Flying Scotman

CONTENTS Introduction............................................................................7 Chapter 1 Flying Scotsman ......................................................8 Why is this the best-known steam engine in the world?

Chapter 2 The Grouping ........................................................35 Chapter 3 The National Collection ..........................................81 Chapter 4 Approved Steam Routes ........................................102 Chapter 5 Happy Birthday! ..................................................120 Chapter 6 The Engineer’s Tale ..............................................139 Chapter 7 For Sale ..............................................................159 Chapter 8 In the Works ........................................................173 Index ..................................................................................187

Chapter 7

FOR SALE World-famous steam engine

here was no solution to Flying Scotsman’s financial problems; the company made a trading loss of almost £500,000 in 2002. Over £2-million had been spent on purchasing and overhauling the engine, but much of this was in the

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No 4472 stands at its birthplace, Doncaster Works, on 26 July 2003. An open weekend was held to celebrate the works’ 150th anniversary. The engine received a full professional repaint in exchange for its guest appearance. BRIAN SHARPE

160 The Flying Scotsman

form of bank loans. Marchington was, on paper, a multi-millionaire, but his fortune was linked to the value of his company, Oxford Molecular Group plc. The management team at Flying Scotsman plc expected to command big city salaries, and the cost of running the company far exceeded the income generated by the engine. No 4472 had a value, and it had to be estimated at around £2.5-million in order to keep the company solvent, but no one was actually likely to buy it at that price just to clear the company’s debts and overdrafts.

A solution was to sell the rights to the name Flying Scotsman, an asset registered in the name of the company, to an investor who could use it for financial gain. A shopping centre called the Flying Scotsman theme park, steam village or even shopping mall was one particular brainchild, and it was to be built in the Peak District, or perhaps Doncaster, or even Edinburgh‌ The idea was that a consortium building a shopping centre for billions of pounds could call it the Flying Scotsman Shopping Centre on payment of a couple of million pounds to Flying Scotsman plc, and the use of the name would add much Flying Scotsman at Hartington Moor traction engine rally in June 2002. PAUL STRATFORD

The Motor Shed – home to classic car dealer Malcolm C Elder, whose circular claimed that he had been asked to ‘discreetly’ offer Flying Scotsman for sale. PHIL MARSH

more than a couple of million to the value of the finished item. It was never clear whether the engine itself was part of the deal, and at best it seems an overestimation of the value of the name Flying Scotsman, famous though it is.

Marchington’s involvement ended in July 2003 with his resignation from the board, and he was, in fact, declared bankrupt in October, although not exclusively because of Flying Scotsman. The financial problems of Flying Scotsman plc simply compounded the problem of the collapse of the share price of Oxford Molecular Group plc.

If it had not been for Dr Marchington, Flying Scotsman may never have been overhauled to main line condition again. The plans for the engine at the outset were perfectly realistic, but the overhaul cost so much that the engine simply could not earn sufficient income to pay the interest on the bank loans taken out to pay for it.

Few main line steam engines make sufficient money to cover the cost of a sevenyear overhaul, and many are paid for with help from the Heritage Lottery Fund.

On 3 November 2003, Ofex suspended trading in the shares of Flying Scotsman plc.

With No 4472 still making regular VSOE appearances, the situation degenerated into farce when the engine was advertised for sale in 2003 by a used car dealer.

True, he was a dealer in very expensive vintage vehicles, even if his premises resembled a barn used for rearing hens. An end to this chapter in Flying Scotsman’s history was clearly approaching, but what might happen to it now?

162 The Flying Scotsman

Save our

SCOTSMAN ith it becoming increasingly inevitable that Flying Scotsman would be sold again, considerable public debate ensued. Fortunately, though, it was not all just talk, and serious moves were afoot to raise the money needed to purchase it so that it would remain in Britain and remain in steam.

The management of Flying Scotsman plc still considered they had an asset worth a considerable sum, and were determined to see it sold for an amount that would clear all the debts of the company. What was clearly important to the company was to ensure there were several bidders, and if this included overseas collectors, then so be it.

Among the rumour and counter-rumour it was stated that the National Railway Museum would like to acquire it, and not just for display as a static exhibit. Jeremy Hosking, owner of A4 Pacific No 60019 Bittern, was interested, but not at any price. A Midlands-based businessman also emerged as a serious bidder, and there continued to be rumours that overseas investors were interested.

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Unfortunately not in steam, Flying Scotsman still broke the tape declaring Railfest 2004 at York open on May 29, and made its triumphant arrival at its new permanent home, even though being pushed by a diesel. ROBIN JONES

Launching the Save Our Scotsman appeal at York station are, left to right, Hugh Bayley MP, GNER chief operating officer Jonathan Metcalfe and NRM head Andrew Scott. NRM

Sir Richard Branson celebrates the saving of Scotsman with one of several bottles of bubbly. NRM / PA

At Railfest 2004 at the National Railway Museum are Sir Richard Branson and Alan Pegler, who had first saved Flying Scotsman from being scrapped in 1963. ROBIN JONES Pupils of Inglebrook School hand over their pocket money to the NRM’s head of education, Julia Fielding, in the museum’s Great Hall. NRM

At the time, Flying Scotsman plc was still trading and the engine was still running. It was in serious debt to its bank, and therefore could not sell the asset for less than its market value, and this could only really be established by offering it for sale by tender. The sale was officially announced on 16 February 2004, with a deadline of 2 April for receipt of sealed bids.

Within three days, the National Railway Museum launched its Save Our Scotsman campaign, aimed at raising sufficient money to be assured of obtaining the engine. This meant it had to be sure of exceeding the bids of unknown potential purchasers, and offering sufficient to satisfy the company’s creditors, primarily the bank. It was at this stage that it became apparent just how famous the engine was, and how much the British public cared about it, as £365,000 was raised from public donations within the first five weeks, a level of support unprecedented in the history of steam preservation.