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RAILWAY MONOPOLY:
cc
LETTERS
AnOKKSSKI) T(i TTIK
Toi?-oisrTo HVCa-ul/'
BY F, BEIZERLEY RCIBERTSGN
AND-
rri
Effects of Monopoly,
Prom the ''Manitoba Sun,"
NOW IIEPUULISHKI) \\\ 1 HK
CONSERVATIVE ANTI-DISALLOV/ANCE ASSOCIATION.
SKE SYNCfP!.? WI-^H.'M.
WlNNH'Kii:
Manithua Sun I^rivtinc asd I'vm.'.swwc. CoMrwy.
1887.
Tl
RAILWAY MONOPOLY:
LETTERS
» llHKKSSKIi 1(1 rilf.
^ "' To:E^ols^TO 3sd:-A.iL,
BY'
J I
B E \Z E R L E Y R D H E RT S D N
\M.
THf-: Effects of Monopoly
From the 'Manitoba Sun,"
.NOW MKiTiihlsHKh \\\ l]]}]
CONSERVATIVE ANTl DISALLOWANCE ASSOCIATION,
3JiESyN0Pr^lS WITHIN.
W INMl,K(,;
Maxituhv MS I'Kivriv,; \m, |'c hush is,, Comi'xs',.
ISS7.
r-.
p-
->>PKKK;fln^(mYTNO^rK.' =-
'\'\\c i()ll()win,i,^ letters were a(l(ire,ss(;(l to The 'I'oroiito Mail
at the vvi\uv<<\ of the (,.()ii.ser\ati\ e Anti-1 )isall()war.cc Associa-
noii of \Vinnii)..^g. '!hey ar- now isstied t)\ that Association in
pamphlet torm, in ih<- earnest hoi)e that their (;ar(;rtil pertisal
ma\ help to remov(^ certain widely-pre-valent misconcei)tions ot
tacts which are helievt'd to operate \'rv injuriously to the mter-
csis ol Canada as a whol<'. \Vritt( i, amid the hurry and pres-
sure of professional work, their .luihor claims for them no
lit(;rar\ merit.
I'articular attention is reciuesied to thr article from The
Manito1)a Sun on the "I'.ffecls ot M< Miopoly."
SYNOPSIS.
So, I. 'lilt (.' I' l>. (olii|»iin> i>^n-i il to
Imilii anl opcnite tlieii' Inn' ii-if/iniif
a iiKiiiojxiiy ill old Maiiitoiia. 'I'lii-i
is iirovi'il :
I'ar. I. liy till W'pnis <>! tin.' (.uiitlaet.
r.ir. .">. \\\ Sii .liiliii Mauiloiialtl'.H (ItKiliii ■
atiuiis (III till llooi of I'ailianicnl.
I'ar. <!. liy liis H'l-.'Ut ilciilaratinii ui
Mi'itiiig.
\'''>.f. 7. Uy til'-' ahseiic'i ol' any appliea-
tioii to the F.ooal Lt;gi:slatui nt'
.Manitoha fi-r \t> assent tlirrito.
I'ar. N. Hy the reriiis <>i the Act oxti inl-
ine tlif lioiin(laii''t* lit .Maiiit"lia.
.\. B.--See iilsd \<i, IJl., iijiciiiii;^
par.
No. II. 1 MsalldW .in''i' is a jiniicy nt nlnrih,-
/iiiii, ii(it fit proj^rt'ss, aiiil. tiicii'l'ii-f,
I'niitraiy to ( oiKservativi; priiiciplt's.
(oinpotitioii vslioiild lie uIIowcmI as a
matter of I>oiiiinion policy in onUi
to develop iiiterproviiu'ial trade,
etc. 0|iiiiion of Winnipc;,' I'oMi'i nf
Trade.
N<|. 111.- Ohjection.s anywered :
'i'liere is no "diKaliouancf" cliiiisc
in the (.'. r, K. I'oiitract.
I'ar. 1. i»isallo\van< <; is //o^ necessary to
k"eep faith either with the C. I', i;.
or with foreign capitii lists.
I'ar. -. \ c-oiiipt'tiiiji line would not
.any oUirail<' to t)u I'nited States.
U would Coster trade Iwtueeti the
Ndrthwest /ind the Kastern l'io\-
iiices*. Ontario and <^ii"'liei' are
(■(|iially inti'i'estcd with the North
west in ohtiiiniiii; it. Sir di.hn
.Maedonald's <lerlaration of pidii'y
on Mav iS. ISSti. list ussed,
\o. I\' The V. I'. I;. Co. ha- no moral
claim to a ihoimpoly in Manitolia.
It is iKJt to the a<lvantai,'(' of Can
iida that .1 moiii pol\ sh mid he
maintained. A iiiilway to the sonth
would not injure the C. 1'. H. The
C. I'. h'. Co. has received
S!S-J.O(H).00(» in casli and l.'I.OdO.OOO
acres of hind S|(l,(Mi()()(Kt more than
tlu'V liaryained for. liesides moii
opoly in Manitoba to the present
time whi( h thev ayieed to do witli
out. S' ' Xd, I. It.s promoters
havi' made colos.sal fortunes; its
other sharehiihlers ai'e semired
from los^,
What claim has tiie company to
get still more ';
No. \'.— .-Vrticle from Tin; Manitoliii Sun, of
■Ian. I "J. ISST, shewing the co.st of
theC.IVH. to the country, ai d that
it has rost the company
(MKi l(>s than nothint'.
8J0,t)0<),-
f.
RAILW A.Y MONOPOLY.
I.
r
fl
To THK Kmicik tiK riu: Maii.;
SiK,--! iiavfi lM'»'n rfi| nested t)y *.liu Con-
HCivativi' Aiiti DiHuliowancf A-'Hociiitioii of
\Viiiiii|R'g t(» vsritc V(Mi tor tlir ])iiii)Ortc of
lemoviii^u most injiirioiiH iiiisi'oiic^'plion of
f(i(.'t, whicli your f>tiiLiwiHc al)le ivitu;lt's on
tlli.-i !Ul>jt^rt of tilt; l.Stll ;iMil 'Jlst ilist. ll.lVt U
teiidciu'V to tliHSciiiiiuite tiixl coiilirni. in
l)otli of tlipno iirtiflcH you asMiiine that, tin-
lU'SHUtion of <li.ial!ov*'a>uf of l(u;al railway
i;liartt'r8 in NJ.inicol)ii would amount to a
breach of ttl)ro>;ation of one of tlie toriuH of
tlifc contract Uttwecn lit r Majt-ty and tlu'
('. P. R. ayndiraU'. Tliis is not the fact,
and 1 am dcsii'od to lies,' you most ear-
neatly to do your utmost to it'tnove tlic
imjneMaion that it in the fact. While .such
a niisi onooption ohtain.s, many honor
alile m«n w ill look \\\>nu every attempt to
stop diyallo\vanr(! aw immuiiil, and will re.so-
lutely stop tiii'ir ears to ever_\ argumiMit
against it. tliouj.;ii ba.-ieil upon liie HtiongeHt
;;round.s of puidir potwy. Tiie fiicts of the
inatttM' are tlu'se, ;
I. By rheii' 'jontriut with ller Hajesty.
ratified l^y tlir Parliament ot <*;uiada, the
('. P. R. (ompauy hound tiuinselNes to t:on-
struct and for a certain time o/h rn'i' ( < »•'// ni
n Iom) the transcontinental line; that i-om-
|)any so houml tlicmMclves for ceitain valu-
alile eon.si<leration.s. and upon certain terms,
which were fully, ami we may lie sure, hav-
ing regard to tlie niagnitmle of the under
taking, very deliherately, <lccided u))on and
set forth in the wiitteii c(uitract, which is
to he found on the t'arly pages of the
Dominion statutes of ISSO-^Sl. It has never
l)ei'n pretended, and 't would he preposter
i)U8 to pretend, tliat that solemn contract
dill not contain all the tei-nis ujion which
tlic Syndicate agreed to |>ertor'n their great
work.
'J. One (^f those terms was what is known
;is the "monopoly clause."
H. That moiu)poly clause did provide
for a monopoly in tlu- North we.st Territories.
4. // '//"(/' lutt /ifdrii/i I'tir II innnaiiul If in
I III I'roi'inril of' Miiiiitiiliii, ami the contract-
ing parties w.-re perfectly svell aware of this
at tiie time the contract was made. It is
\tivy easy toshow this fnnn the words of tiie
contract itself. They aie ; "For "JO years
from tiie date hereof no line of railway shall
he authorized by the Ihnniiiion pn rl'iiiii<< u'
to be construr-tril south of the (". P. II. from
any point at ov near the ('. P. R., except
such line shall run S. W. or W. of S. W..
nor within 1;") miles of latitude 4f(. And in
the e8tabli.shment of any uiic iirorhia' in the
Northwest Tt-rritories provision shall be
made fur . ontiniiiutr sucli piojiibition. etc.
|('lause l,'ionpag<^ l*J ot Donnsiion atatiitei
of'SO-SI.I .\lar.itoba A'as then an ixi'-tlmj
proviu'-e, clothed with all the powers of a
provim-e under tlu; H. N. A. Act to charter
railway lines within its own bonlerH. That
this fa 't was piesent to the ndnds of the
makers of thi' contrai't at the time of making
it, is manifest fiom Mn,' care taken to provule
for the iMse of any i)i n- province. Yet, in
full view of this fact no provision of any
kind was inserted in the contract, nor was
any attempt uuide to establish monopoly in
.Manitoba. In other woitls Manitoba was
delibeiiitoly left free, lint wt; have not lo
rely on the words of the contra(.'t alone.
."). .' ir .lolin .Mai (lonaid and the Hon.
Thomas W hite hoth distinctly declared upon
the lloor of Parliament, when the terms of
that contract were being iliscussi d with a
\iew t'« tiuir ratilication. tint they did not
create a iiiouo))oly ii' Manitob.i, ami did not
■■mil could niit ail'eet the right of the Local
FiCgislature of .Maidtoba to cliarter railways
in any direction, and to any place within
that pioeini'c
(>. Sir .loliu .Ma-'donald today admits in
express terms I lia\t; nvself seen it in
writing over his own sigmiture within the
past three months - that the monopoly clause
ill the <". P. R. contract doe.s iiot affect the
Local Legishiture of .Manitoba.
7. If it had beei; intended to make it cue
ot the terms of tiiat crntiact that inonc()oly
was to he establi.shcd in Manitoba as well as
in the country to the west of it, ap|)licatioii
should and would have been made to the
Local L(!gis!aliire ot M.initoba for its assent
tlui'eto. .No sucii aiiplication was made.
.ilthough the parties wee well aware that
without that .■l^i-^;nt tliat Legislatuie would
not have been bound by the contiact even if
its \ery tcinis !i,ul purported to restrict the
powers of that L<'gi; lature, which they did
no; This f.ict aionc is t^nough to show that
lIi'.j syndicate; deliberalel) consented that
t!ie monopoly slioiild be confined to the
Northwest Territoiies, and should exist no
mi:>rc in Manitoba than in Ontario.
S. l!y Manitobii in this lett(;r so far, I
mean .Manitoba i.-< it was at the time t'.e
joiitract was made in October, ISSO. In
the year ISSI the limits of Manitoba v-ere
largely extended by the addition to that
province of a large tract of tenitory which
up to that time liad been a part of the Noi th
west Territories, and subject to tiie mono-
poly (dause. By the enactments making
that exttnsion, it was provided that "tli(
said increased limits and th< t' rritori/ tfii-rebii
fiilih'il to the province of Manitoba shall be
sniiject to ;iil such pro\ isious .is mnii li'ir:
ftrrii or hIuiH heieuUor l>r eiuiL-Uil ivsjH'rtiin;
th«* Canailutri I'm i lit rail w<i> and U\t- IuimIh
f.M ))»■ ^riint«;tl in ai<i tlu'md. ' I i|iii»te ver-
batim from the I'oiiiiiiioii -ttiitutt' ot iHMl,
44 \"U' . r|iii|>t«r 1 1, ("I'tifiii •_', siiliMci'tioii
(b), uikI tlie Hf.itiltf i.( .\lj»ii\t.jl>a ot IHSI. M
N'ii:., (.Uaiilfr I, soction '_', »nlj'Stn:tiiiii ili).
i. 'I'tiif (.". I'. H. iMiiitimt wuM iiinii«! mi fin-
•Jl»t ot ()ct(»l)or. IMMO.
'.'. It was I'lititieil !)V purliuiiitMit on rln'
I. 'nil of I'clii-iuiiy, I8.SI.
.'i. Tile act exten(iiiig Maiiitulm'ri liuiin-
ilaites uiiove (|iiote(i wax puMsuci at tlit- muuv
x-M.sioii of pailianiiMit uh and ^^itlliM nix
wt'('l»« .iftt!i- tin- (' I'. \i. i-liiiiti'i, vi/., (Ill tlif
•JlHt of Marcii. iShj.
Mert; wan an o|)poiliiriity. if it iiiid liecii
intcndtMl tliat monopoly Hlmidd lie UHtali-
lislit'd in till: old [iidvincc ot Manitolm, t<'
liavt' that matter pliK'i'd licyond disjiutf.
Net tlie i/ovt'iiiiiu-iit uinl |iai iiiiitu'iit of Can
ada delilieratt'ly i^niMtod to Maiiiiiba tlu;
large extenHiun of her Iioiindarie:^ and con-
lined tlie leMtrit-tiou to tlie addeil ten itry,
whieli was already suliject to it.
U. Surely no cumlid man, calmly woigliing
tlie fat-'tfj .-it.'t forth ul)ove the terms of the
I'ontract itself, the declarations of Sir John
Maedonald and Mr. White on the Hoor of
Parliament, the oonttMnporary oireiimstanei's*,
and the Huli.se(|uent dealinga between the
l)omiiiion ( Wivernmeiit and i'arliameiit and
the l-e^'iHlature ol Maniloiia ran aiiive at
the eonrliHion tliat tlie eoiitraet reqiiirt's the
maiiitenaiH'e of a monopidy in the old j)io\
iiiee of Maiiilol)a, or that the diseontiniiunce
of the disallow;uu;e ot eharters for the eon-
striU'tion of railsNiiys within the old |)ro\ ince
of Manitoba >\niild be eitiier a bieaili or an
abrogation of th'' iiionopolv -laiiMe in that
eontract, either in letter or in .spirit.
10. Hut it has been a.isert(!d that, in addi-
tion to the sfdemn written eontract, thei-e
was a secret )>ledm tjiv<!ii by the government
to the .syii'ticate that monopoly should be
maintaineil in .Mnnitobu hv the exercise of
tile (iuverrior tieiiuittlN |Miwei tn veto <>) dih
allow any act of any local leginlatuie. \h
to that aHxeitioh Me say 1 1 Mpeak for u large
mimbei of ( oimi \ ativem that it is utterly
unbelievable by tis. .No intimation of any-
thing of the kind was made to p.irliameiit
v\heii the eontract wa« befoie it for ratilica-
tiitii. 'I'lie deelaratioiiH of the prune miiUKtvi'
at that time were wholly inconsi.steiit w itii it,
unle.N.s the piiiiie minister was ileliberatidy
deceiving by a xcilial (piibble the repreneii.
tafi\eHof the people. The giving of mui h :i
pledge without consulting parliament and
the legislature of Manitoba, and without
obtaining the eoiment of parliament thereto
wouhl have he( n a gloss lueacti ot eonstitii
tioiial law au>l practtiee. \Vi' do not believe
tliul Sir .lohn .Macdomihl wan or is eapablc
either of deeeiving parliament <jr of '.iolating
the eoiiHtitution.
II. W'ltli your jiei iniwsion I will gi\e you
lo uioiroM the arti.les ot our asHo-iatioii,
and diseu.sH tlu^ policy of monopoly upon
dominion not seitional or merely proviii
cial grounds, ami the alleged moral right-
legal light they clearly have none--ot the
( '. I'. H. ( "o. to have it maintained in old
Manitol)a.
In concluHioii of this letter let me aay that
we are not appealing; to tlie ,eople of Onta
rio to oust Sir .lohn .Maedonald from powc^i-.
We recognize with gratitude the .iplendid
.services which he ha.-i rendered to Canada,
our (ountry. in the past, and we Ixdieve him
to be the I'esl fi'iend of the Northwest in
public life to-day. Miit we desire to appeal
to him, to the patriotic and able statesmen
who '■ompose his administiatit'ii. .uid to all
our Coiisei'vativf friends in the hoiiiinioji to
recoii.siiler this monopoly, and for the sake
of our common country, .so far as may b*-,
honorably done, to do away with it by put-
ting a stop to the \etoiin; or disallowance
of (diarters for railways within Old .\lani
toba.
Winnipeg, .Ian. "J'.l. ISST.
■
I
I
11.
Sjii, In my former letter, it wa.'i .shown
that it waa not part of the bargain
ttial the Canadian I'ai-iti.j 1-lailway (,"om-
pany .should ha\i' a monopoly in (dd
Nlanittiba — it was shewn on the contrary
that the Syndicate deliberately left old .Man-
itoba as free from monopoly a.s ( )ntario, and
agreed to build and ojiorate their line with-
out a monopoly in that province. Nevertiie.
le.ss a monopoly ha.s hithertr) been maintain
ed in Manitolia against the will of its legis
latitrc and of its people by the exercise of the
(ioveriior-(ienerar.s power of veto or disal-
aiice. At least one, and J think
several charters, granted by the
Legi.slature of Manitoba for the
construction within the limits of
old .Manitoba of railway lines, whi(d) would
liave been no infringement of the chaiter
privileges of the ('. I", K. ('ompany, have
been disallowed at Ottawa. These lines, if
they had been allowed to be built, would
have gi\ en us railway lompetition for our
trade with Ontario and (.Miebec. On the
bSth of .May la.st .Sir .John .Macdoiuild, in
the House of Commons, declai-ed the p(dicy
of his government ill this matter in tliese
wonls, which 1 (piotc from Hansard: •'!
can only .say, sir, that the policy of the
Covernment " is simply to keep as
much r)f the trade of the western country
for the beiielit of (Jaiiada a.s a whole as wf
can." I '[ion this policy the association for
which I addie.ss you declared the views ot
it.s members in its articles ot association,
which are in these words -.
•'We.theundersigned Conservative electors
of \\ ii)iii|)eg. herel)y form ourselves into an
.^
V
*
UMNOt'iittiiiii to li*' I'ulli'il tlif ( imM-i V iiti\ •
\ lit i-ilimillov. Hill r AMHn.iati'Hi.
"\Ve<let'l«ic ourHi'lvi-H tuiiiuHt MijipuitriH
(t th«' ttiit' |H'iiii:ipU'h of (/oriHiTvntium an
il)!riii('il l)y Sir .totiii A. Miirdoniild, wIdii Ih'
il»'.'4i:liliCi| tilt! ( '()liiciv;ltiv«! |mrt> :i • tilt'
"I'm ty of I'liioii t ml I'romeitH. "
"\Vr m'utufiilly ackiidwli'ilyi- tliu gi»'nt«»fi'
\ iri'H icikKti'iI to f 'iiiiudii in tlu- piiMl )iy ^'ir
loliii A. Miiiili/iiuld .•imi tlif Con.sii siiti\r
piiity.
•\\v UA tliiit tio puMt Mi'ivicf.s of uii.y ^I'l
iiiiiiiHtratioM can fntitle it to tiio mipport of
rlio people ill II policy preseiitly iiiiniioi!,s to
tlif comitiy.
•Tlie policy of iliMiillowaiicf of lin ,ii ihiii'
lets for the coiiHtriictioii of railways witliiii
tli«! liiiiitM of tlie oltl proviiui of Miiiiitoliii
retanU the iiatiiittl jirogress not only of
M.iiiitolia ami the Northvve.it Ten itorie-*,
Itiit of tliu hniiiinoii III lai'ire
'It (liscoiiiiiueM iiiiiiii^ration.
"It prevents the imtuiill 'levelopiiiellt of
truile iietsvet II the N'oithwcMt iiml the other
provinces of the Doininiuii.anil in the Noitli
went it.seif; to wliich iiatiiiiil ilovelujiiiient ol
trade conipetilioii in lailwaj cania^'c Ik
tweeii all the province.-* is essentially nuce-'-
siiry.
"It is. thoiefoie, not a policy of pro;;iiHf,.
Imtn poljry of retardation, injurious alike
lo the Northwest and to the rest of the |)o.
ihiiiion, and, as sii' h, it is iik oiisisteiit with
the priiicij)les of ( oii.servatiMn.
"\\'e fiM;! hoiiiiil, as ('onsei \iiti ves. and wc
iiereliy pledi^^e oiirse.lvcs, not to support any
candidate for election to the House of ('om-
inous i,\ Caiiiidfi v\ ho will not pledge liiiiiself
to oppn.-~c that policy to the e\t,cllt of Votill;.;
\\ a'lt of coididence in any v'"^ '''"""'nt that
hereafter j.erists in it, and otiiei wise l>y every
ineaiis in his power. "
'I'liesi! views have Ikm^ii adopLi'd liy tlic
M hole (!onsHrvative party thror.j^ho ,t Mani
toha, and every (Conservative candidate for
electi(jii in \lanitoha hj^s plcd<,'ed himself
tliercto.
I'pon the .same siiUjuct the Winnipeg'
I'.oard uf Trade has declared its views to-day
in these words :
"Another i^rievaiico which haslieen kept in
agitation l)y your hoard and council is the
disallosvaiice of Manitoha railway ch<irtcrs,
lalculated to bring relief from the hurdon
of railway nionopoly under which the (uov-
ince sutlers. baring the year the
lioaid have used c\ery pos-(il>le etl(»it
to get le.ief from this, and l)y
resolution, appe:iled to the city c(uincil of
\\ innipeg, askiim th.at iepie.sentativ(! hody
to oiler a liltcral honiis to any company, in
dependent of the C. I.'. R. , which wouM fur-
nish a lir;e of railway connecting tlic tit>
with otiicr routes to cnslern markets.
"^'our board is desirous ot imi>i essiiig upon
the people of the older pro\iiice8. that its
etrortsto get ficc from railway monopoly are
not dictated hy any desire to make tiie inai-
kets of this province in the United Stati's.
On the contrary its sole aim is to secure
raihsay competition latweeii Manitoha ui.d
iIm"!' oldvr jii o\ iiiii's, uheie the tif s of con
fedei ttioii and a s^ntem ot national tnritTs,
point to UK our natural iiiark'^ts. Jin liuard
adhere to the theory that tiaiiMportation hi:
tweeii the NortliMeat and the euut. Iiicilitu-
till and chenpeiied.miiHt iiecesHai ily iiicreast*
the trmli' iiiteicniirse lietv\e*n the t\M».
".\nolher point on whi> h the po<.itioii of
\oui hoard is tfoo fieipielitlv misl'epi t.'ielited
on thih i|iit'stion is that it is acciiHed of de-
manding from the Ouininion a coiicesHion
which wiaild entail repiidiatiuii ot a fun
agiteiiunt Itetui i n Caiiadii and the ( '. }'. R.
('iimpaiiy, wluuas the hoard has at no
tin . dcmandi'il I'liytliing lieyoml the right
lit Maiiitolia to cliiirter railways to the
soiitlurn lioiiiidary of the original province,
.1 limit which is iiiclnded hy no agreeimtiit
hetwecn the dominion and tlie ( '. IMi. Coin-
|)any, hut w liich i .^ kept I'losed agaiiiHt rail-
way constriution hy a go\criiinent policy
wliicli has a crushing ellect upon the North-
west, is detviimaital to the iuteiests of this
l)oininioi) .att a v\hol(^ and in.stead of being a
4iiaid to, is ill reality a drag upon the pro-,-
perity ot the ( '. I'. l\. ( 'onijiaiiy.
It i> plain, theictore, that tliis is neither
.1 iiaue.ly [lolitical nor "(irit' agitation, nor a
;iarrow minded sectional or provincial ugita
tioii. It is an earnest apjical from llii^ hearts
of the whole jieoplc of Manitoba to our coin-
patriots in the otiier pri/\iiicesof the l>o.
minion, to guc u.'^ free and untrammelled in-
tcicoiiise with them, for the mutual advan-
tage ot all.
.\s the establishment of the penny post
eii' rmoiisly increased tiie xoluine of corres-
poiilclice by letter, so would the establish-
ment of railway competition, and lower
freight rates. increase the \olume of trade be-
tween the Northwest .Mid the other jiro-
\ ince-t.
<)ntalio would lie p'aced
tion to reap the belletit of lu'i'
to the Noitiiwe.-it, for which Mi
(arthj and others so
tendi d in the House
of .May last.
(.iiieliec \\oulil rea]i the benefit of railwas
I ci'ip'-titioii coupled with the "long haul."
Our cneinieH would be deprived of
tlieir argnineiit .igainst l.he Nortli-
• west as a lield for iimnigrution that it is
under the ban of a monopoly.
The living of the struggling settler here
would lie madi^ less costly and lie would be
. li^'vcd from the e.xictions of the ('. I'. ][.
(o,, whii-ii to day are 'iiiving many almost
to despair.
The w iioh; countiy vvonld lie more
rapidly developed and the hoinininii at
large would reap the beuetit of its develop-
ment in thi' iiurcase of tin- clemaiiil for tin;
manufactures of the east.
Some of the principal oljjections com-
monly made to ..ui views, including
the utterly mistaken idea that our
trade woiihl be diverted to till' markets of
tlie L'nited States. I will endeavor witii your
permission to ileal with later.
\\inni[ic'4. I'eb. I, lss7.
maiifullv
on the
in a posi-
pro]iiiV|uity
haltoii .\lc-
0||.
-ah
Til.
Sii;,— I find ill iVLuiiL imuilieid ol llit Mail
Hiid ot till' \\ eek if'iKtiti'Piis iiy iinplioiitioii
(if U\i sictc. iii"i\t that til' CI', R. c'untract or
rliartrr Ixmiid the. cmiiitry "i' the govt-rif-
iiieut to i.it.at»' iiiid iiiiiuitaiii a railway mo-
iiii))('ly within th« original lioiimhirits of
Miii.itohii, as wel' as in tlic NorthwcKt torii-
toi'JL'e, I oliHt'i've alHo tliut lioth till- Mail
anil till' \V(!jk speak of tlu- "diwailowani'e
clausfM" of tlio contract. Allow nic to ro-
peat oiM V niorf, what was ahiiiidanMy
;»rovi il in till' first of this
s(jrii>' of lotttM's, t!iat the
C r. H. ■^yidicat': hy their contiact agreed
to l)uiM and opcr.'ite the railway irt/ln.iif an\
monopoly in old Manitoha. Aiul there is
nothin'^ in the (?ontract which can p'oiiorly
he called a '■'^I't.-.nlloifiniri elausi;." It was
n(» part of the contrai't that the (iovernor-
< ipir.Mid's povsei' of disalliavanee shoidd lie
exeereised for the niauite.iance of monopoly.
The i">ir/iiiiii<ii/ (>/' ('"iiuil. agreed that it
would not within its jurisdiction authori/e
the eonstruetii n of lines to conipete with
the ( . I*. R. Hut it was no part of
the contrai't that the local legislature of
Manitoha oi- the Rjoal legi.-latiir!" of <)ntario
.-.hoiiM l)e intertered w'tli in the exercise of
its power to uuthoii/.e such lines within
its juiisdietion. On the contiai-y, as
has 1)( en siiow n in my tirst h-tte''. it waN
ell ally part I'i the liargain deliherately made
tiiat .Slanitoliii and ()Mtario wei'e to he left
free in this respt'ct. The pai'liament of Cari-
ada had then exclusive jurisdiction i)ver the
Northwest 'rerritories, and in those terri-
tories the contract semrcs a monopoly hy
hindiiig that Parliament. But it was no
part (it tile bargain tliat the ( iox (•rnor-( uii-
eri.'s power of veto or disallowance shoidd
l>e called into action to interfere with .Mani-
toba in any way whatever, and it i> only of
the fxercise .if that jiower that we coin|ilain.
On heiialf of the .Association for which 1
write I woui I earnestly lieg of your readeis
to read (arefully ni\ two former letters of
this series.
1 proct^eii now. w ith \iiiir per;!
d.-al with all tilt olijections to dur
v- ,i>>e heard :
'. if is •■.aid that foreign capital
\..' .-,t'd on the faith of' the ('. I',
puny haxiiig a monopoly. We
'irr on Mie faith of a, monopoly in the
S'.-rtiiwest Peri'itories, hut not mh tlie
faitl' of I monopoly in .Manitoha oi Ontario.
There is !io evidence whate\er that anvtliiii"'
has been relied u()on by foreign capitalists
e.\cept the contract itself, is it to be sup
posed for a moment that the Syndicate, vvIm
kn<'w perfectly well, as has been shown, tiial
they had i.o bargain for a iminoi olv in Mani-
toba, misrepresented to foreii;n capit;ilist.s
that tliey had sii.'l. a mon-
oi)oly, ;ind l>y siicli talseliO(i(l oh
tair.ed from them their millions'/ Or are
we to sup]iose that Sir .bihii Macdonalils
gove'iiment (as has been hinted I, without
consulting parliament, gave secret ph'dges
lesion, to
iaioi tiiat
has been
H. Com
luiswer :
either at the tune of ol' aitin the making ot
the contract which loa.de t<; the contract an
additional term that had inner ben '•anc-
tioned by parliament, ami was whi'lh' in-
consistent with the .solemn declaratiuns
made hy himself on tin.' Hoor .if parliament
at the time the contract was ratified ;'
I'nless oni' of these two pnestions is to be
answtM'eil aflirinatively, foreign ca|iitali.sts
get all they bargained for w hen tliey get
monopoly aiil-'n/r (but not inside) old Mani-
toba.
If it were possible to answer either of
these (piestions atfiimatively, we should
say that the pecjple of Canada
could not bt^ bound liy anything but their
contract constitutionally entered into with
the consent and authority r)f their repre-
sentatives in parliament. Hut we as Con-
se>'\ ati\es do not l)elie\ e that either of these
ijuestions t;an be answereil atrirnntiveiy. 1
think 1 am correct in saying that no such
contention as that I am now dis(;iissiiijf has
ever bi-en niaiie or heard of on the flom of
))arliainent. It is an cf' cnpfKiKlinii argu
meiit .levised and used only by ii r<\sponsible
defenders of the go\ernmeiit polii'y merely
for party's sak". and rashly adopted Aitli-
out exaiiKiiation li\ others.
•J. Sir.Iohn Macdonald on the ISth of May
last deidared the poliiy of the government
in this matter in these words: ".Now, sir.
with lespect to what the lion, genlh.'mau for
SoiiUi Huron i.Sir li. Cartwiight) has
said as to the pcdicy of the govern-
ment with respect to the disallow-
anc<' of lai'way bills, I I'an only
say. sir, it is .simply to keep as
much of the tiade of the western c(uiutry for
the benefit of Canada as a whole as ve can.
I say, sir, at once, that even with that
jnaisewmthy ol>ject, this I'arliamcnt otoj/ii
iml ti, iiiiih 'Oil/ fi xiriftiiin that n'mi/i/ in-
Jiir< I III \i,r>/i'>riyit its,//;" [Hansard, I.SSd.
jiaye 1 ,iM(). i
Vow, observt ' ii i<ii.txinil :
I. Sir dohii does not pretend that di.sal-
I Aance is necessary to keep faith with the
< .I'.lv. i\).. or with foreign capitalists.
'J Sir John does say that I'ailianient
slinidd lii't make any iestri<lion iiiiii'i(;us to
tlu No'tliwest which pro])osition / ;iifiris
the idea that the (.'. I'. H. Co., or toreign
eapitali.^ts. have .my light to demand it ''
•'{. It I'arli.iineiit should not' inaki' sucii a
restrietion. why should the ( Jovernmeiit do
it through the exercise of the ( ^jvernor-
< ieiieials power of Vv-to or disallowance '/
To proceed with the cmsid
er.'itioii of I he objection to our
(d.um to have ;i competing railway t<; the
southern b(mndary <d nhi Manitoba, \shicli
is implied in Sir .lohn's deehiration abovi
ipioteil. Stated in oilier words, that objee-
tioi. is that . iirh a railway would (■a.rry otl'
the trade of the Northwest tf> the United
.States We .say this is a complete mistakr
1 gave yoii in my second letter tii • (hdibei
atejy expressed o])inion of the Winnipe;;
I'xiard of Trade on this point. T also pointed
oiil ill tliiit Ictl'T tliiit Mirli ii riiilsMiy Would
tiiKiiigli oastciii coiunriidiis gi\c us funipt'
tition in i,iil\v,iy ••uniiigc for mr tiadi' with
tlio cii«terii |)ioviiH:(\s. Such , oiiipetiti'iu
would foster and iiuTfjii-i- tliiiL tiudi-. At
piTM.'Ht cvtii Mouticid. with all the adviu
tii^e of tin; ••loiijLC limd" frui^'lit r.itcs ttM h
th'^ ni'V{\ (if tiiiit i:oiiip<'lili')ii. And iili
\M'stoni Ontario .^iitfcis still mort" from
liiik of it as every
r.ii'rvifaul knifU--. Its iih.st'nct'
(' •'. R. Co. to I'lfKunt ()i;l;nic
\Ufl HM.\' adviuitagf fioiii the short Inn to
Sii Hmiy .luMctioi; o> ( ';illondar. I'IsuIUan
;iuci' thus ;/r<'ittly injures Oniario and (}\iv
\n'i-. That it giiuitly injures Manitolia and
tlif \oi til west Ity retarding its progifiss as
poniteil out ill my seeond letter is siii(l\-
e\ iihiit to everyone.
Anil then; IS no dangi'i of di\eiting our
trade to the I'nited States, for several
reasons : Kiist Ijecause the ties of Con-
federation, to \\hi(li the people of the
Niirthwe^l ai' thoroiighU j. yal, incline us
Oiitui ii
tiialiles till
from reap
to seek our markets in tin- eastirn piov iu' <•>:
siMMMully, i/ecaiu^e husiliess eonneetions an;
all eady well estahlished iietwe-'ii the i,ier-
■hants of the Noi'thwest and the eastern
i.rovinies, and there is no disposition to
lireak .'leiii. Most of our l)ii--iiH"ss houses
here iire braiiclM.'s ot eastern houses.
I'hirdjv. hevMuse the cU'ei't ol competition
\vu dd I'C to tiling down tiie rates of the
( 1'. Iv. t'o;ii|,)>iiy aa low a: ihose oj
po-sil.je eoiKpetiii;' line, and liy that
Oniario is prai.ti.allv as near to us as
ilher iirirket in which we could lniy
I'onniiodities \\c require as cheaply jts wr
could in (Ontario; I'ourtlily. liecaiiac Ity the
oi.eiation of the National I'olicy Ontario ami
• jhu'bec maiiiifactuiers have an enormous
advatilHge ill coin)ietitv>ii for out trade o\ cr
anyone in the United States.
There is hut one more oitjec^tion to deal
^^ith and I will d.-al with that to-morrow.
It i- the alleged moral claim of the (I P. R.
I 'nri|iany to have monopoly maintaiiK-d.
Winnipeg. Fth. 7. 1S,S7.
any
line
anv
the
IV.
■siK, Rofeiiing to the foiiiier letters of
this series I now address yon i«v t'c last
time on this sidijeet.
ii. Th'? only remaining oli|ection to our
•laim to he allowdl to lia\i a iail\\a\- Imilt
to ijiir southern lioundar_\ that 1 have to deal
with is put in this way: "The ('. I'. R. is a
"great national undertaking; it ha.s cost the
"eonntrv millions of nioiu^y; its jiromotors
"took large risks; we must give it a i-hance;
"we must protect it from compitition till it
■'get.s on its legs and can lie nia<le to "J'ay,'
'"even with competition. If we ani>w com-
"petition with it nfiu it will not 'pay,' and
"tin.' comjiany niay he ruined. It has a moral
"right to he piotected from competition for
"these reasons."
As to this objection, we .sa> the C. I'. R. is
no longer a national undertaking.
The C. I'. R. Company has been finally set-
tled with. it has nothing more to pay
till' iioveinnient. and we no longer have
any pecuniary interest in it as a creditor has
an inter(!st in his debtor. Its promoters
made their own bargain, and they haxc
made colossal tortunes c>ut of it. Its otlnr
sliareliohiers embarked in it purely as a
matter of business, on the faith of the con-
tiact as it was. ;ind not for our benetit. lint
for their own Most of them bought its
stock and bonds on terms that make them
jiorfectly secuic a^'ainst toss in any event.
Till' company has alreaily received froui the
'•oiintiy iiiciny millions of dollars inoie than
they were cntitleil to bv tlnur ( ontiaet. It
wa.s expected by them and by us, wiieii we
made the contract, that they would have to
operate the line at a loss for many years,
and they were liberally paid tor agreeing to
do so. We never agreed to give them, and
they, indeed, agreed t-) do without
a monopoly in old Manitob.i. N'l \\ ,
what is the use ot a contract
at re[\. if it is to lie binding upon n.s and not
lunding upon them ': They have alre.idy got
far ino'e than thej' bargained for. \\ hat
I ight have tlicy to get still more / Let them
pcrtorm their contract now. Let them run
(lie line at a loss, if necessary, as they were
paid for doing. .-Vnd if they fail to ilo it, let
the line icveit to the peojile of C'anada, who
have paid for it .■*S;{.(HII).(MH), besides Si;!,-
()(K).0()() acies of land yet held
by the Company, n< in such an event
It vvas.igreed tliat it should revert. And
let the enterprising gentlemen who took the
';reat risks retire from it upon the huge for-
tunes they iia\'e made out of it. As to tin^
other shareiioldcrs. they have a Co\ernmcnt
guarantee, which on the teriiis^^ on which tliey
in\csted will secure the!n from loss, and it
will pay the people of Canada
I letter to pa> what is neces.sary t.»
satisfy tliat guarantee and operate the line
a.^ a gmernment railway in the
interests of the itountrj', than to keep Can
aila longer under the ban of monopoly. Will
anv business man say that this is unfair '.'
Has Canida not dealt \e' y generoiislv with
the C. 1'. R. Co/r
Hut there- is no danger of tlu' roail im cit-
ing to the Covernnient. \t llie making of
the C. I'. I!, contract tisc miilions of dollars
of bonds of^thc company wei'i' deposited
w itii the t Jovei nuieiit to secure the operation
of the road for ten years after it was built.
On the 4tli of .May last the Co\ eminent ask
ed rarliaineiit to release those bonds, and
Parliament did so. Sir .loliii .Mai donald then
>iiiid\ /ill ii-<an/ I SSi>. /I, lii-'i,<.\ "We can all
reineinber that at the time thi.-^ precaution-
ary measure was tuken ot preserving the
security, it was considered very doubtful
after it- completion that it (the C. F'. Ri
would be put in operation after it was
finished. That doubt was felt very gi net-
iilly. ;unl i( w ,i> ■-.li.l <'j)icrinll\ , f\c!i ;iftrr M'iul, and tlivuui.'li tli;i.l \<itli Munt.in.i,
the. coiiiplctimi i>t tlx' loatl tn tlio iKirtli of I 'akuta luiil Miinu sot.-i nuiild bi'ii-
Lako. Svijifiior, tliiit it wDiild never l)c r\iii t-Oi tlie ('. 1'. H. And l)esitlc's tliis
-that tlie tradic noulil not pay the L'l'oase the more rapid develoinnent of the Nortli-
on tile wheels of thi- loeoniotive.s. Tlmi west, conseciuent upon onr liaving railway
/'<( liiiij fills III'/ il'i.-ii iifii II ri il . '" No iiini|ii'tion.u t>idiia('(!riu;totliead\antage('f the
one can rtiipjiose tor a nionient tiiat under ('.!'. H, ( 'o. in tlie increase of traihe incident
tiirr present circunistanees that road will not to an increase of po|)ulatir,n and in the in
)h' run. Such a thiu'j; as the altandoiinient crease in value of its countless acres of land
of t!ie road or any portion of it, and tin- for- in the NortliMest.
foiture of their charter, • such aliandoiunent In c<iiielu.sion, I am desii'od to thank ymi
is out of the (pn stion." Kte., etc. on l>elialf of the I '(Uiserv;iti\ e Aiiti-Disallow-
We accept Sir John Maedonald opiiuon, ami' Association of Winnipey for your ;,'ood.
and believe it to I>c sound. Kuithei ness in yiviny so inucii of your vahi.'ihlc space
than that, we helievi' that a line to the puhlii ation of these letters,
to our soutliern lioundary giving the F. Bk\ kki.kv Hor.KKTsoN,
(".P.K. 'onneetioii with the Xorthein Pacific Winidpec. Kelt., 18S7.
V
The Effect of Monopoly.
Kroni every part of .\lanitol)aand the Xortli and iiaxclaml remaining to the extent of
west coin<;s tii>^ cry of unfair charges over more than K?, 000. 0(H) acres, wliicli, if sold at
the line of t!ie Canadian Tacitie Railway. In anaveragepiiceol Sl."2.> per ;i,cre. would make
an article upon the pro])osed railway com the total gift to the eom|)any upwards of
mission the Kainloops Sentinel of tiie "J.Srd .si 00,0(10,000. The comp-iny claims that the
ult. .suggests : right of way, con.struct.ou and eipiipment of
"That they (tiic railwav comniiswioners; the road cost them less than .'>;S0,0()O,O00.
should make a visit to Kamloops and the and the adminiat' ation of the land giant
country extemling from Donald to i'ort .some s;]()().(H»0; so that the company gets a
McKiily, where the fi'eight and passenger mad which practically costs them nothing,
rates charged hy the C. P. R. are a menace and a bonus of 820. 000, (KM) for building it.
to the present and future welfare of this The land grant \>a< originally proposed as a
(!0uutry." means of recouping the losses it was esti
Anil, alter 'iiiming some instances in sup mateil would occur on tratlic, hut
jjoi't of its stat>'ments, concludes as follows : as no lossi-s lui\ c occurred, it may l>e eon
"Let it be understood that tlie Sentinel is sidered as a l)onus. Now, what do we get
noi; attempting to decry the (.'anadian Pa- for our generosity '; Kxcessive freight ami
eitii- Hallway. The important part it has jnissenger tarill's I So narrow is their a<lmin-
plaj^ed in the development of the country istration that the passenger rates on the
we w illiiiLd}' acknowledge ,ind attest to, but Kimison branch were last spring raised from
we do contend that the rates charged the three cuts per mile to four cents. Kut
people of this Dominion who, it may be someliody benetits.
truthfully said, have iuiilt the r )ad with "A San Francisco despatch of tiie. :{rd
money out of their pockets, are beyond per- inst. . states that another cut ha.s lieen made
adventure extortionate. This fact we feel in the price of tickets from that city to New
assured will be admitted by ;ill aincnnble to Vork. A rate of SOI ()re\ailed fui' a few
reason, and we have no reason to think tiiat (lays when the (.'anailian Pacilic made a bid
the railway eommission are not so."" for the overland travel at .S.")0 to New York
Now, there would be some reason for e\ for a Hrst-class ticket, limited to J-IO days.
( essive charges if tlie ('. 1'. R. Company .Such i^. the henetit conferr-ed on the pnbli'
were losing mnney in o)ierating the line. Ibit through competition. "
they themselves I laim that tiny have not Tliat is to say. we have honused the
doiie .so from the tirst. In bS.S-J-S:? their net ( '. I'. R. to tiic extent of S1(I(»,(K»0.0{)0 to tii
eaniincs isnrplus of earnings over all f)iH-rat- mIiIc them to carry .\meriian travel fi'om San
ing expenses, was S.")(il , 14:?, in ISSS-SC Francisco to New York for .S'J.Sfi more than
.*! .H)1,.S!»0; ill ISS4-S."). .s-J.. '{7 1, ;{.")(): m thcv «barge for taking a Winnipej^ger to
|SS,').S(), .Sl'.S(m.4-J0, while in ISSti-ST thev Montieab'auU s-J!»..-|(t less tlian than' they
anticipate a surplus of .s:i.">(IO.(ViO Up to will charge for taking him to N'ietoria il.C?
the (lose ot constru<;tion stockholders were And this fare includes a tirst-class pas.sage
getting over 10 per cent on their investment. fioni San Franeisce to Victoria, which or-
and this year the company has advertised a linarily losts !*"20. T<i think that this state
dividend amounting to S per cent, on in- of things must endure for the next fifteen
\estment C<msei|uently it is not their pov yeais uin!. r the monopoly clause of the
erty that induces theii higli taritT. Now, ( '. P. R. contract would be intolerable, and
the ciimpany lias received from the Caiui ue doubt if any parti/an policy will induce,
diaii people : the people of Manitoba to .'submit to it, -
Coinpleted road, costing .«;ii,.V2.'). U t Manitoba Sun, .lanuary 12. 1887.
Ca.'^h suhsidv . .S,i.OOO,rHX^.
From ^ale 01 lands (caslii .12.000,0(K)
.Municipal bonuse.i . ■ . SlO.OOf)
Tola!.. .r<S-.'.s!).).4ll