BRITISH RAILWAYS.

Evening Post, Volume LXXVII, Issue 109, 10 May 1909, Page 7

BRITISH RAILWAYS.

AMALGAMATION. A COMMITTEE OF ENQUIRY. By Telegraph.— Press Association.— Copyright. (Received May 10, 8.50 a.m.) LONDON, 9lh May. Mr. Winston Churchill, President of the Board of Trade, is appointing a departmental committee to investigate the question of railway amalgamation, and to report what legislation is advisable. Affairs in regard to the British railways have reached a critical, stage. In 1907, -when trade was abundant, the companies earned a larger revenue than ever before, but, owing to the large increase in working expenses — mainly coal and wages — their operations resulted in a. loss altogether of about £130,000. The need of economy, and proposals by private members of Parliament for the acquisition of the railways by the State, emphasised My. Lloyd-George'-s advice to the companies to set their houses in order. A series of working agreements was arranged by several of the companies, lha Caledonian and North British leading the way. The Glasgow and South-Western afterwards made a friendly arrangement with the Caledonian, the Midland and London, and North-Western concluded an agreement, and" other railways followed suit. Then a Bill was prepared for the amalgamation of the Great Northern, Great Eastern, and Great Central Railways, but this Bill, after reaching its second reading two or three weeks ago, had to be abandoned on account of opposition. The advantages of combination were pointed out by Lord ATlerton, chairman of the Great Northern, in recommending his shareholders to combine with the Great Western. He said : "If you go through the streets of London you will see— say, in Shaftesbury-avenue — the Great Northern Railway has opened a receiving office, and you will set; * minute afterwards that the Great Central has opened a receiving office on the other side of the street. During the past few years, there has been, I will say, hundreds cf thousands of pounds spent in capital expenditure by the two companies which might have been saved if this agreement had been made so many years ago, such as in reaching the collieries and in what is called protecting the traffic by making fre&h branches, all to be worked over the same point for the same traffic. All this necessitates engines and trains where very often one would 'do." On the other hand, the combinations among the companies have created a widespread fear of a railway trust, and given the movement for nationalisation a great incentive. , The Amalgamated Society of Railway Servants in October last carried a resolution in favour of the Nationalisation of Railways by 56 votes to 2 : "This conference is of opinion that the time has arrived when the railways should be acquired by the State. The privileges granted by Parliament to the railway companies have, in many ways, always been. violated ; in addition, the methods adopted in preferential rates are crippling our home industries in favour of foreign imports. The combination of the companies is a further menace to British trade, and a step which may lead to low wages and long hours. In the interests of all concerned, it is essential that the railways, like the post office, should be run for the nation's welfare, and not for dividends and profits." Bills have been introduced to bring about the acquisition of the railways by the State, but failed to receive Government support, though Mr. LloydGeorge admitted there was a good case for enquiry.