INDIAN RAILWAYS.

Wairarapa Age, Volume XXXII, Issue 9636, 30 October 1909, Page 3

INDIAN RAILWAYS.

I How large a part agriculture play I in'the affairs of transport companie § is illustrated in a striking manne I by the report on the Indian railway § j just issued. For seven years prior fc I the twelve months utrier review thi I gross receipts of these lines hav< 3 steadily increased until they amount j ed to £31,536,000, yielding a net re I turn of 5.86 per cent, en the capita expended. The figures now presented, however, are eloquent of the fail ing off, the gross earnings havina j diminished by £1,652,01)0, whilst | the working expenses h.ive increased by £1.786,000. The net revenue was thus lower by £3,438,000, and the return on the capital fell away to 4.33 p?r cent. The heavy drop in gross earnings was entirely due to the goods traffic, and the c luse may be found in the failure of cropa, a reduction in the spending power of the people, .and a shrinkage in the export trade. As an instance of the last named, the failure of the wheat yield caused a decline iti of £700,000 on the line to Karachi, and other systems were effected to a lesser degree. The rise in expenses is explained by the enormous increase in the price of coal, and also the higher cost of living, which necessitated increased salaries to the working staff. The financial result to the State was serious, for there was an actual deficit of £1,557.000 in 1908, as against a net gain of £2,552,000 ' in the preceding year. The last time the balance was on the wrong side was in 1899, and then the loss enly amounted to £307,000. Possibly the big surpluses in recent years have encouraged a policy of extravagance, and certainly the abnormal rise in working costs suggests some such explanation. If so, the setback last year may prove a useful corrective, and as general conditions in India have very much improved during the last six months, it is to be hoped that f>r the current year a better showing will be roads. In so far as improved trading conditions throughout the world can influence the position of the Indian railways, there are gonj grounds for optimism, but tha most satisfactory featJre of all is the abundant monsoonal rains that have just fallen all over the country.