(c) crown copyright
Catalogue Reference:CAB/129/83
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(THIS D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ' S G O V E R N M E N T )
CONFIDENTIAL
COPY NO.
C P . ( 5 6 ) 211
^
2
21st S e p t e m b e r , 1956
CABINET
B R I T I S H T R A N S P O R T COMMISSION
N o t e b y t h e M i n i s t e r of T r a n s p o r t a n d C i v i l A v i a t i o n
I c i r c u l a t e for t h e i n f o r m a t i o n of m y c o l l e a g u e s a c o p y of t h e
m e m o r a n d u m " R e v i e w of F i n a n c i a l S i t u a t i o n " p r e p a r e d b y t h e B r i t i s h
Transport Commission.
H.W.
M i n i s t r y of T r a n s p o r t and C i v i l A v i a t i o n , W. 1. 20th S e p t e m b e r , 1956.
BRITISH TRANSPORT COMMISSION
REVIEW OF FINANCIAL SITUATION
222,
Marylebone Road,
SEPTEMBER, 1956.
N.W.I.
BRITISH TRANSPORT COMMISSION
REVIEW OF FINANCIAL SITUATION
CHAPTER I
j INTRODUCTION
On 1 9 t h M a r c h , 1 9 5 6 , t h e M i n i s t e r of T r a n s p o r t
a n d C i v i l A v i a t i o n m a d e a s t a t e m e n t i n t h e H o u s e o f Commons
about' the B r i t i s h Transport Commissions charges.
The
C o m m i s s i o n h a d s h o r t l y b e f o r e t h i s d a t e made an a p p l i c a t i o n
t o t h e M i n i s t e r f o r an i n c r e a s e i n t h e i r f r e i g h t
charges,
a n d ' t o t h e T r a n s p o r t T r i b u n a l f o r an i n c r e a s e i n c e r t a i n
p a s s e n g e r c h a r g e s and had a l s o a n n o u n c e d a p r o p o s e d i n c r e a s e
o f f u r t h e r p a s s e n g e r c h a r g e s w h i c h w e r e w i t h i n t h e i r own
authority.
B r i e f l y , t h e M i n i s t e r informed the House t h a t
w h e r e a s i t was Government p o l i c y t h a t n a t i o n a l i s e d i n d u s t r i e s ,
in f i x i n g t h e i r charges, should seek f u l l y to r e f l e c t
their
c o s t s , t h e s p e c i a l p o s i t i o n and f u r t h e r o u t l o o k r e l a t i n g t o
t h e C o m m i s s i o n ^ a f f a i r s j u s t i f i e d t h e Government i n a s k i n g
the Commission, i n the n a t i o n a l i n t e r e s t , to follow a
c o u r s e w h i c h w o u l d i n v o l v e an e x c e p t i o n t o t h i s g e n e r a l
policy.
The i n c r e a s e s f o r w h i c h t h e Commission h a d a p p l i e d
or which they i n t e n d e d to b r i n g i n t o f o r c e w e r e , t h e r e f o r e ,
r e d u c e d or p o s t p o n e d f o r a p e r i o d of s i x m o n t h s , d u r i n g
w h i c h a f r e s h a s s e s s m e n t of t h e C o m m i s s i o n s p o s i t i o n and
p r o s p e c t s would be u n d e r t a k e n to be f o l l o w e d by s u c h s p e c i a l
a c t i o n a s s e e m e d a p p r o p r i a t e a t t h e end o f t h a t p e r i o d .
It
was on t h i s c l e a r u n d e r s t a n d i n g t h a t t h e C o m m i s s i o n h a d
agreed to the course proposed.
A c c o r d i n g l y t h e C o m m i s s i o n h a v e now r e v i e w e d
o n c e a g a i n t h e f i n a n c i a l p r o s p e c t s of t h e i r u n d e r t a k i n g a n d
i n p a r t i c u l a r t h e e c o n o m i c s of t h e M o d e r n i s a t i o n P l a n f o r
the railways.
T h i s document s e t s out t h e r e s u l t s of t h e i r
review.
T h r o u g h o u t t h e r e v i e w and i n e s t i m a t i n g t h e
f u t u r e m a r g i n b e t w e e n r e v e n u e and e x p e n d i t u r e t h e Commission
h a v e , o f n e c e s s i t y , f r a m e d t h e i r f o r e c a s t s on t h e b a s i s o f
t h e p r e s e n t v a l u e of m o n e y and a c o n t i n u a n c e of c u r r e n t
economic c o n d i t i o n s .
They have a l s o had t o b a s e themselves
on c e r t a i n a s s u m p t i o n s a b o u t o t h e r m a t t e r s o u t s i d e t h e i r
c o n t r o l , the major assumptions being as follows : ­
( a ) T h a t t h e C o m m i s s i o n w i l l n o t b e p r e v e n t e d f r o m
a d j u s t i n g t h e i r c h a r g e s w i t h o u t d e l a y a t any
time to cover increases in c o s t s , should they
c o n s i d e r i t e x p e d i e n t t o do s o .
( b ) T h a t t h e C o m m i s s i o n w i l l b e f r e e t o o p e r a t e on
f l e x i b l e s y s t e m s of c h a r g i n g a n d t o d e t e r m i n e
on a r e a s o n a b l e b a s i s t h e s c a l e a n d s c o p e o f
the s e r v i c e s to be p r o v i d e d .
( c ) T h a t t h e n e c e s s a r y r e s o u r c e s of a l l k i n d s w i l l
be a v a i l a b l e to e n a b l e t h e Commission, in
c o - o p e r a t i o n w i t h i n d u s t r y , t o c a r r y out
t h e i r P l a n f o r t h e M o d e r n i s a t i o n and
R e - e q u i p m e n t of B r i t i s h R a i l w a y s a c c o r d i n g
to programme.
( d ) T h a t t h e G o v e r n m e n t p o l i c y r e g a r d i n g t h e
framework w i t h i n which the Commission
o p e r a t e w i l l remain as a t p r e s e n t ,
( i n making t h i s assumption f o r t h e .
p u r p o s e of t h i s r e v i e w t h e Commission
r e s e r v e t h e i r r i g h t t o make s e p a r a t e
r e p r e s e n t a t i o n s on s u c h m a t t e r s ) .
( e ) T h a t s p e c i a l a c t i o n w i l l toe t a k e n a s s o o n
as p o s s i b l e which w i l l permit the
Commission t o p r e s e r v e an a t m o s p h e r e
of p r o p e r f i n a n c i a l d i s c i p l i n e t h r o u g h ­
out t h e i r a f f a i r s ;
it follows that
f i n a n c i a l t a r g e t s m u s t toe s e t w h i c h a r e
r e a s o n a b l y p o s s i b l e of a c h i e v e m e n t i n
t h e c i r c u m s t a n c e s , tout w h i c h c o n t a i n n o
e l e m e n t of s u b s i d y .
CHAPTER I I
5
THE FINANCIAL PROBLEM 4 .
The Commission have e a r n e d a working s u r p l u s i n
e v e r y y e a r s i n c e t h e y "began o p e r a t i o n s .
On t h e o t h e r
h a n d , i n s e v e r a l of t h e s e y e a r s t h e s u r p l u s e a r n e d was n o t
s u f f i c i e n t t o m e e t t h e f i n a n c i a l c h a r g e s on t h e f i x e d ­
i n t e r e s t "borrowings, which c o n s t i t u t e v i r t u a l l y the
C o m m i s s i o n ^ s o l e s o u r c e of e x t e r n a l c a p i t a l .
The
r i g i d i t y t h u s i m p o s e d on t h e C o m m i s s i o n ' s f i n a n c i a l
p o l i c y i s r e l a x e d t o some e x t e n t , h o w e v e r , b y a p r o v i s i o n
I n t h e 191+7 A c t w h i c h a l l o w s t h e C o m m i s s i o n t o " t a k e o n e
year with another" i n "balancing t h e i r a c c o u n t s .
I t was
a l s o i n t e n d e d t h a t t h e C o m m i s s i o n s h o u l d b u i l d up g e n e r a l
r e s e r v e s which would b e used t o smooth o u t t h o s e y e a r l y
f l u c t u a t i o n s of p r o f i t a n d l o s s w h i c h a r e i n h e r e n t i n a
e a p i t a l s t r u c t u r e b a s e d p u r e l y on f i x e d i n t e r e s t b o r r o w ­
i n gs , b u t t h e Commission s t a r t e d w i t h o u t such r e s e r v e s
and n e v e r o b t a i n e d i n c r e a s e s i n f a r e s and c h a r g e s l a r g e
enough to p e r m i t t h e i r c r e a t i o n .
5 .
The f i n a n c e s of t h e r a i l w a y s h a v e , m o r e o v e r ,
been c o n s i d e r a b l y a f f e c t e d by the c o n t r o l over c a p i t a l
i n v e s t m e n t , t h e c o n s e q u e n c e s of w h i c h a r e l i k e l y t o
d e p r e s s t h e i r c o m p e t i t i v e power f o r some y e a r s t o come.
T h e r e s t r i c t i o n s p l a c e d on t h e r e p l a c e m e n t o f o u t - o f - d a t e
r o l l i n g s t o c k , b u i l d i n g s and equipment h a v e b e e n p a r t i c u l a r l y
severe.
They h a v e l e d t o e x c e s s i v e m a i n t e n a n c e c o s t s and
t h e d e l a y s i n overcoming w a r - t i m e a r r e a r s have meant t h a t
the special reserves inherited to finance these arrears at
1947 p r i c e s p r o v e d t o b e q u i t e i n a d e q u a t e a t t h e p r i c e s
r u l i n g when t h e w o r k was p u t i n h a n d .
Even more i m p o r t a n t
h a s b e e n t h e e f f e c t on e f f i c i e n c y , i n v o l v i n g h i g h e r r u n n i n g
c o s t s and i n some i n s t a n c e s l o s s of t r a f f i c t o c o m p e t i t o r s
w h o s e e q u i p m e n t was m o r e u p - t o - d a t e .
6. Even so,Working S u r p l u s e s
have been earned
as
follows
£m.
1948 1949 1950 1951 1952 1953 1954 1955 45.2
31 . 3
40.0
49.1
53.8
59.4
45.5
29.5
Against these surpluses, the C e n t r a l Charges, mainly the
f i n a n c i a l c h a r g e s a l r e a d y m e n t i o n e d f o r r e m u n e r a t i o n of
c a p i t a l , h a v e a v e r a g e d a b o u t £50m. a y e a r , w i t h a
t e n d e n c y t o r i s e i n l a t e r y e a r s p r i n c i p a l l y b e c a u s e of
the need to r e p l a c e a s s e t s booked at p r e - w a r v a l u e s by
a s s e t s p u r c h a s e d a t t h e new l e v e l s of c o s t .
However,
l e a v i n g o u t a b a d p e r i o d i n t h e l a t e m o n t h s of 1949 a n d
t h e e a r l y m o n t h s o f 1 9 5 0 , when t h e r e w e r e s p e c i a l d e l a y s
i n d e a l i n g w i t h c h a r g i n g p o l i c y a f t e r t h e d e v a l u a t i o n of
t h e pound s t e r l i n g , t h e Commission were more or l e s s i n
b a l a n c e o v e r t h e f i r s t s e v e n y e a r s of t h e i r e x i s t e n c e ,
t h a t i s , t h e y were r e m u n e r a t i n g t h e i r c a p i t a l p r a c t i c a l l y
in f u l l ;
i t w a s o n l y t h e e x c e e d i n g l y p o o r r e s u l t s i n 1955
w h i c h p r o m p t e d t h e v i e w t h a t one c o u l d n o l o n g e r e x p e c t
t h e l e a n y e a r s t o "be s a f e l y r e c o u p e d o u t of t h e b e t t e r
o n e s i n t h e f u t u r e , w i t h t h e l e v e l of. t h e . a c c u m u l a t e d
d e f i c i t kept to n e g l i g i b l e proportions in consequence.
T h e f i n a n c i a l s h o r t f a l l o f t h e y e a r 1955 was
a t t r i b u t a b l e t o s p e c i a l c a u s e s r a t h e r t h a n t o any
i n h e r e n t w e a k n e s s i n t h e economics of t h e C o m m i s s i o n ' s
affairs.
The r a i l w a y s t r i k e l o s t t h e Commission^ a b o u t
£12m;
t h e r e was a l a p s e o f s e v e r a l m o n t h s i n p u t t i n g u p
c h a r g e s w h i c h c o s t £10m:
and t h e r e were sudden i n c r e a s e s
i n p r i c e s ( c h i e f l y c o a l ) i m m e d i a t e l y a f t e r t h e p r o c e s s of
r e - a d j u s t i n g t h e c h a r g e s was c o m p l e t e d , w h i c h c o s t t h e
C o m m i s s i o n a b o u t £5m. i n t h e c a l e n d a r y e a r .
If these
s p e c i a l i t e m s , t o t a l l i n g £27m., a r e added t o t h e a c t u a l
w o r k i n g s u r p l u s of £29i-m. f o r t h e y e a r , i t w i l l b e s e e n
t h a t e v e n t h e y e a r 1955? t h o u g h i t w a s a y e a r o f f i n a n c i a l
u n b a l a n c e , was n o t a y e a r o f f u n d a m e n t a l e c o n o m i c w e a k n e s s .
N e v e r t h e l e s s t h e r e were growing i n d i c a t i o n s , as t h e y e a r
c l o s e d , t h a t the C o m m i s s i o n ^ f i n a n c e s were b e i n g v e r y
seriously strained under existing circumstances.
E a r l y i n 1956 t h e p o s i t i o n d e t e r i o r a t e d f u r t h e r ,
and p o s s i b l y i t c h a n g e d i n n a t u r e .
Certainly the back­
g r o u n d . c h a n g e d , and w i t h t h e g e n e r a l d r i v e t h r o u g h o u t t h e
c o u n t r y t o h a l t f u r t h e r i n c r e a s e s i n t h e p r i c e of b a s i c
goods and s e r v i c e s , i t became d o u b t f u l w h e t h e r t h e l a s t
g e n e r a l i n c r e a s e i n t r a n s p o r t wages c o u l d or s h o u l d b e
recouped forthwith i n higher t r a n s p o r t charges.
On
railways in p a r t i c u l a r the general merchandise t r a f f i c
continued t o d e c l i n e , p a r t l y because they were not
e q u i p p e d t o i m p r o v e t h e i r s t a n d a r d s of s e r v i c e i n s t e p
with t h e i r ccompetitors.
I n t h e event, i t was d e c i d e d , as
a l r e a d y m e n t i o n e d , t h a t i t was e x p e d i e n t t o l i m i t t h e
amount and n a t u r e of t h e p r o p o s e d i n c r e a s e s i n t r a n s p o r t
c h a r g e s f o r s i x m o n t h s , and t o u s e t h i s p e r i o d f o r m a k i n g
a r e v i e w of t h e whole p o s i t i o n .
Allowing f o r the increases
i n c h a r g e s w h i c h vi/ere a u t h o r i s e d , t h e C o m m i s s i o n w e r e l e f t
w i t h a g a p i n t h e i r b u d g e t o f t h e o r d e r o f £35m. a y e a r .
Since t h a t date t h e r e have been c e r t a i n f u r t h e r i n c r e a s e s
i n c o s t s a n d o t h e r c h a n g e s i n t h e p o s i t i o n w h i c h mean t h a t
t h e p r o b a b l e r a t e o f d e f i c i t i s a b o u t £h5m. a y e a r .
T h e a c c u m u l a t e d d e f i c i t a t t h e e n d of 1955 w a s
a l r e a d y £70m.
T h i s was due m a i n l y t o t i m e l a g s i n p u t t i n g
u p f a r e s a n d c h a r g e s , l a r g e l y on t r a f f i c s s u c h a s t h e
movement of London p a s s e n g e r s , r a t h e r t h a n t o a n y i n h e r e n t
weakness i n the competitive f i e l d s .
By t h e end of t h i s
y e a r , h o w e v e r , t h e a c c u m u l a t e d d e f i c i t w i l l b e of t h e
o r d e r of £120m., a s s u m i n g no f u r t h e r i n c r e a s e s i n wages or
o t h e r c o s t s , and i t i s i m p o r t a n t t o r e a l i s e w h a t t h e
p o s i t i o n w i l l b e i n a few y e a r s ' time i f a p p r o p r i a t e
measures a r e not taken.
I t i s not merely t h a t there w i l l
b e a s t e a d y a d d i t i o n of f u r t h e r a n d g r o w i n g d e f i c i t s ,
m a i n l y from t h e o p e r a t i o n of B r i t i s h R a i l w a y s , b u t a l s o
from t h e o p e r a t i o n of London T r a n s p o r t and I n l a n d Waterways.
To a l l o w t h e b u d g e t t o r e m a i n u n b a l a n c e d w i l l h a v e
consequences almost more s e r i o u s i n undermining f i n a n c i a l
d i s c i p l i n e w i t h i n t h e o r g a n i s a t i o n , and t o r e l y i n e f f e c t
on i n d e f i n i t e s u b s i d y w o u l d b e d i s a s t r o u s t o t h e s e l f ­
r e s p e c t of t h e u n d e r t a k i n g , t o t h e i r u r g e tov/ards
e f f i c i e n c y , and t o t h e b a s i s of t h e i r r e l a t i o n s w i t h
I 7
other p a r t i e s .
The t o t a l d e f i c i t c a r r i e d f o r w a r d w o u l d
r e a c h u n m a n a g e a b l e p r o p o r t i o n s , and u l t i m a t e l y a d e f a u l t
upon t h e C o m m i s s i o n ^ o b l i g a t i o n s would b e i n e s c a p a b l e .
The e f f e c t of s u o h a c o u r s e of e v e n t s on t h e s e r v i c e s
p r o v i d e d t o t h e t r a d e r and t h e t r a v e l l i n g p u b l i c n e e d
n o t b e u n d e r l i n e d .
1 0 .
. T h i s i s t h e p o t e n t i a l m a g n i t u d e of t h e p r o b l e m
i n t h e a b s e n c e of r e m e d i a l m e a s u r e s .
I t has not been
c r e a t e d by a mere d e c i s i o n to r e s t r i c t i n c r e a s e s in
c h a r g e s f o r a b r i e f p e r i o d , nor can i t be d i s p e l l e d by
t h e s i m p l e e x p e d i e n t of d i s c a r d i n g a l l r e s t r a i n t i n
charging policy.
T h e C o m m i s s i o n h a v e t a k e n , and a r e
t a k i n g , t h e m e a s u r e s o u t l i n e d i n C h a p t e r s IV and VI b e l o w ,
and on t h e a s s u m p t i o n s p r e v i o u s l y m e n t i o n e d t h e C o m m i s s i o n
are confident t h a t t h e s e measures w i l l u l t i m a t e l y r e s t o r e
t h e f i n a n c i a l p o s i t i o n p r o v i d e d t h a t means can be f o u n d
t o e n a b l e t h e Commission t o keep t h e s i t u a t i o n under
p r o p e r c o n t r o l d u r i n g t h e n e x t few y e a r s of r e c o n s t r u c t i o n
and d e v e l o p m e n t .
T h e q u e s t i o n of d e a l i n g w i t h t h i s
p e r i o d i s examined i n C h a p t e r V I I , and t h e Commission
s u b m i t t h a t i t s h o u l d b e t a c k l e d w i t h d e c i s i o n and
urgency.
T h e y p r e s e n t i n t h i s p a p e r e v i d e n c e t o show,
t h a t i t i s n o t a m a t t e r of r e s c u i n g a m o r i b u n d c o n c e r n
f r o m r a i n , b u t of e n a b l i n g o n e w i t h a s o u n d , e v e n b r i g h t ,
future to pass through this d i f f i c u l t period without
b e i n g thrown i n t o h o p e l e s s d i s a r r a y .
CHAPTER I I I
:
THE ROLE OF THE RAILWAYS 1 1 .
T h e r a i l w a y s r e p r e s e n t t h e p r e p o n d e r a n t p a r t of
t h e C o m m i s s i o n ' s u n d e r t a k i n g and t h e p r o b l e m o f f i n d i n g a
b a s i s f o r t h e p r o f i t a b l e o p e r a t i o n of B r i t i s h R a i l w a y s i s
v i t a l t o the Commission.
T h e same p r o b l e m f a c e s t r a n s ­
p o r t a d m i n i s t r a t i o n s abroad where i t has been g e n e r a l l y
a c c e p t e d t h a t t h e r a i l w a y s h a v e an e s s e n t i a l p a r t t o p l a y .
I t i s s i g n i f i c a n t t h a t most r f t h e W e s t e r n E u r o p e a n
n a t i o n s gave p r i o r i t y t o r a i l w a y r e c o n s t r u c t i o n i n t h e i r
p o s t war p l a n s .
1 2 .
The f a c t t h a t s e r i o u s f i n a n c i a l p r o b l e m s b e s e t
t h e r a i l w a y s i n many c o u n t r i e s t o d a y m u s t b e l a r g e l y
a s c r i b e d t o t h e d i f f i c u l t i e s which t h e s e r a i l w a y s have
encountered in t h e i r endeavours to adapt themselves to
t h e c h a n g i n g p a t t e r n of i n d u s t r i a l economy and s o c i e t y .
Some o f t h e s e d i f f i c u l t i e s c a n b e a s c r i b e d t o s t a t u t o r y
requirements;
some t o p u b l i c u n r e a d i n e s s t o a p p r e c i a t e
t h e f u l l c o n s e q u e n c e s o f t h e e m e r g e n c e of a l t e r n a t i v e
forms of t r a n s p o r t ;
some t o a t t e m p t s t o p r e s e r v e ..
t r a f f i c s which a r e uneconomic or b e t t e r s u i t e d to other
f o r m s of t r a n s p o r t ;
a n d some t o r e s t r i c t i o n s on c a p i t a l
development or to p u b l i c r e l u c t a n c e to i n v e s t .
13*
T h e n e e d f o r r a i l w a y s , t h e i r r o l e i n f u t u r e and
t h e t a s k s a s s i g n e d t o t h e r a i l w a y s y s t e m a s a w h o l e , and
i n i t s i n d i v i d u a l p a r t s , must b e c o n s t a n t l y reviewed i n
t h e l i g h t of l o c a l c i r c u m s t a n c e s and o f c h a n g i n g c o n d i t i o n s ;
b u t t h e r e a r e t w o m a i n c r i t e r i a " i n d i s p e n s a b i l i t y " and
"economy".
A s e r v i c e may b e . c l a s s e d a s i n d i s p e n s a b l e
b e c a u s e t h e t r a f f i c c a n b e moved i n no o t h e r way;
or i t
may b e n e e d e d a s a n e s s e n t i a l r e l i e f t o r o a d s ;
or there
may b e n o o t h e r m e a n s o f s u f f i c i e n t l y f a s t t r a n s i t o v e r
long distances.
By c o n t r a s t , s e r v i c e s may b e d e s i r a b l e
b e c a u s e , of a l l t h e a l t e r n a t i v e s , t h e y a r e t h e most
economic e i t h e r i n terms of c o s t t o t h e customer or i n
u s e of n a t i o n a l r e s o u r c e s .
1U.
A v e r y l a r g e p a r t of t h e r a i l w a y t r a c k m i l e a g e
in the g r e a t conurbations l i k e London, Glasgow, South
L a n c a s h i r e and B i r m i n g h a m i s p r i m a r i l y u s e d f o r t h e u r b a n
and s u b u r b a n p a s s e n g e r s e r v i c e s .
These services carry
a b o u t 1-g- m i l l i o n p a s s e n g e r s d a i l y , m a i n l y t o a n d from
t h e i r w o r k , i n b r i e f and e x c e e d i n g l y h e a v y s u r g e s .
They
a c c o u n t f c r a b o u t one h a l f of t h e a n n u a l t o t a l of 1 ,000
m i l l i o n p a s s e n g e r s on B r i t i s h R a i l w a y s .
The r o a d s c o u l d
n o t p h y s i c a l l y cope w i t h such s u r g e s .
The r a i l w a y s
alone can give t h e c o n c e n t r a t e d l e a d i n g , t h e s t r i c t
c o n t r o l and t h e t i m i n g w h i c h make t h e s e movements
possible.
A r a i l w a y can d e a l w i t h a t h r o u g h p u t of a t
l e a s t 2 0 , 0 0 0 p e r s o n s a n h c u r f o r e a c h t r a c k and a l a r g e
c i t y t e r m i n u s m a y h a n d l e o v e r 1 0 0 , 0 0 0 p e r s o n s cn a b u s y
morning.
Moreover, t h e p u b l i c t r a v e l at higher speeds
over r a t h e r l o n g e r d i s t a n c e s , and i n s a f e r c i r c u m s t a n c e s ,
t h a n o b t a i n sn t h e r o a d s .
C l e a r l y t h e r e i s no a l t e r n a ­
t i v e to t h e s e r a i l w a y s e r v i c e s , a l t h o u g h they tend to be
e x p e n s i v e t o p r o v i d e and r e l a t i v e l y u n r e m u n e r a t i v e .
1 5 .
On t h e o t h e r h a n d , t h e l o n g e r d i s t a n c e p a s s e n g e r
t r a f f i c s a c c o u n t f o r a l e s s e r number of p a s s e n g e r s , b u t
the p a s s e n g e r m i l e s and t h e a v e r a g e f a r e p e r p a s s e n g e r
c a r r i e d a r e m u c h g r e a t e r and t h e s e r v i c e s a r e p r o f i t a b l e .
T h e r a i l w a y c o s t p e r s e a t m i l e on s u c h s e r v i c e s i s m u c h
lower than t h e comparable road cost a n d , even a l l o w i n g
for the g r e a t e r carrying capacity which the railways
have t o m a i n t a i n t o cope w i t h s u r g e s and w i t h s e a s o n a l
f l u c t u a t i o n s i n t r a f f i c , t h e t r a i n can s t i l l o p e r a t e a t
f a r e s w h i c h a t t r a c t t h e p u b l i c and l e a v e a p r o f i t .
M o r e o v e r , t h e s e l o n g d i s t a n c e s e r v i c e s o f f e r s p e e d and
comfort as w e l l as such convenience as t h e n i g h t s l e e p e r
services.
They a l s o p r o v i d e f a c i l i t i e s f o r the
c a r r i a g e o f m a i l s , n e w s p a p e r s , p e r i s h a b l e s and s p e c i a l
p a r c e l t r a f f i c s , which a l o n e b r i n g i n n e a r l y £50 m i l l i o n
a year.
1 6 .
T h e r e i s no p r a c t i c a b l e road a l t e r n a t i v e t o
t h e s e l o n g d i s t a n c e t r a i n s e r v i c e s , and a s i g n o f t h e
f u t u r e m a y b e s e e n i n t h e g r o w i n g p o p u l a r i t y of t h e
" c a r s l e e p e r " s e r v i c e s over the trunk r o u t e s , by which
t h e p a s s e n g e r and h i s c a r a r e t r a n s p o r t e d t o g e t h e r .
17*
I n b e t w e e n t h e u r b a n and s u b u r b a n s e r v i c e s and
t h e l o n g d i s t a n c e t r a f f i c s , t h e r e a r e t h e r u r a l and
"feeder" passenger services.
H e r e t h e r o l e of t h e
r a i l w a y i s l e s s c e r t a i n and i t i s h e r e t h a t t h e g r e a t e s t
changes a r e to be e x p e c t e d .
The b u s i s o f t e n a c h e a p e r
and more e x p e d i t i o u s m e t h o d of h a n d l i n g t h e s e t r a f f i c s ,
and t h e p r i v a t e c a r i s a s t i l l m o r e c o n v e n i e n t m e a n s .
Many o f t h e s e r a i l s e r v i c e s h a v e b e e n r u n n i n g a t a l o s s
f o r a l o n g t i m e and p r e s e n t a p r o b l e m w h i c h i s d i s c u s s e d
i n a l a t e r s e c t i o n of t h i s r e v i e w .
Any p l a n f o r
r e f a s h i o n i n g t h e r a i l w a y system t o s u i t modern t r a n s p o r t
c o n d i t i o n s m u s t f i r s t e x p l o r e a l t e r n a t i v e m e t h o d s of
operation.
T h e r e a f t e r , those s e r v i c e s which cannot
p o s s i b l y b e made e c o n o m i c b y m o d e r n r a i l m e t h o d s and
which can b e b e t t e r c a t e r e d f o r b y road t r a n s p o r t must
be e l i m i n a t e d .
1 8 .
For freight t r a f f i c , a railway is a highly
e c o n o m i c m e a n s o f t r a n s p o r t when t h e f l o w o f
traffic
i s h e a v y enough and s t e a d y enough t o p e r m i t of i t s
b e i n g h a n d l e d i n r e g u l a r t r a i n s of v e h i c l e s w i t h o n l y
one m o t i v e u n i t and c r e w , r a t h e r t h a n i n i n d i v i d u a l
v e h i c l e s e a c h w i t h i t s own p o w e r a n d c r e w , p r o v i d e d
a l w a y s t h a t no c o s t l y t e r m i n a l h a n d l i n g s o r t r a n s h i p ­
m e n t s a r e i n v o l v e d i n g e t t i n g t h e t r a f f i c from d o o r t o
door.
19*
Regular b u l k mineral t r a f f i c s such as c o a l ,
coke and i r o n o r e a r e u s u a l l y c a r r i e d f a r more c h e a p l y
and c o n v e n i e n t l y , even o v e r s h o r t d i s t a n c e s , by r a i l
than by road.
N e a r l y 1,000 t o n s o f b u l k f r e i g h t c a n
b e moved b y a t r a i n c r e w of n o m o r e t h a n t h r e e m e n .
For such t r a f f i c s , which a r e s t i l l i n c r e a s i n g , railways
a r e t h e e c o n o m i c form of t r a n s p o r t , a n d , t h e i n t r o d u c t i o n
of l a r g e w a g o n s w i t h c o n t i n u o u s b r a k e s w i l l m a k e t h e s e
s e r v i c e s s t i l l more "economic".
The r a i l w a y s a r e a l s o
" i n d i s p e n s a b l e " f o r t h e s e t r a f f i c s , m a n y of w h i c h a r e
b a s i c t o t h e economy o f t h e c o u n t r y , f o r i t i s p r o b a b l e
t h a t f o r v a r i o u s r e a s o n s , i n c l u d i n g t h e t y p e of t e r m i n a l
f a c i l i t y r e q u i r e d , m a n y of them w o u l d f i n d i t h a r d t o
use the road.
2 0 .
E v e r y d a y , i n t o t a l , B r i t i s h R a i l w a y s h a u l some
60 m i l l i o n t o n - m i l e s of f r e i g h t f o r t h e i r c u s t o m e r s ,
and t h e i r f l e x i b i l i t y e n a b l e s t h e m t o d e a l w i t h s u c h
g r e a t s u r g e s as t h e c o a l mined i n " b u l l w e e k s " and t h e
b i g h a r v e s t movements.
I t would'be manifestly
impossible to t r a n s f e r these t r a f f i c s to road, e s p e c i a l l y
when b i g s u r g e s a r e i n v o l v e d , w i t h o u t b r i n g i n g movement
on t h e r o a d s , a t l e a s t i n t h e b i g i n d u s t r i a l a r e a s , t o a
standstill.
I n t h e p o r t s , a l s o , b o t h i m p o r t and e x p o r t
t r a f f i c must i n c r e a s i n g l y be h a n d l e d by r a i l i f c o n ­
g e s t i o n i s t o be r e d u c e d , as the r e c e n t r e p o r t of t h e
P o r t s E f f i c i e n c y Committee has emphasised.
2 1 .
While t h e r e a r e , of c o u r s e , t r a f f i c s , especially
m e r c h a n d i s e , which a r e w e l l s u i t e d to road t r a n s p o r t
f o r economic r e a s o n s , t h e r a i l w a y s s t i l l h a v e an
e s s e n t i a l function in providing the customer with a
f a s t , r e l i a b l e and i n d i v i d u a l s e r v i c e f o r g e n e r a l
merchandise t r a f f i c .
The f u l l p o t e n t i a l i t i e s o f t h e
r a i l w a y s y s t e m f o r c h e a p and s a f e movement of m a n u f a c t u r e d
g o o d s i n t h e m o d e r n a g e l i e s i n t h e s o l u t i o n of t h e
p r o b l e m of t r a n s h i p m e n t b e t w e e n r o a d a n d r a i l t h r o u g h t h e
u s e of c o n t a i n e r s and s p e c i a l e q u i p m e n t o r even v e h i c l e s
i n t e r c h a n g e a b l e b e t w e e n r o a d and r a i l , and I n t h e d e v e l o p ­
ment of r o a d - s e r v e d r a i l h e a d s .
2 2 .
I n g e n e r a l i t can be s a i d t h a t i n t h e U n i t e d
Kingdom, u n l i k e t h e United S t a t e s , t h e p a s s e n g e r
s e r v i c e s i n themselves, prove the n e c e s s i t y f o r the
railways.
T h e c o n t r a s t i s b r o u g h t home when i t i s
r e a l i s e d that the Southern Region c a r r y annually almost
t h e same number of p a s s e n g e r s a s a l l t h e C l a s s I
r a i l w a y s of t h e U n i t e d S t a t e s .
The r a i l w a y s a r e , and
w i l l r e m a i n , t h e i d e a l m e t h o d of t r a n s p o r t f o r c a r r y i n g
l a r g e n u m b e r s of p e o p l e t o and f r o m t h e i r work and
w i t h o u t them a g r e a t p a r t of t h e e s s e n t i a l d a i l y and
b u s i n e s s t r a v e l of t h e c o u n t r y a n d t h e b i g s e a s o n a l
m o v e m e n t s of h o l i d a y m a k e r s and o t h e r s w o u l d b e v i r t u a l l y
impossible.
But t h e r a i l w a y s a r e a l s o i n d i s p e n s a b l e
t o a g r e a t p a r t of t h e b a s i c f r e i g h t t r a f f i c s .
They
a r e e s s e n t i a l f o r b u l k f r e i g h t and a r e t h e i n d i s p e n s a b l e
a l l y o f o t h e r f o r m s of m o v e m e n t i n m e e t i n g t h e t o t a l
t r a n s p o r t r e q u i r e m e n t s of t h e c o u n t r y .
Finally, the
v;alue of t h e r a i l w a y s t o n a t i o n a l d e f e n c e , o r i n
emergency, must n o t b e o v e r l o o k e d .
Thus, despite the
e n o r m o u s a n d r a p i d g r o w t h o f r o a d and a i r t r a n s p o r t ,
t h e r a i l w a y s w i l l a l w a y s , as f a r as can b e f o r e s e e n ,
.be a v i t a l p a r t of t h e c o u n t r y ' s t r a n s p o r t s y s t e m .
23'
G i v e n t h e e x i s t i n g f r a m e w o r k of r e g u l a t i o n ,
t h e B r i t i s h T r a n s p o r t Commission a r e t a c k l i n g t h e
p r o b l e m of a c h i e v i n g a p r o f i t a b l e b a s i s f o r t h e
o p e r a t i o n of B r i t i s h R a i l w a y s u n d e r f o u r p r i n c i p a l
headings :­
(a)
Modernisation.
( b ) E l i m i n a t i o n of s e r v i c e s f o r w h i c h t h e r e
i s no l o n g e r p u b l i c need or which can
be more e f f i c i e n t l y performed b y o t h e r
m e a n s of t r a n s p o r t , and d e v e l o p m e n t o f
the remaining s e r v i c e s .
( c)
Increased
productivity.
( d ) R e l a x a t i o n o f s t a t u t o r y a n d o t h e r
o b l i g a t i o n s , p a r t i c u l a r l y the
i n t r o d u c t i o n of g r e a t e r f r e e d o m
i n f i x i n g f a r e s and c h a r g i n g p o l i c y .
T h e s e m e a s u r e s a r e o u t l i n e d i n s u c c e e d i n g c h a p t e r s and
a f o r e c a s t i s g i v e n of t h e e x t e n t t o w h i c h t h e y w i l l
redress the present financial position.
CHAPTER IV
;
A.
CORRECTIVE ACTION IN PROGRESS -
RAILWAYS
;
MODERNISATION
T h e aim o f t h e P l a n f o r t h e M o d e r n i s a t i o n a n d
R e - e q u i p m e n t of B r i t i s h R a i l w a y s may h e s i m p l y s t a t e d : The Commission a r e d e t e r m i n e d t o e x p l o i t t h e
o p p o r t u n i t i e s f o r r e - e q u i p m e n t which modern
s c i e n c e a n d t e c h n i q u e s p r e s e n t , and t o
t r a n s f o r m t h e o p e r a t i o n s of B r i t i s h R a i l w a y s
so as t o o f f e r t h e p u b l i c a r a i l s e r v i c e
s e c o n d t o n o n e , w h i l s t d e r i v i n g from t h e
equipment t h e f u l l economic b e n e f i t i t can
provide.
C o n t i n u o u s s t u d y h a s b e e n g i v e n t o a l l a s p e c t s of
o p e r a t i o n , and l i n e s of development- h a v e b e e n e s t a b l i s h e d
w h i c h w i l l a d j u s t t h e p a t t e r n s o f t h e p a s s e n g e r and
f r e i g h t s e r v i c e s t o t h e p r o b a b l e r e q u i r e m e n t s of t h e
future.
The P l a n i s s p r e a d over f i f t e e n y e a r s ;
it is
c o n c e i v e d a s an i n t e g r a t e d w h o l e , and i s n o t p r o p e r l y
remunerati7/-e u n l e s s t r e a t e d a s s u c h , b u t i n i t s d e t a i l
it is nevertheless flexible.
I t i s already well under
way;
a f e w p r o j e c t s a r e a l r e a d y c o m p l e t e , and a g r e a t
v o l u m e o f w o r k i s now i n p r o g r e s s w h i c h w i l l b e c o m p l e t e d ,
and b e g i n t o f r u c t i f y , i n a f e w y e a r s ' t i m e .
Passenger
Traffic
' The p r i n c i p a l o b j e c t i v e s of t h e P l a n
improving the r a i l passenger s e r v i c e s are :­
( a ) To m a k e s t i l l f a s t e r
distance services
t o make them m o r e
punctual, thereby
competitive power
for
and s a f e r t h e l o n g of B r i t i s h R a i l w a y s and c o m f o r t a b l e , c l e a n and enhancing their and p r o f i t a b i l i t y . ( b ) To c o m p l e t e t h e e l e c t r i f i c a t i o n of m o s t o f t h e
v e r y i n t e n s e urban and suburban s e r v i c e s i n
t h e m a j o r c e n t r e s of p o p u l a t i o n , and t o
p r o v i d e f a s t e r and more f r e q u e n t
diesel
s u b u r b a n and i n t e r u r b a n t r a i n s e r v i c e s
where e l e c t r i f i c a t i o n cannot be c a r r i e d o u t .
( c ) To r e c a s t e n t i r e l y t h e f o r m o f t h e f e e d e r and
secondary l i n e services by s u b s t i t u t i n g for
the infrequent stopping steam t r a i n a smaller,
cheaper and more a t t r a c t i v e d i e s e l or e l e c t r i c
unit.
T h i s w i l l e l i m i n a t e o n e of t h e m o s t
s e r i o u s d r a i n s on t h e e c o n o m y of t h e r a i l w a y
s y s t e m , w h i l s t p r o v i d i n g a t t h e same t i m e an
improved s e r v i c e .
The p r i n c i p a l m e a n s o f a t t a i n i n g t h e s e
o b j e c t i v e s l i e s i n t h e e l i m i n a t i o n of s t e a m a n d t h e
s u b s t i t u t i o n of m o d e r n f o r m s of t r a c t i o n .
The
a d o p t i o n of d i e s e l and e l e c t r i c t r a c t i o n w i l l l e a d t o
h i g h e r average s p e e d s , p u n c t u a l i t y and c l e a n l i n e s s .
New t i m e t a b l e s , d e s i g n e d t o e x p l o i t t h e c a p a c i t y o f
K 9
J el
d i e s e l and e l e c t r i c t r a i n s t o c o v e r l a r g e m i l e a g e s
without a t t e n t i o n , w i l l reduce operating costs whilst
p r o v i d i n g g r e a t e r f r e q u e n c y of s e r v i c e s .
The
u l t i m a t e aim i s f o r l o n g d i s t a n c e m a i n l i n e p a s s e n g e r
t r a i n s a t a v e r a g e s p e e d s o f 75 m . p . h . b e t w e e n s t o p s
where t r a c k c o n d i t i o n s allow and where e c o n o m i c a l l y
justified.
In this connection, i t is noteworthy that
t h e n u m b e r o f p a s s e n g e r t r a i n s i n 1956 w i t h s c h e d u l e d
s t a r t - t o - s t o p s p e e d s of o v e r 60 m . p . h . i s 58 c o m p a r e d
w i t h 20 i n 1 9 5 3 .
2 7 .
F u r t h e r , r a i l t r a v e l w i l l b e made m o r e
a t t r a c t i v e by improvements in t h e amenities provided
for passengers.
New c o a c h i n g s t o c k i s b e i n g d e s i g n e d
a n d p r o t o t y p e s a r e now b e i n g c o n s t r u c t e d .
These w i l l
p r o v i d e f o r h i g h e r s t a n d a r d s of c o m f o r t and d e c o r a t i o n ,
I m p r o v e d h e a t i n g , l i g h t i n g a n d v e n t i l a t i o n , and
r e d u c t i o n of n o i s e .
At t h e same t i m e , s t a t i o n s w i l l
be modernised, road a c c e s s and p a r k i n g f a c i l i t i e s
i m p r o v e d and b e t t e r a r r a n g e m e n t s made f o r i s s u i n g
t i c k e t s and r e s e r v i n g s e a t s .
2 8 .
T h e f i r s t f r u i t s of m o d e r n i s a t i o n h a v e a l r e a d y
b e e n s e e n i n t h e i n t r o d u c t i o n of d i e s e l m u l t i p l e u n i t
v e h i c l e s of w h i c h n e a r l y 300 a r e i n u s e i n v a r i o u s p a r t s
of t h e c o u n t r y .
Wherever they have been brought i n t o
s e r v i c e , t h e r e has b e e n ample e v i d e n c e of p u b l i c
appreciation.
T h e e x t e n t o f t h e p o p u l a r i t y of t h e n e w
d i e s e l s e r v i c e s can b e gauged from t h e f o l l o w i n g
e x a m p l e s of i n c r e a s e s i n t r a f f i c s i n c e t h e i r i n t r o d u c t i o n : Percentage
Service
Leeds-BradfordHarrogate
Carlisle-Silloth
O a r l i s l e - W h i t ehaven
Garlisle-PenrithWorkington
King's Lynn-WellsNorwich
Bi rmingham-Li c h f i e l d
Bury-Bacup
2 9 .
Inaugurated
Journeys
Increase
Receipts
14. 6.54
2 9 . 11 . 5 4
7. 2.55
144
66
44
100
44
62
1 .55
84
104
9.55
5. 3.56
6. 2 . 5 6 .
40
30
210
208
132
164
3.
19.
Orders already placed c a t e r for the provision
of 2 , 4 0 0 m u l t i p l e u n i t d i e s e l v e h i c l e s b y t h e end of
1 9 5 8 f o r u s e on s e r v i c e s t h r o u g h o u t t h e c o u n t r y .
The
p r o p o s e d s e r v i c e s a r e s h o w n i n some d e t a i l i n A p p e n d i x A.
They i n c l u d e i n t e r c i t y s e r v i c e s b e t w e e n E d i n b u r g h and
G l a s g o w and b e t w e e n B i r m i n g h a m and S w a n s e a , a s w e l l a s
o t h e r s e r v i c e s between i m p o r t a n t c e n t r e s such as London
and H a s t i n g s ;
G l a s g o w and G i r v a n .
Suburban d i e s e l
s e r v i c e s are proposed in South Wales;
t h e B r i s t o l and
Birmingham a r e a s ;
t h e West R i d i n g ;
T e e s - s i d e and f o r
t h e M a n c h e s t e r and N o t t i n g h a m a r e a s ;
and b r a n c h
services are projected in East Anglia, North Wales,
H a m p s h i r e and C u m b e r l a n d .
The t o t a l number of d i e s e l
m u l t i p l e u n i t v e h i c l e s a l l o w e d f o r i n t h e p l a n i s /+56OO,
a l l of w h i c h s h o u l d b e i n u s e b y t h e end o f 1 9 6 1 .
P l a n n i n g i s now i n h a n d f o r t h e u s e o f t h o s e t o b o
i n t r o d u c e d a f t e r 1958.
F o r e x a m p l e , t h e London Midland
Region propose d i e s e l s e r v i c e s connecting L i v e r p o o l ,
L e e d s and B r a d f o r d , a n d B i r m i n g h a m , , L i v e r p o o l a n d
Manchester;
and t h e N o r t h E a s t e r n R e g i o n a r e engaged
with the other Regions concerned i n p l a n n i n g the LeedsL i v e r p o o l and H u l l - L i v e r p o o l s e r v i c e s .
3 0 .
P l a n s a r e a l s o w e l l advanced f o r the i n t r o d u c t i o n
of a s m a l l d i e s e l r a i l c a r s p e c i a l l y s u i t e d t o b r a n c h
l i n e s and o t h e r s t o p p i n g s e r v i c e s i n r u r a l a r e a s , w h e r e ,
i f t r a f f i c by r a i l i s t o c o n t i n u e , t h e h i g h e s t d e g r e e of
o p e r a t i n g economy must b e p r a c t i s e d .
31*
A t h i r d t y p e of d i e s e l t r a i n i s e n v i s a g e d ,
o f f e r i n g h i g h s p e e d and s p e c i a l a m e n i t i e s .
Accordingly,
p l a n s a r e b e i n g d e v e l o p e d f o r t h e i n t r o d u c t i o n of de l u x e
multiple
u n i t d i e s e l e x p r e s s e s t o o p e r a t e at h i g h speed
on s e l e c t e d s e r v i c e s b e t w e e n i m p o r t a n t c i t i e s .
These
w i l l i n c o r p o r a t e a l l t h a t i s b e s t in modern design f o r
t h e c o m f o r t and c o n v e n i e n c e of t h e t r a v e l l e r .
3
2
,
The programme f o r e l e c t r i f i c a t i o n i s o u t l i n e d
i n Appendix A, from which i t w i l l b e seen t h a t e l e c t r i ­
f i c a t i o n on t h e m a i n l i n e s b e t w e e n E u s t o n , M a n c h e s t e r
and L i v e r p o o l , a n d K i n g ' s C r o s s , L e e d s a n d Y o r k , w i l l
n o t b e c o m p l e t e d u n t i l t h e l a t e r s t a g e s of t h e P l a n
have been reached.
T h i s i s i n e v i t a b l e i n v i e w of t h e
g r e a t mass of e n g i n e e r i n g w o r k t h e y c o m p r i s e .
Diesel
t r a c t i o n w i l l , t o some e x t e n t , s p a n t h e g a p , a n d
e l e c t r i c t r a c t i o n w i l l be brought i n , in s t a g e s , as
sections are completed.
3 3 .
elcctrifi­
Work i s w e l l u n d e r w a y i n t h e o t h e r
cation schemes.
I n J a n u a r y , 1957? t h e e x t e n s i o n f r o m
Shenfield t o Southend w i l l be completed, and d u r i n g the
p e r i o d b e t w e e n i 9 6 0 and 1 9 6 2 , m a n y new e l e c t r i f i e d l i n e s
w i l l h a v e come i n t o s e r v i c e , i n c l u d i n g t h e e x t e n s i o n s t o
t h e Kent C o a s t , ' t h e Glasgow s u b u r b a n l i n e s , t h e London
T i l b u r y and S o u t h e n d L i n e and t h e E n f i e l d ,
Chingford,
H e r t f o r d and B i s h o p S t o r t f o r d b r a n c h .
3U.
T h e f i n a n c i a l r e s u l t s of a l l t h e s e m e a s u r e s
in connection with passenger t r a f f i c w i l l be decisive.
The i n v e s t m e n t i n d i e s e l m u l t i p l e u n i t t r a i n s f o r
stopping s e r v i c e s i s expected t o r e s u l t in immediate
and v e r y g r e a t s a v i n g s .
E c o n o m i e s w i l l a l s o b e made
on t h e s u b u r b a n s e r v i c e s , a n d t h e p r o f i t a b i l i t y o f t h e
long distance services w i l l be enhanced.
All in a l l ,
a t o t a l i m p r o v e m e n t of s o m e £30m. a y e a r m a y b e
predicted with confidence as the eventual outcome.
T h i s i s h a r d l y s u r p r i s i n g whon i t i s r e m e m b e r e d t h a t
t h e r e a r e t h e t e c h n i c a l d e v e l o p m e n t s of t w e n t y y e a r s
to gather in.
Freight
Traffic
The m a i n o b j e c t i v e s f o r t h e m o d e r n i s e d
services are r e l i a b i l i t y ;
speed;
and e c o n o m i c
These w i l l be achieved by ;­
freight
operation.
( a ) s p e e d i n g u p t h e s e r v i c e s b y p r o v i d i n g a l l
wagons w i t h c o n t i n u o u s b r a k e s ; ( b ) e l i m i n a t i n g d e l a y s b y p r o v i d i n g new and extending existing marshalling yards; ( o ) b u i l d i n g t h e l a r g e s t w a g o n s c o n s i s t e n t w i t h t h e r e q u i r e m e n t s o f t r a d e and industry;
( d ) r e d u c i n g t h e n u m b e r of s t a t i o n s d e a l i n g with f r e i g h t business by concentrating on m o d e r n i s e d r a i l h e a d s , o p e r a t e d i n conjunction with r a d i a l road s e r v i c e s ; ( e ) i n c r e a s i n g t h e u s e of c o n t a i n e r s and o t h e r
modern d e v i c e s f o r r a p i d t r a n s f e r of l o a d s
b e t w e e n road and r a i l w i t h o u t h a n d l i n g
the goods;
( f ) d e v e l o p i n g m e c h a n i s e d h a n d l i n g m e t h o d s t o t h e maximum e x t e n t . By t h e s e m e a n s i t w i l l b e p o s s i b l e t o o b t a i n a q u i c k e r
t u r n r o u n d of w a g o n s , g r e a t e r c a r r y i n g c a p a c i t y , and i n
c o n s e q u e n c e a s u b s t a n t i a l r e d u c t i o n i n t h e wagon f l e e t .
F u r t h e r , by o f f e r i n g t r a d e r s a f a s t e r and more r e l i a b l e
s e r v i c e , and b y t a k i n g a d v a n t a g e o f t h e new c h a r g e s
scheme, more t r a f f i c w i l l be a t t r a c t e d t o r a i l .
The d e v e l o p m e n t of f r e i g h t t r a i n o p e r a t i o n ,
t o be b o t h e f f i c i e n t and e c o n o m i c , r e q u i r e s a c c e l e r a t i o n
of t i m i n g s , r e g u l a r i t y of s e r v i c e and g r e a t e r u t i l i s a ­
t i o n of m o t i v e p o w e r a n d r o l l i n g s t o c k .
One of t h e
more i m p o r t a n t c o n t r i b u t i o n s t o t h e s e aims i s t h e f i t t i n g
of
the continuous brake to a l l freight rolling stock.
D e t a i l s o f t h e p r o g r a m m e f o r t h e i n t r o d u c t i o n of t h e
vacuum b r a k e a r e . g i v e n i n A p p e n d i x A.
By 1 9 5 5 a b o u t
181,1+00 w a g o n s , o n e - s i x t h o f t h e t o t a l f l e e t , h a d b e e n
f i t t e d with continuous brakes.
Over the next ten y e a r s ,
b r a k e s w i l l b e f i t t e d t o new and e x i s t i n g wagons a t a
r a t e of o v e r 60,000 a y e a r .
T h i s programme w i l l b r i n g
a r a p i d i n c r e a s e i n t h e number of b r a k e d t r a i n s , which
should lead t o a s t e a d y improvement in .the e f f i c i e n c y
of b o t h f r e i g h t a n d p a s s e n g e r t r a i n o p e r a t i o n b y
e l i m i n a t i n g t h e d e l a y i n g e f f e c t of t h e s l o w , u n b r a k e d
goods t r a i n .
The f r e i g h t t r a i n of t h e f u t u r e w i l l
n o r m a l l y t r a v e l a t s p e e d s u p t o 60 m . p . h , , w i t h i m p r o v e d
p u n c t u a l i t y and i n g r e a t e r s a f e t y .
T h e P l a n p r o v i d e s f o r t h e e l i m i n a t i o n of m a n y
old m a r s h a l l i n g y a r d s and t h e i r replacement by a s m a l l e r
number of m o d e r n y a r d s p r o v i d e d w i t h m e c h a n i s e d b r a k i n g
e q u i p m e n t and a d v a n c e d c o m m u n i c a t i o n s y s t e m s .
Apart
from t h e d i r e c t s a v i n g s r e s u l t i n g from t h e i n c r e a s e d
e f f i c i e n c y of o p e r a t i o n w i t h i n t h e y a r d s , c o n s i d e r a b l e
b e n e f i t s w i l l a c c r u e f r o m t h e c l o s i n g of o l d and
i n e f f i c i e n t y a r d s and t h e s p e e d i n g u p of t r a f f i c .
3 8 .
S u r v e y s i n p r o g r e s s of t h e g e n e r a l p a t t e r n of
f r e i g h t o p e r a t i o n t h r o u g h o u t t h e c o u n t r y have l e d up
t o now t o t h e c o n s t r u c t i o n of new m a r s h a l l i n g y a r d s
b e i n g p u t i n h a n d a t T e m p l e M i l l s a n d R i p p l e L a n e on
t h e E a s t e r n R e g i o n , T h o r n t o n a n d M i l l e r h i l l on t h e S c o t t i s h R e g i o n , a n d Margam a n d S e v e r n T u n n e l J u n c t i o n
on t h e W e s t e r n R e g i o n .
3 9 .
E i g h t y - e i g h t p e r c e n t , of t h e t o t a l f r e i g h t
t o n n a g e c a r r i e d b y B r i t i s h R a i l w a y s o r i g i n a t e s from
p r i v a t e s i d i n g s and t h i s i n c l u d e s p r a c t i c a l l y a l l t h e
coal t r a f f i c .
F i f t y - e i g h t p e r c e n t , of t h e t o t a l
freight tonnage i s delivered to p r i v a t e s i d i n g s ,
i n c l u d i n g h a l f of t h e c o a l t r a f f i c .
The s i d i n g s
t h e m s e l v e s , and t h e l o a d i n g a r r a n g e m e n t s t h e y s e r v e
l i m i t t h e s i z e , t y p e and l a d e n w e i g h t of t h e wagons
t h a t u s e them.
This i n f l u e n c e goes f a r to account
f o r t h e s m a l l s i z e of m i n e r a l and g e n e r a l m e r c h a n d i s e
wagons i n u s e in B r i t a i n .
In seeking s o l u t i o n s to the
p r o b l e m of i n c r e a s i n g t h e p a y l o a d of r a i l w a g o n s ,
a t t e n t i o n i s b e i n g f o c u s s e d on h i g h e r c a p a c i t y w a g o n s .
W h e r e v e r r e g u l a r f l o w s of t r a f f i c j u s t i f y , a n d l o c a l
c o n d i t i o n s p e r m i t , t h e u s e of w a g o n s of kO a n d 5 0 - t o n
c a p a c i t y working in r e g u l a r c i r c u i t s , t h e s e are b e i n g
introduced.
The movement of i r o n o r e from Tyne Dock
t o C o n s e t t i n 5 6 - t o n s e l f - d i s c h a r g i n g wagons i s an
illustration.
F o r o t h e r movements of m i n e r a l s , t h e
new 2k^-ton
wagon i s p r o v i n g i t s w o r t h a n d o v e r 2 , 5 0 0
of them a r e a l r e a d y i n s e r v i c e .
The p r o d u c t i o n of t h e
1 6 - t o n g e n e r a l s e r v i c e a l l - s t e e l m i n e r a l wagon w i l l b e
d i s c o n t i n u e d i n f a v o u r of a wagon o f 2 1 / 2 2 - t o n c a p a c i t y
which i s b e i n g d e s i g n e d f o r s e r v i c e s to t e r m i n a l s u n a b l e ,
b y r e a s o n of t h e i r s i z e , t o a c c e p t t h e 2ki-ton
wagons.
S i m i l a r l y , new v e h i c l e s f i t t e d f o r a i r d i s c h a r g e a r e
being introduced for s p e c i a l t r a f f i c s such as cement,
a n d an i n t e n s i v e d r i v e i s b e i n g m a d e i n t o t h e m e a n s o f
a t t r a c t i n g t o r a i l t r a n s p o r t b r i c k s , s h e e t s t e e l and
b u l k t r a f f i c s of a s i m i l a r n a t u r e .
i+0.
Terminal costs for f r e i g h t t r a f f i c , which
i n c l u d e t e r m i n a l h a u l a g e , s h u n t i n g and m a r s h a l l i n g ,
a b s o r b some luD p e r c e n t , o f p r e s e n t r a i l c o s t s
( e x c l u d i n g t r a c k ) i n t h e c a s e o f f u l l - w a g o n l o a d s , and
n e a r l y 70 p e r c e n t , i n t h e c a s e of l e s s - t h a n - w a g o n l o a d
t r a f f i c where goods have to be s o r t e d f o r f o r w a r d i n g .
A r e c e n t a n a l y s i s t a k e n d u r i n g one week of t r a f f i c a t
a s e l e c t i o n of t y p i c a l s t a t i o n s h a s s h o w n t h a t 60 p e r
c e n t , of them d e a l t w i t h l e s s t h a n t w e n t y wagons d u r i n g
the p eriod.
U1.
There a r e , t h e r e f o r e , conclusive arguments for
c l o s i n g m a n y g o o d s s t a t i o n s a n d t h e c o n c e n t r a t i o n of
r a i l f r e i g h t a t a s m a l l e r n u m b e r of m o d e r n f r e i g h t
t e r m i n a l s s e r v e d b y r o a d and e q u i p p e d w i t h m e c h a n i c a l
handling equipment.
These f r e i g h t t e r m i n a l s w i l l be
served by f a s t t r a i n s .
Direct s e r v i c e s w i l l be
o p e r a t e d , wherever p o s s i b l e , to keep time l o s s e s in
m a r s h a l l i n g t r a i n s to a minimum.
Much p r e p a r a t o r y w o r k i n t h e d e v e l o p m e n t o f t h e new f r e i g h t t e r m i n a l s i s i n h a n d .
In the Eastern Region, schemes for m o d e r n i s a t i o n at L i n c o l n , Grimsby and P e t e r b o r o u g h h a v e b e e n a p p r o v e d a n d w o r k h a s commenced on a new r a i l h e a d d e p o t a t R i p p l e L a n e , n e a r Barking.
I n t h e L o n d o n M i d l a n d R e g i o n , s c h e m e s f o r new goods t e r m i n a l s a r e i n p r e p a r a t i o n f o r M a n c h e s t e r , S t o k e , Birmingham and London ( D u d d i n g H i l l ) .
In the S o u t h e r n R e g i o n , p l a n s a r e in hand f o r t h e development of a new d e p o t a t C r a w l e y .
Similar developments in o t h e r Regions a r e i n hand f o r N e w c a s t l e , S t o c k t o n , D u n d e e , M e r t h y r and P l y m o u t h . T h e m o v e m e n t of t r a f f i c t o a n d f r o m t h e p o r t s h a s b e e n u n d e r c l o s e e x a m i n a t i o n , and r e p r e s e n t a t i v e s of t h e F e d e r a t i o n o f B r i t i s h I n d u s t r i e s , t o g e t h e r w i t h r e p r e s e n t a t i v e s of t h e C o m m i s s i o n , a r e e n g a g e d i n d e t e r m i n i n g means of a v o i d i n g t h e s e r i o u s road c o n ­
g e s t i o n n e a r t h e p r i n c i p a l p o r t s , b y d i v e r t i n g some o f the business to r a i l .
A s p e c i a l depot has been opened i n t h e B i r m i n g h a m a r e a f o r t h e r e c e p t i o n of s m a l l c o n s i g n m e n t s and t h e i r s u b s e q u e n t l o a d i n g i n t h r o u g h wagons t o t h e p o r t s w i t h a " G r e e n Arrow" a s s u r a n c e of delivery.
F r e i g h t t e r m i n a l s c a t e r f o r t h e t r a n s f e r from
one form of t r a n s p o r t t o a n o t h e r :
b e t w e e n r o a d and r a i l .
T h e s i m p l i f i c a t i o n of t h i s t r a n s f e r t o s u i t t h e n e e d s o f
^the c o n s i g n o r or c o n s i g n e e and to a c c e l e r a t e t r a n s i t i s
one of t h e b a s i c p r o b l e m s of f r e i g h t m o v e m e n t .
For full
l o a d s t h e o b j e c t i v e i s t o d e v e l o p new t y p e s of c o n t a i n e r s
o r d e m o u n t a b l e b o d i e s w h i c h c a n b e s w i f t l y and m e c h a n i c a l l y
t r a n s f e r r e d b e t w e e n r o a d and r a i l v e h i c l e s , so e l i m i n a t i n g
t h e h a n d l i n g of t h e g o o d s .
The new c o n t a i n e r s w i l l
c a t e r f o r h i g h e r p a y l o a d s a n d w i l l b e of l i g h t e r c o n ­
s t r u c t i o n than the older types.
Freight terminal design,
l a y o u t a n d e q u i p m e n t w i l l m a t c h t h e s e new d e v e l o p m e n t s
i n l a y o u t of s i d i n g s , r o a d w a y s , c o n t a i n e r p a r k s and
mechanical appliances.
P r o p o s a l s f o r p i l o t schemes f o r
t h e h a n d l i n g of c o n t a i n e r t r a f f i c u n d e r modern c o n d i t i o n s
a r e i n c o u r s e of p r e p a r a t i o n . T h e r a i l w a y s d e a l a n n u a l l y w i t h many m i l l i o n s of s m a l l c o n s i g n m e n t s , w h i c h a r e a n d w i l l c o n t i n u e t o b e an i n t e g r a l p a r t of t h e t r a d e of t h e c o u n t r y .
The
a s s e m b l y of s m a l l c o n s i g n m e n t s i n t o t r u n k h a u l a g e l o a d s i n v o l v e s h a n d l i n g o p e r a t i o n s c o s t l y i n manpower.
These
s e r v i c e s w i l l be h i g h l y m e c h a n i s e d .
Railheads for s m a l l consignments w i l l be equipped w i t h power o p e r a t e d c o n v e y o r b e l t s , s t i l l a g e s , p o w e r t r u c k s and f o r k l i f t trucks.
P l a n s f o r d e v e l o p m e n t of s u c h t e r m i n a l s a r e actively in hand. T h e f i n a n c i a l r e s u l t s of t h e f o r e g o i n g c h a n g e s i n f r e i g h t t r a n s p o r t w i l l a c c r u e more s l o w l y than the r e s u l t s on t h e p a s s e n g e r s i d e .
I n d e e d , i t was t h o u g h t when t h e P l a n was p r e p a r e d t h a t i n t h e e a r l i e s t s t a g e s t h e d i f f i c u l t i e s a n d d i s l o c a t i o n s of t h e c h a n g e s t o b e m a d e wou3.d a b s o r b a l l t h e i m m e d i a t e b e n e f i t s .
However,
t h e u l t i m a t e f i n a n c i a l i m p r o v e m e n t on t h e p r e s e n t p o s i t i o n , r e s u l t i n g from f r e i g h t m o d e r n i s a t i o n , w i l l h e
g r e a t , a p a r t f r o m t h e b e n e f i t s t o t h e c u s t o m e r of
i m p r o v e d s e r v i c e , a n d i s a s s e s s e d a t a minimum o f £ 5 5 m .
a year.
Financial
effect
of
the Modernisation
Flan,
T a k i n g i n t o a c c o u n t t h e i m p r o v e m e n t of £ 3 0 m ,
r e f e r r e d t o i n p a r a g r a p h 3k t h e t o t a l i m p r o v e m e n t f r o m
b o t h p a s s e n g e r a n d f r e i g h t s e r v i c e s i s t h u s some £ 8 5 m ,
T h i s i s b e f o r e a l l o w i n g f o r i n t e r e s t on t h e c a p i t a l
involved.
The e x p e c t e d c a p i t a l e x p e n d i t u r e s h a v e b e e n
reviewed once more.
The t o t a l e x p e n d i t u r e u n d e r t h e
P l a n when i t w a s p u b l i s h e d w a s p u t a t a b o u t £ 1 , 2 0 0 m . a n d
t h e amount t o b e b o r r o w e d , a l l o w i n g f o r i n t e r n a l s o u r c e s
of f i n a n c e s u c h a s d e p r e c i a t i o n p r o v i s i o n s , a t a b o u t
£800m.
T h e s e f i g u r e s a r e now l i k e l y t o b e i n c r e a s e d ,
though not g r e a t l y .
As t o t h e r a t e o f i n t e r e s t on t h e
borrowings, the Plan allowed for f i n a n c i a l charges at
5 p e r c e n t , p e r a n n u m , a n d o n p a s t e x p e r i e n c e i t may b e
s u p p o s e d t h a t t h e l o n g - t e r m r a t e o f i n t e r e s t w i l l , on
the average over t h e y e a r s , be l e s s than t h i s f i g u r e .
On b a l a n c e , t h e r e s e e m s n o r e a s o n t o a l t e r t h e a n n u a l
c h a r g e of £ h O m . p r e v i o u s l y i n c l u d e d i n t h e P l a n .
As t o t h e p h r a s i n g of t h e d e v e l o p m e n t p r o g r a m m e ,
it
h a s b e e n c o n s i d e r a b l y a c c e l e r a t e d s i n c e i t was f i r s t
p u b l i s h e d and i t i s g a t h e r i n g momentum.
An i n d i c a t i o n
of t h e p r o b a b l e p r o g r e s s i s g i v e n i n A p p e n d i x B .
As t o
t h e f i n a n c i a l b e n e f i t t o be d e r i v e d from t h e s e e x p e n d ­
i t u r e s . , h o w e v e r , t h e i n e v i t a b l e d e l a y b e t w e e n s o w i n g and
r e a p i n g w i l l mean t h a t d u r i n g t h e f i r s t s t a g e - t h e
p e r i o d t o i 9 6 0 o r 1961 - t h e f i n a n c i a l c h a r g e s on t h e
b o r r o w i n g s , added t o t h e u n i d e n t i f i a b l e b u t u n a v o i d a b l e
c o s t s of d i s l o c a t i o n and d i s t u r b a n c e , m u s t b e e x p e c t e d
to exceed the improvements in revenue.
After this
p e r i o d , h o w e v e r , t h e g a p w i l l b e e l i m i n a t e d and t h e
f i n a n c e s of t h e Commission w i l l b e s t r e n g t h e n e d by a
r a p i d l y i n c r e a s i n g n e t b e n e f i t u n t i l , b y 1970, a n e t
b e n e f i t o f a t l e a s t £k5w* s h o u l d b e a v a i l a b l e .
I t s h o u l d p e r h a p s b e added t h a t t h e Commission
a r e f u l l y c o n s c i o u s t h a t t h e p h y s i c a l p r o c e s s e s of
m o d e r n i s a t i o n and d e v e l o p m e n t must be a c c o m p a n i e d b y
s i m i l a r a d j u s t m e n t s i n t h e i r o r g a n i s a t i o n , m e t h o d s and
outlook.
I f at one time t h e s e i n t a n g i b l e changes were
thought to present g r e a t e r d i f f i c u l t y , perhaps, than
t h e p h y s i c a l c h a n g e s , t h e C o m m i s s i o n a r e now g l a d t o
r e p o r t t h a t t h e r e a r e a l r e a d y s i g n s of a f r e s h o u t l o o k
and a new d e t e r m i n a t i o n w h i c h w i l l b e of d e c i s i v e
importance.
CHAPTER IV
B .
(Continued)
ELIMINATION OF SERVICES FOR WHICH THERE I S
NO LONGER PUBLIC NEED OR WHICH CAN B E F O R E
EFFICIENTLY PERFORMED BY OTHER J/JEANS OF
TRANSPORT, AND DEVELOPMENT OF THE REMAINING
RAILWAY SERVICES
5 0 .
The o p e r a t i o n b y more economic m e a n s , o r t h e
e l i m i n a t i o n , of u n r e m u n e r a t i v e p a s s e n g e r s e r v i c e s i s an
e s s e n t i a l f e a t u r e of t h e M o d e r n i s a t i o n P l a n and i t i s
p e r t i n e n t t o examine t h e p r o g r e s s t h a t h a s b e e n made and
t h e r e s u l t s t h a t may b e e x p e c t e d .
I t has to be
remembered t h a t B r i t i s h R a i l w a y s , b r o a d l y s p e a k i n g , were
developed a c e n t u r y b e f o r e p o w e r - d r i v e n road t r a n s p o r t .
T h e l a t t e r , r e q u i r i n g n o s p e c i a l i s e d t r a c k and w i t h t h e
s i n g l e v e h i c l e as i t s n a t u r a l u n i t , i s c l e a r l y s u p e r i o r
t o r a i l i n c o n v e n i e n c e and c h e a p n e s s of o p e r a t i o n f o r
s h o r t e r distance transport in thinly populated r u r a l
areas.
The P l a n i t s e l f r e f e r r e d t o " p u r p o s e f u l
c o n c e n t r a t i o n on t h o s e f u n c t i o n s w h i c h t h e R a i l w a y s c a n
b e made t o p e r f o r m more e f f i c i e n t l y t h a n o t h e r f o r m s of
t r a n s p o r t " ( p a r a g r a p h 6) a n d f o r e t o l d " a m a r k e d r e d u c t i o n
i n t h e s t o p p i n g and b r a n c h l i n e s e r v i c e s which a r e l i t t l e
u s e d b y t h e p u b l i c a n d w h i c h , on a n y d i s p a s s i o n a t e
r e v i e w of t h e s i t u a t i o n , s h o u l d be l a r g e l y h a n d e d o v e r
t o r o a d t r a n s p o r t " ( p a r a g r a p h 1 2h) *
Nevertheless, a
r a i l w a y t r a c k i s a n a t i o n a l a s s e t , and i t i s e s s e n t i a l
t h a t b e f o r e any s e r v i c e i s withdrawn e v e r y means of
making i t r e m u n e r a t i v e should have been examined.
51 *
T h e r e a r e f o u r m e t h o d s of d e a l i n g w i t h t h e s e
unremunerative services.
The f i r s t i s t o r e - c a s t t h e
s t e a m p a s s e n g e r s e r v i c e s t o g i v e a b e t t e r u s e of m a n ­
p o w e r , r o l l i n g s t o c k and e q u i p m e n t .
The s e c o n d i s t o
i n t r o d u c e d i e s e l and e l e c t r i c t r a c t i o n a n d , where
appropriate, l i g h t railway methods.
The t h i r d i s t o
w i t h d r a w t r a i n s and s u b s t i t u t e r o a d s e r v i c e s .
The
f o u r t h , a p p l i c a b l e t o suburban a r e a s , i s to o r g a n i s e a
f u l l y c o - o r d i n a t e d r o a d and r a i l s y s t e m .
Action is
b e i n g t a k e n on a l l t h e s e m e t h o d s .
5 2 .
The f o l l o w i n g t a b l e i n d i c a t e s
w i t h d r a w a l of p a s s e n g e r s e r v i c e s s i n c e
the measure
19h8 : ­
of
Region
Eastern
London
North
Midland
Eastern
Scottish
Southern
Western
R o u t e m i l e s open
t o p a s s e n g e r and
freight
traffic
i n 19U8
266..
390
U06
U88
172
322
3,01+9
J+,736
1 ,922
3,62U
2,278
a,, 021
19,630
Note;
Route miles over
which passenger
s e r v i c e s have been
w i t h d r a w n s i n c e 19U8
2 0kh
3
When R e g i o n a l b o u n d a r i e s w e r e r e - d r a w n
i n 1950, t h i s i n v o l v e d t h e t r a n s f e r of
r o u t e m i l e a g e from one R e g i o n t o
another.
I n p a r t i c u l a r , t h e r e was
a s u b s t a n t i a l t r a n s f e r to the North
Eastern Region.
F u r t h e r i n f o r m a t i o n on t h e a c t i o n t a k e n i n e a c h
i s given in the ensuing p a r a g r a p h s .
Region
5 3 .
Eastern Region.
I n 1,9*4-8, 905 p a s s e n g e r
s t a t i o n s were open;
175 o f t h e s e h a v e s i n c e b e e n
closed.
D i e s e l cars a r e a l r e a d y r u n n i n g , or w i l l be
r u n n i n g w i t h i n t h e next two y e a r s , o v e r p r a c t i c a l l y
t h e w h o l e of t h e r e m a i n i n g b r a n c h l i n e s and m u c h o f
t h e s e c o n d a r y m i l e a g e of t h e R e g i o n .
They w i l l reduce
o p e r a t i n g c o s t s s u b s t a n t i a l l y and b r i n g i n a d d i t i o n a l
business *
5k*
London Midland R e g i o n .
I t i s expected that a
f u r t h e r 20 s e r v i c e s w i l l b e w i t h d r a w n c o m p l e t e l y o r i n
p a r t , i n v o l v i n g 1,250,000 t r a i n m i l e s a y e a r .
Mean­
w h i l e , d i e s e l c a r s a r e b e i n g i n t r o d u c e d on a v a r i e t y o f
s e r v i c e s , e . g . , i n West Cumberland and b e t w e e n B u r y and
Bacup.
These cars are a t t r a c t i n g s u b s t a n t i a l
additional business.
55*
North Eastern Region.
I n 1952, a b o u t 2^
m i l l i o n t r a i n m i l e s a y e a r o u t o f a t o t a l of o v e r 12f
m i l l i o n were running at a heavy l o s s .
Since then the
R e g i o n have been a c t i v e l y engaged i n c u t t i n g out
h o p e l e s s l y u n p r o f i t a b l e t r a i n m i l e s and i n d e v e l o p i n g
m u l t i p l e u n i t d i e s e l s e r v i c e s where p r o s p e c t s a r e more
promising.
The R e g i o n h a v e a l r e a d y w i t h d r a w n 1^ m i l l i o n
t r a i n m i l e s a y e a r , a n d a n o t h e r -g- m i l l i o n w i l l p r o b a b l y
be withdrawn in the near f u t u r e .
56,
Scottish Region.
Some f u r t h e r e c o n o m i e s a r e
e x p e c t e d f r o m t h e w i t h d r a w a l of o t h e r s e r v i c e s e s p e c i a l l y
from t h e c l o s i n g of s t a t i o n s , b u t d i e s e l c a r s w i l l b e
i n t r o d u c e d w h e r e t h e c a s e f o r them i s e s t a b l i s h e d a n d an
e x p e r i m e n t i s b e i n g made w i t h b a t t e r y - e l e c t r i c r a i l c a r s
i n c o - o p e r a t i o n w i t h t h e N o r t h of S c o t l a n d H y d r o - E l e c t r i c
Board.
5 7 .
Southern Region.
T h r e e more b r a n c h l i n e s and
e i g h t s t a t i o n s a r e l i k e l y t o be c l o s e d , b u t t h e s e a r e
m a r g i n a l c a s e s and, s u b j e c t t o any major change i n
t r a f f i c s , - t h e p o s s i b i l i t i e s of f u r t h e r e c o n o m i e s i n
this direction are limited.
5 8 .
Western Region.
Out of 1 , 5 1 4 p a s s e n g e r
s t a t i o n s a n d h a l t s o p e n i n 1 9 4 8 , 191 h a v e b e e n c l o s e d .
A c o m p r e h e n s i v e r e v i e w i s now i n h a n d .
The s e r v i c e s
a l r e a d y u n d e r e x a m i n a t i o n a f f e c t 316 s t a t i o n s .
A
f u r t h e r 583 s t a t i o n s a r e a f f e c t e d b y s e r v i c e s y e t t o b e
r e v i e w e d , m a k i n g a t o t a l of 899 s t a t i o n s .
A b o u t 20
branch l i n e s are included in the review.
In addition
t o t h e p o s s i b l e w i t h d r a w a l of s e r v i c e s , c o n s i d e r a t i o n
i s b e i n g g i v e n t o t h e i m p r o v e m e n t of n e t r e c e i p t s b y
r e - c a s t i n g t i m e t a b l e s or i n t r o d u c i n g d i e s e l s e r v i c e s .
5 9 .
T h e r e s u l t of a l l t h e s e m e a s u r e s w i l l b e a
s u b s t a n t i a l r e d u c t i o n of o p e r a t i n g c o s t s a c c o m p a n i e d ,
i t i s h o p e d , b y e x p a n s i o n , of t r a f f i c .
The a c t i v i t i e s
o f t h e R e g i o n s a r e n o t l i m i t e d t o t h e f i g u r e s q u o t e d and
t h e w h o l e s u b j e c t i s a m a t t e r of c o n t i n u a l r e v i e w a n d
progress.
I t must be n o t e d t h a t t h e f i n a n c i a l
j u s t i f i c a t i o n f o r t h e M o d e r n i s a t i o n P l a n made a l l o w a n c e s
f o r the c o n s i d e r a b l e b e n e f i t s a r i s i n g from t h e s e m e a s u r e s
t h i s i s brought to account in. the figures given in
p a r a g r a p h 47. above.
H o w e v e r , t h e w i t h d r a w a l of
u n r e m u n e r a t i v e s e r v i c e s , which no a l t e r n a t i v e method
can r e d e e m , h a s r e c e n t l y b e e n a c c e l e r a t e d , t h a n k s i n
l a r g e m e a s u r e t o t h e s u p p o r t g i v e n b y ' t h e M i n i s t e r of
T r a n s p o r t ' a n d C i v i l A v i a t i o n and i t i s r e a s o n a b l e t o
c o u n t u p o n an a d d i t i o n a l n e t s a v i n g of some £3m. a
y e a r b y t h e end o f t h e n e x t s i x y e a r s , a t t h e end o f
w h i c h t h e ijrocess w i l l be more or l e s s c o m p l e t e .
C .
6 0 .
61*
6 2 .
INCREASED PRODUCTIVITY
The i n c r e a s e s i n o u t p u t p e r h e a d w h i c h h a v e been
r e c o r d e d i n t h i s c o u n t r y s i n c e t h e war h a v e l a r g e l y b e e n
t h e r e s u l t of t h e r e m o v a l of b o t t l e n e c k s and t h e
i n t r o d u c t i o n of new e q u i p m e n t .
The M o d e r n i s a t i o n P l a n
f o r B r i t i s h R a i l w a y s t a k e s a c c o u n t of t h e s e f a c t o r s to
a c o n s i d e r a b l e e x t e n t and t h i s s e c t i o n of t h e p a p e r
deals only with i n c r e a s e s in p r o d u c t i v i t y which are
d i v o r c e d from m o d e r n i s a t i o n .
I t i s d i f f i c u l t t o m e a s u r e t h e o u t p u t of a
r a i l w a y s y s t e m a s a w h o l e , s t i l l l e s s t h a t o f s o m e of
i t s components, such as the s i g n a l l i n g system;
but
- u s i n g a c o m b i n a t i o n of p a s s e n g e r a n d f r e i g h t c a r r y i n g s
a s a m e a s u r e , i t i s c a l c u l a t e d t h a t s i n c e 1948 t h e
o u t p u t p e r h e a d on t h e r a i l w a y s o f t h e U n i t e d S t a t e s
h a s r i s e n , i n s p i t e of l a r g e e x p e n d i t u r e , b y l e s s t h a n
one p e r c e n t , p e r annum.
In Prance, with a large scale modernisation
p r o g r a m m e , w i t h an economy r e c o v e r i n g from t h e
d e v a s t a t i o n s o f w a r and w i t h m a n y s t a f f d e c l a r e d
r e d u n d a n t , an i n c r e a s e o f some f o u r p e r c e n t , p e r annum
h a s b e e n a c h i e v e d s i n c e 1948.
On a s i m i l a r b a s i s o f
comparison, i t i s estimated that B r i t i s h Railways
a c h i e v e d an i n c r e a s e o f . " b r o a d l y t w o p e r c e n t , p e r
o v e r t h e same p e r i o d .
have
annum
6 3 .
R a i l w a y management keeps u n d e r review t h e
r e s u l t s a c h i e v e d w i t h e x i s t i n g e q u i p m e n t and a p p l i e s
t h e p r i n c i p l e s o f Work S t u d y .
Further, the British
R a i l w a y s P r o d u c t i v i t y C o u n c i l i s now p r o m o t i n g t h e w i d e r
a n d m o r e e x t e n s i v e , a p p l i c a t i o n of t h e t e c h n i q u e s o f Work
S t u d y t o a l l a s p e c t s of r a i l w a y w o r k .
To h e e f f e c t i v e
t h i s r e q u i r e s s t a f f t r a i n e d i n Work S t u d y m e t h o d s and
h a v i n g d e t a i l e d k n o w l e d g e of r a i l w a y w o r k i n g .
Accordingly,
t o w a r d s t h e e n d of 1 9 5 6 , a Work S t u d y T r a i n i n g C e n t r e f o r
B r i t i s h R a i l w a y s , L o n d o n T r a n s p o r t , B r i t i s h Road S e r v i c e s ,
Docks and Waterways w i l l h e s e t up a t W a t f o r d and i t i s
e x p e c t e d t h a t w i t h i n t h r e e y e a r s t h e numbers of s t a f f s o
t r a i n e d w i l l b e s u f f i c i e n t f o r a l a r g e e x p a n s i o n of
projects.
6I+.
Further, a specialist advisory service is being
e s t a b l i s h e d w i t h i n t h e Commission u n d e r a D i r e c t o r of
Work S t u d y t o d e v e l o p a common p o l i c y a n d c e n t r a l p o o l
o f e x p e r i e n c e r e l a t i n g t o t h e a p p l i c a t i o n o f Work S t u d y
to transport problems.
In a d d i t i o n to t h i s the
C o m m i s s i o n ' s D i r e c t o r o f Work S t u d y i s r e s p o n s i b l e f o r
a d v i s i n g o n - t h e c o - o r d i n a t i o n of r e l a t i o n s w i t h t h e
T r a d e U n i o n s on Work S t u d y a n d f o r t h e g e n e r a l s u p e r ­
v i s i o n of t h e T r a i n i n g C e n t r e .
I n t h i s t a s k he w i l l
be a s s i s t e d b y an A d v i s o r y Committee which w i l l i n c l u d e
r e p r e s e n t a t i v e s of t h e T r a d e U n i o n s a n d of o u t s i d e
industry.
6 5 .
A s u c c e s s f u l Work S t u d y s c h e m e i n t h e R e a d i n g
S i g n a l Works h a s l e d t o a s u b s t a n t i a l i n c r e a s e i n t o t a l
o u t p u t w i t h a r e d u c e d l a b o u r f o r c e , a l o w e r wages b i l l
and i n c r e a s e d i n d i v i d u a l e a r n i n g s .
Investigations in
o t h e r S i g n a l Works a r e b e i n g u n d e r t a k e n .
Altogether,
s p r e a d o v e r s e v e r a l d e p a r t m e n t s , 30 Work S t u d y s c h e m e s
h a v e b e e n i m p l e m e n t e d t h r o u g h o u t B r i t i s h R a i l w a y s and a t
t h e p r e s e n t t i m e a b o u t L\.0 s c h e m e s a r e u n d e r i n v e s t i g a t i o n .
T h e s e i n c l u d e a v e r y l a r g e scheme a t Swindon W o r k s h o p s ,
O f f i c e s and S t o r e s .
Consultants are also at the
moment i n v e s t i g a t i n g tv/o M o t i v e P o w e r D e p o t s w i t h t h e
o b j e c t of r e c o m m e n d i n g t h e i n t r o d u c t i o n o f i n c e n t i v e
bonus schemes f o r maintenance work.
F u r t h e r d e t a i l s of
Work S t u d y s c h e m e s a r e g i v e n i n A p p e n d i x C.
6 6 .
O v e r t h e p a s t e i g h t y e a r s I n c e n t i v e Bonus Schemes
have been introduced at c e r t a i n C i v i l Engineering Depart­
ment Workshops and P r o d u c t i o n D e p o t s w i t h c o n s i d e r a b l e
success.
I n c r e a s e s i n o u t p u t of o v e r 100 p e r c e n t , h a v e
b e e n o b t a i n e d i n some c a s e s .
A p i l o t s c h e m e of
i n c e n t i v e b o n u s p a y m e n t s f o r t r a c k m a i n t e n a n c e was
i n t r o d u c e d i n t h e Woking a r e a f o l l o w i n g a work s t u d y
i n v e s t i g a t i o n o f t h e v a r i o u s a s p e c t s of t h e l e n g t h m a n ' s
job.
W i t h t h e c o - o p e r a t i o n of t h e s t a f f t h e s c h e m e h a s
been extended to the B a s i n g s t o k e and o t h e r a r e a s i n the
Southern Region,
A l l R e g i o n s a r e now g i v i n g c o n s i d e r ­
a t i o n t o t h e i n t r o d u c t i o n of s i m i l a r p i l o t s c h e m e s .
T h e i r i n t r o d u c t i o n h a s b e e n a p p r o v e d on t h e W e s t e r n ,
S c o t t i s h , a n d N o r t h E a s t e r n R e g i o n s , and i t i s h o p e d t o
i n t r o d u c e a s c h e m e on t h e L o n d o n M i d l a n d R e g i o n b e f o r e
t h e e n d of t h e y e a r .
T h e r e s u l t s of t h e e x t e n d e d
s c h e m e h a v e b e e n i m p r e s s i v e a n d t h e a p p l i c a t i o n of t h i s
s c h e m e on p e r m a n e n t w a y m a i n t e n a n c e a l o n e t o t h e w h o l e
of B r i t i s h R a i l w a y s , w h i c h w i l l t a k e s e v e r a l y e a r s t o
c o m p l e t e , may w e l l a c h i e v e a l a r g e r p o t e n t i a l s a v i n g
t h a n w a s o r i g i n a l l y f o r e c a s t b y t h e C o n s u l t a n t s who
c a r r i e d out the p r e l i m i n a r y i n v e s t i g a t i o n s f o r t h e
p i l o t scheme.
The b r o a d aim o f work s t u d y i s t o o b t a i n t h e
maximum p r o d u c t i v i t y f r o m m e n , m a c h i n e s and m a t e r i a l .
I t p r o v i d e s a m e a n s of d e t e r m i n i n g t h e b e s t w a y of
d o i n g a j o b and a f f o r d s a b a s i s f o r f i n a n c i a l i n c e n t i v e
schemes.
It also provides a factual basis for
i n t r o d u c i n g c h a n g e s i n t r a d i t i o n a l w o r k i n g m e t h o d s and
i n t h e e l i m i n a t i o n of o b s o l e t e p r a c t i c e s .
Moreover,
Work S t u d y e n a b l e s s o u n d l a b o u r c o n t r o l s c h e m e s t o b e
d e v i s e d , from w h i c h r a t i o n a l f i n a n c i a l i n c e n t i v e b o n u s
p a y m e n t s c a n b e made on a b a s i s w h i c h g i v e s t h e S t a f f
concerned a f a i r share.of the r e s u l t i n g economies.
The f i n a n c i a l b e n e f i t t o t h e Commission w i l l b e l i m i t e d
accordingly.
T h e i n t r o d u c t i o n of new e q u i p m e n t w i l l i n c r e a s e
productivity.
Mechanised equipment i n o f f i c e s is widely
u s e d f o r p a y r o l l , g o o d s and s t o r e s a c c o u n t i n g .
British
Railways a r e as f a r i f n o t f u r t h e r ahead than e t h e r
i n d u s t r i e s i n t h e c o u n t r y i n t h e d e v e l o p m e n t of
electronic devices in this f i e l d .
Electronic equip­
ment has been i n s t a l l e d i n o f f i c e s a t Crewe, D e r b y ,
P e t e r b o r o u g h and D o n c a s t e r and i s p l a n n e d f o r P a d d i n g t o n
and Swindon i n the n e a r ' f u t u r e and l a t e r f o r B a r r y and
Bristol.
A mechanised b u r e a u i s b e i n g formed in
Glasgow and a d d i t i o n a l m e c h a n i s a t i o n a t N e w c a s t l e ,
D a r l i n g t o n and Y o r k i s u n d e r c o n s i d e r a t i o n .
A s p e c i a l advisory panel has been established
b y t h e B r i t i s h T r a n s p o r t Commission t o e n c o u r a g e and
develop e l e c t r o n i c computer techniques throughout the
C o m m i s s i o n s u n d e r t a k i n g s a n d t o a d v i s e on t h e i r
installation.
I t is f u r t h e r charged with i n v e s t i g a t i o n
i n t o t h e a p p l i c a t i o n of e l e c t r o n i c c o n t r o l t e c h n i q u e s t o
t h e o p e r a t i n g d e p a r t m e n t s i n s u c h form as wagon c o n t r o l
and a u t o m a t i c o p e r a t i o n i n m a r s h a l l i n g y a r d s .
T h e c a l c u l a t i o n of t h e i m p r o v e m e n t i n t h e n e t
r e v e n u e s of B r i t i s h R a i l w a y s a s t h e r e s u l t o f t h e
a p p l i c a t i o n of work s t u d y s c h e m e s , m o d e r n o f f i c e m e t h o d s
and o t h e r m e a s u r e s d e s i g n e d t o i m p r o v e p r o d u c t i v i t y ,
s h o u l d b e m a d e on c o n s e r v a t i v e l i n e s .
The p r i m a r y
o b j e c t i s to improve e f f i c i e n c y .
For example, there
i s a t p r e s e n t a s e r i o u s s h o r t a g e of s t a f f t o m a i n t a i n
t h e p e r m a n e n t way:
t h e b i g g a i n t o b e d e r i v e d from t h e
s c h e m e s m e n t i o n e d i n p a r a g r a p h 66 a b o v e i s n o t t h a t t h e y
w i l l s a v e men, b u t t h a t t h e p e r m a n e n t way w i l l b e b e t t e r
maintained.
Then a g a i n , i n t h e M o d e r n i s a t i o n P l a n
c r e d i t has a l r e a d y been taken f o r economies r e s u l t i n g
from i m p r o v e d e q u i p m e n t and f r o m i m p r o v e d m e t h o d s of
o p e r a t i o n and t h i s c r e d i t c a n n o t b e t a k e n t w i c e .
Many
o f t h e a c t i v i t i e s on B r i t i s h R a i l w a y s a r e n o t s u s c e p t i b l e
of i m p r o v e d of i m p r o v e d e f f i c i e n c y s a v e b y a r a d i c a l
change i n o r g a n i s a t i o n ;
f o r example, a p u b l i c road
l e v e l c r o s s i n g c a n n o t b e l o o k e d a f t e r by l e s s t h a n one
a t t e n d a n t u n t i l the law concerning such c r o s s i n g s i s
c h a n g e d ( p a r a g r a p h 78) .
I t is also necessary to bear
w e l l i n m i n d t h e p o i n t m a d e i n p a r a g r a p h 67 a b o v e .
F o r t h e s e a n d o t h e r r e a s o n s of s i m i l a r n a t u r e , t h e
C o m m i s s i o n , w h i l e e x p e c t i n g v e r y i m p o r t a n t r e s u l t s from
t h e m e a s u r e s now i n h a n d t o i m p r o v e p r o d u c t i v i t y , c a n n o t
r e a s o n a b l y a s s e s s the a d d i t i o n a l improvement in n e t
revenue, beyond t h a t taken t o account in the Modernisation
P l a n , a t m o r e t h a n £5m. a y e a r b y 1 9 6 1 .
The i n t r o d u c t i o n
of m e a s u r e s t o i m p r o v e p r o d u c t i v i t y m u s t i n e v i t a b l y l e a d
t o some d i s p l a c e m e n t o f m a n p o w e r , b u t i t i s t h e C o m m i s s i o n ^
i n t e n t i o n to deal with redundancy problems a r i s i n g t h e r e ­
f r o m , b y r e - a b s o r p t i o n and b y n o n - r e p l a c e m e n t of w a s t a g e
i n so f a r as t h i s i s p o s s i b l e .
D .
STATUTORY OBLIGATIONS AND
FREEDOM TO COMPETE
7 1 .
F i r s t among a l l t h e s t a t u t o r y r e s t r i c t i o n s a n d
o b l i g a t i o n s w h i c h h a v e f e t t e r e d t h e o p e r a t i o n s of r a i l ­
w a y s on a s t r i c t l y " e c o n o m i c " b a s i s m u s t r a n k t h e
r e s t r i c t i o n s o n f r e e d o m i n t h e m a t t e r of f i x i n g f a r e s
and c h a r g e s and t h e o b l i g a t i o n t o a f f o r d e q u a l i t y of
treatment to a l l p e r s o n s .
7 2 .
T h e 1953 A c t h a s r e m o v e d t h e p r e v i o u s o b l i g a ­
t i o n t o a f f o r d e q u a l i t y of t r e a t m e n t t o a l l p e r s o n s and
empowered t h e C o m m i s s i o n t o s u b m i t t o t h e T r i b u n a l a new
M e r c h a n d i s e C h a r g e s Scheme g i v i n g them a much l a r g e r
m e a s u r e of c o m m e r c i a l f r e e d o m t h a n h e r e t o f o r e .
The
d r a f t S c h e m e a s s u b m i t t e d l a i d down maximum c a r r i a g e
c h a r g e s more r e l a t e d t o c o s t s , i n p l a c e of S t a n d a r d
C h a r g e s r e l a t e d t o a c l a s s i f i c a t i o n of m e r c h a n d i s e
p r i m a r i l y b a s e d on v a l u e , a n d t h e C o m m i s s i o n w e r e t o
have d i s c r e t i o n as to what t h e y charged w i t h i n t h e s e
maxima.
They would no l o n g e r b e r e q u i r e d to o b t a i n
the T r i b u n a l ' s approval to a l t e r a t i o n s in a c t u a l charges
b e l o w t h e maxima o r t o p u b l i s h a n y a c t u a l c h a r g e s o t h e r
than the maxima.
7 3 .
The C h a r g e s S c h e m e h a s a f t e r l e n g t h y p u b l i c
e n q u i r y b e e n amended b y t h e T r i b u n a l ' s I n t e r i m D e c i s i o n
as f o l l o w s :
w h i l e a g r e e i n g t h e p r i n c i p l e i n g e n e r a l of
maximum c h a r g e s f o r c o n v e y a n c e of t r a f f i c , t h e T r i b u n a l
d e c i d e d t h a t t h e r e s h o u l d b e two e x c e p t i o n s ­
( a ) a n y c o n s i g n m e n t
(b) goods
carried
in
weighing
owners'
100
tons
or
more;
wagons.
In both these instances the Tribunal decided that the
c h a r g e s made m u s t b e " r e a s o n a b l e c h a r g e s " , w h i c h would
on a p p l i c a t i o n b e s e t t l e d b y t h e m .
The T r i b u n a l n o t
only rejected the Commission's proposal for a s i n g l e
s e r i e s o f s c a l e s , b u t l o w e r e d t h e p r o p o s e d maximum
c h a r g e s and p r o v i d e d a s e p a r a t e s e r i e s f o r a l i s t of
named c o m m o d i t i e s n o r m a l l y c a r r i e d i n b u l k ;
and t h e y
a l s o i n t r o d u c e d i n each s e r i e s a l t e r n a t i v e and l o w e r
maximum c h a r g e s f o r g o o d s c o n s i g n e d t o a n d / o r f r o m a
private siding.
71+.
I t f o l l o w s , t h e r e f o r e , t h a t t h e e x t e n t of t h e
commercial freedom f o r which t h e Commission had a s k e d
'. h a s "been a p p r e c i a b l y r e s t r i c t e d b y t h e T r i b u n a l ' s I n t e r i m
Decision,
Nevertheless B r i t i s h Railways w i l l take
a d v a n t a g e of t h e freedom p e r m i t t e d u n d e r t h e scheme t o
reorganise t h e i r freight charging arrangements towards
t h e f o l l o w i n g ends
( a ) t h e e n c o u r a g e m e n t o f t r a f f i c c o n s i g n e d i n l a r g e r q u a n t i t i e s and good wagon l o a d s ; ( b ) t h e e n c o u r a g e m e n t o f r e g u l a r t r a f f i c f o r w h i c h e c o n o m i c a l s e r v i c e s can be a r r a n g e d ;
( c ) t h e a t t r a c t i o n o f g o o d
passing by road, for
distances;
l o a d i n g t r a f f i c , now
l o n g and medium ( d ) t h e a v o i d a n c e o f l o s s o n some o f
distance rail traffic. T h e c o n s e q u e n t c h a n g e s i n t h e p a t t e r n of
railway operations are reflected in the
e s t i m a t e s , q u o t e d a b o v e , of t h e e v e n t u a l
t h e M o d e r n i s a t i o n P l a n and t h e r i g h t t o
w i d e r m e a s u r e o f c o m m e r c i a l f r e e d o m i s ,
i n d i s p e n s a b l e element i n the r e a l i s a t i o n
estimates.
the
shorter t r a f f i c s and
financial
o u t - t u r n of
e x e r c i s e a much
t h e r e f o r e , an
of t h e s e
75.
But the c h a n g e s i n c h a r g i n g a r r a n g e m e n t s w i l l
h a v e t o s t a r t a t a t i m e when r o a d c o m p e t i t i o n i s k e e n e r
and g r e a t e r t h a n e v e r b e f o r e and when t h e s e r v i c e a f f o r d e d
b y t h e r a i l w a y s i s b e l o w t h e e f f i c i e n c y and r e l i a b i l i t y
needed.
A l s o , i t w i l l t a k e some t i m e t o e f f e c t t h e .
c o m p l e t e r e - o r i e n t a t i o n of s e l l i n g p o l i c y and s e l l i n g
methods which i s r e q u i r e d .
Though t h e b e n e f i t s w i l l
emerge s l o w l y , i n the end they w i l l be s u b s t a n t i a l .
How s u b s t a n t i a l , w i l l d e p e n d i n l a r g e d e g r e e on t h e p r i c e
p o l i c y t o b e pursued by t h e Commission i n t h e n e a r f u t u r e .
T h i s i s d i s c u s s e d i n C h a p t e r V.
76,
I n a d d i t i o n t o t h e b e n e f i t s t o be d e r i v e d from
t h e g r e a t e r f r e e d o m of c h a r g i n g , w h i c h b e i t r e m e m b e r o d
h a s y e t t o come i n t o o p e r a t i o n , t h e r e i s a l s o t h e
p o s s i b i l i t y of o b t a i n i n g , w i t h t h e s u p p o r t of t h e
G o v e r n m e n t , r e l i e f from o t h e r o u t d a t e d s t a t u t o r y
obligations. '
77.
As an e x a m p l e t h e c a s e of r o a d b r i d g e s o v e r t h e
r a i l w a y s may b e c i t e d .
Where l i n e s were c o n s t r u c t e d so
a s t o c r o s s e x i s t i n g p u b l i c r o a d s , a n d t h e r o a d was c a r r i e d
o v e r t h e l i n e b y means of a b r i d g e , t h e r a i l w a y companies
came u n d e r a s t a t u t o r y o b l i g a t i o n t o m a i n t a i n n o t o n l y
t h e s t r u c t u r e of t h e b r i d g e , b u t a l s o t h e s u r f a c e of t h e
r o a d o v e r t h e b r i d g e and t h e r a i s e d a p p r o a c h e s .
The
p o s i t i o n in this respect has r a d i c a l l y altered with the
g r o w t h o f m o t o r t r a f f i c on t h e r o a d s a n d t h e c o s t o f
m a i n t a i n i n g t h e s e s u r f a c e s h a s become a heavy l i a b i l i t y .
While t h e s e r e s p o n s i b i l i t i e s a r e b e i n g or have been
t r a n s f e r r e d t o o t h e r A u t h o r i t i e s , t h e Commission remain
responsible for financial contributions.
mm 7 8 .
A n o t h e r e x a m p l e i s t h e c o s t of l e v e l c r o s s i n g s .
W h e r e l i n e s w e r e c a r r i e d a c r o s s p u b l i c r o a d s on t h e
l e v e l , t h e r a i l w a y c o m p a n i e s came u n d e r a s t a t u t o r y
o b l i g a t i o n t o p r o v i d e g a t e s w h i c h , when o p e n e d t o r o a d
t r a f f i c , c o m p l e t e l y f e n c e d i n t h e r a i l w a y , and a l s o t o
p r o v i d e an a t t e n d a n t t o s u p e r i n t e n d t h e c r o s s i n g and t o
open and s h u t t h e g a t e s .
I n many i n s t a n c e s , p a r t i c u l a r l y
at l e v e l crossings adjoining s t a t i o n s , the gates are
c o n t r o l l e d b y a s i g n a l m a n from a box a t the c r o s s i n g ,
b u t t h e r e a r e a l s o v e r y m a n y p u b l i c c r o s s i n g s u p end down
the country at which i t is n e c e s s a r y to provide s p e c i a l
staff.
The c o s t of manning t h e s e c r o s s i n g s a t p r e s e n t
d a y wage r a t e s i s c o n s i d e r a b l e ;
i n a n u m b e r of c a s e s i t
h a s i n c r e a s e d f r o m a b o u t £ 5 0 t o a r o u n d £1+00 a y e a r ,
and t h e t o t a l f i g u r e h a s r i s e n from £ 2 2 0 , 0 0 0 i n 1938 t o
a b o u t £1m. now.
Often, moreover, the staff at these
c r o s s i n g s , t h o u g h i n c o n t i n u o u s a t t e n d a n c e , a r e by no
means b u s i l y employed.
7 9 .
The Commission a l r e a d y h a v e p o w e r s t o s u b s t i t u t e
l i f t i n g b a r r i e r s for gates at public level crossings,
s u b j e c t to the M i n i s t e r ' s consent in each i n d i v i d u a l c a s e .
T h e s e b a r r i e r s , however-, w o u l d l e a d t o no m a j o r e c o n o m i e s
s o l o n g as t h e Commission a r e r e q u i r e d by law t o m a i n t a i n
s t a f f at a l l p u b l i c road c r o s s i n g s .
Economies could b e
e f f e c t e d i f t h e s t a f f at many c r o s s i n g s c o u l d b e removed
by o p e r a t i n g l i f t i n g b a r r i e r s e i t h e r a u t o m a t i c a l l y by
t r a c k c i r c u i t s or r e m o t e l y from t h e n e a r e s t s i g n a l b o x .
An a d a p t a t i o n o f t h e s e m e t h o d s m i g h t a l s o e n a b l e some
s i g n a l boxes at l e v e l c r o s s i n g s to be closed in s l a c k
t r a f f i c hours with resultant economies.
There i s ,
h o w e v e r , n o e x p e r i e n c e of t h e s e m e t h o d s i n t h i s c o u n t r y
a l t h o u g h t h e y a r e widely used a b r o a d .
I t i s n o t even
p o s s i b l e t o t r y them o u t w h i l e t h e l a w r e m a i n s a s i t i s .
8 0 .
The C o m m i s s i o n , t h e r e f o r e , c o n s i d e r t h a t t h e
t i m e h a s now a r r i v e d t o r e v i e w t h e s t a t u t o r y p r o v i s i o n s
which r e q u i r e a t t e n d a n t s at a l l p u b l i c l e v e l c r o s s i n g s .
Any c h a n g e s m u s t h a v e d u e r e g a r d f o r s a f e t y and t h e
Commission a r e a l r e a d y i n t o u c h w i t h the Chief I n s p e c t ­
i n g O f f i c e r of R a i l w a y s on t h e r e l e v a n t p r o b l e m s .
W h i l e t h e C o m m i s s i o n a r e on t h e l o o k o u t f o r
ways of o b t a i n i n g r e l i e f from o b l i g a t i o n s w h i c h h a v e
b e c o m e o u t of d a t e w i t h t h e p a s s a g e o f t i m e , a n d w o u l d
l i k e t o s e e t h i s p r o c e s s s p e e d e d u p , t h e r i g h t s of o t h e r
a u t h o r i t i e s and i n d i v i d u a l s a r e , a s a g e n e r a l r u l e , s o
closely linked with railway obligations that there is
r a r e l y a s h o r t c u t t o f r e e d o m , and p r o g r e s s must i n e v i t a ­
b l y b e r a t h e r slow.
I t i s d i f f i c u l t to assess the f i n a n c i a l b e n e f i t s
t o b e d e r i v e d from t h e p o l i c y of f r e e d o m i n c h a r g i n g and
from r e l i e f from s t a t u t o r y o b l i g a t i o n s .
Making^the
m o s t r e a s o n a b l e a s s u m p t i o n s p o s s i b l e and t a k i n g i n t o
a c c o u n t i n p a r t i c u l a r t h e b e n e f i t s t o b e d e r i v e d from a
l e s s r e s t r i c t e d , more s e l e c t i v e and more a g g r e s s i v e
s e l l i n g p o l i c y and from s u c h a l t e r a t i o n s i n f a r e s and
03
71+.
I t f o l l o w s , t h e r e f o r e , t h a t t h e e x t e n t of t h e
commercial freedom f o r which t h e Commission had a s k e d
'. h a s b e e n a p p r e c i a b l y r e s t r i c t e d b y t h e T r i b u n a l ' s I n t e r i m
Decision,
Nevertheless B r i t i s h Railways w i l l take
a d v a n t a g e of t h e freedom p e r m i t t e d u n d e r t h e scheme t o
reorganise t h e i r freight charging arrangements towards
t h e f o l l o w i n g ends
( a ) t h e e n c o u r a g e m e n t o f t r a f f i c c o n s i g n e d i n
l a r g e r q u a n t i t i e s and good wagon l o a d s ;
( b ) t h e e n c o u r a g e m e n t o f r e g u l a r t r a f f i c f o r
w h i c h e c o n o m i c a l s e r v i c e s can be a r r a n g e d ;
( c ) t h e a t t r a c t i o n o f g o o d l o a d i n g t r a f f i c , now
p a s s i n g b y r o a d , f o r l o n g and medium
distances;
( d ) t h e a v o i d a n c e o f l o s s o n some o f
distance rail traffic.
T h e c o n s e q u e n t c h a n g e s i n t h e p a t t e r n of
railway operations are reflected in the
e s t i m a t e s , q u o t e d a b o v e , of t h e e v e n t u a l
t h e M o d e r n i s a t i o n P l a n and t h e r i g h t t o
w i d e r m e a s u r e of c o m m e r c i a l freedom i s ,
i n d i s p e n s a b l e element i n the r e a l i s a t i o n
estimates.
the
shorter
t r a f f i c s and
financial
o u t - t u r n of
e x e r c i s e a much
t h e r e f o r e , an
of t h e s e
7 5 .
But the c h a n g e s i n c h a r g i n g a r r a n g e m e n t s w i l l
h a v e t o s t a r t a t a t i m e when r o a d c o m p e t i t i o n i s k e e n e r
and g r e a t e r t h a n e v e r b e f o r e and when t h e s e r v i c e a f f o r d e d
b y t h e r a i l w a y s i s b e l o w t h e e f f i c i e n c y and r e l i a b i l i t y
needed.
A l s o , i t w i l l t a k e some t i m e t o e f f e c t t h e .
c o m p l e t e r e - o r i e n t a t i o n of s e l l i n g p o l i c y and s e l l i n g
methods which i s r e q u i r e d .
Though t h e b e n e f i t s w i l l
emerge s l o w l y , i n the end they w i l l be s u b s t a n t i a l .
How s u b s t a n t i a l , w i l l d e p e n d i n l a r g e d e g r e e on t h e p r i c e
p o l i c y t o b e pursued by t h e Commission i n t h e n e a r f u t u r e .
T h i s i s d i s c u s s e d i n C h a p t e r V.
7 6 .
I n a d d i t i o n t o t h e b e n e f i t s t o be d e r i v e d from
t h e g r e a t e r f r e e d o m of c h a r g i n g , w h i c h b e i t r e m e m b e r e d
h a s y e t t o come i n t o o p e r a t i o n , t h e r e i s a l s o t h e
p o s s i b i l i t y of o b t a i n i n g , w i t h t h e s u p p o r t of t h e
G o v e r n m e n t , r e l i e f from o t h e r o u t d a t e d s t a t u t o r y
obligations. '
7 7 .
As an e x a m p l e t h e c a s e of r o a d b r i d g e s o v e r t h e
r a i l w a y s may b e c i t e d .
Where l i n e s were c o n s t r u c t e d so
a s t o c r o s s e x i s t i n g p u b l i c r o a d s , a n d t h e r o a d was c a r r i e d
o v e r t h e l i n e b y means of a b r i d g e , t h e r a i l w a y companies
came u n d e r a s t a t u t o r y o b l i g a t i o n t o m a i n t a i n n o t o n l y
t h e s t r u c t u r e of t h e b r i d g e , b u t a l s o t h e s u r f a c e of t h e
r o a d o v e r t h e b r i d g e and t h e r a i s e d a p p r o a c h e s .
The
p o s i t i o n in this respect has r a d i c a l l y altered with the
g r o w t h o f m o t o r t r a f f i c on t h e r o a d s a n d t h e c o s t o f
m a i n t a i n i n g t h e s e s u r f a c e s h a s become a heavy l i a b i l i t y .
While t h e s e r e s p o n s i b i l i t i e s a r e b e i n g or have been
t r a n s f e r r e d t o o t h e r A u t h o r i t i e s , t h e Commission remain
responsible for financial contributions.
7 8 .
A n o t h e r e x a m p l e i s t h e c o s t of l e v e l c r o s s i n g s .
W h e r e l i n e s w e r e c a r r i e d a c r o s s p u b l i c r o a d s on t h e
l e v e l , t h e r a i l w a y c o m p a n i e s came u n d e r a s t a t u t o r y
o b l i g a t i o n t o p r o v i d e g a t e s w h i c h , when o p e n e d t o r o a d
t r a f f i c , c o m p l e t e l y f e n c e d i n t h e r a i l w a y , and a l s o t o
p r o v i d e an a t t e n d a n t t o s u p e r i n t e n d t h e c r o s s i n g and t o
o p e n and s h u t t h e g a t e s .
I n many i n s t a n c e s , p a r t i c u l a r l y
at level crossings adjoining s t a t i o n s , the gates are
c o n t r o l l e d by a s i g n a l m a n from a box at the c r o s s i n g ,
b u t t h e r e a r e a l s o v e r y m a n y p u b l i c c r o s s i n g s u p and down
t h e c o u n t r y at which i t i s n e c e s s a r y to p r o v i d e s p e c i a l
staff.
The c o s t of manning t h e s e c r o s s i n g s a t p r e s e n t
d a y wage r a t e s i s c o n s i d e r a b l e ;
i n a number of c a s e s i t
h a s i n c r e a s e d f r o m a b o u t £ 5 0 t o a r o u n d £LuOO a y e a r ?
a n d t h e t o t a l f i g u r e h a s r i s e n f r o m £ 2 2 0 , 0 0 0 i n 1938 t o
a b o u t £1m, n o w .
Often, moreover, the staff at these
c r o s s i n g s , though in continuous a t t e n d a n c e , a r e by no
means b u s i l y employed.
7 9 .
The Commission a l r e a d y h a v e p o w e r s t o s u b s t i t u t e
l i f t i n g b a r r i e r s for gates at public level crossings,
subject to the M i n i s t e r s consent in each i n d i v i d u a l c a s e .
T h e s e b a r r i e r s , however-, would l e a d t o no m a j o r economies
so l o n g a s t h e Commission a r e r e q u i r e d by law to m a i n t a i n
s t a f f at a l l p u b l i c r o a d c r o s s i n g s .
Economies could b e
e f f e c t e d i f t h e s t a f f at many c r o s s i n g s c o u l d b e removed
by operating l i f t i n g b a r r i e r s e i t h e r automatically by
t r a c k c i r c u i t s or r e m o t e l y from t h e n e a r e s t s i g n a l b o x .
An a d a p t a t i o n of t h e s e m e t h o d s m i g h t a l s o e n a b l e some
s i g n a l boxes at l e v e l crossings to be closed in s l a c k
t r a f f i c hours with r e s u l t a n t economies.
There i s ,
h o w e v e r , n o e x p e r i e n c e of t h e s e m e t h o d s i n t h i s c o u n t r y
a l t h o u g h they are widely used abroad.
I t i s n o t even
p o s s i b l e t o t r y them o u t w h i l e t h e l a w r e m a i n s a s i t i s .
8 0 .
The C o m m i s s i o n , t h e r e f o r e , c o n s i d e r t h a t t h e
t i m e h a s now a r r i v e d t o r e v i e w t h e s t a t u t o r y p r o v i s i o n s
which r e q u i r e a t t e n d a n t s at a l l p u b l i c l e v e l c r o s s i n g s .
Any c h a n g e s m u s t h a v e d u e r e g a r d f o r s a f e t y a n d t h e
Commission a r e a l r e a d y i n t o u c h w i t h the Chief I n s p e c t ­
i n g O f f i c e r of R a i l w a y s on t h e r e l e v a n t p r o b l e m s .
W h i l e t h e C o m m i s s i o n a r e on t h e l o o k o u t f o r
w a y s of o b t a i n i n g r e l i e f f r o m o b l i g a t i o n s w h i c h h a v e
b e c o m e o u t of d a t e w i t h t h e p a s s a g e o f t i m e , a n d w o u l d
l i k e t o s e e t h i s p r o c e s s s p e e d e d u p , t h e r i g h t s of o t h e r
a u t h o r i t i e s and i n d i v i d u a l s a r e , a s a g e n e r a l r u l e , s o
closely linked with railway obligations that there is
r a r e l y a s h o r t c u t t o f r e e d o m , and p r o g r e s s must i n e v i t a ­
b l y b e r a t h e r slow.
I t is d i f f i c u l t to assess the f i n a n c i a l benefits
t o b e d e r i v e d f r o m t h e p o l i c y of f r e e d o m i n c h a r g i n g a n d
from r e l i e f from s t a t u t o r y o b l i g a t i o n s .
Making^the
most r e a s o n a b l e a s s u m p t i o n s p o s s i b l e and t a k i n g i n t o
account i n p a r t i c u l a r t h e b e n e f i t s t o be d e r i v e d from a
l e s s r e s t r i c t e d , more s e l e c t i v e and more a g g r e s s i v e
s e l l i n g p o l i c y and f r o m s u c h a l t e r a t i o n s i n f a r e s a n d
c h a r g e s ( n e t ) a s may "be f e a s i b l e w i t h i n t h e a m b i t o f
Charging P o l i c y as described in the next c h a p t e r , a
t o t a l i m p r o v e m e n t o f £20m. a y e a r b y 1961 o r 1962 c a n
reasonably be expected.
I t would r e p r e s e n t , i n d e e d ,
a r a t e of i m p r o v e m e n t of l e s s t h a n 1 p e r c e n t , a y e a r ,
o v e r t h e n e x t s i x y e a r s , on t h e p r e s e n t t a k i n g s o f
B r i t i s h Railways.
An i n c r e a s e i n t h i s f i g u r e o f a t
l e a s t a f u r t h e r £5m. b y t h e e n d o f t h e f o l l o w i n g e i g h t
y e a r s would seem a s a f e a s s u m p t i o n .
The C o m m i s s i o n h a v e a l r e a d y a n n o u n c e d t h a t t h e y
w i l l n o t make g e n e r a l i n c r e a s e s i n t h e i r f a r e s a n d c h a r g e s
d u r i n g 1 9 5 6 , p r o v i d e d t h a t a s a r e s u l t of t h e r e - a s s e s s m e n t
o f t h e i r f i n a n c i a l p o s i t i o n now b e i n g m a d e , a c o u r s e o f
action consistent with their statutory obligations.and the
p r o p e r d e v e l o p m e n t of t h e i r u n d e r t a k i n g can b e worked o u t
and a d o p t e d .
Pares and charges were in any case "frozen"
u n t i l t h e e n d o f S e p t e m b e r b y t h e d e c i s i o n s of t h e
Government and t h e Commission t a k e n i n March of t h i s y e a r .
As t o t h e r e m a i n i n g m o n t h s o f t h e y e a r , t h e C o m m i s s i o n
f e l t t h a t on commercial g r o u n d s a l o n e t h e t i m e was u n ­
propitious for general increases in passenger fares or
other charges.
I n r e s p e c t of t h e p o l i c y t o be p u r s u e d
a f t e r t h i s p e r i o d of " f r e e z e " , however? t h e Commission
are presented with several a l t e r n a t i v e s .
F i r s t s having regard to t h e i r duties under the
19^4-7 A c t t h e C o m m i s s i o n m i g h t a t t e m p t t o m e e t t h e p r e s e n t
unbalance, and recoup t h e i r p a s t d e f i c i t s t by i n c r e a s i n g
t h e i r c h a r g e s i n t h e n e a r f u t u r e t o t h e f u l l amount
necessary.
T h e o r e t i c a l l y , an i n c r e a s e producing an
a v e r a g e o f 15 p e r c e n t o n h e a v y r a i l w a y t r a f f i c s l i k e c o a l
a n d m i n e r a l s j a n d 2-g- p e r c e n t o n o t h e r r a i l w a y g o o d s ?
a n i n c r e a s e o f 10 p e r
w o u l d mean a l m o s t £30m. a y e a r ;
c e n t on r a i l w a y p a r c e l s a n d m a i l s b y p a s s e n g e r t r a i n
and a general i n c r e a s e in
w o u l d m e a n a l m o s t £5m. a y e a r ;
r a i l w a y f a r e s o f 10 p e r c e n t w o u l d m e a n £1 2m. a y e a r .
T h e t o t a l o f £U7m. f r o m r a i l w a y s w o u l d s u f f i c e , i n c o n ­
j u n c t i o n with minor i n c r e a s e s elsewhere, not only t o stop
t h e e x i s t i n g gap i n t h e Commission's b u d g e t b u t a l s o t o
leave a small margin over.
5
But B r i t i s h R a i l w a y s a r e faced v/ith s h a r p
c o m p e t i t i o n over a c o n s i d e r a b l e p a r t of t h e i r p a s s e n g e r
and f r e i g h t t r a f f i c s .
Moreover, p u b l i c opinion would
be p a r t i c u l a r l y r e s e n t f u l of any heavy i n c r e a s e s at t h i s
time.
I n t h e l o n g r u n t h e immediate g a i n of r e v e n u e
would p r o b a b l y be p u r c h a s e d a t t h e expense of a s u b s t a n t i a l
c o n t r a c t i o n i n t h e t r a f f i c s o f f e r e d t o t h e Commission.
In o t h e r words, any a t t e m p t t o impose l a r g e i n c r e a s e s i n
t h e i r f a r e s or charges i n t h e n e a r f u t u r e would, so f a r
a s c a n b e e s t i m a t e d a t p r e s e n t , damage t h e C o m m i s s i o n ^
b u s i n e s s t e m p o r a r i l y f o r c e r t a i n , and p o s s i b l y permanently.
As t h e s e c o n d a l t e r n a t i v e o f p o l i c y ? t h e
C o m m i s s i o n m i g h t a t t e m p t t o make a p a r t i a l r e d u c t i o n i n
t h e i r current d e f i c i t by imposing a l l the increases in
f a r e s and c h a r g e s which any p a r t i c u l a r t r a f f i c s would
bear.
However, t h e g e n e r a l o b j e c t i o n s given i n t h e
previous paragraph apply in l e s s e r degree to a p a r t i a l
o p e r a t i o n of t h i s kind.
A l s o , t h e Commission hope t h a t
t h e new scheme o f c h a r g i n g c o n t r o l , t o w h i c h r e f e r e n c e
i s made i n C h a p t e r I V , w i l l b e i n o p e r a t i o n b y t h e m i d d l e
of 1957.
The g r e a t e r c h a r g i n g f r e e d o m t h e r e b y a f f o r d e d ?
i f i n t r o d u c e d a g a i n s t a background of widespread d i s s a t i s ­
f a c t i o n a t t h e l e v e l of f a r e s and c h a r g e s ? would be g i v e n
a b a d s t a r t , a n d much o f i t s b e n e f i t s m i g h t t h u s b e
forfeited.
8 7 .
Looking beyond.the immediate s i t u a t i o n , i t
a b a s i c a s s u m p t i o n of t h i s p a p e r t h a t t h e Commission
should have r e a s o n a b l e charging freedom.
If their
c o s t s s h o u l d r i s e t h e y must b e f r e e t o a d j u s t t h e i r
charges.
There a r e , i n any c a s e , c e r t a i n i n s t a n c e s
where l o c a l or s e l e c t i v e i n c r e a s e s a r e j u s t i f i e d and
s h o u l d b e made.
is
8 8 .
To sum u p , i t i s t o o s o o n y e t t o s a y i n d e t a i l
what s h o u l d b e done a f t e r t h e end of t h e y e a r , a n d i n
g e n e r a l , a p a r t from a d j u s t m e n t s of t h e k i n d mentioned i n
p a r a g r a p h 87 a b o v e , t h e w i s e r p o l i c y t o p u r s u e i n t h e
n e a r f u t u r e i s one of p r i c e r e s t r a i n t - n o t n e c e s s a r i l y
" p r i c e f r e e z i n g " - i n t h e knowledge t h a t t h e r e s u l t s of
t h i s p o l i c y and of t h e c o n s e q u e n t g o o d w i l l w i l l substantially
i m p r o v e t h e p o s i t i o n o f t h e r a i l w a y s w i t h i n t h e n e x t few
y e a r s and p r o t e c t p e r m a n e n t l y t h e whole scope of t h e i r
business.
Any n e t r e v e n u e s o s a c r i f i c e d ,
temporarily,
may b e r e g a r d e d a s a n i n v e s t m e n t w h i c h w i l l n o t o n l y
p r e v e n t an u n d e r m i n i n g of r a i l w a y t r a f f i c s i n a c r i t i c a l
p e r i o d - and a c o n s e q u e n t d e c r e a s e in t h e b e n e f i t s of t h e
Modernisation Plan - but will also help to provide in the
n o t - t o o - d i s t a n t f u t u r e t h e p o s i t i v e f i n a n c i a l improvement
o f many m i l l i o n s of p o u n d s a y e a r a l r e a d y m e n t i o n e d i n
the previous chapter.
CHAPTER VI
:
CORRECTIVE ACTION IN PROGRESS
OTHER A C T I V I T I E S -
8 9 .
I t h a s a l r e a d y "been r e m a r k e d t h a t , o f t h e .
o t h e r a c t i v i t i e s b e l o n g i n g t o t h e Commission, t h e l e a s t ,
s a t i s f a c t o r y from a f i n a n c i a l p o i n t of v i e w a r e London
T r a n s p o r t and the I n l a n d Waterways.
9 0 .
As r e g a r d s L o n d o n T r a n s p o r t , t h e i r o p e r a t i o n s
h a v e i n e a c h y e a r s i n c e 1950 f a i l e d t o m a k e a p r o p e r
c o n t r i b u t i o n t o t h e i n t e r e s t and o t h e r c e n t r a l c h a r g e s
of t h e Commission.
I n t h e r e s u l t , a b o u t £15m. o f t h e
C o m m i s s i o n s a c c u m u l a t e d d e f i c i t o f £70m. a t t h e e n d o f
1955 i s a t t r i b u t a b l e t o L o n d o n T r a n s p o r t .
Though i t i s
g e n e r a l l y a c c e p t e d t h a t London s h o u l d pay i t s way, t h e
d e l a y b e t w e e n i n c r e a s e s i n wage r a t e s and p r i c e l e v e l s
and the subsequent i n c r e a s e s in f a r e s has produced t h i s
l o n g s e r i e s of y e a r l y s h o r t f a l l s ' , and u n l i k e B r i t i s h
R a i l w a y s , London T r a n s p o r t o f f e r s no r e a l p r o s p e c t of
f i n a n c i a l improvement except by i n c r e a s i n g f a r e s .
91*
London T r a n s p o r t i s a l r e a d y a modern and
e f f i c i e n t t r a n s p o r t s y s t e m , and t h e volume of s e r v i c e
i t o f f e r s cannot be reduced s i g n i f i c a n t l y .
Nor,
u n f o r t u n a t e l y , i s t h e r e much p r o s p e c t o f i n c r e a s e s i n
traffic.
With more p r i v a t e m o t o r i n g a t t r a c t i n g customers
away from t h e p u b l i c s e r v i c e s and w i t h i n c r e a s i n g
congestion in the s t r e e t s , which both i n c r e a s e s the cost
and r e d u c e s t h e a t t r a c t i v e n e s s of t h e London T r a n s p o r t
r o a d s e r v i c e s , t h e f u t u r e t r e n d of t r a f f i c i s more l i k e l y
t o c o n t i n u e t h e d e c l i n e of r e c e n t y e a r s .
9 2 .
The C o m m i s s i o n h a v e r e c e n t l y made c e r t a i n
l o c a l a d j u s t m e n t s t o f a r e s i n London.
While t h e y w i l l
a l w a y s e n d e a v o u r t o k e e p f a r e s i n t h e London a r e a a s low
a s p o s s i b l e , c u r r e n t c o s t s must i n f u t u r e b e met b y t h e
c u r r e n t l e v e l of f a r e s .
T h e r e a r e no f u t u r e
expectations
to justify a different policy.
9 3 .
As t o I n l a n d W a t e r w a y s , t h e e f f o r t s of t h e
Commission t o remedy t h e p o s i t i o n a r e well-known.
The
opposition to these e f f o r t s is equally well-known.
The
p o s i t i o n i s now b e i n g i n v e s t i g a t e d b y a n o t h e r C o m m i t t e e
o f I n q u i r y , t h e Bowes C o m m i t t e e , a n d u n t i l t h i s C o m m i t t e e
r e p o r t a n d t h e G o v e r n m e n t a n n o u n c e t h e i r p o l i c y on t h e
f u t u r e of t h e w a t e r w a y s , i t i s n o t p o s s i b l e to s a y what
f u t u r e e a s i n g of t h e f i n a n c i a l p o s i t i o n can b e c o u n t e d on.
I n r e l a t i o n t o t h e s u m - t o t a l of t h e C o m m i s s i o n ^ p r o b l e m
in i t s present magnitude, the r e l i e f w i l l in any case be
m a r g i n a l s however important in i t s e l f .
94*
E f f o r t s w i l l c o n t i n u e t o b e made t o i m p r o v e
t h e f i n a n c i a l r e s u l t s of o t h e r a c t i v i t i e s o f t h e Commission
i n c l u d i n g d o c k s , r o a d p a s s e n g e r and f r e i g h t s e r v i c e s and
h o t e l s a n d c a t e r i n g , b y g r e a t e r e f f i c i e n c y a n d , when
appropriate, increases in charges.
CHAPTER V I I
:
THE FINANCIAL POSITION DURING THE PERIOD OP RECONSTRUCTION AND DEVELOPMENT T h e f o r e g o i n g s e c t i o n s h a v e s u m m a r i s e d some of t h e major f a c t o r s i n t h e f i n a n c i a l and commercial p o s i t i o n of t h e Commission.
This is not the only aspect which m a t t e r s .
Q u e s t i o n s of d e f e n c e and of g e n e r a l s t r a t e g y a r e i n v o l v e d j and q u e s t i o n s of s o c i a l p o l i c y and the public benefit.
The e c o n o m i c s of a p u b l i c s e r v i c e a r e n o t r e f l e c t e d e x c l u s i v e l y i n i t s own p a r t i c u l a r account of p r o f i t and l o s s .
N e v e r t h e l e s s -it i s r e l e v a n t t o e n q u i r e how t h e f i n a n c i a l p r o b l e m o f t h e C o m m i s s i o n w o u l d a p p e a r i f t h e r e s u l t s of t h e remedial measures o u t l i n e d above were t e s t e d by t h e o r d i n a r y c r i t e r i a of commercial finance.
Provided t h a t t h e s e measures a r e given a proper c h a n c e t o f r u c t i f y , a n d on t h e a s s u m p t i o n s s e t o u t a t t h e b e g i n n i n g of t h i s p a p e r , t h e p r o s p e c t i s t h a t t h e annual n e t r e v e n u e a c c o u n t of t h e Commission w i l l b e i n b a l a n c e b y 1961 o r 1 9 6 2 .
This is a f t e r charging a l l remuneration o n c a p i t a l b o r r o w i n g s i n f u l l , o l d and. n e w , s a v e o n l y i n t e r e s t on d e f i c i t s .
By 1970 t h e r e s h o u l d b e n o t o n l y a b a l a n c e , b u t a s u r p l u s o f £50m. a y e a r o v e r a n d a b o v e t h e cost of s e r v i c i n g the c a p i t a l . T h e s e p r o s p e c t s f o r t h e f u t u r e m u s t b e compared, with the immediate outlook.
I t i s c l e a r from what h a s b e e n s a i d i n t h i s p a p e r t h a t f o r t h e n e x t few y e a r s , t h e p e r i o d of r e c o n s t r u c t i o n and d e v e l o p m e n t , t h e r e v e n u e s of t h e Commission a r e n o t l i k e l y t o cover t h e i n t e r e s t charges in full.
F o r t h i s t h e r e a r e two m a i n r e a s o n s ( a ) I n t h e e a r l y s t a g e s t h e r i s i n g y i e l d f r o m
m o d e r n i s a t i o n w i l l l a g some y e a r s b e h i n d t h e
i n c r e a s e d i n t e r e s t c h a r g e s on t h e c a p i t a l
works s e t i n t r a i n .
The s o w i n g must b e i n
a d v a n c e of t h e r e a p i n g .
( b ) I t w i l l b e t w o o r t h r e e y e a r s b e f o r e t h e
r e s u l t s o f t h e o t h e r m e a s u r e s now i n p r o g r e s s
c a n p r o d u c e a r e a l l y s u b s t a n t i a l e f f e c t on t h e
p r e s e n t r u n n i n g r a t e of d e f i c i t .
A commercial concern faced with a s i m i l a r
s i t u a t i o n , b e i n g f i n a n c e d b y e q u i t y c a p i t a l , would probably
a s k i t s s h a r e h o l d e r s t o f o r g o r e m u n e r a t i o n of t h e i r capital
d u r i n g t h e p e r i o d of r e c o n s t r u c t i o n .
If the shareholders
w e r e s a t i s f i e d t h a t t h e u n d e r t a k i n g w a s f u n d a m e n t a l l y sound
and t h a t the f u t u r e revenue p r o s p e c t s were s u f f i c i e n t l y
good, t h e y would be l i k e l y t o a g r e e .
The Commission, h o w e v e r , a r e f i n a n c e d e n t i r e l y
b y f i x e d i n t e r e s t c a p i t a l which must c o n t i n u e t o be serviced.
T h e y a r e n o t p e r m i t t e d t o b o r r o w money t o c o v e r t h e i r
deficits.
E v e n i f t h e y w e r e , i t w o u l d o n l y mean a f u r t h e r
i n c r e a s e i n t h e a n n u a l d e f i c i t and a s t i l l - m o u n t i n g accum­
u l a t e d d e f i c i t t o be c a r r i e d forward in the balance sheet.
By s u c h a p i l i n g o n o f b u r d e n s b e y o n d t h e a b i l i t y of t h e
Commission t o meet them d u r i n g t h i s p e r i o d , f i n a n c i a l
d i s c i p l i n e would b e undermined;
t h e a f f a i r s of t h e
C o m m i s s i o n w o u l d b e made t o a p p e a r I n a n u n r e a s o n a b l y
h o p e l e s s l i g h t , w h i c h "by i t s e f f e c t on p u b l i c o p i n i o n
would hamper them c o m m e r c i a l l y a n d b y i t s e f f e c t on t h e i r
own s t a f f w o u l d w e a k e n m o r a l e .
The p h y s i c a l r e c o v e r y o f
B r i t i s h Railways ought, on t h e c o n t r a r y , t o b e matched b y
a stimulus- to m o r a l e , an improvement i n p u b l i c e s t e e m ,
and a firm f i n a n c i a l d i s c i p l i n e d i r e c t e d towards c l e a r
financial objectives.
1 0 0 .
There i s ample c o v e r b o t h of r e v e n u e and of
c a p i t a l f o r d e a l i n g w i t h t h i s s i t u a t i o n i n t h e way i n
w h i c h , i t has been s u g g e s t e d , a commercial concern would
deal with i t .
The b a l a n c e s h e e t a t 3 1 s t D e c e m b e r , 1953?
was one of g r e a t i n h e r e n t s t r e n g t h , d e s p i t e t h e d e f i c i t s
accumulated.
The c a p i t a l a s s e t s , e x c l u d i n g g o o d w i l l , h a d
a w r i t t e n down b o o k v a l u e o f o v e r £ 1 , 5 0 0 m . ;
their real
v a l u e t o d a y i s d e p e n d e n t on t h e i r e a r n i n g p o w e r , no d o u b t ,
a n d t h i s a g a i n must d e p e n d m a i n l y on t h e f a r e s a n d c h a r g e s
which a r e p e r m i t t e d and on t h e b u r d e n s of p u b l i c o b l i g a t i o n
which are c a r r i e d ;
b u t t h e replacement cost of the t o t a l
i n v e s t m e n t , i n t e r m s o f c u r r e n t money v a l u e s , c a n b e p u t
a t w e l l o v e r £4,000m.
I t i s not proposed to w r i t e r e ­
valued asset figures into the books, as has occasionally
b e e n done e l s e w h e r e ? b u t i f t h e a s s e t s w e r e so w r i t t e n u p ,
t h e n e t a s s e t s would b e t h r e e t i m e s a s l a r g e a s t h e
c a p i t a l ' l i a b i l i t i e s ( 1 . e. t h e B r i t i s h T r a n s p o r t Stock i n
i s s u e ) o f £-1,444m.
1 0 1 .
The p r o s p e c t i v e r e v e n u e r e s u l t s a r e i l l u s t r a t e d
b y t h e g r a p h s i n A p p e n d i x D.
The e f f e c t o f t h e t i m e - l a g
i n t h e f r u c t i f y i n g of new c a p i t a l e x p e n d i t u r e i s s e e n on
c u r v e A, w h i c h shows t h a t d u r i n g t h e n e x t few y e a r s t h e r e
w i l l b e , n a t u r a l l y and i n e v i t a b l y , a s l i g h t burden ( n e t )
rather than a benefit, but that thereafter there will be
a n e t a n n u a l b e n e f i t r i s i n g t o a t l e a s t £45m. a y e a r a f t e r
p a y i n g a l l i n t e r e s t on t h e c a p i t a l e x p e n d i t u r e i n v o l v e d .
On c u r v e B i s s e e n t h e e f f e c t o f t h e r e m a i n i n g m e a s u r e s now
in progress.
A f t e r an i n i t i a l worsening of t h e p o s i t i o n ,
t h e e x i s t i n g d e f i c i t i s r a p i d l y o v e r h a u l e d , and i s t u r n e d
i n t o a n e t b e n e f i t o f £5m.
T a k i n g t h e two c u r v e s t o g e t h e r ,
by t h e c l o s e of the 1960's t h e r e i s a t o t a l s u r p l u s revenue
o f £50m. a y e a r ( a f t e r c h a r g i n g t o r e v e n u e a l l i n t e r e s t
e x c e p t on d e f i c i t s ) b u t t h e c r i t i c a l p e r i o d of r e c o n s t r u c t i o n
a n d d e v e l o p m e n t t e r m i n a t e s much e a r l i e r a n d t h e C o m m i s s i o n
would p r o b a b l y " c r o s s t h e l i n e " from a n n u a l d e f i c i t t o
a n n u a l s u r p l u s i n 1961 o r 1 9 6 2 .
The p o s i t i o n a t t h e
t h r e e m a j o r p o i n t s o f t i m e shown i n t h e c u r v e s may b e
i l l u s t r a t e d i n t h e f o l T o w i n g fignree
:­
1961
or
1962 £m.
December
1956
£m.
Annual r a t e of d e f i c i t
at starting point
(excluding interest
on d e f i c i t s and
f i n a n c e of
Modernisation Plan)
- kO
Improved c o n t r i b u t i o n s
from A c t i v i t i e s o t h e r
t h a n B r i t i s h Railway
I n t e r e s t on
Modernisation
borrowings
Total
Note
- 1+0
. - 1+0
.
Improved c o n t r i b u t i o n from B r i t i s h Railways ( C h a p t e r IV) ( a ) M o d e r n i s a t i o n
( S e c t i o n A)
( b ) P r u n i n g S e r v i c e s
( S e c t i o n B)
( c ) P r o d u c t i v i t y
( S e c t i o n C)
( d ) Freedom
( S e c t i o n D)
less:
1970
. £m.
-
i
5.
i
-
* 35
t
-
*
t
-
*
5.
o r
^
5
,
*
-
a
5
,
^
H
1
n
0
2
5
i-f5
^
^
0
-
2
7, ^ 2
-
2
4 38
*
+
3
4- i+8
S a y , B a l a n c e d
S a y , 4- 5 0
- i+2
8
3
: As s t a t e d i n p a r a g r a p h 9 6 , t h e f i g u r e s
i n t h e above t a b l e do n o t p r o v i d e f o r
i n t e r e s t on a c c u m u l a t e d d e f i c i t s .
This, i f c a l c u l a t e d a t t h e r a t e of 5
p e r c e n t , p e r annum, would r e s u l t in a
c h a r g e o f a b o u t £6m. a y e a r o n t h e
d e f i c i t a t t h e end of 1956, r i s i n g t o
a b o u t £20m. f o r t h e y e a r 1961 o r 1962
a n d f a l l i n g a g a i n t o a b o u t £10m. f o r
t h e y e a r 1970.'
I t w i l l be seen t h a t t h e u l t i m a t e revenue p r o s p e c t s ,
w h i c h a r e v e r y s a t i s f a c t o r y , d e p e n d m a i n l y on m o d e r n i s a t i o n ,
b u t when i t i s r e m e m b e r e d , f o r e x a m p l e , t h a t a s t e a m
s t o p p i n g t r a i n ( s t o p p i n g t r a i n s c o v e r some 8 0 m i l l i o n
t r a i n m i l e s a y e a r ) h a s a movement c o s t of a p p r o x i m a t e l y
ten s h i l l i n g s a m i l e , whereas in favourable conditions
t h e m u l t i p l e u n i t d i e s e l h a s a movement c o s t o f o n l y a
t h i r d o f t h i s f i g u r e , t h e m a g n i t u d e of t h e economies t o
be derived from modernisation w i l l b e understandable.
I t may b e a d d e d t h a t t h e f i n a n c i a l e x p e c t a t i o n s o f t h e
Modernisation Plan have not been f a l s i f i e d by any of t h e
d e v e l o p m e n t p r o j e c t s t a c k l e d s i n c e 1954.
1 0 2 .
There is., t h e r e f o r e , ample scope f o r a rocon­
s t r u c t i o n of the Commission's f i n a n c e s .
Alternatively,
t h e r e i s ample c o v e r f o r an o p e r a t i o n b y which t h e Revenue
Account of t h e Commission, d u r i n g t h e n e x t few y e a r s of
development and r e c o n s t r u c t i o n s should be r e l i e v e d
t e m p o r a r i l y of t h e o b l i g a t i o n t o meet t h e e x c e p t i o n a l
c h a r g e s ( p a r t l y of a q u a s i - c a p i t a l n a t u r e , p a r t l y
l e g a c i e s from t h e p a s t ) f a l l i n g upon i t d u r i n g t h i s
time.
These amounts a r e r e p r e s e n t e d by t h e shaded
a r e a s s h o w n i n A p p e n d i x D.
I n t o t a l s o m e £200m. w o u l d
b e a c c u m u l a t e d i n s u s p e n s e b y 1961 o r 1 9 6 2 , t o w h i c h m u s t
b e a d d e d t h e d e f i c i t o f a b o u t £120m. t o b e c a r r i e d f o r w a r d
a t t h e end o f 1956.
T h e s e a r e l a r g e sums b u t t h e y a r e
not l a r g e compared w i t h t h e l a t e r s u r p l u s e s which s h o u l d
b e m o r e t h a n s u f f i c i e n t t o a m o r t i z e any. a m o u n t s s o h e l d i n
suspense over a reasonable period.
Nor a r e t h e y l a r g e i n
r e l a t i o n to. t h e u n d e r t a k i n g a s a w h o l e .
103,
I n t h i s s i t u a t i o n t h e Commission u r g e n t l y
recommend t h a t some f i n a n c i a l p l a n s h o u l d b e a d o p t e d w h i c h ,
w h i l e i t a v o i d s s u b s i d y , w i l l p l a c e t h e i r o r g a n i s a t i o n on
a f i r m , sound b a s i s d u r i n g t h e s e c r i t i c a l y e a r s of r e c o n ­
struction.
They e x p r e s s l y r e q u e s t t h a t a n y r e l i e f
t e m p o r a r i l y a c c o r d e d t o them i n r e l a t i o n t o t h e i r immediate
o b l i g a t i o n s s h o u l d b e s t r i c t l y l i m i t e d i n time and amount.
10h,
The j u s t i f i c a t i o n f o r t h i s recommendation i s
r e p r e s e n t e d b y t h e f o r e c a s t s g i v e n i n t h i s i')aper.
In a
l o n g - r a n g e a s s e s s m e n t of t h i s n a t u r e t h e r e a r e n e c e s s a r i l y
many i m p o n d e r a b l e s .
The f o r e c a s t s a r e s u b j e c t t o t h e
basic assumptions stated at the outset;
they could be
upset by f a c t o r s beyond t h e Commissions c o n t r o l .
Never­
t h e l e s s . t h e Commission a r e c o n f i d e n t t h a t i n g e n e r a l
terms t h e i r assessment of t h e f u t u r e outlook i s r e l i a b l e
and t h a t i t r e p r e s e n t s a p r o p e r b a s i s f o r t h e f o r m u l a t i o n
of p o l i c y a t t h i s t i m e .
1 3 SEP 1956
APPENDIX
THE PROGRAMME FOR RAILWAY MODERNISATION
1.
The f o l l o w i n g s e c t i o n s d e a l w i t h t h e
programme of m o d e r n i s a t i o n works and w i t h t h e associated
s c h e d u l e of p r o d u c t i o n of e q u i p m e n t .
For c o n v e n i e n c e , t h e programme i s d i v i d e d
under t h e main h e a d i n g s of e n g i n e e r i n g a c t i v i t y
(a)
Electrification.
(h)
The L o c o m o t i v e B u i l d i n g
Programme.
(c)
(d)
(e)
T h e C a r r i a g e a n d Wagon B u i l d i n g
Civil Engineering.
Signal Engineering.
Programme.
In fact a l l these a c t i v i t i e s a r e interdependent,
and i n most p h a s e s of m o d e r n i s a t i o n work, o v e r l a p .
For
e x a m p l e , i n a n e l e c t r i f i c a t i o n s c h e m e , a l l come i n t o
p l a y a n d t h e r a t e o f c o m p l e t i o n may h e g o v e r n e d b y t h e
p a c e a t which c i v i l and s i g n a l e n g i n e e r i n g work can be
c a r r i e d o u t , r a t h e r than by t h e r a t e of supply and
committal t o s e r v i c e of e l e c t r i c a l equipment and r o l l i n g
stock.
N a t u r a l l y , t h e p l a n s t h a t h a v e b e e n made l a c k
d e f i n i t i o n when r e f e r r e d t o t h e l a t e r s t a g e s , t e n y e a r s
o r more a h e a d .
Concentration has been given to planning the
work t h a t must be c a r r i e d o u t d u r i n g t h e n e x t s i x y e a r s .
But t h e u l t i m a t e o b j e c t i v e s o f t h e M o d e r n i s a t i o n P l a n
h a v e b e e n b o r n e i n mind t h r o u g h o u t .
2.
Electrification
On 6 t h M a r c h , 1 9 5 6 , t h e C o m m i s s i o n p u b l i s h e d
t h e i r d e c i s i o n t o a d o p t t h e 25kV A . C . s y s t e m f o r f u t u r e
e l e c t r i f i c a t i o n , t h r o u g h o u t B r i t i s h R a i l w a y s s a v e on
t h o s e s e c t i o n s of t h e S o u t h e r n Region where t h e e x i s t i n g
660v. D.C. s y s t e m w o u l d b e e x t e n d e d .
Energetic steps
were a t once t a k e n , i n c o n j u n c t i o n with t h e manufacturing
i n d u s t r y , t o p u t i n hand t h e d e s i g n , development and
s u p p l y of t h e new e q u i p m e n t r e q u i r e d , and n o t i f i c a t i o n
was g i v e n t o t h e C e n t r a l E l e c t r i c i t y A u t h o r i t y c o n c e r n i n g
t h e f i r s t r e q u i r e m e n t s f o r t h e supply of power.
A p r e l i m i n a r y programme f o r t h e c o m p l e t i o n of
a l l t h e e l e c t r i f i c a t i o n schemes c o n t a i n e d i n t h e Plan
has been worked o u t .
This takes into consideration the
time t h a t i s r e q u i r e d to develop and t e s t in s e r v i c e the
c o m p l e t e l y new f o r m s o f e q u i p m e n t a n d r o l l i n g s t o c k
r e q u i r e d f o r e l e c t r i f i c a t i o n b y t h e 25kV A . C , s y s t e m , t h e
r a t e a t which t h e equipment and r o l l i n g s t o c k can b e
manufactured, i n s t a l l e d and p u t i n t o s e r v i c e , and t h e
r a t e a t which t h e v e r y l a r g e volume of a s s o c i a t e d C i v i l
and S i g n a l E n g i n e e r i n g work can b e c a r r i e d o u t .
The p r o v i s i o n a l programme of c o m p l e t i o n
i s as follows : -
dates
London M i d l a n d R e g i o n (25kV A . C . S y s t e m ) .
Mid 1 9 5 8 . S l a d e Lane J u n c t i o n ( M a n c h e s t e r )
t o Wilmslow ( T e s t S e c t i o n ) . M a n c h e s t e r t o Orewe.
Mid 1 9 5 9 . R e m a i n d e r of Main L i n e e l e c t r i f i c a t i o n , Euston to Manchester and L i v e r p o o l . (Tentative)
E a s t e r n R e g i o n (25kV A.G. S y s t e m , e x c e p t
where o t h e r w i s e shown).
S h e n f i e l d - Southend (1500v.
January,
D.C. S y s t e m )
Mid 1 9 5 8 .
C o n v e r s i o n of L i v e r p o o l S t r e e t ,
Chelmsford, Southend S e c t i o n s from D. C. t o A, C. S y s t e m . E n f i e l d - C h i n g f o r d , H e r t f o r d and
Bishop's Stortford. L o n d o n -Tilbury and Southend
Chelmsford t o I p s w i c h and
Coastal Branches.
K i n g ' s Cross? Moorgate, H i t c h i n
and L e t c h w o r t h .
Mid 1959. S c o t t i s h R e g i o n ( 25kV A. C. S y s t e m ) .
Glasgow S u b u r b a n ,
Stage I.
N o r t h of C l y d e .
S t a g e I I . S o u t h of C l y d e .
Southern Region (660v. D . C
1957.
C o l c h e s t e r - C l a c t o n (25kV.
A.C. System) (Test S e c t i o n ) .
E a s t e r n and N o r t h E a s t e r n R e g i o n s
K i n g ' s C r o s s - York and L e e d s
1967.
Mid 1 9 6 0 . Mid 1 9 6 1 .
By S t a g e s up t o 1965. (Tentative)1962.
( T e n t a t i v e ) 1970.
1960.
1962.
System)
E x t e n s i o n of e l e c t r i f i e d l i n e s
t o Ramsgate, Dover, Folkestone and H a s t i n g s ( v i a A s h f o r d ) . 1962. The programme h a s b e e n l a i d down t o p r o v i d e f o r
work t o p r o c e e d a t t h e most r a p i d r a t e w h i c h t h e combined
c a p a c i t y of t h e R a i l w a y s a n d o f p r i v a t e I n d u s t r y i s
estimated to allow.
The r a t e of e l e c t r i f i c a t i o n a t p r e s e n t p l a n n e d
b u i l d s up t o a p e a k i n 1962 and t h e r e a f t e r d e c r e a s e s .
At t h e p e a k of p r o d u c t i o n i t w i l l b e n e c e s s a r y t o
commission e l e c t r i f i e d s i n g l e t r a c k at t h e r a t e of 1 ,000
m i l e s p e r annum, a n d t o p l a c e i n s e r v i c e a t l e a s t 200
e l e c t r i c l o c o m o t i v e s a n d 900 e l e c t r i c m u l t i p l e u n i t t r a i n
c o a c h e s p e r annum.
After 1962, i t i s estimated t h a t c a p a c i t y w i l l
b e a v a i l a b l e f o r u n d e r t a k i n g e l e c t r i f i c a t i o n works i n
a d d i t i o n t o those provided for in the Plan.
The Commission
have under c o n s i d e r a t i o n p r o p o s a l s by which advantage­
c o u l d b e t a k e n of t h i s , so a s t o e x p l o i t t o t h e f u l l
t h e g r e a t o p e r a t i o n a l and economic b e n e f i t s t h e Railways
w i l l d e r i v e from a w i d e r e x t e n s i o n of e l e c t r i c t r a c t i o n .
3*
The L o c o m o t i v e B u i l d i n g
(a)
Steam Locomotives
Programme
:
The C o m m i s s i o n h a v e a l r e a d y a n n o u n c e d t h a t no new
express passenger or suburban steam locomotives
w i l l b e b u i l t a f t e r t h e 1956 b u i l d i n g programme.
A f u r t h e r 8k h e a v y f r e i g h t a n d 61 m i x e d t r a f f i c
s t e a m l o c o m o t i v e s w i l l be b u i l t d u r i n g 1957 and
e a r l y i n 1958? c o m p l e t i n g e x i s t i n g programmes.
Pew, i f a n y ,
t h e r e a f t er.
(b ) E l e c t r i c
steam locomotives w i l l be
Locomotives
built
:
E l e c t r i c l o c o m o t i v e s , now i n t h e d e v e l o p m e n t s t a g e ,
w i l l b e s u p p l i e d by m a n u f a c t u r e r s d u r i n g 1958 i n
s m a l l numbers i n p r o t o t y p e form.
Thereafter,
a f t e r f i n a l designs have been s e t t l e d , production
w i l l r a p i d l y b e s t e p p e d up t o r e a c h t h e p e a k o f
o v e r 200 p e r annum d u r i n g 1 9 6 1 .
(c)
Diesel
Shunting Locomotives
:
T h e r e a r e a t p r e s e n t i n u s e on B r i t i s h R a i l w a y s
510 d i e s e l s h u n t i n g l o c o m o t i v e s .
This t o t a l w i l l
b e i n c r e a s e d t o a b o u t 900 l o c o m o t i v e s on c o m p l e t i o n
of a u t h o r i s e d programmes i n 1958.
The P l a n e n v i s a g e s a f u r t h e r 1,200 s h u n t i n g l o c o ­
m o t i v e s b e i n g r e q u i r e d t o r e p l a c e t h e 1,500 s t e a m
s h u n t i n g locomotives which w i l l s t i l l then remain.
P r o g r a m m e s now i n p r e p a r a t i o n p r o v i d e f o r t h e s u p p l y
o f a b o u t 700 d i e s e l l o c o m o t i v e s , d u r i n g t h e p e r i o d
1 9 5 8 - 1 9 6 2 , a n d i f p o s s i b l e t h e r a t e of s u p p l y w i l l
be a c c e l e r a t e d .
By 1 9 6 2 t h e p l a n s p r o v i d e
shunters in service.
for
about
1,600
diesel
T h e r e a f t e r t h e r e m a i n d e r of t h e d i e s e l l o c o m o t i v e s
r e q u i r e d to dispense with steam shunting a l t o g e t h e r
w i l l be obtained as r a p i d l y as circumstances w i l l
allow.
C o n s i d e r a b l e s a v i n g s v / i l l flow from t h i s t r a n s ­
formation.
A p a r t from i n s t a n t a v a i l a b i l i t y o f f e r e d
by t h e d i e s e l s h u n t e r , and t h e small l o s s of o p e r a t i n g
time r e q u i r e d f o r s e r v i c i n g , i t can be o p e r a t e d by
o n e man.
(d.) Main L i n e D i e s e l L o c o m o t i v e s
:
O r d e r s h a v e b e e n p l a c e d f o r 174 m a i n l i n e
l o c o m o t i v e s a t a c o s t of £11.4 m i l l i o n . .
w i l l commence t o w a r d s t h e e n d of 1957.
These have been a l l o c a t e d
London M i d l a n d
Eastern
Western
Southern
t o Regions
65
80
14
-15
as
diesel
Delivery
follows
A l t h o u g h t h e f i r s t c o s t of d i e s e l l o c o m o t i v e s i s
t h r e e t o f o u r t i m e s t h a t of s t e a m l o c o m o t i v e s of
comparable power, d e p r e c i a t i o n i s a small item in
t h e t o t a l c o s t of p r o v i d i n g l o c o m o t i v e h a u l a g e .
D i e s e l l o c o m o t i v e s can c o v e r l a r g e m i l e a g e s w i t h o u t
t h e f r e q u e n t and l e n g t h y a b s e n c e s from s e r v i c e r e ­
q u i r e d b y steam l o c o m o t i v e s f o r f u e l l i n g s e r v i c e and
m a i n t e n a n c e s , a n d much l o w e r o p e r a t i n g c o s t s a r e
p o s s i b l e w h e n f u l l a d v a n t a g e i s t a k e n of t h e i r
capacities.
The f i r s t f l e e t of m a i n l i n e d i e s e l l o c o m o t i v e s i s
t o be put i n t o i n t e n s i v e o p e r a t i o n , under careful
o b s e r v a t i o n , a n d i s i n t e n d e d t o b e t h e s u b j e c t of a
thorough and s e l e c t i v e t r i a l .
E s s e n t i a l d a t a w i l l be o b t a i n e d i n t h e s h o r t e s t
p o s s i b l e t i m e t o e n a b l e t h e Commission t o p l a c e
o r d e r s f o r l a r g e numbers of l o c o m o t i v e s i n s t a n d a r d
t y p e s , s p e c i f y i n g d e s i g n s which can b e depended
upon t o g i v e t h e s e r v i c e t h e y r e q u i r e .
Until these t r i a l s
intend to r e s t r i c t
small numbers.
h a v e b e e n . c o m p l e t e d , t h e Commission
f u r t h e r orders to comparatively
By 1 9 6 1 , h o w e v e r , i t i s e x p e c t e d t h a t a n n u a l o r d e r s
w i l l r e a c h a l e v e l of a b o u t 200 l o c o m o t i v e s and t h a t
t h i s r a t e of p r o d u c t i o n w i l l be r e q u i r e d t o c o n t i n u e
each y e a r f o r an i n d e f i n i t e p e r i o d .
The C a r r i a g e
a n d Wagon B u i l d i n g
(a) Passenger Rolling
Stock
Programme.
:
D u r i n g t h e p e r i o d o f s e v e n y e a r s e n d i n g i n December
1962, i t i s expected t h a t a t o t a l of about 20,000
c o a c h i n g v e h i c l e s of a l l k i n d s v / i l l b e c o n s t r u c t e d ,
r e p l a c i n g about 25,000 e x i s t i n g v e h i c l e s , including
a l l t h e r e m a i n i n g w o o d e n - b o d i e d c o a c h e s , some 1 4 , 0 0 0
i n number.
The p r o g r a m m e i s b a s e d upon a s u b s t a n t i a l i n c r e a s e i n
t h e r a t e of r e p l a c e m e n t of v e h i c l e s of o b s o l e t e t y p e ,
which a t t h e p r e s e n t r a t e would have t o be r e t a i n e d
in s e r v i c e for a f u r t h e r four or f i v e
years.
The programme c o v e r s u n i t s o f a l l t y p e s , a n d a p a r t
from l o c o m o t i v e h a u l e d s t o c k ? i n c l u d e s e l e c t r i c
m u l t i p l e u n i t s t o c k , and d i e s e l m u l t i p l e u n i t
s t o c k of v a r i e d d e s i g n s .
(i)
Multiple Unit
Electric
Stock
D u r i n g t h e p e r i o d e n d i n g i n 1962 a t o t a l o f
i+,500 e l e c t r i c m u l t i p l e u n i t v e h i c l e s w i l l
he r e q u i r e d t o cover t h e needs of e l e c t r i f i ­
c a t i o n of t h e M a n c h e s t e r - C r e w e l i n e ? w i t h
e x t e n s i o n s towards Euston? and of t h e o t h e r
e l e c t r i f i c a t i o n schemes i n S o u t h - e a s t Essex?
E a s t Kent? Glasgow? t h e K i n g ' s Gross s u b u r b a n
l i n e s ? and extensions of t h e e x i s t i n g
e l e c t r i f i c a t i o n to Ipswich and c o a s t a l branches.
The m a j o r i t y o f t h e s t o c k w i l l b e o f t h e o p e n
suburban t y p e .
Special attention is being
g i v e n t o t h e development of a h i g h s t a n d a r d of
r i d i n g q u a l i t y ? and t h e s p e c i a l requirements
of t h e s u b u r b a n o r s h o r t d i s t a n c e p a s s e n g e r
are b e i n g s t u d i e d i n r e l a t i o n t o i n t e r n a l
design.
D u r i n g most of t h e p e r i o d ? a r a t e of p r o d u c t i o n
o f 900 v e h i c l e s a y e a r w i l l b e r e q u i r e d .
The f i r s t s u p p l i e s o f p r o t o t y p e u n i t s f o r
s e r v i c e o n l i n e s e l e c t r i f i e d b y t h e 25kV A . C .
system a r e expected t o be a v a i l a b l e for t r i a l s
i n t h e l a t e r months of 1957.
(ii)
Multiple
Unit Diesel
Vehicles
The M o d e r n i s a t i o n P l a n e n v i s a g e d 4 , 6 0 0
of t h i s t y p e b e i n g p l a c e d i n s e r v i c e .
vehicles
Contracts have already been placed in railway
s h o p s a n d w i t h m a n u f a c t u r e r s ? f o r 2,1+01? w h i c h
a r e e x p e c t e d t o b e c o m p l e t e d i n 1958.
The f o l l o w i n g t a b l e g i v e s d e t a i l s of t h e
s e r v i c e s t o which t h e s e v e h i c l e s have been
Two h u n d r e d a n d s e v e n t y - t w o
allocated.
vehicles are already in service.
I t i s a n t i c i p a t e d t h a t t h e remainder of t h e
4*600 v e h i c l e s c o v e r e d b y t h e P l a n w i l l b e
i n s e r v i c e b e f o r e t h e e n d o f 19,61.
DIESEL MULTIPLE UNIT VEHICLES ALLOCATION FOP PERIOD ENDING DECEMBER 1 9 5 8 . Operating
Region
Type a n d
Service
Motor Cars Trailer
Cars Inter-City
Scottish
Glasgow-Edinburgh
31 15 Western
Birmingham-Swansea
12 6
Scottish
Glasgow-Ayr-Girvan
44 22 Suburban
( B r i s t o l Area
(London A r e a
( S . Yifales A r e a
( C a r d i f f Area
( B i r m i n g h a m Area
20 28 30 90 36 10 14 11 43 18 62
37
37
25
19
48
62 37 37 25 19 44
31
78
62
63
42 31 78 62 39
7
18
7
82
206
7
13 7
58
117
34
17 36
56
10
62
31
18 9
5
29 21 Western
Eastern
North Eastern
Cross Country or
Branch
(East Anglia
(Norwich
(Lincoln
(Cambridge
(Colchester
,West R i d i n g
.Newcastle-Middles­
brough-Carlisle
,Hull Area
' York-Leeds-Scarboro.
^County Durham
' O t h e r N . E . schemes
k
London
Midland
[North Wales
J/. Cumberland
"Bury-Bacup
B i r m i n g h a m schemes
M a n c h e s t e r schemes
Derby-LeicesterNottingham
i
Western
(Birmingham A r e a
"Bristol
(London
S. Wales
O t h e r schemes
Diesel
Southern
Electric
(London-Hastings
(Hampshire
GRAND TOTAL The t r a i n s d e s c r i b e d , a b o v e ? w i t h t h e e x c e p t i o n
of t h o s e r e q u i r e d f o r t h e London-Hastings s e r v i c e ?
a r e b u i l t t o a number of b a s i c d e s i g n s ? and a r e
f i t t e d with u n d e r - f l o o r engines and mechanical or
hydraulic transmissions.
The i n t e r n a l d e s i g n o f t h e c a r s
suit local requirements.
is adjusted
to
D e v e l o p m e n t w o r k i s n o w p r o c e e d i n g on t w o f u r t h e r
t y p e s of d i e s e l t r a i n s of r a d i c a l l y d i f f e r i n g
c h a r a c t e r i s t i c s ? one f o r u s e i n h i g h speed? l u x u r y ?
main l i n e s e r v i c e s ? and the other f o r o p e r a t i o n i n
l i g h t l y u s e d b r a n c h l i n e s w h e r e economy of r u n n i n g
cost i s t h e prime c o n s i d e r a t i o n .
The h i g h s p e e d l u x u r y t r a i n w i l l r u n b e t w e e n l a r g e
c i t i e s and w i l l contain a l l that i s best t o offer
f o r t h e comfort and a m e n i t y of t h e p a s s e n g e r .
It
i s e x p e c t e d t h a t a few of t h e s e t r a i n s w i l l be in
o p e r a t i o n t o w a r d s t h e e n d o f 1958? a n d t h e i r
f u r t h e r i n t r o d u c t i o n w i l l d e p e n d u p o n t h e way i n
which t h e y a r e received by the t r a v e l l i n g p u b l i c .
A l i g h t r a i l car? powered with a s i n g l e u n d e r - f l o o r
d i e s e l e n g i n e ? a n d d e s i g n e d t o a c h i e v e maximum
e c o n o m y i n r u n n i n g a n d m a i n t e n a n c e c o s t s may p r o v e
o f g r e a t v a l u e ? s i n c e some r a i l s e r v i c e s i n r u r a l
areas? a t present running a t a loss greater than
can be c o u n t e r - b a l a n c e d b y t h e u s e of p r e s e n t t y p e s
o f d i e s e l t r a i n s ? may t h e r e b y b e p r e s e r v e d .
The C o m m i s s i o n i n t e n d t o c a r r y o u t e x t e n s i v e
p r a c t i c a l t r i a l s w i t h such v e h i c l e s in a number of
r u r a l s e r v i c e s throughout the country? giving
p a r t i c u l a r a t t e n t i o n t o t h e c h a n g i n g n e e d s of t h e
c o u n t r y p a s s e n g e r ? and t o economic o p e r a t i o n i n
all its aspects.
I t i s h o p e d t o commence t h e
t r i a l s i n 1957.
(iii)
Locomotive Hauled
Stock
W h a t e v e r may b e t h e t r e n d i n f a v o u r o f m u l t i p l e
u n i t e x p r e s s t r a i n s ? t h e need w i l l continue to
haul long distance t r a f f i c by locomotives? e i t h e r
e l e c t r i c o r d i e s e l ? a n d f o r many y e a r s ? s t e a m .
D u r i n g t h e p e r i o d 1956/1962? a b o u t 7,700
way ed l o c o m o t i v e h a u l e d c o a c h e s f o r m a i n
operation will be built.
gang­
line
New s t a n d a r d c o a c h e s a r e b e i n g d e v e l o p e d w h i c h
w i l l p r o v i d e v e r y much i m p r o v e d p a s s e n g e r
accommodation? i n which s p e c i a l a t t e n t i o n has
been paid to
Smooth r i d i n g .
Comfortable seating.
A t t r a c t i v e decor.
H e a t i n g , V e n t i l a t i o n and L i g h t i n g .
R e d u c t i o n of n o i s e .
Improved t o i l e t f a c i l i t i e s .
Cleanliness.
I t i s e x p e c t e d t h a t v e h i c l e s of improved
w i l l b e g i n t o a p p e a r d u r i n g 1957.
design
New a n d i m p r o v e d t y p e s o f R e s t a u r a n t
Cars a r e b e i n g d e v e l o p e d , and i t i s
a f i v e - y e a r programme of r e p l a c e m e n t
p r e s e n t s t o c k w i l l commence t o w a r d s
1957. i n v o l v i n g t h e c o n s t r u c t i o n of
600 v e h i c l e s .
and B u f f e t
intended that
of t h e
t h e end. o f
a f l e e t of
D u r i n g t h e 1956/62 p e r i o d a programme of
c o n s t r u c t i o n w i l l be undertaken covering a
f u r t h e r 2 , 8 0 0 v e h i c l e s of v a r i o u s t y p e s , c l a s s e d
as coaching v e h i c l e s , such as l u g g a g e ' v a n s , f i s h
v a n s , m a i l vans and t h e l i k e .
(b) Freight
Rolling
( i ) Mineral
Stock
Vfagons
The p l a n p r o v i d e s f o r t h e r e p l a c e m e n t of a l l
r e m a i n i n g low c a p a c i t y t i m b e r - b o d i e d c o a l wagons
by a l l - s t e e l wagons of h i g h e r c a p a c i t y .
Existing
c o n t r a c t s f o r m a n u f a c t u r e of t h e 1 6 - t o n s t e e l
w a g o n w i l l , b y t h e e n d o f 1957 h a v e p r o v i d e d
B r i t i s h R a i l w a y s w i t h a t o t a l f l e e t of 3 2 0 , 0 0 0 o f
this type.
About 190,000 low c a p a c i t y t i m b e r ­
b o d i e d wagons w i l l r e m a i n .
These w i l l be r e ­
p l a c e d b y 2l4-i-ton s t e e l wagons t o t h e e x t e n t t h a t
traders
terminal f a c i l i t i e s will permit, but it
h a s become a p p a r e n t t h a t t h e i r u s e w i l l be l i m i t e d
d u r i n g t h e p e r i o d of t h e M o d e r n i s a t i o n P l a n .
It
i s t h e r e f o r e n e c e s s a r y t o c o n s t r u c t a wagon o f
s l i g h t l y lower capacity;
21/22-tons? to give as
wide a use as p o s s i b l e .
1
S u c h a w a g o n i s now b e i n g
designed.
P l a n s a r e b e i n g made t o b u i l d n u m b e r s of h i g h
c a p a c i t y w a g o n s , l a r g e l y o f t h e new 2 1 / 2 2 - t o n t y p e
i n a l o n g t e r m programme commencing i n 1958, w i t h
a t a r g e t of t h e c o m p l e t e r e p l a c e m e n t of t h e 190,000
o l d w a g o n s b y 1966 b y a r e d u c e d n u m b e r o f h i g h
c a p a c i t y wagons.
S i m i l a r l y , wagons f o r t h e t r a n s p o r t of i r o n ore
w i l l b e of h i g h e r c a p a c i t y , and w h e r e i t i s e c o n o m i c
and d e s i r a b l e t o do so i n t h e i n t e r e s t s of t h e
t r a d e r and B r i t i s h R a i l w a y s , s p e c i a l wagons w i t h
h i g h a x l e l o a d i n g and w i t h l i m i t e d r o u t e a v a i l a b i l i t y
w i l l b e b u i l t to be o p e r a t e d i n c i r c u i t working.
(ii) General Merchandise
Wagons
Under t h i s h e a d i n g , wagons w i l l b e b u i l t i n a n n u a l
programmes t o meet t h e c h a n g i n g n e e d s of i n d u s t r y ?
and i n a d d i t i o n t o v e h i c l e s of t h e s t a n d a r d t y p e s ?
wagons a r e b e i n g , and w i l l c o n t i n u e t o be d e s i g n e d
of a s p e c i a l i s e d c h a r a c t e r for the c a r r i a g e of
s p e c i f i c t y p e s o f t r a f f i c , e . g. c e m e n t i n b u l k ?
s t e e l s t r i p c o i l , p a l l e t i s e d consignments? c o n t a i n e r s .
The p l a n s p r o v i d e f o r a t o t a l of 255?O00 w a g o n s
t y p e s t o b e b u i l t d u r i n g t h e p e r i o d 1956/70.
of
all
9
sit - 9 Containers
The d e s i g n o f c o n t a i n e r s i s "being r e v i e w e d ? a n d
i t i s expected that there w i l l be considerable
d e v e l o p m e n t i n t h i s t y p e of t r a f f i c .
I t i s p r o b a b l e t h a t a n a v e r a g e o f 5*000 c o n t a i n e r s
a year will be constructed during the period
"
. 1956/62.
(iii)
Continuous
B r a k e s on F r e i g h t
Trains
The C o m m i s s i o n h a v e d e c i d e d t o a d o p t t h e v a c u u m
b r a k e as s t a n d a r d f o r f r e i g h t r o l l i n g stock? and
to f i t brakes to a l l stock as quickly as p o s s i b l e .
The r a t e o f f i t t i n g
of f a c t o r s , n o t a b l y
is dependent
:­
upon a
number
( a ) T h e r a t e a t w h i c h t h e n e c e s s a r y e q u i p m e n t
can be p r o v i d e d by i n d u s t r y and.by r a i l w a y
,shops;
ijyi;:.:
( b ) The r a t e a t which t h e equipment can b e
f i t t e d i n t o wagons, and o t h e r n e c e s s a r y
m o d i f i c a t i o n s made; and
( c ) T h e r a t e a t w h i c h t h e w a g o n s c a n b e
r e l e a s e d f r o m t r a f f i c a n d moved t o t h e
workshops where f i t t i n g i s t o take p l a c e .
T h e o p e r a t i o n o f f r e i g h t t r a i n s a t s p e e d s u p t o 60
m i l e s p e r hour, e n t a i l s m o d i f i c a t i o n s t o v a r i o u s
t y p e s o f wagon a p a r t from f i t t i n g of b r a k e s .
For
example, i t i s necessary to close couple a l l freight
stock running a t t h e s e high speeds, and t h i s w i l l
e n t a i l t h e p r o v i s i o n of s c r e w t y p e c o u p l i n g s a n d
new b u f f e r s .
M i n e r a l wagon o p e r a t i o n a t e x p r e s s s p e e d s r e q u i r e s
. . , t h e l a r g e r m i n e r a l wagons t o b e f i t t e d w i t h r o l l e r
bearings.
T h i s w i l l . i n v o l v e t h e f i t t i n g o f some
600,000 r o l l e r b e a r i n g a x l e b o x e s t o e x i s t i n g
wagons.
A r r a n g e m e n t s must a l s o b e made t o p r o v i d e f o r t h e ­
m a i n t e n a n c e of t h e m e c h a n i c a l b r a k e equipment and
f o r t e s t i n g i n m a r s h a l l i n g y a r d s and goods d e p o t s
a s w e l l a s i n v/orks and o u t s t a t i o n s .
Taking a l l t h e s e c o n s i d e r a t i o n s i n t o a c c o u n t , and
h a v i n g r e g a r d to t h e numbers and v a r y i n g t y p e s of
, v e h i c l e i n v o l v e d , t h e programme f o r f i t t i n g
continuous brakes to a l l f r e i g h t stock has been
d e s i g n e d i n i t i a l l y t o cover a p e r i o d of t e n y e a r s ,
but i t i s hoped t h a t t h i s p e r i o d might be reduced,
a n d e v e r y e f f o r t t o t h i s end w i l l b e m a d e .
"2
The p r e l i m i n a r y programme of f i t t i n g
follows:-
(iv)
is
as
Year
Fitting to
Existing
Wagons
By new
Building
T o t a l Number
of Wagons
t o "be f i t t e d
1957
1958
1959
1960
1961
1962
1963
196U
1965
1 966
25,000
47,500
47,500
47,500
. 47 * 5.00.
47,500
47,500
47,500
47,500
47,500
17,000
28,000
24,000
19,000
19,500
19,000
18,000
15,000
10,000
10,000
42,000
75,500
71 , 5 0 0
66,500
67,000
66 , 5 0 0
65,000
62,500
57,500
57,500
.
Development
The Commission h a v e r e c e n t l y a u t h o r i s e d t h e
e s t a b l i s h m e n t , a t F a v e r d a l e Works, D a r l i n g t o n ,
of a development u n i t f u l l y equipped t o d e a l
w i t h a l l a s p e c t s o f C a r r i a g e and Wagon development.
T h i s u n i t w i l l i n i t i a t e and c a r r y out development
on a w i d e r a n g e of c a r r i a g e and wagon s u b j e c t s ,
i n some c a s e s i n c o l l a b o r a t i o n w i t h i n d u s t r y .
It
w i l l cover, such m a t t e r s a s : ­
( a ) D e s i g n a n d p r o t o t y p e p r o d u c t i o n of new
d e s i g n s o f r o l l i n g s t o c k and c a r r i a g e
bogies;
( b ) D e s i g n a n d e x p e r i m e n t a l p r o d u c t i o n o f
i m p r o v e d a x l e b o x e s , d r a w g e a r , b u f f e r s and
brake d e t a i l s ;
( c ) D e v e l o p m e n t s of new m e t h o d s of h e a t i n g
a n d v e n t i l a t i n g of c o a c h i n g s t o c k ;
( d ) E n t i r e l y new c o n c e p t i o n s which m i g h t b e
i n s p i r e d b y t h e a v a i l a b i l i t y of new
m a t e r i a l s o r new p r o c e s s e s .
I t i s e x p e c t e d t h a t t h i s u n i t would be a b l e t o
s t a r t i t s work w i t h i n t w e l v e m o n t h s , a n d w i l l b e
b u i l t up t o b e f u l l y o p e r a t i v e i n two y e a r s .
C i v i l E n g i n e e r i n g Work
The- f o l l o w i n g p a r a g r a p h s o u t l i n e t h e main
f e a t u r e s of t h e work : ­
(a)
Works A s s o c i a t e d w i t h
Electrification
The p r i n c i p a l w o r k s r e q u i r e d f o r e l e c t r i f i c a t i o n
a r e p r e p a r a t i o n of t h e t r a c k f o r h i g h e r s p e e d s ,
s t r u c t u r a l a n d t r a c k a l t e r a t i o n s a t s t a t i o n s and
j u n c t i o n s , b r i d g e and t u n n e l a l t e r a t i o n s to p r o ­
vide for e l e c t r i c a l c l e a r a n c e s , and the construction
of d e p o t s f o r t h e new m o t i v e power and r o l l i n g
stock.
Work i s . a l r e a d y i n h a n d on t h e s t r e n g t h e n i n g of
t h e r o a d b e d and e x t e n s i v e r e - b a l l a s t i n g and
a d d i t i o n a l r e l a y i n g of t r a c k as n e c e s s a r y on t h e
l i n e s i n c l u d e d i n t h e f i r s t s t a g e s of e l e c t r i f i c a t i o n .
S u r v e y s a r e i n hand t o . d e t e r m i n e t h e d e t a i l s of
the s t r u c t u r a l a l t e r a t i o n s required to give
e l e c t r i c a l c l e a r a n c e s j and s i t e w o r k , a l r e a d y
commenced t o c o v e r t h e e a r l y s t a g e s , w i l l b e a
c o n t i n u i n g xorocess t h r o u g h o u t t h e s p r e a d of
electrification.
( b ) O t h e r T r a c k Works
I n a d d i t i o n t o t h e t r a c k improvement work r e q u i r e d
on l i n e s t o b e e l e c t r i f i e d , s i m i l a r work must b e
c a r r i e d o u t on o t h e r m a i n l i n e s t o meet t h e h i g h e r
speeds t h a t w i l l be a t t a i n e d by e x p r e s s d i e s e l
h a u l e d t r a i n s and h i g h s p e e d m u l t i p l e u n i t d i e s e l
trains.
Goods l i n e s must a l s o b e improved t o a l l o w f o r
t h e f a s t e r s p e e d s o f f r e i g h t o p e r a t i o n made
p o s s i b l e by t h e c o n t i n u o u s b r a k e .
Orders have been p l a c e d f o r a d d i t i o n a l heavy
mechanised equipment t o a s s i s t i n t h i s work.
By
1 9 5 8 t h e r e w i l l b e a v a i l a b l e , f o r s e r v i c e 100
b a l l a s t t a m p i n g m a c h i n e s and 16 b a l l a s t c l e a n i n g
machines.
Orders have a l s o been p l a c e d for four e l e c t r i c
r a i l w e l d e r s w h i c h w i l l b e d e l i v e r e d i n 1957 and
1958.
When t h e s e h a v e b e e n r e c e i v e d a n d i n s t a l l e d
i n d e p o t s , a n e x t e n s i v e programme o f i n s t a l l a t i o n
of l o n g welded r a i l s w i l l be u n d e r t a k e n .
W i t h t h e e l i m i n a t i o n of t h e r a i l j o i n t , t r a c k
m a i n t e n a n c e c o s t s w i l l be r e d u c e d , and smoother
r i d i n g of t r a i n s ' w i l l r e s u l t .
( c ) B u i l d i n g , S t r u c t u r a l a n d O t h e r Heavy
C o n s t r u c t i o n Work
A w i d e r a n g e of work i s t o b e u n d e r t a k e n , a p a r t
from t h a t a s s o c i a t e d w i t h E l e c t r i f i c a t i o n ,
The p l a n n i n g of b u i l d i n g work i s
c h a r a c t e r , a n d must b e b u i l t up
item.
Hence i t i s n o t p o s s i b l e
g i v e a c o m p r e h e n s i v e p i c t u r e of
work c o v e r e d b y t h e P l a n .
involved in
i n d e t a i l , i t e m by
at t h i s stage to
t h e w h o l e of t h e
B u i l d i n g work w i l l i n c l u d e s t a t i o n r e c o n s t r u c t i o n
a n d i m p r o v e m e n t s , t h e c o n s t r u c t i o n of new d e p o t s
f o r d i e s e l l o c o m o t i v e s and m u l t i p l e u n i t t r a i n s
a n d o t h e r r o l l i n g s t o c k , a n d t h e p r o v i s i o n of new
freight terminals.
Much of t h i s work i s a l r e a d y
i n hand.
Important s t a t i o n r e c o n s t r u c t i o n s have been
a u t h o r i s e d a t P e t e r b o r o u g h , P l y m o u t h , B a n b u r y and
Cannon S t r e e t a n d many o t h e r schemes a r e i n t h e
design stage.
New m a i n t e n a n c e d e p o t s f o r d i e s e l m u l t i p l e u n i t
t r a i n s a r e a u t h o r i s e d at L i n c o l n , Norwich,
S t r a t f o r d , Glasgow, Ayr, Edinburgh, D a r l i n g t o n ,
S t . L e o n a r d s , T y s e l e y and C a r d i f f ( C a n t o n ) .
A model l a y o u t o f a d i e s e l t r a i n d e p o t h a s b e e n
e v o l v e d , and d e t a i l s h a v e b e e n i s s u e d f o r t h e
g u i d a n c e of d e s i g n e r s .
C o n s i d e r a b l e changes a r e f o r e s e e n i n t h e d e s i g n
and l a y o u t o f f r e i g h t t e r m i n a l s t o f a c i l i t a t e
i n t e r c h a n g e of g o o d s a n d c o n t a i n e r s from r o a d t o
r a i l , and t h e d e v e l o p m e n t of model d e s i g n s i s
under close study.
Over £ 1 4 m i l l i o n h a s a l r e a d y b e e n a u t h o r i s e d f o r
t h e c o n s t r u c t i o n of new m a r s h a l l i n g y a r d s , w h i c h ,
f o r t h e C i v i l E n g i n e e r s , i n v o l v e heavy earthwork
and e x t e n s i v e t r a c k l a y i n g .
The most i m p o r t a n t works so f a r a u t h o r i s e d a r e
t h o s e a t R i p p l e Lane ( B a r k i n g ) , M i l l e r h i l l
( E d i n b u r g h ) , T h o r n t o n ( F i f e ) , P e r t h , Temple M i l l s
and P o r t T a l b o t .
A h e a v y programme of b r i d g e r e c o n s t r u c t i o n i s
c o n t e m p l a t e d , t o overcome a r r e a r s which s t i l l r e ­
main a s t h e r e s u l t of t h e w a r , a n d t h e s t e e l
s h o r t a g e s which followed.
The p l a n s a r e d e s i g n e d a s f a r a s p o s s i b l e , t o
c a r r y o u t b r i d g e r e n e w a l s on l i n e s t o b e e l e c t r i f i e d
i n a d v a n c e of t h e o p e n i n g of t h e new s e r v i c e s , so
a s t o a v o i d p l a c i n g s p e e d r e s t r i c t i o n s on them a t
a l a t e r d a t e , n e c e s s a r y ' d u r i n g t h e p e r i o d of
reconstruction.
I t i s e x p e c t e d t h a t t h e l e v e l of e x p e n d i t u r e
on t h e s e works w i l l b u i l d up t o a l e v e l of a b o u t £25
m i l l i o n a y e a r b y 1959 a n d w i l l s u b s e q u e n t l y b e
m a i n t a i n e d a t t h i s l e v e l u n t i l t h e l a t e r s t a g e s of t h e
Plan have been reached.
In a c h i e v i n g t h i s o u t p u t , c o n s i d e r a b l e
a s s i s t a n c e w i l l b e r e q u i r e d from C o n s u l t a n t s and
C o n t r a c t o r s , a n d t h e y a r e a l r e a d y b e i n g employed t o an
ever i n c r e a s i n g extent.
6. S i g n a l E n g i n e e r i n g Y\fork
The work of t h e S i g n a l E n g i n e e r may b e considered under the following f i v e heads : ­
(a)
(b)
(c)
(d)
(e)
Work a s s o c i a t e d w i t h E l e c t r i f i c a t i o n .
I n s t a l l a t i o n of A u t o m a t i c T r a i n C o n t r o l .
S i g n a l l i n g of new M a r s h a l l i n g Y a r d s .
O t h e r S i g n a l M o d e r n i s a t i o n Works.
Telecommunications.
Q
6
The f o l l o w i n g p a r a g r a p h s o u t l i n e t h e main
f e a t u r e s o f t h e work : ­
( a ) Work A s s o c i a t e d w i t h
Electrification
The e l e c t r i f i c a t i o n of a l i n e of r a i l v r a y h a s a
v e r y c o n s i d e r a b l e e f f e c t on t h e r e q u i r e m e n t s , f o r
signalling.
There i s not only the n e c e s s i t y t o
t a k e measures to avoid e l e c t r i c a l i n t e r f e r e n c e
and p h y s i c a l o b s t r u c t i o n t o t h e s i g h t i n g of
semaphore s i g n a l s ? b u t in a d d i t i o n t h e r e a r e t h e
changes n e c e s s a r y to c a t e r f o r the i n c r e a s e d
d e n s i t y and s p e e d o f t r a f f i c w h i c h e l e c t r i f i c a t i o n
makes p o s s i b l e .
For t h e s e r e a s o n s i t i s g e n e r a l l y
t h e p r a c t i c e to c a r r y out a complete r e - s i g n a l l i n g
of t h e l i n e w h i l e i t i s b e i n g e l e c t r i f i e d .
This
i n v o l v e s t h e p r o v i s i o n of t r a c k c i r c u i t i n g t h r o u g h ­
o u t , t h e r e p l a c e m e n t o f s e m a p h o r e s i g n a l s b y a much
g r e a t e r number of c o l o u r l i g h t s and t h e c e n t r a l i s ­
a t l o n of t r a f f i c c o n t r o l a t l a r g e c e n t r e s in the
i n t e r e s t s of l a b o u r economy and f r e e t r a f f i c f l o w .
The programme of work f o r s i g n a l l i n g i s i n
accordance with the o v e r a l l t i m e - t a b l e for e l c c t r i ­
f i c a t i o n a l r e a d y s e t o u t i n S e c t i o n 2,
( b ) I n s t a l l a t i o n of A u t o m a t i c T r a i n
Control
P l a n s a r e b e i n g made f o r a u t o m a t i c t r a i n c o n t r o l
t o b e p r o v i d e d on t h e m a i n t r a f f i c r o u t e s t h r o u g h ­
out t h e country.
During the period 1956-1962, the following
w i l l be equipped
routes
London ( K i n g ' s C r o s s ) v i a N e w c a s t l e t o E d i n b u r g h .
London ( E u s t o n ) t o Glasgow ( i n c l u d i n g M a n c h e s t e r
and Liverpool).
E d i n b u r g h t o Glasgow.
London ( W a t e r l o o ) t o Bournemouth a n d E x e t e r ,
London ( L i v e r p o o l S t r e e t ) t o Norwich,
( c ) S i g n a l l i n g of New M a r s h a l l i n g : Yards
A p a r t from t h e s i g n a l l i n g and c o m m u n i c a t i o n s s y s t e m
r e q u i r e d i n t h e y a r d s , t h e programme a l l o w s f o r t h e
i n s t a l l a t i o n of a u t o m a t i c b r a k i n g e q u i p m e n t t o
c o n t r o l t h e s p e e d of wagons d u r i n g g r a v i t y s h u n t i n g .
Considerable developments a r e a n t i c i p a t e d in t h i s
f i e l d , i n t h e p r o v i s i o n of a u t o m a t i c c o n t r o l
d e v i c e s f o r t h e b r a k e s , so e l i m i n a t i n g human e r r o r ,
and e n a b l i n g s h u n t i n g t o c o n t i n u e i n fog and o t h e r
adverse conditions.
( d ) O t h e r S i g n a l l i n g M o d e r n i s a t i o n Works
Work programmed u n d e r t h i s h e a d i n g c o v e r s t h e
p r o v i s i o n of t r a c k c i r c u i t i n g and c o l o u r l i g h t
s i g n a l l i n g i n a l a r g e number of l o c a l i t i e s , w h e r e
the e x i s t i n g s i g n a l l i n g systems are inadequate to
d e a l e f f i c i e n t l y w i t h t h e h i g h e r s p e e d s and
f r e q u e n c y of t h e f u t u r e s e r v i c e s .
I n a d d i t i o n , t h e schemes p r o v i d e f o r more e c o n o m i c a l
o p e r a t i o n b y t h e r e p l a c e m e n t of n u m b e r s of outmoded
m a n u a l l y o p e r a t e d s i g n a l b o x e s b y s i n g l e modern
power b o x e s .
( e ) The t e l e c o m m u n i c a t i o n s . s y s t e m - n e t w o r k of B r i t i s h
R a i l w a y s i s i n a d e q u a t e t o d e a l w i t h modern
conditions.
The p l a n s p r o v i d e f o r a n a u t o m a t i c "on demand"
s e r v i c e between a l l important p o i n t s .
Many y e a r s
w i l l e l a p s e b e f o r e t h e work can b e c o m p l e t e d .
A
commencement w i l l b e made b y t h e c o n c e n t r a t i o n ,
i n i m p o r t a n t l o c a l i t i e s , of s e v e r a l e x c h a n g e s i n t o
one a u t o m a t i c e x c h a n g e , and b y i n c r e a s i n g t e l e p h o n e
r o u t e c a p a c i t y where m o s t n e e d e d .
I n t e n s e study i s being given to the extended use
of t e l e p r i n t e r s e r v i c e s , and- o f t h e a p p l i c a t i o n o f
e l e c t r o n i c d e v i c e s t o t h e g a t h e r i n g , s t o r a g e and
p r e s e n t a t i o n of c o n t r o l i n f o r m a t i o n .
I t i s e x p e c t e d t h a t t h e l e v e l of e x p e n d i t u r e
on S i g n a l E n g i n e e r i n g work w i l l . b u i l d up t o a b o u t £12
m i l l i o n a y e a r by 1958 a n d t h e r e a f t e r c o n t i n u e a t a b o u t
t h e same l e v e l .
This w i l l r e q u i r e a considerable
e x p a n s i o n i n t h e o u t p u t of S i g n a l l i n g M a n u f a c t u r e r s
a n d C o n t r a c t o r s , who a r e a w a r e o f t h e n e e d .
APPENDIX 'B'
BRITISH RAILWAYS INVESTMENT
(Provisional
EXPENDITURE
Estimate)
£m.
. .4.
SO
'\
c
\
*
A
A
-
40
B
30
'1
B
S
y
/
S
20
IO
1956
1957
£90m.
£120m.
1958
1959
I960
1961
1962
£14-Om.
£I40m.
Annual T o t a l s ( p r o v i s i o n a l e s t i m a t e s )
Key:
£135m.
£UOm.
£135m.
A F r e i g h t S e r v i c e s - Wagons, M a r s h a l l i n g Y a r d s , Goods Stations, etc, B
P a s s e n g e r and P a r c e l s S e r v i c e s - Coaching v e h i c l e s
( i n c l u d i n g d i e s e l and e l e c t r i c m u l t i p l e u n i t s t o c k ) ,
Stations, etc.
C P r o v i s i o n of E l e c t r i c and D i e s e l T r a c t i o n - Locomotives,
E l e c t r i c a l Equipment of L i n e , e t c .
D
Notes: (1 )
(2)
Track and S i g n a l l i n g Improvements.
The f i g u r e s c h a r t e d above cover a l l e x p e n d i t u r e t o
be i n c u r r e d on Investment ( i . e . g r o s s f i x e d c a p i t a l
f o r m a t i o n as d e f i n e d f o r t h e purposes of t h e N a t i o n a l
Income and Expenditure s t a t i s t i c s ) .
The e s t i m a t e s assume no changes i n p r i c e l e v e l s .
APPENDIX
'C
WORK STUDY : SCHEMES UNDER CONSIDERATION
Below a r e g i v e n d e t a i l s o f Work S t u d y s c h e m e s
implemented or under i n v e s t i g a t i o n : ­
(1 ) SCHEMES IMPLEMENTED.
C i v i l E n g i n e e r i n g Department .
Parley District Bridge Repairs
Darlington C e n t r a l R e c l a m a t i o n Depot
Exmouth J u n c t i o n Concrete Depots,
Hawick
Lowestoft
Newton H e a t h
Taunton
York
We s t Ha r t 1 epo o l C r e o s o t e Depot
Lenton M a t e r i a l s Depots
Northampton New Works S e c t i o n P e r m a n e n t Way M a i n t e n a n c e Rubbish Tip
S t a t i o n P a i n t i n g Gangs
S w i t c h & C r o s s i n g Shops
Workshops) Signal Engineering
Waterloo
Woking D i s t r i c t ( h Schemes)
Brighton & Purley Districts
( o n e scheme i n e a c h )
Shewalton
Southern Region
Peterborough
Angerstein
Redbridge
S t a n n i n g l e y & Low Moor
Gateshead (Park Lane)
Department
S i g n a l Works
Reading
(.2) SCHEMES AUTHORISED BUT NOT YET FULLY IMPLEMENTED
C i v i l Engineering Department
E n g i n e e r i n g Depot
West B a l i n g
P r e - a s s e m b l y Depot
Newlands
Gas? W a t e r & M a i n t e n a n c e
Southern Region
Fitters
Glasgow ( N o r t h ) D i s t r i c t
P e r m a n e n t Way M a i n t e n a n c e
( P i l o t Scheme)
S i g n a l E n g i n e e r i n g Department
O u t s i d e m a i n t e n a n c e and
Reading D i s t r i c t
i n s t a l l a t i o n work
York
S & T Workshops
( 3 ) SCHEMES UNDER INVESTIGATION
C i v i l Engineering Department
. District Organisation
Headquarters Offices
Materials Depots'
Rubbish Tip
K i n g ' s Cross
York Castleton Fazakerley Barlow P e r m a n e n t Way M a i n t e n a n c e
Schemes
Motherwell Mit cham
New C r o s s G a t e
Three Bridges
Selected places in a l l Regions (Unloading
Wagons) P o i n t & C r o s s i n g Shops &
Depots ( Continued). ..
(3)
(Gontd. )
Workshops
Workshops & P r o v i s i o n of F a c i l i t i e s for Stockyard
Workshops O r g a n i s a t i o n .
Signal
Engineering
Doncaster
Norwich D i s t r i c t i n
connection with
Lowestoft Harbour
Works M a i n t e n a n c e
Department
M a i n t e n a n c e & Renewal
Office Organisation
Mechanical
Stratford
Glasgow South Area
R e a d i n g S i g n a l Works
Work
& Electrical
Engineering
Swindon Birmingham London, S.R.
L o c o m o t i v e Main Works
Outdoor Machinery Maintenance
Outdoor Machinery Design and
Specification Section
Outdoor Machinery S e r v i c e s
Technical & Administrative
Offices
M o t i v e Powex
1
M o t i v e Power
Depot C M . & E. E.
Rugby
Doncaster
Swindon
Peterborough
S p r i n g s Branch
Department
M a i n Works
Outdoor Machinery S e r v i c e s
Technical & Administrative Offices
Wagon R e p a i r D e p o t s ) Swindon Rugby Swindon
Peterborough
Tyne Dock Simonside Department
C a t a l o g u e s y s t e m of s t o r e s
material
O f f i c e s and S t o r e s
Signal & Telegraph Stores
Commercial
Goods
Department
C a r r i a g e & Wagon
Stores
Department
Region
Department
Depot
Bi-Regional
Operatinp;
Eastern
Swindon
Reading
Organisation
Gloucester
Oxford
Birmingham
District
Department
F r e i g h t T r a i n Working & Yard
Shunting (investigation into
p o s s i b i l i t y of i n t r o d u c i n g
t r a i n and s h u n t i n g bonus
scheme)
Carriage Cleaning Accountant's
Scottish
Region
Scottish
Region
Scottish
Region
Department
Stores
Accounting
Marine
Department
Marine
Workshops Newhaven
Appendix D"
FINANCIAL
POSITION OF COMMISSION
1957/ 1970
(A) Yield of Modernisation
Improvement in earnings
before additional
interest
Net effect
Additional interest
(B) Yield of other measures, after
deducting present rate of deficit