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The Pamphlet Collection of Sir Robert Stout: Volume 76

What it Costs to Earn each £100

What it Costs to Earn each £100.

Take the six years prior to the appointment of the Railway Commissioners and we find that the average cost was £66 0/8 for each £100.

Then, under the Commissioners, for six years, by means of "starving" and charging £73,618 to Capital instead of Revenue Account, they contrived to reduce this to £61 4/4.

Then the Government resumed control, and for two years without any charge to "Additions to Open Lines," the cost was £62 10/8 per £100.

The last five years deserve a little more careful attention. So rapid has been the increase in the cost of working, that it has attracted the attention of the financial journals in London.

In 1892, notwithstanding that £64,716 was charged to Capital that ought to have been charged to Revenue, the cost of earning each £100 was £61 7/-.

In 1898, £156,732 was charged to Capital Account instead of Revenue, yet the cost rose to £62 6/-.

In 1899, £179,932 was charged to Capital instead of Revenue, and the cost of earning each £100 rose to £63 5/2.

In 1900, £218,357 was charged to Capital, but the cost of earning each £100 again rose to £64 16/-.

In 1901, £325,032 was again wrongly charged to Capital, but no-withstanding this the cost of earning each £100 of revenue rose again to £65 6/-.

Thus we see that after five years' of the present Government's administration of our railways, notwithstanding the fact that they charged £944,769 to Capital instead of Revenue page 7 Account, their Working Expenses have increased £4 1/8 per cent.

As I have already said, the indications for this year are that we shall have a still worse result.

If this is successful railway working, then I do not know the meaning of the word failure. I wish to draw attention to the fact that notwithstanding the rapid and enormous increase in the charges to Capital Account, the percentage of Working Expenses to Revenue just as rapidly increases also. Nothing could more clearly prove that the system pursued is radically wrong. I now produce a Table showing for the last five years the Increase in Passenger and Goods Traffic over each preceding year; and also the Increase in Working Expenses.

Year. Increase in number of Passengers carried over preceding year. Increase in Tons Carried. Increase in Working Expenses. Chanced to Capital Account ("Additions to Open Lines") Total Increase in Working Expenses.
£ £ £ £
1897 276,961 281,129 37,687 64,716 102,403
1898 232,877 149,440 68,137 156,732 224,869
1899 283,289 105,692 72,546 179,932 252,478
1900 512,731 503,815 122,621 218,357 340,978
1901 706,808 211,813 75,489 325,032 400,521
Totals 2,012,666 1,251,889 376,481 944,769 1,321,249

I invite your special attention to the rapid and enormous increase in this account. What there can be in the increase ill traffic to require this huge increase in working expenses is more than I can imagine.

I should like, gentlemen, also to direct your attention to the enormous