If increase of traffic no more than above, increase of working expenses negligible, apart from economies made by unification. Expense of carrying 200 passengers no more than 20. If increase of traffic more, then revenue increases, but working expenses only by about 50 per cent., as expenses of permanent way, stations, signal boxes, and establishment charges but little affected. Expenses of Post Office and Railways to be lumped together.
[CHAPTER VII.]
Terms of Purchase.
| Present total market price of all | |
| Railway Stock and shares about | £1,350,000,000 |
| Debentures and Loans ” | 350,000,000 |
| Total about | £1,700,000,000 |
Estimate of annual sum required according to precedent of purchase of the East Indian Railway Company, namely, by annuities for 73 years, equal to 4¼ per cent. per annum on market value, plus liability for Loans and Debentures with interest at 3 per cent.
| 4¼ per cent. on £1,350,000,000 | £57,375,000 | ||||
| 3 ” ” 350,000,000 | 10,800,000 | ||||
| Total annual sum required for purchase | £68,175,000 | ||||
| Revenue available as per above estimates:— | |||||
| Passengers | £46,750,000 | ||||
| Goods | 74,800,000 | ||||
| Miscellaneous, as now | 10,000,000 | ||||
| £131,550,000 | |||||
| Less Working Expenses, with say, increase of £4,000,000 | 85,000,000 | ||||
| Net revenue available | £46,550,000 | ||||
| Balance required for purchase | £21,625,000 | ||||
| would be provided by following further increase of traffic, viz. | |||||
| 100,000,000 | passengers | at | 1s. | £5,000,000 | |
| 10,000,000 | ” | ” | 4s. | 2,000,000 | |
| 30,000,000 | tons | ” | 10s. | 15,000,000 | |
| £22,000,000 | |||||
This further traffic brings total increase of traffic to:—
| 350,000,000 | passengers | = about 21 per cent. |
| 78,000,000 | tons of goods | = about 15 per cent. |