Railways and the State 279 



Before, however, reaching this stage in their development, 

 the railways had had some other struggles with the Govern- 

 ment on questions of State policy arising out of those afore- 

 said feelings of suspicion and distrust, and due to the same 

 fear as before that the companies would be sure to abuse 

 their position unless they were restrained from so doing. 



Following on the recommendations of the Committee of 

 1840, and with a view to safeguarding the public interests in 

 regard alike to safety and to reasonable treatment, some im- 

 portant statutory powers had already been conferred on the 

 Board of Trade. Under the Regulation of Railways Act, 1840, 

 notice was to be given to the Board of Trade of the opening 

 of all new lines of railway ; such lines were to be inspected 

 by Board of Trade inspectors ; various returns in respect of 

 traffic, tolls, rates and accidents were to be made to that 

 body, to which, also, all existing bye-laws affecting the public 

 were to be submitted for confirmation. In 1842 a further 

 Act gave the Board power to delay the opening of any new 

 line until they were satisfied that all the necessary works had 

 been effectively constructed. Mr Glyn, chairman of the 

 London and Birmingham Railway, said of this measure : "It 

 is a Bill which I do not hesitate to say is, on the whole, cal- 

 culated to do the interests of railways very considerable 

 service." 



But the attitude of the companies was no longer favourable 

 when Mr Gladstone's Committee of 1844 proposed to confer 

 on the Board of Trade some drastic powers for the periodical 

 revision of railway rates, and likewise sought to lay down 

 the terms on which the State might acquire all future lines 

 of railway. The proposals in question were incorporated 

 in a Bill which was brought in by Mr Gladstone ; but the 

 measure met with strenuous opposition from the railway 

 interests, and the modifications introduced before it became 

 law were of such a nature that the Act has never been put 

 into operation. 



In regard to the revision of rates, the Act laid down that 

 if, after the lapse of twenty-one years (not fifteen, as pro- 

 posed in Mr Gladstone's first Bill), any railway sanctioned 

 after the passing of the Act had paid ten per cent for three 

 years, the Treasury (not the Board of Trade) might reduce 

 the rates, guaranteeing, however, a ten per cent dividend to 



