A Startling Railway Claim
Page 31
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ASUGGESTION by the railway protagonists is that, dating from the year 1933, the railways should be entitled to all the additional traffic which has resulted since then from the improvement in the trade and industry of this country. Such a startling claim can leave one only gasping. Apparently, it is based upon the idea that from the passing of the Road and Rail Traffic Act, the business of road transport should have been rendered stagnant.
Here we have one of the most progressive industries in the country, and one which is vital to its economic efficiency and national safety, considered as something in the nature of a parasite presumed to be sapping the railways' strength.
The actual position is that the railways are doing very well and vastly better than could have been anticipated only a few years ago, despite their constant plea that they have not yet achieved the high standard of earnings which was foolishly laid down for them as the desired goal-a goal founded upon an inflated conception of the capital value of the railways as represented by the par value of their stocks.
's Many a trading house would like to be in a position to say "we 'must have and will have a fixed percentage of profit." Naturally, there can be no objection to their having such a desire if the anticipated progress is to result from sound management, increased efficiency and the exclusion of sweated labour; but to force it by the ruthless exploitation of Parliamentary power and the partial or complete suppression of efficient and essential rivals is not in accordance with the British tradition and may eventually cause incalculable harm to the national interest.
We have every sympathy with the railways in their efforts to put their affairs on a sounder basis, by the proposed five per cent. increase in rates, particularly as there is a tendency towards the raising of road-transport charges, rendered justifiable by increasing costs, shortened working hours and higher rates of pay for the personnel. There should, therefore, be little question of any material transference of traffic from rail to road.
We shall be glad if the railways, assisted by this increase, can put their house in order and gain an improved financial status. At the same time, they might consider the question of reducing the cutting of rates which is occurring in connection with a,greed charges, which, whilst 'bringing. considerable traffic, apparently do little good in producing economic return and constitute a " dogin-the-manger " policy.
Road transport does not begrudge the railways any increase of tonnage or passengers based upon fair competition, but it is determined to exercise its right to live and grow.