Let us now look at the problem in more detail; and first is the question
of the railways. The property to be dealt with consists of 3411 miles of
railway, representing a total capital of £45,163,000, of which, at the
date of the Report of the Commission, £2,873,000 paid no dividend; the
gross annual receipts of the whole system being £4,255,000 and the net
receipts £1,690,000, representing a return on the whole capital of 3.77
per cent.[94]
Of these lines, the railways constructed under the Tramways and Light
Railways Acts cover 603 miles, of which 322 are narrow gauge, involving
a liability on various baronies which have guaranteed interest on
capital to the amount of £36,000 per annum. To bring these light
railways up to a proper standard and equipment; to widen the gauge in
many cases; to provide new sheds, stations, and rolling stock, and
redeem the guarantees, a sum of about £5,000,000 would probably be
necessary. In addition, projects for no less than eighty-three new
railways were brought before the Commission;[95] and it is admitted on
all hands, and the Commission find, that practically none of these
railway extensions would be undertaken by private enterprise, and that
these developments need the credit, help, and direction of the State.
Even the necessary improvement of the existing light railways cannot now
be undertaken, for under the system of legislation under which they were
constructed, there is no means of raising new capital.[96]