The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-08-03
PROBING THE RATE VAR.
RRsTATE COMMISSION yyQrIREs
INTO TICKET sCALPTxG.
whafpey. Of the Great Northern.
Charges the Canadian with Caus-
ing Decentralization - Passenger
CHICAGO, Aug. 2.-The auessio.

CHICAGO, Aug. 2-Ths question of
teSet scalpers and Their relation with rail-
rad companies entered into the proceed
ms of the interstate commerce comm.s-
ssos, which today continued irs investiga-
,sau into the causes of Canadian Pacific
,,fe war. After r. ]. Whitney, represent
ing the Great Northern railway, had con-
~luded his direct statement, he was re-
auessed by Mr.. McNicoli, traffic manager
At the Canadian Pacific. 70 read a letter
having reference 10 the reduction OF pas-
senser rates from ST. Paul to Victoria,
&c.
The letter was written in 1856 TO the
Canadian Pacific Railway Company The
srs, paragraph was to the effect that there
- been no difficulty with the ticket scalp
ers on the question OF rates, but continued
With the suggestion that rates TO Victoria
sheuld be reduced and the matter taken out
Of the hands Of scalpers. Mr. Whitney,
when asked to read the correspondence
said ne would be willing to do so provided
McNlcoll would file the letters he had re-
ceiyed on the subject.
During the discussion that ensued Mr..
NcNscoi declined TO give the required as
surance, and eventually the chairman ruled
that whenever Mr. Whitney based his
staiemenfs on seiter he WI be expected
10 produce and file the original correspond
enoe He added that the Canadian Pacific.
when Ii presented It's case would be ex-
nected to dc the same.
Hr N - of n x$u 70
msnt. maintained that the American lines
had been held up by the Canadian Pacific.
and at the price OF peace had been obliged
to give up differentials. Speaking OF the
increased traffic brought about by the
Klondike boom. Mr.. Whitney declared that
n the Canadian Pacific had maintained the
tariff rates the American railroad compan-
les would not have sustained enormous
losses.
The speaker made a strong point of the
fact that the passenger rates throughout
the country had been completely demora.iz-
"a as a result OF the action OF the Canadian
Pacific railway.
Mr. Whitney showed that the Canadian
Pacific had forced companies 10 reduce pas
senger fares from New York to ST. Paul
and other Western points TO the cent
mile rate. Hes declared tina, such a cut
meant the loss Of enormous sums 10 the
companies The transportation OF passen-
gers 10 these Western points cost at least
: cents a mile and when the country liz
billy and sparsely populated the cost was
even greater.
Replying 10 n question az 10 whether the
Eastern lines had suffered through the
lowering OF rates. Mr.. Whitney sad he
had been Informed by railroads that the
loss TO Eastern roads had been appalling.
despite the fact that travel had greatly
Increased
During the afternoon the side Of the
Canadian Pacific was presented by Pas
senger Traffic Manager McNicoll. He said
the greed of the American lines induced
them 10 give differentials during the rush
10 the klondike the companies hoping
thereby 10 grab all the traffic for them
selves He insisted that differential rates
were given between Chicago and St. Paul
At one time. McNicoli asserted American
rates from the Atlantic ocean points were
being quoted at $40 lower than the Cana
dian rates. and yet the Canadian Pacific
had been accused OF demoralizing the rates
DifYsrentiais, the speaker said, were con-
eessons granted To certain railways 10
elualiza certain disadvantages. and he con-
tended that number OF railways I'm the
states would no given the advantage. In
support 81 this contention, the speaker
fled a tarif sheet. showing that there
were sixteen diferential rates between ST
Paul and New York. MIR McN!coli attrib-
utea the lowering OF rates not TO the com
petition of the Canadian Pacific but 70