An Interesting Pooling Plan.

Home railway efficiency promises to be fostered materially as a result of an ambitious working agreement entered into between the two largest group lines—the London, Midland and Scottish, and the London and North Eastern. Since the introduction of railway grouping under the Railways Act of 1921, a great deal has been accomplished in the endeavour to secure more efficient and economical operation through the elimination of redundant services, the simplification of joint-line working arrangements, and the cutting-out of needless competition as between one group railway and another. Now, however, much more far-reaching schemes are being tackled, and the pooling plan of the L.M. and S. and L. and N.E. lines stands out as an exceptionally bold and intelligently-conceived scheme for meeting modern requirements.

In brief, the plan provides for an elaborate system of pooling of receipts, based upon the gross receipts of each of the companies between selected competitive points for the years 1928, 1929 and 1930. Striking the average of these, there is ascertained the proportions for the division of the combined receipts in future years between the parties concerned. Wasteful competition in the provision of services between points served by both railways will be eliminated, and the result of the arrangement will be to direct all traffic into its natural economic route. The resources and equipment of both companies will be employed for their common interest between places where their interests were previously divergent, and apart from the avoidance of outlay on duplication services, economies will ensure in respect of advertising, town office arrangements, canvassing, cartage work, and other outlay accompanying competition.

It has been suggested that this agreement between the two largest Home railway groups is a preliminary to the complete unification of the four systems. While it seems certain that eventually one single railway undertaking will take the place of the four groups, authoritative opinion is that this complete merger will not be accomplished for many years. As a step towards complete unification, the agreement will have its uses. In the meantime it should prove of the greatest page 19 value in increasing railway efficiency and effecting big savings in working expenditure.