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The Southern Railway's Response to Bus Competition, 1923-39

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The Southern Railway's Response to Bus Competition, 1923-39 CORE Metadata, citation and similar papers at core.ac.uk Provided by White Rose E-theses Online Public passenger transport in inter-war Britain: the Southern Railway’s response to bus competition, 1923-39 REGINALD ARTHUR MURRAY DAVIES Doctor of Philosophy University of York Railway Studies SEPTEMBER 2014 Abstract Abstract Scholarly criticisms of the quality of British railway management between the world wars have focused partly on the allegedly inept reaction to the threat of bus competition. By contrast this thesis shows that the Southern Railway (SR) developed policies and practices with regard to the bus industry that were rational and broadly successful given the legal, political and economic circumstances. The SR was probably atypical of the four major inter-war railways. Because of the social and economic geography of the areas it served, it suffered less from bus competition and a smaller decline in receipts from passenger trains. Nevertheless in common with the rest of the industry, management action was greatly hampered in the 1920s by political opposition to direct bus operation. A key finding is that legislation in 1928 had the unintended effect of determining that the railways instead entered into partnerships with bus companies. In the SR’s case this policy produced considerably greater returns on capital than historians have hitherto thought. The SR influenced rather than controlled its associated bus companies, allowing them considerable commercial freedom. Even so the SR was largely able to shape network development to its advantage and to introduce measures, such as through ticketing, that were seen by contemporaries as key elements in reducing public-transport competition and thus enhancing consumer benefits. However, in practice such measures probably proved more advantageous to the company than its passengers. In sum the SR’s policies and practices in relation to bus competition were much more adroit than scholars have previously allowed. This study cannot demonstrate that the quality of the SR’s management was equally good across the company’s multi-faceted business. Nevertheless in this limited sphere, the SR achieved the most advantageous result possible, an outcome reflecting considerable credit on its managers. 3 Domine, defende nos Contra hos Motores Bos! A D Godley (edited by C L Graves and C R L Fletcher), Fifty Poems. (London: Oxford University Press, 1927): 123. 5 List of contents List of contents Page Abstract . 3 List of illustrations .....................................8 List of charts .........................................9 List of tables ........................................10 Acknowledgements ....................................11 Author’s declaration....................................13 1. Railway involvement in bus services: an important but unexplored topic .................................15 2. Analysing the rail and bus markets .......................31 3. Establishing the principles of bus policy ...................65 4. Applying the principles of bus policy .................... 95 5. Managing bus competition............................123 6. Assessing the benefits of rail and bus co-ordination .........147 7. Measuring the SR’s financial returns.....................171 8. Conclusions ......................................199 List of abbreviations ..................................218 Keywords ..........................................219 Bibliography ........................................220 7 List of illustrations List of illustrations Page Map Southern Railway – Area served by associated omnibus companies ........ Fold out at 36 8 List of charts List of charts Page Charts Chart 1 – SR percentage of goods and passenger receipts 1923-38................38 Chart 2 – SR passenger receipts 1923-38 ..................................39 Chart 3 – SR composition of passenger receipts 1923-38 .......................39 Chart 4 – SR passenger receipts (excluding season tickets) – Percentage of full and reduced fares 1923-38 ........................41 Chart 5 – SR season tickets – Percentage of full and reduced fares 1923-38 .........41 Chart 6 – SR third class ordinary passengers – Numbers originating 1923-38.........42 Chart 7 – SR third class ordinary passengers – Receipts 1923-38 .................43 Chart 8 – SR first class ordinary passengers – Numbers originating 1923-38 .........43 Chart 9 – SR first class ordinary passengers – Receipts 1923-38 .................44 Chart 10 – SR first class season tickets – Annual Number 1923-38 .................44 Chart 11 – SR first class season tickets – Receipts 1923-38......................45 Chart 12 – SR third class season tickets – Annual number 1923-38.................45 Chart 13 – SR third class season tickets – Receipts 1923-38 .....................46 Chart 14 – SR workmen’s tickets – Numbers originating 1923-38...................46 Chart 15 – SR workmen’s tickets – Receipts 1923-38 ...........................47 Chart 16 – SR mails, parcels, parcel post and other merchandise receipts 1923-38 .....47 Chart 17 – Great Britain – Number of private cars 1923-38 .......................49 Chart 18 – Great Britain – Number of buses and coaches 1923-38 .................50 9 List of tables List of tables Page Tables Table A – SR bus companies – Receipts 1923-38 .............................52 Table B – SR- Comparison of third-class rail and bus receipts 1923-38..............54 Table C – Expenditure on public transport in the UK – Comparison of rail and bus 1923-38 ...............................55 Table D – Road traffic – Percentages of passengers passing a point on certain routes in April and May 1928 ........................77 Table E1 – SR associated bus companies: holders of ordinary nominal share capital on 1 January 1938 ..........................102 Table E2 – SR associated bus companies: number of directors during 1938..........103 Table F – Sample bus companies .......................................110 Table G – SR – Lines Closed to Passengers 1923 – 1939 ......................141 Table H – Interavailability provision and use ................................152 Table I – Interavailable day return fares valid on either SR or Southern National services 1934 ................................156 Table J – SR and GWR charges to Southern National coach passengers to return by train from London 1935 .....................158 Table K – SR – Initial share purchases in bus companies.......................172 Table L – Bus company values..........................................177 Table M – TBAT bus company premiums paid by SR ...........................179 Table N – Railway ordinary shareholdings in the bus industry as at 1 January 1938....182 Table O – SR – Total outlay on bus company shares 1929-38....................186 Table P – SR – Total dividends received on bus company shares 1929-38...........187 Table Q – SR – Total return on bus company shares 1929-38....................188 Table R – SR – Rail business performance 1929-38 ..........................192 Table S – SR – Rail and bus investment levels 1929-38 .......................195 10 Acknowledgements Acknowledgements I am immensely grateful to all those who have helped me in the preparation of this thesis. It has brought me into contact with many organisations and individuals who have unstintingly given me time, advice and encouragement. The University of York Library, Search Engine at the National Railway Museum in York, the London School of Economics Library and the National Archives provided much of the material for my study. A special expression of thanks is due to Peter Jacques at the Kithead Trust, Peter Huggins at the Chartered Institute of Transport and Logistics, Kevin Hey formerly at the University of Salford and Alan Mills at the Omnibus Society Library. Each has taken a very personal interest in my progress, whilst John Hibbs gave valuable encouragement at the start of my work. My friend, Gordon Rushton, kindly used his computing skills to produce the map of the Southern Railway and its associated omnibus companies. Alexandra Hawes and Sam Wiggle ably turned my indifferent manuscript into something much more fit for submission. My friend, Malcolm Grant, helped me to read through the page proofs but I am responsible for any errors which remain. Finally, and most importantly, I am grateful for the wise guidance and support of my supervisor, Professor Colin Divall, throughout the period during which the thesis was prepared. 11 Author's declaration Author’s declaration I declare that this thesis is a presentation of original work and I am the sole author. This work has not previously been presented for an award at this, or any other, university. All sources are acknowledged as References. 13 Chapter 1. Railway involvement in bus services: an important but unexplored topic 1. Railway involvement in bus services: an important but unexplored topic ‘There is clearly room for further research in this field.’ JOHN HIBBS1 A key topic emerging amongst historians is the study in a number of countries of the railways’ struggle after 1918 to maintain market share in the face of road competition for both passenger and freight traffic.2 In the United Kingdom such scholarly interest is not new. Studies of the effectiveness of the railways’ response, one measure of the quality of their management, began as early as 1928.3 However, the present debate has its roots around 1968 and has continued sporadically ever since. Much recent research has focused on the British railways’ attempts
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