CHAPTER VII.

=Terms of Purchase.= Page 56.

=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.

Essential to purchase all Railways at same date--Railway Stock to be converted into Government Stock--Price to be fixed by average of market price of Stocks for three years prior to introduction of Bill.