ment of contracts, and as to whether or not the line should, on settled terms, become eventually the property of the State. These and such like stipulations demand serious consideration both from the government and railway companies.

We take it for granted, that no company would be rash enough to undertake a work of such magnitude, and at so great a distance, as a railroad in India, without such a guarantee from the government as would enable the directors to call up their capital without difficulty or hesitation on the part of the shareholders, the majority of whom, being in England, are necessarily but imperfectly acquainted with India and its resources; indeed, were the Directors of a company disposed to act otherwise, they would soon discover that the entire change which has taken place in the public mind regarding speculative enterprise, would render such attempt abortive, irrespective of the merits of the undertaking, and thus nullify the wishes and the hopes of the government and the people of India.

In considering the amount of the minimum rate of interest to be guaranteed on the expended, or paid-up capital of a company, some regard ought to be had to the prevailing rates in India, both as to government securities and private investments, as well as those ruling in this country. By recent accounts from Calcutta, the banks paid 6 per cent. on deposits for three months, and charged 10 per cent. on loans at

short date, although secured by deposit of government paper; and the bazaar rates ranged considerably higher. In England the capitalist can command at present 5 per cent. from railway companies in actual operation, and to this amount the opinions of bankers and merchants in the City, whom we have consulted, converge as the proper amount for a minimum guaranteed rate of interest for Indian railways. This would be merely a nominal guarantee, so far as government is concerned, if the lines be properly selected, as the statistical data show a goods traffic, to more than twice the amount; and if the principle of low charges, as laid down by Mr. J. Butler Williams, deduced from the practical working of English lines, be applied to India, the return would, we feel assured, be enormous.

*Should there be no limitation as to the exact amount of capital to be guaranteed, or no clause in the concession involving forfeiture to the state of part or whole of the capital actually expended, in the event of non-completion of the contract on the part of the railroad company, of course a smaller per centage would suffice even for the first project to be completed, the guarantee of the East India Company being equivalent to that of the Royal Government, and given with the sanction of the latter. Should the charter not be renewed in 1854 the territories of the Company lapse to the crown, subject to their debts and liabilities. (1846).

The Rajmahl Canal Committee prove, from the existing traffic of the country, that, "the total amount of tonnage daily passing through it (the canal) would not fall short of 3,000 tons."Report on the Rajmahl Canal, para. 47. (1846).

134 GENERAL MANAGEMENT AND TERMS OF CONCESSION.

But we would rather appeal to the wise and beneficent government of India, on other and more generous grounds, and take leave of this topic in the words of the Irish Commission, men alike distinguished for learning, ability and enlarged patriotism. "Thus, although a railway itself, as a mercantile speculation, might not, at once, fulfil the sanguine expectations of the projectors, it would be an invaluable source of general wealth and prosperity."

COST OF CONSTRUCTION, &c.

ACCORDING to the Report of the Railway Commission in India, the country generally presents from the evenness of its surface, remarkable facilities for the ample development of the new system of inter-communication; from this circumstance, and the abundance, and cheapness of labour and materials, the cost of construction will be much less than in our most favoured lines in England; and besides, the government having the power of taking at a small valuation the land necessary for public roads, there will be no refractory landowners to deal with, nor any protracted and expensive parliamentary contest, to fritter away the funds of the companies.* This arrangement, besides its economical

* The expenses of English railways may be divided into:Parliamentary-Land and compensation-Works-Permanent way-Engineering-Law charges-Land valuers-Stamps for debentures-Office expenses, &c. Applied to India, one-half of these items may be struck out. (1846).

effect, will have others of a highly beneficial nature; the natives would be generally impressed in favour of an undertaking thus sanctioned and supported by the government whose mandates they revere.

The two physical difficulties which have weighed most, with those acquainted with India, and which are peculiar to the country, are, we believe, now entirely set at rest: viz., the periodical inundations and ravages of the white ant.

As to the former their effects have been experienced and provided against; there can be no ground for apprehension on that head.

Regarding the destructive ravages of the white ant, the injury to be apprehended has been much exaggerated, we do not anticipate any bad effect from this insect, further than attacking temporary wooden sheds, or buildings; we have no recollection of the white ant making an impression on anything which was liable to motion, concussion or vibration. The insect protecting itself under a covered way of earthy matter, which it throws out as it advances, we imagine that the disturbing, tremulous motion given to the sleepers by the advance of a heavy train, would effectually deter its attack, or, if not, speedily dislodge the enemy by destroying his covered way; besides stone or Reynolds' cast iron sleepers might be used for sleepers instead of wood, or the latter might be fortified by means of one of those recent patent inventions, which have been