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Canal Administration

This is Chapter 9 from 'The Canal System of England'

Its growth and present condition, with particular reference to the cheap carriage of goods - 1904 - by H. Gordon Thompson

As matters stand at present, no trader can make use of a through canal route in England without negotiating with a number of small companies, every one of which has its own rate of toll, and none of which is disposed to give too much facility to the other companies.

To such an extent does this difficulty prevail that Mr. Morton told the Select Committee of 1883 that so long a time is spent in correspondence and arranging a suitable rate of toll, that very frequently the traffic passes away before a suitable rate can be arranged for it.

Through routes

Numerous examples might be given to illustrate the way in which different routes are broken up into pieces of greater or lesser size, some owned by independent companies and some controlled by railways.

Mr. Lloyd, speaking before the same Committee, gave the following particulars as to the number of distinct Canal Companies upon the principal through routes:

I. LONDON TO LIVERPOOL (3 Canal Routes).

Via Shropshire Union 9 different Canals & Navigations

Via N. Staffs, and Bridgewater 9 Companies.* (* The Grand Junction Canal Co. in 1894 purchased the Grand Union and the Leicestershire and Northamptonshire Union Canals thus reducing to seven the number of companies on this route.)

Via Warwick and N. Staffs. ... 10 Companies.

II. LONDON TO BRISTOL (4 Canal Routes).

Via Kennet and Avon 3 Companies.

Via Wilts and Berks 5 Companies.

Via Stroud water 3 Companies.

Via Warwick 9 Companies.

III. BIRMINGHAM TO BRISTOL (3 Canal Routes).

Via Worcester 3 Companies.

Via Stourbridge 5 Companies.

Via Wolverhampton Locks - 4 Companies.

IV. HULL TO LIVERPOOL (3 Canal Routes).

Via Leeds and Liverpool - 4 Companies.

Via Rochdale 7 Companies.

Via Huddersfield 9 Companies.

V. LONDON TO HULL (2 Canal Routes).

Via Leicester Navigation ... 8 Companies.

Via Coventry 9 Companies.

Through routes

Thus a trader desirous of sending iron-work from London to Liverpool, or vice versa, would have to deal with no fewer than six or seven canals, who charge tolls varying from 2d. to 1s. 9d. per ton to Preston Brook, within 20 miles of Liverpool. If, however, the traffic is to be carried 20 miles further, it has to be transshipped into larger craft and carried on the Bridgewater Canal, the owners of which charge 7s. 6d. per ton, or more by 2s. 4d. than the other six companies charged for the whole distance of 220.25 miles over which they had carried the goods.* (*Jeans Waterways and Water Transport. Since Mr. Jeans' book was published the Manchester Ship Canal Go. has purchased the Bridgewater Canal.)

Amalgamation

Railway Companies long since recognised the advantages to be gained by amalgamation. All the large Railway Companies are the products of the amalgamation of smaller ones which have united and thus extended their influence and equalised their rates. But if Railway Companies recognised the advantage of their own amalgamation, they were also not slow to realise that by purchasing canals forming links in through water routes, they were stifling future competition with themselves. Thus it came about that one-third of the canal-mileage was allowed to pass into their hands, and at the present time 1,264 out of 3,520 miles of navigation are in their possession.

Parliamentary report on Railway control

Freedom from railway control and amalgamation on through-routes are the first essentials for our Canal System, and this necessity was recognised when the report of the Joint Committee of the two Houses of Parliament appointed in 1872 was adopted.

It stated inter alia:

(a) The roost important method by which the railways have defeated the competition of canals has been the purchase of important links in the system of navigation and the discouragement of through traffic.

(b) That no inland navigation now in the hands of a public trust shall be transferred to or placed under the control of a Railway Company, and that if the trustees of an inland navigation or of a canal, apply to Parliament for power to purchase compulsorily a canal from a Railway Company, such purchase shall be favourably regarded by Parliament.

(c) That the utmost facilities shall be given for the amalgamation of adjoining canals with one another or with adjoining inland navigations.

(d) That no canal shall be transferred to, or placed directly or indirectly under the control of any "Railway Company, nor shall any temporary lease of any canal to a railway company be renewed, until it has been conclusively ascertained that the canal cannot be amalgamated with or worked by adjacent canals, or by a trust owning an adjacent inland navigation.

Effect of Railway control on Tolls

The following example which was given in evidence before the Select Committee of 1883 serves to show the way in which the possession of important links of the Canal System by Railway Companies, affects the toll of the through route. The Birmingham Canal Company guaranteed by the North-Western Railway Company, owns 12 out of 160 miles, the total length of the route, and they have heretofore taken 33 per cent, of the whole recoverable toll on the entire route.

Tolls on bricks

With regard to the carriage of bricks a still more glaring instance was given. The Birmingham Canal Company's charge upon bricks on a length of 7 miles was 11.25d. per ton, whilst the adjoining canal the Warwick for a distance of 37.5 miles charged 6.5d., and the Grand Junction for 101 miles only charged 1s/4.5d.

The only remedy for this defect in our Canal System is the amalgamation of the Companies on through routes. In 1894 the Grand Junction Canal Company purchased the Grand Union, the Leicestershire and Northamptonshire Union Canals, and this was the first real step taken for the union of independent links of a through route.

Canal Companies as toll-takers and carriers

The subject of administration raises the question as to whether Canal Companies should act as carriers or only camera. as toll-takers. Of the English canals only fourteen act as carriers, six of which are independent, and the remaining eight owned by railways.

This same question was formerly raised with reference to Railway Companies, for at their first construction railways were regarded as "land canals," and by Act of Parliament any person who paid the tolls was allowed to run his trains over the lines.

The Companies themselves declared that it was against their wish and their interests to carry goods and passengers and that they desired to be toll-takers only. Even up to 1840, private carriers were still found competing with the Companies on the Gt. Western and Grand Junction Lines.

Canal Companies as carriers

Though the mileage of the seven independent canals in England and Wales is 200 miles less than that of the eight owned by Railway Companies, the revenue earned as carriers by the former is more than double that earned by the latter, £433,006 as against £199,042.

An examination of the individual earnings of the canals in the two classes shows that while, the revenue earned by the Railway-owned canals as toll-takers, is with only two exceptions, considerably above that earned by them as carriers, exactly the reverse is the case, with one exception, with the independent canals.* (*Jeans The progress of Railways and Waterways Report of Conference on Inland Navigation. 1895. P. 11.) Thus the Aire and Calder earned £121,775 as carriers, and only £67,835 from tolls ; the Leeds and Liverpool £94,464 as carriers, as against £43,367 from tolls ; and the Trent Navigation £14,115 as carriers, and only £1,492 from tolls ; whereas the total revenue of the seven independent canals from freight as carriers is £433,000, and that earned by tolls £212,551. Finally, if we compare the profits earned by canals acting as carriers with those (whether acting as carriers or not), taking tolls, we find that the total earnings of the eighteen carrying canals of the United Kingdom amount to more than two-thirds of those earned by one hundred and twenty-six toll-taking canals, i.e., £685,240 as against £998,844, though the mileage of the former is only 1,380 miles and that of the latter 3,811 miles.

The above facts seem to show that where a Canal Company controls an important through route, the carrying trade may be made as remunerative on canals as on railways.

It may be convenient here to sum up the important advantages, defects, and points requiring attention in the English Canal System.* (* Canals and Inland Navigation. A paper read before the Society of Arts, by Gen. Bundle, R.E., C.S.I.)

Advantages of canals

The chief advantages of canals, apart from the question of economy are :

(i.) They admit of a class of goods being carried in the manner and at the speed which proves to be most economical and suitable for it r without interference from any other class.

(ii.) Goods can be carried in greater bulk.

(iii.) The landing or shipment of cargo is not necessarily confined to certain fixed stations, as is obligatory on railways, but boats can stop at any point on their journey to load and unload, and discharge their cargoes direct over the ship's side.

(iv.) The dead weight to be moved in proportion to the load is much less.

(v.) The capacity for traffic is practically unlimited provided the locks are properly designed.

(vi.) There is no obligation to maintain enormous or expensive plant or establishments, as all these can, and would, be provided by separate agencies and distinct capital. Thus a large outlay in first cost and subsequent maintenance is avoided.

General disadvantages and defects

The disadvantages and defects, besides those of original construction, in existing British Canals are:

(i.) A total absence of unity of management.

(ii.) A want of uniformity of gauge in the locks as well as in the canals themselves.

(iii.) The difficulty in the use of steam power which cannot be adopted except in a few notable instances.

(iv.) The lack of a uniform system of tolls.

(v.) The fact that so many links are in the hands of the Railway Companies which paralyses any unity of action, and renders any scheme of amalgamation between the several parts of a through-route impossible.

(vi.) The liability of canals being frozen up in winter and a consequent dis-organisation of traffic.

Points requiring attention

The chief points requiring attention are:

(i.) The dimensions to be given to the main lines, with the best relative proportion of width to depth.

(ii.) Uniformity of gauge in locks or lifts, which should be of a size suited to the maintenance of the most effectual steam traffic.

(iii.) Remodeling of the cargo boats, so as to obtain the largest carrying capacity, with the least amount of sectional and frictional resistance.

(iv.) Provision for working the canals night and day, with the help of the electric light, the power for maintaining which would be easily and economically obtained at the various changes of level.

(v.) A uniform rate of toll.

(vi.) A careful revision of the administration, and the establishment of special effective supervision over the whole system.

(7) A uniformity of headways under bridges.* (* It is to be regretted that there is no reference to the " headway under bridges " in the Board of Trade returns for 1888 although this is a most important point in canal navigation.)

Capacity for traffic

In spite of these numerous defects and disadvantages, the capacity of the English canals for traffic is very great. This is readily proved by the traffic returns, in which we find that for 1888 the Birmingham canals alone carried nearly 8,000,000 tons of traffic or 48,500 tons per mile of canal. Even these figures give but a poor idea of the carrying capacity of our waterways, for on the 21 miles of the Weaver during the same year, no less than one and a half million tons or 75,000 tons per mile, were transported, and on the busiest portion of this navigation at least 1,200,000 tons per mile must have been carried.

From the above figures it will be seen that the possibilities of canals for traffic are very large, and with better conditions, the traffic on the existing waterways might be greatly increased.

Railways and Canals in conjunction

It has often been urged that the Canal and the conjunction. Railways should be combined under one management and that were the canals of sufficient size, with uniform gauge and capacity, they could be worked side by side with the railway to their mutual advantage, thus largely replacing the goods train with its consequent risk of both accident and delay caused by the shunting, etc., incidental to goods traffic. An attempt is made to show that the canal would take the bulky and heavy goods, such as coal, iron, stone, etc., and the railway the passengers and perishable and light articles. This, however, seems quite impracticable, taking into account the present relations between the Canal and Railway Companies, and the manner in which the latter have acted in cases where canals have been acquired.

Judging from past experience the inevitable result of such universal combination would be an increase of freights at present in vogue, and the transfer of traffic as much as possible to the railway, leaving the trader entirely at the mercy of one carrier.

Railway Rates and Fares Committee

In 1882 the Railway Rates & Fares Committees reported as follows :-

"Cases have been adduced where Railway Companies, having acquired possession or control of a canal, have ceased to work it, or allowed it to fall into disrepair, or charged excessive tolls, especially in the case of through routes, and that in consequence traffic is diverted to the railways where higher rates are exacted, to the injury of traders and the public generally. Your Committee are of opinion that these complaints are not unfounded."

In 1888 the Railway and Canal Traffic Act was passed, which, recognising the report of the 1882 Committee, contained provision for the protection of the trader using railway-owned canals. As regards railway control, section 38 empowered the Railway and Canal Commissioners to make orders for the alteration and adjustment of tolls, rates, and charges levied on the traffic of, or for the conveyance of merchandize on the canals controlled by Railway Companies, where it was proved to their satisfaction that such tolls, rates, or charges were calculated to divert the traffic from the canal to the railway, to the detriment of the canal or of persons sending traffic over the canal or other canals adjacent to it; and if the alterations required by the order were not made by the company within such time as it prescribed, the Commissioners might themselves make them. Section 42 also provided that in the event of the misapplication of a Railway Company's funds for the acquisition of any unauthorized interest in a canal, the canal interest purchased in contravention of its provisions should be forfeited to the Crown, the officers who permitted such application of the Company's funds being made liable for their repayment to the Company.

Railway control

That Parliament has also shown its appreciation of the disadvantage of railway-owned canals is seen by the fact that in 1889 the Manchester, Sheffield and Lincolnshire Railway Company was compelled by Act of Parliament to sell the canals between Sheffield and the Trent to an independent canal company, to be formed after the passing of the Act.