GREAT RAILROAD SCHEME

Timaru Herald, Volume XIIC, Issue 13656, 27 July 1908, Page 3

GREAT RAILROAD SCHEME

An elaborate and important report on Indian Railway Finance and Administration, .from a Commissuon appointed by the Secretary for India in May of kist year was issued in June. * . • The Commission, of which Sir J. Lyle Mackay was chairman, included Sir W. R. Lawrence, Sir Felix Schuster, Sir David Barbour, and Mr L. Abrahams.

In answering the five questions put by Viscount Moriey, they recommend a programme of railway development involving an outlay of £100,000,000. The general recommendations may be summarised as follows::

1. The annual expenditure for railway construction and equipment should be iiureawd from £10,000,000 to £12,500,000, equal to £100,000,000 in the next eight years. 2. It would not be impudent to contemplate raising £9,000,000 of. this sum in London in normal years. This with the £5,000,000 usually obtainable in India, would make £14,000,000, of which all but £1,500,000 would be available, for capital outlay.

3. The portion io be obtained in England should be raised by the issue of ordinary India stock and of debpenture stock and share capital by guaranteed companies. In view of tie profits and benefits derivable from railways, there are sundry suggestions to the Indian Government, for the augmentation of the funds for capital expenditure on railways. It is also proposed that lines now dependent on Government capital may obtain such capital elsewhere, and that one or more State lines should be leased for a long period, even up to fifty years. 4. Equipment and improvement of existing railways should take precedence over new construction.

5. The constitution of the Railway Board should be modified so that it should consist of the president and two members, one experienced in railway construction, an! the : other in railway traffic, with a thoroughly efficient stall The Government of India should not, unless in very exceptibnal circumstances, interfere with the Board in the exercise of its functions. Among otiher fruggcstions outside the questions which were put to them, the Commission suggest that advantage should be taken of periods of " easy money" to raise funds in excess of immediate requirements.