SECTION X.

NEW CLASSIFICATION.

One inconvenience incidental to the course taken by the railway

companies has been experienced. The actual classification in

use does not follow the meagre, and in many respects arbitrary,

statutory classifications; the latter may not be a guide to the

former. This was one of the grievances laid before the Railway

Rates Committee in 1881 and 1882. Traders, it was said, could only

with difficulty ascertain the companies’ powers to charge for goods

not enumerated in their Acts. The representatives of the railways

agreed with some of the witnesses who gave evidence on behalf of

the traders as to the original classifications in the Acts of the

companies having become obsolete. They explained that from time to

time they had been rectifying, in the manner already described,

the defects of the statutory classification, and that, acting on

information communicated by manufacturers and merchants, and guided

by their own experience, they had framed and generally adopted

the Railway Clearing House Classification, which embraces some

2,700 articles, and which is, on the whole, fairly adapted to the

requirements of trade. They added that the companies were prepared

to agree to a revised maximum classification in lieu of the original

classification.

Accordingly, the Committee recommended--

“That there should be adopted over the whole Railway system

one uniform classification of goods.”

“That terminal charges should be recognised, but be subject

to publication, and, in case of challenge, to sanction by

the Railway Commissioners.”

The Board of Trade thereupon intimated to the railway companies

their intention of introducing into Parliament a Bill with the view

of carrying out some of the recommendations of the Committee, and

requested them to prepare a standard maximum classification for

general adoption.

This was done. The companies were also prepared to assent to a

codification of their maximum rate clauses, having due regard

to their existing powers, so as to assimilate them to the new

classification. But they stipulated that certain, rights which at

that time were considered by some to be doubtful--in particular, the

right of the companies to charge for terminal services--should, as;

recommended by the Committee, be recognised. The Bill introduced in

the Session of 1883 by the Board of Trade was not proceeded with.

Acting therefore on a suggestion which was made to them, several of

the companies introduced Bills in the Session 1884-5, with a view

to consolidate the maximum rate clauses, and secure the adoption of

a general classification, and the recognition of terminals. But the

companies received from Government no such assistance as they had

reason to expect. The mere consideration of their Bills was strongly

opposed, the Board of Trade eventually joining in the opposition;

and the measures had to be withdrawn. Last Session the Board of

Trade introduced a Bill, not only to compel the companies to do what

they, by their Bills introduced in the Session of 1885 sought to do,

but also to make it obligatory on them to accept such altered rates

and tolls as the Board of Trade, with the subsequent sanction of

Parliament, might lay down, and to submit to periodical revisions

thereof--requirements so contrary to the conditions on which the

companies provided the capital for the construction of the railways,

that it is difficult to believe that the effects of the provisions

of the Bill could have been clearly understood. The companies

unanimously objected to a measure which amounted to confiscation.

It is probable that a satisfactory arrangement would have been

come to; but owing to the dissolution of Parliament the Bill was

not proceeded with. In view of the desire of the public for a new

classification, the recommendation of the Railway Rates Committee,

end the general assent of the companies, it may be assumed that in

the course of the next Session the subject will again be brought

forward; and it is therefore desirable to consider the principle on

which a classification should be framed.

In the earliest Canal and Railway Acts the basis of the

classification was the nature, bulk and value of the articles

carried. The lowest tolls were applicable to articles carried in

large quantities, such as lime, dung, coals, and rough stone; the

medium tolls to grain, timber, &c., and the higher to manufactured

goods, and the more valuable articles of merchandise, such as

wool, tea, wines and spirits, &c. On canals, this classification

was in force, notwithstanding the fact that they were at first

only toll takers, and did not incur any cost in conveyance or any

risk--services and liabilities for which the carriers charged the

public beyond the tolls. The numbers of articles enumerated in the

original Acts were, as previously stated, from 50 to 60, divided

generally into from three to five classes. The present Railway

Clearing House classification, which has been revised from time

to time, contains seven classes. The following is a comparative

statement of the number of different articles enumerated in it

during the last 34 years:--

1852 748

1860 816

1870 1,621

1880 2,373

1886 2,753

Judging from remarks which have been made[36] as to the

“inconsistency and want of classification,” it appears to be the

view of some persons that this classification has been framed by

the companies in an arbitrary manner and without regard to the

necessities of trade. Nothing could be more erroneous than this

assumption. Of necessity it is from the traders themselves that the

railway managers have primarily obtained the information by which

they have been guided in framing the classification. The questions

to be determined in fixing rates are not simple; the elements to be

taken into account are many. Whether the traffic is considerable,

whether the cubical contents are large or small in proportion to

the weight whether it is carried in large or small quantities,

whether the merchandise consists of raw materials or manufactured

goods, articles of necessity or luxury, must be considered. The

requirements of traders with conflicting interests, the different

views taken by the companies, and the desire to encourage special

industries must be studied. In practice what takes place is this.

When a new article of commerce or of manufacture is introduced, the

merchant or manufacturer calls on the railway company immediately

interested to have it classified and to fix the rates. Of course,

there is an endeavour to get it placed in the lowest possible class.

Such applications are carefully considered; and they are from time

to time discussed by the managers at their conferences. Thus the

classification is continually under consideration and revision;

there is a constant process of re-adjustment to the changing

circumstances of trade. So-called anomalies there no doubt are,

and departures from the basis on which a classification should be

framed. But the Railway Clearing House Classification, which is the

result of this continual effort to adapt charges to new conditions,

answers reasonably, if not perfectly, the requirements of trade.[37]

[36] “What is complained of by the traders is not so much the

high scale of the rates as their inconsistency and want of

classification, as well as the want of facilities given by the

railway companies for the development of the trade in a particular

locality. That before the Royal Commission on Depression of Trade,

not a single witness, except in the shipping interest, was examined

in reference to railway rates who did not complain of some act of

injustice on the part of the railway companies, not so much in

regard to the rates, although they were onerous and prohibitory in

some cases, as to the inconsistency of such rates.”--_Mr. L. Cohen,

House of Commons Debate, 6th May, 1886. Hansard, vol._ cccv., _pages

428-9_.

[37] NOTE.--The New Zealand correspondent of the “_Economist_”

(Oct. 23, 1886), writes from Wellington as follows: “The fact of

the railways being in the hands of Government is by no means an

unmixed good. A uniform system of rates is demanded everywhere. If a

concession is made to one district, the rest of the colony naturally

demand to be placed on the same footing, so that the Railway

Department rarely meet the wishes of the public. _A private Company,

if it found that the freight could be got by lowering the tariff on

some particular item, would do so at once, and if it paid, continue

it._ The cost probably would be merely a few tons of coals, and a

small amount for wear and tear. _Many trades, notably the timber

trade, are very much hampered by the Government tariff which does

not admit of differential rates._”

This is a sample of the inconveniences attending uniformity.

It must be borne in mind, in framing a new standard classification,

that it will be the maximum beyond which the companies must not go.

If adopted generally over all railways, the scales of maximum rates

must allow scope for the local necessities and peculiarities of

different districts of the country. Inverness-shire and Cornwall,

as well as Staffordshire, Lancashire, and Yorkshire, agricultural,

manufacturing, and mining districts, must all be considered. There

must be sufficient elasticity in the scale of maximum rates to

allow of the charges being remunerative on short distance traffic.

Goods coming under the same generic name often vary considerably

in cubical contents in proportion to weight, value, and risk of

damage, as well as in the extent to which they are carried; all

considerations not to be forgotten in constructing a uniform

classification. The following few examples, taken casually from

consignments actually carried, illustrate the remarkable variations

in the weights and bulk of some of the traffic:--

Cubic feet to the ton.

Agricultural Implements vary from 70 to 1316

Boots and Shoes 75 ” 108

Coal 34 ” 48

Copper 10 ” 165

Carpets 68 ” 159

Drain Pipes 99 ” 205

Furniture 142 ” 3501

Hay 364 ” 630

Holloware 106 ” 214

Hats 529 ” 1719

Iron (Bar) 7 ” 39

” (Scrap) 24 ” 165

Luggage 95 ” 971

Millinery 315 ” 986

Sewing Machines 104 ” 350

Straw 788 ” 1256

Tobacco 53 ” 165

Wool 266 ” 747

Ditto (Australian pressed) 93 ” 282

The value of goods coming under the same description, and the risk

in conveying them, frequently vary as much as the cubical contents.

No matter what pains are taken to frame a fair classification,

it is to be feared that any classification based on a careful

consideration of the nature and value of the articles carried, and

all the varying circumstances of trade--and an omission to consider

any such element would work injustice--must appear to some traders

to be more or less anomalous. Some will still consider they have a

grievance to lay before Chambers of Commerce.

It may be well to state how the problem has been dealt with on the

Continent. The particulars given may be instructive to those who

hastily recommend an adoption of the systems in force abroad.

In France the classification of goods and rates is in a transition

state; and a large portion of the trading and manufacturing classes

are discontented with the charges at present made by the railway

companies. With a view of simplifying the tariff, in 1879 the

Minister of Public Works took steps to frame for adoption on all

the French Railways a classification divided into six classes.

Subsequently an attempt was made to prepare a uniform scale of

railway rates diminishing according to distance. But after a long

enquiry, and full consideration, the proposal was abandoned. In

1883, the Paris, Lyons, and Mediterranean Railway Company proposed

the adoption of a revised tariff, which professes to afford, on

the whole, a reduction in the rates as compared with the former

tariff. It was sanctioned by the Minister of Public Works in

August, 1885. It consisted of six classes for general goods in any

quantities, and six for goods of the special classes, which are

generally carried in lots of one and five tons. The latter six

classes were in substitution for the many special tariffs formerly

existing. The Eastern of France Railway Company also revised their

tariff, re-adjusting the classification, and reducing the number

of their special tariffs to 28. An article formerly carried at a

special tariff between certain specified stations is now charged at

the fourth class rate. But when carried generally, and not between

particular stations, such an article remains, as before, in the

second class. The Northern of France Railway Company have also

revised their tariffs on a somewhat similar basis.

Long debates on the subject of the charges under the new tariffs,

and on the railways generally, took place in the Chamber of

Deputies, in February and March last. There were complaints that

the “reformed tariff,” and particularly that of the Paris, Lyons,

and Mediterranean Company, had not brought about the anticipated

reductions, and that, while in some cases lower rates for certain

goods carried in large quantities had been conceded, higher rates

had been fixed for similar goods sent in small quantities. The rate

for 5 ton lots, for instance, is lower; but that for lots under 5

tons is generally higher. The larger traders had derived a benefit

from the change; but the small traders and consumers compared with

what they were, are placed at a disadvantage. So far the other

companies have not made any alteration in their tariffs.

Thus it will be seen that in France there is no uniform

classification. The tariffs of the companies, with the exception

of the Ouest, Nord and Est, are composed of a different number

of classes, and the number of articles enumerated in the

classification also varies. Articles, too, are not included in the

same classes on all lines. For instance, the Ouest enumerates 1686,

the Nord 1519, and the Paris, Lyons, and Méditerranée, 1425. The

tariffs are divided--

by the Compagnie de l’Ouest into 6 classes.

” ” ” l’Est ” 6 ”

” ” ” du Nord ” 6 ”

” ” ” Paris, Lyons, } 6 general tariff classes.

” ” ” Méditerranée } 6 special ” ”

” ” ” d’Orleans ” 4 classes.

” ” ” du Midi ” 5 ”

” ” ” de l’Etat ” 9 ”

The following examples show how the classifications vary:--

----------------------------------------------------------------------

| | | |Paris- | | |

| | | |Lyons- | | |

ARTICLE. |Ouest.| Est.| Nord.|Medite-|Orleans.| Midi.|Etat.

| | | | ranee.| | |

------------------+------+------+------+-------+--------+------+------

|Class.|Class.|Class.| Class.| Class. |Class.|Class.

Ironmongery | 4 | 2 | 2 | 2 | 2 | 3 | 2

Colours (common) | | | | | | |

in Casks | 4 | 1 | 1 | 1 | 3 | 3 | 4

Manure | 6 | 6 | 6 | 6 | 4 |Spec’l| 6

Flour | 4 | 4 | 4 | 4 | 3 | 3 | 4

Wool (raw) | 4 | 2 | 2 | 3 | 3 | 2 | 2

Machinery (packed)| 4 | 3 | 3 | 3 | 1 | 3 | 3

China in Casks and| | | | | | |

Crates | 3 | 1 | 1 | 1 | 2 | 2 | 1

Raw Sugar | 5 | 4 | 4 | 4 | 3 | 3 | 4

Potatoes in Bags | 5 | 4 | 4 | 4 | 3 | 3 | 4

Window Glass | 4 | 3 | 3 | 3 | 2 | 3 | 3

----------------------------------------------------------------------

In Germany, Holland and Belgium there is no such classification

as is in force in this country. Generally speaking, goods of all

descriptions, except wagon loads of 5 and 10 tons, are charged

according to weight, irrespective of their nature or value. In

Germany the railway tariff consists of 8 classes, viz.:--

1. _Grande Vitesse_ which includes articles of all

descriptions carried by

passenger train.[38]

2. “_Stückgut_,” or Which includes articles of all

“Piece” Goods. descriptions of less than

5 tons carried by goods

train.

3^{A1}. Wagon Loads Articles of all descriptions in

truck loads of 5 tons not

mentioned in the special

classes.

4^B. ” ” Articles of all descriptions in

truck loads of 10 tons.

5^{A2}. ” ” Certain articles specified in

the classification, in truck

loads of 5 tons.

6. Special Tariff, I. }

7. ” ” II. } Ditto in 10 ton lots.

8. ” ” III. }

[38] _Grande Vitesse_ goods are not always carried by passenger

train. They can be carried by any train the railway company may

determine, provided the time allowed by law, which is half the time

for ordinary goods, is not exceeded.

The system actually existing in Germany is a compromise. Previous

to 1878 different systems existed in North and South Germany. The

classification in use in the former was governed by the value of the

goods; while that in force in the latter was framed with particular

reference to their weight and measurement. In that year, however, an

attempt was made to reconcile the two systems; the “Reform Tariff,”

as it is called, was established on all the German railways. There

was a concession to the Southern system; rates for goods in covered

trucks in five or ten ton lots were adopted. The North system, on

the other hand, was recognised by establishing the Special tariff

classes, in which the relative value of the goods has been taken

into consideration. The actual classification is therefore dual; it

is a compromise between two totally different systems. Obviously it

does not accord with the requirements which have been put forward

by, or on behalf of, traders in this country.

In Belgium, also, there is practically no classification except for

traffic in full truck loads. The tariff consists of--

Tariff No. 1 Articles of all descriptions

up to 5 kilogrammes (11 lbs.)

carried by passenger trains.

Tariff No. 2 Articles of all descriptions

carried by ordinary passenger

trains, but chiefly articles

of all descriptions up to 200

kilogrammes (4 cwt.) carried by

goods trains.

Tariff No. 3--Class I.--Goods of all descriptions from

8 cwt. and upwards, conveyed

by goods trains.

{Certain goods specified in

” II.--{ the classification, in truck

” III.--{ loads of 5 tons.

” IV.--Certain goods specified in

the classification in truck

loads of 10 tons.

For Tariffs 1, 2, and Class I. of tariff No. 3, there is practically

no classification. All goods up to the specified weights are

included, without reference to their value or nature. Only in

respect of the wagon-load classes of tariff No. 3 does any

classification exist. In this classification, which applies to all

the Belgian railways, about 639 articles are enumerated. It is

assumed to be framed with reference to the value of the goods, the

mode of transit, the amount of the company’s responsibility, and the

circumstance of the goods being carried in open or covered trucks.

In Holland, the classification is very similar to that which exists

in Germany. Goods are divided into two classes, i.e., “_Stückgut_”

or “Piece” goods, to which belong all consignments less than 5

tons carried by goods train; and “_Truck Load_” goods, which

includes goods in truck loads of 5 or 10 tons, or which pay as

for those weights. The “_Stückgut_” class is subdivided into two

classes, and the “_Truck Load_” class into four classes. The total

number of articles enumerated in the classification is about 242.

Although the bases of the tariffs charged for conveyance differ,

the classification is practically the same on all the railways in

Holland. The following is an example of the classification of goods

on the Dutch Rhenish Railway. It will be seen that such articles as

coffee, cheese, butter, in consignments of less than 5 tons, are

included in the same class as coal, coke, gravel and raw iron; a

feature not likely to be imitated by admirers of the “scientific

classification” supposed to exist abroad.

----------------------------------------------------------------------

| In Lots of

|-----------------------

DESCRIPTION OF GOODS. | Less | 5 Tons|10 Tons

| than | and | and

|5 Tons.| above.| above.

----------------------------------------------+-------+-------+-------

Bark, asphalt pipes, petroleum, vinegar, clay | | |

drain pipes, oils, paper, trees, butter, | | |

fresh meat, coffee, spirits, cheese, hair, | | |

dyeing earths, pencils, sugar, sumac | II. | A |

| | |

Raw tobacco, pitch, lithographers’ stone, | | |

cabbage and vegetables in bulk, herrings, | | |

window glass, dye-woods, cotton yarn, | | |

Glauber-salts, soda, cotton twist, wool, jute| II. | B |

| | |

Raw asphalt, ashes, potato meal, beetroot, | | |

seeds, sheet iron, iron pipes, iron wire, | | |

lime, linseed, cake, lead, parts of machines,| | |

pasteboard, corn and grain, raw sugar, iron | II. | C |

| | |

Guano, grindstones in the rough, stone | | |

troughs, coal tar, worked stones, sleepers, | | |

spath millstone, fuel, marble in blocks | II. | D |

| | |

Raw iron, cast iron, gravel, wood, coal, | | |

limestone, pebbles, raw chalk, clay, manure, | | |

coal, coke, turf, ore, tiles | II. | D | S R

----------------------------------------------------------------------

This diversity of system and practice will give some idea of the

difficulty experienced in framing a classification suitable to

each country, or, indeed, to various portions of the same country.

The difficulty will be still better understood by observing the

different manner in which goods placed in the 2nd Class, under the

Railway Clearing House Classification, are classified in other

countries.

CLASSES.

----------------------------------------------------------------------

| | FRANCE. | | | |

| |-----------| | | |

DESCRIPTION OF |ENG- |Nord. |BEL- | HOL- | GER- | CANADA.

GOODS. |LAND.| |Ouest. |GIUM.|LAND. | MANY.|----------------

| | | |PLM| | | | Any | Car

| | | | | | | |Quantity| Loads.

---------------+-----+---+---+---+-----+------+------+--------+-------

Aerated Waters | 2 | 4 | 5 | 4 | 1 | Gen. | Gen. | 3 | 4

| | | | | |Tariff|Tariff| |

Agricultural | | | | | | | | |

Machines| ” | 2 | 2 | 2 | 1 | ” | ” |1, 1½ | ..

| | | | | | | | &D1 |

” Seeds | ” | 4 | 4 | 4 | 3 | B |S.T. 1| 2 | 5

Bacon and Hams | ” | 2 | 4 | 2 | 1 | Gen. | Gen. | 2 | 4

| | | | | |Tariff|Tariff| |

Bedsteads | ” | 2 | 3 | 2 | 2 | ” |S.T. 1| 1 | ..

Biscuits | ” | 1 | 1 | 1 | 1 | ” | Gen. | 2 | 4

| | | | | | |Tariff| |

Cattle Food | ” | 3 | 3 | 3 | 3 | B |S.T. 2| 3 | 5

Cheese (Packed)| ” | 2 | 4 | 2 | 1 | Gen. | Gen. | 3 | 4

| | | | | |Tariff|Tariff| |

Cider in Cases | ” | 2 | 4 | 2 | 1 | ” | ” | 3 | 4

Colours and | | | | | | | | |

Paints, Common| ” | 1 | 4 | 1 | 1 | ” | ” | 3 | 5

Confectionary | | | | | | | | |

in Casks | ” | 1 | 1 | 1 | 1 | ” | ” | 1 | 4

Flax, Raw | ” | 3 | 4 | 3 | 2 | ” |S.T. 2| 3 | 5

Hemp, Raw | ” | 3 | 4 | 3 | 2 | ” | ” | 3 | 5

Leather, | | | | | | | | |

Undressed | ” | 3 | 4 | 3 | 1 | ” | Gen. | 3 | 5

| | | | | | |Tariff| |

Osiers | ” | 2 | 4 | 2 | 2 | B |S.T. 2| 2 | 6

Preserves, | | | | | | Gen. | Gen. | |

Casks | ” | 3 | 4 | 3 | 1 |Tariff|Tariff| 2 | 4

Cotton Yarn for| | | | | | | | |

Weaving | ” | 2 | 2 | 2 | 1 | ” | ” | 3 | 5

----------------------------------------------------------------------

The following is a comparison of the number of articles included

in each classification, so far as such exists, in France, Germany,

Holland, and Belgium:--

CLASSES.

Chargeable

ENGLAND. Mineral Special First Second Third Fourth Fifth at Mileage

Scale, &c.

Railway Clearing

House 80 446 453 500 672 319 180 103

FRANCE. Sixth. Fifth. Fourth. Third. Second. First.[39]

Ouest 36 329 533 250 212 326

P.L.&M. 35 104 231 265 279 511

Nord 36 106 253 279 288 557

[39] The first class in France corresponds with the highest or fifth

class in England.

CLASSES.

BELGIUM.

Fourth. Third. Second. First.

168 177 294 Goods of all descriptions

in part loads.

HOLLAND.

B. C.

158 84

GERMANY.

Special Tariff 1. Special Tariff 2. Special Tariff 3.

314 119 176

The number of articles which the companies proposed to provide for

in the standard classification by their Bills deposited in the

Session of 1885, was 2,656, classified as under:--

CLASSES.

Mineral. Special. First. Second. Third. Fourth. Fifth.

86 389 469 483 682 334 213

Assuming that any maximum classification to be framed should comply

with the conditions which have been already stated, and that it

should accommodate trade in all districts of the country, the

classification suggested by the railway companies in their Bills

will bear the test of any fair inquiry. When the change which we

have indicated is carried out--when the maximum rate clauses of the

companies are consolidated and revised on an equitable basis having

regard to the present powers and to the new classification--traders

will be able easily to ascertain whether the charges made by the

companies are within their Parliamentary powers.

Railway Rates: English and Foreign · 第 10 / 17 章