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RAILWAY RATES:
RAILWAY RATES:
ENGLISH AND FOREIGN. BY J. GRIERSON , GENERAL MANAGER OF THE GREAT WESTERN RAILWAY. SECOND THOUSAND. LONDON: EDWARD STANFORD, 55, CHARING CROSS. 1886. PRINTED BY WATERLOW AND SONS LIMITED, LONDON WALL, LONDON. Transcriber Notes: Obvious spelling mistakes have been corrected. Old or antiquated spellings have been preserved. Errors in punctuation and inconsistent hyphenation were not corrected unless otherwise noted. In the sample contracts, the blank spaces to be filled in have been replaced with
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PREFACE.
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. These 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 tr
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SECTION I.INTRODUCTION.
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 were disclosed. As to principles, there was little agreement; there was, if possible, still less as to details. Charges which h
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SECTION II. THE PRINCIPLE UPON WHICH RATES SHOULD BE BASED.
SECTION II. THE PRINCIPLE UPON WHICH RATES 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
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SECTION III.COST OF SERVICE.
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, nowhere has it been carried out. Obviously cost of conveyance bears no relation to value of goods—the mere transit of some descriptions of very va
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SECTION IV.EQUAL MILEAGE RATES.
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. [7] 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 simp
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SECTION V.DIFFERENTIAL RATES.
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 di
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SECTION VI.GROUPING HERE AND ON THE CONTINENT.
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, grouping 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
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SECTION VII.DIFFERENTIAL RATES ON THE CONTINENT.
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
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SECTION VIII.THE INTEREST OF CONSUMERS IN RATES.
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 differe
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SECTION IX.THE REAL BASIS OF RATES.
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 merchants, 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 probably have made mistakes, and in some cases entered into undue competition with each other, or foster
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SECTION X.NEW CLASSIFICATION.
SECTION X.NEW CLASSIFICATION.
One inconvenience incidental to the course taken by the railway companies has been experienced. The actual classification 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 Railway Rates Committee in 1881 and 1882. Traders, it was said, could only with difficulty ascertain the companies’ powers to charge for goods not enumerated in their Acts. The representatives
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SECTION XI.TERMINAL CHARGES.
SECTION XI.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 impose
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SECTION XII. THE CONSTRUCTION OF RAILWAYSIN ENGLAND AND ON THE CONTINENT.
SECTION XII. THE CONSTRUCTION OF RAILWAYSIN 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 assumption 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 before the Joint Committee of 1872—they have been proved to be erroneous. Nevertheless, they are still constantly repeated. More than once it has been publicly s
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SECTION XIII. WORKING OF ENGLISH AND CONTINENTAL RAILWAYS— COMPARATIVE FACILITIES AFFORDED BY THEM.
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
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SECTION XIV.HIGH RATES AND THEIR EFFECT ON TRADE.
SECTION XIV.HIGH RATES AND THEIR EFFECT ON TRADE.
It is not uncommon to attribute much of the existing depression of trade to rates charged by railways. Before the Royal 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 foun
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SECTION XV. PROPOSALS FOR FIXING RATES BY RAILWAY COMMISSION—CONCILIATION COURTS.
SECTION XV. 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 e
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SECTION XVI.RAILWAY AMALGAMATION.
SECTION XVI.RAILWAY AMALGAMATION.
We now come to a class of criticisms and proposals wholly different from those which have hitherto been considered. 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. [102] Probably for the first time has this suggestion come from such a quarter. Manifestly it is beginning to be understood that
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SECTION XVI.RAILWAYS AND CANALS.
SECTION XVI.RAILWAYS AND CANALS.
Great stress is laid on the importance of canals. Railway 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 imposs
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CONCLUSION.
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 b
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APPENDIX I.COMPARISON BETWEEN ENGLISH AND FOREIGN RATES.
APPENDIX I.COMPARISON BETWEEN ENGLISH AND FOREIGN RATES.
The figures and facts which have been stated prove that, as a rule, no fair, or even useful, comparison can be made between 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
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APPENDIX II. COMPARISON OF RAILWAY RECEIPTS FROMMERCHANDISE AND MINERAL TRAFFIC.
APPENDIX II. COMPARISON OF RAILWAY RECEIPTS FROMMERCHANDISE 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 conveyance of minerals and goods upon the railways of the United Kingdom is one test. Let us take periods of three years:— According to the test of railway receipts for conveyance of mineral
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HOLLAND.
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 in 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
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BELGIUM.
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 Belge had a dis
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GERMANY.
GERMANY.
The Tariff of Rates for the conveyance of Goods Traffic in Germany is divided as follows:— Eilgut. —Goods carried by Passenger Train. Stückgut. —Goods carried in consignments of less quantities than Wagon loads. Class A1.—General Goods in Wagon loads of 5 tons. ” B.—General Goods in Wagon loads of 10 tons. Special Tariff A2. —Goods in 5 ton lots included in Special Classes I., II. and III. Special Tariff I. } ” ” II. } Certain Goods specified in the Classification ” ” III. } in Wag
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FRANCE.
FRANCE.
There is no uniform scale of rates in 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. Classes A, B, C, D, E, F, apply generally to full truck loads only, and for Classes I, II, III, IV, V, and VI. The minimum charge is as for 40 kilos. (88 lbs.), fractions of 10 kilos. being charge
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