186 Timehri. 



railway might be attained by means of outside capital and thus no light 

 is thrown on present propositions. 



Of other methods there are practically two possible. The first is 

 that adopted b} 7 the Colonial Government in respect to the Wismar Rail- 

 way, by advancing the capital to the contractors, repayable in a term of 

 years. This may be varied by a cash grant, plus an advance, plus land 

 grants as iu the Canadian Government terms with the Canadian Pacific 

 Railway 



The second is a Government built line which may either b« worked 

 by the Government or leased to a Railway company at an annual rent for 

 a term of years, as in a portion of the cross-Canada Railway worked by 

 the Grand Trunk Pacific Company. 



In the case of British Guiana the options narrow themselves down 

 probably to a subsidised or a Government built and run railway. 



In His Excellency Sir Walter Egerton's dispatch the latter is 

 the basis of his proposition coupled with a scheme by which Imperial 

 Government advances the money and a grant to meet deficit on working 

 expenses until such time as the financial position of the colony enables it 

 to assume the burden. 



The Sub-Committee of the Committee on Railways recently appointed 

 makes the following amendments on this proposal in a memorandum which 

 will be included in its report : 



1. Deficit of first five years to be charged to capital account. 

 Deficit on working expenses thereafter, if there is any, to be met 

 out of current revenue. 



2. Railway Loan from Imperial Government (1^ million stg.). 

 Interest for six years to bp advanced by Imperial Government. 

 Half interest for ensuing six years to be advanced by Imperial 

 Government. 



After 12 years Colony to pay interest and deferred interest plus 

 Sinking Fund on whole amount. 



3. Development Loan from Imperial Government (three-quarter 

 million stg.). Interest for three years to be advanced by Imperial 

 Government. Thereafter olony to pay interest deferred interest 

 and Sinking Fund. Four or five years may be fixed instead of 

 three. 



The development fund referred to is intended to provide for the 

 introduction of 5,000 immigrants annually (families or possible families 

 stipulated), to replace the labour attracted to the railway and supplement 

 the present indenture. 



It is pointed out that in five years there would be 25,000 adults, 

 mostly married couples, in addition to the children each paying on the 

 usual average (Population : 300,000. Revenue £3,000,000) $10 to the 



