Railway Rate-cutting Attacked
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AILWAY rate-cutting is severely criticized by Mr. Philip S. Hun-flan, chairman of Transport Development Group; Ltd., in his annual statement. He says that competition in long-distance , haulage is keen "and the attitude of British Railways in making desperate attempts :tb secure traffic at almost any price is threatening the profitability of all
forms of transport . The theory is that if you can get traffic on the rails,the cost and: the rat are immaterial. This policy is contrary to all the principles of profitable trading and may well be contributing to the losses of rail transport."
Mr. Henman believes that the British
Transport Commission's ancillary operations should be hived off. "It is incumbent on the Government, before any .consideration is given to subsidizing railways on a permanent basis, to see that the public's investment in transport has been reduced to the basic rail system which is necessary to the country's
economy and safety," he declares. ,
. He says that the improvement in traffic which occurred in the latter half of last. year has largely been maintained this year. Although acquisitions have formed an important part in the development of the Group in the past year, existing companies have also been expanded. Mr. Henman believes that the Bristol Industries companies acquired by T.D.G. have great scope for development. He. mentions also the acquisition of Connal -and Co., Ltd., who have a road haulage • fleet operating to mid and east Scotland and a subsidiary, I. and H, Stewatt (Transport), Ltd.
In all acquisitions made so far by the Group, the offer to shareholders haS received the recornmendation of the directors of the edit-many concerned.
"It is intended that development of this type shall continue," says Mr. Heilman. "It is, development planned to fit the Group's existing manner of operation and to diversify its interests, but at no time to enter, uncharted waters."