The Railways Act 1921 (c. 55), also known as the Grouping Act, was an

Act of Parliament Acts of Parliament, sometimes referred to as primary legislation, are texts of law passed by the Legislature, legislative body of a jurisdiction (often a parliament or council). In most countries with a parliamentary system of government, acts of ...

enacted by the British government and intended to stem the losses being made by many of the country's 120 railway companies, by "grouping" them into four large companies dubbed the " Big Four". This was intended to move the railways away from internal competition, and retain some of the benefits which the country had derived from a government-controlled railway during and after the

Great War World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...

of 1914–1918. The provisions of the Act took effect from the start of 1923.

History

The

British railway system The railway system in Great Britain is the oldest railway system in the world. The first locomotive-hauled public railway opened in 1825, which was followed by an era of rapid expansion. Most of the track is managed by Network Rail, which in ...

had been built up by more than a hundred railway companies, large and small, and often, particularly locally, in competition with each other. The parallel railways of the East Midlands and the rivalry between the South Eastern Railway and the

London, Brighton and South Coast Railway The London, Brighton and South Coast Railway (LB&SCR; known also as the Brighton line, the Brighton Railway or the Brighton) was a railway company in the United Kingdom from 1846 to 1922. Its territory formed a rough triangle, with London at its ...

at Hastings were two examples of such local competition. During the

First World War World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...

the railways were under state control, which continued until 1921. Complete

nationalisation Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to pri ...

had been considered, and the 1921 Act is sometimes considered as a precursor to that, but the concept was rejected; nationalisation was subsequently carried out after the

Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

, under the

Transport Act 1947 The Transport Act 1947 (10 & 11 Geo. 6 c. 49) was an Act of the Parliament of the United Kingdom. Under the terms of the Act, the railway network, long-distance road haulage and various other types of transport were nationalised and came under ...

. The form of the Act was developed by former North Eastern Railway executive, the

Minister of Transport A ministry of transport or transportation is a ministry responsible for transportation within a country. It usually is administered by the ''minister for transport''. The term is also sometimes applied to the departments or other government a ...

Eric Geddes Sir Eric Campbell Geddes (26 September 1875 – 22 June 1937) was a Great Britain, British businessman and Conservative Party (UK), Conservative politician. With a background in railways, he served as head of Military Transportation on the ...

. Geddes favoured privately-owned regional monopolies through amalgamations, and suggested increased worker participation from pre-war levels. Geddes viewed the pre-war competition as wasteful, but was opposed to nationalisation on the grounds that it led to poor management, as well as a mutually corrupting influence between railway and political interests. In his 9 March 1920 Cabinet paper "Future Transport Policy", he proposed five English groups (Southern, Western, North Western, Eastern and North Eastern), a London passenger group, and separate single groupings for Scotland and Ireland. Geddes' proposals became the 1920

white paper A white paper is a report or guide that informs readers concisely about a complex issue and presents the issuing body's philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision. A white paper ...

"Outline of Proposals as to the Future Organisation of Transport Undertakings in Great Britain and their Relation to the State" ( Cmd. 787). This suggested the formation of six or seven regional companies; additionally it suggested worker participation on the board of directors of the company. The white paper was opposed by the Railway Companies' Association (RCA) and MPs representing railway companies' interests. The move to greater worker participation was strongly opposed by the RCA, but supported by the Labour Party. Worker-directors were not included in the final act, being replaced by agreed negotiating mechanisms. In 1921 the white paper "Memorandum on Railways Bill" (Cmd. 1292), suggested four English regional groups and two Scottish groups. Scottish railway companies wished to be incorporated into British groupings, and the RCA proposed five British regional monopolies including the Scottish businesses. After consideration of the Railways Bill it was decided that the Scottish companies, originally destined to be a separate group, would be included with the Midland/North Western and Eastern groups respectively, in order that the three main Anglo-Scottish trunk routes should each be owned by one company for its full length: the

West Coast Main Line The West Coast Main Line (WCML) is one of the most important railway corridors in the United Kingdom, connecting the major cities of London and Glasgow with branches to Birmingham, Liverpool, Manchester and Edinburgh. It is one of the busiest ...

and the

Midland Main Line The Midland Main Line is a major railway line in England from London to Nottingham and Sheffield in the Midlands. It comprises the lines from London's St Pancras station via Leicester, Derby/Nottingham and Chesterfield in the East Midlands ...

by the former group, and the

East Coast Main Line The East Coast Main Line (ECML) is a electrified railway between London and Edinburgh via Peterborough, Doncaster, York, Darlington, Durham and Newcastle. The line is a key transport artery on the eastern side of Great Britain running broa ...

by the latter.

The Act

The opening paragraph of the Railways Act of 1921 states:

With a view to the reorganisation and more efficient and economical working of the railway system of Great Britain railways shall be formed into groups in accordance with the provisions of this Act, and the principal railway companies in each group shall be amalgamated, and other companies absorbed in manner provided by this Act.

Part 1 of the act dealt with the terms and procedure of the amalgamations of railway companies. The constituents and subsidiaries of the four groups were set out in the first schedule of the act. Companies that had not formed an amalgamation scheme by 1923 would be amalgamated under terms decided by a tribunal. Part 2 dealt with powers and regulation of the railway companies by the

Railway and Canal Commission {{Use dmy dates, date=April 2022 The Railway and Canal Commission was a British court of record, established by the Railway and Canal Traffic Act 1888 and abolished by the Railway and Canal Commission (Abolition) Act 1949. The Regulation of Railwa ...

, part 3 dealt with railway rates, charges and conditions of carriage with powers given to a

Railway Rates Tribunal Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a prep ...

, and part 4 with employee wages and conditions. Parts 5 and 6 dealt with light railways and general clauses respectively, with the general clauses of part 6 including the requirement of the railway companies to provide the Minister of Transport with statistic and financial reports. The

third reading A reading of a bill is a stage of debate on the bill held by a general body of a legislature. In the Westminster system, developed in the United Kingdom, there are generally three readings of a bill as it passes through the stages of becoming, ...

of the Act in the

House of Commons The House of Commons is the name for the elected lower house of the bicameral parliaments of the United Kingdom and Canada. In both of these countries, the Commons holds much more legislative power than the nominally upper house of parliament. ...

took place on 9 August 1921, and was passed with a majority of 237 to 62; the act passed through the

House of Lords The House of Lords, also known as the House of Peers, is the Bicameralism, upper house of the Parliament of the United Kingdom. Membership is by Life peer, appointment, Hereditary peer, heredity or Lords Spiritual, official function. Like the ...

and the Lords' amendments were accepted by the Commons on 19 August and

Royal Assent Royal assent is the method by which a monarch formally approves an act of the legislature, either directly or through an official acting on the monarch's behalf. In some jurisdictions, royal assent is equivalent to promulgation, while in other ...

given. The state control of the railways which began under war conditions during World War I were to continue under the

Ministry of Transport Act 1919 The Department for Transport (DfT) is a department of His Majesty's Government responsible for the English transport network and a limited number of transport matters in Scotland, Wales and Northern Ireland that have not been devolved. The d ...

for a further two years. The Act took effect on 1 January 1923. On that date most of the mergers took place; some had taken place during the previous year. The February 1923 issue of ''

The Railway Magazine ''The Railway Magazine'' is a monthly British railway magazine, aimed at the railway enthusiast market, that has been published in London since July 1897. it was, for three years running, the railway magazine with the largest circulation in t ...

'' dubbed the new companies as " The Big Four of the New Railway Era".

Lines outside the Act

A number of joint lines remained outside the Big Four, continuing to be operated jointly by the successor companies. These included the

Midland and Great Northern Joint Railway The Midland and Great Northern Joint Railway (M&GNJR) was a railway network in England, in the area connecting southern Lincolnshire, the Isle of Ely and north Norfolk. It developed from several local independent concerns and was incorporated ...

(M&GN), a

London, Midland and Scottish Railway The London, Midland and Scottish Railway (LMSIt has been argued that the initials LMSR should be used to be consistent with LNER, GWR and SR. The London, Midland and Scottish Railway's corporate image used LMS, and this is what is generally u ...

London and North Eastern Railway The London and North Eastern Railway (LNER) was the second largest (after LMS) of the " Big Four" railway companies created by the Railways Act 1921 in Britain. It operated from 1 January 1923 until nationalisation on 1 January 1948. At th ...

joint line in eastern England, the largest of the joint railways in terms of route mileage; the

Cheshire Lines Committee The Cheshire Lines Committee (CLC) was formed in the 1860s and became the second-largest joint railway in Great Britain. The committee, which was often styled the Cheshire Lines Railway, operated of track in the then counties of Lancashire a ...

(CLC), LMS/LNER joint line in

Lancashire Lancashire ( , ; abbreviated Lancs) is the name of a historic county, ceremonial county, and non-metropolitan county in North West England. The boundaries of these three areas differ significantly. The non-metropolitan county of Lancashi ...

and

Cheshire Cheshire ( ) is a ceremonial and historic county in North West England, bordered by Wales to the west, Merseyside and Greater Manchester to the north, Derbyshire to the east, and Staffordshire and Shropshire to the south. Cheshire's county t ...

, largest in terms of both passenger and freight traffic; and the Somerset and Dorset Joint Railway (S&DJR), a joint LMS/ SR line in south-western England. The London suburban railway companies, such as the

Underground Electric Railways Company of London The Underground Electric Railways Company of London Limited (UERL), known operationally as the Underground for much of its existence, was established in 1902. It was the holding company for the three deep-level "tube"A "tube" railway is an und ...

and the Metropolitan Railway, were also excluded. Later legislation under the

London Passenger Transport Act 1933 London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a major se ...

amalgamated these and London area bus and tram operations into the

London Passenger Transport Board The London Passenger Transport Board was the organisation responsible for local public transport in London and its environs from 1933 to 1948. In common with all London transport authorities from 1933 to 2000, the public name and brand was Lond ...

(see List of transport undertakings transferred to the London Passenger Transport Board). Other exempted railways were

light railways ''Light Railways'' is a magazine produced by the Light Railway Research Society of Australia (LRRSA). The subtitle is "Australia's Magazine of Industrial and Narrow Gauge Railways". History The LRRSA started in the 1961 to foster interest in ...

authorised under the

Light Railways Act 1896 The Light Railways Act 1896 (59 & 60 Vict. c.48) was an Act of the Parliament of the United Kingdom of Great Britain and Ireland. History Before the Act each new railway line built in the country required a specific Act of Parliament to be o ...

, and similar lines, although some such lines still chose to join the groups. Those lines staying independent were principally those under the influence of Colonel Stephens, who had been instrumental in securing the necessary exemption.

Notes

References

* *E McGaughey, 'Votes at Work in Britain: Shareholder Monopolisation and the ‘Single Channel’ (2018
47(1) Industrial Law Journal 76

External links