COMMISSIONER STREET, JOHANNESBURG
Photo by Barnett & Co., Johannesburg
The Canadian Pacific Railway, with 7588 miles open, makes a net profit of £2,620,000 on a capital of £53,000,000 as against South Africa, with 5000 miles open, and net profits of over £5,000,000 on a similar capital. The Canadian Pacific Railway makes a net profit of £371 per mile against a net profit of Natal railways of £803 per mile, and an approximate net profit of £1800 per mile of the Central South African railways (Transvaal and Orange River Colony railways). New Zealand railway returns for 1902 show net earning of £280 per mile. The through rate for ordinary goods from Durban to Johannesburg is just over 3¾d. per ton per mile. The rate for ordinary goods on the Central South African railways (Transvaal railways) for fifteen miles is 9d. per ton per mile; for fifty miles, 6⅔d. per ton per mile; for longer distances, approximately 6d. per ton per mile. The average rate for goods on the Canadian Pacific Railway is only one-third of a penny per ton per mile. Were this rate charged on a ton of goods brought from Durban—the nearest colonial port—to Johannesburg, the cost would be only 13s. 6d. as against £7, 13s. 4d., the present cost; that is, the South African through rate is ten times as much as the average rate in Canada; and the Transvaal rate for ordinary local traffic of 6d. to 9d. per ton per mile is twenty times higher than the average Canadian rate. The Canadian Pacific Railway is selected for comparison, because it is a railway built to develop new and sparsely-populated territory, its special work being essentially the same as that required of the railways of South Africa. The Canadian Pacific Railway has doubled its earnings since 1895. If its policy were copied in South Africa, where the whole industrial life of the country depends on railways, enormous developments could be looked for. In South Africa it is fully realised that, until the burden of excessive railway rates is got rid of, the costs of living must prohibit any great growth of population, and without growth of population the development of the natural resources of the country can only make the slowest of progress. The people are quite willing to provide the Government with revenue, but they wish to provide it by different methods than those which obtained in the past.
Owing to exorbitant fares the people of Johannesburg are practically confined within the limits of the town and its immediate suburbs. They are compelled to pay high rents. £250 to £300 a year represents the present rent for an ordinary cottage. The passenger fares on the London and North-Western are from a 1½d. to 1¾d. per mile first, 1¼d. second, and fractionally under a 1d. third. A great reduction is made on season tickets. Transvaal railway fares average 3d. per mile first, 2½d. second, and 1½d. third, and only a small reduction is made for season tickets. With high rents and high prices for food, rendered dear by cost of carriage, the workers, in order to live, must obtain high wages. High wages mean high-working costs for all industrial enterprises. Consequently only a few industries, and only the richer mines, can be worked at a profit. Ordinary industries which can carry only moderate working costs cannot be undertaken.
Judging from the results of the past six years sweeping reductions are quite possible while still allowing for a paying railway revenue. Mr. Cooper-Key has shown, that the excess profits made by the Transvaal railways alone, after providing for reasonable interest on capital at the rate of 4¾ per cent., were:—
| For | 1896 | £1,162,925. |
| " | 1897 | 1,111,964. |
| " | 1898 | 928,623. |
For the present year the excess profits on Transvaal railways, over a 4 per cent. interest on capital, will probably amount to not far short of £1,500,000.
As might be expected after a consideration of the profits and earning capacity of South African railways, important extensions of the previous system are projected and in progress.
In the Cape Colony there is a project to connect Saldanha Bay, the proposed new port, with the main line viâ Hopefield. A southern line viâ Oudtshoorn and Willowmore will bring Cape Town in closer contact with Mossel Bay and Port Elizabeth, and open up the southern districts of Cape Colony. Another line will join the Port Elizabeth midland line with the eastern system at King Williamstown.
In the Orange River Colony the projected lines are from Springfontein to Koffyfontein; from Bloemfontein to Ladybrand and Ficksburg; from Harrismith to Heilbron or Vereeniging. The line from Bloemfontein to Ladybrand is already partly built. It will open up the wheat-growing section of the Orange River Colony.