12 



of about =£40,000, and it is doubtful if a line of our ordinary 

 or 3ft. (>in. gauge could be constructed through the same 

 country at a cost of <£10,0CO per mile, or say ,£200,000. The 

 interest at 3| per cent, on .£40,000 is <£1,400 per annum. 

 The interest on .£200,000 (which would be the cost of a 

 3ft. Gin. gauge line) at 3£ per cent, would be £7,000 per 

 annum, showing a saving in interest in favour of the 2ft. 

 gauge line of .£5,600 per annum. This difference in interest 

 on the cost of the two lines at compound interest would in 

 less than seven years be more than the total outlay in con- 

 structing and equipping the 2ft. gauge railway. In other 

 words, by constructing the line on the principles we have 

 adopted, its total cost is defrayed by what would be the 

 interest on a 3ft. 6iu. gauge line during the first seven years 

 of its existence. 



