The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-08-03

CHICAGO, Aug. 1.-The question Of
ticket scalpers and their relations with
tho railroad companies entered into the
proceedings Of the interstate commerce
commission, which today continued it's
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.
McNlco1l, 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, B. @. 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
ers. Mr. Whitney, when asked to read
the correspondence, said he would be
willing to do so, provided Mr.. McNicoIl
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
on letter, he would be expected to
produce and file the original correspon-
dence. He added that the Canadian
Pacific railway, when it presented its
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
madam Pacific and at the price of
peace mad been obliged to give up diff
terent1als. Speaking of the increased
traf1c brought about by the Klondike
boom. Mr.. Whitney declared that if
the Canadian Pacific had maintained
tarlif rates the American railroad com
pan1es would not have sustained enor-
nous losses. The speaker made
strong point Of the fact that the pas
senger rates throughout the country
had become completely demoraIized a.
the result Of the action Of the Cana.
dian Pacific railway. ~
MT. whitney showed that the Cana
dlan Pacific had forced companies to
reduce passenger fares from New Yorlx
to st. Paul and other Western points
TO l cent mile. He declared that
such a cut meant the loss OF enormous
sums TO the companies. The transpor
tat1on OF passengers to these Western
points cost at least cents a mile. and
Where the country is hilly and sparse
~ populated, the cost was even great
er Replying to a question as tn
whether the Eastern lines had suffere al
through the lowering Of rates. Mr.
whitney said he had been Informed by
railroad officials in New York that the
loss to Eastern lines had been appall-
Ing, despite the fact that the volume
OF business had greatly increased.
During the afternoon the side of the
canadian Pacific was presented by
that road. He said that the greed of
the American lines induced them to
give diHerentials during the rush to
kiondike, the companies hoping thereby
to grab all the traffic for themselves
He insisted that differential rates were
gwen between Chicago and ST. Paul
At one time Mr.. McNicoH asserted that
American rates from Atlantic ocean
points We're being quoted at 81 lower
E than the Canadian rates; and vet the
canadian Pacific had been accused of
denaorai1z1ng the rates. Differentials
fht' speaker said, were concessions
granted to certain railways to euualize
certain disadvantages, and he contend
ed mat a number of railways in the
states were given this ADVANTAGE. Tn
support OF this contention the speaker
filed tariff sheet showing that there
We're sixteen different rates between ST
Paul and New York. Mr.. McNicolI at
tributed the lowering Of rates, not to
the competition Of the Canadian Pa
chic, 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
Until 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 p 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 keep
canada for themselves, and that the In
terests of the Canadian Pacific required
the exclusion from Canada Of all Amer
lean roads. In accordance with. the
views Of the Canadian Pacific, the Ca
madam government refused to grant
charter for the Cattle River railway.