Whatever the precise conditions under which they acquired control, the railway companies were compelled by Parliament to incur obligations in regard to maintenance which have had the effect of continuing the existence of many a little-used waterway that would long ago have become hopelessly derelict if it had remained under the control of an independent canal company, instead of being kept going out of the purse of a powerful railway company in accordance with the statutory obligations imposed by Parliament.
These obligations were, of course, based on the principle of ensuring competition even though canals and railways passed under the same control, the former being supported and kept more or less efficient out of the revenues of the latter. This policy, however, was regarded as only an alternative to another, to which Parliament gave the preference—that, namely, of maintaining, if possible, a still more effective competition by strengthening the position of the canals, now the weaker of the combatants in the economic struggle, and enabling them to continue their independent existence, in preference to seeking absorption by the railways.
In 1845 an Act (8 & 9 Vic. c. 28) was passed, the preamble of which, after alluding to the provision in the Railway Clauses Consolidation Act, 1845, giving power to railway companies to vary their rates, declared that "greater competition, for the public advantage, would be obtained" if canal companies, etc., were to have like powers granted to them in respect of their canals, etc.; and the Act therefore conferred upon them the necessary powers for varying their tolls.
The preamble of another Act passed in the same Session (8 & 9 Vict. c. 42) recited the powers given to railway companies as carriers of goods on their own lines, and stated that "greater competition, for the public advantage, would be obtained if similar powers were granted to canal and navigation companies." The Act accordingly extended to them the same powers. With a like object, and again adopting the principle sanctioned in the case of railway companies, the Act further authorised canal companies to make working arrangements between themselves, and, also, to lease their canals to other canal companies, with a view to a better provision of through water routes, and, consequently, a more active competition with the railways. Two years later another Act (10 & 11 Vict. c. 94) was passed, giving the canal companies power to borrow money for the purposes here specified.
In his presidential address to the Institution of Civil Engineers in 1885, Sir Frederick Bramwell, dealing with various matters relating to the transport conditions of the country, said: "This addition to the legal powers of the canal companies made by the Acts of 1845 and 1847 has had a very beneficial effect upon the value of their property, and has assisted to preserve a mode of transport competing with that afforded by the railways."
It is true that the powers to act as carriers were taken advantage of by leading canal companies, who worked up a good business as carriers, although, to a certain extent, with a result directly at variance with the widely accepted view that canals should carry heavy and bulky commodities, and railways the lighter and more compact goods. What actually happened was that the canal companies, as carriers, competed with the railways in the transport of domestic supplies, while the railways still carried most of the coal, iron-stone, etc., for which many people supposed that canal transport is specially adapted.
While, however, as the result of these particular powers, some of the canal companies improved their financial position, and were enabled to maintain a better competition with the railways, very little use was made of the authority given to them to combine among themselves and establish through routes, converting series of small canals into connected waterways under one and the same control, if not actually owned by one and the same company, as was being so actively done with the railways.
Some action had certainly been taken in this direction. The Birmingham Canal system of to-day is composed of three canal companies which had amalgamated prior to 1846, supplemented by a fourth which joined them in that year. The Shropshire Union, also, is formed of four canal companies originally independent. But these are only exceptions to the rule, for though the Joint Select Committee of 1872, following up what had already been done at an earlier period, recommended that the utmost facilities should be given for amalgamations between canal companies, few of such amalgamations have, as the Final Report of the Royal Commission on Canals and Waterways points out, taken place since the full establishment of railways. Goods sent to-day by canal from Birmingham, for instance, to London, to Liverpool or to Hull will pass over waterways controlled by from six to eight different authorities, according to the route followed.
One must, however, recognise the fact that the securing of uniformity of gauge and the establishment of through routes presented far greater difficulties in the case of artificial waterways than in that of railways. The physical geography of England is wholly unfavourable to efficient cross-country water transport, and this fact, in itself, is sufficient to render impracticable any such scheme of canal resuscitation as that which has been put forward by the recent Royal Commission.
The physical condition of England in relation to the building of canals is well shown in the article on "Canals" published in "Rees' Cyclopædia" (1819) where it is said, in this connection:—