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:
IX
1
6
}hx'^
I t'lf
^A
4
\
\ ®
2 ■
Canadian
'^ Transportation.
w
Free Canals and the Fast Line.
m
m
»
DeskroNTO, Ont., Nov. 1 8th, 1898.
To the
Ric.HT Hon. SirWilfkh!) Laurier, c. c. m. (].,
Sir Richard Cartwric.ht, k. c, m. (;.,
Sir Louis H. Daviks, k. c. m.c.,
and
Hon. John Charlton,
Canadian Commissioners at Washini^ton
Dear Su^s :—
I respectfully submit that the discussion of the question of develop-
in<r the traffic of the St. Lawrence route, by abolishmg the tolls on the
W'elland and St. Lawrence Canals, has too often been obscured and
narrowed by those who ignore the main reason for the existence ot
those costlv enterprises. The whole matter is often treated as though it
were a mere (luestion of internal navigation facilities or of an invest-
ment which should render a direct cash return, or as if it were desirable
to prevent American vessel owners or shippers securing the .same
advantages as Canadians. The main consideration, however to be
borne in mind is that the canal system is chiefly valuable as a feeder to
our ocean tr^iffic and that it has to do with the broader and more compre-
hensive problem of building up and encouraging a great ocean carrying
trade, and thus giving Canada the position she ought to occupy as a
commercial nation. In view of this paramount object, all such incidental
considerations, as are often advanced, tend to obscure the mam issue.
1;
f
I
{
I
iMKlaMvlildrtho^rmous^n^^ '^ ^^^^^^'''>' !>^^'' "> --^ - that
^nxN-it North \Vc;tW^^^^^^^^^ ""tput of our
b>' way o he St l^^n^rnr'^'T ''^"^'''' -^^^^ its natural channel
PropaniouVov.^^^^^^ instead of the larger
ln;ohu-,ytc/Kuro,;^ m)iH^^ '^^ I)rcscnt, to find a
object Canada hyss,e/t;i, ^ '^'ted States. To accomphsh this
Cam^dianRah' vw^ /'^- investment in
the onthn- ui,r>n can 1 a n u,m;^ "'^""^ $yoo,cx33.cx3D, u-hile
bilhon <loll.t .. ™ frZ^t^e^ '°^'^' "^ "early one
tion, has i,n\en us i h va s o ,">'"' ^^^ '""'■^' '"^^''■'^'^^' transporta-
ciniremvnN VVe x- vou-lv .' r ''''"^' r''^^>' '" ^'-^^■^'■^^ "^ l^'-^-^^-'nt re-
sc.ntre,,ardto U.r,^-oh bifu ^S'n ^''.'"J^.-^'V' -I-^^''tures w.th
underl^M\Vr nKni\e hein ;,^^. ^^^^ "' poss.b-hty of cash dividends, the
p.-och.je .mci to d^vek;;;^:;; :Su ':Sc''^ '" ^^'^"'-^^^^'^-^ ^^ -"• --
shouya^.^;:;!^^;;^ •:^-J-[i;^>!: -^^;>;^^ •-, -P'-j;-"ts. as the figures
enterprises, is simnlv a I'l kin ,. 1 V 'V'^'*''^' "'^ fansportation
H'cakisthnk N u^the, ai n^n■'^'''^ ^^^ ^^V'^ '^ stronger than its
tolls to the cost o re d 1 'X '"'■';'■' ^^ "l" "^^^"^'^^'^ "'" ^•^'^^^'
■so vast an out■a^• b eak- clou n' U '^Pot uhere the si'stem, built up at
of$265.cxDofronVth Vel ,„r5^^ 'f} ^T'"'"^ '•-■cnue
$339 ooo received from oi t/l ' canli J^-Z""''"" ^'''■'^' -"^'^ '^^ ^he
obstacle whicii stands in the -n-f ■"> '^teni ;-> niaintani the chief
results in the iu>pe of uldou /-..,; ""T.''''^'''"^ ''^"^^' niac^nificent
pe runiLlioui tiansportation system uas established
neve?u 'irr!:; "''n;:!::^^;!,:;.^;;;-- '-- — • l-id and
I'Pon pureh' busines n^;. d 'i ' "'^■^" ^'^^ retention of the tolls
point Lf ^i^.-:nn^i^^:,:;^^^^^ the san.e narrou-
teen feet as a>i l nprc,fitablc cJ h ,>-■ V /rajvrence canals to four-
can he expected If t r ^■^1'^'^^''^^"^ from u-hich no direct dividends
work, not'." ^nanda v ^n unera^v " ^"' '^- " l'''— '-^ -i^h this
fit to the sh.ppin, and iroSuani' • u^ ;:'r';iS.e^" of ^'^^ " '"^^'"
valid reasons which slim.l,! i,r,.,m,. ;t ► , "°' """-'' "">''•'
-America,, vessels a ,df,,' ■ ''"'""'''' t'"-' ''■■^"■ictions as^ainst
canal tolls i./orde, to a " S e ;-,:';i:';,'i-r'Thc°' ''''''""' ''"'^^'^ '->"'
nei,d^o:"Ii;";;;;;;;^:,™;^-nt.^;';d't' ^ 'T"\ ^'•™" "'^■■■- -'«--^f"i
If, notwith..;?ancli4 I ec-reatn' .1 Kvnnt "■''''';■""" "^ '^""''' "-"ffi^-
't . ch,eA, Because o.::"-;!;!; ^l^ll,^;^^ ^^J:':^^^
icvv is that
ut of our
"a! channel
lie lari^er
. to find a
phsh this
-■stnient in
>OD, while
1 early one
ransj)orta-
M'escnt rc-
ires With
-Muls, the
I our own
- fisj^ures
l)ortation
1' than its
of canal
uilt up at
revenue
of the
lie chief
j^niificent
iblishcd.
paid and
the tolls
narrow-
to four-
i\idei"ds
nth this
a bcne-
1 more
ai^ainst
ed from
enry in
I accrue
for the
:cessfiil
traffic.
L^hwa)',
of the-
hereof,
ise and
i
8
lil)erality in offering inducements to shippers. If we have spent much
money in canals, they have spent more. The New York canals have
cost the people of that state over $ioo,goo,ooo, all raised by direct
taxation, not for their own local traffic but to attract the carria<^eof
western [)roducc. The lu-ie canal is free of tolls alike to Canadian and
American producers. There may have been times when an anti-
Canadian feclin<,^ was, in some .sections, prevalent acro.ss the b()rdor, but
it never wa.xetl stroni,' enough to blmd the far si<,dited commercial classes
to their owr. interests as far as transportation matters were concerned,
nor to lead them to overlook the important fact that to bring the ijjreat
l^roductivc areas of our North West tributary to the volume of Airierican
traff'c, thus building up American seaports and employing American
labor,' was more profitable than the exaction of fractional dividends on
a great public work or the maintenance of petty and irritating national
di.scriminations. We have no right to expect to reclaim the traffic they
have captured unless we are prepared to offer those eciual and even
superior advantages which now for many years Canada has been in a
l)Osition to offer.
By thus .securing for their inland navigation system an immense
outflow of traffic in food products from the west to the port of New
\'ork, Manitoba being in this respect a large contributor, the people of
that state have steadily built up and enlarged their export and import
trade. The law of suppl>- and dem.and governs in the matter of shipping
accommodation just as in any other department of commerce. The de-
mand for ocean transportation at New York, Boston and other Atlantic
cities creates the supply. As centres of the cxjiort trade these cities
attracted shipping, and competition soon improved facilities and lower-
ed freights.
The reason wh)- Montreal cannot, under existing conditious,^
compete with them, notwithstanding a slight advantage in point of
distance, is that the channel through which the great volume of produce
for export reaches the seaboard does not flow in her direction. It must
first be diverted to its natural course along the St. Lawrence route before
Montreal can be established on a permanent basis as the rival shipping
centre of the American ports. It has been argued that the export
traffic seeks New X'ork rather than Montreal because rates arc lower
and facilities better at the fornier port. The converse statement is
equally true that rates are lower and facilities better at New York be-
cause the traffic to be accommodated is so much greater.
With the deepening of the St. Lawrence canals to fourteen feet,
with modern lock improvements applied and the removal of national
discrimination and tolls, grain will be carried from the Upper Lakes to
Montreal at a cost of about 2 cts. less per bushel than the average freight
to New York via the Erie Canal. With this advantage, coupled with
the shorter and, with prospective improvements, safer ocean route to
I
Liverpool, the port of Motnreal would soon attract an Incrcasincr „,-()
portion of the exijort },r,-ai,i trade, l^ut to establish the conimercc of
Montreal upon a satisfactory and permanent basis it will be necessary
to secure a.i absolutely safe channel with proper light-houses and buoN-s
nllf'T''.'''; h"'^'^ ''^''V"'"^- ^^'^''^^ tlicse hitrhly needful improve-
ments effected and the port charges assumed by the Government the
prmcipal obsucles which deter Western .shippers from availing them-
selves of the bt^ Lawrence route would disappear. With the augmented
intiuxofgram for shipment, competition amongst steamship Hnes and
transient vessels which become available at all seaports when obtain iblc
cargoes are sure, would soon, without any injustice to existing lines
bnng down the rates to those of American ports.
..r .K^"^"''f '' -^^^'^"iship companies, as soon as they realized that the trade
of the port was on a .sub.stant.al footing, would promptly fit out a class
of vessels specially adapted to the service and of cap icity s, 4cl ml
equipment fully up to the poss bilities of the route. ' '
The likelihood of vessels from the Upper Lakes securing return
cargoes IS a con.s.derable factor in cheapening the freights of weste
produce. The present Welland canal toll of 2S cts. per^'n o c fl 'r'
vents this return traffic. Owing to this heavy impost co: 1 w c W J , d
otherwi.se be sent by rail to Oswego and Charlotte and be shippec Ifr
those points by ve.s.sel to the Upper Lakes is now haule T rea e
distance from the mine by rail to Buffalo, this being don - in mm els
for the purpose of avoiding the Welland canal. VVith the tol emoved
many of these coal shipments would seek the nearest port and tlfe m :
Sior' ' ''^'"" '"'"•'" ^'''^^''' practically as remunerative as if^/roin
One great advantage of the Canadian route would be the <n-eiter
cheapness of elevator storage and transhipment facilities which c-m be
Pros';o^;r^'"^'^' "\"''^^^'', ''' ^^°"^'-^^''^' ^^"^' l^°''^t-^ ^-'tween K g to" \ d
Piescott compared to those at Buffalo and New York Sure Jf
competition with the America, canal .system involves ade mate rlvi"^^^^^^^
for the .stoi-agem large quantities of grain arriving late forshi mcnt
H." f f navigation and which it will be neJe.s.sary to f iwrn"^^ ^
:^1^^n^- exl;:;;:'^" '' " '^" '''''-' '-'': '^^'^ ^^^"•^--'>^ ---'•-
Just in proportion to the volume of grain traffic findin- an all witc-r
route to the At antic will belated cargoes^ which detaine Vy elw h^
moving or held for a rise hi price or Stored at convenien pointsl^^d
ribution for winter .shipment, have to be transferred o't^he raHwa "
for carriage to the open .seaports. ujinciaiiua>.-
We have, therefore, to consider not merely the conditions which
will attract the early shipper who can be .sure of an uni/Ccde 1 wa e
route, but wo must have regard also to the preferences of the forwarder
I
■asiiif; pro
nmcrcc of
* necessary
and buoys
1 1 improvc-
ninicnt the
iliiii;- thcni-
iuj,nnentcd
lines and
obtainihle
^w^ lines,
: the trade
ut a class
speed and
ip return
in western
f coal pre-
ich would
'ped from
a L^reater
any cases
reino\-cd,
the i^rain-
as if from
■ Lij'rcater
:ii can be
jston md
'Uccessfu!
pro\ision
Jincnt at
rward to
:cuniiilat-
all water
delay in
Its of dis-
railwa^-s
ns which
ed water
)rwarder
ft
who m ikes his shipnunts when the fall season is well advanced, and who
has to bear in niinii the ciiance or the certainty of dependence on rail-
w.iNs for the latter sta.i,^c of the inlaiul trij), as wl'II as ui)on ihe storage
facilities at distri'^)Utive points. Here, a.L;ain, with canal tolls and lis-
criminations abio^atetl. we should be able to offc* sui?erior inducements
because elevators and stor.i^'e warehouses wouhl be (|iiickly providcvi at
l\int;>.tn;i I'n'scott, points, at which there is every ficilit)- f )r their
erection and maintenance at rates much lower tlian those current in
iiuffalo.
l'"veii L;reater acconunodations would :.'.lso, and more spcedil\-, need
to be proxided at Montreal, where the advantai^e o\er Muffilo in point
of ample and comparativel)' lo.v'-priced frontai^c ava.lablc for the locitioii
of eiewitors, warehouses and all needful sLoraj^c and tranship])ini;'
aj)pliances, and for railwa\' connections tlicreto, would soon be profita-
bly manifestetl, inasmuch <is e\er\' canal \'csscl which now comes throu^'h
the W'elland canal for Kingston or Prescott will, with the St. LiwreiVce
canals deei)encd to fourteen fjct, li id an o.).,n a-ul ei|'ial!v i<; )"),! channel
to Montreal. But many e\i)jricnccd in the husiu' '•• . e that tr.m-
shipments from lari^e lake \essels into barges at K Prescott for
Montreal, when the i)Ossil)le delay's in unloading >1 and the
desir.ibilit)- of often breaking cargoes into smillei i lonts arc
considered, will pr()\e more ])rofitable than for the . I to pro-
ceed to Montreal without breaking bulk. This transu.^ will pro-
babl\' be done at a cent per buslicl, i.icludingcost of towing t(j Montreal.
The iiU'cstment and risk in the use of transfer barges would be greatlv
below that involved b\' continuing the lake craft to Montreal.
It will not be Icjiig before the need of an enlargement of the W'elland
canal to carr\- the largest vessel that enters the port of Buffalo will be
ai)parent, when the profitableness of the present system of tr.msfer barges
will be even more manifest, These transfer barges and tugs so used
may perhaps be ad\-antageousl\- confined to Canadian construction, there-
by affording emplo\-ment to Canadian labor and a large oj)cning for
Canatlian iron, timber and other products.
Compared with both \ew ^'ork a :d Buffalo the jjort of Montreal
stands in an excellent position in this respect; in the former port the
expenses of car lighterage are vcr\' considerable, and at both New Vork
and Buffalo the great railwaws largel)' control the terminal facilities thus
miteriall}' lessening tlie intlaence upon freight rates which the Erie can;il
wo'jld othi:r\vise exert. Such a serious drawback to cheaper trans[)or-
tation would .scared)' appear jJos^ibL at the St. Lawrence i)oints of
transhipment when the extent of ,-;uital)le river frontage is considered.
'1 his view has [)erliaps not l)een sufficien.tl}- taken into account bj-
tlio.se who are disposetl to regaid this as, in .some measure, a cpiestion of
'railways versus canals ' These two branches of our tran.sportation
.sN'stcm, largelx' on account of clim;itic reasons, are not, in my opinion,
I
aiita^^onistic hut niter illtc^•-licl)c.u^fM.^ ■ .•„ r .
«s more important th.u, the t^ m, -iV '""^n ';" ''^^''"^^ "'^ '^'^ •^'^''^^tiou
ontlcts for the traffic annual v'e^d-u nlenn V ^'"' "'''^^''' ''^^''^^ '-
"Ppn.aehof.vinterorotheruise "»tcrniecl-a.e p„nits by the
1 he pi'ifcctiou af tUi' f'Tii-ii ..•,,.»■
a.ni>lc an/l rcasonablv fou-^ :ccr':^!te'^u; %''"r^ "^"^'^^-'- '>>•
ments. nill. every yeiu-. provide a la'e 7nru v l^'j-^'^'IV^^^''^ ^rra.i^e
from kui.Tston. Prescott or AI.>ntrearto 'uH^^^ ^^J^^f^t to ,e hat.Ied
Ihisousinessourraiiu^ns cvcei)t t - . "'''''*"'; '^.t- J'>li'i or I'ortland.
'"^^ nou' obtain and can^^- I vT,p "^'"l^'l''^'-'^^'^'^' >' ''■•"'>ocl extent, do
canal tolls and the other in prve^^^^^^^^^ unless the abolition of
offer s-ifficient inducement o Wc -c^- : u •^> •^^^''» ''''-c^dy indicated
Canadian route to the seaboard\o ih \vT% '" r'^''. ''^'^'" '^••^'^'- ^'^^^
i here is but little comi,r.M>,V.;i . " ^''^' ^''■'^' ^ 'i^''' ^'^ Ncu' VorL-
the Anierican u^^:^'^^,^^^;^;'«^ through lines of raihvav ami
oncthird theavcraffe CO t of ,""''":'' '^^"' -'"^^'^ '^^''P'^'^ "'^t about
reason. Thc.v should,' i crrforc '< ?li ' ."'f^'^'-' '" ''"'■'"'-' "'<= '™^<^^
nicMsurc „ hicl. alms „ ,c ,!?,,.. ' '''"'"f «' "' ic-ar<l u ill, f,,> ,„. ■,,
toba for export and , ver T i^re P.';'' ''"''•■ '"^ ""■' «'■"" '"'•""> ^'^'-i"
mens from the America ;;,,c>''t &TT'" " . ',l»-' K™" ^'"P
stora.yeai thorl(,seof«-at,.r n,^- V -:i»roiice hi,!,'hway, and if^
take it up .ordJlivxry d ,r n' ?h 'S d"",.?' ':?""-^ "r''='" "'^' ■•••'■'>-'>. can
ap|>ear.s to me very nccc' s A- n \ "" ■^" '^■"^'"' "'^' "•'";i- 'outc'
their friendly co-o ,cr ^:: ' ,l'",^ i"!", ll^'^'^,^- '" "-: '-'ua, ... and
lie accumulated for snch uinte, carriUe. 'I'lnUHy which max-
hvmir u.creased i,nsi„es.s to h ruhv ' T '" ^■'";idw" J-orts, nou7.1
■mporfations. W-^scU in th^ ,„ ' '' ^^' ""R'nentui^r the vohuiie of
for return frei^dUs" f^r |k\ es,^ u'd 'i !!•'>""« "•••"V,'" ^''""^l'- «-ould oo
considerabls- h, order t<>obAi,'" ""','„","''' ^''^^'>'<' '" Inud- rat,-s
amount ol ,oods in,port d f" ' | " ^^^, «f ^?,"-Pc.r freights the
largely increase and the Canad an r , throufjil Canada would
■stimulus thus unparted to t ■ na li ,' ''^' '"'" "■""'^' '"^"'•fi' V 'i'e
country an increasinc. nu .fitv n? 1 l '•;°"""'-''ce and brin<j into the
depend t.pon the raih.'i "Vo %,tl< ? nt^r h 'h "r ''■•t"' "^'d^ ntust
can points. ^ ' ^"^ "^"^'^'i^'t to both Canadian and Amcri
f the sitiiatio:!
'd to r.iihva)'
cli necessarily
inter ports as
loitits l)v the
iiHlicaleil. In-
('lit arr.morj-
to be hail lev I
or Portland,
xl extent, do
nbohtioii of
dy indicated
-in j)rofcr the
' Ncu' \'ork-.
raihvay and
)lcs at about
ence, with a
'J)ed to nrivc,
■ill3't,nv'e the
t is obtain -
madian rail-
^ tlie winter
ith favor a
from Mani
J^rain ship-
ay, and its
ailwayscan
■atcr routi-
iluav.s, and
^'hich ina\-
^()U a I.ir^c
::)rts, would
voliunc of
^ould iook
ciwer rat(.'s
ik'hts the
■id a would
-fit by the
into the
hich must
id Amcri
Return ocean freijdUs to some iA' the Atlantic seaports of the United
Siites average (luite one. bird less than to Montreal, to which the
distance is considerably shorter. Coal from Nova Scotia and New Hruns-
wick would likely meet thai from Pennsylvania anil Ohio considerably
west of Montreal its present limit, and it will be quite within the proba
bilites. for tlv Upper Lake frei^dU steamers to make tncir return trips
from Montre.il and perhaps from Kini^stop. and Prescott upon luel coal
from the ICastern provinces. W aether this be realised or not, the de-
mand for coal of the ICa.stern provinces will be i^reatly imprned by the
increaseil St, Lawrence traffic.
llitherl Canada has not reached a fr action of the benefit in the
form of con.mercia! expansion and '.he developcmcnl of the ocean
carryin«,r tratle which misjht have been enjoyed in view of the shorter
distance of the ocean route from our scajmrts than from those of t'v.
L'nitcd States. luen Montreal has the advantaj,^e of New York '..7
over 200 miles in this respect, while it has the additional advantage in
Its favor of Mie sheltered waterway down the Gulf of St. Lawrence,
thus reducin*; the perioil of exposure to ocean perils. Halifax is 6S6
miles and St. John more than 400 miles nearer Liverpool than is New
\'ork. Our inland water route is already navisjjab.,: to nearly midwaj-
between the .\tlaiitic and the Pacific, making tributary to the St.
Lawrence route all the great wheat and corn producing area of both,
the Cnited States and C/.inada, and many of our advanced thinkers are
already predictirg the bringing of the waters of our great North West, via
our great lakes, 'thus affording through Canada the cheapest possible
outlet lo the sea for the vast products Manitoba is destined to .send out
to the markets of the world.
In long distances by rail and sea, I think it is not too much to calcu-
late freight rates m the proi)ortion of lOD miles of railway carriage to
i.ooo miles by ocean or deep water way ; a.id applying rates current on
iaml and water between the Great Likes and the Atlantic, it is certainly
safe t.) calculate that the cost of freight per 103 miles of railway is quite
as much as the cost to tran;;[)ort 500 to 6oo miles by lake, river and
canal C(jmbined.
The future advantage of the St. L:\urence route and of the port of
MiMitreal over its American competitors during the season of navigation
is becoming manifest, and, compared to Buffalo or Ogdensburg,
during the cold months, Montreal will also i)rove in no respect inferior.
Our geographical position, a.s a factor in our commercial develop-
ment, can hardl)- ful to be apparent to all who consider it. The
following table of distances, which, I believe vc«-y nearly correct, are
\ery suggestive :- -
Chioago to New York, via Buffalo and Kvw V,uu\\, of which
H51 miles are CMiial l.tl") miles
■
* -^
")il.-s .n,. canal " ' " """ '" ,.
Kingston t;;Montn.al, of which l,ut-;i,'n;M.s'or;;u;aIa;; '"•' "^
IWott to^M<,na^^^^^ 11.S ..
New York to LivcipooV. ".'.!'. '-' "
Montical to Livo,j„,ol •^•"^0 "*
IJoston to IJvi'ipoo! -'-'<"<' "
St. .I.,hn to I.iv(.,|)(.oI ^•<'>fX> "
Poitl.uul to Liverpool.... -•<"•" ••
Halilax to I.iv,.ipo,,l ", -•'i^'* "
Alontmal to Halifax, rail....". -'^l-^ -
Montreal to St. .John rail "'" "
Montreal to Boston, rail ' '•"<' "•
Montreal to Portland laii •^'^•"> "
Buffalo to New ^'ork.,,. ^'" •"
();?Jenshnrg to Boston, rail ^t'"' "
OgdenshurK to Portland, rail ^^^"^ -
Ogdenshurg to New ^'ork. rail '"'' "
Oswego to Xcw York, rail .'.'.".'.*.' I^'" "
and SlS."i"r:i. ';;/a™r?„" ;i;''' "«t-b„„ . „.eil ;. t'thc c.„„l
produci„gltatcs o " ,?e «"„ch ^^i^T i^'f ''"'T'''^ '"' ''"-' ""'-■"t
HHtional restriction an,l t 'is IVom t],p u' II Vc" ' ''' '■'■''""^■^'' "''■'"
should .ecu. to t„e si.,, ^f'lz '":2:!!:]:1^^'^,^^:---:^:^'
possess and eujoi- tlie nrefeicncr ov, ,■' '• iT ""■■;'■ actions ;uul at .
i-^n-ence tl,e ^.-eat "fo'^'d ^^.l'^^^ f?.:,^; N.'.'rth'Aln^nr' ""''■''^- ""■
e obstructions ;uul at once
St.
o.ablc as those ctMTcnt via Bu/Talo and the Erie ca.ial to
Montreal as fav
Neu'\ork.theo-,-eat want of a Canadian
to Kini^-ston and
winter seaport, with all t]ie
^'SW^^ss^^tf^'-s^vi^^ss^^i^aats.^siMfetmssiteKfti
in.") "
:i:,\) -
:i;A) ••
IDS •'
121 "
H.liSO ••
2,.S(M) ••
2..S(M) •'
2.(i()() ••
2.7S.-, •.
2.:il2 «•
Tod ••
(SI ••
:«.-) •'
2!)7 ••
Mo ••
im ••
nil) "
M72 '•
.-{21 -
> to the canal
^ of the .i,n-cat
einova! of all
retice canals,
tricted coast
eacKaiitas^'cs
elicf that the
■>ii its waters
oorO^rciciis-
lin would be
Aport would
to Montreal.
nj4- the cold
estern ,L;-rain
)swei;-o and
ot' the L^reat
hie to every
uid at once
''1^4' the St.
iii^-ston and
■ie canal to
\ith all the
facilities for stora^^c and transhipment requisite for the accommodation
of a lar<^c volume of trade, and the railway connections necessary to
ensure the ready movement of freit^ht, has been equally great. The
advantai^^es, already ai)parent from developing the natural capacities of
St John, N. B.. asonc of the main eastern termini of our railway .system,
arc already m^ikin.^ it an important winter port and the centre of an
expanding ocean service.
Great advances ha\e been made in this direction of late. Mr. Hugh
Allan says on this subject : -" The port of St. Joiin is not what it was a
" year a<>o. The dock space has been increased, an elevator built, and
" every facility given for steamship lines. A short time ago there was
"not a steamship line there — now there are four or five. With the
"excellent accommodation the C. P. R, is giving, with sidings and
" terminal facilities for the freight to lie on, St. John will soon be an
" important terminus. To St. John is a long haul but the C. P. H. has
" made excellent arrangements for handling freight. There is little
" local freight with the exce[)tion of deals ; St. John, however, will make
" a good wmter port."
He might have added that St. John is but 26 miles more distant
from the p;i-ain storage elevators at Montreal than New York is from
those of Buffalo. The latter point is at the foot of lake navigation for
the lirie Canal route, while Montreal with its deepened canals will
occupy practically the same position as regards the St, Lawrence system
of inland navigation. It is safe to calculate, with the contemplated
enlargement of the canals completed and the tolls removed, grain from
the West will be delivered at Montreal at very little if any more than
one cent per bushel in excess of the rate to Buffalo, and, as before said,
<it an average of about 2 cents per bushel less than the current rate via the
r>ie canal to New York.
To supplement and complete the policy which is bringing St. John
to the front as a winter port by this abolition of canal tolls and removal
of restrictions against American vessels from the Great Lakes will ensure
the amount of traffic for shipment which is the only sure and firm
foundation upon which an Ocean port can be built up.
Steamship lines can be subsidized, mail contracts may be held
out as inducements to a legular service and other artificial methods
may be adopted to encourage business : these may serve a temporary
purpose, but unless there is a sufficient volume of freight seeking ship-
ment .so as to make the traffic of itself intrinsically and permanently
l)rofitable, it will be impossible to obtain the low rates enjoyed to and
from tho.se American seaports which, through the efforts put forth along
with certain climatic advantages, arc attracting largely the products of
the great West.
The attempt to obtain ocean freight rates as favorable as those
enjoyed by our neighbors, or a speed of passenger steamers approximat-
"•■-p JJ.
10
'••1 one o-re-.f ,rof. 1 ■ , ''^'"'-^ ""^'^ ^'V
'> vcr anno, in'i^t^,?/^' " " °"'^ ^-'^f--nV"H.:;;o.,e^:f 't'h-VroX
.1 ,!„„, .. .,- . ,r'""-s and u-Iiat un„l,l i„. '^^^ "^ " "'^11 arc |)rop„,sc,l
^lr}^lf^ ^^''^^'^rou^.^^Z'" ''--^ '^-t Unc without
L' -successful,
t'l proposcfi
'ic means of
'■oportion of
ic West.
^teni States
exj)resscd
■ sliipnicnts
It route bv
c ChicajT;o
-t ill width
t the nrj-eat
tioii to be
lie import
, it cannot
3r the vast
iway.
^ of traffic
Canadian
m bond "
to many,
i^y the
;ii*oposed
■icveIo]jc
of these
I'crs and
rs, who
nie tliat
iCMltS to
■let ami
ntry at
without
of New
^Up])lc-
- enter-
matino;
'itiiout
-spond
npara-
k^ til at
'^ will
11
11
quickly follow from the increased volume of freight resulting from the
abrogation of our canal restrictions and tolls ; at the same time Cana-
dian farmers and ex[)ortcrs will enjoy freight rates via the St. I.awrence
to correspond with those enjoyed by the farmers and exporters of the
Cnited States who have the use of the Erie Canal without toll or tax,
and of the great ocean "greyhounds" without bonus or bounty.
I suggest a careful consideration of the fact that a yearly bonus of
$500,000 to $750,000 to a fast line will pay the interest on from
$17,000,000 to $25,000,000, the total estimated cost of the Montreal,
Ottawa and Georgian Bay Canal, which constructed woiild bring
Montreal 435 miles nearer Chicago than the port of New York, besides
wliich the main* ad\-antagcs that would result to Canada from the
opening up of tliis additional water highway, such as the many great
w ater powers, the vast deposits of minerals and forests of timber, would
be of itself of far greater value to the country than any extra
^[)eed of ships ])urchasablo at so large an annual expenditure.
This cpiestion of transi)ortation vitally interests the great producing
class, to whom cheap rates mean an increased return on every com-
modity they grow or manufacture for exportation and a direct saving
on all imported articles they consume.
How great the economy in freight rates would be, supposing that a
sufficient amount of exports were .shipped from Montreal or St. John to
induce the competition that has lowered the rates from American ports,
may be gathered from so.ne statistics given by Mr Edward Farrer, in
an article which appeared in the CANADIAN MAGAZINE of September,
1.S98. I le gives the average freight rates on two imported articles of
Canadian production for 1897, from the ports of Boston and Montreal,
resj)ectively, as folknvs : —
C'lu'csc from Moiitical to Liverpool 21s !)(! or $5 I.S per ton
•* Boston " " i:^s :^(l " •]•.]{) >« >■
liuttcr " .Montreal " •• 2().s Ud '• (J.OS " '•
'• Boston •• •• Us (id '• :i.;i~ •' "
Of Cheese there was shipped from Montreal during the year ending
June 30th, 1898, 98,350 tons which paid $2.13 per ton more than it
would have cost by way of Boston, or a total of $209,485. Of butter,
there was shipped from Montreal, during the same }'ear, 5,627 tons,
which i)aid $3.31 per ton more than die Boston rate being a total of
$18,625 so that Canadian producers have on this ([uantity of cheese and
butter alone paid in this one year no less than $228,110 more in ocean
freight than the producers of the United States paid, or would have
paid, on a similar quantity, and an average rail freight to the seaboard
quite as high as the rates paid by American producers. The excess of
ocean freight on these two staples alone is about Zi of the amount re-
ceived in tolls on the Welland and St. Lawrence canals, which, for the
year 1896 amounted to $264,573.
12
A careful calculation of Canadian exports of farm P'-o^^Jl^^^^^^^^o ^rcat
Britain (not includin^r those to the United States) dur.n- the ea. el
nff June 30th, 1897, as shewn by the 1897 Canadian Y^^^^^ '^'^d
reduced to tons, giCes an agL,n-egate of not lc<s than -,036,000 tons.
'\onlvin<r to those exports the saving; in ocean freii^ht of $2.13 per ton
thatMr Edward Farrcr, in his article referred to, asserts existed upon
cheese exported from Boston compared to the aNeraj^e rate current fron
Montreal, there is shown a direct loss to Canadian farmers of oxci
$7300,ooi in ocean freights alone and over $3,500,000 ,f the difference
of $3,37 per ton in freight on butter from the two ports during the
same period is applied.
It is undoubtedl)- safe to conclude that the farmers of Canada during
the last ^fiscal year paid out for ocean freights alone not less than
$2 ciooooo, more than their American c<Mni)etitors would have paid upon
the same products. This is equal to quite 7 l>cr cent on the total value
of all Canadiai: agricultural products exported to Cxrcat Britain during
that fiscal year.
In addition to the above there arc yearl\- exported to Great Britain
produce of the forest, of the mine, of the fisheries and of manufactures
which in value, during the fiscal year ending June 30th, 1897, exccedec
those of the soil by over $10,000,000. The excess of ocean freight paid
on these exports oVer what the current rate averaged from Boston,
amounted undoubtedly to a very large additional sum, probably as much
as that upon farm products calculated upon Mr. I'arrers basis ot com-
parison.
It IS obvious at least that ten times the amount of revenue repre-
sented by the Welland and St. Lawrence canal tolls and the harbor dues
of Montreal would be directly saved to Canadian prodi.cer.s in reduced
freicrhts by their removal, but the whole extent of the benefits secured
to the agricultural interests and the public at large cannot be measured
by the volume of produce exported.
It is a truism of commerce that the price of wheat the world over is
fixed not in the country of production, but in the world's markets, and.
I may safelv add, largely in the British market. The producer receives
the price, as regulated by the world's requirements, less the cost ot shii)-
ment and the profits of the intermediary, which are settled by com-
petition Any saving in transportation benefits the farmer by increasing
the portion of the price which he receives, not mcrel>- on such grain as is
purchased for exportation, but on the whole product. A saving, there-
fore even of a comparatively insignificant amount on the freight, raises
the price at the farms of the entire wheat crop. And, just in proportion
as the demand for all cereals and other products such as cattle, beef, pork,
cheese butter, in fact, of every commodity of which we produce a surplus,
increases in England, will the prices paid to the farmer have a tendencj-
to rc-ulatc themselves by market values abroad, a.ul to increase with
cveiT saviivr effected in the cost of transportation. If our arnun^ conr
munftv but^xalizedthesic^mificanceofthis ^^ and th. effect of
SficUt rates i,) stiffening and increasing prices of every exportable
nroduc independent of depressing local conditions, there would be such
^ iman m^^^^^^^^ outspoken demand for free cana s and even greater
imirvrents to our Ivaterways as means to this end, as no government
could afford to ignore.
The problem has hitherto been dealt with in view merely of exist-
in- or readily attainable conditions, putting aside future po<slblll.c^s,
which have not ar, vet entered upon the phase of the admittedly practical,
f however the expectations entertained and expressed by some of our
l^diZ sta esmen as to the financial practicabi ty ot the winter navi-
Ifatbi^of the St. Lawrence from some point m the Province of Quebec
Jhould prove well founded, or the Ottawa and (xeorg.an Bay Canal bc^
cons^^^^^^^ or the great lakes of Manitoba and adjoming provinces be
loTeitothoseoftir^^ everything that ^^^ been here
Sv-^nced with re-ard to the necessity for free canals as a feeder to oui
ot;^rt;affic certainly acquires additional force and presents a more
urgent claim to consideration.
In view of the time that will be required to make the requisite pro-
visions for the accommodation of the large additional canal traffic it is
hopTd to secure, the importance of immediate action should be appreciat-
ed^ Eevators ^ill neeci to be built, wharfage . facilities provided and
additonal barges for carrying the grain from Kingston and Ptescott to
\loiteal constructed, so that the interval before we can reach and enter
upon the anticipated benefits of the change must in any event be con-
siderable. Meknwhile the enterprising people of the State of New \ ork
are making every effort to retain and increase this traffic by continual
mprnveml^ntsin^ Every season's delay naturally
stXgthais their position, and renders it increasingly difficult to alter
he Uend of the currents of trade. Even a year or two o^ delay may
make a great difference in the results. By acting at once, results ca be
secured which a larger expenditure and more comprehensive changes
might fail to realize if the present opportunity is allowed to pass.
It is claimed by those well xersed in the subject, that the tonnage^
of Canadian Uppei Lake vessels is very inadequate to the movement of
U e p oducts of Manitoba, and that the Canadian route c^-^^^ ^o^ai ly
in the season to prevent the larger proportion of ^)e ce^.a.s of that
fertile district from exportation via Buffalo and New \oik.
It is, on the other hand, claimed by authorities equally as com-
petent that there will be no great difficulty m keeping the ^Vellana
Tanal open and navigable consicierably later r^J^fJ^^'^.Z
canals at Sault Stc Marie, in which case vessels from Lake bupeiioi toi
11
Kingston, Prcscott or Ogdcnsbur*;-, would enjoy as long a season as to
i^uffalo.
The Wclland Canal, with the vast body of water available, can be
kept open later in the season than the Erie Canal, so that under any
and all circumstances the grain of Manitoba, even if not that from Lake
Michigan ports, mi)' be delivered at Kingston, I'rescott and even to
Montreal, quite as late in the season as to Buffalo.
The thirty odd miles of St. Lawrence canals made use of (and it is
the canal part' only of the St. Lawrence which is affected by frost be
fore the last two weeks of the yean with the vastly rn-cater supply of
water available to dela>' the serious formation of ice therein, can
certainly be kept navigable later in the season than the 350 miles of
Erie canal with its comparatively limited supi)ly of water.
If, as is alleged by many vrell versed in the matter, Canadian
tonnage is quite inadequate to move the })roducts of Manitoba from
Fort William and Duluth to Kingston— Prescott during the season of
water navigation, justice to Manitoba would warrant the use of Ameri-
can tonnage for through exportation via the St. Lawrence. It would
not be unreasonable to expect that, with free canals, American bottoms
will transport Manitoba's cereals to Ogdensburg for transhipment to
Montreal, if it be thought best not to open Canadian coasting
privileges to ' American tonnage even for export grain via the St.
Lawrence route
The vast interests in the United States, comprising the great cities
and seaports of .the Atlantic and of the Gulf of Mexico, the interests
centering about Buffalo, the Eric Canal and the Mi.ssissipi)i route and the
great x^merican Trunk lines of railways may all continue opposed to any
exchange with Canada that would improve and make free the St.
Lavvrcnce route at the expense of any of the traffic eiijo\-ed b\' these
great highwa\'>.'
We need not delay in expectation of any profitable exchange of
this character with our neighbors. Our own Canadian interests are
paramount an'd demand quick, prompt and thorough action.
In conclusion, I repeat that by the early adoi)tion of the ])olicy out-
lined, we, by means of lessened freight rates, bring additional prosperity
to j)roduccrs aiKLconsumers alike :
We secure the Fast Line without the payment of a bount>-, for
we ensure a volume of traffic to our great steamship lines which will
encourage to far greater enterprises than those which they ha\c alrcad)'
accomplished.
We settle, forever, that troublesome question of ''transit in bond."
IK
Ik
By utili/inj^ nature's hiL^hway— the St. Lawrence— we attract a traffic
productive of progress and prosperity to our own people.
We afford increased employment to our mechanics and laborers,
and a use for Canadian and British capital in advances upon the products
stored or in transit from the Western States to Europe.
We provide our farmers and manufacturers with additional markets
in Canada for the fruits of the soil, mine, forest ard stj-eam, and greater
industrial development by their conversion m great shipbuildnig yards,
iron working establishments and other mechanical p ants, mto upper
lake crafts, \-iver barges, tugs, elevators, dwelling houses and othcr
crections which al\va\'s accomp^my an active and growing trathc.
We contribute to the prosi)erity of our railways, and make great
distributive centres and seaports of Kingston, Montreal. Halifax and St.
lohn ■ we influence to a commercial activity throughout our Dominion
that comes naturally from increased i)rofits to those great interests
which produce, manufacture and transport at the minimum.
Free canals arc simply a detail, though a most important one, in
the fTcncral and comi)rehensivc course which the administration appears
to have entered upon, in view of drawing closer the bonds of imperial
unity buildin<^ up Britisli institutions on this continent, and developing
our commerce and industries on such lines as will strengthen the Empire,
by perpetuating the union of interests between Canada and the mother
country. ,
To secure this and the other means indicated, a great permanent
food supply route through (.'anadian territory, by which the gram and
oth.n- "i-eat .staples <^f the west, on which increa.smg mu titude.s
of Britain's population depend for subsistence, may be cheaply and
expeditiously forwarded at all seasons to the British market and with-
out haxing to pass over foreign soil, is a fitting and worthy corollary to
the "preferential tariff' and the policy of bringing us mto closer touch
with Imperial commerce and Imperial sentiment.
The "Open door" of a free St. Lawrence -Canada in no manner
surrendering her ownership or control of the canals-wiU also be a
worthy contribution to the farmers and manufacturers of the great tood
producing areas of the United States and Canada, by far the largest
proi)ortion of which is tributary to this great highway. It will create
an additional bond of friendship with our kinsmen to the south ot us,
and its adoption will be an honorable tribute on our part to the com-
mercial wisdom of Great Britain, which, in her "Open door policy com-
mands the highest respect of every progressive people.
The crov-rnment which is broad-minded, patriotic, and farsighted
enough t? carry it into effect, will certainly merit and receive the same
Very respcctfull)',
E. W. RAT! I HUN.
has
lilcc
liich
atcr
I