=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
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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
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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
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£131,550,000
Less Working Expenses, with
say, increase of £4,000,000 85,000,000
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Net revenue available £46,550,000
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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
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£22,000,000
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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.