Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-12-16
CUT-RATE TICKETS
Senate Interstate Commerce Commit
tee Hearing.
SECRET WISHES OF THE RAILWAYS
Many Said to Be Opposed to the
Pending Bill.
DEALINGS WITH BROKERS

The Senate committee on interstate COM
merce held a meeting today at which a
hearing was had on the ''anti-ticket scalp
ing bin.
George NJ Mckenzie, representing the
ticket brokers, made statement in behalf
of the ticket brokers. He said % per cent
of the business of the brokers was done
with the companies. The large traffic asso-
Citations Were SO organized that they could
boycott the smaller roads ii they did not
join with them. He said these associations
paid their officials salaries from $4,000 to
SiO,GoU
Senator Wolcott asked what that had to
do with the present bill, and expressed the
opinion that it was gratuitous reelection
which should not have been brought into
the discussion.
Senator Elkins asked if % per cent of the
business was done with railroads, was it
true that the railroads did not want the
tiN.
Mr.. Mckenzie said there were many rail-
roads that did not want the bill.
Senator Elkins-"What railroads are op
posing it?''
Mr. McKenzie-'1 do not want to embar-
Iass the roads by naming them. If I did
they would suffer for it,
Senator Gedr-'EOu are to give evidence
before this committee. and when you make
such statement as You have you shouli
answer the more vital question:.
Mr. Mckenzie-'My personal relations
With many of these roads are very close
and L know personally that they are op-
posing this bill, but l cannot name them 1
am aware that my statement cannot go for
anything under these circu.nsi iances'
Senator Chandler-"Do not these small
railroad lines sell to the brokers?'
Mr. Mcke enZie-"Yes."
In answer TO question by Senator
Chandler. the witness said that he men,
toned the subject of salaries because he
wanted to show that they We're drawn
from the profits the roads made out of their
combinations.
Asked how the ticket brokers made their
business pay, MIR. Mckenzie said the profit
came in the way of rebate. which went
to the broker and not the Traveller.
Returning to the relationship of the roads
to the brokers, Mr.. Mckenzie said that the
principal supporters of the pending bill
We're the Vanderbilt lines, the Southern
railroad. the Southern Pacific. the Milwau-
kee and St. Paul and the Atchison, Topeka
and Santa Fe. He said that the Pennsyl,
yaEia company west of Pittsburg had sold
tickets to the brokers late as 1893, but
the fact developed that these tickets were
Line.
Mr.. Daniels, general passenger agent OF
the New York Central, said that line had
had no dealings with the brokers for the
past twenty years.
Referring to the effect of the bill if il
should become a law, Mr. Mckenzie said il
would cost the travelling public, according
10 calculation he had made, an avera &c
of $5.Sl5,Gc0 per year. This calculation
was made upon the basis that the brokers
cell 20 per cent of the tickets used and
that they save their customers an avera sc
of 12ie per cent.
Senator Lindsay asked if this saving was
not at the expense of the people from
whom they buy.
1--WE buy from the railroads." Mr.. Nc
Kenzie replied. He declared that ticket
brokers did not buy stolen or forged tick
cts.
Senator Elkins insisted upon Mr.. McKen-
kies stating where people went to sell
Stolen tickets, and succeeded in elciting the
statement that brokers did not ask ques-
tionS of respectable-looking persons offer
ing tickets for sale.
He added. however, that not per cent
of the tickets purchased were bought from
people who strayed into the ticket brokers'
offices The members expressed great sur
prise al the statement that the tickets
were generally secured from the railroads
themselves, but Mr.. Mckenzie maintained
the truth of the statement, saying that 1t
was especially true with the two ticket
brokers' associations. He contended that
the ticket brokerage business was the
natural result of the railroad pools. and
that it could not exist If there were no
pools.
Mr.. Mckenzie having stated that the
suppress brokerage in various states, Sena-
tor WoIcott asked why the brokers objected
to the passage of a national law.
Because such a law would intimidate the
public Mr.. Mckenzie replied.
Would the railroads be intimidated?''
Senator Elkins asked.
Il doubt that was the reply.
Then / think ought to have a law
against the railroads. said the West Vir-
ginia senator.
Continuing. Mr.. Mckenzie said three of
the railroad lines to ST. Paul were pIac-
tically supported by the scalpers. Two OF
them - he said, would not be able 10 run
through trains without the aid of the
brokers'" He took up the question of divi-
dends upon the capital invested in rail-
roads contending that where so much OF
the railroad stock was watered it was diff
cult to find proper basis of return.
1t is probable that there will be no fur
ther meeting of the committee until after
the holiday recess. when the friends of the
bill say they will refute the statements
made by Mr.. Mckenzie today.