PUBLIC PECORD OFFICE
། ༄། ༅། ། ཧཱུཾ། ཆེ
Reference -
HC.O.882/12
PUBLIC RECORD OFFICE, LONDON | ALLY WITHOUT PERMISSION OF THE BF REPRODUCED PHOTOGRAPHIC-
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this would be counterbalanced in the first year by pensions and gratuities totalling Rs.28,850. The calculations in Statement IV, however, as to the various stages of working, are based on the assumption that the full progranume under "scheme B" is put into effect. It is hoped that this may be done during the course of the current year as occasion permits.
6. It will be noted in connexion with these figures that the esti- mated cost of operation on a goods basis as given by Mr. Austen is approximately the same as the estimate of the Acting General Mana- ger quoted on page 128 of the Commissioners' report (Rs.1,168,534) but appreciably higher than the reduced figure arrived at by the Commissioners and given on page 133 (Rs.1,027,530). It is, of course, a matter of great difficulty to decide between the correctness of varying sets of figures for the operation of a technical service under conditions which are largely hypothetical. The Commissioners' figures are based on a number of detailed reductions in the establishment and other provisions considered necessary by the Acting General Manager as described in para- graphs 8 to 11 of their report, a process which I cannot help re- garding as a somewhat adventurous essay for gentlemen who are without experience of the actual operation of Railways and have only a very slight experience of local conditions. These figures are commented upon by the General Manager in paragraphs 6 to 11 of memorandum B. (It may be noted in passing that in the Com- missioners' figures the effect of the levy on salaries has been taken into account in reduction of expenditure whereas in the General Manager's figures it is accounted for under revenue.) On the other hand the figures provided by the General Manager are furnished by an officer who has actually carried out reductions in expenses which had hitherto been considered as impossible and had been steadfastly resisted by the previous Railway administration. I can only say that I place greater reliance on the estimates now furnished which have been framed by an officer who has in my opinion shewn a special aptitude for economical working, and I consider that, having so far justified his views by the very large reductions in expenditure actually effected, he should be given an opportunity of carrying his policy a stage further. If he proves mistaken, the further reduction of the Railway services to à goods basis will still be practicable, while, if the Railway were at once reduced to a goods line, reversion to passenger services after an interval would entail heavy expenditure.
7. The General Manager suggests that it is probable that the Commissioners may have been too much influenced by the costing figures to which they refer in appreciative terms on pages 128 and 130 of their report. While 1 agree that these figures may have been carefully compiled, I also agree entirely with the General Manager that in the case of so small a Railway, elaborate costing figures on a ton-mile basis, cannot afford a reliable basis for either
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rating or working estimates. Everything depends on the pro- portion of overhead charges allotted to goods and passenger services respectively but with so small an establishment there is a con- siderable minimum of charges which must in any case remain so long as the Railway is to operate at all, and it would seem that the smaller the Railway, the greater relatively is this minimum proportion. It is obvious that a certain minimum supervisory staff is necessary and that there is a minimum outlay on main- tenance of workshops, permanent way, bridges, signals, etc., which must be met. For this reason I consider that the costing figures previously kept have only a very slight value in this connexion and it will be noted that in preparing figures for goods working Mr. Tanner himself abandoned these figures as a basis and cal- culated on the actual expenditure which he thought necessary (Report page 129). Using this method, both he and Mr. Austen arrive at figures closely comparable, especially when it is re- membered that the latter's figures provide for the continuance for the time being of goods services on the Montagne Longue branch and Bois Cheri Light Railway for reasons given in the enclosed memorandum.
8. On the Revenue side it is plain that a revenue of Rs.1,292,000 from goods services only cannot be relied upon. The estimate for the current year is based on a good sugar crop and amounts (ex- clusive of passenger earnings) to Rs.1,240,000, but it is obvious that the goods revenue must always be subject to considerable fluctuation with the variations in the sugar crop from year to year Moreover, it is not correct to retain as the Commissioners appear to do on page 128 (b) the greater part of the revenue from parcels traffic. This is carried by passenger trains and with For these an infrequent goods service would practically disappear. reasons it appears to me that the estimate of average revenue from goods service given by Mr. Tanner as Rs.1,152,000 is likely to be nearer the mark, and it may be noted that this figure agrees closely with that given by Mr. Austen.
9. It appears to me, therefore, that if the minimum costs for operating the Railway on a goods basis are to be accepted as Tanner and amounting to the figures given by Messrs. Austen, figures which approximate closely to Rs.1,160,000 per annum, and if a passenger service in addition can be operated for a further Rs.420,000, the question of the re- tention of this service turns on whether the passenger revenue has now reached its minimum or will continue to decline, as the Commissioners anticipate, until it disappears. This is a difficult question to answer with any assurance, but the uncertainty regarding it is in my view an additional reason for proceeding gradually with the process of reduction, and not committing the Railway finally to the policy of operating for goods only until the position
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