Chapter VII · Terms of Purchase.
Reading edition
CHAPTER VII. Terms of Purchase.
Page 56.
Present total market price of all
Railway Stock and shares about £1,350,000,000
Debentures and Loans ” 350,000,000
Total about £1,700,000,000
Estimate of annual sum required according to precedent of purchase of the East Indian Railway Company, namely, by annuities for 73 years, equal to 4¼ per cent. per annum on market value, plus liability for Loans and Debentures with interest at 3 per cent.
4¼ per cent. on £1,350,000,000 £57,375,000
3 ” ” 350,000,000 10,800,000
Total annual sum required for purchase £68,175,000
Revenue available as per above estimates:—
Passengers £46,750,000
Goods 74,800,000
Miscellaneous, as now 10,000,000
£131,550,000
Less Working Expenses, with say, increase of £4,000,000 85,000,000
Net revenue available £46,550,000
Balance required for purchase £21,625,000
would be provided by following further increase of traffic, viz.
100,000,000 passengers at 1s. £5,000,000
10,000,000 ” ” 4s. 2,000,000
30,000,000 tons ” 10s. 15,000,000
£22,000,000
This further traffic brings total increase of traffic to:—
350,000,000 passengers = about 21 per cent.
78,000,000 tons of goods = about 15 per cent.
Essential to purchase all Railways at same date—Railway Stock to be converted into Government Stock—Price to be fixed by average of market price of Stocks for three years prior to introduction of Bill.