There are other important considerations which confirm the view that, if the control of Irish railways were taken away from the Imperial Parliament, and placed under a Parliament sitting in Dublin, and if the general code of railway legislation now binding on both countries could be altered by a Home Rule legislature, results disastrous to the trade between the two countries would probably follow, whether "Nationalisation" were carried out or not.

The Majority Report recommends, as one of the chief objects of "Nationalisation" under an Irish authority, the reduction of export rates, both local and through rates, on the Irish railways, as "essential to the development of Irish industry," and this seems the pet project of a large number of witnesses, and of Irish local authorities. Import and export railway rates are now the same for the same classes of produce, and no Irish railway company could now differentiate between them, without being pulled up by the Railway Commission at the suit of British traders, or British railway companies. The policy suggested is practically to use railway rates as a system of local protection, similar to the existing practice and policy on the continental, and notably the Prussian State Railways. It is easy to see that without any Customs barrier between the two countries, such a policy would inaugurate practically a tariff war between Ireland and Great Britain, which would be disastrous to both. That such a policy should be subscribed to by Free-traders, and that a Free-trade Government should advocate a change in the relations between the two countries, under which such a system could be possible, is indeed surprising. To use Imperial credit for such a purpose would be midsummer madness. Even without any scheme of nationalisation, the establishment of a separate Executive and Legislature in Ireland might have sinister effects on traffic arrangements between Great Britain and Ireland and on the harmonious administration of the railways.

THE RIGHT SOLUTION.

The truth of the matter, and the inference to be drawn from the above considerations and the whole trend of modern trade, is that to break up the railway systems of Great Britain and Ireland into two rival and hostile systems of transit, working for different objects and by different methods, would be to stop a natural and healthy process of uniform working and harmony, which has enormously advanced in the last decade, to the great advantage of Ireland.

Almost every scheme of amalgamation in Ireland has been connected with the opening or development of a new cross-Channel route, as the history of the Fishguard and Rosslare and the new Heysham routes fully shows. As part of this process, English companies, like the Midland and the Great Western, are either acquiring Irish lines or making special traffic arrangements with them. Enormous sums have been spent on harbours and steamers by English companies for the purpose of developing traffic with Ireland, and the increased interchange of goods has been of great advantage to both countries. The ideal put forward by advocates of railway nationalisation and Irish independence, that in respect of trade and traffic Ireland should be a sort of watertight compartment, self-supporting and self-contained, is, I submit, a mischievous delusion which, if put into practice, would undo much of the good progress Ireland has recently made. Such an ideal would also be the exact contrary of the line of national development as based on transit and transport followed in almost every other civilized country. In Germany, Canada, the United States, and Australia, we see the policy consistently pursued of amalgamation, consolidation, and facilities for long-distance traffic, so that between all parts of each State and Empire there shall be the freest and most perfect interchange of traffic. Canada and the United States have been so far inspired by this principle as to spend countless millions first on East and West (and now on North and South) lines, even before there was traffic to carry, and in order to create traffic; and the principle has been justified in its results.

From this point of view St. George's Channel and the Irish Sea should be a means of communication, constant and in every direction, between the two Islands, and not a sort of boundary ditch to be deepened and rendered difficult of passage.

If Ireland wishes to share England's prosperity she must not build up a wall against the credit, trade, and special products of her richer sister. If England wishes to have and to foster a magnificent source of food supply, well and strategically secured against continental foes, she also must do all that can be done to encourage intercourse. To develop traffic between Great Britain and Ireland is the policy which both experience and theory point to as advantageous to both countries; to subvert this policy and make Ireland's commerce local and self-sufficing, seems to be the narrow and mistaken ideal of Nationalist aspirations.

UNIONIST POLICY.

It follows that the Unionist Party must oppose any plan for "nationalising" the Irish railways, whether by the credit of the United Kingdom, or otherwise. The policy we advocate is to be found in the Minority Report of the Viceregal Commission, signed by Sir Herbert Jekyll, Mr. W.M. Acworth, and Mr. John Aspinall, not as politicians, but experts; and in the Report of the Royal Commission on Canals and Inland Navigation dealing with the question of canals and water transport in Ireland.

In the case of railways, the aim should be to amalgamate them into two or three large companies to standardise as far as possible the light railways, and level them in respect of gauge, gradients, works, and rolling stock with the larger companies. Unquestionably many of the smaller railways to be amalgamated, though not light railways, need large expenditure for the purpose of duplication of running lines, straightening of curves, stations, stores, and conveniences, and many extensions and cross-lines will also be needed to connect them with the trunk lines, and to open out districts now unprovided with railway facilities. Many of these projects, though industrially remunerative to Ireland and advantageous to England also as tapping new sources of food supply, would not be, in strictness, commercially remunerative in the sense of giving fair return on capital over working expenses, and it is idle to expect that private capital will ever be subscribed for these purposes. They can only be undertaken either directly by State funds, or by money provided by the State, and lent to the large amalgamated lines at low interest. This is the policy inaugurated by Mr. Arthur Balfour, which has been of untold benefit to many districts in Ireland. Probably a public grant of, say, £2,000,000, and loanable money available to the extent of £8,000,000, would largely solve the problem. For the reasons already given it is only by Imperial credit, and under the ægis of a united Parliament and Government, that capital on this large scale can be available for these purposes.