Personal preferences were forbidden. But the companies were to
accommodate their rates to the circumstances of the traffic, the
Legislature’s mode of expressing the rule that the traffic should
pay what it could bear; and within the statutory maxima, the
companies were to be free to alter their tolls as they thought fit.
How far this was altered by s. 2 of the “Railway and Canal Traffic
Act, 1854,” need not here be considered. It is enough to say here
that, so far as s. 90 was concerned, differential rates were not
only not prohibited, but distinctly sanctioned. S.90 required
equality only in regard to traffic “passing between the same points
of departure and arrival, and passing over no other part of the
line.”[35]
[35] Earl of Selborne in _Denaby Main Colliery Company_ v.
_Manchester Sheffield and Lincolnshire Railway Company_.--L.R. 11
A.C. p. 113.
Consumers may profitably bear in mind the report of the Select
Committee on Railways (Rates and Fares), of 1881-2. Whilst stating
“Your Committee cannot recommend any new legislative interference
for the purpose of enforcing upon Railway Companies equality of
charge.” They add: “Some of the inequalities of charges complained
of are to the advantage rather than to the disadvantage of the
public, where there is an _undue preference_ the law now gives a
remedy.” They also give the following illustration:--
“That Greenock sugar refiners should be in the same markets as the
sugar refiners of London, while it may be a grievance to London
refiners, must be an advantage to Greenock refiners, and cannot be a
disadvantage to buyers of sugar.”
It is added that the effect of interference with the freedom to fix
rates according to special circumstances would in this instance be
“to give a practical monopoly to the London sugar refiners who would
be the real gainers by the transaction. It does not appear to your
Committee that such a result would be either just or reasonable.”
For more than forty years railway companies have been conforming
to these principles. They have been developing long as well as
short distance traffic, and aiding the opening of new industries.
They have done so to their own advantage, for though the return
on the capital expended on railways has been small, it has been
obtained on a large volume of traffic. They have been able to
benefit the commerce of the country to a degree which would have
been impracticable if, instead of rates being elastic and freely
accommodated to traffic, the traffic had been forced to adapt
itself to the rates. Producers pay what they find it worth while
to pay; they pay no more. In framing the statutory classification,
the Legislature assumed that producers would probably find it worth
while to pay the authorised charges. The companies find out what
such producers can in fact pay, and what rates will best promote
traffic. What preferable rule could be substituted?
SECTION X.
NEW CLASSIFICATION.
Public-domain text, read in full here on John Shaqi.
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