DIFFERENTIAL RATES ON THE CONTINENT.
In France, Belgium, and Germany, there are fewer ports competing
with railways or with each other than in Great Britain. In each
of those countries the principle of mileage rates has been
nominally, and, to a large extent, in practice adopted. But in all
of them causes similar to those which have here created so-called
differential rates have been in operation. In each of them the fact
of competition by water is recognised as a reason for charging
reduced or special rates; such rates for export or import traffic
exist, although the special rates for the latter traffic are fewer
than for the former; and there are also special transit rates[22].
All these rates have been established after much consideration.
Writing of the discussion of the subject in the Corps Legislatif in
1863, M. Aucoc observes in his well-known work, “Since that solemn
discussion, the principle of differential tariffs has been placed
beyond question.” He adds: “It may be well to mention also that,
in the numerous judicial works on the working of railways, not
only the legality, but the necessity and equity of conditional and
differential rates have been almost unanimously recognised.”[23]
[22] See _décret_ of April 26, 1862, quoted by M. A. de Foville in
_La Transformation des moyens de Transport_ p. 68.
[23] The following are some of the opinions of French statesmen
and economists on the subject:--“_Dans ma conviction le tarif
différentiel est à la fois juste, conforme aux vèritables intérêts
économiques et nécessaires à la concurrence._” M. ROUHER.
“_Les industries de transport par eau, par terre ou par chemin de
fer ne vivent et ne prospèrent que par les tarifs différentiels.
C’est en différenciant sagement leurs tarifs qu’elle attirent les
marchandises et les voyageurs._” M. LEGRAND, _sous-secrétaire d’état
au Ministère des travaux publics_:
“_L’expérience a démontré aux compagnies la nécessité de superposer
au tarif réglementaire de nombreux tarifs à prix reduits.^{***} Il a
été reconnu que ceux là mêmes qui se plaignaient, le plus vivement
des tarifs différentiels en recueillaient indirectement le bénéfice.
Ce sont, en effet, ces tarifs qui fournissent au trafic des grandes
compagnies les masses de marchandises les plus considérables, et
ce sont ces masses qui rendent possible la réduction, au profit de
tous, des tarifs généraux._” M. DE FOVILLE. _La Transformation des
moyens de Transport_ pp. 66, 67.
In a report to the French Chamber of Deputies by a Railway
Commission in 1880, the Commissioners approved of special tariffs,
and added: “We are even inclined to suggest the development of
traffic of this nature, the importance of which is not at all in
proportion to the natural advantages which France derives from her
geographical position and her numerous ports.” _Appendix 31 to
Report from the Select Committee on Railways (Rates and Fares),
1882, Vol. II._
Take first the special rates in France. Wheat may be imported
either _viâ_ Marseilles, or _viâ_ Rouen and the Seine to Paris, the
distance from Marseilles being 863 kilometres, and from Rouen 134
kilometres. To compete with the sea and the Rouen route, the Paris,
Lyons, and Mediterranean Railway Company charges for imported goods,
special rates between Marseilles and Paris. These rates have been
complained of as encouraging foreign trade. The answer, however, is
that if not conveyed _viâ_ Marseilles such goods might be conveyed
_viâ_ Rouen and the Seine to Paris. The general tariff rates on
the French lines are based upon a uniform charge per kilometre,
irrespective of any special requirements of the locality. In order,
however, to remedy the disadvantages arising from such a system,
and to meet the various circumstances and requirements of particular
trades, numerous special tariffs are adopted with the sanction of
the Minister of Public Works. These special rates are not, as is
sometimes supposed, fixed upon any regular or uniform basis. Some
are adopted for the purpose of developing a new, or increasing an
existing trade which may be subjected to competition from other
districts; others are established to meet competition by sea, canal,
or otherwise. Under some circumstances reduced rates are arrived at
by adopting computed instead of actual distances; the former being
sometimes based on the distance by a shorter route either by rail,
road or sea. But in some cases an arbitrary distance is adopted.
The French railway companies have special import and export rates
for numerous articles in their classifications which are lower than
the ordinary class rates to the port town, and occasionally lower
than the class rates from intermediate stations; in which case the
special import and export rates may apply. The following table is a
comparison of a few import and export rates with the ordinary class
rates. The latter, it should be observed, are, in some instances,
based on computed, and not on actual, distances.
DUNKIRK AND PARIS.
---------------------------+------------------------------------------
| ACTUAL DISTANCE, 304 KILOMETRES.
| COMPUTED DISTANCE, 267 KILOMETRES.
+------+------+------+------+------+-------
CLASSES | 1 | 2 | 3 | 4 | 5 | 6
| | | | | |
| f. c.| f. c.| f. c.| f. c.| f. c.| f. c.
Ordinary Class Rates | 42·55| 36·55| 31·20| 25·85| 20·50| 12·35
| | | | | |
Import and Export Rates[24]| 30·00| 26·00| 23·00| 20·00|{18·00| 12·00
| | | | |{15·00|
---------------------------+------+------+------+------+------+-------
[24] Until recently, the classification of imported and exported
goods, in force on the Northern of France Railway, was composed
of six classes. A new tariff is now in force, the rates for such
traffic varying from frs. 8 to frs. 30 per 1000 kilogrammes.
For the purpose of comparison, the rates charged for imported and
exported goods are shewn under the respective classes in which the
same articles are generally included when charged at the ordinary
class rates.
CALAIS AND PARIS.
--------------------------+------------------------------------------
| ACTUAL DISTANCE, 296 KILOMETRES.
| COMPUTED DISTANCE, 267 KILOMETRES.
+------+------+------+------+------+-------
CLASSES | 1 | 2 | 3 | 4 | 5 | 6
| | | | | |
| f. c.| f. c.| f. c.| f. c.| f. c.| f. c.
Ordinary Class Rates | 42·55| 36·55| 31·20| 25·85| 20·50| 12·35
| | | | | |
Import and Export Rates | 30·00| 26·00| 23·00| 20·00|{18·00| 12·00
| | | | |{15·00|
--------------------------+------+------+------+------+------+-------
BOULOGNE AND PARIS.
--------------------------+------------------------------------------
| ACTUAL DISTANCE, 252 KILOMETRES.
| COMPUTED DISTANCE, 252 KILOMETRES.
+------+------+------+------+------+-------
CLASSES | 1 | 2 | 3 | 4 | 5 | 6
| | | | | |
| f. c.| f. c.| f. c.| f. c.| f. c.| f. c.
Ordinary Class Rates | 40·30| 34·75| 29·75| 24·65| 19·60| 11·80
| | | | | |
Import and Export Rates | 30·00| 26·00| 23·00| 20·00|{18·00| 12·00
| | | | |{15·00|
--------------------------+------+------+------+------+------+-------
DIEPPE AND PARIS.
--------------------------+------------------------------------------
| ACTUAL DISTANCE, 166 KILOMETRES.
| COMPUTED DISTANCE, 166 KILOMETRES.
+------+------+------+------+------+-------
CLASSES | 1 | 2 | 3 | 4 | 5 | 6
| | | | | |
| f. c.| f. c.| f. c.| f. c.| f. c.| f. c.
Ordinary Class Rates | 28·05| 24·75| 21·40| 18·10| 14·80| 9·80
| | | | | |
Import and Export Rates | 25·00| 19·00| 14·50|{10·75| 9·00| 7·00
| | | |{10·00| |
--------------------------+------+------+------+------+------+-------
In some instances the special rates apply both ways, _i.e._, for
import or export goods. But many of the export rates for certain
articles are lower than the import rates; for instance, the rate
for Cereals from Paris to Dieppe for export is frs. 7·50, while the
import rate from Dieppe to Paris is frs. 9.
In addition to special rates for export and import goods there
are also special tariffs for _transit_ goods subject to special
conditions which appear anomalous, and have given rise to
complaints. The following is an illustration:--Both Roubaix and
Rouen are spinning centres, and Epinal is a weaving centre. The rate
for a 5-ton load of Yarn from
Kilometres. fr. cts.
Roubaix to Epinal 462 is 47·60.
Rouen to ” 537 ” 57·40.
Antwerp to ” 467 ” 37·0.
The rate for Yarn from Dieppe to Bâle, a distance of 716 Kilometres,
is 47 frs. 30 cts. The explanation of these apparent anomalies is
that the rates from Roubaix and Rouen to Epinal are based on the
local ordinary tariffs; that the rate from Antwerp to Epinal is a
special import rate; whereas the rate from Dieppe to Bâle is a still
lower special tariff for transit goods. The following is an example
of transit or through rates from a town in Italy to a port in
France. The proportions of the receipts accruing to each Company and
the rates charged for goods carried locally between the respective
points are shown. It will be seen that the local rates from the
frontier to Paris are in excess of the charges from Milan to Paris.
------------------------------------------------------------------------
| | | A. | B. |
| | D |-------------+-------------+--------------
| | i |Through Rates|Through Rates|
| | s | for lots of |for lots of 5|
| | t |100 kilos and| tons and |Ordinary Local
| | a | above | above |Rates between
From. | To. | n |-------------+-------------|the respective
| | c | In the proportions due to | points.
| | e | each distance. |
| | |---------------------------+--------------
| |km.| 1st | 2nd | 1st | 2nd | 1st | 2nd
| | |class.|class.|class.|class.|class.|class.
----------------|--------+---+------+------+------+------+------+-------
| | |f. c. |f. c. |f. c. |f. c. |f. c. |f. c.
Milan |Modane |238| 22.14| 18.42| 22.14| 18.42| 40.89| 36.03
Modane |Frontier| 12| 1.15| 0.95| 1.15| 0.95| 2.90| 2.50
Frontier |Paris |672| 68.10| 57.25| 53.50| 46.55| 94.20| 81.00
| |---|------|------|------|------| |
| |922| 91.39| 76.62| 76.79| 65.92| |
| | | | | | | |
Ceinture Railway| -- | 15| 3.10| 3.10| 3.10| 3.10| 3.10| 3.10
Paris |Havre |226| 23.05| 19.60| 17.55| 15.35| 32.00| 28.00
Terminal charges| -- |...| ...| ...| ...| ...| 1.90| 1.90
-----------------------------+------+------+------+------+------+-------
Totals per 1,000|Kilos 1163|117.54| 99.32| 97.44| 84.37|174.99|152.53
-------------------------------------------------------------------------
A.--The proportions accruing to the French Companies for lots under
5 tons remain the same for traffic from all the Italian stations
named in the Tariff.
B.--The French Railway proportions for lots of 5 tons and above vary
according to the distance of the Italian town from the frontier, as
will be seen from the examples below:--
Goods from
Cormons to Havre. 1st class. 2nd class.
P.L.M. 38.60 35.25
Ouest 8.45 7.80
Oulx to Havre. 1st class. 2nd class.
P.L.M. 72.75 62.40
Ouest 15.05 13.05
In respect of traffic for intermediate places, the French railway
companies may make higher charges than the rates for _transit_
traffic carried over the same portion of railway beyond those
places. But they may be required to charge the same sums for traffic
to or from any intermediate place as they charge for import or for
export traffic carried beyond.
In Belgium, also, differential rates are charged between certain
places for export and for local consumption. The following are a few
illustrations:--
--------------------+----------+-------+------------+------------
| | | | FOR
| | | FOR EXPORT | LOCAL USE.
| From | To |------------+------------
| | |10 ton lots.|10 ton lots.
| | | per ton. | per ton.
--------------------+----------+-------+------------+------------
Coal |Mons |Antwerp|Frs. 2·91 | 4·62
|Jemappes | ” | 3·04 | 4·67
|Charleroi | ” | 2·81 | 4·58
|Fountaine | | |
| l’Evêque | ” | 2·81 | 4·58
| | | |
Bar Iron and Girders|Liége | ” | 4·70 | 6·65
|Charleroi | ” | 4·57 | 6·39
|Marchienne| ” | 4·54 | 6·33
| | | |
| | | per 1000 kilogrammes.
Window Glass |Charleroi | ” | 6·30 | 8·28
--------------------+----------+-------+------------+------------
Neither private companies nor the State railways are permitted to
make concessions of any kind, or to depart from the official tariff
in favour of any particular firm or carrier. All general or special
tariffs must be approved by the Minister, and published in the
official paper, the “Moniteur.”
On the Prussian railways the maximum rates shewn in the tariff are
actually charged. But exceptions are made where trade requirements,
competition, and other similar circumstances appear to necessitate
a departure from the official rates. It is not considered that
railway companies are, in general, bound to adjust anomalies in the
carriage charged for traffic arising in different districts, for
one and the same destination, by reducing the rates from the more
distant sending station. But for the sake of uniformity the rates
are so adjusted if, for any reason, exceptional rates from any
particular district have been adopted, and if they are lower than
from intermediate stations nearer by rail to the same destination.
In Germany under the “_Seehafen Ausnahme Tarif_,” there are a very
considerable number of special rates. For instance, the rate for
grain from Bremen to Cologne, a distance of 324 kilometres, is
12 marks, while from Hemelingen, which is short of Bremen by six
kilometres, to Cologne (318 kilometres) it is 15 marks 50 pfenning.
For the purpose of stimulating the traffic from the Rheinisch
Westfälischen District with the German North Sea Ports, viz.,
Emden, Leer, Papenburg, Bremen, Bremerhaven, the competition of the
rates to the Dutch ports, to which the Rhine affords a cheap water
conveyance, had to be taken into consideration. Accordingly from
Essen to Bremen, 254 kilometres, the Amsterdam rates, which are
lower than the tariff rates from Dortmund to Bremen, 237 kilometres,
were adopted, although the traffic from Essen to Bremen has to pass
_viâ_ Dortmund, which is 17 kilometres nearer to destination. In
another instance the German State railways give a rebate of 5 marks
per truckload for coal exported from Hamburg.--“For consignments of
coal for Hamburg and Harburg a _rebate_ of 5 marks per 10,000 kilos.
is made when proof is given that the coal is destined for export
to Trannaine, places outside of Germany or for the German Baltic
Ports.” In other words, a rate of 5 marks less is charged to Hamburg
for coal for export than to the same place for coal to be consumed
in the town.
Exceptional Tariff No. 2 consists of special rates for goods
traffic between stations of the Royal Elizabeth Railway, &c., and
Gustavsburg. They, however, are only in force during the period when
vessels can ply on the Rhine, for instance:--For “Stückgut” or piece
goods from Vienna to Gustavsburg the transit rate is 7m. 24pf. per
100 kilos. 1st class, and 6m. 60pf. 2nd class, and the local rates
are 8m. 11pf. 1st class, and 7m. 73pf. 2nd class.
The effect of these special rates is to secure the traffic to the
Bavarian State and Hessian railways, and prevent its passing over
the Prussian and Dutch railways. The Rheinisch Westfälischen private
railways grant contract (Abonnements Special Train) tariffs for the
conveyance of coal from the Ruhr district to Nederlandish stations
in fixed consignments of at least 200 tons, and not exceeding 300
tons. The adoption of these rates has principally been prompted by
the competition of the water service on the Rhine. They include
haulage to the sidings or depôts; and they are granted only to
traders who contract to send at least once a week for one year a
consignment of from 200 to 300 tons to Nederlandish stations.
Thus it will be seen that in Germany the carriage of traffic in
large quantities is charged at special or reduced rates. A similar
principle has been recognised in this country also. It was held
by the Court of Common Pleas, in the case of Nicholson _v._ Gt.
Western, that “Clause 31 of the Railway and Canal Traffic Act, 17
and 18 Vic., is not contravened by a railway company agreeing to
carry at a lower rate, in consideration of a guarantee of large
quantities and full loads at regular periods provided that the
real object of the railway company be to obtain thereby a greater
remunerative profit by the diminished cost of carriage, although
the effect may be to exclude from the lower rate those persons who
cannot give such a guarantee.” The effect of such a system, however,
has been complained of by smaller traders as favouring the larger
ones; and in this country, it is not in practice generally acted
upon.
The basis of through tariffs between Germany and other foreign
countries is the normal mileage rate to the German frontier; but
with the view of encouraging the export trades, reduced rates are
charged in favour of international traffic.
The Dutch are also desirous of developing their transit traffic;
and with that object so called “exceptional rates,” based upon
lower mileage rates than the ordinary tariffs, are charged from
places of production in Germany to the Dutch ports. Thus, there
are “exceptional rates” for, amongst other things, heavy iron and
steel goods from manufacturing towns in Westphalia to Amsterdam
and Rotterdam, and they are as much as 37 per cent. lower than the
ordinary rates. These German-Dutch rates are invariably lower than
the ordinary rates to inland towns lying between the forwarding
station and the port. The following are some of the exceptional
rates in force, compared with the ordinary rates to inland towns for
shorter distances:--
----------+-----------+--------------------+---------+--------+---------
| | | | |Rate per
From | To | Description | In lots |Distance| 1000
| | of Goods. | of |in kilo-| kilo-
| | | |metres. |grammes
| | | | | [25]
----------+-----------+--------------------+---------+--------+---------
| | | | | Marks.
Dortmund |Amsterdam |} Heavy iron and | | 231 | 6·30
” |Rotterdam |} steelgoods, bars, | 10 tons | 246 | 6·60
” |_Utrecht_ |} sheets, rails | | _194_ | _8·0_
| | | | |
Essen |Amsterdam |} | | 199 | 8·20
” |Rotterdam |} Hardware | 10 tons | 214 | 8·70
” |_Utrecht_ |} | | _162_ | _8·50_
” |_Gouda_ |} | | _194_ | _9·90_
| | | | |
Rotterdam |Dusseldorf |} Coffee, rice, | 10 tons | 234 | 9·20
_Utrecht_ | ” |} currants & sugar | | _182_ | _10·60_
| | | | |
Strasbourg|Rotterdam |} Machinery | 5 tons | 614 | 24·90
” |_Utrecht_ |} | | _571_ | _25·60_
| | | | |
Mannheim |Rotterdam |} | | 499 | 18·40
” |Amsterdam |} Grain | 10 tons | 504 | 18·40
” |_Boxtel_ |} | | _408_ | _19·40_
” |_Eindhoven_|} | | _388_ | _18·60_
| | | | |
Frankfort |Rotterdam |} | | 479 | 20·
” |_Arnheim_ |} Skins | 10 tons | _376_ | _23·80_
” |_Ede_ |} | | _392_ | _24·70_
| | | | |
Nuremberg |Flushing |} | | 715 | 31·84
” |_Arnheim_ |} Toys | 5 tons | _606_ | _42·60_
” |_Helmund_ |} | | _579_ | _40·80_
----------+-----------+--------------------+---------+--------+---------
[25] These rates are exclusive of cartage and of the extra charges
referred to in Appendix I. Page vii.
For traffic between Austrian and Hungarian towns and the Dutch
ports in certain articles there are also so-called “Seaport transit
rates.” For instance, for dried plums, apples and pears from Vienna
to Rotterdam, the export rate for lots of 10 tons is m. 41·50 per
ton of 1,000 kilogrammes, the local rate being m. 51·60 per ton;
for wool from Buda Pesth to Amsterdam the rate per ton of 1,000
kilogrammes in lots of 5 tons, is export m. 67·0, local m. 81·30.
These rates are only available for goods destined for export or
import; and, as will be seen, they are considerably lower than the
rates for the same description of goods for consumers in the port
of shipment. There are also exceptional rates for goods traversing
Germany to and from the German sea-ports and Austria and Hungary.
The following is a comparison between the rates from Bremen to a
station on the Danube, and the rates from the latter station to a
station situated between that station and the sea-port:--
------------------------+---------+---------+----------+------------
| | |Raw Cotton| Tobacco
|Distance |Distance |per 100 ks|per 100 ks.
|in Kilom.|in Miles.| (2 cwt.) | (2 cwt.)
+---------+---------+----------+------------
| | | Marks. | Marks.
Bremen--Regensburg | 683 | 427 | 2·46 | 2·49
Nienburg--Regensburg | 616 | 385 | 2·88 | 3·83
+---------+---------+----------+------------
Difference in favour of | | | |
the longer distance | (67) | (42) | 0·42 | 1·34
------------------------+---------+---------+----------+------------
In Holland no scale of rates is universally chargeable. Each railway
company is authorised by the Concession under which the railway was
constructed, to charge certain specified rates. But, as in England,
the existing rates actually charged are generally lower than the
maximum; and the fixing of them maybe controlled by the State. By
Article 31 of the Dutch Law the railway companies are required to
carry all goods (not excluded from transport) and passengers at the
rates set forth in the published tariffs, and under the conditions
determined by the regulations, without unduly favouring special
persons, Societies, Companies, or other bodies. By the existing law
the railway companies are forbidden to make special arrangements for
carriage at lower rates than those published in the tariffs, except
in the following cases:--
(_a_). For the carriage of large quantities;
(_b_). For the carriage of one or more truckloads
of goods at stated intervals;
(_c_). For the carriage of goods intended for
charitable purposes or for exhibition.
Notice of such exceptions has to be given to the Home Minister.
Those reductions must be available for all goods of the same class,
to be conveyed on the same line, and under the same conditions; they
must be immediately advertised; and they remain in force during the
existence of the contract.
By the strict letter of the law it is provided that the same rates
must, over the whole of the system of the railway, be charged by
the company for the like article for the same distance. But, in
consequence of the competition by inland navigation for traffic
to and from places in Holland, and also by the Rhine, and through
Belgium for German traffic, this requirement proved impossible
to carry out in practice. The Government have found it necessary
to allow the companies to enter into special contracts for the
conveyance of goods on such conditions as they might consider it
desirable to agree upon. Notice of any special contract must, as
before stated, be given to the Minister of Commerce after it is
entered into, and the official assent is subject to the company
agreeing to enter into a like agreement with any other person. While
such is the letter of the law, virtually enjoining equal mileage
rates, the practice is altogether different. For any description
of traffic, special agreements as to quantity to be forwarded and
time of delivery are made. The great object is to obtain traffic.
The published notices of such contracts contain, it may be added, no
information which can be utilized.
The following is an illustration of the special contracts entered
into and of the manner in which their existence is notified:--
[COPY OF SPECIAL CONTRACT.]
SPECIAL AGREEMENT for the carriage of slow train goods
from _________________________________
to _________________________________
between ______________________________
on the one hand, and the General Goods Manager of the
Railway Company, at ______________________________
contracting in the name of the Direction of the above-named
Company (or Companies), on the other hand.
ART. I.
The first-named contracting party binds himself to have all the goods
to be despatched or received by him during the current year,
estimated at ______________________________
truck loads (______________________________ kilogrammes),
from ______________________________
to ______________________________
carried over the lines of the ______________________________ Railways,
in accordance with the conditions in Article IV. of the
Law of Railway Companies (General Rules and Regulations), of 9th
January 1876 (Gazette No. 7), and with the Special Bye-Laws in force
for local traffic, as set forth in the tariff, for the conveyance of
fast and slow goods over the lines of the ___________________________
Railway Company, approved by order of the Minister of the
Interior, dated 1st March, 1877, and which tariff came into force on
the 1st April, 1877. On the other hand the last named contracting
parties bind themselves to carry the goods of the first-named
contracting parties during the year 1885 at the reduced rates shown
in the circular of the _____________________________
Railway Company, dated ______________________________ 1885.
No use may be made of these rates for the re-despatch of goods at
intermediate stations, so as to obtain a cheaper rate than the
direct rate.
Agreed to and signed in dupl. at
______________________________th ______________________________188_
Contracting party No. 1.
______________________________th ______________________________188_
Contracting party No. 2.
[COPY OF CIRCULAR.]
RAILWAY.
The Direction of the ______________________________ Railway begs to
inform those interested that the General Goods Manager
______________________________ of ______________________________
has been authorised to make special agreements for the carriage during
the current year of large quantities of Goods, or for regular
consignments of one truckload or more between Stations of the
______________________________ Railway, and between those Stations
and Stations of the ______________________________
on the following basis:--
(_a_) For large quantities: Per 100 kilos. and 10 km.
In consignment of 10 tons in 1 cent.
” ” 5 to 10 tons 1½ cent.
” ” 3 to 5 tons 2 ”
” ” 100 kilos. to 3 tons 2⅓ ”
with 8 cents per 100 kilos. terminal charges.
(_b_) For regular consignments in truckloads:
The charges as above for consignments of 10 and 5 tons.
Any fractional distances will be counted as for 10 kilometres, and
the weight per 100 kilogrammes, without distinction for different
classes of goods. Parts of 10 kilometres and 100 kilogrammes will
thus be taken as 10 kilometres or 100 kilogrammes.
With these exceptions the General and Special Rules and Regulations
of the ______________________________ Local Rate Book of 1st April,
1877, with the alterations and additions made therein later, apply
to these contract goods.
Consignments of 5,000 kilogrammes will be treated in the same manner
as goods of Class A, and consignments of 10,000 kilogrammes in the
same manner as goods belonging to the Classes B, C, D, and the
Special Tariff.
Further information can be obtained at all the Stations; or on
application to the Agent of the ______________________________ Railway.
______________________________
[COPIES OF NOTICES OF SPECIAL CONTRACTS.]
From the “_Dutch Guide_,” of 28th January, 1886.
HOLLAND RAILWAY COMPANY.
A contract has been entered into for the carriage of a large
quantity of goods over the Company’s lines.
Further information can be obtained at the Goods Office, at
the Central Administration Buildings, Droogbak, Amsterdam.
The ADMINISTRATOR.
AMSTERDAM, _25th Jan., 1886._
______________________________
From the “_Dutch Guide_,” of 25th February, 1886.
COMPANY FOR WORKING THE DUTCH STATE RAILWAYS.
Various contracts have been entered into for the carriage of large
quantities of goods on the Southern net of the State Railways.
Further information can be obtained at the Goods Manager’s Office,
Moreelselaan, No. 1, Utrecht.
The GENERAL MANAGER.
UTRECHT, _17th-24th Feb., 1886._
______________________________
CENTRAL RAILWAY.
A Contract for the carriage of cattle has been entered into.
Further information can be obtained at the Goods Manager’s Office,
Catharijne Kade 759, Utrecht.
The result is that a considerable portion of the traffic is carried
under special agreements, under conditions such as the following,
viz.:--
The sender agrees to forward between A and B special quantities, for
instance:--
80 tons Soap,
10 ” Sugar,
5 ” Pepper,
5 ” Tobacco,
or to forward the whole of his traffic between C and D estimated at
a specific quantity for a certain period, for instance:--
400 tons General goods,
10,000 ” Coal,
1,000 ” Coke.
In Italy, differential rates have been the subject of public
inquiry, and the representatives of some local interests have
asked for their abolition. But they exist; and the verdict upon
them of the Parliamentary Committee of Inquiry in 1881 was: “It is
indisputable that the system of differential rates has helped to
strengthen and improve the national industries.”[26]
[26] Parte II., Vol. II., Sec. 32.
The fact of railways in other countries charging special rates for
import, export and transit traffic, is, of course, not a proof of
their being right in principle. But the foregoing information may
correct loose assertions or suggestions that differential rates are
unknown or rare elsewhere. It shows that the railway authorities and
the Governments who control the rates in those countries, even while
professing to charge mileage rates, have considered it necessary,
with the view of promoting and protecting the interests of their
trade, to charge differential rates.
In the United States, where there is much competition for the
conveyance of long distance interstate traffic, and where remarkably
low rates--“war rates,” as they are called--are charged, charges
for intermediate traffic are not lowered proportionately. In that
country differential rates have been much attacked; they have no
doubt occasionally been imposed without measure or reason. But they
still subsist, and are found useful. As an illustration it may be
stated that, at the present time, the rates for the conveyance of
flour from Minneapolis to Milwaukee, 335 miles, and to Chicago, 420
miles, are the same; while the rate to Duluth, 164 miles, is only 25
per cent. less.[27]
[27] NOTE--The _Montreal Gazette_, 1st April, 1886, writes thus on
the subject of the Railway Commission Bill:--“These rates are fixed
and determined by the Great American Trunk Lines, in competition
with which the Tariff of the Canadian roads is necessarily
regulated; to interfere with these rates would be to take away
from the Canadian Companies a large amount of the gross earnings
derived from a source which increases the volume of business in
Canada.... The discrimination which is complained of in particular
localities arises wholly out of an established competition between
lines reaching a favoured point. Destroy the natural consequences
and natural advantages of competition--lower rates--and you remove
all inducement to the provision of rival routes; put an end to
competition, and at once an increase in rates all round will
be established. The Railway Act prohibits interference by the
Government in the regulation of rates until a Company is proved to
earn 15 per cent. upon its invested capital. What Railway Company in
the Dominion to-day is earning that profit?... If competition is to
be made a positive disadvantage, if every inducement to particular
localities to promote rival enterprises is to be swept away, the
rates of existing lines will be run up in all directions to the
injury not only of every locality now favoured by competition, but
of those localities which consider themselves aggrieved by reason of
the absence of the low rates which competition enforces.”
It may be mentioned that one of the fiercest enemies of differential
rates, in a work recently published, declares that the only remedy
is to “restore the character of public highways to the railways by
securing to all persons the right to run trains over their tracks
under proper regulation!” “The Railways and the Republic” (1886), p.
372, by James T. Hudson.