The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-08-03
Their Relations With the Railroad
Companies Considered.
THE HEARING AT CHICAGO
INTERSTATE COMMERCE COM
MISSION HOLDS A SESSION.
Attitude of the Canadian Pacific
A Heavy Loss to the Eastern
Lines = Remarkable Showing
Made By the Santa Fe = Latest
Railway News By Wire.

Chicago, Aug. 1.-The question OF
the railroad companies entered into the
proceedings Of the interstate commerce
commission, which today continued its
| investigation into the causes of the
Canadian Pacific rate war. After f. L
Whitney, representing the Great North
ern railway, had concluded his direct
| statement, he was requested by Mr..
| McNicoll, passenger traffic manager of
the Canadian Pacific, to read a letter
| having reference to the reduction of
passenger rates from st. Paul to Vic
| toria, 3. G.
The letter was written in 1886 to the
| Canadian Pacific Railway company.
The first paragraph was to the effect
| that there has been no difficulty with
the ticket-ScalperS on the question of
rates, but continued with the sugges-
ton that rates to Victoria should be
reduced and the matter taken out of
the hands of scalpers. Mr.. Whitney,
when asked to read the correspondence,
said he would be willing to do so, pro-
vided Mr.. McNicoll would file the let
tiers he had received on the subject.
During the discussion that ensued
Mr.. McNicoll declined to give the re-
quired assurance, and eventually the
chairman ruled that whenever Mr.
Whitney based his statements on a let
ter, he will be expected to produce and
iile the original correspondence. He
added that the Canadian Pacific, when
it presented its case, would be expected
TO do the same.
Mr.. Whitney, in the course of his
statement, maintains that the Amer
lean lines had been held up by the Ca
madam Pacific, and at that price Of
peace, had been obliged to give up diff
ferentials.
Speaking of the Increased traffic
brought about by the Klondike boom,
Mr.. Whitney declared that if the Ca
aadian Pacific had maintained the tariff
,ateS, the American railroad companies
would not have sustained enormous
osses.
The speaker made a strong point of
the fact that the passenger rates
throughout the country had been COM
1letely demoraliZed as a result of the
lction of the Canadian Pacific railway.
Mr.. Whitney showed that the Cana
lian Pacific had forced companies to
-educe passenger fares from New York
o st. Paul and other western points
70 l cent mile. He declared that such
! cut meant the loss of enormous sums
% the companies. The transportation
If passengers to these western points
=
he country is hilly and sparsely pop
ulated the cost was even greater.
Replying to a question as to whether
The eastern lines suffered through the
'owering of rates. Mr.. Whitney said he
had been informed by railroad officials
that the loss to eastern roads had been
appalling, despite the fact that the
travel had greatly increased.
During the afternoon, the side of the
Canadian Pacific was presented by
General Passenger Agent McNicoll of
hat road. He said that the greed of
The American lines induced them to
give differentials during the rush to the
Elondike, the companies hoping there
by to grab all the traffic for them
selves.
He insisted that differential rates
were given between Chicago and ST.
Paul. At one time, Mr.. McNicoll as
serted, American rates from Atlantic
ocean points were being quoted at $40
lower than the Canadian rates, and yet
the Canadian Pacific has been accused
of demoralizing the rates. Differentials,
the speaker said were concessions
granted to certain railways to eQualize
certain disadvantages. and he contend
ed that a number of railways in the
states would be given the advantage.
In support of this contention, the
speaker filed a tariff sheet showing
that there were Is differential rates
between St. Paul and New York. Mr.
GicNicoll attributed the lowering of
rates, not to the competition of the Ca
madam Pacific, but TO the operations of !
the ticket-scalpers and to the system of /
issuing mileage tickets. |
At 5:15 o'clock the chairman adjourn |
ed further business until tomorrow.