ABSTRACT
RAILWAY operations were commenced in India under an arrangement, calculated to lead to extravagance, and not calculated to secure the comfort of passengers. Private companies working under a State guarantee of profits at 5 per cent. or 4 ½ per cent. on the outlay, were not likely to observe economy in the outlay, or to seek the convenience of travellers. If there was extravagance and waste in construction, the shareholders nevertheless got their guaranteed profit on all the money that was spent, wisely or unwisely. If traffic decreased and the earnings fell short of the guaranteed rate, the difference was made good from the revenues of India, i.e. from taxes paid by the people.
