Of the various causes which have operated to bring about the comparative decay of the British canal system (for, as already shown, there are sections that still retain a certain amount of vitality), the most important are to be found in the great changes that have taken place in the general conditions of trade, manufacture and commerce.

The tendency in almost every branch of business to-day is for the trader to have small, or comparatively small, stocks of any particular commodity, which he can replenish speedily at frequent intervals as occasion requires. The advantages are obvious. A smaller amount of capital is locked up in any one article; a larger variety of goods can be dealt in; less accommodation is required for storage; and men with limited means can enter on businesses which otherwise could be undertaken only by individuals or companies possessed of considerable resources. If a draper or a grocer at Plymouth finds one afternoon that he has run short of a particular article, he need only telegraph to the wholesale house with which he deals in London, and a fresh supply will be delivered to him the following morning. A trader in London who wanted something from Dublin, and telegraphed for it one day, would expect as a matter of course to have it the next. What, again, would a London shopkeeper be likely to say if, wanting to replenish his limited stock with some Birmingham goods, he was informed by the manufacturer:—"We are in receipt of your esteemed order, and are sending the goods on by canal. You may hope to get them in about a week"?

With a little wider margin in the matter of delivery, the same principle applies to those trading in, or requiring, raw materials—coal, steel, ironstone, bricks, and so on. Merchants, manufacturers, and builders are no more anxious than the average shopkeeper to keep on hand stocks unnecessarily large, and to have so much money lying idle. They calculate the length of time that will be required to get in more supplies when likely to be wanted, and they work their business accordingly.

From this point of view the railway is far superior to the canal in two respects, at least.

First, there is the question of speed. The value of this factor was well recognised so far back as 1825, when, as I have told on page 25, Mr Sandars related how speed and certainty of delivery were regarded as "of the first importance," and constituted one of the leading reasons for the desired introduction of railways. But speed and certainty of delivery become absolutely essential when the margin in regard to supplies on hand is habitually kept to a working minimum. The saving in freight effected as between, on the one hand, waiting at least several days, if not a full week, for goods by canal boat, and, on the other, receiving them the following day by train, may be more than swallowed up by the loss of profit or the loss of business in consequence of the delay. If the railway transport be a little more costly than the canal transport, the difference should be fully counterbalanced by the possibility of a more rapid turnover, as well as the other advantages of which I have spoken.

In cases, again, where it is not a matter of quickly replenishing stocks but of effecting prompt delivery even of bulky goods, time may be all-important. This fact is well illustrated in a contribution, from Birmingham, published in the "Engineering Supplement" of The Times of February 14, 1906, in which it was said:—

Now where, in cases such as these, "urgent delivery is impressed by buyers," and the utmost energy is probably being enforced on the workers, is it likely that even the heavy goods so made would be sent down to the port by the tediously slow process of canal boat, taking, perhaps, as many days as even a goods train would take hours? Alternatively, would the manufacturers run the risk of delaying urgent work by having the raw materials delivered by canal boat in order to effect a small saving on cost of transport?

Certainty of delivery might again be seriously affected in the case of canal transport by delays arising either from scarcity of water during dry seasons, or from frost in winter. The entire stoppage of a canal system, from one or other of these causes, for weeks together, especially on high levels, is no unusual occurrence, and the inconvenience which would then result to traders who depended on the canals is self-evident. In Holland, where most of the goods traffic goes by the canals that spread as a perfect network throughout the whole country, and link up each town with every other town, the advent of a severe frost means that the whole body of traffic is suddenly thrown on the railways, which then have more to get through than they can manage. Here the problem arises: If waterways take traffic from the railways during the greater part of the year, should the railways still be expected to keep on hand sufficient rolling stock, etc., not only for their normal conditions, but to meet all the demands made upon them during such periods as their competitors cannot operate?

There is an idea in some quarters that stoppage from frost need not be feared in this country because, under an improved system of waterways, measures would be taken to keep the ice on the canals constantly broken up. But even with this arrangement there comes a time, during a prolonged frost, when the quantity of broken ice in the canal is so great that navigation is stopped unless the ice itself is removed from the water. Frost must, therefore, still be reckoned with as a serious factor among the possibilities of delay in canal transport.

Secondly, there is the question of quantities. For the average trader the railway truck is a much more convenient unit than the canal boat. It takes just such amount as he may want to send or receive. For some commodities the minimum load for which the lowest railway rate is quoted is as little as 2 tons; but many a railway truck has been run through to destination with a solitary consignment of not more than half-a-ton. On the other hand, a vast proportion of the consignments by rail are essentially of the "small" type. From the goods depÔt at Curzon Street, Birmingham, a total of 1,615 tons dealt with, over a certain period, represented 6,110 consignments and 51,114 packages, the average weight per consignment being 5 cwts. 1 qr. 4 lbs., and the average weight per package, 2 qrs. 14 lbs. At the Liverpool goods depÔts of the London and North-Western Railway, a total weight of 3,895 tons handled consisted of 5,049 consignments and 79,513 packages, the average weight per consignment being 15 cwts. 1 qr. 20 lbs., and the average weight per package 3 qrs. 26 lbs. From the depÔt at Broad Street, London, 906 tons represented 6,201 consignments and 23,067 packages, with an average weight per consignment of 2 cwts. 3 qrs. 19 lbs., and per package, 3 qrs. 4 lbs.; and so on with other important centres of traffic.

There is little room for doubt that a substantial proportion of these consignments and packages consisted partly of goods required by traders either to replenish their stocks, or, as in the case of tailors and dressmakers, to enable them to execute particular orders; and partly of commodities purchased from traders, and on their way to the customers. In regard to the latter class of goods, it is a matter of common knowledge that there has been an increasing tendency of late years to eliminate the middleman, and establish direct trading between producer and consumer. Just as the small shopkeeper will purchase from the manufacturer, and avoid the wholesale dealer, so, also, there are individual householders and others who eliminate even the shopkeeper, and deal direct with advertising manufacturers willing to supply to them the same quantities as could be obtained from a retail trader.

For trades and businesses conducted on these lines, the railway—taking and delivering promptly consignments great or small, penetrating to every part of the country, and supplemented by its own commodious warehouses, in which goods can be stored as desired by the trader pending delivery or shipment—is a far more convenient mode of transport than the canal boat; and to the railway the perfect revolution that has been brought about in the general trade of this country is mainly due. Business has been simplified, subdivided, and brought within the reach of "small" men to an extent that, but for the railway, would have been impossible; and it is difficult to imagine that traders in general will forego all these advantages now, and revert once more to the canal boat, merely for the sake of a saving in freight which, in the long run, might be no saving at all.

Here it may be replied by my critics that there is no idea of reviving canals in the interests of the general trader, and that all that is sought is to provide a cheaper form of transport for those heavier or bulkier minerals or commodities which, it is said, can be carried better and more economically by water than by rail.

Now this argument implies the admission that canal resuscitation, on a national basis, or at the risk more or less of the community, is to be effected, not for the general trader, but for certain special classes of traders. As a matter of fact, however, such canal traffic as exists to-day is by no means limited to heavy or bulky articles. In their earlier days canal companies simply provided a water-road, as it were, along which goods could be taken by other persons on payment of certain tolls. To enable them to meet better the competition of the railways, Parliament granted to the canal companies, in 1846, the right to become common carriers as well, and, though only a very small proportion of them took advantage of this concession, those that did are indebted in part to the transport of general merchandise for such degree of prosperity as they have retained. The separate firms of canal carriers ("by-traders") have adopted a like policy, and, notwithstanding the changes in trade of which I have spoken, a good deal of general merchandise does go by canal to or from places that happen to be situated in the immediate vicinity of the waterways. It is extremely probable that if some of the canals which have survived had depended entirely on the transport of heavy or bulky commodities, their financial condition to-day would have been even worse than it really is.

But let us look somewhat more closely into this theory that canals are better adapted than railways for the transport of minerals or heavy merchandise, calling for the payment of a low freight. At the first glance such a commodity as coal would claim special attention from this point of view; yet here one soon learns that not only have the railways secured the great bulk of this traffic in fair and open competition with the canals, but there is no probability of the latter taking it away from them again to any appreciable extent.

Some interesting facts in this connection were mentioned by the late Sir James Allport in the evidence he gave before the Select Committee on Canals in 1883. Not a yard, he said, of the series of waterways between London and Derbyshire, Nottinghamshire, part of Staffordshire, Warwickshire and Leicestershire—counties which included some of the best coal districts in England for supplying the metropolis—was owned by railway companies, yet the amount of coal carried by canal to London had steadily declined, while that by rail had enormously increased. To prove this assertion, he took the year 1852 as one when there was practically no competition on the part of the railways with the canals for the transport of coal, and he compared therewith the year 1882, giving for each the total amount of coal received by canal and railway respectively, as follows:—

The figures quoted by Sir James Allport were taken from the official returns in respect to the dues formerly levied by the City of London and the late Metropolitan Board of Works on all coal coming within the Metropolitan Police Area, representing a total of 700 square miles; though at an earlier period the district in which the dues were enforced was that included in a 20-mile radius. The dues were abolished in 1889, and since then the statistics in question have no longer been compiled. But the returns for 1889 show that the imports of coal, by railway and by canal respectively, into the Metropolitan Police Area for that year were as follows:—

If, therefore, the independent canal companies, having a waterway from the colliery district of the Midlands and the North through to London (without, as already stated, any section thereof being controlled by railway companies), had improved their canals, and doubled, trebled, or even quadrupled the quantity of coal they carried in 1889, their total would still have been insignificant as compared with the quantity conveyed by rail.

The reasons for this transition in the London coal trade (and the same general principle applies elsewhere) can be readily stated. They are to be found in the facilities conferred by the railway companies, and the great changes that, as the direct result thereof, have taken place in the coal trade itself. Not only are most of the collieries in communication with the railways, but the coal waggons are generally so arranged alongside the mouth of each pit that the coal, as raised, can be tipped into them direct from the screens. Coal trains, thus made up, are next brought to certain sidings in the neighbourhood of London, where the waggons await the orders of the coal merchants to whom they have been consigned. At Willesden, for example, there is special accommodation for 2,000 coal waggons, and the sidings are generally full. Liberal provision of a like character has also been made in London by the Midland, the Great Northern, and other railway companies in touch with the colliery districts. An intimation as to the arrival of the consignments is sent by the railway company to the coal merchant, who, in London, is allowed three "free" days at these coal sidings in which to give instructions where the coal is to be sent. After three days he is charged the very modest sum of 6d. per day per truck. Assuming that the coal merchant gives directions, either within the three days or later, for a dozen trucks, containing particular qualities of coal, to be sent to different parts of London, north, south, east and west, those dozen trucks will have to be picked out from the one or two thousand on the sidings, shunted, and coupled on to trains going through to the stated destination. This represents in itself a considerable amount of work, and special staffs have to be kept on duty for the purpose.

Then, at no fewer than one hundred and thirty-five railway stations in London and the suburbs thereof, the railway companies have provided coal depÔts on such vacant land as may be available close to the local sidings, and here a certain amount of space is allotted to the use of coal merchants. For this accommodation no charge whatever is made in London, though a small rent has to be paid in the provinces. The London coal merchant gets so many feet, or yards, allotted to him on the railway property; he puts up a board with his name, or that of his firm; he stores on the said space the coal for which he has no immediate sale; and he sends his men there to fetch from day to day just such quantities as he wants in order to execute the orders received. With free accommodation such as this at half a dozen, or even a score, of suburban railway stations, all that the coal merchant of to-day requires in addition is a diminutive little office immediately adjoining each railway station, where orders can be received, and whence instructions can be sent. Not only, also, do the railway companies provide him with a local coal depÔt which serves his every purpose, but, after allowing him three "free" days on the great coal sidings, to which the waggons first come, they give him, on the local sidings, another seven "free" days in which to arrange his business. He thus gets ten clear days altogether, before any charge is made for demurrage, and, if then he is still awaiting orders, he has only to have the coal removed from the trucks on to the depÔt, or "wharf" as it is technically called, so escaping any payment beyond the ordinary railway rate, in which all these privileges and advantages are included.

If canal transport were substituted for rail transport, the coal would first have to be taken from the mouth of the pit to the canal, and, inasmuch as comparatively few collieries (except in certain districts) have canals immediately adjoining, the coal would have to go by rail to the canal, unless the expense were incurred of cutting a branch of the canal to the colliery—a much more costly business, especially where locks are necessary, than laying a railway siding. At the canal the coal would be tipped from the railway truck into the canal boat,[8] which would take it to the canal terminus, or to some wharf or basin on the canal banks. There the coal would be thrown up from the boat into the wharf (in itself a more laborious and more expensive operation than that of shovelling it down, or into sacks on the same level, from a railway waggon), and from the wharf it would have to be carted, perhaps several miles, to final destination.

Under this arrangement the coal would receive much more handling—and each handling means so much additional slack and depreciation in value; a week would have to be allowed for a journey now possible in a day; the coal dealers would have to provide their own depÔts and pay more for cartage, and they would have to order particular kinds of coal by the boat load instead of by the waggon load.

This last necessity would alone suffice to render the scheme abortive. Some years ago when there was so much discussion as to the use of a larger size of railway waggon, efforts were made to induce the coal interests to adopt this policy. But the 8-ton truck was so convenient a unit, and suited so well the essentially retail nature of the coal trade to-day, that as a rule the coal merchants would have nothing to do with trucks even of 15 or 20 tons. Much less, therefore, would they be inclined to favour barge loads of 200 or 250 tons.

Exceptions might be made in the case of gas works, or of factories already situated alongside the banks of canals which have direct communication with collieries. In the Black Country considerable quantities of coal thus go by canal from the collieries to the many local ironworks, etc., which, as I have shown, are still actively served by the Birmingham Canal system. But these exceptions can hardly be offered as an adequate reason for the nationalisation of British canals. The general conditions, and especially the nature of the coal trade transition, will be better realised from some figures mentioned by the chairman of the London and North-Western Railway Company, Lord Stalbridge, at the half-yearly meeting in February 1903. Notwithstanding the heavy coal traffic—in the aggregate—the average consignment of coal, he showed, on the London and North-Western Railway is only 17½ tons, and over 80 per cent. of the total quantity carried represents consignments of less than 20 tons, the actual weights ranging from lots of 2 tons 14 cwts. to close upon 1,000 tons for shipment.

"But," the reader may say, "if coal is taken in 1,000-ton lots to a port for shipment, surely canal transport could be resorted to here!" This course is adopted on the Aire and Calder Navigation, which is very favourably situated, and goes over almost perfectly level ground. The average conditions of coal shipment in the United Kingdom are, however, much better met by the special facilities which rail transport offers.

Of the way in which coal is loaded into railway trucks direct from the colliery screens I have already spoken; but, in respect to steam coal, it should be added that anthracite is sold in about twelve different sizes, and that one colliery will make three or four of these sizes, each dropped into separate trucks under the aforesaid screens. The output of an anthracite colliery would be from 200 to 300 tons a day, in the three or four sizes, as stated, this total being equal to from 20 to 30 truck-loads. An order received by a coal factor for 2,000 or 3,000 tons of a particular size would, therefore, have to be made up with coal from a number of different collieries.

The coal, however, is not actually sold at the collieries. It is sent down to the port, and there it stands about for weeks, and sometimes for months, awaiting sale or the arrival of vessels. It must necessarily be on the spot, so that orders can be executed with the utmost expedition, and delays to shipping avoided. Consequently it is necessary that ample accommodation should be provided at the port for what may be described as the coal-in-waiting. At Newport, for example, where about 4,000,000 tons of coal are shipped in the course of the year (independently of "bunkers,") there are 50 miles of coal sidings, capable of accommodating from 40,000 to 50,000 tons of coal sent there for shipment. A record number of loaded coal trucks actually on these sidings at any one time is 3,716. The daily average is 2,800.

Now assume that the coal for shipment from Newport had been brought there by canal boat. To begin with, it would have been first loaded, by means of the colliery screens, into railway trucks, taken in these to the canal, and then tipped into the boats. This would mean further breakage, and, in the case of steam coal especially, a depreciation in value. But suppose that the coal had duly arrived at the port in the canal boats, where would it be stored for those weeks and months to await sale or vessels? Space for miles of sidings on land can easily be found; but the water area in a canal or dock in which barges can wait is limited, and, in the case of Newport at least, it would hardly be equal to the equivalent of 3,000 truck-loads of coal.

There comes next the important matter of detail as to the way in which coal brought to a port is to be shipped. Nothing could be simpler and more expeditious than the practice generally adopted in the case of rail-borne coal. When a given quantity of coal is to be despatched, the vessel is brought alongside a hydraulic coal-tip, such as that shown in the illustration facing this page, and the loaded coal trucks are placed in succession underneath the tip. Raised one by one to the level of the shoot, the trucks are there inclined to such an angle that the entire contents fall on to the shoot, and thence into the hold of the ship. Brought to the horizontal again, the empty truck passes on to a viaduct, down which it goes, by gravitation, back to the sidings, the place it has vacated on the tip being at once taken by another loaded truck.

Substitute coal barges for coal trucks, and how will the loading then be accomplished? Under any possible circumstances it would take longer to put a series of canal barges alongside a vessel in the dock than to place a series of coal trucks under the tip on shore. Nor could the canal barge itself be raised to the level of a shoot, and have its contents tipped bodily into the collier. What was done in the South Wales district by one colliery some years ago was to load up a barge with iron tubs, or boxes, filled with coal, and placed in pairs from end to end. In dock one of these would be lifted out of the barge by a crane, and lowered into the hold, where the bottom would be knocked out, the emptied tub being then replaced in the barge by the crane, and the next one to it raised in turn. But, apart from the other considerations already presented, this system of shipment was found more costly than the direct tipping of railway trucks, and was consequently abandoned.

Although, therefore, in theory coal would appear to be an ideal commodity for transport by canal, in actual practice it is found that rail transport is both more convenient and more economical, and certainly much better adapted to the exigences of present day trade in general, in the case alike of domestic coal and of coal for shipment. Whether or not the country would be warranted in going to a heavy expense for canal resuscitation for the special benefit of a limited number of traders having works or factories alongside canal banks is a wholly different question.

I take next the case of raw cotton as another bulky commodity carried in substantial quantities. At one time it was the custom in the Lancashire spinning trade for considerable supplies to be bought in Liverpool, taken to destination by canal, and stored in the mills for use as required. A certain proportion is still handled in this way; but the Lancashire spinners who now store their cotton are extremely few in number, and represent the exception rather than the rule. It is found much more convenient to receive from Liverpool from day to day by rail the exact number of bales required to meet immediate wants. The order can be sent, if necessary, by post, telegraph, or telephone, and the cotton may be expected at the mill next day, or as desired. If barge-loads of cotton were received at one time, capital would at least have to be sunk in providing warehousing accommodation, and the spinner thinks he can make better use of his money.

The day-by-day arrangement is thus both a convenience and a saving to the trader; though it has one disadvantage from a railway standpoint, for cotton consignments by rail are, as a rule, so small that there is difficulty in making up a "paying load" for particular destinations. As the further result of the agitation a few years ago for the use of a larger type of railway waggons, experiments have been made at Liverpool with large trucks for the conveyance especially of raw cotton. But, owing to the day-by-day policy of the spinners, it is no easy matter to make up a 20-ton truck of cotton for many of the places to which consignments are sent, and the shortage in the load represents so much dead weight. Consignments ordered forward by rail must, however, be despatched wholly, or at any rate in part, on day of receipt. Any keeping of them back, with the idea of thus making up a better load for the railway truck, would involve the risk of a complaint, if not of a claim, against the railway company, on the ground that the mill had had to stop work owing to delay in the arrival of the cotton.

If the spinners would only adopt a two- or three-days-together policy, it would be a great advantage to the railways; but even this might involve the provision of storage accommodation at the mills, and they accordingly prefer the existing arrangement. What hope could there be, therefore, except under very special circumstances, that they would be willing to change their procedure, and receive their raw cotton in bulk by canal boat?

Passing on to other heavy commodities carried in large quantities, such as bricks, stone, drain-pipes, manure, or road-making materials, it is found, in practice, that unless both the place whence these things are despatched and the place where they are actually wanted are close to a waterway, it is generally more convenient and more economical to send by rail. The railway truck is not only (once more) a better unit in regard to quantity, but, as in the case of domestic coal, it can go to any railway station, and can often be brought miles nearer to the actual destination than if the articles or materials in question are forwarded by water; while the addition to the canal toll of the cost of cartage at either end, or both, may swell the total to the full amount of the railway rate, or leave so small a margin that conveyance by rail, in view of the other advantages offered, is naturally preferred. Here we have further reasons why commodities that seem to be specially adapted for transport by canal so often go by rail instead.

There are manufacturers, again, who, if executing a large shipping order, would rather consign the goods, as they are ready, to a railway warehouse at the port, there to await shipment, than occupy valuable space with them on their own premises. Assuming that it might be possible and of advantage to forward to destination by canal boat, they would still prefer to send off 25 or 30 tons at a time, in a narrow boat (and 25 to 30 tons would represent a big lot in most industries), rather than keep everything back (with the incidental result of blocking up the factory) until, in order to save a little on the freight, they could fill up a barge of 200 or 300 tons.

So the moral of this part of my story is that, even if the canals of the country were thoroughly revived, and made available for large craft, there could not be any really great resort to them unless there were, also, brought about a change in the whole basis of our general trading conditions.