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 | Import and Export Rates per ton | Local Rates per Ton |
| Manchester | London | Cotton Goods in Bales | 25/- C.&D. | 40/- C.&D. |
| ” | Southampton | ” | 25/- C.&D. | 45/- C.&D. |
| Birmingham | London | Hardware | 25/- C.&D. | 27/6 C.&D. |
| ” | ” | Bedsteads | 22/6 C.&D. | 28/4 C.&D. |
| London | Plymouth | Newspapers and Periodical | 24/2 C.&D. | 37/6 C.&D. |
| Leeds | Hull | Woolen and Worsted Goods | 12/6 C.&D. | 16/8 C.&D. |
| Manchester | ” | Bale goods | 17/6 C.&D. | 31/8 C.&D. |
| Liverpool | ” | Salt Provisions | 12/6 Carted | 20/- in Hull |
| ” | London | Fresh Meat | 25/- a C.&D. | 50/- a C.&D. |
| 30/- b C.&D. | 55/- b C.&D. | |||
| Bristol | ” | American Provisions | 20/- C.&D. | 27/6 X C.&D. |
| ” | ” | Fresh Meat | 20/- a C.&D. | 40/- |
| 25/- b C.&D. | C.&D. | |||
| Hull | ” | Meat and other Imported Goods | 25/- C.&D. | 40/- C.&D. |
a. Exclusive of hampers.
b. 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.
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 Rates per ton | Local Rates per Ton |
| London | Liverpool | Tea from China, India, Japan, under Bond | 25/- C.&D. | 37/6 C.&D. |
| ” | Birmingham | Tea | — | 34/2 C.&D. |
| ” | Manchester | ” | — | 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 withdrawn 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 manufacturers of exported goods, such as manufactured cottons from Manchester, and hardware from Birmingham, to 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.