81 



this country, or ratlin- our railways as a first class in- 

 vestment, is undoubtedly the reduced dividends which 

 They pay, but before proceeding to the simple expe- 

 dient of raising rates of freights, \ve should study 

 whether improved methods cannot achieve anything. 



ECONOMICAL RUNNING V. HIGH FREIGHTS. 



Much of the money invested in railways, and on 

 which amortisation and interest must be paid, is gone for 

 ever, spent in preliminary expenses, compensation for 

 land, etc., etc. ; the values represented in the construc- 

 tion and stations is calculated at 50 per cent, and the 

 rolling stock 10 per cent, of the total disbursements. 

 All this money spent in the country has greatly contri- 

 buted to its present prosperity, and those who invest- 

 ed it have every right to expect some proportion of the 

 good things which they have made possible. Whether 

 it is desirable for their own interests to adopt a policy 

 which will end by preventing our products from reach- 

 ing the consumer cheaply and in abundance is not at 

 all proved. 



It is desirable for their own interests to develop 

 the country through which they have laid down their 

 lines, and this cannot be accomplished if the cost of 

 production is unduly raised. 



Of course we cannot expect the railways to be run 

 at a loss : then logically the only recourse lies in the 

 most economical working. This does not, as we see in 

 the case of the North American lines, mean the aban- 

 doning of the lines without further improvements, nor 

 necessarily the. reduction of salaries and wages, but in 

 the adoption- of every means whereby expenses may 

 be reduced even if this means additional inversion of 

 capital . 



At the same time it must be brought home to our 

 governors and legislators that we pay our interest on 

 the railway investments through our exporting commo- 

 dities which our creditors are prepared to pay for in 

 turn and that it is illogical to suppose that by suppress- 

 ing our contribution to foreign investors we gain great- 

 ly. In every case we must take something in exchange 

 from our customers. These tremendous trade balances 

 in our favour are more apparent than real in adding 

 to our wealth and prosperity. For the moment and for 

 a great many years to come the cheapest, and most 

 economical method is to pay back in goods, in meat 



