It is pointed out in the Returns, however, that on account of the nominal additions made to the capital of the companies the rates of dividend or interest given in the tables are lower than they would otherwise be. Thus the average rates of dividend or interest for the United Kingdom in 1910 calculated on capital exclusive of nominal additions would show: Ordinary, 4.28 per cent (instead of 3.48 as above), and "all classes" 4.15 (instead of 3.53) per cent.

These averages, nevertheless, allow for a large amount of capital on which the dividend or interest paid is either nil or substantially below the averages stated.

The rates of dividend on ordinary capital in 1910 were as follows:—

ORDINARY.
RATES OF DIVIDEND OR INTEREST.Amount of
Capital.		Per cent of
Total.
Nil£67,358,26213.7
Not above 1 per cent29,427,0576.0
Above 1 and not above 2 per cent18,072,8473.7
Ab"ve 2 and n" above 3 per"87,676,75917.8
Ab"ve 3 and n" above 4 per"109,788,24722.3
Ab"ve 4 and n" above 5 per"38,193,9557.7
Ab"ve 5 and n" above 6 per"85,503,72117.4
Ab"ve 6 and n" above 7 per"54,962,06611.2
Ab"ve 7 and n" above 8 per"362,0000.1
Ab"ve 8 and n" above 9 per"40,0000.0
Ab"ve 9 per cent694,9070.1
————————
Total492,079,821100.0

The various classes of capital on which the rates of dividend or interest paid in 1910 were either nil or not above three per cent may be shown thus:—

RATES OF DIVIDEND OR INTEREST.
DESCRIPTION OF CAPITAL.Nil.Not above
1 per cent.		Above
1 per cent
and not above
2 per cent.		Above
2 per cent
and not above
3 per cent.
££££
Ordinary67,358,26229,427,05718,072,84787,676,759
Preferential16,607,907631,9672,296,250103,019,553
Guaranteed——101,18023,318,760
Loans and
Debenture Stock		558,782676,7894,666189,122,426
————————————————
Totals84,524,95130,735,81320,474,943403,137,498

£538,873,205
RATES OF DIVIDEND OR INTEREST.
DESCRIPTION OF CAPITAL.Nil.Not above
1 per cent.		Above
1 per cent
and not above
2 per cent.		Above
2 per cent
and not above
3 per cent.
££££
Ordinary67,358,26229,427,05718,072,84787,676,759
Preferential16,607,907631,9672,296,250103,019,553
Guaranteed——101,18023,318,760
Loans and
Debenture Stock		558,782676,7894,666189,122,426
————————————————
Totals84,524,95130,735,81320,474,943403,137,498

£538,873,205

There are those who regard railway shareholders as "capitalists," and consider that the keeping of railway dividends at a low level, together with any depreciation in the value of railway stock that may result therefrom, are matters only likely to affect a comparatively few wealthy men, and not, therefore, of material concern to the country so long as the railways give the best possible service at the lowest possible rates. In the United Kingdom, however, the ownership of the railways is distributed among a far greater number of persons than is the case in the United States, where the control and the dividends of a great railway system may alike be in the hands mainly of a few financiers. That by far the larger number of shareholders in British railways have comparatively small holdings was well shown by a table published a few years ago giving the percentage of holdings of £500 or under by shareholders, exclusive of debenture-holders, in thirty-nine leading railways of the United Kingdom. An analysis of this table gives the following results:—

Number of
Companies.		Percentage of Holdings of
£500 or under.
232 to 40 per cent.
10041 t" 50 per"
851 t" 60 per"
961 t" 70 per"
771 t" 80 per"
381 t" 90 per"

It is true that many of the shareholders here in question might have invested in several companies, so that their £500 or less would not represent the full extent of their railway holdings. On the other hand, there is the fact that many of the single investments are those of friendly societies, trade unions, or other organisations representing the interests and dealing with the savings of a large number of members of the artisan class.