wheat, Indian corn, peas, barley, rye, oats, flaxseed and buckwheat, upon condition that they are originally shipped for and carried to Montreal or some port east of Montreal for export, and that if trans-shipped at intermediate points such trans-shipment is made within the Dominion of Canada, but allows no such nor any other rebate on said products when shipped to a port of the United States or when carried to Montreal for export if trans-shipped within the United States; and Whereas, The government of the Dominion of Canada, by said system of rebate and otherwise, discriminates against the citizens of the United States in the use of said Welland canal in violation of the provisions of article 27 of the treaty of Washington, concluded May 8, 1871; and

Whereas, Said Welland canal is connected with the navigation of the great lakes, and I am satisfied that the passage through it of cargoes in transit to ports of the United States is made difficult and burdensome by said discriminating system of rebate and otherwise, and is reciprocally unjust and unreasonable; now, therefore, I, Benjamin Harrison, president of the United States of America, by virtue of the power to that end conferred upon me by said act of congress. approved July 26, 1892, do hereby direct that from and after Sept. 1, 1892, until further notice, a toll of 20 cents per ton be levied, collected, and paid on all freight of whatever kind or description passing through the St. Mary's Falls canal in transit to any port of the Dominion of Canada, whether carried in vessels of the United States or of other nations, and to that extent I do hereby suspend from and after said date the right of free passage through said St. Mary's Falls canal of any and all cargoes or portions of cargoes in transit to Canadian ports. In testimony whereof, etc.

BENJAMIN HARRISON.

HISTORY OF THE DIFFICULTY.

May 30, 1890, the steamer J. R. Langdon, of the Ogdensburg Transit company, left Chicago with 36,500 bushels of corn destined for export to foreign countries via Montreal. The grain was to be trans-shipped at Ogdensburg, instead of Kingston, as it had been from time immemorial. On the St. Lawrence river route, by which grain is sent to foreign countries, the transfer from lake vessels to St. Lawrence river barges, which are shallow enough to pass through the St. Lawrence river canals, has been made for many years at Kingston. It was the principal industry of that Canadian town on the north shore of Lake Ontario. The grain was transferred from lake vessels to river barges by means of floating elevators. When there were no barges at hand the lake vessels had to wait until some came back from Montreal. When the barges reached Montreal before the ocean steamers had arrived which were to take the grain across the Atlantic the barges lay around Montreal harbor until the ocean steamers were ready. It was a primitive way of handling grain, but the Canadians, whose conservatism is proverbial, were indisposed to adopt any other. It was in the spring of 1890 that the Ogdensburg Transit company, which had built elevators and followed the modern methods in the grain trade at Ogdensburg, a town farther down on the St. Lawrence river, entered the field as a competitor in the Montreal grain trade. From the first shippers took most kindly to Ogdensburg as the place of transfer. It enabled them to have their boats unloaded quickly, and the grain was held in elevators until the ocean steamer which was to take it from Montreal was about ready to receive it. Lake vessels made the run of sixty miles from Kingston to Ogdensburg without extra charge

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owing to the rapidity with which they could be unloaded at the latter point. St. Lawrence river barges, which were compelled to pass Ogdensburg on their way to Kingston, saved a tow of 120 miles by stopping at Ogdensburg and taking their grain from there. The charges by the new route were made the same as from Kingston. During 1890 450,414 bushels of corn and 25,000 bushels of oats were sent abroad over the St. Lawrence river route which was transferred at Ogdensburg. The Canadian government at the beginning of the trade by Ogdensburg allowed that city the same advantages as it had been giving Kingston. On the grain which was bound for export by the way of Montreal a rebate of 18 cents of the 20 cents per ton canal tolls levied at the Welland canal was allowed and a "let-pass" was issued permitting the grain to go through all the lower Canadian canals to Montreal without further toll.

The initial season of the Ogdensburg route indicated plainly that Kingston would soon lose her grain trade. At this juncture the Canadian elections came on. Sir John Macdonald's home borough was Kingston. He pledged his constituents, if they gave him their votes, so to manipulate canal tolls that Kingston would no longer fear the deadly competition of the American port of Ogdensburg. He kept his promise, and an order in council was issued in the spring of 1891 that canal tolls would no longer be rebated on the grain trans-shipped from lake vessels to river barges unless at a Canadian port. This manifest discrimination against Americans in the use of Canadian canals on the same terms as all other nations has never been explained. It was a high-handed act taken by the Dominion cabinet because it was thought that the American city of Ogdensburg could not help herself. Kingston did not make a move to introduce modern methods in the handling of her grain trade. She relied solely upon the puissance of Sir John Macdonald, whom she had returned to parliament and to power.

The Ogdensburg people did not give up the struggle. Shippers were anxious to send their grain by that route, and with the belief that the American government would come to their aid they kept on in the Montreal grain trade during the spring of 1891. The full Welland canal tolls were paid by the Ogdensburg people and the St. Lawrence river canal tolls were also paid on this grain. It was hoped that the American government would make a stand against the discrimination and that the tolls would be finally rebated. When September came and not a move had been made, the Ogdensburg people gave up the contest. Up to that time in 1891 they had handled from Chicago 321,495 bushels of corn and 206,418 bushels of wheat. This business had been done at a heavy loss.

It was nearly six months after Ogdensburg had retired from the Montreal grain trade that President Harrison finally saw the discrimination of which the Canadians were guilty. Then came his message to congress advising retaliation on Canadian commerce passing through the American canal at Sault Ste. Marie, Mich., and Senator Davis' bill putting retaliatory measures into effect.

The retaliation was a body blow to the Canadians. If they insist upon continuing the order in council which has driven Ogdensburg from the grain trade, the losses of the Canadian marine will be beyond computation. The great bulk of the wheat raised in Manitoba finds its way to Lake Superior ports and is from there shipped by water to the lower lakes. A heavy toll at Sault Ste. Marie will drive all this grain to American ports and it will then be shipped in American vessels in bond through the United States. The Cana

dian Pacific operates a line of passenger steamers between Owen sound and Georgian bay and Port Arthur, its port on Lake Superior. The Grand Trunk has lines of steamers running from Sarnia to Lake Superior. Ninetenths of all the business done by Canadian vessels either originates on Lake Superior or is freight sent to Lake Superior ports. Every

one of the craft engaged in the traffic must pass through the American canal at Sault Ste. Marie. A prohibitory toll, such as the president is empowered to levy, will drive the Canadian vessels out of business altogether. Even a moderate toll, with the keen competition now existing in the carrying trade, will give traffic to American vessels.

While a large number of bills were introduced into the first session of the LIId congress that convened in December, 1891, few bills of much importance were passed. This was, in part, owing to the fact that while the house of representatives was strongly democratic the senate was republican and each prevented the other from passing measures of a radical nature. The following were the most notable measures passed:

TO ENCOURAGE AMERICAN SHIPPING. This bill authorized and directed the secretary of the treasury to grant registers, as vessels of the United States, to such foreign-built steamships now engaged in freight and passenger business and sailing in an established line from a port in the United States, as are of a tonnage of not less than 8,000 tons and capable of a speed of not less than twenty knots per hour, according to the existing method of government test for speed, of which not less than 90 per centum of the shares of the capital of the foreign corporation or association owning the same was owned Jan. 1, 1890, and has continued to be owned until the passage of this act by citizens of the United States, including as such citizens corporations created under the laws of any of the states thereof, upon the American owners of such majority interest obtaining a full and complete transfer and title to such steamships from the foreign corporations owning the same: Provided. That such American owners shall, subsequent to the date of this law, have built, or have contracted to build, in American shipyards, steamships of an aggregate tonnage of not less in amount than that of the steamships so admitted to registry. Each steamship so built or contracted for to be of a tonnage of not less than 7,000 tons.

Sec. 2. That the secretary of the treasury, on being satisfied that such steamships so acquired by American citizens, or by such corporation or corporations as above set forth, are such as come within the provisions of this act, and that the American owners of such steamships, for which an American registry is to be granted under the provisions hereof, have built or contracted to build in American shipyards steamships of an aggregate tonnage as set forth in the first section hereof, shall direct the bills of sale or transfer of the foreignbuilt steamships so acquired to be recorded in the office of the collector of customs of the proper collection district, and cause such steamships to be registered as vessels of the United States by said collector. After which each of such vessels shall be entitled to all the rights and privileges of a vessel of the United States, except that it shall not be employed in the coastwise trade of the United States.

Sec. 3. That no further or other inspection shall be required for the said steamship or steamships than is now required for foreign steamships carrying passengers under the existing laws of the United States, and that a special certificate of inspection may be issued for each steamship registered under this act; and that before issuing the registry to any such steamship as a vessel of the United States the collector of customs of the proper collection district shall cause such

steamships to be measured and described in accordance with the laws of the United States, which measurement and description shall be recited in the certificate of registry to be issued under this act.

Sec. 4. That any steamships so registered under the provisions of this act may be taken and used by the United States as cruisers or transports upon payment to the owners of the fair actual value of the same at the time of the taking, and if there shall be a disagreement as to the fair actual value at the time of taking between the United States and the owners, then

the same shall be determined by two impartial appraisers, one to be appointed by each of the said parties, who, in case of disagreement, shall select a third, the award of any two of the three so chosen to be final and conclusive. [Approved May 10, 1892.]

EXCLUSION OF THE CHINESE. Sec. 1 continues all acts prohibiting Chinese immigration for ten years. Sec. 2 provides for the removal of all Chinese not here lawfully to the country of which they are citizens.

Sec. 3 makes it obligatory on the Chinaman arrested here to establish, by affirmative evidence, his right to be here.

Sec. 4 provides for punishing those not lawfully here by confinement at hard labor for one year. The other sections provide as follows:

Sec. 5. That after the passage of this act on an application to any judge or court of the United States on the first instance for a writ of habeas corpus, by a Chinese person seeking to land in the United States, to whom this privilege has been denied, no bail shall be allowed, and such application shall be heard and determined promptly without unnecessary delay. Sec. 6. And it shall be the duty of all Chinese laborers within the limits of the United States, at the time of the passage of this act, and who are entitled to remain in the United States, to apply to the collector of internal revenue of their respective districts, within one year after the passage of this act, for a certificate of residence, and any Chinese laborer, within the limits of the United States, who shall neglect, fail, or refuse to comply with the provisions of this act, or who, after one year from the passage hereof, shall be found within the jurisdiction of the United States without such certificate of residence, shall be deemed and adjudged to be unlawfully within the United States, and may be arrested by any United States customs official, collector of internal revenue or his deputies, United States marshal or his deputies, and taken before a United States judge, whose duty it shall be to order that he be deported from the United States as hereinbefore provided, unless he shall establish clearly to the satisfaction of said judge, that by reason of accident, sickness or other unavoidable cause, he has been unable to procure his certificate, and to the satisfaction of the court, and by at least one credible white witness, that he was a resident of the United States at the time of the passage of this act; and if upon the hearing it shall appear that he is so entitled to a certificate, it shall be granted upon his paying the cost. Should it appear that said Chinaman