Chapter XIV: Section XIII

WORKING OF ENGLISH AND CONTINENTAL RAILWAYS--COMPARATIVE FACILITIES AFFORDED BY THEM.

So much for the strikingly different modes in which the English and continental railways have been constructed; the one system a history of unaided private enterprise, the other a history of a policy pursued by great States with the resources of Imperial Exchequers, and with English experience as a guide. Had railways in this country received the same assistance as foreign lines, the cost and working expenses being the same, the demand that the former should have rates as low as the latter would not be unreasonable. But a comparison of the facilities afforded here and on the Continent to trades and production will not be unfavourable to the English companies. It will be seen that, in the words of the late Professor Stanley Jevons, “Taking all circumstances into account, England and Wales are better supplied with railways than any other country in the world,” whether we have regard to extent or efficiency.

In the first place, it is well known that the time occupied in the conveyance of goods is less in this country than on foreign railways. In France, for instance, the time allowed by the orders of the Minister of Public Works, before forwarding for the purpose of loading, is one day; for the transit of goods over a distance of 93 miles, there is another clear day--making two days; and for a distance of 170 miles, three days, exclusive of the time necessary for collection and delivery. In other words, traffic delivered at a station on a Monday, must be at the disposal of the consignee on the Thursday morning following at any station within 150 kilometres (93 miles) distant from the sending station. If the goods have to be “delivered to domicile”--that is, at the consignee’s residence or place of business--the time allowed by the tariff for delivery is one day--that is, in the case supposed, they must be “delivered to domicile” during the Thursday. No doubt, goods requiring speedy transit can be forwarded by _grande vitesse_ (ordinary passenger train), a service which is equivalent in respect of speed to a large portion of the goods trains in England. But the rates charged for conveyance by _grande vitesse_ in France are about three times as much as the highest class rate by goods train.

In Germany, the general regulations prescribe the maximum time for delivery of goods as follows: for “_Eilgut_” (goods carried by passenger train), one day for loading and forwarding, and one day for every 300 kilometres (186 miles) or part thereof. For “_Frachtgut_” (goods train traffic), two days may be taken for loading and forwarding, and for the first 100 kilometres (62 miles) one day; for every part of each subsequent 200 kilometres (124 miles) one day. The time of transit is assumed to commence at midnight following the date of the stamp on the consignment note.

In Holland, the time allowed for “express goods” before forwarding is 24 hours, and for conveyance for each 186 miles or part thereof, another 24 hours.[55] For general goods the time allowed before forwarding is 48 hours and for the conveyance, 48 hours for each 186 miles or part thereof. As in Belgium, the time allowed for transport commences at midnight following the stamping of the consignment note.

[55] For further particulars see Appendix III.

In Belgium all goods carried under the conditions of tariff No. 3[56] (which applies to consignments exceeding 4 cwt. in weight) are due at the receiving station three full days after delivery of the goods to the company. This does not apply if there is a glut of traffic; and another full day is allowed if the railway company deliver by cart.

[56] For particulars see Appendix III.

Goods may by law be kept in some of the countries which have been mentioned for two days before being despatched; two clear days are allowed for 186 miles or part thereof; and when rapid transit is required, as in case of express goods, the rates are much higher than those charged by goods train. In this country, on the other hand, goods are, as a rule, forwarded on the day or during the night of the day on which they are brought to the station; and between important places within 200 miles, goods are usually delivered the following day. As a matter of general practice, the maximum time allowed abroad is not fully occupied; but it is recognised by law. This advantage which the foreign railways possess implies others, which can only be fully appreciated by persons practically acquainted with the mystery of railways. The ample time allowed before forwarding and in transit permits of considerable economy in the use of wagons. Opportunities are afforded for making full wagon and full train loads. This circumstance, too, reduces train mileage. A further consequence is the diminution of claims for compensation and in other items of expense. The speed of the trains being slow, and the time allowed in transit being great, larger loads are practicable.

Liability for compensation for delay or damage in transit is another element to be taken into consideration in any comparison of rates. In Belgium and Holland, where rates are especially low, the liability to pay compensation is very limited. Belgian railway companies are not responsible in the case of goods carried under the conditions of tariff No. 2, unless specially insured, for a delay of one day after the time allowed for delivery, or in the case of goods carried under tariff No. 3 (all consignments above 4 cwts.), for a delay of two days after the time allowed for delivery. Their responsibility for delay in excess of these times is, moreover, limited to one-tenth of the carriage for every day’s delay. Goods are considered to be lost if not delivered after the expiration of fifteen days. For loss or damage to merchandise, carried by goods train, the companies are responsible only to the extent of 75 cents. per kilogramme (3½d. per lb.). The responsibility of the companies in Holland, for delay to ordinary goods beyond 24 hours, after the time allowed for delivery, is, up to 72 hours, limited to one-fourth, up to 8 days one-third, and beyond that period one-half of the freight. For whole or partial loss the maximum liability is £2 10s. per cwt. To enable the public to recover, either in the case of delay or loss, the full value of goods, they must be insured at specified rates. These particulars show the advantages of foreign railways in this respect; the difference may be made still clearer by citing a few figures as to the working of this system of legal limitation of liability in Belgium and Holland and of the virtually unlimited liability in force in this country. In Belgium the amount paid for compensation for delay or damage to merchandise traffic carried on the State railways in the year 1884 was £7,772, or ·25 per cent. on a revenue of £3,088,109, and on the Dutch Rhenish Railway it was £274, or ·16 per cent., on a revenue of £173,079. In the United Kingdom the amount was £202,400, or, ·54 per cent., and in England and Wales £17,140, or, ·55 per cent., on a revenue from merchandise and mineral traffic of £37,670,592 and £31,973,011 respectively. Of these last amounts £15,528,656 and £13,398,433 were in respect of minerals on which no compensation is, in practice, payable.[57]

[57] In Germany and France the law as regards liability is practically the same as in this country.

The rates for merchandise in Holland and Belgium are the lowest of any of the countries. Independently of the construction of the lines being cheaper, the wages paid to servants less, and the State being the principal proprietors, natural causes favour this. From the flatness of those countries and their consequently having exceptionally level railroads, the average loads far exceed what can be carried in the United Kingdom. In Holland 450 to upwards of 500 tons are the usual train loads. Even on the Northern Railway of France an average load of 400 to 450 tons is common. Owing to the gradients of the lines and the speed of the trains, such weights are rarely carried in this country. The consequence of the paying load being less is, of course, that the working expenses are proportionately greater.

Branch lines in this country have, as has been already stated, been carried into sparsely populated districts to an extent unknown in France, Germany, Belgium or Holland, and the English railways afford greater facilities by reason of a larger proportion of the lines being double.

The following table shows the state of things in 1884:--

-----+-----------------+-----------------+-----------------+----------
| | Double Line. | Single Line. |
Year.| |--------+--------+--------+--------+ Total
| | Length.| Per | Length.| Per | mileage.
| | |Centage.| |Centage.|
-----+-----------------+--------+--------+--------+--------+----------
1884 |United Kingdom | 10,239 | 54·28 | 8,625 | 45·72 | 18,864
1884 |England and Wales| 8,504 | 63·75 | 4,836 | 36·25 | 13,340
1884 |France | 7,470 | 38·84 | 11,765 | 61·16 | 19,235
1884 |Germany | 6,724 | 29·74 | 15,887 | 70·26 | 22,611
1884 |Holland[58] | 435 | 26·90 | 1,182 | 73·10 | 1,617
1884 |Belgium | 943 | 34·80 | 1,768 | 65·20 | 2,711
-----------------------+--------+--------+--------+--------+----------

It is well known that train service in this country is much more frequent than in any other country. How great is the difference will be seen by comparing the average number of train miles run per mile of railway, per square mile of country, and per 1,000 people.

TRAIN MILES.[59]

----+------------------+---------------+--------+------+---------------
| | PER MILE | PER SQUARE | PER 1,000
| | OF RAILWAY. | MILE. | PEOPLE.
YEAR| +---------------+-------+-------+-------+-------
| |Pssngr.| Goods.|Pssngr.| Goods.|Pssngr.| Goods
----+------------------+-------+-------+-------+-------+-------+-------
1884| United Kingdom | 7,588 | 6,715 | 1,185 | 1,048 | 3,981 | 3,523
1884| England and Wales| 9,114 | 7,991 | 2,090 | 1,832 | 4,481 | 3,929
1884| France | 4,644 | 2,792 | 415 | 250 | 2,222 | 1,336
1884| Germany | 3,997 | 2,610 | 426 | 278 | 1,971 | 1,287
1884| Holland | 4,941 | 1,752 | 600 | 213 | 1,773 | 629
1884| Belgium | 4,819 | 4,783 | 1,149 | 1,140 | 2,258 | 2,241
----+------------------+-------+-------+-------+-------+-------+------

[58] Including 90 miles on German and Belgian Frontier.

[59] The mixed train mileage introduces a disturbing element, but the calculations have been made as accurately as possible.

In comparing the results of the working of the German and English railways, Sir B. Samuelson states in the report already quoted, that “The proportion of net to gross receipts is not unfavourable to the German lines.” He adds that “it is all the more remarkable when it is considered that the tariffs for both passengers and goods are much lower; the cost of materials, generally speaking, higher; and that large sums are in Germany defrayed out of revenue, which would here be charged to capital.”[60] The meaning, apparently, of these observations is that railways in this country ought to be worked more cheaply than in Germany; that passenger fares and merchandise rates are lower in that country, that nevertheless the receipts are satisfactory; that the rates for goods should be here reduced; and that, thereby, better results would ensue. Let us put these statements to the test of figures,[61] and, first, as to cost of working, no doubt a material element in the comparison of rates. For the year 1884 the gross receipts of all the railways in the United Kingdom and in England and Wales respectively amounted to--

-------------------+------------+------------
| UNITED | ENGLAND AND
RECEIPTS. | KINGDOM. | WALES.
-------------------+------------+------------
| £ | £
Coaching | 30,030,450 | 25,584,196
Goods and Minerals | 37,670,592 | 31,973,011
Miscellaneous | 2,821,601 | 2,541,804
+------------+------------
Total | 70,522,643 | 60,099,011
-------------------+------------+------------

[60] See page 5 of Sir B. Samuelson’s report. It is not known to what the observation as to charges to capital can refer. The larger (if not all) companies in this country charge to revenue portions of the cost of improvements to stations, sidings, &c., which might strictly be charged to capital. In the published returns of the working of German railways, there is nothing to show to what extent, if any, the cost of new works is charged to capital.

[61] The number of passengers, or tons of goods are not reliable for the purpose of comparison, inasmuch as a passenger or a ton of goods carried over two railways appears as two passengers or two tons, and therefore after various lines are amalgamated, the returns may show an apparent decrease when in fact there may have been an actual increase in traffic.

United England and
Kingdom. Wales.
The working expenses to £37,217,197, £31,732,486
or 52·77 and 52·80 per
cent. respectively; and the
net receipts to £33,305,446, £28,366,525,.

The gross receipts yielded an average of--

------------------+-------------------+--------------------
| UNITED KINGDOM. | ENGLAND AND WALES.
------------------+---------+---------+---------+----------
| |Per Train| |Per Train
|Per Mile.| Mile. |Per Mile.| Mile.
------------------+---------+---------+---------+----------
| £ | s. d. | £ | s. d.
Coaching Receipts | 1,592 | 4 2 | 1,918 | 4 2½
Goods and Minerals| 1,997 | 5 11 | 2,397 | 6 0
------------------+---------+---------+---------+-----------

The gross receipts of all the French railways, except the small local lines, for the same year amounted to:--

Coaching £16,214,240
Goods and Minerals 24,743,480
Miscellaneous (about) 960,000
-----------
41,917,720

The expenses to 56·45 per cent. of
the receipts 23,662,160
-----------
and the net receipts to £18,255,560

The results of the working of the French railways for the year may be briefly shown thus:--

Per mile. Per train mile.
Coaching £889 3s. 10d.
Goods and Minerals 1,356 9s. 8½d.

The results of the working of the German railways for the year 1884 were as under:--

Total of
State Railways. Private Railways. all Railways.
Gross receipts £44,621,504 £4,127,569 £48,749,073
Expenses 24,267,185 2,206,937 26,474,122
----------- ---------- -----------
Net receipts £20,354,319 £1,920,632 £22,274,951

The expenses being 54·38, 53·47, and 54·31 per cent., respectively, on the receipts--

The average amount per mile and per train mile of the following receipts:--

Coaching receipts £12,989,912
Goods and Mineral 33,591,675
Miscellaneous 2,167,486
-----------
£48,749,073
being
Per mile. Per train mile.
Coaching receipts £575 3s. 4¼d.
Goods, &c. £1,486 9s. 10¾d.

The private railway companies in Belgium are not required to furnish the Government with returns similar to those supplied to the Board of Trade in this country. It is, therefore, difficult to obtain complete information on this head. But the results of the working of the State railways, which, as has been explained, form more than 71 per cent. of the whole system of the country, are accessible, and may for this purpose be taken as fairly representative.

Gross receipts of the State railways for the year 1884, viz.,

Coaching £1,620,565
Goods and Minerals 3,088,109
Miscellaneous 98,970
----------
£4,807,644
and the expenses to 59·72 per cent. £2,871,268
----------
leaving net receipts £1,936,376

Thus, the average amount of the gross receipts per mile, and per train mile respectively, is

Per mile. Per train mile.
Coaching £840 3s. 1¾d.
Goods and Minerals £1,600 5s. 11½d.

On the State, Holland, Dutch Rhenish, Dutch Central, and Brabant Railways, which comprise more than 90 per cent. of the whole railway system of Holland, the gross receipts for the year amounted to--

Coaching £1,137,687
Goods and Minerals 859,797
Miscellaneous[62] 90,270
----------
2,087,754
the working expenses to 1,137,595
or 54·49 per cent. ----------
and the net receipts to £950,159

The gross receipts yielded an average of--

Per mile. Per train mile.
Coaching £744 3s. 0¼d.
Goods and Minerals 562 6s. 4¾d.

[62] It is assumed that some receipts for cattle traffic are included in this item.

The foregoing figures are summarised for convenience of comparison in the following tabular form:

----------------+-----------------------------+--------------+--------
| GROSS RECEIPTS. | |
+--------------+--------------+ PER CENTAGE |
COUNTRIES. | | per train | OF GROSS | % of
| per mile. | mile. | RECEIPTS.[63]|Expense
+------+-------+-------+------+-------+------+ on
| [64]| | [65] | | [66] | |Receipts
|Coach-| Goods,|Coach- |Goods,|Coach- |Goods,|
| ing. | &c. | ing. | &c. | ing. | &c. |
----------------+------+-------+-------+------+-------+------+--------
| £ | £ | | | | |
United Kingdom | 1,592| 1,997 | 4/2 |5/11 | 42·58 | 53·42| 52·77
England & Wales | 1,918| 2,397 | 4/2½ |6/0 | 42·57 | 53·20| 52·80
France | 889| 1,356 | 3/10 |9/8½ | 38·68 | 59·03| 56·45
Germany | 575| 1,486 | 3/4¼ |9/10¾ | 26·79 | 67·29| 54·31
Belgium (State) | 840| 1,600 | 3/1¾ |5/11½ | 33·71 | 64·23| 59·72
Holland. State, |} | | | | | |
Dutch Rhenish, |} | | | | | |
Holland, Dutch |} 744| 562 | 3/0 ¼ |6/4¾ | 54·49 | 41·18| 54·49
Central and |} | | | | | |
Brabant |} | | | | | |
Railways. |} | | | | | |
----------------+------+-------+-------+------+-------+------+--------

[63] In calculating these per centages, the “Miscellaneous” receipts have been included in the gross receipts.

[64] Coaching receipts embrace receipts from passenger and such other traffic as is carried by passenger trains, as nearly as can be classified.

[65] Coaching receipts embrace receipts from passenger and such other traffic as is carried by passenger trains, as nearly as can be classified.

[66] Coaching receipts embrace receipts from passenger and such other traffic as is carried by passenger trains, as nearly as can be classified.

From the above table it appears that the percentage of the working expenses upon the gross receipts on all the railways in Germany is 54·31 per cent., and on the State lines in Belgium 59·72 per cent. as compared with 52·77 per cent. in the United Kingdom. But analysing these figures, we find that the relative proportion of the whole receipts from the passenger traffic of the German railways is 26·79 per cent., and of the Belgian State railways 33·71 per cent., as compared with 42·58 per cent. in the United Kingdom. This difference, due to the greater development of passenger traffic in this country, considerably affects the comparison of the results of working. The ratio of working expenses in the United Kingdom, where the proportion of net revenue from passenger traffic is greater, and that from goods is less than in Germany or Belgium, is reduced to the advantage of the goods traffic. If the revenue from passenger traffic in the year 1885, on the railways in the United Kingdom, had only been the same per train mile as in Belgium, the working expenses in the case of the former would have been raised to 59 per cent. The profits derived from passenger traffic are not only advantageous to the shareholders, but beneficial to the trade of the country. They have enabled the companies to pay moderate dividends, and also to carry merchandise traffic at a less profit. Any reduction in the revenue from passengers would cripple the railway companies, and prevent them being in as good a position to provide the accommodation, afford the facilities, and charge such rates as are required to develop the trade of the country.

Sir Bernhard Samuelson’s reference to passenger fares calls only for a few remarks. Taking the average fares charged in this country per mile to be 2d. first, 1½d. second, and 1d. third class, with a reduction in return tickets, there is no very substantial difference between those fares and the fares charged in Holland and Germany (except that in the latter country there is a fourth class on some trains). Nor do fares here (including the Government duty), materially differ from those charged on the railways in France. The fares in Belgium are, for the reasons already stated, lower than those in this country. But if to the nominal fares is added the charge which would be made for the same weight of luggage as that which is carried free in this country, the difference is reduced.[67]

The receipts per train mile from coaching traffic are 3s. 1¾d. and 3s. 4¼d. in Belgium and Germany respectively, as against 4s. 2d. in the United Kingdom; a difference which, assuming that only the same receipts per train mile on the present train mileage were earned by the railways in this country, would involve a loss of revenue from £6,000,000 to £7,000,000 per annum. On the other hand, the receipts per train mile, from merchandise and mineral traffic, in the other countries, compare very favourably with those in the United Kingdom; they are 9s. 8½d. in France, and 9s. 10¾d. in Germany, as compared with 5s. 11d. in the United Kingdom. Even in Belgium and Holland, where rates are low, the receipts are 5s. 11½d. and 6s. 4¾d. respectively; results which, considering the low transit and other rates in the former, and the transit and special bargain rates in the latter, are satisfactory. Such figures show that, in addition to the advantages of better gradients and slower speed of trains, wagons and trains are more fully loaded than in this country; they show, too, that notwithstanding the low tariff rates in many cases, the additional charges referred to in Appendix I., page vii--over and above the tariff rates--must yield a substantial revenue. Nor should we lose sight of the fact that traffic receipts in this country include, to a much greater extent than in those countries, charges for loading and unloading.

[67] The passenger fares, excluding and including the charges for luggage, are:--

SCALE PER MILE OF PASSENGER FARES,

Excluding charge for luggage.
----------+--------------+-----------------------------
Distances.| FRANCE. | BELGIUM.
----------+----+----+----+--------------+--------------
| | | | Express. | Ordinary.
| | | +----+----+----+----+----+----
| 1st| 2nd| 3rd| 1st| 2nd| 3rd| 1st| 2nd| 3rd
| | | | | | | | |
10 Miles | 191| 143| 105| 150| 110| 080| 117| 095| 065
50 Miles | 191| 143| 105| 148| 109| 073| 116| 088| 059
100 Miles | 191| 143| 105| 147| 109| 073| 116| 087| 058
----------+----+----+----+----+----+----+----+----+----

----------+--------------+----------------------------------
Distances.| HOLLAND. | GERMANY.
----------+----+----+----+--------------+-------------------
| | | | Express. | Ordinary.
| | | +----+----+----+----+----+----+----
| 1st| 2nd| 3rd| 1st| 2nd| 3rd| 1st| 2nd| 3rd| 4th
| | | | | | | | | |
10 Miles | 160| 130| 080| 176| 129| 091| 153| 117| 082| 017
50 Miles | 160| 130| 080| 169| 127| 089| 150| 113| 075| 038
100 Miles | 160| 130| 080| 169| 127| 089| 150| 113| 075| 038
----------+----+----+----+----+----+----+----+----+----+-----

Including charge for luggage.
----------+--------------+-----------------------------
Distances.| FRANCE. | BELGIUM.
+----+----+----+--------------+--------------
| | | | Express. | Ordinary.
| | | +----+----+----+----+----+----
| 1st| 2nd| 3rd| 1st| 2nd| 3rd| 1st| 2nd| 3rd
| | | | | | | | |
10 Miles | 225| 177| 105| 197| 157| 127| 165| 142| 112
50 Miles | 216| 160| 105| 176| 129| 083| 145| 107| 069
100 Miles | 215| 159| 10 | 175| 129| 078| 145| 107| 063
----------+----+----+----+----+----+----+----+----+----

----------+--------------+----------------------------------
Distances.| HOLLAND. | GERMANY.
+----+----+----+--------------+-------------------
| | | | Express. | Ordinary.
| | | +----+----+----+----+----+----+----
| 1st| 2nd| 3rd| 1st| 2nd| 3rd| 1st| 2nd| 3rd| 4th
| | | | | | | | | |
10 Miles | 220| 180| 110| 204| 148| 094| 181| 136| 082| 047
50 Miles | 202| 165| 101| 197| 146| 089| 179| 132| 075| 038
100 Miles | 202| 165| 101| 197| 146| 089| 178| 132| 075| 038
----------+----+----+----+----+----+----+----+----+----+----

In the passage which we have quoted it is said that “the cost of materials” on the Continent is, “generally speaking, higher.” One cannot help observing the inconsistency of maintaining that the competition of the other countries by enjoying low railway rates injures the export trade of this country, and that the railways here have the advantage of obtaining fuel and rails cheaper. Is the latter statement clearly well-founded in view of the fact that German rails have been laid on some of the English lines, and that engines have also been supplied by Continental firms competing with home makers? The truth, probably, is that for the purposes of the present comparison the prices of coal and materials at the pits and works in each country may be taken to be about the same; that here, as abroad, there is great diversity of circumstances; that in each country some companies, whose railways are near collieries and ironworks, have the benefit of the lowest prices, while others obtain their supplies by sea or rail at an enhanced cost.

The chief item of expense in the working of railways, and that which is of the greatest importance in making any comparisons intending to show that railway rates in this country should be reduced, is that of wages; an item of expenditure ignored in the above statement. Here they are generally higher, and the hours of labour are fewer, than in any of the other countries referred to. It is difficult to make an absolutely trustworthy comparison of the actual sums paid in salaries and wages. Different systems of payment exist; the allowances made to the staff on the Continental lines in the way of house rent, &c., and the amounts contributed by the companies to the superannuation and other benevolent funds ought not to be forgotten; such contributions, especially in France, amount in a year to a considerable sum. On the whole, however, we may arrive at an approximately correct estimate by taking the total amounts paid in salaries and wages and the average amount paid per man per year. The following is the percentage of wages as compared with the total working expenses.[68]

[69] England 60·33 per cent.
[70] France 46·75 ”
[71] Belgium 57·92 ”
[72] Holland 48·57 ”

[68] GERMANY.--The “Statistische Nachrichten Von den Eisenbahnen” shows the expenses for salaries and wages paid by the German railways (exclusive of 38,166,114 marks under the heading of shunting expenses, as it is not known whether this item includes anything for wages) to be 48·46 per cent. of the gross working expenses, but as this information differs from that otherwise obtained, and it is not known whether the latter includes any staff expenses in respect of new works, it is not considered desirable to base any conclusions on either set of figures until they are verified.

[69] These figures may not be absolutely accurate, but every effort has been made to make a fair comparison. To obtain them, each of the twelve largest companies, owning in the aggregate 11,538 miles, have supplied the information.

[70] The six great companies.

[71] The State railways, from the published report.

[72] The State, Holland and Dutch Rhenish railways, from information kindly supplied by them.

The hours of labour are an element in the matter. We do not go into detail, or endeavour to make a precise comparison. But it will not be disputed that, as a rule, they are fewer here than on the Continental lines. Here, too, there is, comparatively speaking, very little Sunday duty, which is far from being the case abroad. On most of the railways in this country it is the practice to provide at the company’s own cost clothing for such of their staff as wear uniform. The Dutch companies also supply some members of their staff with clothing. But in France, Belgium, and, generally, in Germany, the cost of clothing supplied to the uniform staff, which has been omitted in the comparisons, is deducted from their wages by instalments.

For the reasons already stated, there is no small difficulty in comparing the rate of wages per day or per week. Although in this country annual allowances such as bonuses for good conduct are known, wages are, as a general rule, fixed sums per day or per week, increasing according to the importance of duties and service. On some of the Continental railways the allowances are in some instances a considerable percentage of the fixed wages.[73]

The following table has been prepared from the best information that could be obtained on the subject, and it may fairly be taken as an approximate estimate of the average wages paid:--[74]

[73] See Note on page 136.

[74] NOTE.--There is a difference between the statements of revenue receipts and working expenses given in the “Statistische Nachrichten Von den Eisenbahnen” and those otherwise obtained, but not of a material character for the present purpose.

---------------------------+--------------+---------------
GRADE. | ENGLAND. | FRANCE.
---------------------------+--------------+---------------
Engine Drivers per day | 5/0 to 7/6 | 4/0 to 4/8
| |
Firemen ” | 3/0 to 4/6 | 3/0 to 3/4
| |
Guards, Passenger per week | 21/0 to 40/0 |}
| |} 20/0 to 38/6
Guards, Goods ” | 22/0 to 32/6 |}
| |
Signalmen ” | 18/0 to 30/0 | 18/6 to 32/0
| |
Porters, Passenger ” | 15/0 to 17/6 |}
| |} 14/0 to 17/0
Porters, Goods ” | 18/0 to 24/0 |}
| |
Shunters ” | 16/0 to 26/0 | 14/0 to 17/0
| |
Platelayers ” | 15/0 to 23/0 | 12/8 to 20/0
---------------------------+--------------+---------------

--------------------------+--------------+---------------+--------------
GRADE. | GERMANY. | BELGIUM. | HOLLAND.
--------------------------+--------------+---------------+--------------
Engine Drivers per day | 3/3 to 5/0 | 3/3 to 3/7 | 3/4 to 4/2
| | |
Firemen ” | 2/6 to 3/3 | 2/0 to 2/5 | 2/2 to 2/11
| | |
Guards, Passenger per week|} | |
|} 15/0 to 26/0| 18/6 to 34/0 | 13/0 to 21/0
Guards, Goods ” |} | |
| | |
Signalmen ” | 16/0 to 23/0 | 12/0 to 17/6 | 14/0 to 22/0
| | |
Porters, Passenger ” |} | |
|} 16/0 to 20/0| 13/0 to 17/6 | 14/0 to 17/6
Porters, Goods ” |} | |
| | [76]|
Shunters ” | [75] | 15/0 to 29/0 | 15/0 to 22/0
| | |
Platelayers ” | 12/8 to 14/6 | 12/0 to 17/6 | 12/0 to 14/0
--------------------------+--------------+---------------+--------------

[75] Shunting Masters 20/0 to 26/0.

[76] Includes Foremen.

Passing over the fact that in this country porters to attend to passengers’ luggage are provided by the companies, that the class goods rates here include loading and unloading, which they frequently do not abroad, and that, generally speaking, a greater number of men are employed on the railways in this country, there remains the fact, that the difference between the percentage of wages paid on foreign railways, as compared with the total cost of working the railways, and the percentage of wages paid in the United Kingdom is upwards of £4,000,000. There is, moreover, a great difference in the amount paid per person in England, as is shown by the returns of the twelve companies who have supplied the information, viz.:--[77]

£ s. d.
England 62 10 0
France 47 12 0
Belgium 41 2 3
Holland 34 3 10

[77] NOTE.--ENGLAND--On some railways the 1st Class drivers are allowed a premium of £10 a year for good conduct, and both drivers and firemen are allowed lodging money, and also Sunday labour at the rate of 8 hours per day. Signalmen are allowed bonuses for good conduct from £1 to £5 per annum, and guards are allowed travelling expenses from 1/6 to 2/6 per day and night.

FRANCE--Premiums to drivers and firemen are allowed for economy of fuel, regularity of service, and lodging expenses. Guards receive lodging money when they have to sleep out and a percentage on the excess fares collected, amounting together to about £4 15s. a year. Sums varying from £2 to £10 per annum are allowed to the inferior grades of staff who have to reside in Paris and other large towns where living is dear.

GERMANY--The staff are classified into 5 divisions, all of which (except Class 1, which includes Ministers, Presidents, &c., who do not receive allowances), in addition to their fixed wages, receive allowances for house rent, which vary according to the town in which they reside. The towns are also classified into six divisions as under:--

---------------+----+---------+-------+-------+-------+-----
| A | 1 | 2 | 3 | 4 | 5
---------------+----+---------+-------+-------+-------+-----
Staff in Class | £ | £ s. d.| £ s.| £ s.| £ s.| £
Do. 2 | 60 | 45 0 0 | 36 0 | 30 0 | 27 0 | 27
Do. 3 | 45 | 33 0 0 | 27 0 | 24 0 | 21 0 | 18
Do. 4 | 27 | 21 12 0 | 18 0 | 15 0 | 10 16 | 9
Do. 5 | 12 | 9 0 0 | 7 4 | 5 8 | 3 12 | 3
---------------+----+---------+-------+-------+-------+-----

Head guards are in the 4th Class, under guards 5th, 1st Class Signalmen 4th, and Porters and shunters 5th. Engine drivers, firemen and guards are allowed expenses when away from home. Porters are not paid by the railway companies, but are allowed to charge the passengers fixed fees.

BELGIUM--Engine Drivers and firemen are allowed premiums for economy of fuel and regularity of working, amounting to as much as £20 a year for drivers and £10 for firemen. Guards are also allowed bonuses for regularity of working.

HOLLAND--Enginemen and firemen are allowed premiums for economy in fuel, varying from 3d. to 2/-per day; and a mileage allowance in addition. Guards also receive an allowance over a certain number of miles travelled. Porters are not employed by the companies; but in return for the privilege of being allowed on the stations, they clean windows, sweep offices, &c., and perform other services for the companies.

The amount paid per person by the English railway companies, whose lines comprise 11,538 miles, a gross revenue of £52,904,920, and the total aggregate expenses of which amount to £27,731,876, would probably be too high an average for the United Kingdom. Assuming, however, the difference in the amount per person paid in England as compared with the other countries to be an average of only £10, and that the cost of wages in this country could be reduced to that extent, there would be a saving of about £3,500,000 per annum.[78]

So much for the grounds put forward to justify a reduction of rates. Far from proving that working expenses are less on lines in this country, and that this forms grounds for reducing the rates, these figures clearly prove the opposite to be the case.

[78] The “Statistische Nachrichten Von den Eisenbahnen” shows an average of £39 6s. 5d. per person on the German railways, whereas the other information, referred to at foot of page 133, gives the following average per person:--

Traffic and General Services. £ s. d. Superintendence, Clerks, &c. 76 18 0 Workmen 34 4 0 Workshops. Superintendence, Clerks, &c. 95 0 0 Workmen 45 12 0 An average of £53 8s. 0d. per person.

NOTE.--In Great Britain the costly systems of interlocking and signalling, and the block working, so as to interpose between trains an interval of space instead of time, are in operation to a very much greater extent than on the Continent, thus involving a larger staff of trained men.

_Rates and Taxes on Railways in England and on the Continent._

A large item in the expenses of railway companies in this country is the amount paid for rates and taxes other than the Government duty. The matter is too important to be passed over in general terms. In the United Kingdom the amount paid by all the railway companies for rates and taxes in the year 1884 was no less than £1,937,691. This is exclusive of Government duty to the extent of £398,577 and of income tax on the net receipts amounting to about £800,000. Including these items the total sum paid for rates and taxes for the year was £3,136,268. In England and Wales alone the amount paid for that year was for

£
Rates and Taxes 1,664,660
Government Duty 369,677
Income Tax (about) 700,000
----------
£2,734,337
==========

From the year 1871 inclusive to the end of 1884, the following sums were paid in the United Kingdom for

£
Rates and Taxes 19,995,570
Government Duty 9,313,678
Income Tax (about) 7,600,000
-----------
£36,909,248
===========

No such payments as these are made to the Governments or parishes by the railway companies in Belgium or Holland, or in respect of the State lines, in Germany. In Belgium, for instance, the railway companies pay no rates and taxes of any kind except small sums to towns for local rates (which amounted in the aggregate to only £1,468 for the year 1884), and a license duty or income tax to the State of 2 per cent. on the annual profits amounting for the same year to £4,406, a total of £5,874 for the year.

In Germany the whole amount paid by the railways for rates and taxes in the same year was £261,221, together with a State tax of £26,209, paid under the head of “tax on profits,” by the independent and semi-independent companies only, and not by the State railways. This made a total for the year of £287,430.

The railway companies in Holland do not pay any rates and taxes, except a license duty to the State of 2 per cent. on the dividends paid to the shareholders. Indeed, Article No. 8 of the Convention of the 24th and 25th May, 1876, for the working of the State railways by the Dutch Company, stipulates that the railways shall be exempt during the period of the Concession, from all Government taxation or payments to towns or parishes.

In France the condition of things is different.[79] Although there is no taxation on merchandise traffic, the payment in respect of passenger and _grande vitesse_ traffic, which is added to and levied with, the railway charges, is heavy, and amounted in the year to £4,683,937.

The other taxes paid by the railway companies themselves, or by the holders of shares, &c., amounted to £1,490,415, making together a total for the year of £6,174,352.[80]

[79] See “Aucoc, Cours d’Administration,” vol. 3, p. 345.

[80] The taxes in France consist of:--

1. A duty of frs. 23·20 per cent. on passenger fares and _grande_ _vitesse_ traffic, added to the railway charges, amounting to £3,436,164. 2. A stamp duty of 35 cents. on “_recépissés_” and 70 cents. on consignment notes, also charged in addition to the rates, amounting to £1,116,588. 3. A stamp duty of 10 cents, for every receipt of 10 frs. and above, amounting to £60,328. 4. A charge of 15 cents. for postage of advice note of arrival of goods, amounting to £70,857. 5. A tax of 10 frs. per kilometre for double lines and 5 frs. per kilometre for single lines, plus 5 per cent. on the value of the premises occupied by Agents, and 2 per cent. on warehouses, workshops, &c. 6. License, excise, stamp, customs, and bond duties. 7. A tax of 120 to 150 frs. per kilometre worked, for the expense of auditing and superintendence. 8. A stamp duty on shares and bonds of 1 per cent. of the nominal capital. 9. An income tax of 3 per cent. on interest and dividends.

Such are a few of the differences in the position and rights of English and Continental railways, and those who depreciate the former should explain whether they wish to adopt all the practices of foreign lines--the features unfavourable to traders as well as the advantages, slow transit, very limited liability for loss of goods or damages to them, and exemption from fiscal burthens which English railways bear--and how the cost of working, especially in the item of wages, can be reduced.