Part 12

So much for the grounds put forward to justify a reduction of rates. Far from proving that working expenses 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.

[78] The “Statistische Nachrichten Von den Eisenbahnen” shows an average of £39 6s. 5d. 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 0 Workmen 34 4 0 Workshops. Superintendence, Clerks, &c. 95 0 0 Workmen 45 12 0 An average of £53 8s. 0d. 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.

_Rates and Taxes on Railways in England and on the Continent._

A large item in the expenses of railway companies in this country is the amount 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), 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 £287,430.

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. Indeed, Article 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.[79] Although 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, is heavy, and amounted in the year to £4,683,937.

The other taxes paid by the railway companies themselves, or by the holders of shares, &c., amounted to £1,490,415, making together a total for the year of £6,174,352.[80]

[79] See “Aucoc, Cours d’Administration,” vol. 3, p. 345.

[80] The taxes in France consist of:--

1. A duty of frs. 23·20 per cent. on passenger fares and _grande_ _vitesse_ traffic, added to the railway charges, amounting to £3,436,164. 2. A stamp duty of 35 cents. on “_recépissés_” and 70 cents. on consignment notes, also charged in addition to the rates, amounting to £1,116,588. 3. A stamp duty of 10 cents, 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.

Such are a few of the differences in the position and rights of English and Continental railways, and those who depreciate the former should explain whether they wish to adopt all the practices of foreign lines--the features unfavourable 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.

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 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 companies 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[81] differential rates operate in favour of the foreign producer, and that works are being removed from inland to seaboard towns to save carriage.[82] Obviously this grievance could be wholly abated only by free carriage; producers on the sea coast, near points of shipment, inevitably possess certain advantages. These again could only be materially reduced by differential rates somewhat lessening the inland producer’s geographical disadvantages; and to this remedy the persons loudest in their complaints 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 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.”[83]

[81] Mr. L. Cohen--Debate on Railway and Canal Traffic Bill, 6th May, 1886.--Hansard, vol. cccv., 428.

[82] See Second Report, Minutes of Evidence, Mr. Muller, page 38, Q. 1889.

[83] Compare Sir Lowthian Bell’s statement. “The results of my enquiry on the continent of Europe, and in the United States, justify 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 Depression of Trade, pages 345-361._)

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 comparison of a few of the rates charged for coal and iron in England with those to Belgian and German Ports:--

COMPARISON OF RAILWAY RATES CHARGED FROM VARIOUS BELGIUM AND

+-----+--------------+------------+--------+-------------------- | | | | Rate | |Arti-| From | To | per | Remarks. | cle.| | | ton. | -----+-----+--------------+------------+--------+-------------------- | | | | s. d. | ENG- |Coal |Cwmbran |Newport | 0 4⅜ |In owner’s wagons. LAND | | | | | | |Risca |Newport }| 0 6 |In owner’s wagons. | | | (Old Dock)}| | | | | | | | |Flimby |Maryport | 0 6⅔ |In Company’s wagons, | | | | | including tipping. | | | | | | |Camerton |Workington | 0 7 |In owner’s wagons, | | | | | including tipping. | | | | | | |Cockett |Swansea | 0 9 |In owner’s wagons, | | | | | including tipping. | | | | | | |Gilgarran |Whitehaven | 0 10 |In Company’s wagons, | | | | | including tipping. | | | | | | |Dynevor |Swansea | 0 10 |In owner’s wagons, | | | | | including cost of | | | | | shipment. | | | | | | |Coedcae |Cardiff | 0 11½ |In owner’s wagons. | | | | | | |Mountain } |Cardiff | 1 0 |In owner’s wagons. | | Ash } | | | | | | | | | |Felling |Monkwear- }| 1 0¾ |In Company’s wagons, | | | mouth Dock}| | including cost of | | | | | shipment. | | | | | | |Abertillery |Newport }| 1 1 |In owner’s wagons. | | |(Old Dock) }| | | |Londonderry } |Tyne Dock | 1 2½ |In Company’s wagons, | | Colliery } | | | including cost of | | | | | shipment. | | | | | | |Burradon | ” ” | 1 4¾ |In Company’s wagons, | | | | | including cost of | | | | | shipment. | | | | | | |Collieries in}| | | | | St. Helen’s }|Garston | 1 5 |In owner’s wagons, | | District }| | | including use of | | | | | dock and tipping. -----+-----+--------------+------------+--------+--------------------

COALFIELDS TO THE NEAREST PORTS IN ENGLAND, GERMANY.

+--------+-----------+------------+-----------------+--------- | | | | Rate per ton | | | | | of 1000 | | | | | Kilogrammes. | |Article.| From | To +--------+--------+ | | | | 100 | 10 | Remarks. | | | | tons. | tons. | -------+--------+-----------+------------+--------+--------+--------- | | | | s. d. | s. d. | BELGIUM|Coal |Bascoup |Antwerp | 1 7¼ | 2 1¼ |including | | | | | | wagons. | | | | | | | | ” |Ghent | 1 7¼ | 1 10 | | | | | | | | |Jemappes |Antwerp | 1 11 | 2 5½ | | | | | | | | |Mons |Antwerp | ... | 2 4 | | | | | | | | |Charleroi |Antwerp | ... | 2 3 | | | | | | | | |Fontaine- |Antwerp | 2 | 3 | | | l’Evêque | | | | | | | | | | | | | | 50 | 10 | | | | | tons | tons | | | | | | | GERMANY|Coal |Piestag |Bremen | 3 5 | ... | | | | | | | | |Gelsenkir- |[84] | | | | | chen | Amsterdam | 4 11 | 5 9 |For quan- | | ” |[85]Antwerp | 5 3 | 6 6 |tities of | | | | | |200 to 300 | |Gelsenkir- |Hamburg | 5 7 | 7 7 | tons | | chen | | | |forwarded | | | | | |day or by | | | | | |one train, | | | | | |the rate | | | | | | from | | | | | |Gelsen- | | | | | |kirchen to | | | | | |Amsterdam | | | | | |is 4/6 per | | | | | |ton, and | | | | | |to Antwerp | | | | | | 5/- | | | | | | per ton. | | | | | | | | GROUP I. | | | | | | | | | | | |Camen, &c. |Bremen and | | | | | | Hamburg. | 5 6 | 7 1 | | | | | | | | | GROUP II. | | | | | | | | | | | |Bochum, &c.|Bremen and | | | | | | Hamburg. | 5 7 | ... | | | | | | | | | GROUP III.| | | | | | | | | | | |Meiderich |Bremen and | | | | | &c. | Hamburg. | 5 8 | ... | | | | | | | FRANCE |} | | | | | HOLLAND|} No Coal exported. | | | -------+--------+-----------+------------+--------+--------+--------

[84] For quantities of 200 to 300 tons forwarded day or by one train, the rate from Gelsenkirchen to Amsterdam is 4/6 per ton, and to Antwerp 5/-per ton.

[85] For quantities of 200 to 300 tons forwarded day or by one train, the rate from Gelsenkirchen to Amsterdam is 4/6 per ton, and to Antwerp 5/-per ton.

COMPARISON OF RATES FOR

----+--------+--------------+------------+-------+-------------------- | | | | Rate | |Article.| From | To | per | Remarks. | | | | ton. | ----+--------+--------------+------------+-------+-------------------- | | | | s. d.| ENG-|Iron |Workington |Whitehaven | 1 2 |In Company’s wagons. LAND|(Class A.) | | | | | | | | | |Cwmbran |Newport | 1 4 |In Company’s wagons. | | | | | | |Merthyr |Cardiff | 2 2 |In Company’s wagons. | | | | | | |Darlington |Middlesboro’| 1 9 |In Company’s wagons. | | | | | | |Ebbw Vale |Newport }| 1 9⅛|In Owner’s wagons. | | | (Old Dock)}| | | | | | | | |Dowlais |Cardiff | 2 7½|In Company’s wagons. | | | | | | |Briton Ferry |Swansea | 2 6 | | | | | | | |Cwmbran |Cardiff | 2 10 | | | | | | | |Tondu |Cardiff | 3 4 |In Company’s wagons. | | | | | | |Darlington |Tyne Ports | 3 4 |(4-ton lots.) Ditto. | | | | | | | ” |Gateshead | 3 9 |In Company’s wagons. | | | | | | |Tondu |Swansea | 3 9 |In Company’s wagons. | | | | | | |Briton Ferry |Cardiff | 3 9 |In Company’s wagons. | | | | | | |Darlington |Sunderland | 3 9 |In Company’s wagons. ----+--------+--------------+------------+-------+--------------------

IRON AND STEEL GOODS.

----+-----+-----------+-------+----------------------------------------+ | | | | Rate per Ton of 1,000 Kilogrammes. | ----+-----+-----------+-------+----+----+----+----+-----+----+----+----+ |Art- | From | To | | 10 | 5 | >5 | | 10 | 5 | >5 | |icle.| | | |tons|tons|tons| |tons|tons|tons| | | | |s.d.|s.d.|s.d.|s.d.| |s.d.|s.d.|s.d.| ----+-----+-----------+-------+----+----+----+----+-----+----+----+----+ BEL-|Iron |La Louvière|Antwerp| |3 7 | | |Ghent|3 5 | | | GIUM| |Charleroi | ” | |3 8 |5 1 |8 9 | ” |3 8 | | | | |Liege | ” | |3 9 |5 4 |9 9 | ” | | | | | |Marcinelle | ” | |3 8 | | | | | | | | | 10% added if loaded in covered trucks | | | | | | | | | | | | | | | | |

O.= Open. C.= Covered. -----------+-----------+----+---------+---------+---+---------+--------+ Steel in | | | 10 Tons.| 5 Tons. | | 10 Tons.| 5 Tons.| bars and | | | O.| C.| O.| C.| | O.| C.| O.| C.| bundles. +-----------+----+----+----+----+----+---+----+----+----+---+ Iron in | |Ant-| | | | | | | | | | in bars |Chatelineau|werp|3 8|4 4|5 2|6 9| ” |3 8|4 1|5 2|6 9| and sheets|Marchienne | ” |3 8|4 0|5 1|6 7| ” |3 7|4 0|5 1|6 6| unpolished,|Acoz | ” |3 9|4 1|5 4|7 0| ” |3 9|4 2|5 4|7 0| Bandages |Seraing | ” |3 10|4 3|5 5|7 3| ” |4 1|4 6|5 8|7 9| for wheels|Thy-le-Chateau ”|3 9|4 2|5 4|7 2| ” |3 10|4 2|5 4|7 1| Castings, |Athus | ” |4 11|5 4|6 5| | ” |4 11|5 6|6 7| | Rails, Castiron Tubes, Nuts, Bolts, Fish-plates, &c.

+-------------------+-------+-----+-----+-----+-----+-----+ | From | To | 10 | 5 | | 10 | 5 | | | |tons |tons | |tons |tons | -------------+-------------------+-------+-----+-----+-----+-----+-----+ Anchors and |Clabeg |Antwerp|4 3 |5 4 |Ghent|4 4 |5 6 | Cables, |Tubize | ” |4 3 |5 4 | ” |4 3 |5 4 | Carriage |La Louvière | ” |5 0 |6 4 | ” |4 8 |5 11 | brakes, |Monceau-sur-Sambre | ” |5 0 |6 6 | ” |5 0 |6 5 | Springs, |Marchienne | ” |5 1 |6 7 | ” |5 1 |6 6 | boilers, |Chatelineau | ” |5 2 |6 9 | ” |5 2 |6 9 | Ironmongery,|Acoz | ” |5 4 |7 0 | ” |5 4 |7 0 | &c. &c. |Liege | ” |5 4 |7 0 | ” |5 8 |7 8 | |Angleur | ” |5 5 |7 2 | ” |5 8 |7 9 | |Seraing | ” |5 5 |7 3 | ” |5 8 |7 10 | |Thy-le-Chateau | ” |5 5 |7 2 | ” |5 4 |7 1 | |Tilleur | ” |5 5 |7 2 | ” |5 8 |7 9 |

COMPARISON OF RATES[86] FOR IRON AND STEEL GOODS--_continued_.