The London and North Eastern Railway (LNER) was one of the four railway companies that were formed in 1923 due to the amalgamation of 1921. During the First World War the government had taken control of the railways for the purpose of the war effort. After the war ended it was decided that the railway companies could not competitively return to their prior state, and so the decision was made to combine the 120 existing railway companies into four companies, which became known as ‘the big four’. Smaller railway companies were merged together to form LNER, these previous companies consisted of; Great Central Railway, Great Eastern Railway, Great Northern Railway, Great North of Scotland Railway, Hull and Barnsley Railway, North British Railway and the North Eastern Railway. LNER was the second largest company of the ‘Big Four’ in terms of route miles (total route mileage amounted to 6700) and became famous for its prestigious high speed trains, including the Flying Scotsman and the Mallard, which reached speeds of 126mph (breaking the world record for steam). William Whitelaw, who was a public figure in Scotland, was appointed the first chairman of LNER operating mainly from the London headquarters. The management of LNER was decentralised as much as possible and one of Whitelaw’s main responsibilities became scrutinising proposals of expenditure, due to the shortage of investments. It was decided that the head of management should be Sir Lewis Wedgewood and it was under his management that three main headquarters should be created to best oversee the company. These areas were; Southern, North-Eastern, with offices being situated in York, and Scotland, which was then divided into Northern and Southern Scotland. By 1928 organisation in LNER had stabilised with the chairman being based in Marylebone, Chief General Manager being based in Kings Cross and the Southern headquarters being based in Liverpool. Sir Nigel Gresley became the first Chief Mechanical Engineer of the company. Each of the big four had a Chief Mechanical and Electrical Engineering department which was formed in 1923 with the creation of each company and after nationalisation in 1948, one CM&EE department was created. Gresley became very influential in the company, not only due to his designs of the Flying Scotsman and the Mallard, but also his Pacific designs and long-distance locomotives with the ability to overcome difficult operating conditions. Gresley died in office in 1941 and was succeeded by Edward Thompson, who remained CME until 1946. Arthur Peppercorn, a student of Gresley’s, succeeded Thompson but remained CME for just 18 months, as nationalisation cut short his career. After the Second World War all four railway companies were in financial trouble. The growth of road transport and the effects of the war had meant that each company was in need of severe maintenance work (LMS calculated it would have to spend £40 million on maintenance). Investors of the railways were also at a loss, the LNER’s investors had received no dividend since 1941. With the arrival of a new labour government in 1945, the decision to nationalise all public transport was put forward and in 1948 the ‘Big Four’ were replaced with the British Transport Commission, which separated LNER into Eastern and North Eastern Regions, as well as surrendering the Scottish territory.

The Transport Act 1947 nationalised virtually all British transport, including the railways, waterways, and road haulage. These were transferred to a newly-created operating body, the British Transport Commission (BTC). The British Transport Commission began operations on 1st January 1948, under Chairman Sir (later Lord) Cyril Hurcomb. At this time, the British Transport Commission acquired the “Big Four” grouped railways, with virtually all minor railways as well, together with the London Passenger Transport Board. This automatically transferred the assets of the rail companies to BTC, including ships, ports, hotels, and investments in bus, coach, and haulage companies. Two bus companies, Tilling and Scottish Motor Traction, were soon added, as well as long-distance road hauliers. The Transport Act charged the British Transport Commission with the task of charged with “integrating” various forms of transport into single public service. The British Transport Commission did not directly operate transport services. Operations were delegated to five separately appointed executives: Docks and Inland Waterways, Hotels, London Transport, Road Transport, and Railways. The Railways Executive operated under the name British Railways. In 1949, the Road Transport Executive was divided into two separate executives: Road Haulage and Road Passenger. The Commission exercised financial control over these Executives, and managed them through schemes of delegation. The Commission attempted to fulfil its statutory duty to “integrate” public transport by introducing Area Schemes. These were designed to establish regional monopolies for road passenger transport, ports, and harbours. “Integration” was also to be promoted through Charges Schemes, in which the true costs of different modes of transport were to be reflected in the charges. This was designed to attract traffic to the most economic and efficient mode of transport. The structure of Executives was dramatically altered by the Transport Act 1953, which abolished all Executives, with the exception of London Transport. Responsibility for the operation and maintenance of transport systems was delegated to the chief regional managers. The railways were reorganised into a system of area boards for each of its six regions. In September 1953, Sir Brian Robertson became Chairman. Disposal of the haulage fleet also began at this time, but a lack of buyers made this difficult. Rising costs, industrial action and competition from road traffic meant that the British Transport Commission was in financial trouble by 1955. It sought relief from this by publishing The Modernisation and Re-equipment of British Railways, a plan which proposed an investment in the railways of £1,240m over fifteen years. The main features of this plan were the replacement of steam with electric and diesel traction, the electrification of principle routes, and the introduction of new coaching stock. Despite the modernisation plan, the financial position of the British Transport Commission worsened. Two government reviews, in 1956 and 1959, concluded that the Commission was unwieldy and had an insufficiently commercial outlook. Sir Brian Robertson retired in May 1961, and was replaced by Dr Richard Beeching. The BTC was abolished by the Transport Act 1962. It was replaced with five new authorities that were answerable to the Minister of Transport: the British Railways Board, the British Transport Docks Board, the British Waterways Board, the London Transport Board, and the Transport Holding Company. Dr Beeching became chair of the British Railways Board.