The Railways Act 1921 brought about the grouping of the railways of Great Britain. The Caledonian Railway and the Cathcart District Railway were to be incorporated in the new London Midland and Scottish Railway (LMS) and this took effect from 1 January 1923. (Administrative measures delayed the formal process for several months after the effective date.) The CDR was still receiving 55% of receipts prior to this time. Ordinary shareholders received £51 of ordinary LMS stock with a market value of £57 for every £100 face value of CDR stock. As part of the process the CDR received war compensation of £21,019 from the Government.