LORD HORNE SPEAKS OUT
On the much-debated question of the war-time level of railway earnings Lord Home has thrown valuable light at the Great Western meeting. He tells us that in the first four months (September-December, 1939) of the pool period earnings were at the rate of £1,500,000 a year above the guaranteed minimum. This is rather below many unofficial estimates but one can safely assume that gross receipts have risen substantially since the final quarter of last year. On the other hand, costs have alto been rising, both of wages and materials, so. that one need not be sur- prised at Lord Home's intimation that the question of increasing charges is now being considered. When this adjustment has been made the pool net revenue should quickly approach Stage 2 (i.e., minimum plus £31 millions).
(Continued on page 312) Those who have been critical of the Government's deal with the railways should study Lord Home's remarks. If there had been no war the Great Western was well on the way towards 1937 net revenue, which implies 4 per cent. on the ordinary stock. Again, if the company had been allowed to operate since the war broke out as an ordinary business subject only to E.P.T. the sum available for dividend would have been even greater. In the light of facts such as these it is hard to see how the war-time arrangements can be regarded as other than a fair com- promise. * *
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