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The New Zealand Railways Magazine, Volume 3, Issue 2 (June 1, 1928)

The Grouping System

The Grouping System.

When the grouping scheme was first promoted, it was claimed that vast financial economies would thereby be effected by the Home railways. In practice it has been found that, while grouping certainly does afford possibilities in this direction, it will be many years before the full fruits of grouping are gathered. A great many schemes have been launched of one kind and another with a view to making financial savings, but as yet few of these plans have reached the actual saving stage.

As was remarked by the Chairman of the London, Midland and Scottish Railway, in his annual report for 1927, people are inclined to overlook that in a considerable number of instances grouping economies involve, in the first instance, some little period after amalgamation for combined experience to determine the best things to be undertaken in the new conditions and their order of urgency. Substantial initial capital expenditure is also called for, and an appreciable lapse of time for the execution of the work. Only rarely can one station be made to serve instead of two, or offices combined, or any kind of concentration effected without some expense of adaptation being necessary.