23 DECEMBER 1938, Page 18

THE CASE FOR THE RAILWAYS

LETTERS TO THE EDITOR

[Correspondents are requested to keep their letters as brief as is reasonably possible. Signed letters are given a preference over those bearing a pseudonym, and the latter must be accompanied by the name and address of the author, which will be treated as confidential.—Ed. THE SPECTATOR] [To the Editor of THE SPECTATOR] SIR,—Professor Plant begins his . article in your issue of December 9th with a reference to the demand of the Railways for a square deal, but his observations cover a much wider field and in several instances appear to be irrelevant to the present railway proposals.

I should, however, like to comment on some of his statements which are misleading and may create a wrong impression in the minds of your readers.

Professor Plant's statement that the recent decline in railway traffics " is due to the slackening of trade " is only partly true. He does not appear to realise that the financial stability of the railways has for many years past been steadily under- mined by the development of road transport on a basis which is (a) uneconomic from a national standpoint because it burdens the roads with traffic for which the railways are more suitable and (b) unsound to the extent to which the development has been brought about by the existence of the present statutory restrictions governing charges for the conveying of merchandise which fetter the railway companies and prevent them from competing with the road haulier on even terms.

Your contributor states : " In the event of war, to the extent that it appears strategically wise, having regard to vulnerability from the air, to depend upon the railways as well as the road for the extension of vital services, the system will continue to be available." But will the system remain indefinitely available as an efficient agency adequate in every way for the demands that would be made upon it ? The recent crisis was an object lesson on the additional responsibilities that would fall upon the railways, and on the extent to which they would be required to take over tasks normally carried out by other transport agencies. Measured by the experience of the last War, and making every allowance for a change in strategic conditions, the railways would be called upon to carry something like twice the volume of their present traffics. This cannot be done if financial stress forces the companies to continue their present policy of reducing their stocks of locomotives, carriages and wagons. In recent years these stocks have been considerably depleted and in this connexion it should be remembered that the experience of 1914-18 showed that new rolling stock is virtually unobtainable when industry is organised on a war footing.

To impair the efficiency of the railways in time of peace and to assume that they would nevertheless be able adequately to discharge their increased responsibilities in time of national emergency is to display a false and dangerous optimism.

If, as your contributor asserts, road transport has proved itself cheaper for a vast range of traffic, might it not have been well to say why ? The reason is that the system of classification which governs railway rates exposes high class merchandise to competition while requiring the railways to convey low-class merchandise at rates below, and in some cases far below, a competitive level. This is one of the restrictions which do not apply to other forms of transport and from which the railways are asking to be freed.

Professor Plant mentions the power to make " Agreed Charges " granted to the railways in 1933 " subject," as he puts it, " only to the approval of the Railway Rates Tribunal." He says nothing of the right of traders to object, or to apply for a similar charge themselves ; he says nothing of the right of objecting given to dock and harbour authorities and to coastwise shipping ; he says nothing of the time, trouble, expense and publicity involved. He gives no reason why the railways should be subject to these sanctions, whilst other forms of transport are entirely at large to make agreements with their customers on a commercial basis. This is another instance in which the railways are asking to be placed on an equal footing with their competitors.

I must not trespass unduly on your space, but I should like to refer to the misleading impression which he gives of the purpose and the effect of the Road Traffic Act, 193o (which regulates passenger road transport), and the Road and Rail Traffic Act, 1933 (which regulates goods road transport). The purpose of these measures was, according to your con- tributor, to afford protection to the railways ;- their effect, according to him, has been to deprive the public of facilities. I suggest that, if railways had never existed, a system of contr91 by licensing would have been necessary in the public interest for public road transport, both passenger and goods ; that the licensing system of passenger road transport has proved to be an essential factor in the organisation of an industry which, taken together with the railways, affords the finest passenger facilities of any country in the world ; and that a licensing system is equally essential in the sphere of goods transport if a similar state of organisation is to be attained.

This opinion is confirmed by others who also have practical experience in the business of transport, and I would like to direct Professor Plant's attention to the following statement published on the loth of this month by the National Road Transport Employers' Federation :

" It is our view that it is vital not only to the public carrying industry, but also to the well-being of the community as a whole, that the public roads should not be thrown open to everyone who can pay the first instalment on a motor-lorry. This course could only result in a reversion to the chaotic conditions from which the industry is now emerging, and although improvements in the present licensing system may be possible and, indeed, are most desirable, no one with a knowledge of the evils of unregulated competition would advocate the abandonment of the licensing system."

—Yours faithfully, MILNE.

General Manager's Office, Great Western Railway, Paddington Station, Lonflon, W.2.