Wichita eagle., 1889-05-08
COMMISSIONS PAID.
Almost Every Western Line Admits the
Practice.

WASHINGTON, May 7.-Western railway
men chatted and gossiped anImatedly this
morning in the rooms of the interstate
commission while awaiting the opening of
the investigation into the matter of the
payment of commissions on the sale of
passenger tickets. Chairman Cooley OPEN
ed the hearing with few remarks upon
the Importance Of the investigation, and
then called upon the railroads in alphabet
ical order to state what, if any, commits
sions they had paid.
Mr.. j. Hannigan, general passenger
agent for the Burlington. Cedar Rapids &
Northern, was the first witness called,
who filed written statement setting
forth the amount of commissions paid by
his company. and stated that they paid
reasonable ticket commissions to author
lied agents but to no others. The Chicago
& Alton and the Chicago, Burlington &
Quincy roads filed written statements Civ
ing information called for. Mr.. G.. H.
Heafford, general passenger agent of the
Chicago, Milwaukee & st. Paul, says his
company pays ticket commissions to
agents of connecting roads and some to
other railroad companies. These payments
ment tween western roads, and no COM
missions wee paid except in pursuance of
the agreement. So far as witness knows,
the agreement was faithfully observed by
all the parties to it. There had been a
previous agreement concerning the rates
Of commission which. after being observed
for awhile, had been broken after the
withdrawal of some of the lines parties to
1t. Violations of the agreement generally
took the form of payment of commissions
in excess Of that agreed upon. He testified
that there was also a certain class of COM
missions paid on account of emigrant eX-
penses. These commissions, however, were
limited to emigrant travel.
Mr.. E. p Wilson, general passenger
ageut of the Chicago and Northwestern,
said his road paid commissions on COM
pettive passenger business. The rate
paid was restricted by the terms of the
agreement of the Western Passenger
Agents association. The agreement had
been faithfully observed by the Chicago
81 Northwestern. Prior to the making
Of this agreement commissions as high as
so or 60 per cent, he said, had been paid.
He was questioned concerning the sale of
tickets by scalpers. Their source OF rev.
enue, he said, was ostensiblv and origin
ally the purchase and sale of unused tick
cts. He had no doubt there We're other
sources of revenue, among which was the
panied hard pressed for business. He did
not think this was a custom with COM
panies. Ii was done at times of disturb
ances.
John Sebastian, general passenger agent
Of the Rock Island and Of the Chicago.
Kansas X Nebraska, frankly admitted
that these roads paid commissions and
said they were strongly in favor of paying
commissions. They believed in it. No
decentralization existed on account of it
and none was anticipated. In response to
question by Chairman Cooley witness
said he didn't think the commissions paid
were large enough to make IL an object for
the passenger agent and the man TO whom
commissions We're paid to agree to divide
up what was made in this way.
General Passenger Agent w. Il. Rusen-
back. of the Chicago, St. Paul X Kansas
City said his company paid COM
missions only in accordance with the
agreement of the Western Passenger
Agents association.
T. y. Clark, general traffic manager of
the Chicago. St Paul, Minneapolis x
Omaha Railway company, said his COM
pany was a member of the Western Pass
enger Agents association and the Trans
Missouri association. He gave the maxi
mum rates paid in commissions and said
lie regarded the effect of the agree
ment between the associations
and demoralized condition of business
previous to the agreement Witness also
said money made by the commission agents
was considerably reduced. owing TO stop
page of payment of commissions By many
of the eastern trunk lines. The money
paid in commissions last year by the COM
pany he represented amounted TO more
than s. 200.
Mr.. James Baker, general passenger
agent OF the Wisconsin Central, said his
company was member of the Western
Passenger Agents association only and
not connected with any other association
so far as passenger business WAS con-
cerned. The commissions paid by the COM
pany were not used TO cut rates.
MIR. w. +. Davis, general passenger
agent of the Chicago X Grand Trunk, said
that company paid number of local
agents compensation, The company has
paid commissions to other companies
agents averaging, from TO Is per cent,
when il was found their competitors were
doing a similar thing The company was
not member of the Western Passenger
Agents association. So far as he knew he
didn't think the roads east of Buffalo
were paying commissions, between Buff
falo and Chicago the roads generally were
not paying commissions but some few
We're
E. s Jeffrey, general manager Of the
Illinois Central, prefsced his testimony by
saying the Illinois Central was peculiarly
situated. II was composed of a northern
and southern system and Az eastern and
western system. The eastern and western
system was "a member of the Western
Passenger Agents association as was also
the northern and southern until il reached
Eandalia, when it entered a section Of
country where competition is encountered
and where one competing line is in favor
paying commissions and the other adverse