The Nineteenth Century , No 182, Apr 1892 [‎64r] (132/244)

THE CREDIT OF AUSTRA 617
—
Present Railway
Pares and Freight
(1889) ,
Carriers' Preight and
Pares(1870)
Reduction
Per cent.
Average fare per passenger 1
per mile . . . j
Average freight per ton per"'
mile of goods of all
description . . J
I-
!-
1-15^.
1-77^.
2-92^.
lOd.
59-15
82-30
2-92d
Is. 0-92 d
77-40
The true interpretation of this remarkable reduction in cost
of transit within this brief period is simply this that for every
now obtained as gross receipts there is a hidden value of at least
saved to the country, or to the producer or consumer, owing to the
•cheapening of cost of transit of goods and passengers.
It will suffice, however, to gauge the immense value which the
saving in cost of transit by railways represents to the colonies as a
whole, if we take the latter at a reduction of 66*66 per cent., or
two-thirds of the ratio of former cost. The following account, for
the seven colonies, for the year 1890 shows the net advantage to
the country effected by railway communication after discharging all
expenses connected with maintenance and working, and capital
borrowed towards construction (107,712,644/!.).
Year 1890
Per cent, to
^ £ Capital Invested
vxtoss receipts^ railways, tramways. . . , .9130 532 3.4
Add saving represented on the same amount of traffic,
if carried at rates charged prior to introduction of
railways t 18,273,064 16-96
27,409,596 2543
Deduct working expenses . . . 5,960,436 5-53
Interest on capital invested—viz.,
£107,712,644, at 4-13 per cent. . 4,448,532 4-13
10,408,968 9-66
JBalance, profit to the country:
From saving in cost of transit and working railways
in the year 1890 . . . . . .17,000,628 15-78
27,409,596
These figures clearly show that, in the year 1890 alone, the actual
benefit to the colonies, arising from the introduction of railways
represents a sum of 17,000,628/., equal to 15-78 per cent, of the total
capital invested in railways open for traffic in the same year, after
discharging all expenses connected with working the railways, and the
yearly charge for interest on borrowed capital. At 4 per cent, this