst from 20 ceiits to 2 cents per ton. Its conditions are
as folio vvs:

Tliat tho j)ioductM aforoHaid on which th<' rcbiit*' of tolls may ^»e claimed shall be
Hhowii to have hceu oiijiinallv shipped for Montreal or for some port east of Mont real,
and shall he shown to have Ix-en carried to Montreal or to some port east of Montreal,
and actually sent out of the country.

That the rij^ht to this rei)ati' shall not l>e lost ])y reason of intermediate transship-
ment, provided that the jdacc of such transshipment is one within the Dominion of
Canada.

'I'hat the right to this rebate shall extend to any ])ortion8 of cargoes lightered at
Port Colhorue and reshipped at Port Dalhonsie, and also to shipments of the above-
named i)r()dncts miide from •iny (':inadiiiu Lake (Ontario jtort.

That payment (dthe amount to be refuntled be made from time to time as cargoes
of th(^ said products arc dispiitclie<l for export from Montreal or from 8ume port east
of Montreal.

This order discriminates agiiinst our citizens in at least three re-
spects :

(1) In that it makes the toll on grain for export from Montreal and
other Canadian ports east of Montreal 2 cents per ton, while the toll on
grain for export from American ports is 20 cents i)er ton.

(2) In that even the lesser rate is refused on grain tor Montreal and
ports east, if it has been transshipped at an Anuuican port, while it is
allowed if transshipped at a Caniidian port.

(3) In that the 2 cent rate only is levied on grain for Montreal and
ports east from uny Canadiau Lake Ontario port, while the 20-<*ent rate
is exiicted on gruin for tlie same destiinithm from American Lake On-
tario ports. This is a new discriminiition not <'ontained in the order of
March 25, 1801.

Ah a result (►f tliis system )f rebates it ap])ears from the oftit'ial cainil
statistics of Ciintuhi that during the season of 18iM), on 22H,51.'{ tons of
grain carried throtigh the Welland Canal to Montreal only $4,570 toll

' m *

RECIPROCAL TRADE WITH CANADA.

was exii'^ted. wliile on 24."»,!)32 tons of jj;iaiii which i)as.s(Ml down the
saine canal to Ojideiisbuig, Oswego, aiul other United States ])ort8
$40,1S(> was exacted.

Th«^ taiiir ot tolls on coal is no less discriminating. April 11, 1800,
the Canadian Government issued an order reducing tiie toll on coal
pas.sing down the canal from L'O cents to 10 (!ents per ton, but leaving
the full toll of -0 cents on coal l)(>und u]) tiie canal. According to the
oflicial canal statistics of C!anada during the season of 1800, L'2,781 tons
of coal, |)aying a toll of 10 cents ])er ton. were carried down the canal
in Canadian vessels. Only M") t(Mis were carried down in American
vessels. Of the coal c!irri«Ml up the canal and compelled to pay a toll
of 20 cents, 11(!,(»1(» tons were carried betwecMi i)ortsof the Tuited State^i,
17,280 from a I'nited States to a Caimdian i)ort. and <S0 tons only be-
tween Canadian ports. An adJustnuMit of up and down tolls on coal
producing so discriminating results (^ouhl hardly have been uninten-
tional. The sani", results are seen in the general business of the canals.
It is alleged that of the total cargo tcmnage of the Welland Canal during
the year 1800, .")7 i)er cent destined tor American ports paid more than
72 per cent of its tolls, aiid 4.'5 i)er cent destined from Canadian porta
paid less than 28 per cent.

The Department has not yet been able to obtain a copy of the othcial
«anal statistics of Canada for the navigation season of 1801. nor is it
informed wlu^ther they are yet published. It is rei»resented to the
Dei)artment, however, by the Lake Carriers' Association, of Ikittalo,
that the tratlic passing through the Welland Canal in bSOl for Ogdens-
burg alone paid !jr),">,037.0.") toll, while if the same trathc ha<l been bound
for Montreal or ports east, tlu' toll would have been oidy #7,300.04.
There was also .'$."»,710.."»(i collected on grain for Montreal, which was
transsliii)pedat Ogdensbuig, which, if transshijjptHl at a (Janiulian ]>ort,
would have only paid 'fr»71.0(», making a total discriininatitui in the use
of the Wellaml <'anal against the business of the ])ort of Ogdensburg
ah)ne for the season of 1801 of $52,82.3.71. It is further rejuesentwd
that its traffic was compelled t<» pay the full toll of l."> cents in the St.
Lawrence canals, whik' the Montreal gra,in traffic passed thiough them
free. It was also deprived of its natural share of the business of trans-
shipping gr".in intended for Montreal and ports east.

T]>e Commissioner of Navigation, in his annual report for 1888, called
Attention to he discriminaticm of the (Canadian Coverument against
our citizens with resi)ect to the navigation of its i^anals. The Secre-
tary of the Treasury referred the nmtter to this l)ei>artn>eut, and Mr.
Bayard, on the 21st of .Inly, 1888, wrote the British minister about it.
The latter, on the 13th of August, 18S8, repliecl, transmittii'g a eopy of
a report of the Canadian luivy council. There appears to have been
no further di])lomatic correspondence at that time. ( Foreign Relations,
1888, pp. 813, 814, and 824.)

Recently this subject was again presented to the Department (juite
iully by a memorial from the Lake Carriers' Association, of Hurt'alo, N.
Y., date<l September 18, 1801. Since then memorials have also been
re(!eiv<Hl from the Milwaukee Chamber of Commerce, the < 'hicago Board
of Trade, the Detroit Hoard of Trade, the Cleveland Hoard of Trade,
the Oswego Board of Trade, the Kochester Chand)er of Conunerce, and
fr<mi other associations and individuals. A copy of the memorial of
the Lake Carriers' Association was transmitted to Her Mnijestjy's miuia-
ter at thin capital October 10, 1801, with a retpiest for au(;h exphuui-
tion of the facts in the case as he migiit de.sireto m;4ve. The Depart-
ment's note stated thai the nuitter was one of special importance to oui"

RECIPROCAL TRADE WITH CANADA.

people at that season and asked liiiu to give it his i-arly consideration.
Sir .Julian replied, October 12, that he would briufj^ the matter to the
attention of his Government. At the conferencewhicli was held at this
Department in February last with the British minister and the com-
missioners from the Canadian Government this subject was presented,
and assurance was jiiven by the Canadian comnMssiomn-s that the
complaint of this Government should have ])r(nnpt consideration, and
that the question of canal tolls should be satisfactorily Jidjusted. Still
no replv has been received to that complaint, but by its order in coun-
cil of tiie4th instant the Canadian (iovernment has continued its system
of discrimination.

It does not relieve the position of the D<)minion GovcrnnuMit witli
res|»ect to tiu^. j^rain rebate, that considerable of the •jrain ca'Tied to
Montreal and the east is shii>ped from ports of the United States, and
that, the transportation of such jirain bein^' open to American vessels,
they can secui-e the rebate on tlie same conditions on wliicli it is given
to Cana,<lian vessels. The reciprocal eciuality which is stipulated for
in the treaty in the use of the Welland and other Canadian canals is
not to the vessels of the two countries, but to " the citizens of the
United States" and to "the inl'abitantsof the Dominion." An e(iuality
in the use of the cai'als to American vessels would not alom* satisfy
the conditions of the treaty. Tlu' distinction between the vessel and
the carg«» is recognized by the Canadian Government, which exacts
distinct tolls for each. Neither does the treaty provide for ecpiality in
tolls ()nly. The conditions imposed n])on the use of the canals dis-
criminate against American shi])i)ers and consumers, American trans-
l)ortation c<»mpanies and routes, and Amencim ports. The i)resent
practi<'e of the Canadian Government is probably even a greater dis-
crimination itgainst our citi/ens than if directed against our vessels.

On the Ud of February last a communication was received from the
Hon. N. C. IJlanchard, chairman of the Committee on Rivers and Har-
bors of the House of keincsentatives, in which lie sai<l that his com-
mittee wojild ajtpreciate any infiuniatiou as to

whctluT tluTC in iiiiyMiii';i in rxisfiiiy; treaties lietwei'ii (Ircit Mriiaiii and tii«' rnitod
(States which wouM jirevciit the itii])i>8iti()ii of tolls l>y the I'liitcd States mmii coin-
miTc • (IcMfiiuHl for Cauivdian ports, tisiiij;, or .lioinj; tlirouifli, the St. Clair Flats Ship
Canal, or the eanal and lock at th(* Kanlt St»^ M;,rie. in retaliation tor tolls ini|io8e<l
at the Welland (anal, slntnld the (Toverunient (»(' the Dominion oC Canada tail to
recognize its ohli;;'ati(Mi ;;ro\viny; out of the tweiity-He\'enth article of the tn^afy of
WaBhinn'ton.

You rei>Iied on the l.5th of Febriuiry that--

the only ti '.'ity Htipiilation in force uitplicahle to the use by American and Cainidian
citizens of the cainils coiniected with the (Jreat Lakes and the St. Lawrenct* l{iver
is contained in the twenty-seventh article of the treaty oi VVashiimton and is clearly
intended to be reciprocal iu character.

At the same time yon said that the i'omplaint which was the subject
of his letter ha<l been

br<nijj;lit to the attention of the I'atiadian commissioners now (then) iu this city and
an .assurance ^iven l)y them that the co:u]dHitit whicii wc lui\e preferied shall have
careful and prompt consideralion, with a view to a faithful observance of the treaty
Btipnlation.

It has been repeatedly urged upon this Department by our citizens
that the action of Canada in this matter ought to be met by retaliation
in kind. Its recent order in council, continuing the discrimination,
compels considcraf ion of the wisdom of that course as the only remedy
left. The spirit of the treaty imposes no other <«• different obligation

HEOIPKOCAL TRADE WITH CANADA.

upon tbis CrovernimMit as regards Aiuerican canals tlian is imposed
upon t lie (rovernment ot" the Dominion as rej»ards CaiiadiaJi canals;
neither does the strictest interpretation of its lan<4na>;e, ex('ei)t with
respect to the canal <.t' the St. Clair Flats. Coi>ies of the correspond-
ence are attaclied hereto.
Kespectfnlly submitted.

Frank C. Partkiixjk,

ISolicitor,

Di;rAit'rMi-.\'T <>i' State,

llanhi uitoii. Ovtohrr 10, IS'Jl.

Sin: I have the liDiior to apprise yon "t tli« I'l'ct'ipt <tf a meiUDrial t'roui the J.ake
Carriers' Association, of IJuft'ahi, N. \ .. midtr date of the ISt'i ultimo, in wliich they
complain of lUscriniination bv tiie C'aiiadinn (ioveniment against citizens of the
United Sti'tes in the use of the Welland Canal in contravention of article 1^7 of tlie
treaty of IS7'. In view of its statements 1 liave thonght it projier to fnrnistryou
with a coj)y, \vhi<li I now have the honor to do, and reiinest aneh explanation of the
facts in the case as yon may desire to nnike.

As tlie matter is on*^ of spe ' '' "aportanee to onr people at this season of the year,
may I ask that yon will kindly ^ it your earlv consideration.
I have the honor to lie, with tlie highest consideration, sir,
Yonr most obedient servant,

Wii.i.rAM 1'. Whahton,

AcHn(f Secretary.
Sir .Ii UA.\ rAr.\i:Ki-()Ti:, G. (!. M. (i., K. ('. li., etc.

WAsm.MiToN, October 12, 1S91.

Sir: 1 have the honor to acknowledge the receipt of your note of the Ifitii instant
inclosing copy of a memorial from tiie Lake ('arriers' Association, of Ihitfalo, com-
plaining of discrimination l>y the Canadian (Jovernnient against citizens of the
United States in the u.-e of the Welland I'anal in <()ntravention of article 27 of the
treaty ;»i 1871, and to inform you at tiie sanu' tinn- that I will bring this matter to
the attention of my (Tovernmcnt.

I have the honor to lie, with the highest consideration, sir,
Vonr most obedient, humble servant,

JlLlAN PaI'NCRFOTK.

Hon. William F. Wharton, etc

DKl'ARrMENT OK STATK, *

WaHhinijtoti, March 17, 189^.

Sir: I have the honor to reefer to the discussion which took place in the confer-
ences lately held at this Department bet wetMi the Secretary of State, yourself, and
the Canadian commissioners respecting the discriminating tolls in the (Canadian
canals, and to inclose herewith i cojiy of a letter from the Lake Carriers Associ-
tion, dattsd hutfalo, N. \ .. the llth instant, containing li-.'.urea showing the amounts
of the discrimination in i|uestion.

The Dejiartnient will greatly appreciate your courtesy in forwarding a cojiy of
this letter at once to the Canadian authorities for their iuforiui-.tion in connection
with the promised satisfactory adjustment of the (piestion of canal tolls.

Accept, Mr. Minister, the assurance of my high consideration.

William F. Whart<>:v,

ActitHj Secretary,

Sir Julian Paunckkotk, (J. C. M. C., K. C. ii., etc.

WA.Hins(JT(>N. March .'I, 18!).J.
Sir: With I'efercncc to your note of the 17th of March, inchising ii letter from the
[jake Cari'iei's' Association on ilic Nubject of discriminating tolls in the Canadian
canals. I have the honor to inform you that 1 have transmitteri a copy of y«)ur note
And o! its iiiclosuie to the go\ernor-generaI of Canada.

I liav(> th<> lionor to be. \\ith 'he highest consideration, sir,
Your most oliedit>nt. Iiumlde servant.

H( A. W. F, Wharton, etc.

Julian Pauncekotk.

RKCIJ'R*) 'AL TRADE WITH CANADA.

No. 113.J C()VSULATK-(}ENKRAI. OF TIIK I'MTKI) StAIKS,

Otlaita, March ..'S. ISHl.

Siu: I Lave the honcr to inclose a juinteil slijt, taken from the official gazette*
issued to-day, rixiii<!; the tolls on wheat and otlier cereals ])assing thro>igli tlu^ Wel-
land and St. Lawieute canals dniing tlie season of l^i}tl. It is nndcrstood that these
t<dls aiiplv as well to .\ineiican liottonisas to others.
Parliament will meet Ai.ril 2!», ISJU.

I am, sir, your obedient servant, '

„ ' " RiiiiAKi) (i. Lay,

Conaul-Gcneial.

Hon. WlI.LIA.M F. WllAKTO.N,

AssiKtavt Sirrildry o/ f<late, IVaslihifjtoii, I). (',

f I >

. fOrdiT in coiiucil.] , •■

At THK (JoVKHNMKNT Hot'SK AT OTTAWA,

■ ' UrdnfudKii, jnth (Jnij of March, 1891.

Present: His excellency the governor-general in council.

His excellency having had under consideration the tariff of ti>lls on tiie canals of
the Dominion, and the several <u(lers in council undei' which a 8])ecial rate has from
time to time been cstablisiieil temi»orarily on certain food lu'oducts passing through
the Welland Canal and tlirougli the St. Lawrence canals for shipment at Montreal
and ports east of Montreal, is pleased to order, in virtneofthei)Ower vesteil in himhy
chapter ;i7 of the Revised Statutes, intituled ''An act resjiecting tlie Department of
railways and canals.'' and by and with the advice of the (Queen's jirivy council for
Canada, tliat the following anienilments shall lie and the same ai<^ hereby made to
the tariff of tolls in force on the said canals, viz :

A refnnil shall be made on the tolls collected on wheat, Indian corn, jx^ise, V»arley,
rye, and (if for exjjort) oats which may be carried through the Welland Canal and.
the St. Lawrence canals to Montreal or any port east of Montreal.

The reiiind shall lie sncli as to reduce the tolls to 2 cents per ton of the said prod-
ucts or a.ny of them, and the con<litions of such refund shall be the following:

(1) The products aforesaid, on which the refund may be claimed, shall be shown
to have been originally sliipped for Montreal or some ))ort east of Montreal before
•ntering the Welland Canal, and

(2) Shall be shown to have been actually carried to Montreal or some port east of
Montreal.

(3) Transsliipment.if ata Canadian intermediate port, shall not prevent the refund
aforesaid being made.

This order in council shall remain in force only for the present year, 1891.

.John J. McGek,
Clerk, Priry Council.

No. 93.] Dei'artmknt ok Sjate,

JVaxhinnton, Aprils, 1S91.

Sir: The Department has received the following telegram from Ogdeusbnrg, N. Y.,
dated the 4th instant :

Hon. James (i. IJi-unk,

Secretary of State, Washinijton, D. C. :

An order in council ]»as8ed at Ottawa, starch 2~) ultimo, reducing by refund canal
tolls on grain ]>assing tiirough Welland and St. Pawrenee canals to Montrciil to 2
cents ]»er ton c( .itains clause which, by inference, seems to discriminate against
transfer of grain of tliis class at Cuited States pcuts.

Tlie clause referred to reads as follows:

'• rransshijtnient. if at a Canadian internu'diate port, shall not ]ucvent the reduc-
tion aforesaid made."

If the s:ime refutid of toll is not mIIowimI on this class of shipments when trans-
ferred from lake vessels to canal barges at Muited States ports, as when transfer is
made as at Canadian p()rts. it will result in serious detriment of interests at Ogdens-
burg, and United States marine engagtid in this trattic. Heretofore the refund of
tolls has been made regardless of whetlier transfer was made at (.'anadian or United
States ports.

F, W. IUi.i>wiN,
rt /HiJlX': Manaiitr Ogtleiinhmij Trannil Conqniny.

RECU'ROCAL TRADE WITH CANADA.

I have to iaHtnict ycm with rofeicuc*' to tin- ahovc, tu iiive,stijf,it« fully Mr. IVjild-
win'8 lase ot ('oiii;)liiiut and to rejovt to tho l)ci»:iitiuinit tiien-o:!. at your earliest
coiivcnii'uce.

I am, sir, youi' ohedieut scrvaut.

Wii.i.iAM v. WiiAitrox,

AHuinlant Scrietary..
Richard (i. Lay, Esq.,

Conial-General of the United Siaten, Oiiuwa.

< I t

No. 98.] - DKi-AirrMKNT OK Stati:,

n'aHlniigtun, Mai/ 14, 1S91.

Sill: I have to trauHiiiit lierewith inclosed <'opy of two letters received by the-
Department relatiuju; to a inoditication of the rates of toll on the Wellaiid Canal iiud
the St. Lawrence canals, recently made by ;in order in connt il. under whicli iliscrim-
iuati(m is thought to be made against vtissels transferring freight at American ports.
I have to re<[uest yon to report upon the matter,
I am, sir, your obedient servant,

WlI.I.lAM F. WlIAI.'TON,

Acting iScrretary..
RiCHAHi) G. Lay, Esi].,

Cunnitl-Gcneral of the rititctt States, Ottawa.

% t

" Measrft. Penfield, Lyon <t' to. to Mr. lilainc.

Okfick ok 1'enkiki.I), Lyok «& Co.,.

(hwef/o, X. r., April 24, 1S91\

_Sik: Asking your notice of an " order in council" stated at the iiovernment house-
in Ottawa March 25, l><iU, issued "by and with the advice of the Queen's privy
council for Canada," continuing the discrimination against the I'nited States in the
matter of tolls on grain carried eastward through the WeUand Canal.

(The order directs the refund of 90 per cent of the tolls collected on all such grain
bound for Montreal or any port east <if Montreal, whether carried through in one
bottom or transshipped at an intermediate ])ort.)

We desire to know if such discrimiuiition in favor <»f Canadian and against Ameri-
<'an ports anil bnaim'ss is not !i \ iolation of the spirit and intent of the Treaty of
Washington, while the Dominion of Canada enjoys the tree and unrestricted use of
the canals of the State of New York, the Sault St. Marie Canal, and other canals
within the United States; and if the Initt-d Slates (iovernment would not be as
fully Justitied in the imposition of t(dls on all gr:iin passing thrtr.gh the Sault St.
Marie Canal, and refunding the same to all such graiif unloaded in Cnited States-
ports.

We .are,

'- • ' ' Pknkikld, Lyon & Co.

0(jni;xsnri{ii Tkaxsit Company,

(hl(lnixl>ur(f, \. v., April 4, ISCn.

My Dkau Siu: Confirming my telegviini of to-day, I beg to call your attention to
the following "order in council, "as published in the Canada (iazetteof Mar<h28 nit.

"At tiik GovK.iiNMKxr lloi sk. at Ottawa,

" Wedneffday, Joth day of March, IS'Jl.

" Present: His excellem-y the governor-gcaierai in corMcil.

" His excellency, having had under consideration the t.iriff of tolls on the canals
of the Dominion and C.ie several orders in council under whicii a sjteciiil rate has
from time to time been established temporarily on certain food proilncts passing
through the Welland Canal and through tln! St. Lawrence canals for slii|>iniiit at
Montreal .and ports east cd" Montreal, is ])leased to order, in virtue of the power
vested in iiim by chapter H7 <d' the Revised Statutes, entitled '.\u act respecting
the department (d" railways and canals," and by and with the advi(!e of tins Queen's

Erivy council for Canada, that the following anwudmcnts shall be. and the same are
oreby, imuXv to the tariff of tolls in force on the said canali^. viz:
"A refund shall be made on the tolls collected on wheat, Indian corn, pease, barley,

REdriiOCAL TliADK WITH CANADA.

rye, aud (if for cxjjort) outs which iii.iy lie ciinied tiiroii;;!! tiio WiUlaiul Cuual and
the St. Liiwrt'iiec canalu to Mimtrcal or aii.\ ixnteast of Montreal.

**Tln' rcfinKJ shall ho such as to rcdiici' thi' tolls to 2 cents per ton of the said
products or any of them, and tlie (.'onditions of such refund shall he the followiuj;:

"1. Tlie products afori4«aid. (Ui which the refund may he claimed, shall he shown
to have heen orjirinally shipped f Montreal or s«uue ]>ort east of Montreal liefore
€nterinfi' the Wfdhind ('anal; am.

"2. Shall he shown to have l)cen actually carried to Montreal or sohw port east of
Montreal.

"3. 'I'ransshipmcnt, if at a Canadian intermediate port, shall not prevent the re-
fund aforesaid being nuide.

' 'This order in council shall renniiu in force only for the present year. IKitl.

" J(»IIN .). .Mctir.K,
"C/wA- VrWy Council."

■h

With reference to this order, permit me to explain that, on account of the small
locks aad the shaUow water of the St. liawrence canals between Ogdenshurg and
Montreal, the much deeper draft vessels that brinj; grain for Montreal from the
western lake pons sire unable to go throuiih to Montreal, and cousc(|nently such
grain must by tr.iusferreu io small light-draft barges at some poiut between the
Welland Canal and the lower St. Lawieuce canals.

lleretolbi-e this transfer has been made ihrongh lloatiug elevators at Kingston or
through i)erman:nt elevators located at Ogdensburg, N. V., which latter have been
built with spe< ial reference to this tratfi<'.

On account of the belter facilities and other advantages ottered at Ogdensburg it
se omed ]»robable that a large portion of this transfer business would i > the future
be done .at Ogdensburg instead of Kingston. In conse(iuence of this pro))ability, it
is known that ])aities intereste<l iu having this class of grain transferred at Kings-
ton instead of Ogdensburg have urged upiui the Canadian Goverumeut that the
''order in council'" providing lor the rebate of canal tolls on this class of grain for
the year 1891 be so tranied as t.) i>revent rel'uud of tolls on grain transferred at Og-
densburg or other Cuited States }torts.

The exact meaning of the order as issue<l and as <|uoted herein is somewhat vague
and inde'inite, ami although technically it does not preclude the refund of tolls paid
on grain transferriHl at I'uited States ])otts, yet the etfect is the sanu', as grain ship-
yters gen(?rally give it that interpretation and Itelieve that under this "order" no
•efund of tolls jtaid on grain transferred at United States ports will be made, and
<'onse((Uutly will not ship Montreal graiii to be transferred at Ogdensbnrg so long
as the (|uestion of refunding the tolls is iu doubt; and this will result to the serious
disadvantage and loss of large interests at Ogdcuisburg, and also take, away from
many American Itoats running l)etween the upper lake ports and Ogdensliurg a
large volume of business, which they could secure if there were no discrimination
against Cuited States ])orts in tliis matter.

It is probable that it ])rivate parties iuteresteil were to ask for more full interpre-
tation of the '■ order in vfumcil " above re]»orted, that consideration of such rciinest
v^(Mild be delayed until so li»te in the season of navigation that the result to Ameri-
can interests would lie serious, even though the tinal interpretation should be favor-
able to transferring grain at American ports.

We take the liberty of ))ringing this matter to your attention, thinking that it may
be considered of sutJicient importance to. justify such action as may result in speedy
knowledge to the American interests atl'ected, as to the actual meaning of the " order
in council."

I am, etc., , ; ■ t •

».; ' F. W. Baldwin,

^ Manager.

Hon. Jamkh C. lii.AiNi:, '

Secretary of Staff , i\aHhin<iton, l>. C.

•

I i

Canadian Canai- Toi.i.h.

Report hjf Vonniddeiieral Lay, of Ottawa.

DISCRIMINATION A(tAINST TKANiSSIIIl'MKNTS A I AMKKICAN I'OKTH.

Iu comi»liaiicc with the Departmeufs instructions of Ai)ril S, 1891, and May 14,
18!M, in reference to tlie complaiuts ot' 0';dcnsburg and Oswego shippers that the
order in council of March 2'), 1!^91, discrimiu.ites against transshipments at American
ports, excluding them from participating iu the refund of tolls allowed on grains

•

RECIPROCAL TRADE WITH CANADA.

])a88iiif; tlin)Uj;Ii th<^ VV^cllaiid and St. Lawrence canals to Montreal and points east
olthat city, I have to report as follows: f

I addresHcd a letter of incinirv to the chief of the canal dcjiartnicnt (copy of letter
marked inclosnre 1), and received reply (co))y of letter marked inclosnre 2) referring
me to the order in council of March 25, 1891 (copies inclosed). I was advised by one
of the officials of the department to wait a while before making my report, as the
subject of tolls was then still Ix'fore the council, and th<' annual report was expected
to be out very soon. I send by mail, under sei)arate cover, two copies of the report,,
which is just out.

I also inclose copy of my letter of May 19, 1891 (marked inclosnre 8), to Sir John
Macdonald, miuister of railways and ranals, asking an interi>retation of the order in
council of March 2"), 1891, and whether it excluded American ports from the benefit
of the refund on transshipment at such ports. Having received no reply to this let-
ter as yet, I have determined not to delay my report any lonj^er.

It will be seen that the i:anal tolls are fixed at 20 cents per tcm, allowing a rel)ate
of 18 cents per ton on transshipnu^nt at Canadian ports only. Thert; can be no doubt
as to the effect of this order, whatever the. intcMition nniy have ltc«^u.

The large size of the boats from the uj)per lakes ami the small locks of the canal
and shallow water below Ogdcnsburg necessitate the transshipment of nearly all
grain destined for the seaboard by way of the lakes and River St. Lawrence.

The 8U]>erior facilities for landing grain at Oswego and Ogdt^nsburfj;, the rapidity
of its trans]Mtrtatiou by canal and rail to Montreal and New York, with nominal
freight rates at the latter port, were, no doubt, the causes which led to the discrimi-
nation in favor of the c'anadian ront<\

I am infurned by the eonsul at Kingston, Ontario, that the transshipment of grain
there is the largest business tlone, and that last year about one-seventh of the busi-
ness was directed to Ogdcnsburg, American railroads, in a measure, taking the place
of the ('ana<lian canals.

There is no doubt now that grain trans-shipped at an An^-irican port will cost 18
cents |»er ton canal tolls more than if transship]»ed at a Canadian port.

I have extracted from the report of railways and ca-^als for 1891 some statistics
portaining to the subject, and attach them hereto.

Richard G. Lay,

Consul-deneral.

Uniteu State.s Consulatk-Gknekal,

Ottawa, May 28, 1891. '

> . I luflosuro I in Consul-Gi'iicial Lay's report.]

Consul-General Lay to lion. M, Jioirell, Afinistcr of ('iixtomn.

Coxsulatk-Gkxekal or tjik United States.

Ottawa, April 14, 1891.
Dear Sir : I have the honor to request to be informed if the rebate <m grain freight
passing through the Wclland and St. Lawrence canals, authorized by order in coun-
cil passed March 2.5. 1891, will be allowed on transshipments at I'uited States ports
as at Canadian ports.
1 am etc.,

Richard G. Lay.
i ' Consul-Oenvral.

■ - * (Inclosnre 2 in Uonsul-lieuerrtl Lay's report.]

The Secretary of BailwuyH and Canals to Conaul-General Lay.

Sir: In acknowl. dging your

Department of Railways and Canals,

Ottawa, April 21, 18!H.
letter of the llth instant, tr.insferred fr<,m the d<i-

SIR: in acKnoWL-Uginj; your iei.iei oi luc iiiu iumi,iiim,, i,iiiusit)rnMi ik.iu in«; (Ui-
partment of customs, relatinji to rebate on grain freight passing through the W«'l-
land and St. Lawrence canals authorized by order in ccmcil dated March 2.5,1891,
and asking whether it be allowed mi transshi]Huents at United States ports as at
Canadian ports, I am. in reply thereto, diroi ted to forward you the accomi)anying
copy of the said order in coumil above referred to.
I have, etc.,

A. P. Bradley,

Seorttary.
S. Ex. 114 2

!■■■

Kl.riPROCAL TRADE WITH CANADA.

(Onlrr in coiincil.)
% ftOVKRNMKNT Hoi'SK,

Ottnini, jyediKxdaii, Munh 25, ISHl.

Prebtiit, liiis excfllciic.v'the ;i(>\ crndi-^iciu'iiil in coimcil.

HiH t^xctilloncy, liitviiijj luiii iiinler consideration tin) taiitVof tolls on t!i« ciinuls of
the Dominion ami Iho s(>\eral ordeiH in conncil iind-T which a sjn'cial rate inift, I'roni
time to time, been cHtiihlished tfinporariiy on certain food itrodnctw luissin;; through
the Welhind Canal and rliron;j;h the St. Lawrence canals lor slii|(ment at Montreal
and |»ort8 eant ot Montreal, is ph-ased to order, in v'rtne oftlie jiowers vested in him
by eliapter^Tof the revised statnte.s, intilnled "An ;ict res])eetinj;- the dei)artinent of
railways ami canals, " and hy and with tlie ad\ ice of the </neen'h ])rivy eonncil for
Canaila, that the followin;^ amendments shall Im;, and the same are liereliy, made to
the tarirt'of tolls iu t'orce on the said canals, \iy. :

A refund shall he made on the tolls collected on whcit. Indi.ui corn, pease, barley,
rye, an<l (if for exjtort ) oats which may be carried throuj^h the W'elland Canal aiul
the St. i^awrem-e canals to Montreal or any port eaKt of Montreal.

'J'he refund shall be such as to reduce the tolls to 2 ' ents ])erton of the said prod-
nets or any of them, and the conditions of such refinnl shall he the followinjj;:

(1) The jtroducts aforesaid, on which the refund may h<^ claimed, shall lie shown to
have been originally shipped for Montreal or some i>ort east of Montreal before en-
tering the Welland Canal; and

(2) Shall be shown to have been actually carried to Montreal or some ])ort east of
Montreal.

(3) Trausshiiunent, if at a Canadian iuterraediate i>ort, shall not prevent the refund
aforesaid being made.

This order in council shall remain in force only for the i)resent year, 1891. ^

John J. McGkk,
clerk of the rriri/ Council.

revenue from canals.

Department of Railways and Canals,

Ottawa, March 31, 1S91.
In carrying t)ut the provisions of the foregoing order in council, the collector of
canal tolls at Port Colborue, \Vellan<l Canal, will collect the full rate of tolls and
issue an official voucher therefor; the reduction will be i»aiil by the department as a
refund upon evidence being furnished by the shipj)ers that the conditions of tx*.
order in council have been complied Avith.

The vouchers, properly indorsed, must iu all cases accompany the application for
a refund of the tolls referred to.

B. H. Teakles,
Chief Clerk, Canals Revenue,

DEFINING the ORDER IN COUNCIL,

Government House,
Ottawa, Wednesday, April 29, 1891.

Prose. t, his excellency the governor-general in council.

His bxcellency, under the autlu.-'ty ('onferred )i))on him by chajiter 37 of the
revised statutes, intituled "An act respecting th(> department of railways and
canals," au<l by and with the advice of the Queen's privy council for Canada, is
pleased to order that the provisions of the order in council of the 25th day of March,
1891, authorizing the reduction of toll to two cents (2 cents) per ton for the passage
through the Welland and St. Lawrence canals of certain agricultural products there-
in uanu'd shall be understood to apply to any portions of such cargoes lightered at
Port Colborne and reshij)ped at Port Dalhousie, and also that the provisions of the
aaid order be made api)licable to the therein named products when shipped from
Canadian Lake Ontario ports.

John J. McGee,
Clerk of the Privy Council. '

RECIPROCAL 'IKADK WITH CANADA.

RKDUCTION «)i' nANAI, T(>I.r,8.

Certified ((ipy of a report of ii coiiiiiiitt(M> of tin- liononihlo the privy coiincil,
approved l)\ his fXfelh'iicy the goveriior-jicncral in cohikII oh tlir iSth of May, 1891.

The coimuittet'. on re<'oiiimt'U(l,ition of tiio iniiiiMter of riiihviiy.s iind canals, advise,
with roferenee to tiie orders in ronncil ilattKl, respiM-tively, the '2TAh of March aud
the 2{>tli of April last, anthorizinj; the reduction of canal toils on certain food prod-
ucts, the provisions of Nviiicii orders aie ciinied ont l>y way of refund of the excess
of toUa paid, that such refnnd l»e, made after the (doae of tim jiresent season, on or
abont the 1st day of |)ecenil)er, ami not ilnrini;; the season, as heriitofore,

John .J. Mc'(«kk,
(lirk of tlKl'tlvji t'oiineU.

* I Iiicldsiiic :i ill ('(iiisul-i ri'Mc'iiil I-iiy's rt'poit.l •
CiniMul-Gciirral Luif in Sir •/nhii Mavdoniild.

* UNITKD STATKS CoNSlLATr.-GKN'ERAr,

otttiicd, Mail 19, 1891.

Sik: Application has liecn made to the Department of State at Washingttin to know
whether tlie order in coniudl of March 25, 18!)1, in refeience to rebate on canal tolls
precludes transshipments made at laiited States ports from the bcnetit of such refuiid.
It is understood that shippers of grain by the lakt^s and W'elland aud St. Lawrence
canals construe the order in council as exclndinj; the refund to all sue h transship-
ments.

I am instructed by the Department to report on this subjetrt, and I have the honor
to request to be informed liy you of the proiier interpretation id' said order as a)»])ly-
ing to Unitetl States ports.

I am, etc., -^

^,,,, J ' RiciiAKi) (J. Lay,

^ ('onxul-deneral.

[Inclosnre 4 in Consul-General Lay's reiMirt.--Krimi the otticial report of 1891.]
HU81NK8S AN1> RBVKNTE OK CANADIAN CANALS.

•«{

The total revenue from canal tolls for the season of 1890 was $348,059, compared
with $381,109 the previous year, an aitjiarent decrease of $33,049, but an actual de-
crease, taking an account of rebates, id" $25,959.4(i.

Of the 24r>,932 tons of grain which passed through the Welland Canal to Tnited
States jiorts 16,4.33 tons were transshipi>ed at Ogdensburg and passed down the St.
Lawrence to Montreal.

As this was a new departure in the transshipment of grain for Montreal, and not
anticipated at the time of passing the order for the reduction of tolls on grain, it was
not ccmsidered that the transshipment of grain at a lJnit<id States port came under
the order in council of I"'«d)ruary 27, 1890. Upon the urgent request of the forward-
ers and others, his exc<dlency in council, on the 22d of November, 1890, passed an
order in council authorizing a refund of tolls paid on the Wellaiul ami St. Lawrence
canals above 2 cents a ton on the (|uantity of grain so transshipped at Ogdensburg
for Montreal. The rebate on the former ainounte<l to $2,9r)7.94 and on the latter to
$232.04.

The (juantity of grain passed down the Widland Canal from (Tnited States ports to
United States jiorts has steadilv increased each vear, from 47.029 tons in 1880 to
245,932 tons in 1890, an iuiM-caseof 198,903 tons.

The iiuantity that reached Montreal thrv)ugh these canals for 1890 was 228,5 13 tons,
compared with 21)7,769 tons in 1889 and 333,806 t(ms in ISHO, showing a decrease for
1890 from 1889 of 39,256 tons and from 1880 of 105,293 tons.

• The ""ilways have become great competitors with the canals for the through grain
trade. Hiile the through grain traffic on the canals is declinii\g. the quantity car-
ried easi,,/ard by rail is yearly increasing both in Canada and the United States.

The canal grain trade decreased 11.92 per cent in Canada last year an<l 8.94 per
cent in the United States, while the increase in the quantity of grain carried by rail
was 25.55 per cent in Canada and 22.72 per cent in tlie United States.

•JO

RKCU'ROCAL TKADK Will! CANADA.

Tlio (iiiiiiitity of hiirlt'v. •••nii, <> its, jieusc, rye, ami wlt'jif ;uiivi'il at Mcnitn-al via
the (iraiid Tniiik ;iinl ("aiiadi.iii I'atilic railways for a iierioil (tf nine yearn is reported
as I'olldsvs:

Year.

i (Quantity.

18H2
lH8;t
1884
188.5
ISSO

Ton*.

75, 02«

UK, 1172

142. 2:11

160. H21

lt>,j. oi;i

Ymv.

1887

188H

1880

1800 ^.

i;iiHiitity.

Toim.

101,760

11:1, 704

04. 04.3

110,208

Tlie (juantity of the same artirlcs passed down tlie wliole leiifjth of tlie St. liawrence
cauala to Montreal lor the same period was an follows: *

Year,

(Quantity.

Year.

' '" ^

naiitity.

1882

l(<8;t

Toti*.

2:10, ().".

-Mi 'Mix

1887

IHfIX

t
1

Ton».

2:17, 881
IfiO. 191

1884

174.400

1880

275.414

1885

i:i4 X24

1800

242, .J7 1

1880

272, i:w

The qnantitv of grain jjassed down the whole length of the St. Ijawrenee eanals to
Montreal is as follows: 1K89, 275,114 tons ; 1890,242,571 ton.s; deereas<-, 82,848 tons.

The qnaiitity of yrain to Montreal via the Canadian Paeitic and (irandTrnnk rail-
ways is reported as fellows: 188tt,!)4. 943 tons; 1890, 119,208tons; iiierea8e,24.2t)5tons.

The qnantitv of ijrain to tidewater l>v New York canals is reported as follows:
1889, 1,242,804 tons; 189(.), 1,181,289 tons; ■(leeivase, 111,615 tons.

The qnantitv of nrain earried to tide water by the New York railways is re])orted
as follows: 1889, 2.481,501 tons; 1890, 8,045,302 tons; increase, 5(>3,801 tons.

The increase and decrease for 1890, as conipareil witii 1889, on the several routes
competing for the carrying trade to the seal' lard are as follows:

Routes.

Quantity.

Porce:*age.

Increase. Deci'ease. Increase, i Decrease.

T(ms. I Twit.

■St. Lawrence lanals ' I ;t2, 843,

Oannilian r.'iclHc anil Grand Trunk railways 24.265 '

New York caniilH .' Ill, 615

New York railways I 56:^,801 j

Per cent.

25.55
'22.72

Per cent.
11.92

8.94

• -..J TKAViSHIl'MENT OK GRAIN.

Two Canadian vessels took their cargoes of l.OHl tons of grain tlirongh to Mon-
treal intact in 188'<, against 1 witii 42.") tons in 1889, and 8 with 1,281 tons in 1890; 39
Canadian vessels lightered their cargoes at Kingston in 1888, against 51 in 1889 and
63 in 1890; 201 vessels di,scharged the whole of their cargoes at Kingston in 1888,
against 267 in 1889 and 172 in 1890, 'i'he <[nantity of grain transshipi»ed at Port Col-
borne in 1890 and the three previons years is giten below. The total nninber of
grain-laden vessels lightered at the port in 1890 was 83, against 47 in the previons
year. Three vessels entered the can;! without nnloiiding in 188!t, but none in 1890.

The <iiiantity of grain lightered was as follows:

(rriiin.

1887.

BunheU.

8a. 850

203,277

1888.

lixiHhels.

11,440

13;t, 014

1889.

1890.

Wheal

HimheU.

:j7. 222

254; 690

8,218

livsheU.
4 :no

Com

7711 087

Oats

44 294

* *

RFX'IPROCAT. TRADK WITH CANADA.

The quantity of utii'm paHHod down the Wt^llaiiil Canal in Canadian and United
States vohhpIs to Kin)r8ton for tive years is an follo\vn: ^

Year.

CanucUan vogRnls. ; XTnitrd StatitM vc<«hoU.

Tons.

1886
1887
1888
1889
180U

No.

Tons.

No.

244

143,330

»7

284

178, 233

182

I4:i,026

'JOH

166,117

114 i

203

184, 275

35 (

62,222

12,477

43, 667

1U8, 358

35, 560

The ((uantity n) grain discharRodin this port from vpssols which did not enter the
canal wa.s as follows:

Grain. 1888.

1889.

Jluthelii.
Wheat 72, 592

liusheU.

8 eo8

Com 23, 675

Notwithstandinj; the <'nlarff«'ment of the Wolland Can.il, the uumber of vessols
having to lightt-r a }»ortion of their (•argoes from 4:") to 80 tons eiich has reached 83,
the highest numlier for any year sinee 1880. Of these, 81 were I'uited States steam
vessels and 2 I'nited States sailiuji vessels.

Mr. Lay to Mr. 'Vharton.

No. 124.]

CONSIILATK OF THK IGNITED STATKS,
Ottawa, .June 12, 1892. (Received June 17.)
Sir: I have the honor to inclose herewith three coi>i45s of a re]>ort of a committee
of the privy council approved May 18, 1891, tixinjif the time for jjiiying the refund ou
canal tolls at the end of the season, on or al)out Decemher 1, 1891.

1 beg to refer the Dei)artment to instruction No. 93, of April 8, No. 98, of May
14, and to my dispatch No. 122, of May 28, 1891, on this subject.
I am, etc.,

RicHARH G. Lay,

Coiiaul-detieral.

[Inclosure in Mr. Lay's No. 124.]

Certified coiji/ of a report of a committee of the honorable the prh'n council, approved by
hin exoeltency the governor-yeneral in council, on the ISth May, ISUl.

The committee, on the recommendation ot the minister of railways ami canals,
advise, with reference to the orders in council dated, respectively, the 25tli of March
and the 29th of April last, autborixing the reduction of cauijl tolls on certain food
products, the pi-ovisions of which orders are carrie<l out by way of refund of the
excess tolls paid, that such refund be made after the close ni the i)re8ent season, on
or about the 1st day of December, and U(»t during the season, as heretofore.

, , John J. Mc'^'EB,

— ■ -.- - - . Cidrk of the J'riry CoiiHcil.

Mr. Lay to Mr. fVharton. ^

No. 173.] Consilatk-Gknehal ok the United States,

Ottawa, April 7, 1S92. (Received April 12.)

Sir: I have the honor to inclose herein two (opiesof an order in council passed
April 4, 1892, amending '"An act respecting railways and canals" in relation to
Canadian canal tolls for 1892 on wheat, Indian corn, pease, barley, rye, oats, daxseed.

RECIPROCAL TRADE WITH CANADA.

III:

ai)d biKkwlieat that ])a88e.s through tlio Wfllauil Canal ami tl'e St. Lawrence canals
to Montreal or to any port east of Montreal.

I hv)^ to icfor tile Departiiusnt to my disi)atch on this snbj<Mt, No. 122, of May 28,
1891, which applii'M a.s well to this year as last.

It will be seen that the tolls remain the same as last season, namely, 20 cents per
ton, and the rebate 18 rents jier ton. This reliate or refund reduces the tolls t() 2
cents jicr ton on the products above named, provided they are shown to be orininally
shipped for Montreal or for sonif other port east of Montreal and shall be shown to
have been carried to Montrtial or to .some i)ort east of Montreal and actually sent out
of the coautry; that tli" right to this reb.ate shall not be lost by re.ason of immediate
transshipment, ]trovid<'d that the ]dace of transshi])nu'nt is one within the Dominion
of C^anada; that the right to the rebate shall extend to any portions of cargoes light-
ered at Port Colborne and reshipped at Pcut Dalhousie, aud also to shii)ments of the
above-named ]>roducts made irom any Canadian Lakt^ Ontario port; that the pay-
ment of the amount to be relundcd will be m.'ide from time to time as the cargoes
of the said ])rodu.ts are dispatched for export from Montreal (^r from some port
eafit of Montreal. This order to remain in force for the year 1892 only.

I also ; lose, as a matter of interest in this connection, an extract from o5liciaI
sources oi the (^a)iacity of Ciinadiau canals along the St. Lawrence i{iver, viz, the
maximum Ungth, width, and draft of vessels which these canals m ill pass, and also
the average time it takes for vessels to pass to and from Chicago through these
canals.

I am, etc.,

' Richard G. Lay,

Contul-tltmeyal.

Iliicliisiiie 1 ill Xo. 17:i. From the Canada Gazett*.]

Order ill Council of April 4, 1S92, '

At tiik (i<>\ I kn.mknt fioi'si; at Ottawa,

MoikIui/, the ith diiji of April, 1802,

Present: His excellency the go\ ernor-geueral in council.

Hie excellency having bad under consideration the tarilf of tolls on the ( aup's of
the I>(uninion and the several orders in council uiuler which a special rate has from
tim" to tinu' been established temporarily, on certain food products passing through
the Wellaml Canal and tiirougli the St. Lawreuee canals for shipn;ent at Mont.'eid
and ports east of Montreal, is pleased to order, in virtue of the powi^rs vested in him
by chai>ter 'M of the revised statutes, intituled "An act res])ecting the department
of railwavs and canals," and l»y ami with the advice of the (Queen's privy council
for Canada, that the i'oUov.ing amendments shall l»e, .md the same are liereby, nuide
to the tarilf (d" tolls in force on the said <'anals. viz:

That a refund be made of a jxtrtion <d' tin' canal tolls colh'cted on whea", Indian
corn, pease, Itarley, rye, oats, tiaxseed, ami Imckwheat, which have been carried
through the Wclland Canal and the St. Lawrence canals to .Montreal or to any port
east (d' Montreal, in all ases where the said products so carried are exj^orted, and
in Huch cases only.

That this rebate lie such as to reduce the tolls to 2 cents per ton of the said prod-
ucts or any of them, and that the cf»nditions (d' hiicIi refi id he the following:

rhat the jiroflncts albresaid on which the rebate of tolls may be claimed "hall be
shown to ha\e been originally shipped for Montreal or for souu* other port east of
Montreal, and shal! be shown to have been carried to Montreal or to soim' jiort east
of Montreal ami actually s.'ut out of the cotintry.

That the right to this rebate shall not be lost by reason of intermediate trausship-
niei.t, provided that the place of such transshipment is one within the Douuniou of
Canada.

■{'hat the right to this rebate shall extend to any p<ution of cargoes lightered at
I'ort Colborne and reshipjied at Port Dalhousie, and also to shipments of the above-
named products made from any Canadian Lake Ontario jiort.

That jiayment of the amount to be refumled be uuide from time to titne as cargoen
of the said products are dispatc hed for export from .Montreal or from souic jiort east
of Montreal.

That this order in council remain in force for the present year (1892) only.

John .L McJiKk,
Vifrk I'riry Conncu.

RECIPROCAL TRADE WITH CANADA.

[Inclosnre 2 in ITo. 173.]
Order in council of March 25, 1891.

At the fioVKRXMKXT HOCSK AT OTTAWA,

WcdncHdiui, the J.'iih daij of March, 1S9L

Present: Mis cvccllciicy the <io\ernor->i;eiieral in couni'il.

His excellency, liavinj; liiid under consideration the tariH' of tolls on the canals of
the Dominion and the several orders in council under which a special rati' has from
time to time iieeu estihlislied temjtorarily on certain food j)ro(Uicts passinfi- thronph
the W<dlaiid Canal :ind through the .St. Lawre'ice canals IVir shi))nu'nt at Montreal
and ports east of Montreal, is jdeased to ord<;r, in virtue of the po\verH vested in him
by chapter 1^7 of the rcnised statutes, entitled "An act respecting the department o
railways and canals.'' and hy ani' with the advice of the Queen's privy council for
Canada, that the following anuniduients shall be, aiul tiu? sauu^ ariJ herehy, made to
the tar itf of tolls in forie on the said canals, viz:

A refund shall l)e made on the tolls eollec^ted on wheat. Indian corn, pease, barley,
rye, and (if for expmt) oats which m.iy Ije carried through the Welli;n<l <'anal and
the St. Lawrence canals to Miuitreal or any i)orteasT of Montreal.

The refund shall be sucli as to reduce the tolls to 2 cents per ton of the said pro<luct8,
or any of them, and tlie conditions of sucli refund shall be the tbllowing:

(1) The products afores lid un wiiich the refund maybe claimed shall be showu
to have been originally siiip)»ed for Montreal or some port east of Montreal before
entering the Welland (!anal; and

(2) Sh ill be shown to have been actually carried to Montreal <n' some port east
of Montreal.

('.i) Transshipment, if at the Canadian intermediate port, shall not prevent the
refund al'oicsaid being made.

This order in council sliall remain in force only for the present year, 1891.

.John J. Mc(ii;K,
, , 7; Chrk I'riv}! Council.

In currying out the provisiims of the foregoing order in couu<*il, the coUector of
canal tolls at Port ("olborne. Widland Canal, will collect the full rate of tolls and
issue an otliciaj vomdnT therefor: the reduction will lie jiaiil by tlie di^partment as a
refund upon evidence being fiirnishsMl Ity tiie shippers that the conditions of the
order in council have been complied with.

The vouchers, projierly indorsed, must in all cases accompany the application for
a refund of the t<ills nfeircl to.

H. H. Tkaki.ks,
Chief Clerk, i'unulx Rerenue.
Dki'autmkxt tiK Railways AND Canals,

(iHauii, March 31, 1S9L

[Inclosnre ;i in No. 173.]

Order in vonncil of April -29, 1S91.

At thk (iovkunmknt Horsi-; Ar Ottawa,

fl'edncuday. the HOIh dnij of April. lS9t.

Present: His excellency the governor-general in council,

His excellency, under the authority conferred \\\u\\\ him by chapter I!7 of the
revised statiiteseutitled ".\u act respeciing the department of railways and < analH,"
and bv and with tiie advice ot the Queen's privy (!ouni'il for Canada, is jileased to
order that the provieimis of the order in council of the 2.">th day of March, IHOl, au-
thorizing the reduction <d' tcdl to 2 cents per ton for the jiassage through the Weliaiul
and St. Lawrence canals of certain agricultural i>roduc's therein iiiimed, shall be
unrtemtood to apjdy to any portions of such cargoes lighttv,;".! at INut Colborne and
reshipped at i'ort Dalhousie, an I also that the provisions ( f the s.iid order he made
applicable to the th' eiu-named products when siiippcd from Cuna<iian Lake Ontario
ports.

.loi.N .1. McOk.k,
CUfk I'rivjf Council.

RECIPROCAL Tl?x\DE WITH CANADA.

[Inclosiire 4 in No. 173.]

Ccrtijivd c<)j>ii of a report of a committee of the honorable the prirj/ eoiniciL approred by his
ej-celiencji llie gorcrttor-gvneral in council, on the 18th of May, 1S91.

Tlie coiiimitttio, on the recouimendation of the iniiiister of railways and canals, ad-
vise with reference to the orders in conmil dated, respectively, tlie 25th of March and
thi' 29th of A])ril last, authorizinji; the reduction of canal tolls on certain food prod-
ubts, the ])rovi8ions of whi<li orders are <'arried out hy way of refund of the excess
tolls paid, that such refund be made! after the close of the present season, on or about

the Ist day of Deteuiber, and not during the season,

:is heretofore.

John J. McGkk,
Cltrk of the Priry CouhcU.

I ■< : 'V

•I

. - [Indosnre 5 in No. 173.]

St. Lawrence Canals. — Dimensions of lock, 200 feet b^y 4.5 feet; depth of water on
sills, y feet.

Welland Canal. — Dimensions of L)ck, 270 feet by 4.t feet; depth <»f water on sills,
14 feet.

The St. Lawrence canals between Mi>ntreal and Lake Ontario are in process of

>ntreal
igo to

beinjj, enlarjjed to the same dimensions as the Welland Canal.

The MerchaTHs' line time-table gives the time for a propeller to pass from Mf>i

to Chicago to b; about eight days; and about six hours less time from (Jhiet

""ontreal.

riie Hicheli*!! and Ontario Navigation Com|)any's time-tabh; gives the tim« for ••
sseuger boat to pass uj* from Montreal to I'rescott tiirough the St. La wren '( "r.

igo
Montreal

'1
passenger boat to pass u]> nwiu ^.iuhik.h uw x i<owi'<.i; lywi.f.if^n uu< -jk. l... .. >'oii -, >.
nals about {wenty-t\70 hours, aTid from Prescott to Montreal down, via theRa^jidu,
about nine hours.

The average time to pass through the Welland Canal is from fourteen to sixteen
bours.

Mr. Wharton to Mr. Lay.

|Ti)lt>graiii.|

Depaktmknt ok Statk, JVaahington, April S, 1S92.

Send copy of order in couueil relating to tolls on Welland Canal, if published,
and any information respecting it.

Wharton.

No. 174.1

Mr. Lay to Mr. fVharion.

CONHULATlC-GKNKHAr. OF THK HnITKI) STATKS,

Ottawa, April 0, 1892. (Received April 12.)

Sir: I have the honor to acknowledge the receipt of the Dei»artment's telegram
of April 8, 1892, as follows: "Send copy of order in couueil relating to tidls in VVel-
laud (laual, if published, and any information respecting it."

I now inclose the proof, which I obtained by the ccuirtesy of Mr. Teakles, of ihe
amendment to tlie order in council of April 4, 1892, inclosed in my dispatcli >fo. 173,
of April 7, 1892, which I had written and delayed sending, expecting the issuance
of the iu'dosed amiMidnient.

I will siMid copies when tiiey are printed.

My dispatch No. 173, April 7, 1892, will give full information regarding these tcdls.
I am, etc.,

Richard O. Lay,

Lomml-deneral.

At the Oovkrnmknt Hoisk Ar OrrAWA,

Monday, the 4th day of April, 1892.

the

Present: His excellency the governor-general in council.

His excellency, having had under consideration tiie taritl ,if tolls on the canals of

le Dominion, and the wveral orders in council, under which a special rate has from

t^ECIPROCAL TKADK WITH CANADA.

tiiiif ti) tiiuf been estiillislu'd tiMiijxii'ariiy on (/crtiiin ftxid jirodncts ])aHsin<j; tliroiigli
the \Vcllan<l Canal and tliioiigh tlio St. Lawrence- canals for slii])nient at Montreal
and ports east of Montreal, is jdeased to order, in virtue of the powers vested in him
l>y eliapter S7 of the revised st:itntes, entitled '' An act res]ie( tinu rhe department
ofrailw;iys ;<nd canals," and i)y and witli the advice of tlit^ (^neen's privy «:onncil
for Canada, that the tolluwin^' amendments shall he. and tlie same are herehy, nntde
to tlie taritt <d' tolls in force on tlie said canals, viz:

That a refnnd )»• made (da poi'tion of the canal tolls <'ollected on wheat, Indian
corn, ]»eaHc. barley, rye. oats, llaxsced, and l)nckwlieat which have been carried
thronnh rhe Welland Canal and the St. Lawrence canals to Montreal or to any port
east of .Montreal in all cases where tlie said products so carried are exi)orted, and in
«ueh cases only.

That this re!iat(! be such as to i-ednce the tolls to 2 ctMits jier ton of the said jirod-
ncts or any of them, and that the conditions of snch refnnd be the following:

Th;it the )irodncts al'oresaid on which the reltale of tolls may be .iaimed shall l)e
shijwn to havi' been ori;:,ii!ally shii)i>ed for Montreal, or fcr some port cast of Mon-
treal, ami shall be shown o have been carried to Mnntr4",il, ,)r to sonu' port oast of
Monti'cal, and actuall>- sent out of the <-onntry.

Th.'it the rifiht to this rebate shall not be lost by I'eason of intermediate transship-
ment, provided that the place of snch transshipment is one within the Dominion of
Canada.

'I"h;it the ritiht tc this rebate shall extend to any ]iori;ioMs at' (.-ar^oes lifrhtered at
I'ort Coleman ;uid reshi])](ed at I'ort l)alhonsie, and also to shipments of the ahove-
uuined [irodncts made from any Canadian Lake Ont.trio ])ort.

That |)aynn'iit of the amount to be refunded be made from tinn^ to time as cargoes
<f the said |)roducts are dispatched for exjiort from .Montreal or from some ]»ort east
of Montreal.

TIfat this oi'der in council renmin in force for the present year (181'U) only.
' .John .L McCkk,

,^ , (Irrk of Ihe I'rivii f'oiinril.

In cariyiiifi out the ]»rovi8ions of the foregoing order in council (of the 4th of
.). April, 18!»l') the C(dlector at I'ort ('olborne will ctdlcct the full rate of tolls on the
Welland Canal and issue an otticial receipt therefor.

The authorized reducti(m nl' tolh will he ]>aitl by the dejiartmeut, as a .•efuiKl,
npou evidence beinjj furniHhed that the conditunis of the order in council have been
complied with.

The vouchers, proi)erly ind(»r.sed, ami certitieate of export must in all eases
accompany the apijlication for i refund of the tolls referreil to.

B. H. Tkaki.ks,
Chief Clerk, Canah Ueve.nu<\

Dv.vxKiwv.si t)V Railways an'd Canai.m,

(niawa, Aiiril '>, lS9'i,

-mm^f

LaKK CaIJKIKRS' A.SS()CIATI()N,

liiifalo, A', v., .Stptembir 18, 1S91..

Sin: I inclose herewith a coi)y of a resolution unaiuunnisly ado|)ted at a meeting
of the board of mamii^ers of the Lake Carriers' Association, Indd in this city on the
18th day of September, 1891; also a copy of the statement or brief addressed to you,
to which said resolution refers,

I also send under separate cover a copy of supplennmt No. 1 to the last annual re-
port of the Canadian department of railways and canals, which is fre<iuently referred
to in the statement or brief,

K'espectfully calling the attention of your Department to the grossinjustice to our
citizens !is shown by tlie aci^ompiriying docuuicnts, 1 remain.
Very respectfully yours, •

C. H. Kekp, Secretary.

Hon, Jamkh G. Blaink,

Seviettirif of Slate, Wanhingtiin, l>. C. ' "T"

At a meeting of the b(»ard of niauag<"n of the Lake Carriers' Association, held at
Butl'alo, N, v., on this 18th day oi' September, 1891, the following resolution was
unanimously adopted :

Ue«i)\rcd, That the secretary forward to the Department of Fitate at Washington
the annexed statement or l)rief relating to t<dl8 on rue Welland Canal discriminat-
ing against American vessels, jiorts, and citizens, and respectfully urge the Govern-

KECIPiiOCAL TRADE WITH CANADA.

ment of the I Init(Ml States to take prompt and enorgetic measures in tlie <iircction
therein indii'iited to socure to our vessels, porta, and citizens their full rif^hts under
the treaty of May 8, 1871.

S. D. Caldwkll, President.
A true copy :

' , ., C H. Kk\:v, Srcrefa)!/.

. , Lakk Caukikks' Association,

Jiiifalo, X. Y., Si'plemhcr IS, 1891.

8ik: Tlui approachinn conference between coniniissioners anpointetl by the gov-
ernnifiit of tlic lUmiinidii of Canada and rt']>iesentativ<'s of our o\\ n I'nleral (iov-
ernnient. to cou.sidcr the .subject of rcciprnciil trade relations li(>t\veeii Canada ami
the Tuited States, leads this assdciation, which reju'esents the or;>ani/,ed vessel
owners of the (ireat Lakes, to call the attention of the DepMrtnient of .State to
what it believes to be a ))eisist<!nt and deliberat<? violation on the part of the
Dominion govermiient of Article xx\ii of tlietreaty between (iicat Britain anil the
United States which liears date May 8, 1871, and is known as the treaty of Washinj:;-
ton. The article above referred to re, ids as follows:

"The (iovernment of H( r Britannic Majesty enjiafjes to ur^fc upon the jiovern-
ment of the Dominion of Canatla to secure to the eitizens of the I'nited States the
use (d' the Welland, .s;. La rence, ami titlier can.als of the Dominion on terms of
eijuality with tlie iuiiaMiaiits of the Doniiidon: and the (iovernment of the LTnited
States enf;a;.;es that the subjects of Her Britannic .Majesty shall enjoy the use of
the St. Clair Flats Canal on terms o;' eiiuality with the inhabitants of the Ihiited
State, etc."'

The following is a brief statement id" the facts showii;<; a violation of this artidp on
the i»art of the Caiia<lian j;oveiiinient by the im^iosition of tcdls and the institution
of ii system of rebates on the Welland Can;il which discriminates ayainst citizens q£
the I'nited states and in favor ol' the inliabitants of the Donnniou of Canada:

The Canadian aovernnient im|)ose8 car<;o tolls on traflrtc ]iassinii tbrou'^h the Wei
land Canal. In the ease ot'^rain. tloui', {\'w\, ete., these tolls are JO cents ]>cr ton.
For some y(*:irs jiast, however, the Canailian j^overnment has. just before tln^ o](en-
ing of lake na\ ;<iiition, issued an order in eonncil urantinj;' a rebate of IX cents per
ton (d' the l(dls on grain trallic ])a8sin.L!; tlirongli the Welland Canal, ])rovided the
grain was carried thfongli to Montreal or some port east of .Montreal. .\s the cl<''iss
<d' boats engaged in carrying grain from the ujjpei- lakes through the Welland Canal
is unalile to pass tliroughthe ,*^t. Lawrence can.ils it has been customarx to transfer
their grain cargoes, when destined to .Montreal, to lightei' draft vessels, fhistrans-
fer u|i to the season of 1890 was made at the ('anadi.in ]>ort ot Kingston. During
the season of 18(10 about Hi. 000 tons of grain which passed throngli tin' Widland
C'.'inal and was destined for .Montreal was transferred from lake vessels to river
barges at the jiort (d' (>gden8l)urg, \. ^'. At Kingston grain is trnnaferrcMl directly
from the vessel to tlie liver barges, but at Ogdensburg, whei-e theic are large eleva-
tors and storage capacity, the grain was transferred through an elevator.

As this grain was chietly destined for ocean export from .Montreal, the process of
transfer at Ogdensbntg h,id decided adxantages o\<r*nat at Kii>.>istt)n. The grain
having been taken from the hike vessel into the idcvator at Ogdensburg. could be
stori'd there until the ocean steamiTon which it was to be shipped was alioiit ready
to load in Montreal. It could tln^n be transferred to barges and reach Montreal
just when it was needed for loading. By this means a considerable ex])en8e was
a\'oided and a consideralde advantage gained over the system of transtV'.r pra.cticed
at Kingstfin. where tin' river barges often arrived in Montreal a c nsideiable* period
of time bef(U'e the ocean steamer at that port w ,is ready to load, in which case the
grain was held to await the steamer. ,it ( onsideiable exi»ense. .\lfhougIi the order
in council giiinting rebate on Montreal grain for the season of IHiMI was absidiite in
terms and contained no provision (Mmtiiiing the )»ayiiient of such reliate to grain
t»'ansshipped at one port rather than another the Omidian government at first de-
clined to iiay the rebate on tlie grain transshij^pcMl at Ogdenslnirg, but to(d; the mat-
ter under emisideiation ,md made no decision until aliont the closti of mi\igation for
the season. It wa.>t then decided that the rebate must be jiaiil on the grain trans-
ferred at Ogdensburg. and sui'h jiayim'iit was made. The ett'ect, however, of the
government's action in withlndding its decision until the close of navigation was to
l»ut an end almost entirely to the transshipment of grain at Ogdensburg because the
forwarders were uncertain as to whether tliey would g«'t their reliate or not, Jiml did
not care to asHuine the risk of .an 'intinorable decision liy the Caiiiidiiin authm-it ies.

On Man b J.'i, 18itl, the Canadian government issued a new order in council, ]iro-
vidingfor the usual rebateof 18 cents per ton on Montreiil grain during the season
of 1891 . This order, however, ditt'ered from orders made in former years, an<l the

RECIPROCAL TRADE WITH CANADA.

conditions of til o rebate are utated in the order iis follows: '* First, the i)rodiictn
afores:iid on which the refund may be elainied shall Ite shown 1o havejiccn orijii-
n.ally shipped for Montreal or sonu? port east of Montreal Ixfore enteriiijf the Wel-
land Canal. S<'eoMd, they shall he shown to h.■lv(^ hi-eii actually carried to Montreal
or some i>ort i-ast of Moutrcjil. Third, tr^'i'-'-'-ipmont, it' at a Camidiau iiiteruiediate
port, sliall not prevent tll(^ refund aforesaid heiii<i^ made."

While the third condition aliove stated (I.K'siKtt state uneiiuivcali.N tliat tr;ni8sliip-
meiit at ail American int«'rmediate port will prevent the refund, it is ifcner.illy so
interpreted There can lie no doubt that the intention in wording;' this condition
was to carry the impression that on Montreal uraiii transferrcil at 0<i<lensbur;;j the
refund would not be ]i;iid. As a matter of fact a few carj^oes of Mmitreal i;raiii have
been transferred iit < )gdensbiiig during the presi'iit year, for the ]niriiose of testing
this order in council, iiiid in each case a dem.iiid for a refuml has been refused.
Shortly after the (irst of these cargoes was tijinsfcrred at Ogdeiisburg the Ciinadian
government issued an order thiit no rebated toils niider the order in council would
he paid until the <'lose id' navigation. It is, of course, impossible to say absolutely
what the i)ur]iose of this last order was. lint it seems unite likely that it was in-
tended to ]iost]ione detinite action in this matter until after the reciprocity confer-
ence in October, so that at the time of such eonference the Canadian conii'iissioners
could claim thtit in spite of the wording of condition thi'ee oftht^ order in council
above refern^d to, no act mil diserimiaatioii had yet been made between transshipment
at American and Canadian ]iorts.

So miii'h for the fiicts relating to relmtes on grain parsing through the Welland
Canal.

>Sii]»plement No. 1 to the annual report of the ('ami<li:iii minister of railways and
canals ^a cofiy of which is sent herewith) contains the canal statistics tor the sca-
s(m of navigation of 18it(). In it will be lound a verilic,itiou of all the facts herein-
before set forth relating to the year \XW. The stateiiients relating to the order in
cmincil and the course of i>roc<'ediiig for the year 1X^\ can be casil,\ veritiei! by your
department through the United States ccmsiil at I'reseott or the consul, general at
Ottawa.

It may be well to point out certain other facts drawn from the otiicial report of
the operations of the Welland Canal for the season of navigati<iii of 1H!I(). as con-
tained in the supplement above ieferre<l to. I'rom that H'liort it a]»pearsthat in the
year lf<y() there passed down the Welland Canal to ( anadiaii ])orts HtiH.Kiit tons of
freight, of which LllL',OH(l obtained a rebate td' nine-tenths of the canal tolls. During
the same se.ison there jiassed down the canal to the liiited States jiorts ;{L'7,><:W tons
of freight, ol' which only 10.4:^3 toirs olitained any rebat*' whatever. It also aitpears
that in the ytsar 18f(() thci<' [lassed down tlie Wellanil Canal in Canadian vessels
326,14!( tons of freight, «d' which lKl,27r) t<ins obj^ained a rebate of nine-tenths of the
tolls exacted at the canal. During the same season there ]iassed down tlw. canal in
United Stjites vessels 8t5:i.l77 tons of freight, of which ouly .")J,1.">9 tons obtained -.x'.r,'
rebate tvhitever. On tralhi' up the canal no rebates of tolls were jiaid. but of such
trath<- up the canal in the year IXjK), 251, 1^42 tons was bound to American ports and
only :W,724 tons to Canadian jiorts. Of this Iratiic 21!),7l'() tons Avas carrir
American vessels and only 72.340 tons in Canadian '•essels.

It also a]i]iears in the report that during the y4ar ISitO, 178, 9W tons of coal
carrit^d up and 23.39(5 tons of eoal was carried down through the Welland Canal,
the eoal carried up 161. (>IH tons was carried lietween |)oris of the I'nited States; 92
tonB was carried between Canadian jiorts, aud 17,280 tons from a I'nited Stat<'s to a
Cana<lian port. It will thus be seen that the up tralHc in coal through the canal
consisted almost entirely of a movement in the I'nited States coastwise trade, and
was, therefore, necessarily carried in I'niti'd States vessels. On this up niovc^meut
of coal fall lolls of 20 per cent iier ton were exacted. Of the down movement of
coal, however, 22.781 tons was carried to Canadian jiorts. and all of this was car-
ried in Canailian vesstds. Only filTi tons of coal was carried down Hiroiigh the
canal in an .Vmerican vess«d or to an American jiort. On the Uth of Ajiril, 18JK), the
Dominion (ioverniuent issued an order reducing the toll on coal passing down the
I anal from 20 cents to 10 crents per ton,, but leaving the full toll of 20 cents on coal
bound up the canal.

U also ajipears from this otiicial report that of the Montreal grain transferred at
Kingston during the season of 18!H), 181,27") tons was carried to Kingston in Canadian
vessels, and 3i"),r)fiO tons in vessels of the United states.

The Lake Carriers' Association believes that the facts hereinbefore set forth Show
very plainly .i xiolation l»y the Dominion (Jo\ernment both <if the sjiirit and letter
of the twenty-seventh artii h' of the treaty of Washington, for the following reasons:

First. The effect of the rebates on .Montreal grain is to allow practically all the
grain which passes through the Welland Canal bound for Canadian ports to go
through at a toll «if only 2 cents per ton, while the grain whi( h passes the canal
hounu for I'nited IStates ports is <ib]iged to pay a toll ten times as great. It is nnder-

I in

was
Of

RECIPROCAL TRADE WITH CANAbA.

Ii;ll

Htood that the Dominion Government claims that, the treaty is not hereby violated
because! th^* gram carried to (Janadian ports is shi])pcd from ports of the United
►States; that tlicrel'ore the carriage of sucli grain is ojien both to American and
Canadian vessels, and that the rebate is paid alike to the vessels of both countries.
Tliercfon^ they claim that the use of tlie Welland Canal is given to Canadian and
I'nited States vessels on e(|ual terms. It is to be noted, however, that '.he twenty-
seventh article of the treaty of Washington secures the eiiual use of th ■ canal not
only to American and Canadian vessels but to the citizens of the two <ountries. The
purpose and intent of that article is clearly to prevent the Canadian (iovernment,
by the use of vexaiidus canal reji|ulations, or by any device of discriminating tolls,
rebi'tes or refunds, from giving to their own vessels or to their own ports, or to their
own consumers or citizens any advanta"e over American vessels or American ])ort8
or American consumers i»r citizens. If the intent of tiie treaty had been simply to
secure to vessels of the two countries equal rights in the canal, such intuition would
have found its natural expression by usii , the word '■ vessels" in tlie aitiele. It is
(dear that the intent of the arti( le is to cover a broader ground and to secure the use
of the canal on c(iuul terms not only for Auujrican vessels but foi American ports,
consumers, au<l luisii^ess interests. The grain rebates are, therefore, in c dear viola-
tion of the treaty.

When an American vessel loaded with grain for an American port ])asses the Wel-
land Canal by what (ritizens of the United States is the canal used? Is it not used
as well by the owners or consignees of the cargo, as by the owners or charterers of
the vessel' Msxuiiestly it is used l)y both, and the Canadian (Government distinctly
recognizes this fact by exacting tfdls from both. On every steam vessel jiassiug the
canal a toll of 1^ cciits i)er registered ton, and on every sailing vessel a toll of 2}
cents pel registered ton is collected. In adilition to these vessel tolls, tolls are ex-
acted on the cargo, and it is on these cargo tolls that discrimination is made.
When two vesstds loaded with grain arrive at tlie canal togetlier, one cargo <iestiued
for Ogdensburg or Oswego, and the other destined for Montreal, and the Canadian
Government exacts a toll ten times as great on the cargo destined for the United
States port as on the cargo destined for the Canadian jiort it is c dear that the use of
the camil is not secured on equal terms for the citizens of both countries. On the
princi]»al coninn)dity passing the canal there is an audacious discrimination against
American forwarders, ports, consumers, and routes of exjxtrt and in favor of Canadian
forwarders, ports, consumers, and routes of exi)ort8. In the year 1890 on 228,513
tons )f grain carried through the Welland Canal to Montreal only iHj.'jTO tolls was
exacted, while on 245, ^♦H2 tons of grain which passed down the canal to Ogdens-
burg, Oswego, and other United States ports $49,186 was exactetl. Surely this is
not giving tlie use of the canal on equal ti-rms to inhabitants of the Dominion and
■citizens of the United St.ites. A cajeful study of the oHicial canal statistics for the
year 1890 shows that the Dominion (Jovernment collected on the Welland Canal over
«nd above all refunds cargo tolls to the amou»it of $i;il,00(), and that of these tolls
cargo destined for American ports paid .'!.97,0(.0 and cargo destined for Canadian ports
only $37,0(K). Of the total cargo tonnage of the canal .")7 per cent destined for Amer-
ican jiorts ])aid more th:in 72 jn'r cent of the tolls; 43 i)er cent destined for Canadian
ports paid less than 28 per cent of the tolls. With only one-third more cargo than
Canada we paid nearly three times as much in cargo tolls.

Mention has already been nnide of the difference in th<' rates of toll on west-bound
and east bound coal, and iti the statement of facts above given it is shown that on
this article as well as on grain then* is a clear discrimination against citizens of the
I nited States. The west-bound coal is nearly all carried between I'nited States
jiorts, and therefore necessarily on American vessels. Twenty cents a ton is exacted
on this trallic. The same commodity when carried throimh the canal easi^-bound is
nearly all carried to Canadian i>orts and on Canadian vessels. By an order in coun-
cil made last year only ten cents a ton is exacted thereon.

8ecoinl. There is the clearest possible case of discrimination against citizens of
the United States in the third ccmdition attached to the refund of grain tolls as such
condition api)ears in the order in council granting such refunds for the year 1891.
That <iinditioii implies, in the plainest possible mauner, th.at nine-tenths of the
grain tolls will be refunded on Montreal grain in case such grain is transferred at
Kingston, but tiiat no such refund will be made if sue h transfer is nuule at Ogdens-
burg. If the Canadian Goverr.ment claims that no refunds whatever are now being
made, that the wlnde sultject will lie talven up at the close of the season of naviga-
tion, and that refunds on gram transferred at (Jgdensluirg have not yet been deti-
nitely refused, it is sutlicient to say that the (dear and necessary efleet of this conili-
tiou in the order in council is to drive the business away from the Ogdensluirjj
riMite. So long as a condition thus expressed aiijtears in the order in council grant-
ing grain refunds, no forwarder of grain can ])rudently tranship it at Ogdensburg.

Third. The system of tolls n<»w in use in the Welland Canal is a discriminati«m
against American vessels us well as against American ports, consumers, routes of ex-

KELIPKOCAL TllADi: WITH CANADA,

«■(

port, ami inrwiinlcrs. liy coiiHiiinj^ tlic jjriiutinjj; of jiiiiin refunds to jiiMin tr.iiis-
Hliip))e(l iit KiiijistHr. the C".ni;i<'i:m (tovi-rniiiciit thus excluiics from tlic oimration of
the lefuutl order th^' r(;;iiihuly nr^fiinized linesof American vessels ruuninn roOf^dons-
bnrfj. It eoulines rlie heiu'lits of the order iu eoiuieil to Aiiierieau vessels wliich
may run to a t'ertuin Canadian port and wliile tlii-i Muntreal ^rain siiipped from
ports of the I'nited Mates, and tor that reasan its carriage from such ports to Kinj^s-
to'j is ojten to vessels of tlie I'lnfed States, its a imitti-r of fart this line of the earry-
iny; trade is in tiie Jiands <if Caniidiau vessels. We have seen also that in the east-
honnd eoal traliti<- thi'tn<;li the i-aual. where such trallie is almost entirely carried in
Canadian vessels, a toll isexaeted onl\ one-halfasyreat as iu theciaseof tiie west-honnd'
tratlie ill the sinie eominudity, such west-bound tralHe lieiui; almost entirely United
States coastwise trade, and therefore necessarily in the hands ot' Amerii'an vessids.
We Hiibrait that it is not jiivin;^- the use ol' the Welland Canal to Initt'd States ves-
sels on terms of e(|uality with those of the |)omini(Mi to select lines of trade which
are in the hands of I'nited .states vessels, and in such cases to ex;ict full <-ar<io t<dl9
while <frantinj>- f^reatly rednced rates of earj^o tolls in lines of trade which are. as a
unitter of fact, in the hands of Canatlian \esscls.

Hidieviu};' that the facts ami reasons above jiiven show a clear violation by the
Canadian Covernment of the treaty oblij^ations entered into by (ireat Mritain on its
behalf, we have thought this a nK)St opjiortnne time for bringing' the whole subject
to the attenticMi (d' your Department. In n few weeks tin? comndssioners appointed
by the Donnnion (iovernment will visit , ashin;;ton for the express jmrpose of con-
ferring with representatives of the United States on the reci})rocal trade relations
of the two countries. A favtuable opportunity will thns be afforded foi bringing
this matter formally to the avtenticni of the Dondniou (Jovernnient. and for demand-
ing that henceforth the Welland Canal shall be ojieu i'or business to citizens of the
United States on terms of e(inality with the inhabitants of the Dominion, without
discrimination against either American j>oits, consumers, forwarders, or vissi'Ib.
.Should the Canadian Government not grant redress, and shonhl it continue to Indd
that the regulations now in force are no vi<dati<ni of the treaty, then the United
States (iovcrnmeut would certainly be tree to place upon the treaty the same con-
struction placed ujion it by the Canadian (Jovernment.

It could, therefore, place in force upon the St. Clair Flats Canal, and the St.
Marys Falls Canal, a system of tolls whi di wouhl ojierate against Canadian vessels
and ports Just as the AV(dland Canal tolls oi»erate against our own.

Sui»pos<? the United States should put in force regulations whereby all vessels
passing the St. Clair Flats Canal oi' St. Maiys Falls Canal bound for any port of the
lhiite(l States should Im- allowed to i)ass without paying tolls while high cargo tolls
were exacted from all vessels passing these canals bound for any Canadian portf
Such regnlati(uis <'onld certainly not lie coni)dained of by the Canadian government.
If it were found as a niattta- of fact that any j)ai't icular co."modity carried to any
Canadian [)orts through these canals was usually carried in .Viaerican vesstds. or was-
a trade from which the business intt^'ests of the United States were deriving lienetit,
tll(^n snidi connnodity might be exeni]»ted from the paynu'iit of tolls Just as Montreal
grain and east-i>ound coal are jtartly exempted on the Wcdland Canal, leaving, how-
ever, all Canadian coastwise business fhiough these canals and all business through
these canals Ixunid to Canadian ports and usually carried in Canadian vesstds subject
to su(di heavy tidls. ^

Siinjtle Justie(^ to Anu'rican f(U\varders and vessel owners reipiires that on grain
bound for Montr(fal th<^ same tolls should b. exactiMl at the St. Clair Flats Cainil that
are now exacted at tiie Wt Hand Canal on grain destined for jtorts of the United
States.

Very respectfully yours,

L.viir. Cakkiicus' Association,,
Pet (J. H.Kekv, Si'crviary.

Hon. Jamks (i. IU,A.iNK,

iSecntari/ of stttif, IVaHh'mgton,. I)^ C,

RECIPROCAL TRADE WITH CANADA,

[Extracts I'roiu Siipiileiueut Xo. 1 to tlid Annual Jloport of the (Canadian Dopartiuont of luilways and

Canals for the year ended June no, 1890. J

(iUANTlTV or (IKAIX PASSKD UoWN Til.. WKIXAND CANAL.

The iiuautity of barley, corn, oats, ponstj, rye, and wheat iiassed down the Wel-
laml Canal from port:, west of I'ort Colborne for a i)erio(l of 11 years is as folhiws:

Year.

(jliiantity

l)asse(l down

to Montreal

ou whieli a

refund of
toll.i was al-
io wed. '~

(Quantity on whleh full
toll wan paid.

1880 i

1881 ;

1882

1883

1884

1885

1888 :

1887 i

1888 1

1889 1

1890 1

Tonn.

;t3:i, 806

14t), 127
18l>. ti94
180,814
142, 194
!Mi. t>.')9
20:i. 940
ISf). o;i4
100,358
2<57. 709
228.513

To 1)01 ts in
Dntario.

Tout.

10,050
12,15;)
11,909
9,881
11. 838
25, b.^9
19,07i
10, SSI*

(Quantity
from United
f5l.ate,s ports

to United
States ports.

Tons.

47. 029

64, 351

03, 881

121,870

IU4, 537

117,346

15|1, 551

134, 808

169. 064

213,760

245, 932

' A refund of 10 reiit.s per ton was allowc^l on };rain passed down the Wellaud iind St. Lawrence
caiials to Montreal for 1884 and to .June, 1885, niid 18 cents per ton from 1st .luly. 1885, to l)e(uinil)or,1890.

From the foregoitij; iigiires it will be seeu that the qnautity of grain passed down
the Wellaud Canal from United States ports to United States ports has steadily iu-
(Teased each year from 47,029 tons in 1880 to 24.0,932 tons in 1890, being an increase
of 198,903 terns, and anincreaseoverthepreviousyear of 32,l(i6tons. Theiiuantity to
Montreal sliows a decrease of 39,25G tons for 1890 from the previous year, and
104,293 terns less than in 1880.

THROUGH TKAFFIC HKTWKKN Mo IKKAL AND PORTS ON LAKES ERIK, MICUKJAN, ETf .

The total quantity of freight passed eastward and westward through th«' Wel-
laud and St. Lawrence canals, from Lake Erie to Montreal, during ten years, is as
follows :

Year.

Eastward.*

• I • T07lg.

!88l 169,213

1882 108, 835

1883 205,394

1884 168,715

1885 132,968

1886 244, ,514

1887 213, 834

1888 18.^,899

1889 298,197

1800 231,746

Westward.t

Tout.
37, 190
24,488
27, 488
9,425
16, 115
10, 801

. 14, 075
19, 310
25,370
31, 951

* Allowed to pass tlirouyli the St. Lawreuie caiials free, per ordi^r in couucil, 21.-<t April. 1881, and
a refiiud of 18 eenlH i)er Ion of Wcdland Canal ttilU on •{rain for 1885, 1880, 1887, 1888, 1889, and 1890.
I Allowed to |iass through the Widland Canal free, per order in eouiieil, 21st April, 1881.

RECn»ROCAL TRADE WITH CANADA.

FUKIGHT KUO.M fNlTI'I) STATKS I'OKTS TO INITKD STATKH I'OHTS.

The total qnantity of fieijjht passed eastwiiid and westward throujjh the Wellaud
Canal, from United States ports to United States ports, for a jieriod of ten years, is
as follows:

Yfil!

EaMl.wnrd. Westwiird.

1881

18«2 I

188;!

1884 1

]88fi

188B

1887

1888

]88!> :

18!tO ;

'J'llllK.
!i(i, 20fi
110,280
174, 9r.'
ltd, «98
l««, 212
244. 916
189.427
221, 0B2

2it7, :tr>;i
;t 18, 2.59

Tuna.
It7, 907
172, 520
2.-.7, ti99
24 1!. 081
216, 297
2;i», ,562
151,074
21;!, 089
266. 2;!1
215,698

It will tlms lie seen that tlie (piantity of freight paswed eastward througli the
Welland Canal from United States port.s to I'nited State.s ports shows a very marked
increase, havinj; incre.-ised from 96,2H() tons in 1881 to 31^!,2'''^ f^*""* '" I^9(), and which
is an increase of 2(),90() tons over the previous year.

^ CHAMISKH Ol' COMMI-.KCK,

' Mil irauket; thlober 22, IS91.

Dkak Sik: I have the honor to transmit to your Department, and to the President
of the L^nited States, the following resolutions adopted at a meeting of the board of
directors of the Chamber of Commerce of the City of Milwaukee held on the 21st
instant, and beg to request that you will take such course in the premises as you
may deem ex}>edient.

Yours, very truly,

\V. J. Lanuson, Secretary.
Hon. .Jamk.s G. Blaixk, ^

Secretari/ of State, Wushiuyton, I>, C.

KesohitioiiH adopted by the board oj direriorx of the Chamber of Commerve of (he City of

Miluaiikee.

Whereas, Tlie system of tolls i nd rebates adopted by the (,'anadian uoverument
on the Welland Canal by cont'^iing the rebates of tolls to cargoes shipped to Can-
adian ports and to cargoes tr nsferred at Canadian port.s for such shi])ment, and by
subjecting the traftic in which American vessels are mostly engaged to much higher
tolls than the traffic in which Canadian vessels are mostly engageil. constitutes a
discrimination against citi/ens of the luited States in tlie use of said canal in vio-
lation of the sjdrit of the treaty obligations entered into by Great Hritain in its be-
half: Therefore,

Keaotred, That tlu' Department of State of the United States lie earnestly retjuested
to bring this matter formally before the Dominion (Jovernmeut, and to demand that
henceforth the Welland Canal shall lie (rpen for business to eitizeiiJ of the United
States oil terms of equality with the inhabitants of the Dominion without dis<rimi-
uation against either Americjin p<»rts, consumt>rs, forwarders, or vessels, in acciord-
auce with the obligations of the existing treaty between (ireat Britain .ind the United
States, known as the treaty of Washington.

liCHolred, Th.-it a copy of these resohitiims be sent to tlie I'resideiit of the United
States and to the Secretarv of State at Washington.

[SKAL.] L. !'. Macon,

* President,

Attest: . W. ,J. Lan(;h<)N.

Serrefary.

A menu)rial was received from the Chicago Board of Trade dated Octolter 30, ISfll,
in the same language as the memorial of the Lake Carriers' Association of Buffalo,
N. Y,, dated September 18, 1S91, printed above.

REClPRv CAL TRADE WITH CANADA.

i\\

BOAHD UK ThADK OK THE ClTY oK DkTUoIT,

Dfiroit, Xovemher 11, 1S91.
Hon. Jamks {\. Hi.AiNE,

Secri'lari/ of Slatr, ft'oxhitialoii, D. C:

The Boar.l of TrinU' of tho City of Di'troit dosiri'ts n^spectfully to tiill your attention
to alh'j^ed (liHcrimiiiatidijs. or vexatious u^iLjiilatioiis said to lie cstaldislicd by tho
Canadian ^ovorunR'nt in the matter of t<dl8 conectcdon oai'j^oes passinnthe Welland
Canal a;;ainst VfNsds or far^rocs hound for an American port, and in favor of carjioeH
hounil for Canadian jKU'ts. K'eliates of IK cents, froin a HO-cen* rate per ton, ai'e
granted on cargoes hound for Montreal, or portseastof Montreal; hut if sucli cargoes
are transferred at Ogdenslnirg. Oswego, or other American i»ort, such rehates arenot
allowed, or if allowed, m much douht or vexatious delays arc incurred as jiractically
to ('lose tlnwe jiorts to such coinmeree and force trai'.e into (Canadian ports at an in-
creased oxpi'nse to shippers. P'or instance: Otticial reports of Canadian I)e])artnn'nt8
of Railways and Canals siiow that during W)0 ;!(iH,88!t tons of freight passed tin- VVel-
lainl (,'anal for (Canadian ports. Of this, 212, /KO tons obtained th.' rebate of IX cents
per ton. During the same season S27. 8.315 tons passed the canal bound for United
.States |)orts. Of this only U>.4I^;5 tons olitained any rebate. 1 Miring thesame season
there passed down the Welland Cannl in Canadian vesstds 326,11!) t(nis of freight; of
which 18-1. 125 tons obtaiiu'il the rebate of 18 cents per ton. During the sanu' season
I'nited f^tates vessels carried 3()2,477 t(ui8 of freight, of which (Uily .">2,l5it tons ob-
tained the rebate.

[n 18t»0 228,513 tons of grain, carried throngh the Wellainl Canal to Montreal, paid
only il!4,i)7() tolls, while mi 245,9.32 tons of grain which jiassed the canal to Ogdeiis-
burg, Oswego, iind other United States ])orts, )i!4i(,186 was exacted. With such a
record snridy the American traile is not eqiiiilly favored with that of the Dominion.

Harly in the present season (viz, <>f 1891) the Canadian government issued an
order that no rebates n-hatever would l>e paid until the close of navigation ; but so
much doubt is thrown about the i)robability of .iny rebates l)eing allowed even then
on cargoes shipped to American ports btdow the can.il, as seriously to interfere and
injure the trade of those ports and all tra<le by citizens (d" the I'nited States, for this
dih'erente oi' 18 cents ])er ton is a bnrdensome tax and sometimes almost prohibitory,
being practically a tax of over one-half cent per bushel on e,v«'ry bush* 1 not allowed
the rebate. We believe that it was the intent of tlu' twenty-seventh article of the
treaty oi' Washington to secure noth to .\nii'ricaii anrl Canadian vessels and citi-
zens equal privileges in the use of the Welland Canal, the same as is granted to all
vessels passing the canals throngli St. Clair Flats and alxuit the falls of the Sault
St. Marys River, but the .'xperience of slii]i])er8 to Ann-rican jtorts proves to them
that such is not the qase.

We ludieve that the foregoing statements, and others of e((nal force that might be
given, show a clear vi(dation of treaty obligations existing between the two gov-
ernments, to which we desire respectfully to call your attention. At this time tho
matter is laid before you, because in the near future it is pr<d»able a conference may
be held between commissioners representing the Dominion and our own Covern-
nients, hxdvingtothereestablishnient of reciprocal ndations. Such an occasion would
be a favorable one for the consideration of this subject, and we resjiectfnlly petition
that in the negotirttiou of a tre.ity of that kind this ((iiestion may Ix; settted so
clearly and by such definite terms as to j»reclude any doubt and forbid any discrim-
ination relative to the trade of American citizens passing the Welland or other ca-
nals belonging to the Dominion.

Adopted nnanimonsly November 10, 1891, and signed.

,Tas. H. DftNOVAN, Freddent,
Gko. M. Lank, Secrelaru.

BoAKP OF Trade Rooms,

CUvcland. Ohio, November, 14, 1891.
At a meeting of the Hoard of Trade of Cleveland, hehl tliis day, the following
protest to disi rimin.ation against Amerii'an citizens ami t<»nnage passing through the
Welland Canal was uniinimously adopted and the se(!retary dintcted to forward the
same to H.n. .lames (J. Hlaine, Secretary of State, W'ashingt<ni, I). C.
(See memorial of Detroit Board of Trade).

W^M. Edwakds, President.
A. C. Be(h;v, Secretury,

( f

RECli'HOCAL TRADE WITH CANADA.

()s\VK(io, N. v., Xon-Diher .'1, ISOI.
Dkak siu: Tlio reqtifst made to you by the Hoanl of Tra<le of Cliira^o, a synop-
sIh of wlii( 1 1 incloBt', is JiiHt and tinu'ly. If an oiiportiiuity oi-ciiired. ifMidciitM of
the State ol New York, i)aiti(ulaiiy those icHidiiiy on the northern frontier, would,
without i»artv diwtimtiun, unite in the reipiest made by .^aid board. It is a well-
known and understood fact tiiat thi' Canadian <;overnnient have, in violatictu of the
ai)irit, if not of the letter, of tiie treaty of Washinjiton, discriminated in favor of
cousif^nmeutH made to Canadian portM, in order to comitel tlu^ .shi])meut of graiu
through Canada by the Montreal route.

Anythiuy you may be able to do to rorrect this long exi.stiuf; evil will be ai>pre-
ciated by int(dlif;ent Ameriean riti/ens everywhere.

Relieving you will give ihi.s suitjecl the attention which it deserveH, I am,

Respectfully, yours, ' ,

Max r.. HiciiAi<i>80N.

Hon. .Ia.MES (i. IlLAlNK,

Secretatjj of Stttif, Ifanhinf/ton, 1). C. ■ .•

lioAHi) or Ti.'ADK Rooms,
V Osuqio, N. v., Sovember 24, l.SHt.

8iK: The Hoard of Trade of the City of Onwego, N. Y., rt^Hpeetfully invites the at-
tention of the honoralile Secretary of State to the discrimination jiractieed by the i^o-
minion of Ciinada against citizens of the I'nited States in resjiect to tonnage i)aH«-
iiig througii the \Vell;ind Citnal. Iieing in direct violation ol' the spirit ol' the tr<'aty
between (ireat iSritain and the United States.

The tolls on said canal on merchandise jier ton, liO c»nts, and on scssels, regular
tonnage, 2| c(aits. which also inidutlcs St. Lawrence canal t(dls, are remitted on all
cargoes exjtorted \ia St. Lawrence canals, but on all cargoes passing through United
States ports on Lake Ontario no rebate of Canatlian eanal tolls is allowed.

Attention is resjject tnlly called to the fa<t that the discrimination is not against
vessels l>ut against routes, and in orilcr to obtain the rebate, c;irgoes must go via
Montreal for export. If these cargoes are received at Oswego or Ogdensburg, au<l
are exported by way of New York city or Portland, no rebate is allowed by the
Dominion (joverument.

This is especially grievous to citizens of the United States, as the Soo", Erie, Os-
wego, Chamj)laiii, and all United States canals are free in every respect to Canada,
2ud as the grain tonnage forms a very large and important part of the commerce
of our (Ireat Lakes as well as of the whole country, th» evasion of the treaty by
Canada is all the more tlagrant, and works directly against the commercial interests
of every United States i»ort on Lake Ontario, and to the corresponding advantage
of Canadian ports.

In view of the approaching conference between this Government and that of the
Dominion of Camida, this board respectfully requests the honorable Secretary to
secure for our citizens perfect equality with reference to commerce passing through
the WellandCanaL

I). M. lUWIN,

/'resident.
J. B. Latjikop,
Secretary.
Hon. James (f. Bi.ai.ne,

iSeeretarii uf State, Waxhinijtou, D, C.

ROCIIKSTEK CHAMItlCIt OF COMMERCE,

Itocltvuler. X. T., Dvcemhor S, IS91.

Sir: The Rochester Chamber ot Commerce respectfully invites your attertion to
the discrimi'-iation practiced by the authorities of the Dominion of (Jaimda fagainst
citizens of the United States in re8])ect to tonnage passing through the Welland
Canal. «

Sliiiqters at our port of Charlotte complain that this discrimination consists in a
rebate of 18 cents from a 20-cent rate per trm on cargoes bound to Montreal, but if
transferred at Charlotte, Oswego, or oXhvx Ur.ited States ports, such rebates are not
allowed. This dill'ereme of 18 cents is ]»iacti(!ally a tax of one-half a cent i)er itushel
of wheat ; and the discrimination is not against vessels but against routes. American
canals are free to Canadian vessels, and the discrimination complained of is, thero-

S. Ex. 114 3

II .1

KECIl'ROCAL TKADJ: WITH CIANADA.

fore, all the iii(»re jiriovouH to oiti/.<MiM of th«! Uiiitod States, innl w(irk« pn^nt injnry
to all iinnortuiit poition <il' tlm coiiiinonc of onr (irtat Lakes.

TluH iliaiiilier of coiiiiiu'iec rcsjicctfuliy ie(|ii<'sts that the hoiionilile Secretary of
State will eiuleasor to seeiire for our citizens perfect e(inaUty witii refereuce to coui-
raerce piiNNing through tlie Welhuid v'aual.
Ke8i»ect fully yours,

E. T. ("ii.-ns, rvixUUnl.
(iKuiKiK Moss, Sn-rttary.
Hon. .Iamks (J. iii.AiNK.

iSccretitrjj of Stale, H ((nhini/tun, I). C,

. Mr. I'aunc to Mr. IHaiiie.

■* Hoi'HE or Hki'I{E8Ent.\tivk8. UxriKi) States,

IVnshinyton, l>. <'., Janimrii 9, 1S9.,'. (Received .January lit.)
My Dear Sik: I herewith tile with yon papers in reference to the alleged viola-
tion of the treaty (d' Washington relating to discriminating tolls iiuoosed on cargoes
through the W(dland Canal whicdi do in)t take the course of the St. Lawrence Kiver.
This discrindnati(ui is a great hurdcn to commerce destined to New York city
through iMir Lake Ontario ports, .and destined to Portland, Me., by the way of Ogdeus-
hurg, N. Y.

There is a very sirong feeling in northern New Y'ork upon the subject, especially
in view of the fact tliat all of onr Statt' canals are as fr«!e to ("amidian boats and
tMvners as they are to our own citizens.

If it is deemed dcKirable that Congress should take any action in the matter, I
shall be very hapjiy to present the (juestion.
Y'tuirs very truly,

r Skreno E. Payne.

[Incloeure 1. From Chicago Tribune April 25.
IHscrimi nation on Canadian canah.

By the treaty of Washinpton of 1871 it was agreed that the Americans slnuild have
the use of the Wtdland, St. Lawrence, and other Canadian canals ''on terms of equal-
ity Wih the inhabitants of the Dominion," the I'nited States giving to the Canadians
the use of the Sault Ste. Marie Canal and allowing Camidian vessels to come into
Liike Michigan and take cargoes at (,'hicago for Canadian pf)int8.

It has been claimed for some time that the spirit at le'ast of the treaty had been
violated by the Dominion government, and that better terms wt-re given to Do-
minion than to American vessels using the Welland Canal. Senator Cnllom, of the
Committee on Interstate Commerce, in a report Just made, says:

"An unjust discrimination is made by Canada against American vessels on the
lakes in the matter of entrance and clearance fei^s. Vessels ](assing through the
Welland Canal bound to Montreal have a rebate made of a portion of the tidls paid
for canal j)ass.'ige; but if bound to any American j)ort or to the St. Lawrence River
no n'bate is lu.-ide. This, the report claims, is a violation of the ))rovisions of the^
treaty of Wasbingtcui."

Kr(uu iiil the informatifin which the rrit)uiie has been able to gather the discrimi-
nation is not so much one against Ameiican vessels as against American routes.
Whatever is done is done with the oliject of forcing tVeight to .Montreal and divi^rt-
iiig it fnuu Oswego. Ogdciisburg. ami other American ports f)n Lakt^ Ontario. It is
alleged, for instance. l>y (io\ernment officers atOsw»'go that a \'essel jiassing through
the W<dlan<l and ( uitinuing on to Montreal or transshi]tping I'reiuht for that point at
Kingston gets a rebate (d' tin- Welland t<dh', while if the vesstd WMit to Oswego and
sent its freight to the sealioard via tiie Oswego ;ind Erie <'anals it would get no re-
bate.

There has not Iteen made public, however, any pttsitive evidence of the actual re-
y)ayment of tc)lls. ,)u<lging by a circular of the Dominion (iovernment the matter is
(lone in another and more ingenious way. It is provided that all goods westward
bound which have paid full toll through the whole line of the St. liawrence canals,
the Lachine Canal, or the Ottawit and Hideau shall be allowed to pass free through
the Wellitnd, and that all goods eastward iKuind wdiich have paid full toll through
the Welland shall be allowed to pass free thrcmgh the St. Lawrence canals to Mon-
treal or through the Ottawa and Kideau.

•\

)

RECIl'ROCAL TKAUK WITH CANADA,

It will he Heeii that tliis is not a matter of a rebat*;. It is dimply ^ivliij; a lower rate
to anyone who H8<!8 th<' ontiif syMteiri i»f Dominion caiialH. If an Am«;rit'an veHSol,
having passed thron^^h tho Wcliand. wore to keej» on to Kingston and Montreal, it
would pay no tcdls on th« lower canals and would be on "terms of perfeet e(iinility "
with a Canadian \e8sel. No vessel, however, ha\ ing paid tlu^ Welland tolls will
unload at Ogdenslnirg or Oswegd when it ean run on witiiont paying a cent more to
Montreal and the liead of ocean navig.ition.

It is a blow at Aniericiin routes to the seaboard, but not at American prcductH or
necessarily at American ships, '["he Canadians will doubtless say that where a per-
son uses all tiieir canals they can afford to charge him less than when In- uses only
>ne of them, and that, tlierefore, they are not acting unfairly. The ([uestion is (um
■which slnnild receive the prompt attention of the State D«>partment, and all will
doubtless acquiesce in whatever course it may recommend shall be pursued, for
nobody questions Mr. Blaine's Americanism. If it can be shown to the satisfaction
of the Department that the treaty has been violated by the payment of rebates, so
that Americans were discriminated against, the attention of the British minister
should be called to it at once. If it is fonml that while the letter of the treaty of
Washington is observed its s))irit is broken, it would be w«']l to give notic<' that the
United States wishes this portion of the treaty to come to an end. That will mean
that the Canadians who have not yet built their own canal at the Sault will be unable
to use the Anu'rican one to get in or out of r>ake Superior; that their vessels will
have to keep out of Lake Michigan, and that they can not ship goods in bond from
New York. Boston, etc., to Canada. Whether they would be the gainers or losers by
such an arrangement they can easily figure out.

' >

, I Inclosurt' 2.1 .

Mr. Lyman to Mr. Incin,

\ Custom Hoisk, O.swkgo, N. Y.,

i'oUevtor'n Offiiv, April It), 1890.

Deak Slur Your inquiry as to what, if any, discrimination is made against our
commerce in matt<T of tolls upon Welland Canal is received. lu answer, I have to
say, if the spirit of the treaty of Washington were observed, th<'re would be no dis-
crimination, but the facts are these: That while having the use of our canals with-
out any conditions as to where they nuiy go, or what they may do after passing
same, the Canadi.m Government have undertaken by a discriminating regulation to
drive the export and other traiie by way of Montreal, by landing all upper lake mer-
chandise from either Canadian or American vessels upon its docks very much chea})er
than they <^an the same at Charlotte, Oswego, Ogdeusbnrg, or other Lake Ontario
or St. Lawrence ports.

All merchandise passing the Welland Canal, destined for Lake Ontario or St. Law-
rence Kiver ports above Montreal in either Canadian or American vessels is subject
to canal tolls; but if carried as far as Montreal, either for export or consumption,
the tolls are rebated even when reshipped from Kingston by other vessels or barges,
or by cars, which makes a direct discrimination against our transportation interests
and local consumers to the amount of the Welland Canal tolls.

The following are a few of the items of tolls referred to, viz; Vessels, steam, 1^
cents per ton; vessels, sail and others, 2^ cents i)er ton; passengers, 10 cents each:
wood, 20 cents per ccud; spars, telegraph poles, etc., 15 cents every 40 feet; railroad
ties, 1 cent each; lumber, 30 cents ])er M.; hop poles, $2 per M.; timber, $4.50 per
M. cubic feet , barrel staves and headings, 40 cents ])er M. ; j>ipe staves, .tl..')0 i)er M. ;
West India staves and headings, 75 cents per M. ; grain, (lour, iron, meat, vegeta-
bles, 20 cents per ton ; all other agricultural jtroducts, 20 cents per ton; all nou-
enumerated articles, 20 <!ents per ton.

This discrimination is not against American vessels but against American com-
merce and American routes.

My authority for saying that tolls are refunded at Kingston upon merchandise
going through to Montreal by other conveyance than the vessel which brought it
through the canal, is iufornuition from masters and vessel owners. I inclosii a copy
of (Janadian circular relating to refund of tolls at Montreal.
I am, etc.,

H. H. Lyman,
- Colleetor.

P. S. — As furnishing you some further information I also inclose you copies of
letters of the collector of this port to Commissioner of Navigation ui)on this ques-
tion, dated .Julv 15, 1888, and September 11, 1889.

3ii

RECIl'ItOCAL TRADE WITH CANADA.

Collector of CiislomHat Onwefip to Commissioner of Cimtoma, WfHihingtov, D. C.

CisTOM-Morsi:, Oswkgo, N. Y.,

Col.mxtok's Oi'iirK. ./(//.(/ /o, .1S8S.

Sili: K<'lati!i;> to yoiii (•omiiiuiiicittioii of .)iine 13, 18!jM, '"T. 15. ^^.." I have the
honor to Htate thni tlie (iinadiiiii (i«)veriinifiit liaH issued order;* to ccdleet tlie same
tolls OH v(!SHe]s passing thi'oiigli the Wellaiid C^anal during the jneseiit season of
navigation as were charged last year, namely. -0 cents ])er ton of grain. 2i eeiit.s
per 1 <'i>;isteve(l ton of vessel.

I wcuJd also state that tlie above tolht are remitted if tlu' cargo is exjiorted via
the St. I,awrenee jfiver. Ily this rebate a cargo of ;^5.(HK) r)nsliels of grain can be
♦ieiiveretl at ( >swego for e\)toi'i via the Oswego and Krie canals.

I would furtlier state that tiie( anadiau papers during the past winter rei)eatedly
acknowh'dged that the granting of the aliove reltate "as a \ioiation of tiie spirit of
the tieaty of W asjiington. 'Iln- (lanadian (iovcriiinenl . intiieorder issued, exhibited
the weakness of their position bystating " tliat the rebate w.nild be granted this year
only."

If the Canadian (Jovernnient is justitied in granting the altove reliate, thus dis-
criminating ag.ainst our waterways ami ports; tiien the United States (iovernmeut
is Ju8tili<'d in collecting tin- same rate of tolls as ilu- above, from all vessels (Canadian
and American) andtlieir cargoes jtaasiii^ through tlie .^saultSte. Marie Canal, provided
the grain is exjiorltMl via tlie St. Lawrence River (there are no American vessels in
this trade) and allowing a like reltate at the American i)orts. ])rovi<led the gr.iin is
exported by the Krie or Oswego and Erie canals, or by railroad.
Respectfully yours,

1. B FolCIIKR,

Collector,

Collector of (KStims at Oswego, X. >'., to Conimhsioiier of Xarhfafion, Washington:

Cu-SToM-MoLsi;, OswKGo, X. v.,
Collector's Office. Septemb^i- 11. 1SS9.

Sik: In answer to yours of September 4. 188!', asking what, if any, discrimination
is made against vessels of the I'nited States in the matter of fees in i)assing the
Welland (^anal, 1 have caused inrpiiry to be nuide among our masters and vessel-
owners. They al! report that so far as they know they get same facilities and pay
same towing and fees as Canadfan vessels* 'I'he only <li8!Timiuation they report is
in favor of the Canadian route, viz: Vessels with cargo destined for export via St.
Lawreine get rebate of their ev.tire canal tolls at Kingston, Ontario, t>r if for Mon-
treal jjct rebate at Montreal.

T will take occasion to make further inquiry and will report to yon if I learn any-
thing further or different from w hat is above stated.
Very resjiectfully yours,

11. II. LVMAN',

Collector,

The following regulations, from a circular understood to have issued undei- jiuthor-
ity of the (Janadi.in (Jovernment, relate to a refund at Montreal of tolls i)ai<l :

"All goods having jiaid full toll through the wlude line of the St. liawreuoe
canals, or tiirough the Machine CJanal, St. Ann's liock. or Ottawa and Ridean canals,
shall be aIlowe»l to i>asrt free through the Welland Canal; and, if tolls have been
paid at the Ciiamby Canal, such tolls shull be refunded at .Montreal or Kingi'toii
Mills; !ind, havirig ]iaid full tolls through the Welland Canal, they shall be aUowed
to ]iass free through the St. Lawrence canals or tiirough the Ottawa and Kideau
cainils, St. Ann's Lock, the Lachiiie Canal, and the Cliamliy Canal; provided,
always, that the j-rtides to he entitled to the above e\()mi)tion shall go downwa ds
Uiroiigh the whole le-igth of the SI. Lawrence canals to Lake Ontario."

H. H. L.

*vi

-' CoMMITTKIi: ON RiVr.HS ANIJ HAIim)HH,

Hof.HK OK RKPRKSKNTATIVI'S,

Washington, If. C., I'elmiar\j 2, 189i.
Dt:AK Siu: I'he subject of the inijiosition of tolls on .American iMunmer< e, or coui-
merce deHtined for American ports, going through the Weilaiul Cainil, i)y tlie 0<»v-

RECIPROCAL TRADK WITH CANADA.

eminent of the l^oniiiiion of Caniula, was recently tlie snbjoi't of discnssioii Dy tlie
Rivt'i'and Iliiibor Conuriittt'c of th'! Houhc.

In tlu- fall of 1S!(1 a conferencci l)',t\\"t'(Mi comtnissioners a]>|ioiiit)Ml by the (tovci-u-
nieut of the Koniiiiio! of Cana<la and rejjrest'nlativcs of oiii<iovt'iiiiiH-nt, to consider
the st.bjcct of r('cij>i-oial trade relations between Canada and the Cnited States, was
to liiive been held, and )»rol)ably was held. On Septenilter l*^ the Lake CariiiTs'
Association bronijht to your nifention tlie siil)Ject of lolls cliar^jed ajuainst Anu^rican
commerce jroimi' throiijfli tiie \V(dlainl Canal, and requested your j^ood olhees in
brinjuinu,' liie same to the att<'ntior. of the confereiK <• aforesat ' with the view of
secnrinj; action necessary to carry out the intent, purpose, and ..pirit of the twenty-
eeveiith article of the treaty b< t ween (ilea t Itritain and the I nited Staters, bearing
date .May S. ?M71, and kiiowu as "The Treaty of Washin^xtoii."

Will yon kindly inform the ■ oinmittee ii'any action was taken at the saitl confer-
ence, or since then, looking; to the fri-e list; of Canadian caijals by <oniinerce de«-
tined to thi; ports of th<' I'nitcd Strtes?

The Committee would also ajipreciate information from you as to w hether there ia
anythinjj in existing tfeatics between Great Uritain and the I'lnted States which
would prevent the imposition ot tolls by thi' ''nited States ujxm <'ommerce destined
for Canadian ports, nsinn', or jioini;- throuii;li the St. Clair flats Ship Canal, or the
canal and lock at the Saiilt Ste. Marie, in ii-taliation for t<dls imi>osed at the
Wellaud Canal, should the (•overninent of tin; Dominion of Canada fail to recog-
nize its id)li<ratiou growin^L!,' out of the twenty seventh (27th) article of the "Treaty
of Wasliington.''

You will observe that w'hile the St. Clair Kluts Canal is mentioned in the aforesaid
article of the -'Treaty of Washington," the canal and lock at the Saiilt Ste. Marie is
not mentioned.

Your.s truly,

X. C. 1{I,AN( llAltn,

Chairman.
Hon. .Iamks (;. Mi.AtNi;,

Sciretarif of Stt,fr, ff'aHliiiifiloii, It. ('.

• \

LaKK CaRI!IKI!s' AssfiriATio.v,
lUiffalo. S. v.. nhr.Kini IJ. )S93.
SiK: I'^rmit me to call the attention of your Dejiartment to the letter of the Lake
Carriers' Association to yourself bearing date September IS. 1K!I'., ndative to tlie
discriminating tolls now in force on the Welland Can.'il, and the viobition on the
part of the tJanadian government of the pro visicms of the twenty-seventh article of the
treaty of May 8, 1871. The letter above referred to contains a full statement of the
facts in this matter and exiiresses tlu' I'arnest hope of the entire vessel-owning inter-
est on the (ireat Lakes that the State Department will make this violation of the
treaty one id' the subjects to be considered at the conference on reciprocal trade
relatiims betwi^en r(;|n'esentatives of the goverrments of Canada and of the United
States. Till' respectful ie(|ue8t ot the Lake Carriers' Association, as contained in the
letter of .September \X. ISftl, has also been expressed by many important commercial
organi/alions. boards of trade, etc., on the (ireat Lakes.

Moping tiiat the State Department will give this important matter the attention
which we think it deserves, we renniin,
Very respectfully yours,

Laki-;
Hy C. H.
Hon. .Iamk.k (i. llLAiNi;,

(Secretary of statr, tf'dHhiii'jIdii, D. (\

CAKIMK.It.s' ASStM'IATlON,

Dki'ai!Tmi:m (»k Stati;,
ll'nxlihifiton, I ihruiirii l'>, 1892.

Km: I have the honor to acknowledge receipt ol' your letter oi' the lid instant,
relative to the diHcriniination of the Canadian government against American citi-
zens in the use of the Welland Canal.

On the IHth of September. ISiU. the Lake Carriers' Association presented to this
Department a memorial regarding this matter, and the subject was fiilb presented

toSir.lulian I'anucefole. Her Mritannii M.ijestv's Ministei at this city,

the IDth

>f Octolier folliiw ing, No formal reply thereto has been n>cei\ed beyond an ae»
knowle<lgment <d' the receipt of the Department's mite and a statement by Sir

RECIPROCAL TRADE WITH CANADA.

Julian tliar. it had been refeiiod to his (ioveinmont. Tiio matter has boon brought
to tile attention of th(^ (,'iinadian Comniissioui'iN now in tltis city and an assurance
given to them tliat The eoni|daint which we liave i)reterre(l sliall have caretnl and
prompt consideraticMi, with a view to a faithful ol>.sevvane»; of the treaty .itijinlatiou.
K(^i;lying to your furtlier inquiry I would say thai the only treaty stii»ulafiou in
foree ap]dicable to the use by American and Canadian citizens of the canals ecui-
nected with the (heat Lakes ami the St Lawrene*- River is contained in thetweuty-
sevtuith arti<le of tlu^ treaty of Wasiiington. and is clearly intended to be reciprocal
in character.

I have the honor to be, sir, your (dtedient servant,

James (>. Hlaink.
Hon. N. C Rlanchaui).

Chairman Committev on Rirer and Harbom,

House of lieprettentatives.

Mr. Pni/ni: to Mr. lilainv.

Ariuux, \. v., Februarii ni, 1S92. (Received February 29.)

Dkak Sik: I inclose herewith a letter I'rom.ludgt; Churelihill. ofOswego, N. V., iu
reference to the treaty ol' Washington and the discrimination miide by the Canadian
governnu'ut against American ]>orts.

His letter will bejir careful ]n^ruHal, as he ])re8euts some im))ortant views on this
subject. It is also very timely in connection with the jierdiug negotiatifins for
reciprocity between the Canadian government ami ours.
Yours, verv trnlv,

S. K. Paynk.

I Inclosmc with Mr. Payiie'.s letter of Fcliniary 10, 1892.)

O.sWKUO, N. \ ., February 12, 1892.

My DKAit Siu: The j)reseiice of the representatives of Canada in Washington
seems to prestMit a good opportunity to have the (|ueRtion ofWelland (anal tolls
considered. I ol)serve recipi-ocity in other directions is to be discuHse<l, but no ref-
eroiu'e to reciprocity in tiie use (d' canals. This is a matter of great importance to
Oswego and Ogdeiisburg in jiarticiilar and indeed to all Lake Ontario ports.

As 1 understand the treaty <d" Washington (ratilied .June 17. 1H71), it ))rovide8
(arti(de 27) that the liritish (Jovtunment should urge npou the Dominion of (lanada
to secure to the; citizens of the I'nited States the use of the Welland and St. Law-
rence canals on terms of e(|uality with the inhabitants of the Dominion and that the
United States (joverninont should allow the suiijects of (Ireat Ihitain to use the St.
Clair Flats Canal on tiMins of e((uality with our own ]>eople. an<l would urge ujion the
State governments to secure to Ihitish snlijects the use of tiic State canals on terms
of equality with our own people. The only caual the right to use which was given
by that treaty was tlu' St. Clair Flats Canal, which the people <d" Canada have always
used on the same terms as our own people.

As to our New York State canals, which are this only canals proliably thought of
in making the treaty, the tolls on those canals soon after the ratilication of the treaty
were reduced to an ajiioiint siitHcient to maintain the canals, and in 1HK2 by a Con-
stitutiouai amendment all tolls were removed and the maintenan<!e of the canals
reciuired to be provided for by a direct fax. The benetit of these changes were
allowed to the ])eoj)ie of Canada, as well as to our own, since the products of Canada
as well as of th<> I'liited States are carried free of toll to market.

The tolls (Ml the \VoIlan<l and St. Lawrence canals have been maintained unchanged
and are collected equally from Ai.ierican and Canadian vessels, but for some years
past have Jieen refunded to sncii vessels (whether Canadian or American) as iinloiwl
at Canadian ports, liy this a great advantage is given Montreal which is annually
increasjiig its western trade. This probably is not an infringement of the treaty,
but it is a discriminatien against ns which we have a right to take into ac<'ount in
deterinining our action as to other mattera outside the treaty.

Yon will observe the .St. (Jlair Flats Canal is the only American work the use of
which l>y the treaty is secured to Hritish subjefits. The Saiilt Ste. Marie Canal, the
only navigable conni'cticui between Lake Superior and tlu' lower lakes and which is
in large and daily use by Canadian vessels, as I had an opjiortunity to observe a
year ago last summer, and the Hay Lake ('hannel, which is an American ihanuel,
shortening by several miles the juwsage from Sault Ste. Marie to liake Huron with
deeper water, are not mentioned.

But, though not mentioned in the treaty, Cauadian vessels are using the Sault

RECIPROCAL TRADE WITH CANADA.

Canal iwd all the expensive improvementfl made by our Government without charge
and without any return whatever.

The treaty, so far aa I can judge, does not forbid the imposition by Congress of tolls
upon the Candian vessels passing the Sault8te. Marie Canal. If such a bill were in-
troduced next Monday, while the Caaadian rcpresei'tatives are yet in Washington,
it would be sure to attract their attention and probably make canal reciprocity one
of the subjects of conference l)etween t'lem and our (lovernmcnt. If believed likely
to pass, it would prol)ahly lead the (,'aiuidian (Tovernmei)t to make Welland Canal
free to our vessels.

Gen. Curtis's district, as well as yours, is much interested in a free Welland Canal,
and I have no doubt the General would be glad to cooperate witli you in any way
in the matter.

Would it not be well for you and the (icn»n'al to see Mr. lUaiiie and see whether
anything can be don;' through his Departnientf If notliing mn be done, then,
unless yon see some obje<;tion under tlie treaty to a law imposing tolls on Canadian
vessels p.-issing tiic Sault, which I do not, I believe the introdiU'tion and pa.s.sage
of such a law as suggested would be just in itself and would be ])roductive of valu-
able results. If introduced its])as8agc wouM very likely iie rendered unnecessary by
the Canadian Government hastening to make the Welland Canal free.
Yours very truly,

JOMS C. CHIKCHILL.

P. S.— If the Welland Canal were made free it would give immediate relief to
American commerce on Lake Ontario, )nit it would not obviate the necessity of a
canal around the Falls of Niagara. lo will take .s me years to build that canal, if
begun to-morrow, and meanwhile every port on the south shore itf Lake Ontario,
from Charlotte to Ogdensburg, would be beiu?fited.

■A

Office oi Lakk Cai!H1ki!s' Association,

liufalo, \. v., March 11, 1802.

DkakSik: Answering your request for tignres showing the amount of discrimi-
nating tolls exacted at the Welland Canal (luring the season of 1891, 1 ..tvc the fol-
lowing figures covering the tralHc reaching the port of Ogdensburg, N. V., by water
via the Welland Canal in 1H91 :

Total tolls paid on all tratlic reaching Ogdensburg via Welland C.auiil in 1891,
$5.5,037.05.

TotiiT tolls which would have been exacted on the same tratlic had it been con-
signei^ to Montreal or any port east of Montreal. )»rovided it had gone thidugh with-
out breaking liulk or been transferred it an intermediate Canadian pent, if'7, 360.94.

Amount of toll collected as a discrinnnation against an \mcricaii p(Ut, ^47,()76.ll.

In addition to the above, tolls to the iiimmnt of $."),719..")ti were collected on grain
which reached (Jgdensburg \ in the Wellnnd Canal, was there tninsferred and for-
warded to Montreal. This grain ])aid full Wcllinul Canal t<dls of 20 cents a ton
without getting th<' refund. It was also refused the jia-ss tickets ordinarily given
at tlie Welland Canal on trattic bound thiough the St. Lawrt ■ e canals, which
tickets permit free ])aHsage through the St. Lawrence cauids. 'l"li i;rain in (|uestiou
not only paid full toll at the Welland, but wjis oliliged to jiay full t<dl thnnigh the
St. Lawrence canals also.

Total <liscriniiniition iigninst Ogdcnsbuig tratlic for 1891, .'l).">3.;{9."t.l)7.

I notice several new8]»a])er items of late, purporting to <'ome from Ottawa, Ontario,
to the ert'ect that the Ciinadiau government is to make some conc^'ssions in toll nnit-
ters. These dis])iitches indicite. howev«'i'. that tlu' only concession whit'li the
authorities have in mind is with regard to the ports of transfer. Vou will remember
that last year the refund on grain ciirgocs passing throngh the Welland Canal and
transferred to river barges for .Montreal at some intcrmctliate pnint \\ as only allowed
in case the trans.shipuient took plaie at a Canadian port, and was refused where
such transsliii>ment took place .it an .Vmerican |iort, like (►gdcnsburg. The press
dispat<hes indicate that the Canadian authoiitics will this ycarpernnt tiie refund
on Montreal trafWc, even though the transshi|iiri"ut takes place at an American port.
Doubtless this will be o<" some benefit to Ogdensburg, but it will leave unt'unhed
the principal |>oint at issue which cmnerns the right ..f tl'e Canadian .uitliorities to
refund nine-tentns of iHe cargo tolls on Montreal tratlic whib no refund is made in
the case of tratlic (»♦ the same character passing through the canal in the same
direction, and bound for an Ann rican port on route of ex))ort.
Yours, very respectfully,

9 C. H Kbbp,

Secretari) Lake Canlir> .iHsovitftton.

Hon. Wm. F. Whakton,

Firitt Anthtant Seeretat'f, of Sfate, Washington, IJ. C.

RECIPROCAL TRADE WITH CANADA.

[Oayloril, Downey & Co. couiminsion and sliipping merchants.

Oswego, N. Y., April o, 1S93.

Sir: Notwitlistaiuliiig the promises made by the Canadian ministers to you to the
contrary, we understand that an order in council has just been issued continuing
the discrimination ajiainst this cftuntry by Cauaila. Our board of trade sent you
resolutions recently setting fortli the nature of the discrimination, the elt'ect oi' which
is to drive the carrying trade ironi Tnited States ])orts on Lake Ontario to Canadian
ports and routes.

Can not something be done to stoji this unfair treatment f Why can not this coun-
try levy a toll upon all vessels passing through the " Soo " Canal, and rebate the
same if unloaded at an American ))ort. We are of the opinifui tliat such a course as
this, if consistent with existing treaties, would bring the Canadians to terms ([uite
}irom]>tly.

Awaiting your reply, we are, sir, yours, I'espectfully,

' GaYF-OI!!), Dowxky & Co.

Hon. .Jamks G. Blaink,

Secretary of Stafe, WuxhiiKjtov, I), C,

'■} ■

OSWKOO RoARU OF TRA1>K,

• (hiveno, X. v., April ■',, 189:3.

Sir: On the L'4tli <' y r»f November last our board ])assed resolutions, which were
at that time transnutti'<l to you. setting forth tlie disi-riminntions wiiicii have here-
tofore been practiced by the Douiinion of Canada against citi/.(-'ns of the United
States in respect to tonnage ]>assing through the Welhiud Canal, and which is a
direct violation ol'tiie spirit of tliti treaty of Washington.

We uiulerstand that at the reicut ciuiference held in W shington between your
honoralile self and the Canadian ministers that tliis nuestion was br(iuy;iit up, and
that the Canadians agncd t(» remove the tolls, or, in other words, that they would
not discriminate against the rnitcd States.

We also understand that an orde.' in couiic'l has just been issued granting a re-
bate ot' IS cents a ton on :ill grain passing through the W'olland Canal and St. Law-
rence canals through to Montreal this season tlie same as last year. Transshiimient
will li. iiermitted at Kingston, but will not be allowi'd at Oswego. Ogdensbuig, or
any other American pi.rt. For grain latided at any jiort west ()f Montreal, uidess
for transshipnuiit at Kingston, the full rate of toll, namely, L'O cents a ton, will be
exacted.

You will at once .see by this that the (■anadians have .igain shown l»ad faith,
and we now write you to ask if something can not be doiu- in the way of retalia-
tion, and we venture to suggest that Canada could lie brought to terms in this re-
spect in very short order if the Cnited States would at once discriminate against
Canada in regard to freight jiassing through (Uir "Soo" Canal, and wliich is now
largely used Ity Canadian vessels.

Awaiting your early reply, I am, sir, yours, respectfully.

1>. M. Jkwin, /Ve«tdcti<.

Hon. .James (i. Mi. aim:,

SecrcUirji of stall , fVanliiiu/loii, 1). C,

lOtUce 01' Max li. KicliurdHou, real estate.)

Of>.\\VAM^,'S.\., April 5, tS9.'.

Sir: Inclosed I send you a newspajjer clipping which puri»ort+> to be n re|)ort of
the decision arriveil at bv the Canadian government in regard to the use of the
Wellnnd and St. Lawrence canals for the season of 1892. .\s you are doubtless
aware, the reliale made by the Canailiau government is in direct violation of the pro-
visions of the 'I'reaty of Washington, so-calle<L wherein the Canadian government
agree<l to allow our (loveriiment the same privileges and rights, in relati<ni to the
use (»f the Wellaud Canal, as was enjoyed by their own government.

The violation of the provisions of said treaty c(»nsists in a reluiti- by the Canadian
government of tolls paid upon cargoes consigned to Montreal and ports east of M<»u-
treal, which reltate is not nuule upon cargiies c<»n8igned to American ports. There-
fore the Canadian governnuuit is violating the conditions of said treaty.

The attention of (uir (■(ivernment has been repeatedly called to this matter. Presi-

RECIPRO(JAL TRADE WITH CANADA.

dent Cleveland, in one of his niesHages, particularly referred to this subject, and rec-
ommended to Congress the adoptitm of a policy of retaliation.

As ;n Ameri(!au citizen of the United States, I desire to protest against this open
violation of the sacre<l treaty, and suggest that, if jtossible and practicahh', our
Government inunetliatelv, in order that it may aftcct connnerie for the season of
1892, impose tolls upon the shipping o\vn<'d by citizens of the (.'anadian government
for passage tlirough tljt^ St. Mary's and other canals owned by our (government.

Believing and trusting in your ability to visely and Justly »b»al with this im-
portant matter as the circ^umstaiices of the case re<|uire, I am, ■ I
Kespectfully, yours.

Max H. Rk'hardsox.

Hon. .Iamk.s (i. Bi.Aixi:, Secretarij of State, Wunhinfiton, I). (\

IClippiiig-

OFi'K'K OK I'i'.NFii'.i.i), Lyon & Co.,

Oxwcgn, y. r., April 6, 1892.

Dkar Sir: We venture again to present to the notice of tlie Deiiartment (tf State
the niiitter of discrinunation by the Canailiiin government against American com-
merce in the exaction <d' tolls for |)assiiL;e through the Welland Canal.

Our understanding of the spirit and iiit(>nt of existing treaty is that the citizens-
of the IJuitcd ?^tates and Canada shall each enjoy the same freedom in use of the
canals in both e<uintries as do tlie citizens of either in their own.

For several years, while the Canadians have used extensively w ithout tolls and
with jxrrfect freedom the Sanlt Stc. Marie and St. Clair camils and the costly sys-
tem of canals in the State of New York, the only Canadian canal whic h our citizens
have occasion to use to any extent is closed to our conuiier<'e, ex<;epl under l>urden
of tolls from which the traffic of Lower Canada and for exjHut via Montreal is re-
lievetl.

The unjust ditfercMice has for several years Imuiu' so h(>avily cm very extensive
conunercial and industrial interests on and near the l)ordcr — from Niagara l'"alls to
Maiut* — as to exhaust iiuiuy and bring mon- to the verge of utter ruin. Such as
have been l«'pt alive in the hope of eliauge in the Canailian jxdicy are now in
desi»air because of the repcu't of the reiiuposititui of the diserimimiting ti>lls by the
Canadian authuriti(;s in council.

We a-sk if it is within the ])owcr and consistent with the iiu'lination of your
Departmtuit to do anytliing to protect or ndicve these important interests fnun the
burden of this arbitrary and unfair ruling.

We are, very respectfully, your obedient servants,

PknkikLi), Lyon & Cc.

Hon. .James (1. JJi.aink, Secrelnry of Statr, W'ashiniflon, D. C.

OsWEiJO Vessef. Owskus' Association,

(Jmrei/o, X. i'., April <1, 189i.

Sir: Inclosed you will liud dipping which speaks for itself. It is very unjust the
manner in which tiie Canadian government is treating us regarding this matter of
tolls. 'F'his discrimination has driven the trade from Cnited States ]»oils on Lake
Ontario to Canadian ports, an«l instead of American grain going via the Krie Canal
to New York, and thenci- to Europe, it goes via the St. Lawrence to M(mtreal.

If the same tolls, that is, 20 cents per ton, were levied on all Canadian cargoes,
passing through our " Soo" Canal, there is no doubt the Canadian government would

. 42

RECIPROCAL TRADE WITH CANADA.

in a very short time give us a free Welland Canal, which we should have. Could
not our (iovcrninent impose such a toll on the "Soo" Canal, and insist on the Cana-
dians treatiujj us fairly ? I assure you it is a very great hardship for our vessels to
continue paying exjieuses with this discrimination against thf ai.
Trusting you can relieve us of this lieavy burden, I am sir, respectfully yours,

M. J. CuMMiNGS, Prebident.
Hon. Jamks (t. Blaink,

>Sevretarii of State, Washington, 1). C.

liefuac to Come Down, — The Dominion Government will Continue to Discriminate.

Ottama, April 4,
The government has decided to gnint a rebate of 18 cents per ton on all grain
passing through the Welland and St. Lawrence canals through to Montreal this
season, the same as last year. Transshipment will be permitted at Kingston and not
allowed at Ogdensburg or any American port. For grain at any port west of Mon-
treal, unli«s for transshipment at Kingston, the full rate of toll — 20 cents per ton —
will be exacted. Notwithstanding the recent conference with Secretary Blaine, the
Canadian ministers appear determined not to relax the course they have followed
with regard to discrimination against United States ports. ,

Om-vgo, N. Y., April 6, 189S.

Sik: I regret that the Canadian government has issued an order to again levy a
toll of 18 cents per ton on all grain passing through the Welland Caniil and land-
ing at American ports on Lake Ontario, and also 20 cents per ton on all coal, salt,
and merchandise going West. This discrimination against American shippers and
vessel owners is very unjust; it is destroying our vessel interests on Lake Ontario,
and is a heavy tax on tiic Westward shippers of coal and salt.

-As the Canadian peoide have the free use of our Saiilt Ste. Marie and St. Clair
canals, could you not consistently levy the same toll on Canadian vessels passing
through these canals as they do on oiir vessels passing through the Welland Canal.
I inclose you herewith a clipping in which a prominent Canadian vessel owner
and shipper exprc^sses his views on this subject. It is also the opinion of a great
many ot the Canadian people that this discrimination against us is entirrly unjust
and unfair.

Hoping you will see your way clear to secure us some rel'3f in tliis matter, I
remain, sir,

Respectfully yours,

ROBT. DOWNKY, Agent,
Hon. .Tames TJ. Blaink,

Sevreturtj of State, Washington, D. C.

• -5

(

[Clipping.]

A free Welland Canal — Letter of a prominent Canadian vessel oivner — Open letter to the

premier. ■

Hon. J. J. ('. Ahbott, Ottawa:

Hon. Sik: During the past few days your government has been waited upon by
two or three different deputations which have urged upon you their connictiug
views regarding rebates of canal tolls on grain passing through the Welland Canal.
The American canal at Sanlt Ste. Marie and their canal at St. (^'lair are free to
Canadians and Americans alike. Our Welland Canal ought to be free too.

Why should the Anu^ricans be discriminated against in our canal, while they treat
us so fairly in theirs, or why should coal, timber, lumber, and other goods pay canal
tolls and grain be exempt! .. _h ,,

Yours sincerely, ■ _ ; . a ,!

: ■- " ■ V ' i Hiram A. Calvin.

Gakdkn Island, March 28.

ir'

RECIPROCAL TRADP: WITH CANADA.

Mr. Calv'u is an »,'xt«'iisive liiiiil)t'r Hhii>])t'r ami vcsst'l owntsr of Canada, and Las
always bocn a stronjr snj)|)()rt('r of tlie Macdonald ;ii<ivfrnnu'nt. He resides in
Kin^-ston and is thoronjjhly conversant with the slii]»])iny trade of Canada.
Whether lie voices the sentiment of the, majority of Canadians we can not say. hnt
tliat his arjfiimeut aj)]iea]s to all faii-minded men no one can deny. an<l the course
he advocati's as re;;arils (anadian camils is only fair anil riichr and accordinji; to the
spirit of the treaty of \\ashiujj,ton. This conntry tacitly agreeil to throw open ;ill
government canals totlie nse of Canadians, Imt with the imdei'standing that Canada
•would treat our citizens the same In regard to her government canals, which she
lias never done.

.. r

•V

»•

- Oki'uk of Lakk Carimkks' Association,

Buffalo. X. v., April l.'.\ 183:2.
Sir: I inclose herewith, for the inform.ition ol' the Department, a clipping from
the Marine Record, ])n))lished at Clevelanil, Ohio, ])nrporfing to give verhatim an
order Just issued by tin; Canadian government with respect to tolls and ri'liates on
the Welland Canal for the year 1892. If this clipping states the facts (and upon its
face it bears evidence of its authenticity) yon will note the fact that the Canadian
government has in no way moditied its practice of recent years. Cnder the order
a.s here given export grain which ])as.ses east-hound through the Wellaiul Canal, and
theuce through the St. Lawrence canals to Montreal or .some i)ort east of .Montreal,
is granted a rebate, which reduces the tolls lo 2 cents per ton, while the same arti-
cles passing through the Welland Canal, in the same direction, and bound to <)g-
densburg for export by an American route of exi>ort, arc oldiged to i>ay tolls of 20
cents per ton. Von will note, also, that grain jiassing through the canal and botmd
for .Montre.al, or some jtort east of Montreal, is granted the reliate if transshipped at
an intermediate Canadian port, but is not granted the reliate if transshipi>ed at an
American l>ort, like ()gdensl)nrg.

Several weeks since when I was in AN'.ishington I had an interview on this sul>jecti
with Senator Hoar, who is a nuMulter of the ."Semite ( Ommittee on Relations with
Canada. Senator Hoar then oH'cred to introduce in the .Senate ami endeavor to pass
through that body a l)ill directing the Secretary of War to ascertain whether any
discrimination was made on the Welland Canal between grain or other merchandise
bound for .Vmerican ports or AiiMuican routes of e.\))ort and the same articles .v heu
bound forCaiuidian ports orCanii<lian routesof exi)ort ; ami in cas(> suchdiscrimiua-
tion was found to exist, the Secret.ary of War was diriMted to charge ami collect at
the St. .Mary's Falls Canal and the St. Clair Flats Canal a loll ujioii the same articles
boinnl for Canadian |)orts or Canadian routes of exjiort, which tolls should bt; equal
in amount to the discrimination now made at the Welland Canal. In view of the
fact that your Department had at the conference with the Canadian commissioners
brought this matter to the attention of the Canadian authorities, .md that you were
awjiiting an answer from them, it did not then seem ]>roper to introdnce such bill
in the Si'uate. 'Ihe bill was therefore not ])resented. If the new order nuide by tlni
Canadian authorities indicates, as it wouhl seem that it must, an intention on their
part to adhere to what seems a clear violation both of the spirit and the letter of the
27th article of the treaty of Washington, I woul<l rcsi)ectfulJy submit to your Depart-
ment whether the introduction and passage f>f a bill like that suggested by .Senator
Hoar would not be a pro|)er step in securing to our vessels and ports tht>ir .just
rights. So far as the vessel-owning interests on the lakes are concerned, we believe
that your Departnu'iit will take all the necessary steps to .secure to us any rights to
which you think we are justly entitled and which we are now dejirived of by the
action of the Canadian government.
Very r<;8pectfully, yours.

Lakk CARRiKfis' Association,
V,. H. Ki;ki', Sfcrutarji.
Hon. W.M. F. WiiAUTON,

First Asaixtaut Heeretary of State, Washington, D. ('.

„t-.

Department of State,

Washington, June 6, 1S93.
To the President :

In the report whieh was subinittetl to you on X\m] 1/) hist, of the
confereiiees hehl at tlie Department of State with the Canadian eom-
missioner.s, it is stated that the 8ul)je<'t of the rebate made in the tolls
on grain carried through the Canadian canals to Montreal and shipped

■

i .

(

RECIPROCAL TRADE WTTH CANAJ)A.

therefrom to Europe was considered in the confereiu-e, and that it was
understood tlie Canadian comnussioners would see to tlie witlidrawal
of this disciiniination.

After the adjournment of the conference the subject was again
brouglit to tlie attention of the Canadian (rovernment through the
British minister, by a note from the Acting iSecretary of State, dated
March 17 last, of which a copy is inclosed, but no r»'sponse was made
thereto.

On the 4ti. of April a new order in council Avas issued, reihiacting
the rebate provisions which had been in force for several years past,
and wliich had occasioned the remonstrances of the (jrovernment of the
United States, A copy of the order of Ai)ril 4 is inclosed.

The matter became the subject of some informal conference between
the Secretary of State and the British njinister, and resulted in a pro-
l>osal from the latter that one or more members of the Canadian
ministry should come to Washington to discuss anew the (piestion of
the removal of the discriminating tolls. This visit, which has been
contemplated for several weeks ]>ast, has Just taken place. The Brit-
ish minister, accom]>anied by Hon. MacKenzic Bowelland Hon. George
E. Foster, two members of the Canadian ministry, were received at
the I)c[»artment of State on Fiichiy, the 'M\ instant, by the Secretary
of State. The undersigned, who had participated in the conferences
of February last, was also i)reseut, bv invitation of the Secretary of
State.

The Canadian connnissioners o))encd the conference by stating that
there s« cmed to exist some misunderstanding as to the conclusions
reached at the conference of February last resi>e<'ling the Canadian
canal t )Ils. They had been infornie(l that the American cfmferees
understood that an assurance had been gi\ en that the discrimination
which tlu'y alleged had been created against American ports and lines
of transportation by reason of the Montreal rebate was U) be rciio'^ed.
This did lot conform to their nnilcrstanding, as all the assurance they
intended to give was that the complaint (tf the Government of the
United States should be taken into cojisideration by the Canadian
ministry oti their leturn to Ottawa; that it was a subject about which
they had not received instructions from the Dominion Government, and
that it would necessarily have to be referred back to that Government
for action. The c<»mmissioners, however, stated that they had been
remiss in their failui-e to have the Government of the United States
advised of the decision of the Dominicui (Toverument to reissue the
orders in council as to the canal rebate of last year.

The Secretary of State said that he had understood tlie result of the
conference of February last to be that the Canadian commissioners
had given assurance that the causes of complaint, as ])resented.by the
Uiuted States, slnmld be removed, and in this statement he was con-
firmed by the undersigned. But the Secretary recognized in the pies-
ent visit of the commissioners a desire im tlunr part to i-each an under-
standing on the subject, if possible, and he asked what proposition they
had to make to that end.

The commissioners then said that they did not regard the present
canal tolls rebate as any discrimination against the United States, nor
was it, in their opinion, any violation of either the letter or sjurit of
article 27 of the treaty of 1871. They proceeded at some length to
give the histoiy of the treaty of 1871, and e8i>eciallyof articles .iO ami
31 in their relation to article 27. They conteiuled .that the Canadian
canals were open to citizens of the I' nited States on exactly the same
terms as to British subjects, and that, hence, the stipulations of the

RECIPROCAL TRADE VVIT}1 CANADA.

]

treaty were ('Oiiii)li«Ml witli. Tlicy rocogfiiized tin* fact that the tolls
wer»' so arranged as to favor the e.\i)ort route tlirou;;li Montreal, hut
this they deemed was entirely eonsistent witli the treaty and jiistitied
by the la rye e.\iien<liture made l>y tin* Canadian (iovernnieiit in the
construction of its canal.> for this c.\])ress j)uri>osc.

The Se(Metary of iState. in rei)ly, n'cojiiii/ed the correctness of the
claim of the commissioners that the canals were open to citizens and
subjects of the two countries alike, hut he urg-ed that liie discrimina-
tion which was a^^ainst Ameri<-an pojts and lines of transjxnlatiitn to
the seaboard, was in plain viohition of article L*7 of the treaty; and
that the con<luct of Canada was in marked and unfavorable contrast to
that of th(i United States, whicli gave free transit throuyli its canals on
theCrreat Lakes to all commerce without regard to the mute o\er which
it passed to the sea. The conference of Friday continueil for two hours
without agreement, and was adjourned till the next day. with the sug-
gesticm on the ]>art of the Secretary that the Cana<lian commissioners at
the next session subndt s<nne ]>roposition for an adjustment of the ques-
tion. On Saturday, the 4th instant, at 11 a. m., the conferees reassem-
bled at the Dei)artment of State, and the Canadian commissioners, in
response to the request of the Secietary of State. i)roposed to modify
the order in council b\ alh»wing' the transshii)ment in American ports
of cargoes destined for Montreal without loss of reba e, on <;on(lition
that the free mivngation of the Hudson liivcr be allowed to Canadian
vessels and boats from the end of the New York State (-anals to New
York ciiy.

The Secretary of State d«M'lined to enteitain this projiosition as a
satisfactory settlement of the question, lie claimed that under the
treaty the citizens of the Cnited States had a right to use the Cana-
dian canals without condition as to the i)la<'e of transshipnuMit of cargo,
ami that it was not proper to ask any further consideration for the
exercise of a treaty i ght. Besides, it was ar unusual con<'ession to
grant the free navigation of a riAer lying wholly ; ithin one country to
the citizens of another country; and in this case it could not be done
without legislation of Congress.

The Canadian commissioners said they did not feel authorized at
jiresent to agree to a riMuoval of the rebate on the canal tolls, but
stated that on their return to Cajuida tiu' subject should be again sub-
mitted without delay to the Dominioji nunistiy, and thej' ho]»e(l to be
able within two weeks to submit to the (rovcrnment of the I'nited
States some new proposition on the subject. It was, therefore, agreed
that the ])resent <'onference should be ternumited with the understand-
ing that the Canadian (Jovernment wouhl be expected to nnike some
further communication on the subject to the Government of the United
States, but without i)rejudice to any action which the latter Govern-
ment might see pro]>ei- to take.

During the conference the British minister reierre<l to the other nnit-
ters which had been agreed upon at the conference in Febrtnuy, and
which his vlovernnient was anxious to carry into etfect as soon as jms-
sible. to rtit: The agreeuM'Ut as to the Alaska boundary, the marking
of the water boundary in l*assama(|Uoddy Bay, the api)ointmeiit of a
joint connnission to report on lishing regulations, and tlie concurrent
legislation on the lakes as to wrecked vessels. The StM-i-etaiy of State
concurred with tin' British ministei- that, as these nmtters had no de-
pend«'nc<' ujjon tlu' canal tolls «pu'stion, the agreement res])e<*ting them
Khould be carrie<l out with as little delay as possible.
Ivespe<'tfully suhndtted.

John W. Foster.

KECIPROCAL TRADK WITH CANADA.

Dki'autmknt oi Stati:,

WaiihiiKjtou, March !7, ISf).'.

Sii! : I have the honor to refer to the iliHcuHsion which took place in the conferences
lately held .it this Depiutiiient between the Secretary of Stiite, yourself, and the
Canadian coiiiiiiissioiierH, respectinj; the discnmiuatiiii; tolls in the Canadian canal*
and to inclose herewith a copy of a letter from the F, a l<c Carriers' Association, flated
Buti'alo, N. v., the 11th instant, coutaininy Iij;ure8 showinu the amounts of the dis-
crimination iu (luestion.

The l)e]»artment will f^reatly ai)i»re<iate your courtesy in forwardinj;- a copy of
this letter at once to the Canadian ai' Lhorities for tlit^ir information in conneition
with the promised satisfactory adjustment of the (juestion of canal tolls.

Accept, Mr. M-nisrer, the assurances of my iiigh consideration.

Wii.; lAXi y. WnAHTox,

Act in;/ Secretary,

Sir.Ji'i.iAN Paunckkotk, (J. C. M. (J., K. C. B.,etc.

Okkk i; oi' i.AKK Carrikks' Association.

Hiiffalo, X. v., Ma'ch 11, 1892.

Di'.Ai! Sin; Answeriiifi your re([uest for ti<;iires showinji the amou.it of discrimi-
nating tolls exacted at thi' Welland Caual during the season of 1891, I have the fol-
lowing figures covering the tratHc reaching the port of ()g<lenshurg, X. V., l>v water
via the Welland Canal in 1H91 :

Total tolls paid on ali trafiHc reaching Ogdensliurg, vj.i Welland Caual in 1891,
$55,087.05.

Total tolls which would have been exa*.*^ -d on the same ti'attic had it been con-
signed to Montreal or any port east of Montreal, jtrovided it had gone through with-
out breaking bulk or been transferred at an intermediate- Canadian port, .$7,3HO 94.

Amount of tolls collected as a discrimination against an American port, $16,67(».ll.

In addition to the above, tolls to the amount of $5,719.56 were collecteil on grain
which reached Ogdeusburg via tlie Wellainl Canal, was there transferred and for-
warded to Montreal, This grain paiil full Wellaud Canal tolls of 20 cents a ton,
without getting the relund. It was also refused the pass tickets ordinarily given at
the Welland Canal on tratitic bound through the St, Lawrence canals, which tickets
permit, free passage through the .st. Lawren<e canals, 'llie grain in (luestion not
only paid full toll at the Wellaud, but was obliged to jiay full toll through the St.
Lawrence canals also.

Tot.al discrimination against Ogdensburg tratiic for 1891. $.53,;^95.67.

I notice several newspaper items of late ]»ur]>ortiiig to come from Ottawa, Onta-
rio, to the effect that the Canadian Government is to make some concessions in toll
matters. These dispatches indiciite, however, that the only concession which the
authorities have iu mind is with regard to the ports of transfer. You will remember
that last year the refund on grain cargoes passing through the Welland Canal and
transferred to river barges for Montreal at t^ome intermediate point was only allowed
in ease the transshipment took place at a Canadian i)ort, and was refused wl ere such
transshipment took place at an American port, like Ogdensburg. The press dis-
patches indicate tliat the Canadian authorities will this year pci'rait the refund on
Montreal traffic even though the transshipment takes place at an American port.
Doubtless this will be of some benefit to Ogdensburg. but it will leave nntomhed
the principal point at issue, which concerns the right of the Canadian authorities to
refund niue-tcnths of the cargo tolls on Montreal tratitic, while no refund is made in
the case of traffic of the same character, passing through the caual in the same direc-.
tion, and bound for an Amcriean port or route of exi»ort.
Yours, very respectfully,

C. H. Kkkp,
Secretary Lake Carriers' Associaiion.

H<ui. WiM.iAM F. Wharton,

First Anni8t({tif Secretary of State, Washiiujton, I). C. ,-',:

- " At THK GovKRXMi'.NT TTfM'SE AT Ottawa,

• - . Monday, till 4th day of April, 189'3,

Present: His excellency tln^ govc^rnor-gcucral in council.

His excellenc.v havitig had und<'r consideration the tarifl' of tolls on the cauals of
the Dominion and the several (U'dcrs in council umb^r which a special rate has from
time to time been established temporarily on certain food jtroducts passing through.

RECirROCAL TRADE WITH CANADA.

tho Wi'llaiid Cimal iiii<l rliroiijfli flic St. Lfnvrcnct' cjiiials. for HliipiiK-nt af Montreal
and ]>orts cast of Montreal, is plcascil toorder. in virtue of tlw )io\vers vested in liiin
by elia]>ter 87 of the Ue\ iscd Statntes, intitnled "An aet res^»e(•tinJLt the department
of railways and canalK,'" and liy and with tiie advice oftlie (,>neen's privy eonneil for
Canada tlnit the foHowin^' amendments shall lie, and the same are iuTeliy. nnule to
the tariif of tolls in force on the said canals, \iy, :

That a refund he nnide id' a porliou of the canal tolls collected on wheat, Indian
corn, pease, barley, rye. oats, tlaxseed, and buckwheat, which have been carried
throu«;h the Wellaiid Canal and the St. l>awrence canals to Montreal or to any port
east of Montreal, in all eases wlu're the said iirodncts so carried are exported, and in
such eases only. ,

That this rebate be smdi as to redneo the tolls to 2 cents jier ton of the said prod-
ucts or any of them, and that the con<litions of such refund be the followiug:

That the ]»ro(luct8 aforesaid on which the rebate of tolls may be claimed shall be
shown to have been originally shipped for Montreal or for some port east of .Montreal
and shall be shown to have been carried to Montreal or to some port east of Montreal,
and actually sent out oftlie country.

That the rij;ht to this rebate shall not bt; lost by reason of intermediate transship-
ment, provided that the place of suith transshipment is one within the Dominion of
Canada.

That the right to this rebate shall I'xtend to any portions of cargoes lightered at
Port Colborne and reshipped at I'ort Dalhousie, and also to shipments of the above-
named products made from any Canadian Lake Ontario port.

That i)ayment of the amount to be refunded be made, from time to time, as ear-
goes of the said products are dispatched for export from Montreal or from some pori
east of Montreal.

That this order in council remain in force for the present year, 1892, only.

John J. McGkk,
. Clerk af the Privif Councils

The Minister OF Railways and Canals.

[No. 0. Cimnls Kevcnue.]

In carrying out the provisions of the, foregoing order in council (<ff the 4th of
April, 1892), the c(dlector at Port Ccdborne will collect the full rate of t(dls on the
Well'ind Canal, and issue an official recei)»t therefor.

The authorized reduction of tolls will l)epaid by the Department as a refund upon
evidence being furnished that the conditions of the order in council have been com-
plied with.

The vouchers, pr-^perly indorsed, and certiftcate of export, must in all rases ac-
company the application for a refund of the tolls referretl to.

B. H. TiCAKLKS,

Chief Clerk, Canah Revenue,
Dkpautmknt ok Railways ani> Canals,

Ottawa, April 5, 1892,

I i

An act to enfc

Be it en a I

Stafi'H of A I
i('(.'i|»ro<'al a
States, on SI
ninety-two,
tliat the pai
tion of the i
connecting
or passengt
or is made (
wise Avliicli,
Canal, now
ciprocally v
shall be liis
time and to
deem Jnst,
Canal, so f;
ernment so
United Sta
transit to t
whether ca:

In such (■
lected, and
description
exceed Ave
the Preside
upon i'reiyli
any port w
ern bouuda
Iviver, the <
boundary o

Sec. 2. i
as shall b(
require the
amount an^
the destina
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landed at f^
of tolls whi
constitute ;
wherever a

Approve

frUBLIC— No. 154.)

An act to enforce reciprocal commercial relations lictwoen the United States and
J • Canada, and for other purposes.

Be it enacted try tlie Senate and House of Represent aiiveH of the United
States of America in Contjresx ansvmldvd, Tliat, with a vi<'\v of securing
reciprocal advantages for tlio citizens, i)orts, antl vessels of the United
States, on and after the first day of Anj^nst, eighteen hundred and
ninety-two, whenever and so often as the I'resident shall be satisfied
that the passage tiirongh any canal or lock connected with the naviga-
tion of the Saint Lawrence River, the Great Lakes, or the water ways
connecting the same, of any vessels of the United States, or of cargoes
or [lassengers in transit to any port of the United States, is prohibited
or is made ditlicnlt or burdensome by the imposition of h)lls or other-
wise which, in view of the fre<' passage through the Saint Marys Falls
Canal, now permitted to vessels <»f all nations, he shall deem to be re-
cii>rocally unjust and unicasonable, he shall have the i>ow(»r, and it
shall be his duty, to suspeiul, by proclamation to that effect, for such
time and to such extent (including absolute prohibition) as he shall
deem Just, the light of free passage through the Saint Marys Falls
Canal, so far as it relates to vessels owne<l hy the subjects of the gov-
ernment so discriminating against the citizens, i)orts, or vessels of the
United States, or to any cargoes, portions of cargoes, or passengers in
transit to the ports of the government making such discrimination,
whether carried in vessels of the United States or of other nations.

In such case and during such suspension tolls shall be levied, col-
lected, and j)aid as follows, to w'it: Upon freight of whatever kind or
description, not to exceed two dollars per ton; upon passeng<'rs, not to
exceed five dollars each, as shall be from time to time determined by
the President: Prow/tY/, That no tolls shall be charged or collected
upon freight or passengers carri<'d to and landed at Ogdensbnrg, or
any port west of Ogdensbnrg, and south of a line drawn from the north-
ern boundary of the State of Xew York through the Saint Lawrence
Iviver, th<^ (rreat Lakes, and their connecting channels to the northern
boundary of the State of Minnesota.

SEf. 2. All tolls so charged shall be collected under such regulations
as shall be prescribed by the Secretary of the Treasury, who may
require the master of eacli vessel to furnish a sworn statement of the
amount an<l kind of cargo and the number of i)assengei's carried and
the destination of the same, and such ])i<)of of the actual delivery of
such cargo or ]»assengers at some })ort or place within the limits
above named as he shall deem satisfactory; and until such })r(»of is fnr-
nished such freight and i)assengers may be considered to have been
landed at some port or place outside of those limits, and the amount
of tolls which would have accrued if they had been so delivered shall
constitute a lien, which may be enforceil against the vessel in <lefanlt
wherever and whenever found in the waters of the United States.

Approved, Jidy 2(5, 18*J2.

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C/5

BY THH PRHSIDHXT OF THE UI

A PROCLAJ

Whereas, by an act of Congress
act to enforce reciprocal commercial re
and Canada, and for other purposes,"
' securing reciprocal advantages for the
' United States, on and after the first
' and ninety-two, whenever and so often
' that the passage through any canal or
' of the Saint Lawrence River, the Gr
' necting the same, of any vessels of tl
' passengers in transit to any port of th
' made difficult or burdensome by tht
' which, in view of the free passage thr
' now permitted to vessels of all nation-
'unjust and unreasonable, he shall have
' to suspend, by proclamation to that ef
'tent (including absolute prohibition) i
' free passage through the Saint Marys
' vessels owned by the subjects of the go'
' the citizens, ports, or vessels of the 1
' portions of cargoes, or passengers in
'ment making such discrimination, whet
'States or of other nations.

" In such case anil durinjj such su
' lected, and paid as follows, to wit : U
' description, not to exceed two dollars
' exceed five dollars each, as shall be frc
'President; Provided, That no tolls sh
' freight or passengers carried to and 1;
'west of Ogdensburg, and south of a lir
'ary of the State of New York throng
' Great Lakes, and their connecting cha
' the State of Minnesota.

" .Sei . 2. All tolls so charged shall 1
' as shall be prescribeil by the Secretary
' the master of each vessel to furnish a s
•kind of cargo and the number of i)ass
' of the same, and such proof of tlu; acl
' sengers at some port or place within tli
' deem satisfactory ; and until sucli proo
' sengers may be considered to have l)e
'outsiile of those limits, and the amount

BXT OF THE UNITED STATES OF AMERICA.

A PROCLAMATION.

1 act of Congress approved July 26, 1892, entitled "An
rocal commercial relations between the United States
r other purposes," it is provided "That, with a view of
1 advantages for the citizens, ports, and vessels of the
and after the first day of August, eighteen hundred
lenever and so often as the President shall be satisfied
irough any canal or lock connected with the navigation
-ence River, the Great Lakes, or the water vv'ays con-
of any vessels of the United .States, or of cargoes or
sit to any port of the United States, is prohibited or is
burdensome by the imposition of tolls or otherwise
he free passage through the St. Marys Falls Canal,
vessels of all nations, he shall deem to be reciprocally
enable, he shall have the power, and it shall be his duty,
iclamation to that effect, for such time and V- such e.\-
solute prohibition) as he shall deem just, the right of
gh the Saint Marys Falls Canal, so far as it reflates to
le subjects of the government so discriminating against
or vessels of the United States, or to any cargoes,
s, or passengers in transit to the ports of the govern-
discrimination. whether carried in vessels of the United
nations.

ind during such suspension tolls shall be levied, col-
s follows, to wit: Upon freight of 'latever kind or
exceed two dollars per ton ; upon \> sengers, not to
each, as shall be from time to time dei imined by the
</, I'hat no tolls shall be charged or collected upon
rs carried to and landed at Ogdensburg, or any port
•g, and south of a line drawn from the northern bound-
New York through the Saint Lawrence River, the
heir connecting channels to the nortlu.'rn boundary of
sola.

s so charged shall be collected under such regulatif)ns

1 by the Secretary of the Treasurj-, who may require

vessel to furnish a sworn statement of the amount and

lir number of passengers carried and iIk! destination

ch proof of the actual lU'livery of such cargo or pas-

rt or place within the limits above named as he shall

antl until sucli proof is furnishetl such freight and |)as-

sidered to have been landed at some port or place

ts, ami the amount of tolls which would have accrued

" if they had been so delivered shall constitute alien, which may be enforced
"against the vessel in default wher. ver and whenever found in the waters
"of the United States," and i-

Whereas, the Government of the Dominion of Canada imposes a toll
amounting to about 20 cents per ton on all freight passing through the
Welland Canal in transit to a port of the United States, and also a further
toll on all vessels of the United States and on all passengers in transit to a
port of the United States, all of which tolls are without rebate. And

Whereas, the Government of the Dominion of Canada in accordance
with an Order in Council of April 4, 1892, refunds 18 cents per ton, of the
20-cent toll at the Welland Canal, on wheat, Indian corn, pease, barley,
rye, oats, flaxseed and buckwheat, upon condition that ihey are originally
shipped for and carried to Montreal or some port east of Montreal for ex-
port, and that, if transhipped at an intermediate point, such transhipment
is made within the Dominion of Canada, but allows no such nor any other
rebate on said products when shipped to a port of the United States or
when carried to Montreal for export if transhipped within the United States.
And V

Whereas, the Government of the Dominion of Canada by said system
of rebate and otherwise discriminates against the citizens of the United
States in the use of said Welland Canal in violation of the provisions of
Article 27 of the Treaty of Washington concluded May 8, 1871. And

Whereas, said Welland Canal is connected with the navigation of the
Great Lakes, and I am satisfied that the passage through it of cargoes in
transit to ports of the United States is made difficult and burdensome by
said discriminating system of rebate and otherwise, and is reciprocally un-
just and unreasonable,

N(^w, therefore, I, Ben-jamin Harrison, President of the United States
of America, by virtue of the power to that end conferred upon me by said
act of Congress approved July 26, 1892, do hereby direct that from and
after September i, 1892, until further notice, a toll of 20 cents per ton be
levied, collected, and paid on all freight of whatever kind or description
passing through the St. Mary's F"alls Canal in transit to any port of the Do-
minion of Canada, whether carried in vessels of the United States or of other
nations ; and to that extent I do hereby suspend from and after said date the
right of free passage through said St. Mary's Falls Canal of any and all car-
goes or portions of cargoes in transit to Canadian ports.

5u testimony MlflCVeol I ha\e hereunto set my hand and caused
the seal of the United States to be affixed.

Done at the City of Washington this i8th day of August, in the year of
our Lord one thousand eight hundred and ninety-two, and of
[seal.] tlie Independence of the United States of America the one
hundred and seventeenth.

BENJ HARRISON

By the President :

JOHN W. FOSTER,

Secretary of State.