-8-O 
 
 T 
 
 LIBRARY 
 
 OP THK 
 
 UNIVERSITY OF CALIFORNIA. 
 
 Received.... MOV 18 .1B91 ...... 18 
 
 (~/,/? / f'^' 
 
 Accessions No. ^^..^/rrjf^ Shelf No. 
 
EAILWAY KATES: 
 
 ENGLISH AND FOKEIGN. 
 
 BY 
 
 J. GRIEESON, 
 
 / 1 
 
 GENERAL MANAGER OP THE GREAT WESTERN RAILWAY. 
 
 SECOND THOUSAND. 
 
 UlTH iKSITT 
 
 LONDON : 
 EDAVARD STANFORD, 55, CHARING CROSS. 
 
 1886. 
 
PRINTED BY 
 WATERLOW AND SONS LIMITED, LONDON AVALL, LONDON. 
 
 D, LONDON AVALL, 
 ff 
 
PREFACE. 
 
 A PART of the information upon which these observations 
 are founded was obtained for my own guidance, in considering 
 the complaints as to Railway rates and the comparisons 
 between railways in the United Kingdom and abroad. At the 
 suggestion of the representatives of some of the Companies the 
 subject was followed up. t Whesg observations have expanded 
 beyond my original intentions ; but they have been prepared 
 for a limited object ; they do not purport to exhaust the 
 subject. I have endeavoured to treat it fairly, and to pay 
 due regard alike to the interests of the traders, the public, and 
 the railway companies; interests which may, to a hasty 
 observer, occasionally appear conflicting, but which, looked 
 at reasonably, and in the light of full information, are seen 
 to be identical. 
 
 Though solely responsible for the comments and con- 
 clusions, I am indebted for the information upon which they 
 are based to many persons ; among others, to several of the 
 Presidents, General Managers, and others connected with 
 
VI 
 
 the control of the railways in France, Belgium and Holland ; 
 to Sir Bernhard Samuelson, M.P. (who placed at my disposal 
 the voluminous and useful information which he obtained as 
 to the railways in Germany, Belgium and Holland) ; to some 
 of the Gren eral Managers and other Officers of the companies 
 in England, the United States, and Canada ; and to many 
 friends who have been kind enough to supply much informa- 
 tion and give valuable assistance. 
 
 If the information thus collected helps to clear up some 
 misconceptions, to prevent the adoption of theories as to the 
 fixing of rates which would be most injurious to the trade of 
 the country, and to bring about an equitable and satisfactory 
 settlement of questions now so much discussed, my object 
 will have been attained. 
 
 J. GRIERSON. 
 
 PADDINGTON, 
 
 December 1st, 1886. 
 
CONTENTS. 
 
 SECTIONS PAGE 
 
 I. Introduction .. .. .. .. .. .. .. 1 
 
 II. The principle upon which Rates should 1)3 based . . . . 6 
 
 III. Cost of Service 8 
 
 IV. Equal Mileage Rates 13 
 
 V. Differential Rates 21 
 
 VI. Grouping, here and on the Continent . . . . . . . . 39 
 
 VII. Differential Rates on the Continent . . . . . . . . 45 
 
 VIII. The Interest of Consumers in Rates 62 
 
 IX. The real Basis of Rates 68 
 
 X. New Classification 78 
 
 XI. Terminal Charges . . 93 
 
 XII. The Construction of Railways in England and on the Continent 107 
 
 XIII. Working of English and Continental Railways Comparative 
 
 facilities afforded by them . . . . . . . . 119 
 
 XIV. High Rates and their effect on trade 142 
 
 XV. Proposals for fixing mtcs by l\ail\v;ty < 'ommission. Concilia- 
 tion Courts .. .. .. ., .. .. .. 161 
 
 XVI. Railway Amalgamation .. .. .. .. .. ..179 
 
 XVII. Railways and Canals 190 
 
PAGE 
 
 Conclusion . . . . . . . . . . . . . . . . . . 201 
 
 Appendix I. Comparison between English and Foreign Rates . . i 
 
 Appendix II. Comparison of Railway receipts from merchandise 
 
 and mineral traffic. . . . . . . . . ix 
 
 Appendix III. Tariffs and Conditions for the conveyance of 
 
 merchandise Iraffic in Holland . . . . xii 
 
 ., ,, Belgium . . . . xxvii 
 
 ,, ,, Germany .. .. xliv 
 
 ,, ,, France .. .. Iv 
 
 Toll and maximum rate clauses in Railway Acts . . Ixv 
 
SECTION I. 
 
 INTRODUCTION. 
 
 FOR many reasons the failure to pass the Railway and 
 Canal Traffic Bill ought not to be regretted even by those 
 who are dissatisfied with railway companies, but who 
 sincerely desire to benefit the trade of the country. In the 
 discussion of that Bill, and in the debates on the subject 
 of railway rates in recent sessions of Parliament, the 
 existence of many misconceptions was disclosed. As to 
 principles, there was little agreement ; there was, if possible, 
 still less as to details. Charges which had often been 
 explained or refuted were repeated as if they were new, 
 and as if they had never been answered. One of the 
 greatest defects of the discussion was its fragmentary, one- 
 sided character ; it was carried on with far too little 
 regard to the intere&ts of many classes, districts, and ports 
 which would have been seriously injured by some of the 
 changes hastily proposed. Many of those who professed to 
 represent traders ignored the interests of large sections of 
 them ; and what would benefit consumers was, to a remark- 
 able degree, lost sight of. The delay may be useful ; and it 
 may be hoped that any future legislation will be shaped 
 according to the interests of all traders, and not of a part 
 of them only, and of the general public, to whom extended 
 
and not restricted trade, cheapness, and a wide area of 
 supply are desirable. 
 
 The following observations do not attempt to correct or 
 remove all the misconceptions in circulation, or to answer all 
 the charges against English railway companies. Many of 
 such charges are so vague as to elude refutation ; they appear 
 formidable, but only formidable because they are indefinite. 
 Nor is this an attempt to show that, with regard to railway 
 working and rates, all is done for the best by the companies. 
 Considering the fact that the rates are numbered by millions, 
 and the vaiiety of interests which they affect considering, 
 too, the fact that this is an island with numerous ports, com- 
 panies and trading interests, all competing with each other 
 it would be amazing if there were no anomalies and defects. 
 The present purpose is only to show that of the charges 
 brought against railway companies some are erroneous ; 
 that some are exaggerated ; that many are of a contradictory 
 character ; that some are complaints of evils which railway 
 companies did not create and cannot alter; and that other 
 supposed grievances could not be removed without injury to 
 the community. It has recently been stated in Parliament 
 that " this is the first time that traders have hud an 
 opportunity of going before a tribunal and putting their 
 views fairly before it." 1 This betrays forgetful ness of 
 the fact that, as lately as 1881 and 1882, during two 
 sessions, a Select Committee heard the complaints of all 
 persons who believed that they had grievances to 
 relate. The statement, too, inadvertently ignores the fact 
 that, when live companies submitted in the session of 
 
 ( l ) Mr. Forwood. Debate on second reading of Ktiihvay and Canal 
 Traffic Bill, Gth May, 1886. Hansard, vol. cccv. i iti. 
 
3 
 
 1885 Bills to Parliament, and thus offered a further oppor- 
 tunity of inquiry, Chambers of Commerce and other persons 
 professing to represent trades refused to avail themselves 
 of the opportunity, and prevented the investigation taking 
 place. English railway companies need not dread a thorough 
 examination of their working, or a comparison with any 
 foreign system. They need be apprehensive only of a vague 
 uninstructed notion that " something must be done ; " of 
 legislation adopted, if not in a panic, in a time of greatly 
 depressed trade ; of crude one-sided proposals made on behalf 
 of a part of the interests concerned by persons who have 
 not sufficiently examined and considered all the consequences 
 of their schemes ; and of the application of a standard of 
 perfection supposed to exist somewhere, but in truth nowhere 
 realized. 
 
 The continued depression of trade, the necessary efforts 
 to reduce the cost of production, jealousy of foreign com- 
 petition, misnpprehensions fostered by agitation, as to the 
 commercial effects of " special/' " import," and "transit " 
 rates, have given birth to vague, ill-considered proposals, 
 some of which would be certain to injure the cause which 
 their authors have most at heart. 
 
 Ono point is at the outset very clear the inconsistent 
 natureof many of the charges made against railway companies. 
 Within the last twenty years such complaints have been the 
 subject of three elaborate inquiries before Royal Commissions 
 or Parliamentary Committees 1 . Before all of them were 
 submitted proposals completely at variance with each other. 
 
 ( J ) See Report of Royal Commission, 1867 ; Report of Joint Select 
 Committee of Houso of Lords and Commons, 1872; Report of Select 
 Committee, 1881-2. 
 
"With equal emphasis railways are now asked to satisfy 
 contradictory demands ; and to a large extent the multifarious 
 charges made against them answer or cancel each other. 
 Many traders demand the very opposite of what is a 
 necessity to others, and of what consumers, naturally anxious 
 to enlarge the field of supply, earnestly desire. Some of 
 the former complain, for example, in language which seems 
 borrowed from medieval times, that their " geographical " or 
 "natural advantages" are diminished. Other traders blame 
 railway companies for not sufficiently effacing natural dis- 
 advantages, and not offering inducements for the develop- 
 ment of trade in new districts. Exporters want favourable 
 terms; importers do the same; and another class protests 
 against concessions either in favour of exports or imports. 
 It is a remarkable fact that many of the proposals which 
 were most in fashion a few years ago have now been aban- 
 doned, and that in Parliament and the Press we now hear 
 chiefly of schemes totally different from those which were 
 formerly supported. Equal mileage rates were once strongly 
 advocated ; and, probably owing to the great success of the 
 Penny Post and to the experiences of the advantages of 
 one uniform rate for all distances, there was a belief in some 
 minds that, with certain modifications, the same principle 
 might be applied to rates for goods. Ingenious schemes were 
 devised for equalizing within certain zones or areas, rates 
 irrespective of distance and other circumstances. There is a 
 fashion in so-called Bail way Reform. Such schemes are now 
 little heard of; they have given place to proposals essentially 
 different, which may in their turn make way for others. 
 
 In all the recent discussions of rates much was heard of 
 those who were discontented, but very little of those who, 
 
being satisfied, were silent. Most errors in Political Economy, 
 it has been said, come from not taking into account what is 
 not seen. Especially true is this of the question of railway 
 rates, not the least important problem of Political Economy. 
 Of the trades and interests which are dissatisfied with 
 existing arrangements, people hear and see much. Unfor- 
 tunately they appear to take little heed of other interests, 
 equally important, which are contented, or comparatively 
 so, which do not send deputations to the Board of Trade, and 
 which changes such as have been from time to time proposed 
 would injure or even go fur to ruin. 
 
SECTION II. 
 
 THE PRINCIPLE UPON WHICH KATES SHOULD BE BASED. 
 
 THE first condition of any useful discussion of railway 
 rates is that all interests shall be considered the interests 
 of all traders, and of all consumers, as well as of railway 
 companies. To every proposal this test the golden rule 
 should be applied. How would any projected change affect 
 all concerned ? Every one cannot get such rates as he 
 would desire ; the utmost which is practicable is to fix them 
 in the manner, on the whole, most suitable to the requirements 
 of the community as a whole ; and this will be found in the 
 long run to coincide with the interests of the companies. In 
 consequence of not applying this test, and owing to the fact 
 that persons may freely put forward proposals without 
 explaining what would be the consequences of a general appli- 
 cation of their principle, little progress is made in the 
 discussion. A second condition of any profitable con- 
 sideration of the subject is obvious. To argue about the 
 propriety of this or that rate, the question whether this 
 town or that port is badly treated, or this or that industry 
 is made to pay too much, is of little use without agreement 
 as to the principle upon which rates ought to be framed. 
 There is a third condition no less reasonable. When 
 English railway companies are accused of imposing charges 
 at haphazard, and in an arbitrary fashion, wbat scientific 
 principle, it may be as-ked, ought to be followed ? There is 
 
no escaping this question not even if the task of framing 
 or controlling rates were committed, as has sometimes been 
 proposed, to the Board of Trade or the Bailway Commis- 
 sioners. To this question rarely, however, is any answer 
 given. When one is attempted, very seldom is it made 
 with reference to all interests meriting attention. 1 How often 
 do witnesses before Royal Commissions or in Parliamentary 
 inquiries merely deprecate in general language what they 
 object to as personally injurious, or merely claim what would 
 be advantageous for themselves ! How often is their proposal 
 of reform merely a thinly veiled plan for securing protection 
 against competition for some industry or some town or port! 
 How many proposals as to rates, propounded with facility and 
 confidence in Chambers of Commerce, would prove to be value- 
 less or even objectionable if their authors were always obliged 
 to answer in detail two questions. What would be the effect 
 of the proposals on consumers ? How would they affect 
 producers and traders generally ? 
 
 (*) Gustav Colin, the well known German writer on English railways, 
 while advocating many changes, complains of the limited, one-sided 
 knowledge of the subject shown by the chief English critics of railways. 
 Die Englische Eisenbahnpolitik (1883), p.88 and else where. 
 
SECTION III. 
 
 COST OF SERVICE. 
 
 ONE favourite proposal, often refuted but constantly 
 renewed, is to base rates on the actual cost of conveyance 
 plus a reasonable return on the capital invested. Whether 
 this would benefit the trade of the country we shall by 
 and by consider. 
 
 But it is no light presumption against this principle that, 
 though so often proposed, especially by theorists, no- 
 where has it been carried out. Obviously cost of convey- 
 ance bears no relation to value of goods the mere transit 
 of some descriptions of very valuable goods costs as little 
 as that of low priced articles. It will be generally found that 
 when pressed, the advocates of this theory are not prepared 
 to maintain that for a cwt. of coals and a cwt. of copper 
 the charge should be the same. They shrink from the appli- 
 cation of their own principle, recognising, as is the fact, 
 that it is absolutely inconsistent with any classification of 
 goods, such as traders and the Board of Trade have been 
 urging the companies to adopt. 
 
 Inconsistent as such a principle is with any kind of 
 classification of goods, and leading to the consequence that 
 a rate might be the same for a bale of cotton as for high 
 priced silks, its effect might be to revolutionize trade. But 
 there is a preliminary difficulty ; how is the cost of con- 
 veyance to be ascertained with anything like accuracy ? 
 
9 
 
 llo\v is the cost of conveying a particular consignment or 
 even the average cost of every kind of traffic to be found ? 
 What the transit of full loads of coal in this country, 
 or of grain in America, from point A to point B costs 
 may be approximately found. Allowances may be made 
 for the maintenance of the permanent way, for cost of 
 engine power, and the wages of drivers, guards, &c. ; and 
 calculations, more or less accurate, can be made as to the cost 
 of conveyance even over lines of varying gradients. The 
 solution even of this simple form of problem would be 
 difficult. When in cases before the Eailway Commissioners 
 it has been attempted to discover the actual cost of conveying 
 a particular kind of traffic, the operation has been laborious. 
 The companies interested have been compelled to incur 
 great expense in procuring returns and information, and 
 the result has in general been only approximately 
 accurate. Very complex and difficult is the real problem. 
 A large portion of the traffic of the country is carried in 
 trains which pick up and set down wagons at intermediate 
 stations. In the same truck may be goods of all classes and 
 different quality or bulk for different destinations. One 
 article of great bulk and light weight may be carried in a 
 truck by itself or along with articles of great weight and 
 small bulk. There is a further difficulty in the fact that, 
 while certain fixed expenses remain much the same, no matter 
 what may be the volume of traffic, the movement or operat- 
 ing expenses increase with the traffic. It may be confidently 
 stated that no trustworthy data as to the cost of conveying 
 each consignment or each clac-s of goods in the actual 
 
 NOTE.. See illustration of cubical contents in proportion to weight, 
 page 83. 
 
10 
 
 intricacy of business could be obtained. At best only esti- 
 mates could be roughly arrived at by arbitrarily making 
 allowances and assumptions. Will those who talk about cost 
 of service reveal the formula by which they can accurately 
 calculate the cost of carriage of a particular article carried in 
 the same truck with a dozen others, all coming from different 
 places and destined for different stations over three or four 
 different lines, the cost of r,o two of which has been the 
 same, and the working expenses of which are totally dis- 
 similar? If they have discovered this formula, it remains 
 to be stated how it may be applied. 
 
 So serious are the difficulties in the way of ascertaining 
 the facts as to cost of transport, so varied are the circumstances 
 in this country, that it is not surprising that in every instance 
 in which the principle has been brought before a Parlia- 
 menta v y Committee or Royal Commission it has met with 
 the condemnation expressed by the Select Committee of 
 1872" it is impracticable." 1 
 
 If the use of each wagon were charged for, according 
 to its capacity, the cost of conveyance per truck could, no 
 doubt, be approximately known. Whether such a system is 
 the best for railway companies need not be here considered ; 
 certain it is that it is extremely undesirable in the interest 
 of the trader. According to it, he must pay for a five or a 
 ten ton wagon, whether he filled it or not, and whether the 
 merchandise which he sent was silk, bales of cotton, or fruit. 
 
 (') For attempts to calculate cost of service, see A. Fink on " CW 
 of Railway Transportation," New York (1882) ; Iladley on "Railway Tran*- 
 liot-tmionj' 1 p. 261 ; Sax's J>ie J-'Axcnbaltucn l.GO and 2.361 ; ].artlncr* Jlailwiiy 
 J-'.C<J)KJI, *y ; and the Italian Parliamentary Inquiry f,ltli d<Ua ('<>ninn**n m e 
 >r J,K'/I>, at a vtf//' J-'.siT<-'^i<, ihiir Ferrorif Jfalicucj part II., vol. ]!., 962. 
 
11 
 
 The system of charging so much a wagon instead of so 
 much a \on-tcagenraitm tarif, as it is called is, to a con- 
 siderable extent, in force in Germany and Holland. In both 
 these countries, however, it has been found incompatible 
 with the necessities of commerce to abide strictly by this 
 principle. One curious result would be brought about 
 by charging per wagon there would be a return to 
 practices some forty years ago given up in England 
 as needlessly costly and unsuitable to business. Every 
 customer of a railway does not want a whole truck. 
 He wishes to send ten cwt. of bales or a cask weighing one 
 hundredweight; he could not send his goods if he had to pay 
 for a full truck. To provide for the wants of the great mass 
 of traders and the ordinary requirements of business, interme- 
 diaries between the railway companies have sprung up in 
 Germany and Holland. Indeed, the great bulk of the traffic 
 in the latter country is carried by carriers or forwarding 
 agents in full wagon loads. The company is practically only 
 a toll taker. The forwarding agents charge the consignor or 
 consignee of the goods sums over and above the tolls or 
 rates paid to the companies. So far as a large part of the 
 public is concerned, the rates of the companies are, in those 
 countries, mere paper rates. Not being able to take a full 
 wagon, small traders must pay what the forwarding agents 
 demand, or make special terms with them. This is very much 
 the state of things which existed in England before 1844, 
 when the companies were, as a rule, merely owners of the road, 
 locomotives, &c., and when they left to private persons the 
 business of carriers. Those who can recall that time, or who 
 reflect what the results of such a system would be, will scarcely 
 wish for its return ; it would be indeed a lamentable 
 
12 
 
 retrogression, injurious alike to the public and the railway 
 companies. 1 
 
 ^) See the unqualified condemnation of the system in the Italian Parlia- 
 mentary Report already quoted : " The natural system was a system 
 eminently theoretical. To-day all doubt on the subject is removed ; 
 this system was tried for five years, and it proved very unsatisfactory." 
 Parte II., Vol. III., p. 954. It is pointed out with truth that the so-called 
 " natural system " is injurious to small industries and small towns. 
 
 See also page 18. 
 
13 
 
 SECTION IV. 
 
 EQUAL MILEAGE RATES. 
 
 ANOTHER proposal which, though always condemned by 
 competent judges, is still, in some form, very often brought 
 forward, is to charge equal mileage rates. (*) Admitting the 
 impossibility or impropriety of making rates vary according to 
 the cost of conveyance of goods without reference to their 
 value or quality recognising the expediency of classification 
 in some form many persons think that it would be well to 
 charge for the same kind of goods the same sum per mile 
 universally. This plan is simple ; it has an appearance of 
 being equitable ; and, as such, it is attractive. But, on the 
 slightest consideration, it boicomes apparent that exceptions 
 which mar ihis simplicity must be admitted. In fact, 
 no one proposes that this principle should be inflexibly 
 carried out. Far from being really equitable, equal mileage 
 rates would often act most unfairly. Mileage run is only 
 one element out of many in cost of service; and to 
 compel companies to charge the same sum between points 
 equally distant, irrespective of the original cost of construct- 
 ing the way, the nature of the gradients, the amount and 
 
 (T) The late Member for West Wolverhampton, in comparing the rates 
 for Coke between Staveley and Northamptonshire and Staveley and 
 "Wolverhampton, practically advocated mileage rates, although, probably, 
 not intending to do so. (See debate on the second reading of the Railway 
 and Canal Traffic Bill, May 6th, 1886.) 
 
14 
 
 regularity of the traffic to and fro, and the extent of back 
 haulage of " empties," would be doing great injustice. 
 Obviously an allowance must be made to cover the cost of 
 specially expensive undertakings, such as the Runcorn, Tay 
 and Forth Bridges, the Sol way Viaduct, or the Severn Tunnel. 
 So, too, allowance must be made for steep gradients; mani- 
 festly the same paying load cannot be carried over gradients 
 of one in forty as over one in eight hundred. In Germany 
 and Holland an effort has been made to adopt the mileage 
 system ; and (subject to exceptions for import, export and 
 transit rates, referred to afterwards) it is assumed to be 
 carried out. But patent facts could not be ignored ; in 
 these countries an extra mileage up to 12 kilometres 
 (about 7J miles) is taken into the calculation of rates 
 for expensive bridges and steep gradients. Speed, too, 
 must be taken into account ; as it increases, a more than 
 proportionate increase in engine power is necessary. 1 
 
 Equality is here not equity. To all railway companies 
 the result of establishing a system of equal mileage rates 
 would not be the same. Much would depend on the question 
 
 ( n ) If an engine and tender weighing together 56 tons is capable of 
 drawing a maximum load of siy forty loaded wagons weighing 560 tons at 
 25 miles per hour on the level, it will only take the following loads over 
 the gradients named below, and, in addition to the reduction in the load, the 
 speed would also be considerably reduced. 
 
 Level. 40 wagons weighing 560 tons. 
 
 Incline 1 in 100 20 ,, 280 ,, 
 
 1 50 10 140 
 
 1*. 30 6 ,, 84 
 
 SeeaboSpon's Dictionary of Engineering; Encyclopedia Britannica 
 
 "Railways," and the elaborate work DCS Pc/ttes EconmnlqKes en Chewinx, 
 par M. Chirtes de Freycinet. 
 
15 
 
 whether the rates were the same over all parts of the same 
 railway, or whether equal mileage rates were in force 
 throughout the country : a distinction not always borne 
 in mind by those who propose such rates. Undoubtedly 
 to many railways the loss of traffic as the result of 
 equal mileage rates would be serious. Unless a very 
 low scale of rates, entailing heavy and unnecessary loss, 
 were adopted, much of the long distance traffic would 
 cease to be carried. On other railways, however, the present 
 net revenue might be maintained by levelling up rates; 
 although the amount of traffic would be less, the woiking 
 expenses might be reduced. On the whole, the more the 
 theory of equal mileage rates is studied, the clearer it be- 
 comes that its adoption would probably be much less 
 injurious to some railway companies than to colliery 
 proprietors, manufacturers, traders, ports, and to the country 
 at large. 1 
 
 ( L ) Before Mr. Card well's Committee (23rd February, 1853) the late 
 Mr. Robert Stephenson, the eminent engineer, gave the following illustra- 
 tion, which is not yet antiquated : 
 
 "I referred to that in order to shew the Committee the great 
 "impropriety of attempting anything like an equal mileage rate on 
 " railways. I can elucidate that in a very remarkable manner, and shew 
 ' ' the injustice that the carrying out of the principle would inflict upon 
 " some railway companies, especially where goods are concerned. I 
 " will take the case of the Great Noith of England Railway, from 
 " Newcastle coal-field towards York, and towards the rivers Tees and 
 " Tyne. In one direction there were 5,450,000 tons of coals carried 
 " over one mile, which was equal to 320,588 over one mile for each 
 "engine; there having been employed by the York, Newcastle and 
 " Berwick Company for the performance of that duty 17 engines. 
 "Towards York, where the distance was greater, and the gradients 
 "were better, and the loads heavier, and the work more uniform, 13 
 
16 
 
 To consumers, whose interests are so apt to be lost sight of 
 in the controversy, the change would be disastrous. Equal 
 mileage rates would seriously lessen or even destroy traffic 
 now conveyed long distances. By narrowing the area of 
 supply, they would raise the prices of provisions and com- 
 modities such as milk, fish, and vegetables in and near great 
 towns. The sustenance of a community such as London, is, 
 one might almost say, possible only because it is not fed 
 solely from the region immediately round it, but is supplied 
 from very distant points. If the London markets are able 
 to procure fish from remote parts of Scotland or Ireland, 
 beef from Aberdeenshire and adjacent counties, milk from 
 farms within 100 miles, vegetables from Penzance, and 
 the Channel Islands, eggs and butter from Normandy, 
 coals from the Midlands, Lancashire and South Wales, the 
 capital owes these advantages to the fact that English 
 railways have not been bound by equal mileage rates. Were 
 such a system strictly enforced, fuel, provisions, and most 
 of the necessaries of life would be raised in price. So far 
 as consumers are concerned, equal mileage freights by sea 
 the height of absurdity in the eyes of all who know any- 
 
 " engines took 14,435, OCO tons over one mile, which was equal to 
 " 1,110,000 tons for each engine over a mile; in the other case, the 
 "duty that one engine performed was carrying 320,588 tons over a mile ; 
 " therefore in this case one engine has done 3 P 466 more work than the 
 " other engine, so that on the first line it cost the Company nearly four 
 "times as much as It cost them for doing the same duty on the other 
 " line. On the one line there are a number of collieries ; the engines 
 " hxve to stop and pick up the traffic, and the railway wagons do not 
 " average perhaps more than seven or eight miles per day, whereas in 
 "the other case they work for hours continuously, and with heavier 
 " loads and no stoppages." 
 
17 
 
 thing of commerce would be as reasonable as equal mileage 
 rates by land. 1 
 
 To manufacturers whose works and premises are not 
 near densely populated districts or ports the great centres 
 of consumption or export the change would be disastrous* 
 They would be driven out of the Held by more favourably 
 situated competitors, who would acquire a monopoly. 
 The pursuit of certain trades would become impossible in 
 districts in which they are now carried on with success. 
 Not a few manufactories would soon be closed, but for the 
 facilities which they now possess for procuring raw materials 
 from remote parts. To give a few illustrations out of many : 
 South Staffordshire is supplied with iron ore or pig-iron 
 from Staveley in Derbyshire, Westbury in "Wiltshire, Fawler 
 in Oxfordshire, Frodingham in Lincolnshire, Ulverstone 
 and "Wigan in Lancashire, Middlesborough in Yorkshire, and 
 also from South Wales ; and it receives limestone from 
 Froghall in North Staffordshire, Minera in Denbighshire, 
 "Wirksworth in Derbyshire, Presteign in Radnorshire, and 
 Porthywaen in Shropshire. 2 Such are examples of the 
 
 ( l ] See preface to Smiles' Life of Stephenson, and, as to thfl provisioning 
 of Paris by means of railways, interesting details in La Transformation Des 
 Moyens de Transport, par Alfred de loville, Chef de Bureau au Ministere des 
 Finances, p. 250. 
 
 ( 2 ) About thirty years ago, when the iron works at Westbury in Wilt- 
 shire were constructed, it was anticipated that fuel would be obtained fiom 
 the Badstock district, about 14 miles distant. But after sinking collieries 
 it was found that the coke was not suitable ; so that it has now to bo 
 obtained from South Wales, a distance of about 1 30 miles. The pig iron is sent 
 to South Wales in the return coke wagons, and also to South Stafford- 
 shire, a distance of 140 miles. The cuke and pig iron are carried at special 
 low rates below those in force for traffic to intermediate places. Without 
 such special rates, or if mileage rates were churned, the works would ha\o 
 to be closed. 
 
 B 
 
18 
 
 interdependence of districts and industries, the co-operation 
 of places far apart, with which equal mileage rates would 
 interfere. Even if originally they would have been beneficial 
 they would revolutionise the conditions under which trade 
 has been carried on in this country since the introduction 
 of railways. 1 
 
 (*) An American writer points out that the following would be the result 
 of applying the principle of equal mileage rates, or of basing rates on cost 
 of service : 
 
 1. "There \vould be little or no classification of freights. Grain, 
 
 " lumber, coal, iron, shoes, dry goods, groceries, drugs and 
 ' chemicals, would all have to pay near about the same rate per 
 " 100 pounds per mile, and that rate would have to be something 
 " like an average of the present rates charged upon tho different 
 " classes of freight. The higher classes of freight would be a 
 " good deal lowered, and the lower classes would be materially 
 " raised. The result would be that cheap and heavy products 
 " could be no longer transported over the distances that are now 
 " carried. 
 
 2. " The rates on through freight would have to be proportioned very 
 
 *' nearly to the distance hauled. The rate from Chicago to Boston 
 "for instance, would be materially higher, and the rate from 
 " Chicago to Baltimore materially lower than the rates from 
 " Chicago to New York. 
 
 3. " Roads having the lowest grades, and most favourable alignment 
 
 " would have lower rates than their competitors, and would 
 " monopolise the business, to the entire exclusion of those lines 
 ' which traverse more difficult and expensive territory, and upon 
 " which the cost of transportation was greater. And the tide 
 " once turned, the evil would multiply itself ; for tho rates would 
 " decrease rapidly on the favoured roads, with the increase of 
 " business, and would increase on the unfortunately located roads, 
 " with the decrease in volume of their freight, until the latter 
 " would be left with nothing but their local business to support 
 " them, which would then have to be advanced to the highest 
 " figures possible." Railroad Transportation, b;/ E. P. Alexander , 
 of the Louixrillc and Naxhrillr It riliniy Company. 
 
19 
 
 Some advocates of the theory of mileage rates may 
 concede that their adoption would entail loss on certain 
 districts and to some individuals, but deny that the community 
 as a whole would suffer. 1 Is this a reasonable view ? Even 
 if the home trade were not injured, the result of equal mileage 
 rates must be to increase the cost of production of many- 
 articles manufactured at a distance from ports of shipment. 
 Would not this nuke competition with foreign countries 
 more difficult than it is? And must it not reduce the 
 demand for labour ? 
 
 The principle of equal mileage rates, it may be added, 
 has been condemned by every Hoyal Commission and Parlia- 
 mentary Committee which has investigated the subject; and 
 this condemnation has been pronounced on grounds for the 
 most part wholly independent of the interests of railway 
 companies. As pointed out by the Select Committee of 1872, 
 the principle would " prevent railway companies from making 
 (( perfectly fair arrangements for carrying at a lower rate than 
 " usual goods brought in large and constant quantities, or for 
 " carrying for long distances at a lower rate than for short 
 " distances." 
 
 " It would prevent railway companies from lowering their 
 " fares and rates so as to compete with traffic by sea, by 
 " canal, or by a shorter or otherwise cheaper railway, and 
 "would thus deprive the public of the benefit of compel i- 
 " tion, and the company of a legitimate source of profit." 
 
 (*) Very recently the fishermen in the North of Scotland have been 
 asking that the same grqss rates shall be charged from Wick to large towns 
 in the South as are charged from the fishing ports, such as Grimsby, on the 
 East Coast of England. What would they, or most consumers of fish, say- 
 to equal mileage rates ? 
 
20 
 
 " It would compel a company to carry for the same rate 
 " over a line which has been very expensive in construction 
 " or which from gradients or otherwise is very expensive in 
 " working, at the same rate at which it carries over less 
 " expensive lines." 
 
 The Committee add "It will be found that the supporters 
 " of equal mileage, when pressed, often really mean, not that 
 " the rates they themselves pay are too high, but that the 
 " rates which others pay are too low." In other words, they 
 desire to apply the principle when it works in their favour, 
 and to reject it when it does not. 1 
 
 (!) " We have nothing to do here with the study of the tariff systems 
 " adopted on the Alsace-Lorraine lines, and extended with some modifioa- 
 " tions to the generality of German lines. Seductive by its simplicity, 
 *' the principle of fixing the rate according to the weight only, and without 
 " regard to the value of the object carried, has not found numerous partisans 
 " in France. Such a radical reform would overthrow our commercial habits, 
 " and would occasion results, in a financial point of view, which would be 
 " impossible for us to estimate." Eeport of the French Commission of the 
 Third System on Railway Tariffs, by M. Richard Waddington. (Appendix 
 31 to Report from the Select Committee on Railways (Rates and Fares), 
 1881-2, Vol. 11. p, 449). 
 
21 
 
 SECTION V. 
 
 DIFFERENTIAL RATES. 
 
 WHILE shrinking from advocating equal mileage rates, 
 many persons take up an intermediate position. They object 
 to rates being much out of proportion to distance ; they do 
 so although the traffic may not be carried over the same 
 parts or sections of a railway. The rates to which objection 
 is taken are of several kinds : Special rates for export traffic ; 
 special rates for import traffic; transit or through rates; 
 special rates generally special rates for long distance as 
 distinguished from short distance or intermediate traffic. 
 
 Such differential rates exist and the circumstance is not 
 unimportant in all countries in which railways have been 
 developed ; and it will be found that, here as elsewhere, they 
 have been adopted, not solely or even chiefly with a view to 
 benefit railway companies, but mainly to meet the not 
 unreasonable demands of traders and consumers. 
 
 The following are a few instances of special import and 
 export rates charged by the railway companies in this 
 country, viz. : 
 
From 
 
 To 
 
 Article. 
 
 1 mport 
 and 
 Export 
 Rates 
 per Ton. 
 
 Local 
 Kates 
 per Ton. 
 
 Manchester . . 
 
 London . . . . 
 
 Cotton Goods in Bales 
 
 25/- 
 
 40/- 
 
 
 
 
 C. &D. 
 
 C. & D. 
 
 
 
 Southampton . 
 
 
 
 25/- 
 
 45/- 
 
 
 
 
 C. & D. 
 
 C. & D 
 
 Birmingham ,. 
 
 London .. .. 
 
 Hardware . . 
 
 25/- 
 
 27/6 
 
 
 
 
 C. & D. 
 
 C. & D. 
 
 if 
 
 . 
 
 Bedsteads 
 
 22/6 
 
 28/4 
 
 
 
 
 C. & D. 
 
 C. &D. 
 
 London . . 
 
 Plymouth 
 
 Newspapers and 
 
 24/2 
 
 37/6 
 
 
 
 Periodicals 
 
 C. & D. 
 
 C. &D. 
 
 Leeds ., .. 
 
 Hull . . . . 
 
 Woollen and Worsted 
 
 12/6 
 
 16/8 
 
 
 
 Goods 
 
 C. & D. 
 
 C. & D. 
 
 Manchester . . 
 
 ,, *. 
 
 Bale goods . . 
 
 17/6 
 
 31/8 
 
 
 
 
 C. &D. 
 
 C. &D. 
 
 Liverpool 
 
 . . . 
 
 Salt Provisions . . 
 
 12/6 
 
 20/- 
 
 
 
 
 Carted in 
 
 Hull. 
 
 
 
 London . . 
 
 Fresh Meat . . 
 
 25/- a 
 
 60/- a 
 
 
 
 
 C. &D. 
 
 C. &D. 
 
 
 
 
 SO/- b 65/- I) 
 
 
 
 
 C. & D. 
 
 C. &D. 
 
 Bristol . . . . 
 
 i 
 
 American Provisions 
 
 20/- 
 
 27/6 X 
 
 
 
 
 C. & D. 
 
 C. &D. 
 
 99 
 
 j j . 
 
 Fresh Meat . . 
 
 20 '- a 
 
 
 
 
 
 C. & D, 
 
 25/- b 
 C. & D. 
 
 } 40/- 
 JC.&D. 
 
 Hull .. .. 
 
 j> 
 
 Meat and other Im- 
 
 25/- 
 
 407- 
 
 
 
 ported Goods 
 
 C. & D. 
 
 C. &D. 
 
 a. Exclusive of hampers. 
 I. Inclusive of hampers. 
 X Bacon in 1 ton lots 22/6 per ton C. & D. 
 
 Butter and Lard in 4 ton lots 22/6 per ton C. & D. 
 C. & D. In other words, collected and delivered. 
 
23 
 
 In the interest of shippers transit rates have been 
 adopted ; and as an illustration, may be mentioned the rate 
 for tea from China, Japan, and India, brought by water to 
 London, and despatched to Liverpool by rail for shipment 
 to America or elsewhere, viz. : 
 
 From 
 
 To 
 
 Article. 
 
 Export 
 rate 
 per Ton. 
 
 Local 
 rate 
 per Ton. 
 
 London 
 
 Liverpool . . 
 
 Tea from China, India, 
 Japan, under Bond 
 
 25/_ 
 C. &D. 
 
 37/6 
 C.&D. 
 
 
 
 Birmingham. 
 Manchester . . 
 
 Tea 
 
 
 
 34/2 
 C. &D. 
 40/0 
 
 
 
 
 
 C. &D. 
 
 In the abolition of these rates the home trader or 
 consumer can have no direct interest ; although the transit 
 rate is lower than that for home traffic, it cannot in any way 
 prejudice the English trader. If the special rate were with- 
 drawn he would be no better off; the traffic would simply go 
 to its destination by water. 
 
 To reduced export rates the objections are few. They 
 are generally admitted to be useful ; and at a time when on all 
 hands it is urged to be necessary to extend our trade abroad, 
 they could not be abolished without causing serious loss and 
 loud complaints. It is important to enable a colliery owner 
 to export coal, or a manufacturer without a port in the 
 vicinity of his works, to export his wares on such terms 
 that he will not be at a heavy disadvantage or be driven 
 out of the field. Special lower rates enable the manu- 
 facturers of exported goods, such as manufactured cottons 
 from Manchester, and hardware from Birmingham, to 
 
24 
 
 send them to London, and to avail themselves of lines of 
 steamers sailing from several ports. But for such facilities 
 exporters would be confined to one, and that the nearest, 
 port, and they would lose the benefit of the competition in 
 facilities and sea freights. The railway company which 
 happened to own the route to the nearest port would possess 
 a monopoly of the traffic, and might charge their full rates 
 instead of the present reduced rates. 
 
 Nor is the practice recently introduced in the interest of 
 railway companies. In the Act authorising the very 
 first railway on which steam was used, the Stockton and 
 Darlington, the principle is recognised. The tolls upon the 
 coal shipped on board any vessel for export were fixed at 
 one halfpenny per ton per mile, while the toll on all other 
 coal was 4d. per ton per mile. Each of the special export 
 rates has been made, it may be truly said, at the instance 
 of some manufacturer or shipper who would be injured by 
 their withdrawal. In granting such terms, railway companies 
 have endeavoured to satisfy the urgent demands of customers. 
 And if the rate to one intermediate place is fair and reason- 
 able in itself, is it any substantial grievance that it is higher 
 than the rate on goods for shipment f 1 
 
 Special import rates have been much more attacked ; 
 but when the principle is fairly carried out, they are no less 
 defensible than export rates. Most of the objections to them 
 come, it will be found, from persons who believe that they have 
 a vested interest in certain produce and trades ; often they are 
 assailed by the very persons who are the defenders of reduced 
 
 ( ! ) Tho rate for the carriage of flour from Minneapolis for consumption 
 at Milwaukee or Chicago is one-third higher than the rate for flour for 
 shipment. 
 
25 
 
 export rates. The majority of special import rates naturally 
 arise out of sea competition. The existence of the import rates 
 for fresh meat and provisions from Liverpool and Bristol to 
 London, which have been especially condemned, is due, not, 
 as is assumed, to the arbitrary action of companies, but to 
 the demands and necessities of traders. Those who are in- 
 terested in the trade of Liverpool, the great seat of the 
 American trade, and in the steamers sailing between America 
 and Liverpool, desire to compete with the direct sea com- 
 munication with London, or with other ports near to it. In like 
 manner the shipping companies and others who are interested 
 in the trade of Southampton claim special rates and facilities in 
 favour of that port. Naturally they wish that a part of the 
 traffic should go via Southampton ; and a compliance \*ith 
 their wish benefits the public. 
 
 Special import rates are not charged on foreign goods 
 merely because they are foreign ; the chief, though not the 
 only, explanation of their existence, is the desire of steam- 
 boat companies and merchants that a part of the goods 
 consumed in other places may be carried through the port 
 in which they are interested, instead of the goods being all 
 sent through ports nearer to or direct to the ultimate 
 destination. The railways have, in fact, complied with 
 urgent local demands. 
 
 Some rates for import traffic are less than for the same 
 description of goods going in the opposite direction. Such 
 cases are probably rare, and the circumstances of all of them are 
 not fully known. The following, however, was the origin of 
 one of them : The millers in the Eastern counties found that 
 their trade suffered by reason of the competition of millers 
 situated on the Thames, who were able to obtain by water 
 
26 
 
 foreign grain at low rates. The former urged upon the railway 
 companies the necessity of granting them reduced rates from 
 London for foreign grain to mix with English wheat, and 
 thus enable them to produce better and stronger flour than 
 that produced by home grown wheat alone. The millers 
 pointed out that by so doing the local industries in which the 
 companies and the districts have an interest would be bene- 
 fited, and that there would be an increased trade in foreign 
 grain down from London and in flour up to it. Admitting 
 the force of these arguments, the railway companies put in 
 force lower rates. Here, as elsewheie, we find a collision 
 of interests, and conflicting demands. These rates have 
 recently been altered with the view of partially removing 
 the grounds of complaint in this case; it remains, however, 
 an apt illustration of the difficulties encountered in framing 
 rates. Reduced rates are complained of by one portion of the 
 public ; and yet, if they were cancelled, other sections would 
 consider themselves aggrieved. Such are the difficulties 
 with which railway companies have to contend .; bound to 
 serve and accommodate classes at variance with each other; 
 subject to criticism and complaint if they do not satisfy con- 
 tradictory demands. 
 
 There has been much hostile comment on the con- 
 veyance at reduced rates of foreign produce and merchandise 
 from the Continent, through English ports to places of 
 consumption. The French traffic from Cherbourg or Havre 
 carried via Weymouth or Southampton, and from Boulogne 
 or Calais, fid Dover or Folkestone, and the Dutch and 
 Belgian traffic from Rotterdam or Antwerp, via Harwich, 
 have been especially the subject of unfriendly remark. But 
 the explanation of such rates is simple ; they are due to nc 
 
27 
 
 designs against the English farmer. French traffic carried 
 rid Cherbourg may be sent direct by sea to London. In order 
 that it may be conveyed over a portion of their systems, 
 the London and South "Western Company run steamers 
 between that port and Southampton ; and until recently the 
 Great Western Company had a line of steamers between 
 Cherbourg and Weymouth. In order to compete with the 
 sea communication, the South Western and Great Western 
 Companies necessarily fixed their rates with reference to 
 the sea freights from Cherbourg and other ports. The 
 distance betweeen Southampton and London is 76 miles, 
 while the distance between Weymouth and London is 
 159 miles. Of course the Great Western Company charged 
 the same rates by the longer as the South Western Company 
 charged by the shorter railway route. Hence the complaint 
 that French goods were being carried cheaper from Cher- 
 bourg to London than from places in Dorsetshire, past 
 which, when carried by the Great Western Company, they 
 were conveyed. The obvious answer was, that if the Great 
 Western Company did not carry at all, the traffic would be sent 
 via Southampton, smd that if the London and Southwestern 
 Company ceased to carry, it would be sent to London direct 
 by sea. In fact, the Great Western Company have recently 
 given up the steamboat service, and ceased to carry rid 
 Weymouth ; the grounds of complaint made in the name of 
 the Dorsetshire farmers have thereby been removed. Eut 
 the competition, such as it is, of French with English 
 produce, continues all the same, only all the traffic is carried, 
 not through Dorsetshire, but by other routes. Indeed, 
 immediately after the service rid Weymouth was withdrawn 
 & new service was established between Paimbceuf and 
 
28 
 
 Newhaven ; and by this route a portion of the traffic 
 previously sent via Wey mouth is now carried. 
 
 Irish produce from Waterford is carried to London by 
 various routes : direct to the latter by sea ; by sea to Bristol, 
 and thence by rail, 119 miles to London ; by sea to Milford, and 
 thence by rail, 282 miles ; and by sea to Liverpool, and thence 
 by rail 201 miles. The rates via Bristol are, and must be, fixed 
 with reference to those charged by sea, and those via Milford 
 and via Liverpool, must be the same, or nearly so, as those 
 charged via Bristol. Yet, according to the views of some 
 persons, this competition is unfair to intermediate towns 
 between Milford and London, and between Liverpool and 
 London, between which intermediate places and London the 
 rates are higher, or higher in proportion, than those charged 
 between London and Waterford. Tnere are complaints 
 as to this disparity, although the competition, if any 
 exists, would continue, even if no Irish traffic were carried 
 via Milford at all. 
 
 Similar observations apply to traffic between Dublin 
 and Liverpool. Between these cities there is daily steam 
 communication; so that goods carried by sea to Holy- 
 head, and thence by rail, may be conveyed throughout at 
 lower rates than those charged for traffic for places inter- 
 mediate between Liverpool and Holyhead. Indeed, sea 
 competition influences the rates for traffic between Dublin 
 and Manchester. Traffic is carried by sea, via Liverpool, and 
 thence by rail (31 miles) to Manchester, while the distance by 
 rail from the latter place to Holyhead is 122 miles. 
 Consequently the rates between Manchester and Dublin, rid 
 Holyhead, are less than to some intermediate places. 1 
 
 (') In the evidence given before the Select Committee in 1831, the 
 
29 
 
 Tea imported into London may be carried by sea direct to 
 Newcastle or Liverpool. Iron manufactured at Middlesboro* 
 or in South. Wales can be conveyed by water at low freights 
 to London. So, too, tin-plates may be conveyed by water from 
 Glamorganshire to Liverpool. If the importer or the manu- 
 facturer, therefore, desires to send, or the companies desire to 
 carry, any of those goods by railway, special rates yielding only 
 a small profit to the companies must be quoted ; otherwise 
 the whole, or nearly the whole of such articles, would be sent 
 by sea. Such reduced rates are complained of because of 
 their being less in gross or per mile than those for the same 
 or similar articles carried for the like or less distances. 
 But grocers or consumers of tea, iron merchants or black- 
 smiths in inland towns, or manufacturers whose works are 
 
 rates for foreign hops from Boulogne to London were compared with the 
 rates charged for home grown hops from the Ashford and Canterbury dis- 
 tricts to London. The former were complained of as "being an undue 
 preference in favour of foreign produce. No doubt there was a considerable 
 difference. The rate from Boulogne to London was 17s. 6d., and that from 
 Ashford to London, 38s. It was, however, shewn that the rate of 17s.6d. per 
 ton for foreign hops from Boulogne to London was a station to station 
 rate, while the rate of 38s. per ton from Ashford to London included 
 delivery and all station services, and that owing to the difference in the 
 mode of packing the hops, 73 per cent, more foreign hops than English 
 hops could be loaded in a truck. The railway companies concerned urged 
 that the home producer was not prejudiced by the transit rate complained 
 of. While it enabled the railway companies to obtain the conveyance of 
 a portion of the foreign hops, an increase of the rate from Boulogne 
 would not be of any benefit to the English grower. The foreign hops 
 would still find their way to London direct by sea. The rate of 17s. 6d. 
 per ton from Boulogne to London was cancelled in deference to the com- 
 plaints. What is the result ? The foreign hops are imported as before ; 
 but they are now carried by the General Steam Navigation Company. 
 The railway companies have to some extent suffered ; the English pro- 
 ducer has gained nothing. 
 
30 
 
 near the port of shipment would derive no advantage from 
 all these goods being carried by sea at the same or even 
 lower rates than those now charged by railway. The influence 
 of the sea, "the great free trader " as it has been called, is 
 vast and far reaching. England and Scotland being an 
 island, there is all round the coast direct competition with 
 the sea. It exists for instance between London and Yar- 
 mouth, Hull Newcastle-on-Tyne, Leith, Aberdeen on the 
 eastern coast ; and between London, Southampton and 
 Plymouth, and the west coast ports, that is, Bristol, the 
 South Wales ports, Liverpool and Glasgow. 
 
 If railways in England did not compete with transport 
 by the sea they would in many cases be of comparatively 
 little use to manufacturers and merchants. Only by such 
 competition do they fully minister to the requirements of 
 the trade of the country. . If all the intermediate rates 
 were to be brought down to the levol of those charged 
 between port and port what would be the result ? The 
 companies would have to raise their port to port rates. 
 The public would lose the benefit of rail carriage for goods 
 sent between port and port, and the companies the profit they 
 might have derived from such goods. Who would be the 
 gainer t 1 
 
 ( l ) Lines of steamers carrying Belgian, Dutch, Gorman, and French 
 goods and produce, run between Antwerp, Rotterdam, Amsterdam, Boulogne, 
 Havre and London. In competition with them the Great Eastern, 
 South Eastern, and London Chatham and Dover Companies carry via 
 Harwich, Folkestone and Dover respectively, at such rates as they can 
 obtain in competition with those charged by steamer direct. It has been a 
 subject of complaiat that these goods are conveyed at lower rates than 
 similar merchandise from places in Essex or Kent, past which they are 
 carried by rail. No doubt the regular and quick services provided by the 
 
31 
 
 Many apparent anomalies in railway rates arise from 
 competition of the railways with the sea: others are the 
 results of comparisons of the rates charged by railway com- 
 panies, which must carry, if they are to carry the traffic at 
 all, at the same rates as a company having a shorter route. 
 Inasmuch as competition between railway companies is 
 carried on extensively, many such disparities exist. The 
 apparent anomaly in tin plates being carried from South 
 Wales to Liverpool via Stockport, near Manchester, at lower 
 rates than to Manchester, was referred to by Mr. Johnson 
 Ferguson in the debate on the second reading of the Rail- 
 way and Canal Traffic Bill. This arises from the Midland 
 Railway Company competing with two shorter routes 
 between these places, and from the rates by those routes 
 being so fixed as to meet the competition by sea ; the former 
 company's longer route is through Stockport (not Man- 
 chester) , to which latter place of course there is no export 
 trade, and at which there is no sea competition. This 
 anomaly would be entirely removed by the Midland Com- 
 pany ceasing to compete for the Liverpool traffic ; but the 
 consumers of tin plates in Manchester would not in any 
 respect be benefited by the change. The distance by the 
 shortest railway route between London and Bristol is about 
 119 miles. There are two other railway routes, the shorter 
 
 railway companies are of great advantage to the senders and consumers. 
 But so far as London is concerned, a great part, if not the whole of tho 
 goods, not requiring quick transit could be sent by sea direct, if the 
 Harwich, Dover, and other services were discontinued. 
 
 There are import rates to towns in the interior to which there is no 
 direct sea competition. If such rates are not based on the rates to places to 
 which there is such competition, plus the local rates, they may be 
 open to question to an extent not applicable to the rates to and from ports. 
 
32 
 
 of which is 161 miles; there is also direct transport by sea ; 
 and by all of these routes there is competition for the con- 
 veyance of merchandise traffic. To suit the requirements of 
 the trade between these ports, as well as to contend with com- 
 petition by water, special rates are charged. Withdraw them, 
 and either the interchange would not take place or the goods 
 would have to be sent by sea. Of course the other railway 
 companies carrying between the two places charge the 
 same rates as those in force by the shortest railway route, 
 otherwise they would obtain no share of the traffic ; and 
 these rates are necessarily less for the throughout distance 
 than those charged for like descriptions of goods to some of 
 the intermediate towns on the longer route. 
 
 To take one more illustration : steamboats ply between 
 Liverpool and Bristol. Goods carried by railway between 
 these two places by one or other of the three available routes 
 must pass through some one of the following places : Bir- 
 mingham, Worcester, Hereford, Shrewsbury, Chester or 
 Warrington. The local rates to all these intermediate towns 
 may appear disproportionate to those charged between 
 the extreme points. But is there any real injustice done ? Is it 
 disadvantageous to the public that railway companies 
 should compete with sea carriage between different ports 
 in the Kingdom ? Should not railway companies be 
 allowed to accept in respect of traffic so carried, which would 
 otherwise be wholly lost to them, a less percentage of profit 
 without being compelled to reduce all their rates to inter- 
 mediate inland places to the same or proportionately less 
 amounts? What injustice is done to those whoso goods are 
 carried to and from intermediate inland places by the fact 
 that their rates are higher, or higher in proportion, than the 
 
33 
 
 competitive rates, provided the rates to intermediate places 
 are in themselves fair and within the Company's legal 
 maximum? 
 
 A third source of com plaint of disproportionate rates arises 
 from the competition between ports. Assume, for instance, 
 port A to be 51 miles, port B 72 miles, and port C a greater 
 distance from D, one of the great seats of manufacture and 
 commerce. The merchants and shipowners at and B 
 desire to compete with A, and they induce the railway com- 
 pany to carry from all three at the same rates. The result is 
 that the rates are lower for the throughout distance than to 
 and from some of the intermediate places. The grounds of 
 grievance would be removed by the railway company ceasing 
 to carry from C and B at the same rates as from A. But 
 the importation of foreign goods would continue ; the only 
 difference being that they would be carried through one 
 pert instead of two or more. And here a curious fact may 
 be noted. If, in the case supposed, the railways between. 
 A and D, B and D, and C and D belonged to separate 
 companies, in all probability no complaint would be made 
 of the rates from A, B, and C to D being the same. On 
 the contrary, competition being always desired by the public, 
 it would be considered in that case advantageous and in 
 the interest of the public. But because the lines between 
 B and D and C and D belong to the same company as that 
 between A and D complaints are made on account of the 
 rates being equal. What is hailed in the one case as a 
 benefit is decried in the other as mischievous and unjust.^) 
 
 (*) Many of the rates from Hull are affected by inland water competition, 
 or by these charged from Liverpool. On the other hand, the rates from 
 Hull govern those from Grimsby (as a competing port), Harwich, West 
 
 c 
 
34 
 
 The chief explanations of differential rates have been 
 mentioned ; another cause less important is in operation. In 
 carriage by road, cost may be roughly measured by distance, 
 though even as to the expenses of cartage that is subject to 
 exceptions. But this test admitted to be practically useless 
 as regards freight by sea does not hold good of railway 
 transport. Of the various kinds of outlay on the part of a 
 railway company, a large portion remains fixed, whether the 
 distance run by a train is ten miles or one hundred. Such, for 
 example, are the cost of terminal accommodation, and the 
 services of loading and unloading, and clerical work. Such, 
 too, speaking broadly, are the interest on cost of construction, 
 repairs of bridges and earthworks, the permanent staff of 
 employes, and of signalling. Another kind of expenditure in- 
 creases directly with the mileage run ; for example, the pro- 
 vision of, and wear and tear of locomotives, rolling stock and 
 permanent way, and liability for loss of or damage to goods 
 in transit. Certain kinds of expenditure increase with the 
 distance run, but not in the same ratio. Obviously wages, 
 cost of locomotive power, and cost of haulage generally are 
 not four times as much in the case of a train which has run a 
 hundred miles as in one which has run twenty-five. With 
 the progress of railways, with improved economy in the use of 
 machinery, and in other ways, this tendency recognised to 
 some extent by the Legislature in the rates for short dis- 
 tance traffic in expenditure not to increase in the same 
 
 Hartlepool, Newcastle, Sunderland and Shields. In fact, a large portion 
 of the anomalies in railway rates arise from the competition between ports. 
 Although improvements in detail as to such rates, no doubt, are possible, 
 the interests of some ports would be seriously affected by any change in 
 the principle on which railway rates are fixed. 
 
35 
 
 proportion as mileage distance, becomes an important element. 
 The result of all this is to make mileage less a criterion of cost, 
 and tends to place large towns at a greater distance at an 
 advantage as compared with intermediate towns, and to give 
 rise to differential rates. ( l ) It is also obvious that from many 
 intermediate towns the quantities forwarded are not so large 
 and regular as from terminal towns, and that from the 
 former there is not a constant traffic to and fro. 
 
 The urgent demands of traders and producers have 
 created differential rates; the interests of the public and 
 consumers have maintained them ; interests, it may be added, 
 which have been little heard in any of the inquiries which 
 have taken place, but which, if any change were meditated, 
 would probably be found to have more at stake than the 
 i ail way companies. They would ask, "Why should such 
 special rates be withdrawn ? They would be losers by the 
 change. The railway companies also would be losers. So 
 too would the public interested, especially as regards perish- 
 able goods, in the more rapid and regular conveyance of 
 merchandise than is possible by water. Who would be the 
 gainer ? Not, certainly, the home producer, who would find 
 foreign goods brought direct to London by sea ; not the 
 consumer, who wishes cheap goods rapidly conveyed, and to 
 whom it is immaterial how they reach him. The fact is that 
 differential rates have arisen in no small degree out of the 
 same causes as have necessitated a classification of goods. 
 Goods of small intrinsic value will not be conveyed at all 
 unless at low rates ; only on special terms can such goods 
 produced at a great distance be brought to market. 
 
 (*) See as to this Ur. Otto Michaelis's Dijferenzialtarife der Eisenbahnen, 
 in which the natural and necessary rise of differential rates in Germany is 
 explained. 
 
36 
 
 Sometimes it is urged as an objection to differential 
 rates, that by reason of them companies sustain, on long 
 distance traffic, a loss which is made up by charges on short 
 distance traffic. Repeated, as if it were an axiom, this 
 statement is generally erroneous; though producing, no 
 doubt, a lower percentage of profits than the latter, the former 
 yields some profit, unless where undue competition operates. 
 
 To carry traffic at a rate yielding a small profit, is better 
 for a railway company than to have its permanent way for 
 many hours unused, and its plant not fully employed. It may 
 be expedient to accept traffic producing only a small per- 
 centage of profit, if it can be got on no better terms ; such 
 traffic will at least help to defray the fixed charges, which 
 must be incurred whether it is carried or not. But is a 
 company bound to do all its business on such terms, or 
 would it be desirable that it should do so ? Can the senders 
 of other traffic paying only reasonable rates, yielding the 
 company what would otherwise be admitted to be only a fair 
 profit, justly object ? and if a company be deprived of this 
 long distance traffic, will it not be forced to raise rates on 
 other traffic in order to maintain its revenue ? 
 
 But, it is also objected, differential rates deprive the in- 
 habitants of certain towns of the natural advantages of their 
 geographical position. This argument would be more per- 
 suasive than it is if it were not generally expressed in the very 
 language of Protectionists, if it were not so often a claim of 
 an exclusive right to supply certain markets, and a scarcely 
 concealed dislike to the intrusion of competition. Even sup- 
 posing that low rates, which enable the produce of remote parts 
 
 NOTE. See Extract from Sir T. Farrer's Evidence at page 66. 
 
37 
 
 of England and Scotland to be conveyed throughout the 
 length and breadth of the land may interfere with the trade of 
 manufacturers nearer London and other great towns; so 
 may the making of a railway. Places which have one, or 
 districts which are left without any, may be injured by railway 
 communication elsewhere being opened. The existence 
 of any such right as is claimed is questionable. Preserving 
 the natural advantages of one town means preventing 
 the removal of the natural disadvantages of others. 
 In truth, the abolition of differential rates would deprive 
 many places of their natural advantages. That Liver- 
 pool is on the sea, and that Birmingham is not, that 
 there is sea communication from the former to London, are 
 circumstances which railways did not create, and to which 
 they must accommodate themselves. Railway Companies 
 are not answerable for the fact that certain kinds of traffic 
 come from a point having the advantage of a sea route; 
 that there is competition at one place and not at another ; 
 and that goods may be conveyed from New York to London 
 all the way by sea, or partly by sea and partly by land. 
 
 If the rates for all traffic between intermediate places 
 were either made the same as or less than those to ter- 
 minal points, companies would be compelled to con- 
 sider whether raising the export and import rates, or 
 reducing those on local traffic, would result in the least 
 loss. If the former course were adopted, as, in the majority 
 of cases it would be, the facilities which manufacturers and 
 merchants now enjoy would be withdrawn ; it would be 
 to their interest to ship at the nearest port. The railways 
 would suffer some loss. The inhabitants of intermediate 
 places and the port towns would derive no advantage 
 
38 
 
 except the removal of what generally is merely a senti- 
 mental grievance. "What would a London draper gain if 
 the Manchester and London Shipping rate were withdrawn, 
 and if manufacturers shipped all their goods in Liverpool 
 instead of a portion of them being shipped from London ? 
 What would it avail an Essex farmer if Dutch and Belgian 
 produce were sent direct from Eotterdam and Antwerp to 
 London, instead of through Harwich ? Would farmers 
 in the South of England be any better off if French 
 eggs and butter were sent by sea to London instead of 
 through Southampton or Newhaven ? 
 
39 
 
 SECTION VI. 
 
 GROUPING HERE AND ON THE CONTINENT. 
 
 " GROUPING," is the name of the familiar arrangement by 
 which collieries or works within a given area are charged 
 equal rates, and are thus enabled to compete on equal terms. 
 In fixing the rates for traffic carried long distances, group- 
 ing stations far apart is carried out to some extent. For 
 instance, the rates for tin plates from South Wales and 
 Monmouthshire to Liverpool are the same from the works 
 between Carmarthen on the west, and Monmouth on the 
 east, the distances varying from 160 to 206 miles. So, too, 
 the rates between Scotland and places in England, south 
 of and inclusive of Yorkshire, are divided into groups 
 22 in the former, and 39 in the latter. Though the 
 practice is not of the first importance to railway companies, 
 it is not without value to them. If " grouping " were pro- 
 hibited, and the nearest collieries or works could supply 
 all the coal or goods which were required, railway 
 companies might, in some cases, earn as much net profit 
 on the traffic carried as if grouping were adopted. No doubt, 
 however, if the nearest collieries or works charged the public 
 enhanced prices, or if they could not supply the commodities 
 to the extent required by the public, the railway companies 
 would suffer. They would lose not only the traffic which they 
 
40 
 
 might have carried, but they would also suffer from the 
 lessened prosperity of districts in which they had an indirect 
 as well as a direct interest. 
 
 The chief sufferers, however, from the giving up of 
 " grouping " would be the public ; they distinctly gain by the 
 practice, though producers near great towns or sea-ports may 
 lose the benefit of " geographical position." Collieries and 
 works which are " grouped " are enabled to contribute to 
 the available supply. They enter markets from which they 
 would be otherwise shut out ; the extent of the trade is 
 thereby increased ; the price paid by the consumer may be 
 lessened. In fact, many traders admit, tacitly at least, the 
 value of the practice. 
 
 Its legality has lately been called in question. It has 
 been supposed to be prohibited by the decision of the Railway 
 Commissioners in the case of the Denaby Main Colliery 
 Company v. Manchester, Sheffield, and Lincolnshire Railway 
 Company, which came before them in January, 1880. 
 The complaint was that the rates and tolls charged to 
 the owners of the Denaby Main Colliery, for the con- 
 veyance of coal, both by railway and canal were an undue 
 prejudice and disadvantage to themselves and undue pre- 
 ference to the others within the meaning of Section 2 of 
 the Eailway and Canal Traffic Act, 1854. The railway 
 rates from the Denaby Main Colliery to Keadby, which is 
 25 miles, and to Griinsby, which is 50 miles, were 2s. IJd. 
 and 3s. Id. per ton respectively. Similar rates were charged 
 from the other collieries in the same group, although the 
 distances between Keadby and Grimsby and the Denaby 
 Main Colliery were 15 miles less than the most distant of 
 the other collieries in the group, For all coal passing to 
 
41 
 
 certain places to the eastward, the Denaby Main Colliery 
 was grouped with 48 other collieries in the same district. 
 But, except in certain cases, the collieries were not grouped 
 for coal going to the west ; on traffic sent to places in that 
 direction Denaby had to pay according to its geographical 
 position. "With regard to some portion of their traffic to 
 the west, the Denaby Main Colliery had special rates. The 
 decision of the Bailway Commissioners, which has not been 
 reversed, was that this particular grouping system did subject 
 the proprietors of the Denaby Main Colliery to undue and 
 unreasonable prejudice and disadvantage. But their decision 
 was probably upon the facts, not upon the law ; and their 
 finding really was that the group was too large, and that 
 the Denaby Main Colliery ought to be taken out of it. The 
 same question was to some extent discussed in the House of 
 Lords in the Denaby Main Colliery Company Limited v. 
 Manchester, Sheffield and Lincolnshire Railway Company 
 (L.R. 11, A.C. p. 97) ; and the observations of the learned 
 law lords do not confirm the opinion that grouping is per 
 se illegal. ( n ) If the contrary were the case if all such 
 arrangements were necessarily illegal the result would be 
 somewhat serious to trade. 
 
 A few particulars as to grouping on the Continent may 
 be mentioned. It will be found that it has been adopted 
 there for the same reasons as led to it here. 
 
 In Germany and Holland grouping is recognised. 
 There, as has been previously mentioned, mileage rates is 
 
 (!) "I think that even if it were distinctly found that the differences in 
 the charges actually made were so disproportioned to the differences in the 
 cost as to be undue and unreasonable, it would not impose an obligation to 
 charge equally." Lord Blackburn, p. 122. 
 
42 
 
 the principle on which the tariffs are based, and the State 
 practically controls the rates. But some exceptional tariffs 
 for coal and coke are not calculated upon the distance 
 from the place of origin to the station of destination. 
 Sending stations in certain cases, and sea-ports in others, are 
 formed into groups. In Germany, for instance, the sending 
 stations included in the exceptional tariff with Bremen, 
 Hamburg, and other ports in the North of Germany, are 
 divided into seven groups. The first three embrace all 
 the stations in the Right Rhenish district where coal 
 mines exist. Group 1 contains about fifteen stations from 6 
 to 24 kilometres distant from each other, in a total distance 
 of 245 kilometres to Bremen and 359 kilometres to Hamburg. 
 Group 2 contains about thirty- five stations from 1 to 19 kilo- 
 metres distant, and Group 3 seven stations at distances varying 
 from 1 to 13 kilometres. The total distances to Bremen and 
 Hamburg are 271 and 385 kilometres respectively. For all 
 stations in the same group there is one tariff, which is for 
 one fixed consignment per week : 
 
 Group 1 ... ... 49 marks per ton. 
 
 ,, 2 ... ... 50 ,, ,, 
 
 3 ,.. ... 51 
 
 If there are two fixed consignments sent regularly 
 every week for one year, a reduction is made of one mark 
 for every 10 tons, and for 
 
 3 Consignments weekly a reduction of 2 marks for every 10 tons. 
 
 3 ,, 
 
 5 ,, * 
 
 " M l <1 " * 11 
 
43 
 
 The coal stations of the Bhine Province and 
 Westphalia are also grouped for Dutch, Belgian and French 
 traffic. In the two last cases, however, the differences of 
 distance are very slight. For Dutch traffic the differences 
 of distance between the stations in Group 1 vary from 1 to 
 16 kilometres in a total distance of 218 kilometres, in 
 Group 2 from 3 to 20 in a total distance of 233 kilometres, 
 and in Group 3 from 1 to 33 in 265 kilometres. 
 
 The grouping of the ports in the North of Germany, 
 shows a much greater difference in favour of certain ports. 
 For instance, the same rates are charged from the coal 
 stations to Bremen as to Hamburg, although the former is 
 114 kilometres (71 miles) further; the distance from Dort- 
 mund to Bremen being 237 kilometres (147 miles), and to 
 Hamburg 351 kilometres (218 miles.) The same rates are 
 also charged to the following ports as to Bremen, which is 
 distant from the various coal stations from 221 to 271 kilo- 
 metres: 
 
 Kilometres. Miles. 
 
 Bremerhafen 66 41 beyond Bremen. 
 
 Geestemunde 62 38J 
 
 Harburg 103 64 
 
 Hittfeld 94 58 
 
 Nordenhamm, 40 25 
 
 Thus the " grouping " which is permitted, and indeed 
 actually carried out, by the German authorities, exceeds 
 in degree anything of the kind known on the railways in this 
 country. 
 
 In France also, " grouping " of ports is sanctioned with 
 a view to promote competition. The special import and 
 export rates from Dunkirk, Calais, and Boulogne to Paris, 
 
44 
 
 which are equal in amount, notwithstanding the differ- 
 ences in distance, may be taken as an example : 
 
 Dunkirk to Paris, 304 Kilometres. 
 Calais 296 
 
 Boulogne,, 252 
 
45 
 
 SECTION VII. 
 
 DIFFERENTIAL RATES ON THE CONTINENT. 
 
 IN France, Belgium, and Germany, there are fewer ports 
 competing with railways or with each other than in Great 
 Britain. In each of those countries the principle of mileage 
 rates has been nominally, and, to a large extent, in practice 
 adopted. But in all of them causes similar to those which 
 have here created so-called differential rates have been in 
 operation. In each of them the fact of competition by water 
 is recognised as a reason for charging reduced or special 
 rates ; such rates for export or import traffic exist, although 
 the special rates for the latter traffic are fewer than for the 
 former ; and there are also special transit rates ( ! ). All these 
 rates have been established after much consideration. "Writ- 
 ing of the discussion of the subject in the Corps Legislatif 
 in 1863, M. Aucoc observes in his well-known work, " Since 
 that solemn discussion, the principle of differential tariffs has 
 been placed beyond question." He adds : " It may be well 
 to mention also that, in the numerous judicial works on the 
 working of railways, not only the legality, but the necessity 
 and equity of conditional and differential rates have been 
 almost unanimously recognised. "( 2 ) 
 
 (*) See decret of April 26, 1862, quoted by M. A. deFoville in La Trans- 
 formation des moyens de Transport p. 68. 
 
 ( 2 ; The following are some of the opinions of French statesmen and 
 economists on the subject : 
 
46 
 
 Take first the special rates in France. Wheat may be 
 imported either via Marseilles, or via Rouen and the Seine to 
 Paris, the distance from Marseilles being 863 kilometres, and 
 from Rouen 134 kilometres. To compete with the sea and the 
 Rouen route, the Paris, Lyons, and Mediterranean Railway 
 Company charges for imported goods, special rates between 
 Marseilles and Paris. These rates have been complained 
 of as encouraging foreign trade. The answer, however, is 
 that if not conveyed via Marseilles such goods might be 
 conveyed via Rouen and the Seine to Paris. The general 
 tariff rates on the French lines are based upon a uniform 
 charge per kilometre, irrespective of any special require- 
 ments of the locality. In order, however, to remedy the 
 
 " Dans ma conviction le tarif differ enticl e st d la fois juste, conforme aux 
 veritables interets economiques et necessaires a la concurrence " M. ItouHER. 
 
 *' Les industries de transport par eau, par terre ou par chcmin de fer ne 
 vivent et ne prosperent que paries tarifs differ entiel-: C'cst en differencial sage- 
 ment leurs tarif s qu'elle attirent les marchandises et les voyc/geurs." M. 
 LEGKAND, sous-secretaire d'etat au Ministere des travaux publics : 
 
 " L' experience a demontre aux compagnies la necessite de superpower au 
 tarif reglementaire de nombreux tarifs a prix reduits.*** Ila ete recotum que 
 ceux Id memes qui se plaignaient, le plus vivement des tarifs differenticls en 
 recueillaient indircctement le benefice* Ce sont, en ejfct, ces tarifs quifoHrnis- 
 sent au trafic des grandes compagnies les masses de marchandises Its phis 
 considerables, et ce sont ces masses qui rendent possible la reduction, au pro/it 
 de tous, des tarifs generaux." M. DE FOVILLE. La Transformation des 
 moyens de Transport pp. 66, 67. 
 
 In a report to the French Chamber of Deputies by a Railway Commis- 
 sion in 1880, the Commissioners approved of special tariffs, and added : " \Vo 
 " are even inclined to suggest the development of traffic of this nature, the 
 " importance of which is not at all in proportion to the natural advantages 
 " which France derives from her geographical position and her numerous 
 " ports." Appendix 31 to Report from the Select Committee on Railway* 
 (Rates and Fares), 1882, Vol. II. 
 
47 
 
 disadvantages arising from such a system, and to meet 
 the various circumstances and requirements of particular 
 trades, numerous special tariffs are adopted with the sanction 
 of the Minister of Public Works. These special rates are not, 
 as is sometimes supposed, fixed upon any regular or uniform 
 basis. Some are adopted for the purpose of developing a new, 
 or increasing an existing trade which may be subjected to 
 competition from other districts ; others are established 
 to meet competition by sea, canal, or otherwise. Under 
 some circumstances reduced rates are arrived at by adopting 
 computed instead of actual distances ; the former being 
 sometimes based on the distance by a shorter route either by 
 rail, road or sea. But in some cases an arbitrary distance is 
 adopted. 
 
 The French railway companies have special import 
 and export rates for numerous articles in their classifications 
 which are lower than the ordinary class rates to the port 
 town, and occasionally lower than the class rates from inter- 
 mediate stations; in which case the special import and 
 export rates may apply. The following table is a comparison 
 of a few import and export rates with the ordinary class rates. 
 The latter, it should be observed, are, in some instances, 
 based on computed, and not on actual, distances. 
 
48 
 
 IH'NKIKK AM) I'AKIS. 
 
 
 At Tl \l. DiSTAJCOl, ."H-1 KlI.OMITKl S. 
 
 
 ('..MM TI:I> DISTANCE, 267 Ki I.MI TKKH. 
 
 CLASSES 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 6 
 
 
 f. e. 
 
 f. c. 
 
 f. e. 
 
 f. 0. 
 
 f. c. 
 
 f. c. 
 
 ( ) nl i nary Class Rates . . . 
 
 
 
 81*20 
 
 2f)-,S6 
 
 20-60 
 
 12-36 
 
 Import ami Kxpori 1 
 
 30-00 
 
 26-00 
 
 23-00 
 
 20-00 
 
 | ISMIO 
 
 ( 16-00 
 
 12-00 
 
 CALAIS AM) I'AIIIS. 
 
 Cl. ASSEH 
 
 Ordinary Class Raton ... 
 Import and Export Kates 
 
 AII i \i. Disi -AM i , ..".)(; Kii.nMi.-ri;rs. 
 
 COMI'I TKD DlSTANCK, 2(>7 KlI.i'MI TK1 S. 
 
 1 
 
 f. 0. 
 
 2 
 
 r c 
 
 8 
 
 f. 0. 
 
 4 
 
 r. <. 
 
 5 
 
 f. 0. 
 
 6 
 f. 0, 
 
 42-6') 
 30-00 
 
 86*58 
 
 26-00 
 
 31-20 
 23-00 
 
 26-85 
 20-00 
 
 2C-60 
 
 ( 1SMK) 
 \ 15-00 
 
 12-36 
 12-00 
 
 iu)ri.o(;\i; AND PAKIS. 
 
 CLAS 
 
 AIM Ai DZSTAXOI, 259 KM CMI ritrs. 
 ( loMPt ni' DlSTANOB, 'J.'2 Kn."Mi i 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 c 
 
 Or.linnry Class Ral H 
 Import and I'-xport ! 
 
 f. 0, 
 
 10*30 
 
 30-00 
 
 r. o. 
 26*00 
 
 f. 0, 
 29-75 
 
 23-00 
 
 f. c. 
 
 24-C6 
 
 2U-00 
 
 r. e, 
 19*60 
 
 f 18-00 
 
 ( i .von 
 
 f. 0. 
 
 u -so 
 
 12-00 
 
 (<j Until recently, tin ili.n ( t' iinporli-d and c\i'(.r1<il 
 
 goods, in forco on !))< Norllii-rn ul' FranOC h'-iilw.iy. \v:is CDinposnl of six 
 A in'\v larill is iu>\\ in hire* 1 , tin' rate.- for Mn-h trallic var\ iiif^from 
 frs 8 to 1'is. .'Id per !(:()() kil.'-nmmn H. 
 
 Km- tin- piirp- IparUOD, tin- rat.s .-liar-r.-il f..j- inipurlc.l an<l 
 
 rxpuitnl i:"i!s air >lii \MI iindiT tin; rMpeotiVfl 'lass s in \\liieh the 
 .,,(,,';, iul!\ iiieluded \\lieii ehar:j,<d at Hie ordin.i: it OH. 
 
49 
 
 DIEPPE AND PARIS. 
 
 
 ACTUAL DISTANCE, 166 KILOMETRES. 
 
 
 COMPUTED DISTANCE, 166 KILOMETRES. 
 
 CLASSES 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 
 f. c. 
 
 f. c. 
 
 f. c. 
 
 f. c. 
 
 f 0. 
 
 f. 0. 
 
 Ordinary Class Rates ... 
 
 28-05 
 
 24-75 
 
 21-40 
 
 18-10 
 
 14-80 
 
 9-80 
 
 Import and Export Rates 
 
 25-00 
 
 19-00 
 
 14-50 
 
 ( 10 75 
 \ 10-00 
 
 9-00 
 
 7-00 
 
 In some instances the special rates apply both ways, i.e., 
 for import or export goods. But many of the export rates 
 for certain articles are lower than the impoit rates ; for 
 instance, the rate for Cereals from Paris to Dieppe for 
 export is frs. 7'50, while the import rate from Dieppe to 
 Paris is frs. 9. 
 
 In addition to special rates for export and import 
 goods there are also special tariffs for transit goods subject 
 to special Conditions which appear anomalous, and have 
 given rise to complaints. The following is an illustration : 
 Both Roubaix and Rouen are spinning centres, and Epinal 
 is a weaving centre. The rate for a 5-ton load of Yarn from 
 
 Kilometres, fr. ots. 
 
 Eoubaix to Epinal 462 is 47 60. 
 
 Rouen to 537 57'40. 
 
 Antwerp to 467 27'0. 
 
 The rate for Yarn from Dieppe to Bale, a distance of 716 
 Kilometres, is 47 frs. 30 cts. The explanation of these 
 apparent anomalies is that the rates from Roubaix and Rouen 
 to Epinal are based on the local ordinary tariffs ; that the rate 
 from Antwerp to Epinal is a special import rate ; whereas the 
 rate from Dieppe to Bale is a still lower special tariff for transit 
 
50 
 
 goods. The following is an example of transit or through rates 
 from a town in Italy to a port in France. The proportions 
 of the receipts accruing to each Company and the rates 
 charged for goods carried locally between the respective 
 points are shown. It will be seen that the local rates from 
 the frontier to Paris are in excess of the charges from 
 Milan to Paris. 
 
 FROM. 
 
 To. 
 
 Distance in Kilometres. 
 
 A. 
 
 B. 
 
 Ordinary Local 
 Rates between 
 the respective 
 points. 
 
 Through Rates 
 for lots of 100 
 kilos and above 
 
 Through Rates 
 for lots of 5 
 tons and above 
 
 In the proportions due to 
 each distance. 
 
 1st 
 
 class. 
 
 2nd 
 olass. 
 
 1st 
 class. 
 
 2nd 
 
 class. 
 
 1st 
 class. 
 
 2nd 
 class. 
 
 Milan 
 Modane 
 Frontier 
 
 Ceinture Railway 
 Paris 
 
 Terminal charges 
 
 Modane... 
 Frontier 
 Paris 
 
 Havre ... 
 
 238 
 12 
 672 
 
 f. c. 
 22.14 
 
 1.15 
 68.10 
 
 f. c. 
 18.42 
 
 0.95 
 57.25 
 
 f. c. 
 22.14 
 
 1.15 
 53.50 
 
 f c 
 
 f c 
 
 f. c 
 
 18.42 
 0.95 
 46.55 
 
 40.89 
 2.90 
 94.20 
 
 3.10 
 32.00 
 1.90 
 
 36.03 
 2.50 
 81.00 
 
 3.10 
 
 28.00 
 1.90 
 
 922 
 
 15 
 226 
 
 91.39 
 
 3.10 
 23.05 
 
 76.62 
 
 3-10 
 19.60 
 
 76.79 
 
 3.10 
 17.55 
 
 65.92 
 
 3.10 
 15.35 
 
 
 
 
 
 
 Totals per 1,000 
 
 Kilos ... 
 
 1163 
 
 117.54 
 
 99.32 
 
 97.44 
 
 84.37 
 
 174.99 
 
 152.53 
 
 A. Ihe proportions accruing to the French Companies for lots under 
 5 tons remain the same for traffic from all the Italian stations named in 
 the Tariff. 
 
 B. The French Railway proportions for lots of 5 tons and above vary 
 according to the distance of the Italian town from the frontier, as will be 
 seen from the examples below : 
 
 Goods from 
 Cormons to Havre. 1st class. 2nd class. 
 
 P.L M 38.60 
 
 Quest 8.45 
 
 7.80 
 
 Goods from 
 
 Oulx to Havre. 1st class. 2nd class. 
 
 P.L.M 72.75 62.40 
 
 Quest... 15.05 13.05 
 
51 
 
 In respect of traffic for intermediate places, the French 
 railway companies may make higher charges than the rates 
 for transit traffic carried over the same portion of railway 
 beyond those places. But they may be required to charge 
 the same sums for traffic to or from any intermediate place 
 as they charge for import or for export traffic carried beyond. 
 
 In Belgium, also, differential rates are charged between 
 certain places for export and for local consumption. The 
 following are a few illustrations : 
 
 
 From 
 
 To 
 
 FOR EXPORT 
 
 FOR 
 LOCAL, USE. 
 
 10 ton lots, 
 per ton. 
 
 10 ton lots, 
 per ton. 
 
 Coal ... 
 
 Mons 
 
 Antwerp ... 
 
 Frs. 2-91 
 
 4-62 
 
 
 Jemappes ... 
 
 
 
 3-04 
 
 4-67 
 
 
 Oharleroi ... 
 
 > 
 
 2-81 
 
 4-58 
 
 
 Fountains 
 1'Eveque .. 
 
 
 
 2-8b 
 
 4-58 
 
 Bar Iron and Girders 
 
 Liege 
 
 ,, 
 
 4-70 
 
 6-65 
 
 
 Charleroi ... 
 
 . 
 
 4-W 
 
 6-39 
 
 
 Marchienne . 
 
 ... 
 
 4-54 
 
 6-33 
 
 
 
 
 per 1000 
 
 kilogrammes. 
 
 Window Glasa 
 
 Charleroi ... 
 
 ... 
 
 6-30 
 
 8-28 
 
 Neither private companies nor the State railways are 
 permitted to make concessions of any kind, or to depart from 
 the official tariff in favour of any particular firm or carrier. 
 All general or special tariffs must be approved by the 
 Minister, and published in the official paper, the " Moniteur." 
 
52 
 
 On the Prussian railways the maximum rates shewn in 
 the tariff are actually charged. But exceptions are made 
 where trade requirements, competition, and other similar 
 circumstances appear to necessitate a departure from the 
 official rates. It is not considered that railway companies are, 
 in general, bound to adjust anomalies in the carriage charged 
 for traffic arising in different districts, for one and the same 
 destination, by reducing the rates from the more distant 
 sending station. But for the sake of uniformity the rates are 
 BO adjusted if, for any reason, exceptional rates from any 
 particular district have been adopted, and if they are 
 lower than from intermediate stations nearer by rail to the 
 same destination. 
 
 In Germany under the " Seehafen Aitsnahme Tar if" 
 there are a very considerable number of special rates. For 
 instance, the rate for grain from Bremen to Cologne, a 
 distance of 324 kilometres, is 12 marks, while from Hemelin- 
 gen, which is short of Bremen by six kilometres, to Cologne 
 (318 kilometres) it is 15 marks 50 pfenning. For the 
 purpose of stimulating the traffic from the Rheihisch West- 
 fiilischen District with the German North Sea Ports, viz., 
 Emden, Leer, Papenburg, Bremen, Bremerhaven, the com- 
 petition of the rates to the Dutch ports, to which the 
 Rhine affords a cheap water conveyance, had to be taken 
 into consideration. Accordingly fiom Essen to Bremen, 
 254 kilometres, the Amsterdam rates, which are lower than 
 the tariff rates from Dortmund to Bremen, 237 kilometres, 
 were adopted, although the traffic from Essen to Bremen has 
 to pass via Dortmund, which is 17 kilometres nearer to desti- 
 nation. In another instance the German State railways 
 give a rebate of 5 marks per truckload for coal exported from 
 
53 
 
 Hamburg. " For consignments of coal for Hamburg and 
 " Harburg a rebate of 5 marks per 10,000 kilos, is made 
 " when proof is given that the coal is destined for export to 
 " Trannaine, places outside of Germany or for the German 
 " Baltic Ports." In other words, a rate of 5 marks less is 
 charged to Hamburg for coal for export than to the same 
 place for coal to be consumed in the town. 
 
 Exceptional Tariff No. 2 consists of special rates for 
 goods traffic between stations of the Royal Elizabeth 
 Railway, &c., and Gustavsburg. They, however, are only in 
 force during the period when vessels can ply on the Rhine, 
 for instance : For "Stiickgut" or piece goods from Vienna 
 to Gustavsburg the transit rate is 7m. 24pf. per 100 kilos. 
 1st class, and 6m. 60pf. 2nd class, and the local rates are 
 8m llpf. 1st class, and 7m. 73pf. 2nd class. 
 
 The effect of these special rates is to secure the traffic 
 to the Bavarian State and Hessian railways, and prevent 
 its passing over the Prussian and Dutch railways. The 
 Rheinisch Westfalischen private railways grant con- 
 tract (Abonnements Special Train) tariffs for the con- 
 veyance of coal from the Ruhr district to Nederlandish 
 stations in fixed consignments of at least 200 tons, and not 
 exceeding 300 tons. The adoption of these rates has prin- 
 cipally been prompted by the competition of the water 
 service on the Rhine. They include haulage to the sidings 
 or depots ; and they are granted only to traders who contract 
 to send at least once a week for one year a consignment of 
 from 200 to 300 tons to Nederlundish stations. 
 
 Thus it will be seen that in Germany the carriage of 
 traffic in large quantities is charged at special or reduced 
 rates. A similar principle has been recognised in this 
 
54 
 
 country also. It was held by the Court of Common 
 Pleas, in the case of Nicholson v. Gt. Western, that " Clause 
 " 31 of the Railway and Canal Traffic Act, 17 and 18 Vie., 
 "is not contravened by a railway company agreeing to 
 " carry at a lower rate, in consideration of a guarantee of 
 " large quantities and full loads at regular periods provided 
 " that the real object of the railway company be to obtain 
 " thereby a greater remunerative profit by the diminished 
 " cost of carriage, although the effect may be to exclude 
 " from the lower rate those persons who cannot give such a 
 " guarantee." The effect of such a system, however, has been 
 complained of by smaller traders as favouring the larger ones; 
 and in this country, it is not in practice generally acted upon. 
 
 The basis of through tariffs between Germany and other 
 foreign countries is the normal mileage rate to the German 
 frontier; but with the view of encouraging the export 
 trades, reduced rates are charged in favour of international 
 traffic. 
 
 The Dutch are also desirous of developing their transit 
 traffic ; and with that object so called " exceptional rates," 
 based upon lower mileage rates than the ordinary tariffs, 
 are charged from places of production in Germany to the 
 Dutch ports. Thus, there are "exceptional rates" for, 
 amongst other things, heavy iron and steel goods from 
 manufacturing towns in Westphalia to Amsterdam and 
 Rotterdam, and they are as much as 37 per cent, lower than 
 the ordinary rates. These German-Dutch rates are invariably 
 lower than the ordinary rates to inland towns lying between 
 the forwarding station and the port. The following are 
 some of the exceptional rates in force, compared with the 
 ordinary rates to inland towns for shorter distances : 
 
55 
 
 From 
 
 To 
 
 Description 
 of Goods. 
 
 In lots 
 of 
 
 Distance 
 in kilo- 
 metres. 
 
 Rate per 
 1000 
 kilo- 
 grammes 
 
 
 
 
 
 
 Marks. 
 
 Dortmund ... 
 
 Amsterdam ... 
 
 ! Heavy iron and 
 
 
 231 
 
 6-30 
 
 ... 
 
 Rotterdam ... 
 
 steelgoods,bars, 
 
 10 tons 
 
 246 
 
 6-60 
 
 
 
 Utiecht 
 
 sheets, rails ... 
 
 
 194 
 
 8' 
 
 Essen 
 
 Amsterdam ... 
 
 \ 
 
 
 199 
 
 8-20 
 
 
 
 Hotter dam 
 Utrecht 
 
 > Hardware 
 
 10 tons 
 
 214 
 162 
 
 8-70 
 8-50 
 
 ,, 
 
 Go ud a 
 
 ) 
 
 
 194 
 
 9-90 
 
 
 
 
 
 
 
 Rotterdam... 
 Utrecht 
 
 Diisseldorf ... 
 
 | Coffee,rice, cur- 
 j rants & sugar 
 
 10 tons 
 
 234 
 
 182 
 
 9-20 
 10-60 
 
 
 
 
 
 \ 
 
 Strasbourg... 
 
 Rotterdam ... 
 Utrecht 
 
 | Machinery ... 
 
 5 tons 
 
 614 
 571 
 
 24-90 
 
 Mannheim ... 
 
 Rotterdam ... 
 
 
 
 499 
 
 18-40 
 
 
 Amsterdam ... 
 Bwtel 
 
 Grain ... 
 
 10 tons 
 
 504 
 408 
 
 18-40 
 19-40 
 
 ,, 
 
 Eindhoven 
 
 ) 
 
 
 388 
 
 18-60 
 
 Frankfort ... 
 
 Rotterdam ... 
 
 v 
 
 
 479 
 
 20- 
 
 
 Arnheitn 
 
 [ Skins 
 
 10 tons 
 
 376 
 
 S3- 80 
 
 \\ 
 
 Ede 
 
 ) 
 
 
 392 
 
 24-70 
 
 Nuremberg... 
 
 Flushing 
 Arnheim 
 
 Toys 
 
 5 tons 
 
 715 
 
 606 
 
 31-84 
 
 
 
 Helmun d 
 
 \ 
 
 
 579 
 
 40'80 
 
 For traffic between Austrian and Hungarian towns and 
 the Dutch ports in certain articles there are also so-called 
 "Seaport transit rates." For instance, for dried plums, 
 apples and pears from Vienna to Rotterdam, the export 
 rate for lots of 10 tons is m. 41*50 per ton of 1,000 kilo- 
 grammes, the local rate being m. 5 1'60 per ton; for wool 
 from Buda Pesth to Amsterdam the rate per ton of 1,000 
 
 (i) These rates are exclusive of cartage and of the extra charges 
 referred to in Appendix I. 1'age vii. 
 
56 
 
 kilogrammes in lots of 5 tons, is export m, 67' 0, local 
 m. 81/30. These rates are only available for goods destined 
 for export or import ; and, as will be seen, they are con- 
 siderably lower than the rates for the same description of 
 goods for consumers in the port of shipment. There 
 are also exceptional rates for goods traversing Germany 
 to and from the German seaports and Austria and Ilun- 
 gary. The following is a comparison between the rates 
 from Bremen to a station on the Danube, and the rates from 
 the latter station to a station situated between that station 
 and the sea-port : 
 
 
 Distance 
 in Kilom. 
 
 Distance 
 in Miles. 
 
 Eaw Cotton 
 per 100 ks 
 (2 cwt.) 
 
 Tobacco, 
 per 100 ks. 
 (2 cwt.) 
 
 Bremen Regensburg 
 Nienburg Regensburg 
 
 Difference in favour of the 
 longer distance 
 
 683 
 616 
 
 427 
 385 
 
 Marks. 
 2-46 
 2-88 
 
 Marks. 
 2-49 
 3-83 
 
 (67) 
 
 (42) 
 
 0-42 
 
 1-34 
 
 In Holland no scale of rateh is universally charge- 
 able. Each railway company is authorised by the Con- 
 cession under which the railway was constructed, to 
 charge certain specified rates. But, as in England, the 
 existing rates actually charged are generally lower than the 
 maximum ; and the. fixing of them may bo controlled by the 
 State. By Article 31 of the Dutch Law the railway com- 
 panies are required to carry all goods (not excluded from 
 transport) and passengers at the rates set forth in the pub- 
 lished tariffs, and under the conditions determined by the 
 regulations, without unduly favouring special persons, 
 
57 
 
 Societies, Companies, or other bodies. By the existing law 
 the railway companies are forbidden to make special 
 arrangements for carriage at lower rates than those pub- 
 lished in the tariffs, except in the following cases : 
 
 (a). For the carriage of large quantities ; 
 (b). For the carriage of one or more truckloads 
 
 of goods at stated intervals ; 
 
 (c). For the carriage of goods intended for 
 
 charitable purposes or for exhibition. 
 
 Notice of such exceptions has to be given to the Home 
 Minister. Those reductions must be available for all goods 
 of the same class, to be conveyed on the same line, and under 
 the same conditions ; they must be immediately advertised ; 
 and they remain in force during the existence of the contract. 
 By the strict letter of the law it is provided that the same 
 rates must, over the whole of the system of the railway, be 
 charged by the company for the like article for the same 
 distance. But, in consequence of the competition by 
 inland navigation for traffic to and from places in Holland, 
 and also by the Rhine, and through Belgium for German 
 traffic, this requirement proved impossible to carry out in 
 practice. The Government have found it necessary to 
 allow the companies to enter into special contracts for 
 the conveyance of goods on such conditions as they might 
 consider it desirable to agree upon. Notice of any special 
 contract must, as before stated, be given to the Minister of 
 Commerce after it is entered into, and the official assent is 
 subject to the company agreeing to enter into a like agree- 
 ment with any other person. While such is the letter of 
 the law, virtually enjoining equal mileage rates, the practice 
 is altogether different. For any description of traffic, special 
 
68 
 
 agreements as to quantity to be forwarded and time of 
 delivery are made. The great object is to obtain traffic. 
 The published notices of such contracts contain, it may be 
 added, no information which can be utilized. 
 
 The following is an illustration of the special contracts 
 entered into and of the manner in which their existence is 
 notified : 
 
 [Co?T OP SPECIAL CONTRACT.] 
 
 SPECIAL AGREEMENT for the carriage of slow train goods 
 from 
 to 
 
 between 
 on the one hand, and the General Goods Manager of the 
 
 Railway Company, at 
 
 contracting in the name of the Direction of the the above-named 
 
 Company (or Companies) , on the other hand. 
 
 ART. I. 
 
 The first-named contracting party binds himself to have all the goods to bo 
 despatched or received by him during the current year, estimated at 
 truck loads ( kilogrammes), from 
 
 to 
 
 carried over the lines of the 
 
 Railways, in accordance with the conditions in Article IV. of the Law of Railway 
 Companies (General Rules and Regulations), of 9th January 1876 (Gazette No. 7), and 
 with the Special Bye-Laws in force for local traffic, as set forth in the tariff, for the 
 conveyance of fast and slow goods over the lines of the 
 
 Railway Company, approved by order of the Minister of the 
 
 Interior, dated 1st March, 1877, and which tariff came into force on the 1st April, 1877. 
 On the other hand the last named contracting parties bind themselves to carry the 
 goods of the first-named contracting parties during the year 1885 at the reduced rates 
 Bhown in the circular of the 
 Railway Company, dated 1885. 
 
 No use may be made of these rates for the re-despatch of goods at intermediate 
 stations, so as to obtain a cheaper rate than the direct rate. 
 Agreed to and signed in dupl. at 
 
 th 188 
 
 Contracting party No. 1. 
 
 th 188 
 
 Contracting party No. 2. 
 
59 
 
 [COPT OF CIRCULAR.] 
 
 RAILWAY. 
 
 The Direction of the Railway begs to inform 
 
 those interested that the General Goods Manager 
 
 of has been authorised to make special agreements for the 
 
 carriage during the current year of large quantities of Goods, or for regular consign- 
 ments of one truck-load or more between Stations of the 
 Railway, and between those Stations and Stations of the 
 on the following basis : 
 
 (a) For large quantities : Per 100 kilos, and 10 fern. 
 
 In consignment of 10 tons . ... in 1 cent. 
 
 ,, ,, 5 to 10 tons H cent. 
 
 ,, 3 to 5 tons 2 
 
 ,, ,, 100 kilos, to 3 tons 2| ,, 
 
 with 8 cents per 100 kilos, terminal charges. 
 (6) For regular consignments in truckloads ; 
 
 The charges as above for consignments of 10 and 5 tons. 
 
 Any fractional distances will be counted as for 10 kilometres, and the weight per 
 100 kilogrammes, without distinction for different classes of goods. Parts of 10 kilo- 
 metres and 100 kilogrammes will thus be taken as 10 kilometres or 100 kilogrammes. 
 With these exceptions the General and Special Rules and Regulations of the 
 
 Local Rate Book of 1st April, 1877, with the alterations and additions 
 made therein later, apply to these contract goods. 
 
 Consignments of 5,000 kilogrammes will be treated in the same manner as goods 
 of Class A, and consignments of 10,000 kilogrammes in the same manner as goods 
 belonging to the Classes B, C, D, and the Special Tariff. 
 
 Further information can be obtained at all the Stations ; or on application to the 
 Agent of the Railway. 
 
 [COPIES OF NOTICES OF SPECIAL CONTRACTS.] 
 From the " Dutch Guide*' of 28th January, 1886. 
 
 HOLLAND RAILWAY COMPANY. 
 
 A contract has been entered into for the carriage of a large quantity of goods over 
 the Company's lines. 
 
 Further information can be obtained at the Goods Office, at the Central Adminis- 
 tration Buildings, Droogbak, Amsterdam. The ADMINISTRATOR. 
 AMSTERDAM, 25th Jan., 1886. 
 
 From the "Dutch Guide," of 25th February, 1886. 
 COMPANY FOR WORKING THE DUTCH STATE RAILWAYS. 
 
 Various contracts have been entered into for the carriage of large quantities of 
 goods on the Southern net of the State Railways. 
 
 Further information can be obtained at the Goods Manager's Office, Moreelselaan, 
 No. 1, Utrecht. The GENERAL MANAGER. 
 
 UTRECHT, I7th-2tk Feb., 1886. 
 
 CENTRAL RAILWAY. 
 
 A Contract for the carriage of cattle has been entered into. Further information 
 can be obtained at the Goods Manager's Office, Catharijne Kade 759, Utrecht. 
 
60 
 
 The result is that a considerable portion of the traffic is 
 carried under Bpecial agreements, under conditions such as 
 the following, viz. : 
 
 The sender agrees to forward between A and B special 
 quantities, for instance : 
 
 80 tons Soap, 
 10 Sugar, 
 5 Pepper, 
 5 Tobacco, 
 
 or to forward the whole of his traffic between C and D esti- 
 mated at a specific quantity for a certain period, for instance : 
 
 400 tons Greneral goods, 
 10,000 Coal, 
 1,000 Coke. 
 
 In Italy, differential rates have been the subject of 
 public inquiry, and the representatives of some local interests 
 have asked for their abolition. But they exist ; and the verdict 
 upon them of the Parliamentary Committee of Inquiry in 
 1881 was : " It is indisputable that the system of differential 
 rates has helped to strengthen and improve the national 
 industries.'^ 1 ) 
 
 The fact of railways in other countries charging special 
 rates for import, export and transit traffic, is, of course, not 
 a proof of their being right in principle. But the foregoing 
 information may correct loose assertions or suggestions that 
 differential rates are unknown or rare elsewhere. It shows 
 that the railway authorities and the Governments who control 
 the rates in those countries, even while professing to charge 
 mileage rates, have considered it necessary, with the view of 
 promoting and protecting the interests of their trade, to 
 charge differential rates. 
 
 ( l ) Parte II., Vol. II., Sec. 82. 
 
61 
 
 In the United States, where there is much competition 
 for the conveyance of long distance interstate traffic, and 
 where remarkably low rates " war rates," as they are 
 called are charged, charges for intermediate traffic are not 
 lowered proportionately. In that country differential rates 
 have been much attacked ; they have no doubt occasionally 
 been imposed without measure or reason. But they still 
 subsist, and are found useful. As an illustration it may be 
 stated that, at the present time, the rates for the conveyance 
 of flour from Minneapolis to Milwaukee, 335 miles, and to 
 Chicago, 420 miles, are the same ; while the rate to Duluth, 
 164 miles, is only 25 per cent. less. 
 
 NOTE The Montreal Gazette, 1st April, 1836, writes thus on the subject 
 of the Railway Commission Bill : " These rates are fixed and determined by the 
 "Great American Trunk Lines, in competition with which the Tariff of the 
 " Canadian roads is necessarily regulated; to interfere with these rates would be to 
 " take away from the Canadian Companies a large amount of the gross earnings 
 " derived from a source which increases the volume of business in Canada. 
 " The discrimination which is complained of in particular localities arises wholly out 
 " of an established competition between lines reaching a favoured point. Destroy the 
 " natural consequences and natural advantages of competition lower rates and you 
 " remove all inducement to the provision of rival routes; put an end to competition, 
 " and at once an increase in rates all round will be established. The Railway Act 
 " prohibits interference by the Government in the regulation of rates until a Company 
 " is proved to earn 15 per cent, upon its invested capital. What Railway Company in 
 " the Dominion to-day is earning that profit? . . . If competition is to be 
 " made a positive disadvantage, if every inducement to particular localities to promote 
 " rival enterprises is to be swept away, the rates of existing lines will be run up in all 
 " directions to the injury not only of every locality now favoured by competition, but 
 "of those localities which consider themselves aggrieved by reason of the absence of 
 "the low rates which competition enforces." 
 
 It may be mentioned that one of the fiercest enemies of differential rates, in a 
 work recently published, declares that the only remedy is to "restore the character of 
 " public highways to the railways by securing to all persons the right to run trains over 
 " their tracks under proper regulation ! " " The Railways and the Republic " (1886), 
 p. 372, by James T. Hudson. 
 
62 
 
 SECTION VIII. 
 
 THE INTEREST OF CONSUMERS IN RATES, 
 
 OF the causes which have prevented progress in the 
 public discussion of rates, chief has been the fact that the 
 subject has been regarded too exclusively from the point of 
 view of a limited number of traders or producers. The general 
 interests of the country have been overlooked, or it has been 
 assumed that they are identical with those of particular 
 traders. Once the question is looked at from several 
 sides as it appears to those who buy as well as to those 
 who sell, and to producers in different places many of the 
 complaints made against the companies as to the existing 
 system of fixing rates are seen to be unfounded. 
 
 Those who buy commodities are interested in getting 
 them to the various markets cheaply and in abundance. 
 They wish the charge for transport to be small they wish it 
 to be small even if the distance from which the goods are 
 conveyed be great, because their sources of supply are thereby 
 increased. To the consumer the ideally perfect state of things 
 would be a tariff for the conveyance of merchandise based on 
 the same principle as the Penny Post ; commodities would be 
 conveyed at a low price, and producers over an immense area 
 would be able to send them to market. To the consumer it 
 would be in every way desirable that all disadvantages of 
 distance or " geographical advantages" should disappear. 
 
63 
 
 Accordingly, as has been before stated, plans have been 
 brought forward for making uniform rates for the same class 
 of goods within a large area, or within certain regions or 
 zones. The attainment of this is impracticable the distance 
 between various parts of the same country cannot be ignored, 
 as in the case of carrying letters or transmitting telegrams. 
 Consumers may fairly desire that the cost of transporting 
 articles from a great distance may be lowered so as to 
 permit of the influx of goods from remote parts. But unfor- 
 tunately they cannot altogether efface distance. The next 
 best thing is that the cost of transport shall not increase 
 pro rata with the distance. This reasonable desire railway 
 companies have sought to satisfy, and with what results is 
 well known. 
 
 London, for instance, formerly drew its chief supplies 
 of food from, its immediate neighbourhoods. The extensive 
 market gardens which existed, especially in the eastern 
 and western suburbs, sent their produce to town by heavy road 
 wagons, and to this day they continue to do so. But as popu- 
 lation, increased, and the demand for food became greater, the 
 facilities, both in regard to conveyance and charges, afforded 
 by the railway companies, enabled farmers, graziers, and 
 market gardeners in distant parts of the kingdom to compete 
 with those in the immediate neighbourhood of London, to the 
 obvious advantage of the consumer. In this way fat cattle 
 from Norfolk, meat from Scotland and Devonshire, fish from 
 Scotland, Ireland, and the East and West Coast of England, 
 brocoli and new potatoes from the Scilly Islands, Penzance 
 and the Channel Islands, store potatoes from Lincolnshire 
 and Scotland, and other articles of food are conveyed by the 
 railway companies at rates which, although not proper- 
 
64 
 
 tionate to those charged for shorter distances, are beneficial 
 to traders and their customers. Meat is carried from York- 
 shire, about 189 miles, at 55s. per ton ; from Aberdeen, 516 
 miles, at 67s. 6d. ; and from Stromness, in Orkney, 776 miles, 
 at 90s. per ton. Potatoes from Yorkshire are carried at 15s. ; 
 from Sunderland, 269 miles, 18s. 4d. ; and from Aberdeen, 
 30s. per ton. The effect is to open fresh markets to 
 producers throughout the country, and to supply the wants 
 of an ever increasing population at such reasonable prices 
 as would not otherwise be possible. 
 
 " To move is practically to produce," at least it often is so. 
 The consumer desires that commodities and materials should 
 be conveyed from places where they are produced cheaply or 
 are abundant, to places where they are more in demand ; that 
 coal, for instance, should go to districts where there is ore 
 without fuel available for smelting ; that timber, or excellent 
 building stone, should be conveyed to great cities ; and 
 that the small value of many raw materials, rendering it 
 impossible for them to bear more than the lowest rate of 
 carriage, should not prevent their being conveyed. This 
 demand, also, the railway companies have satisfied by charg- 
 ing rates not always exactly varying with the distance. 
 "Writing of the marvellous effects of railways, the late 
 Mr. Newmarch, in his edition of " Tooke's History of 
 Prices/* says : " Among their greatest achievements are the 
 opening up of new fields of supply, and the deepening of old 
 channels of consumption. They have brought into pro- 
 fitable use mines, forests, quarries, arable and grazing 
 districts, fisheries, harbours, and rivers, previously inacces- 
 sible. The produce arising from these various and numerous 
 sources is so much additional wealth placed at the command 
 
65 
 
 of the community.'^ 1 ) Had equal mileage rates been univer- 
 sally enforced many of those new sources of supply would 
 still be useless; the articles would not bear the cost of 
 transport. 
 
 At an}' given time in a particular market there is a cer 
 lain price which an article such as milk, wheat, or iron will 
 fetch Assuming that price to be 30s., the cost of production 
 20s., the rate of conveyance 3d. a mile, A, B, C, D, to 
 be four places, each 10 miles distant from each other on 
 the same railway, and each capable of producing an " out- 
 put" of 500 tons. The article can be economically con- 
 veyed no further than 10 x 12 -4o miles, that is from D. 
 In such circumstances consumers will have an available 
 supply of 2,000 tons. Producers at A, 10 miles distant, 
 will pay for transport 2s. 6d. ; those at B, 5s., and so 
 on. Those at A, B, and C, 10, 20, 30 miles distant, 
 will possess a considerable advantage over producers at 
 D, the place 40 miles distant. This superiority would 
 be retained by those who have long leases ; but in course 
 of time, by the action of competition, rents would rise, and 
 the advantage would tend to pass to the owners of the 
 land at A, B and C. "What would be the result, if a 
 railway company, desirous of enlarging its traffic, estab- 
 lished lower rates (say 2d. a mile) to E and F, places on the 
 same line, also 10 miles apart, and equally capable of pro- 
 ducing an " output " of 500 tons ? The particular article 
 might now be conveyed from F, 60 miles distant. The con- 
 sumer would benefit ; his available supply would now be 
 3,000 tons. In practice this might be an understatement of 
 
 (1) Vol. 5, p. 376. 
 
G6 
 
 the gain to him, for the result might be to give access to 
 districts in which the conditions of production were altogether 
 easier and cheaper. Producers at A, B and C, might tem- 
 porarily the landowners at these points might permanently 
 suffer ; but the public and other landowners would gain. 
 They would gain indirectly and directly directly in the 
 increased volume of supply, indirectly by the increase of 
 traffic enabling the company to keep down its general scale 
 
 NOTE. The evidence of Sir Thomas Farrer, given in 1881, is very deserv- 
 ing of consideration. In answer to the question, ' ' Now turning to the question 
 of inequality of charges, of which the Committee have had many complain! s 
 in fact, the bulk of the complaints have been with regard to the inequality 
 of charges from one place to another in your opinion, is this inequality 
 productive of injury to the trade of the country ? " He replies, " As far as 
 I can judge, it is not." He is asked : " I suppose you would say that while 
 on the one hand one portion of the country may be a loser, another portion of 
 the country is a gainer, and that the one may be set against the other ?" 
 He answers : " 1 am not quite certain that I should say that one portion of 
 the country is a loser, but I am quite certain that another portion is a gainer." 
 
 Again, in reply to question : tf Then looking at the question also from 
 the point of view of the public, the inland towns which are charged higher 
 than towns on the sea-coast are merely paying the natural penalty of being 
 inland towns, and not having an equally good geographical position P " He 
 states, ' ' Quite so ; on the whole I should think the inland towns were propor- 
 tionately better off than before the railways existed, because, before the 
 railways existed, sea-side towns had the water traffic to themselves, but 
 now the railways afford a kind of competition with that traffic, and bring a 
 great many places into communication with one another which could not have 
 been brought into communication before." 
 
 In reply to the question, " On the whole, do you think the country gains 
 by these rival routes to the outports ? " He says, " I do distinctly." And 
 again, in answer to the question, " According to your view, then, as far as 
 the public is concerned, it is of no consequence that a railway company 
 should so destroy the natural advantages of one place r" He replies : " I 
 think it is one purpose of the railway companies to annihilate distance as 
 
67 
 
 of charges ; and manufacturers and landowners at points E 
 and F would benefit. Such an illustration may serve to 
 show how the interests of some landowners and certain 
 traders may sometimes be on one side, and those of con- 
 sumers, other landowners, the bulk of traders, and the 
 railway companies on the other. 
 
 far as they can ; I would certainly encourage the railway companies in 
 bringing Shetland fish to the London market, even although the effect of it 
 were to lower the price of the Grimshy fish." Further, in reply to the 
 question, " As far as that is concerned, you would allow the Railway Com- 
 panies to make any differential charges they may please for or against ether 
 localities ? " He replies : ' ' I would certainly not compel them to charge upon 
 fish from Thurso and fish from Grimsby in proportion to the distances of 
 those two places. I have been accustomed, as a free trader, to consider the 
 interest of the consumer very largely ; but it seems to me that this claim 
 for regular mileage has proceeded upon the interest of one special class of 
 producers ; but it is very much to the interest of the consumer as well as to 
 one class of producers, that the people at a distance should be able to send 
 to the consuming market. 
 
68 
 
 SECTION IX. 
 
 THE REAL BASIS OF RATES. 
 
 THE Managers of English railways have not assumed 
 that they could fix rates on a " Scientific " or " Natural " 
 basis. But they have endeavoured, after consulting mer- 
 chants, manufacturers and traders, to fix such rates as were 
 required to develop the largest amount of trade; and it is 
 submitted that they have been carrying out principles which 
 will, on the whole, bear the closest examination. They pro- 
 bably have made mistakes, and in some cases entered into 
 undue competition with each other, or fostered it too much 
 between producers or ports. But the principles upon which 
 they have acted are sound ; and the instances in which they 
 have erred are exceptional. It has been the aim of railway 
 companies to make rates conform to the requirements of 
 trade, or, according to a popular expression, to charge what 
 the traffic will bear. 1 It is easy to misrepresent this prin- 
 
 (')In the Report made by M. Richard Waddington in the name of the Com- 
 mission of the Third System of Railway Tariffs, special or differential rates 
 are thus referred to. " These Tariffs are established in compliance with a 
 " trade demand which varies, as one can easily understand, according to the 
 " locality and district concerned. Like intelligent merchants the adminis- 
 " trators of the railway companies have based their rate of charges on 
 "the law of Supply and Demand . ." The celebrated expression of M. 
 Solacroup, director of the Orleans Company, sums up the considerations 
 1 ' which led to the compilation of special tariffs. ' ' In the matter of Transport 
 " Tariffs there is only one rational rule, viz., to ask of merchandise all it can pay ; 
 "any other principle is no principle." 
 
69 
 
 ciple. The commonest misrepresentation is to assume that 
 it means charging what the traffic will not bear. Rightly 
 understood, this, it is contended, is the only fair working 
 principle ; the only scientific rule, if that phrase haa any 
 clear meaning. It is only another way of saying that 
 rates should be so fixed as to enable a manufacturer or a 
 trader and the railway company to obtain a reasonable 
 profit, and that rates should ultimately be determined by 
 the law of supply and demand. The value of conveyance, 
 like the value of any other service, is not necessarily what it 
 costs, but what it is worth to him who wishes his goods 
 carried. On supply and demand, the available means of 
 transport and the demand for it depends what it is 
 worth while to give for carrying an article from A to B. 
 Obviously the demand will be affected by the nature of the 
 merchandise. If it be of a costly nature, such as manufactured 
 articles, producers of it or dealers in it can afford to pay 
 a higher rate . than if it were of low value ; a rate of 3d. a 
 ton per mile, which might be prohibitive of the carriage 
 of sand or lime, would add to the value of silk or velvet 
 only an insignificant percentage. ( x ) 
 
 The capital of English railways amounts to upwards 
 
 (i) It may be objected that under such a system companies might extort 
 exorbitant sums from traders who must send their goods. But (I) the 
 figures and returns referred to later on show that in fact the companies 
 have not made such charges, but have benefited every industry as well as 
 themselves ; (2) the statutory maxima cannot be exceeded ; (3) at many 
 points there is effective sea and canal competition ; (4) the result of increas- 
 ing the rates to a height which prevents the producer from Darning a fair 
 profit must, in the long run, be to diminish the traffic of the railway ; 
 (5) there is always a liability when high rates exist that Parliament will 
 sanction a new line, even if the chances of its financial success be not great. 
 
70 
 
 of 800,000,000. One of the problems to be considered 
 
 is how to raise ;i revenue sufficient to ])ay on this MIDI 
 even a moderate rate of interest? The Companies might 
 perliaj)S obtain it by charging for conv- icconling 
 
 to < jual mileage rates or according to cost of servir< . 
 Following such a course they might probably levy charges 
 which a great portion of the traffic would not bear; they 
 might charge, for example, as much for a. consignment of pig 
 iron as for a consignment of copper of e<jual weight cani<d 
 filial distances which is generally what cost of service 
 i:nplies. If their sole object were to obtain the nece 
 revenue, they might cease to regard the effect of rates upon the 
 interests of traders, districts, or ports ami, while conforming 
 1o the statutory maximum, they might levy rates d-ti iniental 
 to j (articular kinds of traffic. Their practice has been alt o;_" 
 different : they have sought to give full elfeettothe intention 
 which Parliament had in view in framing the rude statutory 
 classifications. They have endeavoured to suit the ch 
 to the capacity of the traders, and in tin- word- n !K) 
 
 ot'the Jiailways ( 'lauscsConsolidatinn Act <>! is iVTo accom- 
 modate them (the rates) to the circumstances of the frallic." 
 Such is the only sound prineiple working to the interest alike 
 ofiaihvays and their customers. I wore too high, and 
 
 ild imt bear them, traders would sillier ; the 
 companies them-elves would also suffer ; their t rallic woul-1 
 diminish, or would not expand as it might do. Such was the 
 principle, speaking generally, <>n which the <! n in 
 
 railwuy Acts was framed. Such, too, is the principle of 
 existing rates, only instead oi' b'-ing an hypothesis as to what 
 will suit paiticuhir kinds of traffic, the pSJafipg (dassilieation 
 and rates are ba-ed on facts carefully ascertained, verified hy 
 
 uce, and C'-rn-clcd from time to time. 
 
71 
 
 not unimportant t > boar in mind that much the 
 same principle as that which W6 ha\o diaOUSSed is applied 
 in iiyaul to indirect taxation. OT tho taxation of commo- 
 dities.^ 1 ) What an article will beai in other words what the 
 
 owner can with eonyonuMuv pay is a i v.lo alike applicable 
 to taxation and rail\\a\ rates. In more civilised countries 
 articles of prime neeessit} 1 aro not ta\rd. or V6iy littlo ; 
 artifh^s of luxury and rf ^n-at \aluo aiv taxtnl moio 
 distinction is mado lu'i\\oon \vlu\t and toli;K>oo. supir and 
 
 \\ino; nd whenever iJ is practicable, without ojumn^ tlu 
 
 tO fiaud, tv> put indirort taxrs on ad ra/orcni basis, it is 
 donr. A similar rulo is olxoiMd. so !;ir as p08liUe> With 
 tliivi-t taxMliit!!. liu-oino tax. tor example, is 
 |a\aMo only by those whoso income oxcood 150. An 
 iMuh^avour is mado tc> obtain tho rcvrnur of t l,o count ry from 
 tho PCMSIMIS ^lio i-an best atl'ord to pay, ai;d to lr\y it nj^on 
 :irtii'lrs. tho taxation of \\hieh\\ill.to thoh\ist praetieablo 
 Wttenl i'lirden on tho trade of tho country. To tix 
 
 railway ratos on any other principle than that desciibcd 
 \\oald be much liktM'aisin^ tlu> national revenue from 
 all poisons alike, rich or poor, to impose the ( Vst oms and 
 
 e upon all commodities, whether articles of Inxuix or 
 J . and iiTe>porti\o t f their value. 
 
 When rail\\a\s (TWe Qnf ftUthomod. it \\ is e\er\- 
 wliere anticipatcMl, i though it may no\v appear, that 
 
 (1) Soo 1. .: I'lr.nunny :in,. 
 
 ,:i o,miuo<lilii-s HOIK- :ir. . 
 
 M \vlurh. (>i(lcr by th<> :ii.l -f u:itnvi or :u t . :in i-rcdnrc.! 
 On luxuvK .s l,:i\ i- son. : !:i\i ^ 
 
 " on 11 'lu^y arO gOHerlly j>aul fimu IIH-OUH-. unil l!n i-t f.n> do not, 
 
 " (luur. .jvilul ol (ho country. " 
 
 . . ;:, s fOl ii 
 
the companies would be merely toll takers, and that the 
 public, or carriers, would use them in the same manner as 
 turnpike roads. Every railway was to be a highway ; every 
 one of the King or Queen's subjects was to be free to use it. 
 Many statutes bear traces of this, now apparently, curious 
 assumption. The private Acts, as a rule, contained LO pro- 
 vision for the companies themselves acting as carriers. The 
 classification of the articles to be carried and the tolls to be 
 taken were borrowed from the caial Acts. No very clear 
 principle of classification ran through the special Acts. The 
 classification in the main, however, probably accorded with 
 the considerations pointed out by Adam Smith, who drew 
 attention to the inconvenience of levying tolls on turnpike 
 roads solely according to weight. ( ! ) Speaking broadly, the 
 tolls were in accordance with the ideas as to indirect taxation 
 prevalent at the time when canals began to be largely con- 
 structed. In the original classification one may trace a desire 
 to encourage agriculture, and the manufacture of iron, and 
 
 (!) "A tax upon carriages in proportion to their weight, though a 
 4< very equal tax when applied to the sole purpose of repairing the roads 
 " is a very unequal one when applied to any other purpose, or to supply 
 " the common exigencies of the State. When it is applied to the solepur- 
 " pose above mentioned, each carriage is supposed to pay exactly for the wear 
 "and tear which that carriage occasions of the roads. But when it is applied 
 " to any other purpose, each carriage is supposed to pay for more than that 
 11 wear and tear and contributes to the supply oi some other exigency of the 
 "State. But as the turnpike toll raises the price of goods in proportion to their 
 " weight, and not to their value, it is chiefly paid by the consumers of coarse 
 "and bulky, not by those of precious and light, commodities. Whatever 
 " exigency of the State, therefore, this tax might be intended to supply, that 
 *' exigency would be chiefly supplied at the expense of the poor, not of the 
 ' rich ; at the expense of those who are least able to supply it, not oi those 
 '* who are most able." (Wealth of Nations. Book 5 part 3.) 
 
73 
 
 such articles as were, generally speaking, carried in large 
 quantities. Articles of general use in manufactures and 
 raw materials were to be carried cheaply. The omissions 
 from the lists of articles are remarkable. Such commodi- 
 ties as coal, iron ore, bricks, clay, manure, slates, stone, 
 bar and pig iron, heavy iron castings, anvils, chains, timber, 
 grain, flour, sugar, hides, dye-woods, earthenware, drugs, 
 cotton and wool, were enumerated. On the other hand, 
 machinery, hardware, hollos-ware, cutlery, glass, ale, wines 
 and spirits, grease, oils, soap, drysalteries, paints, colours, 
 paper, leather, floor - cloth, and textile fabrics, were 
 not named; they came under the general description of 
 " manufactured goods, articles, matters or things," aud 
 might be charged the highest maximum rates. The special 
 Acts contained, as a rule, an enumeration of only 40 to 50 
 articles in three to five classes. 
 
 In a few years, experience proved that the theories on 
 which Parliament had proceeded were impracticable. In tfce 
 first place, the notion that railways could be used by all 
 comers in nr.uch the same way as canals or roads was found 
 to be erroneous. Railway companies accordingly applied, 
 in their special Acts, for powers not only to find locomotive 
 power and wugons, but also to convey traffic as common 
 carriers. In 1845, the Railways Clauses Act (s. 86) autho- 
 rised every company to convey en their railway all such 
 passengers and goods as might be offered to them for that 
 purpose, and to make such reasonable charges in respect 
 thereof as luight be from time to time determined upon, not 
 exceeding the tolls by the special Act authorised to be taken, 
 The special Acts contained, as has been stated, imperfect 
 classifications of merchandise, the maximum rates charge- 
 
74 
 
 able for conveyance, and powers to charge for loading, un- 
 loading, and other services incidental to the business of a 
 carrier. About 1815 a second great change in the mode 
 of charging for conveyance came to pass ; and it is a 
 circumstance worth noting that about that date a similar 
 change took place, without concert, in France, Belgium and 
 wherever railways existed. Up to that time railways had, 
 as a rule, acted on the principle of equal mileage rates. 
 This proved disadvantageous ; it did not meet the require- 
 ments of trade ; it was particularly unsatisfactory to distant 
 traders ; it prevented the opening up of new districts ; 
 and it needlessly limited the amount of traffic. 
 
 About the time which we have mentioned, the imperfec- 
 tion of the statutory classifications became manifest. Such 
 rites as were intended to be ad valorem were not in fact on that 
 basis ; so far as it was intended to favour raw produce this 
 object was not sufficiently accomplished. The advantages of 
 differential rates, the necessity of adapting charges to the 
 traffic, the power of railways to open up new districts, and 
 develop new industries, began to be understood. A ccordingly 
 the Legislature enacted the following provision, the words 
 of which merit attention : ( l ) 
 
 (!) In the same year a Statute (8 & 9 Viet. c. 28) was passed giving 
 canal companies powers to vary tolls in the same manner as railway 
 companies might. By 8 & 9 Viet. c. 42, which was passed the same 
 session, canal companies were authorised to become carriers on their canals 
 and "to make such reasonable charges for conveying, warehousing, col- 
 " lection and delivery as they mijht respectively from time to time detcr- 
 " mine upon, in addition to the several tolls or dues which any such company 
 " or undertakers were then authorised to take for the use of the said c;in;il!-', 
 " navigations or railways." Two years later canal companies were autho- 
 rised to borrow money for the purpose of becoming carriers on their own. 
 waterways. (10 & 11 Viet. c. 94.) 
 
75 
 
 S, 90, " And whereas it is expedient that the company 
 "should be enabled to vary the tolls upon the railway 
 " so as to accommodate them to tlic circumstances of the 
 "traffic, but that such power of varying should not be 
 "used for the purpose of prejudicing or favouring par- 
 ticular parties, or for the purpose of collusively and 
 "unfairly creating a monopoly either in the hands of 
 " the company or of particular parties, it shall be law- 
 " ful, therefore, for the company, subject to the pro- 
 *' visions and limitations hereinafter and in the special 
 "Acts contained, from time to time to alter or vary the 
 " tolls by the special Aet authorised to be taken, cither upon 
 " the whole or upon any particular portion, of the railway 
 tl as they shall think fit ; provided that all such tolls be 
 "at all times charged equally to all persons, and after 
 "the same rate, whether per ton, per mile or otherwise, 
 " in respect of all passengers, and of all goods or 
 "carriages of the same description, and conveyed or 
 "propelled by a like carriage or engine passing over 
 " the same portion of the line of railway under the same 
 "circumstances, and no reduction or advance in any 
 " such toll shall be made either directly or indirectly 
 " in favour of any particular company or person 
 u travelling upon or using the line.'* 
 Personal preferences were forbidden. But the companies 
 were to accommodate their rates to the circumstances of the 
 traffic, the Legislature's mode of expressing the rule that the 
 traffic should pay what it could bear; and within the statu- 
 tory maxima, the companies were to be free to alter their tolls 
 as they thought fit. 
 
 How far this was altered by s. 2 of the " Eailway and 
 
76 
 
 Canal Traffic Act, 1854," need not here be considered. 
 It is enough to say here that, so far as s. 90 was concerned, 
 differential rates were not only not prohibited, but distinctly 
 sanctioned. S.90 required equality only in regard to traffic 
 " passing between the same points of departure and arrival, 
 and passing over no other part of the line.'^ 1 ) 
 
 For more than forty years railway companies have 
 been conforming to these principles. They have been 
 developing long as well as short distance traffic, and aiding 
 the opening of new industries. They have done so to 
 their own advantage, for though the return on the capital 
 expended on railways has been small, it has been obtained 
 on a large volume of traffic. They have been able to benefit 
 the commerce of the country to a degree which would 
 have been impracticable if, instead of rates being elastic 
 and freely accommodated to traffic, the traffic had been 
 
 (*) Earl of Selborne in Denaby Main Colliery Company v. Manchester 
 Sheffield and Lincolnshire Railway Company. L.R. 11 A.C. p. 113. 
 
 Consumers may profitably bear in mind the report of the Select Com- 
 mittee on Kailways (Rates and Fares), of 1881-2. Whilst stating "Your 
 "Committee cannot recommend any new legislative interference for the 
 " purpose of enforcing upon Kailway Companies equality of charge." They 
 add : " Some of tte inequalities of charges complained of are to the advantage 
 " rather than to the disadvantage of the public, where there is an undue 
 "preference the law now gives a remedy." They also give the following 
 illustration: 
 
 " That Greenock sugar refiners should be in the same markets as the 
 " sugar refiners of London, while it may be a grievance to London refiners, 
 " must be an advantage to Greenock refiners, and cannot be a disadvantage 
 " to buyers of sugar." 
 
 It is added that the effect of interference with the freedom to fix rates 
 according to special circumstances would in this instance be "to give a 
 " practical monopoly to the London sugar refiners who would be the real 
 ' gainers by the transaction. It does not appear to your Committee that 
 " such a result would be either just or reasonable." 
 
forced to adapt itself to the rates. Producers pay what 
 they find it worth while to pay ; they pay no more. In 
 framing the statutory classification, the Legislature assumed 
 that producers would probably find it worth while to pay 
 the authorised charges. The companies find out what such 
 producers can in fact pay, and what rates will best promote 
 traffic. What preferable rule could be substituted ? 
 
78 
 
 SECTION X. 
 
 NEW CLASSIFICATION. 
 
 ONE inconvenience incidental to the course taken by the 
 railway companies has been experienced. The actual classi- 
 fication in use does not follow the meagre, and in many 
 respects arbitrary, statutory classifications; the latter may not 
 be a guide to the former. This was one of the grievances laid 
 before the RailwayRates Committee in 1 881 and 1 882. Traders, 
 it was said, could only with difficulty ascertain the companies' 
 powers to charge for goods not enumerated in their Acts. 
 The representatives of the railways agreed with some of the 
 witnesses who gave evidence on behalf of the traders as to the 
 original classifications in the Acts of the companies having 
 become obsolete. They explained that from time to time they 
 had been rectifying, in the manner already described, the 
 defects of the statutory classification, and that, acting on 
 information communicated by manufacturers and merchants, 
 and guided by their own experience, they had framed and 
 generally adopted the Railway Clearing House Classification, 
 which embraces some 2,700 articles, and which is, on the 
 whole, fairly adapted to the requirements of trade. They 
 added that the companies weie prepared to agree to a revised 
 maximum classification in lieu of the original classification. 
 Accordingly, the Committee recommended 
 
 " That there should be adopted over the whole Railway 
 system one uniform classification of goods." 
 
79 
 
 " That terminal charges should be recognised, but be subject 
 to publication, and, in case of challenge, to sanction by the Railway 
 Commissioners." 
 
 The Board of Trade thereupon intimated to the railway 
 companies their intention of introducing into Parliament a 
 Bill with the view of carrying out some of the recommen- 
 dations of the Committee, and requested them to prepare a 
 standard maximum classification for general adoption. 
 
 This was done. The companies were also prepared 
 to assent to a codification of their maximum fate clauses, 
 having due regard to their existing powers, so as to assimi- 
 late them to the new classification. But they stipulated that 
 certain rights which at that time were considered by some 
 to "be doubtful in particular, the right of the companies to 
 charge for terminal services should, as recommended 
 by the Committee, be recognised. The Bill introduced in 
 the Session of 1863 by the Board of Trade was not pro- 
 ceeded with. Acting therefore on a suggestion which was 
 made to them, several of the companies introduced Bills 
 in the Session 1884-5, with a view to consolidate the 
 maximum rate clauses, and secure the adoption of a 
 general classification, and the recognition of terminals. But 
 the companies received from Government no such assistance 
 as they had reason to expect. The mere consideration of 
 their Bills was strongly opposed, the Board of Trade event- 
 ually joining in the opposition ; and the measures had to be 
 withdrawn. Last Session the Board of Trade introduced a 
 Bill, not only to compel the companies to do what they, by 
 their Bills introduced in the Session of 1885 sought to 
 do, but also to make it obligatory on them to accept such 
 altered rates and tolls as the Board of Trade, with the sub- 
 
80 
 
 sequent sanction of Parliament, might lay down, and to 
 submit to periodical revisions thereof lequirements so 
 contrary to the conditions on which the companies provided 
 the capital for the constmction of the railways, that it is 
 difficult to believe that the effects of the provisions of the 
 Bill could have been clearly understood. The companies 
 unanimously objected to a measure which amounted to con- 
 fiscation. It is probable that a satisfactory arrangement 
 would have been come to; but owing to the dissolution of 
 Parliament the Bill was not proceeded with. In view of the 
 desire of the public for a new classification, the recommenda- 
 tion of the Railway Rates Committee, and the general 
 assent of the companies, it may be assumed that in the 
 course of the next Session the subject will again be brought 
 forward ; and it is therefore desirable to consider the principle 
 on which a classification should be framed. 
 
 In the earliest Canal and Railway Acts the basis of the 
 classification was the nature, bulk and value of the articles 
 carried. The lowest tolls were applicable to articles carried 
 in large quantities, such as lime, dung, coals, and rough 
 stone ; the medium tolls to grain, timber, &c., and the 
 higher to manufactured goods, and the more valuable articles 
 of merchandise, such as wool, tea, wines and spirits, &c. 
 On canals, this classification was in force, notwithstanding 
 the fact that they were at first only toll takers, and did not 
 incur any cost in conveyance or any risk services and lia- 
 bilities for which the carriers charged the public beyond the 
 tolls. The numbers of articles enumerated in the original 
 Acts were, as previously stated, from 50 to 60, divided gen- 
 erally into from three to five classes. The present Railway 
 Clearing House classification, which has been revised from 
 
81 
 
 time to time, contains seven classes. The following is a com- 
 parative statement of the number of different articles 
 enumerated in it during the last 34 years : 
 
 1852 748 
 
 1860 816 
 
 1870 1,621 
 
 1880 2,373 
 
 1886 2,753 
 
 Judging from remarks which have been made (!) as to 
 the "inconsistency and want of classification," it appears to 
 be the view of some persons that this classification has been 
 framed by the companies in an arbitrary manner and without 
 regard to the necessities of trade. Nothing could be 
 more erroneous than this assumption. Of necessity it is 
 from the traders themselves that the railway mana- 
 gers have primarily obtained the information by which 
 they have been guided in framing the classification. 
 The questions to be determined in fixing rates are not 
 simple ; the elements to be taken into account are 
 many. Whether the traffic is considerable, whether the 
 cubical contents are large or small in proportion to the weight 
 whether it is carried in large or small quantities, whether 
 
 ( : ) "What is complained of by the traders is not so much the high 
 " scale of the rates as their inconsistency and want of classification, as 
 "well as the vant of facilities given by the railway companies for the 
 " development of the trade in a particular locality. That before the Eoyal 
 1 ' Commission on Depression of Trade, not a single witness, except in the 
 " shipping interest, was examined in reference to railway rates who 
 " did not complain of some act of injustice on the part of the railway 
 " companies, not so much in regard to the rates, although they were 
 " onerous and prohibitory in some cases, as to the inconsistency of such 
 " rates." Mr. Z. Cohen, House of Commons Debate, 6th May, 1886. Han- 
 sard, vol. CCGV., pages 428-9. 
 
 F 
 
82 
 
 the merchandise consists of raw materials or manufactured 
 goods, articles of necessity or luxury, must be considered. 
 The requirements of traders with conflicting interests, the 
 different views taken by the companies, and the desire to en- 
 courage special industries must be studied. In practice what 
 takes place is this. When a new article of commerce or of 
 manufacture is introduced, the merchant or manufacturer 
 calls on the railway company immediately interested to 
 have it classified and to fix the rates. Of course, there 
 is an endeavour to get it placed in the lowest possible class. 
 Such applications are carefully considered; and they are 
 from time to time discussed by the managers at their con- 
 ferences. Thus the classification is continually under 
 consideration and revision ; there is a constant process of 
 re-adjustment to the changing circumstances of trade. So- 
 called anomalies there no doubt are, and departures from the 
 basis on which a classification should be framed. But the 
 Eailway Clearing House Classification, which is the result of 
 this continual effort to adapt charges to new conditions, 
 answers reasocably, if not perfectly, the requirements of trade. 
 It must be borne in mind, in framing a new standard 
 classification, that it will be the maximum beyond which 
 the companies must not go. If adopted generally over 
 all railways, the scales of maximum rates must allow 
 scope for the local necessities and peculiarities of different 
 districts of the country. Inverness-shire and Cornwall, 
 as well as Staffordshire, Lancashire, and Yorkshire, 
 agricultural, manufacturing, and mining districts, must all be 
 considered. There must be sufficient elasticity in the scale 
 
 NOTE. The New Zealand correspondent of the "Economist" (Oct.23, 
 1886), writes from Wellington as follows : " The fact of the railways being 
 
83 
 
 of maximum rates to allow of the charges being remunera- 
 tive on short distance traffic. Groods coming under the 
 same generic name often vary considerably in cubical contents 
 in proportion to weight, value, and risk of damage, as well 
 as in the extent to which they are carried ; all considerations 
 not to be forgotten in constructing a uniform classification. 
 The following few examples, taken casually from consign- 
 ments actually carried, illustrate the remarkable variations 
 in the weights and bulk of some of the traffic : 
 
 Cubic feet to the ton. 
 
 Agricultural Implements vary from .. 70 to 1316 
 
 Boots and Shoes 76 ,, 108 
 
 Coal 34 48 
 
 Copper 10 ,, 165 
 
 Carpets 68 159 
 
 Drain Pipes 99 ,, 205 
 
 Furniture 142 3501 
 
 Hay 364 630 
 
 Holloware 106 ,, 214 
 
 Hats .., 629 1719 
 
 Iron (Bar) 7 ,, 39 
 
 (Scrap) 24 165 
 
 Luggage 95 ,, 971 
 
 Millinery 315 986 
 
 Sewing Machines ... ... ... ... 104 ,, 350 
 
 Straw 788 1256 
 
 Tobacco 63 165 
 
 Wool 266 747 
 
 Ditto (Australian pressed) 93 282 
 
 " in the hands of Government is by no means an unmixed good. A uniform 
 " system of rates is demanded everywhere. If a concession is made to one 
 " district, the rest of the colony naturally demand to be placed on the same 
 " footing, so that the Railway Department rarely meet the wishes of the 
 " public. A. private Company, if it found that the freight could be got by lower* 
 " ing the tariff on some particular item, would do so at once, and if it paid, 
 " continue it. The cost probably would be merely a few tons of coals, and 
 
84 
 
 The value of goods coming under the same description, 
 and the risk in conveying them, frequently vary as much as 
 the cubical contents. No matter what pains are taken to 
 frame a fair classification, it is to be feared that any classifi- 
 cation based on a careful consideration of the nature and 
 value of the articles carried, and all the varying circum- 
 stances of trade and an omission to consider any such 
 element would work injustice must appear to some traders 
 to be more or less anomalous. Some will still consider 
 they have a grievance to lay before Chambers of Commerce. 
 
 It may be well to state how the problem has been dealt 
 with on the Continent. The particulars given may be 
 instructive to those who hastily recommend an adoption 
 of the systems in force abroad. 
 
 In France the classification of goods and rates is in a 
 transition state ; and a large portion of the trading and 
 manufacturing classes are discontented with the charges at 
 present made by the railway companies. "With a view of 
 simplifying the tariff, in 1879 the Minister of Public Works 
 took steps to frame for adoption on all the French Bail ways 
 a classification divided into six classes. Subsequently an 
 attempt was made to prepare a uniform scale of railway rates 
 diminishing according to distance. But after a long enquiry, 
 and full consideration, the proposal was abandoned. In 1883, 
 the Paris, Lyons, and Mediterranean Railway Company pro- 
 posed the adoption of a revised tariff, which professes to 
 afford, on the whole, a reduction in the rates as compared 
 with the former tariff. It was sanctioned by the Minister of 
 
 " a small amount for wear and tear. Many trades, notably the timber trade, 
 " are very much hampered by the Government tariff which docs not admit of 
 " differential rates." 
 
 This is a sample of the inconveniences attending uniformity. 
 
85 
 
 Public Works in August, 1885. It consisted of six classes for 
 general goods in any quantities, and six for goods of the 
 special classes, which are generally carried in lots of one 
 and five tons. The latter six classes were in substitution for 
 the many special tariffs formerly existing. The Eastern of 
 France Bail way Company also revised their tariff, re-adjust- 
 ing the classification, and reducing the number of their 
 special tariffs to 28. An article formerly carried at a special 
 tariff between certain specified stations is now charged at the 
 fourth class rate. But when carried generally, and not between 
 particular stations, such an article remains, as before, in the 
 second class. The Northern of France Railway Company 
 have also revised their tariffs on a somewhat similar basis. 
 
 Long debates on the subject of the charges under the 
 new tariffs, and on the railways generally, took place in 
 the Chamber of Deputies, in February and March last. 
 There were complaints that the " reformed tariff/' and par- 
 ticularly that of the Paris, Lyons, and Mediterranean Com- 
 pany, had not brought about the anticipated reductions, and 
 that, while in some cases lower rates for certain goods carried 
 in large quantities had been conceded, higher rates had been 
 fixed for similar goods sent in small quantities. The rate 
 for 5 ton lots, for instance, is lower ; but that for lots 
 under 5 tons is generally higher. The larger traders had 
 derived a benefit from the change ; but the small traders and 
 consumers compared with what they were, are placed at a 
 disadvantage. So far the other companies have not made 
 any alteration in their tariffs. 
 
 Thus it will be seen that in France there is no 
 uniform classification. The tariffs of the companies, with 
 the exception of the Quest, NOD I and Est, are composed of a 
 different number of classes, and the number of articles 
 
8G 
 
 enumerated in the classification also varies. Articles, too, are 
 not included in the same classes on all lines. For instance, 
 the Quest enumerates 1686, the Nord 1519, and the Paris, 
 Lyons, and Mediterranee, 1425. The tariffs are divided 
 by the Compagnie de 1'Ouest into 6 classes. 
 1'Est 6 
 
 i, 99 99 du Nord 6 ,. 
 
 ,, Paris, Lyons, ") 6 general tariff classes 
 
 Mediterranee j 6 special 
 ,, ,, d'Orleana 4 classes. 
 
 duMidi 5 
 
 del'Etat 9 
 
 The following examples show how the classifications 
 vary : 
 
 ARTICLE. 
 
 Quest. 
 
 Est. 
 
 Nord. 
 
 Paris- 
 Lyons- 
 Jiedite- 
 ranee. 
 
 Or- 
 leans. 
 
 Midi. 
 
 Etat. 
 
 
 Class. 
 
 Class. 
 
 Class. 
 
 Class. 
 
 Class. 
 
 Class. 
 
 Class. 
 
 Ironmongery 
 
 4 
 
 2 
 
 2 
 
 2 
 
 2 
 
 3 
 
 2 
 
 Colours (common) in 
 
 
 
 
 
 
 
 
 Casks 
 
 4 
 
 1 
 
 1 
 
 1 
 
 3 
 
 3 
 
 4 
 
 Manure 
 
 6 
 
 6 
 
 6 
 
 6 
 
 4 
 
 Spec'l 
 
 6 
 
 Flour 
 
 4 
 
 4 
 
 4 
 
 4 
 
 3 
 
 3 
 
 4 
 
 Wool (raw) 
 
 4 
 
 2 
 
 2 
 
 3 
 
 3 
 
 2 
 
 2 
 
 Machinery (packed) 
 
 4 
 
 3 
 
 3 
 
 3 
 
 1 
 
 3 
 
 3 
 
 China in Casks and 
 
 
 
 
 
 
 
 
 Crates 
 
 3 
 
 1 
 
 1 
 
 1 
 
 2 
 
 2 
 
 1 
 
 Raw Sugar 
 
 5 
 
 4 
 
 4 
 
 4 
 
 3 
 
 3 
 
 4 
 
 Potatoes in Bags 
 
 5 
 
 4 
 
 4 
 
 4 
 
 3 
 
 3 
 
 4 
 
 Window Glass 
 
 4 
 
 3 
 
 3 
 
 3 
 
 2 
 
 3 
 
 3 
 
87 
 
 In Germany, Holland and Belgium there is no such 
 classification as is in force in this country. Generally 
 speaking, goods of all descriptions, except wagon loads of 5 
 and 10 tons, are charged according to weight, irrespective 
 of their nature or value. In Germany the railway tariff 
 consists of 8 classes, viz. : 
 
 1. Grande Vitesse . 
 
 2. " Stuckgut, " or 
 " Piece " Goods. 
 
 3Ai t Wagon Loads 
 
 4B. 
 
 6. Special Tariff, I. 
 
 7. 
 8. 
 
 which includes articles of all 
 
 descriptions carried by 
 
 passenger train. (!) 
 Which includes articles of all 
 
 descriptions of less than 
 
 5 tons carried by goods 
 
 train. 
 Articles of all descriptions in 
 
 truck loads of 5 tons not 
 
 mentioned in the special 
 
 classes. 
 Articles of all descriptions in 
 
 truck loads of 10 tons. 
 Certain articles specified in 
 
 the classification, in truck 
 
 loads of 5 tons. 
 
 Ditto in 10 ton lots. 
 
 The system actually existing in Germany is a com- 
 promise. Previous to 1878 different systems existed in 
 
 ( l ) Grande Vitesse goods are not always carried oy passenger train. 
 They can be carried by any train the railway company may determine, 
 provided the time allowed by law, which is half the time for ordinary goods, 
 is not exceeded. 
 
88 
 
 North and South Germany. The classification in use in the 
 former was governed by the value of the goods ; while that 
 in force in the latter was framed with particular reference 
 to their weight and measurement. In that year, however, 
 an attempt was made to reconcile the two systems ; the 
 " Reform Tariff," as it is called, was established on all the 
 German railways. There was a concession to the Southern 
 system ; rates for goods in covered trucks in five or ten ton 
 lots were adopted. The North system, on the other hand, 
 was recognised by establishing the Special tariff classes, in 
 \vhich the relative value of the goods has been taken into 
 consideration. The actual classification is therefore dual; it 
 is a compromise between two totally different systems. 
 Obviously it does not accord with the requirements which 
 have been put forward by, or on behalf of, traders in this 
 country. 
 
 In Belgium, also, there is practically no classification 
 except for traffic in full truck loads. The tariff consists of 
 
 Tariff No. 1 Articles of all descriptions 
 
 up to 5 kilogrammes (11 Ibs.) 
 carried by passenger trains. 
 
 Tariff No. 2 Articles of all descriptions 
 
 carried by ordinary pas- 
 senger trains, but chiefly 
 articles of all descriptions 
 up to 200 kilogrammes (4 
 cwt.) earned by goods 
 trains. 
 
 Tariff Xo 3 ~ Class I. Goods of all descriptions from 
 
 8 cwt. and upwards, con- 
 veyed by goods trains. 
 
89 
 
 f Certain goods specified in 
 Tariff No. 3. Class II. ) ,, r -a 
 
 j the classification, m truck 
 
 ,,IIL ( bads of 5 tons. 
 IV. Certain goods specified in 
 the classification in truck 
 loads of 10 tons. 
 
 For Tariffs 1, 2, and Class I. of tariff JSTo. 3, there is 
 practically no classification. All goods up to the specified 
 weights are included, without reference to their value or nature. 
 Only in respect of the wagon-load classes of tariff No. 3 does 
 any classification exist. In this classification, which applies 
 to all the Belgian railways, about 639 articles are 
 enumerated. It is assumed to be framed with reference to 
 the value of the goods, the mode of transit, the amount of 
 the company's responsibility, and the circumstance of the 
 goods being carried in open or covered trucks. 
 
 In Holland, the classification is very similar to that 
 which exists in Germany. Goods are divided into two classes, 
 i.e., " Stuckgut " or " Piece " goods, to which belong all 
 consignments less than 5 tons carried by goods train ; and 
 " Truck Load " goods, which includes goods in truck loads 
 of 5 or 10 tons, or which pay as for those weights. The 
 "Stiickgut" class is subdivided into two classes, and the 
 " Truck Load " class into four classes. The total number 
 of articles enumerated in the classification is about 242. 
 Although the bases of the tariffs charged for conveyance 
 differ, the classification is practically the same on all the 
 railways in Holland. The following is an example of the 
 classification of goods on the Dutch Rhenish Railway. It 
 will be seen that such articles as coffee, cheese, butter, in 
 consignments of less than 5 tons, are included in the same 
 
90 
 
 class as coal, coke, gravel and raw iron ; a feature not likely 
 to be imitated by admirers of the ".scientific classification " 
 supposed to exist abroad. 
 
 
 I 
 
 n Lots < 
 
 >f 
 
 DESCRIPTION OF GOODS. 
 
 Less 
 than 
 5 Tons 
 
 5 Tons 
 and 
 above. 
 
 10 Tons 
 and 
 above. 
 
 Bark, asphalt pipes, petroleum, vinegar, clay 
 drain pipes, oils, paper, trees, butter, fresh 
 meat, coffee, spirits, cheese, hair, dyeing 
 earths, pencils, sugar, sumac 
 
 II. 
 
 A 
 
 
 Raw tobacco, pitch, lithographers' stone, cabbage 
 and vegetables in bulk, herrings, window- 
 glass, dye-woods, cotton yarn, Glauber-salts, 
 soda, cotton twist, wool, jute ... 
 
 II. 
 
 B 
 
 
 Raw asphalt, ashes, potato meal, beetroot, seeds, 
 sheet iron, iron pipes, iron wire, lime, linseed, 
 cake, lead, parts of machines, pasteboard, 
 corn and grain, raw sugar, iron 
 
 II. 
 
 C 
 
 
 Guano, grindstones in the rough, stcne troughs, 
 coal tar, worked stones, sleepers, spath mill- 
 stone, fuel, marble in blocks 
 
 II. 
 
 D 
 
 
 Raw iron, cast iron, gravel, wood, coal, limestone, 
 pebbles, raw chalk, clay, manure, coal, coke, 
 
 II. 
 
 D 
 
 SR 
 
 
 
 
 
 This diversity of system and practice will give some 
 idea of the difficulty experienced in framing a classification 
 suitable to each country, or, indeed, to various portions of the 
 same country. The difficulty will be still better understood 
 by observing the different manner in which goods placed in 
 the 2nd Class, under the Railway Clearing House Classifi- 
 cation, are classified in other countries. 
 
91 
 
 CLASSES. 
 
 
 
 FRANCE. 
 
 
 
 
 
 CANADA, 
 
 
 Q 
 
 
 
 
 ^ 
 
 
 
 
 
 DESCRIPTION OF 
 
 5 
 
 
 
 
 
 
 t-H 
 
 
 
 
 
 
 
 (-3 
 
 . 
 
 ^ 
 
 S 
 
 3 
 
 HOLLAND. 
 
 GERMANY. 
 
 
 
 S 
 
 GOODS. 
 
 
 
 I 
 
 ' 1 
 
 ,4 
 
 M 
 
 
 
 1 
 
 
 
 
 H 
 
 fc 
 
 o 
 
 
 W 
 
 
 
 O" 
 >, 
 
 S 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 Aerated Waters 
 
 2 
 
 4 
 
 5 
 
 4 
 
 1 
 
 Gen. Tariff 
 
 Gen. Tariff 
 
 3 
 
 4 
 
 Agricultural Machines 
 
 
 
 2 
 
 2 
 
 2 
 
 1 
 
 H 
 
 M 
 
 1,1} 
 
 .. 
 
 
 
 
 
 
 
 
 
 &D1 
 
 
 ,, Seeds .. 
 
 
 4 
 
 4 
 
 4 
 
 3 
 
 B 
 
 S. T. 1 
 
 2 
 
 5 
 
 Bacon and Hams 
 
 i 
 
 2 
 
 4 
 
 2 
 
 1 
 
 Gen. Tariff 
 
 Gen. Tariff 
 
 2 
 
 4 
 
 Bedsteads 
 
 
 2 
 
 3 
 
 2 
 
 2 
 
 j > 
 
 S. T. 1 
 
 1 
 
 . . 
 
 Biscuits 
 
 t 
 
 1 
 
 1 
 
 1 
 
 1 
 
 
 Gen. Tariff 
 
 2 
 
 4 
 
 Cattle Food 
 
 
 3 
 
 3 
 
 3 
 
 3 
 
 B' 
 
 S. T. 2 
 
 3 
 
 5 
 
 Cheese (Packed) 
 
 i 
 
 2 
 
 4 
 
 2 
 
 1 
 
 Gen. Tariff 
 
 Gen. Tariff 
 
 3 
 
 4 
 
 Cider in Cases 
 
 ( 
 
 2 
 
 4 
 
 2 
 
 1 
 
 ,, 
 
 ,, 
 
 3 
 
 4 
 
 Colours and Paints, 
 
 
 
 
 
 
 
 
 
 
 Common 
 
 9 
 
 1 
 
 4 
 
 1 
 
 1 
 
 }> 
 
 n 
 
 3 
 
 5 
 
 Confectionery in Casks 
 
 j 
 
 1 
 
 1 
 
 1 
 
 1 
 
 ,, 
 
 M 
 
 1 
 
 4 
 
 Flax, Raw 
 
 t 
 
 3 
 
 4 
 
 3 
 
 2 
 
 ,, 
 
 S. T. 2 
 
 3 
 
 5 
 
 Hemp, Raw 
 
 i 
 
 3 
 
 4 
 
 3 
 
 2 
 
 }} 
 
 )? 
 
 3 
 
 5 
 
 Leather, Undressed . . 
 
 
 3 
 
 4 
 
 3 
 
 1 
 
 ,, 
 
 Gen. Tariff 
 
 3 
 
 5 
 
 Osiers 
 
 
 2 
 
 4 
 
 2 
 
 2 
 
 B 
 
 S. T. 2 
 
 2 
 
 6 
 
 Preserves, Casks 
 
 f 
 
 3 
 
 4 
 
 3 
 
 1 
 
 Gen. Tariff 
 
 Gen. Tariff 
 
 2 
 
 4 
 
 Cotton Yarn for Weav- 
 
 
 
 
 
 
 
 
 
 
 ing 
 
 " 
 
 2 
 
 2 
 
 2 
 
 1 
 
 " 
 
 " 
 
 3 
 
 5 
 
 The following is a comparison of the number of articles 
 included in each classification, so far as such exists, in 
 France, Germany, Holland, and Belgium : 
 
 CLASSES. 
 
 ENGLAND. Mineral. 
 Railway Clear- 
 ing House... 80 
 
 Special. First. Second. Third. Fourth. 
 446 453 500 672 319 
 
 Fifth, at Mileage. 
 Scale. &c. 
 
 180 103 
 
 FRANCE. 
 
 Sixth. 
 
 Fifth. 
 
 Fourth. 
 
 Third. 
 
 Second. 
 
 First. 1 
 
 Quest 
 
 36 
 
 329 
 
 533 
 
 250 
 
 212 
 
 326 
 
 P. L. & M 
 
 35 
 
 104 
 
 231 
 
 265 
 
 279 
 
 511 
 
 Nord 
 
 36 
 
 106 
 
 253 
 
 279 
 
 288 
 
 557 
 
 (') The first class in France corresponds with the highest or fifth 
 class in England. 
 
92 
 
 CLASSES. 
 
 BELGirM. 
 
 Fourth. Third. Second. First. 
 
 168 177 294 Goods of all descriptions 
 
 in part loads. 
 
 HOLLAND. 
 
 B. c. 
 
 158 84 
 
 GERMANY. 
 
 Special Tariff 1. Special Tariff 2. Special Tariff 3. 
 
 314 119 176 
 
 The number of articles which the companies proposed 
 to provide for in the standard classification by their Bills 
 deposited in the Session of 1885, was 2,656, classified as 
 
 under : 
 
 CLASSES. 
 
 Mineral. Special. First. Second. Third. Fourth. Fifth. 
 86 389 469 483 682 334 213 
 
 Assuming that any maximum classification to be framed 
 should comply with the conditions which have been already 
 stated, and that it should accommodate trade in all districts 
 of the country, the classification suggested by the railway 
 companies in their Bills will bear the test of any fair 
 inquiry. When the change which we have indicated is 
 carried out when the maximum rate clauses of the com- 
 panies are consolidated and revised on an equitable basis 
 having regard to the present powers and to the new 
 classification traders will be able easily to ascertain whether 
 the charges made by the companies are within their Parlia- 
 mentary powers. 
 
93 
 
 SECTION XL 
 
 TERMINAL CHARGES. 
 
 WE come to another common complaint against railway 
 companies, the one which, next to that relating to 
 differential and import rates, has lately been most heard of. 
 From time to time during the last 30 years, and especially 
 of late, the right of railway companies to make charges for 
 what are known as terminal services beyond the remuneration 
 for actual conveyance has been challenged. On the part of 
 the railway companies there has been no change of practice. 
 No new kind of charges has been imposed ; those in dispute 
 have been made from the very beginning of railways in this 
 country. Introduced by the common carriers upon the 
 railways, they were continued by the railway companies. 
 On the strength of the right to receive these charges, 
 companies took upon themselves the carrying business, 
 constructed large goods stations, with vast siding and other 
 accommodation, and in providing land, premises and appli- 
 ances, expended an enormous amount of capital, not necessary 
 for earning the statutory mileage rates. The legality of 
 such charges has been, after full argument on appeal, up- 
 held by the Court of Queen's Bench (Hall v. London Brighton 
 and South Coast Railway Company, L. E. 15 Q. B. D. 505) : 
 their equitable character is not less clear, and the con- 
 tention to the contrary is, in the words of the joint judgment 
 
94 
 
 of Mr. Justice Wills and Mr. Justice Mathew, " singularly 
 unreasonable." 1 
 
 We nave already mentioned the anticipation, in the 
 early days, that the railway companies would merely furnish 
 the railway and charge tolls for the use of it by carriers and 
 others, who would employ private locomotives, carriages and 
 wagons. The notion was borrowed from the experience as 
 to canals and highways ; and it has been well said that " no 
 proper understanding of a good deal of our railway legis- 
 lation, and pre-eminently of clauses relating to tolls or 
 charges, can be arrived at, unless it (the theory) is firmly 
 grasped and steadily kept in view." 2 On railways, as on 
 canals, there were three states of circumstances which it was 
 considered must be provided for : First a railway company, 
 like a canal company, might simply provide a highway, 
 looking to the tolls alone for the use of that highway 
 for a revenue upon their capital ; secondly, without themselves 
 being carriers, the railway company might provide trucks 
 and locomotive power, as the canal companies provided boats 
 and haulage power on the canal; or, thirdly, both the 
 canal company and the railway company might be carriers 
 upon the highway which they themselves had provided, and 
 find the wharves, stations, other necessary premises, accom- 
 modation and appliances, and the capital for that purpose. 
 
 The owners of lands along the banks of canals were 
 entitled to construct, in connection with them, wharves, 
 
 Q Mr. Justice Manisty delivered a separate Judgment. See note at 
 foot of page 99. 
 
 ( 2 ) "Wills, J., in Hall v. London Brighton and South Coast Railway 
 Company, p. 336. See also Field J. in Brown r. Great "Western Railway 
 Company, L. R. 9 Q. B. D., p. 751. 
 
95 
 
 basins and warehouses ; and we find in the earlier rail- 
 way Acts, and in the Railways Clauses Consolidation Act 
 1845 (subject to which all railways since that date have been, 
 constructed), similar powers with respect to railways conferred 
 upon adjoining owners. They were authorised to construct 
 sidings and junctions for the purpose of making commu- 
 nications between their own lands and the railway. It was 
 intended that a trader should load his wagons on his own 
 premises, carry them over the railway and take them off the 
 railway again at another siding or communication, paying 
 the railway company a mere toll for the use of the length 
 of line over which the traffic was in fact worked. Nor 
 was this a mere theory. For many years upon some of the 
 railways in this country the work of carrying merchandise 
 was, to a considerable extent, actually performed by large 
 firms of carriers, such as Pickfords, and others, who provided 
 their own siding accommodation with the railways,and built or 
 rented their own stations and warehouses. During this period 
 the railway companies, so far as this part of their traffic was 
 concerned, merely provided the highways, the wagons and 
 the engine power, and hauled the traffic from its place of origin 
 to its destination ; and they undertook no responsibility as 
 common carriers in respect of the goods. The carriers provided 
 the station accommodation, loaded and unloaded the goods, 
 checked and weighed them, and handed over the loaded or 
 unloaded trucks to the railway company in a convenient 
 position for the engine to be attached to them. Of course, the 
 carriers, who undertook all liability as such, charged the public 
 not only the tolls which they paid to the railway company, but 
 also a considerable additional sum to cover the risk of their 
 Common Law liabilities, the cost of providing station and ware- 
 
96 
 
 house accommodation, clerkage and invoicing of goods, and 
 other services beyond the haulage of the trucks. 1 Upon some 
 lines the state of things which we have described existed 
 for many years. But gradually the railway companies 
 began to undertake the duties and responsibilities of carriers. 
 They purchased or built, often at enormous expense, the 
 necessary terminal accommodation which, under the previous 
 system, had been provided by private carriers ; and they 
 made to the public charges similar to those which the carriers 
 themselves had before made for corresponding accommoda- 
 tion and services. The companies raised the large sums 
 required to furnish this accommodation and for their 
 working capital as carriers, upon the faith that they 
 were entitled to stand in all respects, in the place of the 
 carriers or forwarding agents, and to make reasonable charges 
 for accommodation and services not covered by, and obviously 
 having no relation to, the mileage rates for simple haulage 
 from point to point. 
 
 This view has been sanctioned by the Legislature in almost 
 all Railway Acts passed since 1845. The charges which a 
 company are authorised to make are of three kinds first, 
 tolls for the use of the railway as a highway ; secondly, 
 charges, in addition to the tolls, for the use of carriages, 
 wagons, and for locomotive power where such of them are 
 provided by the company in other words, for conveyance 
 
 ( J ) Mr. William Pierssene, Manager to Messrs. Pickford & Co., 
 stated in his evidence before the Railway Commissioners in the case 
 of Kempson v. The G. W. E. (4 N & M 4 26), that in addition to the 
 amount of the railway companies' tolls, a sum varying from tivelve to 
 eighteen shillings a ton was paid by the customer for the services which 
 now form the subject of terminal and cartage charges. 
 
97 
 
 along the railway. A third class of charges becomes due when 
 the company not merely convey the goods, as they would 
 for the carriers who had their own station accommodation 
 and staff, but are themselves the carriers ; cases where, 
 in addition to providing the highway, vehicles, and loco- 
 motive power, they perform " such services as are incidental to 
 the duty or business of a carrier." These services include 
 the providing of stations, warehouses and sheds, where goods 
 are received, sorted, loaded, covered, checked, weighed, and 
 labelled, and trucks marshalled for convenient removal to 
 their various places of destination, and the maintenance of 
 a large staff of clerks, book-keepers, porters, workmen, 
 engines and horses necessary for these operations. In this 
 last case the company are entitled to make, in addition to the 
 charges proper to highway, rolling stock, and locomotive power, 
 a reasonable charge for the services, often costly and onerous, 
 rendered in their totally different capacity of carriers. 
 
 It is undisputed that if the railway companies 
 were not carriers and acted as toll takers only, they 
 would be entitled to claim their full tolls. But what would 
 be the result if they put in force such a right ? The carriers 
 or forwarding agents who would replace them, naturally 
 would, as they formerly did, levy such payments as would 
 cover the cost of station accommodation, and all the services 
 performed in respect of the carriage of goods beyond the 
 mere conveyance along the railway. Can it have been 
 in the contemplation of the Legislature that railway 
 companies were not to be entitled to make the same 
 charges ? 
 
 Suppose a Bill were before Parliament for the con- 
 struction of a railway, and a clause requiring that 
 
98 
 
 the mileage rates should cover the cost of terminal 
 accommodation were inserted, and the promoters accepted 
 the Bill with such a restriction. The construction of 
 a station at the terminus of the railway in a large town 
 is very costly, and it would be to the interest of the 
 company to make the station outside the town where 
 land and works would be cheap. They would thus save 
 capital upon which they would obtain no return, and, at 
 the same time, they would be entitled to charge the public 
 the full cost of cartage, whatever the amount might be. 
 The Great "Western Company, for instance, might have 
 constructed their terminus at Wormwood Scrubs from which 
 place the cost of cartage to the City would probably be ?s. (id. 
 per ton, which the public would have to pay. "With the 
 view of affording better acccmmodation and of reducing the 
 expense of cartage, they have erected a station under Smith- 
 field Market, at a cost, in interest on outlay, main- 
 tenance, and other terminal expenses of an average of 
 3s. 8d. per ton. According to the opponents of terminal 
 charges the Great Western Company are only entitled 
 to be paid a mileage rate proportional to the distance from 
 Wormwood Scrubs to Smithfield, that is, as for seven miles, 
 to cover the use of the railway and the station. To take 
 other illustrations, could it be supposed that the London 
 and North Western Railway Company would have spent 
 several millions of Capital in providing expensive station 
 accommodation in the immediate vicinity of the Docks in 
 Liverpool, instead of receiving and delivering the traffic at 
 Edge Hill, or that companies would have constructed vast 
 stations in London, Manchester, Leeds, and many other 
 important places, unless the cost was to be covered by pay- 
 
99 
 
 ments in addition to the mileage rates ? S J inequitable and 
 opposed to the real interests of traders is this contention 
 that it is difficult to understand how it could ever be put 
 forward. 
 
 One of the allegations before the Eailway Bates 
 Committee in 1881-2, was, that the companies carried some 
 traffic at too low rates, and, to compensate themselves, im- 
 posed higher rates than otherwise would be necessary on 
 other traffic. Now, if railway companies were not allowed 
 to charge for terminal accommodation and services, one effect 
 would be that in consequence of the cost of the construction 
 and the expenses of stations, short distance traffic would be 
 actually carried at a loss. 
 
 In recent years terminal charges have been recognised 
 in every Act for the construction of new railways, by the 
 introduction of a clause of which the following is a 
 copy : 
 
 " No station shall be considered a terminal 
 station in regard to any goods conveyed on the 
 Railway, unless such goods have been received 
 thereat direct from the consignor, or are directed 
 to be delivered thereat to the consignee." 
 
 If the railway companies were not entitled to charge 
 terminals for the use of the stations, the insertion of 
 such a clause in Acts of Parliament would be meaning- 
 less ; the intention of the clause evidently was that the 
 companies may not charge terminals in respect of any 
 intermediate station or junction, and the fair inference is that 
 they may do so at the sending or receiving station. ( ] ) 
 
 (') Hall v. L. B. & S. C. Railway. Manisty, J., L.R,, 15 Q.B.D. p. 544. 
 
100 
 
 The equitable nature of the claim of the railway 
 companies to make terminal charges has been admitted on 
 several occasions by some, if not by all, of the railway com- 
 missioners. Their refusal to consider terminal charges as 
 legally justifiable has arisen only from the doubt which 
 existed in their minds as to the strict construction of the 
 words of the clauses; and that question has now been 
 decided by the Queen's Bench Division in " Hall v. The 
 London Brighton and South Coast Raihcay Company" 
 Some portions of the judgment of the Court in that case 
 deal only with the construction of the sections of the par- 
 ticular Private Acts of the defendant company; but the 
 remarks of the Judges upon the general principles which 
 govern the railway companies, claim to make terminal 
 charges, explain so clearly their natural equity as well as 
 their legality, that they may not improperly be quoted : 
 
 " This notion of the railway being a highway for the common use of 
 " the public, in the same sense that an ordinary highway is so, was the 
 " starting point of English railway legislation. It is deeply engrained in 
 " it. In the early days of railways it was acted upon at least occasionally, 
 " and in respect of goods traffic, and although it enters but slightly into 
 " modern railway practice, no proper understanding of a good deal of our 
 11 railway legislation, and pre-eminently of clauses relating to tolls or charyeK, 
 " can be arrived at, unless it is firmly grasped and steadily kept in view. Those 
 " states of things were from this point of view to be expected and to be 
 11 provided for by legislation. The company might be merely the owners 
 " of a highway and toll takers for the use of it by other people with their 
 " own carriages and locomotives. That state of things would be worked 
 " out by the railway company possessing the mere line of railway from end 
 " to end, and by the persons making use of it, buying or renting conti- 
 " guous land whereon to keep their rolling stock, and have their offices. 
 " availing themsnlves of the powers of Section 7G of the Act of 1845, and 
 " getting on to tho railway by means oF sidings connected with the 
 " railway. 
 
101 
 
 " A second state of things, as we know from the evidence in this case 
 " to which by the consent of the parties we are at liberty to refer, prevailed 
 " extensively for many years after the railway system was in full 
 " operation, and for some years at least after the passing of the Act of 
 " 184-0. The railway company provided the line and provided the engines 
 " and trucks, but they were not carriers. The large warehouses and sheds 
 *' wherein goods were received, sorted, loaded, covered, checked, weighed 
 " and labelled, and trucks or carriages marshalled and prepared for con- 
 " venient removal to their various places of destination a corresponding 
 " work was done in respect of goods arriving from a distance the staff of 
 " clerks, bookkeepers, porters, workmen, and horses necessary for these 
 " operations were all provided and maintained at the expense of the carrier, 
 " and no portion of them fell upon the company. The company, on the 
 " other hand, as owners of the rolling stock, for the use of which, as well 
 " as of their railways, they received payment, provided whatever accommo- 
 tl dation they needed in order to keep in convenient proximity to the places 
 " where the carrier had his depots the necessary supply of rolling stock. 
 
 " The third state of things which might exist simultaneously with the 
 " second, or might be the one prevailing exclusively on a particular line, 
 Cl existed when the company were themselves the carriers of the goods, and 
 " when as carriers they provided the accommodation and performed the 
 " services above described. 
 
 " The company might thus be: 1, toll- takers and neither conveyers 
 "nor carriers; 2, conveyers but not carriers; 3, carriers. It would 
 " naturally be expected that in the first case they would have powers to 
 " take tolls, and tolls only, and that in the second, they would have power 
 " to make charges, which should include tolls and charges for the use of 
 " rolling stock, and it would seem reasonable enough that (inasmuch as 
 " they would probably have much greater facilities for keeping and using 
 " their rolling stock to advantage and with economy than any ether person 
 " cculd have) where they provided both trucks and locomotives as well as 
 " took tolls, the maximum charge should be lower than the aggregate cf 
 " the three separate charges which they might make for, 1, use of lailways ; 
 " 2, use of carriages ; 3, locomotive power. 
 
 " It would seem natural also to expect that where the company were 
 " carriers, inasmuch as they performed the identical services which they 
 " perform under the second head, and others besides, they should be 
 " allowed to charge the same sums as they might charge when falling under 
 
102 
 
 " the second category, plus those which are appropriate to the extra 
 1 ' services and liabilities which fall upon them when they undertake the 
 " duties and business of a carrier. 
 
 " The contention of the applicants appears to us singularly unreason- 
 " able. It was proved before the Railway Commissioners, and is not 
 " disputed, that the actual cost to the company of the accommodation and 
 " services, which, for many years after the railway system was very 
 1 ' largely developed, and all the principal lines in the kingdom were at work, 
 ' ' were on some of the most important railways in England provided by inde- 
 " pendent carriers, and did not fall upon the railway company, amounted 
 4 ' to Is. od. per ton and it is admitted that, even with the help of the six. 
 " mile clause, the company, if the contention of the applicants is correct, 
 ' would, in the case of traffic carried not more than six miles, have to carry 
 " goods convng under class 5, at a dead loss, which may be approximately 
 " stated as 8d. per ton for station services alone, besides getting nothing 
 " for the use of railway and trucks and for providing power. 
 
 " The charges of and incidental to ' conveyance,' as we have explained 
 " that phrase, are properly measured by the mile of distance travelled over. 
 ' The terminal services of station accommodation, loading, watching, 
 " checking, and the like, have no common measure with the distance run, 
 " and are the same, whether that distance be two or two hundred 
 " miles. . . . 
 
 " Our answer, therefore, is that the providing of station accommoda- 
 " tion, and work of the general nature indicated to us by the Railway 
 " Commissioners, appear to us to be capable of falling under the definition 
 " of 'services incidental to the duty or business of a carrier,' and prima 
 "facie to do so. "Whether in any particular case they do so, or to what 
 " extent they do so, must be a question of fact for the Commissioners, the 
 " line we should draw being, that whatever is necessary for ' conveyance ' 
 ' ' in the sense in which we have defined it being all capable of being 
 " measured by reference to the distance travelled is covered by the mileage 
 " rate. Whatever is properly incidental, not to conveyance, but to the 
 1 ' performance of the duty and business of a carrier . . . that is to 
 " say, is actually performed and is done at a terminal station, may be made 
 14 the subject of a separate reasonable charge. 
 
 " How could the Legislature ever provide for every single station on this 
 " line, for every terminal station, what was a proper charge? It could 
 " only be done by limiting it, as it has done, by 'a reasonable sum,' and 
 
103 
 
 "it is for the Railway Commissioners to say what is a reasonable sum, 
 " under the circumstances at each terminal station. No station is to be 
 " considered as a terminal station in regard to any goods conveyed on the 
 44 railways of the company unless such goods have been received thereat 
 4 ' direct from the consignor of such traffic, or are directed to be delivered 
 4 ' thereat.' Therefore terminal stations are recognised, and terminal 
 44 charges are recognised distinctly." 
 
 Sir Bernhard Samuelson observes that terminal charges 
 are a necessary corollary of the Foreign mileage rates, 1 the 
 scientific basis of which he so much approves ; the equity of, 
 and right to make terminal charges is equally a corollary 
 to the system upon which the rates in this country have been 
 fixed. The maximum charges for the user of the road, the 
 user of the truck, and the provision of the engine are 
 capable of being fairly measured by lef'erence to the dis- 
 tance travelled. They are, therefore, properly the subject 
 of a mileage rate. But the providing of station accom- 
 modation, and work which the Railway Companies perform 
 as carriers as distinguished from mere conveyance have no 
 relation to mileage. They must reasonably be as it has 
 been held in the case of "Hall v. The London Brighton 
 and South Coast Railway Company" they legally are the 
 subject of an additional charge. 
 
 "We may here correct a common error. The opponents of 
 terminal charges are in the habit of speaking and writing of 
 them as if the companies claimed that they might at their 
 own discretion demand such payments as they thought fit. 2 
 
 (!) Eeport to Associated Chambers of Commerce. 
 
 ( 2 ) " The claim of railways to charge terminals would have to be con- 
 sidered if mileage rates are adopted in principle. That charge could ia 
 " no wise be loft to the discretion of the railways themselves, as was pro- 
 " posed in trie Bills of last Session." Sir I'. SAMVEI.PO:,-. 
 
104 
 
 The railway companies have never contended that they were 
 entitled to make arbitrary terminal charges. Indeed, such a 
 contention would be a legal absurdity. On the contrary, they 
 have always submitted that, while their right to make those 
 charges was undoubted, the amount must not only be 
 reasonable, but also be subject to review by the Railway 
 Commissioners under the 15th Section of the Regulation 
 of Railways Act, 1873. Sir Bernhard Samuelson is in- 
 accurate in stating that the railway companies proposed 
 by their Bills of last Session to make those charges subject 
 only to their own discretion. While strongly relying both 
 upon their legal right and the justice of their claim, the 
 railway companies were willing to submit proposals to the 
 consideration of Parliament for a re-settlement of their 
 powers in this respect. But they expressly provided that 
 the Railway Commissioners should have power to hear 
 and determine any question or dispute which might arise 
 with respect to the amount or reasonableness of any terminal 
 charge made by the company, and that any decision of the 
 Commissioners as to terminal charges should be binding 
 and conclusive on all Courts and in all proceedings what- 
 soever;" words borrowed from s. 15 of the Regulation of 
 Railways Act, 1873. 
 
 A few details as to the law and practice on this subject 
 in Continental countries may be useful. And, first, as to 
 Germany. When the question of the introduction of a new 
 tarifi for the German railways was under consideration, it 
 was agreed that in previously fixing the railway rates, suffi- 
 cient consideration had not been given to the expense 
 incurred at the sending and receiving stations, irrespective 
 of the distance the traffic was carried. The result of 
 
105 
 
 the calculations which were made was that those expenses 
 should be estimated at 12 marks per truck load of ten 
 tons. This was accordingly adopted as the standard figure 
 for all goods carried in wagon loads, while for small consign- 
 ments the charge was fixed at 20 marks. The addition of those 
 normal allowances to the rates on traffic to be carried short 
 distances would have considerably increased the charges 
 previously made. It was accordingly agreed, as a com- 
 promise, to graduate the terminal charges for short distances ; 
 the graduation being simply the means of avoiding what 
 might have been considered a large increase in the railway 
 rates, in consequence of the adoption of the " reform tariff 
 system." These terminals represent the working expenses at 
 the forwarding and receiving stations, the labour of receiving 
 the goods from sender, marshalling or shunting the trucks 
 to the sidings set apart for the delivery of the goods, and 
 also the expense incurred by railway companies for 
 stationery and clerkage ; but they do not include the expense 
 of loading and unloading, except in the case of Grande 
 Vitesse and " Piece Goods," They vary from lOd. per ton 
 in full truck loads of 10 tons, to 2s. per ton of general 
 goods, and in the special tariif classes, which include minerals, 
 from 7Jd. in full trucks of 10 tons to Is. 2|d. per ton. 
 
 In Belgium there is a fixed charge of 1 fr. per ton 
 of 1,OCO kilogrammes for the use of station and for 
 clerkage ; but it does not include loading and unloading, 
 or booking, counting, or advice of arrival of goods, for all of 
 which services extra charges are authorised and, in fact, 
 made. This is practically a terminal charge. 
 
 In Holland the terminal charges vary from Is. 2d. 
 to Is. 6d. per ton in the truck load classes, and 2s. 6d. 
 
106 
 
 per ton in respect of ordinary or "piece" goods in quan- 
 tities of less than 5 tons. In the latter case the cost of 
 loading and unloading is included in the terminal charge, 
 but not in the truck load classes. In neither case are 
 weighing, counting, stamping freight note, labelling or 
 advice of arrival included. For all of these services extra 
 charges are made. 
 
 In France only small charges varying from 20 cents, 
 per ton for goods in full truck loads, to 35 cents, per ton 
 for goods in less quantities, are made for the use of 
 stations, though there are various charges for loading and 
 unloading, booking, advice of arrival, and other services. 
 Either, therefore, the traffic for short distances is carried 
 at a loss, or no adequate return to cover the use of station 
 and conveyance is obtained a course, which, assuming 
 the outlay upon a railway is entitled to a fair return, is 
 opposed to sound commercial principles. 
 
 NOTE. The terminals authorised and charged in these countries will 
 be found fully set out in a tabular form in the Appendix III. 
 
107 
 
 SECTION XII. 
 
 THE CONSTRUCTION OF RAILWAYS IN ENGLAND AND ON 
 THE CONTINENT. 
 
 SOMETIMES it is asserted, although it is more often taken 
 for granted, that all railway rates on the Continent are more 
 favourable to traders than English rates. Upon this assump- 
 tion is based the contention that the reduction of the latter may 
 fairly be demanded. Whenever such statements have been 
 carefully examined e.g. in the inquiry beiore the Joint Com- 
 mittee of 1872 they have been proved to be erroneous. Never- 
 theless, they are still constantly repeated. More than once it 
 has been publicly stated that in Germany, Holland, Belgium, 
 &c., " rates are fixed on a scientific basis, and an intelligible 
 principle," while in this country they are " haphazard^and 
 estimates." Seldom is there any attempt to make good 
 such assertions and criticisms. The report made by 
 Sir Bernhard Samuelson to the President of the Asso- 
 ciation of the Chambers of Commerce of the United 
 Kingdom on the " Railway Goods Tariffs of Germany, 
 Belgium, and Holland, compared with those of this country " 
 is an exception, and on that account is specially important. 
 That report endeavours to prove by figures that rates in this 
 country are excessive. It has been cited though, probably, 
 such was not the intention of the author as if it were an 
 indictment of English railways ; and the purport of it is to 
 show that English rates ought to be reduced, and that, un- 
 like the rates on the Continent they are fixed on no proper 
 
108 
 
 basis. Now, even if the difference between English and Con- 
 linental rates were as great as Sir B. Samuelson describes, no 
 inference unfavourable to English railways could be fairly 
 drawn. No comparison could be useful which did not take 
 into account the fact that railways in Great Britain have 
 been constructed with piivate capital subscribed and ex- 
 pended on the faith of definite powers conferred on the 
 companies by Parliament. Sir Bernhard Samuelson, how- 
 ever, passes lightly over the dissimilarities which mar 
 his comparison ; the widely different circumstances under 
 which foreign lines were constructed ; their much smaller 
 original cost per mile, and the fact that most of the lines to 
 which he refers were either constructed or assisted by the 
 State, have been purchased by it, or have received State 
 guarantees. The English railway companies obtained 
 simply authority from Parliament to purchase compulsorily 
 the land required, and to construct the necessary works. ( ] ) 
 On the other hand, the railways in the countries to which 
 his report relates were, to a great extent, either originally- 
 constructed by the State, or the companies have been 
 assisted by contributions towards the cost of construction, 
 or a minimum rate of interest upon the capital provided 
 and expended by them has been guaranteed to them, or the 
 lines have been afterwards acquired by the State. 
 
 It is remarkable that Sir Bernhard Samuelson's report 
 gives no information as to the railways of France, though the 
 nearest of the Continental countries, and though many of her 
 products compete with ours. To correct this deficiency, it 
 may be desirable to mention a few facts. The French 
 
 (*) There are some cases in Ireland in which Baronial Guarantees in 
 respect of portions of the capital of railways hare been given. 
 
109 
 
 Government constructed the first railways opened in that 
 country or made advances for that purpose without charging 
 interest ; and they have since made or purchased other lines. 
 In aid of the original lines for which concessions for 99 
 years were granted, the State in France contributed a vast 
 amount, as appears by the following statement : 
 Amount contributed by the State as shewn at December 
 
 31st, 1882 66,639,549 
 
 Divers contributions also given by towns to 
 
 the extent of ... 1,753,992 
 
 The Companies have themselves provided . 340,421,032 
 
 408,814,573 
 
 Upon the State railways (that is, for lines now 
 worked by the Government) ther have 
 
 expended to December, 1882 33,85 i,598 
 
 In addition to which divers subscriptions were 
 
 given by towns to the extent of ... ... 1,305,334 
 
 443,971,505 
 
 Out of which the State (as shown above) pro- 
 vided 100,491,147 
 
 The total amount was thus found in the following pro- 
 portions : 
 
 A. By the State on lines 
 
 worked by the Companies 15 percent. 
 On lines worked by the State 7*6 per cent. 
 
 22-6 
 Contributions made by 
 
 towns, &c. ... ... 0*7 percent. 
 
 B.~ Capital provided by the 
 
 Companies ... ... 76'7 per cent 
 
110 
 
 The total capital expended on French railways up to 
 the end of 1884 had increased to 532,960,000,' of which 
 sum the State had provided 148,680,000, or 27'9 per cent. ; 
 ir addition to which the subscriptions given by towns 
 amounted to *8 per cent. Thus, up to December 31st, 1884, 
 the capital provided by the companies themselves was not 
 more than 71'3 per cent, of the whole. The French 
 Government have also guaranteed the dividend on four of 
 the great lines at rates varying from 7 to 12 per cent. Two 
 other great companies may pay 11 and 13'5 per cent, divi- 
 dend respectively before they can be called upon to construct 
 any new lines ; while all the six companies may earn 
 dividends varying from 10 to 22 per cent, before they are 
 bound to divide any surplus with the Government. 
 
 A portion of the capital of each company is paid off 
 annually beyond the guarantee; and at the end of the 
 period of concession the railways will become the property 
 of the State. The advances made to the companies under 
 the guarantees by the Government, with interest at the 
 rate of 4 per cent., are to be repaid out of any surplus 
 beyond the maximum dividends which may be paid. If 
 at the end of 99 years, any of the companies still be in 
 debt, the Government are to be entitled to take without 
 payment as much of the rolling stock as may be required 
 to repay the debt, as far as the value of the stock may 
 do so. By the conventions of 1883, the Government 
 arranged with the companies to which they had given 
 guarantees, that when a request to that effect is made by the 
 State, new lines are to be constructed up to the amount of their 
 
 (^ This capital relates to the principal lines only. 
 
Ill 
 
 debts at the end of 1883. In some cases this duty is incumbent 
 only when the dividends paid by the companies reach or exceed 
 the maximum percentage already mentioned. In addi- 
 tion to the large sum expended by the French Government 
 on, or towards the original construction of railways, the total 
 amount advanced to the companies to make up the guaran- 
 teed dividends 1 amounted to December, 1883, to 23,592,000 
 and for the year 1834 to 2,250,000 
 
 25,842,000 
 The interest on these advances amounted 
 
 to December, 1883, to 5,904,000 
 
 and for the year 1884 to 36,000 
 
 31,782,000 
 
 (i) The Report of the French railway Commission of Inquiry 
 appointed in 1880 states: "Our railway companies have been largely 
 " subventioned for the construction of their lines, almost all receive 
 " annual subsidies, without which they could not meet the charges of their 
 " working expenses ; all enjoy a monopoly which shelters them from in- 
 * ' ternal competition ; we have the right to demand from them, to force 
 *' upon them, reforms that public and parliamentary opinion deem indis- 
 " pensable." And again " * * * * In certain countries, England for ex- 
 " ample, where the system of liberty and commercial competition is largely in 
 " vogue, it is right that the railway companies, who have received nothing 
 " and from whom nothing is demanded by the State, and who may be con- 
 " sidered only as belonging to the category of private merchants and 
 " manufacturers, should have greater freedom in dealing with their traffic 
 " and tariffs than is enjoyed in this country (France)." 
 
 But it is added : " It is not the same with Continental European nations. 
 ** The Governmo ts of Belgium, Holland, Bavaria, the Grand Duchy of 
 " Baden, Austria, Italy, Hungary, Russia, Sweden, and Norway are wholly 
 " or in part proprietors of the railway system." Appendix 31 to Report 
 from the Select Committee on Railway* (Rates and Fares} 1882, Vol. //., 
 pagc-< 453-4. 
 
112 
 
 In France the State has not pursued in regard to rail- 
 ways a policy strictly commercial. It has made great sacri- 
 fices to provide railways, in the hope of securing to the 
 country indirect ulterior gains. For the sake of their devel op- 
 re ent it has incurred great expenses which excite in some 
 minds grave anxiety. ( ] ) 
 
 In Germany most of the railways are now the property 
 of the State. ( 2 ) In 1884, the various Governments owned 
 19,610 miles, and they worked another 496 miles for the 
 
 ( ] ) " La depense tout a fait sterile des 500 millions pour racheter des 
 " lignes ferrees improductives, les exageiations du projet Freycinet lors 
 " de sa naissance et les extravagances de developpements posterieurs qu'on 
 " lui adonnes, des sommes enormes depensees en des canals de transport, 
 " qui, pour beaucoup du moins, font double emploi et jouissent d'aucun 
 " trafic, toute cette mauvaise direction a absorbe les resources de 1'Etat en 
 " sacrifices inutiles et ne lui a pas laisse le loisir de supprimer 1'impot sur 
 " la grande vitesse, les timbres sur les recepisses des chemins de fer, et 
 " d'obtenir, par un juste retour, des reductions de tarifs qui n'auraient ete 
 " accompagnees d'aucune augmentation d'impot." M. LEKOY-BEAULIEU 
 in IS Economiste Francais, February 17th, 1886. 
 
 ( 2 J It is generally assumed that the railways in Germany were purchased 
 with the view of more effectually utilising them, and the rolling stock for 
 military purposes. The Government in this country are under no necessity 
 to undertake the liability of acquiring the railways and guaranteeing the 
 dividends for such a reason ; the number of lines of railway and routes are 
 so ample, and the number of engines, carriages, and wagons so great, that 
 any movement required for the defence of the country cm be carried out 
 within any reasonable time, while under the Regulation of the Forces Act, 
 1871, Her Majesty, by Order in Council, may empower any person or 
 persons, named in such warrant, to take possession of any railroad and of 
 the plant belonging thereto, and to use the same for Her Majesty's Service 
 at such times and in such manner as the Secretary of State may direct ; and 
 the directors, officers, and servants of any such railroad, shall obey the 
 directions of the Secretary of Stale. 
 
113 
 
 companies, leaving only 2,505 miles out of a total of 22,611 
 to be worked by the railway companies. Of the railways 
 which are the property of the State, about two-fifths were 
 constructed, and the remainder were purchased by it. Of the 
 total capital outlay of 485,831,766 on German railways, 
 437,728,471 has been expended by the State in con- 
 structing or purchasing them, and 48,103,295 has been 
 provided by the companies themselves. The return upon 
 the capital outlay of the State railways has been ( ] ) 
 
 1880-1 4 87 per cent. 
 
 1881-2 5-01 
 
 1882-3 5-22 
 
 3883-4 4-86 
 
 1884-5 5-06 
 
 This shows an average for the five years of about 5 per 
 cent, per annum. 
 
 In Belgium, out of a total mileage at the end of 1884 of 
 2,711 miles, the State owned 1,930, or more than 71 per cent, of 
 the railways. The outlay upon this mileage was as under : 
 
 (a). Cost of railways actually purchased ... 36,668.915 
 (b). Amounts payable by annuities ... ... 12,442,804 
 
 (c). Capital expended on lines worked by State 3,900,653 
 
 53,012,372 
 
 The interest paid by the Belgian Government on the 
 above capital outlay was 
 
 (a). 4 per cent. 
 
 (b). 4, 4| and 5 per cent. 
 
 (c). 4| per cent. 
 
 See note, page 118. 
 
 H 
 
114 
 
 The gross receipts on the State railways for the year 
 1884 amounted to Coaching ... 1,620,565 
 Goods ... 3,088,108 
 Sundries ... 98,971 
 
 4,807,644 
 and the expenses to ..,-. 2,871,268 
 
 leaving net receipts 1,936,376 
 
 Upon a capital outlay of 53,012,372, these figures give 
 an average dividend of nearly 3J per cent. It would, there- 
 fore, appear that the working of the State railways results 
 in a loss to the Government, which the public have to make 
 up by increased taxation.^) 
 
 0) In the Report of May 3, 1882, made by Sir H. Barron to the 
 then Minister for Foreign Affairs (Earl Granville) (part 4 of the "Reports 
 by Her Majesty's Secretaries of Embassy and Legation on Manufac- 
 tures, Commerce, &c.,") on the subject of the Belgian Budget, the former 
 stated that "The 5 years from 1876 each closed with a deficit rising 
 in 1881 to 6J million francs (250,000), the main explanation being the 
 ever- increasing burden thrown on the Treasury by the extension of the 
 railway, which undertaking has ceased to cover its charges and com- 
 pletely disturbed the financial equilibrium of the State. The first 
 lines constructed and worked by the State, being great trunk lines, 
 gave every year an increasing return which enriched the Treasury. 
 To these were first added conceded lines, which had to be purchased 
 from companies at high prices ; then secondary lines, whose traffic was 
 unremunerative. After many previous experiments, the accounts of the 
 railway have been since 1878 drawn up on a new and presumedly more 
 accurate principle. The Treasury is now considered as the bankers of the 
 railway ; it is assumed that all funds advanced by the former are charge- 
 able with an interest of 4 per cent., and repayable within ninety years. 
 According to this new method of book-keeping, it appears that the railway 
 contributed largely to the revenue until 1872 inclusively, but that since 
 
115 
 
 In Holland also, the railways are owned to a large 
 extent by the State, to which belong 797 miles out of a total 
 of 1,617 miles. The State does not, as in Germany or 
 Belgium, work its own lines. It leases them upon certain 
 
 that year it has, on the contrary, entailed an annual loss. Thus, the deficit 
 of 1881 is for the greater part (4,861,725 fr.) due to the insufficiency of the 
 railway revenue. Fortunately Belgium has a resource at hand." 
 
 " The Minister of Finance in the debate on the Budget of Public Works, 
 ' ' points to that resource in the following pregnant words : It is proved 
 " that the railway fails to cover its charges by about five millions 
 41 (200,000). We are informed that this year the deficiency may be 
 " seven millions; in 1883, possibly even ten millions. What will it be 
 " in 1884? No one knows, but the progression is ascending. Must we 
 11 follow it without counting the cost ? Must we raise the tariffs or 
 " throw on the Treasury the burden caused by the insufficiency of the rail, 
 " way receipts ? Either the railway must be worked on a principle which shall 
 " allow it to cover its charges or the taxpayers must make up the difference."" 
 
 He further added that in his report of 1876 he recommended " a raising 
 of the tariff." Sir H. Barron goes on to state "that the inferior productiveness 
 of the Belgian Railway was due to the inadequate tariff, which, for passengers 
 and merchandise, was much lower than those prevailing in the rest of Europe." 
 He further remarks, however, that "notwithstanding all this it has been 
 held that the experiment is a great success, and bears evidence in favour 
 of State ownership, because, as the railway is worked in the interest of 
 trade, &c., it is considered that the benefit thus indirectly accruing to 
 the public at large, is greater than that which might be realised by aim- 
 ing at a commercial profit for the direct and immediate benefit of the 
 taxpayers.'* 
 
 The construction of railways in Belgium has, no doubt, developed the 
 commerce and industry of the country to a remarkable extent. It was 
 stated by Sir Bernhard Samuelson (page 9 of Eeport) that the receipts of 
 railways had increased from 1,815,000 in 1870 to 4,880,000 in 1883, or 
 168 per cent. ; but he omitted to point out that the length of the railways 
 had increased by more than 250 per cent. 
 
 See the observation of M. Leon Say as to the tendency to reduce railway 
 tariffs to an unremunerative point when the State is the owner. Le 
 Rachat des Chemim de Fer, Journal des conomistes, 1881 , p, 343. 
 
116 
 
 conditions to companies, viz., to a Company for working 
 the State railways and to the Holland Company. The 
 companies provide the rolling stock and staff, and main- 
 tain the line ; but they do not execute " works of art " or 
 repairs arising from circumstances over which they have 
 no control, such, for instance, as war, inundations, land- 
 slips, &c. Materials for the execution of works have to 
 be conveyed at a very low rate. All rates must be submitted 
 to the Minister of Public Works, for his approval ; and the 
 mails must be carried free. From the gross receipts are made 
 deductions at the rate of 67 per mile of single, and 134 
 per mile of double line per annum, which serve as a fund to 
 cover repairs. Eighty per cent, of the remainder is retained 
 by the company. The balance of the receipts belongs to 
 the State. If, however, the company's percentage, plus the 
 deductions, do not amount to 644 per mile, the gross 
 receipts are so apportioned as to yield that amount. If the 
 net profit of the company exceeds 4J per cent, upon their 
 capital, the surplus up to 5 per cent, is divided equally 
 between the State and the company ; and any further surplus, 
 is distributed in the proportion of four-fifths to the State and 
 one-fifth to the company. The total capital expenditure on 
 the Dutch State Railways to the 30th June, 18S5, was : 
 
 On lines worked by the Company for 
 
 working the State Railways ... 15,958,328 
 
 Holland Company . 3,477,914 
 
 19,436,242 
 
 The amount received in respect of dividend or interest 
 for the year from both working companies was 158,170 
 or about *81 per cent, on the capital involved. 
 
117 
 
 There is a remarkable difference in the cost of con- 
 struction of English and Continental lines a fact of which 
 Sir B. Samuelson takes no adequate account when he says 
 " the average cost of construction has been considerably less 
 in the case of German railways than in that of our own." 
 "Without citing many figures on the point, it may be stated 
 that at the end of 1884 the amount of capital expended in 
 the construction of railways in the United Kingdom was 
 801,464,367, or 42,486 per mile of line opened; and in 
 England and Wales alone 665,055,879, or 49,854 per mile. 
 If the rates for carriage of goods and passengers were based 
 solely on cost per mile, those in force in the United Kingdom 
 and England and Wales respectively would exceed the rates of 
 other countries to the extent shown in the following table : 
 
 
 On the average cost in 
 the United Kingdom. 
 
 On the average cost in 
 England and Wales. 
 
 France 
 
 By 4 5 '41 per cent. 
 
 70-62 per cent. 
 
 Germany 
 
 By 97-73 per cent. 
 
 132-02 per cent. 
 
 Belgium (State) 
 
 By 54-67 per cent. 
 
 81-13 per cent. 
 
 Holland 
 
 By 121-42 per cent. 
 
 159-82 per cent. 
 
 Not only has the construction of the railways in this 
 country been more costly, but private companies have ac- 
 complished a task which has not yet been fulfilled in 
 some Continental countries, even with all the aid of the 
 State, and which, if ever fully carried out, must entail further 
 liabilities upon the Governments of those countries. In 
 England private companies have not only made trunk lines, 
 but, to a degree unknown abroad, they have constructed 
 
118 
 
 branch lines, penetrating into sparsely -peopled districts of 
 the country, yielding little traffic, and necessarily involving 
 heavy working expenses and loss of interest. Official 
 figures show that private enterprise has hitherto given one 
 mile of railway to every 
 
 6'41 square miles in the United Kingdom, 
 4'36 ,, ,, England and Wales, 
 
 as compared with 
 
 10-42 France, 
 
 9 '38 Germany, 
 
 4-2 Belgium, 
 
 7-82 Holland. 
 
 It further appears from official statistics that the capital 
 outlay for every 1,000 inhabitants has been 
 22,287 in the United Kingdom. 
 24,512 England and Wales, 
 
 13,977 
 
 France, 
 
 10,593 
 
 Germany, 
 
 11,365 
 
 Belgium, 
 
 7,252 
 
 Holland. 
 
 NOTE. The figures relating to the capital, revenue and working 
 expenses of the German Railways have been taken from the " Statistische 
 Nachrichten von den Eisenhahnen des Vereins Deutscher Eisenbahn- 
 Verwaltungen," which differ in some respects from those contained in 
 statements obtained after going to press from the Department of the 
 German State Railways ; the latter giving the revenue for the working 
 year 1884-5 as 50,736,165, the expenses as 29,057,889, or 57'27 per 
 cent, of the receipts. The balance would yield a return of 4-51 per cent. 
 
119 
 
 SECTION XIII. 
 
 WORKING OF ENGLISH AND CONTINENTAL RAILWAYS- 
 COMPARATIVE FACILITIES AFFORDED BY THEM. 
 
 So much for the strikingly different modes in which the 
 English and continental railways have been constructed ; 
 the one system a history of unaided private enterprise, the 
 other a history of a policy pursued by great States with 
 the resources of Imperial Exchequers, and with English 
 experience as a guide. Had railways in this country received 
 the same assistance as foreign lines, the cost and working 
 expenses being the same, the demand that the former should 
 have rates as low as the latter would not be unreasonable. 
 But a comparison of the facilities afforded here and on 
 the Continent to trades and production will not be unfavour- 
 able to the English companies. It will be seen that, in the 
 words of the late Professor Stanley Jevons, " Taking all 
 circumstances into account, England and Wales are better 
 supplied with railways than any other country in the 
 world," whether we have regard to extent or efficiency. 
 
 In the first place, it is well known that the time 
 occupied in the conveyance of goods is less in this country 
 than on foreign railways. In France, for instance, the 
 time allowed by the orders of the Minister of Public 
 Works, before forwarding for the purpose of loading, is 
 one day ; for the transit of goods over a distance of 
 
120 
 
 93 miles, there is another clear day making two days ; 
 and for a distance of 170 miles, three days, exclusive of 
 the time necessary for collection and delivery. In other 
 words, traffic delivered at a station on a Monday, must 
 be at the disposal of the consignee on the Thursday morning 
 following at any station within 150 kilometres (93 miles) 
 distant from the sending station. If the goods have to be 
 "delivered to domicile "that is, at the consignee's residence 
 or place of business the time allowed by the tariff for 
 delivery is one day that is, in the case supposed, they must 
 be " delivered to domicile " during the Thursday. No 
 doubt, goods requiring speedy transit can be forwarded by 
 grande vitesse (ordinary passenger train), a service which 
 is equivalent in respect of speed to a large portion of the 
 goods trains in England. But the rates charged for 
 conveyance by grande mtesse in France are about three 
 times as much as the highest class rate by goods train. 
 
 In Germany, the general regulations prescribe the maxi- 
 mum time for delivery of goods as follows : for "EHguif" (goods 
 carried by passenger train), one day for loading and for- 
 warding, and one day for every 300 kilometres (186 miles) 
 or part thereof. For " Frachtyut" (goods train traffic), two 
 days may be taken for loading and forwarding, and for the first 
 100 kilometres (62 miles) one day; for every part of each 
 subsequent 200 kilometres (124 miles) one day. The time 
 of transit is assumed to commence at midnight following the 
 date of the stamp on the consignment note. 
 
 In Holland, the time allowed for "express goods" 
 before forwarding is 24 hours, and for conveyance for each 186 
 miles or part thereof, another 24 hours. 1 For general goods 
 (') For further particulars see Appendix III. 
 
121 
 
 the time allowed before forwarding is 48 hours and for the 
 conveyance, 48 hours for each 186 miles or part thereof. As 
 in Belgium, the time allowed for transport commences 
 at midnight following the stamping of the consignment note. 
 
 In Belgium all goods carried under the conditions of 
 tariff No. 3 1 (which applies to consignments exceeding 4 cwt. 
 in weight) are due at the receiving station three full days 
 after delivery of the goods to the company. This does not 
 apply if there is a glut of traffic ; and another full day is 
 allowed if the railway company deliver by cart. 
 
 Groods may by law be kept in some of the countries 
 which have been mentioned for two days before being 
 despatched ; two clear days are allowed for 186 miles or part 
 thereof; and when rapid transit is required, as in case of ex- 
 press goods, the rates are much higher than those charged by 
 goods train. In this country, on the other hand, goods are, 
 as a rule, forwarded on the day or during the night of the 
 day on which they are brought to the station ; and between 
 important places within 200 miles, goods are usually delivered 
 the following day. As a matter of general practice, the 
 maximum time allowed abroad is not fully occupied ; but it 
 is recognised by law. This advantage which the foreign rail- 
 ways possess implies others, which can only be fully appre- 
 ciated by persons practically acquainted with the mystery 
 of railways. The ample time allowed before forwarding and 
 in transit permits of considerable economy in the use of 
 wagons. Opportunities are afforded for making full wagon 
 and full train loads. This circumstance, too, reduces train 
 mileage. A further consequence is the diminution of claims 
 for compensation and in other items of expense. The speed 
 
 (') For particulars see Appendix III. 
 
122 
 
 of the trains being slow, and the time allowed in transit 
 being great, larger loads are practicable. 
 
 Liability for compensation for delay or damage in 
 transit is another element to be taken into consideration 
 in any comparison of rates. In Belgium and Holland, 
 where rates are especially low, the liability to pay compen- 
 sation is very limited. Belgian railway companies are not 
 responsible in the case of goods carried under the conditions 
 of tariff No. 2, unless specially insured, for a delay of one 
 day after the time allowed for delivery, or in the case of 
 goods carried under tariff No. 3 (all consignments above 
 4 cwts.), for a delay of two days after the time allowed for 
 delivery. Their responsibility for delay in excess of these 
 times is, moreover, limited to one-tenth of the carriage for 
 every day's delay. Goods are considered to be lost if not 
 delivered after the expiration of fifteen days. For loss or 
 damage to merchandise, carried by goods train, the com- 
 panies are responsible only to the extent of 75 cents, per 
 kilogramme (3Jd. per lb.). The responsibility of the com- 
 panies in Holland, for delay to ordinary goods beyond 
 24 hours, after the time allowed for delivery, is, up to 
 72 hours, limited to one-fourth, up to 8 days one-third, and 
 beyond that period one-half of the freight. For whole or 
 partial loss the maximum liability is 2 10s. per cwt. To 
 enable the public to recover, either in the case of delay or 
 loss, the full value of goods, they must be insured at specified 
 rates. These particulars show the advantages of foreign 
 railways in this respect ; the difference may be made still 
 clearer by citing a few figures as to the working of this 
 system of legal limitation of liability in Belgium and 
 Holland and of the virtually unlimited liability in force in 
 
123 
 
 this country. In Belgium the amount paid for compensation 
 for delay or damage to merchandise traffic carried on the 
 State railways in the year 1884 was 7,772, or '25 per 
 cent, on a revenue of 3,088,109, and on the Dutch Rhenish 
 Railway it was 274, or *16 per cent., on a revenue of 
 173,079. In the United Kingdom the amount was 
 202,400, or, *54 per cent., and in England and Wales 
 17,140, or, '55 per cent., on a revenue from merchandise, 
 and mineral traffic of 37,670,592 and 31,973,011 
 respectively. Of these last amounts 15,528,656 and 
 13,398,433 were in respect of minerals on which no com- 
 pensation is, in practice, payable. 1 
 
 The rates for merchandise in Holland and Belgium are 
 the lowest of any of the countries. Independently of the 
 construction of the lines being cheaper, the wages paid to 
 servants less, and the State being the principal proprietors, 
 natural causes favour this. From the flatness of those 
 countries and their consequently having exceptionally level 
 railroads, the average loads far exceed what can be carried 
 in the United Kingdom. In Holland 450 to upwards 
 of 500 tons are the usual train loads. Even on the 
 Northern Railway of France an average load of 400 to 
 450 tons is common. Owing to the gradients of the 
 lines and the speed of the trains, such weights are rarely 
 carried in this country. The consequence of the paying 
 load being less is, of course, that the working expenses 
 are proportionately greater. 
 
 Branch lines in this country have, as has been already 
 stated, been carried into sparsely populated districts to 
 
 C 1 } In Germany and France the law as regards liability is practically 
 the same as in this country. 
 
124 
 
 an extent unknown in France, Germany, Belgium or 
 
 Holland, and the English railways afford greater facilities 
 
 by reason of a larger proportion of the lines being double. 
 
 The following table shows the state of things in 1884 : 
 
 Year. 
 
 1884 
 1884 
 1884 
 1884 
 1884 
 1884 
 
 
 Double Line. 
 
 Single Line. 
 
 Total 
 mileage. 
 
 Length. 
 
 Per 
 
 Centage. 
 
 Length. 
 
 Per 
 
 Centage. 
 
 United Kingdom ... 
 England and Wales 
 France 
 Germany ... 
 Holland (?) 
 Belgium 
 
 10,239 
 8,504 
 7,470 
 6,724 
 435 
 943 
 
 54-28 
 63-75 
 38-84 
 29-74 
 26 90 
 34-80 
 
 8,625 
 4,836 
 11,765 
 16,887 
 1,182 
 1,768 
 
 45-72 
 36-25 
 61-16 
 70-26 
 73-10 
 65-20 
 
 18,864 
 13,340 
 19,235 
 22,611 
 1,617 
 2,711 
 
 It is well known that train service in this country is 
 much more frequent than in any other country. How great 
 is the difference will be seen by comparing the average 
 number of train miles run per mile of railway, per square 
 mile of country, and per 1,000 people. 
 TRAIN MILES. ( 2 ) 
 
 YEAK 
 
 
 PER MILE 
 OF RAILWAY. 
 
 PER SQUARE 
 MILE. 
 
 PER 1,000 
 PEOPLE. 
 
 1884 
 1884 
 1884 
 1884 
 1884 
 1884 
 
 United Kingdom 
 England and Wales 
 France 
 Germany 
 Holland 
 Belgium ... 
 
 Pssngr. 
 
 Goods. 
 
 Pssngr. 
 
 Goods. 
 
 Pssngr. 
 
 Goods 
 
 3,523 
 3,929 
 1,336 
 1,287 
 629 
 2,241 
 
 7,588 
 9,114 
 4,644 
 3,997 
 4,941 
 4,819 
 
 6,715 
 7,991 
 2,792 
 2,610 
 1,762 
 4,783 
 
 1,185 
 2,090 
 416 
 426 
 600 
 1,149 
 
 1,048 
 1,832 
 250 
 278 
 213 
 1,140 
 
 3,981 
 4,481 
 2,222 
 1,971 
 1,773 
 2,258 
 
 In comparing the results of the working of the 
 German and English railways, Sir B. Samuelson states in 
 
 (!) Including 90 miles on German and Belgian Frontier. 
 ( 2 ) The mixed train mileage introduces a disturbing element, but the 
 calculations have been made as accurately as possible. 
 
125 
 
 the report already quoted, that " The proportion of net to 
 gross receipts is not unfavourable to the Grerman lines." 
 He adds that " it is all the more remarkable when it is con- 
 sidered that the tariffs for both passengers and goods are 
 much lower; the cost of materials, generally speaking, 
 higher ; and that large sums are in Germany defrayed 
 out of revenue, which would here be charged to capital." 1 
 The meaning, apparently, of these observations is that 
 railways in this country ought to be worked more cheaply 
 than in Grermany; that passenger fares and merchandise 
 rates are lower in that country, that nevertheless the receipts 
 are satisfactory ; that the rates for goods should be here 
 reduced; and that, thereby, better results would ensue. 
 Let us put these statements to the test of figures, 2 aod, first, 
 as to cost of working, no doubt a material element in the 
 comparison of rates. For the year 1884 the gross receipts 
 of all the railways in the United Kingdom and in England 
 and Wales respectively amounted to 
 
 RECEIPTS. 
 
 UNITED 
 KINGDOM. 
 
 ENGLAND AND 
 WALES. 
 
 Coaching 
 Groods and Minerals 
 Miscellaneous 
 
 Total 
 
 
 
 30,030,450 
 37,670,592 
 2,821,601 
 
 
 25,584,196 
 31,973,011 
 2,541,804 
 
 70,522,643 
 
 60,099,011 
 
 (*) See page 6 of Sir B. Samuelson's report. It is not known to what 
 the observation as to charges to capital can refer. The larger (if not all) 
 companies in this country charge to revenue portions of the cost of improve- 
 ments to stations, sidings, &c., which might strictly be charged to capital. 
 In the published returns of the working of German railways, there is nothing 
 to show to what extent, if any, the cost of new works is charged to capital. 
 
 ( 2 ) The number of passengers, or tons of goods are not reliable for the 
 
126 
 
 United England and 
 
 Kingdom. Wales. 
 
 The working expenses to 37,217,197, 31,732,486 
 
 or 5277 and 52*80 per 
 
 cent, respectively ; and the 
 
 net receipts to ... 33,305,446, 28,366,525, 
 
 The gross receipts yielded an average of 
 
 
 UNITED KINGDOM, 
 
 ENGLAND AND WALES. 
 
 Coaching Receipts 
 Goodsand Minerals 
 
 Per Mile. 
 
 Per Train 
 Mile. 
 
 Per Mile. 
 
 Per Train 
 Mile. 
 
 
 
 1,592 
 1,997 
 
 s. d. 
 4 2 
 5 11 
 
 
 
 1,918 
 2,397 
 
 S. d. 
 
 4 24 
 6 
 
 The gross receipts of all the French railways, except 
 the small local lines, for the same year amounted to : 
 
 Coaching ... ... ... ... 
 
 16,214,240 
 
 Goods and Minerals 
 Miscellaneous ... ... (about) 
 
 24,743,480 
 960,000 
 
 The expenses to 56*45 per cent, of 
 the receipts 
 
 41,917,720 
 23,662,160 
 
 and the net receipts to 
 
 18,255,560 
 
 purpose of comparison, inasmuch as a passenger or a ton of goods carried 
 over two railways appears as two passengers or two tons, and therefore 
 after various lines are amalgamated, the returns may show an apparent 
 decrease when in fact there may have been an actual increase in traffic. 
 
127 
 
 The results of the working of the French railways for 
 the year may be briefly shown thus : 
 
 Per mile. Per train mile. 
 
 Coaching ... ... 889 ... 3s. lOd. 
 
 Goods and Minerals 1,356 ... 9s 8Jd. 
 
 The results of the working of the German railways for 
 the year 1884 were as under : 
 
 Total of 
 State Railways. Private Railways. all Railways. 
 
 Gross receipts 44,621,504 4,127,569 48,749,073 
 Expenses ... 24,267,185 2,206,937 26,474,122 
 
 Net receipts... 20,354,319 1,920,632 22,274,951 
 
 The expenses being 54*38, 53*47, and 54*31 per cent., respec- 
 tively, on the receipts 
 
 The average amount per mile and per train mile of the 
 following receipts : 
 
 Coaching receipts 12,989,912 
 
 Goods and Mineral 33,591,675 
 
 Miscellaneous ., 2,167,486 
 
 48,749,073 
 
 being Per mile. Per train mile. 
 
 Coaching receipts ... 575 3s. 4Jd. 
 
 Goods, &c. ... ... 1,486 9s. lOfd. 
 
 The private railway companies in Belgium are not 
 required to furnish the Government with returns similar to 
 those supplied to the Board of Trade in this country. It 
 is, therefore, difficult to obtain complete information on this 
 head. But the results of the working of the State rail- 
 ways, which, as has been explained, form more than 71 per 
 cent, of the whole system of the country, are accessible, 
 and may for this purpose be taken as fairly representative. 
 
128 
 
 Gross receipts of the State railways for the year 1884, 
 
 viz., Coaching 1,620,565 
 
 Goods and Minerals 3,088,109 
 
 Miscellaneous 98,970 
 
 4,807,644 
 and the expenses to 5972 per cent. 2,871,268 
 
 leaving net receipts 1,936,376 
 
 Thus, the average amount of the gross receipts per mile, 
 and per train mile respectively, is 
 
 Per mile. Per train mile. 
 
 Coaching 840 ... 3s. Ifd. 
 
 Goods and Minerals 1,600 ... 5s, ll|d. 
 On the State, Holland, Dutch Rhenish, Dutch Central, 
 and Brabant Railways, which comprise more than 90 per 
 cent, of the whole railway system of Ho] land, the gross 
 receipts for the year amounted to 
 
 Coaching 1,137,687 
 
 Goods and Minerals 859,797 
 
 Miscellaneous 1 90,270 
 
 2,087,754 
 the working expenses to ... ... 1,137,595 
 
 or 54' 49 per cent. 
 
 and the net receipts to 950,159 
 
 The gross receipts yielded an average of 
 
 Per mile. Per train mile. 
 
 Coaching 744 3s. OJd. 
 
 Goods and Minerals 562 6s. 4|d. 
 
 The foregoing figures are summarised for convenience 
 of comparison in the following tabular form : 
 
 (i) It is assumed that some receipts for cattle traffic are included in this 
 item. 
 
129 
 
 
 GROSS RECEIPTS. 
 
 
 
 
 
 PER OEXTAGE 
 
 
 
 
 i i? r* OMO c! 
 
 Per Cen- 
 
 COUNTRIES. 
 
 per mile. 
 
 per train mile. 
 
 < r (jKUbo 
 RECEIPTS. 2 
 
 tage of 
 Expenses 
 
 
 
 
 
 on 
 
 
 i 
 
 
 i 
 
 
 1 
 
 
 Receipts. 
 
 
 Coaching. 
 
 Goods, &c. 
 
 Coaching. 
 
 Goods, &c. 
 
 Coaching. 
 
 Goods,&c. 
 
 
 
 
 
 & 
 
 
 
 
 
 
 United Kingdom 
 
 1,592 
 
 1,997 
 
 4/2 
 
 6/11 
 
 42-58 
 
 53-42 
 
 52-77 
 
 England & Wales 
 
 1,918 
 
 2,397 
 
 4/2* 
 
 6/0 
 
 42-57 
 
 53-20 
 
 52-80 
 
 France 
 
 889 
 
 1,356 
 
 3/10 
 
 9/8| 
 
 38-68 
 
 59-03 
 
 56-45 
 
 Germany 
 
 575 
 
 1,486 
 
 3/4 
 
 9/lof 
 
 26-79 
 
 67-29 
 
 54-31 
 
 Belgium (State) 
 
 840 
 
 1,600 
 
 3/lf 
 
 5/11} 
 
 33-71 
 
 64-23 
 
 59-72 
 
 Holland, state, 
 
 
 
 
 
 
 
 
 Putch Rhenish, 
 
 
 
 
 
 
 
 
 Holland, Dutch 
 Central and Bra- 
 
 744 
 
 562 
 
 3/0 
 
 0/4} 
 
 54-49 
 
 41-18 
 
 54-49 
 
 baut Railways. 
 
 
 
 
 
 
 
 
 From the above table it appears that the percentage of 
 the working expenses upon the gross receipts on all the 
 railways in Germany is 54*31 per cent., and on the State 
 lines in Belgium 59 '72 per cent, as compared with 52*77 
 per cent, in the United Kingdom. But analysing these figures, 
 we find that the relative proportion of the whole receipts 
 from the passenger traffic of the German railways is 26*79 
 per cent., and of the Belgian State railways 33'71 per cent., 
 as compared with 42*58 per cent, in the Uniterl Kingdom. 
 This difference, due to the greater development of passenger 
 traffic in this country, considerably affects the comparison of 
 the results of working. The ratio of working expenses in 
 the United Kingdom, where the proportion of net revenue 
 from passenger traffic is greater, and that from goods is 
 less than in Germany or Belgium, is reduced to the 
 
 (1) Coaching receipts embrace receipts from jassenger and such other 
 traffic as is carried by passenger trains, as nearly as can be classified. 
 
 ( 2 ) In calculating these per contages, the "Miscellaneous"' receipts 
 have been included in the gross receipts. 
 
 I 
 
130 
 
 advantage of the goods traffic. If the revenue from 
 passenger traffic in the year 1885, on the railways in 
 the United Kingdom, had only been the same per train 
 mile as in Belgium, the working expenses in the case of 
 the former would have been raised to 59 per cent. The 
 profits derived from passenger traffic are not only advan- 
 tageous to the shareholders, but beneficial to the trade of 
 the country. They have enabled the companies to pay 
 moderate dividends, and also to carry merchandise traffic at a 
 less profit. Any reduction in the revenue from passengers 
 would cripple the railway companies, and prevent them 
 being in as good a position to provide the accommodation, 
 afford the facilities, and charge such rates as are required to 
 develop the trade of the country. 
 
 Sir Beruhard Samuelson's reference to passenger fares 
 calls only for a few remarks. Taking the average fares charged 
 in this country per mile to be 2d. first, l-|d. second, and Id. 
 third class, with a redaction in return tickets, there is no 
 very substantial difference between those fares and the fares 
 charged in Holland and Germany (except that in the latter 
 country there is a fourfch class on some trains). Nor do fares 
 here (including the Government duty), materially differ from 
 those charged on the railways in France. The fares in Bel- 
 gium are, for the reasons already stated, lower than those 
 in this country. But if to the nominal fares is added the 
 charge which would be made for the same weight of 
 luggage as that which is carried free in this country, the 
 difference is reduced^ 1 ) 
 
 The receipts per train mile from coaching traffic are 
 3s. l|d. and 3s. 4jd.in Belgium and Germany respectively, 
 
 ( t ) See table at foot of the following page. 
 
131 
 
 as against 4s. 2d. in the United Kingdom ; a difference 
 which, assuming that only the same receipts per train mile 
 on the present train mileage were earned by the railways in 
 this country, would involve a loss of revenue from 6,000,000 
 to 7,000,000 per annum. On the other hand, the receipts 
 per train mile, from merchandise and mineral traffic, in the 
 other countries, compare very favourably with those in the 
 United Kingdom ; they are 9s. 8|d. in France, and 9s. lOfd. 
 in Germany^ as compared with 5s. lid. in the United 
 Kingdom. Even in Belgium and Holland, where rates are 
 low, the receipts are 5s. ll^d. and 6s. 4|d. respectively ; results 
 
 (*) The passenger fares, excluding and including the charges for luggage, are : 
 
 SCALE PER MILE OF PASSENGER FARES, 
 
 Excluding charge for luggage. 
 
 Distances. 
 
 FRANCE. 
 
 BELGIUM. 
 
 HOLLAND. 
 
 GERMANY. 
 
 
 
 
 
 Express. 
 
 Ordinary. 
 
 
 
 
 Express. 
 
 Ordinary. 
 
 
 l&t 
 
 2nd 
 
 3rd 
 
 1st 
 
 2nd 
 
 3rd 
 
 1st 
 
 2nd 
 
 3rd 
 
 1st 
 
 2nd 
 
 3rd 
 
 1st 
 
 2nd 
 
 3rd 
 
 1st 
 
 2nd 
 
 3rd 
 
 4th 
 
 10 Miles ... 
 
 1-91 
 
 1-43 
 
 1-05 
 
 150 
 
 1-10 
 
 0-80 
 
 117 
 
 0-95 
 
 0-65 
 
 T60 
 
 1-30 
 
 0-80 
 
 17ft 
 
 1-29 
 
 0'9i 
 
 T53 
 
 ri7 
 
 0-82 
 
 o-i; 
 
 50 Miles .. 
 
 1-91 
 
 1-43 
 
 1-06 
 
 L'48 
 
 1-09 
 
 073 
 
 I'M 
 
 0-83 
 
 O'o9 
 
 T60 
 
 1-30 
 
 0'80 
 
 T69 
 
 T27 
 
 0-69 
 
 1-50 
 
 1-13 
 
 075 
 
 0'3E 
 
 100 Miles .. 
 
 1-91 
 
 vm 
 
 1-05 
 
 1-47 
 
 1-09 
 
 073 
 
 1-16 
 
 0-87 
 
 0-58 
 
 1-60 
 
 1-30 
 
 0-80 
 
 1-69 
 
 f27 
 
 0-89 
 
 1'50 
 
 1-13 
 
 07J 
 
 0-36 
 
 Including charge for luggage. 
 
 Distances. 
 
 FRANCE. 
 
 BELGIUM. 
 
 HOLLAND. 
 
 GERMANY. 
 
 
 
 
 
 Express. 
 
 Ordinary. 
 
 
 
 Express. 
 
 Ordinary. 
 
 
 1st 
 
 2nd 
 
 3rd 
 
 1st 
 
 2nd 
 
 3rd 
 
 1st 
 
 2nd 3rd 
 
 1st 
 
 2nd 3rd 
 
 1st 
 
 2nd 
 
 3rd 
 
 1st 
 
 2nd 
 
 3rd 
 
 4th 
 
 10 Miles ... 
 
 2-25 
 
 177 
 
 1-05 1-97 
 
 1-57 
 
 1-27 
 
 1-65 
 
 1-42 
 
 1-12 
 
 2'20 
 
 1-80 I'lO 
 
 2T4 
 
 1-4S 
 
 0-94 
 
 1-91 
 
 rs 
 
 0'8? 
 
 0'47 
 
 50 Miles ... 
 
 2' 16 
 
 1-60 1-05 176 
 
 T29 
 
 0-83 
 
 1-45 
 
 1'07 
 
 0-69 
 
 2-02 
 
 1-85 fOl 1-97 
 
 1-460-89 'l7 
 
 1-32 
 
 076 
 
 0-38 
 
 100 Miles ... 
 
 2-15 
 
 1-59 
 
 1-0 -.175 
 
 1-29 
 
 078 
 
 I'i.o 
 
 107 
 
 0-63 
 
 2'02 
 
 1-65 I'Ol T97 
 
 1-48 
 
 0-89 
 
 17P 
 
 1-32 
 
 07ft 
 
 0-33 
 
132 
 
 which, considering the luw transit and other rates in the former, 
 and the transit and special bargain rates in the latter, are satis- 
 factory. Such figures show that, in addition to the advantages 
 of better gradients and slower speed of trains, wagons and 
 trains are more fully loaded than in this country ; they show, 
 too, that notwithstanding the low tariff rates in many cases, the 
 additional charges referred to in Appendix I., page vii 
 over and above the tariff rates must yield a substantial 
 revenue. Nor should we lose sight of the fact that traffic 
 receipts in this country include, to a much greater extent than 
 in those countries, charges for loading and unloading. 
 
 In the passage which w 7 e have quoted it is said that " the 
 cost of materials " on the Continent is, " generally speaking, 
 higher." One cannot help observing the inconsistency of 
 maintaining that the competition of the other countries by 
 enjoying low railway rates injures the export trade of this 
 country, and that the railways here have the advantage of 
 obtaining fuel and rails cheaper. Is the latter statement 
 clearly well-founded in view of the fact that German rails 
 have been laid on some of the English lines, and that engines 
 have also been supplied by Continental firms competing with 
 home makers ? The truth, probably, is that for the purposes 
 of the present comparison the prices of coal and materials at 
 the pits and works in each country may be taken to be about 
 the same ; that here, as abroad, there is great diversity of 
 circumstances ; that in each country some companies, whose 
 railways are near collieries and ironworks, have the benefit 
 of the lowest prices, while others obtain their supplies by 
 sea or rail at an enhanced cost. 
 
 The chief item of expense in the working of railways, and 
 that which is of the greatest importance in making any com- 
 
133 
 
 parisons intending to show that rail way rates in this country 
 should be reduced, is that of wages ; an item of expenditure 
 ignored in the above statement. Here they are generally 
 higher, and the hours of labour are fewer, than in any of the other 
 countries referred to. It is difficult to make an absolutely 
 trustworthy comparison of the actual sums paid in salaries and 
 wages. Different systems of payment exist ; the allowances 
 made to the staff on the Continental lines in the way of house 
 rent, &c., and the amounts contributed by the companies to the 
 superannuation and other benevolent funds ought not to be 
 forgotten ; such contributions, especially in France, amount 
 in a year toa considerable sum. On the whole, however, we may 
 arrive at an approximately correct estimate by taking the total 
 amounts paid in salaries and wages and the average amount 
 paid per man per year. The following is the percentage 
 of wages as compared with the total working expenses. 
 1 England... 6O33 per cent. 3 Belgium ..5 7 '92 per cent. 
 
 2 France ...4675 
 
 4 Hollaud ...48-57 
 
 1. These figures may not be absolutely accurate, but every effort has 
 been made to make a fair comparison. To obtain them, each of the 
 twelve largest companies, owning in the aggregate 11,538 miles, hav 
 supplied the information. 
 
 2. The six great companies. 
 
 3. The State railways, from the published report. 
 
 4. The State, Holland and Dutch Khenish railways, fiom information 
 kindly supplied by them. 
 
 GERMANY. The " Statistische Nachrichten Yon den Eisenbahnen" 
 shows the expenses for salaries and wages paid by the German railways 
 (exclusive of 38,166,114 marks under the heading of shunting expenses, 
 as it is not known whether this item includes anything for wages) to be 48-40 
 per cent, of the gross working expenses, but as this in formation differs from 
 that otherwise obtained, and it is not known whether the latter includes any 
 staff expenses in respect of new works, it is not considered desirable to has 
 any conclusion* on either set of figures until they are verified. 
 
134 
 
 The hours of labour are an element in the matter. "We 
 do not go into detail, or endeavour to make a precise com- 
 parison. But it will not be disputed that, as a rule, they 
 are fewer here than on the Continental lines. Here, too, 
 there is, comparatively speaking, very little Sunday duty, 
 which is far from being the case abroad. On most of the 
 railways in this country it is the practice to provide at the 
 company's own cost clothing for such of their staff as wear 
 uniform. The Dutch companies also supply some mem- 
 bers of their ^aff with clothing. But in France, Belgium, 
 and, generally, in Germany, the cost of clothing supplied to 
 the uniform staff, which has been omitted in the comparisons, 
 is deducted from their wages by instalments. 
 
 For the reasons already stated, there is no small diffi- 
 culty in comparing the rate of wages per day or per week. 
 Although in this country annual allowances such as bonuses 
 for good conduct are known, wages are, as a general rule, 
 fixed sums per day or per week, increasing according to 
 the importance of duties and service. On some of the 
 Continental railways the allowances are in some instances a 
 considerable percentage of the fixed wages. ( l ) 
 
 The following table has been prepared from the best 
 information that could be obtained on the subject, and it may 
 fairly be taken as an approximate estimate of the average 
 wages paid : 
 
 (i) See Note on page 136. 
 
 NOTE. There is a difference between the statements of revenue receipts 
 and working expenses given in the "Statistische Nachrichten Von den 
 Eisenbahnen " and those otherwise obtained, but not of a material character 
 for the present purpose. 
 
135 
 
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136 
 
 Passing over the fact that in this country porters to 
 attend to passengers' luggage are provided by the companies, 
 that the class goods rates here include loading and unload - 
 
 NOTE. EVGLAND On some railways the 1st Class drivers are allowed 
 a premium of 10 a year for good conduct, and both drivers and firemen 
 are allowed lodging money, and also Sunday labour at the rate of 8 hours 
 per day. Signalmen are allowed bonuses for good conduct from 1 to 5 
 per annum, and guards are allowed ti'avelling expenses from 1/6 to 2/6 per 
 day and night. 
 
 FRANCE Premiums to drivers and firemen are allowed for economy of 
 fuel, regularity of service, and lodging expenses. Guards receive lodging 
 money when they have to sleep out and a percentage on the excess fares 
 collected, amounting together to about 4 16s. a year. Sums varying 
 from 2 to 10 per annum are allowed to the inferior grades of staff who 
 have to reside in Paris and other large towns where living is dear. 
 
 GERMANY The staff are classified into 5 divisions, all of which (ex- 
 cept Class 1, which includes Ministers, Presidents, &c., who do not 
 receive allowances), in addition to their fixed wages, receive allowances for 
 house rent, which vary accordi:ig to the town in which they reside. The 
 towns are also classified into six divisions as under: 
 
 
 A 
 
 1 
 
 2 
 
 3 
 
 4 
 
 6 
 
 Staff in Class 
 
 
 
 s. d. 
 
 B. 
 
 s. 
 
 s. 
 
 
 
 Do. 2 ... 
 
 60 
 
 45 
 
 36 
 
 30 
 
 27 
 
 27 
 
 Do. a ... 
 
 45 
 
 33 
 
 27 
 
 24 
 
 21 
 
 18 
 
 Do. 4 ... 
 
 27 
 
 21 12 
 
 18 
 
 15 
 
 10 16 
 
 9 
 
 Do. 5 ... 
 
 12 
 
 900 
 
 7 4 
 
 5 8 
 
 3 12 
 
 3 
 
 Head guards are in the 4th Class, under guards 5th, 1st Class Signal- 
 men 4th, and Porters and shunters 6th. Engine drivers, firemen and 
 guards are allowed expenses when away from home. Porters are not paid 
 by the railway companies, but are allowed to charge the passengers fixed 
 fees. 
 
 BELGIUM Engine Drivers and firemen are allowed premiums for 
 
137 
 
 ing, which they frequently do not abroad, and that, generally 
 speaking, a greater number of men are employed on the 
 railways in this country, there remains the fact, that the 
 difference between the percentage of wages paid on foreign 
 railways, as compared with the total cost of working the 
 railways, and the percentage of wages paid in the United 
 Kingdom is upwards of 4-,000,000. There is, moreover, 
 a great difference in the amount paid per person in England, 
 as is shown by the returns of the twelve companies who 
 have supplied the information, viz. : 
 
 s. d. 
 
 England 62 10 
 
 France 47 12 
 
 Belgium 41 2 3 
 
 Holland 34 3 10 
 
 The amount paid per person by the English railway 
 companies, whose lines comprise 11,538 miles, a gross 
 revenue of 52,904,920, and the total aggregate expenses 
 of which amount to 27,731,876, would probably be too 
 high an average for the United Kingdom. Assuming, 
 however, the difference in the amount per person paid in Eng- 
 land as compared with the other countries to be an average of 
 
 economy of fuel and regularity of working, amounting to as much as 20 a 
 year for drhers and 10 for firemen. Guards are also allowed bonuses 
 for regularity of working. 
 
 HOLLAND Enginemen and firemen are allowed premiums for economy 
 in fuel, varying from 3d. to 2/- per day ; and a mileage allowance in 
 addition. Guards also receive an allowance over a certain number of miles 
 travelled. Porters are not employed by the companies ; but in return for 
 the privilege of being allowed on the stations, they clean windows, sweep 
 offices, &c., and perform other services for the companies. 
 
138 
 
 only 10, and that tLe cost of wages in this country could be 
 reduced to that extent, there would be a saving of about 
 3,500,000 per annu^n. 1 
 
 So much for the grounds put forward to justify a 
 reduction of rates. Far from proving that working ex- 
 penses are less on lines in this country, and that this forms 
 grounds for reducing the rates, these figures clearly prove 
 the opposite to be the case. 
 
 (') The " Statistische Nachriuhten Von den Eisenbahnen" shows an 
 average of 39 6s. 6d. per person on the German railways, whereas the 
 other information, referred to at foot of page 133, gives the following 
 average per person : 
 
 Traffic and General Services. s. d. 
 
 Superintendence, Clerks, &c. ... ... 76 18 
 
 Workmen ... ... ... ... 31 4 
 
 Workshops. 
 
 Superintendence, Clerks, &c. ... ... 95 
 
 Workmen ... ... ... ... 45 12 
 
 An average of 53 8s. Od. per person. 
 
 NOTE. In Great Britain the costly systems of interlocking and 
 signalling, and the block working, so as to interpose between trains an 
 interval of space instead of time, are in operation to a very much greater 
 extent than on the Continent, thus involving a larger staff of trained men. 
 
139 
 
 Rates and Taxes on Railways in England anil on the Continent. 
 
 A large item in the expenses of railway companies in 
 this country is the ainount paid for rates and taxes other 
 than the Government duty. The matter is too important to 
 be passed over in general terms. In the United Kingdom the 
 amount paid by all the railway companies for rates 
 and taxes in the year 1884 was no less than 1,937,691. 
 This is exclusive of Government duty to the extent of 
 398,577 and of income tax on the net receipts amounting to 
 about 800,000. Including these items the total sum paid 
 for rates and taxes for the year was 3, 136,268. In England 
 and Wales alone the amount paid for that year was for 
 
 
 
 Rates and Taxes 1,664,660 
 
 Government Duty 369,677 
 
 Income Tax (about) 700,000 
 
 2,734,337 
 
 From the year 1871 inclusive to the end of 1884, the 
 following sums were paid in the United Kingdom for 
 
 
 
 Rates and Taxes 19,995,570 
 
 Government Duty 9,313,678 
 
 Income Tax (about) 7,600,000 
 
 36,909,248 
 
 No such payments as these are made to the Governments 
 or parishes by the railway companies in Belgium or Holland, 
 or in respect of the State lines, in Germany. In Belgium, 
 for instance, the railway companies pay no rates and taxes of 
 any kind except small sums to towns for local rates (which 
 amounted in the aggregate to only 1,468 for the year 1884), 
 
140 
 
 and a license duty or income tax to the State of 2 per cent, 
 on the annual profits amounting for the same year to 4,406, 
 a total of 5,874 for the year. 
 
 In Germany the whole amount paid by the railways for 
 rates and taxes in the same year was 261/221, together 
 with a State tax of 26,209, paid under the head of " tax 
 on profits," by the independent and semi-independent 
 companies only, and not by the State railways. This made a 
 total for the year of 287,130. 
 
 The railway companies in Holland do not pay any 
 rates and taxes, except a license duty to the State of 
 2 per cent, on the dividends paid to the shareholders. In- 
 deed, Aiticle No. 8 of the Convention of the 24th and 25th 
 May, 1876, for the working of the State railways by the 
 Dutch Company, stipulates that the railways shall be exempt 
 during the period of the Concession, from all Government 
 taxation or payments to towns or parishes. 
 
 In France the condition of things is different. 1 Al- 
 though there is no taxation on merchandise traffic, the 
 payment in respect of passenger and grande vitesse traffic, 
 which is added to and levied with, the railway charges, id 
 heavy, and amounted in the year to 4,683,937. 
 
 The other taxes paid by the railway companies 
 themselves, or by the holders ot* shares, &c., amounted to 
 1,490,415, making together a total for the year of 
 6,174,852. 2 
 
 Such are a few of the differences in the position and 
 rights of English and Continental railways, and those who 
 
 (') See <; Aucoc, Cours cT Administration," vol. 3, p. 345. 
 ( 2 ) Ihe taxes in France consist of : 
 
 1. A duty of frs. 2o-20 per cent, on pasiengcr fares and 
 
141 
 
 depreciate the former should explain whether they wish to 
 adopt all the practices of foreign lines the features un- 
 favourable to traders as well as the advantages, slow transit, 
 very limited liability for loss of goods or damages to them, 
 and exemption from fiscal burthens which English railways 
 bear and how the cost of working, especially in the item of 
 wages, can be reduced. 
 
 vitesse traffic, added to the railway charges, amounting to 
 3,436,161. 
 
 2. A stamp duty of 35 cents, on " recepisses " and 70 cents, on 
 
 consignment notes, also charged in addition to the rates, 
 amounting to 1,116,583. 
 
 3. A stamp duty of 10 cants, for every receipt of 10 frs. and 
 
 above, amounting to 60,328. 
 
 4. A charge of 15 cents, for postage of advice note of arrival of 
 
 goods, amounting to 70,857. 
 
 5. A tax of 10 frs. per kilometre for double lines and 5 frs. per 
 
 kilometre for single lines, plus 5 per cent, on the value of the 
 premises occupied by Agents, and 2 per cent, on warehouses, 
 workshops, &c. 
 
 6. License, excise, stamp, customs, and bond duties. 
 
 7. A tax of 120 to 150 frs. per kilometre worked, for the expense 
 
 of auditing and superintendence. 
 
 8. A stamp duty on shares and bonds of 1 per cent, of the 
 
 nominal capital. 
 
 9. An income tax of 3 per cent, on interest and dividends. 
 
142 
 
 SECTION XIV. 
 
 HIGH BATES AND TIIEIR EFFECT ON TRADE. 
 
 IT is not uncommon to attribute much of the existing depres- 
 sion of trade to rates charged by railways. Before the Itayal 
 Commission which lately investigated the subject, many 
 statements to that effect were made. Against their accuracy 
 there is a strong presumption in the fact that trade has been 
 in recent years depressed elsewhere, and in countries supposed 
 to enjoy lower rates than exist here. When particulars of 
 the exact nature of these complaints are furnished which is 
 seldom done it is found for the most part that there is no 
 real connection of cause and effect between railway charges 
 and depression in trade; that the latter revives or declines 
 independently of the former; that for the most part, the 
 evils complained of are beyond the power of railway com- 
 panies to remove ; and that the complaints are contradictory. 
 Two of the forms which these complaints have taken may be 
 noted. One is the statement that ( ] ) differential rates operate 
 in favour of the foreign producer, and that works are being 
 removed from inland to seaboard towns to save carriage. (-) 
 Obviously this grievance could be wholly abated only by 
 free carriage; producers on the sea coast, near points of 
 
 ( ; ) Mr. L. Cohen Debate on Railway and Canal Traffic Bill, 6th 
 May, 1880. Hansard, vol. cccv.. 428. 
 
 ( 2 ) See Second Ropoit, Minutes of Evidence, Mr. Muller. page 38, 
 Q. 1889. 
 
143 
 
 shipment, inevitably possess certain advantages. These again 
 could only be materially reduced by differential rates some- 
 what lessening the inland producer's geographical disadvan- 
 tages ; and to this remedy the persons loudest in their com- 
 plaints most strongly object. Another form which such 
 complaints take may be noted. The following extract is 
 from a paper sent in by the Mining Association of Great 
 Britain to the Royal Commission on Trade : 
 
 " The heavy trades of coal and iron are also unduly burdened by 
 1 ' the high rates and tolls charged by the Railway Companies. They 
 " are slowly but surely killing the trade of the country by their high 
 "charges and by the preference given to foreign countries." ( l ) 
 
 Charges against Railway Companies are, generally, 
 of a vague character. But this statement is sufficiently 
 definite to make it possible to test its accuracy by 
 comparing the rates charged for conveying the articles 
 referred to, viz., iron and coal, to some of the chief 
 ports in this country, with the corresponding rates of 
 other neighbouring countries. The following is a com- 
 parison of a few of the rates charged for coal and iron in 
 England with those to Belgian and German Ports : 
 
 ( ] ) Compare Sir Lowthian Bell's statement. "The results of my 
 " enquiry on the continent of Europe, and in the United States, justify 
 4 ' the assertion that foreign iron manufacturers as a rule possess no 
 "advantage over ourselves in these respects . . . That railway 
 " accommodation for the transport of fuel, ore, and limestone is afforded 
 "on terms somewhat cheaper in Great Britain than those charged on 
 "the Continent for like distances." (Appendix to part 1 of Second 
 Report of the Royal Commission on Dtpression of Trade, pages 345-361.) 
 
144 
 
 COMPARISON OF RAILWAY RATES CHARGED FROM VARIOUS 
 
 BELGIUM AND 
 
 
 Article. 
 
 From 
 
 To 
 
 Rate 
 per 
 ton. 
 
 Remarks. 
 
 
 
 
 s. d. 
 
 
 EMLAND... 
 
 Coal 
 
 Cwmbran ... 
 
 Newport 
 
 4| 
 
 In owner's wagons. 
 
 
 
 Risca 
 
 Newport ) 
 (Old Dock) \ 
 
 6 
 
 In owner's wagons. 
 
 
 
 Flimby 
 
 Maryport ... 
 
 6| 
 
 In Company's wagons, including 
 tipp ng. 
 
 
 
 Camerton ... 
 
 Workington 
 
 7 
 
 In owner's wagons, including 
 tipping. 
 
 
 
 Cockett 
 
 Swansea ... 
 
 9 
 
 In owner's wagons, including 
 tipping. 
 
 
 
 Gilgarran ... 
 
 Whitehaven 
 
 10 
 
 In Company's wagons,including 
 tipping. 
 
 
 
 Dynevor .. 
 
 Swansea ... 
 
 10 
 
 In owner's wagons, including 
 cost of shipment. 
 
 
 
 Coedcae .. 
 
 Cardiff 
 
 11| 
 
 In owner's wagons. 
 
 
 
 Mountain ~) 
 Ash ...j 
 
 Cardiff 
 
 1 
 
 In owner's wagons. 
 
 
 
 Felling 
 
 Monk wen r-} 
 mouth 
 Dock... ) 
 
 1 0| 
 
 In Company's wagons, including 
 cost of shipment. 
 
 
 
 Abertillery.. 
 
 Newport ") 
 (Old Dock) 3 
 
 1 1 
 
 In owner's wagons. 
 
 
 A 
 
 London- ") 
 derryCol- > 
 -liery... j 
 
 Tyne Dock.. 
 
 1 2^ 
 
 In Company's wagons, including 
 cost of shipment. 
 
 
 
 Burradon .. 
 
 
 
 1 4f 
 
 In Company's wagons, including 
 cost of shipment. 
 
 
 
 Collieries in"] 
 St.Heleu'8 
 District...) 
 
 Garston 
 
 1 5 
 
 In owner's wagons, including 
 use of dock and tipping. 
 
 
 ! 
 
 
 
 
 
145 
 
 COALFIELDS TO THE NEAREST PORTS IN ENGLAND, 
 GERMANY. 
 
 
 Article. 
 
 From 
 
 To 
 
 Bate 
 of 
 Kilogr 
 
 100 
 tons. 
 
 per ton 
 1000 
 ammes 
 
 KEMAEKS. 
 
 10 
 
 tons. 
 
 
 
 
 
 8. d 
 
 s. d 
 
 
 BELGIUM 
 
 Coal 
 
 Bascoup .. 
 
 Antwerp .. 
 
 1 7| 
 
 2 1 
 
 including 
 
 
 
 
 
 
 
 wagons. 
 
 
 
 i> 
 
 Ghent 
 
 i n 
 
 1 10 
 
 
 
 
 Jemappes .. 
 
 Antwerp .. 
 
 1 11 
 
 2 5 
 
 
 
 
 Mons 
 
 Antwerp .. 
 
 
 2 4 
 
 
 
 
 Charleroi .. 
 
 Antwerp .. 
 
 
 2 3 
 
 
 
 
 Fontaine- 
 
 
 
 
 
 
 
 1'Eveque.. 
 
 Antwerp .. 
 
 ... 
 
 2 3 
 
 
 
 
 
 
 50 
 
 10 
 
 
 
 
 
 
 tons 
 
 tons 
 
 
 GERMANY 
 
 Coal 
 
 Piestag 
 
 Bremen 
 
 3 5 
 
 
 
 
 
 Gelsenkir- 
 
 
 
 
 
 
 
 chen 
 
 'Amsterdam 
 
 4 11 
 
 5 9 
 
 * For quantities of 200 
 to 300 tons forwarded 
 
 
 
 it 
 
 * Antwerp ... 
 
 5 3 
 
 6 6 
 
 per day or by one 
 train, the rate from 
 
 
 
 Gelsenkir- 
 
 
 
 
 Gelsenkirchen to 
 
 
 
 chen 
 
 Hamburg ... 
 
 6 7 
 
 7 7 
 
 Amsterdam is 4/6 per 
 ton, and to Antwerp 
 
 
 
 GBOUP I. 
 
 
 
 
 5/- per ton. 
 
 
 
 Camen, &c. 
 
 Bremen and 
 
 
 
 
 
 
 
 Hamburg. 
 
 5 6 
 
 7 1 
 
 
 
 
 GHOCP II. 
 
 
 
 
 
 
 
 Bochum, &c. 
 
 Bremen and 
 
 
 
 
 
 
 
 Hamburg. 
 
 5 7 
 
 ... 
 
 
 
 
 GROUP III. 
 
 
 
 
 
 
 
 Meiderich&c. 
 
 Bremen and 
 
 
 
 
 
 
 
 Hamburg. 
 
 5 8 
 
 ... 
 
 
 FRANCE ) 
 
 
 
 
 
 
 
 HOLLAND; 
 
 No Coal 
 
 exported. 
 
 
 
 
 
146 
 
 COMPARISON OF RATES FOR 
 
 
 Article. 
 
 From 
 
 To 
 
 Kate 
 
 jier 
 ton. 
 
 EEMARKS. 
 
 
 Iron (Class A.) 
 
 Workington 
 
 Whitehaven 
 
 s. d. 
 1 2 
 
 In Company's wagons. 
 
 
 
 Cwinbran. .. 
 
 Newport .. 
 
 1 4 
 
 In Company's wagons. 
 
 
 
 Merthyr ... 
 
 Cardiff ... 
 
 2 2 
 
 In Company's wagons. 
 
 
 
 Darlington. 
 
 Middlesboro' 
 
 1 9 
 
 In Company's wagons. 
 
 
 
 EbbwVale... 
 
 Newport ") 
 (Old Dock)] 
 
 1 OJ 
 
 In Owner's wagons. 
 
 
 
 Dowlais ... 
 
 Cardiff 
 
 2 71 
 
 In Company's wagons. 
 
 
 
 Briton Ferry 
 
 Swansea ... 
 
 2 6 
 
 
 
 
 Cwmbran ... 
 
 Cardiff ... 
 
 2 10 
 
 
 
 
 Tondu 
 
 
 
 3 4 
 
 In Company's wagons. 
 
 
 
 Darlington 
 
 Tyne Ports 
 
 3 4 
 
 (4-ton lots.) Ditto. 
 
 
 
 it 
 
 Gateshead... 
 
 3 9 
 
 In Company's wagons. 
 
 
 
 Tondu 
 
 Swansea ... 
 
 3 9 
 
 In Company's wagons. 
 
 
 
 Briton Ferry 
 
 Cardiff 
 
 3 
 
 In Company's wagons. 
 
 
 
 Darlington. 
 
 Sunderland 
 
 3 9 
 
 In Company's wagons. 
 
147 
 
 IRON AND STEEL GOODS. 
 
 
 
 
 
 Rate per Ton of 1,000 Kilogrammes. 
 
 
 Article. 
 
 From 
 
 To 
 
 
 10 
 ton 
 
 5 
 
 tone 
 
 Un 
 
 dei- 
 ton 
 
 
 
 10 
 
 tOU 6 
 
 5 
 tuns 
 
 Un- 
 der 5 
 ions 
 
 
 
 
 
 s.d 
 
 s.d 
 
 s.d 
 
 s. t 
 
 
 
 s.d 
 
 
 
 BELGIUM 
 
 Iron 
 
 La Louviere 
 
 Antwerp 
 
 ... 
 
 3 7 
 
 
 
 Ghent . 
 
 
 3 6 
 
 
 ... 
 
 
 
 Charleroi .. 
 
 M 
 
 ... 
 
 3 8 
 
 5 1 
 
 S 
 
 ti 
 
 ... 
 
 3 8 
 
 ... 
 
 ... 
 
 
 
 Liege 
 
 i 
 
 
 3 8 
 
 5 4 
 
 9 
 
 a 
 
 
 ... 
 
 
 ... 
 
 
 
 Marcinelle 
 
 n 
 
 
 3 8 
 
 
 
 
 
 
 
 
 
 
 10 % added 
 
 if loaded 
 
 in 
 
 ove 
 
 edtr 
 
 uck 
 
 
 
 
 
 
 
 
 
 
 10 T 
 
 ons 
 
 51 
 
 ons 
 
 
 10 
 
 ons 
 
 5T 
 
 ons 
 
 
 Steel in bars 
 
 
 
 
 | 
 
 
 a 
 
 
 
 
 
 a' 
 
 S 
 
 
 
 
 and bun- 
 
 
 
 
 
 ss 
 
 
 
 c 
 
 S 
 
 S 
 
 
 
 dles, Iron 
 
 
 
 
 I 
 
 o 
 
 1 
 
 
 8. 
 
 Q 
 
 | 
 
 A 
 
 Q 
 
 g 
 
 
 in bars and 
 
 
 
 
 
 
 
 
 
 
 
 
 
 sheets un- 
 
 Chatelineau 
 
 Antwerp 
 
 3 8 
 
 4 4 
 
 5 2 
 
 6 
 
 |f 
 
 3 
 
 4 1 
 
 5 2 
 
 6 9 
 
 
 polished, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Bandages 
 
 Marchienne 
 
 
 3 6 
 
 4 
 
 5 1 
 
 6 
 
 " 
 
 3 
 
 4 
 
 5 1 
 
 6 e 
 
 
 for wheels 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Castings, 
 
 Acoz 
 
 
 3 9 
 
 4 1 
 
 5 4 
 
 
 
 3 8 
 
 4 2 
 
 5 4 
 
 7 
 
 
 Rails, Cast- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 iron Tubes, 
 Nuts.Bolts 
 
 Seraing .. 
 
 ii 
 
 3 10 
 
 4 3 
 
 5 5 
 
 7 3 
 
 it 
 
 4 
 
 4 6 
 
 5 8 
 
 7 9 
 
 
 Fish-plates 
 &c. 
 
 Thy-le- 
 Chateau... 
 
 ,, 
 
 3 9 
 
 4 2 
 
 5 '. 
 
 7 2 
 
 M 
 
 3 10 
 
 4 2 
 
 5 4 
 
 7 I 
 
 
 
 Athus 
 
 II 
 
 4 11 
 
 ) t 
 
 6 6 
 
 
 
 
 4, 11 
 
 5 6 
 
 6 7 
 
 ... 
 
 
 
 
 
 
 10 
 
 5 
 
 
 
 
 10 
 
 5 
 
 
 
 
 
 
 
 tons 
 
 tons 
 
 
 
 
 tons 
 
 tens 
 
 
 
 Anchors and 
 
 Clabeg ... 
 
 M 
 
 
 4 3 
 
 > * 
 
 
 M 
 
 
 i . 
 
 5 6 
 
 ... 
 
 
 Cables, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Carriage 
 
 
 
 
 
 
 
 
 
 1 Q 
 
 
 
 
 brakfs, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Springs, 
 
 LaLouviere 
 
 
 
 
 
 
 
 
 
 
 
 
 boilers, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ironmon- 
 
 Honceau- 
 
 
 
 
 
 
 
 
 
 
 
 
 gery,&c. &c 
 
 sur-Sambre 
 
 II 
 
 
 6 
 
 6 6 
 
 ... 
 
 II 
 
 
 5 
 
 6 
 
 ... 
 
 
 
 Marchienne 
 
 II 
 
 ... 
 
 5 1 
 
 6 7 
 
 
 ,, 
 
 
 5 1 
 
 3 6 
 
 ... 
 
 
 
 Chatelineau 
 
 11 
 
 ... 
 
 5 2 
 
 6 9 
 
 
 
 
 
 2 
 
 3 9 
 
 ... 
 
 
 
 Acoz 
 
 II 
 
 
 5 4 
 
 7 
 
 
 II 
 
 
 4 
 
 7 
 
 ... 
 
 
 
 Liege 
 
 
 
 4 
 
 
 
 
 
 
 > 8 
 
 7 8 
 
 
 
 
 Angleur ... 
 
 
 
 
 6 
 
 2 
 
 
 II 
 
 
 8 
 
 r 9 
 
 IM 
 
 
 
 Seraing ... 
 
 II 
 
 ... 
 
 6 
 
 3 
 
 
 II 
 
 
 8 
 
 r 10 
 
 ... 
 
 
 
 Thy-le- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Chateau 
 
 
 
 f! 
 
 2 
 
 
 
 
 
 
 
 
 
 Tilleur ... 
 
 
 
 ... 5 6 
 
 2 
 
 
 II 
 
 
 8 
 
 ' 9 
 
 -., 
 
148 
 
 COMPARISON OF RATES FOR IRON AND STEEL GOODS continued. 
 
 
 Article. 
 
 From 
 
 To 
 
 10 
 
 tons 
 
 5 
 tons 
 
 Un- 
 der 
 
 REMARKS. 
 
 
 
 
 
 Open 
 
 Open 
 
 5 
 
 tons 
 
 
 HOLLAITD 
 
 Iron Rails, 
 
 Gouda 
 
 Rotterdam 
 
 s d 
 
 s. d 
 2 
 
 8. (I 
 
 Excluding loading 
 
 
 Bar, Steel, 
 
 
 
 
 
 
 and unloading. 
 
 
 Iron, &c. 
 
 
 
 t< 
 
 
 ... 
 
 3 
 
 Including 
 
 
 
 Haarlem .. 
 
 Amsterdam 
 
 , 
 
 2 
 
 
 Excluding 
 
 
 
 M 
 
 
 
 ( 
 
 
 2" 4 
 
 Including 
 
 
 
 >> 
 
 Rotterdam 
 
 
 3" 6 
 
 
 Excluding 
 
 
 
 Utrecht .'.' 
 
 Amsterdam 
 
 
 2" 4 
 
 4" 2 
 
 Including 
 Excluding 
 
 
 
 
 
 
 
 4 4 
 
 Including ,, 
 
 
 
 
 
 
 
 Un- 
 
 
 
 
 
 
 10 
 
 5 
 
 der 
 
 
 
 
 
 
 tons 
 
 tons. 
 
 tons 
 
 
 GERMANY 
 
 Iron (Bar, 
 
 Peine 
 
 Bremen 
 
 6 8 
 
 9 1 
 
 19 5 
 
 
 
 Sheet, Coarse 
 
 Oberhausen 
 
 Amsterdam 
 
 5 4 
 
 10 4 
 
 18 6 
 
 
 
 Iron and 
 
 Dortmund ... 
 
 
 6 4 
 
 11 
 
 20 11 
 
 
 
 Steel Goods 
 
 
 Bremen 
 
 6 5 
 
 13 1 
 
 23 1 
 
 
 
 Tin Plates, 
 Galvanized 
 
 Oberhausen 
 Dortmund ... 
 
 Rotterdam... 
 
 6 11 
 
 6 7 
 
 14 
 
 30 2 
 
 
 
 Iron Wire, &c. 
 
 Cologne 
 
 Antwerp ... 
 
 7 6 
 
 
 ... 
 
 
 
 
 Dusseldorf... 
 
 Antwerp ... 
 
 8 6 
 
 ... 
 
 
 
 
 
 
 
 8 10 
 
 ... 
 
 
 
 
 
 
 
 9 4 
 
 
 
 
 
 
 Schwerte ... 
 
 Bremen 
 
 6 6 
 
 
 ... 
 
 
 
 
 Eseen 
 
 Antwerp ... 
 
 9 10 
 
 ... 
 
 ... 
 
 
 
 
 Schalke ... 
 
 
 
 
 
 ... 
 
 
 
 
 
 Herdecke ... 
 
 Bremen 
 
 6 8 
 
 ... 
 
 ... 
 
 
 
 
 Bochum 
 
 Antwerp ... 
 
 4 
 
 ... 
 
 ... 
 
 
 
 
 Haspe 
 
 Bremen 
 
 6 10 
 
 ... 
 
 ... 
 
 
 
 
 Herdecke ... 
 
 Hamburg ... 
 
 9 1 
 
 ... 
 
 ... 
 
 
 
 
 Dortmund ... 
 
 Antwerp ... 
 
 1 
 
 ... 
 
 .. 
 
 
 
 
 Schwerte ... 
 
 Bremerhafen 
 
 7 11 
 
 ... 
 
 .. 
 
 
 
 
 Bochum 
 
 ,, 
 
 8 2 
 
 ... 
 
 .. 
 
 
 
 
 Schwerte ... 
 
 Hamburg ... 
 
 8 11 
 
 ... 
 
 .. 
 
 
 
 
 Essen 
 
 9 
 
 9 2 
 
 ... 
 
 .. 
 
 
 
 
 Haspe 
 
 l 
 
 9 2 
 
 ... 
 
 .. 
 
 
 
 
 Osnabruck. . 
 
 Antwerp ... 
 
 4 7 
 
 
 M 
 
 
 
 
 Dillingen . . 
 
 Bremerhafen 
 
 5 3 
 
 
 .. 
 
 
 
 
 Castrop 
 
 Stettin 
 
 5 10 
 
 ... 
 
 
 
 
 
 Burbach . . 
 
 Bremerhafen 
 
 5 10 
 
 ... 
 
 .. 
 
 
 
 
 Brebach ... 
 
 ,, 
 
 6 o 
 
 ... 
 
 .. 
 
 
 
 
 Herdecke ... 
 
 Stettin 
 
 6 2 
 
 ... 
 
 .. 
 
 
 
 
 Essen 
 
 ... 
 
 6 4 
 
 ... 
 
 .. 
 
 
 
 
 Dillengen ... 
 
 Hamburg ... 
 
 6 5 
 
 ... 
 
 
 
 
 
 Duisbourg... 
 
 Stettin 
 
 8 
 
 ... 
 
 .. 
 
 
 
 
 Nerdingen... 
 
 99 
 
 7 4 
 
 ... 
 
 .. 
 
 
 
 
 Hanover ... 
 
 Antwerp ... 
 
 8 
 
 ... 
 
 ... 
 
 
 
 
 Rothe Erde 
 
 Stettin 
 
 9 6 
 
 ... 
 
 ... 
 
 
 
 
 Neunkirchen 
 
 If ' 
 
 20 2 
 
 ..i 
 
 ... 
 
 
 
 
 Burbach ... 
 
 M 
 
 8 
 
 ... 
 
 ... 
 
 
 
 
 Dillengen ... 
 
 
 1 4 
 
 ... 
 
 ... 
 
 
 FRANCE ... 
 
 No export 
 
 traffic. 
 
 
 
 
 
 
 NOTK. The truck load rates are for open trucks. Extra is charged for tarpaulins if the 
 goods are required to be covered. 
 
149 
 
 Such figures are a conclusive answer to charges of the 
 sweeping character we have quoted. They are a warn- 
 ing of the peril of generalizing from a few hastily col- 
 lected local instances. The owners of some inland col- 
 lieries and manufactories, not so favourably situated as their 
 rivals, might have reason to complain there would be 
 plausibility in the statements we have quoted -if English 
 coal and iron were inferior to foreign, and could not bear 
 the same charges as foreign products, or if collieries and 
 iron works, near the sea, were unable to supply more coal 
 and iron than they now do. Neither supposition is true. 
 The house and steam coal raised at some of the English col- 
 lieries named in the foregoing tables is probably the best 
 in the world. The iron and steel are equal, if not superior, 
 to any produced; and the districts in which the collieries and 
 works are situated can (if only there were the demand, 
 which, unfortunately, there is not) produce much more than 
 they do. In these circumstances, with rates so favourable 
 as those which are quoted, there appears to be absolutely 
 no ground for the crude allegation that railway rates are 
 the cause of the diminished exportation of either coal, iron, 
 or steel. 1 
 
 As regards the conveyance of minerals and goods, there 
 is no sign of decline of trade, far less that it is " slowly, but 
 
 (*) The inflated prices charged in 1873-4 led to the establishment of 
 new collieries in Glamorganshire and Monmouthshire, which raise about 
 6,000,000 tons per annum; this, with the increased output of the then 
 existing collieries, is equal to an increase of about 50 per cent, of the previous 
 tonnage raised in these counties which, with about 30 per cent, increase in 
 other parts of the country, has prevented colliery proprietors obtaining a 
 reasonable profit since 1875, and probably will do so until the demand over- 
 takes the supply. 
 
150 
 
 surely killed by high rates and tolls." Taking three tests : 
 receipts from minerals and goods, tonnage conveyed and 
 amount produced it will be seen that the figures stated in 
 Appendix II. indicate no decline. The volume of trade 
 is larger, lower prices may rule ; but this will scarcely be 
 attributed to the action of rates. 
 
 Even when foreign rates seem lower, the difference is 
 often more apparent than real. With few exceptions the 
 English rates for merchandise traffic include the charges for 
 loading and unloading, collection and delivery, and all the 
 other services connected with conveyance. On the other 
 hand, the foreign rates are exclusive of collection and 
 delivery, and of the various other services of booking, weigh- 
 ing, advising, stamping freight note, &c., and also of the cost 
 of loading and unloading, except in the case of part loads in 
 Belgium, where the rates include compulsory charges for 
 loading and unloading. 1 
 
 In judging of the effect of rates in encouraging foreign 
 competition, one circumstance must not be lost sight of. If 
 railways in this country do not carry all species of mer- 
 chandise traffic at as low rates per ton per mile as some of 
 those charged on railways in countries where, not only has 
 the cost of construction been less than here, but where the 
 lines are owned or subsidised by the State, such a fact is not 
 conclusive. To determine how far rates charged in this 
 country really affect the ability of manufacturers to compete 
 with foreign rivals, the charges per ton per mile must not 
 alone be considered. The gross rate per ton from the place 
 of production to the port of export is important. A 
 
 (') Sec Appendix I., page vii. 
 
151 
 
 manufacturer cannot fairly say that he is prevented from 
 competing with his foreign rivals by rates less in the 
 aggregate than those paid by the latter. Otherwise one 
 whose works were situated within 20 miles of a seaport, 
 and who paid l|d. per ton per mile for the conveyance of 
 his goods, might with equal justice say that he could not 
 compete with another manufacturer whose works were 
 tO miles from the port of shipment, and who paid only a 
 Id. per ton per mile. 2s. Id. is less than 4s. 2d., however the 
 sums may be made up. Now, such superiority of situation 
 English manufacturers, as a rule, must from the nature of 
 things enjoy. A glance at a map will show that in England 
 no such distances have to be traversed to get to the seaboard 
 as in Germany, France, and, in some instances, Belgium. 
 In England there is no place 100 miles distant from the 
 coast, and so numerous are the ports, and so near to them, 
 relatively speaking, are the great coal districts and centres 
 of other industries and manufactures, that producers of coal 
 are more favourably situated, and other producers are, in 
 general, more favourably situated than those on the 
 Continent, especially as compared with those of France and 
 Germany. To illustrate this fact, a few examples of 
 various manufacturing centres may be given. 
 
152 
 
 
 ENGLAND. 
 
 
 HOLLAND. 
 
 
 PORTS. 
 
 
 
 PORTS. 
 
 Places of 
 Production. 
 
 1 
 
 "5 
 
 | 
 
 8 
 
 1 
 
 p' 
 c 
 
 P 
 
 | 
 
 4 
 
 s 
 
 Jj 
 
 
 Places of 
 Production, 
 
 terdam. 
 
 & 
 
 
 5 
 
 
 O 
 
 o 
 
 * 
 
 9 
 
 n 
 
 oj 
 W 
 
 
 
 | 
 
 
 
 
 
 
 
 
 Mi 
 
 les 
 
 
 
 
 
 
 Mi 
 
 lea. 
 
 Hardware, 
 
 Birmingham 
 
 97 
 
 
 
 112 
 
 
 ill 
 
 '90 
 
 
 
 Hardware 
 
 Gouda 
 
 32 13 
 
 Cutlery, &c. 
 
 Sheffield 
 
 73 
 
 58 
 
 69 
 
 36 
 
 
 161 
 
 
 
 
 Manufac- 
 
 Haarlem 
 
 14 
 
 42 
 
 
 
 
 
 
 
 
 
 
 
 
 tured iron 
 
 Utrecht 
 
 12 
 
 33 
 
 Agricultural 
 Machinery 
 
 [pswich 
 
 ... 
 
 
 
 
 
 
 
 21 
 
 
 Goods and 
 Machinery 
 
 iilburg 
 
 70 
 
 41 
 
 Cotton, 
 
 Manchester... 
 
 31 
 
 90 
 
 
 f!8 
 
 88 
 
 183 
 
 
 
 
 Cotton, 
 
 Deventer ... 
 
 7d 
 
 95 
 
 Woollen, 
 
 Leeds 
 
 75 
 
 51 
 
 90 
 
 38 
 
 94 
 
 186 
 
 
 
 
 Woollen 
 
 Hengelo 
 
 94 
 
 113 
 
 Drapery.and 
 
 Bradford ... 
 
 71 
 
 60 
 
 82 
 
 44 
 
 85 
 
 191 
 
 
 
 
 Goods, &c. 
 
 Enschede ... 
 
 99 
 
 US 
 
 Cloth Goods 
 
 Trowbridge ... 
 
 
 
 
 
 
 
 24 
 
 
 
 
 Alinelo 
 
 97 
 
 116 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Oldenzaal ... 
 
 l'l 
 
 120 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Amersfoot .. 
 
 27 
 
 47 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Leiden 
 
 32 
 
 24 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Eindhoven ... 
 
 76 
 
 b7 
 
 
 FRANCE. 
 
 BELGIUM. 
 
 
 PORTS. 
 
 
 POBTS. 
 
 Places of 
 Production. 
 
 . 
 
 
 
 4 
 
 i 
 
 . 
 
 g 
 
 1 
 
 2 
 
 5 
 
 Places of 
 Production. 
 
 d 
 
 .J 
 
 
 a 
 1 
 
 1 
 
 Dunkii 
 
 I 1 
 
 I 
 
 
 i 
 
 1 
 
 i 
 
 I 1 
 
 
 1 
 
 c 
 
 
 
 
 
 
 
 
 M 
 
 le 
 
 s. 
 
 
 
 
 
 
 Mi 
 
 ea 
 
 Cotton, 
 
 Amiens 
 
 51 
 
 
 
 76 
 
 
 
 
 
 
 Hardware, 
 
 Acoz 
 
 7S 
 
 7. 
 
 Woollen, 
 
 Roubaix .. 
 
 
 
 56 
 
 
 
 
 
 
 
 Cutlery 
 
 Clabecq 
 
 41 
 
 4{ 
 
 Velveteen, 
 Drapery, 
 
 Tourcoing ... 
 Paria 
 
 
 142 
 
 58 
 
 Ml 
 
 156 
 
 83 
 
 103 
 
 143 
 
 184 
 
 
 and Agri- 
 cultural 
 
 Chatelinep.u 
 Mart'hienne 
 
 69 
 65 
 
 6i 
 
 and Fancy 
 Goods. 
 
 St. Quentin 
 Rheims 
 
 06 
 
 
 125 
 
 131 
 
 176 
 
 
 
 
 
 140 
 
 M'chin'ry, 
 
 ctC. 
 
 Angleur 
 Louvain 
 
 31 
 
 9' 
 
 5] 
 
 
 Elbeuf 
 
 
 55 
 
 
 
 
 
 
 
 
 
 Lidge 
 
 74 
 
 9, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Tubize 
 
 44 
 
 4^ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Charleroi ... 
 
 66 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Cotton, 
 
 Woollen 
 
 La Louviere 
 Monceau- 
 
 61 
 
 SI 
 
 
 
 
 
 
 
 
 
 
 
 
 Drapery 
 
 sur-Sambre 
 
 63 
 
 6, 
 
 
 
 
 
 
 
 
 
 
 
 
 Goods, &c, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Verviers .. 
 
 90 
 
 IK 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Dinant 
 
 72 
 
 91 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Loth 
 
 38 
 
 4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Courtrai .. 
 
 67 
 
 3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Alost 
 
 31 
 
 1 
 
153 
 
 
 
 GERMANY. 
 
 
 
 PORTS. 
 
 
 Places of 
 
 
 
 1 
 
 
 
 . 
 
 
 bib 
 
 
 Production. 
 
 4 
 
 i 
 
 1 
 o 
 
 d 
 
 f 
 
 1 
 
 1 
 
 1 
 
 
 
 P 
 
 = 
 
 Ej 
 
 +^ 
 
 > 
 
 "oQ 
 
 -*3 
 
 1 
 
 
 
 
 
 3 
 
 
 
 3 
 
 "{H 
 
 B 
 
 "*D 
 
 a 
 
 
 
 PQ 
 
 W 
 
 n 
 
 CO 
 
 <5 
 
 
 tf 
 
 
 
 
 Miles. 
 
 Hardware, Iron, Steel, 
 Goods, Cutlery, &c. 
 
 Dortmund 
 Essen 
 
 147 
 
 158 
 
 217 
 227 
 
 Ib6 
 196 
 
 381 
 403 
 
 164 
 147 
 
 143 
 
 124 
 
 133 
 
 ISO 
 
 
 Solingen ... 
 
 190 
 
 259 
 
 229 
 
 4'J4 
 
 144 
 
 156 
 
 165 
 
 ir,4 
 
 
 Oberhausen 
 
 159 
 
 229 
 
 197 
 
 412 
 
 141 
 
 116 
 
 125 
 
 17fi 
 
 
 Dillengen 
 
 359 
 
 428 
 
 37 
 
 566 
 
 262 
 
 307 
 
 304 
 
 137 
 
 Agricultural Machin- 
 ery and other Ma- 
 
 Dusseldorf 
 Strasbourg.. 
 
 179 
 449 
 
 248 
 
 490 
 
 217 
 
 487 
 
 425 
 563 
 
 124 
 
 304 
 
 136 
 
 384 
 
 145 
 381 
 
 157 
 166 
 
 chinery 
 
 Vienna 
 
 632 
 
 619 
 
 670 
 
 496 
 
 745 
 
 769 
 
 759 
 
 300 
 
 
 Darmstadt .. 
 
 311 
 
 351 
 
 349 
 
 440 
 
 278 
 
 305 
 
 302 
 
 19 
 
 Cotton, Woollen Goods, 
 
 Elberfield .. 
 
 176 
 
 245 
 
 214 
 
 409 
 
 142 
 
 152 
 
 161 
 
 160 
 
 &c 
 
 Barmen 
 
 173 
 
 242 
 
 211 
 
 406 
 
 144 
 
 154 
 
 163 
 
 162 
 
 
 Berlin 
 
 187 
 
 178 
 
 234 
 
 84 
 
 485 
 
 394 
 
 414 
 
 289 
 
 
 Crefeld .. 
 
 184 
 
 253 
 
 222 
 
 435 
 
 117 
 
 132 
 
 130 
 
 163 
 
 Such natural disadvantages foreign countries have, by 
 special rates, sought to diminish, but they cannot be wholly 
 effaced. 
 
 It is a curious circumstance that in the discussion of the 
 problem of railway rates on the Continent, wholly different 
 language is employed with reference to English railways. 
 Here, it is common to hold up foreign railways as models of 
 cheapness and efficiency ; there, in the discussions which 
 have taken place in France and Italy on the same subject, 
 the opposite course has been pursued. English railways 
 have been extolled as worthy of imitation ; they have often 
 been praised for the very qualities in which it has been 
 alleged in recent discussions that they are wanting. Can 
 both views be right ? Is not this deprecation of home 
 railways, this vague praise of foreign Jines 3 sometimes an 
 
154 
 
 example of a common artifice of controversy ? Is it not often 
 an illustration of the tendency to treat omne ignotum pro 
 magnifico ? Very different from this loose, unverified de- 
 precation is the opinion of those foreign observers who have 
 carefully examined the question. This might be illustrated 
 by many official documents ; but the following quotation 
 from a report of M. Richard Waddington to the Chamber 
 of Deputies may suffice : 
 
 " Comparison between the French, and foreign rates has often 
 " been made in Parliament, and the defenders of our tariff have pre- 
 " sented it as favourable to our French companies ; but this comparison 
 "can only justly be made, provided the conditions of delay and 
 " distance are taken into consideration. Now, in England, the delays are 
 " extremely short, merchandise which leaves Manchester in the evening 
 " being delivered in London next day, slow goods trains hardly 
 " existing, and the consignee placed rapidly in possession of his goods, 
 " avoiding the loss of interest which, under the French system, tends 
 " to increase the amount of charges. On the other hand, in view of a 
 " well-known principle, the longer the distance the lower the charge 
 " per kilometre, but the average distance of 135 kilometres (84 miles) 
 " in the French system is greater than the average distance travelled 
 " on the railways of Great Britain, of Belgium, and of Alsace- 
 ' ' Lorraine. From the figures which have been already quoted, and 
 " the documentary evidence which we attach, we are led to conclude 
 " that the conditions and rate of carriage of merchandise in France are 
 " less favourable than those by which our nearest neighbours are 
 " benefited ; therefore, far from being able to share the optimist view 
 " to which we have already alluded, we fear that we can only report 
 " that the comparison is really unfavourable." 1 
 
 Such facts are familiar to foreign merchants and 
 traders ; and it might be well in future discussions of the 
 comparative merits and efficiency of English and Continental 
 railways, to gather information as to the latter from 
 
 (i) Appendix 31 to Report from Select Committee on Railways (Hales and 
 Fares), 1881-2, Vol. II. 
 
155 
 
 persons who are conversant with their working, and not 
 from those who can know them only imperfectly and in- 
 directly, and who may have an interest in praising them to 
 the disadvantage of the former. 
 
 If high rates impede the progress of trade it must be by 
 raising the prices of commodities, and so diminishing the 
 demand for them, or bv seriously reducing th& profits of 
 producers. Have those who complain of the effect of rates 
 on prices established the existence of either of these results ? 
 They have had before them, as a rule, only a few special 
 instances of unfavourable rates. They have ignored the mass 
 of cases in which the charge for conveyance is a trifling 
 element in price. They have not, as would be but fair, taken a 
 large group of articles, and noted how insignificant is the cost 
 of transport as compared with other charges, how small is the 
 rate of profit of the railways as compared with the charges 
 of the manufacturers and distributors. Here it is not right 
 to stand merely on the defensive ; we are well warranted 
 in saying that if, fortunately, trade is not more depressed 
 than it is, we owe this in no small degree to the efficiency 
 of the railway system which has aided the manufacturer 
 and producer in their difficulties. Economists are agreed 
 that wages and salaries must bear some relation to cost of 
 living, and must eventually rise if that becomes permanently 
 dearer. Everywhere, but in great towns especially, railways 
 have prevented the rise in the cost of provisions. They have 
 made it possible for people to obtain food from great distances 
 at low prices, and thus for employers to obtain labour at prices 
 which might not have been possible but for the cheapness of 
 provisions. The few figures given in the following table 
 may be instructive : 
 
Distance. 
 Miles. 
 
 Rate per Rate per 
 toil. stone of 8 Ibs, 
 
 Rate per 
 Ib. 
 
 
 
 d. 
 
 d. 
 
 42 
 
 20/- C. & LX 
 
 0-857 
 
 107 
 
 154 
 
 40/- 
 
 1-714 
 
 214 
 
 120 
 
 40/- 
 
 1-714 
 
 214 
 
 115 
 
 40/- 
 
 1-714 
 
 214 
 
 70 
 
 29/2 
 
 1-250 
 
 156 
 
 188 
 
 65/- 
 
 2-357 
 
 295 
 
 516 
 
 67/6 
 
 2-893 
 
 362 
 
 776 
 
 90/- 
 
 3-857 
 
 482 
 
 156 
 
 FRESH MEAT is carried to London from : 
 
 Aylesbury ... 
 Grimsby 
 Castle Cary 
 Norwich 
 Ipswich 
 York 
 
 Aberdeen ... 
 Stromness ... 
 
 POTATOES (Old), CARROTS, PARSNIPS, TURNIPS, are carried to London 
 from : 
 
 Banbury 
 
 York 
 
 Selby 
 
 Chippenham ... 
 Aberdeen 
 Sunderland ... 
 
 GREEN VEGETABLES are carried from Cookham to London, 27 miles, at 
 11/8 per ton, C. & D. in one ton lots, or 7d. per cwt. 
 
 BACON is carried from Calne to London, 99 miles, in one ton lots at 
 22/6 per ton ; l/l|d. per cwt., or -12d. per Ib. 
 
 CHEESE is carried from Chippenham to London, 94 miles, at 27/6 per 
 ton, 1/4^ per cwt., or -147d. per Ib. ; and from Cirencestcr to 
 London, 96 miles, at 23/4 per ton, 1/2 per cwt., or '12od. per Ib. 
 
 MILK is carried from Shrivenbam to London, 72 miles \ for Id. per im- 
 ,, Swindon ,, 77 ., ' perial gallon. 
 
 Distance. 
 Miles. 
 
 Rate per ton, 
 S to S, 
 
 Rate per 
 cwt, 
 
 Rate per 
 Ib. 
 
 
 
 d. 
 
 d. 
 
 76 
 
 8/9 
 
 
 
 047 
 
 188 
 
 15/- 
 
 9 
 
 080 
 
 174 
 
 13/4 
 
 8 
 
 071 
 
 94 
 
 10/10 
 
 6 I 
 
 058 
 
 516 
 
 SO/- 
 
 1/6 
 
 160 
 
 269 
 
 18/4 
 
 11 
 
 098 
 
157 
 
 FISH is carried to London at the following rates (per Ib.) : 
 
 
 WICK. 
 
 WHITBT. 
 
 GRIMSBY. 
 
 
 
 749 Miles. 
 
 244 Miles. 
 
 151 Miles. 
 
 
 
 S 
 
 c 
 
 % 
 
 . 
 
 % 
 
 a 
 
 
 Description, 
 
 iji.3 
 
 I 
 
 Si 
 
 J 
 
 M 
 
 I 
 
 
 
 
 
 if 
 
 O 
 
 03 
 
 1 
 
 PQ 
 
 I 
 
 
 
 d, 
 
 d. 
 
 d. 
 
 d. 
 
 d. 
 
 d. 
 
 
 Class 1. Cured Cod, Ling ) 
 
 
 
 
 
 
 
 
 and White Her- J 
 
 ... 
 
 0-27 
 
 ... 
 
 0-16 
 
 ... 
 
 0-14 
 
 minimum 1 cwt. 
 
 ings in brine ... ) 
 
 
 
 
 
 
 
 
 Class 2. Cured Red Her- \ 
 
 
 
 
 
 
 
 
 rings and all other I 
 salted or dried fish > 
 
 
 0-27 
 
 
 0-18 
 
 
 0-16 
 
 
 (except Cod and \ 
 
 
 
 
 
 
 
 
 Ling) / 
 
 
 
 
 
 
 
 
 Class 3. Crabs, Fresh 1 
 
 
 
 
 
 
 
 
 Cod, Ling, Had- 
 
 
 
 
 
 
 
 
 docks, Whiting, 
 
 
 
 
 
 
 
 
 Skate, Halibut, 
 Mackerel, Plaice, 
 and Coal Fish ; 
 Eels, Flounders, 
 Sprats in any state J 
 Class 3a. Ditto ditto 
 Class 4. S a 1 m o n (i n"^ 
 boxes) and Soles, ! 
 Oysters, Lobsters, ! 
 and Shellfish, not j 
 otherwise classi- j 
 fied J 
 
 0-43 
 
 0-29 
 0-40 
 
 0-21 
 
 0-21 
 0-29 
 
 0-18 
 
 0-18 
 0-25 
 
 The rates for 
 classes 1, 2, 3, 
 and 4 include 
 collection and 
 delivery. The 
 rates for classes 
 3a, 4a, and 5, 
 are S. to S. 
 
 Class 4a. Ditto ditto 
 
 0-54 
 
 ... 
 
 0-29 
 
 ... 
 
 0-25 
 
 
 
 Class 5 Fresh Fish of 
 
 
 
 
 
 
 
 
 all descriptions, 
 
 
 
 
 
 
 
 
 not otherwiseclas- 
 
 0-70 
 
 ... 
 
 0-29 
 
 
 
 0-25 
 
 ... 
 
 
 sified 
 
 
 
 
 
 
 
 
 We now touch a question which comprehends most of 
 those already discussed. When it is stated, as it often is, 
 that the rates charged by the railway companies in this 
 country are generally too high, what exactly is meant ? Is 
 it contended that shareholders should be content with 
 smaller dividends than they receive ? Let us note the facts. 
 
158 
 
 The average dividend in the year 1884 was only 4] per 
 cent. ; in 1844 it was considered by the Legislature that, at 
 least, 10 per cent, should be earned by the shareholders. In 
 the United Kingdom the average rate of dividend paid 
 during the last 14 years on the capital expended on the 
 construction of railways which, as already shown, was, at 
 the end of 1884, 801,464,367, and in England and Wales 
 665,055,379 was only 4'38 per cent. For the year 
 1884, out of a total of 298,980,000 of ordinary capital, 
 48,000,000 paid no dividend at all. As an illustration of 
 the moderate return on the shareholders' capital, it may be 
 mentioned that the Great Western Railway Company, \vhich 
 owns, or jointly owns, 2,496 miles of railway, has during 
 the last 80 years only paid an average dividend of 
 3 15s. per cent, per annum. 
 
 The meaning of the statement cannot be that, as com- 
 pared with the dividends of other industrial companies, 
 those of railways are too high. The facts are all the other 
 way. 
 
 If a comparison is made of the percentage on capital 
 earned by Banks, Insurance, Gas and Water Companies, 
 some of which possess monopolies in a strict legal sense, and 
 not merely in the loose popular acceptation of the word, as 
 applied to railways, it will be seen that these returns are far 
 in excess of those derived from railway capital ; that not 
 only is the average dividend, but the maximum dividend 
 higher, and that there are fewer instances of shareholders 
 obtaining no returns. Upwards of sixty Banks pay 
 dividends ranging from 10 to 15 per cent., and twenty from 
 15 to 20 per cent ; thirty-four Insurance Companies pay 
 from 10 to 15 per cent., and twenty-three over 15 per cent. ; 
 
159 
 
 and ninety-three Gas and "Water Companies pay dividends 
 ranging from 5 to 15 per cent. The average dividends of 
 Banks are 11'83 per cent , of Insurance Companies 12'45 per 
 cent., of Gas Companies 10 per cent,, and of Water 
 Companies 5*73 per cent. In face of the above figures, and 
 of the prospects which were held out to those who invested 
 the capital with which the railways have been constructed, it 
 will probably not be directly contended that the present 
 dividend of less than 4J per cent, is a sufficient return on 
 railway property. Nor is such an income fixed. There is 
 no inconsiderable uncertainty affecting the income and the 
 net return from the working of railways. 
 
 It is alleged that the railway system is not properly 
 managed, and that in some way how it is rarely explained 
 the railways might be more profitably worked ; that even 
 if considerably reduced rates were charged, as good, or a 
 better, dividend might be earned; or that as a consequence of 
 reducing rates such additional traffic would be carried that 
 the loss would be more than covered by the increased trade 
 Now, no doubt undue competition between companies exists. 
 The largest possible amount of net revenue is not always 
 obtained. But such an admission affords little encourage- 
 ment. Here something more than vague general statements 
 are needed ; it is incumbent on those who call for a great 
 change to produce facts justifying an expectation that, con- 
 sistently with a reasonable dividend, a considerable reduction 
 can be made in the rates for merchandise, No attempt has 
 ever been made to show that this can be done, and experience 
 is against it. The most plausible argument is, that by 
 reducing rates the present trade would be considerably in- 
 creased, that new sources of traffic would be created, and 
 
160 
 
 that the companies would be more than recouped the loss 
 which they would sustain by any falling off in the receipts 
 on their traffic. This prospect was held out by the late 
 President, of the Board of Trade in introducing the Railway 
 and Canal Traffic Bill. He justified his expectations by 
 stating that the companies who had adopted a cheap 
 passenger system, had reaped great advantages therefrom. 
 Few of them will consider this illustration to be fortunate. 
 Even, however, if the result of the changes in passenger 
 fares had been generally as beneficial as Mr. Mundella 
 seems to have supposed, no comparison can be drawn 
 between carrying a greater number of passengers in trains 
 only partly filled, and conveying additional mineral and 
 goods traffic by trains which must necessarily entail ad- 
 ditional mileage and all the attendant expenses. Take, 
 for instance, coal carried at *50d. per ton per mile and that 
 the rate is reduced to *45d. ; that is a reduction of 10 per 
 cent, in the rate. Assume a train of 240 tons and Is. 6d. 
 per train mile each way that is for the loaded and return 
 empty wagons as the average cost of haulage and main- 
 tenance of way, it would require an increase of 16'6 per 
 cent, in the traffic, to leave a railway in the same position 
 as it was before. 
 
 The result of such a course as is recommended would 
 be, to say the least, problematical, as the suggested reasons 
 for it are not unknown to the managers of railway companies, 
 and have been carefully considered by them. 
 
161 
 
 SECTION XY. 
 
 PROPOSALS FOR FIXING RATES BY RAILWAY COMMISSION 
 CONCILIATION COURTS. 
 
 ONE of the many proposals for fixing, or controlling rates 
 was contained in a clause in the Railway and Canal 
 Traffic Bill of last session. It was intended to confer 
 on the Board of Trade the power at any time, " on the 
 application either of a railway company, or of any Local 
 or Harbour Board, any Council of a City or Borough, 
 any representative County body which might hereafter be 
 created, and Justices in Quarter Sessions assembled, any 
 Public Local Authority which is now or might hereafter be 
 established, any Association of Traders or Freighters, or any 
 Chamber of Commerce or Agriculture, who should obtain a 
 certificate from the Board of Trade that they were entitled 
 to make such application, to revoke, amend or vary the 
 maximum rates." This would have been a totally new 
 departure in legislation. Such statutes as the Bailway 
 and Canal Traffic Act of 1854, and the Regulation of Rail- 
 ways Act, 1873, exhibit an inclination on the part of 
 Parliament to jealously limit the powers granted to the 
 companies. The tendency of the Courts of Law has been to 
 construe the Acts strictly against companies and give the 
 public the benefit of all doubtful points. 1 But it had never 
 
 t 1 ) See the language of Lord Penzance in Pryce v. Monmouthshire 
 Canal and Railway Company, L. R. 4 A. C., p. 206. 
 
 L 
 
162 
 
 before been supposed that the powers to charge the rates and 
 tolls contained in the original Acts, under which the com- 
 
 NOTE. The following remarks, contained in the report of the Joint 
 Committee of 1872, on the subject of periodical revision of rates, are 
 worth reading 
 
 " The difficulty has been felt by many of the witnesses, and they 
 " have accordingly suggested that there should be a periodical revision 
 " of rates and fares. 
 
 " Here, again, we are met in the first instance by the same diffi- 
 44 culty as before. The companies will, if experience is any guide, 
 44 constantly, for their own sakes, charge less than their legal maxima. 
 44 Is this revision to take effect on their legal maxima, or on the 
 " actual rates as they voluntarily reduce them ? If the former, 
 4 ' its results will be small ; if the latter, it will be difficult to effect, 
 44 and may bear hardly upon the companies in stereotyping a temporary 
 44 or experimental reduction. In fact, the proposals for revision of 
 " rates, if they are to be effectual, really presuppose some such deter- 
 " mination of rates according to a fixed standard as we have considered 
 4 ' above. If there are no special rates, it is a comparatively simple thing 
 44 to make a general reduction. If there are special rates it becomes a 
 " very difficult task. But a still more serious question with respect to 
 44 periodical revision is the question On what principle is it to be 
 44 performed, and by whom ? If it is to be purely arbitrary, if no rule 
 "is to be laid down to guide the revisers, the power of revision will 
 4 ' amount to a power to confiscate the property of the companies. It 
 41 is not likely that Parliament would attempt to exercise any such power 
 44 itself, still less that it would confer such a power on any subordinate 
 44 authority. Accordingly the witnesses have suggested that the 
 44 revision should take effect under conditions which would reserve to 
 44 the companies a reasonable amount of profit, and to some revision 
 *' founded on this principle, it appears from the evidence that some, at 
 44 least, of the principal railway companies would not object. 
 
 44 This leads to the further consideration of the important question, 
 44 whether it is possible or desirable to fix by law a maximum of profit, or 
 44 dividend. If it is not possible or desirable to do so, any periodical or 
 44 systematic revision of charges by any authority subordinate to 
 44 Parliament, may be pronounced impracticable.'' 
 
163 
 
 panies undertook the construction of the railways, could be 
 indefinitely altered, as proposed in the above clause. No 
 such recommendation was made by the Railway Bates Com- 
 mittee of 1882. After what took place in the discussion of 
 the Bill, both in Parliament and out of it, and the 
 announcement of the then Attorney General, " that no one 
 contemplated a perpetually recurring revision," which the 
 clause provided for it is not probable that any such sug- 
 gestion will again authoritatively be made. 
 
 Another proposal of a somewhat similar character is, 
 that the Railway Commissioners, or some other special 
 tribunal, should fix the rates. "Were a Court for the control 
 of rates established with the consent of all concerned, there 
 would remain the question on what principle are the rates to 
 be framed ? Are they to be according to equal mileage, or, 
 if not, in what other manner ? What better mode can be 
 suggested than the past practice, which, as has been shewn, 
 has been beneficial to the community ? Nor is it easy to 
 understand how any Court could fix all the incalculable 
 number of rates, and hear and determine all the practical 
 questions certain to arise. Even if a trifling proportion of 
 the rates were fixed in this manner, and the task in those 
 cases were performed, with reference to all the many 
 circumstances now governing rates, complications and 
 difficulties must arise, and the Court would be placed in 
 a position of great, if not insurmountable, difficulty. So 
 many anomalies must be authorised that it would be 
 impracticable for the Court to decide consistently with 
 precedents. In all probability the control would either 
 become nominal, or the whole system would have to be 
 recast. Nor must the serious loss of time by the staff of 
 
164 
 
 railways in attending to such inquiries, and the consequent 
 diminution of the efficiency of their work in the actual 
 regulation and conduct of railway traffic be lost sight of. 
 The costliness of inquiries before such a Court is a secondary, 
 but not an unimportant, matter. In the hope of obtaining 
 reduced rates, or of compelling a company to raise the rates 
 of a competitor in trade, or to raise the rates to and from 
 competing ports, some traders and merchants, separately or 
 combined, might risk the expense of applications to such 
 a Court. 1 But the general interest could not be promoted 
 by the creation of any such arbitrary and anomalous Court. 
 Reference is often made to the experience of the United 
 States in regard to the supervision of railways as if it should 
 be a guide to us. There each State may legislate with 
 reference to the construction and regulation of its own rail- 
 ways. At first everything was done to facilitate their 
 construction. They were proceeded with in advance of, 
 or concurrently with, immigration and settlement. Many 
 States have made large grants of land to railway companies. 
 In some States a few individuals, from five upwards, may 
 form themselves into a railway company, and under general 
 laws construct railways between any two places, regardless of 
 the wishes of others and the considerations which here form 
 the subject of Parliamentary inquiry. No scale of maximum 
 
 (i) In the case of the application of the North Wales Colliery proprietors 
 to the Railway Commissioners against the Great Western Railway Company, 
 on the ground that they charged coal from South Wales to Birkenhead, 159 
 miles, at the rate of *454d. per ton per mile, as against *893d. per ton 
 per mile for their coal for 28 miles, the expense incurred by the Great 
 Western Company, exclusive of the time occupied oy their own staff, was 
 1,433 ; and the time which was taken up in preparing for, and in attending-, 
 the hearing was very serious. 
 
165 
 
 rates, as a rule, governs the charges for conveyance ; and great 
 variations in them are in fact made. Only, however, in recent 
 times, when railways have become numerous and their 
 extension is not so urgently needed, have State Legislatures 
 interfered with their management. 1 
 
 The expediency of establishing maximum rates has 
 been discussed in some States. But another course has also 
 been tried ; Commissioners have been appointed for the 
 purpose of fixing reasonable charges. Where maximum 
 rates have been fixed, in no case, so far as can be ascertained, 
 have the Legislature altered, or the Commissioners interfered 
 with the powers conferred if the rates charged are within 
 such maximum. Some of the Commissioners fixed rates on so 
 un remunerative a basis as to defeat their object and to prevent 
 the introduction of capital, and the construction of railways. 
 The result was that in one State after a trial of about two. 
 
 (!) The rates for " interstate " traffic in the United States are not at present 
 subject to any Government control, but are made at the discretion of the 
 companies to meet the requirements of trade, competition by rail and water, 
 and of cities. Two Bills for the regulation of the interstate traffic of rail- 
 ways have recently been before Congress ; one, the " Reagan " Bill, which 
 proposes to fix the charges, to prohibit any discrimination, and to make it 
 illegal for railway companies " to combine or to pool" their receipts without 
 stringent provisions and penalties. The other Bill, entitled the " Cullom " 
 Bill, proposed the appointment of an Interstate Commission consisting 
 of five members, but did not provide for any specific or maximum rates for 
 the transportation of passengers or merchandise, except that they should 
 be reasonable and that there should be no unfair discrimination ; while 
 laying down the principle that the rates should be in proportion to the 
 distance carried, it proposed to give to the Commissioners power, in their 
 discretion, to allow lower rates to be charged for long, as compared with 
 short distance traffic. The former Bill passed the House of Representatives 
 and was rejected by the Senate ; the " Cullom " Bill passed the Senate, and 
 was rejected by the House of Representatives. 
 
166 
 
 years, the law establishing such a tribunal was hastily 
 repealed.! 
 
 The rates charged in the United States are mainly 
 governed by competition with water carriage, or between the 
 companies themselves. Occasionally they are so reduced 
 over large districts as to be totally unremunerative. As soon, 
 however, as the struggle between competitors is ended, and 
 
 C) Report of the Committee of Commerce, House of Representatives of the United 
 States, March 8th, 1886. 
 
 " The Committee on Commerce, to whom was referred the bills (H. R. 309) to estab- 
 " lish a Board of Commissioners of interstate commerce, and for other purposes ; 
 " vH. R. 770) to regulate interstate commerce through a national court of arbitration 
 " (H. R. 1.572) to create an interstate commerce commission, and to regulate its 
 "powers and duties; (H. R. 1,669) to establish a bureau of transportation in the 
 " Department of the Interior ; (H. R. 2,412) to regulate interstate commerce and to 
 " prevent unjust discriminations by common carriers; and (H. R. 3,929) to establish 
 " a Board of Commissioners of interstate commerce, and to regulate such commerce, 
 " beg leave to report saifi bills back to the House, and ask that they be laid on 
 " the table, and to report the accompanying bill as a substitute for H. R. 2,412, and 
 " recommend its passage. 
 
 "The subject matter of these bills has been so fully and elaborately discussed for 
 " several years past, that it is not deemed necessary in this report to enter into an 
 " elaborate explanation of the provisions of the bill reported to the House. You 
 " committee may state, however, that the several bills referred to them rest upon three 
 " different theories. 
 
 " House bills 309, 1,572, 1,669 and 3,929 are framed upon the idea of providing a 
 " governmental commission, and of making detailed regulations of freight rates. 
 " The theory of these bills did not need the approval of the committee. 
 
 " House bill 770, ' To Regulate Interstate Commerce through a National Court of 
 " ' Arbitration,' looks to the establishment of a court with power extending in some 
 " measure to the regulation of commerce between States, with provisions extending 
 " to the regulation of subjects not believed to be within the jurisdiction of Congress, 
 " and not embracing in its provisions matters cf regul-ition believed to be necessary 
 " in a bill of this kind ; and a single court to be held at Washington City, as provided 
 " in this bill, would not be sufficiently convenient to the people. 
 
 " The bill which we report to the House, and which is an amendment of House bill 
 " 2,112, is based upon the theory of furnishing civil remedies in the courts of ordinary 
 " jurisdiction to parties for the most conspicuous grievances complained of in railroad 
 " miiiuigement, prohibiting what should not be done, and commanding what should 
 " be done ; proposing remedies for the violation of its provisions, and avoiding any 
 " attempt at detailed regulation of freight rates. This was deemed best as the first 
 " effort at legislation up m this subject. The interests involved are so large, and their 
 " successful management so important to the country, that it was not deemed advis- 
 " able to run any risk of embarrassing the management of the railroads of the 
 
 ' country, aud at the same time it was deemed necessary for the protection of the 
 
167 
 
 an arrangement is arrived at, the rates are suddenly raised. 
 The circumstances of England and the United States are so 
 unlike that, even were those tribunals suited to the latter, 
 no case would be made out for establishing here a Court 
 
 " interests of the people to control and circumscribe the exercise of the monopoly 
 " powers of these corporations, to prevent them from making extortionate charges 
 " and unlawful exactions upon the people. 
 
 " The examination of this subject will show that the attempt to establish a system 
 " of legislative rates is impracticable, for the reason that what would be a reasonable 
 " rate for one road would be ruinous, perhaps, to others, as the charges for the trans- 
 " portation of freights are largely control' ed by the amount of business done by tha 
 " several roads. 
 
 " For instance, what would bo a reasonable rate of charges on tbe Pennsylvania 
 " Railroad would not be a reasonable rate upon a road in the new States and in a 
 " sparsely settled portion of the country. 
 
 " The same difficulty lies in the way of attempting to protect the people by the 
 " adoption of maximum rates. What would be a reasonable maximum upon one road 
 " would not be reasonable upon others. A maximum high enough to protect the rail- 
 " roads against harm would be too high to benefit the people on most of the roads, 
 " and a maximum low enough to protect the people on some roads would be ruinous 
 " to the interests of many other roads, so that it is not believed best to attempt to 
 " protect the interests of the public by the legislative rates or by the maximum 
 
 " The bill which we report to the House, instead of adopting either of these plans, 
 " provides that the charges of the railroads shall be reasonable ; that persons engaged 
 " in the transportation of interstate commerce by railroads shall furnish without dis- 
 " crimination the same facilities for the carriage, receiving, delivery, storage and 
 " handling of property of a like character, and shall perform with equal expedition 
 " the same kind of services connected with contemporaneous transportation. 
 ****** 
 
 " These constitute a portion of the leading features of the bill which we report to 
 " the House. It is believed that the enactment and enforcement of such a law will 
 " provide for the just and necessary abridgment of the monopoly powers of these 
 " corporations, ani protect the people against unreasonable charges and extortionate 
 " exactions, and wjll at the same time not interfere with or embarrass the management 
 " of railroad corporations in anything which it is reasonable and just they should do. 
 " And the Committee believe it wiser and better 10 provide for the enforcement of the 
 " provisions of such a law through the instrumentality of the ordinary courts of 
 " justice, and by the judges and juries of the country than by the orders of a com- 
 ' mission. The machinery of the courts ii already in existence, and will require no 
 " additional expense, and is within convenient reach of the people everywhere, and is 
 " fully able to adjudicate all cases which may arise under this bill and by methods 
 " w.th which the people are familiar, while no plan of a commission which has been 
 " proposed could be conveniently accessible to all the people, and if a plan should be 
 " presented which would provide a jurisdiction convenient to all the people it would 
 " necessarily be cumbrous and very expensive. In this view a commission is 
 " unnecessary, unless it is the purpose of Congress to enter upon the detailed 
 " regulation of freight rates." 
 
168 
 
 armed with such powers. Here railway companies can make 
 charges only within their statutory maxima ; there, as a rule, 
 no statutory maxima, or prohibitions of undue preference, 
 similar to those enacted here, are known. Here no 
 municipalities have largely subscribed to the capital of 
 railways, no grants of public lands have been made to them, 
 as have been freely done there. 1 
 
 To legislation in Continental countries as to the fixing 
 of rates, we only briefly refer ; in Appendix III. are full 
 details as to the law on this subject of Prussia and the Ger- 
 man Empire. It may, however, be here observed that the 
 Prussian General Railway Law of 1838 provided for a 
 reduction of rates when the net profits exceeded 10 per cent ; 
 that the concessions to private companies stipulate for the 
 control of the Government over rates ; but that, in recent 
 concessions, greater freedom is accorded to the companies, 
 which may, within certain maximum limits, modify rates at 
 pleasure. Such legislation is well worthy of attention ; only 
 it may be suggested that it is not reasonable to pick out for 
 commendation this or that provision without regard to its 
 concomitants to propose to adopt provisions to the dis- 
 advantage of railways, and to ignore those which recompense 
 them. 
 
 In Germany exist District Consultative Councils or 
 
 (i) Poor's Manual of Railroads for 1885 (page xv.) gives a list of Rail- 
 roads of the United States sold under foreclosure. The following is a brief 
 summary : 
 
 Mileage. Capital Stock. Funded Debt. Floating Debt. 
 
 m. * I $ 
 
 1882 .. 668 20,751,457 23,999,065 10,073,769 
 
 1883 ..1,190 24,587,704 38,197,926 2,481,608 
 
 1884 .. 714 12,891,000 13,061,000 422,533 
 
169 
 
 Conciliation Courts, which deal with all questions relating 
 to conveyance of goods on railways, and with the applica- 
 tion of existing tariffs and the introduction of new local 
 tariffs. It has been stated that those Councils or Courts are of 
 great practical utility. Whether this be so or not the circum- 
 stances under which Conciliation Boards are appointed in 
 Germany are very dissimilar to those of the railways in this 
 country. Their constitution is peculiar ; similar elements 
 do not exist here. These Boards are composed of 
 representatives of the Government as workers of the 
 railways and representatives of the traders as users 
 of them. Both, however the nominees of the Government 
 and the traders may be said to represent the owners (in 
 reality the public) of 85 per cent, of the lines, who are 
 liable for any loss in working them. In this country 
 neither the Government nor the traders are the owners. 1 
 Moreover, in Germany the representative of the Govern- 
 ment which controls the working of the railways, has, in 
 fact, the power of fixing any rate by his tinal decision, what- 
 ever may be the views of the traders or the Conciliation 
 Boards. In the last resort the owner of the lines controls 
 the rates. 
 
 Were such Councils established here their duties would 
 
 ( l ) The railways in this country are governed by directors who have shares 
 in the respective undertakings, and represent the shareholders (assumed to 
 be about 500,000), but generally their interest in the railways is relatively 
 small compared with that which they possess in land, manufactories, 
 collieries, ironworks, and commerce &c., besides which from their 
 local connections, and as public men, they are keenly alive to the require- 
 ments of agriculture, trade and commerce, and in reality represent those 
 interests to a much greater extent than is sometimes assumed to be the 
 case. 
 
170 
 
 not be so light as those which fall to them in Germany. 
 There the questions to be considered must be few, the time 
 occupied in deciding them short, owing to there being practic- 
 ally no competition, and to the great bulk of the rates being 
 based on a mileage scale. Much more complex questions 
 would arise here, much longer time must be taken up in 
 deciding them in England, where rates are adapted to all 
 the requirements of trade and competition in its many 
 forms. 
 
 In Holland, Belgium, and France, railways have been 
 constructed with, in some cases, considerable financial assist- 
 ance from the Governments, and under concessions for 
 certain periods. Not unnaturally or unreasonably the 
 Governments have reserved the right to control the 
 rates and charges to be made while a concession is in 
 existence, or when it ends. It will be found, however, that 
 when there is power to reduce the rates before the expiration 
 of the concession, the State guarantees the dividend in the 
 event of loss arising from the compulsory reduction. Such 
 is the case in Holland. The Dutch Law (Article 29) provides 
 that reductions in the tariff can at all times be ordered by 
 the State. But if, in consequence of such reductions, the net 
 gain of the company be diminished, compensation is to be 
 paid out of the State Treasury, and any dispute as to 
 the amount of compensation is decided by a Court of Justice. 
 In no case, however, must the amount of compensation 
 raise the net profits of the year or years for which it is 
 demanded above 8 per cent, of the Company's capital. Thus 
 the right to control rates is part and parcel of a system 
 wholly unlike our own. It exists in a country where the 
 State has helped to construct, and to a very large extent 
 
171 
 
 actually constructed, railways. It is alien to this country, 
 where capital for the whole of the railways has been 
 provided by private individuals, on the faith of the powers 
 to levy the tolls and rates fixed in their private Acts. 
 
 In the Eailway and Canal Traffic Bill (1886) was also 
 embodied a proposal to the effect that any person who was 
 of opinion that a company was charging an unfair or un- 
 reasonable rate might make a complaint to the Board of 
 Trade, who were to be entitled to call on the company for 
 an explanation and to appoint one of their officers, or a 
 competent person, to communicate with the company and 
 the complainant, and to endeavour to settle the difference 
 amicably between the parties. The Board of Trade were 
 from time to time to submit to Parliament reports of the 
 complaints so made, the results of their proceedings, and 
 such observations as they should think fit. The effect of this 
 provision would have been startling. Even where a rate was 
 within a company's powers although undue preference was 
 not alleged at the instance of a trader desirous of obtaining a 
 reduced rate which had been refused by a company and 
 believing that either his own circumstances or those of other 
 traders entitled him to communicate with the Board of 
 Trade, the railway company would be called upon to prove 
 to the Board of Trade that the claim of the trader ought 
 not to be granted It would be, in effect, litigation made 
 easy and cheap, whether the complaint was good or bad. 
 The President, Yice-President, Secretary, or Assistant- 
 Secretary of the Board of Trade could not spare the time 
 necessary to master the numerous difficult questions and 
 details as to the rates. l Notwithstanding the great ability 
 
 (') In a case of the kind referred to, which was brought before the Board 
 
172 
 
 with which that department is conducted, these officials 
 could not deal with such questions in the same way or 
 within the same time as the traders and the representatives 
 of the companies are able. The companies would probably 
 be burtbened with correspondence and discussions on matters 
 already fully gone into in negotiation. The discussion would 
 be necessarily carried on through subordinates or nominees 
 of the Board of Trade, who, it is not presumptuous to say, 
 would be neither interested in, nor specially trained to 
 deal with, such questions. Suppose that the representatives 
 of the Board of Trade and the railway companies disagreed 
 as to the necessity or reasonableness of a reduction in rates, 
 the former would have no authority to compel the companies 
 to comply with their views. Would not the result probably 
 be a cry that Parliamentary powers should be conferred on 
 the Board of Trade to enforce their conclusions? Such a 
 policy would in the end place the railway companies of the 
 country, whose capital has entirely been raised by private 
 enterprise, in a worse position than the railway companies 
 in Holland where the State has done so much for them, or in 
 France, where it has guaranteed the dividends. 
 
 When we are invited to place in the hands of a tribunal 
 the control of the rates, it is expedient to note the 
 difficulties which the Railway Commissioners seem to have 
 felt in dealing with the various questions raised before them, 
 and the manner in which they have dealt with them. 
 
 of Trade when the Bill was before Parliament, as killed officer of the 
 company was occupied 150 hours, in preparing the information alone to 
 reply to the Board of Trade, irrespective of the time occupied by others 
 in analysing the information, and in corresponding with the Board of Trade 
 on the subject, all of which had no practical result. 
 
173 
 
 In determining under the Traffic Act questions of 
 alleged undue preference, they have been obliged to express 
 their opinion on the reasonableness of particular rates. As 
 to the legal correctness of their decisions, nothing need here 
 be said; for the present purpose it may be assumed that 
 they are open to no legal exception, and we fully recognise 
 the ability and care which they manifest. Only their 
 economical eifects are here considered. There would be no 
 difficulty in showing that they have acted upon principles, 
 so far as they have acted upon any, which have not merely 
 not been sanctioned, but have been condemned, by every 
 Hoyal Commission or Select Committee which has inquired 
 into the subject, and by almost every economist of eminence. 
 On the part of the Commissioners there have been not un- 
 naturally some waverings in opinion. But on the whole, they 
 appear to have attempted to frame rates according to cost of 
 service ; and they appear not to admit that the existence of 
 competition is a reason for varying them. Now, in the first place 
 they apply it may be added, necessarily apply the cost of 
 service principle in an imperfect fashion. They deal only with 
 undue preference in regard to the same or very similar articles. 
 They do not say, what consistent adherence to the theory would 
 compel them to say, that a ton of coals and a ton of tin 
 ingots must be carried at much the same rate ; they are 
 bound by the existing classification, which forbids this. 
 Occasionally their decisions are indeed curiously inconsistent 
 in many respects, as was probably inevitable, where they 
 were called upon to face the commercial results which would 
 have followed a too rigid adherence to some of the principles 
 by which they felt themselves bound 1 In the case of 
 
 (!) In Lees v. Lancashire & Yorkshire, 1 N. & M. 352, the Com- 
 
174 
 
 the Nitshill and Lesmahagow Coal Company v. Caledonian 
 Railway Company? the defendant company claimed to charge 
 more for carrying cannel coal, which, it was alleged, cost 
 38s. a ton, than they charged for carrying splint, which cost 
 15s. 6d. On the principle on which the classifications in 
 most special Acts were framed, this would be reasonable ; the 
 more valuable article could bear more, and ought to pay 
 more. But the Railway Commissioners decided differently. 
 " As the quality of coal does not affect the cost of carriage 
 to the railway company," they said, " we are of opinion that 
 the two kinds of coal ought to receive the same treatment." 
 If this principle had been carried out since the beginning of 
 railways, if rates had been settled without regard to the value 
 of merchandise, the prosperity of many districts and industries 
 would never have been developed. In the second place, the cost 
 of carriage is, inevitably, sometimes guessed at rather than 
 calculated. We have already stated the nice calculations 
 which must be entered into in order to determine the exact 
 cost of carriage ; calculations in which it is practically 
 impossible to attain accuracy. Many elements in cost, the 
 Commissioners cannot accurately measure ; the data do not 
 exist. In the third place, the effect of their later decisions 
 is to exclude, practically, if not theoretically, competition 
 from the considerations to be taken into account. This is, not 
 
 missioners relied to some extent upon a principle which they do not appear 
 to have since put in force. The question was whether the company gave an 
 undue and unreasonable preference to the Corporation. The Commissioners 
 said that undoubtedly a preference had been given, but they declined to 
 say it was unreasonable (1) because the Corporation did not compete with 
 the complainants ; (2) because the preference was for the public benefit and 
 convenience (p. 367) ; (3) because of the nature and magnitude of the coal 
 traffic of the Corporation. 
 ) 2 N. & M. 39. 
 
175 
 
 only for the reasons already stated, contrary to sound com- 
 mercial principles ; it is contrary to the language of the 
 early decisions of the Court of Common Pleas, which dis- 
 tinctly recognised competition as rightly taken into account 
 in fixing rates. In Garton v. Bristol 8f Exeter Raihvay Co. 
 (1 N. & M. 1859, p. 218), for example, the Court of 
 Common Pleas decided, among other reasons against the 
 validity of a certain charge, because, in the words of 
 -Byles, J., " it is not shown that it is rendered 
 necessary for the purpose of meeting and overcoming 
 competition >n . Th early judgments of the Railway 
 Commissioners themselves recognised the right to take into 
 account the existence of competition. In Foreman v. Great 
 Eastern Railway Co., decided in 1875 2 N. & M. 202), the 
 point in dispute was the validity of a scale of charges for the 
 carriage of coal from Peterborough to Norwich and Great 
 Yarmouth and intermediate stations. The Great Eastern 
 Company were alleged to give an undue preference to coal 
 consigned to such stations, as compared with the carriage of 
 sea-borne coal from Great Yarmouth to Norwich and the 
 stations between it and Peterborough. The Commissioners 
 observed : " Nor does the Traffic Act prevent a railway com- 
 pany from having special rates of charges to a terminus to which 
 traffic can be carried by other routes, or other modes of car- 
 riage with which theirs is in competition," a dictum incon- 
 bistent with the view " that cost of service is the necessarj T 
 
 ( 1 ). See the head note on the case, and the language of Williams, J. ; 
 also the observations of Cockburn, C. J. in Harris v. Cockermouth and 
 Workington Railway Company, I. N. and M., p. 703. The latter judge, 
 referring to " fair and sufficient reasons'' for differences in rates, says, 
 ' ' As, for instance, in respect of terminal traffic, there might be compe- 
 *' tition with another railway." 
 
176 
 
 measure of rates." In a case decided the same year, Thomp- 
 son v. London and North Western Railway Co., 2 N. & M. 
 (1875) 115, the Commissioners speak dubiously. They 
 observe with respect to the argument that " the Traffic -Act 
 prohibits only undue advantages, and that an advantage 
 given by a railway company to obtain traffic for which it 
 competes with another railway company is not undue " 
 (p. 120). "Such a proposition cannot, in our opinion, be laid 
 down unreservedly. It may be true in certain circumstances ; 
 it would not be so in others, and what degree of favour can 
 be lawfully shown to some person to the prejudice of others 
 under the pressure of competition can only be decided in any 
 case that arises by reference to its special circumstances." ' 
 In still later judgments there is a faint recognition of the fact 
 that the existence of competition ought to be taken into 
 account; e.g., in Richardson v. Midland Railway Company, 
 decided in 1881 (4 N. and M. 1) the Commissioners say: "The 
 difference (between the Burton and Newark rates) or part of 
 it, may possibly be lequired by the route from the same 
 district, not being the same all the way to the two places, and 
 
 (i) The reporters append the following note to the case. 
 
 " It appears that competition between two railways, or by sea or 
 " canal, is sufficient justification for a railway company reducing its fares 
 " to the public, who are affected by such competitions, and can take 
 " advantage; but that a railway company cannot, merely for the sake of 
 " increasing their traffic, reduce their rates in favour of individuals unless 
 " there is a sufficient consideration for such reduction, which shall lessen 
 " the cost to the company of conveyance or other services rendered to 
 "them by such individuals," vol. 2, p. 121. Probably this represented 
 " the general opinion of the legal profession in 1875. 
 
 In the report for 18S3 the Commissioners refer to " the fair pecuni- 
 " ary interests generally of the company carrying" (p. 1.) as if they 
 might be taken into account. 
 
177 
 
 by the separate portions of line passed over being more 
 costly to work or construct in the one case than in the other ; 
 or, again, may be required by a competition for the convey- 
 ance of the particular traffic between the two termini, exist- 
 ing in one case but not in the other. They proceed to speak 
 of "due allowance for such causes of difference," which 
 implies that allowance must be made for both of such causes. 
 But in the Broughton Coal Company's case (4 N. and M. 
 p. 191, 1883) the Commissioners use somewhat different 
 language. They observe that "if goods of the same kind are 
 carried to the same destination over the same railway for 
 distances that are not the same, and the gross charge from 
 the intermediate distance is as great as from the more distant 
 one, there is a preference of one traffic over the other within 
 the meaning of the Traffic Act of 1854 ; and that it is not 
 sufficient to rebut this presumption to show that the charge 
 for the longer distance has been reduced to meet a compe- 
 tition from another route." Lately the Commissioners have, 
 to say the least, lost sight of the element of competition in 
 determining rates ; and in all the applications to them, there 
 is no clear instance in which they have found the circum- 
 stances in which it ought, in their opinion, to operate. 
 
 Among the multifarious complaints against railway 
 companies is one to the effect that companies, instead of 
 competing with and underbidding each other, combine to 
 charge equal rates. This is an illustration of the curious 
 inconsistencies of some of those who criticise the work- 
 ing of railways. Such a practice would be, as will be 
 seen in the next chapter, opposed to the ideas of others 
 who urge that rates should be based on scientific and 
 uniform principles. Such competition, too, would inevitably 
 
 M 
 
178 
 
 lead to valid grounds for complaints, in the opinion of 
 others, of undue preference in contravention of the Bail- 
 way and Canal Traffic Act of 1854. The fact is, the practice 
 has been tried and abandoned. In the days of road curriers, 
 competition in quoting low rates generally ended in the 
 submission or ruin of one of the parties. Here, and in the 
 United States, experience shews that all such competition on 
 the part of railways must end in combination. However 
 severe the contest may be, and however great the losses in 
 carrying it on, each of the railways continues to exist ; 
 they do not disappear like private traders engaged in a 
 disastrous war of competition ; and in the end they come to 
 terms. In thus acting, they only do what is done in other 
 industries. In the principal trades of the country are 
 associations which arrange the prices of their products. 
 Colliery proprietors, for example, agree as to the price of coal. 
 Although the hardware merchants seldom vary their price 
 lists, they agree from time to time as to the rate of discount 
 to be allowed. The steel rail manufacturers of Germany, 
 Belgium, England, and Scotland, had recently an arrange- 
 ment regulating, if not the proportion to be produced by 
 each country and district, the price at which rails were to be 
 sold. 
 
179 
 
 SECTION XYI. 
 
 RAILWAY AMALGAMATION. 
 
 WE now come to a class of criticisms and proposals 
 wholly different from those which have hitherto been con- 
 sidered. In the report by Sir Bernhard Samuelson (page 22) 
 is a recommendation that railway companies should either 
 amalgamate, or make agreements between themselves, 
 for the division of the receipts from competitive traffic, 
 so as to reduce the working expenses. 1 Probably for the 
 first time has this suggestion come from such a quarter. 
 Manifestly it is beginning to be understood that undue 
 competition between railways is injurious to the companies 
 without being beneficial to the public, and that, in the 
 interests of both, it should be moderated. 
 
 Hitherto, the public and Parliament have looked with 
 jealousy on arrangements between railway companies 
 
 (1) "The loss arising from the unnecessary multiplication of train 
 " services, as well for the passengers as for the goods, the avoidance of 
 " which was one of the principal motives which d( cided the Prussian Govern- 
 " ment to purchase their railways, may be obviated in this country,by a more 
 " intimate fusion of the interests of the various railways, either by amalga- 
 " mation or by the consolidation of their interests in some other way, under 
 ' ' the sanction of Parliament ; care being taken that the interests of the 
 " public in regard to accommodation and charges are duly safeguarded. I 
 " have reason to believe that, so far as the railways north of the Thames and 
 11 west of the metropolis are concerned, the more active and enlightened 
 " directors are by no moans unprepared for a step of the kind." 
 
180 
 
 intended to lessen the waste caused by undue competition. 
 The statements so often put forward by companies that 
 the expenditure of capital in the construction and working 
 of unnecessary competing lines is not beneficial to the 
 public, have been disregarded. Any scheme which pro- 
 fessed to meet " public requirements," and promised multi- 
 plication of trains and the carriage of railway traffic at a high 
 rate of speed, has met with favour in and out of Parliament. 
 
 Whether the particular line could only be worked at 
 undue cost, or could yield a proper or, indeed, any return 
 upon the capital to be expended, has rarely been considered. 
 The Legislature has fostered new schemes, and has favoured 
 competition, not economy ; it has not recognised how much 
 interested the public were in the prudent expenditure of 
 capital on railways. Had the reports prepared under the 
 guidance of Lord Dalhousie, in order that railways might 
 be constructed according to a definite plan, been acted upon, 
 or had he been able to carry out here his ideas as to 
 railway extension, as he did in India, the rapid growth of 
 railways might have been retarded. 1 But, undoubtedly, the 
 want of any plan has entailed the outlay of a much larger 
 amount of capital than would otherwise have been required. 
 Upon this excess, interest, if it can be earned, is paid ; 
 a fact not to be overlooked by those who now desire" 
 that the companies should reduce their rates. Such 
 errors are repeated. Even in recent years Pailiamentary 
 Committees have authorised on the most trifling grounds 
 new competing lines. True, they expressed no opinion as to 
 the success of such schemes. But it must have been known 
 
 (1) See the late Mr. R. Stephenson's evidence before Mr. Card well's 
 Committee, 25th Februaiy, 1863. Q. 937-9. 
 
181 
 
 that, if the capital were subscribed, it must como from people 
 who were under the impression that only schemes of substan- 
 tial value would be authorised by Parliament. 
 
 Of the many schemes of this description, two or three 
 illustrations may be given. Within the last 13 years, authority 
 was obtained to construct a local line for the accommoda- 
 tion of a sparsely inhabited agricultural district. In this 
 form it was favoured by the companies in whose dis- 
 trict it was. The prospect of a return on the capital, 
 however, was so small that comparatively little money could 
 be raised. A scheme was, therefore, got up for obtaining 
 Parliamentary powers to extend the line on the plea that it 
 would thus become a through competitive line connecting 
 two important existing systems; a scheme which quite ignored 
 the fact that the two systems had already a means of com- 
 munication, which it was their interest and desire to develop 
 to the utmost against any hostile scheme. A large 
 portion of the capital was procured on the faith of 
 statements contained in carefully framed prospectuses, 
 for the issue of which the financiers were paid 60,000. 
 A considerable portion of the capital came from persons 
 residing in remote parts of the country. Some money 
 was borrowed for a time at the rate of 16 per cent, 
 per annum. Although about 1,200,000 in cash and 
 paper has been expended, the receipts do not cover the 
 working expenses, including the rent of stations and 
 expenses of junctions ; the line must be imperfectly worked ; 
 and of course not a farthing of interest or dividend can be 
 paid on any portion of the capital. 
 
 A second illustration may be given. About twenty-five 
 years ago a branch railway of 6 miles in length was 
 
182 
 
 moted and sanctioned by Parliament as part of a line to 
 compete with an existing railway. The original cost was esti- 
 mated at 42,000, and the total amount of capital authorised 
 was CO,000. Not until 20 years after the Act was obtained 
 was the line opened for traffic. During this period no fewer 
 than eleven applications for increased capital or other powers 
 were made to Parliament ; and three schemes of arrangement 
 were entered into with creditors and confirmed by the 
 Chancery Court. The total capital expended has been up- 
 wards of 157,000, of which 44 per cent, has been raised by 
 loans, 46 per cent, by preference shares, and 10 per cent, only 
 by ordinary stock. What need there was of the line may be 
 inferred from the fact that, although it has now been open 
 for some five years, the gross receipts are not sufficient even 
 to pay the locomotive expenses. 
 
 One more case may be mentioned. An application was 
 made to Parliament for powers to construct a line about 7 
 miles in length, which was estimated to cost not far short of 
 120,000. After four years a further application was made 
 for extension of time and for power to raise more than half 
 the share capital by the issue of preference stock and to 
 pay interest out of capital. It was then given in evidence 
 that upwards of one-fourth of the estimated cost of the line 
 had already been expended, although no works had been con- 
 structed, and only 1,000 paid towards the acquisition of land. 
 
 In such cases the diversion of traffic from existing 
 railways usefully serving the public, the loss of interest on 
 the outlay if the line is in the end purchased by them, 
 and the expense of working it, are so much dead weight 
 which the railway system has to bear. Thus the companies 
 are so much less able to reduce rates. 
 
183 
 
 Many similar cases could be stated. Notwithstanding the 
 absorption of this class of schemes, there is still upwards of 
 61,000,000 of capital which has paid no dividend at all. 
 An inquiry into the promotion and construction of many of 
 the railways authorised during the last 25 years, would 
 probably bring to light facts as startling as those elicited by 
 the Foreign Loans Committee. The established companies 
 oppose such schemes. But their opposition is generally looked 
 upon as arising solely from selfish objects. They are told 
 that it is not their money which is to be expended, and that 
 though they may have a nominal, they have no substantial, 
 right to oppose. It is a common observation that, if a new 
 line afford accommodation for a part of the traffic carried 
 by the opposing company, it will be useful to the public, and 
 that if it will not carry any such traffic the objections of the 
 opposing company are groundless. Such arguments suc- 
 ceed ; the Bill is passed ; and what happens ? From long 
 experience the existing companies know that nearly all the 
 schemes which are at first brought out as independent 
 competing lines will sooner or later be pressing to be 
 worked or leased, or be in the market, and that the pro- 
 moters of any of them not taken over, will be continually 
 making applications to Parliament or to the Railway Com- 
 missioners, posing, not as an aggressive, but as an ill-used 
 company, and harassing its neighbours with a view to be 
 purchased or to levy blackmail. 
 
 The present position of railways is largely due to the 
 action of Parliament and to the public, though some blame 
 is no doubt attributable to the companies themselves. A 
 great improvement has taken place in the relations of the 
 companies, and in the conduct of railways in recent years. 
 
181 
 
 But there has been too much readiness, indeed anxiety, to 
 invade districts accommodated by neighbouring companies. 
 In the working of their lines exaggerated importance i& too 
 often given to competition without regard to its utility. 
 Frequently passenger trains are run without sufficient 
 regard to whether or not they are fairly remunerative. 
 "Wagons containing only a small quantity of goods are 
 often sent long distances at little profit, if not at a 
 loss. Goods trains are run at an excessive speed, and there- 
 fore do not and cannot carry such remunerative loads as 
 in other countries, notwithstanding some of the undoubtedly 
 low rates charged there. So-called "concessions," not 
 really essential, are made to trading or other interests, when 
 it would be better that the companies should earn on the 
 traffic a reasonable income to go into the pockets of the 
 shareholders, or be expended, as suggested by Sir Bernhard 
 Samuelson, in improved accommodation. 
 
 While there has been too much proneness to favour 
 competing schemes, there has been an unreasonable jealousy 
 of agreements between companies. Traces of the jealousy 
 with which Parliament has regarded agreements between 
 companies, even fur merely working branches in extension 
 of parent lines, are shewn by the provision that agreements 
 shall be reviewed every ten years It also appears in the 
 views of the Railway Commissioners as expressed in section 6 
 of their twelfth report (1885). They state that it is 
 the practice of some companies to get such agreements 
 confirmed by means of a schedule to their private Bills, which 
 gives the public no opportunity of knowing what those 
 agreements are about, and that the agreements are confirmed, 
 either for long terms, or in perpetuity, without any provision 
 
185 
 
 for a periodical revision in the interest of the public. And 
 yet it is not known that the public have derived any advan- 
 tages from the periodical revision of agreements for working 
 branch lines, and whenever application has been made to 
 Parliament for absorbing a branch line.it has been authorised 
 without any difficulty. 
 
 In the last session of Parliament, the Midland Company 
 applied for power to enter in to, and carry into eifect, agree- 
 ments with certain other railway companies with respect 
 to the provision of joint terminal accommodation at towns 
 and stations on their respective systems ; the alteration and 
 enlargement of existing stations for joint purposes ; the 
 providing at joint expense of train services between towns 
 and places served by their respective systems, and of 
 locomotive engines and stock for such joint trains; the 
 appointment of joint staff and the fixing of rates, fares and 
 charges in respect of traffic using such joint stations, or 
 carried by such joint trains, and the division of the receipts 
 therefrom. Any agreements made under these powers were 
 to be subject to the approval of the Board of Trade. With the 
 present view held by Parliament and by a section of the 
 traders as to railways, it is, however, questionable whether 
 such agreements would be confirmed, except on terms 
 which it would be impossible for the companies to accept. 
 
 In this country which is unlike the United States in 
 this respect agreements to charge equal rates for competitive 
 traffic have been, on the whole, adhered to. Arrangements 
 for the division of such traffic are therefore not so much 
 required here as there. The great desiderata of the companies 
 are the limitation of competition within reasonable bounds, 
 stopping the waste which it now causes, and fully affording to 
 
186 
 
 each other and to the public and traffic all practicable facilities 
 and accommodation 
 
 Agreements for the division of traffic, or for " pooling," as 
 they are termed in the United States and Canada, are not un- 
 known in this country. Some have been sanctioned by Parlia- 
 ment ; others have been made between the companies without 
 any express Parliamentary authority, and have been carried 
 out. For instance, Mr. Gladstone made, in 1851, an award 
 apportioning, for a period of five years, the receipts for traffic 
 carried between, London, York, Leeds, Sheffield, and several 
 other places, between the Great Northern, and London and 
 North Western, and Midland Railways. In the year 1857 
 he made a further award determining, for a period of fourteen 
 years, the proportions in which the proceeds from the 
 passenger and goods traffic between the same and other 
 places, including Hull, Halifax, Bradford, &c., were to be 
 divided between these companies and the Manchester, Sheffield 
 and Lincolnshire Company. 
 
 Parliament has sanctioned agreements for the division 
 of traffic receipts between the South Eastern and London 
 Chatham and Dover, and between the London Brighton 
 and South Coast and South Eastern Companies. But it is 
 more than doubtful whether the parties to these agreements 
 have derived all the advantages which, consistently with the 
 interests of the public, they might have obtained. 
 
 It is well known that nowhere on the Continent has the 
 construction of competing lines been carried out to the same 
 extent as in this country ; it is one of the great permanent 
 advantages possessed by Continental railways. 1 In France 
 
 f 1 ) The General Prussian Railway Law of 1838 (S. 44) under 
 which many of the Prussian railways were constructed, expressly declared 
 
187 
 
 the companies have districts within which they exclusively 
 afford railway accommodation. The Government recognise 
 and sanction agreements between the companies for the 
 prevention of undue competition where it inevitably arises, 
 and for an apportionment of the receipts from competitive 
 traffic. The following is an instance : An agreement made 
 31st March, 1885, between the Western of France Eailway 
 and the Orleans Eailway Companies, provided that the 
 receipts in respect of traffic carried between Paris and 
 Angers, Nantes, Montoir, St. Nazaire, Bedon and stations 
 beyond, after deducting taxes (" Impots ") and terminals 
 should be apportioned thus : 
 
 1. Traffic between Paris and Eedon and stations beyond as far as 
 
 Plaermel and Pontivy 
 
 55 per cent, proportion to the Western Company. 
 45 ,, ,, ,, Orleans Company. 
 
 2. Traffic carried between Paris and Angers, Nantes, Montoir, St. 
 
 Nazaire, and branches leading out of the latter two stations, as 
 well as Pont Chateau, by whatever route the traffic may have 
 been carried 
 
 49 per cent, proportion to the Western Company. 
 
 51 ,, ,, Orleans Company. 
 
 3. Traffic carried between Paris and stations beyond Angers or Martro 
 
 d'Ecole on the States Kailway 
 
 i)ir to the Western Company . 
 /A ,, Orleans 
 
 In Belgium there is practically no such competition 
 as exists in this country. The Government have had to face 
 
 that " no railway running in the same direction as the first one between 
 the same principal points shall be allowed to be constructed by any under* 
 takers other than the undertakers of the first railway, within a space of 30 
 years from the opening of such railway, provided that improvements of the 
 communications between the points and in the same direction by other 
 means shall not be interfered with." 
 
188 
 
 the difficult questions respecting it ; they have solved 
 them in a manner different from that adopted here. They 
 have entered into an agreement for the division of com- 
 petitive traffic between the State railways and the Grand 
 Central Beige. Under this arrangement the route over 
 which the traffic is conveyed is credited with the whole of 
 the terminals, and 50 per cent, of the carrying receipts. 
 The remaining 50 per cent, is apportioned between the 
 two competing routes on the following basis, viz : 
 
 Each route is credited with 25 per cent, if the 
 mileage is equal. 
 
 The longest route is credited with 
 22| per cent, if the mileage does not exceed the 
 shortest route by 5 per cent. 
 
 990 
 99 99 99 99 *V j, i, 
 
 4 2 19 11 99 99 "^ 9 ) 
 
 The route selected by either the State railways or the 
 Grand Central Beige must not exceed the distance by 
 the shortest route by more than 25 per cent. ; above which 
 limit all competition ceases. 
 
 In Germany exist arrangements practically amounting 
 to a division of traffic. For instance, the shortest route 
 from Elberfeld to Bale is via Coblenz-Strasburg. The 
 traffic to Bale is carried every alternate month by the Eight 
 Rhenish route over the Badisch State railway, and by the 
 Left Rhenish route over the Alsace-Lorraine railways. 
 As regards traffic with Austria-Hungary arrangements are 
 made which ensure to each line a certain percentage. In 
 the event of the returns showing that one company have 
 
189 
 
 not carried their fixed share, they are entitled to a money 
 compensation. 
 
 Undoubtedly the suggestion of Sir B. Samuelson that 
 reductions should be made in the expenses of working rail- 
 ways, and that undue competition should be avoided by 
 arrangements between the companies, is important and well 
 worthy oi consideration. To commerce generally, and to the 
 traders using railways, it might clearly be advantageous. 
 It may, however, be premature to expect that at present such 
 agreements as he suggests would be sanctioned by Parlia- 
 ment, except upon onerous conditions. If such agreements 
 were favourably regarded by the representatives of commerce 
 and agriculture in Parliament, the companies would more 
 willingly enter into them. In many cases greater economy 
 and improved working would undoubtedly result, and there 
 is no reason why such arrangements should not be made 
 beneficial to the public as well as fair to the railway 
 companies. 
 
190 
 
 SECTION XVI. 
 
 RAILWAYS AND CANALS. 
 
 GREAT stress is laid on the importance of canals. Rail- 
 way companies have been accused of preventing them from 
 competing with railways, of improperly getting possession 
 of them, not maintaining them, and so acting as to force 
 the traffic on to their lines. In Parliament and elsewhere 
 they have been charged with purchasing canals and then 
 deliberately killing them, either by ceasing to keep them 
 in repair or by reducing rates upon their lines to a point 
 which makes competition by the canals impossible. These 
 assertions have been made before Royal Commissions and 
 Select Committees. In no official report or other authoritative 
 document, however, have they been declared proved ; and it 
 is submitted that facts do not warrant them. Not to the 
 artifices of railway companies, but to altered conditions 
 of trade is due, in the main, the inability of many canals to 
 hold their own against railways. The necessity for rapid 
 transit, the disinclination to keep large stocks, the growth 
 of the practice of applying to the producer or manufacturer 
 as orders come in, and as occasion requires, and the low rates 
 by railway for articles which canals can convey, have all 
 been unfavourable to the latter. It is not unimportant to 
 note that no Commission or Committee has been able to 
 point out any mode in which the decline of canal traffic 
 " the creeping paralysis of our inland waterways " could be 
 
191 
 
 arrested. "We may, too, incidentally note the considerable 
 diversity of opinion as to the importance of canals generally. 
 Some complain that great injury has been done to the trading 
 community by the absorption of the canals by railway 
 companies. 1 Others will have it that too much importance 
 is attached to canals; they have been even described as 
 " those wretched little waterways which could never compete 
 successfully icith the great railway companies. 9 ' 2 
 
 In 1883, a Committee was appointed by Parliament to 
 enquire into the condition and the position of the canals and 
 internal navigation of the country, to report thereupon, and 
 to make such recommendations as might appear necessary. 
 It sat during the greater part of the Session. Many charges 
 were made against railway companies which owned canals. 
 They could not be answered in that Session for want of 
 time. So little importance seems to have been attached to 
 them or indeed to the subject of canals, that the Committee 
 was not re-appointed in the following Session. No report 
 was therefore ever made. 
 
 The subject affords a valuable illustration of the railway 
 legislation in this country, and of the prejudice and mis- 
 apprehension which exist in some quarters as to the conduct 
 of railway companies. Far from there being an inordinate 
 desire to absorb canals, it will appear that those which belong 
 to railway companies have, as a rule, been forced upon them, 
 either to remove the opposition of the canal companies, or as 
 a condition of railway Bills being passed. 
 
 (1) Mr. Mundella, Debate on Eailway and Canal Traffic Bill, 6th May, 
 1886. Hansard, vol. cccv., page 461. 
 
 (2) Sir B. Samuelson, Debate on Kail way and Canal Traffic Bill, 1886. 
 Hansard, vol. cccv., page 441. 
 
192 
 
 Let us give an instance of the treatment which the 
 promoters of railways, when opposed by Ihe representatives 
 of waterways, have received at the hands of Parliament. In 
 respect of the Severn navigation, the Great Western Company 
 are at the present time under a heavy liability. This 
 liability was forced upon their predecessors, the Oxford, 
 Worcester and Wolverhampton Railway Company, when 
 applying for powers to construct their railway, which did 
 not really compete with the navigation to any serious extent, 
 if at all. Clause 94 of the Oxford, Worcester and Wolver- 
 hampton Railway Act of 1845 recites that the Severn Com- 
 missioners had raised the sum of 180,000 upon the 
 security of the tolls on the Severn navigation, in the 
 expectation that those tolls would reach the sum of 14,000 
 a year. It provides that the Great Western and the Oxford, 
 Worcester and Wolverhampton Railway Companies should, 
 from the opening of the Oxford, Worcester and Wolver- 
 hampton Railway for traffic between Worcester and 
 Wolverhampton, and so long as the principal moneys raised 
 by the Severn Commissioners, or interest thereon, remained 
 due, make up to the Severn Commissioners any deficiency 
 between the actual amount of the tolls for any year, and 
 the sum of 14,000. The Great Western Company do not 
 possess or even control the navigation. Yet this liability 
 was forced on the promoters as a condition of obtaining 
 their Bill ; and in respect of it the Great Western Company 
 actually now pay between 6,000 and 7,000 per annum ! 
 
 How much truth there is in the allegation that the 
 canals owned by railway companies are not properly main- 
 tained by these companies, but that on the contrary the 
 railway companies obstruct the trade on them, may be shown 
 
193 
 
 by the case of the Ken.net and Avon canal, which is also 
 the property of the Great Western Company. 1 
 
 This canal was authorised by an Act of 1794. The 
 canal is between Newbury and Bath, a distance of 
 57 miles. But the water communication is extended beyond 
 Newbury on the one side to Reading by means of the River 
 Kennet, and from Bath to near Bristol on the other side 
 by means of the River Avon. The total navigable distance 
 between the points named is 86 J miles. This canal is joined 
 by the Wilts and Berks canal (which is connected with the 
 Thames by the Thames and Severn canal) and the 
 Somersetshire Coal canal. Thus the Kennet and Avon 
 canal forms part of an extensive system of waterways, 
 by communicating direct with the Thames on the one hand 
 and the Severn on the other. The total cost of the Kennet 
 and Avon canal was 1,011,589. It was opened in 1810, 
 from which date, up to 1813, no separate accounts of capital 
 and revenue were kept. But the returns from 1813 show that 
 the receipts of the canal gradually increased from 22,075 
 gross and 11,843 net in 1813 to 58,820 gross and 39,113 
 net in 1840. The opening of the Grreat Western Company's 
 line between Reading and Bath in 1840-41 seriously affected 
 
 0) The Clause in the Regulation of Railways Act, 1873, as to the 
 maintenance of canals is as follows : 
 
 Every Railway Company owning or having the management of 
 any canal or part of a canal shall at all times keep and maintain such 
 canal or part, and all the reservoirs, works and conveniences thereto 
 belonging, thoroughly repaired and dredged, and in good working 
 condition, and shall preserve the supplies of water to the same so that 
 the whole of such canal or part, may be at all times kept open and 
 navigable for the use of all persons desirous to use and navigate the 
 same without any unnecessary hindrance, interruption, or delay. 
 
194 
 
 the canal revenue. The canal company applied to 
 Parliament for powers to construct a railway alongside 
 their canal. Failing in that project, they in 1848 availed 
 themselves of the powers of the General Canal Act, and 
 entered upon the carrying business, from which, however, 
 they derived little profit. In fact the first year was 
 the only year when the revenue derived from the carrying 
 business exceeded the expenses. The opening of the line of 
 railway between Chippenham and Trowbridge in 1848-50 
 still further injured the canal traffic. The canal company 
 offered to transfer their undertaking to the Great Western 
 Company ; and the terms for such transfer were agreed 
 and approved by Parliament in 1852. In sanctioning the 
 arrangement, Parliament, however, imposed upon the Great 
 Western Company the condition that, if at any time the 
 canal tolls were complained of as, in comparison with those 
 of the railway, prejudicially affecting traders on the canal, 
 the Board of Trade should make such regulations and fix 
 such tolls as they might think fit. In 1867-1868 the traders 
 using the canal memorialized the Board of Trade to reduce 
 the tolls. An Arbitrator, who was appointed, reported in 
 favour of a reduction, which was accordingly carried out. 
 The tolls thus fixed were charged up to 1877, when the 
 traders again memorialized the Board of Trade. The 
 matter was referred to the Railway Commissioners, before 
 whom it was given in evidence that if further reductions 
 were made on certain articles constituting the chief 
 trade of the canal, the traffic would materially increase. 
 The Railway Commissioners thereupon reduced the tolls 
 upon those articles from Id. per ton per mile with a maxi- 
 mum of 6s., to Jd. per ton per mile with a maximum, for 
 
195 
 
 the whole distance of 86 J miles, of 2s. But the statements 
 of the traders that an increase of the traffic would follow 
 upon a reduction of the tolls have been found to be entirely 
 baseless. Notwithstanding this great reduction, the traffic 
 had fallen from 159,190 tons in 1876, to 125,807 in 1885. 
 
 The gross receipts in the year 1840 were, aa 
 already stated, 58,820; in 1848 they had fallen to 
 33,205 ; in 1852, when the canal was taken over by the 
 Great Western Company, to 24,291, and in 1885 to 
 4,237. The canal has been maintained in an efficient 
 state of repair by the Great Western Company, in accordance 
 with the obligation imposed upon them by their Act of 
 1852, and the navigation has been always kept open. 
 Notwithstanding the large reductions in the tolls, the traffic 
 has year by year diminished, until in 1885 the expenses 
 considerably exceeded the receipts, without taking into account 
 the interest (between 7,000 and 8,000 a year) which the 
 company have to pay upon the capital expended in acquiring 
 the canal undertaking. These are weighty facts. Although 
 the Great Western Company purchased the Kennet and 
 Avon canal, pay interest on the purchase money, and 
 maintain it, and although they are deprived of the power to 
 fix the tolls upon the canal, and have had to submit to two 
 reductions the maximum under the latter arrangement 
 being for the whole length of the canal little more than one 
 farthing per ton per mile in respect of any description of 
 goods the traffic has continued to fall off. The tolls do not 
 yield sufficient to pay the salaries and wages of the working 
 staff, or even the actual cost of the labour and materials 
 necessary for maintenance and repairs. 
 
 The foregoing illustration, may help to correct the 
 
196 
 
 statements which have been made as to the conduct of 
 railway companies in the capacity of owners or workers 
 of canals. Not only the Kennet and Avon canal, but, it 
 is probable, all the other canals which have been taken 
 over by the Great Western Company, must have been closed 
 years ago if they had remained in the possession of the canal 
 companies. The public have, in fact, had the opportunity 
 of availing themselves of the water carriage when it was to 
 their interest to do so, just because the railway company 
 took over the canals and kept them in working order. 
 
 Though every railway company owning or managing 
 a canal may be compelled under the Section cited on page 193 
 to keep it in repair, only one application for that purpose has 
 been made to the Railway Commissioners. This is scarcely 
 consistent with the loose, unverified accusations as to the 
 shortcomings of railway companies. Besides, it is not true 
 that the whole canal system has passed under the influence of 
 railways. Of the 3,029 miles of canals in Great Britain, 
 1,592 miles are owned or managed by other than railway 
 companies. 1 An examination of the map prepared by Mr. 
 Abernethy, C.E., for the Select Committee of 1883, shows 
 that south of a line passing through Worcester, Birmingham, 
 Nottingham and Hull, there is scarcely a canal of any im- 
 portance, with the exception of the Kennet and Avon 
 
 (") Appendix to Report of Select Committee on Canals, page 214. 
 " These lengths are exclusive of the Kiver Thames, Severn, Wye, Humber, 
 Wear, and Tyne in England; the Elvers Clyde, Forth, Tay, and the 
 Caledonian Ship Canal in Scotland ; the Shannon and other navigations in 
 Ireland." According to Mr. Taunton's Eeport, the canals and navigable 
 rivers in England, Wales, and Scotland under control of railways are 1,447 
 miles as against 2,335, which are independent of railway companies 
 (Appendix 228.) 
 
197 
 
 canal, between Bath and Reading, permanently, temporarily, 
 or partially in the hands of a railway company. 
 
 The fact appears to be that canals flourish only where 
 certain conditions exist. Where a large traffic can be con-* 
 veyed in full boatloads ; where the country is flat, and there 
 are consequently few locks ; where large vessels propelled by 
 steam can be used ; where works are so situated that 
 the cost of collection or delivery can be saved ; in such 
 circumstances, canals are suitable for coal, chalk, cotton, 
 stone, bricks, pig-iron, round timber, grain, &c., and such 
 like goods carried in large quantities, or for short distances. 
 They can, no doubt, when such conditions exist, be 
 beneficially used at a low cost for carriage ; but for traffic 
 not large, or composed of a great variety of articles, 
 which have to be collected in small quantities from 
 different places, or to be distributed all over the country, 
 canals cannot successfully compete with railways. Want 
 of water in dry summers, interruptions from ice in winter, 
 and diversity of gauges in locks and tunnels all matters 
 which add to cost are great inconveniences, and grave 
 objections to water carriage. Often carriage by canal neces- 
 sitates the erection of warehouses for storing goods, which 
 is saved by the transit of traffic by rail. The speed and 
 despatch demanded by the modern necessities of trade have 
 tended to throw upon the railway more and more of the traffic 
 ^hich formerly went by canals, as well as the increase in the 
 traffic of the country. In Staffordshire, canal boats meet 
 from all the principal towns such as Manchester, Liverpool, 
 and parts of Yorkshire in the North, and London and 
 Bristol in the South; but no through traffic is exchanged. -All 
 the traffic of Staffordshire in iron, hardware, chains, anchors. 
 
198 
 
 nails, fyc., outwards, and grain, timber, spelter, bone, 
 manures, &c. inwards, requiring speed, is carried by railways. 
 Where the canal charges are equal to, or lower than, the 
 railway rates, the railways and canals divide the traffic. 
 Newly- opened collieries and works are now, as a rule, laid 
 out for loading into railway wagons, not into boats, because 
 railway stations and railway trucks give greater facilities for 
 distribution of coal to all parts of the country. No doubt 
 certain large canals for example, the Aire and Calder, 
 Bridgwater, and the Leeds and Liverpool can be profitably 
 worked in their exceptional circumstances, as they possess a 
 plentiful supply of water, and traverse a long stretch of 
 comparatively level country. Where such conditions exist 
 for distances of fifty to sixty miles, canals may compete 
 successfully for heavy traffic with railways. 
 
 Nor have the proprietors of canals done the utmost to 
 overcome inherent disadvantages. The existing inland 
 system, with only 7-feet locks, is inadequate. The canals 
 are too shallow ; they are wasteful in the consumption of 
 water ; and they cannot be worked economically. The cost 
 of working larger boats of 300 tons on suitable canals, 
 hauled by steam, and loaded and unloaded by the best 
 appliances of steam cranes would, of course, be much 
 less expensive than that of working the boats of, say 30 
 to 60 tons, now used. 
 
 The cost of haulage on the narrow canals is much in 
 excess of the cost of conveyance by rail, and the difference 
 remains, 1 notwithstanding all efforts to improve the 
 canals; efforts which, to be really useful, it was estimated 
 
 O Seo evidence before the Select Committee on Canals, in 1883. 
 
199 
 
 would cost about 12,000 a mile. Mr. F. Morton, a canal 
 carrier, stated that his firm lost from 100 to 150 per 
 boat, per year, on certain of their " Fly " or quick boats, 
 which, were worked as an auxiliary to their general business 
 with a view to compete with the railways, and help to 
 retain that portion of the "Slow" traffic which they still 
 have. 
 
 In countries possessing a large network of canals and 
 other waterways in France, Holland, and Germany (the 
 Rhine provinces) for example and where railway accom- 
 modation is not so complete as in this country, canals are 
 necessarily important channels of communication. In 
 France the waterways consist of 
 
 Miles 
 
 Navigable rivers 4,627 
 
 Canals 2,967 
 
 7,594 
 
 Except 534 miles the whole of the mileage is the property 
 of the State, and canals have been artificially fostered by 
 it. According to a report prepared by M. Krantz, in 
 1872, and submitted to the Select Committee on Canals in 
 1883, the expenditure upon the waterways in France was on 
 that date 32,738,715 on canals, and 13,557,867 on rivers, 
 a total of 46,296,582, while the cost of maintenance for 
 the year was upwards of 336, OOO 1 . 
 
 In Belgium the aggregate length of the canals and 
 navigable rivers is 1,254 miles, seven-eighths of which 
 belong to the State. On a great portion no toll is charged ; 
 
 f) M. de Foville says (1880) " Sur Us canaux de VEtat, la suppression 
 totale dcs droits dc navigation sera pcut etre bicntdt un fait accompli " p 134. 
 
200 
 
 and on the remainder, sums varying from 3Jd. to Is. Id. per 
 ton per 100 miles. 
 
 In Holland there are nearly 3,000 miles of canals and 
 waterways, the former of which practically belong to the State. 
 
 If the explanation which has been given be not correct 
 if the great obstacle to the success of canals in this country 
 be not their inferiority, as compared with railways, in the 
 carriage of goods to answer the needs of trade why have 
 no new canals been made for some fourteen or fifteen years ? 
 They cost much less per mile than railways, and their main- 
 tenance expenses are not so heavy. That they are falling 
 into decay in this country when left in private hands, is due, 
 in the main, to the fact that this country is well supplied 
 with railway accommodation, and that for most kinds of 
 merchandise they are not such an efficient mode of transport 
 as railways. 1 
 
 0) There is a large mileage of canals belonging to canal companies, 
 and considering the views expressed by some as to the use which could 
 be made of the canals which belong to the railway companies, it would 
 have been instructive if the proprietors of all the independent canals had 
 shown by the manner in which they had maintained and worked them, that 
 the railway companies' canals could be more profitably and usefully worked 
 than they now are. 
 
201 
 
 CONCLUSION. 
 
 THE chief complaints which have been discussed fall 
 under two heads ; first, the statements expressed in many 
 forms that rates on the Continent are lower than rates here, 
 that this difference injures our trade, and that English 
 railway rates ought therefore, to be reduced ; secondly, that 
 rates are based on no principle, that a scientific system ought 
 to be adopted, and that import, transit, and certain other 
 special rates, as the greatest anomalies,ought to be prohibited. 
 A few words remain to be said to summarise my arguments 
 as to each of these statements. 
 
 The facts and figures mentioned at pages 144-8, and else- 
 where have shown, it is hoped, that for instance, the expor- 
 tation of iron or coal the articles more often mentioned in 
 the controversy is not prejudiced by the railway rates 
 charged in England as compared with those charged abroad. 
 There has been, undoubtedly, some loss of trade in particular 
 markets. Eor instance, coal was formerly sent from this 
 country to Antwerp, Rotterdam, and Amsterdam. It is now 
 replaced by Belgian and Grerman coal. Is this very sur- 
 prising ? Is it reasonable to expect that colliery pro- 
 prietors on the Continent would not supply coal, or the 
 Governments, the proprietors of the railways, not 
 convey it at anything above cost price rather than allow 
 foreign coal to be imported, their collieries to stand idle, and 
 their people to be unemployed ? Coal of superior quality 
 can be shipped at Newport and Cardiff at from 6^d. to Is. 
 
202 
 
 per ton. What abatement could reasonably be expected 
 from rates based on such a very low scale ? What effect, if 
 a reduction were made, could it have upon the alleged foreign, 
 competition, and upon the depression in trade ? 
 
 The prices of coal are low because of over production, 
 and undue competition between colliery owners. The ex- 
 travagant prices obtained by colliery proprietors in 1873-4 
 led to the opening of many new collieries in the South 
 Wales, Northern and Midland districts of England, as well 
 as in Germany and elsewhere. The result was to create a 
 capacity of output far beyond the demand 160,000,000 
 tons per annum now as compared with 127,000,000 tons in 
 1873. The desire which exists in every district for reduc- 
 tions in railway rates is not so much to meet foreign, as 
 home competition ; the strength of that desire is ascribable 
 to the activity and intensity of the latter competition. 
 
 In regard to export trade, the inland producers of 
 manufactured goods must be at a disadvantage as compared 
 with their rivals on the sea coast. But no complaint that 
 the railway companies had diverted traffic from England 
 abroad by exorbitant rates was made out before the Railway 
 Bates Committee. The Royal Commission on the Depression 
 of Trade have heard much evidence to that effect, but they 
 have not thought it necessary to call upon the railway com- 
 panies for any reply. To very different causes some of 
 them far reaching and deep is due the depression which 
 interested persons would attribute on superficial grounds to 
 the operation of rates. 
 
 Upon the policies pursued by foreign Governments in 
 regard to the construction and working of railways, it is un- 
 necessary to pass any opinion, No trustworthy judg- 
 
203 
 
 ment is possible without fully considering all the cir- 
 cumstances especially the difficulties to be encountered 
 and the objects which the Governments had in view. 
 It is enough to point out how radically different are the 
 railway systems here and abroad how much at variance are 
 the policies pursued by our Government and by those of 
 Continental States. Here the sole principle running through 
 railway legislation has been to depend upon private enterprise, 
 and to encourage competition between the companies. 1 
 Parliament has afforded no assistance to them, except indeed 
 conferring the power to purchase, often on payment of 
 exorbitant prices, the necessary land. Even when property 
 of the State has been required by a railway company, the 
 Government have, as a rule, been as exacting in their terms 
 as any of the now maligned landowners, wholly different has 
 been the policy of Governments abroad. Not only have 
 railways been saved the payment of extravagant compensa- 
 tion or legal expenses in obtaining powers to construct the 
 
 0) " Monopoly " is at present the favourite word of the adversaries of 
 railways ; everything is permissible because railway companies have a 
 "monopoly." This word has at least three senses. Monopoly in the 
 strict legal sense in which the Bank of England is guaranteed by statute, 
 the exclusive right of issuing notes within a certain area ; monopoly in the 
 sense of being able to exclude other competitors, because in a commercial 
 point of view there is no room for competition, or because the work could 
 not be done more cheaply or better by others. Messrs. W. H. Smith may 
 be said to possess a monopoly in this sense ; monopoly is equivalent to 
 property. No railway company possesses a monopoly in the first sense. 
 No company is guaranteed against competition within any area, as many 
 of them know to their cost. Most attacks against railways are justified by 
 using the word, true in the second or third sense, as if true in the first ; 
 and persons in eminent positions occasionally condescend to sanction the 
 use of this fallacy. 
 
204 
 
 railways or acquire property, but inasmuch as the public in 
 France did not, as in England, come forward to provide the 
 necessary capital, the State supplied large portions of the 
 capital of some railways, and contracted heavy obligations to 
 promote the construction of others. In Germany, the State is 
 responsible for the interest on the capital, the Government a lone 
 bearing any loss arising from charging low rates or otherwise. 
 That also is the position of the Government in Belgium, which is 
 responsible to the extent of 71 per cent, of the railway system 
 in that country. The principles which have guided the 
 Belgian Government in fixing railway rates appear from the 
 extract from the report of the Debate to be found on page 115. 
 At an interview which M. Yandenpeereboom, the Belgian 
 Minister of Eailways, Post and Telegraphs, was good enough 
 to grant the writer, this was confirmed. Asked " what had 
 " been the object which the Government had in fixing the 
 " tariff; whether they had in view the obtaining of a fair 
 " interest on the outlay as a commercial undertaking, or 
 " whether the object was to develop the resources of the 
 " country, looking to a return on the outlay as a secondary 
 " consideration," M. Yandenpeereboom replied *' that the oljsct 
 " had been to develop the resources of the country, and therefore 
 " a return on the capital was not of primary importance." 
 These fundamental differences cannot be disregarded ; the 
 fruits of systems so radically dissimilar cannot be expected 
 to be the same. 
 
 If the State here, as in France, had provided without 
 charging interest towards the capital expended upon the rail- 
 ways in this country, the same proportion as was so provided 
 by the State in France (say upwards of 200,000,000), and 
 guaranteed from 7 to 11 per cent, dividend on the remainder 
 
205 
 
 of the share capital ; if it had, as in Holland, found three- 
 fifths (480,880,000) of the total sum expended on British 
 railways, and accepted less than one per cent, interest upon 
 the advance, the railway companies in this country could 
 have afforded to carry at rates considerably lower than they 
 now carry. It would not have been unreasonable in that 
 case on the part of traders to have called on them to do so. 
 
 But the benefits, such as they are, of the Continental 
 system cannot be fairly claimed without bearing the cost. 
 Other countries, having in view advantages from rail- 
 ways, have paid for them with public money, and are 
 prepared to pay still further for them at the expense of the 
 taxpayer ; it would be an unreasonable and scarcely honest 
 policy to try to get indirectly the same rights and advan- 
 tages without payment. 
 
 Our Government have been called upon to reduce the 
 rates of the railway companies upon the complaint of traders 
 that they have to compete with French, German, and 
 Belgian traders, who are served by what, speaking generallj-, 
 may be termed " subsidised lines." To such an application 
 the answer of the Government of this country, who have 
 hitherto declined to aid the sugar manufacturers in their 
 competition with those in France, supported though the 
 latter are by State bounties, cannot be doubtful. Nor 
 would purchase by the State remove all the differences 
 which have been mentioned. Some of them cannot 
 now be overcome. If the Government did purchase the 
 railways, and by reducing the accommodation to some- 
 thing like that given on the Continent, were enabled to 
 diminish the working expenses ; if they placed the railways 
 on the same footing as regards duties and taxes as the 
 
206 
 
 Government lines in Germany, the fact would remain that 
 the railways in this country have cost from 45 to 120 per 
 cent, more than those on the Continent, and that in wages 
 alone there is a disparity which they would not be able 
 materially to alter. 
 
 The volume of trade in England, it may be said, is 
 greater in proportion to that of other countries ; this should 
 be considered, it may be argued, as an equivalent for the 
 greater cost of construction and working of the railways. 
 The fact that the average dividend is only 4'02 per cent. 
 that is, two-fifths of the dividend which in 1844 it was con- 
 sidered the railways should pay is one of several answers 
 to this contention. 
 
 A few remarks may be made with respect to the 
 second class of complaints those which relate to the mode 
 of fixing rates. 
 
 The chief question is, What rates will at once yield a 
 fair return on the capital of railways and best accommodate 
 and develop the trade of the country ? The oarly Acts 
 provided that they should be fixed according to mileage. This, 
 as we have seen, was altered by s. 90 of the Railway Clauses 
 Act 1845. Are railway companies no longer to carry out the 
 provision of that Act, and continue to charge rates " so as 
 " to accommodate them to the circumstances of the traffic?" 
 That principle has guided them for forty years, and cer- 
 tainly ought not to be altered without good cause and full 
 consideration. Instead of merely inveighing against the 
 present mode of fixing rates as unscientific, those who are 
 dissatisfied should explicitly state what mode they would 
 substitute, and make clear by full explanation that it would 
 be at once fair to the companies, and not injurious to the 
 
207 
 
 trade of the country. To charge according to actual cost of 
 conveyance, or on a strictly mileage basis, has been shown to 
 be impracticable and impolitic. What other modes can be 
 suggested ? 
 
 If the mode of fixing rates adopted in France, Holland, 
 Belgium and Germany systems which differ from each 
 other are suited to those countries they would be inappli- 
 cable here. In practice they have to be modified. In 
 Holland, for instance, the theory is mileage rates, but the 
 greater portion of the traffic conveyed by railways is, in fact, 
 carried on under special contracts wholly inconsistent with 
 the principle upon which the rail way rate system is nominally 
 based, which, if imitated in this country, would afford con- 
 tinuous occupation for the Railway Commissioners. 
 
 The main complaint against the English companies is 
 that they so charge differential rates as to encourage foreign 
 competition. The effect of these rates is apt to be over- 
 estimated or misunderstood. The benefits which the manu- 
 facturers derive from the low export rates based upon 
 exactly the same principle are entirely ignored. It may 
 be a matter of doubt whether it has been prudent on the 
 part of railway companies to consent to some of the import 
 rates complained of. Indeed, this doubt maybe entertained, 
 even if there is no substantial grievance, and it may be de- 
 sirable that Parliament or the Board of Trade should 
 institute an inquiry into the subject, which affects not only 
 the interests of railway companies, agriculturists, and manu- 
 facturers, but also these of consumers, steamboat proprietors, 
 merchants, and seaports. 
 
 No system of rates can be suggested, much less adopted, 
 which would satisfy the desires of all traders. When the 
 
208 
 
 recommendation of the Railway Bates Committee is carried 
 out when one uniform classification is adopted over all the 
 railways, and the maximum rate clauses of the Companies 
 are consolidated and revised on the basis of their existing 
 powers any difficulty in ascertaining whether the charges are 
 within the companies' powers will be removed. The reason- 
 ableness of the charges for terminal services will be 
 determined by the Bail way Commissioners. 
 
 Instead of the many scales of tolls now in force on all 
 large systems of railways due to their being built up of 
 originally independent lines one or at most two scales 
 of tolls will govern the entire systems of companies. By 
 this process a great improvement will be effected. Many 
 of the anomalies in the rates will be removed. But it 
 is to be hoped, in the interest of the trade of the country as 
 a whole, that no legislation affecting railways, while pre- 
 serving the existing provisions against undue preference, will 
 interfere with the right of the companies to charge, within 
 their maxima, differential rates such as the traffic will fairly 
 bear ; a power which has enabled them to meet the require- 
 ments of producers and consumers in varying circumstaaces. 
 
 These observations have not been written with a view to 
 prove that there is no scope for criticism in the management 
 of railways in this country, but are made with every desire 
 to comprehend and appreciate all reasonable objections. They 
 do not pretend to solve all difficulties of the railway problem ; 
 but they may, at least, show the serious dangers which would 
 arise if some of the crude and popular proposals often put 
 forward were adopted, and may aid in arriving at a safe and 
 equitable settlement. 
 
APPENDIX I. 
 
 COMPARISON BETWEEN ENGLISH AND FOREIGN RATES. 
 
 THE figures and facts which have been stated prove that, 
 as a rule, 110 fair, or even useful, comparison can be made be- 
 tween rates per ton per mile on railways in England, and those 
 charged on railways in continental countries. A multitude of 
 circumstances original cost of construction, difference in 
 gradients, nature of services performed, speed in transit, limited 
 liability of foreign companies, opportunities for getting full 
 loads, immunity from taxation must all be taken into account 
 before a just comparison can be established. 
 
 But even assuming due regard is not given to these striking 
 differences the inference to the extent drawn by Sir B. 
 Samuelson is not accurate ; the rates on the Continent are 
 not universally lower. Sir B. Samuelson's report contains 
 many errors of detail ; and some of them are worth noting, 
 because they are frequently repeated. Comparisons throughout 
 have been made without due regard to the conditions attaching 
 to the rates, or the different circumstances under which the 
 traffic is carried. "We give a few instances of the errors ; errors, 
 it may be observed, not merely in calculation but in the very 
 bases of the comparison. 
 
 An effort has been made to reduce the English rates (which 
 include collection and delivery) to station to station rates, with 
 the object of comparing them with similar rates in other 
 countries. But many of the deductions are inaccurate and 
 
 o 
 
11 
 
 misleading. Instead of adding to the continental station to 
 station rates the charges for cartage, which in Brussels is 4s. 
 per ton, and in other Belgian towns about 2s. 5d. at each end, 
 Sir B. Samuelson has apparently made arbitrary deductions of 
 sums varying from 3d. and 4d. to Is. and 2s. per ton for cartage 
 from British rates. These are manifestly insufficient deductions. 
 It is impossible that services could be performed for such sums, 
 especially in London. "We cite a few illustrations of this class 
 of errors. 
 
 For IRON WIRE packed from Birmingham to London the rate is shown 
 as 24s. 4d. per ton ; the actual rate is 28s. 4d. per ton, including collection 
 and delivery. Apparently 4s. per ton has been deducted for cartage at both 
 ends ; that is merely 2s. per ton for cartage in London, although the cost of 
 delivery in such a city as Brussels would he 4s. per ton. 
 
 Similar remarks apply to the rates for unpacked iron wire from Bir- 
 mingham to London and Manchester, which have been treated in the same 
 way. 
 
 COTTON GOODS from Manchester to Oxford. The rate shewn on page 
 32 is 42s. per ton, station to station ; the correct rate, including collection 
 and delivery, being 42s. 6d. per ton, so that 6d. per ton, or 3d. per ton only 
 at each end, has been apparently allowed for collection and delivery. 
 
 WOOLLEN, WORSTED AND STUFF GOODS from Bradford (Yorks) to 
 Norwich. The rate shown on page 32 is 41s. per ton, station to station, 
 while the correct rate, including collection and delivery, is 41s. 8d. per ton ; 
 8d. per ton being apparently allowed in this case for the two services of 
 collection and delivery. 
 
 GENERAL MACHINERY from Leeds to Newcastle. The export rate is 
 12s. 6d. per ton, including both collection and delivery, but 11s. 6d. is shewn 
 on page 33 of report ; that is, Is. per ton only has been deducted for the 
 two services of collection and delivery. ( ! ) 
 
 (*) Some difficulty has been experienced in checking the rates contained 
 in Sir B. Samuelson' s report owing to the distances not being given, and from 
 the name of the district being used instead of the names of the places 
 between which the rates are shewn. For instance, although the South Wales 
 Coalfields extend over a very large area, a rate of 7s. 3d. per ton foi coke 
 is referred to as from "South Wales to Darlaston," on page 24 of the 
 
Ill 
 
 These errors make many of the comparisons valueless. 
 A still graver error has been repeatedly committed. 
 Notwithstanding the remark (page 19) that the cost of collection 
 and delivery has been deducted, Sir B. Samuelson has in numerous 
 cases assumed British rates, which include either collection or 
 delivery, and in some cases both those services, to be station to 
 station rates, and compared them as such with station to station 
 rates on the foreign lines. Here are a few examples of this 
 class of mistakes. 
 
 GENERAL MACHINERY. Leeds to Hull, the export rate of 12s. 6d. per 
 ton is shown on page 33 as station to station, whereas it includes both col- 
 lection and deliveiy. 
 
 Though all the following rates for BUTTER include collection and 
 delivery, they are shewn on pages 38 and 39 as station to station, viz. : 
 
 s. d. 
 
 Hull to Manchester 21 8 perton. 
 
 ,, Birmingham 21 8 ,, 
 
 Leeds 13 4 
 
 Newcastle to Manchester ... ... 23 4 ,, 
 
 ,, Birmingham 21 8 ,, 
 
 ,, Leeds 14 2 ,, 
 
 An unfortunate omission may be mentioned. In some cases 
 there are alternative rates on the English railways, i.e., a, higher rate 
 when the company undertakes the risk of conveyance, and a lower 
 rate when the risk is borne by the owner. In no single instance 
 has Sir B. Samuelson taken in his comparisons the lower owner's 
 risk rate chargeable at the option of the consignor. Yet in 
 Holland, for instance, the goods are carried practically at the 
 risk of the owner. On some goods no compensation for damage 
 or delay is payable, while on the others the compensation is 
 limited, in some cases, to simply a return of a portion, or, at 
 the utmost, the whole of the freight. We give a few examples 
 of this class of errors. 
 
 report ; and in like manner on pages 27 and 28 the rates for pig iron are 
 given as from " Cleveland and Northamptonshire." 
 
iv 
 
 The rate for iron wire packed from Birmingham to London is shown 
 on page 29 as 24s. 4d. per ton station to station ; there is no reference to 
 the fact that there is an owner's risk rate of 19s. 2d. per ton, collected and 
 delivered. 
 
 In like manner the rates for agricultural implements shown in the 
 first column of the following table are given on pages 33 & 34 of the 
 report, although there are the special rates shown in the other columns, all 
 notice of which has been omitted. 
 
 AGRICULTURAL MACHINES. 
 
 FROM 
 
 TO 
 
 Rates 
 per ton in 
 report reduced 
 to station to 
 station. 
 
 SPECIAL RATES. 
 
 Agricultural 
 Engines, 
 Steam 
 'loughs, &c., 
 station to 
 station. 
 
 Machines 
 in cases and 
 iron harrows 
 collected and 
 delivered. 
 
 Machines 
 not in cases at 
 owner's risk 
 collected and 
 delivered. 
 
 
 
 per ton. 
 
 per ton. 
 
 per ton. 
 
 per ton. 
 
 Banbury 
 
 London . . . 
 
 25/2 to 32/- 
 
 14/8 
 
 24/2 
 
 25/- to 29/7 
 
 ii 
 
 Lynn 
 
 28/8 34/6 
 
 19/8 
 
 26/8 
 
 27/1 32/1 
 
 >> 
 
 Shrewsbury 
 
 25/4 ,, 30/4 
 
 16/2 
 
 23/4 
 
 24/2 28/4 
 
 
 
 Liverpool... 
 
 35/4 43/8 
 
 *28/6 
 
 *31/8 
 
 32/6 ,, 39/7 
 
 
 
 Bridgwater 
 
 34/6 ,, 40/4 
 
 24/- 
 
 29/2 
 
 31/3 36/8 
 
 Bedford 
 
 London . . . 
 
 18/8 22/- 
 
 ll/- 
 
 17/6 
 
 18/4 21/3 
 
 * Collection in Banbury, and delivery alongside ship in Liverpool in 10 ton lots. 
 
 These are not the only misleading omissions ; it is incum- 
 bent to mention others not less important. 
 
 In Holland bulky articles pay double the fast goods or 
 ordinary goods rates, or as for a minimun truckload of 5,000 
 or 10,000 kilogrammes respectively. An actual instance of a 
 consignment from Rotterdam to Munich will illustrate tlie 
 system : 2 machines and 7 packages of appurtenances, the 
 
actual weight of which was 6,762 kilogrammes (6 tons 13 cwt.) 
 were charged as for 10,000 kilogrammes (9 tons 16 cwt. 3 qrs.) 
 under the conditions of special tariff No. 3. This special rate is 
 ignored. 
 
 In almost every instance, Sir B. Samueison has taken the 
 lowest rates in Germany, Belgium and Holland, which are 
 applicable only to full truckloads of 5 and 10 tons, and in some 
 cases, viz., Belgium, to a minimum weight of 8 cwt. These he 
 has used for the purpose of comparison with English rates for 
 any quantities over 500 Ibs. 
 
 The rate for hardware from Birmingham to Newcastle for export 
 206 miles is 27s. 6d. per t)n, including collection and delivery, but it is 
 shewn as 25s. 6d. per ton, station to station, overlooking the special 
 owner's risk rate of 25s. per ton, which also includes col lection and deli very. 
 The German rate for the same distance (331 kilometres) is incorrectly given, 
 as 18s. 7d. per ton ; the lowest station to station rate is 19s. per ton for 
 full truckloads of not less than 5 tons, the rate for smaller quantities, in- 
 cluding collection and delivery, being 45s. 2d. per ton. 
 
 In Belgium again, the station to station rate of 18s. lid. per ton 
 (which should be 19s. 4d.) is for a minimum of 8 cwt., the rate, including 
 collection and delivery for the pame minimum, being 24s. 3d. per ton. 
 
 The Dutch station to station rate of 14s. lOd. per ton (which should be 
 15s. 7d.) is for full truck loads of not less than 5 tons, the rate, including 
 collection and delivery for any quantities, being 30s. 4d. per ton. 
 
 In the German tariff the rate is 2-1 5d. per ton per mile for 
 goods of every description in lots of less than 5 tons, with a 
 lower tariff divided into six classes for goods in full truckloads 
 of 5 and 10 tons. The latter have been compared with the 
 rates on English railways applicable to consignment of 500 Ibs. 
 and over, or of 2 tons. The higher foreign tariff for such 
 traffic, in like circumstances, is not shown. To arrive at a 
 proper comparison, the English rate should, in many instances, 
 have been compared with the rates charged for " Eilgut" (or 
 fast goods service) on the continental lines. Of course, the 
 general public in Holland and Germany cannot avail themselves 
 
VI 
 
 of the rates for 5 and 10 ton lots. They must deal with 
 carriers or forwarding agents, who perform many of the services 
 included in the rates on English railways, and who nil up, or 
 partially fill up, truckloads. The agents who pay the railway 
 transit charges are free to make their own charges to the 
 public without limitation. What would bs instructive what, 
 however, is not supplied would be a comparison between what is 
 actually paid in England, and what the majority of the public 
 pay in Germany ; it is of little interest to know what the carriers 
 or forwarding agents pay to the railway companies. The com- 
 parison, such as it is, does not show the rate of conveyance per 
 ton, because the carriers have to pay as for five or ten 
 tons, even if that quantity is not in a wagon. They must make 
 charges to the public beyond the ordinary profits to cover 
 deficiences in the loads per wagon, as well as for all the services 
 performed by them. (*) 
 
 In some instances, Sir B. Samuelson has not included in the 
 foreign rates the charge for loading and unloading. Bar-iron is a 
 case in point. In every other case he has omitted to include in 
 those rates the charges for weighing, counting, labelling, book- 
 ing, use of cranes, and advice of arrival of goods all of which 
 are authorised additional charges beyond the tariff rates. In 
 this country, as is well known, such services are included in the 
 collected and delivered railway rates. ( 2 ) 
 
 ( 1 ) The observation made in the report that the higher rates in 
 Germany are avoided by the intervention of forwarding agents, 
 who collect from small consignees, and make up the minimum lead, 
 charging somewhat higher rates than for 5 or 10 ton lots, shows that it 
 was seen that, although the comparison of British rates is made with 
 them, the general public cannot ohtain the advantage of the low rates, 
 because of the heavy minimum quantities. 
 
 (2) The following are the charges authorised to be made for such 
 services in addition to the mileage rate and terminals in Geimany, Holland, 
 and Belgium : 
 
Vll 
 
 Such are some examples of the errors vitiating the com- 
 parison. We have by no means exhausted them ; they might 
 be greatly multiplied. It is not intended to suggest that Sir B. 
 Samuelson has been more inaccurate than other critics. On the 
 contrary, his report, notwithstanding its inaccuracies, shows 
 that a considerable amount of labour has been expended hi 
 endeavouring to obtain the information. It is a favourable 
 specimen of such criticisms, and for this reason it is deserving of 
 notice. It is, of course, difficult for any person, even when 
 practically acquainted with railway business, to appreciate the 
 practical effect of the different conditions under which traffic is 
 carried on Foreign and English railways. It is not surprising 
 
 
 GERMANY. 
 
 HOLLAND. 
 
 BELGIUM. 
 
 Counting , 
 
 l'2d. per 20 pieces. 
 Is. Od. per truck 
 minimum. 
 3s. Od. per truck 
 maximum. 
 
 0-2d. perpackge. 
 
 Id. per ton. 
 
 Weighing ) 
 
 Stuck gut 0'6d. per 
 2 cwt. 
 WagonLoadsO-48d. 
 per 2 cwt. if each 
 piece is weighed 
 separately; is.Od. 
 per truck. 
 
 from 0-2d. to 
 0'6d. per 2 cwt. 
 
 5d. per ton 
 
 Booking 
 Labelling 
 
 0-6d. per piece. 
 
 0-6d. perpackge. 
 
 2d. per consign- 
 ment. 
 2d. 
 
 Stamping 
 
 ... 
 
 l-2d. each note. 
 
 ... 
 
 Use of Cranes ... 
 Advice of Goods 
 
 0-36d. per 2 cwt. 
 9d. minimum. 
 About |d. 
 
 lOd. to Is. 8d. 
 per ton. 
 Id. 
 
 3d. per ton. 
 Id. 
 
 Tarpaulins 
 
 2s. Od. each. 
 
 2s. Sd.each. 
 
 Is. 7d. each. 
 
 Disinfecting 
 
 Is. per truck. 
 
 Is. per truck. 
 
 Is. per truck 
 
Vlll 
 
 that Sir B. Samuelson has evidently not become fully acquainted 
 with all the conditions of carriage, or that he has omitted to give 
 them their proper value in the tables which he has prepared. 
 Unfortunately, owing to the omissions, the conclusions which he 
 draws are, in some cases, erroneous, and in others misleading. 
 
IX 
 
 APPENDIX II. 
 
 COMPARISON OF RAILWAY RECEIPTS FROM MERCHANDISE 
 AND MINERAL TRAFFIC. 
 
 IT may be useful to enquire how far it is true that the heavy 
 trades of coal and iron, or the general trade of the country, 
 are being " slowly, but surely killed by high rates and tolls," or 
 otherwise. That trade in all countries is subject to fluctuation 
 is undoubted, and the causes are many and various. The con- 
 A eyance of minerals and goods upon the railways of the United 
 Kingdom is one test. Let us take periods of three years : 
 RAILWAY RECEIPTS IN UNITED KINGDOM. 
 Average per Year. 
 
 Years. For minerals. General merchandise. 
 
 1875 to 1877 ... 13,560,096 18,922,238 
 
 1878 1880 ... 13,891,326 19,181,927 
 
 1881 1883 ... 15,742,615 20,801,075 
 
 1884 & 1885 ( 2y oT 8 115,387,443 20,631,066 
 
 (.depression) 
 
 According to the test of railway receipts for conveyance 
 of minerals and goods, the killing process seems very slow indeed, 
 and it is not even sure, because in 1885 the railway receipts 
 for minerals were in some instances reduced. The average 
 receipts for minerals were about 2 J per cent, less on the average 
 of the past two years as compared with those of the previous 
 three years. In the case of goods traffic this percentage was only 
 - 82 per cent. But, as against the above average receipts for 
 
1884 and 1885, let us place the average for the preceding nine 
 years. For minerals, 14,398,012 ; for goods, 19,635,080, 
 which shows an increased receipt on the average of the past 
 two years on minerals of 989,431 ; on goods of 995,986. 
 Certainly these results are the reverse of decay in traffic or trade. 
 Another and better test is the tonnage of minerals and goods 
 conveyed on the railways of the United Kingdom for the like 
 
 period. 
 
 Years. Minerals. Goods. 
 
 Tons. Tons. 
 
 1875 to 1877, average ... 141,910,505 64,094,565 
 
 1878 1880 ... 152,528,097 65,548,450 
 
 1881 1883 ... 182,310,041 74,204,559 
 
 1884 1885 ... 183,696,151 74,612,020 
 
 This test contradicts the theory of decaying trade in an 
 
 unmistakable manner, but it may be urged that these averages 
 
 are insufficient to show the great depression in 1885. The fact is, 
 
 that in 1885 there was a larger tonnage of minerals conveyed 
 
 than in any year, with the exception of 1883, and a larger tonnage 
 
 of goods than in any year except 1882, 1883 and 1884. 
 
 But a third test, that of production, may be applied. In 
 1884, the quantity of coal raised in the United Kingdom 
 
 was 160,758,000 tons. 
 
 and in 1885... 159,351,000 
 
 Decrease 1,407,000 tons. 
 
 or about -88 per cent. 
 
 In 1884 the tonnage of iron ore raised was 16,138,000 tons, 
 And Iron Ore imported 2,730,800 
 
 18,868,800 tons. 
 
 In 1885, 15,418,000 tons of Iron Ore were raised 
 Add 2,822,600 imported. 
 
 18,240,600 
 being a decrease of 628,200 tons, or a decrease of 3*33 per cent. 
 
XI 
 
 In 1883, the quantity of pig iron produced in Great 
 
 Bri'ain was 8,1529,000 tons. 
 
 1884 , ... 7,812,000 
 
 18S5 7,415,000 
 
 The fact is, that 1 883 was an exceptional year. The tonnage 
 of minerals conveyed by railway in 1883 was 8,075,101 tons 
 greater than in 1^82, 13,451,612 tons greater than in 1881, 
 and 23,815,308 tons greater than in 1880. 
 
 And in like manner the tonnage of general merchandise 
 conveyed in 1883 was 2,192,034 tons in excess of 1882, 5,886,356 
 tons in excess of 1881, and 7,262,031 tons in excess of the 
 tonnage of 1880. 
 
 The production of pig iron is not a real test, inasmuch 
 as large stocks accumulate ab certain periods, and the ratio of 
 production is lessened in order to reduce the quantity in stock. 
 
 No doubt depression of trade may arise from lower prices. 
 The years 1876 and 1877 were probably those during which the 
 highest possible prices ruled for coal, iron, <fec. "What were the 
 quantities conveyed by railway ? 
 
 Minerals. Merchandise. 
 
 Tons. Tons. 
 
 In 1875 ... 137,087,713 ... 62,981,938 
 
 1876 ... 141,779,393 ... 64,185,671 
 
 1877 ... 146,864,410 ... 65,116,085 
 
 1880 ... 165,670,304 ... 69,635,325 
 
 1883 -... 189,485,612 ... 76,897,356 
 
 1885 ... 183,776,745 ... 73,511,709 
 
 If lower prices now rule, it is clear there is a very much 
 larger volume of trade now than in the years of high prices. 
 That there has been depression in some branches of the trade of 
 the country may be a fact, but it is only natural to overrate and 
 overstate its reality and importance, and to cast blame upon 
 the wrong parties. 
 
Xll 
 
 APPENDIX III. 
 
 TARIFFS AND CONDITIONS FOE THE CONVEYANCE 
 OF MERCHANDISE TRAFFIC. 
 
 HOLLAND. 
 
 THERE is no scale of rates universally chargeable in Holland ; 
 each railway company is authorised by the Concession under 
 which the railway was constructed to charge certain specified 
 rates. The rates actually charged are, as ia England, generally 
 lower than the maximum, and they are controlled by the State. 
 
 Although the same maximum rates do not govern all the 
 railways in Holland, and the classifications also vary, the basis 
 of a mileage scale is practically the same throughout, viz. : a 
 rate per kilometre and per ton according to distance, and a fixed 
 charge for Station terminals according to class. The terminal 
 charges on Fast and " Piece " (ordinary) goods include loading 
 and unloading, but in the wagon load classes the terminals do 
 not include those services. 
 
 The tariff for the conveyance of through Goods Traffic 
 i.e.) traffic exchanged between all Dutch Railways is divided 
 into the following classes, viz. : 
 
 1. Fast Goods, carried by ordinary Passenger 
 Trains. 
 
 2. 6t Piece" (Ordinary) Goods, or consignments 
 under 5 tons carried by Goods Trains. 
 
Xlll 
 
 3. Truck loads Classes A, B and C. 
 Mileage rates per kilometre and per ton of 1,000 kilos. : 
 
 
 Fast 
 
 Ordinary 
 Goods 
 
 Truck Loads. 
 
 DISTANCES. 
 
 Goods. 
 
 less than 
 5 tons. 
 
 Class A. 
 
 Class B. 
 
 Clas-s C. 
 
 
 Cents. 
 
 Cents. 
 
 Cents. 
 
 Cents. 
 
 Cents. 
 
 1 to 50 kilometres 
 
 0.10 
 
 0.06 
 
 0.04 
 
 0.03 
 
 0.02 
 
 51 to 150 ,, 
 
 0.09 
 
 O.C5 
 
 0.03 
 
 0.02 
 
 0.01 
 
 151 to 250 ,, 
 
 0.08 
 
 0.04 
 
 0.02 
 
 0.01 
 
 0.01 
 
 251 and upwards 
 
 0.07 
 
 0.03 
 
 0.01 
 
 0.01 
 
 0.01 
 
 KOTE. One C3nt. per 1,000 kilogrammes per kilometre equals 0.327d. 
 per ton per mile. 
 
 Terminal charges per 1,000 kilos. : 
 
 s. d. 
 
 Fast Goods Fl. 2.50 f Including loading } (4/2) 
 
 Ordinary Goods ... ,, 1.50l and unloading 1(2/6) 
 
 Class A 0.90 (1/6) 
 
 B 0.80 (1/4) 
 
 C 0.70 (1/2) 
 
 Consignments of Fast Goods and Piece Goods weighing 
 less than 50 kilos. (1 cwt.) are charged as for 50 kilos. the 
 minimum charge per freight note being 60 cents. (Is.) by Fast 
 Train; 30 cents. (6d.) by Goods Train. 
 
 To the " Ordinary Goods" class belong all goods in lots of 
 less than 5 tons carried by Goods Train ; to the " Truck 
 Load," class A all goods in 5 ton lots, or paying as for 5 
 tons, which, according to the classification, do not belong to 
 classes B or 0. Classes B and C comprise Truck Loads of 5 
 and 10 tons respectively of such goods as are specified in the 
 classification. 
 
 On the DUTCH STATES AKD CENTRAL RAILWAYS the mileage 
 
XIV 
 
 rates for local traffic are the same as the foregoing scale for 
 
 through traffic ; but the terminals vary as under : 
 
 Terminals 
 per Ton of 
 1,000 Kilos. 
 
 Fl. 1.40 ( including loading I (2/4) 
 ,,0.90 | and unloading J (1/6) 
 0.70 (1/2) 
 
 0.70 (1/2) 
 
 Fast Goods 
 Ordinary Goods., 
 
 Class A 
 
 B 
 
 C... 
 
 0.70 
 
 (1/2; 
 
 On the HOLLAND RAILWAY the mileage rates and the ter- 
 minals for local traffic are as follows : 
 
 Mileage Rates 
 per Ton, and 
 per Kilometre. 
 
 Fast Goods ... Fl. 0.08 . 
 
 Ordinary Gooods 0.05 . 
 
 Class A. ... 0.02J. 
 
 B. ... 0.02 , 
 
 C. , 0.013. 
 
 Terminals 
 per Ton of 
 1,000 Klos. 
 Fl. 1.20 ( Including 
 
 0.80 
 0.80 
 0.70 
 
 (1/4) 
 
 (1/2) 
 
 On the DUTCH RHENISH RAILWAY the following are the 
 mileage rates charged : 
 
 
 FAST 
 
 GENERAL 
 GOODS. 
 
 BULK. GOODS. 
 
 SPEC'L 
 
 
 GOODS. 
 
 
 
 CLASS. 
 
 
 
 I. 
 
 II. 
 
 A. 
 
 B. 
 
 C. 
 
 D. 
 
 
 
 * 
 
 (Pe 
 
 r 1000 
 
 Kilogr 
 
 mine 
 
 in < e 
 
 nts.) 
 
 
 
 cts. 
 
 cts. 
 
 cts. 
 
 cts. 
 
 cts. 
 
 cts. 
 
 cts. 
 
 ots. 
 
 Rate per Kilometre 
 
 13-3 
 
 6-7 
 
 5-3 
 
 4 
 
 3-3 
 
 2-7 
 
 2 
 
 1-3 
 
 Terminals ... 
 
 fl.1-20 
 
 60 
 
 60 
 
 60 
 
 60 
 
 60 
 
 60 
 
 72 
 
 
 
 
 (In 
 
 nglish 
 
 MoHI'l/. 
 
 Pence) 
 
 
 
 
 d. 
 
 d. 
 
 d. 
 
 d. 
 
 d. 
 
 a. 
 
 d. 
 
 d. 
 
 Rate per mile 
 
 4-28 
 
 2-156 
 
 1-7 
 
 1-288 
 
 1-056 
 
 0-87 
 
 0-64 
 
 0-418 
 
 
 s. d. 
 
 s. d. 
 
 s. d. 
 
 s. d. 
 
 s. d. 
 
 s. d 
 
 s. d. 
 
 s. d. 
 
 Terminals ... 
 
 2 
 
 1 
 
 1 
 
 1 
 
 1 
 
 I 
 
 1 
 
 1 2-5 
 
 * The terminals for Fast, and General Goods Classes 1 and 2, include 
 loading and unloading. 
 
 NOTE. By agreement the Holland Railway Company are bound to 
 adopt the same basis ns the local rates on the States Railway, unless their 
 own scale is lower. 
 
The tariff of the DUTCH RHENISH RAILWAY is divided into 
 the following classes : 
 
 (a) Fast goods, which are usually forwarded by mixed Goods 
 and Passenger trains and by Fast Goods trains. 
 
 (b) General Goods in quantities of less than 5 tons not 
 mentioned in the classification as belonging to another class. 
 (Class I.) 
 
 (c) General Goods in quantities of less than 5 tons "which 
 pay less according to classification. (Class II.) 
 
 Goods of these two Classes in lots of at least 5 tons pay the 
 rate of Class A. 
 
 (d) Bulk Goods which in quantities of at least 5 tons, or 
 quantities which are charged as if for that weight, are carried at 
 reduced rates. These are sub-divided into Classes A, B, C and 
 D. Goods belonging to Class A, in quantities of 10 tons in one 
 truck are carried at the rates of Class B. 
 
 (e) Special class Goods which in consignments of 10 tons, 
 or paying for that weight, are carried at special reduced 
 rates. 
 
 Goods in the Special Class must be in lots of 10,000 
 kilos. (10 Tons.) If a consignment weighed 11,000 kilos., the 
 first 10 ; 000 kilos, would be charged at the Special Rate, and 
 the remaining 1,000 kilos, at the rate for Class I. 
 
 Goods in classes A, B, and C, are only charged at those rates 
 if the consignments exceed 5 tons. 
 
 Goods belonging to Classes B, C, and D, and to the Special 
 Class are carried in open wagons, the railway not being com- 
 pelled to provide covers; but the consignor may cover the 
 trucks at his own expense and risk, or give instructions in the 
 freight-note for having the goods rated according to Class A, in 
 which case they are treated in the same manner as goods belonging 
 to that class. An exception is made, however, in the case of 
 
XVI 
 
 those goods which, according to law, must be carried in open 
 trucks. 
 
 The consignor may also give directions that the goods 
 belonging to Class A are to be carried at the rates of Class B, 
 in which case they are conveyed in open trucks. Those goods, 
 which although paying the rates of Class A, must be carried in 
 open trucks, are excluded from this regulation. 
 
 At the special request of senders, tarpaulins are supplied by 
 some of the railway companies, if there are any available, upon 
 payment of fl. 1.60 (2s. 8d.) each, for distances up to 225 kilo- 
 metres, with an additional charge of fl. 0.80 (Is. 4d.) for each 
 additional 225 kilom. The DUTCH RHENISH and HOLLAND 
 RAILWAY COMPANIES do not supply tarpaulins under any cir- 
 cumstances. 
 
 The railway companies undertake no responsibility 
 whatever for damage arising from goods being carried in open 
 trucks. 
 
 The following charges are allowed by law in addition to the 
 foregoing rates and terminals : and with few exceptions they are 
 the same on all railways. 
 
 For loading or unloading goods carried under the 
 conditions of the truck load classes, if the service is per- 
 formed by the railway company 
 
 DUTCH STATES AND CENTRAL RAILWAYS, 5d. per ton. 
 HOLLAND RAILWAY, 4d. per ton for ordinary sized goods, for 
 
 articles weighing 1 ton or more Is. 2cl. per ton. 
 DUTCH RHENISH Railway, 4d. per ton. 
 
 Goods which are of unusual size or weight, or for the 
 loading and unloading of which special arrangements have to 
 be made, must always be loaded and unloaded by consignor 
 or consignee at their own cost and risk. 
 
xvii 
 
 For the use of cranes and other hoisting tackle, when 
 the owner of the Goods finds the labour, the following are 
 the charges : 
 DUTCH STATES AND CENTRAL RAILWAYS, lOd. per ton. 
 
 DUTCH RHENISH RAILWAY. Per ton 
 
 for loading 
 or unloading 
 
 s. d. 
 
 For articles weighing 1 to 5 tons ... 10 
 
 5 to 10 ... 1 3 
 
 10 to 12 ... 1 8 
 
 For tipping coals in quantities of 
 
 100 tons and above ... Id 6 per ton. 
 
 50 to 100 tons ld.8 
 
 Up to 50 tons 2d. 
 
 On the STATES RAILWAY the charge is reduced to Id. 2 
 per ton if 20,000 tons per year are tipped. 
 
 For counting general goods Per package, Od.2, with 
 a minimum of Id. 2. 
 
 The HOLLAND RAILWAY COMPANY make no charge for 
 counting ordinary goods, but for truck loads they charge 
 id. 2 per 10 packages, with a minimum of Is. per truck load. 
 
 For stamping duplicate freight note Id. 2 each. 
 
 The STATES, CENTRAL AND HOLLAND RAILWAYS make 
 
 no charge. 
 
 For delivery of general goods 
 
 (a) Under ordinary circumstances Id. per cwt., 
 with a minimum charge per consignment of 
 6<L 
 
 P 
 
XV111 
 
 (i) Under unusual circumstances, such as closed 
 water, snow in street, etc., 2d. per cwt., with 
 a minimum per consignment of Is. 
 For collection 
 
 (a) Under ordinary circumstances Id. per cwt., 
 with a minimum charge per consignment of 
 lOd. 
 
 (1) Under unusual circumstances 2d. per cwt., with 
 a minimum charge per consignment of Is. 8d. 
 The HOLLAND RAILWAY COMPANY make charges for 
 collection and delivery varying according to the Station. 
 
 The DUTCH RHENISH RAILWAY COMPANY raise the 
 charge only under unusual circumstances. 
 
 For advising the consignee of the arrival of his goods 
 a charge of Id. is made in all cases, except 
 
 (a) In the case of goods to be called for ; 
 
 (5) If consignee signs an agreement releasing 
 the Company, not only from advising arrival, but also 
 from all responsibility for detention of goods arising 
 from notification of arrival not having been made. 
 
 The HOLLAND RAILWAY COMPANY charge Od.6 if 
 the advice is sent by post. 
 
 LABELLING. All goods in consignments of less 
 than 5 tons must be labelled or marked with the 
 name of the receiving Station. If the goods are 
 tendered without this having been done, a charge for 
 labelling of Od.6 per package, with a minimum of 2d.4 
 is made by the Company. The HOLLAND RAILWAY 
 COMPANY do not show any such charge in their rate 
 book. 
 
XIX 
 
 COMMISSION FOR COLLECTING PAID-ONS. A. com- 
 mission of 1^ with a minimum of Id. for ordinary paid- 
 ons, and J, for amounts paid for duty, &c., and for 
 all costs incurred in connection with the last-named, 
 is charged. 
 
 WAREHOUSE KENT. All goods other than truck 
 loads which are left till called for, are subject to the 
 following charges if they are not taken away within 24 
 hours after receipt of advice of arrival : 
 
 -T. , , Dutch 
 Dutch Qf f 
 
 Rhenish Holland. 
 
 n , and 
 per2cwt. 
 
 (a.) If warehoused in the 
 
 sheds per day ... ld.2 Od.4 ld.2 
 
 With a minimum of ...... 2d.4 2d. 4d. 
 
 (b.) If left in the Company's 
 
 yard per day ...... Od.6 Od.2 Od.6 
 
 With a minimum of .. 2d.4 2d. 4d. 
 
 DEMURRAGE. If trucks are not unloaded within 
 eight hours after receipt of the notice of arrival a 
 charge is made of 2d.4 per hour and truck, with a 
 minimum of I/-; or the Company may unload the goods 
 at the owner's expense, and warehouse them, charging 
 rent. 
 
 The same amount of demurrage is charged if the 
 trucks, which are to be loaded by consignors them- 
 selves, are not ready within the appointed time. If 
 the consignor receives notice that the trucks are at his 
 disposal in the morning, the loading must be effected 
 on the same day ; if notice is given in the afternoon, 
 the loading must be over before 2 p.m. on the day 
 following. 
 
XX 
 
 "WEIGHING. On the DUTCH RHENISH RAILWAY a 
 charge of Od.6 per 2 cwt., with a minimum of ld.2 for 
 each item included in the freight-note, is made for 
 weighing. On the DUTCH STATES and CENTRAL RAIL- 
 WAYS the charge is Od.2 per cwt., with a minimum of 
 4d. per consignment, and on the HOLLAND RAILWAYS 
 Od.8 per 2 cwt. with a minimum of 4d. 
 
 (a.) If the goods are weighed at the request of the 
 consignor or consignee. 
 
 (b.) If the weight is not given in the freight cote, 
 but has to be filled in by the Company. 
 
 (c) If the Company load the goods on behalf o 
 consignor. 
 
 If the goods are weighed in full truck loads, the charge 
 on the DUTCH RHENISH RAILWAY is 3d. per ton on the net 
 weight; on the DUTCH STATES, CENTRAL AND HOLLAND, 
 2s. If each article is weighed separately the charge is 
 Od.5 per 2 cwt. 
 
 TIME ALLOWED BY LAW FOR TRANSPORT. The time occupied 
 by the conveyance of goods, carriages, <fec., may not exceed the 
 following maxima, which are in force on all the Dutch Railways, 
 and also on all the Railways forming part of the German 
 Union : 
 
 (a) Express Goods 
 
 1. Time for forwarding ... ... 24 hours. 
 
 2. Time for conveyance for each 186 
 
 miles or part thereof ... ... ... 24 
 
 (b) General Goods 
 
 1. Time for forwarding ... ... 48 
 
 2. Time for conveyance 
 
 (a) For distances up to 62 miles 24 
 
XXI 
 
 (i) For each 124 miles, or part 
 
 thereof, above 62 miles 24 hours. 
 
 (c) Horses, cattle, or other large animals 
 (a) If carried by Passenger Train 
 
 1. Time for forwarding ,. ... 24 
 
 2. Time for conveyance for each 186 
 
 miles or part thereof ... 24 
 
 (3) If carried by Goods Train 
 
 1. Time for forwarding ... ... 48 
 
 2. Time for conveyance for each 186 
 
 miles or part thereof ... ... ... 48 
 
 The time allowed for forwarding may only be reckoned 
 once, irrespective of the number of railways over which the 
 goods have to pass. On occasions of pressure of traffic caused 
 by fairs, closed water, &c., these limits may be extended by the 
 Minister of Railways. The time allowed for transport commences 
 at the midnight following the stamping of the freight note, and it 
 is not exceeded if the goods are delivered to consignee before the 
 prescribed time has expired, or, in the event of the goods not 
 having to be delivered, if notice is given in writing to consignee 
 of their arrival before the expiration of the prescribed time. 
 
 AMOUNT TO BE PAID BY THE COMPANY IN CASE THE TIME 
 
 ALLOWED BY LAW IS EXCEEDED, AND NO VALUE IS INSURED. 
 
 (0) For General Goods, if the delay amount to more than 
 24 hours ; or in the case of horses and other animals to more 
 than 48 hours : up to 72 hours, J of the freight ; up to 8 days 
 of the freight ; beyond 8 days, J of the freight. 
 
 (b) For Express Goods : beyond 1 2, and up to 24 hours, 
 J of the freight ; up to 3 days, of the freight ; beyond 3 days, 
 J of the freight. 
 
XX11 
 
 (c) For Parcels: beyond 6, and up to 12 hours, of the 
 freight ; up to 24 hours, J of the freight ; beyond 24 hours, -i of 
 the freight. 
 
 INSURANCE. A premium is charged for insurance if the 
 declared value of the goods, cattle, &c., exceed that allowed by 
 Article 33 of General Regulations, as compensation in case of 
 damage or loss. 
 
 The value allowed is 25 for a horse, 10 10s. for a fat 
 ox, 7 10s. per head for other cattle, 1 for a calf, 3 for a fat 
 pig, 1 5s. for a lean pig, 13s. 4d. for a sheep or goat, 7s. 8d. for 
 a dog, and 1 10s. per cwt. for other animals. If the value 
 exceeds these sums, and the consignor wishes to insure such 
 value being paid to him in case of damage, the premium is 1 
 per 1,000 of the sum insured for every 93 miles with a minimum 
 of 4d. 
 
 The maximum value allowed for carriages and carts, in- 
 cluding the articles placed in them, is 42. If the value exceeds 
 that sum the premium payable is the same as for animals, with 
 a minim am of 3d. 
 
 The value allowed for goods is assumed by law not to exceed 
 2 10s. per cwt. (30 fl. per 50 kilos). In case of whole or partial 
 loss, the commercial value of the goods which has to be proved 
 is taken as a basis. In the absence of data for arriving at the 
 commercial value, the value which similar goods would have at 
 the time and place of delivery is taken as the standard, deduct- 
 ing the amount of duty and other costs not paid owing to loss. 
 If the goods are insured, the premium payable is one-tenth per 
 1,000 of the value declared, for each 93 miles (parts of that 
 distance reckoned as 93 miles), with a minimum of 2d. 
 
 In case of wilful misconduct on the part of the Company or 
 their servants, the liability is not limited to the normal or 
 declared value. 
 
XXlll 
 
 To recover from the Railway Company the full amount of 
 damage sustained, if delivery is not effected within the time 
 allowed by law, the following premiums have to be paid : 
 
 For horses and other animals 0*2d. per 9 miles and .8. 6s. 8d., 
 parts of this distance and amount reckoned as 9 miles and 
 ,8. 6s. 8d., with a minimum of 3d. j 
 
 For carriages, carts, &c., 0'4d. per 9 miles and 8. 6s. 8d., 
 with a minimum of 3d. ; 
 
 In respect of goods for the first 94 miles, 1 per 1,000 of the 
 sum declared ; for the following 140 miles, not more than J per 
 1,000; for each succeeding 234 miles, not more than J per 1,000, 
 with a minimum of 2d., parts of 94, 140, and 234, reckoned as 
 94, 140, and 234. This premium is charged per each lOfl. 
 (16s. 8d.) of the declared value. 
 
 ON the STATES, CENTRAL and HOLLAND RAILWAYS bulky 
 goods, consisting of such goods as come in the classification 
 under special tariff No. 1, or are enumerated in the rate book, 
 are charged double the fast goods or piece goods rates, as the 
 case may be, unless it is more advantageous to pay as for 5 tons 
 at class A rate. 
 
 Grain, vegetables, meal, seed, and the like, which are classi- 
 fied under special tariff No. 2, are carried in box or covered 
 trucks at the rates of class B. 
 
 On the DUTCH RHENISH RAILWAY bulky goods (i.e., goods 
 weighing less than 340 Ibs. per cubic yard) and goods of un- 
 usual weight, the size of which does not admit of their being 
 passed through the door of an ordinary covered truck (5 ft. 3 in. 
 by 5 ft ), will not be carried in consignments of less than one 
 ton, unless the freight for this weight, with a minimum of 4s. 2d. 
 is paid, provided the conveyance can take place without an 
 extra truck being necessary. Articles which prevent space 
 
XXIV 
 
 being occupied by other goods are charged for at the rate of 
 340 Ibs. per cubic yard occupied. 
 
 For articles totally unsuitable for loading with others, 
 the freight for at least 5 -tons must be paid for each truck 
 used. 
 
 If a single consignment of bulky goods occupies less than 
 35 cubic feet, double freight is charged for the actual weight. 
 An ordinary covered wagon is assumed to be capable of 
 containing goods weighing at least four tons ; the freight, 
 therefore, for this weight must be charged for each wagon 
 used. 
 
 CATTLE RATES. The rates for through cattle traffic from a 
 Station of one Railway to a Station of another Railway in 
 Holland, are, if carried by Goods Train, as follows . 
 
 (a) For large cattle (oxen, cows, large calves, 
 heifers, horses, donkeys, and foals) fl. 0*12 per square 
 metre truck room per 10 kilometres (2|-d. 6*21 miles 
 with fl. 5 (8s. 4d.) terminals for all trucks of all 
 sizes. 
 
 The size of the trucks being from 12 to 18 square 
 metres (about 14 J to 21 J square yards). 
 
 For a truck of 15 square metres (about 18 square 
 yards) for a distance of 108 kilometres (G7 miles) the 
 charge would be 
 
 Mileage rate ... fl. 19-44 32s. 5d. 
 
 Terminals... ... fl. 5 8s. 4d. 
 
 Disinfecting ... fl. O'GO Is. Od. 
 
 fl. 25-04 41s. 9d. 
 
 (J) For small cattle (pigs, small calves, sheep, 
 goats, &c.) the rates are ;- 
 
XXV 
 
 Fl. 0-09 (Id. 8.) per square metre per 10 kilo- 
 metres if carried in trucks with one floor. 
 
 Fl. 0-15 (3d.) per square metre per 10 kilometres 
 if carried in trucks with two floor stages, with fl. 5 
 (8. 4d.) terminals in every case. 
 
 If carried by passenger trains the above rates are infcreased 
 by one-third. 
 
 In addition to the rates a charge of fl. 0-60 (Is.) per truck 
 is made for disinfecting the wagon. 
 
 There are no rates per head for through traffic between the 
 various railways of Holland, except between the DUTCH 
 RHENISH and DUTCH CENTRAL RAILWAYS. If, for instance, a cow 
 is carried from a Station on the STATES RAILWAY to a Station on 
 the DUTCH RHENISH RAILWAY, the charge would be as for a full 
 truck, unless it would be cheaper to charge the consignment 
 from Railway to Railway at the local rates. In the case of 
 traffic between the DUTCH RHENISH and CENTRAL RAILWAYS, for 
 which traffic rates per head exist, the following rates would be 
 charged (by goods train only) : 
 
 With a minimum of 
 
 fl. 4 (6s. 8d.) 
 per consignment. 
 From the Hague 
 
 to Amersfoort, 83 kilo- 
 metres (51 miles) per cow fl. 1-29 (2s. 2d.) 
 
 From the Hague 
 to Amersfoort, 83 kilo- 
 metres (51 miles) per sheep fl. 0'33 (6Jd.) 
 
 From the Hague 
 to Amersfoort, 83 kilo- 
 metres (51 miles) per horse fl 1-90 (3s. 2d.) 
 
 From Rotterdam 
 to Zwolle, 142 kilo- 
 metres (88 miles) per cow 3-14 (5s, 3d.) 
 
XXVI 
 
 With a minimum of 
 
 fl. 4 (6s. 8d.) 
 per consignment. 
 From Rotterdam 
 
 to Zwolle, 142 kilo- 
 metres (88 miles) per sheep 0*80 (Is. 4d.) 
 
 From Eotterdam 
 to Zwolle, 142 kilo- 
 metres (88 miles) per horse 4-15 (6s. lid.) 
 
 For local traffic on the DUTCH STATES RAILWAYS, rates 
 per head and per truck load exist. JSuch rates per head are 
 only available per goods trains ; full truck loads are carried by 
 passenger train. 
 
 I. BY GOODS TRAINS. 
 
 (a) For full truck loads 1 cent, per square metre 
 per kilometre, with terminals fl. 5 (8s. 4d.) (irrespective 
 of size of truck). No difference is made for large or 
 small cattle. 
 
 The charge for a truck of 15 square metres for 108 
 kilometres (67 miles) would be 
 
 Mileage rate ... fl. 16-20 27s. Od. 
 
 Terminals fl. 5 8s. 4d. 
 
 Disinfecting ... fl. 0*60 Is. Od. 
 
 fl. 21-80 36s. 4d. 
 
 The rate per head for 124 kilometres (77 miles) 
 
 Per cow fl. 2-88 (4s. 9Jd.) 
 
 sheep 0-72 (Is. 2d.) 
 
 horse 3-70 (6s. 2d.) 
 
 "With a minimum of 
 
 Up to 100 kilometres fl. 2-0 (3s, 4d.) 
 
 200 30 (os. Od.) 
 
 Above200 4-0 (6s. 8d.) 
 
XXV11 
 
 BELGIUM. 
 
 THE basis on which the rates are fixed in Belgium is : 
 
 (a) A fixed charge of one franc per ton, irrespective of 
 
 distance, which is practically equivalent to a structural 
 terminal charge for the use of stations and for clerkage. 
 
 (b) A mileage scale, graduated according to distance. 
 
 On all lines worked by the State, whether constructed by 
 it, purchased by, or the subject of a concession, the local tariff 
 of the State Railways is applied generally. Before 1884, the 
 Grand Central Beige had a distinct classification and a tariff of 
 rates on the whole higher than that of the State Railways, but 
 the rates charged on the independent lines are now based on 
 those adopted by the State Railways, and sanctioned by the 
 Minister. 
 
 The rates for traffic with France are framed by assimilating 
 the Belgian to the French scale, based on the shortest route ; 
 for certain important kinds of traffic there are exceptional 
 tariffs, by which each Company make a reduction from their 
 ordinary rates. 
 
 In addition to the weight and distance, the value, and bulk 
 of the goods are taken into consideration, in the classification, if 
 it can be said that any classification exists. 
 
 The tariff of the State Railways contains a classification 
 which divides the Petite Vitesse goods into four classes. Besides 
 thebe, twenty special tariffs have been adopted. 
 
XXVlll 
 
 M S ' 
 
 &^S 
 
 FH^S 
 
 feOo aj 
 
 C rk H P^ 
 
 -8 
 
 l? s 
 
 BSg 
 
 ^P 
 
 Sag 
 
 M 
 
 S 
 
 ^H 
 OH 
 
 go 
 2 j 
 
 ^P 
 
 o- 
 pq 
 
 * W a 
 
 6c r l 
 
 a 
 *g 
 
 .H 
 
 *"J 03 
 
 l 
 
 
 o o o o 
 d o* o o" 
 
 
 
 rj OQ 
 
 ill! 
 
 <U rj OQ 
 
 w 
 
 5 
 o o* 
 
 3 
 d d 
 
 | 
 
 g Kfff 
 
 PP 
 
 ~J 
 
 5 
 
 a o' 
 PP 
 
 M 
 
XXIX 
 
 00 
 
 Q 
 
 ! 
 
 p., 
 
 !> r* 
 
 
 
 a 
 
 o 
 
 ^ 
 
 Horses and Cattl 
 by Goods Train 
 
 pjg 
 
 jart 
 
 "ntB.1,1 JaSuas 
 
 II 
 
 .S >> - C 
 
 -2 a i ' 
 
 > 
 
 8 
 
 Trai 
 
 G 
 
 Furniture 
 Vans per 
 Vehicle. 
 
 jo 
 
 >[0iu jj Jo a^BTaa^Q jad a^n 
 siaat[A\ 
 
 ,8 
 
 O 
 
 1 
 
 umanutj\[ 
 
 
 (8) 
 
 t^; 001 
 
 (I) 
 
 OOOO 
 
 oocococooicoo 
 
 oooo 
 
 ^j cc co ca i-j P-I 
 
 ddo'dddd 
 
 OQOOOCOO'*"'* 
 
 OOOOOOO 
 
 QQ C<j ^H O O O O 0_ 
 
 a d d o" d d d d 
 
 CO CO > ' CO I 1 -H r-l 
 
 CO l^ <M U5 .0 
 
 i-H i-H r-t C^ CO 
 
XXX 
 
 B TARIFF FOR INTERCHANGED INLAND TRAFFIC. 
 
 The General Tariff comprises two Standard Scales, viz. : 
 Scale A and Scale C. Scale A is the same as the Local Tariff 
 except as regards the 4th Class rates for distances from 1 to 4 
 kilometres, for which a minimum of 5 kilometres per ton has 
 been fixed. 
 
 Scale C differs from Scale A only by an increase of Franc 
 0.10 per 100 kilogrammes on the Tariff Rates Nos. 1 and 2, 
 and Franc 0.10 per 1000 kilogrammes on the rates of Tariff No. 
 3 (*) (except in the case of Railway Carriages and Trucks on 
 wheels), which latter charge is credited to the Western of 
 Flanders Railway Company. 
 
 (^The rates for Furniture Vans belonging to private parties 
 represent the charge for 6,000 kilog. at 1st Class. In the case of 
 Furniture Vans provided by the Railway Company, the above mentioned 
 prices are increased by 17 per cent. 
 
XXXI 
 
 The following tables show, in English money, the terminal 
 charge per ton, and the mileage rate per ton per mile : 
 
 TERMINALS. 
 
 IST CLASS. 
 
 2ND CLASS. 
 
 3RD CLASS. 
 
 4ra CLASS. 
 
 Per 
 
 1.00 
 kilos. 
 
 Per 
 ton. 
 
 Per 
 
 1000 
 kilos. 
 
 Per 
 ten. 
 
 Per 
 loOd 
 
 kilos. 
 
 Per 
 ton. 
 
 Per 
 
 1000 
 kilos. 
 
 Per 
 ton. 
 
 Station terminals up to 
 25 kilom. (15 miles) 
 
 fc.1.0 
 
 10d. 
 
 fc. 1.0 
 
 lOd. 
 
 fc.1.0 
 
 lOd. 
 
 fc. .50 
 
 5d. 
 
 Station terminals above 
 25 kilom. (15 miles) 
 
 fc.1.0 
 
 10d. 
 
 fo.1.0 
 
 10d. 
 
 fc.1.0 
 
 lOd. 
 
 fc. 1 
 
 lOd. 
 
 Loading and Unloading 
 charged in addition 
 
 fc.1.0 
 
 10d. 
 
 fc.1.0 
 
 lOd. 
 
 fc.1.0 
 
 lOd. 
 
 0.1.0 
 
 lOd. 
 
 BASIS OF BATES. 
 
 IST CLASS. 
 
 2ND CLASS 
 
 SRD CLASS. 
 
 4iH CLASS. 
 
 General 
 goods under 
 5 tons, mini- 
 mum charge 
 as for 8 cwt. 
 
 5 -ton lots. 
 
 5-ton lots. 
 
 10-ton lots. 
 
 PerlQOC 
 kilos, 
 per 
 kilom. 
 
 Per ton 
 per 
 mile. 
 
 Per 1COO 
 kilos, 
 per 
 kilom. 
 
 Per ton 
 per 
 mile. 
 
 Per 10 
 kilos, 
 per 
 kilom. 
 
 Per ton 
 per 
 mile. 
 
 Per 1000 
 kilos. 
 
 kilom. 
 
 Per ton 
 per 
 mile. 
 
 miles. 
 Up to 25 kiloms. (15) 
 
 cts. 
 
 10 
 
 d. 
 1-56 
 
 cts. 
 8 
 
 d. 
 
 1-25 
 
 cts. 
 6 
 
 d. 
 0-94 
 
 cts. 
 
 6 
 
 d. 
 0-94 
 
 75 (46) 
 
 10 
 
 1-56 
 
 8 
 
 1-25 
 
 6 
 
 0-94 
 
 4 
 
 0-62 
 
 100 (62) 
 
 8 
 
 1.25 
 
 4 
 
 0-62 
 
 3 
 
 0-47 
 
 2 
 
 0-31 
 
 125 (77) 
 
 8 
 
 1-25 
 
 4 
 
 0-62 
 
 2 
 
 0-31 
 
 1 
 
 O'lo 
 
 150 (93) 
 
 8 
 
 1-25 
 
 2 
 
 0-31 
 
 1 
 
 0-15 
 
 1 
 
 0-15 
 
 200 (124) 
 
 6 
 
 0-94 
 
 2 
 
 0-31 
 
 1 
 
 0-15 
 
 1 
 
 0-15 
 
 350 (217) 
 
 4 
 
 0-62 
 
 2 
 
 0-31 
 
 1 
 
 0-15 
 
 1 
 
 0-15 
 
 Over^350 
 
 4 
 
 0-62 
 
 2 
 
 0-31 
 
 1 
 
 0.15 
 
 2 
 
 0.31 
 
XXX11 
 
 The foregoing Tariffs do not include the following various 
 additional charges which are authorised and are, in fact, charged 
 over and above the ordinary tariff rates : 
 
 
 Tariff 
 No.l. 
 
 Tariff 
 No. 2. 
 
 Tnriff 
 No. 3. 
 
 Tariff- 
 No. 4. 
 
 Tariff 
 No. 6. 
 
 Tariff- 
 No. 6 
 
 Booking per consignment, compulsory 
 Collection from domicile,perl 00 kilos. (1) 
 
 Collection from domicile for Bullion per 
 l,000frarcs (40), with a minimun 
 of 30 cents. (3d.) per consignment 
 
 Collection of Furniture Vans provided 
 
 Frs. C. 
 0.30 
 
 Frs. C. 
 0.30 
 
 Frs. 0. 
 0.20 
 O.SO 
 
 10.00 
 
 Frs. C 
 0.15 
 
 Frs. C 
 0.20 
 
 Frs. C. 
 0.20 
 
 Delivery to domicile per 10 kilos. 
 a jrj. Brussels ( \ \ 
 
 
 
 05 
 
 
 
 
 b , in other localities ,, (1) 
 
 
 
 03 
 
 
 
 
 Delivery to domicile after 9 p.m. of 
 Express parcels, per consignment .. 
 
 0.25 
 
 
 
 
 
 
 Delivery to domicile by Express any 
 distance of prepaid parcels not ex- 
 ceeding 5 kilos. (11 Ibs.) any distance 
 within 5 kilometres (3.10 miles) 
 beyond the ordinary radius of delivery 
 
 1.00 
 
 
 
 
 
 
 Delivery to domicile of Furniture Vans 
 
 
 
 10.00 
 
 
 
 
 {Maximum charge per 100 
 *GoodTin~easks(2),. 
 b Goods in sacks, cases 
 or baskets (2) 
 
 Loading and Unloading, per 100 kilos. (1) 
 Numbering of packages, per 100 kilos.. 
 
 Postage for the advice of goods con- 
 signed to wait at the Station 
 
 0.50 
 0.25 
 
 0.50 
 0.25 
 
 0.50 
 
 0.25 
 0.10 
 0.01 
 
 0.10 
 
 ... 
 
 ... 
 
 ... 
 
 (1). The Rates for these services do not apply to packages weighing more than 
 00 kilos. (10 cwt.) each. 
 
 (2). These Charges must be paid direct to the Carman. 
 
xxxiii 
 
 TARIFF No. 1 applies to parcels carried by Passenger Trains, 
 and includes all charges for terminal services and delivery to 
 domicile, but not collection. 
 
 Parcels up to 5 kilos. (11 Ibs.), the carriage of which is 
 prepaid, are carried at an uniform rate of franc 0.80 (8d.), 
 irrespective of distance, but if the carriage is not prepaid, they 
 are charged as for 10 kilos. (22 Ibs.) 
 
 Parcels 6 to 10 kilos., whether the carriage is or is not 
 prepaid, are charged as for 10 kilos. 
 
 Parcels above 10 kilos. (22 Ibs) and up to 20 kilos., are 
 charged as 20 kilos. ; above 20 kilos, fractions of 10 kilos, are 
 charged as 10 kilos. 
 
 Parcels of no declared value sent by Passenger Train 
 must in all cases be prepaid. 
 
 In towns where there are cartage arrangements, delivery 
 to " domicile " takes place immediately after arrival of the 
 trains up to 9.0 p.m. 
 
 Parcels to be delivered between 9.0 p.m. and 7.0 a.m. are 
 charged franc 0.25 extra each parcel. 
 
 TARIFF No. 2 applies to packages up to 200 kilos. (4 cwt.) 
 in weight to be forwarded by Goods Train, unless a written 
 order is given for them to be sent by Passenger Train, under 
 conditions of Tariff No. 1, or by Goods Train, under Tariff No. 3. 
 Prepaid parcels not exceeding 5 kilos. (11 Ibs.) are carried 
 at an uniform rate of frane 0.50 (5d.) each parcel, irrespective of 
 distance. 
 
 Above 5 kilos, in weight the carriage is charged on the 
 weight of the consignment consisting of one or more packages, 
 any fraction of 10 kilos, being charged as for 10 kilo.-*. 
 
 Prepaid parcels of 5 kilos, and less, are delivered to " domi- 
 cile " on the morning following the day of forwarding, provided 
 they be handed to the Railway at least one hour before the depar- 
 ture of the train. Other packages and goods sent under this tariff 
 
XXXIV 
 
 are generally forwarded on the evening of the day they have been 
 accepted. They are delivered to "domicile, "in towns where there 
 are cartage arrangement?, within six hours of the arrival (night 
 hours excluded), and provided this he not prevented by glut of 
 traffic. 
 
 The rates of this Tariff include the loading charges, book- 
 ing, and delivery to " domicile," but not collection. 
 
 TARIFF No. 3 applies to goods traffic, and is divided into 
 four classes according to the nature and value of the goods as 
 well as to other considerations. 
 
 All goods not specified are charged at the first-class rate 
 (the highest), with a minimum of 400 kilos. (8 cwt.), as also are 
 all consignments of goods, irrespective of class, the weight of 
 which is less than 5 tons, unless it is more advantageous to 
 pay as for 5 tons at the rate fixed for consignments of that 
 weight. The exceptions are : Empty vehicles used at fairs 
 the minimum charge for which is as for 4,000 kilos. (4 tons) each. 
 Flax and Hemp (raw), 4,000 kilos. (4 tons) per truck. 
 
 The minimum charges for the 2nd and 3rd classes are as 
 for 5,000 kilos. (5 tons), and for the 4th class 10,000 kilos. (10 
 tons). Consignments under 10 tons are charged 3rd class rat, 
 unless they pay as for 10 tons 4th class. The exceptions are 
 for mining timber, which is charged at 4th Class rate, with 
 a minimum of 5,000 kilos. (5 tons). Above the minimum 
 weights, fractions of 10 kilos. (22 Ibs.) are charged as 10 kilos. 
 Goods sent in bulk are accepted only in lots of 5,000 kilos. (5 tons) 
 for the 1st, 2nd and 3rd Classes, and in lots of 10,000 kilos 
 (10 tons) for the 4th Class. 
 
 If a consignment, carried under the conditions of Tariff 
 No. 3, consists of goods of different classes, the highest of such 
 classes is charged for the whole consignment. 
 
 Goods of the 4th class are carried in open trucks only ; 
 but if, at the request of the consignors, they are carried in 
 
XXXV 
 
 box or covered trucks, they are charged at 3rd class rate 
 unless the consignor himself supplies the tarpaulin, or pays for 
 hire thereof at the rate of 2 frs. (Is. 7d.) each. Tarpaulins 
 provided by Consignors are returned free of charge, except 5d. 
 for booking fee. 
 
 In the case of a sender requiring three trucks, he must give 
 two full days' notice to the railway of such requirement. 
 
 Provided forwarding be not prevented by a glut of traffic, 
 consignments forwarded under this tariff are due at the arriving 
 station three full days after acceptance. Another full day is 
 required if the goods have to be carted to " domicile." 
 
 Bulky goods weighing less than 200 kilos, per cubic metre, 
 are charged 50 per cent, in addition to the ordinary rate, with a 
 minimum of 200 kilos, per cubic metre, or half the tonnage 
 capacity of the truck used ; the exceptions to the rule being in 
 favour of 
 
 1. Flax and hemp, raw, the maximum charge for which 
 is 4 tons for a truck of 10 tons capacity. 
 
 2. Eggs, wool (except combed or carded), sheep skins, 
 cotton and wool waste, oakum, flax and waste thereof 
 pressed in bales or bundles, and live plants, which are 
 charged at actual weights. 
 
 Goods sent in full truck loads may be loaded and unloaded 
 at option by Senders and Consignees respectively, but if loaded 
 by Senders they must be unloaded and carted by Consignees. 
 Consignments under 5 tons and goods insured against damage 
 or loss must in all cases be loaded and unloaded by the Railway. 
 
 The charge made by the Eailway for loading and unloading 
 is lOd. per ton of 1,000 kilos. If cranes or other loading 
 appliances belonging to the Railway are used by Consignor or 
 Consignee, a charge of 3d. per ton is made for their use. 
 
 The Railways on demand will verify the weight of the 
 consignment as far as the appliances of the station will admit, 
 a charge of franc 0.05 per 100 kilos, being made if the 
 
XXX VI 
 
 difference in the declared weight does not exceed 2 per cent, 
 and the original charges are maintained. 
 
 TARIFF No. 4 applies to the conveyance of Bullion, Bonds, 
 Bank-notes, Title Deeds, &c., a false declaration of which, either 
 in regard to weight, value, or nature of contents, is considered a 
 fraud. 
 
 Carriage is charged upon 1,000 francs (40) in value, any 
 fraction of ^hich sum is charged as for 1,000 francs, but if the 
 charge so calculated is lower than it would be under the conditions 
 of Tariff No. 2 the latter will be charged. 
 
 Additional services, viz., loading, unloading, booking and 
 delivery to " domicile," are included in the Tariff Rates. 
 
 TARIFF No. 5 applies to carriages forwarded by Passenger 
 Train ; but at the option of the Sender, Carriages, as also Vans, 
 Carts, Omnibuses, Tramway Cars, Engines and Threshing 
 Machines, can be sent by Goods Train at the 2nd Class rate of 
 Tariff No. 3, the minimum weight being : 
 
 For 1 Vehicle in pieces or on wheels on one Truck 2,500 kilos 
 
 2 Vehicles ,, 4,000 
 
 3 6,500 
 
 4 7,000 
 
 Vans, Carts, Omnibuses, &c., can also be charged at the 1st 
 Class rate of Tariff No. 3, with 50 per cent, added as for bulky 
 goods, if the latter is more advantageous to the Sender. 
 
 Loading and unloading are included in the Passenger Train 
 rate, but are performed at Sender's risk. In the case of Goods 
 Train, those services are performed at the risk and expense of 
 the Owner. 
 
 Carriages conveyed in covered Trucks specially provided for 
 such traffic are charged 25 per cent, over and above the Ordinary 
 rates, both by Passenger and Goods Train. 
 
 TARIFF No. 6 applies to HORSES, CATTLE AND DOGS. 
 Cattle is carried exclusively by Goods Train; Horses, Colts, 
 Mules and Ponies are admitted for conveyance by Pas- 
 
XXXV11 
 
 senger Trains (Express Trains excepted), only in the two 
 
 following cases, viz. : 
 
 a. When the distance of the journey is 75 kilo- 
 metres (46 miles) or more. 
 
 b. When the departure and arrival stations form 
 the extreme points between which the Train runs 
 
 The minimum charge for Horses, Colts, Mules or Ponies 
 by Passenger Train is as for three heads. 
 
 The Goods Train rates are divided into three categories, 
 
 viz. : 
 
 IST CATEGORY. One Horse or one Mule, one or two 
 
 Colts, Ponies, Oxen, Cows or Donkeys, one to five Pigs 
 or Calves, one to ten Sheep, one to thirty Sucking Pigs. 
 2ND CATEGORY. Two Horses or two Mules, three 
 or four Colts, Ponies, Oxen, Cows or Donkeys, six to ten 
 Pigs or Calves, eleven to twenty Sheep, thirty-one to 
 sixty Sucking Pigs. 
 
 SRD CATEGORY. Three Horses or three Mules 
 
 five or six Colts or Ponies, a Truck load* of small 
 
 or large Cattle, sixty-one to one hundred Sucking Pigs. 
 
 Colts or Ponies exceeding 1 metre 30 (15 hands) in height 
 
 are considered and charged as Horses. 
 
 Senders may load as many head of Cattle into the Trucks as 
 they please, but the Eailways are exonerated from all responsi- 
 bility for injuries, accidents on the road and loss of Cattle. 
 
 The rates of Tariff N o. 6, 3rd Category, are increased by 
 25 per cent, if a larger number of Cattle is loaded into a Truck* 
 than the quantity shown hereunder. 
 
 Oxen. 
 
 Cows. 
 
 Donkeys. 
 
 Heifers. 
 
 Pigs or 
 Calves. 
 
 Sheep or 
 Goats. 
 
 Sucking 
 Pigs. 
 
 Number. 
 
 Number, 
 
 Number. 
 
 Number. 
 
 Number. 
 
 Number. 
 
 Number. 
 
 8 
 
 8 
 
 10 
 
 10 
 
 20 
 
 SO 
 
 100 
 
 * The bottom floor of a Belgian Cattle Truck generally measures 
 14 square metres, equal to 16*75 square yards. 
 
XXXV111 
 
 The loading and unloading of animals, whether carried 
 by Goods or Passenger Trains, is effected at the expense and 
 entire responsibility of Senders and Consignees respectively. 
 
 Horses and Cattle must be accompanied by a man in charge. 
 One man per consignment or per truck is conveyed free in 
 the horse box or cattle trucks, but if he travels in another 
 carriage, he pays the ordinary Passenger fare. 
 
 Dogs, irrespective of size, accompanying Passengers are 
 charged 3rd Class Passenger fare. 
 
 Small animals in cases, baskets or crates, are conveyed 
 by ordinary Passenger Trains on the conditions of Tariff No. 2. 
 
 The Company do not deliver to "domicile," and undertake 
 no responsibility whatever in respect of these consignments. 
 
 SPECIAL TARIFFS. 
 
 The following statement shows the bases of the special 
 tariffs : 
 
 SPECIAL TARIFF No. 1 For coal, coke, stones and earth sent 
 direct from pits for export. 
 
 1 to 84 kilometres, francs 2.20 per 1000 kilos, (minimum 
 charge). 
 
 85 to 187 kilometres, franc 0.026 extra per kilometre. 
 
 188 to 300 kilometres, rate of 4th Class, Standard Scale, 
 1867* 
 
 301 kilometres and over, franc 0.02 extra per kilometre. 
 
 SPECIAL TARIFF No. 2. For coal, coke, stones, earth, iron, 
 ore, paving stones, gravel sand in bulk and 10 ton lots, for 
 export provided the sending stations are situated at least 100 
 Kilometres (62 miles) from the Sea ports. 
 
 1 to 100 kilometres, francs 2.00 per 1000 kilos, (minimum 
 charge). 
 
 101 kilometres and over, franc 0.02 extra per kilometre. 
 
 * See Note on pp. xl and xli. 
 
XXXIX 
 
 SPECIAL TARIFF No . 3. For paving stones, gravel, common 
 bricks and lime in 10 ton lots or more for export. 
 
 1 to 30 kilometres, rate of 4th Class, General Standard Scale. 
 
 31 to 84 kilometres, francs 2.20 (uniform rato). 
 
 85 kilometres and over, rate of Special Tariff No. 1. 
 
 SPECIAL TARIFF No. 4. For general export gooas : 1st 
 Category in 5 ton lots., 2nd Category in 10 ton lots. 
 
 1st Category, average between rates of 1st and 2nd Class 
 of General Standard Scale. 
 
 2nd Category, rate of 2nd Class, General Standard Scale. 
 
 SPECIAL TARIFF No. 5. For certain export traffic, such as 
 beer in casks, metal refuse, &c. 
 
 Average between 2nd and 3rd Class rates, General Standard 
 
 Scale. 
 
 SPECIAL TARIFF No. 6. For castings, girders, zinc, &c., 
 
 for export. 
 
 Bate of 3rd Class, General Standard Scale. 
 
 SPECIAL TARIFF No. 7. For rough steel, grindstones, sheet 
 iron, chalk, &c., for export. 
 
 Eate of 4th Class, General Standard Scale. 
 
 SPECIAL TARIFF No. 8 (Import). Marble in blocks, Sulphate 
 of Soda. 
 
 Lots of 10,000 kilos. 4th Class Eate General Standard 
 Scale. 
 
 Iron Ore 10 tons, 4th Class Eate, Standard Scale, 1867.* 
 100 tons, 4th Class Eate (reduced by 75 cents.) 200 tons, 4th 
 Class Eate (reduced by 1 franc). 
 
 Zinc, lead ores, pyrites 10 tons, 4th Class Eate, Stan- 
 dard Scale, 1867.* 100 tons, 4th Class Eate, Standard Scale, 
 1867 (reduced by 50 cents.) 200 tons, 4th Class Rate, Standard 
 Scale, 1867 (reduced by 75 cents.) 
 
 SPECIAL TARIFF No. 9 is for import goods as per classification. 
 
 * See Note on pp. xl and xli. 
 
xl 
 
 1st Category Average between 1st and 2nd Class Rates. 
 2nd Category Average between 2nd and 3rd Class Rates 
 General Standard Scale. 
 
 SPECIAL TARIFF No. 10 All goods sent for Exhibition. 
 First Journey fall rate. Return Journey free. 
 
 SPECIAL TARIFF No. 1 1 For iron between certain specified 
 stations 
 
 1st Category, 4th Class Rate, General Standard Scale. 
 2nd Category, Terminal charge 1 franc. Mileage rate franc 
 0.03 per ton per kilometre. 
 
 SPECIAL TARIFF, No. 12. For iron ore between certain 
 specified stations, in consignments of 10 tons, terminal charge, 
 1 franc. Mileage rate franc 0.02 per kilom. per ton, or at 4th 
 Class rate, General Tariff, whichever is more advantageous. 
 
 For consignments of 100 tons, 4th Class rate, General 
 Standard Scale, reduced by 1 franc 25 centimes. 
 
 For consignments of 200 tons, 4th Class rate, General 
 Standard ScaJe, reduced by 1 franc 50 centimes : Minimum 
 charge being fr. 1.35 and 1.10 respectively. 
 
 SPECIAL TARIFF, No. 13. For iron ore and pyrites between 
 certain specified stations in consignments of 10 tons, 4th Class 
 rate, Standard Scale, 1867.* In consignments of 100 tons, 4th 
 Class rate, reduced by franc 0.50. In consignments of 200 tons, 
 4th Class rate, reduced by franc 0.75. 
 
 SPECIAL TARIFF, No. 14. For coal between certain speci- 
 fied stations, same basis as for Special Tariff No. 13. 
 
 SPECIAL TARIFF, No. 15. For coal from certain stations, 
 for shipment, uniform Rates without fixed basis. 
 
 SPKCIAL TARIFF, No. 16. For coal from certain mines in 
 10 ton lots, 4th Class rate, Standard Scale, 1867* 
 
 * The bases for 4th Class, General Standard Scale, 1867, are as follow: 
 1 to 25 kilometres, terminal charge franc 0.50, mileage rate franc 0.60 
 per kilometre. 
 
xli 
 
 SPECIAL TARIFF, No. 17. For goods from certain stations 
 in 5 ton lots, Terminal Charge, franc 0.50. Mileage Charge 
 franc 0.06 per kilometre per ton. 
 
 SPECIAL TARIFF, No. 18. For articles of all descriptions 
 sent from or to the pits of Bascoup, the same rate of the four 
 Classes of the General Tariff, calculated according to distances 
 fixed for Mariemont, with franc 0.20, added apply. 
 
 SPECIAL TARIFF, No. 19. For traffic passing to and from 
 a certain branch line, 4th Class rate, General Standard Scale, 
 reduced by franc 0.20. 
 
 SPECIAL TARIFF, No. 20. For the conveyance of Goods to 
 works connected with the railway by a siding, A. Carriage in 
 Trucks provided by the Railway. Rate for the four Classes, 
 franc 0.56 per ton. B. Carriage in Owners' Trucks. Rate for 
 the four Classes, franc 0.20 per ton. 
 
 SPECIAL CONTRACT TARIFFS, Nos. 22, 23 and 24, consist of 
 rates for import traffic from Belgian Ports to certain inland 
 stations. 
 
 The Special Tariffs for export and import traffic interchanged 
 between different Belgian Railways are the same as those charged 
 for local export and import traffic Nos. 1 to 16, 20 and 22, with 
 the following two exceptions : 
 
 (0) The rates of the Special Tariffs in which the Western 
 of Flanders Railway Company is concerned are 
 uniformly increased by the addition of franc O'lO, 
 which is specially credited to them, except in the 
 case of Special Tariff, No. 7, the rates of which 
 are not increased. 
 
 26 to 50 kilometres, terminal charge 1 franc, mileage rate franc 0.04 per kilo- 
 metre extra. 
 
 51 to 75 kilometres, terminal charge 1 franc, mileage rate franc 0.03 per kilo- 
 metre extra. 
 
 76 and over, terminal charge 1 franc, mileage rate franc 0.01 per kilometre 
 extra. 
 
xlii 
 
 (b) Whenever the Special Tariffs involve the application 
 of the 4th Class rates, the rates fixed for the 
 5th kilometre have been adopted (the same way 
 as in the case of the General Standard Scales) for 
 distances of from 1 to 4 kilometres. 
 
 LIABILITY. 
 
 The Belgian Bail way Administration undertake no responsi- 
 bility for a delay of six hours or less to horses and cattle, beyond 
 which their responsibility is limited to the amount of the carriage ; 
 provided that the delay does not arise from any accidents, 
 accumulation of traffic, or circumstances beyond the Companies' 
 control. For Goods Traffic they are not responsible for 
 
 Tariff No. 1. (Passenger Train), a delay of six 
 
 hours or less. 
 2. (Goods Train), a delay of one day 
 
 or less. 
 3. (Goods Train), a delay of two days 
 
 or less. 
 
 Their responsibility is limited to one-tenth of the carriage 
 for every day's delay beyond the fixed time of transit. After the 
 expiration of 15 days the goods are considered lost. If they are 
 subsequently found Consignee is entitled to take delivery on 
 returning to the Railway three-fourths of the indemnity paid to 
 him. Senders may insure their goods against delay by payment of 
 a premium of 50 centimes per 1,000 frs. (5d. per 40), on the 
 value upon which they wish to be indemnified in case of delay. 
 
 In case of loss of, or damage to goods carried by passenger 
 train on the conditions of Tariffs Nos. 1 and 2, the Railways 
 are responsible to the extent of 4 frs. per kilogramme (Is. 6d. 
 per 1 lb.), and in respect of goods carried by goods train at the 
 conditions of Tariff No. 3, 75 centimes per kilogramme (3|d. 
 
xliii 
 
 per 1 Ib.) The goods can, however, be insured for their actual 
 value, the premium for insurance against damage or loss being 50 
 centimes per 1,000 frs., the same as for insurance against delay. 
 
 On payment of the two premiums the goods may be insured 
 at ihe same time against delay, damage or loss, but the in- 
 demnity is in no case to exceed the actual loss sustained by the 
 owner through the delay, damage or loss. 
 
 The Railway Administration decline all liability for 
 
 damage : 
 
 (a) Unless it be stated at the time of delivery, or 
 
 within 24 hours of advice of arrival of goods to 
 order, or if the goods are refused by consignee. 
 
 (5) If the case or packing shows no outward trace 
 of breakage or wet. 
 
 They decline all liability for chafage, waste or leakage, or 
 for rust to iron, steel or zinc goods. 
 
 Live animals, perishables and provisions of all kinds, 
 chemical products, works of art (more especially pictures), 
 goods not packed or imperfectly packed, are only carried at 
 owner's risk without any guarantee whatsoever on the part of 
 the Railway. 
 
xliv 
 
 GERMANY. 
 
 THE Tariff of Rates for the conveyance of Goods Traffic in 
 
 Germany is divided as follows : 
 
 EILGUT. Goods carried by Passenger Train. 
 
 STUCKGUT. Goods carried in consignments of less quantities 
 
 than Wagon loads. 
 
 CLASS Al. General Goods in Wagon loads of 5 tons. 
 B. General Goods in Wagon loads of 10 tons. 
 SPECIAL TAHIFP A2. Goods in 5 ton lots included in Special 
 Classes!., II. and III. 
 
 SPECIAL TARIFF I. 
 
 Certain Goods specified in the Classifi- 
 cation in Wagon loads of 10 tons. 
 
 ii. 
 
 Hi. 
 
 The rates for conveyance are based on a mileage scale per 
 100 kilogrammes and per kilometre. 
 
 In addition to the tariff rates a fixed charge called " Ter- 
 minals" is also made per 100 kilogrammes. 
 
 For local traffic carried over the Prussian State Railways or 
 over the railways worked by the State, the following rates and 
 terminals are charged : 
 
xlv 
 
 TARIFF KATES. 
 
 For the Eastern and Western Districts of the State Railways. 
 
 Per 100 kilos and per kilometre in Mark Pfenning. 
 
 ElLGUT. 
 
 STUCK GUT 
 (or small consign- 
 4- "k r 1 i 
 
 "Wagon 
 Loads. 
 
 SPECIAL TARIFF. 
 
 cfc-o 
 
 p 
 
 
 ments by Goods 
 
 
 
 
 
 
 
 (Passenger Train.) 
 
 Train.). 
 
 Al 
 
 B 
 
 A2 
 
 I. 
 
 II. 
 
 III. 
 
 dedin 
 ST. II. 
 
 In 
 
 Mark Pfenning per 
 
 100 
 
 Kilos 
 
 per 
 
 Kilo 
 
 metr 
 
 e. 
 
 
 Double the Rates for Stiick- 
 
 
 
 
 
 
 
 
 
 gut or Piece Goods ... 
 
 1-1 
 
 0-67 
 
 0-60 
 
 0-50 
 
 0-45 
 
 0-35 
 
 *0-26 
 fO -22 
 
 0-30 
 
 
 In English money 
 
 per ton of 1000 
 
 Kilo 
 
 sper 
 
 mile. 
 
 
 d. 
 
 d. 
 
 d. d. 
 
 d. 
 
 d. 
 
 d. 
 
 d. 
 
 d. 
 
 4-246 
 
 2-123 
 
 1-293 1*162 
 
 966 
 
 869 
 
 676 
 
 *-02 
 
 579 
 
 Note.*Up to 100 Kilo 
 
 metres. 
 
 
 
 
 
 
 f-425 
 
 
 tlOl Kilometres and 
 
 more. 
 
 
 
 
 
 
 
 
 The terminals charged in the Districts of the Eastern States Railway are as 
 under : 
 
 Per 100 kilos in Mark Pfenning. 
 
 
 
 . 
 
 "Wagon 
 
 Special 
 
 Exceptional 
 
 
 tj 
 
 1 
 
 Loads. 
 
 Tariff. 
 
 Tariff. 
 
 
 
 
 ^ 
 
 
 
 
 
 
 
 Wood 
 
 
 W 
 
 O 
 
 3 
 
 Al 
 
 B 
 
 A2 
 
 I, 
 
 II. 
 
 III. 
 
 Special Trff. 
 
 
 
 02 
 
 
 
 
 
 
 
 II. 
 
 1 to 10 Kilometres 
 
 20 
 
 10 
 
 10 
 
 8 
 
 6 
 
 6 
 
 6 
 
 6 
 
 6 
 
 11 20 
 
 22 
 
 11 
 
 11 
 
 9 
 
 6 
 
 6 
 
 6 
 
 6 
 
 6 
 
 21 30 
 
 24 
 
 12 
 
 12 
 
 10 
 
 6 
 
 6 
 
 6 
 
 6 
 
 6 
 
 31 40 
 
 26 
 
 13 
 
 13 
 
 11 
 
 6 
 
 6 
 
 6 
 
 6 
 
 6 
 
 41 50 
 
 28 
 
 14 
 
 14 
 
 12 
 
 6 
 
 6 
 
 6 
 
 6 
 
 6 
 
 51 60 
 
 30 
 
 15 
 
 U 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 61 70 
 
 32 
 
 16 
 
 16 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 71 80 
 
 34 
 
 17 
 
 17 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 81 90 
 
 36 
 
 18 
 
 18 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 91 100 
 
 38 
 
 19 
 
 19 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 101 and over ... 
 
 40 
 
 20 
 
 20 
 
 12 
 
 12 
 
 12 
 
 12 
 
 12 
 
 12 
 
 In English money and miles per ton of 1,000 kilos. 
 
 Up to 6-21 miles .. 
 
 2/~ 
 
 V- 
 
 V- 
 
 -/9* 
 
 -m 
 
 -fl\ 
 
 ~/!f 
 
 -/7J 
 
 -/r 
 
 
 12-42 
 
 2/2* 
 
 1/1* 
 
 1/1? 
 
 -III 
 
 -/7j 
 
 -fl\ 
 
 
 -in 
 
 -/7 
 
 
 18-63 
 
 2/3 
 
 \m 
 
 1/2* 
 
 V- 
 
 -/If 
 
 -/7; 
 
 -nl 
 
 
 -/7 ; 
 
 
 24-84 
 
 */7i 
 
 1/3* 
 
 i/a* 
 
 1/1* 
 
 
 ~/7: 
 
 -/7J 
 
 -/7J 
 
 ~/7; 
 
 
 31 05 
 
 2/9* 
 
 1/0 
 
 1/5 
 
 1/2* 
 
 -nl 
 
 -Ai 
 
 -m 
 
 -/7 
 
 -/7 
 
 
 37-26 
 
 3/- 
 
 1/6 
 
 1/6 
 
 1/24 
 
 -in 
 
 -/n 
 
 -/n 
 
 -/ll 
 
 -/ll 
 
 43-47 
 
 3/21 
 
 im 
 
 1/7* 
 
 l/2 2 l 
 
 -in 
 
 -III 
 
 -in 
 
 -/li 
 
 -/ll 
 
 49-68 
 
 3/5 
 
 1/8* 
 
 1/8* 
 
 i/4 
 
 -in 
 
 -fii 
 
 -in 
 
 -/ll 
 
 -/ll 
 
 55-89 
 
 3/7J 
 
 1/9* 
 
 V9* 
 
 1/2* 
 
 -/n 
 
 -in 
 
 -/n 
 
 -/I l 
 
 -/U 
 
 62-10 
 
 3/9* 
 
 1/11 
 
 1/11 
 
 1/2* 
 
 -in 
 
 -III 
 
 -in 
 
 -fll 
 
 -/ll 
 
 over 
 
 4/- 
 
 21- 
 
 2/- 
 
 1/24 
 
 1/2* 
 
 1/2* 
 
 1/2* 
 
 1/2* 
 
 1/21 
 
xlvi 
 
 The Rates on the Western States Railway, and for Traffic passing between 
 the Eastern and Western States Railway system, are 
 
 
 Per 100 kilos in Mark Pfenning. 
 
 
 
 
 Wagon 
 load. 
 
 Special 
 Tariffs. 
 
 Exceptional 
 Tariff. 
 
 
 . 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 i 
 
 o 
 
 
 
 
 
 
 
 Wood. 
 
 
 s 
 
 1C 
 
 Al 
 
 B 
 
 A2 
 
 I. 
 
 II. 
 
 III. 
 
 Special T. 
 
 
 
 
 
 
 
 
 
 
 II. 
 
 1 to 10 kilometres 
 
 20 
 
 10 
 
 10 
 
 8 
 
 8 
 
 8 
 
 8 
 
 8 
 
 8 
 
 11 20 
 
 22 
 
 11 
 
 11 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 21 30 
 
 24 
 
 12 
 
 12 
 
 10 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 3i 40 
 
 26 
 
 13 
 
 13 
 
 11 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 41 50 
 
 28 
 
 14 
 
 14 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 61 60 
 
 30 
 
 15 
 
 15 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 61 70 
 
 32 
 
 16 
 
 16 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 71 80 
 
 34 
 
 17 
 
 17 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 81 90 
 
 36 
 
 18 
 
 18 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 91 100 
 
 38 
 
 19 
 
 19 
 
 12 
 
 9 
 
 9 
 
 9 
 
 9 
 
 9 
 
 101 and over ... 
 
 40 
 
 20 
 
 20 
 
 12 
 
 12 
 
 12 
 
 12 
 
 12 
 
 12 
 
 In English money and miles per ton of 1,000 kilos, 
 
 Jp to 6-21 miles 
 
 2/- 
 
 I/. 
 
 l/- 
 
 -/9* 
 
 -/* 
 
 -/* 
 
 -/9| 
 
 -/* 
 
 -/* 
 
 12-42 
 
 2/21 
 
 1/1* 
 
 1/1* 
 
 -111 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 18-63 
 
 2/5 
 
 1/2* 
 
 1/2* 
 
 V- 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 24 84 
 
 2/7* 
 
 1/3| 
 
 Ml 
 
 1/11 
 
 -,'H 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 31 05 
 
 2/9* 
 
 1/5 
 
 1/5 
 
 1/2* 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 - ./ll 
 
 37-26 
 
 3/- 
 
 1/6 
 
 1/6 
 
 1/2* 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 43-47 
 
 3/2J 
 
 1/7* 
 
 1/7* 
 
 1/2* 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 49-68 
 
 3/5 
 
 1/8* 
 
 l/*f 
 
 1/2* 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 65-89 
 
 3 1\ 
 
 1/91 
 
 1/9* 
 
 1/2* 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 62-10 
 
 3/9* 
 
 l/ll 
 
 1/11 
 
 1/2* 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 -/ll 
 
 ver 62-10 ,, 
 
 */- 
 
 2/- 
 
 2/- 
 
 1/2* 
 
 1/2* 
 
 1/2* 
 
 1/2* 
 
 1/2* 
 
 1/2* 
 
 
xlvii 
 
 All consignments under 20 kilos, are charged as 20 kilos., 
 any fraction of 10 kilos, above 20 kilos, being charged as 10 
 kilos. 
 
 The tariff rates are charged according as the goods are con- 
 signed, viz . : 
 
 1. As Eilgut (Ordinary Passenger Train Service). 
 
 2. As Stiickgut (by Goods Trains). 
 
 3. As Wagenladungen (full wagon loads). 
 
 I. EILGUT. (Passenger Train). 
 
 Goods of all descriptions, in less quantities than wagon loads, 
 consigned by Passenger Train are charged at the rates set out in 
 the tariff, but Goods forwarded by Passenger Train in wagon 
 loads are charged at double the general class rates for wagon 
 loads by Goods Train. 
 
 The minimum charge by Passenger Train is 0'50 mark 
 (6d.) per consignment. 
 
 For goods sent by Express Trains double the Passenger 
 Train rates are charged, with a minimum of 1 mark (Is.) per 
 consignment. 
 
 IT. STUCKGUT. (General Merchandise). 
 
 This tariff applies to all goods traffic not forwarded by 
 Express or Passenger Train, or in Wagon loads. 
 
 The minimum charge for Stiickgut is 0'30 mark per con- 
 signment. 
 
 III. WAGON LOADS. 
 
 A. General Tariff. 
 
 The tariff rates provided for Classes Al and B are 
 charged for all goods forwarded in wagon loads, which are 
 not included in any of the special tariffs or subject to special 
 regulations. For consignments of 5 tons or paying as for 5 
 tons per wagon, the rates of Class Al are charged, and for 10 
 ton lots or paying as for 10 tons per wagon, the rates of Class B. 
 
xlviii 
 
 B. Special Tariffs, /., II., and III. 
 
 The rates of the Special Tariffs are for certain goods 
 specified in the classification, if forwarded in 10 ton lots. The 
 same goods, if despatched in 5 ton lots or paying as for 5 tons, 
 are charged at the rates of Class A2, unless it is more advan- 
 tageous to pay carriage as for 10 tons at the rates of Special 
 Tariff I., II., or III., as the case may be. 
 
 Wagon loads may be made up by grouping goods included 
 in different classes, as far as their nature will permit, when 
 forwarded by the same sender to the same consignee, in one 
 consignment ; in which case the tariff for the goods which pay 
 the highest rate is charged for the total weight of the consign- 
 ment, unless it is more advantageous to pay carriage, calculated 
 on actual weight, and at the rate provided for each class of 
 goods. 
 
 Explosives and dangerous articles are charged at double the 
 rates of the general tariff for piece goods or wagon loads ; the 
 minimum charge per consignment being the carriage for five tons 
 of the tariff rate of Class Al. 
 
 Milk, beer in casks, bread, fresh fruit, also grapes (except 
 costly hot-house fruits, or fruits imported from southern countries 
 at unusual seasons, which are considered as delicate fruit, and 
 chargeable at Eilgut rates) and returned milk cans, when 
 consigned by goods train, are conveyed by passenger train at 
 goods rates, as far as the train service and working arrangements 
 will allow of such traffic being so carried. 
 
 For the conveyance of Live Stock, the following rates are 
 charged on the Prussian State Railways : 
 
 Small animals in cages, crates, cases, sacks, etc., are charged 
 either in accordance with the Goods Tariff, or if forwarded by 
 Passenger Train, at the Parcels Rates. Dogs belonging to 
 Passengers are charged at 0-015 m. per head, and per kilometre, 
 with a minimum charge of 0-10 m. (ld'2) for each dog. 
 
xlix 
 For Horses in Horse Boxes, the charge is : 
 
 Per Kilometre. Per Mile. 
 
 for 1 horse . . 0-30 m 5-79 
 
 2 . . 0-40 7-72 
 
 3 . . 0-50 9-66 
 
 For each additional horse carried in same truck (HO m. per 
 
 kilometre, plus a fixed charge of I'OO m. (Is.) per head for 
 
 terminals, the minimum charge for each consignment being 
 
 3 marks (3s.). 
 
 In cases where the ordinary tariffs do not apply, the 
 carriage for the conveyance of Live animals in wagon loads is 
 calculated according to the space of the Railway Trucks. Any 
 fractions up to and including half a square metre (0-598 square 
 yard) are not charged for, but anything exceeding half a square 
 metre is charged as for one square metre. 
 
 The charge per square metre (1-196 square yards) per kilo- 
 metre is 
 
 d. | In the district 
 
 For horses 0-025 m. (0-30) . . . 1 of Berlin and 
 
 ( Bromberg. 
 
 /In < 
 0-03 m. (0-36) . . \ tricts. 
 
 For other live stock 
 
 d. 
 
 d. f In other dis- 
 
 '36) . 
 
 d. 
 
 0-020 m. up to 100 kilometres (0-24) 
 
 - 
 
 0-0175 m. 101 to 200 (0*21) I In tlie 
 
 0-015 m. 201 to 300 (0-18) f of Berlin and 
 
 0-010 m. over 300 (0'12)J Bromberg. 
 
 0-020 m (0-24) | In other dis ' 
 
 ' tricts. 
 
 For small live stock in composite trucks the above tariff of 
 charges are increased by 33 $ per cent. The fixed charge for 
 terminals is 0-40 m. (4d'8) per square metre of the floor of the 
 trucks. 
 
 R 
 
1 
 
 Among other exceptional tariffs which arr in force on all 
 German Railways, there is one for European wood, which is 
 charged at 0'30 pf. per 100 kilos, per kilometre (or 0'579d. per 
 ton of 1,000 kilos, per mile), plus the terminals shewn in the 
 foregoing table. There is also an exceptional tariff for coal from 
 the Ruhr district, as under : 
 
 Tariff rate 0-22 pf. 100 kilos per kilometre (0'425d. per ton 
 of 1,000 kilos per mile) with terminals of 
 
 1 to 10 kilometre 6 pf. equivalent to 6-21 miles 7'2d. }>er fon. 
 11 ,i 20 7 12-42 8-4d. 
 
 21 30 8 1863 9-6d. 
 
 31 40 9 24-84 10-8d. 
 
 41 50 10 31-05 Is. 
 
 51 60 11 37-26 Is. Id. 
 
 61 & over 12 ,, and over Is. 2-4d. 
 
 For services which are distinct from the actual conveyance, such 
 as marking, weighing, counting, warehousing, demurrage of 
 wagons, and use of tarpaulins, the railway companies are en- 
 titled to make separate and additional charges. For the hauling 
 of wagons to or from sidings, connecting coal pits or other works 
 with the railway system, a special charge also is made by agree- 
 ment. 
 
 LOADING AND UNLOADING OF GOODS. The loading and 
 unloading of grande vitesse and piece goods are effected by the 
 railway company, those services being included in the tariff 
 rates. 
 
 Packages which weigh more than 750 kilos (15 cwt.) or the 
 dimensions of which exceed the space of a truck, may, at the 
 discretion of the railway company, be required to be loaded by 
 the sender and unloaded by the consignee. 
 
 The loading and unloading of all other goods has to be per- 
 formed by senders and consignees respectively, unless the service 
 
li 
 
 is undertaken by the railway company, for which a charge of lOd. 
 per ton is made ; in which case however the staff who perform 
 the service are considered as employed by the sender or consignee 
 respectively, with whom all responsibility rests. 
 
 COVERING OF GOODS IN OPEN TRUCKS. It is understood that 
 the railway company, in the absence of instructions to the con- 
 trary, convey the goods included in the Special Tariffs except 
 certain articles specially provided for in open wagons, the rail- 
 way being exempted from all responsibility in case of damage 
 arising from such mode of transit. If instructions are given on 
 the consignment note to forward in covered wagons, such goods 
 as the railway company is entitled to convey in open wagons, the 
 tariff rates are increased by 10 per cent. 
 
 Senders may supply their own tarpaulins for the covering of 
 the goods, and they are returned free of charge, at owners' risk, 
 or at the company's risk on payment of the ordinary carriage. 
 
 ARTICLES OF UNUSUAL SIZE. Articles which, owing to 
 their extraordinary size, cannot pass the side doors of the wagons, 
 are charged at the ordinary rates for grande vitesse, if forwarded 
 by Passenger Train, and at the piece goods rates if sent by 
 Goods Train, with a minimum as for one ton for every wagon 
 used, unless the charge calculated at the rates of the tariffs for 
 wagon loads is more advantageous. 
 
 BULKY GOODS are charged 50 per cent, above the ordinary 
 rates both by grande vitesse, and by Goods Train. In the case 
 of timber, girders, and such articles which necessitate the use of 
 guard wagons, a charge 15 pf. (Ifd.) per wagon per kilometre is 
 made in addition to the mileage rates ; but no part of the 
 articles must actually rest on the guard wagons. 
 
Ill 
 
 The general regulat'ons of the Goods Tariff in Germany 
 prescribe the maximum time for delivery of goods as follows : 
 (A.) For EILGUT (Goods carried by Passenger Train), 
 
 one day for forwarding, and one day for every 300 kilom. 
 
 (186 miles) or part thereof. 
 
 (B.) For Goods Train traffic (STUCKGUT), two days 
 
 for forwarding, and for the first 100 kilom. (62 miles), one 
 
 day; for every part of each subsequent 200 kilometres 
 
 (124 miles), one day. 
 
 The time of transit commences at midnight following the 
 date of the stamp on the consignment note; and the Companies 
 are relieved from responsibility if within the stipulated time, 
 delivery is made to the consignee's <; domicile," or if an advice 
 note of the arrival of the goods is posted or otherwise sent 
 to the consignee. The time allowed for delivery does not 
 include the time occupied for Customs' formalities or other 
 delay over which the Railway Companies have no control. 
 
 THE PRUSSIAN AND GERMAN LAW AS TO BATES. 
 
 By Article 33 of the Prussian Law relating to railway 
 undertakings, dated 3rd November, 1838, the Commissioners 
 were empowered, in certain events, to fix the maximum 
 tariff. If after deducting working expenses and a fixed 
 amount for the reserve fund, as sanctioned by the Ministers, 
 the net profits yielded more than 10 per cent, on the capital 
 expended, the railway rates were to be reduced so that the net 
 receipts should not exceed 10 per cent. If, on the other hand, 
 the receipts did not reach the maximum of 10 per cent. (Article 
 39), railway rates might be increased by 10 per cent, until the 
 receipts yielded 10 per cent, on the total capital. Subject to 
 these conditions, the fixing of the tariff rates was left to the rail- 
 way companies. 
 
 Article 45 of the Constitution of the German Empire (dated 
 
 
liii 
 
 16th Apri], 1871) provides that the Government should secure, 
 as much as possible, the adoption of uniform and reduced tariffs, 
 especially for long distances for the carriage of coal, coke, wood, 
 ore, stones, salt, rough iron, manure, and similar goods, and that 
 such low rates should be adopted as might be required to further 
 the interests of the trade of the country. Article 46 enacts that 
 the railway companies in case of need, as for instance, the out- 
 break of a famine, should carry provisions, such as grain, flour, and 
 potatoes, &c., at such a reduced rate as circumstances might 
 require, and as directed by the Bundesrath Auschuss. Such special 
 rates are not, however, to be below the lowest rates charged by 
 the respective railways for u raw materials." 
 
 By the terms of the early Concessions granted to railway com- 
 panies the greater part of the private railway companies in Prussia 
 had no power to fix or alter the tariff rates ; reductions have 
 to be sanctioned by the Minister. For instance, Clause 10 
 of the regulations of the Crefeld-Threis-Kempener Industrie 
 Railway Company (ccncession granted 6th October, 1868) 
 provides that 
 
 "The State reserve a right to control the tariff 
 rates for goods, as well as passengers, and the alter- 
 ation of the same." 
 
 In the same way Article 5 of the concession for the Dort- 
 mund Granan Euscheder Railway Company of the 8th January, 
 1872, stipulates 
 
 "That the Ministers of the Royal State reserve 
 their right to control the fares and rates for goods and 
 passenger traffic, as well as any subsequent modifica- 
 tions in respect of the same." 
 
 Clause 3 of the regulations of the Bergish Markischo 
 Railway, which was transferred to the State on the 1 st January,, 
 1882 (concession dated 12th February, 1884), states that 
 
 "The tariff for goods, as well as passengers, must 
 
liv 
 
 undergo no alteration without the sanction of the Royal 
 Ministers of Finance." 
 
 In the more recent concessions the same rights have been 
 reserved to the State Ministers ; but greater freedom is now 
 granted to the railway companies than was permitted during 
 the first years of working the lines. Maximum rate tariffs are 
 fixed by the Minister of Public Works for the various classes ; 
 and, as in England, the companies may adopt rates, and modify 
 them as they please, as long as the maximum figures, fixed by 
 the State, have not been exceeded. 
 
 For the Prussian States railways the tariffs are now fixed 
 by the Royal Railway Administration, which is a species of a 
 Provincial Court ; but before they can be put in force they must 
 be submitted for the approval of the Minister of Public Works. 
 The Railway Administration consist of a Chairman and eleven 
 Directors, and there are eleven Boards of Directors to manage 
 the Prussian States railways. For private railways the arrange- 
 ments are of a similar character. The application for rates and 
 conditions other than those published in the official tariffs is 
 prohibited by Prussian Law of the 3rd November, 1838, relative 
 to the working of railways. The granting of special conditions 
 to any particular sender or consignee is therefore legally inad- 
 missible. Any alterations in the tariff system must be sub- 
 mitted to the Permanent Tariff Commissioners of the German 
 Railway Administration, appointed to study the interests of 
 trade. They consist of thirteen members of German railways, 
 four elected members for the protection of agriculture and trade, 
 and (in accordance with stipulations made by Bavaria) of a 
 representative of the Bavarian trade interests. On the pro- 
 posals discussed at these Assemblies resolutions are passed by 
 the General Conference of German Railway Administration, 
 and the resolutions are submitted for the approval of the 
 Courts of Judicature. 
 
Iv 
 
 FRANCE. 
 
 THERE is no uniform scale of rates iii France; each railway has 
 its own tariff and classification. The following tables, however, 
 are illustrations of the basis of the old tariff in force on the 
 Western of France Railway, and of the reformed tariff adopted 
 by the Paris, Lyons and Mediterranean Railway. 
 
 WESTERN OF FRANCE RAILWAY. 
 
 Distances, Kilometres. 
 
 CLASSES. 
 
 I. 
 
 II. 
 
 III. 
 
 IV. 
 
 V. 
 
 VI. 
 
 Kate per 1,000 Kilos, per Kilometre, 
 
 Up to 100 Kilometres 
 300 
 
 Cents. 
 16 
 
 Cents. 
 14 
 
 Cents. 
 12 
 
 Cents. 
 10 
 
 Cents. 
 8 
 
 Cents. 
 8 
 6 
 4 
 
 Above 300 ,, 
 
 
 
 
 
 
 
 
 
 
 
 
 MILLS. 
 
 Rate per ton per Mile. 
 
 Up to 62 miles 
 186 
 
 2d.50 
 
 2d.l9 
 
 ld.88 
 
 ld.56 
 
 id.25 
 
 ld.25 
 Od.78 
 Od.62 
 
 Above 186 
 
 
 
 
 
 
 
 
 
 
 
 
Ivi 
 
 PARIS, LYONS, AND MEDITERRANEAN RAILWAY. 
 
 DISTANCES. 
 Kilometres. 
 
 Rate per 1,000 Kilometres per Kilometre. 
 
 CLASSES. 
 
 . _ 
 
 I. 
 
 II. 
 
 III. 
 
 IV. 
 
 A 
 
 V. 
 
 B 
 
 c 
 
 D 
 
 VI. 
 
 E 
 
 P 
 
 
 Cents 
 
 Cents 
 
 Cents 
 
 Cents 
 
 Cents 
 
 Cents 
 
 Cents 
 
 Cents. 
 
 Cents. 
 
 Cents 
 
 Cents 
 
 Cents 
 
 Up to 25 
 
 0.16 
 
 0.14 
 
 0.12 
 
 0.10 
 
 0.09 
 
 0.08 
 
 0.08 
 
 0.08 
 
 0.08 
 
 0.08 
 
 0.08 
 
 0.08 
 
 26 ,; 30 
 
 0.16 
 
 0.14 
 
 0.12 
 
 0.10 
 
 0.09 
 
 0.08 
 
 0.08 
 
 0.08 
 
 0.05 
 
 0.04 
 
 0.04 
 
 0.04 
 
 31 60 
 
 0.16 
 
 0.14 
 
 0.12 
 
 0.10 
 
 0.09 
 
 0.08 
 
 0.08 
 
 0.08 
 
 0.0425 
 
 0.04 
 
 0.04 
 
 0.04 
 
 61 ,, 100 
 
 0.16 
 
 0.14 
 
 0.12 
 
 0.10 
 
 0.09 
 
 0.08 
 
 0.06 
 
 0.045 
 
 0.0425 
 
 o.ot 
 
 0.03 
 
 0.02 
 
 101 , r 150 
 
 0.15 
 
 0.13 
 
 0.11 
 
 0.09 
 
 0.08 
 
 0.03 
 
 0.06 
 
 0-045 
 
 0.0425 
 
 0.035 
 
 0.025 
 
 0.02 
 
 151 - 200 
 
 0.15 
 
 0.13 
 
 0.11 
 
 0.09 
 
 0.08 
 
 0.07 
 
 0.06 
 
 0.045 
 
 0.0425 
 
 0.035 
 
 0.025 
 
 0.02 
 
 201 300 
 
 0.15 
 
 0.13 
 
 0.11 
 
 0.09 
 
 0.065 
 
 0.04 
 
 0.04 
 
 0.0375 
 
 0.04 
 
 0.035 
 
 0.026 
 
 0.02 
 
 301 400 
 
 0.14 
 
 0.12 
 
 0.10 
 
 0.08 
 
 0,065 
 
 0.04 
 
 0.035 
 
 0.0325 
 
 0.0326 
 
 0.03 
 
 0.025 
 
 0.02 
 
 401 600 
 
 0.14 
 
 0.12 
 
 0.10 
 
 0.08 
 
 05 
 
 0.04 
 
 0.035 
 
 0.0325 
 
 0.0325 
 
 0.03 
 
 0.025 
 
 0.02 
 
 501 600 
 
 0.13 
 
 0.11 
 
 0.09 
 
 0.07 
 
 0.05 
 
 0.04 
 
 0.035 
 
 0.0325 
 
 0.0325 
 
 0.03 
 
 0.025 
 
 0.02 
 
 601 700 
 
 0.12 
 
 0.10 
 
 0.08 
 
 0.06 
 
 0.05 
 
 0.04 
 
 0.035 
 
 0.0326 
 
 0.0325 
 
 0.025 
 
 0.025 
 
 0.02 
 
 701 800 
 
 0.11 
 
 0.09 
 
 0.07 
 
 0.05 
 
 0.04 
 
 0.04 
 
 0.035 
 
 0.03 
 
 0.03 
 
 0.025 
 
 0.025 
 
 0.02 
 
 801 900 
 
 0.10 
 
 0.08 
 
 0.06 
 
 0.04 
 
 0.04 
 
 0.04 
 
 0.036 
 
 0.025 
 
 0.026 
 
 0.025 
 
 0.02 
 
 0.02 
 
 901 ,, 1000 
 
 0.09 
 
 0.07 
 
 0.05 
 
 0.04 
 
 0.04 
 
 0.04 
 
 0.03 
 
 0.025 
 
 0.025 
 
 0.02 
 
 0.02 
 
 0.02 
 
 1001 1,100 
 
 0.08 
 
 0.06 
 
 0.05 
 
 0.04 
 
 0.01 
 
 0.04 
 
 0.03 
 
 0-.025 
 
 0.025 
 
 0.02 
 
 0.02 
 
 0.02 
 
 
w 
 
 ft 
 d 
 M 
 
 Ivii 
 
 l -N C '*CD'~ H '~ l '~'cOCOCo'~'cOCOeo'" H '~ l 
 i-HOOOOOGOOOOOOOO 
 
 i 2 2 2 
 
 Oi Oi O5 i 1 i-^ 
 
 Cl 1^- CD CO CO CO ^O IO ^O ^^ O 
 i-lOOOOOOOOOO 
 
 H3 T3 TS 'd 
 
 o o o o 
 
 p d 
 O 
 
 s 3 s 
 
 (M (N <M (M 
 
 Tfi-f-^^fC^jC^OOl'-t^-l^-COCOcOCO 
 ,H-l,f-lr-li-li-l'r-t-i2oOoS22 
 
 'OO 
 C k 1'- 
 
 --t'QOC s -lC<I<M 
 
 3 
 
 CO CO 00 QO 
 
 3 
 
Iviii 
 
 Classes A, B, c, D, E, p, apply generally to full truck loads 
 only, and for Classes, I, n, in, iv, v. andvi. The minimum charge 
 is as for 40 kilos. (88 Ibs.), fractions of 10 kilos, being charged 
 as 10 kilos. For consignments under 40 kilos, the rate 
 charged is 25 cents, per 1,000 kilos, per kilometre, including 
 terminals, irrespective of distance, equal to 3d. 9 2 per ton per 
 mile ; but the charge so calculated must not exceed what would 
 be charged for 40 kilos, at the ordinary Class rates. The 
 minimum charge for consignments up to 40 kilos, is 25 cents. 
 (2|d.), and above 40 kilos. 40 cents. (4d.), inclusive of loading 
 and unloading and station terminals. 
 
 Plated Goods, Quicksilver, Embroidery, Lace, Articles of 
 Art (Statues, Paintings, Bronze Figures) are charged at the 
 highest Class rates, plus 50 per cent. 
 
 Explosives, Inflammable and Dangerous Articles, for the 
 conveyance of which special precautions have to be taken, are 
 charged the highest Class rate plus 50 per cent. 
 
 BULKY GOODS, specified in the Classification, which do not 
 weigh 200 kilos. (4 cwt.) per cubic metre (1.308 cubic yard), are 
 charged 50 per cent, in addition to the ordinary Class rates. 
 The carriage so calculated must not, however, exceed the amount 
 chargeable at a computed weight of 200 kilos, per cubic metre. 
 
 PACKAGES OP EXTRAORDINARY SIZE OR WEIGHT. The Class 
 rates are increased by 50 per cent, for packages weighing from 
 3 to 5 tons, and by 100 per cent, for packages weighing over 5 
 tons, but not exceeding 10 tons, with a minimum in the latter 
 case of 25 cents, per 1,000 kilos, per kilometre (3d.92 per ton 
 per mile). Packages which weigh over 10 tons, or the dimen- 
 sions of which exceed those of the ordinary rolling stock, are 
 not carried except under special contract. 
 
lix 
 
 The loading or unloading of packages weighing over 5 tons 
 must be performed by the sender or consignee respectively, and 
 at their own risk and expense at stations which are not provided 
 with hoisting gear. 
 
 TERMINALS. The charges for the two services of loading and 
 unloading and station terminals are : 
 
 Loading at sending station 
 
 GOODS CARRIED IN 
 TRUCK LOADS. 
 
 IN LESS QUANTITIES. 
 
 Per 1000 kilos. 
 
 Per ton. 
 
 Per l-m kilos. 
 
 Per ton. 
 
 cts. 
 30 
 
 S. d. 
 
 3 
 
 cts. 
 40 
 
 s. d. 
 4 
 
 Unloading at destination ,, 
 Station terminals at sending 
 station... 
 Station terminals at des- 
 
 30 
 20 
 
 3 
 
 2 
 
 40 
 35 
 
 4 
 3 
 
 tination station 
 Per 1000 kilos. 
 
 20 
 
 2 
 
 35 
 
 3 
 
 fcs.1-0 
 
 lOd. 
 
 fcs.1-50 
 
 1 2} 
 
 Fractions of 10 kilos, are charged as 10 kilos. 
 
 Full truck loads may be loaded or unloaded by sender and 
 consignee respectively at their option, risk and expense ; in which 
 case a reduction is made in the terminal charges of 30 cents, per 
 ton, for each service, either loading or unloading. The station 
 dues are charged in any case, viz. : 20 cents, per ton at sending 
 station, and 20 cents, at destination station. 
 
 If the traffic passes over different lines a further charge of 
 40 cents, per ton is made for transfer at the junction, which 
 amount is apportioned in equal proportions to the two Companies 
 between which the traffic is exchanged. 
 
 BOOKING. A charge of Id is made for each consignment. 
 
WEIGHING. Goods, which at the request of sender or 
 consignee have to be weighed in addition to, and irrespective of 
 the weighing by the railway company for the purpose of calculat- 
 in" the carriage, are subjected to a charge of 10 cents. (Id.) per 
 100 kibs. (2 cwt.) or part thereof. If weighed over the weigh- 
 bridge, the charge is 30 cents. (3d.) per ton with a minimum of 
 frs. 1-50 (Is. 2Jd.) per truck or cart. If the re- weighing proves 
 that an error in the invoiced weight was committed by the 
 railway company to the prejudice of sender or consignee, the 
 above charges are not made. 
 
 WAREHOUSING. For the Warehousing of Goods, consigned 
 to wait orders at the station, the delivery of which for some cause 
 or other is not taken within 48 hours from the time the advice 
 note is posted, the following charges are made : 5 cents, (one 
 halfpenny) per 100 kilos. (2 cwt.) or part of 100 kilos, per day 
 for the first three days after the expiration of the time fixed 
 above, minimum charge 10 cents. (Id.), and for every subsequent 
 day 10 cents. (Id.) per 100 kilos, or part of 100 kilos, per day. 
 
 Goods consigned to " domicile,'' and which are not delivered 
 in consequence of consignee being absent or unknown or refusing 
 to accept delivery, are subject to the same warehouse charges, 
 provided an advice of the cause of the non-delivery is immediately 
 addressed by the railway company to the sender. In this case 
 the company are entitled to charge return cartage of the goods 
 to the station. 
 
 The same warehouse charges are made at sending stations 
 if the goods for some cause or other cannot be despatched within 
 24 hours after delivery to the station; besides which, the Rail- 
 way Company can decline to receive goods at their stations or 
 quays unless they are ready for immediate dispatch. 
 
Ixi 
 
 DEMURRAGE. For truck loads, which may be loaded or un- 
 loaded by sender and consignee respectively at their option, the 
 following regulations apply : At sending stations the trucks 
 must be loaded within 24 hours from the time they are held at 
 the disposal of sender, after which 10 frs. (8s.) per truck per day 
 is charged. At destination stations, the trucks must be released 
 during the day following the date of the advice sent by the rail- 
 way company to consignee, provided such advice can be delivered 
 before 5.30 p.m. on the day it is ^ent, failing which one day more 
 is allowed. After the time allowed has elapsed, the railway 
 company can at their discretion unload the trucks, and: make a 
 charge of 30 cents. (3d.) per ton, the goods unloaded being sub- 
 ject to the general regulations and warehouse charges; or the 
 goods may be allowed to remain in the trucks and a charge made, 
 after the stipulated time allowed, of 10 frs. (8s.) per truck per 
 day. Sundays and fete days are not taken into account in the 
 time allowed for the loading or unloading of the trucks. 
 
 CARRIAGES. The rates charged for the conveyance of 
 carriages are as follow : 
 
 Per carriage. 
 
 Per kilometre. Per mile. 
 Carriages with 2 or 4 
 
 wheels, and one seat in the 
 
 interior 0-25 cents. (3d 85.) 
 
 Carriages with 2 seats in 
 the interior, omnibuses, stage 
 coaches, &c 0'32 (4d.94.) 
 
 Furniture vans empty are 
 charged at the rate of 0'20 ,, (3d.08.) 
 
 If loaded, an additional charge is made of 14 cents, 
 per 1,000 kilos, per kilometre (2'16d. per ton per mile) 
 for the contents of the van. 
 
Ixii 
 
 HOUSES AND CATTLE. The following rates apply to the 
 
 conveyance of horses and cattle by goods train : 
 
 Per head Per 
 
 Per kilometre, mile. 
 Oxen, cows, bulls, horses, 
 
 mules, donkeys, and ponies ... 10 cents. (Id. 54.) 
 
 Calves and pigs 04 (Od.61.) 
 
 Sheep, ewes, lambs, and 
 goats 02 (Od.30.) 
 
 Drovers, who accompany the cattle, pay the 
 ordinary 3rd class fare. 
 
 Animals, the declared value of which is over 
 5,000 frs. (200), are charged 50 per cent, in addition 
 to the ordinary rates. 
 
 In case of any accident the Company's 
 liability is limited to 5,000 frs. (200) per head, 
 unless a higher value is declared on the consignment 
 note. 
 
 Small animals such as Sucking Pigs, Cats, Rabbits, 
 &c., packed in crates or baskets, are charged at 1st 
 class rate calculated on double the actual weight. 
 
 Dogs, even if in crates, are carried by Passenger 
 Train only. 
 
 For Carriages, Horses, and Cattle the following terminals 
 are charged : 
 
 Booking 10 cents. (Id.) per consignment. 
 Loading and unloading, for carriages, frs. 2 
 (Is. 7d.) each. 
 
 For Oxen, Cows, Bulls, Horses, Mules, 
 Donkeys, and Ponies, fr. 1 (lOd.) each. 
 
 For Calves and Pigs, 40 cents. (4d.) each. 
 For Sheep, Lambs and Goats, 20 cents. (2d.) 
 each. 
 
Ixiii 
 
 No charge is made for station dues. 
 
 For carriages, which for some cause or other are not taken 
 delivery of within 48 hours from the time of the advice being 
 posted by the Hail way Company, a charge of fr. 1 (10d.), per 
 carriage per day is made for warehousing. 
 
 Cattle and horses, which cannot be delivered on arrival at 
 the destination, are fed and taken care of by the Railway 
 Company at the risk and expense of the Owner. 
 
 The time allowed for the conveyance of traffic by Goods 
 Train on French Railways is calculated at the rate of 24 hours 
 for every 125 kilometres (77 J miles), or a fraction thereof. 
 Any fraction of and including 25 kilometres (15J miles) in 
 excess of this distance (125 kilometres), is not taken into 
 account. Thus 150 kilometres are calculated as 125 kilometres, 
 ES shewn hereafter. 
 
 
 
 
 Total number 
 
 DISTANCES. 
 
 Time 
 allowed 
 
 Time 
 allowed 
 
 of days, 
 station to 
 
 
 for loading 
 
 for 
 
 station, 
 
 
 
 and 
 
 conveyance 
 
 exclusive of 
 
 Kilometres. 
 
 Miles. 
 
 dispatch. 
 
 by rail. 
 
 day of 
 
 
 
 
 
 delivery. 
 
 
 
 Days. 
 
 Days. 
 
 Da vs. 
 
 1 to 150= 
 
 1 to 93 
 
 i 
 
 1 
 
 2 
 
 151 
 
 275= 
 
 94 
 
 170 
 
 1 
 
 2 
 
 3 
 
 278 
 
 400= 
 
 171 
 
 248 
 
 1 
 
 3 
 
 4 
 
 401 
 
 525= 
 
 249 
 
 326 
 
 1 
 
 4 
 
 5 
 
 526 
 
 650=! 327 
 
 403 
 
 1 
 
 5 
 
 6 
 
 651 
 
 775= 404 
 
 481 
 
 1 
 
 6 
 
 7 
 
 776 
 
 900=1 482 
 
 559 
 
 1 
 
 7 
 
 8 
 
 901 
 
 1,025=' 560 
 
 637 
 
 1 
 
 8 
 
 9 
 
 1,026 
 
 1,150= 
 
 638 
 
 714 
 
 1 
 
 9 
 
 10 
 
 1,151 
 
 1,275= 
 
 715 
 
 792 
 
 1 
 
 10 
 
 11 
 
 1,276 
 
 1,400=1 793 
 
 870 
 
 1 
 
 11 
 
 12 
 
 1,401 
 
 1,525= 
 
 871 
 
 947 
 
 1 
 
 12 
 
 13 
 
 1,526 
 
 1,650= 
 
 948 
 
 1,025 
 
 1 
 
 13 
 
 14 
 
Ixiv 
 
 For the conveyance of animals and goods paying the two 
 highest class rates to stations on the main lines, the time of 
 transit is fixed as follows : 
 
 DISTANCES. 
 
 Time 
 allowed 
 for loading 
 and 
 dispatch. 
 
 Time 
 allowed 
 for 
 conveyance 
 by rail. 
 
 Total number 
 of days, 
 station to 
 station, 
 exclusive of 
 day of 
 delivery. 
 
 Kilometres. 
 
 Miles. 
 
 1 t 
 201 
 401 
 601 
 801 
 1,001 
 1,201 
 1,400 
 1,601 
 
 o 200= 
 400= 
 600= 
 800= 
 1,000= 
 1,200= 
 1,400= 
 1,600= 
 1,800= 
 
 1 t 
 125 
 249 
 373 
 498 
 622 
 746 
 870 
 995 
 
 o 124 
 248 
 372 
 497 
 621 
 745 
 869 
 994 
 1,118 . 
 
 Da. 
 
 ya. 
 I 
 
 L 
 
 Days. 
 1 
 2 
 3 
 4 
 5 
 6 
 7 
 8 
 9 
 
 Days. 
 2 
 3 
 4 
 5 
 6 
 7 
 8 
 9 
 10 
 
 For traffic which has to pass from one line to another one 
 day in addition to the time specified above is allowed for 
 transfer if the transfer station is a joint station, and two days 
 if the transfer stations are apart from each other. 
 
 NOTE. In converting Foreign money and distances into English 
 money and miles, the following have been taken, viz. : 
 
 25 francs 
 1 mark 
 
 100 pfenning ... 
 1 florin 
 1 kilometre ... 
 1,000 kilogrammes 
 
 1 
 Is. 
 Is 
 
 Is. 8d. 
 
 621 of a mile. 
 2,200 Ibs. 
 
Ixv 
 TOLL AND MAXIMUM RATE CLAUSES IN RAILWAY ACTS. 
 
 THE following are illustrations of the Tolls and Rates which 
 Kailway Companies have been authorised to charge in this 
 country : 
 
 Tolls authorised by the Stockton and Darlington Railway 
 Act, 18211 and 2 Geo. IV., cap. 44, s. 62. 
 
 ' ' And in consideration of the great Charge and Expense which 
 " the said Company of Proprietors must incur and sustain in making 
 " and maintaining the said Railways or Tramroads, and other the 
 " works hereby authorised to be made and maintained: be it further 
 " enacted, That it shall and may be lawful for the said Company of 
 " Proprietors, from time to time, and at all Times hereafter, to ask, 
 " demand, take, recover, and receive, to and for the Use and Benefit of 
 t( the said Company of Proprietors for the Tonnage of all Goods, 
 ** Wares, and Merchandise, and other Things which shall be carried or 
 " conveyed upon the said Railways or Tramroads, or upon any part 
 l( thereof, the Rates, Tolls, and Duties hereinafter mentioned : (that is 
 " to say), 
 
 " For all Limestone, Materials for the Repair of Turnpike Roads 
 " or Highways, and all Dung, Compost, and all sorts of 
 '* Manure, except Lime, which shall be carried or conveyed 
 " upon the said Railways or Tramroads, such sum as the 
 " said Company of Proprietors shall from time to time direct 
 " or appoint, not exceeding the Sum of Fourpence per Ton 
 * per Mile. 
 
 " For all Coal, Coke, Culm, Cinders, Stone, Marl, Sand, Lime, 
 " Clay, Ironstone, and other Minerals, Building Stone, 
 " Pitching and Paving Stone, Bricks, Tiles, Slates, and all 
 " gross and unmanufactured Articles, and Building Materials, 
 " suoh sum as the said Company of Proprietors shall from 
 " time to time direct and appoint, not exceeding the Sum of 
 " Fourpence per Ton per Mile. 
 
 " For all Lead in Pigs or Sheets, Bar Iron, Wagon Tire, Timber, 
 " Staves, and Deals, and all other Goods, Commodities, 
 ' { Wares and Merchandises, such Sum as the said Company 
 " of Proprietors shall from time to time direct and appoint, 
 " not exceeding the Sum of Sixpence per Ton per Mile. 
 
 S 
 
Ixvi 
 
 ' For all the Articles, Matters, and Things for which a Tonnage 
 " is hereinbefore directed to be paid, which shall pass the 
 " Inclined Planes upon the said Railways or Tra inroads, 
 " such Sum as the said Company of Proprietors shall 
 " appoint, not exceeding the Sum of One Shilling per 
 " Ton. 
 
 " And for all Coal which shall be shipped on board of any vessel 
 " or vessels in the Port of Stockton-upon-Tees aforesaid, for 
 tl the purpose of exportation, such Sum as the said 
 " Company of Proprietors shall appoint, not exceeding the 
 " Sum of One Halfpenny per Ton per Mile." 
 
 By the Liverpool and Manchester Railway Act, 1826, that 
 Company were empowered to charge maximum rates for the 
 whole distance, 31 miles 6 chains, viz. : 
 
 " For all Lime, Limestone, and all sorts of Dun:*, Compost, and 
 " Manure, and all materials for the repair of the public roads 
 " and all Stone, Sand, Clay, Building, Pitching and Paving 
 " Stones, Tiles and Slates, and also for all Timber, Staves 
 " and Deals not exceeding Eight Shillings per Ton. 
 " For all Sugar, Corn, Grain and Flour, Dyewoods, Lead, Iron, 
 
 1 ' and other metals not exceeding Nine Shillings per Ton. 
 " For all Cotton and other Wool, Hides, Drugs, Groceries and, 
 " manufactured goods not exceeding Eleven Shillings per 
 " Ton. 
 " For all Wines, Spirits, Vitriol, Glass, and other hazardous 
 
 " goods not exceeding Fourteen Shillings per Ton. 
 " And for any distance short of the whole length, not exceeding 
 " a rateable proportion of such several sums according to 
 " distance. 
 
 " And for all Coals, Coke, Culm, Charcoal and Cinders carried or 
 " conveyed along the same or any part thereof any sum not 
 *' exceeding Twopence Halfpenny per Ton per Mile. 
 " And for all Persons, Cattle and other Animals, such reasonable 
 " charge as shall from time to time be determined by the 
 " said Company." 
 
 In 1835 the Toll Clauses sanctioned by Parliament were 
 generally as follows ; 
 
Ixvii 
 
 Great Western Eailway Act, 1835, 5 and 6 William IV., 
 cap. 107, s. 164, 166, 167. 
 
 " And be it further enacted, That it shall be lawful for the said 
 " Company to demand, receive, and recover, to and for the Use and 
 " Benefit of the said Company, for the Tonnage of all Articles, Matters 
 " and Things which shall be conveyed upon or along the said Eail way, 
 4< any Rates or Tolls not exceeding the following : (that is to say,) 
 
 " For all Dung, Compost, and all sorts of Manure, Lime, and Lime- 
 " stone, and Salt, and all undressed materials for the Eepair of 
 lt Public Roads or Highways, the Sum of One Fenny per Ton 
 " per mile ; 
 
 " For all Coals, Coke, Culm, Charcoal, Cinders, Building, Pitching, 
 
 "and Paving Stones Dressed, Bricks, Tiles, Slates, Clay, 
 
 " Sand, Ironstone, Iron Ore, Pig, Bar, Rod, Hoop, Sheet, and 
 
 ' ' all other similar Descriptions of wrought Iron and Castings 
 
 "not manufactured into utensils or other Articles of Mer- 
 
 " chandise, the Sum of Three Halfpence per Ton per Mile ; 
 
 " For all Sugar, Grain, CDITI, Flour, Dyewoods, Earthenware, 
 
 " Timber, Staves, and Deals, Metals (except Iron) Nails, Anvils, 
 
 " Vices, and Chains, the Sum of Twopence per Ton per Mile ; 
 
 " For all Cotton and other Wools, Hides, Drugs, manufactured 
 
 " Goods, and all other Wares, Merchandise, Articles, Matters, 
 
 " or things, the Sum of Threepence per ton per Mile. 
 
 ' ' And be it further enacted, That it shall be lawful for the said 
 
 " Company, and they are hereby empowered to provide Locomotive 
 
 " or Stationary Engines or other Power for the drawing or propelling 
 
 " of any Articles, Matters, or Things, Persons, Cattle, or Animals, 
 
 " up^n the said Railway, and also along and upon any other Railway 
 
 " communicating therewith, and to receive, demand, and recover such. 
 
 " Sums of Money for the Use of such Engines or other Power as the 
 
 " said Company shall think proper, in addition to the several other 
 
 " Rates, Tolls, or Sums by this Act authorised to be taken. 
 
 " And be it further enacted, That it shall bo lawful for the said 
 ' ' Company, and they are hereby authorised, if they shall think proper, 
 " to use and Employ Locomotive Engines or other Moving Power, and 
 " in Carriages or Wagons drawn or propelled thereby to Convey upon 
 " the said Railway and also along and upon any other Railway commu- 
 " nicating therewith, all such Passengers, Cattle and other Animals 
 
Ixviii 
 
 11 Goods, "Wares, and Merchandise, Articles, Matters and Things, as 
 
 " shall be offered to them for that Purpose, and to make such reason - 
 
 11 able Charges for such Conveyance as they may from Time to Timo 
 
 " determine upon, in addition to the several Kates or Tolls by this Act 
 
 " authorised to be taken : Provided always, that it shall not be lawful 
 
 1 ' for the said Company or for any Person using the said Railway as 
 
 " carriers to charge for the Conveyance of any Passenger upon the 
 
 " said Railway any greater Sum than the Sum of Threepence Half- 
 
 " penny per Mile, including the Toll or Rate hereinbefore granted." 
 
 By the Great Western Railway Company's Act, 1847, the 
 
 power of the Company in regard to rates and charges was 
 
 reduced and limited, 
 
 " For all Coals, Coke, Culm, Cannel, Ironstone, Iron Ore, Pig Iron, 
 " Bar Iron, Rod Iron, Sheet Iron, Hoop Iron, Plates of Iron, 
 " Slabs, Billets and Rolled Iron, Limestone, Lime, Bricks, 
 " Salt, Sand, Fire-clay, Cinders, Slag and Stone, per ton per 
 11 mile One Halfpenny ; and if conveyed in carriages belonging 
 " to the Company an additional sum per ton per mile not 
 " exceeding One Farthing. 
 
 " For all Dung, Compost, and all sorts of Manure, and all un- 
 " dressod materials for the Repair of Public Roads or 
 " Highways, Charcoal, Stones for building, pitching, and 
 " paving, Tiles, Slates, and Clay (except Fire-clay), and 
 " for Wrought Iron not otherwise specifically classified 
 " herein, and for heavy Iron Castings, including Railway 
 " Chairs per ton per mile, not exceeding One Penny ; and if 
 ' ' conveyed in carriages belonging to the Company an addi- 
 " tional sum per ton per mile not exceeding One Farthing. 
 ** For all Sugar, Grain, Corn, Flour, Hides, Dyewoods, Earthen - 
 " ware, Timber, Staves, Deals and Metals (except Iron), 
 " Nails, Anvils, Vices and Chains, and for light Iron Castings 
 " per ton per milo Twopence; and if conveyed in carriages 
 " belonging to the Company an additional sum per ton per 
 " mile not exceeding One Halfpenny. 
 
 " For Cotton and other Wools, Drugs and Manufactured Goods, 
 " the sum of Twopence Halfpenny per ton per mile ; and if 
 " conveyed in carriages belonging to tho Company an addi- 
 " tional sum per ton per mile not exceeding One Halfpenny. 
 
Ixix 
 
 " For Fish and all other Wares, Merchandise, Articles, Matters 
 " or Things, per ton per mile not exceeding Threepence ; and 
 ' if conveyed in carriages belonging to the Company an addi- 
 * tional sum per ton per mile not exceeding One Halfpenny. 
 
 " And be it enacted, That the Toll which the Company may 
 " demand for the use of Engines for propelling the Carriages 
 " of other parties on the i?aid Railways shall not exceed One 
 " Penny per mile for each Passenger or Animal or for each 
 " Ton of Goods or other Articles, in addition to the several 
 " other tolls or sums by this Act authorised to be taken for 
 " the use of the said Railways. 
 
 4< And with respect to the conveyance of Goods, the maximum 
 " rates of charge to be made by the Company for the con- 
 " veyance thereof along the said Railways, including the 
 " Tolls for the use of the said Railways, and Wagons or 
 " Trucks, and Locomotive Power, and every expense in- 
 " cidental to such conveyance, except a reasonable sum for 
 " loading, covering and unloading of Goods, and for Delivery 
 " and Collection, and any other services incidental to the 
 " Business or Duty of a Carrier, where such services or any of 
 ' them are or is performed by the Company, shall not exceed 
 " the following sums (that is to say) : 
 
 " For every Horse, Mule, and other Beast of Draught or Burden, 
 " Threepence per mile. 
 
 " For Horned Cattle, the sum of One Penny Three Farthings per 
 ' Head per Mile. 
 
 " For Calves, Pigs, Sheep and small Animals, One Halfpenny 
 " each per Mile. 
 
 " For every Private Carriage, Fourpence per mile. 
 
 " For all Coal, Coke, Ironstone and other Articles hereinbefore 
 " classed therewith, conveyed any distance not exceeding Fifty 
 " Miles, the sum of One Penny and One-eighth per ton per 
 " mile ; and the sum of Seven-eighths of a Penny per Ton 
 " per Mile for the whole distance travelled, if conveyed a 
 " a Distance exceeding Fifty Miles. 
 
 " For all Dung, Compost and other Articles hereinbefore classed 
 " therewith, conveyed any distance not exceeding Fifteen 
 " miles, the sum of One Penny Halfpenny per Ton per Mile, 
 
Ixx 
 
 11 and the sum of One Penny and One-eighth per Ton per 
 " Mile for the whole distance travelled, if conveyed a distance 
 " exceeding Fifteen Miles. 
 
 " For all Sugar, Grain, and other Articles hereinbefore classified 
 " therewith, conveyed any distance not exceeding fifty Miles, 
 " the Sum of Twopence Halfpenny per Ton per Mile, and the 
 ' ' Sum of Twopence per Ton per Mile for the whole distance 
 " travelled, if conveyed a distance exceeding Fifty Miles. 
 
 ' ' For all Cotton and other Articles hereinbefore classified there- 
 " with, conveyed any distance not exceeding Fifty Miles, the 
 " Sum of Threepence per Ton per Mile ; and the Sum of 
 " Twopence Halfpenny per Ton per Mile for the whole 
 " distance travelled, if conveyed a distance exceeding Fifty 
 " Miles. 
 
 " For Fish and all other Wares, Merchandise, Articles, Matters 
 " and Things conveyed any distance not exceeding Fifty 
 " Miles, the Sum of Threepence Halfpenny per Ton per 
 " Mile ; and the Sum of Threepence per Ton per Mile for the 
 * whole distance travelled, if conveyed a distance exceeding 
 " Fifty Miles." 
 
 By the Regulation of Railways Act, 1844 (7 and 8 Vic. 
 cap. 85), the Government were given the right, on certain con- 
 ditions, to revise the scale of Tolls, Rates and Charges as 
 follows : 
 
 " Be it enacted, by the Queen's most excellent Majesty, by and 
 " with the advice and consent of the Lords, spiritual and temporal, 
 " and Commons in this Parliament assembled, and by the authority of 
 ' the same, That if at any time after the end of twenty-one years 
 ' from and after the first day of January next, after the passing of 
 ' ' any Act of the present, or any future Session of Parliament for the 
 ' ; construction of any New Line of Passenger Railway, whether such 
 " New Line be a Trunk, Branch, or Junction Line, and whether such 
 " New Line be constructed by a New Company, incorporated for the 
 " purpose, or by any existing Company, the clear annual profits 
 " divisible upon the subscribed and paid-up Capital Stock of the said 
 " Railway upon the average of the three then last preceding years 
 " shall equal or exceed the rate of Ten founds for every Hundred 
 
Ixxi 
 
 11 Pounds of such paid-up Capital Stock, it shall be lawful for the 
 " Lords Commissioners of Her Majesty's Treasury, subject to the 
 " provisions hereinafter contained, upon giving to the said Company 
 * ' three calendar months' notice in writing of their intention to do so, 
 " to revise the scale of tolls, fares and charges, limited by the Act or Acts 
 "relating to the said Railway, and tojtx such new scale of tolls, fares 
 " and chafes, applicable to such different classes and kinds of Passengers, 
 " Goods, and other Traffic on such Railway as in the judgment of the 
 " said Lords Commissioners, assuming the same quantities and kinds 
 " of traffic to continue, shall be likely to reduce the said divisible 
 " profits to the said rate of Ten Pounds in the Hundred: provided 
 "alwaysthit no such revised ecale shall take effect, unless accom- 
 " panied by a guarantee to subsist as long as any such revised scale of 
 " tolls, fares, and charges shall be in force, that the said divisible 
 "profits, in case of any deficiency therein shall be annually made good 
 ' to the said rate of Ten Pounds for every Hundred Pounds of such 
 " Capital Stock, provided also that such revised scale shall not be again 
 " revised or such guarantee withdrawn otherwise than with the consent 
 " of the Company for the further period of twenty-one years." 
 
 When the earlier Railway Acts were passed, Parliament 
 provided that the rates were to be charged equally through- 
 out the railway. 
 
 The following is a copy of one of the Clauses that were 
 inserted : 
 
 " Provided always, and be it further enacted, that the aforesaid 
 " rates and tolls to be taken by virtue of this Act shall at all times b3 
 " charged equally, and after the same rate per ton per mile throughout 
 ' ' the whole of the said Railway in respect of the same description of 
 " articles, matters or things, and that no reduction or advance in the 
 ' ' said rates and tolls shall, either directly or indirectly, be made par- 
 " tially or in favour of or against any particular person or Company, 
 " or be confined to any particular part of the said Railway, but that 
 " every such reduction or advance of rates and tolls upon any particular 
 " kind or description of articles, matters or things, shall extend to and 
 " take 'place throughout the whole and every 'part of the said Railway, 
 " upon, and in respect of the same description of articles, matters 
 " and things so reduced or advanced, and shall extend to all persons 
 
Ixxii 
 
 " whomsoever using the same or carrying the same description of 
 " articles, matters and things thereon, anything to the contrary thereof 
 " in anywise notwithstanding." 
 
 In the year 1845, however, Parliament by a Public Act 
 cancelled the prohibition against differential rates by the follow- 
 ing Clause. 
 
 " And whereas it is expedient that the Company should be 
 tl enabled to vary the tolls upon the Railway, so as to accommodate 
 11 them to the circumstances of the traffic, but that such power of vary- 
 * ing should not be used for the purpose of prejudicing or favouring 
 11 particular parties, or for the purpose of collusively and unfairly 
 " creating a monopoly, either in the hands of the Company or of par- 
 " ticular parties ; it shall be lawful, therefore, for the Company, sub- 
 " jeot to the provisions and limitations herein and in the special Act 
 " contained, from time to time, to alter or vary the tolls by the special 
 " Act authorised to be taken, either upon the whole or upon any par- 
 lt ticular portions of the Raihvay as they shall think fit \ provided 
 " that all such tolls be at all times charged equally to all persons and 
 " after the same rate, whether per ton, per mile or otherwise, in respect 
 " of all passengers, and of all goods or carriages of the same descrip- 
 " tion, and conveyed or propelled by a like carriage or engine, passing 
 " only over the same portion of the line of Railway under the same 
 " circumstances ; and no reduction or advance in any such tolls shall 
 " be made either directly or indirectly in favour of or against any 
 ' ' particular Company or person travelling upon or using the 
 " Railway." 
 
 By Clause 15 of the Kail way and Canal Traffic Act of 
 1873, it was provided that : 
 
 "The Commissioners shall have power to hear and determine any 
 " question or dispute which may arise with respect to the terminal 
 " charges of any Railway Company, where such charges have not been 
 *' fixed by any Act of Parliament, and to decide what is a reasonable 
 " sum to be paid to any Company for loading and unloading, covering, 
 " collection, delivery and other services of a like nature ; any decision 
 " of the Commissioners under this section shall be binding on all Courts 
 " and in all legal proceedings whatsoever." 
 
 _:.. 
 
KAILWAY EATES 
 
 ENGLISH AND FOEEIGN. 
 
 BY 
 
 J. GRIERSON, 
 
 GENERAL MANAGER OF THE GREAT WESTERN RAILWAY. 
 
 SYNOPSIS OF CONTENTS. 
 
 INTRODUCTION. The principle upon which Rates should be based Cost of Service 
 E4ual Mileage Rates Differential Rates Grouping, here and on the Continent- 
 Differential Rates on the Continent The Interest of Consumers in Rates The real 
 Basis of Rates New Classification TermiQHl Charges The Construction of Railways 
 in England and 01 the Continent Working of English and Continental Railways- 
 Comparative facilities afforded by tharu High Rates and their effect on Trade Pro- 
 posals for fixing Rates by Railway Commission Conciliation Courts Railway Amalga- 
 mationRailways and Canals Conclusion Appendices Comparison between English 
 ana Foreign Rates Comparison of Railway receipts from Merchandise and Mineral 
 traffic Tariffs and Conditions for the conveyance of Merchandise traffic in Holland, 
 Belgium, Germany and France Toll and maximum rate clauses in Railway Acts. 
 
 LONDON : 
 
 EDWARD STANFORD, 55, CHARING CROSS, S.W. 
 
 1886. 
 
OPINIONS OF THE PEESS. 
 
 " There may be a difference of opinion as to some of the conclusions 
 expressed in Mr. Grierson's interesting book ; there can be but one opinion 
 
 as to its value and its opportuneness The vast foreign 
 
 literature relating to railways, of which too little is known in this country, 
 has been made use of. Obviously, the volume is by far the best statement 
 of one side of the railway problem ; it is in every respect the clearest and 
 
 ablest exposition of the railway companies' case To members 
 
 of Parliament and others interested in this subject the volume will be 
 very valuable. It may not alter their present opinions ; but henceforth 
 the subject must bo discussed with somewhat now arguments and in the 
 
 light of new facts It is enough to say that the book will 
 
 probably be consulted by all persons claiming a right to speak on these 
 questions ; that the critics of railway administration in England will be 
 ready to own that they have profited by it ; and that the case of the rail- 
 way companies has never before been stated so clearly, consecutively, and 
 reasonably." Times, December Uth, 1886. 
 
 "To an economic question which yields to few in its pressing impor- 
 tance, a valuable contribution has been made in a work by Mr. Grierson, 
 General Manager of the Great Western Railway Company, entitled ' Kail- 
 way Kates : English and Foreign.' (Edward Stanford.) .... 
 "\Vhether in regard to argument or statistics the volume is one which no 
 railway reformer can afford to neglect." Daily Telegraph, December Wth t 
 1883. 
 
 " Certainly no better contribution could be readily made from the side 
 of the Kailways, so clear is the writing of this little book, and so well 
 
 arranged are the facts On the whole, the book will no doubt 
 
 serve its purpose of hastening a reasonable settlement. The sooner the 
 public understand that the point of view of the directors is tenable, the 
 sooner will the inevitable compromise be sanctioned." Daily News, 
 December 15th, 1886. 
 
 " It would be an advantage if, before the question of railway rates 
 is again brought before Parliament, as it will be in the course of next 
 session, all who are to take part in its discussion would road with care the 
 case for the railway companies as it has been presented by Mr. Grierson in 
 
 the book now before us Mr. Grierson writes with such 
 
 an abundant knowledge of h's subjects, and sets forth so clearly the difficul- 
 ties attending any attempt to regulate rates, that no one who reads it 
 intelligently can fail to rise from the study of his book with a better 
 understanding of the complex problem with which it deals, and better able 
 
 to assist in its solution Of Mr. Griorson's book as a 
 
 whole, it may be said that, although it is not a vindication of the railway 
 companies, it shows that, in the main, they are serving the country well, 
 and abundantly proves that any active interference by outside authori- 
 ties in the details of their management is far more likely to prove harmful 
 than beneficial." Economist, \.%th December, 1886. 
 
 " As the best that can bo said on behalf of the Companies, this volume 
 is invaluable : it is the ablest statement of the case which wo have seen. 
 
 It is full of useful information, and by reason of its facts, 
 
 figures, and appendices, it is a volume which we cannot too highly esteem." 
 JBullionist, 2Mb December, 1886. 
 
 " Mr. Grierson's book on Railway Rates : English and Foreign,* can- 
 not be regarded as other than a valuable contribution to a most important 
 subject. The book bristles with facts and figures, that the of unquestionable 
 interest." Scotsman, December 20 M, 1886. 
 
" The much vexed questions of terminals, mileage and uniform rates, 
 differential and other charges in connection with railway management are 
 discussed from a thoroughly practical point of view, and the facts and con- 
 clusions "brought forward cannot but have a most salutary effect in removing 
 unfounded prejudice, and creating a sounder public opinion with respect to 
 
 the railways of the United Kingdom The work now before 
 
 us will, at all events, leave the critics without excuse if they are not better 
 informed on the subject upon which they speak and write with such copious 
 fluency and limited knowledge." Railway News, December llth, 1886. 
 
 " In the mass of publications on the subject of railways, both at home 
 and abroad the magnitude and character of which tend to bewilder rather 
 than enlighten this book of Mr. Griersou's, although conceived in a spirit 
 of defence simply, has developed into a powerful instrument in the cause of 
 justice a careful compilation of facts, many of which have hitherto been 
 inaccessible, and an exponent of opinions wnich cannot fail to carry weight, 
 even though it may be said that they emanate from an interested source. 
 Such is the wide survey which the author makes of the situation, that 
 although he disclaims any idea of removing the many misconceptions in 
 circulation, or of affording an answer to all the charges which have been 
 made against railway companies, he has taken a step which will go far 
 
 towards accomplishing both these objects We may commend 
 
 the work with its appendix to the careful reading of all who are desirous of 
 arriving at a sound and equitable solution of the great railway problem 
 which at this moment is a matter of importance and interest to all sections 
 of society." Railway Times, December 18th, 1886. 
 
 " The publication of a volume entitled ' Railway Rates : English and 
 Foreign,' by Mr. J. Grierson, the General Manager of the Great Western 
 Railway, in which the case for the Railway Companies is fully and ably 
 stated, is a matter for genuine satisfaction." Manchester Guardian, December 
 21st, 1886. 
 
 " On all such points as terminal charges, high rates, and their effect on 
 trade, railway amalgamation, equal mileage rates, grouping here and on the 
 continent, Mr. Grierson's volume will be Jound of much value, while it will 
 undoubtedly help to clear up certain misconceptions, and ought to prevent 
 the adoption of theories as to the fixing of rates, which could only be in- 
 jurious to trade, as well as contribute to an equitable and satisfactory 
 settlement of many railway questions now much discussed." Liverpool 
 Mercury, December 2oth, 1886. 
 
 " Mr. J. Grierson, General Manager of the Great Western Railway, 
 has just rendered a really excellent service to the mercantile community 
 and to those outside that category if there be any such who are 
 interested in the question of railway rates and charges and the numerous 
 cognate subjects which evolve out of that vastly important question . . . 
 . . . To appreciate the work that the author has accomplished, the book 
 requires to be studied in its entirety, especially bj- all who aim at 
 thoroughly comprehending one of the most important subjects of the 
 day." Glasgow Herald, December 17th, 1886. 
 
 " Mr. Grierson's book will be useful to all who desire to understand 
 what can bo said in favour of the existing system." Bristol Evening News, 
 December 10th t 1886. 
 
 "Under this title Mr. Grierson publishes an exhaustive, able and 
 dispassionate resume of all the conflicting statements, claims, and interests 
 verging round the much vexed question of Railway Rates We 
 
have drawn freely on the materials which Mr. Grierson has so seasonably 
 brought together, and we can only hope that the many who take an interest 
 in the question will thereby be tempted to seek the further information at 
 first hand." HerapatVs Journal, December llth, 1886. 
 
 " No doubt he will fail to satisfy all who believe that the present rates 
 require revision, but he must convince every reasonable person everybody 
 who is not blinded by ignorant prejudice that there is a great deal to be 
 said on behalf of the railway companies." Figaro, December 25th, 1886. 
 
 " This is not an attempt to prove that all is for the best in the best 
 possible of railway systems; but simply to shew that some of the charges 
 brought against the companies are erroneous, others exaggerated, and many 
 of a contradictory character. We are further reminded that the question of 
 reform is extremely complicated, and warned against that 'vague, 
 uninstructed notion' that 'something must be done,' which has been the 
 bugbear of statesmen as well as directors. Hasty legislation should the 
 moro be deprecated that there is ' a fashion in so-called railway 
 
 reform As to details, Mr. Grierson certainly brings out a 
 
 number of facts which make for caution in drawing conclusions. Thus the 
 figures quoted on pp. 144-48 seem to offer reasonable evidence that the 
 exportation of iron and coal is not prejudiced by the railway rates charged 
 in England as compared with those charged abroad ..... Another 
 fact to be borne in mind : the average dividend on English railways 
 amounts to no more than 4*02 per cent., or two-fifths of the dividend which 
 in 1844 it was considered the railways should pay." St. James's Gazette^ 
 January 1st, 1887. 
 
 " His figures have been procured from many sources at home and 
 abroad, and they are so handled as to afford very material support to the 
 case of the British Companies. As a defence of these companies Mr. 
 Grierson' s book is by far the best statement of that side of the question 
 which has appeared, consequently it is entitled to respectful and serious 
 consideration at the hands of those who are not counted amongst the thick - 
 and-thin partisans of such companies as at present managed. In saying 
 this, we do not desire to convey the impression that Mr. Grierson's facts 
 and figures represent solely ex parte advocacy of the companies ; on the 
 contrary, the book contains a large amount of information as to foreign 
 rates, which has not previously been succinctly presented to English 
 readers." Ironmonger, December 26th, 1883. 
 
 "In his able and exhaustive work just issued Mr. Grierson has stated 
 the case for the companies completely, though concisely. He has, in fact, 
 produced a book which must take rank as an authority upon the subject, 
 and one with which it behoves everyone who pretends to an opinion upon 
 
 the matter to be well acquainted There are in this book 
 
 arguments which must be answered, and facts and figures that will have to 
 be faced by those who urgently call for measures of railway reform and 
 reduction of railway rates. The work, indeed, though full is fair, and its 
 publication should and will do much towards settling a long- vexed question 
 upon some reasonable terms of compromise." Liverpool Guardian Society's 
 Weekly Circular, December 31st, 1886. 
 
 "The work which Mr. Grierson, the General Manager of the Great 
 Western Railway Company, has just published on railway rates is a par- 
 ticularly able production, and its appearance now is very opportune . 
 . . . Mr. Grierson's contribution to the discussion of the question 
 abounds in facts and arguments, stated with a clearness and fairness 
 
6 
 
 which do much to prepossess the reader in favour of the cause which is 
 so ably and reasonably represented. Many people will on reading this 
 book obtain for the first time something like a correct view of the 
 position really taken up by Eailway Companies, and ths arguments with 
 which they are prepared to support it. Many misconceptions will be 
 removed, and the most energetic opponent of the present policy of the 
 Companies will feel that there are, at any rate, two sides to many phases 
 of the controversy ..... On the whole a strong case for the 
 Eailway Companies is made out." British Trade Journal, 1st January, 
 1887. 
 
 " The most effective contribution to the controversy that has yet 
 been made from the Eailway Managers' point of view, is a work on 
 'Eailway Eates, English and Foreign,' by Mr. James Grierson, the General 
 Manager of the Great Western Eailway, recently issued by Mr. Stanford. 
 Mr. Grierson, it is needless to say, is a skilled exponent of official views, 
 and he has fortified himself with an immense mass of information drawn 
 from Germany, France, Belgium and Holland, which he marshals in the 
 most effective manner possible, with a view to rebutting the arguments 
 of those who hold up the continental systems as models for England to 
 copy, or who contrast continental railway rates with British rates to 
 show under how much more favourable conditions continental manufac- 
 turers work than their competitors in England. It may be frankly 
 confessed that Mr. Grierson shows that no close comparison can with 
 justice be made between the charges upon railway systems that have 
 been brought into existence, and are worked under conditions differing 
 widely in every respect from those that have prevailed in England . . 
 . . . Mr. Grierson' s comments and criticisms are weighty and practi- 
 cal, and in the matter of differential rates and terminal charges, those 
 who dissent from his opinions will not find his arguments easy to 
 meet." Liverpool Daily Post, 8th January, 1887. 
 
 " This is a very fine work by Mr. J. Griorson, General Manager of the 
 Great Western Eailway. It is essentially a merchant's and ship >wner's 
 book, and a copy of it should be in every counting house. If such works 
 were studied by merchants and merchants' clerks a little more, a good deal 
 of ignorance which prevails on the subject of British and Foreign Eailway 
 rates would be cleared away ...... We cannot too highly com- 
 
 mend this work to the mercantile community." Hull limes, 8th January, 
 1887. 
 
 " Now the public have the opportunity of hearing the Eailway Com- 
 panies' counsel. Mr. Grierson's position enables him to back his arguments 
 wilh a copious array of facts ...... On the audi alternm partem 
 
 principle all the assailants of the present rates and working should make it 
 a point of duty to read what Mr. Grierson has to say, for those who under- 
 take to judge a righteous judgment it is absolutely essential to be acquainted 
 with his facts and references, and even for those who prejudge, it is con. 
 venient to know what is the line of defence." Birmingham Daily Post, 
 7th January, 1887. 
 
 " Quite worthy of the position and traditions of the line he manages 
 is Mr. Griorson's recent book on Eailway Eates, English and Foreign,' 
 which from its admirable arrangement, lucid language and courteous if 
 vigorous tone of controversy, deserves to become a commercial classic." 
 Birmingham Daily Gazette, 10th January, 1887. 
 
" To an economic question which yields to few in its pressing impor- 
 tance a valuable contribution has just been made by Mr. Grierson, General 
 Manager of the Great Western Railway, entitled ' Railway Bates, English 
 and Foreign.' "Wednesbury Herald, 18th December, 1886. 
 
 "Mr. Grierson now comes forward in a new character, the literary 
 champion of British Railway Companies in reply to the severe criticisms on 
 our own Railway liates, in comparison with those prevailing on the Con- 
 tinent He has said much and said it well ; and indeed he 
 
 has shewn himself an able advocate for the great interest he represents. 
 
 The volume is a complete storehouse of facts and figures 
 
 He has clearly defined the lines of the controversy, he has told with 
 admirable effect what the Companies have to say." Weekly Bulletin, 25th 
 December, 1886. 
 
 " Mr. Grierson's contribution to the controversy respecting Railway 
 Rates is of a valuable character, stating the case on behalf of the Com- 
 panies plainly and clearly, and adducing very strong arguments and a vast 
 array of facts and figures in support of the position they have taken up . . 
 
 The subject of differential rates is treated most exhaustively 
 
 The question of Terminal Charges is exhaustively discussed by Mr. 
 Grierson." Bristol Mercury, 8th January, 1887. 
 
 Mr. J. Grier-on has written a most interesting defence of the pressnt 
 system of Railway Management It is seldom that so read- 
 able a work is issued on a subject so apparently dry There 
 
 are many other interesting features in this work, and none more so than 
 the comparisons of the workings of English and Foreign Railways." 
 Bristol Times and Mirror, 6th January, 1887. 
 
 " I should advise all who can to obtain this little work and read it. 
 It is quite a text book of railway management, and I must say that while 
 I sat down to read it with a strong prejudice against the railways, I 
 found it had gone long before I had finished it. It gives, in very fair 
 style, that ' other side ' which Englishmen always like to hear." 
 "jGT. F. M. Farmers Column" Bristol Times and Mirror, 15th January, 
 1887. 
 
 ' ' Mr. Grierson has done excellent service to the railway interest as 
 well as to the public, by the preparation of this very useful and complete 
 
 work The opinions expressed as to the principle upon which 
 
 railway rates should be based are indisputably sound For 
 
 more complete information and facts upon other matters of great impor- 
 tance to the railway companies and the public generally, we commend to 
 our readers notably to those who profess to be dissatisfied with the 
 present state of affairs a careful study of this work. Some chapters on 
 the comparison of the working of English and Continental railways are 
 specially deserving of attention, and the facts given are well calculated to 
 remove much misapprehension which appears to exist on the subject." 
 Railway Record, loth December, 1886. 
 
 " Mr. James Grierson has laid the railway world under a deep obliga- 
 tion by the publication of * Railway Rates, English and Foreign.' . . . 
 The facts and arguments, presented in clear, firm, incisive language, cannot 
 fail to impress, instruct, and interest whoever this vast question in any 
 way affects." Railway Official Gazette, January, 1887. 
 

 
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