RAILWAYS BILL. (Hansard, 1 August 1844)

The Earl of Dalhousie

moved, that the House do now resolve itself into Committee on this Bill. His Lordship having referred to the evidence taken before the Railways Committee of the House of Commons, on the Report of which the measure 1647 was founded, and having adverted to the high rate of fares on English Railways as compared with those of France, Germany, and Belgium—the want of accommodation for third class passengers—the tendency of Railways to put an end to all competition, and by shutting out from the public all other means of conveyance, to become monopolies, contrary to the intentions of the Legislature—and the necessity for Parliamentary interference, for which no time was so opportune as the present, when there were so many Railway speculations in contemplation—proceeded to describe the various leading provisions of the Bill. He understood that it was objected to the measure that the principle it contained of limiting the profits of Railway Companies was novel and inexpedient; he contended, however, that the principle was not new, for it had been applied by Parliament to other bodies; he would mention in particular, that it was customary for the Legislature to interfere with the Gas and other Companies and limit their profits, and to require that the public should not be required to pay a price beyond that which was sufficient to pay the projectors of the speculation a fair remuneration for the capital they embarked; and as to the inexpediency of that interference, he believed the necessity for it in the cases to which it had hitherto been applied was generally admitted by the public. It was also objected, that in consequence of the Government having the power of revision, Railway Companies would resort to some delusions in declaring their dividends; but with the precautions the Government had taken, and their power of inspection and supervision, he had no fears upon that head. Again, it was said, that the Companies would expend their money unnecessarily and wastefully, in order to diminish their profits, and reduce their dividends below the standard at which Government acquired their right of interference, viz., 10 per cent. But he thought it a sufficient answer that they would never do that, knowing that they would thereby reduce the annual rate of profit upon which the amount of purchase money, supposing the Government should interfere to purchase, would be calculated. Another objection to this power of revision was, that it was calculated to discourage Railway enterprise; judging, however, from the number of applications that had lately been made to Parliament for new Railway Bills, he was convinced there was not the slightest 1648 foundation for such an objection. As to the provision for securing to the poorer class of travellers the means of travelling at moderate fares, he was sure their Lordships must all concur with him in thinking that it was the duty of the Government to introduce Clauses into this Bill in order to effect this object. He had heard it recommended that all Railway Companies, as well those already incorporated as those hereafter to be incorporated, should be compelled to provide third-class carriages by every train. On almost all Railways in the neighbourhood of large towns he thought third-class trains might be provided; but on many of the business lines he considered the enforcement of such a provision would be productive of the greatest loss to the proprietors. He had, therefore, provided by the 6th Clause, that on all future Railways and on all Railways applying for alterations in their powers, there should be a train started once a day, at a convenient hour, provided with seats and protection from the weather, and at fair and moderate charges—in two years, in fact, all Railways would in all probability be subject to this provision. In recommending this measure to their Lordships he did not wish to be thought as reproaching Railway Companies for the manner in which they had hitherto acted; on the contrary, they had, in his opinion, been of inestimable benefit to the community, and he thought it was impossible to estimate too highly their enterprise and their skill, which had combined to produce such marvellous results, accompanied with such immense public advantages. The Government now deemed it their duty to look to the future, and to endeavour, whilst they secured to the proprietors of Railway undertakings a full remuneration for the capital they had embarked and the risks they had encountered, to guard the interests of the public from encroachment, and to insure to them a participation in the benefits of the system.