"compulsory purchase by the State of these railway systems great
and small, to be then worked and managed by an Irish elected
authority as one concern, mainly with a view of developing Irish
industries by reduction of rates and otherwise, and not strictly on
commercial principles."[97]
This was the scheme supported by the Parliamentary Party, written up
unceasingly by the _Freeman's Journal_, and held out under the term
"Nationalisation of Railways," as one of the special boons which Home
Rule will bring to Irish traders and farmers.
But mark how the operation is to be carried out. The Commission
reported that the sum required should be raised by a railway stock
charged primarily on the Consolidated Fund of the United Kingdom, with
recourse to Irish rates to make up possible deficiencies, and further,
that there should be an annual grant from the Exchequer of not less than
£250,000 to the Irish railway authority. Seeing that the Commissioners
refer to "the financial terms prescribed by the Act of 1844" (Regulation
of Railways Act, 7 & 8 Vict. c. 85, ss. 2-4), and that a _cash_ payment
to shareholders was provided for by that Act, it is to be presumed that
the Commissioners intended Irish shareholders to be paid in cash. The
Act of 1844 provided for payment to the companies of a sum in cash equal
to twenty-five years' purchase of the previous three years' annual
profits; but this was the minimum only, for it was provided that the
companies could, under arbitration, claim additional payment in respect
of future "prospects."
Now twenty-five years' purchase of the divisible profits, which at the
date of the Commission, were £1,690,000, would amount to over
£42,000,000, and if in addition sums had to be raised for "prospects,"
purchase of lines paying no dividend, special provision for prior stocks
standing at a premium, redemption of guarantees, and the large sums
required for the extensions and improvements we have mentioned, a sum
not less than £50,000,000, and probably nearer £55,000,000, would be
required.[98]
From the beginning to the end of the inquiry there was no suggestion
that this immense operation could be carried out except by the use of
Imperial credit, involving the two conditions: (1) that the Consolidated
Fund of the United Kingdom be charged, and (2) that the British public
be asked, and should be willing to find the money. Although the
Majority Report contemplated an Irish elected authority to work the
railways so purchased and amalgamated, it was never suggested that any
such Irish authority could raise the necessary purchase capital, or,
indeed, any portion of it. The whole scheme from beginning to end
pre-supposed the continuance of the Union, with its advantages of credit
and capital. Upset that Union, establish an Irish Parliament working out
its own salvation, financially and otherwise, and the basis of the whole
scheme of railway nationalisation vanishes.
That the British Government should allow its credit to be used to the
tune of fifty millions, after full legislative, executive and taxing
powers were handed over to an Irish Parliament, is too fantastic to be
considered seriously. Whether an Irish or English authority controlled
the working of the railways would under such circumstances make little
difference, with the Courts of Law, the Executive, and Police in other
hands than that of the Government guaranteeing the interest. The
security for the advance would be imperilled; and, indeed, it is
doubtful whether a tenth of the money required would be advanced, even
in London, on those terms. For a similar reason any formal pledge of
Irish rates and taxes, to make up deficiencies in working, would be
illusory. At any rate, if Irish Land Purchase is to be continued under
British credit (and it certainly will be a prior claim and charge), it
is idle to expect Parliament to undertake the vast additional
obligations involved in Irish railway nationalisation. Parliament would
pay the piper but could not call the tune.