J^A/LWAFS AND TRAMWAVS. 



^15 



Corajjarisous sucli as tliis need corameut. It is apparent that the 

 capital account has grown faster than the traffic^ and distinctly faster 

 than the gross revenue. The bulk of this increased expenditure on 

 capital account had been sanctioned in 1888^ and there was, there- 

 fore, no means of arresting it. The prevailing depression has 

 doubtless restricted the expansion in the gross revenue ; but when 

 the comparison is carried further, it is found that, althougli the gross 

 revenue has increased nearly 7 per cent, less than the capital, the 

 working expenses have increased nearly 30 per cent, less than the 

 capital, as an additional £583,080 has been earned at an increased 

 working cost of only £37,038 ; and thus £546,042 has been added to 

 the net profit, which has grown by 71 i per cevit. It is to this keep- 

 ing down of the working charges that the increase in the net return 

 upon the capital by f per cent, is attributable in a comparatively 

 adverse year. 



How has this been accomplished ? Any restriction of renewals, 

 though it might improve the net return for a year or two, would be 

 injui'ious and in the end costly, and it has already been shown that the 

 addition to the working expenses has, practically all of it, been incurred 

 upon renewals. But this is not all. Materials are much cheaper than 

 they were in 1888, and an extra charge of 19 per cent, for materials 

 put into permanent way in 1894-5 means nearly 50 per cent, in the 

 actual materials used. But those 50 per cent, more materials were 

 put iuto the jjermanent way at an actual reduction in the cost of 

 labour of 16 per cent., so that per unit of the staff employed some- 

 thing like 60 per cent, moi-e work was accomplished. This is apparently 

 substantial evidence that renewals and maintenance have not been 

 restricted. 



We must, therefore, look elsewhere. In the earning of 25^ \^0Y ceut. 

 more gross revenue, only 13 i per cent, extra train mileage has been 

 employed. It has already been indicated what has been the saving in 

 the stores departments. Then, too, the general expenses, including 



