Pegler first saw LNER Class A3 4472 "Flying Scotsman" in Wembley at the 1924 British Empire Exhibition. In 1961, he received £70,000 for his share holding when Northern Rubber was sold to Pegler's Valves, a company started by his grandfather. In 1962, British Railways announced that they would scrap the "Flying Scotsman". A group called "Save Our Scotsman" were unable to raise the £3,000 scrap value of the locomotive that would prevent this. Pegler stepped in and bought the locomotive outright, with the political support of Harold Wilson. He spent the next few years spending large amounts of money having the locomotive restored at the Doncaster Works, and then persuaded the British Railways Board to let him run enthusiasts' specials. The "Flying Scotsman" was at that time the only steam locomotive running on mainline British Railways.