Its legality has lately been called in question. It has been
supposed to be prohibited by the decision of the Railway
Commissioners in the case of the _Denaby Main Colliery Company_ v.
_Manchester, Sheffield, and Lincolnshire Railway Company_, which
came before them in January, 1880. The complaint was that the rates
and tolls charged to the owners of the Denaby Main Colliery, for
the conveyance of coal, both by railway and canal were an undue
prejudice and disadvantage to themselves and undue preference to
the others within the meaning of Section 2 of the Railway and
Canal Traffic Act, 1854. The railway rates from the Denaby Main
Colliery to Keadby, which is 25 miles, and to Grimsby, which is 56
miles, were 2s. 1½d. and 3s. 1d. per ton respectively. Similar
rates were charged from the other collieries in the same group,
although the distances between Keadby and Grimsby and the Denaby
Main Colliery were 15 miles less than the most distant of the other
collieries in the group. For all coal passing to certain places to
the eastward, the Denaby Main Colliery was grouped with 48 other
collieries in the same district. But, except in certain cases, the
collieries were not grouped for coal going to the west; on traffic
sent to places in that direction Denaby had to pay according to
its geographical position. With regard to some portion of their
traffic to the west, the Denaby Main Colliery had special rates. The
decision of the Railway Commissioners, which has not been reversed,
was that this particular grouping system did subject the proprietors
of the Denaby Main Colliery to undue and unreasonable prejudice and
disadvantage. But their decision was probably upon the facts, not
upon the law; and their finding really was that the group was too
large, and that the Denaby Main Colliery ought to be taken out of
it. The same question was to some extent discussed in the House of
Lords in the _Denaby Main Colliery Company Limited_ v. _Manchester,
Sheffield and Lincolnshire Railway Company_ (L.R. 11, A.C. p. 97);
and the observations of the learned law lords do not confirm the
opinion that grouping is _per se_ illegal.[21] If the contrary were
the case--if all such arrangements were necessarily illegal--the
result would be somewhat serious to trade.
[21] “I think that even if it were distinctly found that the
differences in the charges actually made were so disproportioned
to the differences in the cost as to be undue and unreasonable, it
would not impose an obligation to charge equally.”--Lord Blackburn,
p. 122.
A few particulars as to grouping on the Continent may be mentioned.
It will be found that it has been adopted there for the same reasons
as led to it here.
Public-domain text, read in full here on John Shaqi.
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