If the railway companies were not entitled to charge terminals for the use of the stations, the insertion of such a clause in Acts of Parliament would be meaningless; the intention of the clause evidently was that the companies may not charge terminals in respect of any intermediate station or junction, and the fair inference is that they may do so at the sending or receiving station.[43]

The equitable mature of the claim of the railway companies to make terminal charges has been admitted on several occasions by some, if not by all, of the railway commissioners. Their refusal to consider terminal charges as legally justifiable has arisen only from the doubt which existed in their minds as to the strict construction of the words of the clauses; and that question has now been decided by the Queen’s Bench Division in “Hall v. The London Brighton and South Coast Railway Company.” Some portions of the judgment of the Court in that case deal only with the construction of the sections of the particular Private Acts of the defendant company; but the remarks of the Judges upon the general principles which govern the railway companies, claim to make terminal charges, explain so clearly their natural equity as well as their legality, that they may not improperly be quoted:—

Sir Bernhard Samuelson observes that terminal charges are a necessary corollary of the Foreign mileage rates,[44] the scientific basis of which he so much approves; the equity of, and right to make terminal charges is equally a corollary to the system upon which the rates in this country have been fixed. The maximum charges for the user of the road, the user of the truck, and the provision of the engine are capable of being fairly measured by reference to the distance travelled. They are, therefore, properly the subject of a mileage rate. But the providing of station accommodation, and work which the Railway Companies perform as carriers—as distinguished from mere conveyance—have no relation to mileage. They must reasonably be—as it has been held in the case of “Hall v. The London Brighton and South Coast Railway Company,” they legally are—the subject of an additional charge.

We may here correct a common error. The opponents of terminal charges are in the habit of speaking and writing of them as if the companies claimed that they might at their own discretion demand such payments as they thought fit.[45] The railway companies have never contended that they were entitled to make arbitrary terminal charges. Indeed, such a contention would be a legal absurdity. On the contrary, they have always submitted that, while their right to make those charges was undoubted, the amount must not only be reasonable, but also be subject to review by the Railway Commissioners under the 15th Section of the Regulation of Railways Act, 1873. Sir Bernhard Samuelson is inaccurate in stating that the railway companies proposed by their Bills of last Session to make those charges subject only to their own discretion. While strongly relying both upon their legal right and the justice of their claim, the railway companies were willing to submit proposals to the consideration of Parliament for a re-settlement of their powers in this respect. But they expressly provided that the Railway Commissioners should have power to hear and determine any question or dispute which might arise with respect to the amount or reasonableness of any terminal charge made by the company, and that any decision of the Commissioners as to terminal charges should be binding and conclusive on all Courts and in all proceedings whatsoever;” words borrowed from s. 15 of the Regulation of Railways Act, 1873.

A few details as to the law and practice on this subject in Continental countries may be useful. And, first, as to Germany. When the question of the introduction of a new tariff for the German railways was under consideration, it was agreed that in previously fixing the railway rates, sufficient consideration had not been given to the expense incurred at the sending and receiving stations, irrespective of the distance the traffic was carried. The result of the calculations which were made was that those expenses should be estimated at 12 marks per truck load of ten tons. This was accordingly adopted as the standard figure for all goods carried in wagon loads, while for small consignments the charge was fixed at 20 marks. The addition of those normal allowances to the rates on traffic to be carried short distances would have considerably increased the charges previously made. It was accordingly agreed, as a compromise, to graduate the terminal charges for short distances; the graduation being simply the means of avoiding what might have been considered a large increase in the railway rates, in consequence of the adoption of the “reform tariff system.” These terminals represent the working expenses at the forwarding and receiving stations, the labour of receiving the goods from sender, marshalling or shunting the trucks to the sidings set apart for the delivery of the goods, and also the expense incurred by railway companies for stationery and clerkage; but they do not include the expense of loading and unloading, except in the case of Grande Vitesse and “Piece Goods,” They vary from 10d. per ton in full truck loads of 10 tons, to 2s. per ton of general goods, and in the special tariff classes, which include minerals, from 7¼d. in full trucks of 10 tons to 1s. 2½d. per ton.

In Belgium there is a fixed charge of 1 fr. per ton of 1,000 kilogrammes for the use of station and for clerkage; but it does not include loading and unloading, or booking, counting, or advice of arrival of goods, for all of which services extra charges are authorised and, in fact, made. This is practically a terminal charge.

In Holland the terminal charges vary from 1s. 2d. to 1s. 6d. per ton in the truck load classes, and 2s. 6d. per ton in respect of ordinary or “piece” goods in quantities of less than 5 tons. In the latter case the cost of loading and unloading is included in the terminal charge, but not in the truck load classes. In neither case are weighing, counting, stamping freight note, labelling or advice of arrival included. For all of these services extra charges are made.

In France only small charges varying from 20 cents. per ton for goods in full truck loads, to 35 cents. per ton for goods in less quantities, are made for the use of stations, though there are various charges for loading and unloading, booking, advice of arrival, and other services. Either, therefore, the traffic for short distances is carried at a loss, or no adequate return to cover the use of station and conveyance is obtained—a course, which, assuming the outlay upon a railway is entitled to a fair return, is opposed to sound commercial principles.[46]

SECTION XII.
THE CONSTRUCTION OF RAILWAYS
IN ENGLAND AND ON THE CONTINENT.

Sometimes it is asserted, although it is more often taken for granted, that all railway rates on the Continent are more favourable to traders than English rates. Upon this assumption is based the contention that the reduction of the latter may fairly be demanded. Whenever such statements have been carefully examined—e.g. in the inquiry before the Joint Committee of 1872—they have been proved to be erroneous. Nevertheless, they are still constantly repeated. More than once it has been publicly stated that in Germany, Holland, Belgium, &c., “rates are fixed on a scientific basis, and an intelligible principle,” while in this country they are “haphazard and estimates.” Seldom is there any attempt to make good such assertions and criticisms. The report made by Sir Bernhard Samuelson to the President of the Association of the Chambers of Commerce of the United Kingdom on the “Railway Goods Tariffs of Germany, Belgium, and Holland, compared with those of this country” is an exception, and on that account is specially important. That report endeavours to prove by figures that rates in this country are excessive. It has been cited—though, probably, such was not the intention of the author—as if it were an indictment of English railways; and the purport of it is to show that English rates ought to be reduced, and that, unlike the rates on the Continent they are fixed on no proper basis. Now, even if the difference between English and Continental rates were as great as Sir B. Samuelson describes, no inference unfavourable to English railways could be fairly drawn. No comparison could be useful which did not take into account the fact that railways in Great Britain have been constructed with private capital subscribed and expended on the faith of definite powers conferred on the companies by Parliament. Sir Bernhard Samuelson, however, passes lightly over the dissimilarities which mar his comparison; the widely different circumstances under which foreign lines were constructed; their much smaller original cost per mile, and the fact that most of the lines to which he refers were either constructed or assisted by the State, have been purchased by it, or have received State guarantees. The English railway companies obtained simply authority from Parliament to purchase compulsorily the land required, and to construct the necessary works.[47] On the other hand, the railways in the countries to which his report relates were, to a great extent, either originally constructed by the State, or the companies have been assisted by contributions towards the cost of construction, or a minimum rate of interest upon the capital provided and expended by them has been guaranteed to them, or the lines have been afterwards acquired by the State.

It is remarkable that Sir Bernhard Samuelson’s report gives no information as to the railways of France, though the nearest of the Continental countries, and though many of her products compete with ours. To correct this deficiency, it may be desirable to mention a few facts. The French Government constructed the first railways opened in that country or made advances for that purpose without charging interest; and they have since made or purchased other lines. In aid of the original lines for which concessions for 99 years were granted, the State in France contributed a vast amount, as appears by the following statement:—

The total amount was thus found in the following proportions:—

The total capital expended on French railways up to the end of 1884 had increased to £532,960,000,[48] of which sum the State had provided £148,680,000, or 27·9 per cent.; in addition to which the subscriptions given by towns amounted to ·8 per cent. Thus, up to December 31st, 1884, the capital provided by the companies themselves was not more than 71·3 per cent. of the whole. The French Government have also guaranteed the dividend on four of the great lines at rates varying from 7 to 12 per cent. Two other great companies may pay 11 and 13·5 per cent. dividend respectively before they can be called upon to construct any new lines; while all the six companies may earn dividends varying from 10 to 22 per cent. before they are bound to divide any surplus with the Government.

A portion of the capital of each company is paid off annually beyond the guarantee; and at the end of the period of concession the railways will become the property of the State. The advances made to the companies under the guarantees by the Government, with interest at the rate of 4 per cent., are to be repaid out of any surplus beyond the maximum dividends which may be paid. If at the end of 99 years, any of the companies still be in debt, the Government are to be entitled to take without payment as much of the rolling stock as may be required to repay the debt, as far as the value of the stock may do so. By the conventions of 1883, the Government arranged with the companies to which they had given guarantees, that when a request to that effect is made by the State, new lines are to be constructed up to the amount of their debts at the end of 1883. In some cases this duty is incumbent only when the dividends paid by the companies reach or exceed the maximum percentage already mentioned. In addition to the large sum expended by the French Government on, or towards the original construction of railways, the total amount advanced to the companies to make up the guaranteed dividends[49] amounted to

In France the State has not pursued in regard to railways a policy strictly commercial. It has made great sacrifices to provide railways, in the hope of securing to the country indirect ulterior gains. For the sake of their development it has incurred great expenses which excite in some minds grave anxiety.[50]

In Germany most of the railways are now the property of the State.[51] In 1884, the various Governments owned 19,610 miles, and they worked another 496 miles for the companies, leaving only 2,505 miles out of a total of 22,611 to be worked by the railway companies. Of the railways which are the property of the State, about two-fifths were constructed, and the remainder were purchased by it. Of the total capital outlay of £485,831,766 on German railways, £437,728,471 has been expended by the State in constructing or purchasing them, and £48,103,295 has been provided by the companies themselves. The return upon the capital outlay of the State railways has been—[52]

This shows an average for the five years of about 5 per cent. per annum.

In Belgium, out of a total mileage at the end of 1884 of 2,711 miles, the State owned 1,930, or more than 71 per cent. of the railways. The outlay upon this mileage was as under:—

The interest paid by the Belgian Government on the above capital outlay was—

The gross receipts on the State railways for the year 1884 amounted to—

Upon a capital outlay of £53,012,372, these figures give an average dividend of nearly 3¾ per cent. It would, therefore, appear that the working of the State railways results in a loss to the Government, which the public have to make up by increased taxation.[53]

In Holland also, the railways are owned to a large extent by the State, to which belong 797 miles out of a total of 1,617 miles. The State does not, as in Germany or Belgium, work its own lines. It leases them upon certain conditions to companies, viz., to a Company for working the State railways and to the Holland Company. The companies provide the rolling stock and staff, and maintain the line; but they do not execute “works of art” or repairs arising from circumstances over which they have no control, such, for instance, as war, inundations, landslips, &c. Materials for the execution of works have to be conveyed at a very low rate. All rates must be submitted to the Minister of Public Works for his approval; and the mails must be carried free. From the gross receipts are made deductions at the rate of £67 per mile of single, and £134 per mile of double line per annum, which serve as a fund to cover repairs. Eighty per cent. of the remainder is retained by the company. The balance of the receipts belongs to the State. If, however, the company’s percentage, plus the deductions, do not amount to £644 per mile, the gross receipts are so apportioned as to yield that amount. If the net profit of the company exceeds 4½ per cent. upon their capital, the surplus up to 5 per cent. is divided equally between the State and the company; and any further surplus, is distributed in the proportion of four-fifths to the State and one-fifth to the company. The total capital expenditure on the Dutch State Railways to the 30th June, 1885, was:—

The amount received in respect of dividend or interest for the year from both working companies was £158,170 or about ·81 per cent on the capital involved.

There is a remarkable difference in the cost of construction of English and Continental lines—a fact of which Sir B. Samuelson takes no adequate account when he says “the average cost of construction has been considerably less in the case of German railways than in that of our own.” Without citing many figures on the point, it may be stated that at the end of 1884 the amount of capital expended in the construction of railways in the United Kingdom was £801,464,367, or £42,486 per mile of line opened; and in England and Wales alone £665,055,879, or £49,854 per mile. If the rates for carriage of goods and passengers were based solely on cost per mile, those in force in the United Kingdom and England and Wales respectively would exceed the rates of other countries to the extent shown in the following table:—

Not only has the construction of the railways in this country been more costly, but private companies have accomplished a task which has not yet been fulfilled in some Continental countries, even with all the aid of the State, and which, if ever fully carried out, must entail further liabilities upon the Governments of those countries. In England private companies have not only made trunk lines, but, to a degree unknown abroad, they have constructed branch lines, penetrating into sparsely-peopled districts of the country, yielding little traffic, and necessarily involving heavy working expenses and loss of interest. Official figures show that private enterprise has hitherto given one mile of railway to every

It further appears from official statistics that the capital outlay for every 1,000 inhabitants has been

SECTION XIII.
WORKING OF ENGLISH AND CONTINENTAL RAILWAYS—
COMPARATIVE FACILITIES AFFORDED BY THEM.

So much for the strikingly different modes in which the English and continental railways have been constructed; the one system a history of unaided private enterprise, the other a history of a policy pursued by great States with the resources of Imperial Exchequers, and with English experience as a guide. Had railways in this country received the same assistance as foreign lines, the cost and working expenses being the same, the demand that the former should have rates as low as the latter would not be unreasonable. But a comparison of the facilities afforded here and on the Continent to trades and production will not be unfavourable to the English companies. It will be seen that, in the words of the late Professor Stanley Jevons, “Taking all circumstances into account, England and Wales are better supplied with railways than any other country in the world,” whether we have regard to extent or efficiency.

In the first place, it is well known that the time occupied in the conveyance of goods is less in this country than on foreign railways. In France, for instance, the time allowed by the orders of the Minister of Public Works, before forwarding for the purpose of loading, is one day; for the transit of goods over a distance of 93 miles, there is another clear day—making two days; and for a distance of 170 miles, three days, exclusive of the time necessary for collection and delivery. In other words, traffic delivered at a station on a Monday, must be at the disposal of the consignee on the Thursday morning following at any station within 150 kilometres (93 miles) distant from the sending station. If the goods have to be “delivered to domicile”—that is, at the consignee’s residence or place of business—the time allowed by the tariff for delivery is one day—that is, in the case supposed, they must be “delivered to domicile” during the Thursday. No doubt, goods requiring speedy transit can be forwarded by grande vitesse (ordinary passenger train), a service which is equivalent in respect of speed to a large portion of the goods trains in England. But the rates charged for conveyance by grande vitesse in France are about three times as much as the highest class rate by goods train.

In Germany, the general regulations prescribe the maximum time for delivery of goods as follows: for “Eilgut” (goods carried by passenger train), one day for loading and forwarding, and one day for every 300 kilometres (186 miles) or part thereof. For “Frachtgut” (goods train traffic), two days may be taken for loading and forwarding, and for the first 100 kilometres (62 miles) one day; for every part of each subsequent 200 kilometres (124 miles) one day. The time of transit is assumed to commence at midnight following the date of the stamp on the consignment note.

In Holland, the time allowed for “express goods” before forwarding is 24 hours, and for conveyance for each 186 miles or part thereof, another 24 hours.[55] For general goods the time allowed before forwarding is 48 hours and for the conveyance, 48 hours for each 186 miles or part thereof. As in Belgium, the time allowed for transport commences at midnight following the stamping of the consignment note.

In Belgium all goods carried under the conditions of tariff No. 3[56] (which applies to consignments exceeding 4 cwt. in weight) are due at the receiving station three full days after delivery of the goods to the company. This does not apply if there is a glut of traffic; and another full day is allowed if the railway company deliver by cart.

Goods may by law be kept in some of the countries which have been mentioned for two days before being despatched; two clear days are allowed for 186 miles or part thereof; and when rapid transit is required, as in case of express goods, the rates are much higher than those charged by goods train. In this country, on the other hand, goods are, as a rule, forwarded on the day or during the night of the day on which they are brought to the station; and between important places within 200 miles, goods are usually delivered the following day. As a matter of general practice, the maximum time allowed abroad is not fully occupied; but it is recognised by law. This advantage which the foreign railways possess implies others, which can only be fully appreciated by persons practically acquainted with the mystery of railways. The ample time allowed before forwarding and in transit permits of considerable economy in the use of wagons. Opportunities are afforded for making full wagon and full train loads. This circumstance, too, reduces train mileage. A further consequence is the diminution of claims for compensation and in other items of expense. The speed of the trains being slow, and the time allowed in transit being great, larger loads are practicable.

Liability for compensation for delay or damage in transit is another element to be taken into consideration in any comparison of rates. In Belgium and Holland, where rates are especially low, the liability to pay compensation is very limited. Belgian railway companies are not responsible in the case of goods carried under the conditions of tariff No. 2, unless specially insured, for a delay of one day after the time allowed for delivery, or in the case of goods carried under tariff No. 3 (all consignments above 4 cwts.), for a delay of two days after the time allowed for delivery. Their responsibility for delay in excess of these times is, moreover, limited to one-tenth of the carriage for every day’s delay. Goods are considered to be lost if not delivered after the expiration of fifteen days. For loss or damage to merchandise, carried by goods train, the companies are responsible only to the extent of 75 cents. per kilogramme (3½d. per lb.). The responsibility of the companies in Holland, for delay to ordinary goods beyond 24 hours, after the time allowed for delivery, is, up to 72 hours, limited to one-fourth, up to 8 days one-third, and beyond that period one-half of the freight. For whole or partial loss the maximum liability is £2 10s. per cwt. To enable the public to recover, either in the case of delay or loss, the full value of goods, they must be insured at specified rates. These particulars show the advantages of foreign railways in this respect; the difference may be made still clearer by citing a few figures as to the working of this system of legal limitation of liability in Belgium and Holland and of the virtually unlimited liability in force in this country. In Belgium the amount paid for compensation for delay or damage to merchandise traffic carried on the State railways in the year 1884 was £7,772, or ·25 per cent. on a revenue of £3,088,109, and on the Dutch Rhenish Railway it was £274, or ·16 per cent., on a revenue of £173,079. In the United Kingdom the amount was £202,400, or, ·54 per cent., and in England and Wales £17,140, or, ·55 per cent., on a revenue from merchandise and mineral traffic of £37,670,592 and £31,973,011 respectively. Of these last amounts £15,528,656 and £13,398,433 were in respect of minerals on which no compensation is, in practice, payable.[57]

The rates for merchandise in Holland and Belgium are the lowest of any of the countries. Independently of the construction of the lines being cheaper, the wages paid to servants less, and the State being the principal proprietors, natural causes favour this. From the flatness of those countries and their consequently having exceptionally level railroads, the average loads far exceed what can be carried in the United Kingdom. In Holland 450 to upwards of 500 tons are the usual train loads. Even on the Northern Railway of France an average load of 400 to 450 tons is common. Owing to the gradients of the lines and the speed of the trains, such weights are rarely carried in this country. The consequence of the paying load being less is, of course, that the working expenses are proportionately greater.

Branch lines in this country have, as has been already stated, been carried into sparsely populated districts to an extent unknown in France, Germany, Belgium or Holland, and the English railways afford greater facilities by reason of a larger proportion of the lines being double.

The following table shows the state of things in 1884:—

It is well known that train service in this country is much more frequent than in any other country. How great is the difference will be seen by comparing the average number of train miles run per mile of railway, per square mile of country, and per 1,000 people.

In comparing the results of the working of the German and English railways, Sir B. Samuelson states in the report already quoted, that “The proportion of net to gross receipts is not unfavourable to the German lines.” He adds that “it is all the more remarkable when it is considered that the tariffs for both passengers and goods are much lower; the cost of materials, generally speaking, higher; and that large sums are in Germany defrayed out of revenue, which would here be charged to capital.”[60] The meaning, apparently, of these observations is that railways in this country ought to be worked more cheaply than in Germany; that passenger fares and merchandise rates are lower in that country, that nevertheless the receipts are satisfactory; that the rates for goods should be here reduced; and that, thereby, better results would ensue. Let us put these statements to the test of figures,[61] and, first, as to cost of working, no doubt a material element in the comparison of rates. For the year 1884 the gross receipts of all the railways in the United Kingdom and in England and Wales respectively amounted to—

           United   England and
            Kingdom.   Wales.
The working expenses to  £37,217,197,  £31,732,486,

or 52·77 and 52·80
per cent. respectively;
and the net receipts to . . .  £33,305,446,  £28,366,525.

The gross receipts yielded an average of—

The gross receipts of all the French railways, except the small local lines, for the same year amounted to:—

The results of the working of the French railways for the year may be briefly shown thus:—

The results of the working of the German railways for the year 1884 were as under:—

The expenses being 54·38, 53·47, and 54·31 per cent., respectively, on the receipts—

The average amount per mile and per train mile of the following receipts:—

The private railway companies in Belgium are not required to furnish the Government with returns similar to those supplied to the Board of Trade in this country. It is, therefore, difficult to obtain complete information on this head. But the results of the working of the State railways, which, as has been explained, form more than 71 per cent. of the whole system of the country, are accessible, and may for this purpose be taken as fairly representative.

Gross receipts of the State railways for the year 1884, viz.,

Thus, the average amount of the gross receipts per mile, and per train mile respectively, is

On the State, Holland, Dutch Rhenish, Dutch Central, and Brabant Railways, which comprise more than 90 per cent. of the whole railway system of Holland, the gross receipts for the year amounted to—

The gross receipts yielded an average of—

The foregoing figures are summarised for convenience of comparison in the following tabular form:

From the above table it appears that the percentage of the working expenses upon the gross receipts on all the railways in Germany is 54·31 per cent., and on the State lines in Belgium 59·72 per cent. as compared with 52·77 per cent. in the United Kingdom. But analysing these figures, we find that the relative proportion of the whole receipts from the passenger traffic of the German railways is 26·79 per cent., and of the Belgian State railways 33·71 per cent., as compared with 42·58 per cent. in the United Kingdom. This difference, due to the greater development of passenger traffic in this country, considerably affects the comparison of the results of working. The ratio of working expenses in the United Kingdom, where the proportion of net revenue from passenger traffic is greater, and that from goods is less than in Germany or Belgium, is reduced to the advantage of the goods traffic. If the revenue from passenger traffic in the year 1885, on the railways in the United Kingdom, had only been the same per train mile as in Belgium, the working expenses in the case of the former would have been raised to 59 per cent. The profits derived from passenger traffic are not only advantageous to the shareholders, but beneficial to the trade of the country. They have enabled the companies to pay moderate dividends, and also to carry merchandise traffic at a less profit. Any reduction in the revenue from passengers would cripple the railway companies, and prevent them being in as good a position to provide the accommodation, afford the facilities, and charge such rates as are required to develop the trade of the country.

Sir Bernhard Samuelson’s reference to passenger fares calls only for a few remarks. Taking the average fares charged in this country per mile to be 2d. first, 1½d. second, and 1d. third class, with a reduction in return tickets, there is no very substantial difference between those fares and the fares charged in Holland and Germany (except that in the latter country there is a fourth class on some trains). Nor do fares here (including the Government duty), materially differ from those charged on the railways in France. The fares in Belgium are, for the reasons already stated, lower than those in this country. But if to the nominal fares is added the charge which would be made for the same weight of luggage as that which is carried free in this country, the difference is reduced.[67]

The receipts per train mile from coaching traffic are 3s. 1¾d. and 3s. 4¼d. in Belgium and Germany respectively, as against 4s. 2d. in the United Kingdom; a difference which, assuming that only the same receipts per train mile on the present train mileage were earned by the railways in this country, would involve a loss of revenue from £6,000,000 to £7,000,000 per annum. On the other hand, the receipts per train mile, from merchandise and mineral traffic, in the other countries, compare very favourably with those in the United Kingdom; they are 9s. 8½d. in France, and 9s. 10¾d. in Germany, as compared with 5s. 11d. in the United Kingdom. Even in Belgium and Holland, where rates are low, the receipts are 5s. 11½d. and 6s. 4¾d. respectively; results which, considering the low transit and other rates in the former, and the transit and special bargain rates in the latter, are satisfactory. Such figures show that, in addition to the advantages of better gradients and slower speed of trains, wagons and trains are more fully loaded than in this country; they show, too, that notwithstanding the low tariff rates in many cases, the additional charges referred to in Appendix I., page vii—over and above the tariff rates—must yield a substantial revenue. Nor should we lose sight of the fact that traffic receipts in this country include, to a much greater extent than in those countries, charges for loading and unloading.

In the passage which we have quoted it is said that “the cost of materials” on the Continent is, “generally speaking, higher.” One cannot help observing the inconsistency of maintaining that the competition of the other countries by enjoying low railway rates injures the export trade of this country, and that the railways here have the advantage of obtaining fuel and rails cheaper. Is the latter statement clearly well-founded in view of the fact that German rails have been laid on some of the English lines, and that engines have also been supplied by Continental firms competing with home makers? The truth, probably, is that for the purposes of the present comparison the prices of coal and materials at the pits and works in each country may be taken to be about the same; that here, as abroad, there is great diversity of circumstances; that in each country some companies, whose railways are near collieries and ironworks, have the benefit of the lowest prices, while others obtain their supplies by sea or rail at an enhanced cost.

The chief item of expense in the working of railways, and that which is of the greatest importance in making any comparisons intending to show that railway rates in this country should be reduced, is that of wages; an item of expenditure ignored in the above statement. Here they are generally higher, and the hours of labour are fewer, than in any of the other countries referred to. It is difficult to make an absolutely trustworthy comparison of the actual sums paid in salaries and wages. Different systems of payment exist; the allowances made to the staff on the Continental lines in the way of house rent, &c., and the amounts contributed by the companies to the superannuation and other benevolent funds ought not to be forgotten; such contributions, especially in France, amount in a year to a considerable sum. On the whole, however, we may arrive at an approximately correct estimate by taking the total amounts paid in salaries and wages and the average amount paid per man per year. The following is the percentage of wages as compared with the total working expenses.[68]

  [69] England 60·33 per cent.
  [70] France 46·75  ”
  [71] Belgium 57·92  ”
  [72] Holland  48·57  ”

The hours of labour are an element in the matter. We do not go into detail, or endeavour to make a precise comparison. But it will not be disputed that, as a rule, they are fewer here than on the Continental lines. Here, too, there is, comparatively speaking, very little Sunday duty, which is far from being the case abroad. On most of the railways in this country it is the practice to provide at the company’s own cost clothing for such of their staff as wear uniform. The Dutch companies also supply some members of their staff with clothing. But in France, Belgium, and, generally, in Germany, the cost of clothing supplied to the uniform staff, which has been omitted in the comparisons, is deducted from their wages by instalments.

For the reasons already stated, there is no small difficulty in comparing the rate of wages per day or per week. Although in this country annual allowances such as bonuses for good conduct are known, wages are, as a general rule, fixed sums per day or per week, increasing according to the importance of duties and service. On some of the Continental railways the allowances are in some instances a considerable percentage of the fixed wages.[73]

The following table has been prepared from the best information that could be obtained on the subject, and it may fairly be taken as an approximate estimate of the average wages paid:—[74]

Passing over the fact that in this country porters to attend to passengers’ luggage are provided by the companies, that the class goods rates here include loading and unloading, which they frequently do not abroad, and that, generally speaking, a greater number of men are employed on the railways in this country, there remains the fact, that the difference between the percentage of wages paid on foreign railways, as compared with the total cost of working the railways, and the percentage of wages paid in the United Kingdom is upwards of £4,000,000. There is, moreover, a great difference in the amount paid per person in England, as is shown by the returns of the twelve companies who have supplied the information, viz.:—[77]