The interesting analysis of the resources of the different orders of the community contained in Mr W. H. Mallock’s ‘Classes and Masses’ supplies tolerably conclusive evidence that the results of mining and railway enterprise have been distributed not very unequally between the rich and the poor, or, as Mr Mallock rather puts it, between income tax payers on £1,000 or upwards a year and those who, earning less than £150 a year, pay no income tax at all. His estimate is that the population of England contains seven hundred thousand families, equal to a total of three million souls, ‘with means of subsistence, insufficient, barely sufficient, or precarious.’ Although these figures represent the entire population at the Norman conquest, Mr Mallock is able to show that relatively to all inhabiting this realm the necessitous class has decreased, not increased. In the seventeenth century, one-third of the dwellers in Sheffield, then (1615) as to-day a great manufacturing centre, were dependent on charity. Thirteen years after the Queen’s accession (i.e. 1850), out of every two hundred of our population nine were paupers. In 1882 the proportion of pauperism was only five. Between 1850 and 1897 the population has increased from twenty-eight millions to thirty-eight millions. The income-tax payers have increased from one million and a half to nearly eight millions.[8] Incomes between £150 and £1,000 have increased from three hundred thousand to nine hundred and ninety thousand. Incomes above £1,000 have increased from twenty-four thousand to sixty thousand; or, as this authority finds it more convenient to put it, the middle class has grown by six hundred and ninety thousand. The rich have been re-inforced by only thirty-six thousand. On the other hand Mr Mallock is able to dispose of the fallacy that during the present reign the very richest class have grown richer still. In 1850 the incomes of fifty thousand pounds and upwards were seventy-two thousand; in 1897 they are nearer a hundred thousand; thus while the fairly well-to-do middle classes have increased by hundreds of thousands, the professional plutocrats measure their increase only by a few simple thousands. Briefly summarized, the arithmetical argument of Mr Mallock is as follows. In 1800 the whole wealth of the country was two hundred and forty million pounds. Of that amount the workers took one hundred and eleven million pounds, leaving for the middle classes and the rich one hundred and thirty million pounds. Three quarters of a century later, or more exactly in 1881, Mr Mallock’s latest date, making his argument still more applicable to 1897, the total of national wealth was one thousand three hundred millions. Of this the workers had six hundred and sixty millions. The working classes had thus, from being twenty millions behind the rich at the opening of the century, advanced twenty millions beyond the rich towards its close. From these figures, the inference is fair, and indeed irresistible, that railways like other inventions have contributed to the material prosperity of all classes equally, and have not enriched the capitalists alone.
Notwithstanding George Hudson, who has become merely a memory, or Charles Guernsey, the stockbroker’s clerk who was his lowly imitator, the railway plutocracy would seem to be a phrase more full of sound than of practical meaning. If to this remark the name of Vanderbilt be objected, the true facts of the case rather confirm than disprove the present remark. ‘Commodore’ Vanderbilt was a rich man before he ever owned a railway share. He sold a fleet of steamers to purchase control of the New York Central Railway. Had he invested the capital realized by this preliminary transaction in any of the industries of his nation, such as the tinning of beef from a cattle ranche in California, or the curing of bacon at Chicago, he might have made the same or an even larger fortune. Railway diplomacy was only the accidental employment of Mr Vanderbilt’s extraordinary genius for creative finance. The same talents exercised upon any other material, or expended in any other career could scarcely fail to have commanded same results. In another department of the industry afforded to intellect by the steam locomotive, Charles Austin made two fortunes out of railway Bills. His abilities as an advocate were probably unequalled among the generation to which he belonged. Since Austin’s day lawyers of the same, or something like the same capacity have amassed wealth not inferior to Austin’s out of electric patents practice, or in other branches of law which have been specially in request at the moment. While the railway fever of the forties was at its height, a little man with an intellectual head covered by a proverbially shabby hat might often of an afternoon have been seen walking down Parliament Street. He never failed to bestow a copper upon the crossing sweeper at the point where the Home Office stands to-day. Formerly the contractor usually lavished on the man a four-penny bit. But times were bad. The vail was reduced to a quarter of that amount. The donor humorously anticipated the day when he might be glad of a reversionary interest to the broom and shovel employed outside the Horse Guards. That calamity, which of course never seriously threatened, was averted. The little gentleman with the ostentatiously neglected head-gear, Thomas Brassey, was a millionaire long before he built his last railway. But his contemporary, Thomas Cubitt, made the same fortune out of building Belgravia. Railways have also often enriched the landowners through whose estates the lines have run. So high an authority as Mr Samuel Laing holds that the owners of the soil have been over compensated by the companies generally for the acquisition of their land. To this, however, the country gentlemen would reply that in countless instances they have received no more than the agricultural value for their acres.[9] Certainly the profits of this class from railways have not exceeded the gains which have accrued from the selling or leasing of other property for building purposes. The railway interest, then, as a phrase scarcely points to the existence of railway shareholders as a caste or even a separate class. Railway shares, as the statistics above quoted show, are distributed in fairly equal proportions through all classes of the community. The learned professions, especially the Church, are represented as well as the State or capital in these proprietorial bodies. In the great majority of instances, the separate sums held are small. Thus, ten years ago, the London and North Western Railway with its ninety millions of capital had about thirty thousand debenture and stock holders. Three thousand pounds scarcely represent what could be regarded as a plutocratic investment. As for the men who were the early captains of railway industry, they none of them secured more than modest competences. Vignoles, Stephenson, Brunel, Hackworth, Allport, Cawkwell, Grierson; none of these founded, none of their descendants are likely to found, territorial families. Sir Daniel Gooch, so long the chairman of the Great Western, left six hundred thousand pounds to his posterity. The greater portion of this sum was made, not in railways, but in coal and in telegraphs. Sir Edward Watkin, who is still with us, and to whose enterprise neither the mountain precipice nor the realm of air is inaccessible, has perhaps been not less prospered. It would not however be easy to multiply instances of railway opulence like these.
On the other hand Arkwright of the spinning jenny has founded two rich county families. His rival, Hargreaves, established another. The true conclusion on this subject seems to be that the wealth invested in our railways is only one, if the most conspicuous manifestation of the wealth of the community. No better summary of the facts could be found than the shrewd phrase into which George Stephenson condensed the whole subject. ‘The country made the railways, and in return the railways made the country.’ The prosperity of the manufacturing classes which has coincided with the Victorian era provided the money that built the railways. In return the early development of our railway system enabled us to get so far in advance of Continental nations as merchants and manufacturers that our rivals have not yet caught us up, and perhaps never will.
The future development of the English railway system may be a tempting and instructive topic for speculative experts, but is not for a general survey, such as the present. The issues between traders and framers of railway rates for the carriage of merchandise are periodically expressed in the demand for the acquisition of the iron roads, like the telegraphic wires, by the State. The mighty sections of the Anglo-Saxon race on either side of the Atlantic present the two great exceptions to the State proprietorship or State control of the public locomotives. Seeing that half the railway mileage and capital of the world belongs to the United Kingdom and to the United States, these exceptions are themselves of considerable importance. The incorporation of the railway systems of the United Kingdom into the national service would, it has been calculated, involve the doubling of the annual Budget, and an addition to the permanent Civil Service of five per cent, of our male population. If this estimate be correct, it seems likely that a Minister of the Crown will think even more than thrice before he seriously proposes the assumption of such a responsibility by himself and his colleagues.
Apart from his general obligations to the work on Railways (2 vols. Cassell & Company, 1894, by Mr John Pendleton), the writer expresses his grateful acknowledgment for valuable help in this portion of his work privately received from Mr Acworth, the great authority on modern railways throughout the world, and from Mr A. J. Wilson, the eminent writer on financial and commercial topics.
CHAPTER IV
THE ARISTOCRACY OF WEALTH AND ITS MANIFESTATIONS
Contrast between the London of the forties and the London of to-day. Gas and steam chiefly mark the century. City traders still living at Islington. The theatre not yet an institution. The parks still uncared for. Thames pollutions still recall Dickens’ description of Quilp’s home. The future South Kensington cabbage beds or waste ground. Absence of enormous fortunes outside commercial millionaires. Evidence of increasing national prosperity afforded by statistics of picture sales. The growth of these sales from Charles I. till to-day. The Beckford, the Horace Walpole and other sales. Gradual rise in value of great masters. Memorable sales and personages at Christie’s. Gainsborough’s Duchess of Devonshire episode.