A History of Inland Transport and Communication in England

by Edwin A. Pratt

The position in regard to a new and uniform classification thus so persistently recommended was, however, complicated by the fact that the adoption thereof would involve new maximum rates, since the rates charged for the commodities carried naturally depended on the particular "class" to which those commodities had been allotted. Hence when, by the Railway and Canal Traffic Act of 1888, provision was at last made for a revised and uniform classification, each railway company was further required to submit to the Board of Trade, within a period of six months, revised schedules of maximum rates, with a view to these ultimately—after approval by Parliament—taking the place of the schedules in the existing special Acts. The new scales were, also, to include fixed maxima for "station terminals" and "service terminals," the controversy in regard to which, as already spoken of, was thus to be definitely settled.

The railway companies complied with these requirements, the revised classification and schedules of maximum rates being sent in by March, 1889, to the Board of Trade, which appointed two special Commissioners, Lord Balfour of Burleigh and Mr (afterwards Sir) Courtenay Boyle, to hold an inquiry into them on its behalf. The traders were invited to send in any criticisms they might wish to offer to the companies' proposals, and by June 3rd no fewer than 4000 objections had been received from over 1500 individuals or trading associations.

By this time the formidable nature of the work that had been undertaken began to be more fully appreciated. Not only were there the 900 Railway Acts dealing with rates and charges, but there were about 18,000 railway stations and some 40,000 pairs of stations between which business was actually transacted in regard to one or more of the 2500 articles that, by this time, were included in the Clearing House classification. As for the rates in force, we have the statement of Sir Henry Oakley that on the Great Northern Railway alone they numbered 13,000,000, while Sir Richard Moon estimated that on the London and North-Western Railway the total at this period was no fewer than 20,000,000.

The task thus imposed by Parliament on the Board of Trade in the revision of rates whose total number seemed almost as countless as the stars themselves was, indeed, of stupendous magnitude, apart altogether from the very heavy labours devolving upon each individual company in the preparation of schedules for its own particular lines. The task itself was, however, rendered still more difficult by the fact that, as pointed out by Mr Temple Franks—[^[53]]

"No principles of revision had been laid down for guidance. The Commissioners were not told to regard either the existing statutory maxima or the actual rates then charged. Amendments to this effect had been rejected in Parliament. The Commissioners, therefore, held that the Legislature contemplated a departure from existing maxima, and that it is equitable 'to make a reduction in their present powers and fix rates based to a great extent on existing rates, but with a reasonable margin of profit for possible changes of circumstances injuriously affecting the cost of or return from the carriage of merchandise by railway.' In determining, however, the principles upon which the future maxima were to be governed, they refused to accept the proposition that they shall cover all existing rates and non-competitive charges."

With regard to a uniform classification, the Commissioners recommended the adoption, with certain slight changes, of the existing Clearing House classification.

There is no need to record here, in detail, the exhaustive nature of the inquiries, protests, rejoinders, discussions and controversies to which the preparation of the new schedules led. Suffice it to say that these and the revised classification were eventually embodied in a series of Railway Rates and Charges Orders Confirmation Acts which, as applying to the different companies, either individually or in groups, were passed in the Sessions of 1891 and 1892, and came into operation on January 1, 1893. Under these Acts the scales of charges are divided into six parts, viz.: (1) goods and minerals, (2) animals, (3) carriages, (4) exceptional, (5) perishable commodities by passenger train, and (6) small parcels by merchandise train. Each rate is made up of two parts—conveyance and terminals. The conveyance scales for all companies are as near alike as circumstances will allow, and the maximum terminals (station terminal at each end and service terminals in respect to loading, unloading, covering and uncovering) are common to all the Confirmation Acts.

Sir Henry Oakley, who was at this time acting as secretary of the Railway Companies' Association, declared concerning the new conditions thus brought about in regard to the bases of railway rates and charges that "practically they amounted to a revolution." The maximum powers were reduced almost universally; the classifications of the companies' own Acts were abolished, and a new and uniform one substituted; various new scales were introduced; the obligation was now for the first time thrown upon the companies of carrying perishables by passenger train; and a new system of calculating rates was established. "It was not," said Sir Henry, "so much per mile for any distance beyond six miles, as it was in the original Acts, but for the first twenty miles a certain rate, for the next thirty miles a certain less rate, and for the next fifty miles a still further reduction, the effect being that, by that mode of calculating, the longer the distance the goods were carried the less the average rate per mile that was to be charged."

Within a very short time, however, of the new rates coming into force, there were louder and more vehement protests than ever on the part of the traders. The advantages of a uniform classification were fully realised, and the traders naturally did not object to the fact that (as stated in evidence by Sir Henry Oakley, in 1893), from thirty to forty per cent of the existing rates had been lowered. But they did object most strongly when they found that certain of the rates had been increased.

It was explained by some of the railway companies that, owing to the vast number of the rates involved, and to the short time between the passing of their Rates and Charges Orders Confirmation Act and the 1st of January, 1893, when such Act came in force (the period in question being in some instances not more than about four months), it had been impossible for them to complete the revision of their rate-books by the date mentioned. The class rates were ready, and what had happened was that these had been temporarily substituted for the special rates when time had not allowed of the latter being duly revised.