§ MR. SUMMERSasked the Under Secretary of State for India, Whether it is true, as stated by Mr. A. K. Connell, in his work on the Economic Revolution of India, that interest charges for Guaranteed and State Railways, paid out of the ordinary revenues, amounted in 1881–2 to over £32,000,000, and to over £34,000,000 if loss by exchange be taken into account; and, whether, in view of these two items, loss by exchange and past interest charges, the Indian Railways earn 5¼ per cent on the whole capital outlay?
§ MR. J. K. CROSSSir, up to the 30th of June, 1882, the amount advanced to the Guaranteed Railway Companies—omitting the East Indian—was £25,344,000, and the Government share of surplus receipts amounted to £1,697,000, giving an excess of £23,647,000. When the East Indian Railway was purchased, the guaran- 1502 teed interest advanced amounted to £4,505,000. The surplus profits received by Government have amounted to £6,523,000, or £2,818,000 in excess of the amount advanced it as a guaranteed line. The total sum advanced, may, therefore, be put at £21,629,000. If loss by exchange on past transactions be added the amount will, no doubt, be greater. The capital cost of all the lines open to traffic on the 31st of December, 1882, was about 143 crores—the net revenue was 78 lakhs—or 5.37 per cent. If the capital cost be raised by the addition of the interest advanced to, say, 167 crores, the net revenue was 4.6 per cent.