Chapter V

=Finance of Scheme.= Page 45.

=Present averages= per annum in round figures taken from Board of Trade returns 1911 and 1912:--

Receipts from Passengers £45,000,000
” ” Goods per passenger train 10,000,000
” ” Goods Train Traffic 64,000,000
” (Miscellaneous) 10,000,000
--------------
Gross Revenue £129,000,000
Working Expenses 81,000,000
--------------
Net Receipts £48,000,000
==============
Total Paid-up Capital and Debentures £1,400,000,000

Net receipts show average income of 3½ per cent.

* * * * *

Total passenger journeys (of which 10 per
cent. were 1st and 2nd class) 1,620,000,000

=Average fare for each journey only 6½d.=

* * * * *

Total tonnage of goods:--

Estimate per passenger trains 20,000,000

Actual per goods trains 524,000,000
------------
544,000,000

* * * * *

Average rates per goods train:--

Minerals only 1s. 6d. per ton
General Merchandise 6s. ”
Both together 2s. 4d. ”

=Estimate under proposed scheme=:-- Page 48.

=I. Passengers.=--Assuming Main Line passenger journeys are 300,000,000, _i.e._, under 20 per cent. of the total passenger journeys.

300,000,000 at 1s. = £15,000,000
add 30,000,000 at 4s. for 1st class = 6,000,000
1,320,000,000 at 1d. = 5,500,000
add 132,000,000 at 5d. for 1st class = 2,750,000
------------- -----------
Present No. 1,620,000,000 will produce £29,250,000

Increased number of Main Line passengers required to make up deficiency:--

250,000,000 at 1s £12,500,000
add 25,000,000 at 4s. extra 5,000,000
---------- £17,500,000
-----------
Estimated total £46,750,000

This is £1,750,000 more than the present gross revenue from passengers and requires an increase of 250,000,000 = 15 per cent. on the total present number of passenger journeys.

=II. Goods.=

Total tonnage by goods train as now,
viz., 524,000,000, at 1s. 6d £39,300,000

Ditto per passenger train, 20,000,000
at 10s 10,000,000

Live Stock, as now 1,500,000
-----------
£50,800,000

Increased tonnage required to make up
present revenue, 48,000,000 tons at 10s. 24,000,000
-----------
£74,800,000
===========

which is £800,000 more than present total receipts from goods per passenger and goods trains, and requires an increase of under 10 per cent. in tonnage.

=Reasons for anticipating increase=:--

=(_a_) Of Passengers.= Long distance journeys now restricted
by expense.--Through tickets now counted as one journey will,
under new scheme, be sometimes two or three, _e.g._, London to
Londonderry would be three tickets--Every single journey taken,
usually means also return journey home.

=(_b_) Of Goods.= Example of Post Office--Before Penny Post,
average price per letter 7d., and letters carried 76,000,000.
After Penny Post, first year number doubled; in twenty years,
increased by eight times; about doubled every twenty years
since. Before three letters per head of population, now 72 per
head. Goods now sent by road motors will, with cheaper rates,
go by rail--perishable articles, now not sent at all by fast
train owing to expense, will be sent when rates cheaper.

CHAPTER VI.
=Working Expenses.= Page 53.

=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.