The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-08-03
NEWS OF THE RAILROADS
CANADIAN PACIFIC RATE WAR
INVESTIGATION
f. I. Whitney Tells the Interstate
Commission That the American
Lines Had Been Held I'D by Their
Rival - Said Passenger Rates
Throughout the Country Had Be-
come Demoralized. %

CHICAGO, Aug. 2-The question of
ticket scalpers and their relations with
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. I.
Whitney, representing the Great North
ern railway, had concluded his direct
statement, he was requested by Mr.
McNlcoll, passenger traffic manager Of
the Canadian Pacific, to read a letter
having reference to the reduction of
passenger rates from st. Paul to Vic
tor1a, b. G. The letter was written in
1886 to the Canadian Pacific Railroad
company. The first paragraph was to
the effect that there had been no diff
Guilty with the ticket scalpers on the
subject Of rates. but concluded with
the suggestion that the rates to Vic
tor1a should be reduced and the mat
ter taken out of the hands of the SCALP
efs. Mr. Whitney, when asked to read
the correspondence, said he would be
Willing to do so, provided Mr.. McNicou
would file the letters he had received
On the subject During the discussion
that ensued, Mr.. McNicoll declined to
give the required assurance, and even
tually the chairman ruled that. when.
en- letter, he would be expected to
produce and file the original -correspon-
dence. He added that the Canadian
Pac1hc railway, When it presented it's
case, would be expected to do the
same.
Mr.. Whitney, in the..course of his
statement, maintained that the Ameri-
can lines had been held up by the Ca
naGlan Pacific and at the price of
peace mad been obliged to give UP diff
ferent1als. Speaking of the liner eased
traffic brought about by the Klondike
boom. Mr.. Whitney declared that if
the Canadian Pacific had maintained
tar1ff rates the American railroad COM
panles would not have sustained enor
n'ous losses The speakere made a
strong point of the fact ths6t the mas
sehger rates throughout. the country
nad become completely dernoralized as
the. result of the action of3Gthe Cana
dian Pacific railway. 535
Mr. Whitney showed that the Cana
dian Pacific had forced companies to
reduce passenger fares 4froIn00Ne York
10 81. Paul and other Western points
to cent a mile. He declared that
such a cut meant the loss OF enormous
sums to the companies. The Transport
tatlon OF passengers to; these Western
points cost at least 2 cents a mile ana
where the country is hilfy &hd sparsa-
~ populated, the cost was, even great
e[ Replying to a question as to
whether the Eastern lines had suffered
through the lowering sof crates. Mr.
Whitney said he had been Informed nv
railroad officials in New York that the
!css p Eastern lines had been appall-
ing, despite the fact that the volume
OF business had greatly increased.
During the afternoon the side of the
Sdhaulah racine was presented by
General Passenger Agent McNicoll, of
that road. He said that the greed of
the american lines induced them to
give differentials during the rush TO
klondtke, the companies hoping thereby
to grab all the traffic for themselves
He insisted that differentiaI rates wera
given between Chicago and st. Paul
At one time Mr.. McNicoll asserted that
American rates from Atlantic ocean
points We're being quoted at 81 lower
lfan the Canadian rates; and. yet the
Canadian Pacific had been accused Of
demoralizing the rates. Differentials
tins speaker said, were concessions
granted to certain railways to equalize
certain disadvantages, and he contend
ed that number of railways in the
states were given this ADVANTAGE. In
support Of this contention the speaker.
filed tariff sheet showing that there
were sixteen different rates between ST
tributed the lowering Of rates. not to
the competition Of the Canadian Pa
cif1c, but to the operations Of the ticket
scalpers, and to the system Of issuing
mileage tickets. At 5:15 o'clock the
chairman adjourned further business
u1ftil tomorrow
The letter, which Mr.. Eustis was per-
mitted to offer in evidence yesterday.
against the strenuous protest of the
representatives of the Canadian Pacific
was written by Sir William Van Horne
president of the Canadian Pacific, to
the Toronto Globe, on March-21 last, on
the proposition to obtain a charter for
the Cattle River railway, starting in
this country and running into Canada
In that letter President Van Horne de-
clared that the Canadians should keen
Canada for themselves, and that the in
terests OF the Canadian Pacific required
the exclusion from Canadarof all Amer
lean roads. In accordance with the
views Of the Canadian Pacific, the Ca
madam government refused to grant a
charter for the Cattle River railway.
NEW CAR SHADE.