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 eco- nomical 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 Govern- ment 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 Trans- port 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 com-
panies 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 aban- doned. 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 speci- fied 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 md economical management, the bill provided that in the event )f a company earning a surplus above the standard revenue, 20% of such surplus should go to the company and 80% to the
- rading community in the shape of reduction of rates.
It was proposed that the Minister of Transport should have lower to require any two or more railway companies to conform jradually to measures of general standardization of ways, plant tnd equipment (including methods of electrical operation, type, requency and pressure of current), and to adopt schemes for ooperative working or common use of rolling-stock, workshops, nanufactories, plant, and other facilities; also, the railway com- lanies might be required, on a proper complaint being made, to fford reasonable services, facilities and conveniences, and the aachinery for obtaining authority to construct a light railway 'as simplified.
In other countries the war has similarly brought about a reater measure of Governmental control. In the United States he railways were taken over by the Government in Jan. 1918, nd worked by a director-general of railroads until March i 1920, 'hen they were handed back to their owners. In the meantime ae Transportation Act had been passed, of which the two car- ' inal features were : (a) the continuance of private ownership 'ad operation as a national policy, and (b) the recognition of ublic interest and duty in respect to the adequacy and efficiency
- transportation facilities. The powers and responsibilities of the
iterstate Commerce Commissioners have been largely increased ! y this Act, particularly in relation to the settlement of rates, le economical provision of adequate facilities, the regulation of Jeration of the railways in times of emergency, and the certi-
- ation of loans to transport undertakings to enable them to
nder effective service during the period of transition which llowcd immediately upon the termination of Federal control. In Germany the pre-war individual State administrations i ive 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 further question needs consideration, i.e. the international aspect of an effective international trans- port council. Roads, waterways and railroads originally were built for communication between neighbouring towns or dis- tricts, 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 load- ing 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 interna- tional 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 Govern- ments held at Berne in 1878. This convention, which has been embodied in the laws of the adhering States, settled many diffi- culties. It abolished customs dues in intermediate countries on through traffic, specified the rights, liabilities and responsi- bilities of shipper, carrier and railway company, and provided for the establishment of a permanent association to facilitate settle- ments 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 concern- ing transit which arose during the negotiations; and the Cove- nant of the League of Nations included a declaration that mem- bers 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 confer- ence, 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 mem- bers and will function as part of the League of Nations organiza- tion at Geneva. It will meet at frequent intervals and will arrange for a full assembly of all the members of the Confer- ence 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 Barce- lona 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 rati- fied 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-
