The Sun.
London, England, 1844-03-27 00:00:00

RAILWAY LEGISLATION.

(Letter addressed.. to Mr. Gladstone, and published by

Nickisson, Regent-street.) - -
We have now arrived at a point where the Govetrn-
ment is supposed to be_ prepared, to offer its assistance to
any lipes, on condition that they carry third-class pas-
sengers by every train at /d. per mile. There are cer-
'tainly many lines which would accept this ; but the data
on which we proceed are too slight to make it a safe
bargain. I propose, therefore, that it, shall be open to
revision every five years ; at the end of which time, if
the-dividend has averaged more than 7 per cent., the Go-
vernment shall be entitled to require such a diminution
of fares• as shall reduce the dividend back to 7 per cent.;
—that for all new lines, receiving Government assist-
ance, 7 per cent. shall be considered the maximum •divi-
dend :—that for all lines paying 5 per cent. or less; 2 per
cent. more than the actual dividend at the time of the
agreement shall be the maximum dividend:--that Govern-
ment may at any periodical revision. take into its own
hands sny line which has accepted their offer, by
securing to the proprietors their maximum dividend:—
..._that,O.4YeAUWIPAU ,f4ll--9Asikti.,Aorit.,§.Pwn han,(1494
-six months notice, afiffrafe' refusing to accept the vo-
vernment maximum, by securing to the proprietors one
per cent. more than their actual dividend :—that a
valuation of the stock or plant shall be taken at the
commencement and expiration of such notice ; and the
difference paid or allowed as the case Might be :—that
when any line accepted the Government maximum, or
received notice that the Government intended to take it
-into-its own hands, the Board of Trade should have
power to appoint a commissioner, who should be ex-
officio a director of that railway, and member of every
committee, to be paid in the same manner as his col-
leagues when attending ; it being understood that the
Government Commissioner should not take an active
part in the management of the railway, but be the organ
through whom the Board of Trade might obtain minute
information' and be also a check upon any unfair dealing
that might take place.
The whole management, patronage, power, and re-
sponsibility of directors of companies I would leave
precisely as they are at present.
• I think the operation of these measures would be as
-follows :—When once it was felt that Government in-
tended to act fairly, and pay full value for what the nation
got, the scheme. would be examined as a matter of _busi-
ness by those persons who, knowing best the capabilities
of their lines, would be the best judges. Some would
try it ;, if the trial proved successful, others would try
it ; if unsuccessful, it would show that Government
must' pay more, .or 'fix a higher fare. In some in
stances, it might not be a company's interest to accept
the Government maximum at once; but the natural
course of competition- would make it so in a few years;
and in the' other instances, where neither from com-
petition, nor any other cause, could it become the in-
terest of the railway company to give such cheap tra-
velling as the nation desires, I see no alternative but to
pay them the difference, to buy the concern at its full
price, to reduce the fares, and let the, loss fall upon
the nation generally. Eventually, however, capitalists
would be secured 7 per cent., and 'very cheap com-
munication obtained. The revision being only once in
five years would leave a stimulus to exertion on the part
of directors in the interim. Under the management of
local boards, the business of the railway companies and
of the country would be attended to; and among so
many . persons, a greater progress . would probably be
made in the art of conducting railways, than if it became
a department of Government, where regularity is often
attained at a sacrifice of that individual energy, from
which so much improvement springs.
The nation will never consent that, to protect existing
interests, a permanent dead weight shall, by mere in-
efficient "legislation, be fastened upon every new line.
Such fetters should be struck off. If railways, by the
mere course of events, the improvement of legislation and
the progress of science, can be produced more cheaply
than they once could, the value of the old ones must be
reduced in proportion, wherever they come into com-
petition. Wherever a dear line can exist, a cheap, line
- will flourish, and ruin its neighbour. Nothing can pre-
vent the old lines from sinking under this pressure, un-
less, with a wise foresight, they anticipate the evil day,
and take shelter under the shield of Government; unless
they consent to pay the .price of being constituted real
monopolies, even if that price should be " cheap travel-
ling for the working classes."