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2

Sub-Enclosure to Enclosure 2 in No. 1. The India Office to the Colonial Office. Sib,— India Office, S.W., 19th April, 1886. In reply to your letter dated the 13th instant, I am directed to transmit herewith, for transmission to the Agent-General of New Zealand, copy of the last Administration report of Indian railways, at pages 67 and 68 of which will be found the information sought by Sir F. D. Bell. The objections entertained by the Select Committee of the House of Commons on Indian railways in 1884 to the "payment from the annual Famine Insurance Fund of interest on capital expended on railways were not overlooked; but it has recently been decided by the Secretary of State for India in Council, at the request of the Government of India, that, as a special measure, a portion of this fund shall, for the next five years, be so utilized for railways actually needed for the protection of the country against famine, and undertaken by companies with the assistance of Government. I have, &c, The Under-Secretary of State, Colonial Office. E. Staffoed Howaed.

No. 2. The Agent-Geneeal to the Hon. the Colonial Teeasueee. Sic, — 7, Westminster Chambers, London, S.W., 20th May, 1886. I beg permission to mention a few leading points in the administrative report on Indian railways which I sent you on the 7th instant, No. 578. The total capital expenditure on Indian railways up to the 31st December, 1884, including lines under construction, amounted to £156,638,508, viz.: — East Indian lines ... ... ... ... ... ... £35,180,359 Guaranteed lines ... ... ... ... ... ... 66,377,780 Assisted companies' lines ... ... ... ... ... 5,566,277 State (Imperial and provincial) lines... ... ... ... 45,718,293 Native States' lines ... ... ... ... ... 3,795,799 £156,638,508 From the commencement of operations under the Indian system up to 1884 a gross sum of £64,393,736 had been advanced for interest to the guaranteed railway companies; but the total net earnings of the guaranteed railways, exclusive of surplus profits divided between the Government and the companies, amounted to £38,444,123, so that the net amount paid as interest by the State up to 1884 was £25,949,613. This sum w ras distributed among the companies in the following way :—

For many years the interest was more than the revenue. Between 1870 and 1876 this excess amounted to eight and a half millions ; then in the three succeeding years there was a surplus of two millions ; in the next two years a deficit of three-quarters of a million ; in the next two years a surplus of £300,000, and in 1884 a slight deficit of £36,000. The Eastern Indian Bailway and branches yielded as much as £7 13s. 7d. per cent., the guaranteed lines £4 16s. 9d. per cent., the State lines £3 17s. sd. per cent., and the native State lines £3 os. Bd. per cent. The net return over all the lines was £5 Is. 9d. per cent. I have, &c, The Hon. the Colonial Treasurer, Wellington. F. D. Bell. [Approximate Cost of Paper.— Preparation, nil; printing (1,350 copies), £1 10s.]

Authority: Geobge Didsbuby, Government Printer, Wellington.—lBB6.

Eailway Company. Total Interest. Balances of Net Eevenue. Net sum paid for Interest. 3ombay and Central India Eastern Bengal ndian Peninsula Madras )udh and Bohilkhand... :>ind, Punjab, and Delhi South Indian £ 8,272,726 2,956,171 23,839,165 11,550,648 3,833,091 10,811,298 3,130,637 £ 5,285,605 2,803,296 17,826,059 5,040,081 1,902,260 4,151,813 1,435,009 £ 2,987,121 152,875 6,013,106 6,510,567 1,930,831 6,659,485 1,695,628 Totals ... 64,393,736 38,444,123 25,949,613