The evolution of the British railway network, 1825-1914: the effects of inter-company rivalry on the geography of the network

"Economic historians such as Fogel and Hawke have examined the contribution of railways to economic growth, whilst business historians such as Gourvish and Channon have assessed the efficiency of the administrative arrangements used to manage railways. Although there has been considerable debate on whether investment in railways before 1914 was excessive and wasteful, little attempt has been made to examine whether the geographical structure of the network was efficient in terms of the traffic that needed to be carried. Both Turnock and Popplewell have examined the influence of the physical environment, and also the interplay of rival vested interests, on the geography of the network, but without the aid of a formal model of the type developed in this paper. The evidence used in this paper comes from over 2,000 sets of plans and sections deposited by railway promoters with Clerks of the Peace, and now held in County Record Offices and the House of Lords Record Office. The plans include schemes that were built in full, partially built, authorised by Parliament but never built, and never authorised. These plans are used to construct counterfactual scenarios which can be compared with the railway system as actually built. Various criteria are developed by which the performance of alternative systems can be evaluated – e.g. comprehensiveness of geographical coverage, average journey times between sample locations, and the radius of locations accessible from major centres within a given time or distance. The principal findings are that: • The railway system as built was seriously inefficient compared with the best practical alternative; • The principal inefficiencies were the duplication of routes, bad location of hubs, and lack of flexibility due to too few links where railways cross; • There were too many dead-end branch lines and too few cross-country routes – in particular, there was a shortage of orbital routes around London and other major centres; • Many of the lines which were not built would have been more useful, in terms of overall network performance, than many of the lines which were built; • There was a clear political opportunity to address the emergent weaknesses of the railway system just before the Mania of 1845, but the opportunity was wasted because of opposition from MPs who wished to be seen to being doing everything in their power to promote the interests of the their own constituencies at the expense of neighbouring ones; • Competition between established companies and new promoters often favoured established companies, whilst competition between rival promoters often caused the failure of all the promotions. Thus competition between companies did not, in fact, stimulate the building of new lines, as only a small proportion of the lines promoted were ever built. Overall, competition between rival towns undermined the political process of selecting rival schemes, whilst the competitive tactics of rival companies undermined many worthwhile independent schemes. With such distorted incentives, it is no surprise that the railway system evolved an inefficient geographical structure."