The frank discussion by the representatives of the Home railway managements and employees, of the economic position of the railway industry, has been hailed by all sections of the British Press as a great victory for co-operation. In his present contribution, our Special London Correspondent refers to this and other recent railway developments in Britain and on the Continent.

Slackness of trade and the ever-growing competition of the road carriers has had the most serious effect on Home railway revenues in recent months. For the past half-year the most modest of dividends was paid shareholders, and on every hand the need for economy in the British railway world is clearly apparent.

To meet the needs of the present difficult situation, a most helpful agreement has been reached between the Home railway managements and employees of every grade. In order to reduce expenses and tide the railways over the present trying period, the railway unions, acting on behalf of the men, have agreed to a wages cut of two-and-a-half per cent., this cut to be applicable to all within the service from the highest to the lowest rank of employee. The settlement was not reached without much discussion, as might be imagined, but immediately the issue became clear the men's representatives at once agreed as to the wisdom of the wages cut, and the whole business is a triumph for common-sense and co-operation.

The immediate consequence of the wages cut will be to effect an annual saving in the wages bill of approximately £2,500,000, a sum which should materially assist in lightening the heavy burdens which the Home railways are at present called upon to bear. For the first six months of the present year, the largest of the Home railways—the London, Midland & Scottish—suffered a decline in net revenue of more than £1,000,000, as compared with the corresponding half-year of 1927. Equally serious decreases were recorded in the case of the three other large systems. Against these losses must be set off considerable operating economies effected through cheaper coal and more scientific working methods.