The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-08-03
WAR OF THE RAILROADS
The Interstate Commerce Com
mission Investigates 1t.
RATES ALL DEMORAIIZEO
The American Lines Lay the Blame on
the Canadian Pacific and the Cana
dian Pacific Says It's the Fault
OF Ticket Scalping.

NHAGdBot aug Inc QutSAloH VI
ticket scalpers and their relation to
railroad companies entered into the
proceedings of the interstate commerce
commission. which to-day continued its
investigation into the causes Of the
Canadian Pacific rate war. After F. 1.
Whitney. representating h Great
Northern railway. had concluded his di-
rect statement he was requested by Nc
Nicoll, passenger traffic manager OF
the Canadian Pacific, to read a letter
having reference TO the reduction Of
passenger rates from 81. Paul TO Vic
toria, Il. c..
The letter was written in 1856 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 provided
McNicoll would file the letters he had
received on the subject.
During the discussion that ensued Mr..
McNtcoll declined to give the required
assurance, and eventually the chairman
ruled that whenever Mr.. Whitney based
his statements on a letter he will be
expected to produce and file the orig
inal 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 maintained that the American
lines had been held up by the Canadian
Pacific. and at that price of peace had
been obliged to give up differentials.
Speaking OF the increased traffic
brought about by the Klondike boom,
Nr. Whitney declared that IL the Can
adam Pacific had maintained the tariff
rates the American railroad companies
would not have sustained enormous
losses.
The speaker made a strong point OF
the fact that the passenger rates
throughout the country had been COM
pletely demoralized as a result Of the
action of the Canadian Pacific railway.
Mr.. Whitney showed that the Cana
dian Pacific had forced companies to
reduce passenger fares from New York
to st. Paul and other Western points 10
/ cent a mile. He declared that such a
cut meant the loss Of enormous sums
to the companies. The transportation of
passengers to these Western points cost
at least 2 cents a mile. and where the
country is hilly and sparsely populated,
the cost was even greater.
Replying to a question as to whether
the Eastern lines had suffered through
the lowering of rates. MIR. Whitney said
he had been informed by railroads that
the loss to Eastern roads had been APP
palling despite the fact that the travel
had greatly increased.
During the afternoon the side OF the
Canadian Pacific was presented by Gem
eral Passenger Agent McNicoll Of hat
road. He said that the greed of the
American lines Induced them to give
dinerentials during the rush to the
Klondike, the companies hoping thereby
to grab all the traffic for themselves.
He insisted hat dinerential rates were
given between Chicago and St. Paul At
one time, AIR. McNicoll asserted that the
American rates from Atlantic ocean
points were being quoted at $40 lower
than the Canadian rates, and yet the
Canadian Pacific had been accused of
demoralizing the rates. Differentlals.
the speaker said, were concessions
granted to certain railways 10 equalize
certain disadvantages, and he contend
ed that a number or railways in the
states would be given the advantage.
In support of this contention the speaker
filed n tarif sheet showing that there
were is d~ifrerential rates between ST.
Paul and New York. Mr.. McNicoll at
tributed the lowering of rates, not to
the competition OF the Canadian Pacific.
but TO the operations OF the ticket seal
pers and to the system of issuing mile
age tickets.
At SIS o'clock the chairman ad-
journed further business until to-mor-
row.