Note 35 — SECTION IX. THE REAL BASIS OF RATES.

Earl of Selborne in Denaby Main Colliery Company v. Manchester Sheffield and Lincolnshire Railway Company.—L.R. 11 A.C. p. 113.

Consumers may profitably bear in mind the report of the Select Committee on Railways (Rates and Fares), of 1881-2. Whilst stating “Your Committee cannot recommend any new legislative interference for the purpose of enforcing upon Railway Companies equality of charge.” They add: “Some of the inequalities of charges complained of are to the advantage rather than to the disadvantage of the public, where there is an undue preference the law now gives a remedy.” They also give the following illustration:—

“That Greenock sugar refiners should be in the same markets as the sugar refiners of London, while it may be a grievance to London refiners, must be an advantage to Greenock refiners, and cannot be a disadvantage to buyers of sugar.”

It is added that the effect of interference with the freedom to fix rates according to special circumstances would in this instance be “to give a practical monopoly to the London sugar refiners who would be the real gainers by the transaction. It does not appear to your Committee that such a result would be either just or reasonable.”