To take one more illustration: steamboats ply between Liverpool
and Bristol. Goods carried by railway between these two places by
one or other of the three available routes must pass through some
one of the following places:--Birmingham, Worcester, Hereford,
Shrewsbury, Chester or Warrington. The local rates to all these
intermediate towns may appear disproportionate to those charged
between the extreme points. But is there any real injustice done?
Is it disadvantageous to the public that railway companies should
compete with sea carriage between different ports in the Kingdom?
Should not railway companies be allowed to accept in respect of
traffic so carried, which would otherwise be wholly lost to them,
a less percentage of profit without being compelled to reduce
all their rates to intermediate inland places to the same or
proportionately less amounts? What injustice is done to those whoso
goods are carried to and from intermediate inland places by the fact
that their rates are higher, or higher in proportion, than the
competitive rates, provided the rates to intermediate places are in
themselves fair and within the Company’s legal maximum?
A third source of complaint of disproportionate rates arises from
the competition between ports. Assume, for instance, port A to be
51 miles, port B 72 miles, and port C a greater distance from D,
one of the great seats of manufacture and commerce. The merchants
and shipowners at C and B desire to compete with A, and they induce
the railway company to carry from all three at the same rates. The
result is that the rates are lower for the throughout distance
than to and from some of the intermediate places. The grounds of
grievance would be removed by the railway company ceasing to carry
from C and B at the same rates as from A. But the importation
of foreign goods would continue; the only difference being that
they would be carried through one port instead of two or more.
And here a curious fact may be noted. If, in the case supposed,
the railways between A and D, B and D, and C and D belonged to
separate companies, in all probability no complaint would be
made of the rates from A, B, and C to D being the same. On the
contrary, competition being always desired by the public, it would
be considered in that case advantageous and in the interest of the
public. But because the lines between B and D and C and D belong
to the same company as that between A and D complaints are made on
account of the rates being equal. What is hailed in the one case as
a benefit is decried in the other as mischievous and unjust.[18]
Public-domain text, read in full here on John Shaqi.
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