The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-29
TICKET SCALPING.
The Business Investigated by the
Interstate Commerce Commission

The Business Investigated by the
Interstate Commerce Commission
WASHINGTON, Jan. 2S.-The senate
committee on interstate commerce to-
day heard arguments upon the bill in
trOduced by Senator Cullom to amend
the interstate commerce act so as to
prevent ticket scalping. S. r. McKen-
sic, representing the ticket brokers,
made the opening argument against
the measure. He went into an elaborate
discussion Of the subject, saying that
the bill was not in the interest of COM
merce. He denied that the ticket bro
kerage business was founded upon
fraud. He said that there were 500 men
in one association and $50 in another.
He claimed the brokers were necessary
to the weaker lines, who could not get
any business under traffic agreements.
Senator Cullom asked if the broker
business did not violate the interstate
commerce law in allowing discrimina-
ton against large portion of the pub
lie, and did not assist roads to violate
the law when they SO desired, to which
Mr.. McKensie replied that he thought
his business prevented discrimina ton
Asked as to the fraudulent tickets,
he said that no frauds had been traced
to the door of the association. Mr.. Me-
hensie criticised the report of the in
terState commerce commission which
pronounced the brokerage business a
public evil, and violation of Interstate
commerce law.
Mr.. Carter asked if it was not no.
tOrious that certain roads sold large
amounts of tickets to brokers at much
less than the tariff rates, and which
tickets were sold to the general public.
Mr.. McKensie admitted that this
was true, but not so much as formerly.
In reply to several questions on this
subject he said the business was car
rled on by rebates being paid at the
end of the route. Replying to a ques-
ton by Mr.. Cullom, he said the law
should first be changed by providing
that a commission of the government
should Tx all rates. In answer to ques-
tons, Mr.. McKensie said the agents of
the brokers were in towns of 10000 peo-
pie and upwards. He could not say
what per cent of the total passenger
business was done by brokers, whether
l per cent or not, but estimated that
they would do 20 per cent of the COM
petitive business, most of which was
done by Encouragement with the COM
pan1eS. People travelled under assumed
names, but this was with the consent
of the companies. The brokers did
nothing in local business, but people in
small towns got the benefit of their
OOo4llCFoo ny OOlIlIllS 10 the Clues TO
purchase tickets. Before the ticket
brokers were destroyed something else
must take it's place.
S. B. Caldwell, chairman of the West
ern Passenger association, spoke briefly
in reply to Mr.. McKensie.
Mr.. Caldwell denied most of the state
ments made by Mr.. McKensie The
statement Of the selling in gross Of
mileage and other tickets, he said, was
untrue and misleading, except in GER
tain cases. Some carrier may enter
into an arrangement with the brokers
for it's own benefit, IL violation of law,
by selling tickets at less than it's pub
lished rates, and also of it's business
obligations. AS to the public being
benefited by the brokers, he called
attention to McKensies statement that
railroads sold mileage books at cents
mile to the public, and the brokers
charge about 2.25 cents. He claimed that
Mr.. McKinSie also had made a mislead-
ing statenlent regarding the non-trans-
ferability OF tickets. This provision
was made necessary on account of the
brokers, and 80 per cent of the
brokerage business was done with non
transferable tickets. The brokers' rate
he said, was not always the same, but
where a sufficient number could get
together, they would agree to maintain
rates, the rate being made a little less
than the published tariff rates of the
roads.