Higher Rail Rates The decision of the Railway Rates Tribunal
to allow an increase in the railway companies' charges, however unwel- come, comes as no surprise, and it is difficult to see how it can reasonably be challenged. The rising costs of material affect the railways no less than other concerns, and the lot of the holder of ordinary and junior preference shares in British railways has not of recent years been a happy one. The railways have never earned the " standard revenue " defined by the Railways Act, 1921 ; and since the recent depression neither the L.N.E.R. nor the L.M.S. has paid a penny by way of dividend in respect of its ordinary capital ; the G.W.R., it is true, has never failed to pay 3 per cent. (largely out of dividend reserve), and the holder of Southern Preferred has had little cause for complaint, but the picture as a whole is distinctly sombre. There is, moreover, the expectation of a decision by the Railway Staff National Tribunal which will involve a heavy increase in wage payl. meats. The 5 per cent. increase is not drastic, and charges of less than iod. a ton and, in the case of workmen's tickets, fares of less than 5d will-not be affected.
* * * *
Previous page
