BRITISH RAILWAYS.

Otago Daily Times, Issue 20643, 15 February 1929, Page 12

BRITISH RAILWAYS.

FINANCIAL TROUBLES. In an article on “ The Future of British Bail ways,” in the November number of the Nineteenth Century, Sir Felix Pole, general manager of the Great Western Railway, traces the rise of the British railway systems during the last century, and their gradual monopoly of goods and passenger transport. He points out that when the railway companies were being . formed they had to pay more for their charters, and experienced more drastic parliamentary regulations than in any other country in the world. At the same time they received no municipal or State aid in providing stations. They served the country well, and without extortion, as is proved by the fact that in the 30 years between 1800 and 1890 they returned no more than 4.22 percent. on the capital invested. At the outbreak of war in 1914 the Government took possession of all the British railways, and this action was followed by revolutionary changes. In 1919, although wages had risen to an unprecedented height, and there had been an alarming increase in many other expenses, no steps were taken by the Government to raise rates to cover the increased cost of running. Thus in 1921, when decontrol took place, the wages bill had increased from £47,000,000 in 1913 to about £l< 3,000,000 in 1921, an increase of 208 per cent. This increase is attributed to the introduction of the eighthour day in 1919, and the concession hy the Government in 1920 of large and general improvements, in the standard of railway wages. A promise was made by the Government that the general wage level would not in future fall below 100 per cent, above the average pre-war standard.

To meet the enormous commitments on the debit side of the account, heavy increases were made in the rates, and levied on a reluctant trading community, which was beginning to feel the reaction after a period of warstimplated prosperity. This increase i . tl,ad ers 'more rapidly and definitely in the direction of motor tiansport than would otherwise have been the case, and the movement was accentuated by the large number of Government motor lorries sold from war service In 1921, when the railways meited to the companies, a compulsory grouping of the 120 pre-war companies ", 0 four great companies took place. Ifie rates also came under a rates tribunal, which limited the earniu<>-s of t . .Sroat companies. It is not surprising therefore that as Sir Felix Pole writes, ‘ Untrammelled by irksome and costly legal restraints, free to pick and choose traffic routes, and subsidised by leason of the public highways beiim provided maintained, improved, and signalled largely at the ratepayers’ expense, and with streets or large public areas allocated without charge for use ns stations, road motor haffle has increased considerably.” F rom the point of view of the railways they are suhditioi 0 SOm -n cxce « ii,1 S l y irritating conditions. The railways are the only -carrying agency subject to dnect taxation levied on fares on firstclass Until a few months . O o they weie without power to operate road transport, hut they are, on ti e Si ham - t,le largest ' ratepayers Where loads were raised to pass over the Tmid 110 t ° nly . the bl ‘ id gc S , but also bv approaches were maintained by the railways. Road powers have low icon conceded to companies, and they will be used to co-ordinate road and rail services.

P ° ,e is .°. f tllc °P»»on that ni spite of competition and handicaps of legation the British S 1 031 oooonn Lnst yca, ‘ they carried 1.b01,000,000 passengers, and 325,000,000 lona of freight, with a total train mileage of 413.000 000. At the same time a great dea depends on the cncoura-c----ment gnen by the Government. If form of transport lias to boar the entire cost of _ its permanent - works while another is re leved of this, either wholly or in part, . the latter has an advantage that is bound to tell in the long run At the present time a Royal Commission a shtmg with the object of ascertaining the best means of regulation and control, and how far it i s desirable m the public interest to promote the co-ordinated working and development of road and rail traffic. Sir Felix Pole looks to the reduction of running costs by improved means of traction, such as the introduction of electricity and oil fuel for locomotives, with other economies, to enable the railway companics to compete with road traffic successfully, which he believes can he done.