Four rules to be observed on Nationalisation:—
1. Natural monopolies only to be taken over.
2. When taken over, only to be worked for benefit of community and not for profit.
3. Competition of private enterprises not to be prohibited.
4. Monopoly to be worked by Department of State responsible to Parliament.
Chief grounds of objection to State ownership—
(1) Difficulty of Government in dealing with conflicting interests of traders and general public. (2) Difficulty of Railway servants (being also voters) using political pressure to obtain better wages, against interests of traders and general public. Both of these objections removed if scheme (which avoids all preferential or differential rates or treatment) adopted with above four rules.
Other grounds of objection, e.g., want of competition, officialism, &c., apply equally to present Company system, but may be remedied if owned by State. Suggested remedies:—Railway Council to deal with all matters of administration; Railway Courts to deal with questions of compensation, labour disputes, &c. Railways and Post Office being Department of State with Cabinet Minister at head subject to vote of censure in Parliament, provides better security for public than private Companies or Railway Trust.