The Press Friday, August 19, 1932. Roads and Railways in England.

Press, Volume LXVIII, Issue 20629, 19 August 1932, Page 10

The Press Friday, August 19, 1932. Roads and Railways in England.

According to this morning's cable news, the Boad-Rail Enquiry Committee set up in March by the British Government has recommended that the tax on commercial motor vehicles, particularly the heavier classes, should be increased to produce an extra £60,000,000 a year. It will be interesting to discover from the full report the grounds of this proposal, because the Committee's examination of the economic basis of road and rail competition is the first yet made in any country. Its terms of reference were:

To investigate the facts relating to the total costs of the highways system (including the regulation of traffic), the incidence of those costs and the contributions of the different classes of users of mechanically propelled vehicles; to consider and report on the nature and extent of the regulation which, in view of economic developments, should be applied to goods transport by road and by rail; and to make recommendations designed to assist the two sides of the industry to carry out their functions under equitable conditions.

The first part of^the report should therefore afford information about the costs of road maintenance and provide a starting-point from which to consider the most economic distribution of traffic. The second part should indicate to what extent owner? of motor transport vehicles are unfairly by national expenditure, on the roads. The ejiqujry was undertaken mainly as a result of an agitation by railway shareholders against " unfair competition," an agitation which has been going on since the War but has been intensified by the depression. Last year, for the first time in their history, both the London Midland and Scottish and the London and North {Eastern ware some £2,300,000 short of the income necessary to cover their full preference dividends, while the practice of paying dividends out of reserves, fairly general in the last few years, seems to have reached the limit of safety. In "the opinion of two of the four groups, indeed, the limit was reached in 1930. Since the depression began, costs have been cut so heavily that little relief can be expected from this side of the accounts. The general 2£ per oent. cut on wages and salaries was bitterly fought and a further cut might involve an industrial upheaval. The railway shareholders are "well aware that the fall in their dividends is not primarily a result of the 4eprcssion and that the railways, at their present capitalisation and in present traffic conditions, must show a steadily decreasing earning power. The following table of receipts shows a downward trend which, even if checked by a recovery from the depression, Tvill not be reversed:

Receipts of tha Fear Railway Groups. (In £ jnijlions.) Average 1923-25 1937.3926.1929.1930.1931. ££££ £ - £ Passengers . 69.3 63.5 62.1 60.0 67.0 G2.4 Parcels .. 17.2 17.8 3J.4 17.6 17.5 16.8 Mercbftncjiso 50.1 52.1 49.4 49.0 45.6 41.8 Minerals .. J5.4 J6.6 15.3 16.? J4.6 12.3 Livestock .. 2.0 1.9 1.9 1.8 1.8 1.6 Coal .. 36.7 86.6 33.6 36.5 34.6 32.1 Sundry 1.8 1.6 1.7 1.7 I.C 1.5

(Total 192.6 189.9 3 81.4 182.8 J72.6 158.5

While there are many -who believe that a stricter regulation of commercial ■ road transport is necessary in fairness to the railways, few would deny that road transport must still further increase its share of what is now railway business. It is possible, therefore, that the railway companies will be comT polled to carry forward the process of amalgamating and contracting services begun after the War. The summary of the Committee's report given in the cable news seems to suggest that it regards existing road competition as being to some extent inequitable. Findings on this point cannot, however, be given * genera! application. It must be remembered that England has one of the most perfect roac| systems in the world and also that the average freight haulage distance on English railroads is abnormally low, making them peculiarly vulnerable to road competition.