ws aii 
 
 
 
 
 INDIAN RAILWAYS 
 
 DESCRIBED; 
 
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 THE GOVERNMENT 
 
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 EXPLAINED: 
 
 WITH 
 
 
 ■■K:. 
 
 A MAP, AND THE CONTRACT IN FULL. 
 
 
 £*vC'- 
 
 BY 
 
 I 
 
 
 ■ / 
 
 
 JOHN WHITEHEAD, 
 
 OP THE STOCK EXCHANGE, LONDON ; 
 
 AUTHOR OF “GUARANTEED SECURITIES, THEIR MERITS AS INVESTMENTS CONSIDERED,” 
 “THE KEY TO RAILWAY INVESTMENTS,” &C., &C. 
 
 p rnp: 
 
 ■ S ■> ' 
 
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 OF 
 
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 LONDON: 
 
 PRINTED FOR, AND TO BE HAD OF, THE AUTHOR ONLY, AT 
 
 MESSRS. J. <fe J. WHITEHEAD’S, 8, MOORGATE-STREET, E.C. 
 
 1869. 
 
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 Price One Shilli^ia^and Sixpence. 
 
 
In Preparation , 
 
 A NEW EDITION OF ME. WHITE EE AD’S WOEK, 
 
 GUARANTEED SECURITIES : 
 
 THEIR 
 
 MERITS AS INVESTMENTS CONSIDERED. 
 
 BY 
 
 JEFFERY WHITEHEAD, 
 
 OF THE STOCK EXCHANGE, LONDON. 
 
 This Edition will be brought up to the end of the year 1861, and contain an 
 accurate description of all the Guaranteed and Preference Securities of the different 
 Companies (Railway &c.) of the United Kingdom. The work itself will be ready 
 for circulation as early in 1862 as possible. Orders will be received by Messrs. 
 J. & J. Whitehead, Stock and Share Brokers, 8, Moorgate-street, E.C., London. 
 
The person charging this material is re¬ 
 sponsible for its return on or before the 
 Latest Date stamped below. 
 
 Theft, mutilation, and underlining of books 
 are reasons for disciplinary action and may 
 result in dismissal from the University. 
 
 University of Illinois Library 
 
 RPR, 25 196 
 
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INDIAN RAILWAYS 
 
 DESCRIBED; 
 
 THE GOVERNMENT CONTRACT 
 
 EXPLAINED: 
 
 WITH 
 
 A MAP, AND THE CONTRACT IN FULL. 
 
 BY 
 
 JOHN WHITEHEAD, 
 
 OF THE STOCK EXCHANGE, LONDON ; 
 
 AUTHOR OF “ GUARANTEED SECURITIES, THEIR MERITS AS INVESTMENTS CONSIDERED,” 
 “ THE KEY TO RAILWAY INVESTMENTS,” &C., &C. 
 
 * LONDON : 
 
 PRINTED FOR, AND TO BE HAD OF, THE AUTHOR ONLY, AT 
 
 MESSES. J. & J. WHITEHEAD’S, 8, MOOEGATE-STEEET, E.C. 
 
 1862. 
 
 Price One /Shilling and Sixpence. 
 
LONDON: 
 
 BRADBURY AND EVANS, PRINTERS, WHITEKRIARS. 
 
\N 5 ^ 
 
 «=?> 
 
 -r? 
 
 i 
 
 -'ts 
 
 p 
 
 <v 
 
 £> 
 
 « 
 
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 INDIAN RAILWAYS, 
 
 ETC., ETC. 
 
 > 
 
 The ignorance which prevails respecting the constitution 
 and merits of Indian Railways (recently increased by studied 
 misrepresentations), would alone justify the publication of any 
 work which had in view the dissemination of reliable informa¬ 
 tion respecting them, though the millions of English capital 
 which have been subscribed for these great works, and the 
 systematic attempts referred to, to damage them in public 
 estimation, as investing media , did not encourage such 
 purpose. 
 
 Prompted by the above considerations, this work has been 
 undertaken, and that the most accurate information may be 
 furnished, official or other trustworthy sources have alone been 
 sought, for reference or otherwise. 
 
 The contract entered into between the Government and the 
 
 ■ v 
 
 Companies will be found in extenso in the Appendix—such 
 marginal notes only being added as may lead to the more 
 easily comprehending its conditions. As a whole, the contract 
 appears to be perfectly fair, inclining, if to either side, to that 
 of the Companies. 
 
 That the Government has retained the control of the expen- 
 diture in its own hands should surprise no one who estimates 
 
 
 n 59494 
 
2 
 
 INDIAN RAILWAYS. 
 
 the heavy responsibility it has undertaken, not only in guaran¬ 
 teeing 5 per cent, interest to the capital, hut in seeing that 
 India is thrown open at all points to the benefits of railway 
 communication, on the easiest and most practicable terms. 
 
 Though, as a rule, Government interference with public com¬ 
 panies is justly deprecated in this country, in India, as far as 
 railways are concerned, such power is protective of the distant 
 shareholder, no works or outlay of any kind being permitted 
 without previous approval being obtained. The judicious 
 application of this preventive right will keep down the capital 
 expenditure (the shareholders’ true question) at its lowest. 
 This supervision and control are furthermore justified on the 
 ground that the cheaper railways are now constructed in India, 
 the greater and more certain will be their early success and 
 future extension. English capital will not be advanced in aid 
 of future railways, if the lines now on the eve of completion do 
 not prove commercial successes. 
 
 The natural desire of the Government being to advance the 
 interests of existing lines, that competition which has injured 
 railway property in England need not be apprehended in India, 
 nor can those causes of damage to Indian Railway Stocks arise 
 which have worked so detrimentally to the primary shareholder 
 in English lines, in the shape of preference share engage¬ 
 ments. 
 
 Contrasting Indian Railways in the matter of cost of con¬ 
 struction with a few English, Irish, and Scotch lines, it will be 
 seen that in the main they stand the test very much to their ad¬ 
 vantage, and that they possess that primary element of success 
 (cheapness of works) in a degree which shareholders in English 
 railways may indeed envy; and it may be here observed that 
 the Indian companies not undertaking a given work for a stated 
 sum, are not bound, should the original estimate be exceeded, 
 to find any further capital that may be required to com¬ 
 plete it, and would not do so unless the terms of issue were 
 agreeable to them. 
 
INDIAN RAILWAYS. 
 
 3 
 
 The following examples will elucidate the important point of 
 cheap construction :* * 
 
 
 
 
 Average 
 
 
 Miles of own 
 Railway. 
 
 Railways. 
 
 Cost per 
 Mile of 
 
 
 
 
 
 Railway. 
 
 
 
 
 
 £ 
 
 
 
 ( 648 
 
 London and North 
 
 
 \ 
 
 English < 
 
 J 
 
 Western . 
 
 47,176 
 
 
 
 \ 234 
 
 Great Northern 
 
 44,110 
 
 
 
 ( 219 
 
 Caledonian . 
 
 41,405 
 
 
 Scotch < 
 
 183f 
 
 Glasgow and South 
 
 
 
 
 
 Western 
 
 25,279 
 
 
 
 f 330 
 
 Great Southern and 
 
 
 / 
 
 
 
 Western of Ire- 
 
 
 
 Irish 
 
 192J 
 
 land . 
 
 Midland Great Wes- 
 
 15,877 
 
 
 
 
 tern of Ireland . 
 
 13,280 
 
 / 
 
 
 ^ 1137t 
 
 East Indian 
 
 18,250 
 
 N 
 
 
 850 
 
 Madras 
 
 10,000 
 
 
 
 1266 
 
 Great Indian Pen- 
 
 
 
 
 
 insula . 
 
 9,479 
 
 
 
 3091 
 
 Bombay and Baroda 
 
 11,308 
 
 
 Indian < 
 
 114 
 
 250 
 
 Scinde 
 
 Punjaub . 
 
 13,158 
 
 9,000 
 
 > 
 
 
 78J 
 
 Great Southern of 
 
 
 
 
 
 India . 
 
 7,007 
 
 
 
 29 
 
 Calcutta and South 
 
 
 
 
 Eastern 
 
 11,379 
 
 
 
 [ 110 
 
 Eastern Bengal 
 
 12,727 
 
 J 
 
 Remarks. 
 
 These figures are 
 only approxi¬ 
 mates to accu¬ 
 racy, the Com¬ 
 panies’ accounts 
 not giving the 
 data to render 
 them with exact¬ 
 ness. 
 
 These results are 
 worked out from 
 Mr. Danvers’ Re¬ 
 ports, and the 
 Companies’ ac¬ 
 counts. 
 
 Having shown in the question of cost of construction that 
 Indian Railways hold an enviable position, and, furthermore, 
 that they possess within themselves other elements of 
 prosperity, it is proposed to submit a few remarks on the 
 
 * The English are lines having at the least double tracks of rails; the Indian, to a 
 great extent, are single lines, and would require an outlay of at least £3000 per 
 mile to make them double throughout. This cost will not, however, be incurred until 
 the traffic shall become so great as to necessitate it. 
 
 t The whole capital has been estimated to have been increased £3,000,000 by the 
 Santhal rebellion and the Indian mutiny (£2638 per mile). 
 
 b 2 
 
4 
 
 INDIAN RAILWAYS. 
 
 guarantees which have been given by the Indian Govern¬ 
 ment. 
 
 Besides the Railway Guaranteed Five per Cent. Stocks—a 
 favourite stock exists, called the “ India Five per Cent. Stock ’ y 
 -—transferable at the Bank of England, in the same manner as 
 Consols. This stock stands at the present time (the Dividend 
 added) equal to £l05j per T100 [stock: the Railway stocks 
 (also including the Dividend)—the East Indian Railway stock 
 at moof per T100 stock; the Great Indian Peninsular, Par; 
 the Bombay and Baroda, ;£98j; and the Punjaub, ; 
 
 the guaranteeing body and the guaranteed rate being in each 
 case the India Council and five per cent. It is true, that the 
 cost attending the purchase and transfer of the Railway 
 stocks is £l per cent, over that of the India Five per Cents. 
 This, however, if no other disturbing quality exist, justifies 
 only that difference between the two. 
 
 The conditions under which both classes stand are as 
 follow :— 
 
 The India Five 'per Cent. Stock. 
 
 1. Five per cent, per annum is guaranteed to it, payable out 
 
 of the revenues of India. 
 
 2. At any time after 5th July, 1870, the Government 
 
 possess the right to redeem the stock at par, on one 
 year’s previous notice being given. 
 
 The Raihvay Stocks. 
 
 1. The engagements the Companies have entered into are to 
 
 endure for a period of ninety-nine years, from the date 
 of the respective leases, unless previously vacated under 
 the reserved powers, 
 
 2. The Government guarantee five per cent., on certain 
 
 conditions set forth in the contract, on all the capital 
 paid into the Indian Treasury, and expended with 
 
INDIAN RAILWAYS. 
 
 5 
 
 Government approval, the revenues of India being the 
 pledge. 
 
 3. The live per cent, interest paid to the Proprietors, with 
 
 simple interest added, is to be refunded by the respective 
 Companies to the Government, out of one-half the 
 profits realised in excess of five per cent., the other 
 half going to the Shareholders, all profits made prior 
 to the completion of each line being applied to the 
 credit of this interest account. When the whole in¬ 
 terest debt has by this means been expunged, then all 
 the surplus profits are to pass to the Shareholders. 
 
 4. If the profits are not sufficient to meet the five per cent. 
 
 guaranteed, the Government will make the deficiency 
 good; but if the working expenses should prove greater 
 than the total gross traffic, then the amount short earned 
 would have to be made up out of the Guaranteed 
 Interest Fund; and the Shareholders would, in such 
 event, receive so much less than five per cent, as the 
 amount of the short earning trenched on the total of 
 the guarantee fund. If the latter were all so swept 
 away, so would the dividend be—the obligation the 
 Government is under being simply to provide sufficient 
 means to cover the sum total of the guarantee, but not 
 to make good any loss in working the line too.* 
 
 5. The Companies have the right to surrender the works, &c., 
 
 to the Government after any part of the line has been 
 opened three months—six months’ prior notice of such 
 intention being required. This would necessarily be the 
 course which would be followed if the lines were worked 
 even at a partial loss, for the Companies would never suffer 
 their five per cent, to be frittered away in working ex¬ 
 penses. In the event of surrenderbeing made, all monies 
 
 * This point is illustrated in an extract from Mr. Slaughter’s “Railway 
 Intelligence,” in the Appendix (page 64). 
 
6 
 
 INDIAN RAILWAYS. 
 
 which had been expended with the Government approval 
 would have to he repaid to the Companies, or an equiva¬ 
 lent annuity granted.* 
 
 6. The Government has the right, if notified within six 
 
 months of twenty-five or fifty years respectively, to 
 possess itself of the railways (one or all), paying for the 
 same at the mean market value the stocks maintained 
 in London the three previous years. 
 
 7. The Government can take possession of any line which 
 
 may not be completed or worked satisfactorily, repaying 
 within six months the sums which have been properly 
 expended. 
 
 8. At the expiration of the ninety-nine years the land reverts 
 
 to the Government, if the Railway Companies shall not 
 before then, under the powers they are vested with, have 
 surrendered the lines. The Government would, in the 
 case of such reversion, have to pay for the engines, car¬ 
 riages, and other railway plant at a valuation, the pro¬ 
 ceeds being the only sum that would then be divisible 
 amongst the Shareholders. 
 
 9. The Government in the events of surrender or purchase 
 
 have the right, in place of repaying the capital at once, 
 to pay an annuity to each Shareholder, to be reckoned 
 from the time when the gross payment is due, and to 
 continue the same during the residue of the ninety-nine 
 years—the rate of interest of such annuity being the 
 average that India Government securities may have 
 borne in London for the two years which preceded the 
 granting the annuity. 
 
 To make this perfectly plain, the following illustrations will 
 be sufficient:— 
 
 1. Suppose the average rate five per cent.—the sum to be 
 
 * On this point Mr. Danvers, the now Official Railway Director, in his Report of 
 1859, explains that the Government “ would have to repay the whole amount that 
 has been expended, with their sanction, on the undertaking.” 
 
INDIAN RAILWAYS. 
 
 7 
 
 met £1000.—In tliis case, the annuity having seventy- 
 five years to run, the annual payment would be 
 <£51 5s. 2d .—the present value £1000. 
 
 If the annuity had fifty years only to run, the annual pay¬ 
 ment would be £54 15s. 6d.—the present value £1000. 
 
 2. Suppose the average rate four per cent.—the sum to be 
 met £1000.—In this case, the annuity having seventy- 
 five years to run, the annual payment would be 
 £42 4s. 7d .—the present value £1000. 
 
 If the annuity had fifty years only to run, the annual pay¬ 
 ment would be £46 11s. 0 d .—the present value £1000. 
 
 Each of these annual payments, spread over the periods 
 stated, is equal to receiving four per cent, on £1000 in per¬ 
 petuity, that sum being rendered back for re-investment at 
 the end of seventy-five or fifty years, provided the excess 
 of annuity over £40 is year by year for either period laid out 
 at compound four per cent, interest. Thus £2 4s. 7d., and its 
 annual accumulations so laid out every year would in seventy- 
 five years produce £1000—so £6 11s. 0 d. in fifty years. 
 
 The Shareholder will be paid for his Stock, not at the par* 
 price of issue, but at the value it may possess under the 
 arrangement; and if prosperity attend the Companies, this 
 may amount to a large excess—thus, if the original Stock of 
 £1000 should be declared to be of the value of £1500, then 
 the £42 4s. 7d. would, in effect, become £63 6s. lOd. ; and the 
 £46 11s. 0 d. in effect also would become £69 16s. Gd., the re¬ 
 production of the £1500 depending on the excess over £60, 
 being in either case placed out at four per cent, compound 
 interest, for the respective periods the annuities may exist. 
 
 10. The Government has the power to reduce the rates and 
 tolls when ten per cent, is realised by the Shareholder, 
 only, however, to keep up that rate, but not to reduce it. 
 
 * This cannot be under par unless the Companies fail to surrender, a most 
 unlikely contingency. If paid half-yearly the annuity would he rather less than the 
 sums stated. 
 
8 
 
 INDIAN RAILWAYS. 
 
 The power is permissive, not peremptory, and may not 
 be used, and even if used, the effect might be so to add 
 to the profits from increased trade as perforce to keep 
 the dividend, not at, but far above ten per cent.—this 
 rate is not the limit of profits, but only the point at 
 which Government may intervene. In explanation of 
 this much misrepresented power, Mr. Danvers in his 
 Report of 1859 states, “In the event iof the profits 
 exceeding ten per cent., the Government can order a 
 reduction in the rates, but not to such an extent as to 
 bring the net receipts below ten per cent, on the capital.” 
 
 So far in explanation of the arrangements which exist between 
 the Government and the Five per Cent. Stockholders (India 
 and Railway). 
 
 The dividends on all the Stocks are made up to 30th June 
 and 31st December in each year, and paid early in the following 
 months, the India Five per Cents, being met at the Bank of 
 England on personal application, the Railway Stocks by divi¬ 
 dend warrant sent by post to every Shareholder. 
 
 In drawing attention to the difference in price of stocks, 
 which rest on one and the same basis for security, it is with no 
 wish to lower either for the purpose of raising others; on 
 the contrary, it is considered that all of them in their simple 
 five per cent, character merit a far higher price than they at 
 present command. 
 
 If the contradictory values pointed out apply with any force 
 as between the India Five per Cents, and the ordinal stocks 
 of the Railway Companies, how much more do they to the in¬ 
 convertible debentures of the latter bodies, which have the same 
 Government promise to pay to rely on? Furthermore, the 
 holders, in some of the issues, at the end of five years from 
 the date of their creation, have the right in themselves, as it 
 may at the time suit their purpose, to keep the loan open, 
 at five per cent., for a further term of five years. These 
 debentures are transferable from hand to hand by endorse- 
 
INDIAN RAILWAYS. 
 
 9 
 
 ment (a great advantage), and the interest is collected half- 
 yearly by coupons which are attached to them. There 
 exists, likewise, another class of Debentures, transferable by 
 deed, which possess, during their currency, a right of conver¬ 
 sion into the stock of the issuing Kailway Company, at any 
 time after twelve months from the date of issue. This valuable 
 privilege gives to these Debentures a superior value over the 
 mere Loan Debentures. 
 
 That the Contract between the Government and the Rail¬ 
 way Companies should undergo the usual twisting, torturing, 
 and misconstruing which legal deeds must endure, is not to be 
 regretted, and provided such criticisms are fairly and honestly 
 made, would never be complained of. Whether this instru¬ 
 ment has been so honourably considered, the reader will judge 
 from the following remarks, which apply to some pamphlets 
 on the subject, which have created, from the boldness of their 
 
 f 
 
 statements, much anxiety amongst the Shareholders in Indian 
 Railwaj^s. 
 
 The ingenuity of one exponent of the contract is seriously 
 taxed to make out a case under Clause 12, which binds the 
 Companies to maintain the railways, even at the cost of the 
 whole of the guaranteed interest for the time being, if the lines 
 should prove so unproductive as to call for such expenditure, 
 as if the Companies would await such a calamitous result, to 
 put in force the power of surrender and repayment of capital 
 secured by Clause 21. To this easy relief the candid writer 
 makes but casual reference, preferring that the Shareholder 
 should suppose that because the railway, as a paying property, 
 was a failure, his whole capital was in jeopardy, than which, 
 except by the most improbable supineness in the Companies, 
 nothing can be more untrue. 
 
 Again, Clause 21 is wholly misrepresented in its intent; it 
 is commented on, and emphasised by italics, to lead the reader 
 to suppose that the interest debt would constitute such a 
 “ charge” on the Companies as would entitle the Government, 
 
10 
 
 INDIAN RAILWAYS. 
 
 in the event of surrender, to deduct its total from the capital, 
 to be then repaid, than which, as will be shown presently, 
 nothing can be more erroneous. 
 
 The commentator proceeds to remark: “No doubt the 
 Government undertakes to purchase the railway or other work 
 when required to do so.” Then follows this misrepresentation : 
 “ But it provides that the line or work shall previously be put 
 into the most perfect state of repair at the expense of the 
 Shareholders, and that all losses which occurred in working 
 the line, and also all sums advanced as interest, shall 
 
 BE DEDUCTED FROM THE PURCHASE MONEY.” And to give 
 
 greater force to this latter falsification, makes the further 
 addition, “ and the works are held as security for this repay¬ 
 ment ” ! ! How or where in the Contract this double mis¬ 
 statement is justified it would not be possible to discover. 
 
 Other clauses, with a few unimportant errors in them, are 
 quoted; but Clause 21 has been so mis-stated, as to justify the 
 republication of that part of it under which the pamphleteer has 
 ventured to enunciate (professedly as a guide and warning to 
 the Shareholders) his most unjust conclusions. The subject 
 of the clause is the “ surrender ” of the line. 
 
 Part of Clause 21 from the 
 Contract. 
 
 ee And thereupon the covenants 
 hereinbefore contained for payment 
 of interest shall cease as from the 
 day upon which the said line of 
 railway and works are to be sur¬ 
 rendered and accepted; and all 
 claims by the Secretary of State in 
 Council, on account of interest, on 
 the said Railway Company in 
 respect of the said line of railway 
 shall also cease, and the Secretary 
 of State in Council shall be at 
 liberty to retain, out of any monies 
 
 Part of Clause 21 from the 
 Pamphlet. 
 
 “ And thereupon the aforesaid 
 covenants for payment of interest 
 shall cease as from the day upon 
 which the East India Company 
 shall be bound to accept the said 
 railway and works, and all claims 
 by the East India Company on 
 account of interest, or otherwise, 
 on the said Railway Company shall 
 also cease except that the [the 
 following appears in italics] East 
 India Company shall be at liberty 
 to retain , out of any monies pay- 
 
INDIAN RAILWAYS. 
 
 11 
 
 payable to the said Railway Com¬ 
 pany, tlie amount of all claims 
 and demands of any sort then 
 existing against the said Railway 
 Company on their revenue account 
 in respect of their said railway, and 
 which shall not be shown to have 
 been fully satisfied and discharged : 
 Provided always that,” <fcc. Ac. 
 
 able to the said Railway Company, 
 the amount of all other claims or 
 demands of any sort existing against 
 the said Railway Company on their 
 revenue account in respect of their 
 undertaking, and which shall not be 
 shown to have been fully satisfied 
 and discharged witil the same shall 
 have been satisfied and discharged. 
 Provided also that,” <fcc. &c. 
 
 If the above extracts be compared one with the other, the 
 difference between them will quickly be detected, not only in 
 the words but their force. The extracts are stated in the 
 pamphlet to be from a “ Blue-Book published in 1859,” of 
 which the author in his innocence observes, “ their existence is 
 scarcely known to the public at large, and it is only within the 
 last few days that I became aware of the accessibility of such 
 information.” Now that this not over particular writer knows 
 where Blue-Books are to he obtained, it is to be hoped if he 
 again appears in print, he will at least make his extracts with 
 correctness. The Blue-Book the true clause is taken from is 
 Mr. Danvers’ Report of 1859, to the Secretary of State for 
 India, and is doubtless the “ Blue-Book ” the author alleges he 
 has quoted from. 
 
 The reimbursement of the interest debt, it is clear under 
 Clause 18 of the contract, is confined to one-half the profits 
 obtained over 5 per cent. If no surplus profits should arise 
 during the period of the lease, the debt to the last would 
 remain unredeemed. The Government, under this Clause, 
 having elected to be repaid out of surplus profits, to these 
 alone must they look, should the evil day ever come when the 
 Railway Companies determine to pass the lines over under 
 Clause 21. The Government cannot in this particular have a 
 lien on the Company’s capital, and a hold on profits too; they 
 have barred themselves from such right, and, according to the 
 
n 
 
 INDIAN RAILWAYS. 
 
 official explanation given by Mr. Danvers, they do not possess it. 
 It will be observed that in this particular clause (21) a mutual 
 deed of release on this interest account, of payment to the 
 one, and of claim by the other, is to be executed in the event 
 of surrender; proof sufficient that “ claims ” on both sides 
 would then become defunct. 
 
 It has further been boldly stated that the Government have 
 forced on the Companies an unfair condition, in stipulating 
 that the military and their necessary accompaniments of 
 horses, stores, followers, &c., shall be conveyed at low fares 
 in superior carriages, the assertor being as ignorant as he 
 was of “ Blue-Books” being accessible, that the same provision 
 is contained in every Act of Parliament affecting English rail- 
 waj'S, and that no trains thoroughly filled with such traffic 
 pay better than military trains do. 
 
 Again, it has been attempted to induce the public to believe 
 that the Steam Company, which forms so essential a link in the 
 Scinde Railways, has had such onerous conditions put upon it, 
 as to make the undertaking of necessity a losing concern, whereas 
 the per centages of profits which, under the contract, are to be 
 set aside to meet the insurance and maintenance of the vessels 
 constituting the fleet, together with the repairs, are such only 
 as every prudently conducted steam-vessel company does or 
 should set aside for such purposes. The risks attending 
 steam-ships in navigating any waters are ever great, possibly 
 greater in India than elsewhere, and require necessarily re¬ 
 serve funds to be created to cover them. What would have 
 been said of the Government if it had not insisted on these 
 provisions being made in the case of the “ Indus Steam Flo¬ 
 tilla ? ” The not over precise objectors would then have 
 denounced the authorities for having omitted to do that which 
 they now blame them for having done ! If the risks be great, 
 so may the profits; if, however, the Indus Steam Flotilla prove 
 an exception, then the Company has the same remedy of sur- 
 
INDIAN RAILWAYS. 
 
 13 
 
 render the Railway Companies possess, and so the objections 
 fall objectless. 
 
 The great question of surplus profits accruing stands forward 
 next for consideration, and on this most interesting point much 
 information of a very favourable character will be found in 
 Mr. Danvers’ Report, extracts from which are given inj the 
 Appendix. 
 
 The most encouraging features that Indian Railways present 
 in relation to this matter are the following:—• 
 
 * 1. Cheapness of construction. 
 
 2. An enormous population* to draw on as passengers, con¬ 
 
 sumers, and producers. 
 
 3. The expansion which trade must experience as the rail¬ 
 
 ways penetrate their respective districts. 
 
 4. The absence of parallel lines, those now nearly com¬ 
 
 pleted becoming, therefore, the great railway arteries of 
 
 India. 
 
 If we now proceed in further elucidation of this surplus 
 profit inquiry, by taking the mileage necessities of Indian rail¬ 
 ways to produce given results, and compare them in the same 
 way as has already been done with the mileage costs of the 
 English undertakings then quoted, it will be seen how favour¬ 
 ably they bear this test, and what a hopeful margin prevails 
 in favour of the Indian lines. Furthermore, if the same average 
 receipts should be secured in India which have been in 
 England the most extraordinary results cannot fail to arise. 
 
 The contrasts which follow respecting the.English lines are 
 as close approximations to accuracy as can be made with the 
 insufficient data in hand. Those of the Indian lines are made 
 from official materials. 
 
 The annexed statement shows the average receipts per mile 
 
 * The population of India under British rule is estimated at 135,442,911 ; the 
 area in square miles being stated as 851,038. The dependent States have a united 
 area of 625,278 square miles, and a population of 50,465,366 .—Parliamentary 
 Return , 1859. 
 
14 
 
 INDIAN RAILWAYS. 
 
 per week of some of the railways of the United Kingdom, with 
 the Dividends realised on the Original Stocks, in the half-year 
 to 30th June, 1861, and of the requirements of the Indian 
 Railways to cover the Guarantee :— 
 
 
 
 
 Rate of 
 
 Average per 
 
 Rate 
 
 Revenue 
 
 
 
 last divi- 
 
 mile per 
 
 per cent. 
 
 earning 
 
 Railways. 
 
 
 dend per 
 
 week of 
 
 of 
 
 miles. 
 
 
 
 cent, per 
 
 the gross 
 
 working 
 
 
 
 
 annum. 
 
 receipts. 
 
 expenses. 
 
 
 
 
 
 £ 
 
 
 1004 
 
 London and NTorth Western 
 
 3f 
 
 79 
 
 48-42 
 
 308 
 
 Great Northern 
 
 
 3f 
 
 79 
 
 55*89 
 
 219 
 
 Caledonian 
 
 
 5 
 
 68 
 
 41-30 
 
 183J 
 
 Glasgow and SouthWestern 
 
 5 
 
 43 
 
 40-33 
 
 330 
 
 Great Southern and 
 
 
 
 
 
 Western of Ireland 
 
 
 5 
 
 24 
 
 47*62 
 
 192J 
 
 Midland Great Western 
 
 
 
 
 of Ireland . 
 
 
 5 
 
 18 
 
 43-01 
 
 1137 
 
 East Indian. 
 
 
 
 
 £ 
 
 [ 35 1 
 
 
 M f-4 
 © © 
 
 850 
 
 Madras . . . . 
 
 
 Average 
 
 
 19 
 
 
 OQ CLi 
 
 S 
 
 1266 
 
 Great Indian Peninsula. 
 
 
 gross re- 
 
 
 18 
 
 
 o ® 
 
 © 
 
 -t-3 
 
 3091 
 
 Bombay and Baroda. 
 
 
 ceipts per 
 mile per 
 
 
 22 
 
 
 114 
 
 Scinde 
 
 ► 
 
 week re- 
 
 ' 
 
 25 
 
 ► 
 
 be <3 
 
 •9 ^ 
 
 3 | 
 
 250 
 
 Punjaub. . . 
 
 
 quired to 
 
 
 17 
 
 
 784 
 
 29 
 
 Great Southern of India 
 Calcutta & South Eastern 
 
 
 cover the 
 
 5 percent, 
 guaranteed. 
 
 
 13 
 
 22 
 
 
 2 * 
 
 » 2 g 
 
 110 
 
 Eastern Bengal 
 
 
 
 24JJ 
 
 
 68 ° 
 
 Taking into consideration the rights the Companies 
 possess under the contract, and the encouraging comparisons 
 the foregoing statement establishes — furthermore, taking 
 one glance at all the Indian Railways in their guaranteed 
 character only, it is clear that, as regards the dry 5 per cent., 
 
 * This rate will not he far wrong when the different railways are completed and 
 in systematic working order. The Electric Telegraph appears to be a source of great 
 loss at present—in the year ending 30th June, 1861, the East Indian showed a 
 deficit of £8331 ; the Great Indian Peninsula, £2718 ; the Madras, on the year 
 1860, £326. 
 
INDIAN RAILWAYS. 
 
 15 
 
 each stock in money value is of equal worth. Looking, however, 
 at the surplus profit chances they possess, there can be no 
 doubt that some of them have greater hopes of sooner realising 
 such results than others ; it is not, however, intended here to 
 offer an opinion as to which is likely to prove the most produc¬ 
 tive, for possibly that which has cost the most, or the least, 
 may yield the largest profit.* Whether, however, a line costs 
 £20,000 or £10,000 per mile is a matter of too much moment 
 not to form an ingredient in the chances of 10 per cent, being 
 realised at an early period. The element of cost of construc¬ 
 tion must exercise its influence, no matter whether the heart 
 of India be penetrated from Calcutta, Bombay, Madras, or 
 Kurrachee. 
 
 Again, a short line, from its greater economy and ease of 
 management, may, with inferior expectations, prove a better 
 paying property than one of greater length and larger re¬ 
 sources ; the longer line, from its extent, becoming difficult of 
 control in its details, and more costly in its expenditure than 
 the shorter one. That length in railways is not necessarily 
 strength, has been amply proved in those leading English 
 undertakings, which, as they have grown in extent, have 
 miserably diminished in their dividend-paying quality. 
 
 The foregoing remarks are monitory only to the investor, 
 and in no degree intended to cast the smallest doubt on the 
 future of any of the great Indian Railways : for it may he found 
 with them that that control over details (all of which is profit), 
 which has not been attained in England, may he in India. 
 
 Those lines which, from the small amount of their expen¬ 
 diture, and the early closing of the capital accounts, have but 
 a moderate debt on interest account to meet, will necessarily, 
 if the traffics work to good profit, be freed of that incum¬ 
 brance, and become entitled to all the surplus profits sooner 
 
 * As far as the partial openings have hitherto gone, they show most in favour of 
 the most costly (the East Indian) line. The latest account exhibits a gross receipt of 
 £21 per mile on one week’s receipts (Sept. 1861). 
 
16 
 
 INDIAN RAILWAYS. 
 
 by far than those Companies can calculate on which have a 
 heavy interest account to provide for. 
 
 The following is a general statement of this interest account 
 to 31st December, 1859, as it appears in Mr. Danvers’ Keport 
 of 1860. The gross charge against the East Indian and Great 
 Indian Peninsula and Madras Companies had been reduced on 
 30th June, 1860, by £880,331, that being the profit made on 
 those lines up to that date. The probable total gross addition 
 to this account for the year 1861, allowing £500,000 as the 
 profit credited, would, in round numbers, be £1,500,000. 
 
 Railways. 
 
 Gross Total due by 
 each Company to 
 31st December, 1860. 
 
 Remarks. 
 
 East Indian. . . . 
 
 £ 
 
 2,736,059 
 
 1 Subject to profit 
 
 Great Indian Peninsula 
 
 1,207,828 
 
 > allowances as ex- 
 
 Madras . . . 
 
 778,092 
 
 J plained above. 
 
 Eastern Bengal 
 
 55,544 
 
 
 Calcutta and South-Eastern 
 
 14,042 
 
 
 Great Southern of India 
 
 19,169 
 
 
 Bombay and Baroda 
 
 232,412 
 
 
 Scinde .... 
 
 159,420 
 
 
 Punjaub . . , . 
 
 73,403 
 
 
 Indus Steam Flotilla . 
 
 23,740 
 
 
 The East Indian Company’s accounts to 31st December, 
 1860, show a net debit of £2,172,075 on interest account; 
 the Madras, to the same day, £602,070; the Bombay and 
 Baroda, to 30th June, 1861, £274,821. The other Companies 
 do not render a general interest account, the Directors con¬ 
 fining themselves to half-yearly statements. 
 
 The carriage of coal will become an item of considerable 
 value to those Companies whose lines are in direct con¬ 
 nection with, or proximity to, the great coalfields of India. 
 Unfortunately, this important article is confined to the Banee- 
 gunge portion of the East Indian line, the Nerbudda part of the 
 
INDIAN RAILWAYS. 
 
 17 
 
 Great Indian Peninsula, and the valley of the Indus portion of 
 the Scinde line ; the first, by its branch to Raneegunge ; the 
 second, by its passing through the Nerbudda valley ; and the 
 last to within 28 miles of its terminus at Kotree. The im-. 
 portance of the possession of coal cannot be overrated, whether 
 for the coke it will furnish cheaply to the railways themselves, 
 or for its commercial value as an article of carriage. Those 
 Companies stand at a disadvantage which have no such treasure 
 available, being compelled to burn wood, or import coke, for 
 locomotive purposes, at a cost which must necessarily tell 
 against them in the working of their lines ; the difference may 
 not amount to anything of serious importance, nevertheless, 
 the non-possession of coal must be a disadvantage—its pos¬ 
 session a gain. 
 
 The subjoined extract from the “ Friend of India” gives 
 interesting information on this question. The whole article 
 is too long for insertion. 
 
 “ Over the vast peninsula, which has an area of 800,000 
 square miles, coal is found only in the valley of the Ganges 
 and neighbouring hills, in Rewah to the south of the Soane, 
 in the Nerbudda valley, and in the Sylhet hills on the far 
 north-east. There is no workable coal elsewhere in the North- 
 Western Provinces, none in Oude, the Punjaub, Scinde, Bombay, 
 or Madras. 
 
 “ The consumption of coal in India and by vessels leaving 
 its ports we may estimate at 700,000 tons annually, the 
 amount imported in 1857 from England being 829,157 tons. 
 Reckoning the price of Indian coal in Calcutta at 5 annas 
 a maund, or 17s. a ton, and English coal at the same 
 rate (though it is far higher), we have more than £ 500,000 
 sterling spent on coal every year in India. As the trade and 
 manufactures of India increase, and as machinery comes to be 
 more and more largely introduced, indigenous coal will become 
 more important. The fact that the supply is in certain dis¬ 
 tricts inexhaustible, and that the demand is annually in- 
 
18 
 
 INDIAN RAILWAYS. 
 
 creasing, is one full of hope for the coal companies and pro¬ 
 prietors who already occupy or, like the Bengal Coal Com- 
 pan} r , monopolise the field. It is possible the Nerbudda fields, 
 worked by the company just established, may supply Bombay 
 and the southern portions of the North-Western Provinces on 
 the completion of the railway. But Oude, the Punjaub, and 
 Madras must still look to their forests, which, on both sanitary 
 and commercial grounds, it becomes daily of more importance 
 to utilise and renew. 
 
 “ The following abstract contains the result of Mr. Oldham’s 
 inquiries:— 
 
 The Quantity of Coal raised. 
 
 Districts. 
 
 1858. 
 
 1859. 
 
 1860. 
 
 Raneegunge coalfield 
 
 5,917,000 
 
 8,949,600 
 
 8,559,097 
 
 Rajmalial Hills 
 
 219,000 
 
 843,000 
 
 1,222,860 
 
 Kurhurbari 
 
 4,000 
 
 108,182 
 
 275,256 
 
 Palamow 
 
 — 
 
 28,648 
 
 30,900 
 
 Sylhet Hills 
 
 22,319 
 
 32,498 
 
 — 
 
 Total in maunds . 
 
 6,162,319 
 
 9,961,928 
 
 10,088,113 
 
 Or in tons 
 
 226,140 
 
 365,575 
 
 370,206 
 
 These figures show the healthiness of the trade, which, not¬ 
 withstanding the local fluctuations, has steadily progressed. 
 In the Baneegunge coalfield, which is now tapped by the 
 East Indian Bailway, and which will shortly be pierced by 
 two branches, there were last year 49 collieries, with 27 steam- 
 engines at work. This is the result of little more than 20 
 years’ operations.”* 
 
 The table which follows shows the extent of the population 
 in the districts cited. 
 
 * According to the last half-yearly statements published, it appears that whilst the 
 East Indian line, which has coal at hand, expended only 4*52 per cent, of its gross 
 earnings for fuel, other railways having no such resources at present available 
 expended—the Bombay, 9*32; the Great Indian Peninsular, 17‘60 ; the Madras, 
 19'67 per cent. 
 
INDIAN RAILWAYS. 
 
 19 
 
 British Territories from 
 Parliamentary Returns. 
 
 Area in 
 square miles. 
 
 Not 
 
 Population. 
 
 including Native S 
 
 Population 
 per square 
 mile. 
 
 :ates. 
 
 Madras 
 
 136,872 
 
 23,301,697 
 
 170 
 
 Bombay . . . 
 
 140,407 
 
 11,837,654 
 
 84 
 
 Bengal and Fort William 
 
 253,000 
 
 40,852,397 
 
 161 
 
 North-Western Provinces 
 
 108,000 
 
 30,250,000 
 
 280 
 
 Punjaub 
 
 90,258 
 
 14,913,001 
 
 165 
 
 Col. R. Baird Smith’s Report to the Government in India 
 (May, 1861 ), on the serious depression of trade which had 
 arisen between Calcutta and the North-Western Provinces, is 
 of general interest. He satisfactorily shows that the great 
 want of India is good roads, or water communication, and that 
 with these there is no reason why the consumption of Man¬ 
 chester goods should not be increased beyond all ordinary 
 calculation; and if this view applies with force to Bengal, how 
 much more must it apply and will it tell in those populous, 
 soon to become railway, districts which, as far as cheap and 
 ready communication with the seaboard is concerned, are now 
 practically cut off from it. 
 
 The whole Report is of especial interest to the Manchester 
 manufacturer, and of sufficient practical value to the railway 
 shareholder to justify a few extracts. 
 
 The Report holds out great encouragement to Manchester 
 interests, and these cannot advance without railways also 
 benefiting. The opening up of new roads is strongly urged, 
 as a certain means of laying bare sources of demand and 
 supply hitherto untouched. A remarkable illustration is given 
 of what may be expected when an interchange in commodities 
 can be carried on cheaply between one district and another, in 
 the case of Oude, which transported at a necessarily heavy 
 cost a large amount of grain into the famine districts, and in 
 return took away such an amount of salt from Agra, Muttra 
 
20 
 
 INDIAN RAILWAYS. 
 
 and Delhi, as it is estimated will increase the local revenue 
 from that article from 80 to 90 per cent, over the previous 
 3 r ear. If this were done by means of the present wretched 
 roads between such distant points, and at an immeasurably 
 greater cost than railway carriage would amount to, how much 
 more good will be effected when the at present suspended 
 Oude Railway is revived and constructed ? 
 
 The following are extracts from the Report, the subject of 
 the foregoing remarks :— 
 
 “ The course of my inquiries has led me to visit the follow¬ 
 ing important trade marts, namely, Mirzapoor, Allahabad, Be¬ 
 nares, Cawnpore, Lucknow, Furruckabad, Agra, Muttra, and 
 Delhi. In connection with the trade in Piece Goods, Mirza¬ 
 poor and Furruckabad are marts of the first rank; Lucknow, 
 Allahabad, Cawnpore, Agra, and Delhi, are of secondary im¬ 
 portance ; while Benares and Muttra are linked to the question 
 as being the seats of large banking firms and the centres of large 
 money transactions. 
 
 * * * * * * 
 
 “ Those best qualified to supply me with trustworthy infor¬ 
 mation on the point, assure me that the total Imports of what 
 are ordinarily spoken of as Manchester Goods are distributed 
 between the Lower and Upper Provinces of Bengal, in the pro¬ 
 portion of about 9-16ths to the former, and 7-16ths to the latter. 
 In different estimates kindly prepared for me, the greatest 
 allowance for the North-West Province marts was 8-16ths, and 
 the smallest 6-16ths. I have therefore assumed the mean of 
 7-16ths as a fair and reliable measure of the Manchester Goods 
 trade in these Provinces, so far as Calcutta is concerned. The 
 goods so supplied permeate all the districts of the Provinces with 
 a vigour mainly determined by the facilities of transport; and, 
 although on the Western Frontiers there is a tract of country 
 on which the streams of trade from Calcutta and Bombay meet 
 and mix, making it a sort of debateable land between the two 
 great sources of supply, it may be confidently assumed that a 
 
INDIAN RAILWAYS. 
 
 n 
 
 population of not less than about 30 millions have been, and 
 must continue to be, supplied with Manchester Goods from 
 Calcutta only.” 
 
 * * * * * * 
 
 “ Few causes act more directly on the free spread of Man¬ 
 chester Goods than communications of any kind. It is along 
 the best of these that English cloths have most largely com¬ 
 mended themselves to the people, and the interest of the manu¬ 
 facturing districts of England is most direct and personal in the 
 
 state of the roads and rivers of India.” 
 
 * * * * * * 
 
 “ The chief consumers of English cloths here are all classes 
 near to open and easy lines of communication, be they by land 
 or water; a comparatively small section of agriculturists being 
 the upper grades of the class at a distance from such communi¬ 
 cations ; a very large proportion of the inhabitants of towns and 
 cities everywhere, and of course the whole of the European 
 community. The mass of the agricultural and the poorer non- 
 agricultural classes have scarcely yet become the customers of 
 Manchester at all, though it is merely a question of time and 
 internal improvements of roads and rivers when they shall 
 become so.” 
 
 * * * * * * 
 
 “ These districts are not average ones, and I have not yet 
 been able to procure corresponding data from others in less 
 fortunate positions, from which a tolerably reliable average 
 might be deduced. But on the strength of considerable per¬ 
 sonal knowledge of a large number of the districts concerned, of 
 their means of communication, the material condition of their 
 people, and the circumstances generally that w r ould influence 
 the growth of the Manchester Trade within their limits, I am 
 inclined to believe that less than one-third of the field open to 
 its operations has as yet been taken possession of, and I am 
 confident that, when the comparative plenty of ordinary seasons 
 is restored, and the march of internal improvement can be re- 
 
22 
 
 INDIAN RAILWAYS. 
 
 sumed, there lies before the trade a growth as steady, and per¬ 
 haps even more rapid than it has previously known.” 
 
 # * * # # # 
 
 “ In December, 1860, and, indeed, in February, when I had 
 an opportunity of seeing the rivers, they had almost ceased to 
 be means of communication at all.” 
 
 The following extract from “ The Englishman,” of Septem¬ 
 ber 14, on the Cotton Capabilities of India * (a question 
 of railway as well as manufacturing interest), will well repay 
 perusal. 
 
 “ In Dharwar, the Kaiepore Doab, and Western Berar, on one 
 side of India; in the North-West, and some parts of Bengal 
 on the other; great efforts are being made, and not unsuccess¬ 
 fully, very greatly to extend the cultivation of cotton this 
 season. What the result will be lies yet within the womb of 
 futurity. It is not a question of price which will influence 
 increased cultivation, at least not so far as the cultivator him¬ 
 self is concerned; cotton pays him as well as any other crop 
 he can raise on the same soil. The difficulty lies in the great 
 risk of transport to the coast, and the expense attendant 
 thereon. These are the great drawbacks to the production of 
 cheap cotton in India, and it is to the improvement of the 
 communications between the coast and interior, and thereby 
 lessening the risk and expense of transport, that the Cotton 
 Supply Association and those interested in its produce must 
 turn their undivided attention and exert their best energies. 
 With these difficulties overcome there is no reason why India 
 should not produce as good and as cheap cotton as the slave 
 states of America. Moreover, in the districts whence cotton is 
 derived, Manchester may establish the additional market for 
 her wares she so much requires. The same ways, whether 
 
 * The recent concession made by Lord Canning in his capacity of Viceroy, to allow 
 land to be purchased and held by Europeans and Natives in perpetuity, must in 
 course of time have a marked influence on the Cotton and Agricultural question of 
 India. 
 
INDIAN RAILWAYS. 
 
 23 
 
 rail, canal, or river, by which cotton will be drawn from the 
 places of its growth, will convey into the interior the produce 
 of Manchester mills, and, provided she can produce coarse 
 fabrics of a quality similar to the native home-spun cloths, and 
 sell them to the ryot at a low figure, Manchester need fear no 
 dearth of cotton; the entire yield of the cotton fields of India 
 will be at her disposal. 
 
 “ The Punjaub, with its five rivers, all affording means of 
 speedy and safe transport, appears to possess great advantages 
 for the cultivation of cotton. It numbers among its various 
 works of public utility very heavy irrigation works, which, for 
 the production of cotton of the finer staples in a climate such 
 as that of the Punjaub, are highly desirable, if not absolutely 
 requisite. It has a numerous agricultural population, and is 
 admirably administered—the former a sine qua non, the latter 
 most advantageous—when capital has to be invested in the 
 soil, and advances made for the fruits it has yet to yield. In 
 the past year, 1860-61, the cotton produced in the several 
 divisions of the Punjaub and its dependencies amounted to 
 43,316,8001b., of which about 4,000,0001b. found their way to 
 the coast. The quantity therefore absorbed in the country 
 itself was in round numbers 39,000,0001b., a very large portion 
 of which might with good management and a judicious outlay 
 of capital, have been taken in exchange for the products of 
 Manchester mills, instead of being devoted as it was to the 
 manufacture of cloths, which Manchester ought to be able to 
 supply at a figure which should defy competition on the part 
 of any native hand looms. The Lieutenant-Governor gives it 
 as his opinion that the production of cotton might be inde¬ 
 finitely increased, but that to this end it will be necessary for 
 English speculators to have their agents in the country ready 
 to pay at once for the crop, and to give directions regarding 
 the method of cleaning it; he further adds that it is his 
 belief that a greater breadth of cotton has been sown this year 
 than last.” 
 
24 
 
 INDIAN RAILWAYS. 
 
 The descriptive particulars of the Indian Railways which 
 follow are taken from Mr. Danvers’ Reports to the Secretary 
 of State for India, and the Companies’ half-yearly statements. 
 The deductions from the figures, &c., so collected, are the 
 writer’s. 
 
 The gauge of all the Indian Railways is uniformly 5 feet 6 
 inches ; the earthworks, cuttings, bridges, tunnels, &c., being 
 made suitable for a double line. With the exception of a very 
 small extent the present lines are single. 
 
 BOMBAY, BARODA, AND CENTRAL INDIA 
 
 RAILWAY. 
 
 This line commences at Bombay, and, proceeding onward 
 through Surat and Broach to Baroda, terminates at Ahme- 
 dabad, on the Gulf of Cambay. It is intended ultimately to 
 be extended to the East Indian line at Agra. 
 
 The especial immediate object is to connect Bombay with 
 the great cotton districts of Guzerat. 
 
 The general character of the country the line will traverse is 
 low and flat, and subject, consequently, to inundations in the 
 rainy seasons. The works are so constructed as to meet this 
 inconvenience. 
 
 The line is 30 9i miles in length, of which 132 (Doolia to 
 Bulsar, including the Nerbudda Viaduct) are now open—to 
 this, 23 further miles northward to Neriad will shortly be 
 added. On the half-year’s traffic to 30th June last, a net 
 profit of £6057 was made, out of a gross receipt of £15,570. 
 The return to 20th October shows a more agreeable aspect, 
 the passengers having advanced 201*67 per cent, in numbers, 
 the goods 268*32 in weight, on an increased mileage of only 
 62*96 per cent.—the comparisons standing against the 81 
 miles of February last. 
 
 The Government right of purchase will first arise in the 
 year 1880. 
 
INDIAN RAILWAYS. 
 
 25 
 
 The average cost per mile, taking the estimated capital of 
 £3,500,000 as the guide, would be £11,308. 
 
 To cover the 5 per cent, which is guaranteed to the 
 £3,500,000, the Company must earn a gross sum of £6730 per 
 week, or £22 per mile per week, the working charges being 
 taken at 50 per cent. Every increase of £1346 per week, or 
 £4 8s. per mile per week, should add at least 1 per cent, to the 
 dividend. 
 
 The Directors, in their Report (28th June last), state that a 
 native Prince (the Guicowar of Baroda) proposes to execute a 
 line of twenty miles at his own cost, to run from Meagaum to 
 Dhubdoe, which is intended to be completed by the next 
 cotton season, and will form a very important feeder to the 
 line. This good example, it is hoped, may be followed by the 
 application of local capital to the formation of tramways into 
 other districts, to intersect and serve the rich agricultural and 
 cotton country through which the railway runs. 
 
 The Directors also state that the merchants profess their 
 willingness to pay double the present rate of charge (lj per ton 
 per mile) hv countr}*- boats for railway transport, owing to “ the 
 saving of time, security from peculation, and damage by sea¬ 
 water, which would be gained, and which they estimate would 
 more than compensate for such extra charge.” 
 
 The Directors further state that the advices from India 
 “ continue to confirm the anticipation of a large traffic.” 
 
 CALCUTTA AND SOUTH-EASTERN RAILWAY. 
 
 This line is at present limited to the district between Cal¬ 
 cutta and the Mutlah River, in the estuary of which a commo¬ 
 dious port, with all necessarj^ wet docks and other works, will 
 be constructed. 
 
 The Company rely for their real present success on the 
 port of Mutlah attracting the shipping preferably to Cal- 
 
INDIAN RAILWAYS. 
 
 2G 
 
 cutta, that reliance being based on the crowded state of the 
 Hooghley, its dangerous navigation, and the saving of time 
 which will be made by stopping short at the new port. 
 
 The line is a short one of twenty-nine miles, and is expected 
 to be completed by the end of this year (1861). 
 
 The estimated Capital is <£330,000, or an average cost of 
 £ 11,379 per mile. 
 
 To clear the 5 per cent, guaranteed to the capital, the 
 working charges being taken at 50 per cent., will require a 
 gross weekly traffic of £634, or £22 per mile per week, to be 
 earned. Every addition of £130 per week should add 1 per 
 cent, at least to the dividend. 
 
 The Government right of purchase will first arise in the 
 year 1884. 
 
 The course of the line to Sonapore, eleven miles from Cal¬ 
 cutta, is reported by the Directors to pass through a densely 
 populated district, from which traffic in aid must necessarily be 
 obtained. 
 
 The works on the line are represented to be easy, the 
 country being a dead level. 
 
 EASTERN BENGAL RAILWAY. 
 
 This line commences at Calcutta and terminates at Kooshtee, 
 opposite Pubnah, on the River Ganges, at which point its 
 purpose is to intercept the large traffic intended for Calcutta, 
 to convey it by rail there, and enable merchants to send 
 their goods from thence by rail, and so save the dangers and 
 delays which affect the navigation of the Soonderbunds. 
 Kooshtee is the present terminus ; it is, however, contemplated, 
 sooner or later, to extend the line to Serajgunge and Dacca, 
 The districts this extension would serve are rich in the produc¬ 
 tion of indigo, seeds, sugar, oils, rice, and other grain, the 
 
INDIAN RAILWAYS. 
 
 27 
 
 population being' thickly placed, equal to 500 to the square 
 mile. 
 
 The line, as at present laid out, is a single one of 110 miles 
 in length, and is expected to be completed in May, 1862. 
 
 The total cost is estimated at £1,400,000. 
 
 The Government right of purchase will arise in 1883. 
 
 The works, according to the estimated total, will cost on an 
 average £12,727 per mile. 
 
 To clear the 5 per cent, guaranteed to the capital of 
 £1,400,000, the Company must earn a gross weekly sum 
 amounting to £2695, or £24 10s. per mile per week, the 
 working costs being taken at 50 per cent. Every increase of 
 £539 per week, or nearly £5 per mile per week, should add at 
 least 1 per cent, to the dividend. 
 
 The Directors, in their Report (May, 1861), state that the 
 works will be completed within the capital. It appears further 
 that the Indian Government have applied themselves zealously 
 to the improvement of old and the construction of new roads, 
 which, when completed, will act as important feeders to the 
 railway, and so “ increase the large prospective local traffic.” 
 This is reiterated in the Report of November, 1861. 
 
 EAST INDIAN RAILWAY. 
 
 This undertaking embraces a line from Calcutta to Delhi, 
 with branches to Raneegunge, the Barrackur River, and the 
 Singarron Valley; also a line from Allahabad to Jubbulpore, 
 to unite with the Great Indian Peninsular Railway from 
 Bombay. The total mileage is 1364 miles, being 1137 the 
 main line to Delhi and branches, and 227 the Jubbulpore 
 branch at present postponed. 
 
 The line starts from the right bank of the Hoogliley at Cal¬ 
 cutta, proceeds to Burdwan, on to Rajmahal on the Ganges; 
 thence to Allahabad, at the junction of the Rivers Ganges and 
 
28 
 
 INDIAN RAILWAYS. 
 
 * 
 
 Jumna. The latter river is there crossed, and Cawnpore, 
 which has a short branch to a wharf on the Ganges, reached ; 
 the line then strikes across the Dooab to within twenty miles 
 of Agra (which city is served by a branch), proceeding to Ally- 
 ghur, and on to its terminus at Delhi. 
 
 The Raneegunge branch opens up the great coalfield of that 
 district, and will unquestionably per se become a source of 
 great profit. Hereafter this branch will be extended to Patna, 
 bringing that city one hundred miles nearer to Calcutta than it 
 will be by the existing Trunk Line, and, with other contem¬ 
 plated branches, open up the immense intervening coal forma¬ 
 tions which are known to exist in the locality.* 
 
 The Jubbulpore junction with the Great Indian Peninsular 
 Railway will connect Calcutta and Delhi with Bombay and 
 Madras. 
 
 But one tunnel (of 900 feet) exists throughout the line. 
 The rivers have offered formidable obstacles to the engineer, 
 and proved, in the necessary bridges, &c., very costly to the 
 Company. The country being subject to great inundations 
 in certain seasons, has necessarily presented engineering 
 difficulties. 
 
 The Government right of purchase will first arise in 
 February, 1874, for the main line. 
 
 For the Jubbulpore branch, which will have its separate 
 capital account, and in no financial respect be mixed up with 
 the Trunk Line, the right of purchase will arise in April, 1883. 
 
 The total estimated capital is £23,000,000, from which 
 <£2,250,000, the cost of the Jubbulpore branch, must be 
 deducted, leaving £20,750,000 as the cost of the main line, 
 or £18,250 per mile. 
 
 It is stated that the Santhal rebellion and the mutiny have 
 
 * This is referred to as of future importance in the Blue-book on the “ Moral and 
 Social Progress” of India, printed by order of Parliament (1861), one coal company 
 alone having offered to guarantee 200 tons daily for twenty-one years at the usual 
 rates charged. 
 
INDIAN RAILWAYS. 
 
 29 
 
 directly and indirectly added £3,000,000 to the total cost of 
 this railway, or £2638 per mile. 
 
 To make a profit of 5 per cent, on the capital of £20,750,000, 
 this line must earn £39,795 per week, or £35 per mile per 
 week, allowing 50 per cent, for working expenses. Every 
 addition of £7959 per week, or £7 per mile per week, should 
 add at least 1 per cent, to the dividend. 
 
 The line is expected to be open throughout by the end 
 of 1862. 
 
 The average gross receipts per mile per week, on the half- 
 year ending 30th June, 1861, exceeded £24, a most encourag¬ 
 ing and satisfactory result, with an incomplete railway. 
 
 The Ganges and other navigable streams will necessarily 
 always command a traffic. This, as in the canals of this country, 
 will soon be confined to heavy cumbersome commodities, 
 to which low rates are necessary, and time of no moment. 
 Gradually, however, the railway will attract the traffic which 
 can with profit be transmitted by it, and this, its greatest hulk, 
 will gradually hut certainly quit the rivers, &c.,—during those 
 periods of the year when these are barely navigable, the railway 
 will take to itself all the traffic which must be moved.* 
 
 THE GREAT INDIAN PENINSULAR RAILWAY. 
 
 This line commences in the island of Bomba} 7 , and proceeds 
 inland thirty-three miles to the town of Callian, where it bifur¬ 
 cates, one branch taking a north-easterly, and the other a 
 south-easterly direction. By the former it goes to Asseerghur, 
 
 * “ An Old Indian Postmaster” states that cargo-boats take between twenty and 
 thirty days to reach Calcutta by the Ganges from Rajhmal—before the railway 
 opened, by D&k (post) from Calcutta to Benares, five days on the journey, cost 
 £25 ; by Palky, a month, £15. By water forty days were taken up, the cost from 
 £15 to £25. Steamers during three months perform the voyage in ten days, twenty 
 days being required for the other nine months of the year. 
 
30 
 
 INDIAN RAILWAYS. 
 
 and hence to Jubbulpore, where it joins the East Indian 
 branch to Allahabad. By the South-Eastern route it passes 
 to Poonah, and on by Sholapore towards Madras, the junc¬ 
 tion line with which railway is postponed for the present. 
 An important branch diverges from the North-Eastern main 
 line at Bhosawul, near Nusseerabad, passing through the great 
 cotton district of Oomrawuttee to Nagpore. There is also a 
 branch from Bombay to Mahim (If of a mile), and a temporal 
 line of seven miles from Padusdhurree (where the main line 
 commences the ascent of the Bhore Ghat) to Campoolie, a 
 village on the old road from Bombay to Poonah. 
 
 The entire length of the line is 1266 miles. 
 
 The railway is laid out to establish speedy communication 
 between the three Presidencies, and to connect the great 
 cotton and grain-producing districts of Central India with 
 the port of Bombay. 
 
 The railway encounters great physical difficulties in its course 
 from the mountains which separate Bombay from the Deccan: 
 the section by the North-East having to make its way by the 
 Thull Ghat, at an elevation of 1912 feet above the level of the 
 sea; that by the South-East by the Bhore Ghat, having an 
 elevation of 2037 feet to master. 
 
 The Thull Gliat incline has for about miles a gradient of 
 1 in 37, and a tunnel of 1962 yards. This short length of 
 9 miles will, it is estimated, cost £449,882, or an average of 
 £49,988 per mile. 
 
 The Bhore Ghat is 14 miles in length, with an average 
 gradient of 1 in 48. The steepest gradient for 1| miles is 
 1 in 37 ; the tunnelling is about 1| mile. The cost of this 
 part of the line is estimated at £674,632, or an average 
 of £48,188 per mile. So it appears that 23 miles of 
 this line of railway will cost £1,124,524, thus carrying the 
 general average up considerably (£880 per mile). Besides 
 these stupendous works, the line has several rivers of con¬ 
 siderable magnitude in its course to bridge over; for- 
 
INDIAN RAILWAYS. 
 
 31 
 
 tunately good natural foundations of rock exist for the bridges 
 to rely on. 
 
 The total cost is estimated at £12,000,000, or £9478 per 
 mile. The Directors, in their Report of April, 1861, state 
 that £11,000,000 will suffice: this would reduce the mileage 
 cost to £8688. 
 
 To clear the 5 per cent, guarantee on the £12,000,000 
 capital, the Company must earn a gross weekly sum of 
 £23,077, or £18 per mile per week, taking 50 per cent, for 
 working expenses. Every increase of £4613 per week, or 
 under £4 per mile per week, should add 1 per cent, at least 
 to the dividend. 
 
 Should the cost be but £11,000,000, then a gross receipt of 
 £21,346 per week, or nearly £17 per mile per week, will be 
 sufficient to cover the guarantee. 
 
 The Government right of purchase first arises in August, 
 1874. 
 
 The average gross receipts per mile per week on this line, 
 from 1st January to 30th June, 1861, amounted to £15—a 
 very encouraging result on a railway which is not only with¬ 
 out its middle portion at work, but has had to bear the heavy 
 cost of transporting, at railway rates, all the merchandise it 
 carried over either section of its line, by the mountainous 
 intervening roads, to the other section. The net return, owing 
 to these heavy drawbacks, and the very low rates of carriage, 
 was unsatisfactory. The Company have, by Government 
 orders, been carrying the lowest class of passengers at f-ths 
 of a penny, and the third-class at fths of a penny, per 
 mile. As an experiment, these rates will not be fairly 
 tried until the communication is through. Judged, however, 
 by English rules, they would appear to be cast on too low 
 a scale. 
 
 Should Bombay become the chief European commercial 
 port for the interior of India, a vast traffic must flow over 
 this line, and thence to those districts on the East Indian 
 
32 
 
 INDIAN RAILWAYS. 
 
 and Madras lines, which can be more cheaply reached from 
 Bombay than from Calcutta or Madras. 
 
 The existence of coal in the Nerbudda Valley, through which 
 this line passes, must prove a valuable possession to this Com¬ 
 pany ; whether viewed in its simple coke and coal quality, or in 
 that of the traffic it must ultimately induce. The line passes 
 close to the pits of the Nerbudda Coal Company, and coal 
 not only exists in large quantities, but is reported to be of a 
 very superior description, and will be eagerly sought after for 
 domestic, steam, and manufacturing purposes. 
 
 The line is expected to be completed throughout in April, 
 1863; the last part will be that portion between Oomrawuttee 
 and Nagpore (120 miles), otherwise 1862 is stated to be the 
 period when the other sections will be finished. 
 
 GBEAT SOUTHERN OF INDIA RAILWAY. 
 
 This line is hereafter to be extended; at present it is con¬ 
 fined to the country between Negapatam, on the coast, to 
 Trichinopoly. 
 
 The country is stated to be very favourable for railway 
 operations. The purposes the line is laid out to serve are 
 to provide outlets for the large agricultural produce raised 
 along its course, the whole neighbouring country being under 
 cultivation. Rice and cotton are extensively grown, and native 
 manufactures, in the shape of silk, cotton, and muslin goods, 
 produced in great quantities. 
 
 The railway is 781 miles in length, and is no doubt open 
 throughout, the Directors, in their Report, of 23rd April, 1861, 
 having held out such expectation. 
 
 The estimated capital is £ 550,000, or an average cost of 
 ^£7000 per mile. 
 
 To clear the 5 per cent, guaranteed to this capital, the working 
 charges being taken at 50 per cent., will require a gross weekly 
 
INDIAN RAILWAYS. 
 
 33 
 
 traffic to be earned, amounting to £1058, or £13 10s. per 
 mile per week. Every addition of £211 per week, or £2 14s. 
 per mile per week, should add at least 1 per cent, to the 
 dividend. 
 
 The right of purchase by the Government will arise in the 
 year 1883. 
 
 The completion of the line within a period a little over two 
 years is highly to the credit of the executive. 
 
 The expectations regarding this line are best explained 
 in the following extract from a communication made to the 
 Government by Sir Charles Trevelyan, the late Governor of 
 Madras :—“ My next point was Negapatam, the terminus of 
 the Tanjore and Trichinopoly Railway. I never saw a dis¬ 
 trict where a railway was so certain to be immediately and 
 extensively useful. I met hundreds of carts and carriage 
 bullocks labouring towards the coast, whose work will hereafter 
 be done by the railway; and they will be employed in extending 
 the influence of the railway to the neighbouring districts. 
 Negapatam, where the rail terminates in the sea, is, therefore, 
 certain to become a place of great importance, and we should 
 make the necessary preparations while there is time.” 
 
 The harbour of Negapatam is undergoing alteration by the 
 Government, so as to make it commodious in all respects. 
 
 INDUS STEAM FLOTILLA COMPANY. 
 
 This Company has been sanctioned, and its capital of 
 £250,000 guaranteed 5 per cent., as in the case of the rail¬ 
 ways, the purpose being to construct and place on the 
 Indus a fleet of 53 vessels, of which 7 are passenger, and 6 
 towing steamers ; 33 are cargo barges, and 7 accommodation 
 flats—all being for the purpose of carrying passengers and 
 merchandise, at all periods of the year, between Kotree, the 
 
34 
 
 INDIAN RAILWAYS. 
 
 upper terminus of the Scinde Railway, and Moultan, the 
 starting point of the Punjaub Railway. 
 
 The importance of this link in the railway communication 
 between two such districts as the Punjaub and the rising port 
 of Kurrachee, at all periods of the j^ear, whether the Indus 
 he a swollen or a shallow stream, cannot he disputed, nor 
 can the consequences of failure he disguised. There are, 
 however, no misgivings in the officials of the Company—the 
 operations of such of the vessels as have been on trial being 
 reported satisfactory. The extent of the navigation undertaken 
 is 570 miles, and is calculated to occupy to 5 days. If 
 the traffic should very largely increase between the two river 
 termini, it is clear that the line of communication, before 
 many years pass away, will have to be completed by railway, 
 which may he termed the certain—to the exclusion of the 
 river or uncertain—means of communication. The flotilla can 
 be indefinitely enlarged, if in practice it should be found to be 
 necessary and desirable to do so. 
 
 The Government right of purchase will arise in 1884. 
 
 The improvement which will follow the completion of the 
 railway from Kurrachee, and the perfect working of its steam 
 flotilla adjunct, will be to reduce the down trip from the twelve 
 days, and the up trip from the twenty-five days the Govern- 
 ment steamers now occupy on the vojnges, to an average 
 of about five days. The voyage by native craft occupies from 
 thirty-five days to six weeks with the stream, and fifteen weeks 
 against the stream. 
 
 The Directors, in their Report of 30th September, 1861, 
 make the following remarks :—“ With regard to the working 
 expenses of the flotilla, the superintendent has made a careful 
 estimate of the expenditure and earnings of each class of 
 boat. Applying this estimate of receipts and expenditure, it 
 will be found that a net revenue of T61,855 will be derived 
 from the flotilla service, when all the boats are in working 
 order, which shows a return of T18 per cent, upon the capital 
 
INDIAN RAILWAYS. 
 
 35 
 
 of the undertaking. This return, of course, depends on all 
 the vessels proving efficient.” 
 
 The annual charge on account of interest amounts to 
 £ 12,500, profits are also in the contract made liable to 10 per 
 cent., and 7 per cent, deductions for insurance, maintenance, &c. 
 When these proper charges have been set aside, the balance 
 will constitute surplus profits. The estimated 18 per cent, is 
 speculative. 
 
 The Company will have to erect repairing shops of their 
 own, having now to send to England to make good any serious 
 damages to the machinery. 
 
 MADRAS RAILWAY. 
 
 This line commences at Madras, and proceeds in a westerly 
 course to Arconium, where it bifurcates and goes forward by 
 one branch south-westerly to Beypore; by the other north¬ 
 westerly through Cuddapah and Bellary, where the junction 
 with the Great Indian Peninsular line to Bombay will be effected. 
 From the south-western portion two branches strike off—one 
 to Bangalore, the other to the foot of the Neilgherries. 
 
 This series of railways has been laid out for political and 
 social purposes—connecting Madras with the military and 
 sanatory stations at Bangalore and Ootacamund—establishing 
 railway communication with the Bombay and Calcutta Presi¬ 
 dencies—developing the country generally, and opening up a 
 channel by which the produce of the Cuddapah and Bellary 
 districts may be readily conveyed. 
 
 The general character of the country is favourable for rail¬ 
 way operations, the chief engineering works being bridges over 
 the many rivers the railway in its course has to pass over. 
 
 The entire length of these lines is 850 miles ; the total cost 
 is estimated at T8,500,000, or an average of £ 10,000 per 
 mile. This amount will, it is stated, not all be required. 
 
36 
 
 INDIAN RAILWAYS. 
 
 To meet the 5 per cent, guaranteed to this capital, the 
 working expenses being taken at 50 per cent, a gross sum 
 per week amounting to T16,346, or T19 per mile per week, 
 must he earned. Every increase of T3269 per week, or T4 per 
 mile per week, should add 1 per cent, at least to the dividend. 
 
 The average gross receipts per mile per week earned in the 
 year ending 30th June, 1861, amounted to T9 7s. 3 d., the 
 smallness of which is well explained by the Directors in their 
 Reports of May and November, 1861. These explanations will 
 be found stated in a subsequent paragraph, together with other 
 like matter. 
 
 The gross receipts of 1860-61 compared with those of 1859- 
 60 show an increase, but the mileage take of the former year 
 was but T487, against T623 for the latter year. The working 
 expenses, which in 1859-60 amounted to 61*59 per cent., had 
 mounted up to 76'25 per cent, in 1860-61. 
 
 The unsatisfactory results obtained from the traffic were, to a 
 large extent, brought about by a cause which the Government 
 having agreed to amend (a too low scale of charges); some im¬ 
 provement majr certainly be hoped for from the higher tariff, 
 which came into operation 15th September last. 
 
 The reduced charges took effect in 1859, and quickly brought 
 down the receipts per train mile from the previous 6s. to 4s. 
 5 Jd. in June, 1860; 3s. 10d. in December, 1860; and 4s. 3d. in 
 June, 1861. 
 
 The proportion of third-class passengers in 1859 amounted 
 to 98f per cent, of the whole ; in the half-year ending 30th 
 June last, the proportion was 98'69 per cent. The first class 
 then numbered 1382, with T854 earned ; the second class 5286, 
 with T1099 earned ; the third class 503,597, with T20,220 
 earned (9IT9 of the total receipts). 
 
 The conveyance of goods, &c., so far as the up-trade was 
 concerned, had been disappointing, owing to the failure of the 
 crops, and the subsequent spread of famine, cholera, and other 
 like distressing causes :—to these should be added the enhanced 
 
INDIAN RAILWAYS. 
 
 37 
 
 price the Company have had to pay for coke and coal, the 
 heavy cost of maintenance (to continue for some period yet), 
 from the failure of the wooden sleepers, and substitution of 
 iron. The present partial openings touching no real sources of 
 traffic afford no criterion as to what, with a complete system, 
 they may reach. Wood is now being used in place of coke and 
 coal. 
 
 On the other hand, in the transport of cotton, dry grains, oil, 
 firewood, and salt, an increase is noted : of the last, 11,654 tons 
 were carried in the half-year to June, 1861. 
 
 The establishment of a four-horse coach from the Tripatore 
 station to Bangalore is noted. 
 
 These points are referred to and explained, that the present 
 unsatisfactory working may not operate with unfairness on this 
 and the other Indian lines. The Directors in their Report in 
 May last very justly state, that no fair or useful conclusion can 
 be drawn from the Company’s present traffic operations. 
 
 With the line completed and open throughout—remunerative 
 rates adopted—the traffic which still keeps on the road secured 
 to the rail, and those new roads opened which the Government 
 have approved and will make, all of them important feeders to 
 the line, a very different return to that now made will assuredly 
 be shown. 
 
 The Directors state in their November Report, that 263 miles 
 were then open, and that the line from one coast to the 
 other would be completed by the end of 1861, or beginning of 
 1862. 
 
 The Government right of purchase of the western line will 
 arise in December, 1880—the Bellary line in August, 1883. 
 
38 
 
 INDIAN RAILWAYS. 
 
 PUNJAUB RAILWAY. 
 
 This railway embraces a line from Moultan, on the Indus, 
 to Lahore and Umritsir inland. The line is 250 miles in 
 length, and passes through a country of a very favourable 
 character, between the Ravee and Sutlej rivers. Besides this, 
 another line is in course of survey, which, when approved, will 
 be carried down to Delhi, where it will unite with the East 
 Indian Railway, and so form an unbroken communication 
 between the Punjaub and Calcutta, with Bombay by the 
 Jubbulpore branch, and Madras by the Great Indian Penin¬ 
 sular and Madras lines. The capital for this further line will 
 be guaranteed 5 per cent., under the same terms as all the 
 other lines. The importance of its formation a glance at the 
 map will show; that it will be pushed forward with all due 
 vigour when the strain on the Government on account of 
 the present lines is lessened, there can be no doubt. 
 
 The capital of the Punjaub Railway from Moultan to Lahore 
 and Umritsir is £2,250,000. 
 
 The Government right of purchase will first exist in 1884. 
 
 The average cost per mile will be £9000. 
 
 To clear the 5 per cent, guarantee on the £2,250,000 of 
 estimated capital, the Company must earn a gross weekly sum 
 of £4327, or £17 per mile per week, the working cost being 
 taken at 50 per cent. Every increase of £865 per week, or 
 £3 10s. per mile per week, should add at least 1 per cent, to 
 the dividend. 
 
 On this line the Punjaub Government, reporting respect¬ 
 ing it in 1856, states—“ The northern terminus of this line 
 will be Umritsir, which is not only the first mart in the 
 Punjaub, but also one of the first commercial cities in Upper 
 India. Its merchants have dealings not only with all parts of 
 India, but also with many parts of Europe on the one hand, 
 and of central Asia on the other.” After describing the rich 
 products which seek the emporium of Umritsir, the report 
 
INDIAN RAILWAYS. 
 
 39 
 
 estimates the then trade as equal to <£3,500,000 per year, all 
 of which it is alleged would seek the port of Kurrachee; besides 
 which it is stated that there is a large existing traffic which the 
 railway would at low rates attract to itself. The natural capa¬ 
 bilities of the country are largely dwelt on, and characterised 
 as capable of the most extensive and profitable development. 
 The average of travellers since good roads were made between 
 Lahore and Umritsir is estimated at 1000 per day, and 
 “whereas, six years ago (1850), there were not 20 ekkas (small 
 one-horse vehicles carrying two or three persons), there are 
 now some 250 running daily between the two cities.” “A 
 similar passenger traffic would doubtless spring up between 
 Lahore and Moultan.” The country is described in this 
 Report as most favourable for a railway; cheapness of con¬ 
 struction being especially dwelt on as necessary to success, 
 low rates being essential, and attainable only on a railway so 
 completed. The Report adds, of this railway, that “it will 
 give birth to a new commerce yet undeveloped, will be carried 
 out with unusual facility, will prove financially profitable in a 
 high degree, will vitally concern the best material interests of 
 twenty-one millions of industrious people, and will conduce 
 more than any other circumstance that could be named to 
 the future prosperity of the Punjaub.” 
 
 SCINDE RAILWAY. 
 
 This undertaking is a compound one, being made up of 
 three projects—1. The Scinde Railway; 2. The Indus 
 Steam Flotilla; 3. The Punjaub Railway—all of them being 
 managed by one and the same (the Scinde) Board of Directors. 
 Though these undertakings are so constituted, each has to 
 rely on its own independent resources for its returns, separate 
 capital, and revenue accounts being kept precisely as if the 
 
40 
 
 INDIAN RAILWAYS. 
 
 Companies were under distinct boards. The general scheme 
 is a chain of three links, the railways being dependent for 
 absolute success, as through projects, on the middle link, the 
 Indus Steam Flotilla. 
 
 The line proceeds from Kurrachee, a very important and 
 rising port at the mouth of the Indus, and terminates at 
 Kotree, opposite to Hyderabad. Its length, including a branch 
 to Ghizree Bunder, is 114 miles. 
 
 The chief engineering works are bridges and viaducts (some 
 of them being of considerable extent), an embankment across 
 the valley of Dorbejee (constructed to protect the line from 
 injury by inundations), and the wharf and steam ferry at Kotree. 
 
 The progress of the works was much impeded at one period 
 from circumstances quite without the control of the Company. 
 The railway, nevertheless, was the first of all the Indian rail¬ 
 ways completed throughout; it was opened for traffic 13th 
 May, 1861. Owing, however, to damage to the earthworks 
 from the unusually heavy rains which set in soon after the 
 opening, the line was closed against traffic for a few days. 
 
 The Government right of purchase will arise in 1880. 
 
 The total capital for the complete formation of the line is 
 estimated at £ 1,500,000. 
 
 The average cost per mile will be £13,158. 
 
 To clear the 5 per cent, guarantee on the £1,500,000 capital, 
 the Company must earn a gross weekly sum of £2884, or 
 £25 6s. per mile per week, the working cost being taken at 50 
 per cent. Every increase of £570 per week, or £5 per mile 
 per week, should add 1 per cent, at least to the dividend. 
 
 Coal has been discovered within twenty-eight miles of 
 Kotree, a matter of great import to the future of this line 
 and its sister undertakings. A branch line will doubtless be 
 constructed at an early period to the district where the coal¬ 
 field lies, five miles to the east of the Erie Hills. 
 
 Kurrachee appears to be a port of great capacity, the trading 
 to and from which has been of a gradual, but year by year im- 
 
INDIAN RAILWAYS. 
 
 41 
 
 proving value. The table of exports and imports for the year 
 1843-44 gives £122,160 as their then value, that of 1858-59 
 <£2,584,400. 
 
 The capabilities of the country the railway serves—for the 
 production of cotton, silk, wool, corn, oil, seeds, saltpetre, indigo, 
 madder, and other dye stuffs—are said to be without limit. 
 
 The Directors state in their report of 30th September, 1861, 
 that since the line was opened “ the quantity of goods delivered 
 by native traders for carriage was much beyond the resources of 
 the railway ”—that the river boat traffic had stopped at Kotree 
 —that native traders at Tatta had proposed to raise funds for 
 a cheap railway, or tramroad, from that place to the line at 
 Jooingshaie—that a large local traffic from that place to Kur- 
 rachee had commenced—that a direct trade between Kurrachee 
 and London, Liverpool, Glasgow, Havre, the Mauritius, Cal¬ 
 cutta, Bombay, and the Persian Gulf had been established— 
 that the passenger traffic, though of the cheap class, was en¬ 
 couraging, and finally, to meet the daily increasing wants, the 
 carrying stock was being got ready in time for the active trade 
 which sets in in September. 
 
 Having drawn attention to all the leading points connected 
 with these great national undertakings, and endeavoured to 
 answer every objection which has been made to the Govern¬ 
 ment contract, it remains only to invite attention to the inte¬ 
 resting extracts from Mr. Danvers’ official Reports, which will 
 be found in the Appendix—to turn the thoughts of the reader 
 to the great moral and commercial revolution which the intro¬ 
 duction of railways especially must effect in India—to beg 
 from him a calm review of the contract, every word of which 
 he may rely has been correctly rendered—and, as a last word, 
 to express a hope that the publication of this work may induce 
 confidence to spring up where others have studiously scattered 
 the seeds of distrust—decision where hesitation has been en- 
 
42 
 
 INDIAN RAILWAYS. 
 
 couraged—and, finally, to place Indian Railways in that high 
 position as investments, which they undoubtedly merit and are 
 entitled to hold. 
 
 The map which accompanies this work, though on a small 
 scale, will give a very accurate notion of the course the diffe¬ 
 rent railways take, and being the same as that appended to 
 the Blue Book so often referred to, may be assumed to be 
 accurate in all respects. 
 
 It is due to my son and partner in business I should state 
 that the idea of this work is his entirely, that he collected the 
 materials from which it has been compiled, and, having so 
 done, passed them over to me, in the belief that my older 
 experience in such matters would enable me to fashion them 
 into better shape than he could hope to effect. I am not so 
 satisfied, however, now that the end has been reached, that his 
 earlier sketch would not, when amplified, have proved the 
 better work; the merit of the idea, at least, is his, the 
 demerits of its realisation—mine. 
 
 JOHN WHITEHEAD. 
 
 London, 
 
 8, Moorgate Street, E.C., 
 Dec., 1861. 
 
APPENDIX. 
 
 - * - 
 
 The following highly interesting extracts are taken from 
 Mr. Danvers’ lucid Report on Indian Railways, made to the 
 Secretary of State for India (1859-60). 
 
 The first extract applies to the profits made on the opened 
 mileage exceeding the 5 per cent, guaranteed to the capital 
 employed (T4,087,000). 
 
 “ This result may, I trust, be regarded as an earnest of what the 
 financial position of these undertakings will be when they are completed 
 throughout. It is thought by some that their present success is due to 
 the shortness of the sections now open, and to their vicinity to the 
 Presidency towns. But these opinions do not apply so much to 
 passenger as to goods traffic, from which latter source, I venture to think, 
 the greater profits will ultimately be derived. At present, the convey¬ 
 ance of merchandise is very limited, and it cannot be expected that the 
 traffic will be properly developed until a greater extent of line is open, 
 but it will have been observed, by the tables given above, that the 
 receipts from goods are already greater than from passengers ; whereas 
 the proportion in 1856 was 55*40 of the latter to 45*60 of the former ; 
 last year it was 39 to 61 per cent. 
 
 ‘ ‘ There are two periods in the history of these undertakings, for the 
 arrival of which the Government as well as the shareholders will look 
 with interest. One, when, after the completion of each undertaking, the 
 half-yearly profits shall exceed the rate of guaranteed interest, and when 
 half such excess will accordingly be added to the 5 per cent, paid to the 
 shareholders. The other, when the whole amount advanced by the 
 Government, for the payment of the guaranteed interest, shall have 
 been paid off, and the shareholders will receive the whole of the net 
 receipts. 
 
 “ It would be premature now to attempt to calculate when these 
 events are likely to occur. In the meantime, however, there is sufficient 
 ground for looking forward to the realisation of Lord Dalhousie’s predic¬ 
 tion, that c the Government will never be called upon, after a line shall 
 have been in full operation, to pay the interest guaranteed upon the 
 capitalin other words, that a line, when completed and in full work, 
 will realise a steady profit of 5 per cent. As this state of thiugs must, 
 however, depend upon various circumstances, it may be worth while to 
 
44 
 
 APPENDIX. 
 
 examine whether the hope may be justified by the present aspect of 
 Indian railway projects. 
 
 “ The success of all railways is of course contingent upon their original 
 cost, upon the manner in which they are managed when completed, upon 
 the trade of the country and the extent and habits of the population of 
 the districts through which they pass, upon the deterioration of the plant 
 and road, and upon the amount of working expenses. And, when 
 applying these conditions to India, it may be possible to arrive at some¬ 
 thing like a correct estimate of the commercial value of railways in that 
 country. 
 
 ******* 
 
 e ‘ The various lines must necessarily differ in their respective results, 
 according to the circumstances of the districts through which they pass, 
 but assuming that the requisite facilities will, in all cases, be afforded 
 for obtaining a ready access to them, and considering that the compe¬ 
 tition will be avoided, which in this country has been the means not 
 only of exhausting funds at the outset, but of seriously diminishing the 
 amount of profits that had been calculated upon, ample grounds exist for 
 the expectation, that when once the lines are completed and brought 
 into working order, the traffic will be sufficient, not only to cover the 
 
 guaranteed interest, but to produce a highly remunerative return. 
 ******* 
 
 “ It is worthy of note how greatly the traffic of the third class 
 preponderates. The proportion of first and second class put together is 
 to the third class as 1 to 16Jr. This shows, conclusively, how strong 
 has become the desire of the population at large to move about, when 
 the means of doing so has been provided. If railways have produced 
 this result with a people usually regarded as inactive and stationary, it 
 may reasonably be expected that an impulse will be given to the 
 
 already expanding trade of India,* the advantages of which will be felt 
 equally in this country as in India. 
 
 “ It may be interesting, as an example, to examine the effect which 
 they will probably have upon the great staple of our manufacturing 
 districts. It appears * * * that the average amount of cotton 
 
 supplied per annum to the United Kingdom, by India, during the ten 
 
 years ending 1858, was 146 million pounds, or about 18 per cent, of 
 
 the total imported into the former. America supplies 75^ per cent, of 
 the remainder. Of the Indian portion, Bombay sends 135 million 
 pounds, Madras 94 millions, and Bengal 1| million. By far the 
 
 greater quantity, therefore, comes from Bombay. The cotton fields of 
 Berar and Surat will soon be penetrated by the Great Indian Peninsula 
 and the Bombay and Baroda Railways. Hitherto the cotton from the 
 former district has been carried to the port of Bombay, a distance of 
 
 * In 1848, the number of European vessels which entered Indian ports was 1927 ; 
 in 1858, 4261. 
 
 In 1848, the value of exports was 14,738,435/., and of imports 10,571,008/. ; 
 total, 25,309,443/. 
 
 In 1858, the exports were 28,278,474/. ; the imports were 31,093,065/. ; total, 
 59,371,530/. (inclusive.of treasure over £16,000,000). 
 
APPENDIX. 
 
 45 
 
 450 or 500 miles, on tlie backs of bullocks or in country carts ; from 
 the latter it has been conveyed in small coasting vessels. The system of 
 packing and cleaning it has been very imperfect, and upon reaching 
 Bombay it is found frequently, after a journey of six or eight weeks, to 
 have deteriorated in quality and to have diminished in quantity. It 
 has been estimated that the expense of conveying it from Berar amounts 
 to 1 \d. per lb., but it is often much higher. This addition to its cost, 
 and its present inferiority to American cotton, prevents the grower from 
 realising an adequate profit, except when America fails to send the 
 necessary supply to England. It is the opinion of competent judges that 
 the growth of cotton in Berar may be increased to an almost unlimited 
 extent, and that, with care and attention, its quality may be improved. 
 When railways afford a safe and expeditious means of conveyance, and 
 enable it (as the present rates would do) to be delivered at Bombay at 
 more than a penny a pound cheaper than can now be accomplished 
 under the most favourable circumstances, there will be no excuse for 
 inattention to its culture, for the cost of bringing it to the English 
 market would then be so reduced as to enable it to compete, upon more 
 equal terms, with American cotton. In a few words, the result of 
 railway communication will be, the greater supply to this country of a 
 better article at a cheaper rate. 
 
 “ The same observations are equally applicable to other products, sufih 
 as sugar, indigo, rice, &c., which are exported from India, as well as to 
 many resources of the country, including wool, flax, fibres, &c., which 
 have hitherto remained comparatively unknown or dormant, principally 
 from the deficiency in the means of conveying them to a seaport. The 
 most important of these resources, the development of which will add 
 more to the material wealth of the country than almost any other pro¬ 
 duct, are coal and iron. For it is possible that, by the use of these 
 essential aids to the working of machinery, India may again become a 
 manufacturing as well as a producing country. In addition to the com¬ 
 mercial benefits which are thus likely to arise, it is hardly necessary to 
 allude to the political, military, and social advantages which will result 
 from railways in India. The saving of time alone will be calculated by 
 weeks instead of hours, as in other countries where railways have been 
 introduced. Whether this saving is considered in reference to the move¬ 
 ments of troops, the conveyance of passengers, or the carriage of goods, 
 the advantages will be enormous. The ease and security which is derived 
 from railways will also be more sensibly felt in India than in almost any 
 other country. Troops will be moved without fatigue and danger to 
 health, and Government will be enabled to concentrate them at any 
 given point at a few hours’ notice ; merchandise will be conveyed 
 without the damage and loss to which it is subject by road or river 
 transit ; and the facilities for personal intercourse, and for the spread of 
 intelligence afforded thereby, will not fail to improve the social condition 
 of the country. ” 
 
APPENDIX. 
 
 46 
 
 FORM OF DEED OF CONTRACT. 
 
 Selection of 
 line. 
 
 Secretary of 
 State to deter¬ 
 mine the course 
 the line shall 
 take. 
 
 Notice of line. 
 
 Secretary of 
 State may alter, 
 extend, or 
 limit the line 
 to he con¬ 
 structed. 
 
 Land. 
 
 Secretary of 
 State to pro¬ 
 vide all neces¬ 
 sary land 
 required for 
 railway-works, 
 &c. 
 
 -♦- 
 
 The following are the provisions contained in the Deeds of 
 Contract between the Government of India and the Railway 
 Companies :— 
 
 1. That it shall be lawful for the Secretary of State in 
 
 Council to determine, fix upon, and select the route and 
 direction of a line of railway, to commence at or near to , 
 and to proceed to or near , and such selected line 
 
 of railway, of an estimated cost, to be approved of by the 
 Secretary of State in Council, shall be completed by the said 
 Railway Company, and opened for the conveyance of passengers 
 and goods with all practicable speed. 
 
 2. That the Secretary of State in Council shall give notice 
 to the said Railway Company of the line when so selected as 
 aforesaid, or of any part or parts thereof, as such part or parts 
 shall from time to time be fixed upon ; and it shall be lawful 
 for the Secretary of State in Council, from time to time, to 
 alter the said route or direction, or to extend or limit the 
 same as he shall think fit, after such notice as aforesaid : 
 Provided always, that if such alteration of route or direction shall 
 be made after the said railway shall have been commenced in a 
 previously selected route or direction, the expense of the said 
 railway, or in any way incident to^tlie said alteration, shall be 
 considered as properly incurred by the said Railway Company. 
 
 3. That the Secretary of State in Council shall, after the 
 selection of the route and direction of the said line of railway, 
 or of any part or parts thereof, and from time to time as may be 
 necessary, provide the land which shall be required for the said 
 railway, or for the part or parts thereof so selected, and the 
 works connected therewith, and for proper stations, offices, 
 warehouses, and other conveniences for the same, and shall give 
 to the said Railway Company possession thereof, and that all 
 land of which possession shall be so given to the said Railway 
 Company which shall not be permanently required for the 
 purposes of the said Railway Company shall, as soon as practi¬ 
 cable, be restored and delivered up by the said Railway Com¬ 
 pany to the Government of India for the use of Her Majesty, 
 her heirs and successors, for the purposes of the Government of 
 India. 
 
 4. That the said Railway Company shall, on receiving pos- 
 
 Works. 
 
APPENDIX. 
 
 47 
 
 session of the same land, or any part thereof, forthwith and 
 subject to the supervision and control hereinafter prescribed, 
 commence and proceed with diligence in the construction of the 
 said line of railway, and of all such stations, offices, ware¬ 
 houses, fixed machinery, and other works and conveniences as 
 in the opinion of the Secretary of State in Council (such 
 opinion to be certified in writing) shall be necessary or expedient 
 as well with reference to the original construction of the said 
 railway, and the w r orking thereof, as Avith reference to the per¬ 
 manent maintenance thereof, and its protection from injury or 
 destruction by inundation, tempests, or other causes whatso¬ 
 ever ; and such railway shall be made at such gradients, and 
 shall be furnished with rails of such weight and strength, and 
 laid down and secured in such manner, and shall consist either 
 of a single or double line of railway as the Secretary of State 
 shall in writing direct, and shall, if required by the Secretary of 
 State in Council, and at such time or times as they shall in 
 writing require, be provided with an electric telegraph, con¬ 
 structed along all or such part or parts of the said railway, and 
 upon such principle and under such regulations as to its use, 
 and the terms of its use, as the Secretary of State in Council 
 shall in writing direct or approve of; and the said Railway 
 Company shall, from time to time, attend to execute and per¬ 
 form all such directions in writing as may from time to time be 
 given by the Secretary of State in Council for any deviations 
 from or alterations in any directions or requisitions previously 
 made or given with respect to the premises. And the said 
 Railway Company shall, as soon as the said railway shall be 
 completed for such a distance as in the opinion of the Secretary 
 of State in Council shall be desirable, open the same for the 
 conveyance of passengers and goods. 
 
 5. That it shall be lawful for the Secretary of State in 
 Council, from time to time, by notice to the said Railway Com¬ 
 pany, to require any specified part or parts of the said line of 
 railway to be completed as aforesaid, and to be opened for the 
 conveyance of passengers and goods before the remaining part 
 or parts thereof shall be constructed, and such requisitions 
 shall be complied with and fulfilled by the said Railway Com¬ 
 pany. 
 
 6. That the said Railway Company shall pay into the Bank 
 of England, to the account of the Secretary of State in Council 
 of India, the sum of not less than , which, 
 
 with‘the sum of , will make up in all the 
 
 sum of sterling, by such instalments and at 
 
 such times as the Secretary of State in Council may require, 
 and such payments may be made in sums of not less than 
 
 each, in London, provided that if the said Railway Com¬ 
 pany shall receive any portions of the capital already subscribed, 
 or hereafter to be subscribed, in India, it shall be lawful for 
 
 Line to be 
 commenced on 
 possession of 
 land being 
 given. 
 
 Secretary of 
 State to ap¬ 
 prove of the 
 works to be 
 undertaken. 
 
 Electric tele¬ 
 graph to be 
 provided. 
 
 Company to 
 execute and 
 perform all 
 written orders 
 as to deviations, 
 &c. 
 
 Partial open¬ 
 ings may be 
 ordered. 
 
 Opening to be 
 effected accord¬ 
 ing as Secretary 
 of State may by 
 notice request. 
 
 Money capital 
 to be paid to 
 the account of 
 the Secretary of 
 State for India. 
 
48 
 
 APPENDIX. 
 
 Rupee value 
 fixed at ls.lO<A 
 sterling. 
 
 Draft on capi¬ 
 tal. 
 
 Sanction of 
 Secretary of 
 State required. 
 
 Ten days’ no¬ 
 tice necessary. 
 
 Plant, fares, 
 and tolls. 
 
 Working stock 
 to be provided. 
 
 them to pay the amount so received in sums of not less than 
 
 rupees into the treasury at , 
 
 in or towards satisfaction of the said instalments, and the 
 acknowledgments of such respective payments there shall, when 
 produced to the Secretary of State in Council in London, be 
 considered and taken in part satisfaction as on the days of pay¬ 
 ment thereof respectively of the said sum of , 
 
 at the exchange of Is. KM. for each Company’s rupee : Pro¬ 
 vided always, that such payments into the treasury at 
 shall not exceed the amounts which may from time to time be 
 required for expenditure in India, such limit being determined 
 upon by the Secretary of State in Council. 
 
 7. That as often as, and when any money shall be required 
 
 by the said Railway Company for any purposes in connection 
 with the said line of railway, sanctioned by the Secretary of 
 State in Council, and with reference to the particular sums 
 from time to time required, only so far as such purposes shall 
 have been performed to the satisfaction of the Secretary of 
 State in Council, or when any money shall be required for the 
 performance of works in connection with the said line of railway, 
 sanctioned by the Secretary of State in Council, while the 
 same shall be in course of execution, the same may be drawn in 
 such sums as shall, from time to time, be necessary, by the 
 said Railway Company in London or in India, according to 
 such arrangements as shall be made from time to time with the 
 Secretary of State in Council for that purpose ; but ten days’ 
 notice of every such draft, or proposed draft, shall be given to 
 the Secretary of State in Council, or to the Government of India, 
 or to such Lieutenant Governor or such authority as the said 
 Government of India may direct ; and all sums of money 
 which shall be so drawn at shall be set off at the 
 
 exchange of Is. lOd. for each Company’s rupee against the said 
 sum of sterling, or so much thereof as shall 
 
 have been paid into the Bank of England to the account of the 
 Secretary of State in Council as aforesaid ; and the said Rail¬ 
 way Company shall not in any case be entitled to draw in 
 London or in India to an extent greater than the balance in 
 their favour for the time being in respect of the capital raised 
 for the said line of Railway. 
 
 8. That when and so soon as the said line of railway, or any 
 part or parts thereof which shall have been required by the 
 Secretary of State in Council to be completed before the con¬ 
 struction of the other parts, shall be completed and ready to be 
 opened for the use of the public, and so, from time to time, as 
 any such part thereof shall be so completed and ready to be 
 opened, the said Railway Company shall and will, subject to 
 the supervision and control hereinafter mentioned, provide to 
 the satisfaction of the Secretary of State in Council a good and 
 sufficient working stock of engines, carriages, and other plant 
 
APPENDIX. 
 
 49 
 
 and machinery for working the said railway, or such part or 
 parts thereof as shall have been completed as aforesaid, and Traffic to be 
 carrying on the business and traffic of the same, and the said carried on. 
 Railway Company shall and will forthwith commence and carry 
 on the business of common carriers of goods and passengers Trains and 
 upon the said railway, and for that purpose shall cause to be speed to be 
 run on the said railway so many trains at such times, and at ^ 
 
 such rates of speed, and between such places, and with such g tate 
 conveniences and accommodations, as the Secretary of State in 
 Council shall from time to time require. And the said Railway Fares and tolls 
 Company shall and will allow the use of the said railway to the approved 
 public on such terms as shall be approved by the Secretary of g^ a tg? retary ° 
 State in Council ; and the said Railway Company shall be au¬ 
 thorised and empowered to charge such fares for the carriage of 
 passengers and goods, and such tolls for the use of the said 
 railway as shall have been approved by the said Secretary of m rec q ice( i 
 State in Council, and shall not in any case charge any higher or w hen 10 per 
 different fares or tolls whatsoever without such approval being cent, profit on 
 first obtained ; but such fares or tolls shall, when such net t!ie outlay in 
 receipts as are herein-after mentioned shall in any year have s^all°have been 
 exceeded ten per cent, upon the outlay, be reduced in accord- realised, but 
 ance with any requisition of the Secretary of State in Council only to prevent 
 in that behalf, but only with a view of limiting the said fares 10 per cent, 
 and tolls so far that the net receipts shall not exceed ten per ^ ein § exceeded, 
 cent, as aforesaid. 
 
 9. That upon the completion of the said line of railway, or Title to land, 
 of any part or parts thereof which shall have been required by 
 
 the Secretary of State in Council to be completed before the 
 construction of the remaining part, the Secretary of State in 
 Council shall and will grant to the said Railway Company a 
 lease of or otherwise secure to them a right and title to the 
 land which shall have been provided under the provisions in 
 these presents contained, or of so much thereof as shall be re¬ 
 quired for the completed line, and for the works and conveni¬ 
 ences thereto belonging for a term of ninety-nine years, 
 commencing from the day of the date of these presents, unless thedate 
 the same shall be sooner determined under the provisions herein 0 f contract, 
 contained, and the Secretary of State in Council shall guarantee 
 to the said Railway Company the quiet and undisturbed pos¬ 
 session of such land, but shall not be called upon to show any 
 title thereto. 
 
 10. That the said Railway Company and their officers, ser- Supervision ; 
 vants, and agents, as also their accounts and affairs, shall in all 
 
 things be subject to the superintendence and control of the b<T appointed; 
 Secretary of State in Council, as well in England as else- his powers and 
 where, and in particular that no bye-laws, contracts, privileges, 
 orders, directions, proceedings, works or undertakings, acts, 
 matters, or things whatsoever shall be made, done, en¬ 
 tered into, commenced, or prosecuted by or on the part 
 
50 
 
 APPENDIX. 
 
 Secretary of 
 State to possess 
 the right to 
 superintend, 
 control, and 
 direct. 
 
 Books to be 
 kept. 
 
 Free access to 
 be allowed to 
 Secretary of 
 State, or his 
 nominee, to all 
 books, accounts, 
 papers, and 
 documents, 
 save certain 
 legal communi¬ 
 cations, and to 
 make extracts. 
 
 Government 
 Director to be 
 appointed, with 
 the right of 
 veto: 
 
 of the said Railway Company, unless previously sanctioned 
 in writing by the Secretary of State in Council, or in 
 some other manner to be prescribed by them, and that no 
 monies shall be raised by the said Railway Company by any 
 other means than by calls upon or payments in respect of the 
 shares in the same Company, without the sanction of the 
 Secretary of State in Council in writing, and no extension in 
 the number of shares in the said Railway Company or in the 
 amount of its capital shall be made, unless sanctioned in like 
 manner ; and that it shall be lawful for the Secretary of 
 
 State in Council, from time to time, to give to the said 
 
 Railway Company, their officers, servants, and agents, all 
 such orders and directions as the Secretary of State in Council 
 shall from time to time think fit, with reference to the rail¬ 
 way and works to which this present contract relates, and 
 
 with reference to the manner and times of executing the 
 same, and with reference to any contracts, orders, and direc¬ 
 tions to be entered into, made, or given with regard thereto, 
 and otherwise with reference to the same, all which contracts, 
 orders, and directions shall be executed and followed by the 
 said Railway Company, to the satisfaction of the Secretary of 
 State in Council, the costs and expenses of the same, which 
 shall have been allowed and sanctioned by the Secretary of 
 State in Council, being paid out of the capital of the said 
 Railway Company, raised for the purposes of this present con¬ 
 tract : And that for better enabling the Secretary of State in 
 Council to exercise the control and direction intended to 
 be hereby secured, the said Railway Company shall record 
 and keep in proper books for that purpose full and particular 
 accounts of all their transactions and proceedings, including 
 full and true minutes of all their meetings, meetings of 
 Directors, communications with India, and correspondence, 
 so as at all times to exhibit thereby fully and truly the state 
 of their affairs and proceedings ; and that the Secretary of 
 State in Council, and any person or persons appointed by 
 him in that behalf, shall at all reasonable times have free 
 access to all the books, accounts, papers, and documents of the 
 said Railway Company (except communications between the 
 said Railway Company and their legal advisers), and power to 
 make copies of or extracts from the same, whether such books, 
 accounts, papers, and documents relate to the said railway and 
 works, or to any other matters and things whatsoever in which 
 the said Railway Company shall or may be interested ; and for 
 the purposes aforesaid it shall be lawful for the Secretary of 
 State in Council, from time to time, to appoint any one 
 per. on, not being a shareholder in the said Railway Company, 
 to be a Director of the said Railway Company, to be called the 
 Government Director, which Director, if and when appointed, 
 shall rank as and be one of the Board of Directors of the said 
 
APPENDIX. 
 
 51 
 
 Company, and be entitled in all things to act as such, and to 
 
 exercise at his discretion a right of veto in all proceedings 
 
 whatsoever at Boards of the said Directors, except proceedings 
 
 for the purpose of communicating with the legal advisers of the 
 
 Company, and shall not be removeable except by order of the 
 
 Secretary of State in Council, and shall, in case the whole 
 
 number of Directors shall at the time of his appointment be 
 
 filled up, come and be in the place of the Director who shall 
 
 retire from the direction according to the decision of the to sit at the 
 
 Board, such decision being taken by ballot, but such not 
 
 Government Director shall not be entitled to any salary 1 
 
 from the said Railway Company : Provided always, that 
 
 nothing herein-before contained shall authorise the Secretary 
 
 of State in Council to appoint any officer or servants of the 
 
 said Railway Company, except such Government Director as 
 
 aforesaid. 
 
 11. That all the expenses of the said railway, in respect of Sanction of 
 the said line of railway, shall from time to time be stated and expenditure by 
 submitted to the Secretary of State in Council, for his sanction g^te necessary 
 and approval, and as between the said Railway Company and the 
 Secretary of State in Council, shall be allowed so far only as the 
 
 same shall from time to time have been sanctioned and approved 
 by the Secretary of State in Council : Provided always, that 
 the last-mentioned stipulation shall not interfere with any such 
 subsidiary agreement or agreements (if any) as from time to 
 time may be made between the said Railway Company and the 
 Secretary of State in Council, for the performance of any part 
 or parts of the said railway and works, at any sum or sums of 
 money to be specified in such subsidiary agreement or agree¬ 
 ments, in which case the expenses in respect of the same shall 
 be allowed and taken at the sum or sums which shall be so 
 agreed upon. . 
 
 12. That a capital account relating to the construction of Capital ac- 
 
 the said line of railway, and the works, conveniences, and ^fiTalHhe 1 " 
 telegraphs thereto belonging, and relating to the original cost s ^ ms expended 
 of engines, carriages, plant, and machinery provided for the with the ap- 
 purposes of the said line, to be called “ The proval of the 
 
 Capital Account,” shall be kept by the said Railway Company, 
 
 to which account all monies paid by the said Railway Com¬ 
 pany, the expenditure of which shall have received the sanction 
 and approval of the Secretary of State in Council, shall from 
 time to time be carried, and when and so soon as the said 
 railway and works shall have been completed, and furnished When railway 
 with the necessary rolling stock and plant, or at any earlier completed 
 time or times, if the Secretary of State in Council shall require fq rn with 
 the same, the said capital account shall be made up, and a rolling stock 
 statement shall be furnished to the Secretary of State in and plant, or 
 Council of the aggregate amount of capital, which, according sooner, if re- 
 to such account, shall have been expended, and such amount ( l uire( ^> 
 
 e 2 
 
52 
 
 APPENDIX. 
 
 capital account 
 to be closed, 
 and its total, if 
 on examination 
 found correct, 
 to be certified. 
 
 Revenue to be 
 charged with 
 all costs of 
 working and 
 maintaining 
 line and stock. 
 
 Capital account 
 may be re¬ 
 opened for cer¬ 
 tain defined 
 purposes with 
 the sanction of 
 Secretary of 
 State. 
 
 Repair and 
 maintenance of 
 rolling stock ; 
 
 to be kept in 
 good repair, so 
 as, during the 
 whole 99 years, 
 to be adequate 
 to the service. 
 
 Revenue ac¬ 
 count to be 
 made up 30th 
 June, and 31st 
 December, in 
 each year. 
 
 Secretary of 
 State at liberty 
 to make cor¬ 
 rections “in all 
 times.” 
 
 Deposit of reve¬ 
 nue and drafts 
 thereon. 
 
 Revenue to be 
 paid into and 
 drawn from the 
 Indian Trea¬ 
 sury, with the 
 
 shall, by examination of such account, be ascertained and 
 certified by the Secretary of State in Council, and thenceforth 
 and from the opening of the said line of railway or any part 
 thereof, the cost of maintaining it, with its machinery and 
 stock in good working condition, shall be payable by the said 
 Railway Company out of the revenue of the said railway, 
 including any interest to be received from the Secretary of 
 State in Council, as herein-after is mentioned ; but upon any 
 additions, alterations, or improvements, such as shall properly 
 be chargeable to the capital account, being thereafter made, 
 with the sanction and approval of the Secretary of State in 
 Council, to, of, or in the said railway, or the works, con¬ 
 veniences, or telegraphs thereto belonging, or the engines, 
 carriages, and other plant and machinery belonging thereto, 
 the cost necessarily incurred in executing such additions, altera¬ 
 tions, or improvements shall be added to the said capital 
 account, and the said capital account shall from time to time 
 be made up and stated afresh as occasion shall require, and be 
 ascertained and certified accordingly. 
 
 13. That at all times during the said determinable term of 
 99 years the said Railway Company shall keep the said rail¬ 
 way, or so much thereof as shall be completed and opened for 
 traffic, and the works and conveniences belonging thereto, and the 
 telegraphs on the said railway (if any) in a state of good repair, 
 and in good working condition, to the satisfaction of the Secre¬ 
 tary of State in Council, and shall keep the same fully provided 
 with rolling stock and plant adequate to the service thereof to 
 the satisfaction of the Secretary of State in Council. 
 
 14. That the said Railway Company shall, in such forms 
 
 and under such heads or divisions as shall be prescribed by the 
 Secretary of State in Council, keep accounts of all receipts and 
 payments whatsoever in respect of the said line of railway 
 (other than such receipts and payments as properly belonging 
 to the capital account herein-before agreed to be kept), and 
 such accounts shall be called the ei Revenue 
 
 Accounts,” and shall be made up half-yearly to the 30th day 
 of June and the 31st day of December in every year, or to 
 such other days in the year as the Secretary of State in Council 
 shall appoint, and shall be regularly transmitted to the Secre¬ 
 tary of State in Council, who shall be at liberty in all times, in 
 auditing the same accounts, to make any corrections therein 
 which may be necessary. 
 
 15. That all the earnings of the said railway, received by or 
 
 on account of the said Railway Company in India, shall be 
 paid at such times and in such manner as the Secretary of 
 State in Council shall direct, without any deduction under any 
 pretence whatever, into the Treasury of the Government of 
 India at , to an account to be kept separately, 
 
 to be called u The Revenue Account,” and when 
 
APPENDIX. 
 
 53 
 
 any money shall be required by the said Railway Company for sanction of the 
 any purposes in connection with the said railway, sanctioned of 
 
 by the Secretary of State in Council, such money may be 
 drawn by the said Railway Company according to such arrange¬ 
 ments as shall from time to time be made with the Secretary of 
 State in Council for that purpose. 
 
 16. The Secretary of State in Council shall, from time to Guarantee of 
 
 time during the determinable term of 99 years, pay out of the inteiest - 
 
 revenues of India to the said Railway Company in London, T1 „ 
 
 v i. j iieveiiues oi 
 
 half-yearly, on the 30th day of June and the 31st day of India charged 
 December in every year, interest at the rate of per cent, with the pay- 
 per annum on the said sum of sterling, or on such ment of the 
 
 parts thereof as shall for the time being have been paid into the S uaiantee - 
 Bank of England, to the account of the Secretary of State in 
 Council, or into a treasury in India, as aforesaid, such interest 
 upon any part of the said sum of being considered, 
 
 in the first instance, as running from the day on which the 
 same part shall have been so paid into the Bank of England to 
 such account. 
 
 17. That if the expenditure of the said Railway Company in Excess above, 
 making the said railway and works, or otherwise in respect of 
 
 the matters to be included in the said capital account, shall 
 exceed the said sum of , the money necessary to meet jsj’ ew capital 
 
 such excess shall be raised and paid by the said Railway Com- guaranteed in 
 pany into the Bank of England, to the account of the Secretary the same mau- 
 
 of State in Council, and the Secretary of State in Council shall, ne f , 
 
 v x- xx- i xi xt -i r xi • i j i raised capital, 
 
 from time to time, during the then residue of the said deter¬ 
 minable term of 99 years, pay out of the revenues of India to 
 the said Railway Company, half-yearly, on the days aforesaid, 
 interest at the rate of per cent, per annum, such interest 
 on the same monies to be calculated from the respective times 
 when they shall have been so paid into the Bank of England 
 as aforesaid. 
 
 18. That so soon as the said Railway Company shall begin Application of 
 to work the said line of railway, or any part thereof, and P ro *h s - 
 henceforth during the said determinable term of 99 years, the 
 
 net receipts which shall be realised during any half-year, or * 
 from the commencement up to the first of the aforesaid half- 
 yearly days on the said line of railway, or on any part thereof, 
 after deducting therefrom all sums which shall have been 
 expended in the repairs and maintenance of the said' line of 
 railway and works, and the repair and restoration of the roll¬ 
 ing stock and plant belonging thereto, or have been duly 
 apportioned to the account of the said line of railway for 
 expenses of management and conduct of the said Railway 
 Company and its affairs, and which shall have been allowed 
 or sanctioned by the Secretary of State in Council, and also mav'le 
 deducting such sum (if any) as, with the consent of the established 
 Secretary of State in Council, may be appropriated and set and if so, to 
 
54 
 
 APPENDIX. 
 
 be invested 
 till required 
 to make good 
 deterioration; 
 
 remainder of 
 net profits to go, 
 so far as they 
 will, to meet 
 the guarantee. 
 
 Net profits 
 chargeable 
 with guarantee 
 and with re¬ 
 payment of 
 interest debt. 
 
 The residue of 
 net profits to 
 go in equal 
 portions— 
 one to the 
 Government to 
 liquidate the 
 interest debt 
 made up of the 
 interest paid 
 on the capital 
 with simple 
 interest added 
 —the other 
 moiety to go to 
 the Company. 
 
 When the 
 interest debt 
 has been met, 
 all profits to 
 belong to 
 Company. 
 
 Mails and 
 troops 
 
 to be conveyed 
 
 apart for repairing, restoring, and making good any deteriora¬ 
 tion of the railway and works or stock and plant, and for tke 
 current expenses of working the said railway (the money to be 
 so appropriated and set apart as a reserve fund, or any part 
 thereof being invested and accumulated or otherwise dealt 
 with, till required for application in any manner the said 
 Railway Company may think fit, subject to the sanction and 
 approval of the Secretary of State in Council), shall be 
 applied, in the first instance, in or towards discharge of 
 the interest, which shall be payable by the Secretary of 
 State in Council under their covenants in this indenture 
 contained, in respect of the said half-year, so as to exone¬ 
 rate the Secretary of State in Council, so far as the game 
 net receipts will extend, from the payment of such interest, 
 the money to be so applied being reckoned at the fixed and 
 permanent exchange of Is. lOd. per Company’s rupee, and the 
 residue (if any) of such net receipts shall be applied in manner 
 following, that is to say one moiety thereof shall be forthwith 
 applied in the repayment of such sums of money as shall at any 
 previous time or times have been paid by the Secretary of 
 State in Council to the said Railway Company under the 
 covenants in this indenture contained, by way of interest as 
 aforesaid, together with simple interest on such sums of money 
 at the rate of per cent, per annum from the times of pay¬ 
 ment respectively, and such moiety shall be paid into the 
 Treasury of the Government at , and shall be 
 
 reckoned at the said rate of exchange, and shall be applied in 
 reduction and discharge of the whole of the interest payable to 
 the Secretary of State in Council on the said sums of money, 
 before the same shall be applied in liquidation of any part of 
 the principal thereof, and the other moiety of the said surplus 
 net receipts shall be paid to or applied for the use and benefit 
 of the said Railway Company ; and if, at any time during the 
 determinable term of 99 years, the whole of the monies pre¬ 
 viously paid by the Secretary of State in Council as aforesaid, 
 with interest thereon as aforesaid, shall have been repaid and 
 discharged, then for every half-year during such time, and so 
 often as the same shall happen, the said Railway Company 
 shall be entitled, for their own use and benefit, to the entirety 
 of the said surplus net receipts, or, as the case may be, so much 
 thereof as may remain after such repayment and discharge as 
 last aforesaid, shall have been made. 
 
 19. That the said Railway Company will at all times during 
 the said determinable term convey on the said railway the 
 Government mails and post bags, and the guards and other 
 servants of the Post Office in charge thereof, free of charge ; 
 and when they are on duty, all officers and persons in the 
 administration of the Post Office also free of charge, and will 
 also convey on the said railway, when they are on duty, the 
 
APPENDIX. 
 
 55 
 
 troops in Her Majesty’s service, both horse and foot, and all 
 other persons to whom the provisions of the Mntiny Acts and 
 Regulations for the time being in force for Her Majesty’s 
 European and Indian forces respectively shall be applicable, 
 and all artisans on the business of the Government; the officers in superior 
 and persons of similar station in life to be entitled to travel in carriages at 
 first-class carriages at second-class fares, and the troops and * ower iares 5 
 European artisans in second-class carriages at the lowest fares, 
 and all other persons at the lowest fares, with two tons of 
 baggage for every hundred men, free of charge, and will also 
 convey on the said railway all general stores belonging to the a i so stores and 
 Government, and all guns, ammunition, horses, and other war materials, 
 animals used for military purposes, and all military stores, & c -> at the 
 carriages, waggons, camp equipage and equipments whatsoever, ^ we ^. iates 
 at the lowest rate, for the time being, chargeable for the ° 
 carriage of such animals, goods, and merchandise, the several 
 privileges of conveyance and carriage hereby stipulated for, 
 being at all times to be used and enjoyed in preference to and 
 priority over the public use of the said line of railway for con¬ 
 veyance and carriage. 
 
 20. That at the end of the said term of 99 years, by Ultimate rights 
 effluxion of time, the land to be provided as aforesaid, with the °f property, 
 railway thereon, and all buildings, works, fixed machinery, 
 telegraphs, and conveniences whatsoever, shall revert to and Land, with 
 become the property of Her Majesty, her heirs and successors, railway, &c., 
 for the purposes of the Government of India, free from all ^ revert to^tlie 
 debts and charges whatsoever (save such as shall have been j nc p a at t ^ e 
 sanctioned by the Secretary of State in Council), and any end of the 99 
 lands in Great Britain which may then be held by the said years. 
 
 Railway Company for the purposes of the undertaking to which j jan( j g Jn Q re .^ 
 this contract relates shall be sold, and the clear monies produced Britain to be 
 by any such sale shall be paid into the Bank of England to the sold, 
 account of the Secretary of State in Council, and the said 
 Railway Company shall deliver to the Secretary of State in 
 Council their property on the same account, all plans, surveys, ^ p] ans> 
 sections, books, printings, writings, drawings, and documents to be given up. 
 whatsoever in anywise connected with the undertaking and 
 affairs of the said Railway Company, so far as respects the said 
 line of railway. And the said Railway Company shall sell, and Engines, car- 
 the Secretary of State in Council, on behalf of Her Majesty riages, &c., to 
 and for the purposes of the Government of India, shall purchase, ^ 
 all the engines, carriages, stock, machinery, and plant which tJ|e (j overn . 
 shall be then used in working the said railway, or otherwise in men t by valua- 
 connection therewith, or belonging thereto, for such sum of tion. 
 money as shall be the fair value thereof, the same to be deter¬ 
 mined in case of difference by a valuation, to be made by 
 referees or their umpire, to be respectively appointed in the 
 usual manner. And the Secretary of State in Council shall The value of 
 pay out of the revenues of India to the said Railway Company same to be paid 
 
56 
 
 APPENDIX. 
 
 in London the sum of money to be so determined within four 
 months after such determination, with interest thereon at the 
 rate of five per cent, per annum, from the expiration of the said 
 term of 99 years. 
 
 21. That after any portion of the said line of railway shall 
 
 have been finished and in work for three calendar months at 
 
 After line has least, it shall be lawful for the said Railway Company then or 
 
 ”, W ?, l +uf 01 an y time thereafter during the said term of 99 years, to give 
 
 notice in writing of their intention to surrender and relinquish 
 
 the said railway and works on any day to be mentioned in such 
 
 notice, so that such notice be served at least six calendar 
 
 months before that day, both on the Secretary of State in 
 
 Council ill London, and also on the Secretary of Government 
 
 at ; and in case of such notice being given, the 
 
 Line to be tben • ■» -p* •-« /q in i ii • • ii r* 
 
 surrendered sai( * Liailway Company snail, at the expiration thereof, sur- 
 
 and Company render and relinquish to Her Majesty, for the purposes of the 
 
 to wind up its Government of India, the said line of railway and works 
 
 accordingly, together with the telegraphs (if any), and shall, 
 
 with all convenient speed, sell any lands in Great Britain which 
 
 may then be held by the said Railway Company for the purpose 
 
 of the undertaking to which this contract relates, and pay the 
 
 clear monies to be produced by such sale into the Bank of 
 
 England, to the account of the Secretary of State in Council of 
 
 to Railway 
 Company. 
 
 Surrender. 
 
 three months, 
 Company at 
 liberty to sur¬ 
 render same 
 on giving six 
 months’ notice. 
 
 affairs. 
 
 Company to 
 deliver up en¬ 
 gines, car¬ 
 riages, &,c. to 
 the Govern¬ 
 ment, also 
 all plans, &c. 
 
 India ; and shall deliver to the Government, or their authorised 
 agents on behalf of Her Majesty, for the purposes of the 
 Government of India, the engines, carriages, stock, plant, and 
 machinery belonging to the said line of railway and works, 
 and all plans, surveys, sections, printings, writings, draw¬ 
 
 ings, and documents whatsoever connected therewith, and the 
 premises to be so surrendered and delivered, shall be accepted 
 and received accordingly, it being expressly agreed that the 
 said line of railway, works, stations, telegraphs, engines, 
 carriages, stock, plant, and machinery shall, at the time of such 
 surrender and delivery, be in good working order, according to 
 plant to^be in the covenant in that behalf herein-before contained on the part 
 good working of the said Railway Company ; and immediately upon such 
 surrender and delivery being made, the Secretary of State in 
 Council shall be bound to pay out of the revenues of India to 
 the said Railway Company the capital expended by the said 
 Railway Company upon the said railway, works, and premises 
 so to be surrendered and delivered, such expended capital being 
 ascertained and certified in the manner herein-before mentioned, 
 together with such parts (if any) of the capital raised for the 
 Company to be purposes of this contract as shall remain in the Bank of Eng- 
 discharged land, to the account of the Secretary of State in Council, and 
 lities a a 1 to discharge and indemnify the said Railway Company from all 
 Government debts and liabilities incurred with the sanction of the Secretary 
 no longer to be of State in Council in respect of the said line of railway ; 
 responsible for and thereupon the covenants herein-before contained for pay- 
 
 The railway 
 and all the 
 
 order. 
 
 Capital to be 
 then repaid. 
 
APPENDIX. 
 
 57 
 
 ment of interest shall cease as from the day upon which the payment of 
 said line of railway and works are to be surrendered and interest, 
 accepted ; and all claims by the Secretary of State in Council, Railway Corn- 
 on account of interest on the said Railway Company in respect P an y ^ re " 
 of the said line of railway, shall also cease, and the Secretary p lterest ( i e p t 
 of State in Council shall be at liberty to retain out of any p u t to be liable 
 monies payable to the said Railway Company, the amount of for revenue 
 all claims and demands of any sort then existing against the debts, 
 said Railway Company on their revenue account, in respect of Revenue and 
 their said railway, and which shall not be shown to have been 
 fully satisfied and discharged : Provided always, that the chargeable 
 Secretary of State in Council shall not be liable to refund any with costs of 
 sijm expended in the maintenance or working of the said line working and 
 of railway, or any part thereof, after the same shall have “ a * ntc l iniu 8' 
 been opened, which sum is to be provided by the Railway 
 Company out of the revenues of the line, and interest, as herein¬ 
 before provided, or otherwise. 
 
 22. That at any time within six calendar months after the Purchase by 
 expiration of the first twenty-five years of the said term of 99 Government, 
 years, or at any time within six calendar months after the 
 expiration of the first fifty years of the same term, it shall be 
 lawful for the Secretary of State in Council to give notice to 
 the said Railway Company in London and at of Notice of in ten - 
 
 their intention to purchase, on behalf of Her Majesty, for the Gon g ^ ven 
 purposes of the Government of India, the said railway and ^onths^fter 
 works, together with the stations and telegraphs (if any), and the first 25 or 
 the engines, carriages, stock, plant, and machinery belonging 50 years of 
 to the said railway and works, but subject to such debts and lease have 
 liabilities (if any) as may have been incurred to Her Majesty, ex P ire( * » 
 or to the Secretary of State in Council (exclusive of any arrears 
 of the interest on the capital of the said Railway Company paid ^^^o/debts" 
 by the Secretary of State in Council, under the conditions of this j-,y Company, 
 agreement, which shall not have been repaid), or to any person the interest 
 or persons with the sanction of the Secretary of State in Council, debt excluded, 
 and to interest on such of the said debts as carry interest from the 
 day on which possession shall be taken of the said railway, but Possession to 
 not from any earlier time ; and thereupon, at the half-yearly ta k en a ^ 
 day next but one following such notice, the land to be provided time uame 
 as aforesaid, with the railway thereon, and all buildings, works, 
 fixed machinery, stations, telegraphs, and conveniences whatso¬ 
 ever connected therewith, shall revert to and become the pro¬ 
 perty of Her Majesty, for the purposes of the Government of 
 India ; and in case any lands in Great Britain shall then be Lands in Great 
 held by the said Railway Company for the purpose of the to 
 
 undertaking to which this contract relates, the same shall be 
 
 sold, and the clear monies to be produced by such sale shall 
 be paid into the Bank of England to the account of the Secre¬ 
 tary of State in Council of India ; and the said Railway 
 Company shall at the same time deliver to the Government, Engines, car- 
 
58 
 
 APPENDIX. 
 
 riages, &c.,to be 
 delivered over. 
 
 Government 
 bound to 
 pay to tlie Com¬ 
 pany for their 
 capital the 
 mean market 
 value the stock 
 bore in London 
 for three years 
 prior to pur¬ 
 chase. 
 
 Possession as a 
 remedy. 
 
 If Company 
 make default 
 in their cove¬ 
 nants, or do not 
 work railway to 
 the satisfaction 
 of Secretary 
 of State, pos¬ 
 session may be 
 taken on notice 
 l>y Government. 
 
 All matters and 
 things to be 
 given up. 
 
 Lands in Great 
 Britain to be 
 sold. 
 
 or tlieir authorised agents, on behalf of Her Majesty, for the 
 purpose of the Government of India, the engines, carriages, 
 stock, plant, and machinery belonging to the said line of 
 railway and works, and all plans, surveys, sections, books, print¬ 
 ings, drawings, writings, and documents whatsoever in anywise 
 relating thereto ; and the Secretary of State in Council shall be 
 bound to pay in London, out of the revenues of India, on the 
 said half-yearly day, for the purchase of all the same premises, 
 a sum equal to the amount of the value of all the shares and 
 capital stock in the said Railway Company issued or created 
 for the purposes of the said Railway, calculated 
 
 according to the mean market value in London of such shares 
 or stock, during the three years immediately preceding the 
 expiration of the said period of twenty-five years, or the said 
 period of fifty years, as the case may be, and shall also be 
 bound to indemnify the said Railway Company against all such 
 debts and liabilities (if any) as they may have incurred, to 
 or with the sanction of the Secretary of State in Council, in 
 respect of the said line of railway, and as shall be then sub¬ 
 sisting, and thereupon the covenants herein-before contained 
 for payment of interest shall cease. 
 
 23. That if default shall be made by the said Railway Company 
 in the raising and payment of the said sum of , or any of 
 
 the instalments thereof, or of such further capital as shall be 
 required for the construction of the said railway, or in the due 
 application of any monies drawn in London or in India as afore¬ 
 said, or in the execution of the said railway and works, con¬ 
 formably with the covenants in that behalf herein-before con¬ 
 tained, or in case the said railway shall not be worked to the 
 satisfaction of the Secretary of State in Council, or in case of 
 any other breach on the part of the said Railway Company of 
 any of the covenants herein contained, it shall be lawful for the 
 Secretary of State in Council, on giving to the said Railway 
 Company at three calendar months’ notice of their inten¬ 
 
 tion in that behalf, to terminate the interest of the said Railway 
 Company in the said land, railway, telegraphs, and works to be 
 taken or constructed under these presents, and by their agents 
 to assume on behalf of Her Majesty, for the purposes of the 
 Government of India, possession of the land, railway, tele¬ 
 graphs, and works, and of all or any of the engines, carriages, 
 stock, plant, and machinery provided for the same or belonging 
 thereto; and all plans, surveys, books, printings, drawings, 
 writings, and documents whatsoever in anywise connected with 
 the said line of railway, and in that case any lands in Great 
 Britain which may then be held by the said Railway Company 
 for the purpose of the undertaking to which this contract relates 
 shall, with all convenient speed, be sold, and the clear monies 
 to be produced by such sale shall be paid into the Bank of Eng¬ 
 land, to the account of the Secretary of State in Council. And 
 
APPENDIX. 
 
 59 
 
 in case of such notice being given, the Secretary of State in 
 Council shall be liable to repay, out of the revenues of India, 
 within six calendar months after its expiration, to the said Rail¬ 
 way Company in London, the capital expended by the said 
 Railway Company upon the said railway and works, so ascer¬ 
 tained and certified as herein-after is mentioned, after a proper 
 deduction for all debts and liabilities then affecting the said 
 Railway Company, in respect of the said line of railway, the 
 money so to be repaid to include so much (if any) of the capital 
 raised for the purposes of the said line of railway as shall then 
 remain in the Bank of England, to the account of the Secretary 
 of State in Council, and also to discharge, exonerate, and in¬ 
 demnify the said Railway Company from all debts, obligations, 
 and liabilities for works and expenditure undertaken, with the 
 sanction of the Secretary of State in Council, in respect of the 
 said line of railway, and thereupon the covenants of the Secre¬ 
 tary of State in Council in this indenture contained for pay¬ 
 ment of interest shall cease, and all claims by the Secretary 
 of State in Council on the said Railway Company, in respect of 
 the said line of railway, shall also cease, the intention of the 
 parties hereto being that the said Railway Company shall, under 
 all circumstances, receive back their capital expended with such 
 sanction as aforesaid, and that such re-entry and assumption of 
 possession, and the exercise by the Secretary of State in Council 
 of the powers and authorities by this clause given to them, shall 
 be the only penalty to which the said Railway Company shall 
 be liable in case of default in raising sufficient capital for the 
 purposes of the said line of railway, or in constructing and 
 working the said railway to the satisfaction of the Secretary of 
 State in Council. 
 
 Secretary of 
 State to repay 
 capital within 
 six months. 
 
 Railway Com¬ 
 pany’s debts 
 and liabilities 
 to be deducted. 
 
 Company to be 
 discharged from 
 obligations. 
 
 Obligation on 
 Government to 
 pay interest to 
 cease, and 
 Company also 
 to be released 
 from interest 
 debt. 
 
 Capital ex¬ 
 pended to be 
 received back. 
 
 Only penalty to 
 be, surrender 
 in the events 
 stated. 
 
 24. That if default shall be made by the Railway Company, Repairs by the 
 
 after the said line of railway, or any portion thereof, shall have Government of 
 
 been opened, in their covenant to keep the said line of railway * nc ^ a * 
 
 and works, or such part thereof as shall have been completed 
 
 and opened for traffic, in repair and condition for the space of ^ ^ ne s ^ ia ^. 
 
 one calendar month next after notice in writing in that behalf not * 3e 
 
 from the Secretary of State in Council to the said Railway Com- an( j condition, 
 
 pany at , it shall be lawful for the Secretary of State Secretary of 
 
 in Council, by their agents, to enter on the said line of railway State may 
 
 and works, and to do and execute all such works as may be execute 
 
 i n , ,, works as may 
 
 required tor iuitillmg the said covenant, and to charge the ex- p e re q U j re q_ 
 
 penses of the same against the said Railway Company, by setting the cost to be a 
 
 off the^amount of such expenses against any monies then payable, charge against 
 
 or which shall thereafter become payable by the Secretary of tlie illt ® iest 
 
 State in Council for interest in manner herein-before mentioned, 
 
 which interest shall, in such case, to that extent, be considered 
 
 as paid and satisfied by such set-off or retainer : and shall, for 
 
 all the purposes of these presents, be regarded and considered 
 
 as interest actually paid by the Secretary of State in Council 
 
60 
 
 APPENDIX. 
 
 to meet same, 
 then the Com¬ 
 pany to be 
 liable other¬ 
 wise. 
 
 Annuity com¬ 
 mutation. 
 
 In case of sur¬ 
 render, pur- 
 
 If not sufficient to tlie said Railway Company in pursuance of their covenants in 
 that behalf, herein-before contained, and if such expenses shall 
 not be satisfied by such set-off and retainer as aforesaid, then 
 the Secretary of State in Council may set-off and deduct the 
 same against and from all or any part of any other monies which 
 shall on any account whatsoever, under or by virtue of these 
 presents, be or become payable by the Secretary of State in 
 Council to the said Railway Company. 
 
 25. That in every or any case in which, under the provisions of 
 these presents, the Secretary of State in Council shall, before the 
 expiration of the said term of 99 years, become bound to repay 
 the capital expended by the said Railway Company upon the said 
 line of railway and works as aforesaid, or to pay for the purchase 
 
 chase, or other- 0 f the said line of railway, works, and stock, it shall be lawful for 
 
 Government to J ^ ie Secretary of State in Council, instead of paying a gross 
 be at liberty to sum °f money in respect of the premises, to declare by notice 
 pay by anuuity to the said Railway Company in London their option to pay an 
 in place of a annuity, to be reckoned from the time when the gross amount 
 gioss mqney WO uld be payable, and to continue during the residue of the said 
 
 Annuit to be ^ erm ^9 years ; and in that case such an annuity shall be 
 paid half- payable in London on such two half-yearly days in the year as 
 yearly, and cal- shall be selected by the Secretary of State in Council in that 
 culated and behalf, with a fractional part for any broken half year, the rate 
 
 avlra^e^ate^of ^ n ^ eres ^ which shall be used in calculating such annuity being 
 aveia^e la e o q e £ enr q ne q py tlie average rate of interest during the preceding- 
 
 two years received in London upon public obligations of the 
 East India Company, and other public obligations in London, 
 j'h® t ^° P rece( l* by the Secretary of State in Council, and which shall be ascer¬ 
 tained by reference to the Governor and Deputy Governor of 
 the Bank of England for the time being : Provided always, that 
 the aforesaid option shall not apply to the undrawn portion (if 
 any) of the capital of the said Railway Company, raised for 
 the purposes of the said line of railway, which portion is to be 
 repaid to the said Railway Company, with interest, under the 
 provisions in that behalf herein-before contained, in case the said 
 Railway Company shall relinquish or be deprived of the said 
 railway and works as aforesaid. 
 
 26. That if after the said railway and works, including the 
 telegraphs, if required, shall have been completed and furnished 
 with adequate working stock, the whole of the capital raised 
 by the said Railway Company for the said line of railway shall 
 not have been required for the purpose of the said capital 
 
 repaid with account, the surplus therefore shall, to the extent to which the 
 interest, and to same shall have been paid into the Bank of England to the 
 be cancelled. account of the Secretary of State in Council, be refunded to the 
 said Railway Company in London, with such interest as shall 
 be due on such capital at the time, and thereupon the aforesaid 
 covenants for payment of interest shall no longer apply to the 
 capital which shall have been so refunded. 
 
 interest on In 
 dia securities 
 held in London 
 
 mg years 
 
 Same to be 
 determined by 
 Governor and 
 Deputy 
 Governor of 
 Bank of Eng¬ 
 land ; right not 
 to apply to 
 certain capital. 
 
 Return of 
 surplus. 
 
 Capital in ex¬ 
 cess of require¬ 
 ments to be 
 
APPENDIX. 
 
 * 
 
 *01 
 
 27. That any notice, direction, approval, or sanction to be Sanction of the 
 
 given or signified on the part of the Secretary of State in Council, Secretary of 
 for any of the purposes of these presents, shall be sufficient and < 
 
 binding, if signed by the Secretary of State for India, or one of 
 
 his Under Secretaries, or by the Secretary of Government at 
 , or by any other officer or servant duly authorised 
 to act on behalf of the Secretary of State in Council, in respect 
 to the matters to which the same shall relate, and the Secretary 
 of State in Council shall not in any case be bound in respect of Jading 
 matters aforesaid, unless by some writing signed in the manner W riting. 
 before mentioned. 
 
 28. That the said Railway Company shall keep an office of Railway office 
 
 the said Railway Company at all times hereafter during the said in andagent. 
 term, established at , or any such other place or places 
 
 as shall be agreed upon between the Secretary of State in 
 
 Council and the said Railway Company ; and the said R^fcray Agent to be the 
 
 Company shall keep at the said office an authorised agei^ or responsible 
 
 authorised agents, with whom the Secretary of State in Council °® cer of Com- 
 
 and the Government at may communicate on affairs pauy * 
 
 concerning the said railway ; and all drafts drawn by the said 
 
 agent or agents, and all receipts of and acts done by such agent 
 
 or agents on behalf of the said Railway Company, or concerning 
 
 the said railway and works, and the affairs thereof, shall be 
 
 binding on the said Railway Company; and every notice to be 
 
 given to the said Railway Company shall be sufficiently given 
 
 if left at the said office or personally served on such agent or 
 
 agents. 
 
 29. That the Secretary of State in Council shall promote the Legislation in 
 passing by the Governor-General of India in Council of any India. 
 
 Act or Acts which shal?*be necessary or convenient for enabling 
 
 the said Railway Company to fulfil in India the objects of their A 
 
 undertaking according to the terms and provisions of these 
 
 presents. 
 
 30. That none of the c ovena nts, terms, and provisions of 
 these said presents shall havo any operation upon the provisions 
 contained in the said indenture of the 
 
 , and that none of the covenants, terms, and pro¬ 
 visions of the said indenture shall have any operation upon the 
 provisions of these presents, or shall extend or apply to the 
 said railway and works hereby contracted for. In witness 
 whereof, &c. 
 
APPENDIX. 
 
 $ 
 
 INDUS STEAM FLOTILLA CONTRACT. 
 
 This Contract is made between the India Council and the 
 Directors of the Scinde Railwajr Company ; of which under¬ 
 taking, under the title of “ Indus Steam Flotilla,” it forms the 
 connecting means between the railway at Kotree by the Indus to 
 tlm Punjaub terminus at Moultan. 
 
 As the Conj^tot in all its essential points is the same as that 
 with the Railway Companies, “ Indus Steam Flotilla ” being 
 read instead of “ Railway,” it is proposed to limit the extracts 
 to Clauses 17 and 18, which do differ. 
 
 Application of 
 net receipts. 
 
 % 
 
 Repairs and 
 maintenance 
 to be paid out 
 net profits, 
 
 also other 
 
 allowed 
 
 charges. 
 
 Insurance and 
 Contingency 
 Fund to be 
 provided. 
 
 Ten per cent, 
 on capital cost 
 to be so re¬ 
 served. 
 
 Same to make 
 good unforeseen 
 damages to 
 flotilla.—Ap¬ 
 proval of Secre¬ 
 tary of Stcte 
 necessary. 
 
 I 
 
 “ 17. That as soon as the said steam-boats and other 
 yessels, or ;nv of them, shall begin to ply on the river Indus, 
 or the said works and conveniences shall begin to be used, and 
 thenceforth, during the said determinable term of ninety-nine 
 years, the net receipts which shall be realised during any half- 
 year or from the commencement up to the first of the aforesaid 
 half-yearly days, after deducting therefrom all sums which 
 shall have been expended m the repairs and maintenance of 
 such steam-boats and other vessels, and of the . dd works and 
 conveniences, or have been duly apportioned to the account of 
 the said Indus Steam Flotilla for the management and conduct 
 of the said Railway Company and its affairs, and which shall 
 have been allowed or sanctioned by the Secretary of State in 
 Council, shall be in the first place applied in or towards forming 
 two funds, to be called the Insiminue and Contingency Fund, 
 and the depreciation Fund, respectively in manner following, 
 that is to say, on each of the said half-yearly days in every 
 year there shall be reserved out of the net receipts of the half- 
 year ending with that day, and to be set apart to the credit of 
 the Insurance and Contingency Fund, a sum equal’to Ten pounds 
 per cent, of the capital expended on the said steam-boats and 
 other vessels as appearing by the capital account to be made up 
 and certified as aforesaid, and the monies so reserved and set 
 apart shall, from time to time, be applied under the sanction 
 and with the approval of the Secretary of Stale in Council in 
 making good all loss and damage to the said flotilla occasioned 
 by any casual or unforeseen events or emergencies, and subject 
 to the formation of such Insurance and Contingency Fund as 
 aforesaid. On each of the said half-yearly days in every year