In alluding to the advantages which have been conferred by railways,
Mr. Stephenson is unfortunate in putting forward as an illustration,
the cheap transmission of the printed proceedings of Parliament. Under
the old postal system, and during the existence of mail coaches,
Parliamentary reports and proceedings _were conveyed by post free of
all charges_. On the introduction of penny postage, a postal charge for
their conveyance was imposed, and this charge has continued up to the
present day.
Referring to the relations between the Post Office and railway
companies as to the remuneration for mail service, I should observe,
that under the old mail-coach system, the Post Office was protected
from undue demands for the transmission of its mails along the public
highways of the kingdom by means of _competition_. The principle of
free trade in locomotion operated as a safeguard against extravagant
charges. Coach proprietors, who had established themselves on any
road, were prevented from taking advantage of their occupation of the
line to levy unreasonable charges for either passengers or mails, by
a wholesome fear of opposition. The result was, that by constantly
offering its contracts to public competition, the Post Office insured
the performance of its service on terms which afforded only a fair and
moderate profit to the contracting parties.
The introduction of railways practically destroyed competition, and
placed large monopolies in the hands of a few private companies; but,
to compensate for this, Parliament took the precaution of insuring
moderate charges for passenger conveyance, by special provision in
each Railway Act. Strange to say, a similar provision as regards the
remuneration for Post Office service was omitted, and it was deemed
sufficient to specify that the remuneration should be “reasonable;” a
most indefinite term, and one which has given rise to infinite variety
of opinion.
It is true that, failing an amicable settlement, provision is made
for a reference to arbitration; but, in the absence of any general
principles to guide the arbitrators or umpire in their judgment of
what is or is not reasonable, the question resolves itself into one
of individual opinion, and the consequence has been that the most
conflicting decisions have been arrived at in cases which, if not
identical, have been so nearly alike as to render it impossible to
reconcile the strange variation in the rates awarded.
Without, however, dwelling upon the uncertainty of arbitration, which
is by no means its least objectionable feature, it can readily be
shown that this mode of determining payments has led to results very
different from those implied by Mr. Stephenson, who states that for
trains put on to suit the Post Office service, very little remuneration
is allowed beyond the absolute outlay which the service entails, and
that the Post Office insists on the right of travelling at the mere
actual cost.
Public-domain text, read in full here on John Shaqi.
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