Our source said: "It was utter carnage inside both trains. There were limbs scattered everywhere.
"We've never seen anything like this."
* POLICE were yesterday probing reports a man had been "neutralised" outside Canary Wharf.
Is is believed the man was shot dead by police marksmen outside the Credit Suisse First Boston bank.
Other unconfirmed reports suggested the attacks were the work of a co-ordinated team of suicide bombers.
EVERY hospital in South London was put on emergency alert after the terror attacks.
Routine appointments were cancelled and all staff were on standby to deal with casualties.
Twenty blast victims were treated at Guy's and St Thomas' in Waterloo, three of which were critically injured. Most of the victims were being treated for smoke inhalation, burns and serious limb and chest injuries.
Extra beds were set aside for casualties.
South London Press reporter Clare Casey was at St Thomas' early yesterday morning.
She said: "There was an announcement around 12.30pm to say they were evacuating the hospital and all routine appointments were cancelled, but staff were told to stay.
"I didn't know what was happening. When I went outside there were ambulances and police everywhere and police boats were zooming up and down the river."
At Millwall FC's Den stadium in Zampa Road, Bermondsey, a conference for London Ambulance staff was cancelled to let paramedics get to the scene of the carnage.
A spokesman for Guy's and St Thomas' NHS Trust said: "We instigated the trust's major incident plan just after 9am following the explosions.
"So far we have received eight patients, some of which are critically injured and a number of walking wounded.
"We are also freeing up beds to ensure we are prepared for further casualties."
Buses were later sent out from Catford garage to help ferry stranded commuters out of central London.