The Great Western Railway Under the British Railways Act of 1921

Abstract

American railroad executives since the end of World War II have learned — the hard way, as usual — how little real salvation there is in the expedient of the massive merger. They might have studied to good purpose the experiences of the English railways, which were forced to consolidate into four great systems under legislation passed in 1921. Dr. Channon has done so, and tells a dreary story that scouts the idea that great cost savings flow all but automatically from consolidations. His discussion of the Great Western's failure to introduce railway cars capable of carrying 20 tons of coal, at a time when the typical American coal car carried a payload of more than twice that amount, will be variously interpreted by both sides in the controversy over the decline in British entrepreneurship since 1870. Dr. Channon throws much light, moreover, on the problems of managerial organization, a subject that claims considerable attention in current business history.