MR. LLOYD GEORGE ON RAILWAY CONSTRUCTION AND THE COST OF

LAND.

[To ram EDITOR OW TEE "SraCraTOa."] BM—At Newcastle on Saturday last Mr. Lloyd George stated "that be had been too hard worked to prepare speeches," and it would have been well for his reputation had he excused himself on that plea. He, however, condescended to particulars, and referred to the high price paid for land by

the railway companies, as though this was a determining

factor in the cost of carriage. Now, Sir, I will quote the figures given by the president in his inaugural address at

the Institution of Civil Engineers only ten years ago. In this he says :-

" Taking a fairly representative section of one of the main lines, outside the Metropolis, and constructed in recent years, as en example, the percentages of the cost of about .640,000 per mils work out somewhat as follows :-- Land and compensation ... 10 per cent.

Earthworks 24 Tunnels, viaducts, road and accommoda-

tion bridges • •• ... ... ...

Permanent way and ballast ... Stations — — — — Sidings, drainage, fencing, legal ex-

penses, &c. ... ... 17 100

From this abstract it will be seen that, for country lines, the value of the land does not form so important a factor in the total cost as is generally understood."

I acknowledge that a high price is usually paid for land, whether the reference be to an arbitrator or a jury. Still, it

only works out to 10 per cent. of the total cost of this railway.

From his experience at the Board of Trade Mr. Lloyd George should know that the cost of carriage has but little relation to the capital spent in the construction of a railway. Take the case of the Great Central Railway. The ordinary shares and a number of preference shares receive no dividend, but the charge for carriage, both of passengers and goods, is regulated by competition with other railway companies and other means of conveyance ; it cannot exceed the limit pre- scribed by statute. The unfortunate shareholders have to make the best of a bad investment. The cost of land becomes a bagatelle, and the cost of construction is somewhat insignifi- cant when contrasted with the working expenses, the heaviest of which is due to handling and procuring the traffic enhanced by the internecine competition among railway companies, to which must be added the cost of locomotive power, mainte-

nance and renewal of rails, compensation for injuries, rates and taxes, &c., &c. The Railway Returns published by the Board of Trade show that the proportion of working expenses to

total receipts for the years given amounted to 1893

In England and Wales.

67 per cent. ...

In Scotland.

52 per cent.

1898 ... 69 „

63 „ 1903 ... ... 63 „ ... ... 66 „ 1908 ... 66 „ m 67 .

The working expenses continue to rise : these are the great difficulty in the way of a reduction of rates of carriage.

That a Chancellor of the Exchequer, responsible for the finances of the country, who has recently been President of the Board of Trade, can put forward statements of the nature above referred to is disquieting in the extreme, and naturally makes one doubt bis accuracy when dealing with figures relating to other matters affecting his Budget. am,

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