Tramways Act 1870
Encyclopedia
The Tramways Act 1870 was an important step in the development of urban transport in Britain. Street tramways had originated in the United States, and were introduced to Britain by George Francis Train
in the 1860s, the first recorded installation being a short line from Woodside Ferry to Birkenhead Park in the town of Birkenhead
. However, when Train started laying lines on top of the highway in London, he was arrested and fined, although he thought he had obtained official permission.
The Act attempted to promote this new means of transport by clarifying and regulating the legal position. It authorised local boroughs or urban district councils
to grant a 21-year concession to a private tramway operator. The operator could construct the track as part of the concession but was responsible for the repair of the public highway between the tracks and a short distance either side. The local authority could construct the track themselves if they wished to retain complete control of the highway, but they were not allowed to operate trams.
At the conclusion of the lease, the local authority could purchase the complete undertaking, including the trams and horses (or, in the case of a steam tramway, the locomotives and trailers). This was at a normal asset valuation, which took account of depreciation
, and not a valuation of the business as a going concern. The so-called "scrap iron clause" proved to be a disincentive to investment and improvement in later years, and in some locations was even said to be a disincentive to the capitalisation of new undertakings.
Several sections of the Act were later repealed or superseded by other legislation, including the Light Railways Act 1896
. Most notably, local authorities were given the right to construct and operate their own tramways under the newer Acts, and municipal ownership became the norm when the original concessions expired.
George Francis Train
George Francis Train was an entrepreneurial businessman who organized the clipper ship line that sailed around Cape Horn to San Francisco; he organized the Union Pacific Railroad and the Credit Mobilier in the United States, and a horse tramway company in England while there during the American...
in the 1860s, the first recorded installation being a short line from Woodside Ferry to Birkenhead Park in the town of Birkenhead
Birkenhead
Birkenhead is a town within the Metropolitan Borough of Wirral in Merseyside, England. It is on the Wirral Peninsula, along the west bank of the River Mersey, opposite the city of Liverpool...
. However, when Train started laying lines on top of the highway in London, he was arrested and fined, although he thought he had obtained official permission.
The Act attempted to promote this new means of transport by clarifying and regulating the legal position. It authorised local boroughs or urban district councils
Urban district
In the England, Wales and Ireland, an urban district was a type of local government district that covered an urbanised area. Urban districts had an elected Urban District Council , which shared local government responsibilities with a county council....
to grant a 21-year concession to a private tramway operator. The operator could construct the track as part of the concession but was responsible for the repair of the public highway between the tracks and a short distance either side. The local authority could construct the track themselves if they wished to retain complete control of the highway, but they were not allowed to operate trams.
At the conclusion of the lease, the local authority could purchase the complete undertaking, including the trams and horses (or, in the case of a steam tramway, the locomotives and trailers). This was at a normal asset valuation, which took account of depreciation
Depreciation
Depreciation refers to two very different but related concepts:# the decrease in value of assets , and# the allocation of the cost of assets to periods in which the assets are used ....
, and not a valuation of the business as a going concern. The so-called "scrap iron clause" proved to be a disincentive to investment and improvement in later years, and in some locations was even said to be a disincentive to the capitalisation of new undertakings.
Several sections of the Act were later repealed or superseded by other legislation, including the Light Railways Act 1896
Light Railways Act 1896
The Light Railways Act 1896 was an Act of the Parliament of the United Kingdom of Great Britain and Ireland . Before the Act each new railway line built in the country required a specific Act of Parliament to be obtained by the company that wished to construct it, which greatly added to the cost...
. Most notably, local authorities were given the right to construct and operate their own tramways under the newer Acts, and municipal ownership became the norm when the original concessions expired.