Morning journal and courier., 1882-05-06
Tn. Railway Ticket scaIper.

The general public knows absolutelF noth- ing about the scalpers' business. In the first place, people suppose that the brokers make their money by selling tickets which they buy from private individuals. This Is not SO Many of the railroads give commissions to the scalpers to sell tickets for them, and others sell them tickets by the hundred at discount. If all brokers were tricksters the railroads would probably have nothing to do with them. One broker in thIs city buys thousands of dollars worth of tickets at time and gives his note to secure payment for them. The question might be asked, what incentive is there for the railroads to deal with brokers? Upon th1s point hangs ticket brokerage There are railroad lines that enjoy natural advantages often so great that other roads running to the same general centers cannot compete with them. The first are called the 'spopular routes,' and unless the other roads could offer special induce ments they would fare poorly. The less fla vored lines in order to obtain 8 share of the business, sell the brokers tickets at a reason able discount or gi i've them commissions out right The brokers are thus enabled to afford better rates over their lines than over the popular routes, which are sure of certain amount of business. and will sell dom make terms with the scalpers. Travellers, if they can get low rate, care little, as a |. rule, which line they take, and they will in variably go the cheapest way. Startling as 1t may seem, it is neverthe ess true that the | brokers in New York supply more than one l half of the tickets to through passengers for | Chicago and other points in tho West, and 1 it is plain to be seen how great help they | may be to a line that labors under disadvan- tages In railroad parlance the preference" of the scalpers is worth counting. Take New 1 York for instance The Central and Pennsyl- valia roads are popular routes" The l Erie and the Baltimore and Ohio are not so we'll situated, and by enlisting the brokers l they obtain a vast amount of traffic that | would otherwise go to the other roads They | have nothing to lose by the arrangement and everything to gain. Their cars are comfort | able, their roadbeds smooth, and their l trains are fast, but their routes are not so advantageously situated and their facilities are not so great The western roads rely very largely on brokers for business, and they make better terms with them than the | powerful and more independent eastern lines. | Thus it is, perhaps, that the popular routes are opposed to brokers The discount given where the tickets are bought is from 10 to | p per cent. from the regular rates, and the commission where they are sold by the scalpers as agents of the company Is from 10 to 20 per cent. During the piping times of peace there is more money in the business, except where binding "agreements" exist,
 than when wars in progress. In strife
 
 afford to increase dead loss by giving dis count or commissions. Just at present an agreement exists among the great trunk lines, and they have cut of the brokers. The western lines, however, continue to make & reduction to the dealers who are able to cut under the regu- lar rates. While the long fight was in pro gress last summer, many of the railroads in the West issued orders to passengers going East for return tickets to be obtained in New
 York. The scalpers bought large numbers of these and held them until the rise in price. The wisdom of their course has been proved, as they are now doubling the money on the investment. The business is almost entirely in limited tickets good for continuous trips only The railroads will not sell the unlim- ited tickets in quantities and besides, as they cannot be purchased at as good figures, the scalpers do not care to deal in them.
 The business of the leading broker of this city last year amounted to S1 ,OOO, 900 ir round figures. Besides having $25, GOO in
 vested, he buys largely with his paper. Where he uses money directly is in buying heavy stocks of unlimited tickets in wars when they are low and holding them until rates go up All brokers bought heavily last summer when