History
The Southern Railway was still comparatively profit-making despite World War II, thanks to its extensive third rail DC electrification and the intensive service patterns this allowed for. However, large-scale investment was required in the infrastructure of all of the "Big 4" companies, including the Southern.
The Transport Act 1947 provided for the nationalisation of all heavy rail systems in the UK to allow for this investment and, in theory, to improve the rights of railway workers. The railway companies were amalgamated into British Railways, part of the British Transport Commission, and six geographic and administrative regions were created out of the previous four companies. The Southern Railway, being relatively self-contained and operated largely by electric traction, was incorporated almost intact as the new Southern Region.
The Southern Region also inherited some independent light railways, also nationalised at the same time, namely the East Kent Light Railway, the Kent and East Sussex Railway and the North Devon and Cornwall Junction Light Railway.
Read more about this topic: Southern Region Of British Railways
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