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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 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 belon3 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 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 undersial 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 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. .1 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- tin; tolls paid were .'ih, By tln' otticial (;aual returns it appears that tlie total t'rci^dit jiaasin};' thronj^h tlie Wellaud Canal in 11 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, i)ar in that resi)eortion 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 My the imjMtsition of the same cvided 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?/^(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. 'f 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 agrea.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)rivileeen exacted by the lTnit<'d States. The (Jovernment of the Dcuniinon ar^'. nevertheh .s. as heretofor<', desireople. 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 Unifeorts of transsbiiMiieiit or export, and that the I'uited States will eontinne to deal in lilce manner witli the subjects of IlJtnie 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 train 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 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 artiorts. If the object were to favor the use of tin' Canadian canals, and that object were carrieited 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)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 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«]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. 8 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 1een 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' of rebates (hereon, the siiine treatment will be ac- «'orded to citi/eiis of the I'nited States as is iu liritish vessels wilhont payment oi' 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 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 Uniterri- ■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 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: 10 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'nitrivilege 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 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. 11 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 nth 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 2 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 Unitele 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 exhase 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. ^ I . \ i 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; .^,.^ 1 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 (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 licatistach' in tiu' matter of revenue, if any cousideral»le listof manufactnred ^ioodsol' the TTnited States slumid l)e admitted free into Canah>ce, it seemed to be impossil)le for the Canadian (iovernment. in view of its l)resent political iclationsand oldii-ation.,, to extented 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 rease 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 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.] 9 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, an1 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!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. 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 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 contractiubje(;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« 10 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 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 ,037.0.") toll, while if the same trathc haort, 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., dateped 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,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|io8eIied 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;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 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. u 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, rixiiiigli tlu^ Wel- land and St. Lawieute canals dniing tlie season of l^i}tl. It is nndcrstood that these t \ . 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 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. 15 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 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 Mariniiit at Montreal .and ports east cd" Montreal, is ])leased to order, in virtue of the power vested in iiim by chapter H7 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 interesterevent rel'uud of tolls on grain transferred at Og- densburg or other Cuited States }torts. The exact meaning of the order as issue. 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 'A • RECIPROCAL TRADE WITH CANADA. 17 ])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 . 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 \ 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 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 department of railways and canals," auI.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 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 1 Ton». 2:17, 881 IfiO. 191 1884 174.400 1880 275.414 1885 i:i4 X24 1800 1 242, .J7 1 1880 272, i:w I 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 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 19 182 I4:i,026 tw 'JOH 166,117 114 i 203 184, 275 35 ( i 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 carrieroducts 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. I 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 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 Wth day of March, IHOl, au- thorizing the reduction 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 Cunaii 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
  • 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'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. 25 tiiiif ti) tiiuf been estiillislu'd tiMiijxii'ariiy on (/crtiiin ftxid jirodncts ])aHsiny eliapter S7 of the revised st:itntes, entitled '' An act res]ie( tinu rhe department ofrailw;iys ;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 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. 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 tiesentativ<'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 ))eisistcr ton. For some y(*:irs jiast, however, the Canailian j^overnment has. just before tln^ o](en- ing of lake na\ ;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\.>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, anort i-ast of Moutrcjil. Third, tr^'i'-'-'-ipmont, it' at a Camidiau iiiteruiediate port, sliall not prevent tll(^ refund aforesaid heiiiSii]»plement No. 1 to the annual report of the ('amiroc<'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<: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) t9 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 Canaorts 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 - 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 viound 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, 30 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 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* I (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.- : 18!tO ; I '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 disrs, 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. 32 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.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 trapre- 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.. HiciiAi80N. 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 faut 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. <'., 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 Wne 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 mattipe 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 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'., 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 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)aiasrt 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. 37 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 Canai-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 osed at the Wellaud Canal, should the (•overninent of tin; Dominion of Canada fail to recog- nize its id)li, 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.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. 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 discuHseeople. an I'liited States are carried free of toll to market. The tolls (Ml the \VoIlany 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 I RECIPROCAL TRADE WITH CANADA. 39 ' 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. / 1 1% ■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 t3.;{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 dispatoint 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. 40 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'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, fi 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-callent 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 eurden 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. It 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. V • -5 ( i [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. V w ir' i RECIPROCAL TRADP: WITH CANADA. 43 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 ;iiort, 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 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 woulf 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 f^ ■ i i . m ( 44 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 \' I RECIPROCAL TRADE VVIT}1 CANADA. 45 ] 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.\iieny 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 conart of the Secretary that the Canaroposition 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 reierrev 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. Lawrenortiiig 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. Horts 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 Canals, Ottawa, April 5, 1892, I i I V 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 such cargc above nam nislied sue] 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 c (o a; c C ^ O ?r^ ' — ! J-i o ^ u O '*^ s^ r'. ri a ■ ■ --2 D >-. 03 ^ '^ 3 .ti (/J bj[)<-2 "55 1^ o t< ^ ^^ ^ t I ^-^-B .c ^ - c vi .£ t) si c i> ^ ti - -^ Q o ^ 71 _ O V- o - a; o >- c 'S Tl "^ O ^ ~. -» ~ CD __^ •I—' ^7. r? jj dJ ^ ^ ^ iH ^ H z ^ < ^ s y, c ^ ::: V) CT3 ^, .ti ^ f, oj :^ — ^ -^ •?: c ^ ^ > -^ c/T rt ^ c -^^ ^ rt ^ c ti .e -^ , aj^->r\*-'^—'ui'T^ . ^ ^*jc/; a- O -^ _^ •? o •/' u. "" '^ C ■'^ ^ • ■-■ g (^ K-^ < ^ 03 C/5 C c o O a; c 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