On 28 August 1947, a Royal Commission was established to examine, inquire into and report upon:

(a) The management, workings and control of the Government Railways in Western Australia in all its branches except the Midland Junction Railway Workshops and the supply of local coal, but including the housing of employees (particularly in country districts), and the provision of amenities at larger centres calculated to promote the welfare and working conditions of employees;
(b) such alterations and improvements in relation to the foregoing, including the management of the said Government Railways, as may be advisable for economical and efficient working, having due regard to adequate services;
(c) what action, if any, should be taken in regard to reduction in the capital liabilities of the said Government Railways, having regard to obsolescence, depreciation and charges in respect to purely developmental railways, and
(d) the administration generally of the said Government Railways.