IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I IIIIM IIIIIM '',36 \25 III u. !M 11 2.0 1.6 V] "el ' ■^,^ /I' / ^ / Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, NY 14380 (716) 872-4503 &p i^- ^ CIHM/ICMH Microfiche Series. CIHM/ICMH Collection de microfiches. Canadian Institute for Historical Microreproductions Institut canadien de microreproductions historiques 1980 Technical and Bibliographic Notes/Notes techniques et bibiiographiques The Institute has attenr^pted to obtain the best original copy available for filming. Features of this copy which may be bibliographically unique, which may alter any of the images in the reproduction, or which may significantly change the usual method of filming, are checked below. L'Institut a microfilm6 le meilleur exemplaire qu'il lui a 6X6 possible de se procurer. 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MEMORANDUM RESPECTINQ THE QUESTION OF DIVERTINQ THE GRAIN TRAFFIC OF MANITOBA AND THE NORTH-WEST THROUQH CANADIAN CHANNELS. The Marine Section acting: on behalf cf the Lake cappying^ intepests, having: called the attention of the Council to the question of pepmitting^ United States vessels to eng^ag^e in the Coasting^ tpade of the g^peat lakes be- tween Canadian ports with a view of divepting: the g^pain of Manitoba and the North-West fop export thpoug^h Canadian Channels. THE COUNCIL SUBMITS THE FOLLOWINC MEMORANDUM AS ITS VIEWS :- 1. The discussion of this question involves reference to : (a) The Coasting laws of Canada and the United States, (6) The routes traversed. (c) Return ca"-;;". (d) Terminal facilities. («) Improvement of the St. Lawrence River and Gulf route. (/) Suggestions as to how best the situation may be relieved and improved. 2. In order that the views of this Hoard may not be misunderstood either by the Government or by kinJ'sd bodies who may appear to differ in their conclusions, the following is set forth. 3. The number and capacity of Canadian bottoms at present engaged in the grain carrying traffic upon the Great Lakes, will be madecpiate to convey the grain of the North-West from Fort William to Georgian Bay or other Canadian ports as soon as the St. Lawrence route is properly developed. Therefore, for this and other reasons, the conveyance of our products for shipment abroad, will necessarily be forced through United States lake vessels and railways, to foreign sea-ports. Weli.and Canal Route. 4. The through water route via Lake Erie and the Welland Canal to elevators on the St. Lawrence has signally failed in encouraguig the building of Canadian ships on the lakes, particularly on account of the long voyage and the poor opportunities afforded for return cargo. Coasting Laws. 5. (a) United States vessels may carry United States produce from Duliith, Chicago or other United States lake ports to Canadian ports on the Georgian Bay, to Kingston or Prescott, such produce being for ex- port via the St. Lawrence route or for local consumption in the Eastern States. Canadian vessels are not permitted to take on cargo at United States ports for Canadian ports, if such cargo is for local con- sumption in the Eastern States. They may participate in this tratfic the same as United States vessels, provided the cargo is for export and is consigned via a Canadian port. (6) The United States coasting laws do not permit Canadian vessels to participate in any traffic whatever (whether for export or for local consumption at Eastern United States points), between two United States ports ; for instance a Canadian vessel cannot take United States cargo from Duluth or Chicago to BufTalo, either for export or for local consumption. (c) Canadian laws regarding United States vessels are the same between two Canadian ports. ((/) The interchange of traffic can be more favorably carried on between Canada and the United States under the bonding system as applied to railways, than is possible on traffic by vessels, owing to the exist- ing coasting laws of both countries. Return Cargo. 6. (a) United States vessels may transfer grain from United States Upper Lake points as far east as Oswego and Ogdensburg, for transshipment to Montreal for export, or to be transferred from Oswego or Ogdensburg by rail to Eastern United States points. Such vessels, as well as those making Kingston or Prescoct their objective point, are able to pick up return cargo for United States points. (/)) Canadian vessels carrying grain from Chicago, Duhith or Fort William, to Kingston or Prescott, for transshipment to Montreal for export, are unable, under the coasting laws of the United States, to take return cargo from United States points consigned to United States points on the Upper Lakes, and as they do not touch at any important shipping centres on the Canadian side, such as Montreal or Toronto, they do not enjoy the advantages of their competitors. r.,--v».-,' Volume of Businuss via St. La\vki;nce Route. 7. Grain of United States origin handled via the St. Lawrence route for export, together with the small amount of Manitoba grain and grain from other Canadian sources, amounted last season to about 40,000,000 bushels. I'ur the season of 1897, 12,928,000 bushels were shipped through I'ort William for export via BulTalo, the bulk of it in United Stales bottoms. The fact that any United States produce finds its way out through the St. Lawrence route proves that the Canadian route, with its present disabilities, must enjoy natural advantages. 8. Eighty per cent, of the grain which now goes out via Montreal reaches that port by water. The railways have no adequate terminal facilities for this class of business, and are therefore not a factor. The water route must be depended upon. Milling Manitoua Wheat 9. An argument which should not be lost sight of in discussing the question of deflecting the grain of Manitoba through this country is the hope that our milling industry may be ileveloped thereby, especially with a view of increasing our exports of dour from Manitoba wheat, for which there is an excellent demand in Great Britain. Welland Canal of more Advantage to the United States. 10. Statistics show that the money expended by the Canadian Government upon the Welland Canal route has been of greater advantage to the United States than this country. Take the year iScj; as an illustration ; the report of the Department of Railways and Canals shows — of east-bound freight Canadian vessels carried 338,519 tons and United States vessels carried 687,939 tons; of west-bound freight Canadian vessels larrifd 7,458 tons and L'nited States vessels carried 210,834 tons; of * 'o'-'i' of 345.977 tons for Canadian vessels, and 898,773 tons for United States vessels. The Conclusions to uu Drawn from the Foregoing are : 11. (n) It is desirable to create without delay, conditions wh( ; by our own products will not be forced into the hands of foreign carrying companies en route to the seaboard. (t) To create conditions if possible, whereby return cargo will be available. {c) If the return cargo is limited, to make the return trip as short as possible. Importance of Canadian Route. 12. With the Canadian route properly equipped, a large share of the United States export traffic should be secured, and it :.) improbable that any laws would be enacted by the United States which would prevent such traflic being carried on. Demand made upon the Government iiv Kindred Ougani/ations. 13. (a) The de;2iand which has been made \ipon '.he Government is, that United States vessels may participate temporarily, in carrying grain for export only, from Fort William to Canadian lake and river ports, it being supposed that this might prevent this grain from being forced into the hands of Unii.'G States Trans- portation Companies, and that our own people might perhaps benefit by handling the traflic after it is transferred from the United States vessels. The question over which there appears to be a diflerence of opinion is, whether this roncession, if granted, would adversely and directly interfere with our shipping interests. The argument is advanced that the profit in handling the extra amount of grain which is now transferred through United States channels would be of great benefit if it were transferred through Canadian channels, and especially through the St. Lawrence route, employing thereby the necessary facilities and labor along the various Canadian routes until it reaches the seaboard within the Dominior.. (6) The Council is of the opinion that the concession should not be granted upon the basis of this argument. (c) In any case a decision shn.iid not be arrived at by endeavoring to balance those points. To grant the concession would, in the ^pinion of the Council, create conditions from which it would be diflicult to recede and would likely lead tc complications, and it would appear to be temporizing, if not trilling, with a matter which should receive tl e earnest attention of the Government with a view of its early solution. (d) It is doubtful if such concession were granted, and if it resulted in transferring into Canadian channels the whole of the product of Manitoba and the North- West, whether the elevator and terminal facilities along the Canadian route are of sufficient capacity to handle the business at the present time. (e) The Council endorses the action of the Marine Section in protesting against any such concession being granted to United States vessels. Ahsence of Enterprise. 14. The absence of enterprise in cultivating the all-Canadian route in the past may be said to be largely owing to the lack of return cargo. Neither of the great cities in the East have furnished return cargo to any very considerable extent to the large Canadian grain carriers, nor in fact have the circumstances so per- mitted that such vessels might touch at either cities during a voyage. NBW PRINCII'I.ES FOR FuTURK ACTION. 15. It is not only necessary for the Government to provide suitable terminal facilities at points on the St. Lawrence where this tralBc may meet ocean vessels, such as harbor improvements anJ elevators, deepen- ing of ship channels, buoying and lighthoiising the route and rendering it suitable in order to attract mariners, but it is equally as necessary to improve the route from the head of the lakes to the point where ocean vessels come. If our own people are to profit by this traffic, some new principles must be adopted for future action, and those methods which experience in the past has proven to be ill adapted to meet the conditions should be discarded. Situation may he Improvkd. iG. (d) It is desirable to create more Canadian bottoms upon the Lakes. liow best can this be accomplished ? As has been pointed out the Canadian vessels presently en(,'aged in the grain traffic get but little return cargo, having the disadvantage as conipareil with their rivals of touching at no large shipping centres. The only opportunity which can be atVorded for whatever return cargo there may be is to Cieate a line of grain vessels to participate in this traflic between the cities of Montreal and Toronto, there being a very considerable volume of traflic westward to Toronto. Vessels and barges of large capacity will be able to operate without transshipment, as soon as the St. Lawrence canals are completed, (i) A line of railway owned and controlled by the Government, built across the portage to Georgian Bay, which is the natural receptacle of the grain of the United States as well as Western Canada, the ports of which are able to accommodate tiie largest vessels which traverse the Upper Lakes, but which cannot get into Lake Ontario, thus making a short and speedy route to Chicago, Duluth and Fort William, with opportunities for return cargo, especially of manufactured products for the Canadian North- West. Hy this project, centres of population, including points as far east as the Maritime Provinces, Quebec, Montreal, Toronto, beccme interested in the common aim to build up our Lake marine and create an inter- provincial marine trade. How TO Increase Canadian Tonnage. The consideration of the whole situation from a National standpoint involves the desire to develop our s^-lp- building industries on the great lakes. The Canadian vessels presently employed in the traffic were chiefly liuilt outside of this country ; some provision should be made, looking to the increased tonnage in the future, for construction within the Dominion. The views of the Montreal Corn Exchange upon this point might be adopted, viz : " The Government should grant the vessels carrying Canadian grain to a Canadian port a small "annual bounty per ton for each thousand miles travelled during the season, and also a liberal bonus for "the building oi lake craft of sufticient carrying capacity to compete with the large United States vtrsels " plying on the upper lakes. It is found that these large vessels can carry grain at a minimum cost, and it "is necessary, if Canada is to retain the carrying trade of its own North-West, that there should be an " ample supply upon the lakes of Canadian vessels of similar capacity." A National Question. iS. The time has ariived when the whole question should be considered on the broadest possible lines, and in regard to which a well-defined national policy should be adopted which would conserve the interests of the Canadian people who are entitled to profit, directly and indirectly, by this traffic. In the consideration of a project by which our transportation facilities may be improved, our own routes developed and our marine interests safeguarded, a route should be selected which would not only be expeditious but which would touch at centres of population having favorable geographical location, in order that such centres may become interested and thereby render aid in attaining the objects sought, and that they may be enabled to supplement the efforts put forth by the Government in the develop- ment of the St. Lawrence route. 17- EDGAR A, WILLS, Sccrcliiry, A. E, KEMP, President. Toronto, June ist, 1899.