15 JANUARY 1927, Page 3

The railway companies have decided to raise their rates on

goods traffic by about 6} per cent. Of course any rise at this moment when everybody is looking for a revival in trade is inopportune, but there are several ex- cuses for the decision. As Sir Josiah Stamp explains in an interesting statement in the Morning Post, of Tues- day, there has been no response in the form of increased traffic to the last reduction of the rates by the companies. Under the Act of 1921, which grouped the railways, the companies are confined to a standard revenue. Earnings above that revenue have to go automatically to the, reduction of rates. The result is that the companies cannot build up reserves against bad times as they used to do.

. *