PROPOSED UNIFORM FARES AND RATES: | Passenger Fares: | Any Distance, so far as train travels. | | Main Lines: | First Class | 5/-, | Third Class | 1/-. | | Local Lines: | ” | 6d. | ” | 1d. | | Goods Rates: | Any Distance. | | Fast Service: | Average 10/- per ton. | | Slow Service: | ” 1/6 ” |
Introduction. Page 15. The Royal Mail.—Letters carried for same price any distance. Why not passengers and goods? Object of pamphlet to prove that this is financially possible with small uniform fares and rates mentioned. A Business Proposition for Nation and Shareholders. Page 17. All Railways to be purchased by State and amalgamated with General Post Office. Trains of two kinds only, viz.:— (1) Main Line Trains, i.e., non-stop for at least 30 miles. (2) Local Trains, i.e., all trains other than Main Line. Passenger tickets vary according to above fares only—no reference to stations or distance. Goods rates, payable by stamps vary only according to weight or size of goods, whether carried in bulk, in open or closed trucks, or with special packing, but irrespective of any other difference in nature or value of goods, or of distance, as now with parcel post. All Railway Stations to be Post Offices. All Post Offices to sell Railway Tickets, and, where required, to be Railway Receiving Offices. Steamers to be regarded as trains. Page 20. 1. Cheapness and regularity of transport. 2. Economy of service;—by unification of railways;—abolition of Railway Clearing House, of expenses of varying rates and fares, of multiplication of receiving offices, stations, &c.,—and by amalgamation with Post Office;—all railway land and buildings available for Government purposes—Postal, Civil, Military and Naval. 3. Progressive increase always follows adoption of small uniform fares (e.g., in Post Office); hence progressive increase of revenue available for working expenses, purchase money, extensions, improvements, and adoption of new safety appliances. Page 27. Present system founded on two principles, both mistaken and illogical, viz.:—(1) According to distance travelled. (2) According to “what the traffic will bear.” (1) Although cost of building 200 miles, and hauling train that distance is more than for two miles, yet because regular train service required for whole distance, say, A to Z and back, passing intermediate places, therefore cost of travelling from A to B, or to N, identical with A to Z. For goods, cost of loading and unloading twice only, whether sent from A to B, or A to Z. (2) Cost of hauling ton of coal exactly same as of bricks, sand, loaded van, in open truck, yet now different rates for each, according to “what the traffic will bear.” True principle advocated by Sir Rowland Hill in Penny Post—whole country suffers by neglect or expense of transport to distant parts, and gains by including small districts with same rates as populous parts. For a flat rate, three rules necessary. (a) Must not exceed lowest in use prior to adoption. (b) Increased traffic resulting must produce at least same net revenue. (c) Variations of rate to be according to speed, not distance. Hence: (a) 1d. now lowest fare, fixed for Local Lines. 1s. now lowest fare, (e.g., 2s. 6d. return London to Brighton) fixed for Main Lines. 1s. 6d. per ton fixed for goods train or slow service, as the present average for minerals, and allowing present lowest rate for goods in open trucks, rising to, say, 6d. per cwt. (10s. per ton) for small consignments, in covered trucks. 10s. per ton, now lowest “per passenger train” (e.g., 6d. per cwt. for returned empties) fixed for fast service.
(b) The increased traffic dealt with under “Finance.” (c) The two rates suggested for fast and slow trains solve the difficulty hitherto felt of charging lowest fare of 1d. as uniform fare—the 1s. fare and 10s. goods rate being double the present averages. Chapter IV.
OBJECTIONS TO THE SCHEME. 1.—State Ownership. Page 33. Writers for and against—All assume that on Nationalisation, system followed of charging according to distance, and to “what traffic will bear”—Fundamental differences between State Monopoly and Private Monopoly—Evils of applying profits of State monopolies in reductions of taxation—Strikes. Four rules to be observed on Nationalisation:— 1. Natural monopolies only to be taken over. 2. When taken over, only to be worked for benefit of community and not for profit. 3. Competition of private enterprises not to be prohibited. 4. Monopoly to be worked by Department of State responsible to Parliament. Chief grounds of objection to State ownership— (1) Difficulty of Government in dealing with conflicting interests of traders and general public. (2) Difficulty of Railway servants (being also voters) using political pressure to obtain better wages, against interests of traders and general public. Both of these objections removed if scheme (which avoids all preferential or differential rates or treatment) adopted with above four rules. Other grounds of objection, e.g., want of competition, officialism, &c., apply equally to present Company system, but may be remedied if owned by State. Suggested remedies:—Railway Council to deal with all matters of administration; Railway Courts to deal with questions of compensation, labour disputes, &c. Railways and Post Office being Department of State with Cabinet Minister at head subject to vote of censure in Parliament, provides better security for public than private Companies or Railway Trust. 2.—General Objections. Page 43. Fear of Losses— All existing staffs required for increased traffic—therefore no loss to them. Traders, like newspapers more than make up for any losses by economy in rates and fares and increased circulation. Mr. Acworth’s objections to “average” rates considered. Page 45. Present averages per annum in round figures taken from Board of Trade returns 1911 and 1912:— | Receipts from Passengers | £45,000,000 | | ” ” Goods per passenger train | 10,000,000 | | ” ” Goods Train Traffic | 64,000,000 | | ” (Miscellaneous) | 10,000,000 | | Gross Revenue | £129,000,000 | | Working Expenses | 81,000,000 | | Net Receipts | £48,000,000 | | Total Paid-up Capital and Debentures | £1,400,000,000 | Net receipts show average income of 3½ per cent. | Total passenger journeys (of which 10 per cent. were 1st and 2nd class) | 1,620,000,000 | Average fare for each journey only 6½d. | Total tonnage of goods:— | | | Estimate per passenger trains | 20,000,000 | | Actual per goods trains | 524,000,000 | | 544,000,000 | | Average rates per goods train:— | | | Minerals only | 1s. 6d. | per ton | | General Merchandise | 6s. | ” | | Both together | 2s. 4d. | ” |
Estimate under proposed scheme:— Page 48. I. Passengers.—Assuming Main Line passenger journeys are 300,000,000, i.e., under 20 per cent. of the total passenger journeys. | 300,000,000 | at 1s. | = | £15,000,000 | | add | 30,000,000 | at 4s. for 1st class | = | 6,000,000 | | 1,320,000,000 | at 1d. | = | 5,500,000 | | add | 132,000,000 | at 5d. for 1st class | = | 2,750,000 | | Present No. | 1,620,000,000 | will produce | | £29,250,000 | Increased number of Main Line passengers required to make up deficiency:— | 250,000,000 | at 1s | £12,500,000 | | | add | 25,000,000 | at 4s. extra | 5,000,000 | | | | £17,500,000 | | Estimated total | | £46,750,000 | This is £1,750,000 more than the present gross revenue from passengers and requires an increase of 250,000,000 = 15 per cent. on the total present number of passenger journeys. II. Goods. Total tonnage by goods train as now,
viz., 524,000,000, at 1s. 6d | £39,300,000 | | Ditto per passenger train, 20,000,000 at 10s | 10,000,000 | | Live Stock, as now | 1,500,000 | | £50,800,000 | Increased tonnage required to make up
present revenue, 48,000,000 tons at 10s. | 24,000,000 | | £74,800,000 | which is £800,000 more than present total receipts from goods per passenger and goods trains, and requires an increase of under 10 per cent. in tonnage. Reasons for anticipating increase:— (a) Of Passengers. Long distance journeys now restricted by expense.—Through tickets now counted as one journey will, under new scheme, be sometimes two or three, e.g., London to Londonderry would be three tickets—Every single journey taken, usually means also return journey home. (b) Of Goods. Example of Post Office—Before Penny Post, average price per letter 7d., and letters carried 76,000,000. After Penny Post, first year number doubled; in twenty years, increased by eight times; about doubled every twenty years since. Before three letters per head of population, now 72 per head. Goods now sent by road motors will, with cheaper rates, go by rail—perishable articles, now not sent at all by fast train owing to expense, will be sent when rates cheaper. Page 53. If increase of traffic no more than above, increase of working expenses negligible, apart from economies made by unification. Expense of carrying 200 passengers no more than 20. If increase of traffic more, then revenue increases, but working expenses only by about 50 per cent., as expenses of permanent way, stations, signal boxes, and establishment charges but little affected. Expenses of Post Office and Railways to be lumped together. Page 56. | Present total market price of all | | Railway Stock and shares about | £1,350,000,000 | | Debentures and Loans ” | 350,000,000 | | Total about | £1,700,000,000 |
Estimate of annual sum required according to precedent of purchase of the East Indian Railway Company, namely, by annuities for 73 years, equal to 4¼ per cent. per annum on market value, plus liability for Loans and Debentures with interest at 3 per cent. | 4¼ per cent. on £1,350,000,000 | £57,375,000 | | 3 ” ” 350,000,000 | 10,800,000 | | Total annual sum required for purchase | £68,175,000 | | Revenue available as per above estimates:— | | Passengers | £46,750,000 | | | Goods | 74,800,000 | | | Miscellaneous, as now | 10,000,000 | | £131,550,000 | | Less Working Expenses, with
say, increase of £4,000,000 | 85,000,000 | | | Net revenue available | | £46,550,000 | | Balance required for purchase | | £21,625,000 | | would be provided by following further increase of traffic, viz. | | 100,000,000 | passengers | at | 1s. | | £5,000,000 | | 10,000,000 | ” | ” | 4s. | | 2,000,000 | | 30,000,000 | tons | ” | 10s. | | 15,000,000 | | | £22,000,000 | This further traffic brings total increase of traffic to:— | 350,000,000 | passengers | = about 21 per cent. | | 78,000,000 | tons of goods | = about 15 per cent. | Essential to purchase all Railways at same date—Railway Stock to be converted into Government Stock—Price to be fixed by average of market price of Stocks for three years prior to introduction of Bill. Page 62. Interested parties not prejudiced—Staff now employed in services to be discarded will be required for increased traffic—Facility of transport will increase trade, and open new markets, not only here but abroad—Foreign countries would adopt reform as they did Postal system—Advantages of inter-communication with Foreign Nations.
ROYAL RAILWAYS
with Uniform Rates.
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