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London, England, 1844-04-04 00:00:00

render it probable that a very large augmentation of the
aggregate receipts derivable from its internal communi-
cations will be realised within the lives of the present
generation. It is extremely difficult to judge how far
the multiplication of railways, more or less competing
with such as already subsist, may keep down their reve-
nues; but, assuming that in many cases this may be the
result, it appears, on the one hand, very possible that in
such instances, unless a more direct connexion be esta-
blished between the protection of existing lines and the
public interest, the property invested in them may be
exposed to unnecessary depreciation, and new capital
expended to large amounts without any adequate ad-
vantage ; and, on the other hand, that there
may be in other instances, where no abstraction of traffic
shall be caused by new lines, an augmentation of income
altogether beyond what is required for the due encou-
ragement of this kind of enterprise.
9. Adverting for the present exclusively to the latter
contingency, the Committee deem it clear, that although
the practical monopoly of Railway Companies has been
acquired in the main by the superior manner in which
they have accommodated the traffic of the country, it is
nevertheless regarded, even at the present day, with
considerable jealousy by the public at large; that such
jealousy may be expected rapidly to grow, if the profits of
Railways generally should be augmentedin any very great
degree; that questions of an embarrassing nature, feunded
upon the original views with which Parliament granted
Acts of Incorporation to Railway Companies, might be
raised, which it would be far better to obviate; and that
on these accounts it is wise to reserve on the part of the
State the right of intervention, at a date sufficiently
remote, in the concerns of these Companies, and of a
reconsideration of their powers and privileges.
10. Again, great as have been the benefits of Railways
to the public, that circumstance does not afford any good
reason against seeking, by any just and reasonable means
to enlarge those advantages. Now it is material to ob-
serve that in this country what is called the high fare
system ordinarily prevails; that the average charge of
Railway communication, a charge falling in no inconsi-
derable degree on trade and commerce, is very much
higher than in other countries where Railways have been
established; and that there is no clear or early prospect
of a general reduction of the rate of charge under the
present system of Independent Companies, even although
it might be possible that that great experiment might be
tried, if it were tried fully and universally, with no very
unfavourable result, even upon immediate returns. It is a
question which the Committee are far from thinking
themselves able at present to determine, whether it
would or not be• advisable that the Government should,
at a future period, endeavour to effect a material reduc-
tion of this charge ; and although, on the one hand, it
would be premature and most unwise in any degree to
prejudge this question, yet in the opinion of the Com-
mittee it is desirable to reserve to public authority the
means of forming a judgment upon it when a proper
time shall have arrived. at least in all those cases with
regard to which the Legislature does not stand com-
mitted, by proceedings already taken, to a different,
course.

11. The power and influence lodged in the hands of
Railway Companies, as well as the jealousy entertained
towards them by the public, might rise, under conceiv-
able circumstances, to an inconvenient height : and
though the Committee do not regard such a con-
tingency as one of very probable occurrence, yet they
consider that even its existence as a contingency may
come in aid of other and very forcible reasons for reserv-
ing, on the part of the State, an opportunity of resuming
its jurisdiction, and of establishing effective control over
the railways of the country.
12. The Committee are aware that it may be objected
to the adoption of a specific mode of dealing with new
railways, that it would be highly desirable to apply the
same mode of procedure to all undertakings of that
nature. But they have not thought that Parliament
would be justified in enacting, with regard to existing
railways, independently of the concurrence of the com-
panies, all the provisions which they are about to recom-
mend for new lines ; nor have they been able to devise,
as the basis of a voluntary arrangement, any terms, to
which a sufficiently general and early assent of
bodies so numerous and mixed could reason-
ably be anticipated. They believe, however, from
the evidence which has been given before them,
and for the most part by persons largely interested
In Railways, connected with their management, and eU-
joying in a high degree the confidenciof the proprietors,
that there exists among those bodies, to no inconsider-
able extent, an apprehension of the effects that may be
produced in the present state of trade and of the money
market, from the multiplication of undigested schemes,
and an anxiety to establish new and more definite rela-

Lions between- themselves and the State upon terms of
mutual advantage. And the Committee entertain the
hope, that among the existing Companies there may be
those which will be disposed to accede to arrangements,
resembling in their general principle and effect those
which are now proposed for new railways.
13. The House, however, will not fail to observe, that
there were reasons, during the infancy of railway en-
terprise and the uncertainty of its general success,
against imposing prospective liabilities upon projectors,
which have now in a great degree ceased to operate;
and that it may have been right not to subject the earlier
railways to any option of revision or purchase, and yet
may still be right to place railways now contemplated
under such conditions.

14. But although the efforts of earlier projectors have
reduced to comparative certainty, for the benefit of their
successor% much of what was to themselverdonbtflll-
- hazardous, it still remains in a high degree pro-
blematical what results of the railway system, at pre..
sent unforeseen, may be developed during the next fifteen
or twenty years.. In this state of things the Committee
would deem it unwise to enter into any engagements
which should tend to restrain the free action of the
Legislature or Government in future times, as it is im-
possible to judge what amount of inconvenience might
thereby be entailed; but they would propose that such
powers only should be taken as, even though they may
fall short of the full extent of the occasion when it ar-
rives, may be either exercised for some substantial ad-
vantage, or, at the worst, left in abeyance without
detriment.

15. And the Committee are disposed to believe that if
these powers be reasonable in their nature and amount,
the circumstance of their assumption, or rather of their
reservation, by Parliament, will have no tendency to dis-
courage railway enterprise, but, on the contrary, may
rather go to augment the rational confidence of parties
disposed to engage in it ; because the indirect interest
thus established in the railways, on the behalf of the
public, will tend to soften the jealousy with which the
great influence of the Companies, and their almost ex-
clusive command of traffic, are regarded, and to remove
to a greater distance the probability of any unfavourable
change in the tone of legislation respecting them, or of
any such undiscriminating encouragement of the multi-
plication of new lines in districts already provided with
accommodation, as would require the unnecessary ex-
penditure of new capital, and entail a depreciation ofex-
isting property, not compensated by corresponding ad-
vantage to the public.
16. The Committee will not at this time further ex-
plain their view of competition by new railway compa-
nies against old ones than by stating that they are in-
clined to believe it may be much more efficient, as an in-
strument of injury to those which already subsist, than
as a means of guaranteeing to the public increased
cheapness of travelling ; a result which there is reason
to believe can rarely or never be realised, under the pre-
sent circumstances of railways, from that source, for any
considerable length of time. But the. power of encou-
raging, or, if need be, of creating competition, even al-
though the remedy thus to be supplied might be partial,
and must be costly, is nevertheless an engine
of great capabilities in the hands of the
State, and one which might be used to prac-
tical advantage in any case in which railways
realising very large profits should manifest a disposition
to deal illiberally by the public.
17. In this remark respecting the undiscriminating
encouragement of competition, the Committee have con-
templated exclusively the class of lines which might be
instituted for the purpose of abstracting the traffic of
existing railways, and by no means such as, by materially
shortening the distances between important places, or
by opening up new sources of traffic from districts pre-
' viously unprevided for, are entitled to be judged upon
their independent merits.
18. Besides the important )lowers which the Committee
propose to reserve for optional exercise at a distant term,
they recommend the imposition upon new lines of railway
of certain immediate liabilities with regard to third-class
passengers, and to the service of public departments, which
they trust and believe will not be found onerous in their
operation.
19. The Committee have still to look forward to the
completion of many important parts of their inquiry.
They have not as yet fully examined into the changes
which it may be desirable to make in the Standing
Orders relating to Bills for new railways, and to the
construction of their works; the state of the law and
practice with regard to parochial rating ; the degree of
supervision which it may be wise for any department of
the Government to exercise over future railway schemes
in their earlier stages; the conditions which it may be
desirable to attach to the grant of new powers (whether
for amalgamation, for increase of capital, or for other
beneficial purposes) to companies already incorporated,
or under which any prospective and voluntary arrange-
ment for an option of purchase or revision might be made
applicable to them; or the general regulations of law ap-
plicable to all railway companies alike, which it may be
politic to adopt, with a view to the yet more safe and satis-
factory management of these most useful and most impor
tent concerns. To guard, however, against any misunder-
standing of these latter words, the Committee must add,
that they point chiefly to amendments in the law, and that
any discretionary powers of interference with their man-
agement which it might be thought fit to grant, should,
in their judgment, be restrained within the narrowest
limits.

20. Your Committee have now to submit the resolu-
tions with which they are to close this Report ; and in
doing so they have only to add, that while they have
studied to render them conformable in their principles
to the important considerations which have just been ex-
plained, they are aware that some of the particulars
stated in them—as, for example, the precise term of
fifteen years and of 10 per cent. respectivelyTnay be
open, upon sufficient cause shown, to some modification,
without impairing their general effect.

RESOLUTIONS OF THE SELECT COMMITTEE ON I
RAILWAYS, WITH REGARD TO NEW RAILWAYS.
I. That the powers to be granted by any Act of the
present or future sessions of Parliament, for the con-
struction of new lines of railway, whether trunk, branch,
or junction lines, shall be subject to the following con-
ditions
11. That if at the end of a term of years to be fixed,
the annual divisible profits upon' the paid-up share
capital of any such line of railway shall be equal to a
Per ce4tege 1r fixed.-or so soon after the eipiratien
of the , term as the • sad • per. centago :shall
have bee' reached, it shall be, in the option
of the either, lint, to Kraals the hile at