Transport

"TRANSPORT. - Among new economic conceptions resulting from loth-century progress, the rise of a definite " science and art " of Transport is of outstanding interest.

The Function of Transport

The function of transport may be described as the transference of persons and things, as and when required by mankind, from one part of the earth to another in a minimum of time and at a minimum of cost, these two factors being closely connected with each other. The axiom of political economy that exchange enables wealth which would otherwise remain unutilized to be used to the best advantage implies displacement. Such displacement or transportation is an essential characteristic of that form of exchange which we recognize under the name of commerce, and hence the history of commerce is to a great extent the history of the development of transport. The transport problem is an ever-recurring one which can never be finally disposed of. Only in recent years have its complexities been systematically studied, although the problem must have arisen when the first man had any belongings to move.

The factors governing the development of transport are intrinsic and extrinsic, the former including the nature and quantity of matter to be conveyed, the distance and character of the earth's surface between the two points of carriage, and the apparatus available for bringing the movement into effect. These intrinsic factors are governed and often impeded by certain extrinsic factors, which are mainly political, economic, strategic, and, lastly, the ever-existing element of human nature.

During recent years the importance of efficient transport to civilization has been more and more realized by the leading men in the world of commerce and politics; various schemes have been formulated and put into operation with a view to removing obstructions, and in order that a more comprehensive grasp of the whole subject might be obtained. These include the formation of schools of economics at the universities and elsewhere, which treat the subject as a branch deserving accurate study and scientific inquiry. A definite advance has also been signalized by the formation in the United Kingdom of a Ministry of Transport and of an Institute of Transport; also by the publication of various journals which deal exclusively with the subject.

Those who are intimately connected with the present-day efforts towards a solution of the problem are forced to realize the all-embracing scope of the subject and the difficulties attending its every phase. On the latter aspect of the problem it is interesting to note that as transport becomes more completely organized, it more surely provokes increasing controversy.

Many obstacles have already to a great extent been overcome, and those dealing with the nature of the commodities carried may be instanced as an example. The difficulties attending upon the bulk, fragility, delicacy, and the preservation of certain commodities which in early times formed an unsurmountable obstacle to their carriage, have been solved, and as a result, an increasing traffic in these commodities has taken place. This in turn increased the demand for these commodities, the wants of man having become less elemental and more artificial as the world has become more civilized. Of the extrinsic factors affecting the development of transportation we may instance the colonizers of the Early and Middle Ages, the growth of over seas trade dating from the 12th century, the wonderful impulse given by the " Industrial Revolution " of modern times, and, lastly, military exigencies in war-time.

Generally speaking, the development of transport brings about a tendency to a surplus of wealth. Unless a country produces a surplus of wealth it is unable to reduce poverty to a minimum or to insure that all its inhabitants have a sufficiency of food, clothing and warmth, without which contentment is an impossibility. The cheapening of transport reduces the cost of the necessities of life and thus enables a person to live at a higher standard than would be possible if the whole of his earnings were taken up in obtaining the bare necessities of life. The prosperity of most modern countries has directly followed the improvement of their transport system. Instances of this may be quoted in the case of Great Britain, with its internal system of railways and its vast organized overseas communication of shipping; of America, France and Germany, with their railways and internal waterways. On the other hand, China may be quoted as a country with vast resources and possibilities, but which for the want of transport facilities is not yet developed in proportion to her territory or population. It would not be too much to say that the development of the wealth of any country in the world has been brought about from time immemorial chiefly by the improvement in its transport system. The development of transport acts upon, and in its turn is influenced by, the progress of mankind in the continuance and improvement of the civilization of the world. It affects and promotes the intercourse between different peoples and continents, and it creates opportunities for employing the forces of Nature for the use of mankind by the advancement of science.

In general terms, modern-day transport may be classified into human, animal, and mechanical. In its various forms the latter is carried on by land, road, sea, river, canal, inland water, railway, air and aerial ropeways: these in turn are actuated by the motive powers of gravity, steam, electricity, combustion engines, wind, and water. All these motive powers originate in some form or another in the use and application of the stored-up energy of the elements, and the object of mankind has always been to use these elements to give the best results with a minimum of cost. The progress of mankind has probably lain in this direction more than in any other, and advancement has been made during the past century which would before that period have seemed impossible of attainment.

The History of Transport

At different periods of their existence the various communities of the world have passed through somewhat similar stages of transport development. We read that canals were constructed in Egypt 3000 B.C., that the Phoenicians crossed the inland seas in ships propelled by oar and wind and carrying 50o men, and that King Solomon drew a portion of his revenue from the caravans which journeyed through his territory. We learn that Babylonian caravans travelled into Phoenicia, Arabia, Syria, and Persia, and that the Egyptians sold chariots in neighbouring countries at an equivalent value of £50, while chariots are first noted in the annals of Britain in 300 B.C. The Greeks, before 1000 B.C., were constructing roads, and providing their harbours with walls and jetties, whereas roads, as such, were practically unknown in Britain nine centuries later.

The first mode of transport undoubtedly was the carrying of commodities on the human form. This mode is still exclusively used among the primitive tribes and to a certain extent even among the most civilized nations. Primitive man, however, early realized the value of waterways as a means of transport, and at first utilized a raft of tree trunks lashed together, a cumbersome method, both in preparation and in use. This raft he guided by means of a stick or branch, the forerunner of our punt pole. He also discovered that skins would float, and, by supporting the skin of an ox or a horse with a light wicker frame, he produced the coracle, a boat which he could propel on the water and carry on his back overland. Later, two or more skins were sewn together to form the shell of the boat, the seams being " caulked " with a resinous substance. The coracle is still in use on certain of the western rivers of Britain. It was an easy stage to build up the raft into a sort of box by using planks for the sides, the planks being sewn together. Here we have the origin of our present-day flat-bottomed boats. Yet again, by the use of fire, early man made a primitive boat by hollowing out the trunk of a tree, which, being shaped as experience has taught, formed the first point in the evolution of the ship. To harness the wind was a further stage, and the gaining of the art of navigation furthered the development of the sailing vessel.

On land, the animals natural to a country - the horse, the camel, the ass - have been employed as beasts of burden from early days. Chariots were in existence thousands of years before the Christian era, but the absence of good roads resulted in a very slow development of land transport.

Coming to Britain in the Middle Ages, we find water transport as the most important means of conveying goods; what little transport was effected on land was by means of pack-horses. Travellers and traders combined in armed companies for protection against marauding bands, and we see long lines of laden horses slowly progressing over tracks so narrow that the animals could seldom pass two abreast. The rolling of a log is supposed to have inspired the idea of the earl y waggon for transporting materials, and in the 16th century a heavy waggon with broad wheels on a rotating axle, and fixed front wheels, came into use. Its sphere of action was limited to local markets. Such organization as there was lay in the hands of the lord of the manor, who could call upon his tenants for the services of a specified number of waggons and waggoners. Better roads were required. Although the Romans, with their knowledge gained from the Etruscans, did construct many and great roads, organized road-making was practically non-existent from their time until the 16th century, when counties were made responsible for the upkeep of bridges, and parishes were ordered to appoint two road surveyors, who were assisted by compulsory labour. Passenger carriages came into vogue in 1550, but, being springless, had little pretension to comfort.

In 1634 the Sedan chair came into use, and in the same year the first hackney carriages were licensed. In 1650 waggons completed the journey from London to Dover in three or four days. About the same time, springless stagecoaches carrying passengers inside at a charge of five m. for Is., and luggage at the back, were introduced. By reason of the condition of the roads their rate of travel was only four to five in. an hour; they seldom travelled in winter. In 1658 a coach made the journey from London to Edinburgh at a cost of4 per passenger, and was more than a fortnight on the way. The post-chaise system was now established. Wealthy people were able to hire horses for their carriages in relays at the various inns, or both the chaise and the horses. A journey from London to Scotland in this manner cost at least X30.

At the beginning of the 18th century, waggons were journeying with goods from London to Bristol, and we read that in 1776 waggons travelled from London to Edinburgh and back in six weeks with a load of four tons, whereas a sailing vessel made a similar j ourney in the same time, carrying some 200 tons and requiring only four times as many men as a waggon. In 1763 a monthly coach service between the same two towns was instituted, completing the journey in 14 days, and about the same time services to Bath, York, Glasgow, Exeter, and other towns were inaugurated. Coaches with springs appear to have been in use by 1760. Particular attention was now being paid to roads. The famous road engineers, Telford, Macadam and Metcalfe, were at work, and in the 14 years following 1760 some 450 Acts of Parliament authorizing road construction and tolls were passed. The experimental mail coaches of 1784 gave an impetus to road transport. Their speed of six m. per hour was soon increased to 12. Outside passengers were charged about 5d. a m., and those inside, 3d.

Canals had long existed in Holland, and were introduced into France in the 17th century, but although two canals were constructed in Britain by the Romans, one of which, the Fosse Dyke, is still in use, it was not until the 18th century that canal development began in this country. The first important canal was constructed from Worsley to Manchester, at the instance of the Duke of Bridgwater, and was opened for traffic in 1761. It was found that the cost of transport by canal was about one-quarter of that for carriage by pack-horse or waggon for the same distance, and the price of coal in Manchester was immediately reduced by 50 per cent. In 1172 passenger boats, charging Is. for 20 m., were established on the canal. In 1777 the Grand Trunk Canal, between the Mersey and the Trent, 96 m. in length, was completed, and in 70 years 3,000 m. of canals were constructed in the British Isles by the Companies of Proprietors. Since 1830, with the exception of the Manchester Ship Canal, there has been but little expansion of Britain's canal system. So far as England and Wales are concerned, practically all the canals were constructed by private enterprise without any State financial assistance, but this does not apply to Ireland or Scotland.

Towards the end of the 18th century, experiments with steamdriven vessels were in progress, and in 1788 a small steam-boat was tried in Scotland. Trains hauled by horses over parallel logs of wood had been in use for colliery purposes in the 17th century. Later, the wood was covered with metal plates, and in 1767, cast-iron rails were brought into use.

The coming of the 19th century was heralded by the authorization by Parliament in 1801 of the first public railway - from Croydon to the Thames. Traders paid tolls to the company for the privilege of horse-hauling their own waggons over the line. In 1804 Trevithick's locomotive hauled 70 passengers and io tons of goods near Merthyr Tydvil, but the first use of locomotives on public railways was on the Stockton and Darlington line (now part of the North Eastern railway), which was opened in 1825. The first train carried 500 passengers and made the journey of 8. m. in 65 minutes. For some years, steam traction was employed for the haulage of goods and mineral traffic only, passengers being conveyed in horse-drawn coaches. The company soon learned that it was impracticable to allow individuals to run their own waggons at will over the line, and as a solution the system of company-owned traction and waggons developed. In 1829 George Stephenson made certain the future of railways by producing his famous " Rocket " type of engine, which attained a speed of 29 m. an hour at its trials. By 1840 there was a regular service between London and Birmingham, the journey occupying from 5 to 6 hours, and Glasgow was brought within a 24hours' journey. 'There was also a quarter-hourly service between London and Greenwich. In 1845 over 1,200 railway bills were presented to Parliament, but only a tenth of them received sanction.

Similar progress was made with steamships. In 1807 the " Clermont," constructed by Robert Fulton, began to ply on the Hudson river between New York and Albany. In 1818 the " Rob Roy," a wooden paddle-steamer, travelled from Dover to Calais, and in 1819 the " Savannah," a sailing vessel with auxiliary steam and removable paddles, crossed the Atlantic from Savannah to Liverpool in 25 days. In 1838 two vessels crossed the Atlantic under steam-power only, and the screw propeller, which was invented in 1836, was used on ocean-going craft in 1850.

In 1820 was started the Paris cabriolet, which word was later contracted to " cab," and the " Dandy-horse," the forerunner of the bicycle, and in 1829 the first omnibus made its appearance on the streets of London.

The advent of the " Industrial Revolution " saw in Britain a number of self-contained communities, each more or less dependent on its own resources for necessary commodities, and a transport system which has been described as probably the worst in Europe. The means of transport were limited to river transport, supplemented by teams of pack-horses and waggons, and, in mining districts, by horse tramways. The comparatively bad condition of the roads, and the small amount that could be carried, made conveyance by horse and waggon slow and costly, while transportation by river had only a limited sphere, and even then it was unreliable.

The application of steam as the motive power of machinery cheapened and speeded up production, but labour, iron for the machinery itself, and coal as fuel, were needed. There followed a rapid development of the British coal industry, not only where there were river and sea facilities, but far inland. The iron industry moved its base northward, and there was a speedy growth of large factory areas, with increasing numbers of workers. The workers required food and domestic supplies, the factories required raw materials and coal, and these must needs be obtained from other areas. Improvements in the iron industry gave better and cheaper agricultural implements, and a development in agriculture gave greater supplies of produce ready for moving to the industrial areas. Industry had now reached a stage where production had outstripped its necessary adjunct, transport, and there was a crying need for more efficient and economical methods of transport. For this, capital was necessary, and the increasing wealth which accompanied the industrial development provided it. At first, canals, and, later, railways, played their part in providing the factory districts with raw materials, fuel, and food, and, in addition, along with steam-boats, made possible the distribution of the manufactured articles to an ever-widening range of markets.

Modern Development

The modern development of transport may be said to date from the "Industrial Revolution," and from that time it has been generally recognized that, where advantages have been granted by the State to various forms of carriers, the rates of charges and the provisions for the safety of the public should be controlled to a certain extent by the State. This has been chiefly in evidence in the case of the railways, which were given compulsory powers by legislation for the acquisition of land and other advantages. In other words, it has been recognized that, as the carriers existed to a large extent for the benefit of the public, it was necessary that individuals should be compelled to sacrifice their private interests for the good of the public generally. On the other hand, it has also been recognized that, the carriers having been given these advantages, the State should protect the public in certain respects.

In Great Britain practically the whole of the transport undertakings have been initiated and carried on by private enterprise, the primary object of the companies from their point of view being the earning of money. For this reason the various companies have of necessity vied with each other in making as much money as possible, and one of the most obvious ways of doing this was by increasing the amount of traffic carried. Induce ments were therefore held out of giving facilities to traders in various ways, the chief of which has been the cheapening of the rates. This, however, has taken place as a rule only when there has been competition, and the rate-cutting between the railways at certain periods has reached such a stage that it is very doubtful whether the companies have benefited by it or not. In the case of the railways, which are at the present time the most important of the overland carrying factors of Great Britain, the return on the capital expended has not been very great.

From time to time there have been amalgamations of the railways to a limited degree, and these as a rule have benefited both the railway companies and the public by cheapening the cost of working the undertakings.

A brief summary of each system of transport, with its influence as a factor of transportation, is given below.

Railways

The evolution of the railway and the invention of the locomotive, with its successful application to railway traction in 1804, inaugurated a new system of transport. Designed primarily to reduce the cost of transport of coal by road and to compete successfully with transport by canal, railways have developed from the isolated small sections in various parts of Great Britain to be at the moment the predominating factor in the world's transport. Indeed the mileage of railway in a country may safely be taken as a criterion of its industrial development.

Railways spread rapidly in Great Britain after their inception, and numerous companies promoted the new mode of transport. The carriage of coal and other minerals proving immediately successful, the transport of the travelling public became naturally the next development. The first passenger coaches consisted of open trucks with neither roof nor seats, but the discomfort of these led to the evolution of covered coaches, which were provided for 1stand 2nd-class passengers only. The 3rd-class coach was still roofless, but fitted with benches. The luxurious coaches of to-day, with facilities for dining, sleeping, and, in some cases, baths, are material proofs of the great progress made in this branch of transport.

Locomotives and freight rolling-stock have also developed in accordance with the requirements of the age. Waggons constructed to carry 120 tons and locomotives weighing 244 tons are in use on two or three railways in the United States; but the waggon commonly used has a capacity of only 50 short tons, while the usual weight of locomotives is between 175 and 220 short tons.

The electrification of railways is the latest stage of their development. Applied to the transport of the masses of people congregated in large cities, it has gone far to solve one of the most difficult problems of the present day.

For long-distance travel, electricity has now passed the experimental stage, and no doubt the progress of time will see the displacement of steam by electricity as the motive power for all railways.

Water Transport

The development of this system has been chiefly confined to sea-borne transport. Although a steamer was first used on a canal, the Forth and Clyde, in 1802, it soon reached salt water, and the s.s. " Comet, " built on the Clyde in 1812, marked the commencement of the ocean steamer transport era.

The first form of propulsion, viz. by paddles, was superseded by the screw propeller, which has been found more efficient and suitable for rough waters. Improvements were also effected in the engine room. Simple and compound engines were successfully followed by triple and quadruple expansion engines. These in turn gave way to the steam turbine. Coal is being displaced by oil fuel for steam raising, and we have also the internal combustion engine.

Other important features of development are refrigeration and wireless telegraphy. The former has increased the availability of the food supplies of the world.

In this sea-borne system of transport, competition has resulted in rate-cutting wars, which have not been so evident in the other systems. In cargo rates and passenger fares, competition has at times been very keen, and quotations have reached figures far below an economic level, as for instance at the time when passengers were carried from Liverpool to New York for 2.

Mechanical Road Transport

This form of transport, although generally believed to be an invention of recent years, was also inaugurated at the beginning of the 19th century, but development was hampered by the excessive road tolls and statutory restrictions, an example being the British regulation which required a man with a red flag to precede every mechanically propelled vehicle. These restrictions operated until 1896, when greater liberty was afforded by the Locomotives on Highways Act of that year. Further freedom has been given by the Motor Car Order, 1904, and the utility of this system has now been fully established.

The earlier types of mechanical road vehicles were steam propelled, but the invention of the internal combustion engine and its application to road transport, associated with rubber-tired wheels, created a revolution, and is responsible for the rapid development of the last generation. Mechanical road transport commenced and operated solely as a passenger transport system until recent years, but in conjunction with the general improvement of roads it has, for distances up to 75 - too m., developed into a form of freight transport in competition with railways, except in the case of long-distance mineral traffic.

Passenger road transport is generally provided by petrol-propelled vehicles, and examples of these are found in high-powered private motor-cars and in public motor-buses carrying 54 passengers. In the transport of merchandise by road, all three types - petrol, steam and electric vehicles - are used, their respective spheres being dependent upon distance, nature of traffic, regularity of service, etc. In the development of mechanical road transport may be included the improvements effected in tram-car services. The horse vehicle has been displaced by the electric vehicle, obtaining power through overhead or underground conductors, and this form of transport has contributed very largely to the expansion of the areas of large cities. Aerial Transport. - This system commenced with the 10th century, but so rapid has its progress been, principally through military stimulus, that by 1921 its success was assured.

The development of the internal combustion engine provided the means of securing adequate power with a minimum of weight which had lon g been sought in connexion with aerial navigation. France, Great Britain, and the United States joined in the development and while the first decade of aerial navigation was a period of experiment, transport by heavier-than-air machines was sufficiently advanced to be put to practical use at the commencement of the World War in 1914. The potentialities of aircraft in warfare were immediately manifest, with the result that the progress achieved in the development of the air machine was infinitely greater than would otherwise have been the case. This applied equally to the airship or lighterthan-air machine. The internal combustion engine converted the ordinary balloon into a dirigible, and this development continued until the cessation of hostilities in 1918.

Economic Effects

The consequences of the development of the various systems of transport upon nations and peoples are incalculable. The growth and consolidation of the British Empire may well be attributed to the fact that during the greater part of the r9th century the initiation and supply of transport was provided by Great Britain. She became the carrier of almost all the world's traffic, which, of course, involved the maintenance of the freedom of the seas.

In the United States it is not too much to say that the rapid development of its transport system has enabled the growth of the whole country to develop simultaneously and thus evolve a " United " States instead of a second " divided " Europe. Viewed from a different angle, we find the conclusions of those political economists who advance the argument that over-population would inevitably lead to starvation have been negatived by the development of transport which, coupled with the use of modern methods of refrigeration, has increased the availability of the world's harvests. The periodical famines in those countries where transport in its modern developments is practically unknown is direct evidence on this point.

The mobility of labour, the importance of which can hardly be exaggerated, had also been increased by transport development to an enormous degree. Its effect on the social condition of mankind is clearly demonstrated when it is observed that, where transport is developed most highly, there also is the social standard highest.

Military and naval operations have been considerably in fluenced by modern transport. At the battle of Waterloo about 75,000 men were engaged on each side. One hundred years later in the World War 50 million men were engaged in the armed forces of the combatants from start to finish. New railways and roads for mechanical road transport made possible the movements of armies, guns, munitions and necessary supplies. The heavy guns were moved by rail or mechanical road transport, and as if to emphasize the part which transport took in the war, the negotiations for the Armistice were conducted in a railway carriage.

On the naval side, steamer transport was the forerunner of the modern battleship. It was many years after the building of the first steamship when sailing ships of war were discarded, and practically all developments in ocean transport have been adapted to the needs of the navy.

During this wonderful development the Governments of the world generally took little interest in transport beyond enacting restrictive legislation. Prussia was the one exception; for almost from the commencement of railways in that country, the State took an active part in their construction and operation, and after the Franco-Prussian War of 1870-1 adopted the policy of acquiring all the German lines. This was entirely for military reasons, and was accomplished in two decades. There was also Government cooperation in the United States. Various states assisted the railways by land grants and other subsidies, while the Union Pacific - the first American transcontinental railway - was made possible by financial aid from the Federal Government.

The World War of 1914-8 was destined to have far-reaching influences on transport. Until then, except for the fixing of rates and for the ensuring of public safety, the British Government did not interfere with the working of the railways. At the outbreak of the war, however, it became apparent that it would be necessary for the Government to take control of the whole of the British railways, and, as a direct result of former amalgamations, this was done with admirable results. Rollingstock was pooled, engines being loaned where necessary. The success which followed justified the action taken, and valuable lessons were learned which have proved of great assistance in the consideration of the direction of future development. Similar action was taken in the United States.

The early part of the 10th century was marked by a tendency towards large combinations of capital and labour, one acting and reacting upon the other. This movement, perhaps first developed in the United States as to capital and in Great Britain as to labour, has been gradually increasing, and the state of affairs is now such as to render difficult the existence of any small concern, either of capital or labour, which is not protected by some form of combination with other similar bodies. With other concerns, transport has been largely affected by the Trust movement, and to this cause the Railways Bill of 1921 which amalgamated the railways of Great Britain into four groups was largely due. This arrangement in reality has been a development of the Trust movement.

If modern transport is to develop on economic lines and properly fulfil its functions, the tendency of the future will be toward the standardization of the various forms of transport all over the world. The lessons of the war have emphasized this very strongly, and though the progress may be slow, the future prosperity of the world largely depends upon its being brought into effect.

Operation Principles

Transport operation deals with the actual movement of passengers and goods, and the methods of operation are dictated by the requirements of both classes of traffic. Any passenger service must be so designed as to satisfy public requirements in respect of safety, convenient times of departure and arrival, connexions for through services, speed, and comfort. Attention must be given in the first instance to what are the main channels of traffic, and these are dictated by the requirements of both commerce and pleasure - in other words, " necessary " and " luxury " travelling.

With goods traffic the conditions are different. One essential difference between passenger and goods traffic is that whilst passenger traffic must conform in some measure to the requirements of the public, goods traffic can, generally speaking, be run more or less at the transport company's convenience, attention being paid at the same time to the needs of the commercial community. The question of safety is not so important here, as evidenced by the more lax regulations governing goods traffic, as compared with passenger traffic, both on land and sea. In the United States, however, safety laws apply to freight trains and passenger trains alike. (See Railways: United States.) Recent developments in block and automatic signalling have made railway operation - where automatic train-stops are in use - as safe as is humanly possible, while shipping is now controlled by adequate safety regulations. If safety in the air were assured, such means of transport would compete more severely with rail and sea services; already the safety and comfort of road transport have opposed to the railways a keen rival.

Another factor in transport operation is speed. In all forms of transport, other things being equal, the demand is for the quickest route.

As to goods traffic in particular, it is probable that the tramp steamer will continue to carry commodities which do not require quick delivery, and the " slow " as distinct from the " fast " goods train will always have its particular use, while a future generation will doubtless use aircraft for the conveyance of goods where the quickest delivery is the main consideration. The speed and convenience of road transport is attracting a considerable volume of traffic formerly borne by rail.

High speed is one of the primary considerations in all forms of transport. The aeroplane attains a speed of loo m. per hour, the express train 60 m. per hour, the liner 24 knots, and while road motor vehicles can attain the speed of railway trains, other considerations limit their speed on public highways. One of the reasons why canals have fallen almost into disuse in England is that barge traffic is exceedingly slow. In France, the serious competition of the railways was recognized a generation ago, and although the canals were then equipped to furnish efficient service, and steam and motor traffic has to a large extent superseded the slow horse-drawn barge system which in England is still very general, the average speed seldom exceeds four or five m. an hour.

The methods of loading of ordinary goods traffic vary. A well-equipped goods depot has various mechanical appliances for lifting and loading goods on to waggons, but a considerable amount of waggon-loading is still performed by hand. Small parcels require a large amount of manual labour. Oil-loading in bulk is on the other hand a mechanical process. Then again different classes of goods require different vehicles, such as refrigerator vans for meat, fruit and other perishable commodities, vans for explosives, and mineral waggons. Ships, too, are adapted for carrying special classes of goods; grain ships, meat ships, oil tankers, as their names imply, are constructed for conveying particular commodities.

In the United Kingdom goods waggons have a limited loading capacity of ten to twenty tons, with mineral waggons up to forty tons, although two or three railways of the United States use a 120-ton coal waggon. It is obvious that the work involved in loading a goods train is far greater owing to break of bulk than that involved in placing the same load in the hold of a ship.

A very large tanker, for example, can load or discharge about 1,000 tons of oil in 12 hours. Loading the same quantity for conveyance by rail is a much longer process, as at present each oil tank waggon has a limited capacity of about 10 tons. The question of transport in bulk by ships applies not only to oil but to every class of commodity. Docks and harbours are generally well-equipped with cranes and warehouses, and with special appliances such as grain elevators and oil pumps.

Much time and labour are expended at tranship points. Goods are brought to ports by rail for shipment, and the accumulation of cargo for any particular vessel usually commences long before the vessel's arrival. This predicates the necessity for goods warehouses and sheds, so that commodities are properly protected against pilferage, wind and weather, while awaiting shipment. When the vessel arrives, there must be adequate facilities for removing and dispatching her inward cargo before the outward freight is dealt with. Rail facilities on the quayside, as at Manchester, Southampton, and all modern ports, obviously make the process of transhipment much simpler than as at some of the older docks, where, when goods are taken from the ship's hold, they must first be loaded on road vehicles, and thus dispatched to the rail terminus.

The transhipment difficulty is also to be met where throughrunning facilities for trains do not exist, due to break of gauge, for example. This difficulty has been very acutely felt on the mainland of Australia, where the states have varying gauges, so that inter-state traffic involves transfer or change at several of the boundaries. The importance of the subject has resulted in the appointment in 1920 by the Australian Government of a commission to report on the possible unification of the railway gauge throughout Australia.

The most usual method of local collection and distribution of goods from a dock, station, or goods depot is by means of motor lorries. These have largely superseded horse traffic. In Great Britain, the railway companies perform a certain amount of carting, but many private traders have their own collection and delivery vans, and special carrier companies also assist in this very essential service. The use of motor vehicles for the local conveyance of goods has been so far extended that regular goods and passenger services now operate over long distances throughout the country. For the transport of perishable goods the motor lorry is particularly well suited. It has the advantage of offering door-to-door facilities with one handling at each end. The publication of the first " road Bradshaw " in Great Britain is an indication of the extent to which road traffic now operates.

The haulage of empty stock from one point to another is clearly necessary whenever a centre receives more or fewer waggons with loads than it requires for its own outward traffic. Very few centres receive the same number of loaded waggons as they require for forwarding goods. There must therefore always be a considerable movement of empty waggons. Statistics published by the Ministry of Transport in England show that in that country, at the commencement of r92r, about 30% of waggon mileage was " empty " running. Similar conditions prevailed in the United States. A large proportion of " empty " running is in connexion with mineral traffic. A mining area offers a considerable volume of outward traffic, with very little inward. Occasionally, however, loads can be obtained in both directions. A good example is seen in the case of iron-ore carried from Tyne dock to Consett for use at the iron-works there. The waggons are then used to convey coal from the collieries in the neighbourhood of the iron-works to Tyne dock for shipment. But this case is exceptional. The number of mineral waggons which run empty, or the ineffective dead load, can be reduced by the introduction of higher capacity waggons with a larger proportion of live to dead load.

This question of " empty " running is of equal importance in connexion with shipping. A well-organized shipping company will have its agencies so well distributed to secure return cargoes that loss through running ships in ballast is reduced to a minimum.

One great difference exists between the operation of railways and that of all other forms of transport. Railways operate on their own tracks, property which they must maintain and which has to be adequately staffed and attended. Ships have the advantage of the trackless ocean; aeroplanes and airships, infinite space; road vehicles, the public highway. Canals in Great Britain are different again; the waterways themselves are as a rule owned by various authorities, but the barges and other canal craft are usually owned by separate transport companies and private traders.

It is thus apparent that a railway undertaking must have proportionately a much larger operating staff than any other transport service. This introduces the question of management. The combination of the several factors of transport efficiency is the key to efficiency in operation. For the efficient handling and use of these factors an executive management is required, a management that should not only have full knowledge of the agencies, means and methods required for the particular type of transport operation with which it is concerned, but should also possess ability for the correlation and control of the many resources at its command. Indeed, the whole system of operation depends upon the body of management.

As to what is the best organization for management of a railway there are such wide differences of opinion that it is not possible to suggest that any given or particular plan is the correct one. In England at the head of a railway organization are the directors, presided over by their chairman, who are responsible to the shareholders for the efficient conduct of the undertaking. All questions of policy are settled by the Board of Directors, and the administrative staff, which is controlled by the general manager, who is directly responsible to the Board of Directors, is responsible for the actual carrying out of the work. The general manager cannot actually attend to all the details of operation of a railway: he can however see that the policy of the directors is carried out by the various heads of the departments. The chief executive officers are the chief engineer, mechanical engineer, traffic and goods managers, secretary, legal adviser, and accountant. In America, where one company is responsible for perhaps 5,000 m. of permanent way, the " divisional organization," which decentralizes the management, is more extensively resorted to than in other countries, having less track mileage.

A comprehensive view of the whole system is necessary to any manager or body of managers. The American railways recognized at an early stage that they could obtain a proper survey of the working of the whole system only by the collection and collation of statistics relating to every branch and section of the industry, and the Interstate Commerce Commission in a recent report stated that the successful operation of American railways is highly dependent upon statistics. The value of statistics is now better appreciated in England than formerly, and statistics relating to railway operation, on the general lines of those in use on the North Eastern railway for many years past, are now officially collected and issued. These have the effect of reflecting the operating efficiency of the various lines. They enable a number of units of efficiency to be arrived at, as, for example, the ton mileage, the train mileage, the waggon mileage, the average waggon load, the net ton miles of freight moved per hour, the percentage of time a locomotive spends in effective work, the proportion of standing and running time, and the proportion of time a waggon is moving. The ultimate object of statistics is to enable railways by comparison to find out the weak points and thus to be operated in the most economical and efficient manner. As regards shipping, the Board of Directors is again responsible to the shareholders, but the managing staff is much smaller in proportion than in the case of railways. Each department has, however, its executive head, viz. marine superintendent, superintending engineer, freight superintendent, victualling superintendent, etc. The operating staff is also much smaller than is the case with railways, and the larger part of a ship's crew is engaged temporarily for a voyage, and when a vessel returns to a home port and the crew is discharged, only a nucleus staff remains. Then again, most shipping companies send their vessels for overhaul to shipbuilders and only carry out minor repairs themselves, unlike the railways, who do most of the repairs to their stock in their own shops.

Economics of Transportation

The business of transport, whether by land or water or air, is subject, like any other industry, to those economic laws which govern the production, distribution and consumption of the commodities and services required for the satisfaction of the needs of humanity. From the economic standpoint, therefore, it is essential that the cost of the "production and distribution " of transport services and the price at which these services are placed at the disposal of the consumer shall be so related as to yield a reasonable margin of profit to the undertakings concerned. Where transport services are provided and operated by private enterprise, the applicability of this principle is naturally more obvious than in those instances where the enterprise is undertaken by a municipality or State: but even in this latter case the assumption should be that the benefits derived directly or indirectly by the community concerned are sufficiently great to warrant the expenditure which the provision of the service involves.

Railways

In their efforts to attract traffic, railways have to compete not only with other railways but also with transport services carried on by road, river and canal. In certain circumstances an additional element of competition is to be found in coastwise shipping, and the competitive influence of air transport agencies still remains to be measured. Railway undertakings differ from road service undertakings in that the former ordinarily bear the whole cost of constructing and maintaining the " way " upon which the traffic is carried, whilst the cost of roadways is usuall y borne, wholly or in part, out of public funds. In the case of inland waterway services also, the expenditure on " way and works " is frequently defrayed out of State resources in countries other than Great Britain; but against this advantage must be set the slowness of inland water transport and the much greater vehicular capacity which railways can offer. The competition of coastwise shipping on the other hand is frequently severe, the cost of carriage by sea being relatively low, whilst in the conveyance of non-perishable goods, rapidity of service may be a matter of little moment.

In the promotion of any new railway the selection of the route to be followed is of the first importance. Upon this depends the expenditure involved in overcoming the physical difficulties to be encountered in the course of construction, and the location of the line should be such as to secure the maximum amount of traffic available. The cost of future operation also depends, in great measure, upon the route adopted.

By the exercise of engineering skill and experience, the total mileage of track may be reduced, and difficult gradients and curves may be avoided, and by these means the subsequent cost of haulage is obviously affected. At the same time savings may be effected in capital expenditure on earthworks, tunnels, bridges and other special works of a costly character.

The location of the line and of the stations, goods depots and sidings in relation to the centres of population, trade and industry, determines to a great extent the amount of traffic and consequently the earnings which will be secured; and the number and position of these stations, etc., will in turn affect both the capital cost of the undertaking and the annual expenditure involved for staff and maintenance. Moreover, as distance is one of the prime factors to be considered in the fixing of rates and fares, it is manifestly desirable that, ceteris paribus, the route selected to connect the various traffic points to be reached should be as short as possible. This principle is obviously of particular importance in competitive areas.

In determining the location of the line the question of curvature and gradients calls for special attention. Curves are introduced with a view to avoiding undue expenditure on special works, such as tunnels, bridges, embankments and cuttings, but as a set-off against this, if the curves are anything but flat ones (i.e. curves of large radius), there is the resultant increase of wear and tear upon the rails and rolling-stock and increase in the mileage of track, whilst reductions of speed and a greater consumption of fuel may also be involved.

The influence of gradients upon working costs is still more marked. Where they are numerous and severe it may be necessary to employ engines of a heavier and less economical type, with the result that when running on the level sections or on the down-grades there is an appreciable waste of power, whilst the use of brakes is accompanied by an increase of the wear and tear of the rolling-stock of permanent way. In extreme cases it is usually necessary to employ additional (" banking ") engines on the up-grades. In some instances the length and weight of trains have to be reduced and the cost of working the line is thus inevitably increased.

In considering the " earnings " of railway companies, or the "price" at which they place their services at the disposal of the consumer, it must be remembered that the undertakings themselves, being quasi-monopolistic in character, are usually subject to regulations imposed by the State. Consequently, in railway working, the economic tendencies which usually determine the price of commodities or services do not operate with entire freedom. At the same time even railway rates and charges, as a whole, must bear some relation to the cost of production.

Railway expenditure, apart from taxes, falls under two main heads: (a) working expenses, which include salaries and wages, maintenance and renewal of way and works and of rolling-stock, and also fuel and stores; and (b) fixed charges, including interest on capital and also rentals and other similar charges.

The aggregate earnings or gross receipts of a railway undertaking which is run on a purely commercial basis must be sufficient to cover both the working expenses and the fixed charges. The success of the undertaking depends ultimately upon the amount of the gross receipts and upon the proportion of this amount which is absorbed in the payment of working expenses. The volume of the traffic is therefore a matter of fundamental moment. If it be small and incapable of further development, and if the working expenses are already at the minimum compatible with efficiency of service, it may be necessary to charge high rates in order to cover both working expenses and the fixed charges. An increase of rates, to be effective, must, however, be such as to produce an amount which will more than compensate for the loss of traffic which such an increase tends to produce. Successful railway transportation therefore rests upon the following factors: (a) economy in the cost of construction and other items by which the magnitude of the fixed charges is determined, requiring engineering skill; (b) the maximum development of the traffic available, requiring business capacity; and (c) economy in working expenses, which is a matter for a railway expert.

In the fixing of freight charges, account is taken not only of the weight and bulk of the goods conveyed and of the distance for which they are carried, but also of terminal services, such as the loading and unloading of waggons. This charge varies in accordance with the services rendered and the class of goods dealt with. It is also irrespective of the distance the goods are carried. The maximum rates chargeable for goods traffic are fixed by Statute, but on British railways these rates are not necessarily the same in every case. This is not due to any ascertainment of the cost of " production " per unit of service in each case, but to a consideration of the general circumstances of each line concerned. The amount of the fixed charges being known, the density and regularity of the traffic is taken into account. Where the traffic is dense and regular and where fuel is obtainable at a comparatively low cost, there is obviously some ground for establishing lower maxima than would be appropriate for lines in agricultural areas having a light or intermittent traffic. Nevertheless, such differentiation is less common abroad than it is in the United Kingdom.

Service charges and mileage rates differ also according to the varying values of the commodities carried, the differences being determined by an elaborate system of classification. It is extremely difficult to say what proportion of the fixed charges or working expenses of a railway is attributable to the handling of a particular quantity of any particular kind of traffic, because a large part of such expenditures is " joint costs." Consequently railway charges are based very largely upon the consideration of the value of the commodities offered for conveyance. On general economic principles the amount which any commodity can pay for carriage to the market for which it is intended depends upon the amount by which its value in the market exceeds that which it possessed at the point of despatch. The difference between the value of a commodity at the point of despatch and its value in the market is naturally greater in the case of a costly article, and it therefore can bear a higher actual charge without sensibly diminishing the percentage available for profit. The apparently heavy charge payable for the transport of a valuable commodity may increase the cost of that commodity by only a small percentage, whilst in the case of merchandise of low value a similar charge would add a large percentage to the cost of the goods and possibly render them unmarketable. Thus the traffic is usually made to pay " what it will bear " and so long as the aggregate return to the undertaking is adequate, the railway manager is content to carry much traffic at rates which are below the average. This he can usually afford to do, not only because he obtains super-average rates for higher-grade traffic, but also because the additional expenditure incurred by the company in carrying a given quantity of additional traffic is rarely proportionate to the volume of such additional traffic. In the majority of cases the acceptance of additional traffic is accompanied by little addition to the fixed charges which have to be met, and can usually be handled without any proportionate increase in working expenses.

With regard to distance, the rates per mile quoted for freight traffic usually decrease as the distance to be covered increases, for although the cost per ton-mile (or per passenger-mile) for journeys of varying lengths can hardly be gauged with accuracy, it is recognized that long-distance freights are more profitable. Apart from the fact that a long-distance journey may be regarded as having a " wholesale " as distinct from a " retail " character, it enables the railway undertaking to make a fuller use of its plant, whilst the amount of terminal and other work involved is not affected by the greater distance for which the goods are conveyed.

In British practice, railway passenger fares are of three kinds: (a) ordinary fares at scheduled rates, (b) season-ticket rates, and (c) special fares.

Ordinary passenger fares were originally fixed in a somewhat empirical fashion, being arrived at by under-cutting the rates quoted by the other passenger transport agencies which were in operation prior to the advent of the railway era. Nevertheless, the rates which were thus fixed proved to be remunerative without being immoderately so, and it is no doubt because of this that they have usually been recognized as reasonable by the travelling public and the companies concerned.

Similarly, the differentiation which exists between the fares charged to first-class and third-class passengers rests upon an arbitrary basis and is not measured by the actual difference in the cost of the accommodation and haulage. Arbitrary, however, as the method of fixing passenger fares has been, it is the general experience of railway companies that passenger traffic is, on the whole, less remunerative than freight traffic.

Season-ticket traffic being chiefly confined to large urban areas involves heavy expenditure on the construction of lines and stations in districts where the value of land and property is naturally greatest, and where competitive influences are strongest. Another characteristic of season-ticket traffic is that the bulk of it has to be carried within the limits of the morning and evening rush-hour periods, and to meet the requirements of these " peak " hour periods (where trains can get full loads in one direction only), it is necessary to provide a large quantity of rolling-stock which must perforce remain idle during the slack hours of the business day. Against this must be set the fact that the traffic is regular and provides full train-loads with a minimum attention on the part of the station staffs. On the whole, however, the question whether season-ticket traffic is remunerative is debatable, whilst with regard to the low rates chargeable under the system of " workmen's fares " it may safely be said that political and not economic considerations have been the principal determining factor.

" Special " passenger fares are mainly confined to holiday and pleasure traffic. This traffic is naturally mobile and tends to pass readily from one line to another according as the advantages offered by each to the passenger vary in attractiveness. Consequently the traffic is usually secured by purely competitive methods, e.g. by advertisement and by the quotation of special fares. The cost of working pleasure traffic is high in proportion to the revenue earned, but good train-loadings are usually obtained, and as much of the traffic is genuinely " additional " it is doubtless a source of appreciable profit.

Apart from the charges for freight and passenger transport to which reference has been made above, railways commonly quote " special rates " for goods traffic which has to be obtained by active competition with other transport agencies. These special rates represent departures from the ordinary schedule, and in Great Britain and the United States a great part of the total weight of goods conveyed by rail is charged for on the special-rate system.

The institution of these rates may in certain cases be due to the presence of waterway or other railway competition. The cost of transport by waterway is normally low and the competition for the carriage of goods of low intrinsic value is therefore severe; and where the competition arises from the presence of another railway, the competing line which possesses the shortest route naturally has an advantage over its competitor. In other cases the competitive influence may be exerted by a road motor service; but from whatever source it springs the question whether the quotation of special railway rates as a means of securing the traffic is justified is one which can only be determined by a consideration of the particular circumstances of each case.

Water Transport

The expenses of transportation by water, like those of rail transport, fall under two main heads: (a) the fixed charges, which do not vary very much with fluctuations of traffic; and (b) the working expenses, including the costs involved in the actual movement of goods and passengers, the terminal charges which depend upon the volume of the traffic and not upon the distances for which it is conveyed, and lastly, the general expenses which vary very little with increase or diminution of business. As in railway management, the gross receipts must be sufficient to cover both the fixed charges and the working expenses, and provide a reasonable return upon the capital invested.

With regard to fixed and general charges, water transport services differ somewhat from railways. In the case of transport by sea, there are no considerable general charges for maintenance of way nor any fixed charges consequent upon the construction of such way. Construction is limited to wharves, docks and vessels with this equipment, and can be proportioned more or less directly to the amount of traffic to be carried. There is therefore less likelihood of excess in cost of construction and less necessity to accept additional items of traffic at less than average rates merely in order to make a fuller use of the plant provided.

In the case of canals, or of other waterways on the adaptation of which considerable sums have been invested, the conditions with regard to fixed and general charges obviously present a closer resemblance to those which obtain on railways.

The ownership of wharves on inland waterways is ordinarily distinct from that of the vessels which use them; and wharf charges should be such as to yield in the aggregate a normal return on the capital invested in the purchase of land and in the work of construction, i.e. the equivalent of a fair rent for the land occupied, plus a reasonable rate of interest on construction cost.

In water transport competitive influences operate more freely than on railways, and, in the case of ocean services, the choice of route is determined mainly by physical and economic considerations. Ceteris paribus, the choice is determined by the location of the centres to be served, and the route taken will follow the shortest lines between them.

In the case of inland navigation the course of a river will itself determine the route to be taken, whilst in the location of a canal the principles which operate are similar to those which determine the location of railroads.

Transport on natural waterways, and especially by sea, is less monopolistic in character than railway transport, the " sea road " being open to all competitors; and at terminals also such water transport is more subject to competitive forces then is usually the case with railways.

With regard to rates for freight, the general principle is that, on the whole, these rates should bear some resemblance to the cost of carriage, whilst with regard to particular articles discrimination may be made according to their character and value. There is, however, one case in which rates for water transport may be far below cost, namely, in those cases where certain goods may be used as ballast. On a particular route, for example, the demand for cargo space for shipments in one direction may be considerable, whilst in the other direction the demand may be very much weaker. In such a case cargoes may be accepted for the return journey at very low rates, apart from the fact that they may prove useful as ballast.

Road Transport

The principal factor in the modern development of road transport is the advent of the mechanically propelled vehicle, the use of which is rapidly extending. In road motor services, as in the case of other transport agencies, the question of return on capital expenditure is important. The amounts expended upon the purchase of vehicles and upon the purchase of land and the erection of garages (where these are not rented) must be taken into account. Where land and garages are rented, the annual charges thus created must be covered by the gross receipts. Depreciation, repairs and renewals, fuel, and wages must also be provided for.

The responsibility of road motor undertakings for a proportion of the cost of maintaining the roadways which they use is now coming to be recognized, but they still escape the heavy capital expenditure such as the provision of railway way and works involves. In the XXXII.-25 case of these road undertakings, therefore, the fixed charges are of less importance, and such capital charges as they do incur (e.g. in the purchase of vehicles or in the provision of garage accommodation) can be more easily proportioned to the amount of traffic.

The gross receipts, and therefore the rates for freight and passengers, must be such as to cover both the fixed charges and working expenses, and must therefore bear some relation to the costs involved; but in the stage through which road motor transport is now passing there can be no doubt that, in the fixing of rates, the necessity for competing with railway services (especially for short-distance traffic) and with other road motor services is a governing factor.

Air Transport

The possibilities of transport by air remain to be revealed, but it is significant that, already, regular mail and passenger services have been instituted and that, to a limited extent, the aeroplane is being utilized for the carriage of goods in small parcels. The general economic principles governing this form of transport are similar to those which operate with regard to those other transport agencies which use a way provided by nature and escape the construction and maintenance charges which the provision of an artificial permanent way would involve.

Ownership and Control

The question whether the ownership and/or control of transport undertakings should be vested in the State, in municipal bodies, or should be in private hands, was in 1921 still the subject of considerable controversy. In some countries State ownership and, with it, State control of railways are accomplished facts, and even the working of the lines is undertaken by the State. In other cases, State ownership is accompanied by a strict control whilst the actual working of the lines is leased to private companies. In yet other instances State control goes hand in hand with private ownership and management, whilst in some cases (as in the United Kingdom prior to the war, and in the United States) railways are privately owned and managed, and are subject only to State " regulation," particularly in respect of matters concerning public safety and the like.

Many tramways are municipally owned and worked, being subject to State regulation in respect of public safety, whilst in the case of water transport State interference is usually limited to the grant of subsidies, coupled with a relative measure of control and with regulations for safety. In most cases, however, transport by sea is subject to safety regulations alone.

The advocates of private enterprise contend that the economic development and operation of transport is best achieved when public interference is absent or is limited to such matters as concern the public safety. They urge that, as public ownership or control involves official management, the great incentive to make a profit - which is the mainspring of private enterprise and stimulates efficiency - is removed. They urge that in the absence of this spur to efficiency, management tends to become slack and wasteful, that the element of political pressure is present, and that the vigorous enterprise which is essential to development and progress is seldom forthcoming. Experience has shown that these contentions are very largely correct.

On the other hand, the advocates of State ownership and control contend that as transport services possess the character of public utilities, they are proper subjects for public ownership and control, that they should be operated in the public interest alone, and that any profits which may result from such operation should properly accrue to the State or to the municipality as the case may be. They argue also that by the centralization of management of which public ownership and control admit, large economies in administrative and overhead charges can be effected, and that the wasteful competition and duplication of services can be avoided.

In weighing up the contentions of these two factions, it should be borne in mind that, whereas private ownership must of necessity be worked on an economic basis in order to exist at all, in the case of State ownership it is impossible to say definitely whether a service is being worked efficiently or economically.

Government Regulation

The extent and nature of the regulation of transport by Government has varied very considerably at various times and in different countries. Where, as in many countries, the railways and canals have been built or acquired, and similarly the roads, to a varying extent, built and maintained, by the State, the extent of Governmental regulation is naturally great. In other cases - notably in Great Britain and the United States - transport has been traditionally regarded as a matter for private enterprise and initiative, and only such measure of control provided as might be necessary in the interests of public safety and general national policy. The present tendency has in all cases been towards 'a greater measure of control of transport services by the State, due to the increasing realization of the importance of transport in the economic life of a nation.

As regards roads and rivers - the latter having formed the principal channel of communication for many centuries, the State exercised but little control in Great Britain. Roads were regarded essentially as of local interest, the local authorities or private individuals being responsible for such construction and maintenance work as was undertaken. During the eighteenth century considerable improvement of the road system in many parts of England was made by the Turnpike Trusts set up by Private Acts of Parliament, and subsequently by the work of Macadam and Telford. In 1835 the Highways Act abolished the compulsory Statute labour on roads and empowered each parish to levy a rate for road maintenance, and in 1888 the care of the main roads outside urban areas was transferred to the County Councils. During the whole period the general policy adopted had been that of adapting traffic to road conditions rather than vice versa, with consequent restriction of weight of load, and stipulations as to breadth of wheels, and the fixing of conditions for the licensing of public vehicles; but a great step forward, mainly due to the extended use of mechanical road transport, has been the passing of the Roads Act of 1920, which initiated a Road Fund financed by the excise duties on mechanically propelled vehicles, from which grants can be made by the State for the construction, maintenance and improvement of roads, and which provided also for a greater measure of control over vehicular traffic.

As regards rivers, State action was mainly directed to the prevention of obstructions and abuses; and when authorizing the construction of canals - which during the latter part of the 18th and the beginning of the 19th century became the system of transport on which Industrial England mainly depended - these private undertakings, as later in the case of railways, were given compulsory powers to acquire land, and in return Parliament laid down the maximum charges which they might levy. In spite of the variety in the gauge and depth of the different canals, the canal system developed into a virtual private monopoly earning at one time very large profits, and the charges gave rise to much discontent among traders.

The railways suffered from this discontent, not only in the early stages of their development, but for many years afterwards, since the principal care of Parliament for a long time was to avoid the creating of another monopoly. It was at first thought that competition would be assured by the different carriers owning their locomotives and waggons, the railway companies owning only the lines. This was soon found to be impracticable, and reliance was then placed in competition between different undertakings; and it was many years before it was realized to be in the interest of the State that the various companies should work together.

Hitherto Government control in England has been mainly restricted to matters concerning the safety of the public and railway-workers, and to the charges made by the railway companies for the carriage of passengers and goods. The supervisory authority was placed by Parliament with the Board of Trade, a separate railway department being formed subsequently in the Board to deal with all railway matters. Officers of this department inspected all lines before they were opened for traffic, being given power to delay the opening where necessary, and were required to inquire into the causes of all accidents. They had no power to order work to be carried out in any special way, but if their requirements or recommendations were not given effect to, they had the power of refusing to sanction the use of the lines for passenger traffic for which fares were charged. In the case of goods lines and alterations to existing lines, the interests of the public were protected by the fact that if an accident occurred and the Board of Trade regulations had not been complied with, juries would deal very severely with the offenders. In practice, wherever railways have been constructed or operated, the Board of Trade regulations have always been complied with.

The Board of Trade was empowered to act as conciliar to settle, amicably if possible, differences between individuals and the railway companies, and, with a view to giving traders a specially qualified tribunal for complaints against the companies, the Railway and Canal Commission was set up in 1888.

The outbreak of war in Aug. 1914 brought about a remarkable extension in the control of transport service by Government. In Great Britain the Government at once took possession of the railways under the Regulation of the Forces Act, 1871, and during the whole period of the war these were worked on behalf of the Government by the Railway Executive Committee, a standing body formed from among general managers of the principal railway companies. Certain canals were taken over by the Canal Control Committee, and during the period of the war the greater part of the shipping was worked under the direction of the Ministry of Shipping. In 1919 further progress in control was made by the Ministry of Transport Act. This Act brought into being the Ministry of Transport, and placed under the minister the existing powers (with certain exceptions) of other Government departments in relation to railways, light railways, tramways, canals, waterways and inland navigations, roads, bridges and ferries, and vehicles and traffic thereon, harbours, docks and piers. By this Act the minister was charged with the initiation and formulation of a policy for dealing with transportation, and in order to allow time for this and to permit of development in the meantime, he was authorized to retain for a period of two years control of those undertakings which were already in Government possession, and if necessary to take possession similarly of any other undertakings. Very wide powers were given to the minister in regard to these undertakings. He might give directions as to the rates and fares to be charged, and the salaries and wages of employees were under his control. He might order the working or discontinuance of working of an undertaking, or any part thereof, and take steps to see that alterations and improvements were carried out and cooperative working effected which would result in greater efficiency or more economical working. The minister was also empowered to establish and work, directly or indirectly, transport services by land or water. During the period of two years it was thought that the undertakings would be able to make considerable progress, as these powers would enable the minister to authorize the companies to carry out alterations and improvements and to acquire land without the delay and expense involved by the ordinary procedure.

In addition to the above temporary powers, the minister was authorized to make grants and loans for the construction, improvement or maintenance of the various classes of transport services and for the promotion of such services by existing companies, and he was also given powers in regard to the classification of roads, the through running of tramcars, omnibus routes, and the purchase of privately owned railway waggons.

The British Ministry of Transport was formed in Aug. 1919, Sir Eric Geddes being the first minister. It comprised departments dealing with civil engineering, mechanical engineering, development, traffic, finance and statistics, public safety, roads, secretarial and legal. A separate branch was formed to deal with Irish transport questions. In July 1920, the ministry issued a memorandum containing proposals for the future organization of transport undertakings in Great Britain. These provided for the grouping of existing railway companies into seven groups, each of these groups being under the control of a Board of Management composed of representatives of the shareholders and employees; for the fixing of rates to a certain standard revenue, a proportion of any surplus being allocated to a development fund to assist backward districts to develop light railways and other appropriate purposes; for the setting up of permanent machinery for settling railway wages and working conditions. It was also stated in this memorandum that it was intended to confer powers upon the State in relation to the railways (a) for the protection of the public, (b) for the economical working of the railway systems of the country, and (c) to safeguard national interests.

These proposals led to considerable criticism, and as a result of discussion with the railway companies, trading interests, and trades unions concerned, various alterations were agreed upon and embodied in the Railways bill introduced by the Government in the House of Commons in May 1921. This bill was designed to sweep up masses of legislation which had accumulated in the years since railways were first sanctioned by Parliament, and to simplify the relations between the State, the railway companies and the users.

The bill provided for the grouping of railways in four groups, which grouping was to take effect on Jan. I 1923, and also for a variation of the grouping, provided that the Minister of Transport was satisfied that the variation was not incompatible with the efficient and economic working of the railway system of the country: the machinery by which the amalgamation of the companies in each group was to be effected was laid down in detail, and the scheme when agreed upon by the companies had to be submitted to the Amalgamation Tribunal established by the bill. If the companies were unable to agree upon a scheme, one would be settled by the Tribunal. The Board of Management of each group would be elected by the shareholders, but the proposal that the employees should be represented was abandoned. Elaborate machinery was provided for the fixing and periodical review of rates and fares. It was proposed to set up for this purpose a new court, called the Railway Rates Tribunal and consisting of three members, one a lawyer, one a commercial expert, and one a railway expert. An entirely new system was to be adopted, and the fixed charges would be actual and not maximum charges, that is to say, that except in certain specified cases the railway companies would not be at liberty to charge for any traffic a rate other than that fixed. The proposal to set up a development fund was abandoned, and in order that the railway companies might have every incentive to efficient and economical management, the bill provided that in the event of a company earning a surplus above the standard revenue, 20% of such surplus should go to the company and 80% to the trading community in the shape of reduction of rates.

It was proposed that the Minister of Transport should have power to require any two or more railway companies to conform gradually to measures of general standardization of ways, plant and equipment (including methods of electrical operation, type, frequency and pressure of current), and to adopt schemes for cooperative working or common use of rolling-stock, workshops, manufactories, plant, and other facilities; also, the railway companies might be required, on a proper complaint being made, to afford reasonable services, facilities and conveniences, and the machinery for obtaining authority to construct a light railway was simplified.

In other countries the war has similarly brought about a greater measure of Governmental control. In the United States the railways were taken over by the Government in Jan. 1918, and worked by a director-general of railroads until March I 1920, when they were handed back to their owners. In the meantime the Transportation Act had been passed, of which the two cardinal features were: - (a) the continuance of private ownership and operation as a national policy, and (b) the recognition of public interest and duty in respect to the adequacy and efficiency of transportation facilities. The powers and responsibilities of the Interstate Commerce Commissioners have been largely increased by this Act, particularly in relation to the settlement of rates, the economical provision of adequate facilities, the regulation of operation of the railways in times of emergency, and the certification of loans to transport undertakings to enable them to render effective service during the period of transition which followed immediately upon the termination of Federal control.

In Germany the pre-war individual State administrations have been replaced by a central commonwealth administra tion under a Ministry of Transport established in 1919; and in most other European countries there has been considerable strengthening of the departments dealing with transportation, due to the increasing appreciation of the importance of this factor in the economic life of the State.

International Aspect

A fu rther question needs consideration, i.e. the international aspect of an effective international transport council. Roads, waterways and railroads originally were built for communication between neighbouring towns or districts, and to serve the needs of traffic within each nation, and not as routes from one State to another. Apart from custom and policy, to which must be attributed in earlier times the relatively small amount of commerce between the various European countries, there were great difficulties arising from customs dues, physical obstacles, differences in gauge and plant, and in loading regulations. These difficulties had such serious results that as the need for the interchange of goods became appreciated, endeavours were made to overcome them at various international conventions. Of these, the best known is the Berne Convention, formulated in 1893 as a result of arrangements initiated at a conference of representatives of various Governments held at Berne in 1878. This convention, which has been embodied in the laws of the adhering States, settled many difficulties. It abolished customs dues in intermediate countries on through traffic, specified the rights, liabilities and responsibilities of shipper, carrier and railway company, and provided for the establishment of a permanent association to facilitate settlements between the railways governed by the Convention and for the diffusion among them of information relating to the matters covered by the Convention. Further agreements have been subsequently reached on other important matters, but the need of a fresh and thorough review of the subject from all points of view became increasingly apparent during the first decade of this century. Very little was, however, done until the peace negotiations at Paris in 1919. A strong commission of experts of the Allies was formed to advise on questions concerning transit which arose during the negotiations; and the Covenant of the League of Nations included a declaration that members of the League will make provision to secure and maintain freedom of communications and of transit for the commerce of all members of the League. The expert commission in question continued to work until March 1920, when it was taken over by the Council of the League of Nations and instructed to arrange the Conference on Communications and Transit, which was held at Barcelona in March and April 1921, under the presidency of M. Gabriel Hanotaux. One of the results of this conference, which may have very far-reaching importance, was the creation of a permanent international body, to be known as the Technical and Advisory Commission, to watch the international traffic situation. The Commission will consist of sixteen members and will function as part of the League of Nations organization at Geneva. It will meet at frequent intervals and will arrange for a full assembly of all the members of the Conference or for regional conferences as circumstances may require. It will have duties of advice, initiation and administration, and will also serve as a council of conciliation in the event of a dispute on a traffic question between signatories of the Barcelona Convention. The latter function may lead to the gradual creation of a recognized and authoritative body of international law on traffic questions, which will prove a considerable advance on existing conditions. The Commission will have, as a basis for its decisions, conventions and recommendations agreed upon at the Barcelona Conference, which, however, require to be ratified by the several Governments. The more important of these deal with freedom of transit, waterways of international interest, and international railways. The convention on freedom of transit lays it down that the parties shall facilitate the free transit of persons, goods, vessels, coaching and goods stock or other means of transport by the routes most convenient for international transit. No distinction whatever is to be made as to the nationality of persons, the flag flown by vessels, the origin, points of departure, entry, exit, destination, or the owner ship of the goods; no special transit dues are to be levied beyond what is necessary to defray the cost of actual services rendered, and they are to involve no discriminations as regards nationality or ownership. It is expected that many States will act on the recommendations, which declare that the Powers represented at the Barcelona Conference recognize that " any one of these States is entitled on the railways under the sovereignty or authority of any other State to all reasonable facilities for promoting and encouraging the flow of international traffic to and from its territory," and proceed to lay down detailed regulations for the application of these principles. (A. Gi.)

Categories: TOW-TRI | Transport