Page:The Economic Journal Volume 1.djvu/375

 ENGLISH RAILWAY PROBLEHS OF THE NEXT DECADE 353 Every committee that has investigated the subiect has admitted, not only in this country, but in America, in France, ancl in Italy, that 'equal mileage rates' are impossible ancl disastrous. Bismarck, in the height of his power, when he tool{ over the Prussian roads, thought to institute a logical system based on equal mileage, but failed completely. The particular case was, that Austrian corn used to have very much lower through export rates to North Sea ports over Prussian roads than the Prussian local rates, ancl Bismarck cut off these through rates. The traffic at once found its way over the Austrian roads to the Mediterranean ports, or clown the Elbe by water, ancl the Prussian railways lost the traffic, so that the Prussian State Railway managers found their receipts sinking enormously, ancl would have had to recoup themselves by raisin the local rates. The olcl system had to be reverted to, ancl the olcl system was economically right. For, whereas, the Prussian local corn rates paid the railways an interest, of say, 5 per cent. over working expenses, the foreign corn paid an interest also, though it might be only 2 per cent., ancl this 2 per cent. would not have been touched at all, had the lower rate not been granted. Every London shopkeeper probably does the same thing in selling one article at a profit of 10 per cent., ancl another at a price which gives him a bare 1 per cent. If the principle be once admitted as fair, the obiect of insuring publicity in rates is clear. It is that the differential rate may be iustifiecl by the company on fair ancl logical grounds, ancl not on the grouncls of farour. W'ithout such publicity, ., without bein bound to give open reasons (which, if necessary, must afterwards be made good in a court of law), any unscrupulous goods manafter might get hold of competitive traffic by personal discrimination, or more than this, one town or district might be farourea at the expense of another. It would seem from the evidence of Mr. Findlay, General Manager of the London ancl North Western Railway, before the Railway Rates Tribunal of last year, that the great majority of railway men admit the principle of publicity, ancl have abandoned the untenable stanclpoint of the Liberty and Property Defence League, viz., that a railway company is a purely private concern, whose directors may deal exactly as they please with the public in the matter of 'rates, without being bound to furnish any explanation of apparent anomalies. No. 2. VOL. I A A