The principle of equal mileage rates, it may be added, has been
condemned by every Royal Commission and Parliamentary Committee
which has investigated the subject; and this condemnation has been
pronounced on grounds for the most part wholly independent of
the interests of railway companies. As pointed out by the Select
Committee of 1872, the principle would “prevent railway companies
from making perfectly fair arrangements for carrying at a lower
rate than usual goods brought in large and constant quantities,
or for carrying for long distances at a lower rate than for short
distances.”
“It would prevent railway companies from lowering their fares
and rates so as to compete with traffic by sea, by canal, or by
a shorter or otherwise cheaper railway, and would thus deprive
the public of the benefit of competition, and the company of a
legitimate source of profit.”
“It would compel a company to carry for the same rate over a
line which has been very expensive in construction or which from
gradients or otherwise is very expensive in working, at the same
rate at which it carries over less expensive lines.”
The Committee add--“It will be found that the supporters of equal
mileage, when pressed, often really mean, not that the rates they
themselves pay are too high, but that the rates which others pay are
too low.” In other words, they desire to apply the principle when it
works in their favour, and to reject it when it does not.[14]
[14] “We have nothing to do here with the study of the tariff
systems adopted on the Alsace-Lorraine lines, and extended with
some modifications to the generality of German lines. Seductive by
its simplicity, the principle of fixing the rate according to the
weight only, and without regard to the value of the object carried,
has not found numerous partisans in France. Such a radical reform
would overthrow our commercial habits, and would occasion results,
in a financial point of view, which would be impossible for us to
estimate.” Report of the French Commission of the Third System on
Railway Tariffs, by M. Richard Waddington. (Appendix 31 to Report
from the Select Committee on Railways (Rates and Fares), 1881-2,
Vol. 11. p. 449).
SECTION V.
DIFFERENTIAL RATES.
While shrinking from advocating equal mileage rates, many persons
take up an intermediate position. They object to rates being much
out of proportion to distance; they do so although the traffic may
not be carried over the same parts or sections of a railway. The
rates to which objection is taken are of several kinds:--Special
rates for export traffic; special rates for import traffic; transit
or through rates; special rates generally--special rates for long
distance as distinguished from short distance or intermediate
traffic.
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