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 RAILWAY POLICY IN INDIA
 
 RAILWAY POLJCr 
 
 IN 
 
 INDIA 
 
 BY 
 
 HORACE BELL, M.Inst.C.E. 
 
 CONSULTING ENGINEER FOR STATE RAILWAYS 
 TO THE GOVERNMENT OF INDIA 
 
 RIVINGTON, PERCIVAL AND CO. 
 
 AVNG STREET, CO VENT GARDEN 
 
 LONDON 
 
 1894 
 
 All rights reserved
 
 PREFACE 
 
 This work has, by permission, been based upon the 
 records of the Government of India, but is no way 
 whatever to be regarded as having any official authority. 
 It professes to give no more than an outline of the 
 policy pursued on Indian Railways, and the Author has 
 designedly abstained from criticism, and from the 
 assertion of his own views. It is hoped that it may be 
 of interest, if not of some use, to those connected with 
 Indian Railways, and perhaps to a wider circle of 
 readers. 
 
 H. B. 
 
 Calcutta," 
 January 1894.
 
 CONTENTS 
 
 CHAPTER I 
 
 PAGE 
 
 Historical Sketch ..... i 
 
 CHAPTER II 
 
 Guarantees and Assistance . . . -59 
 
 CHAPTER III 
 
 St.ate Construction and Administration . -91 
 
 CHAPTER IV 
 
 History of the Gauge on Indian Railways . .118 
 
 CHAPTER V 
 Rates and Fares . . . . .187 
 
 CHAPTER VI 
 Indian Railway Legislation . . . .226
 
 .JCY IN INDIA 
 
 .PTER VII 
 
 241 
 
 APPENDICES 
 
 Dimensions to be Observed on Rail- 
 in India ..... 256 
 
 fH^fA*/ Railway Act . . .286 
 
 1- OF Indian Railways, showing Lengths and 
 OTHER Statistical Figures, 1892 . . 350 
 
 ^i^DEX 
 
 353 
 
 MAPS AND PLANS 
 
 Map OF India, showing Railways Con- 
 structed AND IN course OF CONSTRUC- 
 TION ..... To face i 
 
 Standard Dimensions in Stations 5 ft. 6 in 
 Gauge .... 
 
 Standard Dimensions out of Stations 5 ft 
 6 IN. Gauge 
 
 Standard Dimensions in St.vtions Metres 
 Gauge .... 
 
 Standard Dimensions out of Stations Metre 
 Gauge .... 
 
 258 
 260 
 268 
 270
 
 CHAPTER I 
 
 HISTORICAL SKETCH 
 
 The earliest proposals for constructing railways in India were 
 put forward in 1843-44 by the promoters of a company, headed 
 by Sir Macdonald Stephenson. We were then on the eve, in 
 England, of the period known as that of the "railway mania " ; 
 the imagination of projectors drew railways penetrating into 
 every known land ; and while they expected that they should 
 be mainly financed in Lombard Street, they were still more 
 certain that they could only be carried out by English engi- 
 neers. It is not to be wondered at that India should have 
 received their early attention. Yet the condition of that 
 country at the time could have given little hope of success. 
 We had but recently conquered Sind, and with a new Governor- 
 General, Lord tiardinge, were rapidly drifting into the struggle 
 with Runjeet Singh, which was to end in an annexation of the 
 Punjab. Thus, apart from the comparative novelty of railways, 
 even in Europe, and in face of much more serious and urgent 
 matters, it would not have been surprising if the " Honourable 
 Board " in Leadenhall Street had regarded the proposals as 
 untimely or premature. This, however, does not appear to 
 have been the view taken at any time, either at home or in 
 India, and notwithstanding that much more weighty business 
 was in hand, the railway promoter found himself in favour, and 
 
 B
 
 2 RAILWAY POLICY IN INDIA 
 
 a desire shown to help rather than retard the progress of his 
 schemes. 
 
 Early in 1845, ^ formally drawn-up prospectus for a com- 
 pany was put before the Court of Directors of the East India 
 Company, which proposed to raise a capital of one million 
 sterling, for the construction of an "experimental" railway, 
 starting from Calcutta, and extending for 140 miles towards 
 Allahabad. The Company asked at the outset for a guarantee 
 on its outlay of 3 per cent ; but were willing, if this was con- 
 sidered objectionable, to be content with a bonus of ;!^3o,ooo 
 per annum, in order " to encourage the introduction of railways 
 into India," but with the proviso that this bonus should be 
 withdrawn when the net profits of the railway exceeded 3 per 
 cent on the capital of one million. Subsequently, however, it 
 was stipulated that a guarantee, or some equivalent pecuniary 
 assistance, must be held to be an indispensable condition of the 
 proposal. After many discussions, and much deliberation 01 
 this and other proposals, the Court of Directors addressed a 
 despatch on the subject to the Governor-General, on the 7th 
 May 1845 ; the beginning of a correspondence between the 
 Home and the Indian Governments, which is now as bulky as 
 it is interesting as a record of railway policy. 
 
 In England, or more properly in the United Kingdom, the 
 progress of railway enterprise has received, and indeed needed 
 but little more than guidance from the State and the Legislature. 
 It sprang with marvellous rapidity into popuk.rity and power. 
 There were no doubts as to its adaptability to the habits and 
 aims of the people, no serious difficulties at outset as to the 
 raising of capital, nor was there any marked indication of an 
 intention on the part of the Government to impose either legal 
 or technical conditions in the shape of control. In India the 
 position was widely different. The great Empire which we 
 now either govern or control, from the Himalayas to Cape 
 Comorin, was, in 1844, far from complete. We had yet to 
 include in our territory the Punjab, Burma, Nagpore, and
 
 HISTORICAL SKETCH 3 
 
 Oudh. The people had scarcely yet realised that they were to 
 become the subjects of one great and paramount Power, nor 
 had they then more than a faint conception of its strength, as 
 revealed in the Mutiny, or of the closeness of the bond now 
 made possible by roads and railways between distant provinces. 
 Moreover, the habits and condition of the people, except in the 
 vicinity of Calcutta or Bombay, were scarcely altered from what 
 we found them when we first came to the country. The 
 palankin or the house-boat were the recognised vehicles for 
 long journeys, whether for natives or Europeans ; the one 
 metalled and bridged road of any importance in the country 
 was the Grand Trunk Road from Calcutta towards Peshawur ; 
 and the only means of getting from or to England was by 
 sailing vessel round the Cape. But a still greater divergence 
 between the past and the present was to be found in the system 
 of triple Government, under which India then lay. At home it 
 had the East India Company and a Board of Control, both direct- 
 ing and disputing over and with the Government in India. 
 
 It may be readily supposed that under such conditions 
 opinions on proposals to initiate railways in India were 
 curiously varied, and that men of even well-recognised abilities 
 were led to base their views on what we now see were the 
 crudest assumptions, and to anticipate failure in nearly every 
 direction. It was thought then that railways in India might 
 possibly get a fair share of the goods traffic, but next to 
 nothing in the shape of passengers. It was imagined that the 
 climate of the country would be a most serious obstacle. There 
 was a fear of the disastrous effects of the periodical rains, of 
 violent winds, and a vertical sun. The damage that would be 
 caused by insects and by vermin to the banks and the timber 
 sleepers was dwelt on, as well as the effects of tropical vegeta- 
 tion ; while a more reasonable and valid objection was raised, 
 in the difficulty which would be experienced in finding com- 
 petent engineers and workmen for constructing and working 
 railroads in India.
 
 4 RAILWAY POLICY IX INDIA 
 
 But the most singular feature in the despatch above referred 
 to was the assumption that railways in India would have to 
 deal mainly with goods traffic. The argument was put as follows : 
 " According to the experience of this country (England), by far 
 the largest returns are procured from passengers, the least 
 from the traffic of goods. The condition of India is in this 
 respect the reverse of that of England. Instead of a dense 
 and wealthy population, the people of India are poor, and in 
 many parts thinly scattered over extensive tracts of country ; 
 but on the other hand, India abounds in valuable products, of 
 a nature which are in a great measure deprived of a profitable 
 market by want of a cheap and expeditious means of transport. 
 It may therefore be assumed that remuneration for railroads in 
 India must, for the present, be drawn chiefly from the convey- 
 ance of merchandise, and not from passengers." The ignorance 
 or inaccuracy displayed in this statement is very striking, more 
 especially if it is borne in mind that this first railway proposal 
 was to traverse one of the most densely populated territories in 
 the world, which, at a moderate computation, must then have 
 had a population on the average exceeding that of England 
 to the square mile. That India was and is poor, as compared 
 with England, was true enough, but it must even at that time, 
 half a century ago, have been sufficiently evident that a large 
 proportion of all classes were both able and willing to travel, 
 whether on business, or pleasure, or from religious motives. The 
 streams of pilgrims who then went across the* country on foot 
 may, hov/ever, have been thought likely to have scruples in 
 visiting their shrines by railway ; but if this idea existed, it has 
 been very amply refuted since then, and, as a fact, in the first 
 three years the receipts on Indian railways from passenger 
 traffic largely exceeded the receipts from goods traffic ; and to 
 the present day have continued to show the most extraordinary 
 development. 
 
 Shortly after sending this despatch to India, the Court of 
 Directors came to the conclusion that it would be advisable to
 
 HISTORICAL SKETCH 5 
 
 send out to India a railway engineer of experience, who should 
 be associated with two officers of the Indian Engineer Corps 
 " of tried and proved ability in that country," and who together, 
 after due inquiry, would suggest some scheme of moderate 
 length as a first experiment. 'Mr. Simms was the gentleman 
 who was sent out from England, and he arrived in India in 
 September 1845. The Directors of the East India Company 
 were not averse to this construction and administration of 
 railways in India by the agency of companies ; but, recognising 
 the haphazard way in which such schemes had been launched 
 in England, they wisely determined that in India the trunk 
 lines at least should be constructed on certain conditions which 
 would give the Government powers of control, and, if necessarj', 
 powers of purchase. They therefore suggested for considera- 
 tion that the detailed plans and estimates of any project, and 
 the constitution and terms of agreement of any proposed 
 company, should be submitted for examination and approval of 
 the Government, and that the books and accounts should at 
 all times be open to inspection by officers appointed for this 
 purpose. In this we may see the first germ of a policy, and 
 the commencement of a system of control, which has since 
 then been gradually elaborated, and has become the distin- 
 guishing feature of our Indian railway system. Mr. Simms 
 had not been many months in India before he drew up a 
 memorandum, dated 6th February 1846, in which he made the 
 following suggestions as to the terms which should be offered 
 to English capitalists. As to the assistance to be given by 
 Government, he proposed that a " lease " should be given to a 
 company affording it power to construct, maintain, and " hold " 
 certain lines for a term of years ; that land should be given by 
 Government free of cost for permanent works ; that no tax 
 should be imposed on the railway as it proceeds ; and that a 
 company should have complete control over its servants. On 
 the other hand, the company should make the necessary 
 surveys and plans and submit them for approval, should
 
 6 RAILWAY rOLICV IN INDIA 
 
 construct the lines in accordance with an approved specifica- 
 tion, and maintain all works in perfect repair, until the expiration 
 of the lease, when they should be handed over to Govern- 
 ment without payment. . No deviation from a sanctioned plan 
 was to be made without the further sanction of Government, 
 and the inspecting officer was to have power to condemn, stop, 
 or order the reconstruction of any work. If any company 
 failed in their engagements, the Government was to have power 
 to take the whole property into its hands, and do with it as 
 they thought fit. Further, he proposed that on the completion 
 of any line, every working regulation, rule, or bye-law, the tariff 
 of rates and fares for goods or passengers, the number of trains 
 per diem, and times of starting of same, should be approved ; 
 in short, every detail was to be submitted for the acceptance of 
 the Government, and no line was to be opened for traffic until all 
 proposed rules had been sanctioned. Moreover, every railway 
 was to carry mails, troops, and military stores at reduced rates. 
 The failure to run one train a day from end to end of a line 
 was to be held to be evidence that the railway had " ceased to 
 be employed as such." All Indian railways were to be con- 
 structed on one specification, worked on one system, and 
 supplied with stock of one uniform pattern ; while every 
 company was to keep its accounts in approved forms, and the 
 Government to have power to call for any returns, financial or 
 statistical, that might be thought necessary. 
 
 Many of these stipulations showed a wisdom and sound 
 judgment which was probably the outcome of discussions with 
 leading men in India, and most of them, with certain modifica- 
 tions, became the basis of the terms on which railways have 
 since been made by companies. As if aware, however, that 
 these proposals were somewhat one-sided, and unlikely to 
 attract cajjital, Mr. Simms suggested that the Government 
 might, in addition, " think it advisable " to guarantee a small 
 percentage upon the actual cost of the works, which guarantee 
 should not operate until the railway was opened for traffic, and
 
 HISTORICAL SKETCH 7 
 
 should cease if a line was not worked regularly or satisfactorily. 
 In the same month as saw the issue of this memorandum, the 
 Report of a Committee of Engineers on the practicability of 
 introducing railways into India was submitted to the Govern- 
 ment, and both communications were dealt with together. The 
 Report stated at the outset that " railroads are not inapplicable 
 to the pecuharities and circumstances of India ; but on the con- 
 trary, are not only a great desideratum, but with proper attention 
 can be constructed and maintained as perfectly as in any part 
 of Europe." The Report then went on to deal with the assumed 
 difficulties mentioned above, and which had been referred to 
 by the Directors of the East India Company in their despatch 
 of May 1845. The Committee, while admitting that in some 
 measure they were valid, did not consider them insuperable, or 
 such as to prevent the immediate prosecution of railways in 
 India. The Report then went on to recommend the construc- 
 tion in the first instance of a line from Calcutta towards Delhi. 
 In dealing with this Report, and with the suggestions made 
 by Mr. Simms, the Government of India, then under Lord 
 Hardinge, considered that the proposal to give land free of 
 cost was right and proper, and this concession, which was sub- 
 sequently adopted, has been a regular and leading feature in 
 all railway concessions up to the present day. As regards the 
 power of becoming eventually the proprietor of railways in India, 
 the Government considered that the option of so doing should 
 be reserved on 'certain conditions, at the expiration of a certain 
 period, or of entering into new arrangements with a company. 
 This also became a leading feature in all subsequent contracts. 
 The grant of a guarantee of interest v/as considered impolitic. 
 It was urged that " any such guarantee would no doubt prove 
 a great encouragement to the projectors of railways in India " ; 
 but that " it might encourage persons to embark in speculations 
 based on no reasonable calculation of ultimate profit." It was 
 added significantly, and with no apparent conception of the 
 enormous indirect advantages which railways would confer on
 
 8 RAILWAY POLICY IX INDIA 
 
 the country, that "it is not the wish, orthe interest of Govern- 
 ment to encourage any project of this nature, which does not 
 hold out a fair prospect of moderate profit, without being 
 dependent on the Government for its dividends." It was con- 
 sidered that if the Government gave land free of cost it would 
 be sufficient evidence of the active part it proposed to take 
 in promoting such schemes. Yet, though so little disposed 
 to give substantial encouragement to railway enterprise, the 
 Government of India was keenly alive to the importance of 
 reserving the right of control over both the construction and 
 management of railways, and even argued that the concession 
 of free land put a railway company under such great obliga- 
 tions that the Government in return should have the most 
 complete and detailed control over their administration. 
 
 These views of the Government of India were sent home to 
 the Court of Directors of the East India Company on the 9th 
 May 1846, and later on, in July, the Governor-General wrote a 
 brief minute on the subject, in which he stated, that in his 
 opinion more substantial aid than had been approved by his 
 colleagues was needed, if companies were to be encouraged to 
 make railways in India. He thought that the gift of land, 
 which might be put at the value of ;^2oo a mile, was incom- 
 mensurate with the advantages to be derived from railway 
 communication and with the cost of such works, and laid 
 stress on the great military advantages which railways would 
 afford, in addition to their more obvious benefit!?, commercially 
 and socially. He concluded by recommending a grant of one 
 million sterling, or an annual contribution of five lakhs of 
 rupees (then worth ^50,000) to a railway completed between 
 Calcutta and Delhi. In October of the same year the Court 
 of Directors issued a report on the whole question, together 
 with a long list of lines which had been submitted to them by 
 promoters. They agreed that tlie first line should be made 
 from Calcutta to Delhi, and by the agency of a joint stock 
 company ; but the terms on which the line should be carried
 
 HISTORICAL SKETCH 9 
 
 through were not arrived at without lengthy discussion between 
 the projectors, the Court, and the Board of Control. The 
 views of the latter have been described as " narrow and obstruc- 
 tive " as compared with the " liberal and practical " views of 
 the East India Company. The Court dissented from the 
 Government of India on the subject of a guarantee, which they 
 held to be essential to the formation of the company, and recom- 
 mended 4 per cent on all sums paid into the Treasury — up 
 to a certain figure representing a cost per mile of ^15,000, 
 under the following conditions, viz. That the Court of Directors 
 should be the sole judges regarding the expediency of granting 
 a guarantee on sums required for extensions ; that all profits 
 should be divided between the Government and the railway 
 company ; and that a deposit of one million sterling should be 
 paid in before the guaranteed interest should commence. 
 These proposals were not at first agreed to unanimously, but 
 in the end the view of the majority was adopted, and submitted 
 to the Commissioners for India. 
 
 On the 19th December 1846 the Board of Control com- 
 municated its views to the Court of Directors. They accepted 
 the proposal for constructing railways by means of companies, 
 modified the terms for ultimate purchase, and objected strongly 
 and entirely to the idea of a guarantee, or at least until the 
 Directors of the East India Company were fully satisfied that 
 the money could not be raised without it, and then only for a 
 period of fifteen years. These terms were not acceptable to 
 the promoters ; but the Board of Control would not yield, and 
 a long period of delay intervened, during which the Chambers 
 of Commerce of Manchester and Glasgow represented the need 
 for encouraging the carrying out of railways in India, urging 
 that a guarantee of a minimum rate of interest should be 
 granted in the same way as had been given to companies for 
 the construction of railways " in various colonies of the 
 Empire." After further discussion, and a further representa- 
 tion, in June 1847, from the Court of Directors, the Board
 
 lo RAILWAY POLICY IN INDIA 
 
 of Control reluctantly consented, in view of the then condition 
 of the money market, to raising the rate of guaranteed interest 
 from 4 to 5 per cent and for a period of twenty-five years, and on 
 this basis the projectors of the East Indian Railway Company 
 agreed to make arrangements for carrying out the project. 
 
 Further discussions followed, however, upon proposals made 
 for constructing railways elsewhere in India ; and on a project for 
 one in the Bombay Presidency, the terms offered by the Court of 
 Directors were submitted by the promoters to Robert Stephenson 
 and others to report on. They advised that the proposals were 
 inadmissible, and that the directors of railway companies should 
 not accept them. They said, on reviewing the terms, "that 
 the practical effect would be that the Government will choose 
 the line, combat the details of its construction and mode of 
 working, fix the period for its completion, draw up its regula- 
 tions, limit its rates of charge and its profits, reserve to itself 
 the power of producing very serious delays, and finally with- 
 drawing its guarantee, confiscate the works to its own use and 
 profit." This resulted in further correspondence, until the 
 subject was taken up by Air. James Wilson, then Secretary to 
 the Board of Control, and on the 19th March 1849, a despatch 
 was sent to the Court of Directors which ultimately resulted in 
 a grant of an absolute 5 per cent guarantee, without limit of 
 period, and legal agreements were shortly drawn up and finally 
 signed on the 17th August 1849. The terms and conditions 
 will be referred to in a following chapter. Towards the end 
 of the year a despatch ^ was sent out to India informing the 
 Government that a company had been formed for constructing 
 an experimental line in Bengal, with a capital of one million 
 sterling. It was considered advisable to make the starting- 
 point Calcutta, to carry the line in the direction of Mirzapore 
 or Rajmahal, and to make the railway on the English narrow 
 gauge of 4 feet Sh inches as a double line. 
 
 Lord Dalhousie had by this time become Governor-General. 
 
 ' Despatch from Court of Directors, dated 14th November 1849.
 
 HISTORICAL SKETCH ii 
 
 He had had useful experience at home in deahng with Enghsh 
 raihvays, and was not prepared to accept the views of the 
 Directors without criticism. In July 1850, dating from Chini 
 in the Himalayas, he wrote a minute on the subject, which is 
 well worthy of his reputation as a statesman, and shows the 
 keen interest he had in the success of Indian railways. He 
 objected to the proposed alignment, recommended that the 
 railway should be taken through Burdwan to or towards the coal- 
 fields (as has since been done), that the line should be made 
 single instead of double, and that a broader gauge than 4 feet 
 8| inches should be adopted. He was most anxious that this 
 so-called "experimental" line should prove a success. He 
 said that its object " is to prove, not only that it is practicable 
 to construct railways in India as engineering works, but that 
 such railways when constructed will, as commercial under- 
 takings, offer a fair remunerative return on the money which 
 has been expended on their construction, so that the public 
 may thereby be encouraged to invest their capital in the con- 
 struction of similar works in other parts of India. Such being 
 the object of the present experiment, I am forced to the con- 
 clusion, after a laborious and anxious consideration of the 
 documents before me, that if the instructions with which the 
 Government has been furnished are to be strictly adhered to, 
 if the conditions attached to the construction of the present 
 line are not in any respect to be relaxed, there is little hope 
 that the GoverWent will be able to conduct this experiment 
 to a successful issue on any one of the lines that have been 
 indicated." He urged that there was more risk of the ulti- 
 mate failure of railway enterprise in India from the discourage- 
 ment which would arise from this experimental line turning 
 out to be unprofitable, on account of the superfluous expendi- 
 ture required for a double line, than from any accidents which 
 could possibly be caused by its being made a single line. He 
 had grave doubts, as indeed had every one at that time, as to 
 whether railways could be made to pay in India, and on this
 
 12 RAILWAY rOLICY IN INDIA 
 
 point said ^ : " After reading everything that I have seen written 
 on the subject, and conversing, since I have been in India, with 
 everybody who was able to give an opinion worth having on 
 the question of raihvays in India, I have come to the conclu- 
 sion that no one can safely say whether railways in this ^ountry 
 will pay or not. ... It remains to be seen whether, as has 
 often been the case in Europe, a passenger traffic which did 
 not previously exist will be created by the formation of a rail- 
 way. It remains to be seen whether the goods now conveyed 
 on hackeries along the Trunk Road will be transferred to the 
 railway." 
 
 The concluding sentences of Lord Dalhousie's minute are 
 worth quoting in full : — - 
 
 43. I have entered on the questions connected with the com- 
 mencement of the experimental railway in Bengal at some length 
 because, although it is but a small beginning, and a doubtful one 
 as yet, I nevertheless entertain a hope that in the years to come 
 this great instrument of improvement may be extended over all 
 the land, bringing with it the rich and numerous benefits it is 
 calculated to produce. Looking far before us to this possibility, 
 I am anxious that the Government of India should early take 
 warning from the errors which we have all committed at home 
 in legislating for the regulation of railway works, and that so it 
 should profit by the experience which others have dearly bought. 
 
 44. I heartily trust that the East India Company and the 
 Government of India may hold by the principle, on which they 
 have acted in the present case. I trust they will ever avoid the 
 error of viewing railways merely as private undertakings, and will 
 regard them as national works, over which the Government may 
 justly exercise, and is called upon to exercise, a stringent and 
 salutary control. This control should not be an arbitrary right 
 of interference, but a regulated authority, defined and declared 
 by law, which is not to be needlessly or vcxatiously exacted, but 
 which in my humljle judgment is necessary at once for the 
 interests of the State and for the protection of the public. 
 
 ^ Lord Dalhousie's Minuie of 20th April 1853.
 
 HISTORICAL SKETCH 13 
 
 A further development of our Indian railway policy is to be 
 found in another minute by the same hand, written in 1853, 
 which, while dealing with the general question, sketched the 
 direction to be taken by the trunk lines. The minute is 
 marked by great ability and breadth of view, and has been 
 rightly regarded as a very important State paper. He believed 
 that if the lines were judiciously selected they would be largely 
 used by the natives, and that they would in the end be so far re- 
 munerative as to relieve the State of the onus of the guarantee. 
 Should it prove otherwise, he held that a payment of a part of it 
 might be " cheerfully borne " in view of the indirect advantages 
 to be derived from railway communication. On the important 
 question as to the agency by which they should be con- 
 structed. Lord Dalhousie held that it was advisable that rail- 
 ways in India should be made by joint-stock companies, under 
 the control and supervision of the Government. He recog- 
 nised that from time to time difficulties and friction might 
 arise on this score, but that this should not be regarded as 
 sufficient reason for condemning this system. On the 17th 
 August 1853, the Court of Directors replied to this minute, 
 and a large scheme of railways was forthwith approved, and 
 surveys ordered. In assenting to the proposal to make over 
 Indian railways to companies, they laid stress on the great 
 need, in view of the guarantee, of strict supervision and 
 economy in the construction of the works. The difficulties 
 above referred*to, which were anticipated as the consequence 
 of a system of guarantee, were soon realised, and were felt, as 
 was to be expected, more keenly in India than at home. The 
 powers of supervision were delegated to military engineer 
 officers, whose knowledge of construction, on railways especi- 
 ally, was necessarily limited, and who were not always endowed 
 with the tact and judgment needed for dealing with the 
 questions which arose between them and the companies' 
 officers. The engineers of the companies originated everything, 
 while the Government's engineers were the critics, having the
 
 14 RAILWAY POLICY IX INDIA 
 
 responsibility of dealing with the details of projects of which they 
 knew little, and being forced to conceal their ignorance by 
 asking for further information or explanation. There was con- 
 sequently a ceaseless cry of obstruction and delay. Both sides 
 felt themselves unfairly dealt with, and in the end it became 
 necessary to bring the matter before a Committee of the House 
 of Commons (in 1857-58). This afforded an opportunity to 
 both sides for airing their grievances. In concluding their 
 report the Committee observed : " By a judicious adherence 
 to the spirit rather than the letter of the contract, your Com- 
 mittee feel assured that arrangements may be simplified, united 
 action for one common object secured, and railway enterprise 
 in India may before long assume proportions commensurate 
 with the vast commercial, agricultural, and mineral resources of 
 that country." 
 
 The result of this inquiry was that matters went more 
 smoothly ; the position was accepted as one that had to be 
 worked, and a desire was shown to compromise difficulties, 
 instead of fighting over them ; indeed since then there has been a 
 marked improvement in the relations between the railway and 
 the Government engineers. Under this system of guarantee 
 and control, the great trunk lines of India have been con- 
 structed — the East Indian, the Great Indian Peninsula, the 
 Madras, the Bombay, Baroda, and Central India, the Sind, 
 Punjab, and Delhi, and the Eastern Bengal Railways, all on the 
 standard gauge of 5^ feet. This very important 'gauge question 
 will be referred to in a later chapter dealing with its whole 
 history and development. The system of construction by 
 companies under guarantee was not adopted without an 
 attempt on the part of the Government of Madras to induce 
 the Home Government to allow an experiment to be made in 
 that province of direct construction by the State. This was 
 not acceded to by the Board of Control, which in replying to 
 Madras, in 1852, urged that it was of great importance to 
 attract British capital, skill, and enterprise to such undertakings
 
 HISTORICAL SKETCH 15 
 
 in India, and that with this view, moreover, the system of 
 contract was " the more eUgible and conducive " to this end. 
 They further felt doubts " whether an equally effective control 
 over the expenses of such works could be maintained in India, 
 under general instructions from the home authorities, as that 
 which is now exercised through the Railway Boards meeting in 
 London, under the constant and immediate supervision of 
 the Court." This view was accepted by the Government of 
 Madras, and the guaranteed company became until 1869 the 
 recognised system for railway construction throughout India. 
 
 The provisions in the contracts for the ultimate acquisition 
 of the lines by the State, were at the outset considered of much 
 importance, although, as time went on, the desire to enforce 
 these powers grew weaker. But in a memorandum written at 
 the end of 1845 for the Madras Government by Mr. F. G. 
 Simms, the Consulting Engineer to the Government of India, 
 he said that the cost and construction " should not be left to 
 the opinions of any engineers who may chance to be employed 
 by the railway companies, as they are too frequently induced 
 to adopt inexpensive expedients, wise or unwise, to overcome 
 pecuniary or other difficulties which for the time may answer 
 the purposes of the promoters of the work ; because I look 
 upon the railways of India as one vast scheme of the highest 
 importance to the future welfare of this great Empire, and 
 although they will be at first constructed and maintained by 
 private comparfies, yet after a lapse of years will fall into the 
 hands of Government, and become public property." 
 
 By the end of 1855 the system of railways projected by 
 Lord Dalhousie was being actively carried out ; but the out- 
 break of the Mutiny in 1857 threw everything into confusion, 
 and not only was the progress of railway construction seriously 
 impeded, but questions of railway policy, judging by the meagre 
 record, were relegated for consideration to quieter times. The 
 trouble of the Mutiny brought out, however, one salient ad- 
 vantage of the guarantee system, in so far that funds for the
 
 i6 RAILWAY rOLICY IN INDIA 
 
 prosecution of the works were always forthcoming; whereas 
 had they been purely State works, carried out by State funds, 
 the exigencies of the time would certainly have resulted in the 
 allotments for the railways being absorbed for more urgent 
 necessities. The companies' engineers did excellent service at 
 this time. When the tide of war passed over their districts, 
 they shouldered their rifles, entrenched positions, and served 
 as volunteer troopers ; and when it had passed away, their 
 proper work was calmly resumed. The pluck and skill shown 
 in the defence of a house at Arrah by Vicars Boyle, with a 
 handful of Sikh soldiers, gave a salutary and notable example 
 to others at that time. 
 
 There w'ould seem to have been no tendency towards any 
 change in railway policy, or any defined doubt as to the continu- 
 ance of the system of guarantee, until the year 1863-64, when 
 various projects were before the Government for the construc- 
 tion of railways by companies with assistance in some form or 
 other, and it became necessary to formulate the conditions and 
 limits of such assistance. The most prominent of the proposals 
 were those put forward by the Indian Branch Railway Company 
 for the construction of lines in Oudh and Rahilkund on the 
 basis of a subsidy of 1000 rupees per mile per annum for 
 twenty years, for each mile open, with an additional allowance 
 for each large bridge, land being given free to the company for 
 a term of ninety-nine years. IMails were to be carried free, and 
 reduced fares allowed to officers and soldieis, and for the 
 carriage of public stores. The works were commenced on this 
 basis in 1863-64, but prior to the execution of a formal contract 
 between the Company and the Secretary of State. Towards 
 the end of 1864 representations were made to the Governnaent, 
 that unless more favourable terms were conceded than those 
 proposed in the original negotiations, it would not be possible 
 to raise money for the completion of the entire system, and 
 later on, a demand was made for a guarantee of 5 per cent on 
 a certain portion of the capital. In replying to this in
 
 HISTORICAL SKETCH 17 
 
 December 1S65, the Secretary of State, then Sir Charles Wood, 
 dechned to do more than advance a small sum necessary to 
 complete one of the lines, on which advance interest at 5 per 
 cent was to be charged. If this was not accepted, he was 
 willing to take over the works as they stood, " at the present 
 market value of the shares." To this the Directors responded 
 by proposing to raise the amount required on debentures, but 
 eventually requested the renewal of the offer of the loan, which 
 in March 1866 was agreed to. Up to this period the Company 
 had only succeeded in raising ^200,000 out of a proposed 
 capital of two millions, and before two months had elapsed the 
 Company was again in difficulties, owing to the failure of a 
 bank. Further help was asked for, which, however, was 
 distinctly declined. 
 
 In the meanwhile negotiations had been carried on with the 
 Great Indian Peninsula Railway Company for extensions of their 
 system, on somewhat similar conditions to those granted to the 
 Indian Branch Railway Company, with the similar feature of the 
 grant of a lump sum subsidy for a term of years. The negotia- 
 tions were complicated by the fact that one of the proposed lines 
 was to run through a native state, from which it was hoped that 
 further assistance would be derived. Proposals of the same 
 nature were also made by the Bombay and Baroda Company. 
 But the same difficulties arose in each case. Money for any 
 railway in India was in fact not then obtainable in London 
 without some form of Government guarantee, and in the end 
 the Secretary of State had to give way. He sent to the Govern- 
 ment of India a draft of a fresh contract proposed to be made 
 with the Indian Branch Railway Company, and admitted that 
 the idea of obtaining capital for Indian railways without guar- 
 antee was practically abandoned. The guarantee proposed 
 was 5 per cent on a capital of four millions, and the profits of 
 the line above this figure to be equally shared with the 
 Company. The reply to this, on the part of the Government 
 of India, was made at the end of 1867, and the important 
 
 c
 
 i8 RAILWAY rOLICV IX INDIA 
 
 despatch in which it was conveyed was accompanied by 
 minutes by the Governor-General Sir John (afterwards Lord) 
 Lawrence, and the Members of his Council. A long and 
 able note by Captain (now General Sir) E. C. S. Williams, 
 K.C.LE., R.E., was also sent with the despatch, in which the 
 system of guarantee was reviewed, the principles exhibited on 
 which aid had been afforded to railways in other countries, with 
 an outline for a new system, and a sketch of a proposal for the 
 construction of railways by the State itself. One point in the 
 despatch is of peculiar interest, it being stated, among the 
 matters of chief importance was that of making arrangements 
 for the ultimate transfer to the Government of India of the 
 whole of the Indian railways constructed by English capital, 
 "with the view to the prevention of a too great investment 
 of such capital in India." 
 
 The proposals of the Government of India may be said to 
 have been contained in the Governor-General's minute above 
 referred to, the principal of which were briefly as follows. That 
 no company should be allowed very large development of its 
 operations, on the ground that this might be inconvenient, or 
 even dangerous, to the Government, and at the same time 
 "proportionately inefficient." That a fixed limit should be 
 placed to expenditure on guaranteed interest, and that the 
 Government should fix an average rate of mileage cost, 
 and on no account guarantee interest on any sum beyond 
 this rate. That the companies and their« servants should 
 be regarded as the agents of the Government for the pur- 
 pose of constructing railways, and that the Government be 
 empowered to dismiss or suspend all railway servants at its 
 discretion ; that land should only be granted for 99 years 
 instead of 999 as proposed in the new contract with the Oudh 
 Company (formerly Indian Branch Railway Company), and the 
 " right of entry " after that period be absolutely secured to 
 Government ; and that Government should for political reasons 
 by degrees obtain possession of all the railways. The reply of
 
 HISTORICAL SKETCH 19 
 
 the Secretary of State for India, then Sir Stafford Northcote, to 
 these proposals are contained in three despatches, dated in 
 January and August 1868. In the two first, the Secretary of 
 State considered that it would be desirable to distinguish, as 
 clearly as possible, between commercial and political lines ; 
 that the former should be such as would " open up districts 
 whose natural resources are at once the largest, and the least 
 developed," while competing lines should not be promoted, 
 but care taken to scrutinise the grounds upon which any 
 line is said to be in competition with another. As to 
 such lines, he held that they should be constructed by com- 
 panies, and under a system of guarantee, adding, however, that 
 this system tended to weaken the ordinary motives to efficient 
 management and superintendence, and he invited suggestions 
 for additional precautions on this score. With regard to the 
 political lines, he was " inclined to think that direct Govern- 
 ment action might be preferable, as the guarantee system did 
 not appear to be one admitting of indefinite extension, and 
 that if a line had to be made on which there was a prospect of 
 commercial loss it would be best that the Government itself 
 should make it, so as "not to weigh down the market for 
 railway securities by the introduction of a stock which is never 
 likely to rise to a premium." 
 
 An important point made in the despatch from which 
 quotation has been made, was that it was desirable, as regards 
 the progress of "future railway extension, to fix a limit to the 
 sum that should be regarded as the annual charge to be borne 
 on railway account, and thus " establish a system under which, 
 in proportion as the revenues of India were relieved of the 
 charge on account of the older lines, by their becoming self- 
 supporting, new ones might be taken up in their place." The 
 despatch of the 24th November 1868, to the Government of 
 India, dealt with the views of Lord Lawrence as referred to 
 above, expressed decided objections to the policy there sketched 
 out, and made no further reference to the question of the
 
 20 RAIL^VAV POLICY IN INDIA 
 
 construction of railways by the direct agency of the State. 
 In March 1869, however, the Government of India, still under 
 Lord Lawrence, took up this matter in earnest, and submitted 
 with it a long and most able minute by the Governor-General, 
 the ultimate effect of which was to completely revolutionise 
 railway policy in India. Up till then the construction of 
 railways by companies, under a guarantee, or some equally 
 effective assistance, had been held by both the Secretary of 
 State and the Indian Government to be, if not the most 
 economical, the only possible way of carrying out and adminis- 
 trating these works. The strong common -sense of Lord 
 Lawrence, his intimate knowledge of the countrj- and its 
 people, and a just appreciation of the value of the large body 
 of engineers who were then carrying out public works under 
 the Government, enabled him to make out an unassailable case 
 against this, and to banish for many a year a system which at 
 the time seemed likely to press very severely on the revenues 
 of the Empire. 
 
 It is difficult, within the limits of this sketch, to do justice 
 to Lord Lawrence's minute. It is, in fact, a careful and well- 
 reasoned essay, in which the comparative adv'antages of the 
 guarantee system, and direct construction by the State, are 
 drawn with firm lines, and the conclusion is arrived at that 
 " for the future railways should, as far as is consistent with 
 actual and implied engagements with the existing companies, 
 be carried out by the Government itself." Dealing with the 
 character of the control which should be exercised by the 
 Secretary of State over railway matters in India, he referred to 
 the difficulties which must arise, and had probably already 
 developed, owing to the undue influence of the India Office. 
 He said — 
 
 I am fully impressed with the propriety, and even the necessity, 
 of placing in the hands of the Secretary of State for India, the 
 most complete control over the administration of India in all its 
 branches, and I hope that nothing I am now saying will be
 
 HISTORICAL SKETCH 21 
 
 considered as implying a desire to weaken that control. But the 
 power exercised in England over affairs actually conducted in 
 India, should surely be essentially one of control, and the initia- 
 tion and practical direction of measures should as far as possible 
 remain in the hands of the Indian Government. I cannot think 
 that it is conducive to good administration to remove from the 
 cognisance of the local authorities — for the purpose of placing it in 
 the hands of the Secretary of State — the principal management of 
 transactions which already involve an outlay of 100 millions 
 sterling, and must probably extend to double that sum, and which 
 are entirely carried out in India, and at the charge of the Indian 
 revenues. I must ask permission to state my opinion in plain 
 language on this very important point, to the effect that the true 
 interests of India demand that the Secretary of State's direct 
 action in relation to Indian railways should be exercised only so 
 far as is essential for the prompt despatch of that part of the 
 business connected with them, which is necessarily carried out in 
 England ; and that beyond this, his intervention should as a rule 
 be limited to the control of the Indian authorities, on whom 
 should be placed the same complete responsibility for railway 
 management, both in respect to administration and finance, as is 
 placed on them in all other branches of public b;isiness. I feel in 
 the strongest manner that real success in the economical and 
 efficient management and extension of railways in India can only 
 be attained by the frank adoption of this policy. 
 
 The minute contained a careful review of the probable 
 financial position of Indian railways, and an estimate of the 
 amount, which was placed at two millions, that the revenues 
 could bear as an annual charge on their account, to meet 
 charges ,for guaranteed interest, land, loss by exchange, and 
 Government supervision. An estimate of the probable future 
 earnings of the existing lines, and of the new lines to be made, 
 seemed to show that the country might afford to invest 3f 
 millions yearly in the prosecution of railway extension, and at 
 the end of twenty years the yearly charge on the revenues 
 would be reduced to about one million. In estimating the net
 
 22 RAILWAY POLICY IN INDIA 
 
 charge for interest on new lines it was, however, assumed that 
 the rate of interest would be 5 per cent — a figure which was 
 largely reduced as time went on, and has now become nearer 
 3I per cent. The gross average earnings of all Indian railways 
 was estimated to reach ;£^o ^ per mile per week after twenty 
 years, or in 1889, and although the circumstances have 
 materially altered since this estimate was made, and many 
 hundreds or thousands of miles of military and famine Ifiies 
 have been carried out, which were not then contemplated, the 
 actual figure has, as it happens, closely approximated to this, 
 having been during 1891-92 about Rs.286 per mile per week. 
 After sketching out a programme for future railway extension, 
 following in a great measure the lines of Lord Dalhousie's 
 minute of 1853, Lord Lawrence concluded his minute in the 
 following terms : " Skill in engineering work implies the 
 successful adaptation of the art of construction to varying 
 circumstances. For a poor country, economy is one of the 
 essential conditions to be complied with, and its requirements 
 may be as rigid as any of those imposed by physical conditions. 
 Wholly to reject railways for a country which is not able to 
 support lines of the most costly description is quite unreason- 
 able ; and if, on a further examination in detail of the probable 
 cost and returns of any of the lines, which otherwise seem 
 desirable, the expense of lines of the ordinary gauge seems 
 prohibitory, while lines of a narrow gauge would be financially 
 practicable. I should consider it a most mistaken view to 
 reject the narrow gauge line. And so with any other modifica- 
 tion of ordinary practice. For complete success in the great 
 operations which the Government of India has before it, broad 
 views, and a ready adoption of all truly sound measures, 
 whether out of the usual course or not, are essential, and it 
 will be a source of lasting regret if the progress of this 
 country, which of all others depends on the improvement 
 of its means of internal communication, should be retarded 
 ' Then Rs.300.
 
 HISTORICAL SKETCH 23 
 
 by the weight of administrative prescription or engineering 
 prejudice." 
 
 In replying to the Government of India in July 1869/ the 
 Secretary of State (then the Duke of Argyll) accepted their 
 views. He said that whatever may have been the reasons 
 which had led to the introduction of the guaranteed system in 
 India, the time had now evidently arrived when " both in 
 raising and in expending such additional capital as may be 
 required for new lines in India, the Government should secure 
 for itself the full benefit of the credit which it lends, and of the 
 cheaper agencies which ought to be at its command." Surveys 
 were ordered to be made forthwith, and in concluding his 
 despatch the Duke of Argyll informed the Government of 
 India that, regarded as a whole, the arrangements proposed in 
 the three despatches under acknowledgment appeared to him 
 to be " well adapted for providing in India gradually, regularly, 
 and with all advisable rapidity, a fairly complete national system 
 of railway communication." The question of the gauge upon 
 which the new lines were to be constructed was reopened in 
 a despatch from the Government of India, No. 51, of the 
 17th May 1870. They admitted the evils of a break of gauge 
 in a country in which a railway system was approaching 
 completion, but regarding Indian railways as being as yet in 
 their infancy, and that a narrower gauge than the 5 feet 6 inch 
 gauge, then, in force for the main trunk lines, would better 
 accord with the financial and economic condition of the 
 country, they urged that what India now wanted was an 
 extensive scheme of light lines, on which the traffic should be 
 worked at low speeds, and proposed for a large part of the 
 railway extension now contemplated in India " a narrow gauge 
 track, laid on a substantial road and subway, with rails pro- 
 portioned to the limited wheel loads of the improved engines 
 now obtainable, and to the moderate speed required by the 
 circumstances of the country." 
 
 1 Despatch No. 42, of isth July 1869.
 
 24 RAILWAY rOLICY IN INDIA 
 
 This was replied to in October 1870.^ The conclusions of 
 the Government of India,' as regards the adoption of a narrower 
 gauge for future extensions, were agreed to, and the report of 
 a Committee appointed by the Secretary of State to consider 
 the gauge to be adopted was enclosed. This subject is dealt 
 with at length in a subsequent chapter. The conclusion 
 arrived at in the end was to adopt a gauge of one metre (3 feet 
 3jj inches), on which, at the date of this work, over 7000 miles of 
 line have been constructed. The Government of India set to 
 work vigorously, organised a new railway branch of the Indian 
 Public A\'orks Department, into which were drafted most of the 
 engineers then in Government service who had had railway 
 experience in England ; and to these were added others who 
 were available from the Staffs of the guaranteed companies, and 
 a certain number of Royal Engineer officers. The money for 
 this new system of direct construction by the State was raised 
 in London by the Secretary of State on the credit of the Indian 
 revenues. The sums expended on railway extension between 
 the years 1870-92, the rate of interest per cent, and the rate 
 of sterling exchange on the rupee, are given in the following 
 table. The figures of expenditure include construction by 
 direct State agenc}-, and the sums spent in recent years in- 
 directly by the State, through the agency of assisted companies, 
 such as the Southern Mahratta. 
 
 ^ Despatch No. 72, of 26th October 1S70. 
 - Then under Lord Mayo. 
 
 [Table
 
 HISTORICAL SKETCH 
 
 25 
 
 
 
 
 Sums expended in Rx.ion State Railways. 
 
 Average 
 rate of 
 Interest 
 
 for 
 Loans. 
 
 Average rate 
 
 of Sterling 
 
 E.xchange 
 
 on the 
 
 Financial Year. 
 
 From 
 
 From 
 Revenue. 
 
 
 
 Borrowed 
 Money. 
 
 Total. 
 
 Rupee for 
 the Year. 
 
 1870-71 . . 
 
 452,748 
 
 9,569 
 
 443,179 
 
 3-98 
 
 s. d. 
 I lO.l 
 
 1871-72 
 
 
 
 650,170 
 
 4,175 
 
 645,995 
 
 3-93 
 
 I lOi 
 
 1872-73 
 
 
 
 1,430,047 
 
 14,863 
 
 1,444,910 
 
 
 I IO| 
 
 1873-74 
 
 
 
 2,424,526 
 
 39,409 
 
 2,463,935 
 
 3-90 
 
 I log 
 
 1874-75 
 
 
 
 3,106,430 
 
 114,481 
 
 3,220,911 
 
 3-94 
 
 I lOi 
 
 1875.76 
 
 
 
 3.245,401 
 
 29,680 
 
 3,275,081 
 
 3-98 
 
 I 9i 
 
 1S76-77 
 
 
 
 2,965,110 
 
 38,260 
 
 3,003,370 
 
 3-92 
 
 I 84 
 
 1877-78 
 
 
 
 4,158,174 
 
 50,896 
 
 4,209,070 
 
 3-94 
 
 I 8i 
 
 1878-79 
 
 
 
 3,465,221 
 
 171,782 
 
 3,637,003 
 
 3-96 
 
 I 7i 
 
 1879-80 
 
 
 
 2,987,383 
 
 1,786,155 
 
 4,773,538 
 
 4.00 
 
 I 8 
 
 1880-81 
 
 
 
 3,212,893 
 
 2,317,395 
 
 5,530,288 
 
 3.58 
 
 I 8 
 
 1881-82 
 
 
 
 2,213,773 
 
 1,131,470 
 
 3,345,243 
 
 
 I 7i 
 
 , 1882-83 
 
 
 
 1,883,542 
 
 347,019 
 
 2,230,561 
 
 3-97 
 
 I 7i 
 
 1883-84 
 
 
 
 3,382,367 
 
 470,486 
 
 3,852,853 
 
 
 I 7i 
 
 1S84-85 
 
 
 
 3,526,152 
 
 1,209,958 
 
 4,736,110 
 
 3.20 
 
 I 7i 
 
 1885-86 
 
 
 
 4,712,828 
 
 1,221,055 
 
 5,933,883 
 
 3-52 
 
 I 6i 
 
 1886-87 
 
 
 
 5,123,105 
 
 406,635 
 
 5,529,740 
 
 3-46 
 
 I 5h 
 
 1887-88 
 
 
 
 2,251,776 
 
 80,945 
 
 2,332,721 
 
 
 I 5 
 
 1888-89 
 
 
 
 1,178,111 
 
 23,308 
 
 1,201,419 
 
 3-12 
 
 I 4s 
 
 1889-90 
 
 
 
 2,794,458 
 
 19,734 
 
 2,814,192 
 
 2.98 
 
 I 44 
 
 1890-91 
 
 
 
 2,881,783 
 
 54,512 
 
 2,936,295 
 
 3.02 
 
 I 6 
 
 1S91-92 
 
 
 
 2,770,336 
 
 648,028 
 
 3,418,364 
 
 3- 18 
 
 I 4l 
 
 The contracts with the guaranteed lines empowered the 
 Government, by giving six months' notice, to acquire them on 
 certain terms after the first twenty-five years, and one of these 
 railways could have been taken over in 1874. During the 
 year 1869, however, negotiations were entered into by the 
 Secretary of State for India, and without reference to the 
 Government of India, for relinquishing this right on certain 
 conditions. These were in substance, that on the under- 
 standing that the State would extend the existence of the 
 companies for a second period of twenty-five years, and would 
 forego the arrears due by the companies for guaranteed interest, 
 a new contract should be executed, in which it should be 
 
 1 Rx. represents conventional sterling, assuming that ten rupees equals 
 one pound.
 
 26 RAILWAY POLICY IN INDIA 
 
 Stipulated that for the remainder of the lease surplus profits over 
 and above 5 per cent should be divided equally between the 
 companies and the Government. The intentions of the Home 
 Government became known to the Government of India, but 
 indirectly only, and a protest was sent by them, as soon as 
 possible, against this policy, although, as it happened, too late 
 to have any effect on the ultimate decision. The despatch of 
 the Government of India ^ indicated, and in forcible language, 
 the objections taken to the proposal. It pointed out that 
 various considerations had made it seem desirable that the 
 Government should acquire the guaranteed lines as soon as 
 possible, and that the concession by the companies with re- 
 spect to the disposition of surplus profits was in effect no 
 concession at all ; while, on the other hand, the surrender of 
 arrears of interest, and of the right to acquire the lines after 
 the first twenty-five years would mean a very serious loss to 
 Government. There was, the despatch said, no apparent 
 object in making such concessions. "The credit of the 
 Government was never better; the undertakings of these 
 companies are approaching completion : their demands on the 
 money market have almost ceased, and their stocks are quoted 
 at a considerable premium. It is, therefore, in vain that we 
 seek to discover the grounds which have actuated Her 
 Majesty's Government in this matter; and looking at the 
 stage at which it has arrived, as evidenced by the interpella- 
 tions in Parliament, we cannot but regret that no opportunity 
 was afforded us of placing your Grace in possession of the 
 views we entertain on this important question." 
 
 As already mentioned, this protest arrived too late to effect 
 the decision arrived at by the Secretary of State, and new con- 
 tracts on the above conditions were granted, first, to the Great 
 Indian Peninsula Railway, and later on to the Bombay, 
 Baroda, and the Madras Railways. It is not possible to offer 
 the reasons which led the Home Government to adopt this 
 ^ Despatch No. 80, of 12th August 1870.
 
 HISTORICAL SKETCH 27 
 
 course, which was taken not only against the opinion of the 
 Government of India, but in the face of facts which should 
 seemingly have offered good grounds for a decision of a 
 directly opposite character, viz. to acquire these lines for the 
 State at the earliest possible date. It may be admitted that it 
 was then difficult to foresee the enormous expansion of the 
 Indian export trade which followed shortly after, and it may 
 also have been deemed sound policy to sacrifice some share of 
 the public revenues for the purpose of encouraging and attracting 
 the investment of English capital in India. The result has any- 
 how been distinctly felt in the financial position of the Empire, 
 and there can now be no difference of opinion in the matter. 
 The loss to the State has, on the other hand, been a very 
 material gain to the shareholders of the first two of the lines 
 above mentioned, and as an illustration of this the figures for 
 1891-92 may be taken as showing the share of surplus profits 
 of the Great Indian Peninsula shareholders, which in that 
 year was Rs.5, 187,260, and of the Bombay and Baroda share- 
 holders Rs. 1,798, 260, besides contributions to Provident Funds. 
 In calculating this surplus, moreover, the interest paid in Eng- 
 land is converted into Indian currency at the rate of exchange 
 named in the contracts, viz. is. lod. per rupee. The amounts 
 paid to the companies are, therefore, more than a moiety of 
 the true surplus, after meeting interest charges, since the loss 
 by exchange — i.e. the difference between is. lod. and the 
 actual rates of exchange, now much lower — is not taken into 
 account, the whole loss falling on the Government. In any 
 half-year during which the net earnings fall short of the in- 
 terest charges, as in the case of unusually heavy debits against 
 revenue for maintenance charges, the deficiency is borne 
 wholly by the Government. The following table, extracted 
 from a note by the Accountant-General, Public Works De- 
 partment, shows the results to the State of the above con- 
 tracts with the lines mentioned, and the Madras Railway 
 — the only three now remaining of the older guaranteed
 
 28 
 
 RAILWAY POLICY IX INDIA 
 
 railways — for the year 1 89 1-92, the figures being in Rx. or 
 tens of rupees :■ — 
 
 
 Charges. 
 
 Gain or Loss 
 
 (+or -) 
 to the State. 
 
 Net Traffic 
 Receipts. 
 
 Interest. 
 
 Surplus 
 . Profits. 
 
 Contribu- 
 tions to 
 
 Provident 
 Funds. 
 
 Total. 
 
 Great Indian 
 Peninsula . . 
 
 Boml^ay,Barocla, 
 and Central 
 India . 
 
 Madras . . . 
 
 Total . . 
 
 Rx. 
 
 2,272,863 
 
 822,344 
 397,9" 
 
 Rx. 
 
 1,716,453 
 
 595,638 
 
 757,339 
 
 Rx. 
 518,726 
 
 179,826 
 
 Rx. 
 
 17,004 
 
 7,498 
 
 Rx. 
 2,252,183 
 
 782,962 
 
 757,339 
 
 Rx. 
 + 20,680 
 
 + 39,382 
 - 359,428 
 
 -299,366 
 
 3,493, "8 
 
 3,069,430 
 
 698,552 
 
 24,502 
 
 3,792,484 
 
 Having decided that future raihvay extensions should be 
 carried out directly by the State, no action was taken by the 
 Government for the next ten years in any other direction, and 
 private enterprise, whether aided or unaided, received no 
 further encouragement during this period. The greater part 
 of the new mileage was carried out on the metre gauge, with 
 the intention that this should be adopted for subsidiary or 
 feeder lines, but with a full recognition nevertheless that the 
 main traffic routes should be accommodated by the standard 
 gauge. The metre gauge was to carry light local traffic. For 
 the latter half of this period the portfolio of Public A\'orks in 
 the Council of the Governor-General was held by General Sir 
 A. Clarke, R.E., whose wide administrative experience in other 
 fields greatly strengthened the position of the Government in 
 dealing with this new development in their railway policy. A 
 new and terribly potent element was, however, to be introduced 
 into the question. During the years between 1874 and 1879, 
 the country was visited by a succession of most serious and 
 widespread famines, which, in spite of colossal efforts for relief,
 
 HISTORICAL SKETCH 29 
 
 resulted in an appalling loss of life, and of property in field 
 cattle, without counting the loss to the State in the remissions 
 of land revenue. It cannot unfortunately be said that famine 
 was a new calamity in India. In the famine of 1837, in the 
 North-West Provinces and Rajputana, over a million lives are 
 believed to have been lost, and perhaps double that number 
 in the famine of 1869 ; while in Orissa in 1866 famine is said 
 to have swept away one-third of the population. The famines 
 of 1876-78 in Madras, Bombay, and Mysore are said to have 
 resulted in the death of more than four millions of people, and 
 the cost of relief and of remission of revenue came to fully 
 eleven millions sterling. As was truly said by Sir Theodore 
 Hope in a paper read before the Society of Arts in 1890, 
 "these figures do but imperfectly indicate the loss to the 
 people, whose savings of years were depleted, whose cattle 
 died in enormous numbers, whose enfeebled condition ren- 
 dered them an easy prey to a whole army of fatal diseases, even 
 after actual famine had ceased, and among whom the normal 
 birth-rate was not recovered for some years." There were two 
 directions in which protection was obviously needed against 
 such calamities. One was the extension of irrigation works, 
 and the other, and the more pressing, was the improvement of 
 the means of communication by which the surplus produce of 
 one area could be rapidly and readily diverted to that in which 
 famine was impending. A Famine Commission, appointed in 
 1880, insisted on the great importance of railways in the pre- 
 vention of famine, and it became clear from their recommenda- 
 tions that the progress which was being made in this direction 
 by means of State construction was inadequate to meet the 
 requirements of the country. The Commission considered 
 that 5000 miles of line were urgently needed, and the country 
 could not be held to be safe from such calamities in the future 
 until the Indian railway system could show an aggregate of 
 20,000 miles. 
 
 The outcome of this was the projection of large and
 
 30 RAILWAY POLICY IX INDIA 
 
 important schemes of famine -protection railways, but unfor- 
 tunately the outbreak of the Afghan ^^'ar led to the diversion 
 of the resources of the State to another and more immediately 
 urgent direction than that of famine protection, and it became 
 increasingly evident that if railway extension was to be carried 
 out with the rapidity which was necessary it would be impos- 
 sible to rely solely on the operations of the Government. In 
 June 1880 (previously to the arrival of Lord Ripon as Viceroy) 
 a despatch had been sent to the Secretary of State,^ in which 
 the views of Lord Lytton and his Council were advanced as 
 regards the provision of funds for railway extension. Its main 
 features were that light cheap lines might be constructed on 
 the separate financial responsibility of Provincial Governments. 
 The Parliamentary Committee of 1879, on Indian Public Works, 
 had, it should be observed, limited the funds to be borrowed 
 by the Imperial Government for "productive" works, such as 
 irrigation and railways, to 2| millions sterling annually. In 
 replying in September 1880, and in January 1881, the Secretary 
 of State, then Lord Hartington (now Duke of Devonshire), 
 thought the time had come for reverting to the agency of 
 private enterprise in support of the direct operations of the 
 State, and that although so far it had not been possible to 
 attract investment without a guarantee, an endeavour should 
 be made to attract capital "on the exclusive security of the 
 success of the undertakings." Should, however, this prove to 
 be impracticable, it might be necessary to offer some form of 
 modified guarantee. The later despatch laid down certain 
 principles to be rigidly adhered to with respect to future 
 expenditure on productive ' works, and the construction of 
 
 ^ Despatch No. 1S4, Finance, of 8th June 1880. 
 
 ^ For the inchision of any work in the "productive" class, it was held 
 to be necessary that there should be reasonable prospect of its paying 4 per 
 cent on the capital invested within a maximum limit of five years from 
 date of the line being opened for traffic. On the other hand, " protective " 
 works were held to be such as were not directly remunerative, but were 
 necessary to guard against future expenditure in famine relief.
 
 HISTORICAL SKETCH 31 
 
 railways was to be considered on " commercial principles," 
 no new line being undertaken that did not offer fair promise of 
 paying 4 per cent within five years of being opened for tralific. 
 Meanwhile Lord Ripon had assumed the Viceroyalty, and 
 was prepared to accept a vigorous policy in the extension of 
 railways, more especially as to those which were destined to 
 afford protection against famine. 
 
 Lord Ripon was earnestly and ably supported in this object 
 by the financial member of his Council, then Sir Evelyn 
 Baring (now Lord Cromer). The views of the Government 
 of India may be held to have been embodied indeed, in his 
 Financial Statement in March 1881. In this it was held that 
 an outlay of 2^ millions annually on productive public works, 
 including railways, was wholly inadequate to meet the wants of 
 the country, that it was now necessary to abandon the hope of 
 getting such works constructed with greater rapidity and that it 
 was to be expected that English capital could be attracted, to 
 some at least of the projects then proposed, without a guarantee 
 being insisted on. He said — 
 
 It has always appeared to me to be a remarkable fact that India 
 — with all its magnificent and, as yet, only half developed re- 
 sources, and with all the security to life and property resulting from 
 a Government which, whatever be its objects, is at all events strong, 
 honest, and well-intentioned — should, up to the present time, have 
 been obliged to pledge the full security of the State in order to 
 attract any considerable portion of the surplus capital of England. 
 I hope that some railways afford sufficient attraction to induce 
 private individuals to undertake their construction without the aid 
 of Government, or, at all events, with a minimum amount of such 
 aid. I do not question the wisdom of the policy which would 
 permit capitalists to embark in this field. 
 
 He then proceeded to combat the objection that railways were 
 monopolies, and should therefore be in the hands of the State, 
 or that to concede the right of building a railway was in effect 
 to part with one of the most productive resources in its hands.
 
 32 RAILWAY POLICY IN INDIA 
 
 It is true that a railway is generally a practical monopoly. 
 The State should therefore exercise so much supervision over its 
 working as will prevent the monopoly being exercised in a manner 
 detrimental to the public interests. Thus the State should possess 
 a right of inspection in order that the line may be certified by 
 competent authority to be safe for the transport of goods and pas- 
 sengers. It should regulate the maximum tariff, and fix the gauge 
 on which the line is to be consU'ucted. It is especially necessary 
 that a conditional right of purchase after the lapse of a certain 
 period should be reser\-ed. But when provision has been made 
 for these, and some other points, which I will not now enumerate, 
 the necessity for State interference ceases. The interests of the 
 public do not necessarily demand that the State should create an 
 artificial monopoly in its own favour, in respect to the construction 
 of all railways. 
 
 As regards loss of revenue, he held that if the profits of a 
 railway were " left to fructify in the pockets of the people," 
 they would be more advantageously employed than would be 
 the case were they paid to the State, with a great chance of 
 their being employed on unproductive expenditure ; while the 
 indirect profits to the State, and to the country, resulting from 
 railway communication, would be obtained equally well, 
 whether railways are constructed by Government or by 
 private agency. He was not without hope, moreover, that 
 native capital could be induced to enter this field, and that he 
 should regard such a movement " as an important factor in the 
 practical education of the people. ... If ever the natives of 
 this country are to be schooled in the first rudiments of self- 
 government, it is desirable that they should be encouraged to 
 act for themselves in such matters, rather than that they should 
 rely always upon that coercive philanthropy which insists upon 
 doing everything for them." 
 
 Following on this statement the Government of India put 
 forward their views in a despatch, No. 92, Railway, of the 22nd 
 July 1 88 1, to the Secretary of State for India. They reviewed
 
 HISTORICAL SKETCH ' 33 
 
 the policy hitherto adopted in the following words : " We 
 began with the system of guaranteed private enterprise in- 
 augurated by Lord Dalhousie. After a lengthened trial, 
 succeeded by an abortive attempt to encourage the expendi- 
 ture of private capital by means of subsidies, this system was 
 condemned by Lord Lawrence in a minute which he left 
 behind when he retired from the A^iceroyalty, and in which he 
 expressed his preference for the plan of State railways con- 
 structed by Government with borrowed money. His successor. 
 Lord Mayo, adopted this plan, and pushed it on with energy 
 and vigour. But after a time strong objections were felt, 
 especially at home, on financial grounds, to unlimited borrow- 
 ing for public works, and of late years successive Secretaries of 
 State, acting in accordance with the recommendations of a 
 Committee of the House of Commons, have placed numerous 
 restrictions upon the railway expenditure of the Government of 
 India." They pointed out that these restrictions practically 
 allowed no more than fifty lakhs of rupees annually for such 
 lines as could not be classed as " productive," but which were 
 nevertheless urgently needed to protect the country from 
 famine. Under these circumstances they felt obliged to admit 
 that they had no hope of being able to effect what was urgently 
 needed, without dangerous delay, except by entrusting their 
 raihvay works to private enterprise, " under a safe and reason- 
 able guarantee." They proposed that interest granted under 
 such guarantee snould be a charge on the sum set aside for 
 expenditure on Famine Protective Works. This despatch was 
 followed by another, ^ in which the Government of India pro- 
 posed the following conditions under which private enterprise 
 should be again allowed to construct railways under a limited 
 guarantee. That Government should determine the direction 
 of lines, and, if required, make the necessary surveys ; give 
 land practically free for ninety-nine years ; allow interest on 
 capital during construction, and make up the earnings to a 
 
 ^ No. 113, of 24th September 1S81. 
 D
 
 34 RAILWAY TOLICY IN INDIA 
 
 certain percentage to be agreed on for five years after opening ; 
 retain powers over rates and fares and powers of purchase, and 
 be repaid advances of interest by a division of surplus profits 
 over the agreed percentage.^ 
 
 These proposals were replied to by the Secretary of State in 
 the following December,- and were not agreed to. He stated, 
 as before, that his view of " private enterprise " was that it 
 should be based, not on a guarantee, but " on the exclusive 
 security of the success of the enterprise," and that it was of the 
 essence of this policy that the proposals should not be made 
 by the Government but by capitalists themselves. He said, " I 
 can conceive nothing more injurious to the success of the 
 policy of enlisting private enterprise in the development of 
 railway enterprise in India than to lay before the public a large 
 scheme of railways, avowedly of an unremunerative character," 
 and as regards the proposal to employ the agency of com- 
 panies for the construction of other than " productive " lines, he 
 did not regard it with favour ; but that no other agency than 
 that of Government for such lines could be expected. 
 
 The result of this reply was to stop further development of 
 the contemplated policy for the time ; but meanwhile the port- 
 folio of Public ^^'orks in the Viceroy's Council had fallen to 
 Sir Theodore C. Hope, to whose marked vigour and ability the 
 railway system of India owes much. In concert with Sir 
 Evelyn Baring, who was still Financial Member of the Council, 
 he drew up the terms of an important d&patch ^ from the 
 Government of India. This observed that the last formal and 
 complete declaration on the subject of this policy by the 
 Secretary of State was that railways should be constructed (i) 
 by unaided private enterprise to the utmost possible extent ; 
 
 ^ This new departure resulted in the floating of the Bengal Central, the 
 Assam, and the Southern Mahratta Railways, all partly aided lines (see 
 chap. ii. ) 
 
 - No. 365, Financial, of 8th December 1S81. 
 
 ' No. 29, of 23rd January 1S83, to Secretary of State, Department of 
 Finance and Commerce.
 
 HISTORICAL SKETCH 35 
 
 (2) under guarantees of limited amount and duration, when 
 unaided enterprise was not obtainable ; (3) by the State out 
 of borrowed money, or surplus revenue, provided they would 
 probably pay 4 per cent within five years ; out of the three- 
 quarters of a million allowed for protective works, if they 
 would not afford such a return on capital, and under special 
 arrangements, if made under the actual pressure of war or 
 famine. The Government of India pointed out how these 
 views restricted operations which had been shown by the 
 report of the Famine Commission to be vitally necessary, 
 and they proposed to classify railway extensions under two 
 schedules. They held that some limit must be assigned to 
 capital expenditure, from funds borrowed by the State, for un- 
 profitable lines of railway, and proposed that Schedule A 
 should include indispensable railways, while Schedule B 
 should include railways which, though mostly desirable in 
 themselves, were not indispensable for protection or other 
 urgent purposes, and might be left to private enterprise, 
 aided only by the free grant of land. Schedule A con- 
 templated the construction of 3837 miles of railway, including 
 lines in progress, of which nearly the whole was " productive " ; 
 but only 1500 miles could be held to be "unproductive." 
 Three agencies were proposed for the construction of these 
 lines, viz. that of Government, of " Construction and Working 
 Companies," and of private companies under limited guarantee. 
 The despatch was 'accompanied by a minute by Sir T. Hope, 
 in which, dissenting from a majority of the Council, he advo- 
 cated the placing of the grants for Imperial Public Works upon 
 the basis of a quinquennial contract, similar to what had been 
 made for administrative purposes with Provincial Governments. 
 As marking a fresh epoch in the policy of the Government 
 of India it may be well to give some extracts from this despatch, 
 and to summarise portions of it : — • 
 
 2. During the last two years the policy of the Government of 
 India has been unsettled. We do not think that this is a matter
 
 36 RAILWAY POLICY IN INDIA 
 
 for surprise or for regret. In inaugurating a policy under which 
 railways should, to some extent at all events, be constructed through 
 the agency of private enterprise, it was almost inevitable that there 
 should be a period of transition during w-hich it would be ex- 
 ceedingly difficult to adhere to any fixed policy. It was easy to 
 declare beforehand the broad aim which the Government sought 
 to attain, viz. the construction of railways through the agency of 
 unaided private enterprise. But experience alone could show 
 how far that aim was attainable. It is now clear that the present 
 condition of things is open to considerable objection. In the 
 absence of any very clearly-defined principles for our guidance, 
 each case has to be considered on its merits. The result of this 
 state of things is that there is a risk of drifting unawares into the 
 adoption of measures which may prove a source of future em- 
 barrassment. We have now had two years' experience of the 
 private enterprise policy. During that time a certain number of 
 facts have been accumulated which, we think, are sufficient to 
 enable us to lay down a definite policy, at all events for the 
 immediate future, say for five years. 
 
 The Government of India would not discuss the question 
 of the principle on which railways were to be constructed in 
 future, or whether by the State directly or by private agency. 
 They were content to assume that the Home Government 
 avowed a policy of constructing these works by unaided private 
 enterprise, and, further, that the main portion of the required 
 capital must come from England, although every facility should 
 be given to local capitalists to subscribe. They pointed out 
 that a public works policy in India must in a very great degree 
 •depend on the financial position, and that in face of an un- 
 stable standard of value, and the precarious position of the 
 opium revenue, great caution was necessary before incurring 
 fresh liabilities, especially if it should involve any increase of 
 taxation. Indeed, they went so far as to say that they would 
 regard increased taxation as a greater evil than relatively slow 
 progress in railway construction, more especially in the case of 
 railways which were not urgently needed as a protection against
 
 HISTORICAL SKETCH 37 
 
 famine. As regards the absorption of profits from railways as , 
 a substitute for taxation, the Government of India, while 
 admitting that much might be said against this course, con- 
 sidered that " the practical necessities of the financial situation" 
 might oblige them to recognise those profits as a source of 
 income in the immediate future. 
 
 After pointing out the directions in which private enterprise 
 had already advanced under the new regime of a "limited 
 guarantee," and that there were signs of less distrust on the 
 part of capitalists in viewing Indian railway schemes, they 
 urged that while it seemed likely that no difficulty would now 
 arise in obtaining the means for constructing "productive" 
 lines, the means for making "protective" railways seemed 
 still quite inadequate. They held, therefore, that it was now 
 necessary to invert the system hitherto in force. They said, — 
 
 We consider that instead of continuing State agency for the 
 construction of productive lines of raihvay, we should, for the 
 future, as far as possible, exclude the action of the State altogether 
 from this field of enterprise, and that, as a general rule, the 
 Government should only undertake the construction of railways 
 which, from their unprofitable character in a commercial sense or 
 other causes, cannot be made by private agencies. A good deal 
 might be said in favour of this policy from the point of view of 
 abstract principle. It will, however, be sufficient for our present 
 purpose if we look wholly at the practical issue which is involved. 
 And the practical 'issue is this — that the adoption of this policy, 
 for the time being at all events, will alone permit of the speedy 
 construction of those railways which are urgently required as a 
 protection against famine. 
 
 The despatch then dealt with the financial aspects of this 
 new policy, pointing out that it involved a complete reversal of 
 that which had obtained during the last few years. 
 
 The essence of the present policy is that railways constructed 
 by the State should, generally speaking, be self-supporting. The 
 essence of the new policy is that the railways constructed by the
 
 3S RAILWAY TOLICV IN INDIA 
 
 State need not, and often will not be self-supporting. It is 
 sufficient to state the facts thus, in order to show that the change 
 of policy will materially affect the financial position of the Govern- 
 ment, and it becomes of the highest importance to inquire 
 whether the change may be made with a due regard to financial 
 prudence. It is obvious that some limit must be assigned to 
 capital expenditure, fronr funds borrowed by the State, on un- 
 profitable lines of railway. A policy which involved borrowing 
 to an indefinite amount in order to construct such lines, must 
 almost infallibly lead in the end to most serious financial embar- 
 rassment. The possibility of giving practical effect to the policy 
 depends, indeed mainly, on the amount of money which it is 
 proposed to sink in investments which are not calculated to yield 
 a rate of interest equal to that at which the Government of India 
 is able to borrow. This rate may be taken at 4 per cent per 
 annum. 
 
 The proposals as regards funds for carrying out the pro- 
 gramme as exhibited in the Schedules above referred to were, 
 firstly, to increase the loan raised annually of 2^ millions for 
 productive works of all kinds, including navigation, by the sum 
 of ;^35o,ooo, the whole sum being in future held available for 
 both productive and unproductive works; and, secondly, by 
 making arrangements with companies, involving an annual 
 liability of ;^25o,ooo, of which it was proposed that ;;^2oo,ooo 
 might be hypothecated from the Famine Fund of li millions. 
 The sum of ^^200,000 was the estimated burden, under the 
 worst conditions, which was to be expected on the three 
 principal " protective " railways which were put forward. The 
 Government of India further proposed that private companies 
 should in future receive no other aid than that of the free 
 grant of land, but that, on the other hand, the State should 
 raise no claim to a share in the direct profits from such lines. 
 They were prepared, moreover, to allow the debit of interest 
 during construction to the capital account. 
 
 The Secretary of State replied to this on the i6th August
 
 HISTORICAL SKETCH 39 
 
 1883, and regarded the proposals, more especially in their 
 financial bearing, as going far beyond what had been con- 
 sidered by the Famine Commission as necessary for the 
 protection of the country ; as likely to involve an annual 
 expenditure of three times the amount (2)7 millions) now 
 authorised to be expended from borrowed money ; and to 
 cause, by such large expenditure, a rise in the price of labour 
 and materials, which might largely detract from their financial 
 success. He admitted, however, that the present restriction 
 on the limit for borrowed money should be removed, or the 
 limit extended, and that with this view the Home Government 
 had decided to propose the appointment of another Select 
 Committee to re-examine the policy which should be pursued in 
 the extension of Indian railways, and with special reference to 
 the recommendations of the Famine Commission. The views 
 of the Secretary of State were combated by the Government of 
 India,^ but the Secretary of State declined to pursue the dis- 
 cussion, or to entertain certain proposals of private companies, 
 pending the result of the inquiry by the Parliamentary Com- 
 mittee. The Government of India, however, returned to the 
 charge, and in January 1884 again reviewed the whole position, 
 submitting modifications of the Schedules A and B, and justi- 
 fying their previous statements that the outlay proposed was 
 neither sudden nor excessive. The proposal of Sir T. C. Hope 
 above referred to, as regards a contract basis for the supply of 
 funds for Public Works, was mentioned. It was said that he 
 considered " that the profits of Indian railways should not, for 
 a few years, be swallowed up in the general expenditure of the 
 Empire, but should be devoted, in one form or another, to that 
 railway extension which the country so urgently needs for its pro- 
 tection from famine, the development of its external commerce, 
 the counteraction of the fall of silver, and the general enrichment 
 of its people. In short, he would let railways breed railways. . . . 
 For this proposal it is claimed that in addition to minor 
 1 Despatch No. 269, of 24th September 1SS3.
 
 40 RAILWAY POLICY IN INDIA 
 
 technical advantages, it would promote thrift in expenditure, 
 furnish a stimulus to increasing receipts, as similar contracts in 
 the case of Provincial Governments have been found by 
 experience to do, and also provide a means of railway exten- 
 sion sufficiently rapid, but under the strict security for financial 
 soundness which the contract Hmit would entail." This 
 proposal was not, however, supported by the Government. 
 
 Early in 1884 Sir Auckland Colvin took over the post of 
 Finance Member of the Viceroy's Council. He was not 
 disposed to wholly agree with the policy which the Government 
 of India proposed to adopt. He admitted that " protective " 
 railways must be made by borrowed money, but that a scheme 
 of real and urgently-needed projects of this nature should be 
 laid down, and that Government should be empowered, but not 
 obliged by any programme, to spend on them, and not on "pro- 
 ductive" works, so much of the borrowed capital (2^ millions 
 yearly) as was not devoted to irrigation. Moreover, that similar 
 conditions should apply to the utilisation of the Famine Grant, 
 which should be expended as capital only, and not as interest. 
 The substance of the minute was to recommend the concentra- 
 tion of effort on carrying out protective works, and to restrict 
 expenditure on so-called productive works. He said, " All we 
 can at present do for commerce is to tell it what lines it is at 
 liberty to construct, to give the land necessary for its railways, 
 and to see that no obstacles are thrown in its way." ^ 
 
 In the meantime the Select Committee of the House of 
 Commons had been at work, it having commenced its sittings 
 in March 1884, and it reported in July of the same year, 
 making the following principal recommendations : — 
 
 I. That the evidence in favour of a more rapid extension of 
 railways is conclusixc. 
 
 ^ The other members of the Government dissented from Sir A. Colvin's 
 views, and a minute supporting their position, by Sir T. C. Mope, sent 
 home to the Secretary of State w ith Sir A. Colvin's minute.
 
 HISTORICAL SKETCH 41 
 
 2. That all the leading trunk lines with their principal feeders 
 
 should be on the broad gauge. 
 
 3. That the rigid technical distinction between productive and 
 
 protective lines cannot be maintained. 
 
 4. That the amount proposed to be spent on railways by the 
 
 Government in the next six years was moderate. 
 
 5. That the limit of 2J, millions of borrowing fixed in 1879 
 
 might safely be enlarged. 
 
 6. That a fixed scale of expenditure should be maintained over 
 
 a considerable term of years. 
 
 7. That money may be borrowed in England for schemes 
 
 approved by the Secretary of State. 
 
 8. That the bulk of these lines should be made self-supporting. 
 
 9. That no portion of the Famine Grant should be hypothe- 
 
 cated as interest on capital. 
 
 10. That railway extension should not involve additional 
 
 taxation ; and 
 
 1 1 . That the Secretary of State should be responsible for 
 
 deciding what amounts may with safety to the finances be 
 borrowed for Public Works. 
 
 The Secretary of State informed the Government of India that 
 he concurred with the general tenor of the Committee's recom- 
 mendations, and made certain proposals as regards finance, to 
 which the Government of India replied in September 1884,^ 
 submitting a forecast of the requirements for the next six years, 
 and recapitulating its views and recommendations regarding 
 the concession of certain projects to companies. To this the 
 Secretary of State replied, fixing the sum to be borrowed yearly 
 for Public Works at 350 lakhs of rupees absolutely, and that 
 no expenditure in excess of this except from revenue was to 
 be incurred. This decision and the grounds for it were com- 
 municated in a despatch, No. 148, of the 27th November 1884. 
 
 In the same year, 1884, the gauge question again came up, 
 owing to the difficulties which were experienced in deciding 
 upon the gauge required for each project, the decision having 
 1 Despatch No. 150, of 29th September 18S4.
 
 42 RAILWAY POLICY IN INDIA 
 
 been based, of late years, on the supposed financial prospects 
 of the line, and the vi^ws of the Government for the time 
 being. The Government of India communicated its intentions 
 on the subject in a despatch to the Secretary of State in April 
 1884,-^ and the policy on this point then recommended was 
 practically endorsed by the recommendations of the Select 
 Committee of the House of Commons. This subject will be 
 fully dealt with in Chapter V. 
 
 Another era of companies' lines, side by side with State 
 lines, both in construction and administration, was thus 
 commenced under Lord Ripon's Viceroyalty. It was hoped 
 at first that railways which appeared likely to be remunerative 
 would be taken up by companies either without a guarantee, or 
 at most a guarantee for a limited number of years. Two small 
 schemes were started in 1881, on a limited guarantee, and 
 early in 1882 a larger scheme, that of the Southern Mahratta 
 Railway Company, was started on the basis of the railway belong- 
 ing to the State, but being worked and the funds being supplied 
 by the company. A guarantee was given on the capital of 
 4 per cent for seven years, and 3^ per cent subsequently, 
 together with a fourth share to the company of net profits. 
 Later on in the same year another company, the Bengal and 
 North-Western, was launched without any guarantee, a share 
 in profits over 6 per cent being only reserved for Government. 
 Other projects were under negotiation, when it became obvious 
 that money could not be raised in England without a definite 
 guarantee, and two important lines were launched in 1S85 and 
 1S87 — the Bengal -Nagpore, and the Indian Midland — on 
 similar conditions to the Southern INIahratta Company, but 
 with a permanent guarantee of 4 per cent, and one-fourth of 
 surplus profits over and above this figure. 'J'hus the system 
 of railway construction by the agency of companies was 
 
 ^ Despatch No. 48, Railway, 22nd April 1884, which was rendered 
 necessary owing to the persistent efforts of the Secretary of .State to force 
 the metre gauge for adoption on what were evidently trunk lines.
 
 HISTORICAL SKETCH 43 
 
 practically a reversion to the policy of Lord Dalhousie, the 
 difference being that each line was held to be State property 
 from the outset, the rate of interest was 4 instead of 5 per 
 cent, the State had power to fix rates and fares, and the lion's 
 share of profits over the guaranteed figure was taken by the 
 State. In referring to this new departure, in a paper read 
 before the Society of Arts in June 1890, Sir Theodore Hope 
 was of opinion that this system of using both State and 
 companies' agencies worked well, and was well suited for a 
 permanence, in so far that State debt and State establish- 
 ments could be kept at a moderate level, that there would 
 always be some railways, which, for military or other reasons, it 
 was desirable that the Government should keep in its own 
 hands ; while there were others, with which a company could 
 most conveniently deal. Another advantage which could have 
 been claimed, was that the two systems introduced a healthy 
 rivalry between State and companies' lines, both in cheapness 
 of construction and in subsequent working. 
 
 An important feature in railway policy, relating to rates and 
 fares, may here be briefly touched upon though dealt with at 
 greater length in a subsequent chapter. The through opening 
 of the Rajputana Railway, metre gauge, which belonged to 
 the State, led in 1881 to a representation from the Calcutta 
 Chamber of Commerce to the effect, that low rates were being 
 charged to Bombay, and in consequence that traffic was being 
 diverted to that port which formerly found its way to Calcutta. 
 On this an assurance was made by Government, that the 
 through rates from the common point, Delhi, should not be 
 lower to Bombay than to Calcutta. Meanwhile the Secretary- 
 of State had had his attention drawn to the matter at home, 
 and in March 1882,^ a reference on the subject was made to 
 the Government of India. The Secretary of State held that 
 " the natural course of traffic on two lines, proceeding from the 
 same place to ports on different sides of the continent of India, 
 ^ Despatch No. 41, Railway, of 1SS2, to Government of India.
 
 44 RAILWAY POLICY IN INDIA 
 
 should not be interfered with by any idea of adjudicating on 
 the rivalry between them, and that the advantages due, either 
 to geographical position, or other circumstances, should furnish 
 no reason for imposing on either artificial restrictions, in the 
 shape of enhanced rates in order to produce an equal return of 
 profit on the capital of both." In replying to this, the Govern- 
 ment of India disclaimed any intention to "adjudicate" in the 
 rivalry between the two ports, but affirmed that their orders 
 had been passed on the principle that a line with cheap fuel 
 and easy gradients can afford to carry goods at a lower mileage 
 rate than one not possessing these advantages, and that to keep 
 the rates on the former at a level with those on the latter, 
 would be prejudicial to the country served by the more cheaply- 
 worked line. It was their desire, they said, " in the interest of 
 the country generally, that all rates should be reduced to the 
 lowest limit which will give a fair profit, and this cannot be 
 attained by the adoption of uniform mileage rates on all lines." 
 To this view the Secretary of State (Lord Hartington) objected 
 in toto} He said " that to attempt to proportion rates on com- 
 peting lines to the supposed aggregates of the factors of cost 
 of transport on each is impracticable, and would not be desirable 
 if it were practicable," that it should be left to the managers of 
 lines to fix such rates as they might deem most advantageous, 
 and that the interest of trade and of the railways would be 
 better served by accepting the legitimate consequences of 
 competition. To this the Government of India responded by 
 the issue of a circular letter, embodying and accepting the view 
 of the Secretary of State. At the same time, it is not surprising 
 that the Government of India, as the owner, or potential owners, 
 of all the Indian railways, should have viewed with anxiety, or 
 even alarm, the outbreak of a war of rates which threatened to 
 imperil their financial results ; but it would be now readily 
 admitted that the remedy they then proposed to adopt was one 
 
 ^ Despatch from Secretary of State, No. 132, Railway, of igtli October 
 1882.
 
 HISTORICAL SKETCH 45 
 
 that was equally impracticable and impolitic ; while that which 
 was accepted, on the advice of the Secretary of State, was, and 
 has been proved to be, the sound one. 
 
 An important outcome of this correspondence was, that it 
 led to a consideration of the question of the agency by which 
 certain groups of lines could be most properly and economically 
 worked. The State lines, as completed, had hitherto been 
 made over to State officials to be worked without con- 
 sideration as to their bearing or position with respect to 
 adjacent or connected railways, and it seemed advisable, both 
 on this account and with the view of economy, to review the 
 position, and if necessary to make over the working of some of 
 these lines to companies. Any rearrangements in this direction 
 were necessarily complicated by the terms of the contracts with 
 the guaranteed railways, and no alteration in their working 
 agencies was possible until their contracts expired. The first 
 move was made in 1884 by the making over of the Rajputana- 
 Malwa metre gauge system — a State concern — to the Bombay, 
 Baroda, and Central India Railway Company on a lease, or 
 working agreement for a term of years, the State being assured 
 of a fixed percentage on the capital cost of the line, and taking 
 a large share of surplus profits over and above this. In taking 
 this step the Government of India expressly declared that it 
 was in no way due to its being recognised that State manage- 
 ment was inferior to that of a company ; but that in substituting 
 private agency, under due control, for that of the State, it was 
 probable that incentives would be created towards more vigor- 
 ous and economical management, and that it might be expected 
 that the State, whether directly or indirectly, would not be a 
 loser by the arrangement. In contrast to this, about the same 
 time the contract of the Eastern Bengal Railway expired, and 
 was not renewed ; the line was acquired by the State, and made 
 over for working to State agency, which was then administering 
 a large metre gauge system in connection with it. Later on 
 similar action was taken in the purchase of the Sind and
 
 46 RAILWAY TOLICV IN INDIA 
 
 Punjab Railway, and in its adoption, under State management, 
 into the north-eastern frontier raihvay system. Other cases of 
 the same sort have been dealt with on similar lines after due 
 consideration of the circumstances, the general tendency being 
 perhaps towards the making over of State lines to be worked 
 by companies' agency on working agreements. 
 
 In 1879 the Government considered it desirable to convene 
 a conference of railway officers of both State and companies' 
 lines to discuss and determine certain questions of importance 
 which had arisen in the working of Indian railways. This, the 
 first, conference met in January 1880, and since this conference 
 others have been convened, and with great benefit to the ad- 
 ministration of Indian lines. The same year saw the institution 
 of a Provident Fund for servants employed on State railways, 
 all employes being obliged to subscribe to it, and voluntary 
 subscriptions to a certain extent allowed besides. Government 
 gave depositors the same rate of interest as was allowed in the 
 State Savings Banks, and as an inducement to employes to 
 take an interest in the economical administration of the line 
 they were engaged on gave them an annual bonus from net 
 profits. This fund enabled the Government before long to 
 abolish the pension system for railway servants. 
 
 Brief reference must here be made to the policy of Govern- 
 ment in the matter of military railways. The importance of the 
 railway system in India for military purposes was naturally 
 recognised at the outset, and great stress was laid on this in 
 Lord Dalhousie's minute of 1853. But until the outbreak of 
 the Afghan War, at the end of 1878, no comprehensive views 
 had been taken of the interconnection of our frontier com- 
 munications, nor any programme laid down for railway con- 
 struction for purely or mainly military objects. This must be 
 attributed in some measure to the pressure of famine troubles 
 for several years previously, and the severe tax they imposed on 
 the resources of the State. The Afghan campaign revealed, 
 however, the need, not only for improved means of moving
 
 HISTORICAL SKETCH 47 
 
 troops along our frontier, but for improvement in the con- 
 nections and capabilities of existing lines leading from our 
 military centres. The value of railway communication during 
 this campaign was vividly illustrated in the case of the railway 
 which had been rapidly pushed across the desert to the mouth 
 of the Bolan Pass, where one train, in a day of sixteen hours, 
 was found to do the work which it would have required 2500 
 camels to do in a fortnight. Up to the year 1883 no very 
 definite policy had been pursued in dealing with military or 
 frontier railways, but during the Viceroyalty of Lord Ripon 
 this question was taken up seriously, and a definite programme, 
 which was estimated to cost over five millions sterling, was 
 submitted to the Secretary of State in 1884. The Government 
 of India proposed, though not unanimously, that this outlay 
 should preferably be derived from borrowed funds, on a 
 separate and distinct loan, which should be discharged within 
 thirty years by terminable annuities and a sinking fund. The 
 scheme received the approval of the Home Government, but 
 exception was taken to the financial proposal. The Secretary 
 of State admitted that such works were both urgent and 
 exceptional in character, but that, nevertheless, their cost 
 should as far as possible be met from revenue, and that for 
 such purposes borrowed money should only be had recourse 
 to when funds from revenue were exhausted. He was, however, 
 prepared to allow an extension to the limit of the annual sum 
 borrow^ed for public works, and decided to raise the figure from 
 2| millions to 350 lakhs of rupees in conformity with the recom- 
 mendations of the Parliamentary Select Committee of 1884.^ 
 
 The result of this decision was a correspondence between 
 the Government of India and the Secretary of State on the 
 financial bearing of their railway policy. One point which 
 arose in this bears strongly on the general question of the con- 
 struction of railways by the direct agency of the State, and 
 
 ^ At an exchange of icl.-4d. to the rupee the 350 lakhs are now con- 
 siderably less than 2^ millions.
 
 4S RAILWAY POLICY IN INDIA 
 
 deserves particular notice. The attention of Sir T. C. Hope, 
 the Member of the Mceroy's Council for Public Works, had 
 for some time been drawn to the serious public inconvenience, 
 and even positive pecuniary loss, which resulted from the way 
 in which funds for railway construction were provided by the 
 Finance Department, and in 1S83, as already mentioned, he 
 had concluded that the only satisfactory way of meeting this 
 difficulty was that an informal agreement, or contract, should 
 be made for five years with the Public Works Department, and 
 that within the limits thus fixed to leave this Department a free 
 hand in utilising to the best advantage the funds placed at its 
 disposal. This had not met with approval; but in 1886 Sir 
 T. C. Hope took the opportunity of referring to the subject 
 again on an intimation from the Secretary of State that certain 
 considerable lapses had been allowed to occur in the railway 
 grants. He pointed out that neither at home nor in India was 
 there an adequate appreciation of the fact that uncertain sup- 
 plies, of either funds or materials, must certainly lead to such 
 lapses, and that it appeared to be considered that such supplies 
 could be turned on or off " as readily as water from a tap." 
 He showed that the procedure by which stores were obtained 
 from England for State railways frequently involved delays, 
 which in turn generally implied lapses of the grant for the 
 year ; that these lapses were not necessarily regranted in the 
 next year, and in consequence the programme of construction 
 of a line was thrown out, works might have to be suspended in 
 order to provide money for stores arranged for in the previous 
 year, or, as might happen, material might arrive at the port of 
 destination and no funds be available to meet the cost of 
 transit to the works. Thus money had to be withdrawn from 
 some other work, and its programme disorganised, the only 
 certainty in the vicious circle being that of waste of time and 
 money in one quarter or another. He dealt earnestly, more- 
 over, on the effects of sudden withdrawals and expansions of 
 funds according to the financial or political position at the
 
 HISTORICAL SKETCH 49 
 
 time. He said, and most truly, " Large works, such as railways, 
 cannot profitably be executed by driblets. Once started, 
 economy is best secured by keeping the establishments at their 
 full working power by supplying materials in a regular flow at 
 the time they are actually required, and by completing succes- 
 sive sections as an aid to the rest. Starting and stopping work 
 from time to time spasmodically ; suddenly discharging labour 
 carefully collected and trained, and as suddenly endeavouring 
 to re-collect it; keeping highly -paid staff partially or wholly 
 unemployed for months ; at one time sending out material 
 which there are no funds for utilising, at another suspending 
 field work for want of material ; and operating throughout on 
 uncertain and fluctuating resources — ^this is a mode of business 
 which no mercantile firm could pursue with impunity, or would 
 even contemplate seriously." 
 
 The soundness of these views could scarcely be denied by 
 those who were in the least degree conversant with the nature 
 of railway operations, and it may be assumed that they would 
 have been regarded with more favour by the Government of 
 India as a whole had the country and its finances been free 
 from sources of serious embarrassment. Among these actual 
 and potential famine may be said to have held the first place ; 
 while secondly, the possibility at that time of war with Russia 
 entailed a new and evidently prolonged outlay on works for the 
 defence of the Empire. But the great and increasing difficulty 
 of the Government lay in the fluctuation in the exchange value 
 of silver, the standard of the currency. Had there been any 
 reasonable hope of finality in this it could have been accepted 
 as a heavy but transient burden, to be met temporarily by 
 retrenchment or increased taxation, or by both ; but the 
 Government could not but recognise that it was more likely to 
 increase than to decrease, and that no prudent system of 
 finance could, in the face of this difficulty, justify their entering 
 into any undertaking which should bind them to a heavy and 
 regular annual expenditure on public works. The table on 
 
 E
 
 50 RAILWAY POLICY IN INDIA 
 
 p. 28 shows the fall in exchange between the years 1870-71 
 and 1891-92. 
 
 For some years the financial difficulties of the Government 
 had been ominously increasing, both on account of the fall in 
 the exchange value of silver, and from the necessity, then fully 
 recognised, of expending large sums yearly in works for the 
 defence of our north-western frontiers. Thus the guarantees 
 in sterling, given to the Indian Midland and Bengal-Nagpore 
 Railways, were most reluctantly assented to, notwithstanding 
 the urgency which appeared to attach to them as famine pro- 
 tective lines. Indeed it had seemed to Sir Auckland Colvin, 
 then Financial Member of Council, that the increasing obliga- 
 tions of the State would render it necessary to impose fresh 
 taxation to meet them, and to this step there were grave 
 difficulties and objections. On this point the Secretary of 
 State in a despatch to the Government of India, dated 29th 
 July 1886, observed that while he did not in the least overlook 
 the importance of extending the railway system in India, both 
 for the purpose of providing additional means of protecting 
 the country against famine and for developing its resources, 
 he said that he must impress upon the Government that even 
 these unquestionable advantages might be too dearly bought if 
 they were compelled, in order to meet their expenditure, to 
 resort to increased taxation ; adding that measures which 
 might have seemed highly desirable, when there was a fair 
 prospect of a surplus of revenue, must be suspended in the 
 changed condition of affairs. In spite, however, of these views, 
 and of their bearing on the immediate position, the grant of a 
 4 per cent sterling guarantee was eventually made to the 
 Bengal-Nagpore Company in February 1887, on similar terms 
 to the contract of the Indian Midland Company. It was 
 allowed, nevertheless, that unless the position materially im- 
 proved — a contingency which in no way seemed probable — no 
 further assistance to private enterprise could be given in this 
 shape, and that unless some other system could be found by
 
 HISTORICAL SKETCH 51 
 
 which EngUsh capital could be attracted to railway construction 
 in India, the extension of these works must, for the future, 
 depend on such allotments as could be provided by the State 
 from revenue or from the fixed amount of the annual loan for 
 public works. In December 1887 the portfolio of Public 
 Works in the Viceroy's Council was assumed by Sir Charles 
 Elliott, K.C.I.E. 
 
 It became necessary to seek some new form in which 
 the requisite assistance or encouragement could be given to 
 the English investor, while not involving the incubus of a 
 guarantee. After some considerable negotiation, the new 
 departure took the shape, in 1889, of an agreement on the 
 part of the Government with the Delhi-Umballa-Kalka Railway 
 Company, in which the latter was to construct a line in connec- 
 tion with the East Indian Railway with the grant of free land 
 only ; but on the condition that on the completion of the 
 railway the line should be worked by the State for 50 per cent 
 of the gross receipts. In October of the same year the Govern- 
 ment of India addressed a lengthy despatch to the Secretary of 
 State,^ in which a programme was sketched for future railway 
 extension. In this despatch only casual reference was made 
 to the possible co-operation of private enterprise, whether in 
 the direction above referred to or in any other, and appeared 
 to contemplate future operations as being mainly the result of 
 direct State agency. In November the Secretary of State 
 (Viscount Cross) in a despatch, No. 132, Railway, in acknow- 
 ledging the receipt of the programme above mentioned, gave a 
 very definite expression of the views of the Home Government 
 as regards the employment of companies on Indian railways. 
 He pointed out that the steadily increasing receipts on these 
 concerns fully justify the anticipation that further extensions, if 
 judiciously carried out, would yield "a fair return" on the 
 capital invested. He agreed with the conclusion which had 
 practically been adopted by the Government of India and his 
 
 ^ No. 14, Railway, of 1S89.
 
 52 RAILWAY POLICY IN INDIA 
 
 predecessors that the choice between direct State agency and 
 that of companies must depend on the circumstances of each 
 case, that while generally the multiplication of agencies should 
 be avoided, both might still be employed, but that financial 
 conditions should predominate in arriving at a decision on this 
 point. He was disposed, however, to think that it was 
 expedient to as far as possible enlarge the scope afforded by 
 railways in India for private enterprise, and thus diminish the 
 burdens and responsibility of the Government, promote 
 decentralisation, and encourage the spirit of emulation which 
 would result from a variety of management. He therefore 
 held that "in the case of projects for which the requisite 
 capital can be provided, and the working conditions arranged 
 on reasonable terms, the plan of employing companies in the 
 construction, and still more in the working of railways, possesses 
 certain recommendations that will frequently make it expedient 
 to give that agency the preference." The continuance of the 
 system of guarantee, whether for a short or long period, was 
 plainly objected to ; but a hope was expressed that other 
 means, then under consideration, might be found by which the 
 requisite aid might be given to companies, and reference was 
 made to an idea of advancing money to them from a sum of 
 ten millions which had recently been raised on the authority 
 of Parliament for special application to railway extension in 
 India. A company was to raise one-third of the cost of a 
 line, the remainder being advanced by the Government in 
 India, and interest on the company's share of the capital was 
 to be a first charge on the net earnings of the line. The 
 despatch further contained a suggestion for the institution of 
 Local Boards, in connection with the administration of Indian 
 railways, from whose advice marked benefit might be expected. 
 A reference was also made to the question of gauge, and the 
 Secretary of State recorded his concurrence in the recom- 
 mendation of the House of Commons Committee of 1884 on 
 this subject to the effect that all leading trunk lines should be
 
 HISTORICAL SKETCH 53 
 
 on the broad (5^ feet) gauge, while the metre gauge as a rule 
 should be confined " to tracts where that system is already 
 in successful operation, and to local lines where the traffic 
 is likely to be so light that the cheapness of construction more 
 than counterbalances the undoubted disadvantage of break 
 of gauge." 
 
 The views of the Government of India on the above- 
 mentioned despatch were given in March 1890^ (Lord 
 Lansdowne being Viceroy). They fully agreed that the 
 multiphcation of agencies was an evil to be avoided, and more 
 especially as regards working companies which were "always 
 exposed to the temptation of trying to divert traffic into their 
 own lines, and to block other lines by prohibitive rates." This 
 evil it was hoped to minimise by the creation of a Railway 
 Commission ; but it was considered that there would always be 
 the danger of a small company occupying the most remunerative 
 part of a tract of country, and thereby increasing the difficulty 
 of providing for the extension of a line to portions likely to be 
 less productive. A proposal made in the Secretary of State's 
 despatch was referred to, which was to allot a certain area to 
 each trunk line, and require all extension within that area to be 
 made by such line. This was agreed to as being eminently 
 sound in theory. " Its effect would be to discourage purely 
 competitive lines, to give the benefit of railway communications 
 to the greatest extent of country with the least possible ex- 
 penditure, and to economise working expenses by concentrating 
 the traffic of a country on a railway system adequate for it." 
 It was, however, pointed out that although this principle might 
 be readily adopted on a blank map, it was a different matter to 
 apply it in a case where, as already in India, railways had been 
 constructed with disregard to it, and thus making it impossible 
 to define the natural sphere of each system. The financial 
 difficulty was, moreover, no light one, in so far that a scheme 
 might be submitted by a company which had funds but had 
 1 Despatch No. 55, dated 25th March 1890.
 
 54 RAILWAY POLICY IN INDIA 
 
 not the claim to the territory, while on the other hand a 
 company which held this right might not be in a position to 
 find the funds. On the question of gauge, the Government of 
 India alluded to proposals then before them (to which reference 
 will be made farther on) to reserve certain areas for each gauge, 
 and stated that although the evils of break of gauge had as yet 
 been little felt in India, it was to be expected that as the rail- 
 way system increased and became "closely interlaced" the 
 inconvenience would become so sensible as to render a large 
 expenditure justifiable in order to alter the gauge on some 
 lines. 
 
 The financial proposals made in the Secretary of State's 
 despatch did not meet with approval from the Government of 
 India. They held that the assistance thus given would secure 
 none of the advantages which were to be expected from private 
 enterprise, and that it was in fact nothing less than a sterling 
 guarantee on a company's share of the capital in another form. 
 The condition that the State should be required to advance so 
 large a proportion of the capital seemed to the Government of 
 India to be likely to lead to serious difficulties in the event of 
 war or famine, which would impose serious strain on the 
 finances, and thus render it impossible to meet the requirements 
 of a company. The Government might consequently be ex- 
 posed to claims on account of the stoppage of the works. The 
 ideal of private enterprise in Indian railways, in the view of the 
 Government of India, was that a company should require 
 nothing more than the free grant of land ; but they were not 
 prepared to support the creation of companies " which would 
 have a very limited interest in the concern from which they 
 take their name, which would contribute only a small portion 
 of the capital at an unnecessarily high rate of interest, yet on 
 what is really absolute security, and which, for the rest of their 
 capital, would have to draw, from the Government Treasury, 
 funds in the management of which the State could thereafter 
 have but little influence, and from which it would probably get
 
 HISTORICAL SKETCH 55 
 
 a very poor return." They considered that rather than raise 
 funds in such a way, for expediting railway extension, it would 
 be better and safer to increase the borrowing powers of the 
 Government of India than to enter into arrangements with 
 private companies which would pledge the supply of money 
 to them without reference to the state of the finances at the 
 time. 
 
 Meanwhile negotiations had been in progress between the 
 Secretary of State and the South Indian Railway Company, on 
 the expiration of the contract of the latter, for the basis of a 
 new contract, under which the lines then forming the system 
 were to be taken over on a working lease by a new company, 
 which was also to find capital for extensions. Ultimately, in 
 November 1890, the contract was executed on conditions very 
 similar to those which had been sketched in the Secretary of 
 State's despatch above noticed. The Company was held to 
 be formed primarily for the purpose of working, managing, and 
 maintaining the existing lines, and to raise one million sterling 
 as capital for the purpose of extension, this sum being held 
 to be equivalent to 140 lakhs of rupees, and the interest 
 on this, at 3^^ per cent for three years, and thereafter at 3 
 per cent, to be a first charge on the net revenues of the line. 
 The second charge on the receipts was to be interest at 
 3 per cent on the Government share of the capital, i.e. the 
 original cost of the line, while any surplus over and above 
 these charges was to be divided in proportion to the capital 
 subscribed by the Government and the Company. The 
 contract to be for twenty years, and at its expiration or 
 determination the Company's capital to be repaid in London, 
 in sterling at par. As may be gathered from the sketch already 
 given of the views of the Government of India, these terms 
 were considered by them to be too advantageous to the 
 Company ; but in this the Secretary of State felt unable to 
 agree, holding that under the circumstances less favourable 
 terms would have led to the failure of the negotiations. Early
 
 56 RAILWAY POLICY IN INDIA 
 
 in 1 89 1 the Secretary of State, Lord Cross, returned to the 
 subject,^ and expressed his views generally as regards the 
 employment of the agency of companies. He said that the 
 policy which had dictated the action taken as to the South 
 Indian Railway Company, was in effect that of his predecessors, 
 and with this he was in complete accord. He was not disposed 
 to discard the agency of companies, " which had been so largely 
 employed by the State from the first introduction of railway 
 communication into the country," adding that on "various 
 substantial grounds, some of them not less important than 
 immediate financial considerations," it was expedient to 
 continue the employment of companies in both the construc- 
 tion and working of railways in India. It was at the same 
 time evident that the terms and conditions on which this 
 policy was to be carried out must vary according to the 
 circumstances of each project, the state of the money market, 
 and the aspect of the finances of the country, and that only in 
 this sense were negotiations for new lines to be regarded as 
 constituting a new departure. He concluded by stating that 
 if the encouragement of private enterprise was to be confined 
 to the offer of terms upon which, under certain conditions, it 
 might be impossible to negotiate, railway extension from this 
 source must be indefinitely postponed, or the whole burden 
 must devolve on the State. 
 
 This despatch was replied to by the Government of India 
 in October of the same year.- They repudiated any intention 
 of pressing for the exclusive employment of direct State agency, 
 while on the contrary they would cordially welcome the co- 
 operation of companies, but that this might be obtained at too 
 high a price, and in this sense private enterprise as properly 
 understood would not be secured. They had no desire to 
 employ State agency further than to secure adequate employ- 
 ment for their existing establishments, which they believed, 
 
 ^ Despatch No. 16, Railway, of 5th February 1891. 
 - Despatch to Secretary of State, No. 107, of 14th October 1891.
 
 HISTORICAL SKETCH 57 
 
 moreover, were fully as efificient as those which were employed 
 by companies. 
 
 At this point this sketch of railway policy in India must 
 be brought to a close, the later developments being noticed in 
 another chapter. It should be observed however, that the dis- 
 cussions referred to in the preceding pages, as to the conditions 
 on which the employment of companies should be encouraged, 
 did not imply that there was any cessation, or even material 
 diminution, in the expenditure on railways by the State itself. 
 In the year 1892-93 about 310 lakhs were expended by 
 Government under this head, and in part from revenue, on 
 new lines, while about eighty lakhs more were devoted to new 
 works and improvements on existing lines. The demand 
 under this latter head is in fact growing heavier year by year, 
 and already trenches severely on the strictly limited funds 
 available annually for railway expenditure. 
 
 If the salient features of this brief sketch be passed in re- 
 view, it will be seen that there have been three distinct phases 
 of policy. From the beginning up to the year 1869, the con- 
 struction and working of railways was left entirely to companies 
 under some form of guarantee. From 1870 to 1880, on the 
 other hand, nearly all new lines were constructed by the direct 
 agency of the State and with State funds ; while from the latter 
 year up to the present time, the operations of both the State 
 and of aided companies have gone on together. The pro- 
 posals made in 1883 by the Government of India, which have 
 been referred to at some length, were to lease the productive 
 lines to private enterprise, while the unproductive lines were 
 to be carried out by the State either directly or indirectly. To 
 a great extent this policy has been adhered to ; but until a 
 stable figure of exchange can be attained for our Indian cur- 
 rency, it must be acknowledged that the assistance of private 
 enterprise on any large scale is not to be reckoned upon with- 
 out a guarantee in some form or other. Thus so far the 
 expectations of 1883 have not been reahsed. For the future
 
 58 RAILWA\' POLICY IN INDIA 
 
 the very serious financial difficulties in which the Government 
 now finds itself forbid the hope of any continuous or forward 
 policy. It cannot afford to give definite assistance to private 
 enterprise, and the day seems at hand when the expenditure 
 of the State itself must be greatly restricted. The outlook can 
 in fact be improved in one way only, viz. by the establish- 
 ment of a stable sterling value for the rupee.
 
 CHAPTER II 
 
 GUARANTEES AND ASSISTANCE 
 
 In the previous chapter an outline has been given of the 
 phases through which the policy of the Government of India 
 has passed in dealing with their railway system, from the 
 beginning to the present day. It is necessary, however, to give 
 a more detailed description than that sketch affords of the 
 character of the assistance which it was deemed necessary to 
 concede to private enterprise in Indian railways, and the nature 
 of the co-partnership, and the control, which was reserved for 
 the State in the contracts. Whatever may have been the 
 changes in the attitude of the Government towards the 
 promoters of companies, for constructing or working railways, 
 no intention has been shown to relinquish or diminish the 
 rights of the State to share, either immediately or in future, in 
 the profits of each undertaking, or to weaken its powers of 
 control and supervision. The initiation of this policy may 
 perhaps be properly attributed to Lord Dalhousie, who 
 before he became Governor- General, in the early days of 
 Indian railways, had had exceptional opportunities of observ- 
 ing the ill effects of the supineness of the Government in 
 England, in its relation to railway enterprise, and who showed 
 a clear determination to avoid this mistake in India. In 
 accepting the co-operation of companies in the commencement 
 of these works, and in the grant to them of a guarantee of 
 interest on their capital, he exercised the right of the State to
 
 6o RAILWAY POLICY IN INDIA 
 
 direct their operations, and to require that their development 
 should be carried out on definite and well-considered lines. 
 The advantages of this course, to both the investor and to the 
 general public, has been incontestable ; it has protected the 
 shareholder at home from the mistakes of injudicious and 
 inexperienced agents, and has enabled the Government to have 
 its railway system designed with due regard to the interests of 
 all classes. 
 
 The earliest agreements with companies under guarantee 
 are dated in August 1849, and were between the Secretary of 
 State for India and the East Indian and Great Indian Peninsula 
 Railway Companies. The prolonged negotiations which pre- 
 ceded their completion have been noticed in the preceding 
 chapter. The first recorded proposal was made in December 
 1844, by Mr. (now Sir) Macdonald Stephenson. The Govern- 
 ment of India were at first opposed to any form of guarantee, 
 while on the other hand the Court of Directors of the East 
 India Company were of opinion, in which they were un- 
 doubtedly right, that money could not be raised in England 
 for the purpose without aid in this, or some other equally 
 tangible form. The outcome was on the whole, and in the 
 light then available, on the prospects of railway enterprise in 
 India, a fairly equitable one. The Government relieved the 
 shareholders of all risk, gave them some expectation of profit 
 over and above the guaranteed interest, and in return claimed 
 reasonable powers of control and the right of purchase. The 
 following are the principal conditions of these contracts : — 
 
 The Go\ernment would determine the route to l^e followed, and 
 had power to alter or e.xtend it. 
 
 Land was pro\ided l^y Government for all A\orks on a lease for 
 ninety-nine years. 
 
 The necessity and expediency of all works was to be certified 
 in writing to the Company. 
 
 The Government had power to determine the nuniljcr, speed, 
 and times of running of trains, to approve the fares leviable, and
 
 GUARANTEES AND ASSISTANCE 6i 
 
 to require a reduction of these when the Hne paid over lo per 
 cent. 
 
 Entire control and superintendence was reserved for Govern- 
 ment over the servants of the Company, and free access stipulated 
 for to all books, papers, and accounts, together with the appoint- 
 ment of an unpaid Government Director who had power of veto. 
 
 The expenditure of the Company to be submitted to Govern- 
 ment for approval and sanction, and only expenditure so approved 
 to be carried to the Capital Account. 
 
 Gross receipts to be paid into Government Treasury. 
 
 Interest at 5 per cent per annum, to be paid to the Company 
 on capital paid into the Treasury, for ninety-nine years. 
 
 A reserve fund was to be instituted for making good deteriora- 
 tion, the net profits of the line being applied in the first instance 
 towards the repayment of interest to Government. The accumu- 
 lated interest debt was to bear simple interest only, at the rate of 
 5 per cent per annum, and when the profits exceeded the amount 
 payable on the guarantee, one-half of such excess was to be credited 
 to the Company, and the other half to be applied firstly towards 
 payment of interest on the debt, and then towards the extinction 
 of the debt itself. When the debt and interest had been discharged 
 the Company was to take the whole of the surplus net receipts. 
 
 Provision was made for the carriage of mails and postal ser- 
 vants free of charge, and for the carriage of troops and military 
 stores at reduced rates. 
 
 At the expiration of the term of ninety-nine years the land and 
 works to become the property of Government, the rolling stock 
 and other movable property being paid for at a fair value. 
 
 The company might voluntarily surrender the line after comple- 
 tion, on giving six months' notice, when the Government would 
 refund the capital outlay. 
 
 The Government had the option of purchasing the line within 
 six months after the first twenty-five years, or first fifty years, the 
 sum to be paid being the full amount of the value of all shares 
 and capital stock, calculated on the mean market value in London 
 during the preceding three years. 
 
 In case of default by the company in finding capital, or in the 
 execution of the works, in working the line, or in any other way.
 
 62 RAILWAY POLICY IN INDIA 
 
 the Government could, on giving three months' notice, take 
 possession of the line on payment of the capital outlay within six 
 months, less debts. Moreover, if the line was not properly main- 
 tained when open, the Government had power to do what was 
 necessary, and to deduct the cost from the sum due for guaran- 
 teed interest. 
 
 Instead of repaying capital directly, the Government was 
 empowered to commute this by granting annuities, payable half- 
 yearly, for the remainder of the term of ninety-nine years, the 
 rate of interest to be used in calculating the annuity to be the 
 average rate of interest during the preceding two years received 
 in London oh public obligations by the Secretary of State for 
 India. 
 
 Finally, the Government bound itself to promote such legisla- 
 tion as might be necessary to enable the company to fulfil the 
 objects of the undertaking. 
 
 The instructions of the Court of Directors were very ex- 
 plicit as to the exercise of the powers of the Government in 
 respect to the supervision over the companies under this con- 
 tract. They required that this control should not only be 
 effective, but even minute, extending both to the operations of 
 the companies during construction, and after the lines had 
 been opened for traffic. The rules laid down for the guidance 
 of the inspecting officers of Government, who were then, and 
 have since been termed " Consulting Engineers," were drawn 
 up on very definite lines, which were briefly as follows : — 
 
 All questions of general importance were to be referred for 
 decision to the Government, and under these were to be included 
 the general direction of each line, the position and the general 
 arrangement of stations and works. After such sanction was 
 given the Consulting Engineers had powers to deal with details. 
 
 All designs, estimates, and indents, whether for works or for 
 establishments, were to be approved by the Consulting Engineers, 
 who could reduce the amounts of indents, or rccjuire designs, or 
 proposed operations to be modified ; with the stipulation that the
 
 XiUARANTEES AND ASSISTANCE 63 
 
 agent of a company could, if dissatisfied, refer matters for the 
 decision of the Government. 
 
 The proper exercise of such powers, in the interest both of 
 the State and of the Company, demanded a capacity for judici- 
 ous compromise on both sides — conditions which unfortunately 
 were seldom fulfilled. The railway officials objected to what 
 they considered over-interference, demurred to giving detailed 
 designs and estimates, discussions and delays occurred too 
 frequently, and in the end a Committee of the House of 
 Commons was appointed, in 1857-58, to inquire into "the 
 causes of the delays that were alleged to have occurred in 
 the construction of Indian railways." These delays were 
 classified as follows : — ■ 
 
 1. Those arising from Governmental supervision at home and 
 
 in India. 
 
 2. Those incidental to the execution of extensive and compli- 
 
 cated public works under such circumstances in a distant 
 countr}^ 
 
 3. Those produced by political causes, such as insurrection 
 
 and mutiny. 
 
 4. Those arising from the natural difficulties which the face 
 
 of the country presents. 
 
 The Committee arrived at the conclusion that, although 
 some cases had been brought forward in which the control 
 of the Government had been productive of vexation and 
 annoyance to the railway ofificials, no very material delay 
 could be charged to this circumstance. They held that the 
 Government had acted wisely in giving over railway enter- 
 prise in India to companies, that a guaranteed interest was 
 indispensable to induce capital to embark in such under- 
 takings, and that in order to protect the State from undue 
 expenditure control was not only requisite, but valuable, in 
 the interests of the shareholders themselves. At the same 
 time, the Committee thought that under a system complicated
 
 64 RAILWAY POLICY IN INDIA . 
 
 in its character, and necessarily somewhat cumbrous in its 
 machinery — a system, moreover, the greatest defect of which 
 lay in the facility it afforded for the evasion of responsibility — 
 a clear and distinct definition of the duties, responsibilities, 
 and extent of jurisdiction of all heads of departments, and 
 those under them, was essentially requisite for its smooth and 
 successful working ; always assuming that due care was taken 
 to entrust discretionary power only to men who were to be 
 relied on or competent to distinguish an effective general 
 control from too minute an interference in detail. They con- 
 cluded by expressing their belief that what was needed was 
 a judicious adherence to the spirit rather than the letter of 
 the contract. The effect of this inquiry was distinctly bene- 
 ficial in improving the relations between the railway officials 
 and the Government officers. There was a marked improve- 
 ment in expediting the disposal of business, a feeling of mutual 
 respect and confidence arose on both sides, and, to quote the 
 words of one who had full opportunity of observing the 
 improvement in these relations, " the officials of the company 
 learnt that the (consulting) engineers with whom they have to 
 deal are competent as well as practical men, obliged to be so 
 from the very nature of the duties they have always had to 
 perform, and that no captious opposition or unfair criticism 
 was to be anticipated from them." 
 
 Having noticed the first practical difficulties in working the 
 system, reference must be made to what were ere long recog- 
 nised as the advantages and disadvantages of the guarantee 
 system on wider issues. It has been stated that in 1853 the 
 Oovernment of India, as represented then by Lord Dalhousie, 
 was in favour of it ; but he was nevertheless impressed with 
 the necessity of seeing that the sums to be guaranteed should 
 be based on sufficient data, as regards the cost of the works, 
 ." well and economically " carried out, and that some provision 
 should be made to ensure the completion of a line within some 
 period to be named, recommending, however, that the terms
 
 GUARANTEES AND ASSISTANCE 65 
 
 should be liberal, both as regards time and money. These 
 views were not definitely adopted in subsequent contracts 
 made by the Home Government, but later on, in a despatch. 
 No. 2, of the 29th November 1858, Lord Canning, then 
 Viceroy, again referred to the great need for restraint on 
 the capital outlay. He said "that in any future contracts 
 involving a guarantee an essential element should be, that 
 previous to the commencement of work a thorough and 
 critical estimate should be made of the whole line with its 
 works, from actual survey and inquiry — exactly such an esti- 
 mate, in fact, as would be required by a company in view of 
 inviting tenders in England for a lump sum contract, but 
 embracing the cost of engineering establishment; that this 
 estimate should be subjected to the criticism of our officers, 
 under the injunction that a liberal spirit is to be exercised in 
 this criticism ; and that after adding a handsome margin to 
 this for contingencies, the gross sum, and no more, should be 
 the amount on which the Government guarantee interest." 
 The then President of the A^iceroy's Council, Sir J. P. Grant, 
 took a stronger view. He objected to the dual management, 
 and especially to the financial basis of the system. He said 
 that it really implied "the raising of money by a special 
 public works loan, but under conditions the most disadvan- 
 tageous possible for the public, who must be taxed for the 
 payment " ; that the money was not raised at the lowest 
 market rate, and that instead of repayment being at the 
 option of the borrower (the Government), this could not be 
 done, whatever the loss might be in keeping it ; while the 
 lender could at any time reclaim il, or an equivalent annuity, 
 whatever the financial position of the Government might be 
 at the time." The Finance Member of Council, Mr. S. 
 Laing, writing in April 1861, also recorded an opinion against 
 the system, on the grounds that the management was non- 
 resident and that the data as to first cost and probable traffic 
 being so uncertain, the companies looked almost exclusively 
 
 F
 
 66 RAILWAY POLICY IN INDIA 
 
 to the guarantee. He considered that these two factors went 
 far towards neutralising all the advantages of private enter- 
 prise, and that although, as a general rule, and under ordinary 
 circumstances in commercial matters, joint-stock management 
 must be held to be gready superior to that of a Government, 
 yet that this advantage could not be claimed when the real 
 company was 5000 miles away and the guarantee absolute. 
 The shareholders had their 5 per cent whatever happened. 
 This was probably all that they expected, and consequently 
 no adequate motive existed for restraining the outlay on the 
 works. 
 
 On the other hand, the system offered advantages which, 
 although brought less to notice, were nevertheless clearly re- 
 cognised by the Government. The one which stood out most 
 prominently, and especially during the troubles of the Mutiny 
 period, was that neither the political nor financial position of 
 the (Government had any effect in curtailing the supply of 
 funds for the purposes of railway extension. On the faith of 
 the guarantee, the companies found money without demur or 
 difficulty, and for a definite purpose only; while had the 
 capital been raised as a Government loan, for distribution to 
 the companies, there was every likelihood that it would, on 
 more than one occasion of financial stress, have been diverted 
 to other more urgent public necessities. To quote the words of 
 an officer,^ writing in 1868, who was well qualified to offer an 
 opinion : " This advantage will be acknowledged by all, but 
 can only be fully appreciated by those who have seen with 
 dismay canals almost useless for want of distributing channels, 
 roads entirely so from the absence of bridges, and buildings 
 half erected falling to ruin for want of a roof The steady 
 and unfluctuating supply of needful funds is a great and 
 decided benefit, for which Indian railways have to thank the 
 guarantee system. Had they been constructed on funds raised 
 by a direct Government loan the Indian railway system would 
 ' Colonel E. Davidson, K.E., TIic Railways of India. 1S68.
 
 GUARANTEES AND ASSISTANCE 67 
 
 not in all probability have been half completed by this time, 
 instead of being nearly finished as it is." 
 
 Another, though less obvious, advantage of the system was 
 to be found in the probability that the holders of shares in 
 railways in India would be led to take a wider and more 
 definite interest in Indian affairs, and in the general progress 
 and welfare of the country. Moreover, the operations of the 
 companies introduced a new and much -needed non- official 
 element, from which a freshness and independence of opinion 
 was derived on many matters. The railway engineers were 
 always a welcome addition to the centres of Anglo-Indian life, 
 and in the stormy days of the Mutiny their vigour, pluck, and 
 readiness of resource made them prominent figures in the 
 struggle, and formed a by no means insignificant addition to 
 our strength. Yet, curiously enough, the presence of the non- 
 official element was still regarded with some amount of jealousy 
 and suspicion even then ; and in drawing attention to the 
 possible dangers that might arise from the overgrowth of Eng- 
 lish companies in India, the Government laid stress on the 
 necessity for their having power to summarily dismiss railwa}- 
 officers whose action might be held "to endanger the peace 
 and security of the country." The companies' officials had 
 in fact for many years to feel themselves regarded as necessary 
 evils, as being in the country to a certain extent on sufferance, 
 and having to tread warily in their relations with the natives 
 and with Government functionaries as such. 
 
 Regarded from our present standpoint, the terms of the 
 guarantee appear to be unduly onerous on the Government ; 
 but it has to be borne in mind that India was then an almost 
 unknown country to the English investor, that the Govern- 
 ment was not in a position to carry out such works itself, and 
 that there was a desire to attract English capital into the 
 country. The guarantee for a term of ninety- nine years 
 applied to all money paid into the Government Treasury and 
 expended with the sanction and approval of the Government.
 
 68 RAIUVAY rOLICY IN INDIA 
 
 A\'hen the capital account thus sanctioned was closed, which 
 was then considered both possible or desirable, so much of 
 the subscribed money as was not required for the undertaking 
 was to be returned to the companies. The contracts provided 
 that the amount advanced by Government on account of the 
 guarantee was to be eventually repaid from the future profit 
 of the railways, and under the following arrangement. Net 
 receipts were to be paid into the Government Treasury. If 
 they amounted to less than the sum due for guaranteed 
 interest, an addition had to be made from the revenues of 
 the country to make up that sum. If they amounted to more, 
 half the excess was to be added to the shareholders' dividend, 
 and the other half applied to the repayment of monies previ- 
 ously paid by the Government for guaranteed interest ; while 
 if the receipts did not suffice to meet the cost of working and 
 maintenance, the deficiency was charged against the guarantee. 
 When the whole arrears due to Government under the 
 guarantee had been repaid (with simple interest), the com- 
 panies were entitled to the whole profits. Many years elapsed 
 before any one railway earned a dividend equal to the 
 guaranteed figure, and there is still one that has not yet 
 accomplished it.^ The result was that enormous arrears of 
 interest due from the companies accumulated, and in the end 
 were remitted on the drawing up of fresh contracts, under 
 which the Government assumed a larger share of future 
 surplus profits. 
 
 By the end of the year 1859 eight companies had been 
 formed for the construction under guarantee of nearly 5000 
 miles of line, with a capital of 52}, millions, and the works 
 were being vigorously prosecuted. The largest concern at 
 that time was the East Indian Railway Company, with a capital 
 of nineteen millions. It had already been noticed that the 
 employment of so many different agencies implied the exist- 
 ence of a more expensive and complicated machinery than if the 
 
 ^ The Madras Railway.
 
 GUARANTEES AND ASSISTANCE 69 
 
 Government had retained these works in its own hands ; and 
 moreover that so many companies involved unnecessary expense 
 in the administration in England, while they were liable to create 
 a competition amongst them for materials and freight, which 
 would unduly raise prices. But the policy at the time was to 
 encourage so-called " private enterprise," and at the same time 
 to assign such limits to the sphere of each concern as would 
 tend to prevent the creation of inconvenient monopolies. 
 The fear that the competition between the companies for 
 materials and freight would enhance the cost of these transac- 
 tions was perfectly justifiable. The material to be sent out 
 from England for each mile of railway may be taken at an 
 average of 250 tons, representing for 5000 miles a total of i^ 
 million tons, which in the four years 1855-58 gave freight to 
 2518 vessels; and as the export trade of India was then in its 
 infancy, compared with its present figures, and as ships were 
 only sent out for return cargoes, it may be supposed that this 
 unusual demand for carriage to India must have led to abnormal 
 rates. No difficulties had been experienced up till the end of 
 i860, in the raising of capital by the guaranteed companies, 
 and considerable balances had been accumulated to their 
 credit, but the troubles of the Mutiny period had forced on 
 the Government the necessity of making heavy loans in the 
 English market, and this had the effect of seriously interfering 
 with the financial operations of the companies. This difficulty 
 became at one time so acute, that it was in contemplation to 
 raise funds through the direct agency of Government, and 
 to guarantee no further projects until the lines then sanctioned 
 had been completed. Fortunately, the additional difficulty of 
 exchange did not then exist ; the sterling value of the rupee 
 stood at 2S., while the rate under the contracts was is. lod. 
 In the following year, however, the condition of the money 
 market improved considerably, the sound financial position 
 of India was accepted with more confidence by the public, 
 the value of railway securities rose steadily, and Government
 
 70 RAILWAY POLICY IN INDIA 
 
 was relieved from the need for raising money on behalf of 
 the companies. The crisis which was then happily tided over 
 has, however, a significant bearing on the relations between 
 guaranteed companies and the Government of India, or indeed 
 of any Government, under similar political conditions. The 
 suspension of extensive railway operations, at a certain stage 
 of progress, would materially injure the Government, the 
 companies, and above all the public. A large outlay might 
 remain unprofitable, and much positive loss might be incurred, 
 in leaving the works unfinished. 
 
 Except under the subject of rates and fares, to which 
 reference will be made in another chapter, no material addition 
 to the railway policy in India can be traced up to the end of 
 1863. An important question then arose as to the proper 
 distribution of outlay by the companies, between capital and 
 revenue. A clause in the contracts provided that a charge to 
 capital might be made for such "additions, alterations, and 
 improvements " as, having been made with the approval of the 
 Government, "are properly chargeable to capital." This left 
 matters in a very indefinite form, and as soon as the lines 
 began to feel the incidence of maintenance charges, it became 
 necessary to define what " properly chargeable " meant. After 
 a full discussion of the question, and after ascertaining the 
 practice which commonly prevailed on English railways, the 
 matter was decided by a despatch to the Government of India, 
 dated the 9th March 1864, from Sir Charles Wood, then 
 Secretary of State for India, the rulings in which have continued 
 in force on Indian railways up till now. Some extracts from 
 this despatch are worth quoting. 
 
 7. I think it advisable, however, to take this opportunity of 
 
 laying down some general rules, which may be of assist- 
 ance in enabling you to decide questior^ of charging 
 expenditure to Capital or Revenue. 
 
 8. There can be no doubt that the expense of an additional 
 
 line of railway, of the doubling of an existing line, of the
 
 GUARANTEES AND ASSISTANCE 71 
 
 original construction of any work, including that of those 
 intended to be only temporary, as well as of all additions 
 to existing work, ought to be charged to Capital Account. 
 9. When new lines form a junction with an existing railway, 
 the expense of the junction and all its concomitant 
 appliances of stations, sidings, signals, etc., is properly 
 chargeable to Capital Account, and the cost should be 
 divided in such proportion as may be fair, between the 
 two companies for whose mutual and joint benefit the 
 junction is made. 
 ID. The cost of additional stations and of any important 
 building not previously contemplated, which is added to 
 an existing station, should be charged to Capital Account. 
 
 1 1 . The cost of maintaining, in a proper condition, the works 
 
 when completed, must be charged to Revenue Account ; 
 but when any extraordinary casualty may occur, such as 
 the destruction of a bridge by flood, the case must be 
 regarded as exceptional, and the cost of construction or 
 replacement must be charged to Capital or Revenue, or 
 divided between them, as may be deemed proper, accord- 
 ing to the circumstances of the case. 
 
 12. In relaying rails, if the original rails have proved too light, 
 
 and additional strength in weight of iron or steel be 
 required, the Capital Account should bear the difference 
 between the cost of the new and improved rails and that 
 of replacing the old rails by rails of a similar character. 
 Revenue being chargeable for relaying and all other 
 expenses. The same principle should be applied to 
 replacing by iron sleepers those of wood originally laid 
 down. 
 
 13. In the locomotive stock, the Capital ought to bear the 
 
 first expense of any addition which may be made to the 
 existing stock, and of any important improvement or 
 alteration which may be made in the same, as well as of 
 all machinery which is absolutely new, and not merely in 
 replacement of old ; but all repairs and less important 
 alterations of the existing stock of engines, carriages, and 
 waggons already paid for, and handed over for working
 
 72 RAILWAY POLICY IN INDIA 
 
 purposes, should be charged to Revenue. The roUing 
 stock and plant after being once paid for from the Capital 
 must be kept up by Revenue to its full complement. 
 14. In no case should the cost of mere appurtenances of stock, 
 after the opening of a line, or of a change such as the 
 substitution of one mode of lighting for another, whether 
 in engines, carriages, stations, or signal-lamps, the cost of 
 which has already been paid for out of Capital, be admitted 
 as Capital expenditure. These properly belong to the 
 Traffic Revenue Account. 
 
 The despatch then went on to deal with the old difficulty as 
 to the closing of the capital account of a line, and pointed 
 out that finally to close such an account, either at first opening 
 or at any given period, was practically impossible, inasmuch as 
 to do so would imply that the utmost requirements for its 
 future working had been duly provided for. This could never 
 be the case, " as it is invariably found that the traffic upon a 
 railway steadily and progressively increases long after its 
 opening, and therefore to finally close the capital account of 
 Indian railways, and prevent the application to them of any 
 additional capital, must be fraught with injury to all parties, 
 whether guarantors or guaranteed." The despatch concluded 
 by saying that these rules were not intended to interfere with 
 the arrangements which had been made with each company, 
 by which the cost of maintenance for a certain period after 
 opening was allowed to be charged to capital. 
 
 Two attempts had been made on a small scale previous to 
 the years 1863-64, to raise capital for railway extension in India 
 without a guarantee, viz. by the Indian Branch Railway 
 Company in Northern India, and by the Indian Tramway 
 Company in Southern India. Their endeavours had met with 
 but small success, and a lengthy correspondence resulted, 
 between the Government of India and the Secretary of State, 
 as to the possibility or otherwise, of constructing railways with 
 assistance from the State, in some other form than that of a
 
 GUARANTEES AND ASSISTANCE 73 
 
 guarantee, which it had been virtually decided should not be 
 extended farther than was necessary to complete the main 
 trunk lines. After much discussion and deliberation it was 
 decided to encourage the construction of lines on the standard 
 (5I feet) gauge, by the grant of land free of cost, and a maximum 
 subsidy of ^100 a year, per mile open, for twenty years from 
 the date of opening. This system was to involve no other 
 interference on the part of the Government than was necessary 
 in the interest and for the safety of the public, while it made 
 it incumbent on the projectors in their own interests to com- 
 plete their works economically and rapidly ; a limit of time 
 being fixed, failure within which to open a line carried with it 
 a reduction of the period for which the subsidy was payable. 
 At first this proposal seemed likely to be received favourably 
 by the public, but it was doomed to early failure, as it was 
 found that these terms were not liberal enough for the then 
 feeling in the money market at home with regard to Indian 
 investments. Modifications which were proposed of this 
 system of subsidy had no better success. There was in fact ' 
 still ample. opening for investors in India and elsewhere, on a 
 guarantee of interest, and it seemed to be understood that any 
 investment out of England, at that time, must be assured, 
 without fail, of a return of 5 per cent. Thus after negotiations 
 between the Secretary of State and two companies, extend- 
 ing over the years 1864-67, the Secretary of State addressed the 
 Government of India in March 1867,^ informing them that it 
 had been found necessary after all to revert to a guarantee of 
 5 per cent, and a contract on this basis was drawn up with 
 the Indian Branch Railway Company for the construction of 
 railways in Gudh and Rahilkund. 
 
 The principal differences between this contract and the 
 former contracts with a guaranteed company were briefly as 
 follows : — 
 
 I. Estimates were to be formed for the cost of the works, and 
 
 1 Despatch No. 18, Railway, of 23d March 1867.
 
 74 RAILWAY POLICY IN INDIA 
 
 if the Secretary of State should, after perusing them, not 
 desire to co-operate further with the Company in the 
 proposals made, the contract could be terminated on 
 repayment of cost of the surveys, and the money which 
 had been paid in by the Company to be refunded. 
 
 2. The rate of exchange was altered from is. lod. to 2s. 
 
 3. The grant of land was in perpetuity, instead of being only 
 
 for ninety-nine years. 
 
 4. The Company to fix rates and fares within maxima, which 
 
 should be settled by the Secretary of State, such rates 
 being reduced if the net earnings exceeded 10 per cent on 
 capital, so as that profits should not exceed this figure. 
 
 5. The State could purchase the line at any decennial period, 
 
 after twenty years, instead of only after twenty-five and 
 fifty years. 
 
 6. The guarantee was absolute on all, instead of only on 
 
 approved expenditure. 
 
 7. The Company was to be subject to any future enactments 
 
 for the regulation of railways. 
 
 In replying to the Secretary of State in December 1867,^ the 
 Government of India, then under Lord Lawrence as Viceroy, 
 accepted the necessity for reverting to the guarantee system, 
 but took exception to the views of the Secretary of State and 
 to the terms of the contract, and held in substance that no 
 com})any should be allowed the opportunity of a very large 
 development, because this might be inconvenient, and even 
 dangerous, to the Government on account of the responsi- 
 bility for interest, and at the same time the company might 
 be proportionately inefficient. That a fixed sum should be 
 stated as a limit to expenditure on guaranteed interest, exten- 
 sion of capital being only allowed as net receipts reduce the 
 actual charge. That the Government when considering new 
 projects should fix an average mileage rate of cost, and deter- 
 mine that it will not guarantee interest on any sum exceeding 
 this. That the companies and the servants should be required 
 ^ Despatch No. 125, of 3ril December 1S67.
 
 GUARANTEES AND ASSISTANCE 75 
 
 to look on themselves as the agents of the Government for the 
 purpose of constructing railways according to its wishes, and 
 that they must understand that no interest will be given on 
 outlay made "under the virtual dictation of companies and 
 their engineers." That Government be empowered to dismiss 
 or suspend all railway officials at its discretion. That land 
 should be granted for ninety-nine years, and the right of entry, 
 after that period, secured to Government. That it was politi- 
 cally dangerous, and might be very embarrassing to Govern- 
 ment, to allow very large capitals to be invested in guaranteed 
 railways in India, and that the Government should either by 
 special contract or actual purchase ultimately obtain possession 
 of all such works. That the method proposed in the contract 
 for the repayment of the interest guaranteed was open to 
 objection, in so far that instead of dividing surplus earnings 
 over 5 per cent between the Government and a company until 
 the debt was extinguished, either the whole surplus should be 
 taken by the State until the debt was paid, or that the half 
 surplus be taken by the State absolutely and permanently ; but 
 preferably that the State should take the whole surplus till the 
 debt was paid, and the half surplus thereafter permanently. 
 
 Replying to this in 1868,1 ^-j^q Secretary of State (Sir Staf- 
 ford Northcote) stated his inability to concur in these views. 
 He said that it was essential, in working the guarantee system, 
 that the confidence of the investing public, or, in other words, 
 of the "money market," should be secured; that "due regard 
 should be paid to the constitution of joint-stock companies, 
 as regulated by Parliament " ; and that if a certain class of 
 railways in India is to be constructed by the agency of guaran- 
 teed companies, such terms must of necessity be given as will 
 attract them, and not such as would repel them from entering 
 into contract. He felt certain that no company would con- 
 sent to look on itself and its servants as the mere agents of the 
 Government, liable to removal or suspension at its pleasure, 
 ^ Despatch No. 90,. of 24th November 1S68.
 
 76 RAILWAY POLICY IN INDIA 
 
 and that no reputable engineers would take service with a 
 company under such conditions. As to the view of the 
 Government of India, that large companies might be politically 
 dangerous or embarrassing to Government because of the re- 
 sponsibility for interest, he pointed out that if the Government 
 became the owners of the railways it would be by means of 
 borrowed capital, -and that the responsibiUty would only be in 
 another form. Generally, this despatch held that the terms of 
 the contract with the Oudh and Rahilkund Company (formerly 
 Indian Branch Railway Company) had no important defect, 
 and that if more stringent conditions had been enforced higher 
 terms would have been needed ; while in the opinion of the 
 Secretary of State, the political and military advantages of the 
 Indian railways would have been so far cheaply purchased 
 even had they been more costly, and that he was not disposed 
 to hinder their extension by the exaction of too onerous terms. 
 This divergence of opinion between the Home and Indian 
 Government, on issues which the latter then thought of great 
 importance, led, there can be little doubt, to a rapid develop- 
 ment of the views of the latter as regards the construction and 
 administration of railways by the direct agency of the State. 
 A tendency had already been shown in this direction in 
 previous communications, and had been so far favoured by 
 the Secretary of State as to lead him to agree to this policy 
 being adopted for political lines only. Before leaving India, 
 in 1869, Lord Lawrence wrote a minute, dated 9th January of 
 that year, in which he boldly and most ably advocated the 
 relinquishment of the guarantee system, and the construction 
 by Government itself of all future railway extensions. His 
 views were endorsed by his successor. Lord Mayo, and 
 accepted by the Duke of Argyll, then Secretary of State. A 
 more detailed account of this phase of railway policy will be 
 found in another chapter, and it is sufficient to say that for 
 the next twelve years the guarantee system lay in abeyance, 
 so far at least as the initiation of an)- new company. The
 
 GUARANTEES AND ASSISTANCE 77 
 
 introduction of the metre gauge dates from this period, and is 
 dealt with in the chapter on this subject. 
 
 Between the years 1874-79 a series of disastrous famines 
 had visited India, and on these followed the Afghan War. 
 The great difficulties experienced in sending food with 
 sufficient rapidity for the relief of scarcity, and of moving 
 troops towards the frontier from our military centres, led the 
 Government of India to the conclusion that more rapid pro- 
 gress was needed in railway extension, and that it might be 
 possible to supplement the efforts of the State by enlisting the 
 aid of private enterprise again, but without the assistance of a 
 guarantee. In January 1881 the Marquis of Hartington (now 
 Duke of Devonshire), then Secretary of State for India, ad- 
 dressed a despatch to the Government of India, in which this 
 policy was approved, on the basis of capital being subscribed 
 " on the exclusive security of the success of the undertaking " ; 
 but that if this should prove to be impracticable, it might 
 become desirable to consider whether some modified form of 
 guarantee could be adopted, such as, with respect to time and 
 to the rate of the guarantee, would give the shareholders "a 
 real interest in the efficient and economical administration of 
 the railway." This was in effect the proposal of Major E. 
 Baring (now Lord Cromer), who was then Financial Member 
 of the Viceroy's Council. It happened that the time was 
 favourable to this new departure. The credit of India was 
 good, money was plentiful in Europe, and capitalists were 
 ready to take up investments in almost any direction. The 
 result of this was that a scheme of apparently a very promis- 
 ing nature, in Bengal, was taken up on the above basis by an 
 eminent firm of financiers, and the Bengal Central Railway 
 Company was formed in London in 1881. Before describing 
 the terms of the agreement with the Secretary of State, it will 
 be advisable to go back a little and notice a very important 
 step which had just previously been taken in regard to the 
 largest of the guaranteed companies.
 
 78 RAIL\VA^■ POLICY IN INDIA 
 
 The Government of India had the right in 1879, under the 
 contract with the East Indian Railway Company, to acquire 
 that line, and it was decided to carry out this operation. The 
 negotiations terminated in an arrangement by which the 
 Government availed itself of the right to purchase the whole 
 undertaking by the grant of annuities, and made over the 
 working of the line to a new company on a new contract. 
 This contract is dated the 22nd December 1879, and the 
 terms of the purchase were based mainly on the provisions 
 of the original contract. The capital stock amounted to 
 ^26,200,000, and the company was entitled to be paid either 
 in cash, at the average price of the stock during the three 
 previous years, or by an annuity for seventy-three years equiva- 
 lent to it. The average price of the stock was taken at £,12^, 
 so that the total amount, if payable in cash, amotmted to 
 ^32,750,000. The Government, however, preferred to make 
 the payment in the shape of an annuity, and one of ^5 : 1 2 : 6 
 was allowed in lieu of the ;!^i25. At the same time the 
 company was allowed to defer a portion, leaving ^6,550,000 
 in the hands of Ciovernment to be regarded as the capital of 
 the new company, on which they receive 4 per cent interest in 
 the first place ; and secondly, one-fifth of the net profits after 
 providing for working expenses and other charges. Under 
 this arrangement the Government secured an agency for work- 
 ing the line which had been eminently successful in the past, 
 and in giving up one-fifth of the net profits to the new com- 
 pany it was considered that the line was " likely to yield more 
 satisfactory results than the best conceivable official manage- 
 ment without that stimulus." The arrangement, moreover, had 
 the ijrominent advantage of redeeming the whole cost of the 
 line in a period of seventy-three years. Under the new con- 
 tract the (Government has full powers of control, the company 
 being bound to work and maintain the whole system to the 
 satisfaction of the Government, to give running powers for the 
 stock of other lines, and to construct auxiliary or l)ranch lines
 
 GUARANTEES AND ASSISTANCE 
 
 79 
 
 upon terms to be agreed upon. The term of this contract is 
 for fifty years, but the Secretary of State or the company may 
 terminate it at the end of the twentieth, or at the end of any 
 succeeding fifth year, on giving two years' clear notice. 
 
 It may be well to notice briefly the price that the State has 
 had to pay (in the shape of one-fifth of the net profits of this 
 concern) by availing itself of the agency of the new company 
 in its administration. The following table shows the sum paid 
 yearly to the deferred annuitants, and the rate per cent re- 
 ceived by them, including the 4 per cent stipulated under the 
 contract : — 
 
 Year. 
 
 Amount in Rx.l 
 
 paid as Fifth 
 
 Share of Net 
 
 Profits. 
 
 Rate per cent in 
 
 Sterhng received 
 
 by Deferred 
 
 Annuitants. 
 
 1880 
 1881 
 1882 
 1883 
 1884 
 1885 
 1886 
 1887 
 1888 
 1889 
 1890 
 189I 
 
 
 
 
 
 Rx. 
 177,269 
 206,386 
 178,807 
 
 210,772 
 129,298 
 178,229 
 159,593 
 173,477 
 127,834 
 91,534 
 114,258 
 275,021 
 
 £. s. d. 
 646 
 6 12 4 
 646 
 
 6 12 6 
 
 5 II 5 
 600 
 5 16 
 
 5 17 
 566 
 506 
 560 
 
 6 17 3 
 
 Average . 
 
 168,540 
 
 5 19 21 
 
 The Government of India has thus paid on the average the 
 sum of Rx. 168,540 yearly on the assumption that a Board of 
 Directors in London is better able to work the line, and to 
 make it more fully successful than if worked by its own rail- 
 way administration in India, from which, as it happens, the 
 present principal officers of the company have been obtained. 
 This question need not here be discussed. It will be referred 
 to in a subsequent chapter. 
 
 ^ Rx. represents conventional sterling at ten rupees to the pound.
 
 So RAILWAY POLICY IN INDIA 
 
 Reverting to the scheme of the Bengal Central Railway, it 
 may be mentioned that it was based on surveys and reports 
 prepared by Government officers, from which the prospects of 
 the line were shown, as it ultimately proved, too confidently, to 
 be exceptionally good. The prospectus of the promoters 
 adopted the facts and figures of the Government reports, which 
 were made public without reservation, and on the faith of these 
 a Company was formed as stated, in 1881, to carry out tlie 
 scheme, the money being subscribed twice over. The terms 
 of the agreement with the Secretary of State were briefly as 
 follows : — The direction and location of the line to be subject 
 to the approval of Government, and the general character of the 
 works to conform with the established standards of Indian 
 broad gauge lines. Land to be given free of rent for ninety- 
 nine years. The Secretary of State to pay 4 per cent on the 
 capital deposited with him until withdrawn for the purposes of 
 the Company ; and until the opening of the " priniary " under- 
 taking throughout, or until June 1886, the Secretary of State to 
 advance to the Company such sums as, together with the net 
 earnings of the line, should give the company 4 per cent on the 
 capital withdrawn for expenditure. All sums so advanced to 
 be repaid with simple interest at 4 per cent by appropriation of 
 half the net earnings above 5 per cent on the capital. The 
 Secretary of State to have power to purchase the line and its 
 equipment at the end of thirty years, or fifty years, from the 
 ist January 1882, on giving one year's notice, and paying ^^125 
 for each ^100 of stock. At the end of ninety-nine years the 
 works and buildings of the line to become the property of 
 the Secretary of State, who should pay the value of the rolling 
 stock and movable property. Rates and fares to be within a 
 maximum to be fixed by Government, and in case of failure to 
 run at least one train a day, the Government to have power to 
 take possession on repayment of the capital expended. Until 
 all advances had been repaid by the Company their accounts 
 to \)Q audited by an officer appointed by Government.
 
 GUARANTEES AND ASSISTANCE 8i 
 
 The Government of India was informed of this agreement- by 
 a despatch from the Secretary of State dated nth August 1881, 
 in which it was stated that the aim in the negotiations for 
 the contract had been "to avoid all unnecessary interference 
 with or control over the affairs of the Company, and to secure 
 for the Government only such powers of supervision as will 
 protect the interests of the State in respect of the power of 
 purchase, and the repayment of the advances for interest made 
 while the line is being constructed." It was expected that this 
 railway would be the forerunner of many to be launched on 
 similar terms, and indeed had the anticipated traffic on the 
 line been even approximately realised, this expectation might 
 have been fulfilled. Unfortunately, however, for both the 
 Government and the Company, the line turned out to have 
 been misjudged as a lucrative one, and its ill success from the 
 first and subsequent troubles were a source of serious em- 
 barrassment to both parties, and eventually destroyed the 
 confidence of investors in lines which were not supported by 
 more tangible forms of assistance. The later phase of the 
 Company was that the Government had to submit to a new con- 
 tract (in 1887), granting a sterling guarantee of 3I per cent on 
 the capital expended, or likely to be expended, while the sum 
 due for arrears of interest was cancelled. Shortly after the 
 launching of this Company another, the Rahilkund and 
 Kumaon Railway, was started on a similar basis, and in 
 1882 a larger concern, the Bengal and North- Western Rail- 
 way, was floated without guarantee, the Government giving the 
 land and allowing 4 per cent to be paid from capital for a 
 period not exceeding five years. The shares of both of these 
 concerns were taken up readily at first, though ere long fell 
 in price ; but the energy and ability of the Company's agent 
 in India and the absorption by the latter of the Tirhoot State 
 Railway has completely changed their position, and at date 
 the shares are at a considerable premium.^ 
 
 ^ It should be mentioned that in the contract of the former of these lines 
 
 G
 
 82 RAILWAY POLICY IN INDIA 
 
 In accordance with the views already mentioned, a despatch 
 was sent from the Government of India, in July i88i,^ to the 
 Secretary of State, in which the urgent need of enlisting private 
 enterprise in Indian railways was insisted on, the then 
 financial position of the country showing that there seemed no 
 hope of it being possible to carry out all the needed extensions 
 to protect the country from famine by direct Government 
 agency, and for such projects as were approved, it was proposed 
 to give "a safe and reasonable guarantee," i.e. limited in 
 amount and duration. It was considered that each concession 
 should be dealt with on its own merits, so that there should be 
 the least possible burden on the finances, and at the same time 
 to give companies the greatest possible interest in the working 
 of their lines ; while a preference was indicated in favour of a 
 low rate of interest for a longer time than for a high rate for a 
 shorter term. The first important result of this change of 
 policy was the creation in 1882 — the contract being dated the 
 I St of June of that year — of the Southern Mahratta Railway 
 Company, which was to take over works already commenced 
 in the Deccan for famine protection, and to carry out a 
 large system of metre gauge lines designed for this object. 
 The contract of this Company with the Secretary of State was 
 on an essentially new basis, and except in one important 
 particular, to be mentioned hereafter, may be regarded as the 
 prototype of subsequent agreements of the same nature. It 
 embodies, in fact, two distinct functions for the Company. On 
 the one hand the Company is an agency for raising a certain 
 sum of money, viz. three millions sterling, for the Secretary of 
 State, on which he guarantees interest, during a fixed period for 
 construction of 4 per cent, and thereafter of 3?, per cent. 
 This sum was to be made over to the Secretary of State, and 
 
 a small subsidy of Rs. 40,000 yearly is given by the State, and in both 
 contracts the Government shares equally with the Companies in net profits 
 when the line has paid 6 per cent to the shareholders. 
 ^ Despatch No. 92, Railw.ay, of 22nd July 1S81.
 
 GUARANTEES AND ASSISTANCE 83 
 
 in the words of the contract, " all moneys paid by the Company 
 under this section shall belong absolutely to the Secretary 
 of State, who shall not be deemed a debtor to the Company in 
 respect thereof." The above-mentioned sum was in effect 
 a loan raised by the Company for the Secretary of State on a 
 guarantee of interest. Subsequent clauses of the contract 
 stipulate that the Company shall construct certain railways, and 
 that for these purposes the Secretary of State shall provide the 
 requisite funds (Clause 29), and that all receipts whatsoever of 
 the Company, exclusive of the interest payable on the capital 
 raised by it, should be paid into a Government Treasury. 
 Having constructed the lines, the Company (although it is not 
 specifically so stated in the contract) was to work them, and 
 from the net earnings (Clause 42) three-fourths were to be 
 taken by the Government and one-fourth by the Company. 
 On this point it is to be particularly noticed that the above 
 clause contains no condition for a first charge against gross 
 earnings to provide for interest on capital paid by the Secretary 
 of State ; and that the Government has to reimburse itself on 
 this account from the three-fourths' share of the net earnings of 
 the line. This perhaps too liberal condition has not been 
 repeated in subsequent agreements with other lines, it being 
 stipulated that net earnings shall mean that gross earnings have 
 been first charged with sums due for interest paid by the 
 Secretary of State on the capital raised by the Company. The 
 justification for the concession made to the Southern Mahratta 
 is to be found in the fact that the lines to be made by it were 
 essentially for famine protection, that they could not be 
 expected to be remunerative for many years (they have not yet 
 paid 3 per cent), and that the money loss to the State was to be 
 accepted as the necessary price for securing the protection of 
 certain large districts from famine. This system of railways is 
 in fact State property, the Company being merely an agency for 
 working it under stringent conditions as to maintenance, super- 
 vision, and power over rates and fares.
 
 84 RAILWAY POLICY IN INDIA 
 
 In 1 883 another new departure was made in assisting private 
 enterprise by granting to a small concern, the Tarkessur Railway 
 Company, a very favourable working arrangement for a branch 
 to be made without guarantee on the capital. This branch, 
 twenty-two miles in length, was to take off from the East 
 Indian Railway (a State line), and the nature of the agreement 
 accorded to the Company is practically that the line is worked 
 and maintained by and at the percentage of working expenses 
 of the home line, and of the net receipts one-fifth is taken by 
 the working company and four-fifths paid to the Tarkessur 
 Company, less a charge of 5 per cent on the gross receipts for 
 use of rolling stock. This small Company has been eminently 
 successful, but its success has been due to exceptional circum- 
 stances, viz. firstly, to the very favourable terms for working ; 
 secondly, to the unusually heavy passenger traffic on it, and 
 thirdly, to it having been a very cheap line to construct. Its 
 promptly profitable career has, however, given a great impulse 
 to this form of State assistance, and several other schemes 
 have been proposed, and one important one, the Delhi- 
 Umballa-Kalha Railway, carried out on similar terms, while 
 later on, as will be noticed subsequently, this has become the 
 recognised basis for assistance in the construction of branch 
 lines by independent companies. 
 
 Two projects of great importance had been put down in the 
 list of " protective " famine lines to be carried out, if possible, 
 by private enterprise. One was the Bengal - Nagpore line, 
 running from Nagpore through a highly productive part of the 
 Central Provinces, to a point (Assensale) on the East Indian 
 Railway, and the other a system of lines through Central India 
 with junctions at Agra and Cawnpore, and terminating on the 
 Great Indian Peninsula Railway at Itarsi. Negotiations for 
 placing these schemes in the hands of companies extended over 
 a considerable time, and eventually, viz. in October 1885, a con- 
 tract was executed with the Indian Midland Railway Company 
 for the latter of these projects. The terms of the contract were
 
 GUARANTEES AND ASSISTANCE 85 
 
 generally similar to those of the Southern Mahratta Railway 
 above referred to, the Company being the agents for raising a 
 loan for the Secretary of State, and at the same time allowed 
 to construct and work the lines mentioned in the contract. 
 The rate of interest on the capital raised was, however, in- 
 creased to 4 per cent for the whole period of the contract ; but 
 the first charge on the earnings, after paying working expenses, 
 is devoted towards payment of interest on the capital, and the 
 net earnings over and above this are, in the first place, to be 
 applied to the repayment of interest not repaid, and of the 
 residue, if any, of the surplus, three-fourths were to be paid to 
 the Secretary of State and one-fourth to the Company, " free 
 from all control." All money so payable to the Company was 
 to be paid in India, and the receipts of a year, and not those of 
 the half year, were to be the basis of calculation. It was, more- 
 over, distinctly stipulated (Clause 56) that the line as and when 
 completed was the property of the State, together with all the 
 movable property of the concern. Stringent clauses have been 
 inserted as to supervision, the maintenance of the line, powers 
 over rates and fares, the audit of accounts, the definition of 
 " working expenses," the working of other lines, the grant of 
 running powers to other lines and other facilities, and other 
 minor conditions of control. The Secretary has power to ter- 
 minate the contract at the end of the year 1910, or of any 
 succeeding tenth year, on twelve months' previous notice, or 
 by default on six months' notice. On termination of the 
 contract, the Secretary of State is merely bound to repay such 
 capital as shall have been provided by the Company, and in such 
 case the Company is bound to relinquish possession of the 
 whole line, land, and movable property of the concern. The 
 subsequent contract (in March 1887) with the Bengal-Nagpore 
 Railway Company was couched in precisely similar terms. 
 
 Both the above-mentioned Companies, and the Southern 
 Mahratta, have, perhaps for want of a better means of defin- 
 ing their character, been termed "assisted" companies, as
 
 86 RAILWAY POLICY IN INDIA 
 
 opposed to the "guaranteed" companies; but as will be seen, 
 the term "assisted" does not propejly explain their relation 
 to the Government. Their contracts might, in fact, have been 
 in two documents instead of in one — the first representing the 
 terms on which the Companies raised a certain sum of money 
 for the Secretary of State for India at a certain rate of interest, 
 and the other being an agreement for constructing certain lines, 
 and subsequently working them on lease for a definite period, 
 and on certain conditions of copartnership with the State. 
 The railways constructed by these Companies have been 
 carried out by them merely as agents and disbursers for 
 the Government. The lines belong to the Government. 
 As regards the capital raised, these Companies are as 
 much "guaranteed" as the older ones; but, on the other 
 hand, the terms under which they work the lines are greatly 
 more advantageous to the State than those of the older con- 
 tracts under the guarantee. It may be added, that in each 
 case the Government could have raised the necessary funds 
 itself at a considerably lower rate of interest, but was debarred 
 from this course by the restriction of its borrowing powers by 
 the House of Commons Committee, referred to elsewhere. 
 There were, moreover, other causes which made it appear 
 desirable to entrust these lines to what has been called 
 "private enterprise." The expression "enterprise" is scarcely 
 applicable in such a case, if it is intended to convey an implica- 
 tion of risk. There could be but little risk in lending money 
 to the Government of India at 4 per cent, together with a 
 definite prospect of an addition to this in the future from 
 surplus profits ; while the high price the shares have steadily 
 held in the London market effectually disposes of any such 
 view of the investment. 
 
 The financial stress due to exchange, to the heavy outlay 
 imposed on the country for frontier defences, and other causes, 
 became so serious in 1885 that the lines above mentioned 
 would certainly have been deferred much longer had it not
 
 GUARANTEES AND ASSISTANCE 87 
 
 been that they were regarded as being of the greatest importance 
 as famine protective works. The negotiations with the pro- 
 moters of the Bengal-Nagpore Railway extended over some- 
 thing Hke four years, owing partly to the impossibility of 
 meeting the terms required by the Company in the face of the 
 existing obligations of the Government.^ The urgent necessity 
 for the line led, however, in the end to the acceptance of the 
 new burden ; but it was then practically acknowledged that India 
 could no longer afford to face the cost of further sterling guar- 
 antees, and that unless some other means could be found of 
 attracting English capital, railway extension in India must for 
 the future depend on what could be effected from the annual 
 State loan for Public Works. The solution of this difficulty 
 was offered in 1889, by a proposal to make a line 162 miles 
 in length in connection with the East Indian Railway, between 
 Delhi and Kalka, on terms based on those above referred to 
 of the Tarkessur Railway, but embodying conditions giving 
 greater control to the State and a share in surplus receipts. 
 The contract with the Secretary of State stipulates that the 
 Company shall make the line on being given land free, and 
 that the Government of India will undertake to work it and 
 maintain it at 50 per cent of the gross receipts. A second 
 agreement made between the Secretary of State and the East 
 Indian Railway Company (which is working a line now be- 
 longing to the State) provides that this Company shall work 
 and maintain the Delhi-Kalka Railway for 48 per cent of the 
 gross receipts, which shall include the provision of rolling 
 stock. The State thus receives 2 per cent of the gross receipts 
 as a direct contribution, in addition to its share in the surplus 
 profits from the East Indian Railway. The 2 per cent may 
 be held to represent the cost of Government supervision and 
 control. 
 
 It is as yet too soon to estimate the future of this form of 
 
 1 Also greatly to discussions with the Secretary of State as to details of 
 construction.
 
 88 RAILWAY POLICY IN INDIA 
 
 assistance to private enterprise in Indian railways, but so far 
 as can be judged from the present position in the market of 
 the Delhi-Kalka shares there does not appear to be much 
 UkeUhood that it will offer sufficient attraction in its present 
 shape for the investment of English capital. The primary 
 conditions of the success of a project, started on similar terms, 
 must be in the careful and judicious selection of the line on 
 the advice of persons intimately acquainted with the tendencies 
 of trade in India, and with the details of railway working, so 
 as to be able to afford a close and reliable estimate of receipts 
 and of the cost of working the traffic. Another almost equally 
 important condition is, that there shall be no ambiguity or 
 obscurity in the provisions of the agreements, especially when, 
 as in the case of the Delhi-Kalka line, or indeed in any other 
 started on similar terms, those agreements are threefold, or 
 between three parties, whose interests are not in complete 
 harmony. Their interests are, in fact, in line, so to speak, in 
 one direction only, viz. in making the new railway the most 
 effective and remunerative dividend - paying machine. But 
 with this aim in view both the State and the working company 
 show a not altogether unreasonable inclination to force the 
 new company to provide funds for the improvement of the 
 line— a course for which the shareholders have not shown 
 much appreciation, and hence difficulties have arisen which 
 unfortunately have tended to throw some discredit on the 
 arrangement. 
 
 For some years previously a large and important scheme 
 had been under investigation for a system of metre gauge 
 railways, on the east of the Bramaputra river, with the object 
 of connecting Assam with the old but now rising port of 
 Chittagong on the Bay of Bengal. As soon as the project 
 was complete, if not before then, the Government of India 
 was approached by promoters under the intention of forming 
 a company for the carrying out and working of these lines. 
 I!y this time the Government had found its financial position
 
 GUARANTEES AND ASSISTANCE 89 
 
 SO seriously affected by the loss in exchange, and the outlook 
 in the future so unpromising, that it had been forced to the 
 decision to refuse to entertain any proposals which involved 
 a sterling guarantee. In consequence of this, endeavours 
 were made to obtain capital for the scheme in London on the 
 basis of the concession of waste lands along the line, and the 
 grant of mining rights in an area adjoining the projected rail- 
 way, which was supposed to be rich in minerals, more especially 
 coal. These attempts, however, were not successful, it being 
 impossible to satisfy investors or financiers on the conditions im- 
 posed on this form of assistance, and it was found necessary to 
 again consider the grant of a guarantee. In the meanwhile, the 
 Secretary of State had received offers in other directions, and 
 eventually, though in opposition to the views of the Govern- 
 ment of India, a company was formed in London in 1892 
 under an agreement of a somewhat novel character. Pre- 
 mising that the cost of the whole scheme might be about 
 5^ millions sterling, the company was to raise the sum of 
 1 1 millions in shares of ;^io. On this the Secretary of State 
 guarantees interest at 3 J- per cent during construction, or until 
 June 1898, and thereafter at 3 per cent until the determina- 
 tion of the contract. The balance of the funds necessary for 
 constructing the line is to be found by the Secretary of State, 
 and net surplus profits are to be divided between the Govern- 
 ment and the company in proportion to the capital supplied 
 by each. Under the contract the line belongs to the State. 
 The capital account is to be debited with all sums advanced 
 as interest by the Secretary of State, and, after deductions for 
 contributions to a provident fund, the interest charges are to 
 be a first charge on the net earnings of the line. 
 
 New conditions, which have been for some time under con- 
 sideration, have recently been issued ^ by the Government, for 
 encouraging investment in the construction of branch and 
 feeder lines, on the basis of their "being worked by the railway 
 
 1 Resolution No. 924, Railway Company, of 15th September 1S93.
 
 90 RAILWAY POLICY IN INDIA 
 
 with which they are connected. The main features of these 
 conditions are as follows: — (i) The free use of such land as 
 may be required for the undertaking ; (2) the provision of 
 rolling stock, and the maintenance and working of the new 
 lines by the main line administrations ; (3) the free use of 
 surveys made at State expense ; (4) the carriage of stores 
 and materials on favourable terms ; and (5) the grant of a 
 limited rebate from the main line earnings towards ensuring 
 to the shareholders in the new lines a dividend of 4 per cent 
 per annum on approved capital expenditure. In addition to 
 this, it is proposed, if legal powers can be obtained, as to 
 which there is not likely to be any difficulty, to allow interest 
 to be paid from capital during construction at the same rate, 
 viz. 4 per cent. In offering these conditions, the Government 
 of India has distinctly laid down that no concession will be 
 given for any project unless it is shown to have reasonable 
 prospect of financial success, and in any case all plans and 
 estimates must be approved by the Government. These terms 
 practically ensure a minimum return of 4 per cent on capital 
 invested in such lines, while there is no restriction as to 
 the maximum return, or any stipulation as to division of 
 surplus profits over and above a certain figure with the State. 
 It is consequently anticipated, and with good reason, that such 
 concessions will offer considerable attraction for English 
 capital, and in a form which involves no risk whatever. It 
 should be added that the Government reserves the right of 
 purchase of such lines at the expiration of twenty-one years, 
 and thereafter at successive intervals of ten years, at twenty- 
 five years' purchase, based on the average net earnings for the 
 five years immediately preceding the purchase, provided that 
 the price shall not exceed the total , capital expenditure by 
 more than 20 per cent, and shall not be less than the capital 
 expenditure. Purchase may be also made at the expiration of 
 fifty years on payment of the actual capital outlay.
 
 CHAPTER III 
 
 STATE CONSTRUCTION AND ADMINISTRATION 
 
 It was shown in the first chapter that the construction and 
 workings of railways in India was at first entrusted to guaranteed 
 companies, and that it was not until the year 1867, under the 
 Viceroyalty of Lord Lawrence, that the objections to their 
 policy were distinctly formulated and seriously discussed. 
 Endeavours had been previously made to induce the invest- 
 ment of English capital in Indian railway schemes on less 
 onerous conditions than that of a guarantee, in the form either 
 of a lump sum or annual mileage subsidies, accompanied by 
 the free grant of land. It was soon found, however, that only 
 a feeble response was to be expected to such conditions, and 
 in such cases as took shape, notably in that of the Indian 
 Branch Railway, it eventually became necessary to revert to the 
 guarantee as the only means of securing the completion of the 
 works. The cost of the guaranteed railways up to this time 
 had, for sundry reasons, largely exceeded the original estimates, 
 while the anticipations of traffic had as yet not been realised, 
 and with the result that there was a steadily increasing charge 
 on the revenues on account of interest. It thus became 
 urgently necessary for the Government to review its position, 
 and, if the requirements of the country in the extension of the 
 railway system were to be fulfilled, to determine the nature of 
 the agency by which this should be effected, and the financial 
 measures which would be involved. In December 1867 a
 
 92 RAILWAY POLICY IN INDIA 
 
 despatch on the subject was submitted to the Secretary of 
 State for India,^ accompanied by minutes by the Viceroy and 
 the members of Council, to which was added an able and 
 exhaustive note on the guarantee system by Captain (now 
 General) Sir E. C. S. Williams, R.E., and also a note by 
 Colonel (now General) C. H. Dickens, K..A., then Secretary to 
 the Government of India in the Public AVorks Department. 
 General Williams' note would deserve lengthy notice. It 
 discussed the advantages and disadvantages of the guaranteed 
 system in India, sketched the systems under which railways 
 had been promoted by the State in other countries, submitted 
 proposals for a new system for encouraging railways by State 
 aid in India, and referred, though in brief and cautious terms, 
 to the desirability of an experiment being made in the con- 
 struction of railways by direct State agency — a proposal which, 
 although at the time wholly opposed to authoritative opinion 
 in India, was destined to see early fruition. Neither in Lord 
 Lawrence's minute, nor in those of any of his Council, is there 
 any mention of this policy ; all that was insisted on, and with 
 practical unanimity, was that action should be taken towards 
 the ultimate acquisition by the State of all the railways, and 
 that this aim should be steadily kept in view. 
 
 In replying to this, in two despatches of the i6th and 
 24th January 1868, the Secretary of State for India (then Sir 
 Stafford Northcote) dealt with the question of State construction 
 in the following terms : "You have recently come to the con- 
 clusion that the guarantee system should, so far as regards 
 irrigation works, be superseded by a system of direct Govern- 
 ment agency. The reasons for this decision, however, are not 
 applicable in the case of railways, as the question of possible 
 interference with the land revenue does not here arise. At the 
 same time, there are other considerations which ought not to 
 be lost sight of. The main objections to guarantees, in con- 
 nection with railways, are that they tend to weaken the ordinary 
 
 ^ Despatch No. 125, Railway, of 3nl December 1S67.
 
 STATE CONSTRUCTION AND ADMINISTRATION 93 
 
 motives to efficient management and superintendence, and re- 
 cent disclosures as to the state of the works on the Great Indian 
 Peninsula line afford new proofs that there is much room for 
 apprehension on this score. I am therefore anxious to know 
 whether any, or what additional precautions, can in your 
 opinion advisably be taken to secure good workmanship under 
 the guarantee system, which, in spite of its obvious defects in 
 certain particulars, I am disposed to regard as upon the whole 
 the one best adapted for the extension of one class of railways, 
 viz. the commercial. For the political class, I am inclined to 
 think that direct Government agency might be preferable." 
 This declaration did not seem likely to advance matters or to 
 lead to any immediate or material change of policy ; but later 
 on, in the same year,^ the Government of India in referring to 
 negotiations then in progress with certain companies, in which 
 some important points in connection with State control were 
 involved, expressed a hope that the question of direct action by 
 the State would be regarded in a broad light, and not merely 
 from that relating to its bearing on the money market. They 
 said that " such a point of view is no doubt important, but at 
 present its importance is in some sense of a minor order. 
 There is no doubt that the Government could raise money for 
 railway undertakings and make all other necessary arrange- 
 ments without the intervention of companies at all." They also 
 pointed out that in the arrangements with capitalists, and in 
 the details of contracts, the Government of India were not given 
 sufficient opportunities of offering opinions, while the practical 
 working of them had to be carried out in India. 
 
 A change in the Ministry placed the Duke of Argyll in 
 power as Secretary of State early in 1869, and in March of 
 that year the Government of India addressed a despatch to 
 the Home Government,- in which they openly and strongly 
 advocated direct construction by the State. Lord Mayo had 
 
 1 Despatch No. 122, Railway, of 15th August 1868, to the Secretary of 
 State. 
 
 - Despatch No. 24, Railway, of 15th March 1869.
 
 94 RAILWAY POLICY IX INDIA 
 
 then became Viceroy ; but before leaving India, Lord Lawrence 
 had recorded a minute, dated 9th January 1869, in which he 
 showed his complete conversion to this policy. In this he urged, 
 that under the guarantee system of construction, the Government 
 was liable to a permanent and probably increasing charge for 
 interest, the burden of which was accentuated by the fact that 
 under the existing arrangements the Government could derive 
 no profit from the most successful railway, while it bore the 
 whole loss of those which did not pay ; that there was, in fact, 
 no set-off of profit against loss in the Government share in 
 these transactions. " The whole profit goes to the companies, 
 and the whole loss to the Government." He said that he was 
 " thus led to ask what are the reasons which should induce the 
 Government to accept the position in which it is placed by the 
 present system of railway construction ? . . . Can it be really 
 essential for satisfactory progress that such a distribution of 
 losses and gains should continue, and is there any sufficient 
 ground for placing the State in so false a financial relation to 
 the construction of railways as that under which the former 
 must bear all loss, and cannot possibly obtain a set-off by any 
 gain ? These questions involve the discussion of the character 
 of the agreements which have till now been entered into with 
 companies for the construction of railways in India, and the 
 policy under which these works are entrusted to companies in 
 preference to being executed by the direct agency of the State." 
 He urged that the issue was, whether the agency of com- 
 panies afforded any such special convenience or advantage to 
 the State as to justify the Government in giving them terms 
 which were alike unsatisfactory in a financial and administrative 
 point of view, and that the only possible reply could be in the 
 negative. He foresaw that a doubt seemed likely to be thrown 
 on the expediency of direct Government action as regards the 
 presumed incapacity of the Government to carry out and 
 manage such undertakings. But on this point he, at least, felt 
 no hesitation. He pointed out that the history, so far, of the
 
 STATE CONSTRUCTION AND ADMINISTRATION 95 
 
 operations of guaranteed companies had given illustrations of 
 management as bad and as extravagant as anything which the 
 worst opponent of Government agency could suggest as likely 
 to result from that system, and that the best conducted and 
 cheapest of these lines had been carried out entirely under 
 departmental management, i.e. without the intervention of 
 contractors, in a way that, in short, differed in no respect from 
 that which was followed on Government works under the 
 Public Works Department. With reference to the Indian 
 share of the work, he was satisfied that " under a reasonable 
 system " the Government could at least secure as great ability 
 to carry out the works, and with no greater outlay. The 
 experience of twenty years under the guarantee system had 
 shown, in the opinion of Lord Lawrence, that there was no 
 reason to expect that the Government could derive any 
 financial advantage in obtaining the capital for railways 
 through the agency of companies, unless they could carry 
 out the works and manage the lines very much more cheaply 
 than could be done by the Government through its own 
 agency. His own view was that the latter course would be the 
 most economical to the State, and that the Government had 
 already at its disposal a sufficient number of officers who were 
 both qualified in railway work and in local experience ; while 
 he saw no adequate reason for supposing that if Government 
 deliberately borrowed money for railway purposes only, there 
 need be any necessity for stopping operations on every occasion 
 of financial difficulty. 
 
 The despatch above referred to, from the Government of 
 India, was practically based on Lord Lawrence's minute. He 
 said, " We assent to these views, and to the arguments on which 
 they are based. The conclusion opposed to direct Govern- 
 ment action in such matters, which has been most commonly 
 adopted till the last few years was doubtless justified by the 
 circumstances of the time in which it was formed, and we are 
 very far from questioning the great value of the work actually
 
 96 RAILWAY POLICY IN INDIA 
 
 performed by companies in the prosecution of railways in a 
 period of undoubted difficulty. But the whole conditions of 
 the problem have since changed, and in this, as in numerous 
 other matters of great public importance, modified methods of 
 action are necessary to meet the altered circumstances of the 
 time. . . . Although we thus desire to substitute as far as 
 possible, in the future extension of railways, the direct action 
 of the State for that of companies, it is yet proper that we 
 should consider the cases in which companies may, from any 
 causes, be again entrusted with the construction of new lines." 
 They pointed out that there were two fundamental conditions 
 which it was desirable to impose on a company, viz. the 
 limitation of the financial responsibility of the Government, 
 and the protection of the public against the possible evils of 
 an authorised monopoly. The first mainly affected the opera- 
 tions of construction, and the second those of working the 
 lines. The key-note of the whole despatch was that unless 
 railways could be constructed more cheaply than had been the 
 case hitherto, further extension would soon have to be stopped, 
 or the finances of the country become seriously disordered. 
 It insisted on the paramount importance of a very strict 
 limitation of first cost, and the views of the Government on 
 this point are worth quoting. "An extravagantly-constructed 
 railway is permanently a financial failure. To a poor country 
 like India this lesson is of exceptional importance. Here the 
 needful capital for railway construction can only be obtained 
 at the risk and under the guarantee of the State. An unsuc- 
 cessful railway is therefore a public burden. Resources which 
 might otherwise be applied to the extension of material or 
 administrative improvements are permanently diverted to pro 
 vide for the payment of interest on capital which has been 
 misapplied, and remains unproductive. Even in a country 
 of such extraordinary wealth and productive power as England 
 the wasteful expenditure of railway capital has become a 
 serious evil, and it may be affirmed with the most complete
 
 STATE CONSTRUCTION AND ADMINISTRATION 97 
 
 certainty that if India Cannot manage to provide itself with 
 railways which shall so far pay, or at least to cover the ordinary 
 rate of interest on the necessary capital, the progress of railways 
 must very soon be stopped, or the finances be brought into a 
 condition of extreme disorder." It was shown that the average 
 cost of Indian railways, single line, had up to that time reached 
 about £i'],ooo per mile, while the income of the very best 
 line had then barely risen to a figure sufficient to pay the 
 guaranteed interest, 5 per cent, and that the average was about 
 3 per cent. They pointed out, moreover, that the lines already 
 made, or in course of construction, occupied the best fields for 
 railway enterprise, and that it could not be expected that further 
 extensions then contemplated could do as well. They were 
 confident that by making suitable arrangements, the cost of 
 railways could be largely reduced ; that it was no longer 
 necessary to look to England for guidance in railway construc- 
 tion ; and that they might now, "with complete propriety, 
 claim the same degree of discretionary power in dealing with 
 the administration and construction of Indian railways as is 
 exercised in relation to all other branches of the administration 
 and all other classes of public works." They further urged 
 that the proposal to make over the profitable or " commercial " 
 lines to companies, and to leave the unprofitable or " political " 
 lines to the State was unfair and unpracticable, and concluded 
 by saying that unless the necessary conditions, as regards 
 economical construction and management, could be secured in 
 arrangements with companies, it was desirable that in the 
 future their agency should be altogether dispensed with for the 
 construction of Indian railways. 
 
 The Government of India addressed the Secretary of State 
 again on this subject in March 1869,^ drawing attention more 
 particularly to the serious liabilities which were being incurred 
 by the State under the system of guaranteed companies ; that 
 the State was bound to pay a fixed rate of interest to the 
 
 1 No. 28, of the 22nd March 1869. 
 H
 
 98 RAILWAY POLICY IN INDIA 
 
 shareholders, whatever the cost of the Hne, or whatever the char- 
 acter of the management might be ; and that while the Govern- 
 ment only was seriously interested in securing economy, no sub- 
 stantial co-operation in this direction was to be hoped for from 
 the companies. Attention was also drawn to a very serious 
 phase of the company system, viz. that the Government of 
 India was by degrees losing its power of control over them, in 
 so far that its decisions were not accepted as final in India, but 
 were habitually referred to the Boards of Direction in London. 
 The position of companies was compared with that of the 
 Government in plain terms. It was urged that the former 
 " have only to supply the capital, and to receive their interest 
 from the Government, whatever be the outlay, and whatever 
 be the results of the undertakings," while on the other hand, 
 the Government had " to pay the interest on the capital in full, 
 and to be satisfied with the partial set-off derived from the net 
 profits. To the shareholders it is comparatively unimportant 
 whether the first outlay is strictly confined to what is necessary 
 or not. Their capital is an investment, the return from which 
 is guaranteed under all circumstances ; and even, in some 
 cases, wasteful outlay may be directly advantageous to them, 
 as leading to the creation of a stock which may be sold at a 
 premium." This despatch reopened up the question of gauge, 
 and held that too much importance had been attached to uni- 
 formity in the case of a country like India, where the distances 
 were very great, and the centres of population far apart. For 
 passenger traffic in India the evil of a break of gauge was, they 
 considered, of no moment ; while in the case of goods traffic 
 the cost of transhipment between lines of different gauge would 
 not exceed the cost of transport over ten miles of railway, and 
 the practical inconvenience would amount to no more than 
 would be represented by this charge. The financial considera- 
 tions against the adoption of the broad gauge throughout the 
 country they held to be insuperable, but otherwise they would 
 have wished to adhere to a uniform gauge.
 
 STATE CONSTRUCTION AND ADMINISTRATION 99 
 
 The Duke of Argyll, then Secretary of State, rephed to this 
 on the 15th July 1869. He held that whatever may have been 
 the strength of the considerations which had led the Govern- 
 ment twenty years before to entrust the construction of railways 
 in India to companies under guarantee, he was prepared to 
 agree with the Government of India that the time had now 
 arrived to take up a fresh position and to " secure for itself the 
 full benefit of the credit which it lends, and of the cheaper 
 agencies which ought to be at its command." As a whole, the 
 proposals in the despatches above referred to were assented to, 
 and the necessary surveys ordered to be made forthwith. He 
 recognised, however, that the success of the proposals would 
 depend in great measure on the " character of the machinery " 
 created for the purpose of giving effect to them, and asked for 
 detail on this point. One important feature of this despatch was 
 in the acknowledgment of the inequality of the position between 
 the guaranteed companies and the Government, in the division 
 of net profits (above the guaranteed rate of interest), and in 
 the assent to the proposal of the Government of India, that in 
 future these profits should be divided with the Government, 
 and the right to require the repayment of guaranteed interest 
 should be abandoned. The various lines which had been 
 proposed by Government were reviewed in detail, and generally 
 approved, and those to be taken up in the first instance were 
 to be dealt with on their relative importance, and " by the 
 supply of labour to be obtained without detriment to agriculture, 
 or to the progress of other public works." 
 
 The very important question of the gauge for the extensions 
 of the railway system which were here contemplated is dealt 
 with at length in Chapter IV ; but it may be stated that while 
 the Government was prepared to carry out the trunk lines on 
 the broad gauge of 5^- feet, it proposed to make all subsidiary 
 lines on the gauge of one metre. Following out this idea, it 
 was then decided that the lines intended mainly for military 
 purposes, on the western and north-western frontiers, would
 
 loo RAILWAY POLICY IN INDIA 
 
 amply serve commercial and political demands if made on the 
 metre gauge. This was at first assented to by the Secretary of 
 State, but was strongly opposed by Lord Napier of Magdala, 
 then Commander-in-Chief. The decision of the Government 
 arrived at in 187 1 was, however, at first carried out, on both the 
 Indus Valley and the Punjab Northern Railways. Very strong 
 opposition was soon shown in England, and persistent represen- 
 tations were made to the India Office that no saving worthy of 
 consideration would result from the adoption of the narrower 
 gauge. To this agitation the Secretary of State (the Duke of 
 Argyll) deferred, and allowing the question to be reopened, the 
 Viceroy (Lord Northbrook) and his Council recommended 
 that both the lines above referred to should be made light 
 broad gauge, i.e. with rails of 60 lbs. to the yard, basing their 
 recommendations on the military and political bearings of the 
 case. Early in 1874 the Duke of Argyll, while urging that he 
 still considered that the metre gauge would have sufficed for 
 these lines, gave way to the arguments adduced, but proposed 
 a permanent way on the broad gauge of 45 lbs. to the yard. 
 To this the Government of India demurred, and on being 
 considered again by Lord Salisbury, who had then become 
 Secretary of State for India, the proposals of the Government 
 of India were accepted. A similar but less important con- 
 troversy took place at this time as to the gauge for the system 
 of railways which, passing through Rajputana, was to connect 
 Delhi with Bombay, but the metre gauge was eventually 
 adopted. 
 
 The original intention as to the character of these lines was, 
 that they should be cheaply, yet solidly constructed, and this 
 has been consistently and thoroughly adhered to. The 
 "pioneer" American line is, for many reasons, impossible in 
 India. The climate generally, the intensity of the seasons, the 
 profusion of vegetable and insect life, and the general want of 
 suitable timber, forbids, both on the score of first and of 
 ultimate cost, the rapid and temporary construction which in
 
 STATE CONSTRUCTION AND ADMINISTRATION loi 
 
 the Western States of America is equally possible and eco- 
 nomical. During the Viceroyalty of Lord Mayo an impression 
 became prevalent that if the American system could be adopted, 
 matters would get on faster and the money go farther, and the 
 Government was consequently led to engage the services of an 
 able and experienced American engineer, in order to ascertain 
 what amount of foundation there was for this view. After 
 remaining two or three years in the country this gentleman 
 (Mr. Miller) gave it as his opinion that the conditions of 
 railway construction in India differed entirely from those in the 
 United States, and that practically he had little or nothing to 
 object to as regards Indian methods or designs, which in fact 
 he readily adopted in the works he carried out in India. 
 
 The metre gauge lines were started with a formation width 
 (in bank) of 12 feet, increased subsequently to 14 feet, and 
 latterly to 16 feet, with 2 to i slopes, carefully trimmed and 
 grassed. The permanent way was laid at first with Vignolles 
 section rails of 36 lbs. to the yard, spiked to transverse wooden 
 sleepers, 6 feet long by 8 inches by 4 inches. Later on the 
 weight of rails was increased to 4i;| lbs. (steel), and for 
 roads with heavy traffic to 50 lbs. The State lines on the 
 broad or standard (5! feet) gauge were laid at first with a 
 60 lbs. rail, which was latterly increased to 75 lbs., and will 
 shortly be 85 lbs. as the standard, with 100 lbs. rails for heavy 
 inclines, on which engines of exceptional character are required. 
 In every case the lines have been unusually well ballasted — an 
 essential condition in a country where the heavy rainfall is 
 confined to ,four or five months in the year, and where timber 
 sleepers would be otherwise exposed to rapid destruction from 
 white ants. In view of the failures that occurred on one of the 
 earlier guaranteed lines, special care was taken in the design 
 and execution of masonry, and all girder-work was specially 
 designed to types for certain fixed spans, being of rivetted work 
 throughout, and all being rigorously tested before being passed 
 for traffic. On small spans the road was carried on transverse
 
 102 RAILWAY POLICY IN INDIA 
 
 sleepers, resting on the top flanges, and secured by hook-bolts. 
 The works at stations were reduced to a minimum, and were 
 in fact almost too cheap and incommodious. All the lines 
 were single, and at ordinary crossing stations a loop-siding and 
 short " lay-by " for loaded or damaged vehicles was all that was 
 provided. At first, none of the lines were fenced, and all 
 engines were consequently fitted with "cow-catchers." The 
 axle loads of metre gauge engines did not in the beginning 
 exceed 6 tons and that of waggons 4 tons, and both coaching 
 and goods stock was four-wheeled, and fitted with central buffer 
 and coupling combined. The minimum radius of curves was 
 fixed at 100 metres, or say 335 feet. Latterly, as will be seen 
 from the list of standard dimensions in the Appendix, the loads 
 have been increased, and the ordinary four-wheeled waggon now 
 carries 12 tons gross with a tare of about 3 tons, while bogie 
 stock is in use on many lines. The average distance between 
 stations averaged about 8 miles, and except at large stations 
 the whole of the station staff were natives. The lines were, 
 and still are worked under the " line clear " system, whereby 
 the station-master at say A cannot start a train to B until the 
 station-master at the latter has replied in the affirmative to a 
 telegram asking if the line is clear, and on receipt of this 
 message the fact is written on a form and handed to the driver 
 of the train to be despatched. Speeds on the metre gauge 
 were at first limited to 15 miles an hour, but at present mail 
 trains run between stations at about an average of 25 miles an 
 hour. On these trains European or Eurasian drivers are 
 generally employed ; but on goods and mixed trains natives 
 (mostly Mussulmans and Parsees) are now largely employed in 
 this capacity. They arc found to be perfectly competent within 
 a certain range, and while steady and sober to a far greater 
 degree than the European or Eurasian, their emoluments need 
 not be more than one-half of what is necessary for the European. 
 Their weakness lies in an insufficient knowledge of English, 
 and in want of " head " and judgment in positions of difficulty.
 
 STATE CONSTRUCTION AND ADMINISTRATION 103 
 
 The new and important venture upon which the Ciovern- 
 ment of India had thus been launched, involved both the 
 collection and organisation of a large railway staff, and the 
 determination of suitable machinery for control and super- 
 vision. As regards staff, a large and rapidly expanding depart- 
 ment of Public Works offered a valuable nucleus of engineers, 
 who could claim railway experience at home, and who, at the 
 same time, had the great advantage of a knowledge of the 
 country, the people, and the language. They were strength- 
 ened by some officers of the Royal Engineers, by direct 
 recruitment from England, and by some officers from the 
 guaranteed railway companies; and, on the whole, work was 
 commenced under very promising conditions in this respect. 
 Each line was placed in charge of an engineer-in-chief, the 
 work being divided into "divisions," of from fifty to sixty 
 miles in length, on each of which was the divisional engineer, 
 with generally two assistants. They carried out the works as 
 a rule themselves, by means of petty contractors or task work, 
 although, in a few instances at first, large schedule contracts 
 were given to European contractors. -The arrangements for 
 the general direction and control of these lines were rendered 
 somewhat complicated by the fact that at that time the Local 
 Governments had considerable powers in influencing the admin- 
 istration of the guaranteed lines, and that, consequently, it was 
 deemed advisable that they should have even greater influence 
 over the operations on State railways. The intention of the 
 supreme Government was, however, that the control of both 
 systems should eventually be centralised, and that the arrange- 
 ments should tend towards this. The views of the Government 
 of India were embodied in a resolution in 1871.^ In this it 
 was decided that the Consulting Engineers for the guaranteed 
 lines, who until then had been associated with the Local 
 Governments, should in future come invariably under the 
 orders of the Government of India, and that in addition to 
 ^ Nos. 1883-1901, Railway, of 29th September 1871.
 
 I04 RAILWAY POLICY IN INDIA 
 
 their present duties, they should exercise some measure of 
 supervision over a portion of the new State Hnes. The 
 remainder would be supervised directly either by the supreme 
 Government or the Local Government concerned. These 
 arrangements were not destined to continue in force very long, 
 nor indeed was it intended that they should. Further reference 
 will be made to this point. 
 
 In the same year, 1871, the Government of India appointed 
 as their Consulting Engineer for State Railways Mr. G. L. 
 Molesworth, Mem.Inst.C.E.,^ to whose marked abilities, 
 experience, and judgment their success is largely due. In 
 June 1872 Mr. Molesworth, after visiting all the lines then in 
 progress, submitted a report in which the character and prospects 
 of the projected State railways were discussed, and suggestions 
 made as to their design and method of construction. He was 
 of opinion that the adoption, for subsidiary lines, of the metre 
 gauge, was a wiser course than that of making light lines, for 
 light loads and slow speeds, on the standard gauge. He was 
 supported in England by Mr. (now Sir) A. M. Rendel, as 
 adviser to the Secretary of State in the provision of English 
 materia], and who, as one of the original proposers of the new 
 gauge, and from his commanding position in the profession, 
 has afforded invaluable service to the Government. The 
 direction of the new lines was left largely at first in the hands 
 of Mr. Molesworth ; but it was evident that with the mass of 
 technical detail to be disposed of at the outset, it was impossible 
 to give adequate attention to general administration, as regards 
 establishment, funds, stores, etc., and that the division of 
 responsibility was showing a bad effect on the progress of the 
 works. It was clear, moreover, that the volume of business in 
 connection with both the State and the guaranteed lines, 
 required some additional and special organisation in the Public 
 \Vorks Branch of the Government of India. Two courses were 
 considered, one the appointment of a Director for State railways, 
 ^ Now .Sir Guilford L. Molesworth, K.C. I.E.
 
 STATE CONSTRUCTION AND ADMINISTRATION 105 
 
 who would be empowered to deal independently with the bulk 
 of the references, and who would refer minor technical questions 
 to the Consulting Engineer, or that a Board of Direction should 
 be constituted, the members of which would be selected for their 
 special qualifications in the different branches of railway working 
 and construction. The former course was eventually adopted 
 (in April 1874), the first incumbent being Lieutenant-Colonel 
 E. C. S. Williams, R.E.^ This appointment was necessarily 
 one of great importance, requiring exceptional judgment and 
 ability — qualities which fortunately were amply shown in the 
 new Director. The initiation and organisation of a new branch 
 of the public service, the supervision and control of extensive 
 works all over the country, the arrangements for the working 
 of open lines, the management and proper disposal of a large 
 staff, and the judicious apportionment of the funds provided, 
 involved duties which, with the steady expansion of operations, 
 became apparently too heavy for one person. Consequently, 
 in 1877, it was deemed necessary to increase the number of 
 Directors, by dividing the country "into systems," each in 
 charge of a Director, and to add further a Director of Stores. 
 The length of open line at the time was little more than 650 
 miles, the lines under construction about 1200 miles, and those 
 under survey about iioo, and it would appear now that the 
 increase was rather beyond what was really requisite ; in fact 
 these appointments were not approved by the Secretary of 
 State, though not wholly for this reason. The correspondence 
 which ensued on this subject ended, in September 1879, in the 
 appointment of a Director-General of Railways, with a Deputy 
 and Assistants for certain branches of the work. This post 
 was combined with that of Deputy-Secretary to the Govern- 
 ment of India in the Railway Branch of the Public Works 
 Secretariat, while as Director-General the office carried powers 
 similar to those which had been accorded to the Directors of 
 
 1 Now Lieutenant-General Sir E. C. S. Williams, K.C.I.E., Govern- 
 ment Director of Indian Railways at the India House.
 
 io6 RAILWAY POLICY IN INDIA 
 
 the four " systems " as regards State lines. He was further 
 charged with the supervision of the guaranteed Unes, which 
 were under the immediate control of the supreme Government, 
 and had powers of sanction with regard to these lines similar 
 to those pertaining to the Governments of Bombay and Madras. 
 There was to be no alteration in the system then existing, as 
 regards railways which were under Local Governments, either 
 as to their powers or relations with the supreme Government ; 
 but a time was approaching when this point was to become a 
 source of frequent discussion with the Home Government. The 
 officer first appointed to the post of Director-General under these 
 new conditions was Major-General J. S. Trevor, R.E. 
 
 The duplication in one and the same official, of functions 
 which might in some respects be regarded as antagonistic, 
 implied that the position was one of considerable difficulty ; 
 but in spite of its anomalous conditions, it has on the whole 
 worked well, while it would have been scarcely feasible, without 
 a very radical change of system, to have introduced any better 
 arrangement. As Director- General alone, the duties were 
 sufficiently heavy and responsible to have satisfied the most 
 eager worker. He was charged with the direction of the 
 surveys for new projects for State lines, the supervision and 
 criticism of these projects when under preparation, the general 
 control of the works and the establishment of them when in 
 progress, and of the lines open for traffic. As Deputy-Secretary 
 to the Supreme Government, on the other hand, instead of 
 being an independent executive officer, with wide powers and 
 direct responsibilities, he found himself acting merely as the 
 mouthpiece of the Government of India, and thus not in- 
 frequently corresponding with himself as Director -General, 
 and controlling and even criticising his action in that position. 
 The explanation, and perhaps the sufficient justification for 
 this dual appointment, was found in the more rapid disposal 
 of business, in the curtailment of office establishment, and 
 in the need, under the existing conception of the status of the
 
 STATE CONSTRUCTION AND ADMINISTRATION 107 
 
 Director -General, of his being in close connection with the 
 central Government. In this dual capacity it was a matter of 
 some delicacy to decide in which of them it was desirable to 
 take action, a distinct line having to be drawn between the views 
 of the individual, as the executive functionary, and the collective 
 opinion of the body representing the Government of India. 
 In according approval to the creation of this appointment, the 
 Secretary of State held, nevertheless, that it would not be 
 necessary to continue it for any considerable time. He looked 
 forward to the early probability of the Government of India 
 being able to free itself, as far as possible, from direct executive 
 functions, in regard to the railway system, and that eventually 
 the construction, control, and working of the State lines would 
 be made over to Local Governments. He thought that this 
 should be the declared aim of the Supreme Government, that 
 thus the functions of the Deputy-Secretary, as Director-General 
 of Railways, would be " progressively restricted," and that the 
 necessity for this separate office might possibly cease altogether. 
 At this time, out of a total of about 8000 miles of State lines, 
 either under construction or open for traffic, about 1800 miles 
 were controlled by Local Governments, and it appeared to the 
 Home Government that further decentralisation in this direc- 
 tion was not only possible but that it was out of the question, 
 " that the railway system of a tract as large as the greater part 
 of Europe, could be satisfactorily managed by a single central 
 authority " ; while efficient control over the details of railway 
 administration on the part of the central Government was 
 impossible, in view of the enormous and constantly increasing 
 burden of other administrative duties. All that seemed 
 necessary was to lay down general rules, and having settled 
 questions of principle, the duties and responsibilities of super- 
 vising the management and controlling expenditure should be 
 left to local authorities. 
 
 The Government of India did not find it possible to give 
 their entire acquiescence or immediate effect to the course thus
 
 io8 RAILWAY POLICY IX INDIA 
 
 indicated; but early in 1888 measures were adopted, which 
 were directed, as far as was then possible, towards fulfilling 
 the intentions of the Home Government, but which did not 
 materially diminish the duties or the responsibilities of the 
 Director-General. The blot in the proposals or intentions of 
 the Secretary of State was one of an essentially practical 
 nature. It had not been seen that in order to obtain efficient 
 supervision and control, in a matter so special and technical as 
 that of railway construction and administration, it would be a 
 necessary condition that duly qualified officers should be 
 attached to Local Governments for this duty. It is not clear 
 that this was fully recognised at the time, even by the Govern- 
 ment of India ; nor was it indeed possible to provide for its 
 proper fulfilment, in every case, without adding unduly to the 
 cost of a provincial establishment. The weakness of local 
 supervision, unaided in this respect, has been prominently 
 shown in several ways, and in some important cases ; indeed 
 so marked has been the evidence of this defect, that it has 
 recently been in contemplation, on the grounds both of 
 economy and of sound administration, to revert in great 
 measure to a centralisation of authority in the conduct of 
 operations on State lines. It may, however, be regarded as 
 probable, that before many years have elapsed, the growth of 
 private enterprise, and the making over of the working of all, 
 or nearly all, the State railways to companies, may effect a 
 considerable reduction in the scope of the functions now 
 exercised by the Director-General, and that consequently the 
 appointment may ere long disappear. It must be, however, 
 admitted that there was ample justification for the principle 
 insisted on by the Secretary of State ; for the earlier years of 
 the administration of State railways showed an almost morbid 
 desire to centralise supervision over the most trivial details. 
 Every work had to be designed to certain types, irrespective 
 of local conditions; the dismissal of subordinates, or even 
 menial native servants, was forbidden without sanction from
 
 STATE CONSTRUCTION AND ADMINISTRATION 109 
 
 headquarters, alterations of rates or designs had to be referred 
 in the same way, and as an instance of the extent to which 
 this interference was carried, it is on record that the question of 
 the "write-off" of three broken lamp glasses was not thought 
 unworthy of disposal by the Supreme Government. A very 
 great change has been effected of late years in this respect. 
 Both the Engineer and the Manager have now very extended 
 powers, with results which are in every way satisfactory, while 
 the saving in delays, in correspondence, and in friction, is 
 equally noticeable. 
 
 Up to the period of the introduction of State railways 
 nearly every appointment under the Government in India 
 implied that, subject to good conduct, continuous service was 
 to be looked for, and the grant of a pension or gratuity on 
 retirement. The new departure, on what was essentially a 
 commercial undertaking of great magnitude, rendered it 
 necessary to resort to recruitment on a different basis for 
 employes of all ranks, whose services could certainly not be 
 engaged for an indefinite time, and to offer employment to men 
 obtained from England on short term covenants of from three 
 to five years ; while to men— mostly natives — engaged in India, 
 the conditions of discharge were fixed at one or, at most, six 
 months' notice. Such service was to carry no claim to pension 
 on retirement. The promulgation of rules to this effect led, 
 naturally and speedily, to the recognition of the danger, 
 especially in India, of enlisting large numbers of men to whom 
 no other inducements were offered towards zealous or at least 
 good service, than the hope of preferment, or the renewal of an 
 agreement, and thus it appeared to be politic to afford to such 
 employes some regular system of saving, and to encourage this 
 by some contribution from the earnings of the concern in which 
 they were engaged. This led to the institution of a State Rail- 
 way Provident Fund (in 1880), under the regulations of which 
 every European employed on the new footing was obliged to 
 contribute one-sixteenth, and every native one-thirty-second
 
 no RAILWAY POLICY IX INDIA 
 
 part of his salary to the Fund. To this the State added a 
 contribution in the shape of one-half of i per cent of the net 
 earnings of the railway each half-year, to be distributed amongst 
 the contributors in proportion to their compulsory deposits, and 
 the aggregate bonus so granted was not to exceed the contri- 
 bution (compulsory) of the said period. In case such bonus 
 was, on the other hand, considered insufficient, the Govern- 
 ment declared its willingness to specially consider the matter. 
 No money could be withdrawn from the Fund, except on the 
 decease of the contributor, or on his leaving the public service, 
 although under special circumstances money might be with- 
 drawn temporarily, but had to be replaced in the Fund by 
 small additional deductions from salary. In addition to com- 
 pulsory deductions, voluntary subscriptions might be made 
 to the Fund, on which interest was given, under Savings 
 Bank Rules, at 3I per cent per annum. The effect of this 
 Provident Fund has been in every way satisfactory and salutary, 
 and has been beneficial both to the State and to the servants 
 to whom its provisions apply. It has given men a definite 
 interest in the success of the undertaking they are engaged on, 
 it has relieved them in great measure from the anxiety in- 
 separable from the terms of their service, and has afforded the 
 State some degree of security for economical working and 
 conscientious service. 
 
 An important feature in the administration of Indian railways 
 was established shortly after the appointment of a Director- 
 General, in the shape of the assembly of the first of a series of 
 conferences of railway officials, delegated from both State and 
 guaranteed railways. The powers of control which could be 
 claimed by the Government over the latter, under their 
 contracts, did not include the right to interfere in minor 
 matters of detail ; while in those in which it would have been 
 possible to decide and to insist on, it was wisely held to be 
 impolitic to take action without eliciting the opinions and 
 advice of those who had to work under such rulings, and whose
 
 STATE CONSTRUCTION AND ADMINISTRATION in 
 
 hearty concurrence it was in every way desirable to enlist, in 
 view of the interest which the State had in the successful results 
 of these lines. It was, moreover, necessary that methods which 
 had been adopted on State lines should be discussed and 
 reviewed before a tribunal of experts, and, above all, that, as 
 far as possible, an approach to uniformity of system in all 
 essential points should be aimed at on all railways. The first 
 meeting, in 1880, was eminently successful, and was presided 
 over by the Director-General of Railways. A code of general 
 rules was agreed to for the working of all lines, agreements 
 were come to as to the interchange of rolling stock, and for 
 recording charges for shunting and other miscellaneous engine 
 service, proposals were discussed for the adoption of uniform 
 classification of goods, and rules were agreed to for the pre- 
 paration of half-yearly statistics. This latter point has been a 
 salient and unique feature in Indian railways, and their value 
 has been amply recognised both by railway officials and the 
 general public, for whom the figures are compiled and tabulated 
 in the annual reports of the Director-General. An obvious 
 advantage of these conferences has been that of the personal 
 knowledge and rapprochinent between the railway officials, and 
 the possibility of free discussion of most points. The intro- 
 duction of the Government as an owner and operator of railways 
 produced a keen and healthy rivalry between their officers and 
 those of the companies, and many a difficulty which seemed 
 insuperable to one side or other has been " thrashed out " at 
 these meetings, and a decision arrived at and eventually 
 adopted by both sides. In the earlier years of the State lines 
 their working compared somev>-hat unfavourably with that of 
 the older ones, partly on account of the rigid centralisation, to 
 which reference has been already made, but largely owing to 
 the mcomplete state of the new lines, the want of rolling stock, 
 and the poor and difficult country they passed through com- 
 pared with the general character of the guaranteed lines. The 
 Government of India were assailed from more than one
 
 112 RAILWAY POLICY IN INDIA 
 
 direction on this point, but resolutely defended their own 
 men, urging that time must be given for due development ; 
 that it was unfair to compare results by the percentages 
 of working expenses to gross receipts on lines which were 
 being operated under such unfavourable conditions ; and that 
 the true criterion should be " whether the traffic had been 
 moved with punctuality and despatch, and whether the net 
 earnings of a line bear a reasonable proportion to its capital 
 cost." ^ Without criticising this somewhat untenable doctrine, 
 it may be safely asserted that the State official has amply 
 vindicated the attitude then taken by the Government, and 
 has shown that when given free scope and responsibility for 
 results, he has been able to work as cheaply, and generally 
 offer returns quite as satisfactory, as those of the older railways ; 
 while of late years those lines have drawn their principal 
 officers from the staff of the State railways. 
 
 The changes of policy, which have from time to time been 
 forced on the Government, have led to a variety of shapes in 
 the growth of the Indian railway system. The list of the lines 
 now open, with the mileage for each gauge, is given in the 
 Appendix, which also shows the different conditions as to 
 ownership, and the agencies by which each line or groups of 
 lines are being worked at present. In this we see State lines 
 worked by the State, State lines worked by companies, guar- 
 anteed lines, assisted lines, lines owned by native States and 
 worked by them, and lines similarly owned but worked by 
 separate agencies. The conferences, to which reference has 
 been already made, have done much towards introducing some 
 degree of uniformity in what may be called traffic questions in 
 this medley ; but until quite lately no steps had been taken in 
 this direction in the almost equally important question of 
 assimilating the practice of these different railways in the con- 
 struction of their rolling stock. In 1889, however, this want 
 was at length clearly recognised by the Government, and 
 ^ Despatch to .Secretary of .State for India in 1880.
 
 STATE CONSTRUCTION AND ADMINISTRATION 113 
 
 arrangements were made for the annual assembly of a Com- 
 mittee of Locomotive and Carriage Superintendents, at which 
 representatives would be found from all the principal lines, 
 including those of the State. The functions of this Committee, 
 which was to meet at some large railway centre (varying each 
 year), were defined as follows, viz. : "That it should deal with 
 all matters relating to the mechanical improvement of locomo- 
 tive and carriage stock, and the design, construction, running, 
 and repair of the same ; to determine what standards shall 
 be adopted ; to arrange for such experiments as may appear 
 desirable ; to publish papers of professional interest, and 
 generally to consider and report upon all technical, administra- 
 tive, or financial questions connected with rolling stock, work- 
 shops, station machinery, etc., which may be proposed by the 
 members themselves, or by the Government of India." The 
 decisions of this Committee are determined by the votes of 
 the members, the voting power of each being based upon the 
 number of axles in his charge. It is, however, understood, and 
 is noted on the annual reports of the Committee, that all its 
 decisions are subject to the approval of the agents. Boards of 
 Directors, or other authorities for individual railways, and of 
 the Government of India in all cases. The expenditure in 
 connection with their meetings, the cost of experiments, models, 
 and publications, is met by contributions from each line repre- 
 sented, in proportion to its mean open mileage for the year. 
 Designs accepted by the Committee are divided into three 
 classes, viz. : — 
 
 1. Absolute standards. 
 
 2. Provisional standards. 
 
 3. Approved designs. 
 
 The first is a design or dimension, the general adoption of 
 which is prescribed by a Government order, such as automatic 
 brake connections, or dimensions between centres of buffers. 
 The second, or provisional standard, is a design or dimension, 
 recommended for adoption, but which needs further trial to 
 
 1
 
 114 RAILWAY POLICY IN INDIA 
 
 warrant its general acceptance by a Government order. The 
 last, an approved design, covers that of a design or pattern 
 approved by the Committee as a good example of the best 
 practice in India up to date, and, as expressed in one of the 
 reports, it was expected that " from time to time for each class 
 of vehicle fresh designs will be added to the ' approved ' list, 
 and designs which may be superseded will be removed." Thus 
 it is hoped that by degrees the differing types and patterns on 
 Indian railways will be reduced in number, inferior or absolete 
 designs will be gradually eliminated, and year by year each line 
 in India will conform more nearly to the practice which by the 
 common consent of all lines has been determined to be the 
 best. 
 
 Until the institution of this Committee, each railway had 
 been working pretty well on the isolated views and opinions 
 of their Workshops' Superintendents for the time being, with 
 the result that the tendency of their practice was more towards 
 the iBultiplication and divergence of types than otherwise. In 
 a small country, or in one more particularly in which facilities 
 for the interchange of stock is not of vital importance, this 
 evil would not demand the close attention of the Government ; 
 but in India, with its vast distances, its constant liability to 
 famine and frontier wars, both of which may involve the 
 sudden and extensive movement and massing of stock of all 
 kinds from perhaps one end of the Empire to the other, it 
 was a matter of great moment to the Government of India to 
 endeavour to introduce order into approaching chaos. The 
 exigencies of military operations particularly required, more- 
 over, that carriage and waggon stock should be adapted, as 
 far as possible, to the proper transit of troops, material of war 
 generally, and animals (not excluding elephants), without 
 materially affecting their utility for the purposes of the public ; 
 and that stock should be also of such design as would be 
 suitable for movement over the heavy grades and sharp curves 
 on the frontier railways. In this, and in other directions,
 
 STATE CONSTRUCTION AND ADMINISTRATION 115 
 
 the Committee has aheady done most valuable work. The 
 results of their meetings are compiled in the Technical 
 Section of the Public Works Department, which is in charge 
 of the Consulting Engineer for State railways to the Govern- 
 ment of India, and from whence the annual report is issued, 
 and the decisions of the Committee brought to the notice of 
 the Government. This Technical Section is another extremely 
 useful feature in the administration of Indian railways. It 
 has been instituted with the intention of making it a centre for 
 information on all technical questions in connection with 
 Indian railways, of preparing and issuing types and standard 
 dimensions of all kinds, and of editing and publishing original 
 papers or translations on subjects of special interest. 
 
 Brief notice must be made of another feature of interest in 
 the State administration of Indian railways, i.e. in the forma- 
 tion of a Railway Service Corps for military operations. The 
 first movement in this direction was made in 1874, when it 
 was proposed that an attempt should be made to train a 
 company of native sappers on State lines to serve as engine- 
 drivers, mechanics, and platelayers in case of need. Little, 
 however, resulted from this, and later on, in 1887, a proposal 
 was considered for forming military companies of railway staff 
 from volunteers from European regiments serving in India. 
 To this the military department gave full support, and arrange- 
 ments were made with a view of forming a corps for service 
 on the frontier ; but difficulties of a legal nature arose against 
 this proposal, and it eventually fell through. Previously to 
 this, in 1885, in a despatch^ from the Secretary of State on 
 the subject of the taking over and workmg by the State of 
 all the frontier lines, it was suggested that on such of those 
 as had more particularly military or political objects it might 
 be desirable to have them worked by a corps of this kind, 
 on somewhat similar conditions to those which obtained in 
 
 ^ No. 10, Railway, of the 22nd January 1S85.
 
 Ii6 RAILWAY POLICY IN INDIA 
 
 Germany, France, Russia, and elsewhere. The Government 
 of India foresaw, however, " the insufficiency for the object in 
 view " of putting any one part of the system in exclusive 
 charge of a corps of this kind, and proposed, as an alterna- 
 tive, that all the European staff on the amalgamated frontier 
 railways, then owned and worked by the State, should be 
 required, as the conditions of their engagements, to become 
 volunteers, under the Indian system, and from them should 
 be taken a picked body of men and officers, who should be 
 enrolled, under advantageous conditions, for service either 
 within or beyond the frontiers. This proposal was the one 
 eventually adopted with the concurrence of the Home Govern- 
 ment,^ the corps while employed in the field being recognised 
 as combatants, and " entitled to share in the privileges of that 
 position." Subsequently the scope of the scheme was enlarged, ■ 
 so as to include natives for subordinate work and volunteers 
 from other railways, to take the place on the frontier lines of 
 the Railway Service Corps. Nominal rolls of all volunteers, 
 both European and native, are now recorded, and the numbers 
 and class of men entered show a very useful, or indeed invalu- 
 able, addition to the military strength in case of serious frontier 
 trouble. 
 
 Generally speaking, it may be said that the administration 
 of railways by the direct agency of Government has, in all 
 the essentials of working, differed in no material degree from 
 that which has characterised that of the companies' lines ; 
 indeed it has been the aim in many directions, on the part 
 both of the State and the companies, to assimilate their 
 methods. In contrasting the results on both, it must be 
 borne in mind that the lines in the hands of the guaranteed 
 companies covered the best ground in respect of local and 
 through traffic, while those constructed by the State directly, 
 or those carried out under " assisted " terms indirectly, have 
 
 ^ Despatch from Secretary of State, No. ii, Railway, of 4lh February 
 1886.
 
 STATE CONSTRUCTION AND ADMINISTRATION 117 
 
 t)een designed either as feeders, as lines for military or political 
 [)urposes, or for the relief of possible famines. The certainty 
 of an adequate return on the capital expenditure on these 
 railways was but in few cases expected, but indirect advantages, 
 of scarcely less importance to the State, were their first recom- 
 mendation. It might even be held that the Government had 
 originally no definite intention of obtaining anything more 
 from their railways than the interest borne on their capital 
 cost, and that in the event of any greater return than this the 
 excess might be surrendered in the shape of reductions in 
 rates and fares. Of late years, however, very serious fiscal 
 and financial difficulties have arisen, due to a variety of 
 unforeseen causes, but mainly induced by the fall in the 
 exchange value of the currency, with the natural or inevitable 
 result that the Government has been forced to regard their 
 railway receipts as a very considerable source of Imperial 
 revenue, and that the State railway manager has been stimu- 
 lated to keep as keen a watch on net profits as the most 
 zealous employes of the companies' lines. This point will be 
 referred to more fully in the concluding chapter.
 
 CHAPTER IV 
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS^ 
 
 In 1845, t^^'O priYate associations under the designation of the 
 "East Indian" and the "Great Indian Peninsula" Railway 
 Companies '^ were formed in England ; but the projectors found 
 it impossible to raise the necessary funds for their proposed 
 schemes without the assistance of Government. The applica- 
 tion for this aid led to a protracted discussion ; and it was not 
 until 1850 that any practical commencement of railway con- 
 struction took place in India. Early in 1849, it was determined 
 to assist these Companies by guaranteeing to them a certain 
 fixed rate of interest on their capital expenditure, and the 
 deeds of contract with both Companies were sent out to India 
 towards the close of the year. Paragraph 13 of the transmitting 
 despatch runs thus : " With respect to the weight of rails and 
 gauge of line to be employed on these railways, we are disposed 
 to recommend those used by the North-Western Company here, 
 namely, a gauge of 4 feet 8i inches, and a weight of rails of 84 
 lbs. to the yard, as combining the greatest utility and economy." 
 At that time Lord Dalhousie was the Governor-General, and 
 Mr. W. Simms, C.E., the Consulting Engineer to the Govern- 
 ment of India for Railways. The despatch was duly considered 
 in India. The Consulting Engineer for Railways reported on 
 
 ^ The first portion of this chapter is largely a reprint of one on this 
 suVjject in the Administration Report on Indian Railways for 1S80-81, hy 
 Colonel W. .S. Trevor, R. E. , then Director-General of Railways in India. 
 
 '^ Mr. J. Danvers' Report on Indian Railways to end of year 1S59.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 119 
 
 the subject, and the Governor -General recorded a minute, 
 both of which were transmitted to the Court of Directors with 
 a despatch recommending that a gauge of 6 feet be adopted for 
 Indian railways. 
 
 Mr. Simms recorded his reasons for recommending a wider 
 gauge than 4 feet 8i inches as follows : — 
 
 The wider gauge of 5 feet 6 inches, which I would recommend for 
 adoption, will give 9^ inches more space for the arrangement of 
 the several parts of the working gear of the several parts of the 
 locomotive engines ; and this additional space will be more needed 
 in India than in Europe, not only on account of the machinery 
 itself, but it would lower the centre of gravity of both the engines 
 and carriages, the result of which would be to lessen their lateral 
 oscillation, and render the motion more easy and pleasant, and at 
 the same time diminish the wear and tear. 
 
 The lowering of the centre of gravity, consequent on the adoption 
 of the wider gauge, appears to me of great importance for another 
 reason, namely, the fearful storms of wind so frequent at certain 
 seasons of the year, and I think it very probable that in one severe 
 nor'-wester, not to mention such hurricanes as that of 1842, the 
 additional 9^ inches of width might make all the difference 
 between the safety and destruction of the trains ; and one such 
 accident attended, as it doubtless would be, with great loss of life, 
 would probably retard the progress of the railway system in this 
 country very considerably. 
 
 The following extract from Lord Dalhousie's minute refers 
 to the question of gauge : — 
 
 32. The Court of Directors have recommended at the same 
 time the use of the narrow gauge of 4 feet 8^ inches for the 
 railway about to be constructed. Although the letter of the Court 
 recommends, but leaves to the Government of India to determine, 
 as to the gauge which should be adopted on this occasion, I 
 consider the question to.be one of such moment as to deserve a 
 careful consideration and an authoritative and conclusive decision 
 by the highest authority connected with the Indian Empire, who
 
 120 RAILWAY POLICY IN INDIA 
 
 alone can have access to that full information and extended 
 experience which would make such a decision really and satis- 
 factorily conclusive. 
 
 33. The British Legislature fell unconsciously, and perhaps 
 unavoidably, into the mischievous error of permitting the introduc- 
 tion of two gauges into the United Kingdom. The numerous and 
 grievous evils which arose from that permission are well known, 
 and will long be felt throughout all England. The Government 
 of India has it in its power, and no doubt will carefully provide that, 
 however widely the railway system may be extended in this Empire 
 in the time to come, these great evils shall be averted, and that 
 uniformity of gauge shall rigidly be enforced from the first. But 
 I conceive that the Government should do more than this, and 
 that now, at the very outset of railway works, it should not only 
 determine that any uniform gauge shall be established in India, 
 but that such uniform gauge shall be the one which science and 
 experience may unite in selecting as the best. 
 
 34. At one time this question was much before me ; and 
 although I should not myself attempt to offer an opinion on so 
 \exed a question, yet I may venture to form one on the recorded 
 views of men competent in every way to judge. The evidence 
 which has been given before the Gauge Commissioners in 1846, 
 and evidence which has been given from time to time before the 
 Committees of Parliament, backed as it has been by veiy high 
 authority abroad, is, I venture to think, sufficient to show that the 
 narrow gauge of 4 feet 8| inches (a measurement adopted originally 
 at haphazard and from the accident of local circumstances) is not 
 the best gauge for the general purposes of a railway, and that some- 
 thing intermediate between the narrow gauge of 4 feet Si inches 
 and the broad gauge of 7 feet will give greater advantages than 
 lielong to the former, and will substantially command all the 
 benefits which are secured by the latter. 
 
 35. The circumstances which have been brought forward by 
 Mr. Simms in his report, applicable especially to this country, 
 strengthen the reluctance which I feci to introduce the 4 feet 8^ 
 inches gauge into India without a very deliberate reconsideration 
 of the question with reference to India, under the direction of the 
 ilonourable Court, by the Board of the East Indian Railway
 
 HISTORY OF THE CxAUGE ON INDIAN RAILWAYS 121 
 
 Company. I should not have felt satisfied that I had done my 
 duty if I had not brought this question pointedly under the con- 
 sideration of the Court, requesting" them formally and finally to 
 determine whether a wider gauge than the 4 feet 8i inches ought 
 not to be established in India, and whether the gauge of 6 feet 
 which was recommended by engineers of eminence in England, 
 and which was preferred also, if I recollect rightly, by M. de 
 Pambour, should not be introduced on the experimental line in 
 Bengal, and at the same time on the line which is in course of 
 construction at Bombay. 
 
 In reply to this despatch, the Court of Directors were 
 "disposed to think" a gauge of 5 feet 6 inches was the most 
 suitable, and communicated that decision to the several Indian 
 Railway Boards in London.^ This decision did not coincide 
 with the views of the authorities; and Major J. Pitt Kennedy, 
 who had succeeded Mr. W. Simms as Consulting Engineer for 
 Railways, suggested that further reference to the Court of 
 Directors might be made. To this Lord Dalhousie assented, 
 recording his opinion in a minute. The referring paragraphs 
 are as follows : — " 
 
 2. It does not appear from the despatch of the Honourable 
 Court whether their determination to fix the gauge at 5 feet 6 
 inches was the result of any deliberate inquiry, or whether the 
 figure was merely indicated as a mean between the extremes of 
 the present narrow gauge and that which I took the liberty to 
 suggest. If the Honourable Court have fixed upon 5 feet 6 inches 
 for the Indian gauge on high recognised authority, and adhere to 
 it, of course the Government has only to obey. But if it is not 
 the case, the Court will pardon the importunity which, for their 
 own present and future interests, urges them to take other counsel 
 before they issue a peremptory mandate on this important point. 
 
 3. I know of old that particular figures have been fixed upon 
 originally for a gauge, and for others proposed in substitution of 
 it, without the author of the proposal being able to give any reason 
 
 ^ Despatch No. 46, from Court of Directors to the Government of India, 
 dated 4th December 1850.
 
 122 RAILWAY POLICY IX INDIA 
 
 \vhate\er for selecting the particular dimensions he has specified. 
 The original narrow gauge of 4 feet 8| inches was adopted for no 
 other reason than because it happened to be the width of the 
 colliery tramway on which locomotive power was first tried. 
 When a general alteration was proposed, I recollect it being said 
 that the principle on which one gentleman proceeded was to take all 
 the different gauges, strike the average, and propose the figure that 
 resulted as the best universal gauge. But I think that many good 
 reasons were fomierly given for the superiority of a 6 feet over the 
 broad and narrow gauges, and I feel confident that many more 
 could be given why that gauge should be selected for India, in 
 preference to either of the original gauges, or to the one now 
 selected by the Honourable Court. 
 
 4. At all events, if formal inquiry has not been entered into, I 
 earnestly request the Honourable Court to permit the question to 
 be so far reconsidered as to receive such reports and evidence on the 
 subject as are suggested by Major Kennedy in the i 5th paragraph 
 of his present report. If this is not in accordance with the resolu- 
 tion of the Honourable Court, I shall much regret it ; for I think 
 that those who come after us will see cause to lament that the 
 originators of this great system in the East did not profit so much 
 as they might have done by the errors of their predecessors in 
 Europe. 
 
 A communication to this effect was made to the Court of 
 Directors,-^ but the recommendation to increase the gauge to 
 6 feet was not assented to, the Court of Directors saying that 
 their decision had been " arrived at after a very careful con- 
 sideration of the subject, and with the best opinions that we 
 could obtain. That decision having been communicated to 
 the railway companies who have entered into contracts for the 
 execution of works, and for the provision of materials on the 
 presumption that it is final, it would lead to much inconvenience 
 and expense if any alteration were now permitted." - 
 
 ' Government of India to the Court of Directors, No. 3, dated 7lh 
 .March 1851. 
 
 - Court of Directors to Government of India, No. 45, dated 20th August 
 1851.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 123 
 
 This decision was accepted by the Government of India, 
 and the 5 feet 6 inches gauge was adopted as the standard 
 gauge for the trunk lines in British India. 
 
 Early in 1857, the Court of Directors received several pro- 
 posals for the construction of railways through Rahilkund and 
 through the then newly annexed province of Oudh. The 
 Court conceived that the time had come for ceasing to 
 grant guarantees, and anticipated that the companies would 
 have no difficulty in raising the necessary funds, with only 
 moderate assistance from Government. These proposals were 
 referred to the Government of India for a full report on the 
 system of communications in that part of India, and suggesting 
 that the kind of railway required should be distinctly indicated. 
 
 The Government of India suggested that, in preference to 
 giving any more guarantees (the Court of Directors having in- 
 timated, meanwhile, that their expectations regarding the 
 raising of money in the English market without a guarantee 
 were unfulfilled), the State should undertake to build its own 
 railways in Gudh.^ Lord Stanley, who was Secretary of State 
 when this matter came up for decision,- was not of opinion that 
 Government should build its own railways, although he did not 
 object to Government doing so on a small scale, such as con- 
 necting its iron works at the foot of the Naini Tal hills, etc., to 
 the trunk lines. This policy was reiterated by Sir C. ^^''ood, 
 who succeeded Lord Stanley as Secretary of State, and the 
 surveys for railways in Oudh were conceded to certain railway 
 companies. The various proposals were reviewed in a note, 
 dated 7th September 1861, by Lieutenant-Colonel H. Yule, 
 then Secretary to the Government of India for Public \Yorks. 
 As regards the gauge, Colonel Yule remarked : — 
 
 The results of the cattle-draught line as here exhibited are more 
 precisely favourable. Were the enterprise destined to remain 
 
 ^ Secretary of State to Government of India, No. 16, of 24th February 
 1859. 
 
 - Despatch from Secretary of State, No. 106, of 29th October 1S59.
 
 124 RAILWAY rOLICY IN INDIA 
 
 purely local, this might therefore be preferred. But such a line is 
 not capable of great development ; a large traffic derived from a 
 wide extent of country would choke it, and demand an amount of 
 live and dead stock excessively unwieldy and unmanageable. 
 
 If the cattle line were adopted, I adhere to the view expressed 
 in 1 85 5, that the gauge of the great railways should be altogether 
 discarded. I can see no object in adopting it sufficient to com- 
 pensate for the great additional weight which it will involve. 
 Nay more. I would now extend the same views to the light 
 locomotive line. I do not dispute for one moment that the great 
 primary network of continental railways should be of one gauge. 
 But we propose here quite a different style of work. Is it worth 
 while, on account of the necessity of transhipment at two eventual 
 points of contact — one of which will probably be on a great river 
 (the Ganges at Cawnpore) likely to remain unbridged for a genera- 
 tion, and therefore a break in any case — to give up a great 
 economy ? In the English gauge controversies there was no 
 separation, either in character or locality, between the lines of 
 different gauge. It was but the predilection and practice of one 
 set of engineers pitted against those of another set, on lines of the 
 same character constantly interlacing. I must at the same time 
 apologise for venturing such an opinion after the views of Govern- 
 ment and of Lord Dalhousic have been so strongly expressed the 
 other way. 
 
 The views were adopted by the Government of India, for in 
 December 1862, when Mr. J. E. Wilson, the Agent for the 
 Indian Branch Railway Company, reported to Government 
 that he was "prepared to enter into definite arrangements for 
 the construction of the roadways and the laying down of light 
 railways thereon " in Oudh and Rahilkund, the Government 
 of India, in passing orders on the reference, laid down the 
 following conditions as regards the gauge : — 
 
 The first point that calls for remark is the gauge, to which 
 you make no special allusion. . . . His Excellency in Council is 
 of opinion that it will be essential to insist on the adoption of 
 the standard Indian gauge of 5 feet 6 inches in the case of all
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 125 
 
 railways that are intended to form portions of main lines. Ikit 
 when the lines proposed are designed as bond Jidc tramways, 
 that is, feeders to the main system but not essential parts of it, and 
 when the expected traffic may warrant the outlay necessary for 
 the formation of a full gauge line, the Government of India will 
 sanction, as it has already done in the case of the Nalhati line, 
 narrow gauge light lines, as a temporary expedient, on the con- 
 viction that such lines will be replaced by full gauge lines of a 
 more substantial character whene\er the development of the traffic 
 renders such a change advisable. Where such narrow gauge 
 lines are sanctioned, it will therefore be an advantage that they 
 should be of the lightest and most economical description com- 
 patible with safety and the necessary degree of permanence, in 
 order that there may be the least possible difficulty in the way of 
 the change when it has become expedient, and that there may be 
 no doubt as to their temporary and provisional character, and no 
 risk of their being permitted to grow into a system which would 
 compete with the system constructed on the standard or national 
 gauge. 
 
 A slight digression here is necessary to give an outline of 
 the objects of the Indian Branch Railway Company, and how 
 they were affected by the question of the gauge. Of all the 
 numerous companies that were projected for building light 
 railways in India, this was the only one in Northern India that 
 actually did proceed to make lines in India.^ The original 
 projector of this Company was Mr. J. E. Wilson ; and it was 
 his desire to lay light lines of railway on existing roads, but on 
 a narrower gauge to that on the trunk lines, and thus act as 
 feeders to the trunk lines. This idea seemed the only feasible 
 method by which a large network of light railways could 
 be spread over India ; it was welcomed by Lord Canning as a 
 probable solution of a most difficult problem, and was heartily 
 backed by him during the latter months of his stay in India. ' 
 
 ' P. W. D. Pros., June 1864, No. 61 E. 
 
 - //;/V^. , Janii^ry 186S, No. 24. 
 
 ^ Lord Canning was succeeded by Lord Elgin on I2lh March 1S62.
 
 126 RAILWAY POLICY IN INDIA 
 
 The first offer made by this Company was to construct a light 
 line of 4 feet gauge on a road which the Government of 
 Bengal were just completing between Nalhati station on the 
 East Indian Railway and Azimganj, situated on one of the 
 effluents of the Ganges and on the road to Murshedabad. 
 This line was actually made without a guarantee, was opened 
 for traffic on the 21st December 1863, and is still working on 
 its original gauge. It was, however, bought by the Govern- 
 ment in 1868, and has since been relaid to the standard 
 gauge. 
 
 This Company then desired to make a light line between 
 Cawnpore and Lucknow and other lines in Oudh and Rahil- 
 kund, and they actually did complete the I^ucknow-Cawnpore 
 line. The Company, however, found that they could not raise 
 sufficient capital to continue their ventures, and appealed to the 
 Secretary of State for a guarantee. This was eventually given, 
 and the Indian Branch Railway Company merged into what is 
 now known as the Oudh and Rahilkund Railway Company. 
 But before permission to construct the Lucknow -Cawnpore 
 line was given, the views of the Indian Government had con- 
 siderably changed. Lord Elgin's Government would hear of 
 no narrow gauge railways, except in such detached and 
 fragmentary sections as held out no promise of being ever 
 worked remuneratively from the heavy cost of the independent 
 establishments. Indeed, it seems that Mr. J. E. Wilson him- 
 self had changed his ideas, for it is stated that he "readily 
 accepted the 5 feet 6 inches gauge for all his lines," etc. This 
 is to be found in the note written on the whole matter by 
 Colonel S'trachey immediately after Lord f^lgin's death, and in 
 which is embodied, as far as was known. Lord Elgin's opinions 
 in the case. 
 
 Sir C. Trevelyan, in a minute dated 4th September 1863, 
 also recorded a strong protest against making either light 
 railways or railways on any other but a uniform gauge. The 
 following extract refers to the question of gauge : —
 
 HISTORY OF THE GAUGE OX INDIAN RAILWAYS 127 
 
 I have always been of oijinion that a fallacy is involved in the 
 idea of light railways. The railway experience in England is 
 greater than that of any other country, f'or many years after our 
 railway system commenced, there was a constant craving after a 
 cheaper kind of railway. Project after project appeared for the 
 formation of light railways or tramways, but they were all dropped. 
 Atmosphenc and other eccentric forms of railway were attempted ; 
 but, however specious the light railway principle might be, ther^ 
 was something in it which always led to its being abandoned on 
 close examination ; and it never arrived even at the dignity of an 
 experiment. Cheap agricultural railways are now being made in 
 various parts of the countr)', but they are all solid, full -gauged 
 railways, quite capable of bearing the rolling stock of the main 
 lines with which they are connected, and their cheapness arises 
 only from their being single lines ; from the landed proprietors 
 asking moderate rates for their land, because they are con\-inced 
 of the advantage to them of the railways ; and from the Parlia- 
 mentary expenses having been reduced to a mere trifle. 
 
 Experience is so much better than theory, that I will not waste 
 time in endeavouring to account for these results. The fact seems 
 to be that a metalled road is a cheap medium of communication, 
 and so also is a solidly constructed railway, but that a railway which 
 is constructed in such a manner that it will not admit of the full 
 application of the power of steam is not an economical medium. 
 
 The practical difficulties in the way of converting a narrow 
 gauge into a full gauge railway are so great, that I look upon the 
 power which it is proposed to reserve to the Government of 
 ordering such a conversion to be entirely illusory. Earthwork, 
 bridges, rails, rolling stock, all have to be constructed on a 
 different scale for a narrow and medium gauge, and, as observed 
 by the Honourable the President, in the event of conversion, a 
 small section of the earthwork and ballast and some byildings will 
 be all that would be saved. 
 
 The "longitudinal" line, of which the Indian Branch Railway 
 Company desires the concession, is no branch but a main line 
 more than 500 miles long, passing through some of the richest 
 and best populated provinces of the Empire. Even the branches 
 to Cawnpore and Koorja, connecting this line with the East
 
 I2S RAILWAY rOLICV I^ IXDIA 
 
 Indian, arc so important, that the Government very properly 
 stipulated that they should be laid on the standard gauge. The 
 commonest foresight, therefore, requires that the main line as well 
 as these branches should be laid on the standard gauge : and if 
 the Branch Railway Company obtains the concession, it must 
 change its name and concentrate its efforts on the construction of 
 an entire system — main line and branches — on the splendid field 
 which will be placed at its disposal. The Indian standard gauge 
 is 5 feet 6 inches. The gauge fixed upon by a Government Com- 
 mission for the Irish railways as the smallest which could with 
 advantage be adopted was 5 feet 3 inches. 
 
 The negotiations with the Indian Branch Railway Company 
 were reported to the Secretary of State in April 1864 (Sir J. 
 Lawrence, Governor -General), and the despatch was accom- 
 panied by all the notes and minutes that had been written in 
 Lord Elgin's time. The arrangements made by Lord Elgin's 
 Government were assented to generally ; and the following 
 extracts from the despatch will show that a gauge narrower 
 than 5 feet 6 inches was deprecated, unless nothing better 
 could be got without a guarantee : — 
 
 13. In contemplating the construction of light railways of the 
 5 feet 6 inches gauge. Lord Elgin had never intended that the 
 engines of the heavy lines should run on them. It was well 
 understood that in England engines of one company are rarely 
 run on the line of another, and that the practical working of rail- 
 ways is not compatible with such a system of interchange of 
 engines, and that all that is ever requisite is the interchange of 
 waggons and carriages. A 5 feet 6 inches gauge light line was 
 accordingly considered to mean a railway capable of carrying at a 
 moderate speed the ordinary passenger and goods vehicles in use 
 on the Indian main lines. 
 
 14. Having these views, Lord Elgin authorised an arrange- 
 ment being made with Mr. Wilson, by which the character of the 
 Oudh and Rahilkund lines was to be defined, by declaring that 
 the maximum load per wheel should be 3J, tons, and the maximum 
 speed I 5 miles an hour. This will allow of the ordinaiy waggon
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 129 
 
 and passenger stock of the East Indian Railway running over the 
 Oudh Hnes whenever the Ganges bridges are finished. To these 
 arrangements of Lord Elgin we give our complete assent. 
 
 29. It only remains to us to call attention to two minutes of 
 Sir Charles Trevelyan, in the arguments of which we have been 
 unable to concur. 
 
 30. In his first minute, dated 30th September last, objection 
 is taken to the construction of narrow gauge and light railways. 
 So far as the present proposals are concerned, the cjuestion of 
 narrow gauge lines does not arise. But we are not prepared to 
 recede from the position before taken up by the Government of 
 India in respect of such lines, viz. that when nothing better can be 
 got, and with due provision for their resumption and conversion into 
 full gauge lines when the traffic calls for the change, the Govern- 
 ment may without objection aid such lines, in each case determining 
 the amount of aid with reference to the objects to be attained. 
 
 31. As regards light lines, very nearly the same remarks will 
 also apply. As soon as the Government gives up the system of 
 guarantee, and abandons all right or desire to interfere in the 
 management of railway companies' affairs, it ceases to be in a 
 position to decide whether a line shall be constructed of rails of 
 one class or another. Such a matter is essentially one for the 
 company to determine. What the Government can do is to 
 decline giving assistance, unless certain terms are offered by the 
 companies, as the companies can refuse to accept the assistance 
 offered if it be too little to satisfy them. The Government of 
 India has adopted the conclusion that a 5 feet 6 inches gauge 
 line, of such a character as will admit of the carriage and waggon 
 stock of the great lines going over it at a moderate speed, will 
 probably be for many years to come sufficient to meet the require- 
 ments of the country, and this general standard it has taken as the 
 niiiiinuon for the full gauge lines. . . . 
 
 It may be here remarked that the Indian Tramway Com- 
 pany had been allowed to build a line between Arconum and 
 Conjeveram in the Madras Presidency on a gauge of 3 feet 
 6 inches. This line was 19 miles in length, and was opened 
 
 K
 
 130 RAILWAY TOLICV IN INDIA 
 
 to traffic on the Sth May 1865. Proposals to convert this 
 gauge into the 5 feet 6 inches gauge and extend the hne to 
 Cuddalore and Pondicherry were made at intervals between 
 1866 and 1868. The Madras Government recommended in 
 1869 the extension to Cuddalore ; but when the nature of the 
 country through which the extension would have to pass was 
 considered, that Government could " not recommend any 
 departure from the present (3 feet 6 inches) gauge on which 
 the line from Arconum to Conjeveram has been laid." In 
 1868 this line was included in the 3 per cent guarantee 
 accorded to the Carnatic Railway Company, and in turn was 
 in 1874 absorbed by the South Indian Railway Company 
 under their 5 per cent guarantee. Its gauge was converted to 
 the metre in July 1878. 
 
 A minute was recorded in 1869 by Sir John Lawrence, 
 reviewing minutely the whole question of railway extension. 
 It is dated the 9th January 1869, three days before Sir John 
 Lawrence made over the high office of Viceroy and Governor- 
 General of India to Lord Mayo. Little time was lost by Lord 
 Mayo in reporting to the Secretary of State on the subject of 
 railway extension in India, and in March of that year a series 
 of despatches was sent home advocating the immediate con- 
 struction of several lines of railway — some by the agency of 
 companies, and some by direct State agency. The policy 
 advocated was that an extension of railways was absolutely 
 essential to the proper development of the resources of India ; 
 that the finances of India could not bear the burden of the 
 proposed additional railways if constructed on the same 
 expensive principle as had hitherto ruled ; that Government 
 was quite capable of making its own lines, and that as it could 
 raise money cheaper than a company, to make its own lines 
 was the more economical proceeding ; that the position of 
 several of the proposed lines was such as did not demand a 
 first-class standard railway, and that either a lighter construc- 
 tion, or a narrower gauge, or both, could be adopted with
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 131 
 
 economical advantage ; and that Government, possessing its 
 own railways, would be capable of exercising on the spot a 
 more efficient and economical management than if administered 
 by a Board of Directors in London. The Duke of Argyll was 
 then Secretary of State for India, and he approved of Lord 
 Mayo's proposals almost in their entirety. 
 
 The introduction of the metre gauge as the gauge for certain 
 railways in India may be said to have arisen from this corre- 
 spondence. The following portions of the correspondence ^ are 
 those that bear on the question of a narrower gauge than the 
 standard gauge of 5 feet 6 inches : — 
 
 42. There is only one other point to which I wish to refer. If 
 there is one thing which comes out in more prominent relief than 
 another in connection with railway construction in all parts of the 
 world, it is this, that those- lines are financially successful in which 
 the capital accounts are kept down to a low amount, and those are 
 unsuccessful in which this has not been accomplished. The lesson 
 we should learn from this is, that the character of the line and the 
 amount of expenditure upon it should be regulated as far as 
 possible by a proper consideration of the possible returns, and not 
 more than is essential by any preconceived ideas of what is the 
 best standard form of railway to adopt. I regard it as the extreme 
 of infatuation to lay down any absolute rules to regulate the modes 
 of construction of railways in a country so vast, so various in its 
 natural features, and so poor as India. Still more mistaken is it 
 to apply to India rules essentially based on the wants of England, 
 which is probably the country in the world from which India most 
 widely differs. England, of all others the richest, the most 
 populous, the most celebrated for its manufactures, the most 
 addicted to commerce ; an island of small size in a highly 
 advanced state of civilisation, where despatch is of extreme 
 importance and time equivalent to money ; England of all 
 countries is the last which we should take as our model in these 
 things. In one respect certainly, but only in one, can I admit 
 
 1 Sir John Lawrence's Minute, dated 9th July 1869.
 
 132 RAILWAY rOLICV IN INDIA 
 
 that English standards are applicable — let all workmanship be 
 thoroughly good of its kind, and every part of the construction 
 permanent and suited to what is required of it. 
 
 43. Skill in engineering works implies the successful adaptation 
 of the art of construction to varying circumstances. For a poor 
 country, economy is one of the essential conditions to be complied 
 with, and its requirements may be as rigid as any of those imposed 
 by physical conditions. Wholly to reject railways for a country 
 which is not able to support lines of the most costly description is 
 quite unreasonable ; and if, on a further examination in detail of 
 the probable cost and returns of any of the lines which otherwise 
 seem desirable, the expense of lines of the ordinary gauge seems 
 prohibitory, while lines of a narrow gauge would be financially 
 practicable, I should consider it a most mistaken view to reject 
 the narrow gauge line. And so with any other modification of 
 ordinary practice. For complete success in the great operations 
 which the Government of India has before it, broad views and a 
 ready adoption of all truly sound measures, whether out of the 
 usual course or not, are essential, and it will be a source of lasting 
 regret if the progress of this country, which of all others most 
 directly depends on the improvement of its means of internal 
 communication, should be retarded by the weight of administrative 
 prescription or engineering prejudice. 
 
 Again, discussing the question ^ of a line of railway between 
 Pondicherry and either INIadras or Arconum, the Government 
 of India wrote : — 
 
 27. Although we are far from opposing the adoption of a 
 narrow gauge railway when circumstances seem to indicate that 
 proper financial results cannot otherwise be obtained, we are not 
 inclined to acquiesce in the expediency of constructing short 
 lengths of railway on a gauge different from that in common use. 
 If narrow gauge lines are to have a fair field, they must be given 
 a sufficient development to render the cost of shifting goods from 
 their waggons to those of adjoining broad gauge lines unimportant 
 
 ^ Despatch to Secretary of State, No. 25, Railway, dated nth March 
 1869.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 133 
 
 in relation to the freight for the average distances over which the 
 goods are carried. We do not think that this condition can be 
 properly complied with, unless 100 or 200 miles at least of a 
 narrow gauge system is constructed, and short of this we should 
 not view favourably a proposal to execute narrow gauge lines in a 
 country so easy as that immediately south of Madras. The Known 
 desire of the French Government to obtain a railway connection 
 with Pondicheriy by a line of the full Indian gauge should, we 
 think, have much weight in the decision come to on this question ; 
 and on the understanding that the outlay will be kept down to the 
 sum valued in the estimates that have been made, about £7000 
 per mile, we are clearly of opinion that the 5 feet 6 inches gauge 
 for this railway should be adopted, as far at least as the point 
 from which the line to Pondicherry would leave it. 
 
 In calling the attention of the Secretary of State to that 
 portion of Sir John Lawrence's minute extracted above, the 
 Government of India wrote : ^ — 
 
 19. The considerations which have led us to these conclusions 
 also indicate that, under the conditions in which India is placed 
 as to the provision of capital for railways, if it appears to be 
 financially impossible to carry out railways on the full 5 feet 6 
 inches gauge, the Government should not hesitate to accept any 
 other system of construction which will afford a practical means 
 of extending these works. It is quite well known that perfectly 
 useful and satisfactory lines have been carried out on a much 
 narrower gauge, and it would be evidently unreasonable to reject 
 the provision of such railways if they afford evidence of being 
 profitable, while broader gauge lines, from their greater cost, could 
 not be undertaken with financial propriety. These remarks more 
 particularly apply to the more thinly-peopled and hilly tracts of 
 the Peninsula and Central India. Across these Provinces, main 
 lines on the full gauge have already been carried, giving com- 
 munication between Bombay and Madras on the one side, and 
 Bombay and the North -Western Provinces on the other; and 
 whatever advantage is to be obtained by the possible transfer of the 
 
 1 Despatch to Secretary of State, No. 28, Railway, of 22nd March 1869.
 
 134 RAILWAY POLICY IX INDIA 
 
 rolling stock of the north to the south of British India has thus been 
 secured. For the further extension of the network of railways, no 
 hesitation should be felt in accepting whatever system of construc- 
 tion is proved to be economically the best suited to each case. 
 
 20. We are disposed, as we indicated in our last despatch on this 
 subject. No. 25, dated 4th March, to consider that too great import- 
 ance has been attached to the value of uniformity of gauge beyond 
 certain limits. That there are many conveniences in uniformity 
 of gauge is, of course, evident, and in a compact, densely peopled, 
 and highly-civilised country like England differences of gauge have 
 been proved by experience to be inconvenient and are highly un- 
 desirable. But the inconveniences, where the distances to be 
 gone over are very great, all the centres of population and trade 
 are far apart, as is commonly the case in India, are of a secondary 
 character. For passenger traffic, changes of vehicles, if not 
 frequent, are a very minor objection, and are commonly enforced 
 on passing from the lines of one company to those of another in 
 every country. For goods, changes of vehicles represent a certain 
 additional charge for loading out of one set of waggons into another. 
 This charge will commonly not exceed the cost of transport for i o 
 miles of railway, and the practical inconvenience is no greater 
 than that which would have been caused by such an addition to 
 the distance over which the goods had to be carried. 
 
 21. The advantage obtained from any facilities of construction 
 of locomotives for a broad gauge must be set off against the 
 corresponding facilities of construction of the road and works for 
 a narrow gauge ; and where the traffic is likely to be light and the 
 cost of construction high in comparison to the net profits, the 
 balance may readily rest with the narrow gauge line. 
 
 22. It would always be our wish to conform to the 5 feet 6 
 inches gauge, if the financial objections to it \\ ere not insuperable ; 
 but we shall hope to receive your approval to our considering it an 
 open question, when the prospects of the returns from any con- 
 templated system of lines are not satisfactory, whether such lines 
 might not be constructed on a narrow gauge, say 3 feet 6 inches 
 instead of the ordinary broad Indian gauge. 
 
 The Duke of Argyll's despatch in answer to these despatches
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 135 
 
 from the Government of India makes no direct reference to 
 the question of gauge, but merely remarks, in assenting to the 
 principles enunciated, that the Secretary of State "concurs 
 generally in your reasoning, and in the more important con- 
 clusions at which you have arrived." ^ A few months before 
 this despatch was written, the Secretary of State had sanctioned 
 the execution of a railway between Lahore and Rawalpindi as 
 a State undertaking ; and in this despatch he gave sanction to 
 the commencement of a line down the Indus Valley, one from 
 Delhi and Agra to the Sambhar Lake, another from Kulburga 
 to Hyderabad (Deccan), and a fourth between Karwar and 
 Hubli. It was on the question as to the proper gauge to be 
 adopted on the Indus Valley and the Lahore-Rawalpindi lines 
 that the battle of the Indian gauges was fought. As soon as 
 the Secretary of State had given his sanction to the Govern- 
 ment of India building its own lines of railway. Lord Alayo 
 took up the matter in strong earnest. He wrote to America to 
 obtain the services of an engineer who had had experience of 
 the construction of light lines of railway, and a gentleman was 
 selected and arrived in India. 
 
 The question of gauge for certain lines was also immediately 
 taken up.- The propriety of adopting a narrower gauge, and 
 thus reducing the first cost, for many branch railways, which 
 were never likely to become through routes of communication, 
 and the fact that lines on a gauge of 3 feet 6 inches had been 
 adopted with more or less success in Norway, Queensland, 
 Chili, and in the Madras Presidency, led the Government of 
 India to think that such a gauge might well suffice for such 
 branches as those from the main lines to the salt works at 
 Sultanpur (near Delhi), to the salt works at Find Dadan Khan 
 in the Punjab, and for any lines that might be made in Burma. 
 As sufficient information on the subject of cheap lines was not 
 in the possession of the Government of India, the Secretary 
 
 1 From Secretary of State, No. 42, dated 15th July 1S69. 
 - Despatch to Secretary of State, No. in, Railway, dated i6th October 1S69.
 
 136 RAILWAY TOLICV IN INDIA 
 
 of State was asked to obtain the best professional opinions of 
 the day on the whole subject. The brief was worded as 
 follows : — 
 
 We do not desire that any absolute standard narrow gauge 
 should be fixed, as the peculiar features of very difficult country 
 may make such an extremely small gauge as that of the Festiniog 
 Railway desirable in rare instances. At the same time, we are 
 fully sensible of the disadvantages of a variety of gauges, even 
 when the lines are not in connection, especially in the matter of 
 obtaining stock and material ; and we therefore should wish to 
 ascertain what is considered by the highest authorities in England 
 on such a subject to be the narrowest gauge compatible with carry- 
 ing a passenger and goods traffic — say such as exists on an 
 average branch line in England, at a speed of say 12 miles an 
 hour — with efficiency and economy, the line being supposed to be 
 constructed through country which presents no especial engineering 
 difficulties and gradients not steeper than i in 100. Of course 
 the economy of first construction must be duly considered and 
 weighed against possible increased charge for working. 
 
 Before any report was received in answer to this request, the 
 Government of India made a further representation to the 
 Secretary of State,^ recommending the more extended use of a 
 narrow gauge for railways in India,^ and making a distinct 
 proposal that the Indus Valley and Lahore-Rawalpindi lines 
 should be constructed on a gauge of not more than 3 feet 
 6 inches. The most serious objections to the use of a narrow 
 gauge which had been felt in times past were ".based on the 
 practical difficulties met with in the construction, working and 
 maintenance, in the repair of engines, and in the economical 
 designing and safe working of the vehicle stock." But these 
 objections had been overcome ; the evidence which the 
 Government of India had collected of the working of narrow 
 gauge lines in other countries, and the interesting reports on 
 
 ^ To Secretary of State, No. 51, Railway, dated 17th May 1870. 
 - //'/(/., No. 52, Railway, dated 17th May 1870.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 137 
 
 the Festiniog and on the Mid-Wales Raihvays which the 
 Secretary of State had sent out to India,^ clearly showed that the 
 above objections to a narrow gauge had now been removed by 
 the skill of the manufacturer, and there was abundant evidence 
 to prove that a line could be constructed and stocked so as to 
 carry, on a gauge of from 3 feet to 4 feet in' width, all the traffic 
 that was likely to seek any of the secondary lines yet to be 
 constructed in India, if not indeed the traffic of the trunk 
 system. 
 
 The proposal of the Government of India was, therefore, to 
 divide the railway necessities of the country of India into two 
 classes, and make a broad distinction between the railways 
 hitherto constructed and which formed a connected system of 
 trunk lines along the great political and commercial routes, and 
 those lines which were about to be taken up and which were of 
 secondary importance in the network of railways designed to 
 open out the resources of India. These secondary lines, as 
 proposed, were very extensive, and formed systems in them- 
 selves ; and believing that if built on a smaller gauge the 
 demands for traffic would be amply met, and a large saving 
 effected in the initial cost, the Government of India came to 
 the conclusion that substantially built narrow gauge lines were 
 all that w^ere necessary. The following paragraphs of the first 
 despatch (No. 51, Railway) above quoted give the views of the 
 Government of India : — 
 
 7. In easy country the saving in first cost of a narrow gauge 
 line, compared with a line on the standard gauge, will be com- 
 paratively small. But in difficult country this saving may be 
 increased very considerably, in some cases enormously, by the 
 adoption of steep gradients and sharp curves, which have an 
 important bearing on the location, and therefore on the outlay on 
 the formation. By their introduction deep cuttings and high 
 embankments are avoided with the heavy works necessary for 
 passing the natural drainage through the latter. We may 
 
 1 From Secretary of State, No. 23, dated 13th April 1S70.
 
 138 RAILWAY POLICY IN INDIA 
 
 eliminate the eftect of the gradients from this discussion as 
 apphcable ahke to all gauges ; but the economy in construction 
 resulting from the adoption of sharp curves in a hilly country will 
 be generally admitted, though it must also be admitted that, with 
 the introduction of specially constructed engines and vehicles, 
 sharp curves can be combined with retention of a wide gauge. 
 There can, however, be no doubt that the narrower the gauge, the 
 sharper are the curves possible ; for whatever special construction 
 be applied to the rolling stock, it is applicable to the stock of all 
 gauges alike. 
 
 8. Apart, however, from all question of the sa\ing that thus 
 admits of being directly estimated, we are of opinion that the 
 practical declaration involved in the adoption of a narrow gauge, 
 that we are determined in all things to suit ourselves to the 
 requirements of the country, and not to waste a rupee in perpetu- 
 ating a standard of railway in excess of these requirements, merely 
 because it exists in certain parts where it may, or may not, be 
 suitable, will lead to economies in many indirect ways, the aggre- 
 gate of which will be important, and will contribute towards the 
 earlier consummation of the extensions already admitted to be 
 required. 
 
 9. Firmly convinced of the sufficiency of a narrow gauge to 
 carry the traffic of our secondary lines, and fully satisfied that an 
 important economy must ensue in the aggregate over the whole 
 extension system, we should fail in our duty to India if we hesitated 
 to advocate the adoption of gauge narrower than the present 
 standard. Whether that gauge should be 3 feet or 3 feet 6 inches 
 is comparatively a matter of detail. As at present informed, we 
 should regard 3 feet 6 inches as the maximum width that should 
 be adopted. An early decision on the point is called for, so as to 
 admit of timely arrangements being made for rolling stock, and 
 we should be glad if your Grace would determine it after com- 
 munication with the best authorities on the subject. 
 
 The (lOvernmcnt of India in this despatch clearly indicated 
 its desire to have good substantial lines of a narrow gauge than 
 to have light lines with slow speed on the standard 5 feet 
 6 inches gauge. Not that a high speed of forty or fifty miles
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 139 
 
 an hour drawn by heavy engines with a wheel-load of seven 
 tons was ever intended on the narrow gauge lines, but the 
 Government of India thought that the lines should be 
 substantial enough to bear locomotives with a wheel-load 
 of four tons and to stand a maximum speed of 25 miles an 
 hour. 
 
 The Government of India proposed to make the whole 
 length of line from Karachi to Lahore, and eventually on to 
 Peshawur, on a narrow gauge. This involved converting about 
 319 miles between Karachi and Lahore, which was already 
 opened to traffic, to the narrow gauge. The reasons adduced 
 are given in the following extract from despatch No. 52, 
 Railway, dated j 7th May 1870 : — 
 
 The present position of affairs is doubtless well known, but it 
 will be convenient to describe it here. From Karachi to 
 Rawalpindi a line of railway has been sanctioned, and there is 
 little room for doubt that its extension to Peshawur will follow. 
 The total distance by this route from the sea to Peshawur is 
 1080 miles, of which 320 miles ^ in two sections, separated from 
 each other by 500 miles, have been constructed and stocked on 
 the standard gauge, and are now being worked. Of the inter- 
 vening 490 miles, the section between Mooltan and Kotri of 
 about 300 miles in length has been surveyed, and the estimates 
 are now under preparation. Of the section from Lahore to 
 Peshawur, constnaction is just commencing on the 1 00 miles 
 between Lahore and Jhelum, on the understanding that the rails 
 will be laid on the Trunk Road to the standard gauge ; beyond 
 Jhelum, as far as Rawalpindi, the surveys are approaching com- 
 pletion. Between Kotri and Mooltan, and between Lahore and 
 Jhelum, the country presents no features which would demand, on 
 the score of economy in location, the adoption of a narrow gauge 
 
 Miles. 
 Karachi to Kotri . . . . .105 
 
 Mooltan (Rajghat) to Lahore .... 214 
 
 Total . . . . -319
 
 140 RAILWAY POLICY IN INDIA 
 
 in preference to the standard gauge. Beyond Jhelum the country 
 is extremely difficult, and the improvements and diversions of the 
 Trunk Road requisite to admit of rails being laid upon it must 
 entail a heavy expense, which will be reduced the narrower the 
 gauge and the sharper the curves adopted. In brief, the country 
 is such as to indicate distinctly a narrow gauge for the 1 70 miles 
 between Jhelum and Peshawur. Lahore, it should be added, is 
 the north-west terminus of the standard gauge trunk lines from 
 Calcutta and Bombay. 
 
 3. We have no hesitation in saying that were it a question of 
 the section between Lahore and Peshawur alone, we should at 
 once dismiss from consideration all idea of anything but a standard 
 gauge line. The ordinary traffic on this route, with the exception 
 of salt from the Find Dadan Khan mines, is so small, that any 
 railway of the smallest gauge or lightest rails would carry it. 
 Commercially, the line has little to recommend it. Politically, it 
 is of the highest importance, and in consequence, may, on 
 emergency, be exposed to the demands of a heavy extraordinary 
 traffic. To adopt a different gauge, then, from the lines terminating 
 in Lahore would involve the necessity of maintaining a large stock 
 in inactivity, so as to be prepared for the emergency. This would 
 be a constant source of outgoing, in addition to the loss of interest 
 on the capital sunk. 
 
 4. The question has, however, presented itself whether, as the 
 gap between Mooltan and Kotri of 500 miles has yet to be con- 
 structed, the necessary reserve of stock might not be secured by 
 adopting a narrow gauge for that line. It is true that the country 
 is such that the sa\'ing by the adoption of a narrow gauge line 
 would not, as respects the reduction that may be feasible in the 
 works, be so great as in other parts of the plains of India ; but 
 there can be no doubt that, in a sparsely populated country like 
 Sind, every possible reduction in the amount of work to be 
 executed should be taken advantage of. There would, however, be 
 a saving which, over 500 miles, may amount, it is roughly 
 estimated, to ^^200,000, apart from any further saving which may 
 be possible in stocking the line, or by using a light description of 
 permanent-way. The adoption of a narrow gauge on this gap 
 would, however, necessarily involve the relaying of the Sind and.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 141 
 
 as far as Lahore, of the Punjab hne on the same gauge. These 
 hnes are at present laid with rails of from 65 lbs. to 68 lbs. per 
 yard, chiefly on timber sleepers, about 70 miles of the Punjab 
 line being on iron bowls. The rails are heavier than would be 
 required for the impro\ed stock of the narrow gauge, but, together 
 with the stock at present working over them, can be utilised else- 
 where. The consent of the railway company would, of course, 
 be necessary ; but looking to the probable diminution of their 
 capital account that would result from the laying of these lines 
 with the lighter rails, and to the obvious advantage of uniformity 
 of gauge throughout the Indus Valley, we apprehend that a 
 proposal to this end would not prove unwelcome. The first oppor- 
 tunity under the contract of Government purchasing these under- 
 takings is as yet remote ; but it might suit the shareholders to 
 surrender them in anticipation if the proposal were not regarded 
 with favour. The difference of value between the old and new 
 rails and stock should more than cover the cost of relaying. 
 
 5. Believing then that, irrespective of any saving in first cost 
 by the use of a lighter description of permanent-way, the adoption 
 of a narrow gauge would lead to a large saving on the cost of the 
 170 miles of line north of Jhelum, to a by no means insignificant 
 saving in outlay on 500 miles between Mooltan and Kotri ; also 
 that lighter rails on a narrow gauge may be substituted on the 
 existing railways in the Indus Valley without additional outlay, 
 we would urge your Grace to accept the recommendation contained 
 in our telegram already referred to, that a narrow gauge should 
 be adopted for the entire line of railway from Karachi to Peshavvur. 
 As a light description of permanent-way may be combined with a 
 broad gauge, we have not adduced the saving from its adoption in 
 ' support of the narrow gauge, but we may mention that we 
 estimate the saving by the use of lighter rails at about ^400 a 
 mile over the 760 miles of new line to be constructed. With 
 light rails on a broad gauge, special engines, it should be noted, 
 would be required. The poor returns hitherto realised on the 
 Sind and Punjab Railways and on the Indus Flotilla do not 
 justify our forming any sanguine expectation of an early remuner- 
 ative traffic on the Indus Valley Railway, even when completed so 
 as to form a through line of communication, and afford an
 
 142 
 
 RAILWAY rOLICV IX INDIA 
 
 additional reason, if needed, for keeping down the outlay both on 
 first cost and on working to the lowest possible limits. 
 
 On the 28th June 1870, probably after perusal of the above 
 despatch, the Duke of Argyll sent the following telegram to 
 Lord Mayo :— 
 
 I am carefully considering narrow gauge question. Many 
 objections raised. What does Lord Napier think regarding 
 Indus \'alley line on military interests involved ? 
 
 The answering telegram was sent on 9th July 1870, and 
 was as follows : — 
 
 Lord Napier gives his opinion as follows : " Because nearly 
 one-third of the line from Karachi to Lahore is laid and working 
 on the broad gauge ; because of the comparatively easy country of 
 the remaining two-thirds ■; and especially because of the advantage 
 of accumulating rolling stock of other lines for military emergencies, 
 I am in favour of completing the Indus Valley line with broad 
 gauge." — Opinion ends. Viceroy only remarks that if narrow 
 gauge is built from Karachi to Peshawur, there will always be the 
 rolling stock of the entire 1 100 miles available for emergency on 
 any short section, such as that above Lahore. 
 
 Lord Napier also remarked in his note of 7th July 1870, 
 from which the above opinion was extracted, that there was 
 immediate necessity for a line of railway to Peshawur ; and as 
 he noticed that Lord Lawrence, in his scheme for the extension 
 of railways, had put down the Peshawur line to be completed 
 in 1885 and the Indus Valley line in 1890, added that — 
 
 Rather than see such a fatal delay, I should submit to any minor 
 evil, such as a break of gauge. For instance, a narrow gauge 
 might, I believe, be laid on the Lahore and Peshawur road to 
 complete the communication from Jhelum in one year without 
 turning a spadeful of earth, and would ])ay its value in political 
 security and economy of transport by the time the main line, 
 according to the programme in Sir John Lawrence's minute,
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 143 
 
 would be advanced to that point, and it might either be retained 
 or transferred for branch hnes to our hill stations. 
 
 Lord Mayo did not think that the actual state of the case 
 was quite before Lord Napier when he recorded the above 
 note, so he put an explanatory note on record.^ He pointed 
 out that no importance should be attached to the dates on the 
 map accompanying Lord Lawrence's minute ; that the Indus 
 Valley line had been recommended to the Secretary of State 
 as one of the first which should be made ; and " that the 
 rapidity of railway construction can only be regulated in the 
 first instance by the financial strength of the Empire, and in 
 the second by the power of organisation of establishment and 
 labour" which it is possible to develop. Considering the 
 extremely difficult nature of the country beyond Jhelum, and 
 the resulting cost of a railway on the 4 feet 6 inches gauge. 
 Lord Mayo also demonstrated that no line of railway ought to be 
 made north of Jhelum which should be capable of carrying the 
 stock of the East Indian or Delhi lines ; and consequently " if 
 a narrow gauge line is made the whole way from Karachi to 
 Peshawur, the whole rolling stock of a line, iioo miles in 
 length, will always be available for working on any portion of 
 the system ; and therefore the narrow gauge, constructed as 
 suggested, will give a much greater facility for the transport of 
 troops and military stores from Lahore to all parts of the 
 frontier, north or south, over that of a line which would be 
 composed in part of light broad gauge line." 
 
 The Secretary of State again telegraphed to the A'iceroy 
 that strong opposition was being shown to the narrow gauge as 
 applied to strategical lines of railway, but that there was a 
 general agreement to the narrow gauge when the strategical 
 lines had been completed. He again asked if the Government 
 of India had fully considered how far the standard 5 feet 
 6 inches gauge, with a lighter rail, would be best for the 
 
 1 Note by the Governor-General, dated 2Sth August 1870.
 
 144 RAILWAY I'OLICV IN INDIA 
 
 Peshawur and Indus Valley lines. In reply to this, the 
 following telegram was sent on the 5th October 1870 : — 
 
 The Punjab and Sind State Railways should in any case be 
 laid with light rails suited to engines of moderate wheel weights, 
 and the entire rolling stock should be capable of running from 
 Peshawar to Karachi. The special engine stock will rule the 
 transporting power of the line, whatever the gauge may be ; and 
 if light rails on standard gauge be adopted on northern and 
 middle sections, we must provide new engines for whole length, 
 otherwise efficiency of line on light sections, but particularly 
 above Jhelum, will on an emergency be reduced by one-third 
 compared with the line of uniform description throughout. For 
 our views as to difficulty of country and character of line above 
 Jhelum, see Railway Proceedings, No. 44, for August. I con- 
 sider every line now contemplated north of the Nerbudda in a 
 great degree strategical. 
 
 Meanwhile, in accordance with the desires of the Government 
 of India, the Secretary of State had nominated a Committee 
 of engineers to settle the actual width of narrow gauge lines 
 which would be most suited to the wants of India. This 
 Committee reported in September 1870, and the following 
 summary of their proposals, and of opinions of several of the 
 consulting engineers to the London Board of the Indian 
 Guaranteed Railway Companies, is extracted from Mr. Danvers' 
 Report on Indian Railways for the year 1870: — 
 
 12. A Committee, consisting of Colonel R. Strachey, R.E., 
 C.S.I., Colonel C. H. Dickens, R.A., C.S.I., Mr. John Fowler, 
 C.E., and Mr. A. M. Rendel, Consulting Engineer to the East 
 Indian Railway Company, was accordingly appointed " to con- 
 sider the precise gauge and general character for and a\'erage 
 narrow gauge line of railway in India." The result of their 
 investigations and deliberations was given in two reports — one 
 containing the conclusions at which all the members of the Com- 
 mittee, except Mr. Fowler, had arrived ; the other expressing
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 145 
 
 that gentleman's opinion alone. All, including Mr. F'owler, were 
 in favour, on the ground of economy, of introducing a narrower 
 gauge in India than the present standard of 5 feet 6 inches in 
 districts where a break of gauge would not be productive of 
 serious inconvenience, but they differ as to what that gauge 
 should be. Colonel Strachey, Colonel Dickens, and Mr. Rendel 
 recommended 2 feet 9 inches ; Mr. Fowler, 3 feet 6 inches. 
 The opinion of the former was based upon the conviction that to 
 obtain the greatest economy in construction, and consequently 
 the greatest possible extension of railways in India, the gauge 
 selected should be not only narrow, but the narrowest which 
 would combine convenience of transport for various goods and 
 passengers with reasonable speed, and with economy and safet\- 
 in working, and they were persuaded that these conditions would 
 be fulfilled by a 2 feet 9 inches gauge. Mr. Fowler, on the other 
 hand, was of opinion that a width of 3 feet 6 inches should be 
 adopted, on the clear ground that it was not greater in first cost 
 of works and rolling stock than a gauge of 2 feet 9 inches, and 
 was greatly superior in carrying capacity, convenience, and 
 economical working. The other members of the Committee 
 considered that the cost of a railway was in proportion to its gauge ; 
 he did not. He felt, to secure the greatest simplicity and 
 economy of construction and working in a locomotive, a gauge 
 of 3 feet 6 inches was required. They thought that engines of 
 sufficient power might be put on a 2 feet 9 inches gauge to draw 
 at a sufficient speed the largest traffic which the lines for which 
 a narrow gauge is suitable are likely to carry. The same differ- 
 ences of opinion on similar grounds are expressed in regard to 
 the rolling stock of the respective gauges. Opinions were also 
 given on the subject by Mr. John Hawkshaw, as Consulting 
 Engineer to the Madras and the Eastern Bengal Railways, and 
 by Mr. G. P. Bidder, as Consulting Engineer to the Sind, 
 Punjab, and Delhi Railway. They are both opposed to the 
 application of any other than the existing gauge to future lines 
 which may be required as branches to extensions of the systems 
 of railways with which they are connected. They attach great 
 importance to the evils and inconveniences of a break of gauge, 
 and contend that the very small saving, if any, which might be 
 
 L
 
 146 ■ RAILWAY POLICY IN INDIA 
 
 secured by the adoption of a narrow gauge would be more than 
 counterbalanced by those disadvantages. Mr. Hawkshaw, how- 
 ever, admits in the early part of his report that if " it were a well- 
 ascertained fact that there are districts in India where, having 
 regard to financial reasons, a railway on a narrower gauge could 
 be made, but where a railway on the existing gauge could not 
 and ought not to be made, then that would be a case in which 
 a narrow gauge might be considered as an absolute necessity." 
 He calculates, upon certain assumptions, that the difference in 
 the first cost of a heavy railway on the 5 feet 6 inches, and a 
 light railway on the 3 feet 6 inches gauge would be ^1810 per 
 mile, and that saving in maintenance and renewals of permanent- 
 way would be .^50 per mile per annum, or, if capitalised at 
 twenty years' purchase, ^1000. He considers, however, that 
 the object of economy would be best attained by constructing a 
 lighter system of railways on the existing gauge, and calculates 
 by this means ^1250 per mile might be saved in the first cost, 
 and £40 per annum in maintenance, or ^800 capitalised. Thus, 
 under the least favourable view of the case, a saving of about 
 /[800 per mile is admitted. The case above described in Mr. 
 Hawkshaw's words would probably be regarded as the rule, 
 instead of the exception, for future lines in India, If 10,000 
 miles are to be laid out, economy must be observed in the con- 
 struction of every mile, and a saving of ^800,000 in every 
 thousand miles, or of ^8,000,000 in 10,000 miles, becomes a 
 matter of importance. 
 
 13. A much greater saving, however, is expected by the 
 advocates of the narrow gauge. I may mention, in passing, that 
 the estimates for the Carnatic Railway, on the broad and narrow 
 gauge systems, made by Mr. C. Douglas P^ox, the Consulting 
 Engineer to that Company, show a saving of ^1700 per mile in ' 
 favour of the latter. The same capital would thus make 1 1 2 
 miles of the 5 feet 6 inches, or 151 miles of 3 feet 6 inches. I 
 am informed, also, that in America 80 miles of a line which is to 
 be 850 miles in length has been laid on a 3 feet gauge at a cost 
 of ^2500 per mile, including rolling stock, the rail being 30 lbs. 
 to the yard, joined by fish-plates ; the sleepers pine wood, 5 feet 
 long, set 2 feet 6 inches apart.
 
 HISTORY OF THE GAUGE ON IXDLVX RAILWAYS 147 
 
 14. The existence of another gauge in the country necessarily 
 comphcates the question of introducing a narrow one ; and in 
 some places and situations the inconveniences of a break of gauge 
 may be so great, or the value of a line of communication for 
 strategical purposes may be so impaired by it, as to make it 
 worth while to pay the difference in cost ; but under ordinary 
 circumstances these kinds of difficulties may be greatly reduced 
 by improved mechanical appliances and good traffic arrange- 
 ments. The condition of things, moreover, in this country, where, 
 within short distances, and with an immense traffic, a break of 
 gauge has been found to be most burdensome and objectionable, 
 is very different from that of India. 
 
 The Duke of Argyll answered the Government of India in 
 despatch No. 72, dated 26th October 1870. Notwithstanding 
 the very decided proposals made by the Government of India 
 to make the Indus Valley and Peshawur lines on a narrow gauge, 
 and the recommendations of a Committee to adopt a gauge of 
 2 feet 9 inches, and of one member of that Committee to adopt 
 a gauge of 3 feet 6 inches, the Duke of Argyll would give no 
 definite orders as to the kind of railway to be constructed over 
 those lengths, or as to the width of the narrow gauge if such 
 be adopted ; but he confined himself to expressing his agree- 
 ment with the desire of the Government of India to study rigid 
 economy in the construction of these new railways, and eventu- 
 ally concluded by leaving the main questions to be decided 
 by the Viceroy, Lord Mayo. This despatch is a very im- 
 portant one in the history of the gauge question. 
 
 The proceedings of the Government of India on receipt of 
 this despatch are best summed up in the memorandum which 
 Lord Mayo put on record,^ stating his reasons for adhering to 
 the previous policy of the Government of India, and deciding 
 that the Indus Valley and Peshawur Railways should be on a 
 narrow gauge, and that the width of that gauge should be 3 
 feet 3 inches. The question of adopting in India a metrical 
 
 1 Dated 30th December 1870.
 
 148 RAILWAY POLICY IN INDIA 
 
 system of weights and measures was then under discussion by 
 the Government of India, and a draft bill was actually before 
 the Legislative Council. As the adopted gauge, 3 feet 3 
 inches, was so nearly the same as the proposed metrical 
 standard, the narrow gauge for railways was changed very 
 shortly afterwards from 3 feet 3 inches to 3 feet 3I inches, the 
 length of a metre. The following is the memorandum : — 
 
 We recommended the adoption of the narrow gauge from 
 Lahore to Peshawur, mainly on the grounds that it would be 
 possible to construct the whole line from Lahore to Karachi on 
 this principle ; this would ultimately make available the entire 
 ordinary rolling stock of iioo miles of railway, which we con- 
 ceive is amply sufficient for any military emergency. 
 
 The question, therefore, that we submitted to Her Majesty's 
 Government was, whether it would be desirable to break the 
 gauge between Mooltan and Kotri, it being assumed that, if this 
 were decided in the negative, a narrow gauge railway northward 
 from Lahore would not be recommended. After more than six 
 months the whole question is now returned to us for final 
 decision. The result will be that some considerable delay must 
 take place in the commencement of active work on the Lahore 
 and Jhelum line. This cannot be helped, and it is now our duty 
 to arrive at a decision as rapidly as possible and forward it to 
 the Secretary of State. We should endeavour then to recom- 
 mend the construction of such a railway as will be amply 
 sufficient for all the requirements of the country, and be con- 
 structed at the lowest possible cost. Our decision in this will 
 definitely fix what the Indian narrow gauge is to be. 
 
 The history of our Indian railways does not show that a 
 sudden outburst of traffic can reasonably be expected ; and we 
 cannot anticipate, in traversing less fertile and poorer countries 
 than have hitherto been occupied by existing lines, the receipts we 
 shall obtain in the first instance will increase in the same propor- 
 tion as they occasionally do on American and European lines. 
 
 It is impossible to define \\ith any degree of accuracy what 
 the traffic on the new Indian railway is likely to be. The results 
 of the Delhi and Lahore and Mooltan and Lahore lines are not
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS H9 
 
 encouraging, and I have no reason to suppose that they will 
 suddenly improve. On the other hand, we must be certain that 
 the railways we are about to construct will amply provide for all 
 military wants and probable commercial requirements for a 
 number of years. 
 
 I therefore asked the Council on our last meeting to consider 
 whether we should adhere to our former recommendation, that a 
 narrow gauge should be adopted between Lahore and Karachi on 
 one side, and Lahore and Peshawur on the other. The Council 
 having come unanimously to the conclusion that we should abide 
 by our former recommendation, renders it unnecessary to discuss 
 that question further. A similar conclusion was also arrived at 
 with regard to the Rajputana and Central India lines. 
 
 It remains, therefore, only to consider what should be the 
 dimensions of the narrow gauge line which it will be our duty 
 now to recommend to the Secretary of State. 
 
 The great differences of opinion which exist between the high 
 authorities who were consulted by the Secretary of State in this 
 matter, as shown in the accompanying papers, involves us in 
 much difficulty. 
 
 In considering unprofessionally such a subject, and in endea- 
 vouring to arrive at a sound conclusion as between the two narrow 
 gauges recommended, viz. 3 feet 6 inches and 2 feet 9 inches, 
 we can only be guided by experience and authority. In this 
 view there is no doubt that we should be quite safe in adopting 
 the 3 feet 6 inches gauge ; for it has been well and effectively 
 tried, and is admitted to be sufficient for the conveyance of a 
 large amount of traffic. 
 
 It is also a fact worthy of notice, that those Governments and 
 authorities who are now desirous of providing cheap narrow gauge 
 railways, namely Russia, Canada, Queensland, and Norway, have 
 all adopted the 3 feet 6 inches gauge. 
 
 In Norway a railway of that dimension, 120 English miles 
 long, exists, and it is generally admitted that it has proved to be 
 completely suited to the light traffic of that country. 
 
 No such experience is available with regard to the 2 feet 9 
 inches gauge. The only line of any length of such small 
 dimensions that I know of is the Festiniog Railway. This is a
 
 ISO RAILWAY POLICY IN INDIA 
 
 short line, 2 feet gauge, with comparatively heavy rails, 49 lbs. 
 per yard ; it is worked in a hilly country under peculiar circum- 
 stances. 
 
 Therefore we have, as between a 3 feet 6 inches and a 2 feet 
 9 inches gauge, little or no practical experience to guide us. We 
 know very little of the latter, but we know that the former has 
 succeeded. 
 
 I have no means of showing very precisely the difference of 
 cost between a 3 feet 6 inches and a 2 feet 9 inches gauge. 
 
 Mr. Fowler, in paragraph 24 of his letter, puts the difference of 
 cost between a 3 feet 6 inches and a 2 feet 9 inches railway at 
 ^^^82, los. per mile for Scotland and ^45 for Norway; for the 
 Indus Valley he puts it at ;!^45 a mile with iron, and .£110 with 
 wooden sleepers ; but he says that in consequence of the additional 
 length and cost of siding which a 2 feet 9 inches gauge would 
 require, the relative cost would scarcely differ. He further states 
 that, with regard to bridges, the dimensions for the strength and 
 stiffness required would always include the width of a railway of a 
 3 feet 6 inches gauge. 
 
 The weight of rails would probably be the same. I am not an 
 advocate of very light rails on any Indian railway, and would 
 recommend a rail proportionately lighter than the 60 lbs. Oude 
 and Rahilkund rail, which would be about 40 lbs. for a narrow 
 gauge. 
 
 On the whole, therefore, according to the information at our 
 disposal, I cannot put the difference of cost as between a 3 feet 
 6 inches and a 2 feet 6 inches gauge with wooden sleepers, and 
 say a 40 lbs. rail, at a greater amount than /loo a mile. This 
 over the distance from Mooltan to Kotri and from Lahore to 
 Peshawur, which is about 700 miles, makes only a difference of 
 ^70,000 — a sum which is hardly to be regarded if very superior 
 advantages can be obtained. 
 
 I have no reason to suppose that the working expenses of a 
 3 feet 6 inches or a 2 feet 9 inches railway would differ very 
 materially. 
 
 The size of the carriages on the different gauges proposed is a 
 matter of the first importance. 
 
 I assume that in most railways, and especially those of narrow
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 151 
 
 gauge, the width of the carriage in the clear may be equal to 
 double the width of the gauge. 
 
 I am not aware whether on any first-class line carriages whose 
 platforms are double the width of the gauge are actually at work ; 
 but Mr. Fowler appears to be of opinion, in paragraph 13 of his 
 letter, that there can be no objection to a 3 feet 6 inches gauge 
 bearing a carriage 7 feet wide. But in none of the papers placed 
 at my disposal does the possibility of increasing the breadth of 
 the carriage beyond this proportion appear to be contemplated. 
 
 Whether it would be safe then to put a carriage 6^ feet or 
 7 feet wide upon wheels 2 feet 9 inches apart, or a carriage 8 feet 
 wide upon 3 feet 6 inches wheels, I can give no opinion which 
 would be of value. This is a point for engineers to discuss, and 
 one that I suspect nothing but practical experience would satis- 
 factorily solve. I am not aware that the experiment has been 
 tried, and certainly in ordinary conveyances steadiness could not 
 be obtained under such conditions. I believe, therefore, that 
 twice the width of the gauge is the limit of breadth in the con- 
 struction of our carriages which we ought to recommend. 
 
 If we adhere to the principle that this limit ought not to be 
 exceeded, it would take 6 inches off the internal width of the 
 vehicles, and render a carriage of the 2 feet 9 inches gauge 
 
 5 feet wide ; of a 3 feet gauge, 5 feet 6 inches wide ; of a 3 feet 
 3 inches gauge, 6 feet wide ; and of a 3 feet 6 inches gauge, 
 
 6 feet 6 inches wide. 
 
 I am inclined to think that from 6 feet to 6 feet 4 inches is the 
 least width that can be conveniently given to a carriage to carry four 
 passengers seated across. I put European and first-class passenger 
 traffic out of the question altogether. With 6 feet 4 inches you 
 could get 1 9 inches for four passengers in a row, which is one-fifth of 
 an inch less than is now given to the new third-class carriages on 
 the East Indian Railway, and which is not more than sufficient. 
 
 There is no advantage to be obtained either in gradients or 
 curves as between any of the gauges. This, however, may be 
 doubted as between a very broad gauge and a very narrow one ; 
 but certainly no increased facility in either gradients or curves is 
 gained by a 2 feet 9 inches gauge over one of 3 feet 6 inches or 
 ^ feet 3 inches.
 
 152 RAILWAY POLICY IN INDIA 
 
 A very serious further objection which is urged to the very 
 narrow gauge is, I beheve, that which is described in the 12th 
 paragraph of Mr. Fowler's letter as regards locomotives. Mr. 
 Fowler, who is a high authority on a practical question of this 
 kind, states from experience that, in order to secure the greatest 
 simplicity and economy in construction and working, a gauge of 
 3 feet 6 inches is required for the engine. 
 
 He says that a locomotive may be constructed for almost, any 
 gauge, but that no locomotive, simple or strong, can be made with 
 any great chance of success to work on a gauge less than 3 feet 
 6 inches ; and I may add, in confirmation of this opinion, that 
 Mr. Fell told me in regard to his engines, the great mechanical 
 difficulty with which he had to contend was the extreme narrowness 
 of his gauge, which is 3 feet jh inches : this obliged the mechanism 
 to be compressed into so small a compass that, unless workman- 
 ship and material of the very first class were used, breakages were 
 always occurring. 
 
 The defective character of his machinery, which was made in 
 Paris, has been the greatest difficulty with which Mr. Fell has had 
 to contend from the commencement of his enterprise. No undue 
 weight, however, should be attached to this opinion, because the 
 mechanism for working the central rail complicates the ordinary 
 construction of the locomotive, and I am told that it has lately 
 been found desirable to use two engines on Mr. Fell's railway, one 
 for the central and the other for the outer rails. However, it 
 must be recollected that Mr. Fell's gauge is 10?, inches wider than 
 that advocated by Colonel Dickens and Colonel Strachey. 
 
 With regard to the carrying capacity, it is affirmed by Mr. 
 Fowler that a 3 feet 6 inches gauge has a carrying capacity of 63 
 per cent greater than the 2 feet 9 inches. I am not prepared to 
 adopt this opinion without further proof, but still it is a statement 
 gravely made on high authority. 
 
 It is said that even a 2 feet 9 inches gauge might be too much 
 for the wants of the country, and that if a 3 feet 6 inches width 
 were adopted, the stock would be little lighter than the existing 
 stock of the East Indian Railway. 
 
 I cannot but think that the power of considerably increasing 
 the carrying capacity of a railway is a great recommendation in
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 153 
 
 its favour, because for the earlier periods of its existence it will be 
 quite possible to build lighter and smaller vehicles than will 
 ultimately be used. 
 
 But lightness is by no means regulated by gauge, and we can 
 build as light a carriage on the standard gauge as on any other. 
 
 The weight of the carriage ought to be regulated, as nearly as 
 possible, by the exact work it is expected to perform. 
 
 I think, therefore, these papers demonstrate that there is no 
 important difference in cost between a 3 feet 6 inches and a 
 
 2 feet 9 inches gauge ; that experience shows that a strong service- 
 able railway on the former size can be made with perfect success ; 
 that no difficulties with regard to locomotives are likely to occur ; 
 that its cariying capacity is considered much greater, and that, as 
 far as passenger traffic is concerned, more comfort and con- 
 venience can be obtained than on the narrow line. 
 
 I cannot venture to say that the applicabihty of a railway to 
 India on the 2 feet 9 inches gauge is disproved. Hereafter it may 
 turn out that it deserves all that has been said of it. But, on the 
 other hand, it must be admitted that weighty objections have been 
 urged against it ; whereas as regards the gauge 9 inches wider 
 success is proved, and it is certain that it possesses reciuirements 
 sufficient to provide for the locomotive wants of a country where 
 a limited amount of traffic only can be expected, and considerable 
 'distances have to be traversed. 
 
 I confess I am unwilling to embark on anything in the shape 
 of an experiment in a matter of such enormous importance. An 
 error made now would be irreparable. 
 
 We must endeavour by every means to secure the most 
 absolute certainty of success. 
 
 I have the greatest respect for the ability and judgment of the 
 experienced engineers who have recommended the 2 feet 9 inches 
 gauge, but the responsibility of selection now devolves upon my 
 shoulders, and I am not prepared to recommend the adoption in 
 India of any system which has not stood the test of experience, and is 
 not supported by the almost unanimous opinion of skilled engineers. 
 
 I think, therefore, that the adoption of a 3 feet 6 inches gauge 
 would be a thoroughly safe course for us to take ; but if a 3 feet 
 
 3 inches one will provide for all the possible requirements of the
 
 154 RAILWAY POLICY IX INDIA 
 
 country, I should prefer it. Some saving in cost would be gained. 
 The small reduction in width could not affect the locomotive 
 question, and a considerable economy of space would be obtained. 
 This would give a carriage of 6 feet width in the interior, and 
 would seat four third-class passengers in a row, allowing i8 inches 
 to each seat. 
 
 This is quite as small accommodation as, in my opinion, ought 
 to be given, and 1 have some doubts whether it is quite sufficient. 
 
 On the Eastern Bengal Railway, the horse-boxes are 8 feet in 
 the clear, 7 feet in the interior, divided into three partitions, two 
 of 2 feet 6 inches, and the middle one of 2 feet. This is, I 
 think, too small. 
 
 The 3 feet 3 inches gauge would give, according to these pro- 
 portions, a horse-box 6 feet 6 inches in the clear, and 5 feet 6 
 inches in the interior. This would give a space for two horses 
 abreast of 2 feet 9 inches each (including the partition), which is 
 precisely the space allowed on the horse-boxes of the East Indian 
 Railway. 
 
 If, however, a great number of horses have to he moved in a 
 short time, horse-boxes would be little used ; and if a rapid transit 
 is desired for military objects, the main portion of the troopers 
 must always be carried in ordinary goods waggons. 
 
 Six feet in the interior of a vehicle will be sufficient to carry 
 gun-carriages for the heaviest artillery whose wheels do not, in 
 scarcely any case, exceed 5 feet ^h inches. 
 
 For goods traffic, especially for the bulky goods, such as un- 
 pressed cotton, jute, etc., the additional space will be very 
 \aluable ; and if a very small traffic is expected, short carriages 
 can be used. 
 
 I incline to the opinion that the 40 lb. rail should be adopted, 
 because it is the weight which experience shows has been most 
 generally adopted for lines of this dimension, and bears a fair 
 proportion to the 60 lb. rails of the Oude and Rahilkund standard 
 gauge. Bui at the same time I do not wish to say more than 
 that, with 3 tons on the engine wheel, and 2 tons on the waggon 
 wheel, the rail should not be lighter than 36 lbs. to the yard. 
 The final decision on this must be reserved until the precise 
 character of engines and stock on each line is determined.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 155 
 
 It appears that in such a country as the Indus Valley or 
 Rajputana a railway of this kind ought to be built for less than 
 ^5250 a mile, and according to Colonel Strachey for ^2645 less 
 than the standard gauge with 60 lb. rails, or /1707 less than the 
 standard gauge with 45 lb. rails; and it is probable that as we 
 gain experience, the cost might be considerably lessened. 
 
 According to the best consideration I can give to this extremely 
 difficult question, I recommend the adoption of a 3 feet 3 inches 
 gauge. 
 
 This decision as to the width of the narrow gauge, and as 
 to the lines that were to be made on that gauge, was duly 
 reported to the Secretary of State. ^ These despatches stated 
 that the Government of India generally accepted the views 
 expressed by the Duke of Argyll in paragraphs 5 to 1 1 of his 
 despatch No. 72, Railway, dated 26th October 1870, already 
 quoted, "as to the main military and financial considerations 
 that arise, and that we are satisfied that the economy likely to 
 be obtained from the adoption of the narrow gauge will justify 
 our accepting the break of gauge at Lahore with such in- 
 conveniences as it involves." The matter had been left to the 
 decision of the Governor-General ; and no sooner had Lord 
 Mayo given his verdict in favour of the narrow gauge, than 
 orders were issued that the Indus Valley railway, the Lahore- 
 Rawalpindi line, the lines in Rajputana from Agra and Delhi 
 towards Ajmere, and the line from the Great Indian Peninsula 
 Railway to Indore in Central India should be constructed on 
 the narrow gauge. The section between Lahore and Jhelum 
 had already been commenced as a light railway on the 5 feet 
 6 inches gauge, but the work had not progressed sufficiently far 
 to cause any considerable alterations to be required for the 
 narrower gauge. Surveys and estimates for the other lines 
 were then proceeded with on the basis of the gauge being a 
 metre ; and the construction of the lines on that gauge was 
 vigorously prosecuted. 
 
 1 Despatches Nos. 2, Railway, and 3, Railway, of loth January 1S71.
 
 156 RAILWAY POLICY IN INDIA 
 
 During the year 1870 the London newspapers contained 
 many proposals for narrow gauge and light railways, and many 
 were the arguments brought forward showing their superiority 
 over the ordinary standard gauges. In a report on the Festiniog 
 Railway to the Secretary of State for the Colonies by Mr. (now 
 Sir) G. L. Molesworth, who was at that time Director of Public 
 Works in Ceylon, the merits and demerits of these lines were 
 discussed. His conclusions were that the arguments claimed 
 for the 2 feet gauge of the Festiniog line were not borne out 
 by the facts of the case, and that its superiority over the 
 ordinary gauge of 4 feet 8i- inches under all circumstances 
 was quite delusive. The merits of narrow gauge lines were, 
 however, from time to time still discussed in the newspapers ; 
 and when it became known that it was decided to construct 
 the Indus Valley and the Lahore-Rawalpindi Railways on a 
 narrow gauge, the outcry was great. First and foremost in 
 vehemence against the decision was Mr. Lee Smith, the 
 engineer w^ho had been originally sent out by the Secretary of 
 State to construct the Lahore -Rawalpindi Railway, but who 
 had left the Government service before much advance had 
 been made in the prosecution of the works ; and the protests 
 were continued by many engineers of high professional standing 
 in England. Mr. Lee Smith maintained that he could construct 
 a light railway on the 5 feet 6 inches gauge from Kotri to 
 Mooltan and from Lahore to Peshawur for a sum of money 
 differing only very slightly from the accepted estimates for 
 those lines on the metre gauge, and stated that a firm of con- 
 tractors were prepared to carry out the works on the strength 
 of his estimates. During 1872 considerable correspondence 
 took place between Mr. Lee Smith and the Secretary of State, 
 and this was transmitted to India for information. It was, 
 however, not quite understood whether this correspondence 
 was only sent for information, or whether the Secretary of State 
 desired an expression of opinion from the Government of India 
 (Lord Northbrook, Governor-General) as to the question of the
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 157 
 
 break of gauge on the two railways. The Duke of Argyll, 
 however, telegraphed that he had hitherto considered the 
 question of gauge as settled, and deprecated any action which 
 might unsettle that decision. The desultory discussion amongst 
 the engineers in England, however, still continued ; and as it 
 was much desired to discuss the matter in a rational manner, 
 the Secretary of State permitted the reading of a paper on the 
 subject before the Institute of Civil Engineers. This paper, 
 w^hich was read on the 4th February 1873 by Mr. W. T. 
 Thornton, C.B., the Secretary for Public Works at the India 
 Ofifice, stated simply and openly the reasons which led the 
 Government of India to adopt a narrower gauge, and was 
 followed by a lengthy, and at times acrimonious, discussion. 
 
 No direct action was taken on this discussion, but it led 
 shortly afterwards to a discussion on the same subject in the 
 House of Commons ; and although much difference of opinion 
 was expressed during the debate, " Mr. Gladstone intimated 
 that the arguments on both sides would be carefully examined 
 in the light of the discussion, and in the light of such other 
 facts and arguments as may be considered to bear upon the 
 policy involved." In consequence of all this opposition to the 
 change of gauge, and in conformity with the promise made by 
 the Prime Minister in the House of Commons, the Duke of 
 Argyll reviewed the whole state of the case in a lengthy 
 despatch to the Government of India. ^ In this review the 
 Secretary of State showed that lines on the 5 feet 6 inches 
 gauge connect the three presidency towns of India, and also 
 are in connection with the principal centres of commerce in 
 the Ganges valley and as far north as Lahore ; that the amount 
 of money sunk in guaranteed capital of railways was very large 
 — nearly ^94,000,000 — and that the produce of the railways 
 only returned a very small percentage on the outlay ; and that 
 as far as the commercial aspects of the districts round Lahore 
 
 ' 1 Despatch from Secretary of State, No. 54, Railway, of 27111 March 
 1873-
 
 15S RAILWAY POLICY IX INDIA 
 
 were concerned, it appeared that, Karachi being its natural 
 outlet, a railway on the metre gauge would amply cope with 
 commercial demands. But as far as the military requirements 
 of the north-west frontier are concerned, the matter might 
 now be different ; it was on this aspect of the question that 
 doubts of the soundness of the policy pursued had been raised. 
 With reference to these arguments, and dismissing the question 
 of danger in India from internal disturbance, the Duke of 
 Argyll wrote : — 
 
 29. It is evident, therefore, that whatever special importance is 
 attached in many minds to the adoption of the standard gauge 
 beyond Lahore is connected with the special danger of invasion 
 from without. 
 
 30. On this important part of the subject, the facts presented 
 by the recent war in Europe have very naturally had a powerful 
 influence on opinion. And I have no hesitation in saying that, if 
 the circumstances of India were the same, or had even any analogy 
 with the circumstances of France and Germany, the argument for 
 uniformity of gauge would be conclusive. 
 
 31. I have therefore to direct your attention to the difference, 
 amounting to contrast, which exists between the two cases. 
 
 32. All the leading States of Europe are in close contact with 
 other nations having armies more or less equal to their own — 
 possessing at least the same advantages of science, of organisation, 
 and of speedy access to their mutual frontiers. The consequence 
 is, that in all these cases great armies with powerful artillery can 
 be placed at very short notice in a position to invade their 
 neighbours. 
 
 33. Since the defeat and dissolution of the army which had 
 been trained under Runjeet Singh, and the conquest of the 
 Punjab, no similar conditions exist on our Indian frontier. There 
 is no nation upon that frontier, or for many hundred miles beyond 
 it, with any military science, with any trained or regular army, or 
 with any arliller)- whatever. 
 
 34. I do not place out of view the possibility — although I do 
 place it in a distant future — of a great European power organising
 
 HISTORY OF THE GAUGE OX INDIAN RAILWAYS 
 
 •59 
 
 offensive operations from beyond the north-west frontier. But 
 even if such operations were possible at the present time, we may 
 be sure of this, that no such invasion of India from that quarter 
 could be effected without the threatened danger being known to 
 us not only many weeks, but many months, before it could actually 
 arise. 
 
 The conclusions arrived at by the Secretary of State were 
 that a metre gauge railway from Karachi through Lahore to 
 Peshawur would be amply sufficient for the trade of the 
 country ; that such a line would also suffice for all military 
 demands in the event of a war on the frontier : and that, con- 
 sequently, only weighty considerations of political necessity 
 would induce him to reopen the question of the gauge of 
 these frontier lines. The following are the concluding para- 
 graphs of the despatch : — 
 
 37. In connection with such a system of narrow gauge lines, 
 and a view to increase the amount of rolling stock available upon 
 portions of it, it may be wise ultimately to lay down a third rail on 
 the section of the trunk line between Lahore and Delhi, thus 
 bringing into play the whole carriage accommodation of the pro- 
 jected Rajputana line. But even without this junction, the 
 amount of rolling stock on the Indus Valley and Punjab lines 
 alone would be sufficient, within very moderate limits of time, to 
 afford the most important facilities for military movement. 
 
 38. It has indeed been argued, not unnaturally, that if the 
 danger of invasion be really so slight and so distant, these frontier 
 lines should not be made at all. But this does not follow. The 
 time which would be ample for the working of a narrow gauge 
 line, with even the narrowest estimate of accommodation, would 
 not be adequate for the construction of any line whatever. More- 
 over, although an invasion requiring the concentration of great 
 armies is a very remote danger, border forays and disturbances, 
 and even incursions of a more serious character, are possible and 
 probable enough. These, if unchecked and unpunished, are 
 never without effect on the tranquillity of India. To meet these, 
 the facilities which would be afforded by the narrow gauge in
 
 i6o RAILWAY POLICY IN IXDIA 
 
 moving amply sufficient bodies of men are facilities so valuable 
 and important, that we are bound to place them in the hands of 
 the Government of India, if we can do so at a moderate cost. 
 
 39. These are the considerations which mainly determine my 
 assent to the construction of lines in the Punjab and down the 
 valley of the Indus ; and I still regard them as sufficient, provided 
 these lines can be constructed on the cheaper system now generally 
 admitted to be suitable for subsidiary lines. 
 
 40. Your Excellency will doubtless bear in mind that the Khyber 
 Pass is not the only, nor even perhaps the most probable, direction 
 in which the invasion of India by a large army would be attempted. 
 If, therefore, this danger is to determine our policy, we must be 
 prepared to extend the more costly gauge of railways to much 
 more distant points, and indeed to construct the whole system of 
 lines in connection with the Indus Valley on the same scale of 
 outlay. If the cheaper gauge be adopted throughout, there will 
 be no break of gauge beyond our military base throughout the 
 whole provinces of the Punjab and of Sind. But the evil of a 
 break of gauge, whatever it may be, will at once arise unless the 
 standard be adopted not only for the line to Peshawur, but for all 
 other lines which may yet have to be constructed in those 
 provinces. 
 
 41. Your Excellency will also doubtless bear in mind that 
 although attempts have been made to show that the expense of 
 working and of maintenance on the standard gauge need not be 
 materially greater than on the narrow gauge, yet these attempts 
 must be regarded as based on the same methods of reasoning 
 which you have rejected as regards the cost of construction. The 
 additional capital which is sunk in construction is therefore only 
 part of the loss which will be incurred. The dead weight arising 
 out of annual loss on traffic will be heavily increased on lines 
 which must be of a comparatively unremunerativc character, and 
 the difficulty you experience in diminishing expenditure and in 
 abstaining from new taxation will be increased. 
 
 42. Lastly, looking to the many other lines into and through 
 richer provinces of India which are now competing for the 
 favourable attention of your Government, but from which I have 
 been obliged to withhold or to suspend my sanction until clearer
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS i6i 
 
 evidence be forthcoming as to their remunerative character, I am 
 bound to say that nothing, in my opinion, short of very weighty 
 considerations of poHtical necessity would justify such a large 
 increase of cost on the subsidiary lines as that which you report 
 would be involved in a departure from the decision of Lord 
 Mayo's Government on the gauge of those lines. 
 
 43. Should any such considerations suggest themselves to your 
 mind, I shall deem it my duty to weigh them carefully in Council. 
 But short of such considerations, and on any mere balance of 
 arguments less grave in character, I should be reluctant to reverse 
 a decision which has not only been deliberately made, but has 
 been already, to a large extent, acted upon, and any departure 
 from which must involve such considerable sacrifices to the 
 revenues of India. 
 
 This despatch was received in India in April 1873, and the 
 position of affairs at the time was as follows. Considerable 
 progress had been made on the Punjab Northern Railway on 
 the metre gauge, and the girders for the bridges over the Ravi, 
 Chenab, and Jhelum rivers were made for the narrow gauge. 
 On the Indus Valley Railway work on the metre gauge had 
 been progressing fairly well, and a good start had been made 
 on the bridging of the flood openings required to pass the spill 
 waters of the Indus. Also on both lines a large outlay had 
 been incurred in permanent-way, locomotives, and rolling stock 
 adapted to the metre gauge, and a good deal of this material 
 was already in the country. No arrangements had been 
 entered into or proposals made to the Sind, Punjab, and 
 Delhi Railway Company for the provision of a third rail along 
 their line between Karachi and Kotri and between IMooltan 
 and Lahore, so that, as far as was contemplated at that time, 
 there would be a break of gauge at Kotri and another at 
 Mooltan. Moreover, the contract with the Sind, Punjab, and 
 Delhi Railway Company was not determinable until 1885, so 
 that any radical alterations of their lines could only be accom- 
 plished by arrangement. In order, therefore, to have the 
 
 M
 
 i62 RAILWAY POLICY IN INDIA 
 
 question of gauge again thoroughly discussed from a mihtary 
 and political point of view, and quite independently of the 
 commercial aspect, the opinions of the Commander-in-Chief 
 and his military advisers were sought, as were also those of 
 Colonel C. H. Dickens, R.A., then Secretary to Government 
 of India in the Public ^^' orks Department, and of Mr. (now Sir) 
 G. L. Molesworth, the Consulting Engineer to the Government 
 of India for State Railways. All these opinions were attached 
 to the answering despatch sent to the Secretary of State. ^ As 
 they, and more particularly the notes by Colonel Dickens and 
 I\Ir. Molesworth, formed very important features in the corre- 
 spondence, and serve to indicate the change of ideas regarding 
 these frontier lines which was at work in the Government of 
 India, it is necessary to give in some detail the nature of the 
 arguments and opinions therein expressed. 
 
 The Commander-in-Chief was asked if the military con- 
 siderations involved in making the Indus Valley and Punjab 
 Northern Railways on the metre gauge were of such magnitude 
 as to justify the Government of India to revert to the old 5 feet 
 6 inches gauge, and to incur the large and fruitless expense 
 that such a reversion would involve. The superiority of the 
 broad gauge for military transport purposes was at once 
 admitted, but the Commander-in-Chief was asked to support 
 his opinion with statistics giving the relative value of the two 
 gauges for military purposes, and the effect of a break of gauge 
 in the movement of such bodies of troops as Lord Napier 
 might think likely to require to be moved in the case of war 
 on the north-west frontier. A practical example of con- 
 centrating 10,000 men and 36 guns was worked out by the 
 Quarter- Master- General, and the relative capabilities of the 
 broad and narrow gauge railways shown in an elaborate 
 memorandum drawn up by Colonel F. Roberts, R.A., V.C., 
 now Lord Roberts. In forwarding this to Government, Lord 
 Napier remarked " that the arguments and statistics contained 
 
 ' Despatch to Secretary of State, No. 140 Railway, 19th July 1S73.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 163 
 
 in the memorandum not only conclusively prove the great 
 advantage which the broad gauge possesses over the narrow 
 for military purposes, but he believes, moreover, that they 
 would even now justify the Government of India in under- 
 taking the expense of a reversion to the 5I feet gauge on both 
 the Indus Valley and the Punjab Northern Railways." It had 
 been ordered that the Punjab Northern Railway should, as far 
 as possible, use a portion of the grand trunk road north of 
 Lahore, and the works then being carried out occupied a 
 portion of that road almost continuously between Lahore and 
 Wazirabad, a distance of 60 miles. Among other deductions 
 drawn from the Quarter -Master -General's memorandum was 
 the one "that if the narrow gauge be determined upon, the 
 railway will be used almost exclusively for the transport of 
 stores, etc., and the great mass of the troops will have to 
 march : it is, therefore, most essential that they should be able 
 to do so with speed and regularity." Consequently the 
 Commander-in-Chief represented the vital importance of 
 keeping the grand trunk road free for the movements of troops 
 by route march. Quite apart, however, from the deductions 
 drawn from Colonel Roberts' memorandum, the Government 
 of India had already recognised that their original orders to 
 lay important railways on existing roads required modification, 
 as the existence of a railway did not do away with the necessity 
 of parallel road communication : consequently this point was 
 readily recognised and used in the answering despatch to the 
 Secretary of State. 
 
 The Consulting Engineer for State Railways also submitted 
 an elaborate report on the whole question.^ Mr. (now Sir) 
 Guilford Molesworth commenced his report with the remark 
 that the adoption of the narrow gauge for State railways in 
 India had been settled before his arrival in India, and that he 
 had been informed that the question was not to be reopened. 
 
 1 Report on the question of the gauge for State Railways of India, dated 
 23rd June 1873.
 
 i64 RAILWAY POLICY IN INDIA 
 
 In an annual report he had, however, stated his " conviction 
 that a break of gauge was a very serious evil, and that it 
 should, if possible, be avoided; that a break of gauge was 
 better than no railway ; and that having adopted the narrow 
 gauge, the more it is connected and extended into one large 
 system, the less will its evils be felt." Mr. Molesworth had 
 before him the memorandum by the Quarter-Master-General 
 (above referred to), and he showed the locomotives and stock 
 designed for the metre gauge lines were little, if at all, inferior 
 to the stock then running on English railways. Discussing the 
 whole matter impartially, he arrived at the following con- 
 clusions : — 
 
 1. The capacity of the metre gauge stock is sufificient for all 
 
 purposes of railway transport. 
 
 2. The carriages and waggons on the metre gauge railway are 
 
 nearly equal in capacity to the ordinary stock of English 
 railways. 
 
 3. The locomotives designed for low speed on the metre gauge 
 
 are equal in tractive force to the large express engines 
 designed for high speed on English railways. 
 
 4. The rolling stock for the metre gauge will be perfectly safe 
 
 at a speed twice as great as that proposed for the State 
 railways of India. 
 
 5. The metre gauge, in my opinion, is sufficient for all commercial 
 
 and military purposes. 
 
 6. The cost of a broad gauge railway (60 lb. rails), with 
 
 structures designed for the engines and other rolling stock 
 of the guaranteed railways, will (excluding very large 
 bridges) exceed the cost of the narrow gauge by ^1650 or 
 ^2000 per mile. 
 
 7. The cost of a broad gauge railway (^5 lb. rails), with 
 
 structures designed only for the carriage and waggon 
 stock of the guaranteed railways {but not for the engmcs\ 
 will exceed the cost of a narrow gauge railway by £720 
 or ^1000 per mile. 
 
 8. The cost of a broad gauge railway (40 lb. rails), with
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 165 
 
 structures designed for the same axle loads as the narrow 
 gauge, will exceed the cost of a narrow gauge railway l)y 
 ^350 or ;!^5oo per mile. 
 9. The last of these three would practically be as great an 
 obstacle to the interchange of traffic as if a break of gauge 
 existed. 
 I o. There will be no appreciable difference between the working 
 expenses of the broad and narrow gauge railways. 
 
 1 1 . The break of gauge in a commercial point of view, though 
 
 an evil, is not one sufficient to justify the commendation 
 of the narrow gauge. 
 
 12. The break of gauge in a military point of view is a vety 
 
 serious evil. 
 
 13. A resen,-e of 1000 vehicles will suffice for any military 
 
 emergency on the frontier. 
 
 Mr. Molesworth then proceeded to discuss from a military 
 point of view the several railways in Western India with 
 reference to strategical positions. He recommended a com- 
 prehensive system of narrow gauge lines whicli would include 
 the Punjab Northern, Indus Valley, and Rajputana lines, and 
 would necessitate the conversion to narrow gauge of the Sind, 
 Punjab and Delhi, and the Bombay, Baroda, and Central India 
 Railways. If such a system were adopted and a uniform 
 policy kept in view, he considered that the adoption of the 
 narrow gauge would be completely justified. But if, on the 
 other hand, the Government should consider that such a com- 
 prehensive system was too remote or too difficult of attainment, 
 and that the narrow gauge system would remain a series of 
 railways isolated and disconnected, then he considered that the 
 introduction of the metre gauge system was a mistake. Mr. 
 Molesworth showed by comparative estimates what it would 
 cost to convert the works on the Indus Valley and Punjab 
 Northern lines into broad gauge lines ; also that, with a 45 lb. 
 rail and a light class of engine, the conversion could be effected 
 for an increase of about 15 per cent on the estimated cost for
 
 1 66 RAILWAY POLICY IN INDIA 
 
 metre gauge, and that in his opinion the maintenance of 
 uniform gauge is worth that additional expenditure. 
 
 Colonel (now General) Dickens, the then Secretary in the 
 Public Works Department, reviewed the whole case in a note 
 which was attached to the answering despatch. In this he 
 stated his concurrence in most of the arguments which Mr. 
 Molesworth had brought forward, and supported that gentleman 
 entirely in the sufficiency of the metre gauge even for military 
 operations. Colonel Dickens also added that " the cases which 
 would attach to the delay of one day, which the break of gauge 
 at Lahore would occasion, might be left out of consideration. 
 But there are more weighty opinions on the opposite side, and 
 by those he thinks the Government should be guided, seeing 
 that if they err, they err on the safe side." He thoroughly 
 approved of the decision to make narrow gauge lines, as the 
 Government could not afford to enter on any general extension 
 of railways without studying the greatest economy, and selecting 
 the lines as to ensure a quick return for the outlay. But as 
 regards the two particular lines in question, the Indus Valley 
 and the Punjab Northern, his — 
 
 Own opinion Was against the change from broad to narrow gauge 
 in I 870-7 1, not from any doubt as to the capabilities of the narrow 
 gauge, but from the conviction that these two lines would be 
 generally regarded as part of the trunk system of railways in 
 India, and as important chiefly in view to political and military 
 objects. If any military emergency, such as to call these lines 
 into use under severe pressure, was really to arise, the break of 
 gauge would be a very serious matter. And if no such emergency 
 arose, the knowledge that there was such a serious obstacle to 
 their use would detract from the moral effect of the works. These 
 reasons were in his opinion sufficient at least to make these lines 
 undesirable to select as the first to be constituted on the narrow 
 gauge. It is true that the military communication would be the 
 better for a railway on the narrow gauge than without any railway 
 at all. But still, the importance attached to the break of gauge,
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 167 
 
 and the dissatisfaction with which a narrow gauge in such a situa- 
 tion would be regarded, seemed more than to balance the financial 
 advantage. 
 
 Colonel Dickens also stated that having been absent on 
 leave when the decision was come to, he had not had occasion 
 before to express this opinion officially. Another reason which 
 guided him in thinking that the Indus Valley line should be 
 on the broad gauge was that already 324 miles out of the 814 
 between Lahore and Karachi were laid and working on the 
 broad gauge ; and it was only on the conversion of these parts 
 into narrow gauge that the line between Lahore and Peshawur 
 was to be dependent for its extra rolling stock in cases of 
 emergency. Regarding the adoption of the 5 feet 6 inches 
 gauge with lighter rails. Colonel Dickens remarked : — 
 
 The adoption of the broad gauge with light rails and rolling 
 stock would enable us to utilise much of the narrow gauge 
 material, and would save time and money therefore. But if a 
 change is made for military and political reasons, it should, I 
 think, be thorough, and leave no doubt that these railways will be 
 completely efficient and equal to all requirements of a military 
 emergency, as much as the lines which are connected with them. 
 In spite of all contrivances and precautions, I feel doubts of the 
 possibility, under pressure of emergency, of keeping the heavy 
 engines of guaranteed lines off the two lines in question ; and to 
 admit them would be to injure seriously these lines when most 
 required to be efficient. If a change is to be made, therefore, I 
 would adopt the 5| feet gauge with a 60 lb. rail. 
 
 Colonel Dickens concluded his note thus : — 
 
 If any military mishap should occur after the establishment on 
 these lines of the narrow gauge the Government would be said to 
 have courted disaster. Nothing of the kind can be laid to their 
 charge if they adopt the style of construction which has been in 
 use in India heretofore to the satisfaction of the highest military 
 authorities. Hereafter, when the metre gauge shall ha\e been
 
 i6S RAILWAY TOLICV IN INDIA 
 
 tried and gained confidence, it may be quite proper to introduce 
 it on the Indus Valley and Lahore and Peshavvur hnes. But for 
 the present I come (very unwillingly, I confess) to the conclusion 
 that the progress of the works should be so far delayed as to 
 allow of the introduction of the 5|- feet gauge with the 60 lb. 
 rail. 
 
 I think also that the occupation by the railway of the Lahore 
 and Peshawur road should be given up. But the railway should 
 be by no means taken to such a distance from the road as to be 
 out of reach of easy military communication throughout the route. 
 
 The extra expense of the adoption of the broad gauge in this 
 case I would regard as a military and political expense, and not 
 as a part of the general system for the extension of railways in 
 India. 
 
 The extra cost of adopting the broad 
 gauge with the 60 lb. rail instead of 
 the narrow gauge with the 40 lb. rail 
 is estimated by Mr. Molesworth at . ^1,536,200 
 
 To abandon the trunk road between La- 
 hore and Jhelum, as well as between 
 Jhelum and Peshawur, would probably 
 cost ...... 360,000 
 
 Total ^1,896,200 
 
 But if the railway be terminated northwards at Attock, as I 
 think it should be, the difference will be reduced by ^171,500, 
 leaving the extra charge to be incurred in round numbers at 
 i^i, 700,000. 
 
 The interest on this sum is less than the cost of maintaining 
 one regiment of European infantry. 
 
 These opinions were all duly weighed by the Government 
 of India, and the Duke of Argyll's despatch, dated 27th 
 March 1873, was replied to on the 19th July 1873. 1'he 
 despatch was signed by all the Council, but in the opinions 
 expressed they were not unanimous. Dissents against a new
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 169 
 
 departure from the existing policy were recorded by Sir R. 
 Temple, the finance member, and the Honourable B. H. 
 Ellis, the member in charge of public works ; and these dis- 
 sents were sent home with the despatch. The despatch com- 
 mences by saying that the Government of India — 
 
 Adheres to the views originally expressed, namely, that the 
 economy which will result from the adoption of a narrow gauge 
 in the case of a large proportion of the contemplated railways in 
 India overweighs the disadvantages which accompany a break of 
 gauge ; and that although it may be expedient to adopt the 
 5 feet 6 inches gauge on a few of those lines, new railways in 
 India should, for economical reasons, be generally constructed 
 with the narrow guage. Our opinion in this respect has been 
 confirmed both by the satisfactory report which we have received 
 of the experimental working of the State railway between Delhi 
 and Rewari, and by the general conclusions at which Mr. Moles- 
 worth has arrived after a careful comparison of the relative ad- 
 vantages of the broad and narrow gauge. ^ 
 
 But Lord Northbrook did not consider that the question 
 now at issue extended to the general suitability of the narrow 
 gauge for State railways, but referred solely to the propriety of 
 continuing to build the Indus Valley and Punjab Northern 
 Railways on the metre gauge. A glance at the map of India 
 was sufficient to show that a line of railway from Lahore to the 
 sea at Karachi must be considered as one of the main trunk 
 lines of India. That distance measured 814 miles, and of this 
 distance 324 miles in two lengths, one at either end, were 
 already built on the broad gauge, and were in operation. It 
 was originally proposed to convert this open length to the 
 metre gauge, or to lay down a third rail for the passage of 
 metre gauge vehicles, but this proposal is not dwelt on in this 
 despatch, which only combats with the question of break of gauge. 
 The despatch points out that some of the highest military 
 authorities took part in the discussion on the relative merits of
 
 I70 RAILWAY TOLICY IX INDIA 
 
 the 5 feet 6 inches and smaller gauges at the Institute of Civil 
 Engineers, and that they condemned a break of gauge on 
 military grounds. The consensus of military opinion in India 
 was the same. Also, although the Indus Valley would doubt- 
 less be of considerable value for passenger and commercial 
 trafific, its value for military purposes was of much more im- 
 portance. The line from Lahore towards Peshawur, and 
 which was already sanctioned as far as Rawalpindi, was de- 
 signed entirely for military and political reasons ; consequently 
 the question of gauge of these lines was a matter which should 
 be settled entirely on military grounds. On this evidence the 
 majority of the Council agreed with the Viceroy in recom- 
 mending that the 5 feet 6 inches gauge be adopted on these 
 frontier lines, as that would settle for ever all difficulties as to 
 a break of gauge at Lahore. 
 
 Sir Richard Temple dissented from this decision, because 
 the evidence was quite conclusive in showing that the capa- 
 bilities of the metre gauge were ample for all military require- 
 ments, and that it was very much cheaper to reduce the gauge 
 of the open lines between Karachi and Lahore, or to lay down 
 a third rail until those lines could be acquired from the 
 Guaranteed Company. The dissent of the Honourable B. H. 
 Ellis is recorded in a powerful minute, in which the whole 
 tenor of the despatch is severely criticised. His reasons for 
 dissent are summed up thus in his minute : — 
 
 1. The despatch of the Secretary of State, to which this 
 
 despatch purports to be a reply, has anticipated all the 
 points now urged, and has not really been answered. 
 
 2. Though Mr Molesworth and Colonel Dickens are in 
 
 accord with the despatch on the particular issue, the facts 
 stated in their notes tend to show that the narrow gauge 
 is efficient for all purposes, and greatly more economical 
 than the broad gauge. 
 
 3. The opinions of the military officers, quoted in the 
 
 despatch, arc not relevant.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 171 
 
 4. The military objections based on the report of Colonel 
 
 Roberts are overstated. 
 
 5. Substantially there will be no break of gauge seriously 
 
 affecting military operations. 
 
 6. There are alternative suggestions for meeting the require- 
 
 ments of the military authorities in a less objectionable 
 way than by incurring needless expense in constructing a 
 broad gauge line, when a narrow gauge suffices for the 
 traffic. 
 
 7. The additional cost of the broad gauge will be greater than 
 
 is estimated in the despatch, and sufficient weight has not 
 been given to the financial considerations involved. 
 
 Mr Ellis laid great stress on the financial points, and 
 warned his colleagues of the results likely to occur if the 
 Secretary of State sanctions a change to the 5 feet 6 inches 
 gauge on these lines : — 
 
 In the first place, it cannot be admitted that in this discussion 
 it is only the gauge of the two railways specially named that is 
 being discussed. I warn my colleagues who entertain this belief 
 that the present movement is but the thin end of the wedge ; and 
 that if the Government give way on this occasion, the whole 
 policy of the narrow gauge railways in India is imperilled. I 
 know that it is even now sought to construct on the broad gauge 
 the line from Gwalior to Agra, which foniis a part of the Rajpu- 
 tana series of metre gauge lines connected with the narrow gauge 
 terminus at Agra. I know also that an effort will be made to 
 adopt the broad gauge on the line from Ajmere to Ahmedabad 
 now under survey, this also being a part of the regular Rajputana 
 series. Other lines will follow, and the result will be a number 
 of isolated metre gauge lines, each of no great length ; and when 
 these are found to be unsuccessful, it will be asserted that the 
 whole scheme was a mistake. But such a result may fairly be 
 attributed, not to the policy itself, but to the divergence from that 
 policy involved in the departure from its principles in individual 
 instances as they occur. 
 
 This despatch was not answered until November 1873, and
 
 172 RAILWAY POLICY IN INDIA 
 
 in the meantime, by the desire of the Secretary of State, the 
 mihtary aspect of the case had been reconsidered in England 
 by General R. Strachey and Major (now Sir) E. C. S. 
 Williams. The notes submitted by these officers were gener- 
 ally directed against the statements and conclusions drawn by 
 the Quarter-Master-General in India as to the want of capacity 
 of the metre gauge for military purposes. The question of the 
 change of gauge was a serious one, and was discussed by the 
 Cabinet. On the i8th November 1873 the Uuke of Argyll 
 telegraphed to Lord Northbrook — 
 
 Cabinet consulted gauge question. Unanimously, with me, in 
 declining to expend million and a quarter excess beyond estimate 
 for narrow gauge ; but we will not overrule you if you determine 
 after receiving pur despatch to take standard gauge with 45 lb, 
 rail, as Molesworth suggests. 
 
 A despatch to that effect followed immediately afterwards, 
 and reiterated the decision in the telegram. The Duke of 
 Argyll remarks in this despatch that while — 
 
 The Government of India and its professional advisers are 
 satisfied of the complete sufficiency of the narrow gauge, con- 
 sidered in itself, for all purposes both civil and military, . . . 
 the only objections to adhering to the decision of the Government 
 of Lord Mayo as applied to the particular lines in question are, 
 first, the inconvenience which may result from the occasional 
 necessity of transferring troops and military stores from one set of 
 conveyances to another ; and, secondly, the inconvenience which 
 may arise from a supposed limitation of rolling stock. 
 
 As regards the want of sufificient stock for the metre gauge 
 lines, the Secretary of State remarks that he has seen no 
 evidence to convince him that the systems as proposed by 
 Lord Mayo would not be supplied with as much stock as 
 could be usefully employed. He considers the inconvenience 
 of break of gauge much exaggerated ; but as the Government
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 173 
 
 of India attaches so much importance to this convenience 
 from a mihtary standpoint, he will not over-rule that Govern- 
 ment if it decides on the standard gauge with a 45 lb. rail, as 
 suggested by Mr Molesworth. And in conclusion, while 
 agreeing to the policy of removing the Lahore-Rawalpindi line 
 from off the grand trunk road, he remarks that — 
 
 It is not without the greatest reluctance that I shall advocate any 
 further extension of the exceptionally broad gauge, which was 
 adopted in India when very sanguine expectations were naturally 
 entertained, but which experience has proved to be needlessly 
 cumbrous and expensive for the traffic of the country. I should 
 greatly prefer the other alternative, which is evidently regarded 
 with favour, on its own merits, by Mr Molesworth, namely, that 
 of making the new narrow gauge system still more extensive and 
 still more connected. 
 
 But, notwithstanding the fact that the Sind, Punjab, and 
 Delhi Railway Company had agreed to modify their engines 
 so as to render practicable the Indus Valley Railway being 
 made on the standard gauge with a 45 lb. rail, the Govern- 
 ment of India decided not to adopt the broad gauge with a 
 45 lb. rail. The Government of India disclaimed that the 
 question of gauge had been reopened at its instance ; but since 
 the Duke of Argyll had permitted its rediscussion, Lord 
 Northbrook was now of opinion that it had been a mistaken 
 policy to think of constructing either the Indus Valley or the 
 Punjab Northern on the metre gauge, and that nothing short 
 of the standard gauge with a 60 lb. i;ail would satisfy the 
 exigencies of the case. The Commander-in-Chief, Lord 
 Napier, was absent from Calcutta at the time this despatch was 
 being discussed, and did not sign it, but his views were ascer- 
 tained and embodied in the despatch. He gave his decided 
 preference for the broad gauge with a 45 lb. rail, — not 
 apparently on the score of economy, from which standpoint 
 the question was being fought, but because it ensured the 
 broad gauge winning the day, as hereafter it would be an easy
 
 174 RAILWAY POLICY IN INDIA 
 
 matter to change the Hghter rail for a 60 lb. one when 
 required. Sir Richard Temple and Mr Ellis still retained the 
 opinions they had recorded as dissents from the previous 
 despatch ; and it was also stated in this despatch that " Mr 
 Hobhouse, who was unable to attend when the question was 
 before discussed, is inclined to take the same view." The 
 question of changing the gauge of these two lines to the 
 standard gauge was therefore supported by Lords Northbrook 
 and Napier of Magdala, Sir Henry Norman, and Mr E, C. 
 Bayley. 
 
 Apart from the gauge question, the Government of India 
 showed in this despatch that the works on the Punjab 
 Northern Railway had proceeded so far that it was much 
 better to allow the metre gauge line, which had been laid 
 along the side of the grand trunk road, to be finished and used 
 as a temporary line, pending the decision of the gauge for the 
 eventual line which was to be made off the road. To this the 
 Secretary of State agreed,^ saying that " you may proceed at 
 once with narrow gauge on Punjab Northern line. In a few 
 days I shall tell you what I decide on the Indus Valley, if I 
 decide at all." Mr Gladstone's Cabinet resigned a few days 
 afterwards, and Lord Salisbury took over the India Office 
 portfolio on the 22nd February 1874 ; but in the interval 
 between sending the above telegram and the resignation, the 
 Duke of Argyll gave his decision on the gauge question." He 
 exonerated the Government of India regarding the reopening 
 the question of gauge, but said it was necessary in order " to 
 test the persistent representations of those who have contended 
 that no great excess of cost is involved in the broad gauge." 
 The Duke remarked that no less than three members of the 
 Viceroy's Council dissented from the views of the majority, 
 and recorded his refusal to constructing these lines on the 
 broad gauge in the following terms : — 
 
 ^ Telegram dated I2lh February 1874. 
 - Despatch No. 20, Railway, of l6th February 1874.
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 175 
 
 9. Under these circumstances, Her Majesty's Government are 
 of opinion that there is no sufficient reason for departing, at very 
 considerable cost, from the careful and well-considered scheme of 
 the late Lord Mayo's Government. That scheme will establish a 
 cheaper system of railways commencing at Lahore, and reaching 
 from the extreme frontier of our dominions to the sea. There it 
 will be in unbroken communication with a separate harbour of its 
 own on the western side of India, and as easily accessible as 
 Bombay by the shortest route from England. 
 
 10. The system of railways will be constructed on a gauge 
 which, as shown by your consulting engineer, can easily be made 
 to have a carrying capacity of the English standard gauge, and 
 one sufficient for all purposes of railway transport. On the same 
 authority, it appears that the rate of travelling can, with perfect 
 safety, be made double that actually proposed for the State rail- 
 ways of India, and that in other respects it is sufficient for all 
 purposes, whether military or commercial. 
 
 11. I have therefore to instruct your Excellency to proceed 
 with the scheme originally laid down l^y Lord Mayo's Govern- 
 ment, and subsequently adopted under the authority conveyed by 
 my despatch of 26th October 1870, No. 72. 
 
 12. You will consider carefully the detailed arrangements 
 (many of which have been already suggested by Mi-. Molesworth) 
 which may secure the largest carrying capacity of carriage on the 
 narrow gauge, and the greatest facilities in platform accommoda- 
 tion, etc., for transfer at the one great station, Lahore, where 
 alone it will be required. 
 
 This was probably one of the last acts of the Duke of 
 Argyll before leaving office, but the matter was evidently not 
 considered as finally disposed of by that decision, for on the 
 2ist March 1874 Lord Salisbury telegraphed to Lord North- 
 brook not to take the orders in the Duke of Argyll's despatch 
 (No. 20) as final. But up to the i6th April 1874, when the 
 Government of India forwarded to the Secretary of State 
 a further memorandum on the question of break of gauge 
 from a military point of view by Colonel F. Roberts, R.A., V.C.
 
 176 RAILWAY POLICY IN INDIA 
 
 (now Lord Roberts), no further orders had been received in 
 India. The gauge question was, however, decided early in 
 June of that year, as the Secretary of State telegraphed on i ith 
 June that the standard gauge and rails were sanctioned for the 
 Indus Valley line; but it was not until the 25th June 1874 
 that Lord Salisbury signed the despatch giving definite orders 
 on the subject. 
 
 This despatch set at rest the question of gauge on these two 
 lines ; and not only have 'they been opened on the 5 feet 
 6 inches gauge, but important extensions to Peshawur, Khus- 
 halgarh, and to the foot of the Bolan Pass, are also either under 
 construction or built on the same gauge. 
 
 During the year 1874 the question of gauge for the branch 
 line from Agra to Gwalior was also under consideration. ]\Ir. 
 Ellis, the honourable member in charge of the public works, 
 represented that this branch belonged to the Rajputana system 
 of narrow gauge lines, that it would not be a paying line, and 
 therefore had nothing in its favour to be considered as a trunk 
 line. But the fact that Maharaja Sindia had promised to lend 
 the Government of India 75 lakhs of rupees at 4 per cent if 
 the line was made, that he had expressed a desire to have 
 the railway on the 5 feet 6 inches gauge, and that the 
 Commander-in-Chief's representations that such a line was a 
 strategical one and of great importance from a military stand- 
 point, decided the Government of India to make this branch 
 line on the 5 feet 6 inches gauge. No further questions 
 regarding gauge arose until the Government of India issued 
 orders to commence the line of railway between Ahmedabad 
 and A j mere. For several years before it had been the desire 
 of both the Guaranteed Railway Companies with termini in 
 Bombay to extend their ventures northwards, and get an 
 entrance into the Gangetic Valley. The Bombay, Baroda, 
 and Central India Railway Company had even been per- 
 mitted to make a series of surveys as far north as Agra and 
 Delhi ; and the Great Indian Peninsula Railway Company
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 177 
 
 was desirous of extending its system into Malwa by means of 
 a branch to Indore. The decision of Lord Mayo's Govern- 
 ment to stop all further guarantees on the old system, and for 
 Government to undertake the construction of its own railways, 
 interfered with these proposals, as the construction of all rail- 
 ways through the States of Rajputana and Central India was 
 considered a work which should be exclusively undertaken by 
 Government. Surveys between Ahmedabad and Ajmere were 
 commenced by the Government of India towards the end of 
 1872, with a view to eventually running a railway on the metre 
 gauge through that part of Rajputana. The Government of 
 Bombay, whose views on the subject had been invited, 
 regretted that the line was not to be built on the standard 
 gauge ; but as a break of gauge had been determined upon, 
 recommended that it should take place at Pahlanpur, and not 
 at Ahmedabad, as the province of Guzerat was sufficiently 
 fertile to demand a railway on the broad gauge. That 
 Government also recommended that the section between 
 Ahmedabad and Pahlanpur should be handed over to the 
 Bombay, Baroda, and Central India Railway Company to be 
 built under their guarantee. The London Board of Directors 
 of this Railway Company were also pressing their claims for 
 extension northwards and objecting to any break of gauge ; but 
 they were informed by the Secretary of State, Sir Charles 
 Wood, that it was not intended to deviate from the policy 
 under which it had been decided not to sanction the extension 
 of that company's lines with guaranteed capital unless by the 
 possible authorisation of short branches as feeders. 
 
 In July 1874, after Lord Salisbury's decision to construct 
 the Indus Valley line on the 5 feet 6 inches gauge, the 
 Government of Bombay again strongly urged its views, to the 
 effect that " it is imperative that the Ahmedabad and Ajmere 
 line should also be laid on the broad gauge, if not as far as 
 Ajmere, at least as far as the point which is best suited for the 
 junction of any future Sind extension." The Honourable 
 
 N
 
 178 RAILWAY TOLICY IN INDIA 
 
 B. H. Ellis, before resigning his seat in Council, went over 
 the projected line, and considered that there were no valid 
 reasons for desiring to reopen the question of gauge for any 
 part of this hne. Consequently, in the despatch recommend- 
 ing the Secretary of State to give his sanction to lines from 
 Ahmedabad to Ajmere, and from Neemuch to Nasirabad, the 
 question of gauge was not mentioned ; the estimates were for a 
 metre gauge line ; those estimates were sanctioned, and orders 
 were issued to construct the lines on the metre gauge. But a 
 feeling was growing up that the section between Ahmedabad 
 and Pahlanpur might well stand the broad guage. Owing to 
 the failure of the south-west monsoon in 1877, severe famine 
 was felt in Guzerat. The Minister of the Baroda State 
 strongly urged the immediate construction of the section 
 between Ahmedabad and Pahlanpur on the broad gauge. 
 This was recommended to the Secretary of State for accept- 
 ance, not only because the Baroda Railway could then work 
 the section and so utilise its surplus rolling stock, but also 
 because the Baroda State had contributed largely to a recent 
 loan. The Secretary of State consented, and the earthwork 
 and bridges on this section of the line were ordered to be 
 made for a 5 feet 6 inches gauge. It was considered that this 
 part of the line would probably form part of any line going 
 towards Hyderabad in Sind ; and the surplus engineers set free 
 by the completion of the Indus Valley Railway were employed 
 during the cold season of 1877-78 in running trial lines 
 between Deesa and Sind. Sir Andrew Clarke, member of 
 Council for Public Works, considered that such a connecting 
 link was absolutely essential for strategic purposes, and that it 
 would soon have to be undertaken. 
 
 It was, however, presently discovered that the Bombay, 
 Baroda, and Central India Railway Company had no powers 
 to work any other line except their own ; and that even if they 
 obtained the requisite Parliamentary power, which they were 
 anxious to get, they would want a large increase of stock to
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 179 
 
 work the extension. Consequently, in May 1878, the Secre- 
 tary of State asked by telegram if the Government of India 
 was still of " opinion that the portion of the railway between 
 Ahmedabad and Pahlanpur should be constructed on the 
 broad gauge." This was not ofificially replied to until January 
 1879, when the Government of India reported^ that the 
 orders regarding the construction of portion of the line 
 between Ahmedabad and Pahlanpur on the broad gauge had 
 been rescinded, and that now the whole line between Ahme- 
 dabad and Ajmere would be on the metre gauge. Difficulty 
 had been experienced on the southern part of the line in brick- 
 burning ; and although the earthwork on the section to 
 Pahlanpur was completed for a broad gauge line, little or no 
 bridgework had been commenced ; the additional expense due 
 to the orders in 1877, when famine -relief operations were 
 needed, was consequently trifling. The following extract from 
 the despatch gives the argument of the Government of 
 India : — 
 
 Our reasons for accepting the alteration from the broad to the 
 metre gauge suggested by your Lordship, between Ahmedabad 
 and Pahlanpur, are, first, that the change will effect an immediate 
 saving of some 1 2 lakhs of rupees ; secondly, that it is better to 
 have a break of gauge at a military station like Ahmedabad than 
 at an outpost like Pahlanpur ; thirdly, that the prospect of an 
 extension towards Sind is remote, and that, even when the 
 extension is taken up, it is probable it will be built on the same 
 gauge as the Rajputana system, instead of on the broad gauge of 
 the Baroda Railway ; and, fourthly, that, as far as can be judged 
 at present, there are no reasonable grounds for apprehending that 
 the metre gauge will not suffice to carry the traffic between 
 Pahlanpur and Ahmedabad. 
 
 2. We are aware that the conclusion we ha\e arrived at will 
 be distasteful to the mercantile community of Bombay and also to 
 the Baroda Railway Company. But the aim of the former is to 
 
 1 In despatch No. 24, Railway, 24th January 1879, to Secretary of State.
 
 I So RAILWAY POLICY IX INDIA 
 
 convert the whole hne from Ahmedabad to Delhi and Agra into a 
 broad gauge undertaking, a result which could not be achieved 
 without an expenditure of two or three millions sterling; while the 
 object of the latter is to secure the control of the traffic working 
 of the State railway. Both parties are earnest in their con- 
 viction that the interest of Bombay, as a seaport in competition 
 with Calcutta, is injured by a break in the direct road to the 
 North- Western Provinces, and that the existence of two gauges, 
 with double proprietorship and management, will increase charges 
 for transport, diminish conveniences for travelling, and cause 
 delays in transmission of goods. We believe there is some 
 exaggeration in these apprehensions, and that it would be 
 unjustifiable for us, even if it were feasible under the financial 
 existing circumstances of the Empire, to expend in their removal 
 two or three millions sterling. 
 
 To this despatch Sir Andrew Clarke recorded a dissent, as 
 he believed that the economy could only amount to 6 lakhs, 
 which was not commensurate with the advantages to be 
 gained. He also pointed out that, in his belief, the traffic 
 along the Rajputana Railway would be so great soon after its 
 opening right through as to compel its conversion into the 
 broader gauge at no very distant date. In this view he had 
 been supported both by the press and by sundry representa- 
 tions made from time to time in the shape of memorials and 
 resolutions at public meetings. The Government of India, 
 however, stood firm, and was supported by the Secretary of 
 State, Lord Cranbrook. The question of the gauge on the 
 Rajputana-Malwa system of railways was supposed to be 
 finally set at rest. The anticipations of Sir A. Clarke have, 
 nevertheless, been proved to have ])ecn based on sound judg- 
 ment. The traffic on this system has already become too 
 heavy for the gauge, and the question of converting it to the 
 broad gauge, or of increasing its carrying power in other ways, 
 has been before the Government for some years past. 
 
 It having been determined to adopt a second gauge in
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS i8i 
 
 India for secondary lines, a constant and fruitful source of 
 discussion arose on the question of gauge for each new project 
 that came forward. It was not, however, until the revival of 
 projects by companies, on the basis of " private enterprise " in 
 railways, that any serious difficulty arose, ending in practically 
 resuscitating the old gauge controversy. The subject was 
 formally reopened in 1883-84, by the Government of India, 
 asking for the opinions of experts as to the relative cost of 
 transport on each gauge, having arrived, though somewhat 
 incorrectly, at the conclusion that the figures would be in 
 favour of the broad or standard gauge. It was admitted, 
 however, that in first cost the narrow gauge showed a material 
 saving. In April 1884 the Government of India considered 
 it advisable to refer the whole question to the Secretary of 
 State, and in their despatch (No. 48, Railway), they said 
 that they understood that the policy accepted for some years 
 past by both themselves and the Secretary of State was in 
 effect that the metre gauge was to be invariably adopted for 
 local and provincial railways, "specially designed for a slow 
 goods traffic," and that a network of subsidiary lines of this 
 nature, and at the lowest possible cost, should be promoted as 
 far as possible. The standard gauge was, on the other hand, 
 to be regarded as suited to " supplementary through lines of 
 communication," or those which are designed for military or 
 strategic purposes. In applying those broad principles to the 
 selection of gauge for each project, the Government of India 
 thought that certain further points must be borne in mind. 
 
 First, as the evil of break of gauge and cost of working a 
 railway are intensified in proportion to the shortness of the lead, 
 short connections of a different g^cd^^ from the railways con- 
 nected should be avoided as far as possible ; and, in the case of 
 through communications, should be deemed absolutely inadmis- 
 sible. Second, in estimating probable traffic, full allowance must 
 be made for development under the stimulus of the line itself, 
 and of the general progress of the Empire, and also for special
 
 i82 RAILWAY POLICY IN INDIA 
 
 circumstances (such as a famine in the case of a " protective " rail- 
 way), which may throw on the Hne an abnormally heavy traffic at 
 particular periods in a year or a cycle. Earlier estimates appear to 
 ha\e been too often below the mark in this respect. The ad- 
 vance in doubling the East Indian and Great Indian Peninsula 
 Railways indicates that a vast country like India will at no very 
 distant date need the double broad gauge for all its arterial 
 communications. Thirds that it is not indispensable that all 
 branches should be on the same gauge as the trunk line they feed. 
 " Provincial and local " branches situated where the metre gauge 
 is apparently ample to satisfy " local needs and local means " may 
 be on that gauge, though the trunk line be broad gauge. The 
 evil of break of gauge is the penalty, so to speak, which the 
 locality must pay for the poverty of its resources. 
 
 The Select Committee of the House of Commons, which 
 sat in 1884, substantially adopted these views, as the following 
 passage from their report will show: — "With regard to the 
 question of gauge, your Committee are of opinion that all. the 
 leading trunk lines, with their principal feeders, should be on 
 the broad gauge, the metre gauge being as a rule confined to 
 tracts of country where that system is already in successful 
 operation, and to local lines where the traffic is likely to be so 
 light, that cheapness of construction more than counterbal- 
 ances the undoubted disadvantage of break of gauge." This 
 decision was of service in dealing with questions of gauge then 
 pending, but was clearly too vague, and perhaps intentionally 
 so, to afford permanent guidance to the Government of India 
 for the future. As a fact the question again arose in dealing 
 in 1887 with the subject of the gauge for the Bengal-Nagpore 
 Railway. This was settled in favour of the broad gauge. But 
 the need, or at least the desire, on the part of some of the 
 authorities in India for a more definite policy on the subject, 
 caused in a great measure by proposals for the conversion of 
 an important line from the metre to the broad gauge, led to a 
 further reconsideration of the subject in 18S9-90. Before
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 183 
 
 the end of 1888 a total length of 800 miles of metre gauge had 
 been converted to the standard gauge, and nearly 200 miles of 
 the latter to the metre gauge, involving an expenditure to the 
 State of not far short of four millions sterling, while proposals 
 for further conversions were being brought forward. It was 
 not, therefore, too soon that at the end of 1889, the Director- 
 General of Railways, then Colonel L. Conway-Gordon, R.E., 
 submitted a note to the Government of India, in which he 
 vigorously urged the necessity for a declaration of policy on 
 the gauge question, and concluded by offering two alternatives 
 for consideration. The first was to follow the English pre- 
 cedent, and make it illegal, without the special sanction of 
 Government, to make any line of railway in India on any other 
 than the standard gauge of 5 feet 6 inches ; or, secondly, to 
 localise the gauges to certain areas, and to make it illegal with- 
 out special sanction to construct any line of railway, within the 
 specified areas, of any other gauge than that approved for that 
 area. He . added that the first alternative would, in his 
 opinion, be in the end the more economical to the nation ; 
 while the second, as a political measure, would be the most 
 feasible. 
 
 Colonel Gordon's note was accompanied by the opinions 
 of twenty-two railway officers, engineers, and traffic experts, 
 the majority of whom were in favour of a definite policy, and 
 of the adoption of geographical limits for each gauge ; but on 
 other points they were not in entire accord with Colonel 
 Gordon's views, notably on the proposal for broad gauge lines 
 of a light character. The subject was most carefully con- 
 sidered by the Government of India, and in June 1890 a 
 despatch was sent to the Secretary of State, in which the evils 
 of break of gauge were again dwelt upon, and definite pro- 
 posals formulated, which were to the following effect : — That it 
 was not desirable to legislate with the view of enforcing de- 
 cision on the gauge question ; that certain areas now occupied 
 by the metre gauge should be as a rule reserved for that gauge ;
 
 I $4 RAILWAY POLICY IX INDIA 
 
 but that, exclusive of these areas, it was proposed to lay it 
 down as an absolute rule that no new main line should be 
 constructed except on the standard (broad) gauge. It was, 
 moreover, proposed to allow no material expansion of existing 
 metre gauge systems, and to rule that the areas now in posses- 
 sion of that gauge should not be held to be unconditionally 
 surrendered to it, but that if held advisable broad gauge lines 
 of a light character might be laid through such areas. 
 
 In replying to this despatch in August of the same year, the 
 Secretary of State for India (Viscount Cross) agreed with the 
 Government of India that legislation was not needed, and that 
 the power should be retained of deciding the gauge to be 
 adopted on any projected railway. He held that, as reported 
 by the Committee of the House of Commons, " it should be 
 accepted as a rule that the main lines should be on the broad 
 gauge, and the metre gauge lines confined to tracts of country 
 where that system is in successful operation," and as regards 
 questions relating to branches and feeder lines, he considered 
 that each case should be decided as it occurs, and that there 
 appeared to be no necessity for laying down any more positive 
 rule. A suggestion in the Government of India's despatch, to 
 the effect that it might ultimately be found necessary to con- 
 vert a great part of its railway mileage in order to obtain 
 uniformity, was met by the Secretary of State with but small 
 encouragement. He held that the financial considerations in 
 such an idea would be very serious, and that the money 
 required for such purpose would be " better employed, and 
 the object in view equally well secured, by making new lines 
 of a uniform gauge with those connected through districts 
 unprovided with railway accommodation." He concluded by 
 saying that the decision as to the gauge for branch lines should 
 be left with the Government of India, and that any scheme 
 for conversion must be reserved for special consideration. 
 
 In submitting this question to the Home Government, the 
 Government of India made no reference in their despatch to
 
 HISTORY OF THE GAUGE ON INDIAN RAILWAYS 1S5 
 
 the fact that gauges narrower than the metre — viz. of 2 feet 
 and 2|- feet — had been already introduced on some small lines, 
 although permitted in their origin, as being nothing more than 
 steam tramways on existing roads. Since the date of the 
 Secretary of State's reply, and owing, perhaps, to the evident 
 intention of the Home Government that the gauge question 
 should be left open, there has been an inclination to recognise 
 and allow the 2-i- feet gauge for short feeder lines, on either 
 independent substructure or on the side of existing roads. For 
 lines of the latter class, which can be made and stocked for 
 from 15,000 to 17,000 rupees per mile (^950 to ^i 100), there 
 is certainly a large field in India, and it seems probable that this 
 small gauge may before many years show a large mileage. The 
 2 feet gauge has at present a very small mileage, and is not 
 likely to extend. It was laid down as a tramway originally on 
 the east road between the plains and Darjeeling, a hill 
 station on the Himalayas, but this line has since become 
 practically a railway in nearly every condition. 
 
 How the gauge question will be determined in India, or 
 whether indeed it wnll ever be settled, is very dii^cult to 
 foresee. The development of late years of competitive lines, 
 the steady growth of traffic, and a healthy spirit of rivalry, has 
 led to a marked increase in train loads, and consequently in 
 the weight of engines and in the weights on axles. This has 
 been recognised by the Government, and revised standard 
 dimensions and wheel loads have recently been sanctioned for 
 each gauge, which, it may be hoped, will be held to be final. 
 If this is done, and if the traffic on Indian railways expands in 
 the future in anything like the same ratio as has been shown 
 in the last ten years, it may be expected that fresh proposals 
 will arise for the conversion of the narrow gauges into broader, 
 and that considerable pressure may be brought to bear on the 
 Government of India to assent either to this or to a further 
 revision of the standards. The conversion from the metre to 
 the standard gauge has so far shown that the cost, exclusive of
 
 i86 RAILWAY POLICY IX INDIA 
 
 rolling stock, will be from ^3000 to ;^35oo per mile, allowing 
 for the sale, in a very limited and steadily decreasing market, 
 of the metre gauge material. The operation is consequently 
 one that cannot be lightly entertained. The original scope of 
 metre gauge lines has certainly been largely extended. In lieu 
 of being the field for mere branch or subsidiary lines, it can 
 now show large systems of arterial communication, embracing 
 many hundreds of miles of line, and carrying a trafiic which 
 would in some cases perhaps be more conveniently and more 
 cheaply dealt with on the standard gauge. But these develop- 
 ments were difficult if not impossible to foresee. The sur- 
 prising effects of the opening of the Suez Canal on the export 
 trade of India was not realised by the projectors of the metre 
 gauge, nor were the effects of the railways themselves in 
 stimulating production, even in very unhopeful districts, in any 
 sufficient degree anticipated. 
 
 But the saving to the country by the introduction of the 
 metre gauge is undoubted. In capital cost alone, the difference 
 between the metre and the standard gauge has been found 
 on careful estimates, over the same ground, to be on the 
 average in the ratio of about 6^- to 8, whicli represents about 
 ;!^i 100 per mile of line, and thus on the present mileage of the 
 metre gauge the saving is considerably over seven millions 
 sterling. For the same traffic, under similar conditions as to 
 grades, cost of fuel, and establishments, there is practically no 
 difference worth notice in the cost of working as compared with 
 the standard gauge, and the inconveniences of break of gauge 
 have certainly not been recognised by traders, nor as yet in 
 military emergencies. Had the standard broad gauge been 
 insisted on throughout the country, excluding from considera- 
 tion the broken reed of a "light " broad gauge, many a district 
 now prospering under railway communication would for many 
 a year have had to see its produce still carried by bullock carts 
 over cross country tracks, or have given up the attempt to 
 compete with more favoured localities.
 
 CHAPTER V 
 
 RATES AND FARES 
 
 Passenger Fa?rs 
 
 The original contracts with the guaranteed companies afford 
 the first indication of the views of the Government of India on 
 the subject of rates and fares. In these it is stipulated that 
 the companies shall allow the use of the railways to the public 
 "on such terms as shall be approved by the East India 
 Company," and shall not charge higher tolls without approval ; 
 it being further required that when the net receipts of the lines 
 shall afford a dividend on the capital outlay in excess of lo per 
 cent, the fares and tolls are to be reduced, with the view of 
 limiting the net receipts so that they shall not produce a return 
 beyond that figure. The determination of suitable rates \\^as' 
 necessarily at the outset, and indeed for some years, a source 
 of perplexity to both the officials of the Government and of the 
 companies, neither of which were in a position to do more than 
 theorise on the subject, and thus the rates first adopted were 
 admittedly tentative. It was, in fact, agreed on both sides that 
 rates should not be held to be fixed, or approved finally by the 
 Government, until the lines had been fairly open for some 
 time, and the tendencies and character of the traffic sufficiently 
 established. On one point there was at the first a very general 
 agreement, viz., that but little was to be expected in the shape 
 of passenger traffic, and that the receipts would be mainly 
 derived from goods.
 
 1 88 
 
 RAILWAY POLICY IN INDIA 
 
 The first report on Indian railways to the Secretary of State 
 for India, in 1859, said that experiments had been tried with 
 varied success, that the incomplete state of the lines made 
 it difficult to ascertain the precise rates which were most 
 suitable and remunerative ; but that there was no longer any 
 doubt as to passenger traffic, and that the people of India had 
 shown that they were as eager as those of any European country 
 to avail themselves of this mode of travelling. This report 
 went on to urge what is not now generally accepted, viz. that 
 low rates and remunerative rates were not always synonymous, 
 that increase of numbers necessarily produced an increase in 
 working expenses, and that it was doubtful whether it was 
 possible to carry passengers with profit, and in proper vehicles, 
 at a lower rate than one-fifth of a penny per mile, which was 
 then the lowest fare for this traffic on one of the Indian rail- 
 ways. At the end of 186 1 there were nine railways in progress 
 in different parts of the country, on which there was an aggre- 
 gate open mileage of 1600 miles. Taking the exchange value 
 of the rupee as being then at two shillings, the rate and fares, 
 highest and lowest, in force for goods and passengers are shown 
 in the following table : — 
 
 
 Passenger Fares. 
 
 Goods Rates. 
 
 I St 
 
 Class. 
 
 2nd 
 Class. 
 
 3rd 
 Class. 
 
 ISt 
 
 Class. 
 
 2nd 
 Class. 
 
 3rd 
 Class. 
 
 Class. 
 
 5th 
 Class. 
 
 Highest 
 Lowest 
 
 P. mile 
 d. 
 
 I 
 
 P. mile 
 d. 
 
 P. mile 
 
 d. 
 3 
 
 8 
 1 
 6 
 
 Per ton 
 per mile 
 
 d. 
 I 
 
 Per ton 
 
 per mile 
 
 d. 
 
 Per ton 
 per mile 
 
 d. 
 2i 
 
 Per ton 
 per mile 
 
 d. 
 
 i3 
 J4 
 
 Per ton 
 per mile 
 
 d. 
 
 3l 
 
 The general charge for the lowest class of passenger traffic 
 at this time was three pies per mile, which at an exchange of 
 two shillings per rupee represented -^d. The lowest, or first-
 
 RATES AND FARES 189 
 
 class goods rate, was generally one-third of a pie per maund 
 (82 lbs.) per mile, equal to about iJd. per ton mile. The 
 action of Government as regards rates and fares already tended 
 towards what has since been accepted as the most politic and 
 rational course, viz. that of fixing maximum rates for goods and 
 passengers within which the companies were free to alter at 
 their own discretion. The question of the minimum had not 
 
 ' yet arisen, and did not come forward until competition 
 between rival lines forced on the Government the necessity of 
 protecting its interests as regards the guarantee, and to make 
 a stand against what appeared to be unremunerative rates. 
 The natural desire of both the Government and the companies 
 was to make the railways as profitable as possible ; but the 
 latter, fully alive to their advantages as monopolists, were not 
 inclined to regard the increase of numbers or tonnage as of so 
 
 I much importance as the increase of receipts ; while, on the 
 other hand, the Government had to elect between the. claims 
 
 , of the public at large to early relief from the burden of the 
 guarantee, and the clamour of the travelling and trading classes 
 for low fares and rates. / The tendency in the earlier years was 
 to increase rather than reduce rates, although this appears to 
 have been due in some measure* to a scarcity of rolling stock ; 
 but the Indian traffic manager was already in the toils of the 
 " cost of conveyance " heresy ; he had not yet realised that this 
 is a variable, and, in the absence of serious competition, sought 
 to base his rates and the volume of his business on what 
 appeared to be finality in the cost of transit. 
 
 The earliest rates in force for passenger trafiic are given on 
 page 1 95, and these were continued for some years. It was soon 
 found, however, that this traffic, especially of the third or loNyest 
 class, which afforded over 90 per cent of the coaching receipts, 
 was likely to become a'very important source of income. In a 
 report to the Secretary of State on Indian railways in 1 860, it 
 is observed that " it is worthy of note how greatly the trafific 
 of the third class preponderates. The proportion of the first
 
 190 RAILWAY POLlCY IN INDIA 
 
 and second class put together is to the third class as i to i6h. 
 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 
 equally felt in this country." The cost of travelling by rail in 
 India is compared in a subsequent report (in 1864) with that 
 in England at the time, and it is shown that for a journey of 
 100 miles, by third class, the fare averaged on seven railways 
 about 3s. 2d. (exchange being at about 2s.); while in the 
 United Kingdom the charge for the same distance, in the same 
 class, by " parliamentary " train, was 8s. 4d. Thus the native 
 earning, or on a wage of say los. a month, was being charged 
 38 per cent of what was levied on an English artisan, whose 
 income may be put at ^5 a month. At this period the open 
 lines carried a length in the aggregate of 2 68 7 miles, and the third- 
 class traffic showed a yearly total of numbers conveyed of about 
 8| millions, or no more than 3260 per mile open.^ It was not 
 then seen that it was to this third-class traffic that the sub- 
 sequent success of the Indian railways would be so largely in- 
 debted, nor was it seen that they were charging almost pro- 
 hibitive fares, and stifling a most valuable source of income. 
 The third class affords, in fact, in India the backbone, if not 
 nearly the whole body, of the coaching receipts ; the other 
 classes might, as far as profit is concerned, be abolished ; 
 indeed, on most lines their removal would be a positive gain, 
 and it is not many years ago that a leading railway manager in 
 India stated it would pay him to give every first-class passenger 
 twenty rupees to stay away. Thus in dealing with this subject 
 it is only proposed to refer to fares in the third class, and to 
 
 ^ At the present time (1892) the last returns show an open mileage of 
 18,042, a total of all classes conveyed yearly of 127,456,913, and the 
 number per mile open 7064.
 
 RATES AND FARES 19, 
 
 disregard the other classes as having no practical effect on the 
 revenues of Indian railways. > 
 
 The obstacles in the way of reduction of fares were to be 
 found in two leading principles, which appear to have been then 
 (Considered the foundation of all policy. The first was that 
 the lines must be made promptly profitable ; and, secondly, that 
 " the cost of conveyance " was merely a fixed figure, 'i'hus in 
 1866 we find it said, in a report to the Secretary of State, that 
 "there has been a tendency during the past year to increase rates 
 and fares. ... It is not yet possible to judge what the established 
 rates for passengers should be," but that " lower rates may be 
 found more profitable than higher. If, however, the traffic goes 
 on increasing in the same ratio as it has done during the last 
 two years, the rates wall in some cases have to be raised higher 
 than they are now, in order to realise the profits which the 
 railways could command. Considering the question in the 
 abstract, the first point to be ascertained, before fixing charges 
 of this kind, is the cost of conveyufice, and then the charge 
 which, in addition to what is required to cover the cost, will 
 produce the greatest aggregate return ; for it should be borne 
 in mind that it is not the high profit upon the unit, but the 
 small profits upon large numbers or quantity which should be 
 sought for." It is not necessary at the present day to comment 
 on this peculiar mixture of views, but it took many years 
 before the dictum conveyed in the last sentence was acted upon 
 in India. The tendency to charge high fares and rates appears, 
 at any rate, not to have been shown by the Government, but 
 by the railway companies, the former having been charged 
 indeed with allowing them to be too low, and thus neglecting 
 the interests of the general taxpayer, who had to find the 
 interest guaranteed on the capital outlay of the companies. 
 This consideration had necessarily considerable weight in 
 influencing the action of the Government. It recognised the 
 broad, general benefit which railway comrmunication conferred 
 on the country, both directly and indirectly, but it was bound
 
 192 RAILWAY POLICY IN INDIA 
 
 i to recognise that it endowed the trading and travelling classes 
 ' with special advantages, and that the burden of the guarantee 
 must not be allowed to lie too heavily on the public at large, 
 i The firm intention of the Government not to relinquish or 
 loosen their control over the passenger fares levied on the 
 companies' lines is well illustrated in a despatch to the Secretary 
 of State in 1867.^ This was in reply to one in which a 
 minimum of interference was suggested, unless on the ground 
 of the fares being more or less likely to be profitable to the 
 company concerned. They said, referring to the views of the 
 Secretary of State, that— 
 
 2. No recognition appears therein to be made of any duty on 
 the part of the Government to protect the interests of the people. 
 This duty is recognised in England in the institution of parlia- 
 mentaiy trains. In India, where the Government gives a 
 guarantee of interest, in addition to other privileges allowed to 
 
 I railway companies, we are of opinion that it has a still stronger 
 \ right, and is bound by a more imperative duty, to look to the 
 ; interests of the people in this matter. Further, our belief is that 
 \ a railway best serves its own interests as well as those of the 
 Government by accommodating itself to the wants of the public. 
 
 3. .While freely admitting that the control of the Government 
 should not be so exercised as to compel the railway company to carry 
 passengers without a profit, we should suggest that in any arrange- 
 ment for the re -adjustment of fares of the lower classes, the 
 accommodation of the public should be considered, so far as it is 
 not manifestly incompatible with the interests of the company, or 
 the means at their disposal for providing such accommodation. The 
 cases which we have more particularly in view are those in which 
 there is doubt, and in such cases wc think the companies should 
 try first the proposals most favourable to the public. 
 
 4. We beg that the principle we have now advanced may be 
 considered as the rule in dealing with questions of railway fares. 
 
 In a circular issued in the Public Works Department in 
 ^ No. 26, dated 8th February 1S67.
 
 RATES AND FARES 193 
 
 October 1867/ the Government of India decided that, as 
 regards the guaranteed lines, the fares then in force and 
 sanctioned should be held to be the maxima, and that in the 
 case of lines to be opened in the future, the maximum would 
 be fixed for the lowest class at the rate of 2 pies per mile, the 
 accommodation to be provided being "in covered carriages 
 without seats." This latter condition was, however, never 
 carried out, notwithstanding that the habits of the natives 
 would have made it quite acceptable; but the main reason 
 against it was the difficulty of providing against overcrowding, 
 and of giving each passenger adequate space. On receipt of a 
 copy of this circular by the Secretary of State, he objected to 
 the intention declared therein, that the Government of India 
 should fix such maxima or withdraw powers of this nature from 
 the local Governments, in whose hands should be left "the 
 settlement of the maximum scale of rates and fares for every 
 description of traffic on railways within their Presidencies." ^ 
 He held that it was as much the interest of the companies as 
 of the Government "to give the maximum number of passengers 
 with the maximum of profit." In replying to this, the Govern- 
 ment of India felt obliged to protest against the decision, and 
 before carrying out these instructions, said — 
 
 .... We beg to submit the following observations for your 
 consideration, referring to the opinion that the raihvay companies 
 have, in commou with the Government, as much interest in regulat- 
 ing fares so as to " give the maximum number of passengers with 
 the maximum profit," and that there is every reason to expect 
 that they will exercise their powers judiciously in this respect. 
 He would observe that it does not appear to us to be the interest 
 of the railway companies to carry the maximum of passengers 
 with the maximum of profit, but on the contraiy, to get the 
 maximum of profit with the minimum of passengers ; thus it would 
 
 
 1 No 10, Raihvay, dated i6th October 1867. 
 - Despatch No. 17, of 29th February 1868, from Secretary of State. 
 
 O
 
 194 RAILWAY POLICY IN INDIA 
 
 be preferable to them to carry two million passengers in a half- 
 year at 3 pies (per mile), instead of three million passengers at 2 
 pies. Now the interest of the Government, acting in behalf of 
 the people, is directly opposed to this. At the same time, we do 
 not desire that the companies should lower their fares so as to lose 
 the maximum profits, nor indeed are we of opinion that the 
 companies would wish to raise their fares so as to cause the 
 number of passengers to fall below what would give the maximum 
 I of profit. But between these two extremes the interests of the 
 j Government and the people are opposed to the interests of the 
 railway companies and their officers. 
 
 Later on, in 1869, we find the Government of India so 
 intent on promoting the movement of the lower class, as to be 
 prepared to incur the risk of losing dividend to meet the outlay 
 on guaranteed interest. In a despatch to the Home Govern- 
 ment in 1869,^ they say that it is of the last importance to fix 
 the third-class fare on Indian railways "at the lowest possible 
 amount," in the interests of the companies and of the vast 
 masses of the native population ; that they will prefer to travel 
 on foot or in carts, regardless of personal inconvenience or loss 
 of time, so long as they can make a saving by such methods 
 over that of travelling by rail ; that it is to this class that 
 returns must be looked for from passenger traffic in India, and 
 that therefore fares should be pitched so as to secure the 
 greatest possible number. In a letter written previously to 
 the Government of Madras (in August 1869), this view is put 
 even more plainly with reference to reduction of fares on the 
 Madras Railway. " His Excellency in Council is accordingly 
 strongly of opinion, that it will be to the ultimate benefit of the 
 company to look more at present to an increase of numbers, 
 by the adoption of a lower fare for the third class, than to any 
 immediate important addition to the receipts. ... It can 
 ;' neither be to the financial interest of the company nor to the 
 ' well-being and prosperity of the country, that the fares should 
 
 ^ No. 115, Railway, 24th November 1869.
 
 RATES AND FARES 
 
 195 
 
 r be pitched so high that the miUions may not be induced to 
 ' travel." 
 
 In 1869-70 the Government of India commenced the con- 
 
 Istruction and working of a system of State raihvays, by the 
 direct agency of its own officers, with the avowed intention of 
 endeavouring to reduce and simphfy rates and fares. As soon 
 as the first sections of these hnes approached completion, the 
 Government addressed the Secretary of State on the subject.^ 
 They said that they proposed to adopt, with some minor 
 alterations, the rules and regulations as regards working which 
 were then in force on the guaranteed railways, and to simplify 
 the classification and rates for goods • while for this and for 
 passenger traffic they intended to have four classes, as follows, 
 based as regards charge on a station-to-station rate, the uniti 
 for goods being on a weight of a " maund," viz, 82 lbs. 
 
 ^ 
 
 -* 
 
 Goods. 
 
 Passenger. 
 
 Special 
 1st class 
 2nd ,, 
 3rd „ 
 
 Pies. 
 2 
 
 4 
 6 
 8 
 
 1st class 
 2nd ,, 
 3rd ,, 
 4th ,, 
 
 Annas. 
 
 8 
 
 4 
 2 
 I 
 
 The lowest passenger fare of one anna between stations 
 worked out then at from i to ih pie per mile, which was 
 equal to about half a farthing. It was considerably lower 
 than that on any other Indian railway at the time, the lowest 
 fares being on the Great Indian Peninsula and Madras 
 Railways, on which there were fares of 2i and 2 pies per 
 mile ; but the service for these rates was worked with so many 
 vejcadpus restrictions, that it gave but little hope of becoming 
 successful. An attempt had, it is true, been made on two 
 other lines, in 1861, to give what were called "coolie" trains, 
 with a fare of ih pie per mile; but for the same reason, and 
 
 1 In Despatch No. 26, Railway, of the 29th January 1S73.
 
 196 RAILWAY POLICY IN INDIA 
 
 because the people had not then become accustomed to rail- 
 way travelling, this was abandoned as unremunerative. The 
 rates above quoted for State railways were duly put in force, 
 although on lines which passed through comparatively poorly 
 populated areas. On one of them three classes only were in 
 use, and on the other four classes, and when these two lines 
 were about to be connected and amalgamated under one man- 
 agement, it became necessary to have the same classes on 
 both. In advising the Government on this point, the Director 
 of State Railways (then Colonel E. C. S. Williams, R.E.) said 
 that he was satisfied, from a study of the traffic by classes on 
 the older lines generally, and particularly on the open lines of 
 State railways, that the attraction of the lowest class, " whether 
 it be I or i| annas per station, is so great, that practically 
 no large section of the masses will pay even half an anna 
 extra per station distance for mere segregation." The pas- 
 senger mileage on the lowest rate was then, in fact, more than 
 double that which obtained on the next higher, and, as Colonel 
 Williams truly said, " the mass will always go for the lowest 
 class, and the lower its fare the greater will be the tendency to 
 two classes only ; " and again, " It is solely to the lowest class 
 of passenger traffic that we can look for profit in coaching, if such 
 profits be a sine qua non} and the really important question, 
 and to which we shall shortly c6me, is. What shall be the fare 
 in the lowest class henceforth ? '* The report recommended 
 for adoption on State lines the three classes above mentioned, 
 which then worked out for the lowest class at from 2 J to \\ 
 pies per mile, according to the distances between stations. 
 These recommendations were accepted by the Government of 
 India, and in the letter in which this was intimated there is a 
 sentence worth quoting as a typical illustration of paternal 
 solicitude for the native passenger. The Director was in- 
 structed, that "without allowing any caste distinctions, the 
 Government of India are of opinion that general instructions 
 ^ To the .State.
 
 RATES AND FARES 197 
 
 should be issued to station-masters and guards not to force 
 very dirty people into carriages with decently-dressed passen- 
 gers, so long as there are vacant seats elsewhere." To this 
 was added the further instruction, that accommodation was to 
 be reserved on every train for women in the third class. In 
 reporting their decision in this matter to the Secretary of State, 
 the Government stated that, while the determination of the 
 fares in the first and second classes was comparatively unim- 
 portant, that of the lowest class was quite otherwise, as this 
 was the one that paid, and that in accepting an average of 
 about 2 pies per mile, they thought that this was the lowest 
 that could safely be adopted for the present. 
 
 With the aim, kept steadily and constantly in view, of 
 attaining simplification, and as far as possible reduction in 
 rates, the Government issued a circular letter in May 1876, 
 putting forward statements showing the existing classification 
 of goods, the average goods rates, and average passenger fares 
 on all the Indian railways, and invited the agents and man- 
 agers to endeavour to arrive at uniformity; and later on, in 
 September of the same year, proposed a conference of railway 
 officials for the discussion of sundry disputed matters, among 
 which was that of the reduction of passengei" fares. These 
 then stood as follows in each class : — 
 
 [AVER.^GE
 
 198 RAILWAY POLICY IN INDIA 
 
 Average Passenger Fares on Indian Railways in 1876. 
 
 
 
 
 Average Fare per Mile. 
 
 
 I St 
 
 2nd 
 
 Inter- 
 mediate 
 Class. 
 
 Lowest 
 
 
 Class. 
 
 Class. 
 
 Class. 
 
 
 Pies. 
 
 Pies. 
 
 Pies. 
 
 Pies.i 
 
 Madras ..... 
 
 15 
 
 6.5 
 
 3-5 
 
 2 
 
 South Indian . 
 
 
 
 12 
 
 5 
 
 
 2 
 
 Great Indian Peninsula 
 
 
 
 18 
 
 9 
 
 4 
 
 2-5 
 
 Bombay, Baroda, and C. ] 
 
 ndia 
 
 
 15 
 
 7 
 
 
 3 
 
 East Indian 
 
 
 
 18 
 
 9 
 
 4-5 
 
 3 
 
 Eastern Bengal 
 
 
 
 12 
 
 6 
 
 4-5 
 
 3 
 
 Oude and Rahilkund 
 
 
 
 
 9 
 
 
 2 
 
 Punjab and Delhi 
 
 
 
 17.78 
 
 8.94 
 
 4-47 
 
 2.77 
 
 Sind 
 
 
 
 13-52 
 
 4.8 
 
 
 2.84 
 
 Calcutta and S. Eastern 
 
 
 
 
 9 
 
 
 2.55 
 
 Nalhati . 
 
 
 
 28.13 
 
 14.07 
 
 7.06 
 
 4.62 
 
 ^Rajputana 
 
 
 
 10.38 
 
 4.61 
 
 
 2.03 
 
 ^Holkar ... 
 
 
 
 11.79 
 
 4.42 
 
 
 2.21 
 
 Khamgaon 
 
 
 
 18 
 
 9 
 
 4 
 
 2.5 
 
 Amraoti . 
 
 
 
 18 
 
 9 
 
 
 4 
 
 Wardha Valley 
 
 
 
 18 
 
 9 
 
 4 
 
 2.5 
 
 Nizam's 
 
 
 
 18 
 
 9 
 
 4 
 
 2.5 
 
 "Tirhoot 
 
 
 
 12.09 
 
 4-36 
 
 
 2.18 
 
 -Punjab Northern 
 
 
 
 9-43 
 
 4.71 
 
 
 1.87 
 
 The Government subsequently issued a resolution on the 
 effect of low fares, recommending the adoption of a maximum 
 for the lowest class of 2^ pies per mile (about a farthing), and 
 in this they urged that low fares had been adopted on the State 
 lines, and that in guaranteeing interest on the company's lines, 
 they would in effect be liable for any loss which the adoption of 
 a similar course might cause on these railways. The resolution 
 went no further, but on the East Indian Railway, where under a 
 new contract the Government had powers to reduce fares in the 
 lowest class to 2 pies per mile, a firmer position was assumed, 
 and -the agent of the line was required, while thoroughly 
 opposing it, to reduce his rate of 3 pies to 2^ pies. The 
 agent (Mr., now Sir Bradford Leslie) objected, on the ground 
 
 ^ The value of a pie might be taken then at a little over half a farthing. 
 - State Railways.
 
 RATES AND FARES 199 
 
 that he was satisfied that the existing fare did not exclude " a 
 single bona fide traveller, whether on business or on pleasure," 
 and that the 2\ pie rate would not only result in increasing 
 the passenger mileage, by the amount requisite to yield the 
 same net receipts, but would not even give the same gross 
 receipts. Fortunately, however, the Government, under strong 
 and able advice, stood firm, enforced the lower rate, and said 
 that if it was as they anticipated successful, they would require 
 it to be lowered still further, viz. to 2 pies per mile. It is 
 worth while to notice how fully the result justified the action 
 of the Government. In 1880, when the 3 pie per mile rate 
 was in force, the number of third-class passengers conveyed was 
 7,792,724, and the numbers and receipts per mile open 5181, 
 and Rs.5748. In 1892, the lowered rate of 2\ pies having 
 been in action since 1881 over the whole system, the total 
 numbers carried of the same class was 11,769,923, and the 
 numbers and receipts per mile open were respectively 8841, 
 and Rs.7310. But, in fact, from the very first the beneficial 
 effect of the reduced fare was clearly seen, not only in the 
 increase of numbers and in the slow but steady increase in 
 receipts, but in the manifest advantage which it gave to trade 
 and to goods traffic in facilitating the movement of the smaller 
 traders. 
 
 Again, in the same year 1880, in reviewing the accounts of 
 the South Indian Railway Company (a guaranteed line), the 
 Government of India, in a letter to the Government of Madras, 
 urged that a fair local train service should be maintained on 
 the lines in that province for the benefit of the poorer classes 
 at a rate of not more than 2 pies per mile, and that the com- 
 pany referred to should be informed that, as there was no 
 immediate prospect of their being able to earn surplus profits 
 over and above the figure of guaranteed interest, they should 
 be " liberal in their dealings with native travellers," and that 
 " any loss that may arise from such liberality will not fall on 
 the shareholders, but on the Government ; while if there is a
 
 200 RAILWAY POLICY IN INDIA 
 
 development of trade and of passenger traffic, the shareholders 
 will get the advantage hereafter when surplus profits begin to 
 be realised." Early in 1881 ^ the Government of India issued 
 a pamphlet giving the opinions of provincial Governments 
 and of leading railway officials on the subject of low pas- 
 senger fares. The general feeling was strongly in favour of 
 the principle, but there was a marked divergence of view as 
 to what a low fare implied. The publication was however 
 distinctly useful, not only in the dissemination of opinion on 
 the general aspects of the question, but in offering facts and 
 figures which required to be more widely known to railway 
 men. The manager of one of the State lines - put the case in 
 a way which is still applicable, and is worth reproducing. He 
 said that "if we look at what railways have done, in view of the 
 conditions they have had to face, we shall find that they have 
 adopted, in competition with carts and boats, comparatively 
 low goods rates, but that they have never thought of lowering 
 their passenger fares sufficiently to enable an ordinary coolie to 
 travel more cheaply by rail than he can travel on foot, though 
 this can undoubtedly be done. ... It is not, therefore, to be 
 wondered at that railways have altogether failed to attract the 
 masses, and have only succeeded in getting the well-to-do 
 classes. . . . To attract the masses railways will have to lower 
 their fares until a journey can be done as cheaply on the 
 railway as on foot. To do this, the fare must not exceed li- 
 annas for twenty miles, or say i pie per mile, and perhaps in 
 the poorer districts it may have to be reduced to | of a pie." 
 In issuing this pamphlet, the Government observed that third- 
 class fares had been reduced by order to 2I pies per mile on 
 the East Indian Railway (as above noticed), and that the effects 
 of this reduction would be watched " with care and interest," 
 with the view of proceeding further in the direction of a 
 
 ' Circular No. VII., Railway Government of India — Public Works 
 Department — 21st January iSSi. 
 
 2 Major (now Colonel) Sedgwick, R. E.
 
 . RATES AND FARES 201 
 
 general reduction of fares, and it was added that this oppor- 
 tunity was taken of impressing on all raihvay administrations 
 that increases of fares were deprecated, and should not be 
 permitted except on the clearest and strongest grounds. 
 
 To those who are conversant with the habits and character 
 of the Oriental, it will be readily understood that no difficulty 
 has at any time arisen on the question of the speed or 
 accommodation in trains in dealing with native passenger 
 traffic. To the vast majority of native travellers, a distance of 
 200 miles in the 24 hours is fully as much as they expect, and 
 they prefer, for many reasons (among others the absence, 
 owing to sundry objections, of the provision of conveniences in 
 the carriages), to find long halts every few hours, where they 
 can " spread themselves out," buy and eat such food as they 
 allow themselves on such journeys (which is found for sale on 
 the platforms), discuss the incidents of travel, the prospects 
 of crops, or the chances of some everlasting law-suit. The 
 discomfort, which to a European would be intolerable, in such 
 a climate, of cramped accommodation, hard boards to sit on, 
 the crush at booking-offices, and the many worries incidental 
 to the discipline of railway arrangements, are accepted by them 
 with a patience, and even good - humour, which is really 
 surprising, and which is, or at least should be, standing 
 evidence of the possibilities of development of this traffic. In 
 the direction of improving the comfort of the lower class very 
 little has been done, or indeed has been possible. Stringent 
 rules have been issued from time to time against overcrowding 
 in carriages, for the provision of reserved compartments and 
 conveniences for native women, and for giving ample water 
 supply at all stations, especially in the hot season ; while the 
 introduction of an " intermediate" class, at a slightly increased 
 fare, affords for long journeys, to those who can afford it, some 
 possibility of sleeping at length on a rather hard bench, instead 
 of sitting in one posture for hours or days on an equally hard 
 seat. But nothing would, in fact, be gained even in competition
 
 202 RAILWAY POLICY IN INDIA 
 
 by the provision of such luxuries as the cushions and lavatories 
 which are now considered indispensable in the third class on 
 the leading English railways. All that the lower classes 
 require in railway travelling is the means of transit at less 
 cost than that of doing it on foot. Temporary discomfort 
 or inconvenience, or the loss of a few hours at stations, are 
 wholly disregarded as compared with money cost, and it is with 
 this factor and this only that we have to reckon in fixing our 
 fares for the bulk of our native passengers. 
 
 It is not necessary to notice in detail the successive phases of 
 the efforts made by the Government for the reduction of the fare 
 in the lowest class. On the State railways, and on those of the 
 " assisted " companies, under whose contracts the Government 
 had full control over rates and fares, the issue of an order was 
 sufficient to ensure its being carried out promptly and loyally ; 
 but in other directions, as for instance on lines controlled by 
 native States, or on lines on which there were good prospects 
 of surplus profits over and above the guaranteed interest, and 
 the terms of whose contracts prevented any extreme measures 
 of interference, the Government was constrained to act with 
 caution, and to be content with offering advice and the 
 example of the State lines. On these, moreover, while it 
 could be shown that the low rates induced a most noticeable 
 increase in numbers, it could not be as clearly proved that 
 they were directlj', or at least promptly, profitable. The gross 
 receipts improved, but, on the other hand, working expenses, 
 including train mileage, increased, and allowance had to be 
 made for interest on the capital outlay for additions to rolling 
 stock. To the State, the evidence of net profits was not so 
 material as the fact of the increased movement of the people, 
 and the consequent indirect advantages which this implied in 
 so many ways. Up to the year 1890, the minimum fare 
 aimed at by the Government was if pies per mile,^ but was 
 
 ^ Public \Vorks Department, No. 1446, Railway Traffic, of 1 2th De- 
 cember 18S7.
 
 RATES AND FARES 203 
 
 not acted on, the lowest fare on State lines being 2 pies per 
 mile. In July 1891^ this minimum was further reduced to 
 ih pie per mile, a decision for which the author may claim 
 to have contributed by a communication on the subject in 
 October 1890. As yet one line only, the Madras Railway, has 
 had the sense to adopt this fare, and with results that are so 
 far very encouraging; while another, the Bengal and North- 
 western Railway, closely follows with a station-to-station rate, 
 which is equivalent to about if pies per mile, and with entirely 
 satisfactory effect. What is needed is that the Government 
 should have the courage of its opinions, and show the lead by 
 giving this low rate a full and fair trial on some large State 
 line. There is good reason for the hope that this course will 
 be shortly taken ; but until this is done, it will continue to be 
 held, by those well qualified to hold the opinion, that we have 
 not yet reached, and that by a long way, the limits of our 
 passenger traffic on Indian railways, and to this it will be im- 
 possible to offer any adequate refutation. At the same time, 
 it is conceded that a rate of li pie per mile is not properly 
 applicable over the whole Empire, but is only suited for 
 adoption over areas in which the population is at once dense 
 and poor, and where low wages, and the general struggle for 
 existence, renders them unable to contemplate journeys by rail 
 on more onerous terms. The statistics of the railways which 
 serve such districts point to the certainty that with large 
 numbers, low speeds, and properly-fitted vehicles, passengers 
 of the lowest class could be carried at a fare of i pie per mile, 
 and leave a profit of from 20 to 30 per cent ; but the cost of 
 carriage is a quantity varying with the volume of traffic, and it 
 may be found that an even lower rate is possible. If, how- 
 ever, we can profitably carry at i pie a mile — a rate which 
 implies that a man can travel 24 miles for the lowest daily wage 
 now paid in India— we may rest satisfied that we have placed 
 railway travel within the means of the poorest classes, and may 
 ^ See Appendix.
 
 .204 
 
 RAILWAY POLICY IN INDIA 
 
 be content to wait for the results. The following table shows 
 the average fares in the three periods 1872 to 1892 on the 
 principal Indian railways : — 
 
 
 
 
 Far 
 
 Es, Lowest Class. 
 
 Railway. 
 
 
 
 
 
 
 1S72. 
 
 1882. 
 3 
 
 1892. 
 
 Remarks. 
 
 East Indian 
 
 3 
 
 2.5 
 
 State Line. 
 
 Great Indian Peninsul 
 
 1 2.5 
 
 2.S 
 
 2-5 
 
 Guaranteed Line. 
 
 Madras 
 
 2 
 
 2 
 
 1-5 
 
 Do. do. 
 
 Bombay, Baroda 
 
 3 
 
 2.S 
 
 2.25 
 
 Do. do. 
 
 Sind-Punjab 
 
 3 
 
 2.S 
 
 2 
 
 Now North-Western Railway. 
 
 Great Southern . 
 
 2 
 
 2.'; 
 
 2 
 
 Now South Indian Railway. 
 
 Eastern Bengal . 
 
 3 
 
 3 
 
 2.=; 
 
 State Line. 
 
 Oude and Rahilkund 
 
 2 
 
 2.'? 
 
 2.5 
 
 Do. 
 
 Rajputana . 
 
 
 2 
 
 2 
 
 Do., leased to Company. 
 
 Tirhoot 
 
 
 2.S 
 
 1-75 
 
 Do. do. 
 
 Nizam's 
 
 
 2 
 
 2 
 
 Company's line. 
 
 Indian Midland . 
 
 
 
 3 to 2 
 
 According to distance. 
 
 Bengal-Nagpore . 
 
 
 
 2 
 
 
 Schedule of Maxii\l\ and Minima Rates and Fares in 
 Coaching Traffic, given in Appendix A to P. W. D. 
 Resolution No. 1446, R.T., dated 12th December 1887, 
 and at present in force. 
 
 Passenger Fares — 
 1st class 
 2nd class . 
 Intermediate class . 
 3rd class . 
 
 Luggage 
 
 Carriages " — 
 
 Single carriages 
 
 Maximum. 
 Pies per mile.l 
 
 9 
 
 4^ 
 3 
 
 Maximum. 
 
 Pies per maund 
 
 per mile. 
 
 Maximum. 
 Pies per mile. 
 
 42 
 
 Minimum. 
 Pies per mile. 
 
 12 
 6 
 
 3 
 if* 
 
 ISIinimum. 
 
 Pies per maund 
 
 per mile. 
 
 Minimum. 
 Pies per mile. 
 
 ^ One pie may be taken as one-twelfth of a penny. 
 - Subject to a minimum charge of Rs.5.
 
 RATES AND FARES 
 
 205 
 
 Two or more carriages on one 
 truck .... 
 
 Horses ^ — 
 
 Single horse 
 
 INIaximum. 
 Pies per truck. 
 
 54 
 
 Maximum. 
 Pies per mile. 
 
 . 24 
 
 Minimum. 
 Pies per truck. 
 
 42 
 
 Minimum. 
 Pies per mile. 
 
 18 
 
 Dogs — 
 Each 
 
 Maximum. Minimum. 
 
 Pies per fifty miles Pies per fifty miles 
 
 or portion thereof, or portion thereof. 
 
 96 48 
 
 Parcels — 
 
 The rates passed at the Railway Traffic Conference of 
 under : — 
 
 Not exceeding 5 seers or i cubic foot - 
 ,, 10 ,, 2 cubic feet 
 
 20 ,, 4 
 
 40 „ 8 
 
 For every additional 10 seers or 2 
 
 cubic feet, or portion of 10 seers or 
 
 2 cubic feet ... 4 2 
 
 Parcels exceeding 40 seers in weight, or 8 cubic feet in measurement 
 may be booked if accommodation will allow. 
 
 'irst 100 miles. 
 
 £,very 
 
 ■ IOC 
 
 aaaii 
 1 mile 
 
 Annas. 
 
 A 
 
 nnas. 
 
 3 
 
 
 I 
 
 6 
 
 
 3 
 
 10 
 
 
 5 
 
 13 
 
 
 6i 
 
 16 
 
 
 8 
 
 Goods Rates. 
 
 It must be stated at the outset, in dealing with this subject, 
 that the object of this work is to indicate the poUcy of the 
 Government of India, and that only incidental notice will be 
 taken of the minor or comparatively unimportant action or 
 deaHngs of local governments and officials. Nevertheless, it 
 was from this source that in the earlier years of Indian railways 
 
 ^ Subject to a minimum charge of Rs.5. 
 
 ^ Subject to a maximum charge of one rupee for a parcel not exceeding 
 5 seers, irrespective of distance.
 
 206 RAILWAY TOLICY IN INDIA 
 
 the interpretation and working of the contracts with the 
 guaranteed raihvays was sought and obtained, and it was not 
 until the year 1867 that the Supreme Government felt it neces- 
 sary to determine on a definite course as regards the extent of 
 their control over rates and fares generally. In that year the 
 Government of India addressed a despatch on the subject 
 to the Secretary of State for India,^ and in replying on the 
 1 6th May of the same year they were informed by the Secre- 
 tary of State that the conclusion he had arrived at, "after 
 careful examination of all the circumstances of the case," was 
 that the companies should be left free, within the maximum to 
 be fixed by Government, to make such alterations in their 
 scale of rates and fares as they might at any time think 
 desirable. On this the Government of India issued a circular 
 from the Public Works Department,- addressed to all " local 
 Governments and Administrations," which propounded certain 
 principles for their guidance in controlling rates, and indicated 
 the part which the Supreme Government should take in this 
 respect. It held that the Government of India should only so 
 far interfere as might be necessary to fix a general policy, and 
 "to regulate matters by which a railway company working 
 within the territories of one local Government may affect a 
 company working within the territories of another Govern- 
 ment." Beyond this the Government of India desired to 
 leave the subject of maximum rates and fares entirely to the 
 local officials concerned. They further declared that the only 
 policy of the Supreme Government, as regards the fixing of the 
 rates and fares on railways, should be to make them as gene- 
 rally useful to the mass of the people as was consistent with 
 due profits to the companies ; that the powers of the Govern- 
 ment under the contracts were limited to the approval of in- 
 \ creases of fares after they had been once fixed, and to the 
 fixing of fares on the first opening of a railway. It was clear, 
 
 1 No. 26, of 8th February 1867. 
 - No. 10, Railway, of i6th October 1867.
 
 RATES AND FARES 
 
 207 
 
 it was said, "that it can never be proper to insist on any fare 
 or rate that shall not afford a reasonable profit with ordinarily 
 filled trains, and that there are only a few cases in which the 
 Government should interfere with the freedom of the com- 
 panies to act according to their judgment on the ordinary 
 system of trial of the relations of supply and demand." The 
 matters which it was held should be retained in the hands of 
 the Government of India were the fares for the lowest class of 
 passengers, the rates for food grain, and for the carriage of 
 coal. As regards the two last, the circular said that the rates 
 already in force and sanctioned were to be considered as the 
 maximum on lines already opened, and that on future lines the 
 maximum rate was to be -|- of a pie ^ per mile, or (at the then 
 rate of exchange) |-|- of a penny per ton mile. The then 
 maximum rates on four of the principal Indian railways at the 
 time was as follows in each class, to which terminal charges 
 were added : — 
 
 Classes of Goods. 
 
 Rates per Ton Mile Pies. 
 
 East Indian 
 Railway. 
 
 Great Indian 
 Peninsula 
 Railway. 
 
 Bombay, 
 Baroda, and 
 Central India 
 
 Railway. 
 
 Madras 
 Railway. 
 
 ISt . . . . 
 2nd. . . . 
 3rd. . . . 
 
 4th . . . . 
 Sth. . . . 
 
 9 
 134 
 18 
 
 27 
 
 54 
 
 8 
 
 10 
 16 
 
 20 
 30 
 
 8 
 10 
 16 
 20 
 30 
 
 14 
 
 iS 
 
 24 
 
 36 
 
 54 
 
 The interference of the Government had not taken place 
 too soon, for the railway companies had already begun to ex- 
 perience the pressure of traffic, and to recognise that in the 
 absence of competition they had the game in their own hands. 
 The want of rolling stock further increased both the need and 
 the possibility of charging higher rates, especially in the busy 
 ^ A pie is one-twelfth of an anna, and 16 annas = i rupee.
 
 2o8 RAILWAY TOLICY IN INDIA 
 
 season, while the agents of the two companies on the Bombay 
 side had represented the enormous difference between the 
 rates they were allowed to charge and the rates for carriage by 
 cart, which was seven times greater than those by rail. It is 
 curious to note, however, that thus early in this discussion the 
 companies offered to accept minima if they could be allowed 
 to increase their maxima. There being then no competition, 
 this did not then seem to be a matter of importance to the 
 Government, and, unfortunately, as it proved eventually, it 
 passed unnoticed in the circular above referred to. 
 
 The action taken by the Government of India did, how- 
 ever, meet with the approval of the Home Government.^ The 
 Secretary of State agreed in the view that the Government of 
 India should only interfere so far as to fix a general policy, but 
 held that in keeping in their hands the fares for the lowest 
 class of passengers, and the rates for food-grains and coal, the 
 suggested limit had been passed, and that the settlement of 
 the maximum for every description of traffic should be left in 
 the hands of the local authorities. He said that in directing 
 the establishment of maximum rates and fares he had intended 
 that such bounds should be fixed as would leave it to the dis- 
 cretion of the companies to vary the rates in force, and that 
 in some of the rates mentioned in a recent circular no such 
 discretion was left. He held that the companies were not 
 advocates of high rates, as it was as much their interest as that 
 of the Government that their charges should be so regulated 
 as " to give the maximum of passengers with the maximum of 
 profit." The despatch thus made pointed reference mainly to 
 passenger traffic, and the reply of the Government of India - 
 dealt only with this phase of the question, laying stress on the 
 importance, or rather the necessity, for control in this respect, 
 and insisting that the interests of the Government and the 
 
 ^ See despatch No. 17, of 29th February 1S6S, from Secretary of State 
 for India. 
 
 - No. 75, Railway, of 25th April 1S68.
 
 RATES AND FARES 209 
 
 companies could not be considered to be identical. This 
 protest, nevertheless, appears to have had but little effect in 
 moving the Secretary of State from his original position. In 
 replying in June of the same year ^ he regretted that he was 
 unable to agree with the views of the Government. He was 
 quite sensible, he said, of the advantage of low rates to the 
 travelling and trading public, and that they would most 
 probably in the long-run be remunerative, but he thought that, 
 as regards passenger traffic, the interests of the lower class of 
 travellers would be sufficiently protected by the maxima to be 
 fixed by local Governments ; and that as regards rates gene- 
 rally, the right policy was to leave to the companies the duty 
 of fixing them within such limits. He concluded by stating 
 that it was his wish " that maximum rates should be fixed by 
 local Governments, that the actual rates within such maximum 
 should be regulated by the railway companies, and that the 
 maximum rates fixed by local Governments should leave a 
 reasonable margin for exercise of discretion by a company in 
 varying working rates as circumstances may, in their opinion, 
 require." . 
 
 Views, or rather orders, thus plainly stated, left the Govern- 
 ment of India no option but that of compliance, and in October 
 a fresh resolution was issued ^ giving effect to them in practi- 
 cally similar terms. In forwarding a copy of this resolution to 
 the Home Government on the same date, the Government of 
 India did not attempt to conceal their objections. They 
 admitted that the local Governments were as well able to 
 protect the interests of the people as they were ; but that, 
 apart from the obvious difficulty of getting various distinct and 
 distant authorities to adopt the same means to attain the 
 desired end, there was the financial objection, insomuch that 
 the different means adopted were so many experiments made 
 at the risk of the Government of India, which was responsible 
 
 ^ Despatch No. 48, dated 25th June 186S, from Secretary of State. 
 
 " Nos. 1174-80, Railway, of 6th October 1868. 
 
 P
 
 2IO RAILWAY POLICY IN INDIA 
 
 for the finance of the Empire. They further urged that one 
 central authority was the most suitable in order to carry out 
 an approved policy with consistency and success. No diffi- 
 culties of any moment arose in carrying out this policy so long 
 as the main lines were free from competition, and no further 
 references appear to have been made until then to the 
 Secretary of State. Each line had a definite territory of ample 
 dimensions, and within the maxima rates fixed by the local 
 authorities it was free to adopt such rates as the traffic would 
 bear. No attempt had been made by the Government- to 
 secure any uniformity in the scales of rates or in classification. 
 The divergences in the rates may perhaps be accounted for, 
 in some measure at least, on the ground that in India, and 
 indeed elsewhere, the traffic managers were apparently bound 
 by the assumption that the cost of carriage was some definite 
 figure, within narrow limits, on each railway, and influenced to 
 only a small extent, by the volume or character of the traffic 
 dealt with. But powerful agencies were ere long to come into 
 action, and to disturb the peaceful career of the guaranteed 
 lines. The opening of the Suez Canal, and the c onsequent 
 introduction of Jndian produce into the_ European markets on 
 favourable terms, led to, a keen rivalry between lines leading to 
 the sea-board ; a series of severe famines in different parts of 
 the country had similar results, and traffic officers began at 
 length to realise that the vnlnmp nf tnpnnge wag_an impnrfnnt 
 factor in determining the cost of transport by rail, and that 
 lates, which at one time would have seemed to spell ruin, 
 proved to be the principal source of profit. Later on the era 
 of State and competitive railways arrived, with the inevitable 
 effect of a war of rates, and appeals for the interference of the 
 Supreme Government. ^ 
 
 The first indications of the storm which was to set in later, 
 came in the shape of a memorial from Calcutta traders in 1881, 
 pointing out that the rates for produce between Upper India 
 and Bombay were injuring the trade of Calcutta, and praying
 
 RATES AND FARES 211 
 
 that relief might be afforded them, by requiring either that 
 higher rates should be enforced on the Bombay route or lower 
 on the Calcutta route. This plaint was supported by the 
 Bengal Chamber of Commerce, and as a part of one of the 
 routes to Bombay was over a State line, the Government of 
 India felt it necessary to take action. This took the form 
 of instructions to the manager of the State line that the 
 I charges to Bombay should not be lower than what was charged 
 ' on similar goods to Calcutta. It should be observed, that at 
 this time the route to Calcutta was, as regards rates, wholly 
 under the control of the Government, as the East Indian 
 Railway had become the property of the State in 1879. The 
 course thus taken by the Government of India was promptly 
 objected to by the lines leading to Bombay and the Bombay 
 Chamber of Commerce, and supported by that Government. 
 Both the Bombay lines were guaranteed, and were thus free 
 from anxiety on the score of low, or even unremunerative rates, 
 more especially as there was then but little prospect of their 
 yielding returns in excess of the guaranteed rate of interest, or, 
 in other words, of affording surplus profits over and above that 
 figure to the shareholders. The views of the Government of 
 India as conveyed, at the end of 18S1, to the Government of 
 Bombay ^ were, that while they did not intend that there should 
 be an absolute equalisation of rates from Upper India to 
 Calcutta and Bombay, under all circumstances, based only on 
 mileage, they thought that this principle should be adopted if 
 " tempered with the proper commercial principle of an even 
 return on the capital expended." They stated that from the 
 point of view of the general welfare of the country, it was im- 
 material to what party its surplus produce was directed so 
 long as the course of trade was unfettered by artificial obstacles. 
 " The lines of railway which the State has become instrumental 
 in providing have been constructed for the purpose of carrying 
 goods and passengers at the lowest rates consistent with 
 ^ Letter to Bombay Government, No. 1192, of 19th October 1881.
 
 212 RAILWAY rOLICY IN INDIA 
 
 yielding a fair and reasonable return on the capital laid out. 
 As trade increases these rates will decrease ; but the ultimate 
 limit of legitimate competition between the various lines must 
 be regulated by their capabilities of making an equally fair 
 profit from the traffic they carry." They were quite willing to 
 admit the advantages of competition in stimulating traffic, but 
 held that the disastrous results of this, when recklessly fol- 
 lowed, as on the English and American railways, had taught 
 the world a lesson which could not be ignored. 
 
 These views were strongly objected to by the Government 
 of Bombay. It was urged that it was quite impossible to adjust 
 rates on theoretical principles, which should be absolutely fair 
 to the railways concerned ; that the practical, simple, and 
 intelligible principle was that of equal mileage rates ; while to 
 attempt to fix rates with the object of insuring an equal return 
 on the capital invested, would assuredly lead to endless dispute, 
 and would fail to give satisfaction to traders. This remon- 
 strance from Bombay had been strengthened by the receipt of 
 a dispatch from the Secretary of State, ^ in which he held a 
 similar opinion, and indeed considered the position taken up 
 by the Government of India to be altogether unsound. He 
 held that it was impolitic to interfere with any idea of 
 adjudicating on the rivalry between the two lines affected, and 
 " that the advantages due either to geographical position, or 
 other circumstances, should furnish no reason for imposing on 
 either artificial restrictions in the shape of enhanced rates, 
 in order to produce an equal return of net profits on the 
 capital of lioth." This warning note failed in its effect, for 
 in May of the same year, we find the Government of India 
 addressing the Government of Bombay on the same subject, 
 and stating that the conclusion arrived at, " after careful con- 
 sideration of all the arguments adduced on this somewhat 
 complicated question," was that in fixing the charges for the 
 carriage of the same commodity on different railways, the cost 
 ^ No. 41, Railway, Qlh March 1882, to Government of India.
 
 RATES AND FARES 213 
 
 of carriage could not be neglected, nor could this " important 
 element " be omitted in the division of through rates between 
 lines working in connection. They pointed out the effects of 
 steep gradients in enhancing cost of working ; that it was 
 " perfectly clear " that a line under such conditions could not 
 carry at the same mileage rate as one under more favourable 
 conditions, and on the latter it would be manifestly unfair 
 to require its rates to be raised so as to produce equality. A 
 copy of this letter was communicated to the Secretary of State 
 in reply to his dispatch above referred to, stating that it was 
 the desire of the Government, in the interest of the country 
 generally, that all rates should be reduced to the lowest limit 
 which will give a fair profit, and that " this cannot be obtained 
 by the adoption of uniform mileage rates on all lines." " 
 
 The reply of the Secretary of State ^ was very decidedly 
 opposed to these views. He admitted that the cost of fuel 
 and the character of the gradients on a line must be consider- 
 able factors in determining the lowest rates at which goods can 
 be carried with a " fair margin of profit," but that elements still 
 more important were the capital cost and volume of traffic, and 
 that if the two Western lines were the property of private 
 companies, " they would certainly not raise their mileage rates 
 above those of the Eastern line, because their fuel was dearer 
 and gradients steeper." He held that it was impracticable 
 to attempt to proportion the rates on competing lines on the 
 basis of the supposed aggregates of the factors of cost of 
 transport on each ; that it would not be desirable, if it were 
 practicable, and that managers should be left to fix rates 
 as they may deem most advantageous for their respective lines, 
 subject to the interposition of Government in extreme cases. 
 The concluding paragraphs of the despatch are worth quoting 
 in full :— 
 
 12. In the present condition of the Indian raihvay traffic, I am 
 ^ Despatch No. 132, Railway, of 19th October 1S82.
 
 214 RAILWAY POLICY IN INDIA 
 
 not apprehensive of evil results from the course now indicated ; I 
 am rather disposed to think that the interests, both of the railways 
 and of trade generally, will be better served by accepting the 
 legitimate consequences of competition, regulated, as it necessarily 
 will be, by the desire to apply skill and economy to the work of 
 management, and stimulating as it must do, the introduction of 
 improvements in the harbour arrangements at the ports of ship- 
 ment to which competing lines lead. 
 
 13. As regards the division of receipts among the different 
 lines over which the traffic passes, it seems to me that the practical 
 difficulties in the way of establishing any agreement based upon 
 calculations of the cost of working would be insuperable, and that 
 the principle of a mileage division, which is applied under the 
 Clearing-House arrangements in this country, may fairly be applied 
 to Indian lines, whatever their original cost of construction or their 
 present cost of working may be. . . . 
 
 This solution of the difficulty, as offered by the Secretary of 
 State, was clearly the only practical one. It was not, however, 
 initil the following March (1883) that the Government of India 
 felt able to take action, and in a letter ^ to the Government of 
 Bombay, enunciated its views on the principles on which rates 
 and fares should in future be regulated. Starting with the 
 axiom that the fundamental aim in the management of a 
 railway was to attract the maximum quantity of traffic the line 
 can carry at the best rate s obtainable, it might be considered 
 that, in one sense, all rates would be special, though capable 
 of classification into groups, and that each rate would depend 
 on what the article would bear, what quantity of it is obtainable, 
 and what is the approximate cost of hauling it ; that the cost of 
 carriage would be one of the limits within which rates may vary, 
 the tax which the trade will bear being the other. But in the 
 determination of a rate, it was necessary to consider the whole 
 circumstances of the traffic dealt with as regards empty running, 
 the intermittent nature of it, and the effect of competition by 
 
 1 No. 162, K.T. (Railway Traffic), of the 2nd March 1SS3. 
 
 — iU t>c7< fUOL ^ '^•^'
 
 RATES AND FARES 215 
 
 Other routes. The theory of equal mileage rates was held to 
 have been condemned by competent authorities in England ; 
 while " telescopic " rates, or rates varying inversely as the 
 distance, were recognised as legitimate in all cases where the 
 favoured traffic would be lost without such rates, and as being 
 financially possible owing to the lower proportionate cost of 
 the longer lead. In a case where a railway had thfe practical 
 monopoly of the traffic, the fixing of rates was a simple matter, 
 in which the State need only interpose for the purpose of fixing 
 maxima in the interests of the public ; but that when com- 
 petition arose, the basis for the calculation of rates would be 
 materially changed. While bearing in mind such factors as 
 capital cost, gradients, cost of fuel, and carrying power, rates 
 had to be eventually governed by the necessity of attracting 
 traffic, and " not by any arbitrary standard of profit to which 
 it is thought fair to attain." A railway which was dis- 
 advantageously afiected as to cost, gradients, fuel, etc., must 
 expect "to go to the wall" in rivalry with another more 
 favoured naturally ; and from this it followed, that when traffic 
 passed over more than one railway, and the division of receipts 
 could be agreed upon on no other method, it would be necessary 
 to apportion them according to mileage run. 
 
 The next point considered was whether, in the case of com- 
 petition, those principles could be held to be affected by the 
 fact of the State being either the proprietor of or holding a 
 certain interest in and control over, one or more of the conflict- 
 ing railways. It was held that they were not ; that the State 
 ought not, and often could not, interfere so as to put all on a 
 theoretically fair and equal footing; that it could not legitimately 
 make a common purse among its railways, in order to support 
 one at the expense of another, or still less to drive an indepen- 
 dent competitor from the field. Rival routes must be left 
 alone, to get the highest traffic they can. The net result would 
 be "the greatest aggregate of traffic upon all combined, which 
 is consistent with a profit, the maximum of accommodation to
 
 2i6 RAILWAY POLICY IN INDIA 
 
 traders and the public, of gain to both producers and consumers, 
 and the highest possible development of the resources of the 
 country." There was one contingency, however, in which the 
 State would be justified in exerting such influence as in any 
 case it might possess, namely, when from either "ignorance, 
 recklessness, or idle rivalry " on the one hand, or on the other 
 from the indifference derived from the security of a Government 
 guarantee, rates were unreasonably or unnecessarily lowered. 
 In concluding the letter, the Government of India stated that, 
 subject to interposition on such grounds, the agents and 
 managers of railways might be left free to fix rates on the 
 principles laid down, but that they should carefully examine 
 their existing rates, both for goods and coaching, especially in 
 the latter, the third-class fares, to see how far they were capable 
 of modification or reduction. Copies of this letter were sent 
 to the Secretary of State, and it was published in the Govern- 
 ment Gazettes and newspapers, as indicating the general policy 
 of the State on the subject. 
 
 It was not expected that this declaration on the part of the 
 Government would suffice to relieve it from further interference 
 in the competition which the rapidly expanding export trade was 
 giving rise to in all directions. Indeed, no sooner was the 
 difficulty between Bombay and Calcutta disposed of or quieted 
 down for a time, than a fresh crop of troubles arose, from the 
 rivalry of the lines serving the North -West Provinces, with 
 Calcutta as a base. Over the administration of the State lines 
 the Government had obviously ample powers, but its position 
 with regard to the guaranteed and assisted companies was very 
 different, and it seemed certain that complications would 
 become more frequent and embarrassing with every extension 
 of the railway system. The prominent difficulty lay in the 
 adjustment of the goods rates of competing trunk lines, in 
 order that no undue advantage should be afforded to one line 
 over that of another — more especially with respect to those in 
 which the State had a definite interest. The Government of
 
 RATES AND FARES 217 
 
 India seemed at length to see a refuge from their troubles in 
 the establishment of a Clearing -House, which should be in- 
 dependent of the Government, have powers not merely to 
 allocate the distribution of the receipts from through traffic, but 
 to settle disputes as to routes for traffic, charges by rival routes, 
 and the simplifying of goods classification. This idea had 
 been already submitted to a Traffic Conference of the 
 principal railways, biit had not been favourably received. The 
 Government decided, however, to refer the proposal to the 
 Secretary of State for India, which was done in August 1885,^ 
 requesting that the opinion of Boards of the different railway 
 companies in England should be invited. The reply to this 
 was sent in February 1886,' the Secretary of State then being 
 Lord Kimberley. The views of the railway companies generally 
 were decidedly opposed to the proposition. They held that it 
 was both premature and unnecessary, and that, moreover, the 
 scope of the functions of the proposed Clearing-House Com- 
 mittee would go far beyond that of the institution under this 
 title at home. The Secretary of State considered that more 
 evidence of its necessity was required before he could press the 
 matter further, but that if its main object was to settle the 
 rates on lines competing for traffic to the sea -board, he 
 thought it was beyond the proper duties of Government to 
 interfere in such matters, otherwise than by the influence it 
 possessed, either under existing contracts or as owners of the 
 State lines. 
 
 The course thus generally indicated by the Secretary of 
 State was one which the Government of India would have 
 willingly adopted, but the exercise of mere " influence " was 
 clearly inadequate for the purpose of determining disputes in 
 which the guaranteed railways were involved, nor had the 
 Government as yet arrived at any general principles under 
 which they could recognise the rights of managers to fix such 
 
 ^ Despatch 120, Railway, of 7th August 1885. 
 - No. 16, Railway, of 25th February 18S6.
 
 2i8 RAILWAY POLICY IN INDIA 
 
 rates and fares as would seem to them to be best suited to the 
 trafific to be dealt with. The necessity for definite action in 
 this direction was brought to the notice of the Government in 
 August 1887, in the form of an able and exhaustive note by 
 Colonel L. Conway-Gordon, R.E., then Director-General of 
 Railways. In this he laid down certain principles for accept- 
 ance, based upon practice in England and elsewhere, with 
 regard to railway rates and fares, reviewing at the same time 
 the position of the Government as to its power of control over 
 the guaranteed and "assisted" railways and those under 
 Native States in this respect. The recommendations made in 
 this note were generally accepted by the Government, and 
 were embodied in a resolution in December 18S7 ;^ but owing 
 to the terms of the contracts with the guaranteed lines, it 
 was not considered possible to make the orders wholly applic- 
 able to other than State railways, or to other lines only so far 
 as was consistent with existing contracts or agreements.' In 
 the remarks preceding the resolution, the Government of 
 India stated that they endorsed, without reservation, the 
 general principles " that managers of railways should be left to 
 fix their own rates and fares ; that the interest of railways and 
 trade generally would be better served by accepting the 
 legitimate consequences of competition ; and that the inter- 
 position of Government would be justified only in cases where 
 companies under the security of a guarantee might fix rates 
 below what would cover the cost of transport with a margin of 
 profit." The terms of the resolution were as follows : — 
 
 («) That the schedule of maxima and minima rates and fares, 
 forming Appendix A to this resolution, shall be adopted 
 on all railways worked directly by the State, and by 
 all other railway administrations, whether their lines be 
 already opened or not, so far as this schedule is not in- 
 consistent with any contracts or agreements previously 
 
 ■* No. 1446, Railway Traffic, dated 12th Dccemljer 1887.
 
 RATES AND FARES 219 
 
 entered into ; and that it shall not be departed fi'om with- 
 out due cause being shown. 
 
 {[)) That in order that the public may have complete infor- 
 mation as to the maxima rates and fares which every 
 railway is authorised to charge, the maxima and minima 
 rates and fares fixed for each railway shall be published 
 in their goods and coaching tariffs, under the signature of 
 a consulting engineer if a private company, and of the 
 Secretary to Government in the case of a State line. 
 
 {c) That unless sufficient reasons can be brought forward 
 against the adoption of this course, the general goods 
 classification now in force on the East Indian Railway 
 shall be accepted for all railways worked directly by the 
 State, and by all other railway administrations, with the 
 same proviso as to interference with existing contracts as 
 under («) above. 
 
 {d) That there shall be no undue preference, either as be- 
 tween two railway companies or between a railway com- 
 pany and a particular person or class of individuals, 
 by making preferential bargains, or by granting to one 
 particular company or person more favourable conditions 
 for the carriage of goods than to the rest of the public at 
 large. 
 
 {e) That the Director-General of Railways be instructed to 
 place himself in communication with the several railway 
 companies, with a view to establishing a Standing Com- 
 mittee of Railway Managers. 
 
 As regards the first clause {a) the Government considered 
 that the principle of fixing maxima rates and fares had been 
 recognised in every English Railway Act, and in legislation in 
 Europe and in America. In India, however, it was not only 
 necessary to follow this course, but on account of the guaran- 
 tee of interest to certain railways, it was also necessary to 
 fix minima rates. It was held that this guarantee would 
 enable a railway to work at a loss to Government without 
 affecting the pecuniary interests of the shareholders in any way,
 
 220 RAILWAY POLICY IN INDIA 
 
 and at the expense of the taxpayer, i.e. when such guaranteed 
 hne was not paying the guaranteed interest, and had no near 
 prospect of so doing. Thus a company, under such circum- 
 stances, might in competitive traffic lower rates below a point 
 which would yield profit, and, consequently, it was necessary 
 that the Government should have the power to enforce a mini- 
 mum " when circumstances have shown them to be necessary " 
 in the financial interests of the State. The restriction of the 
 minimum was, moreover, a salutary check on the action of 
 managers of State railways in competition w'ith each other or 
 with a guaranteed line. On the question of terminal charges, 
 the Government admitted that it was impossible to prescribe 
 any maximum or minimum which would meet all cases, and 
 that they must remain content with reserving power, in case 
 any cause should be shown for interference, of fixing what 
 may appear a fair and reasonable charge. Having fixed the 
 maxima and minima in each class, and established a standard 
 for the classification of goods for State lines, the Government 
 conceded that railway administrations should be allow'ed to 
 alter rates within these limits, and that while abstaining from 
 making preferential bargains or allowing " undue preference," 
 the various railways should give reasonal)le facilities for through 
 traffic, and should aim at serving the country " as if they were 
 under one management," and that a trader should not be 
 forced to base his calculations on as many different scales of 
 rates as there may be railways between the starting-point and 
 destination. The protection of the public in this sense was 
 subsequently effectually carried out in the revision of the Indian 
 Railway Act, to which reference is made in another chapter. 
 On the question whether the charging of a lower or equal rate 
 for a longer than a shorter distance constituted " undue prefer- 
 ence," the Government of India held that it appeared to be 
 as yet unsettled in England, although the weight of legal 
 authority was much opposed to the practice, and that it might 
 be held to be prima facie evidence at least of such preference.
 
 RATES AND FARES 221 
 
 The managers of State railways were required to accept tiiis 
 view, and it was to be urged on the officers of the guaranteed 
 Hnes by the local officials. 
 
 The Schedule which accompanied the resolution above re- 
 ferred to fixed a maximum and minimum rate for goods for 
 each class, but this was illusory, as they were one and the 
 same, or in other words, no latitude was given as to charges 
 within any class, and the only way left to a railway manager 
 was to alter his classification in any case in which he desired 
 to raise or lower his rates. To have permitted this would 
 have been to abandon the policy which, up till then, had been 
 firmly pursued, viz. of endeavouring to bring all the railways 
 into line with a uniform classification. It was eventually 
 admitted that the terms of the Schedule should be altered, 
 that a separate maximum and minimum should be fixed for 
 each class of goods, and that within these limits managers 
 should have power to vary charges without reference to 
 Government, while alteration of classification, when once fixed, 
 should not be made without formal sanction. A revised 
 Schedule was appended to a resolution on the subject,^ which 
 was as follows : — 
 
 
 
 
 Maximum. 
 
 Minimum. 
 
 
 
 
 Pies 2 per maund 
 
 Pies per maund 
 
 
 
 
 per mile. 
 
 per mile. 
 
 Goods Rates — 
 
 
 
 
 
 5th class . 
 
 
 
 I 
 
 -> 
 
 4th ,, 
 
 
 
 t 
 
 
 Srd ,, . 
 
 
 
 § 
 
 ^\ 
 
 2nd „ 
 
 
 
 i 
 
 
 1st ,, 
 
 
 
 ^ 
 
 . 
 
 Coal, edible 
 
 Ri 
 
 ain, and other low 
 
 -priced 
 
 
 staples carried at special rates 
 
 I 
 3 
 
 tV 
 
 This Schedule was to apply to railways on the standard or 
 metre gauge administered or controlled by the Government, 
 and was applicable to both local and through booking. A 
 standard classification to be adopted on these lines was laid 
 
 1 No. 563, Railway Traffic, of i6th July 1891. 
 " One pie may be taken as equal to yS^ of a penny.
 
 222 RAILWAY POLICY IN INDIA 
 
 down, and the guaranteed and other lines invited to accept it, 
 which was done by nearly all. The question of terminal 
 charges remained to be settled, but so far (1893) the only 
 action taken by the Government has been to declare that it 
 could not recognise the right of any railway administration to 
 levy special charges, in addition to the prescribed maxima, on 
 traffic passing through junctions, and that statements showing 
 all terminal charges on every railway were to be periodically 
 submitted for consideration. Previously to this the Indian 
 Railway Act of 1890 had been passed, and this point had been 
 briefly dealt with in sections 45 and 46. The former merely 
 said that "a railway administration may charge reasonable 
 terminals," and in the latter, the determination of what was 
 reasonable was to be referred to the Commissioners — the 
 wording or intent of this section being adopted from the 
 English "Railway and Canal Traffic Act" of 1888. 
 
 The effect of this action of the Government has been to 
 relieve it almost entirely of the burden of settling disputes 
 between the different administrations, and in great measure to 
 reduce the number of cases in which dispute arises. All lines 
 which have accepted the minimum are bound by it in com- 
 petition, and it is only when this is infringed that a reference 
 is or can be made by opposing lines. The result that may be 
 expected from the practically unrestricted rivalry for through 
 traffic which is now allowed, is that rates that are now thought 
 impossibly low will be found on the contrary to be not only 
 possible, but distinctly remunerative under certain conditions, 
 and that ere long the present minimum in the special classes 
 may be reduced still lower. On three of the principal State 
 railways it has been ascertained that the actual cost of carrying 
 a maund one mile on the whole traffic has averaged no more 
 than jy of a pie, while the average sum received has been 1 
 of a pie, thus indicating a' profit of over 100 per cent. 
 
 The introduction of through booking by rail and sea, on 
 the American system, between India and England, has been
 
 RATES AND FARES 223 
 
 effected as yet on one line only, viz. the North-Western Rail- 
 way, having its terminus at Karachi. The first proposals on 
 the subject were made, in 1884, by Sir W. P. Andrew, then 
 chairman of the Sind, Punjab, and Delhi Railway Company. 
 Nothing was done, however, until after this line became the 
 property of the State, and was merged in the system of the 
 North-Western Railway. In 1886 negotiations were entered into 
 by the manager of this line with the Hall hne of steamers, on 
 the basis of giving them through booking from any station on 
 the railway of passengers, parcels, and goods to Europe, and 
 as a set off to purchase from them a certain tonnage of English 
 coal monthly. Difificulties arose mainly on the grounds of the 
 legality and responsibility of the railway in granting through bills 
 of lading ; but these, after considerable delay, were got over, and 
 an agreement was entered into for five years dating from the 
 ist January 1890. So far there has been no similar move- 
 ment at other ports, nor does it seem likely, under the existing 
 conditions of Indian business, and the essentially conservative 
 character of the trading classes, that any initiative will be taken 
 on that side. There are, moreover, substantial differences 
 between India and America, in both the methods of conducting- 
 such operations and in the class of men who would be engaged 
 in them. In India there are but few places where at present 
 firms can be found who could be safely entrusted to ship to 
 Europe to order on a sample or mark, and the crowd of large 
 and small agents at the ports, who are at present a necessary 
 part of the machinery of both the export and import trade, 
 would certainly be likely to oppose an innovation which would 
 probably deprive them of a large share of their present 
 profits. At the same time, it must be allowed that it is these 
 profits of the agent or middleman that represent a considerable 
 factor in Indian prices, and that they would be reduced on a 
 system of through booking. The success of the arrangement 
 on the North-Western Railway has not been so far encourag- 
 ing as regards goods traffic, and at the present time (1893) is
 
 224 RAILWAY POLICY IX INDIA 
 
 practically confined to the occasional transactions of one 
 firm. 
 
 The table given at the end of this chapter affords informa- 
 tion that may be of interest as regards the third or lowest class 
 of passenger traffic on Indian railways, and shows that \vhile 
 the charge per mile is generally 2^ pies, the average cost of 
 haulage, including all charges, on both the standard and the 
 metre gauge is less than one pie per mile. 
 
 [Table
 
 RATES AND FARES 
 
 225 
 
 Table relating to the Lowest Class Passenger Traffic 
 ON Indian Railways, 1892-93. 
 
 Railway. 
 
 Average 
 length 
 of low- 
 est class 
 
 Lowest 
 class 
 fares. 
 
 Average 
 number of 
 lowest class 
 passengers 
 
 Average 
 number 
 of vehi- 
 cles in a 
 
 Average 
 number 
 of pas- 
 sengers 
 in a 
 
 Cost of 
 hauling 
 a pas- 
 senger 
 vehicle 
 
 Cost of 
 hauling 
 a lowest 
 
 class 
 passen- 
 
 
 journey. 
 
 
 in a train. 
 
 train. 
 
 vehicle. 
 
 one mile 
 
 ger one 
 mile. 
 
 
 
 Pies per 
 mile. 
 
 
 
 Full 
 
 
 
 Standard Gauge Lines. 
 
 Miles. 
 
 
 
 load = 
 
 60. 
 
 Pies.l 
 
 Pies.l 
 
 East Indian 
 
 60.00 
 
 2-5 
 
 235-45 
 
 10.77 
 
 21.86 
 
 10.43 
 
 0.48 
 
 Bengal-Nagpur . 
 
 41.80 
 
 2-5 
 
 227.46 
 
 11.90 
 
 19. II 
 
 21.19 
 
 1. 11 
 
 Indian Midland . 
 
 69.88 
 
 2-5 
 
 126.96 
 
 6.26 
 
 20.28 
 
 21.89 
 
 1.08 
 
 North-Western (State). 
 
 42.03 
 
 2.5 
 
 192.40 
 
 8.97 
 
 21.45 
 
 21.29 
 
 0.99 
 
 Oudh and Rahilkund 
 
 
 
 
 
 
 
 
 (State) . 
 
 47-62 
 
 2.5 
 
 230.35 
 
 10.18 
 
 22.63 
 
 13.81 
 
 0.61 
 
 Eastern Bengal (State) 
 
 
 
 
 
 
 
 
 and Bengal Central . 
 
 23.04 
 
 2.5 
 
 165.08 
 
 8.08 
 
 20.43 
 
 15.45 
 
 0.75 
 
 Great Indian Peninsula 
 
 36.87 
 
 2.4 
 
 132.20 
 
 6.34 
 
 20.85 
 
 22.10 
 
 1.06 
 
 Bombay, Baroda, and 
 
 
 
 
 
 
 
 
 Central India . 
 
 17.75 
 
 2.3 
 
 178.12 
 
 6.84 
 
 26.04 
 
 23.31 
 
 0.89 
 
 Madras 
 
 27.30 
 
 1-5 
 
 260.36 
 
 10.41 
 
 25.01 
 
 21.28 
 
 0.85 
 
 The Nizam's Guaran- 
 
 
 
 
 
 
 
 
 teed (State) 
 
 Average . 
 
 54-72 
 
 2.0 
 
 194.54 
 
 10.75 
 
 18.10 
 
 21.22 
 
 1. 17 
 
 42.1 
 
 
 
 
 21.58 
 
 19.20 
 
 0.90 
 
 Metre Gauge Lines. 
 
 
 
 
 
 Full 
 
 
 
 
 
 
 
 
 Ioad = 
 
 
 
 Bengal and North- 
 
 
 
 
 
 32. 
 
 
 
 Western and Tirhoot 
 
 37.78 
 
 1-7 
 
 290.06 
 
 19.21 
 
 15.10 
 
 7.33 
 
 0.48 
 
 Rajputana-Malwa 
 
 48.70 
 
 2.0 
 
 235-08 
 
 13.26 
 
 17.72 
 
 10.15 
 
 0.57 
 
 Southern Mahratta 
 
 41.81 
 
 2-3 
 
 171.91 
 
 9-30 
 
 18.48 
 
 22.55 
 
 1.22 
 
 South Indian 
 
 33-60 
 
 2.0 
 
 246.19 
 
 13-71 
 
 17.96 
 
 15.28 
 
 0.85 
 
 Eastern Bengal (State) 
 
 24.81 
 
 2-5 
 
 157.10 
 
 II.15 
 
 14.09 
 
 12.82 
 
 0.91 
 
 Burma (State) 
 
 35.84 
 
 3-0 
 
 235-71 
 
 16.94 
 
 13.91 
 
 14.29 
 
 1.03 
 
 Bhavnagar-Gondal-Jun- 
 
 
 
 
 
 
 
 
 agarh-Porbandar 
 Average . 
 
 39-09 
 
 2-7 
 
 1S7.3I 
 
 11.97 
 
 15.65 
 
 23.48 
 
 1.50 
 
 37-38 
 
 
 
 
 16.13 
 
 15.13 
 
 0.93 
 
 
 
 ^ One pie at present rate of exchange may be said to be equal to one-twelfth 
 of a penny.
 
 CHAPTER VI 
 
 INDIAN RAILWAY LEGISLATION 
 
 It is intended in this chapter to give a brief account of the 
 legislation that has been carried out from time to time in India 
 for the control of railways, and for defining the responsibilities 
 of railway servants and the public generally. The first enact- 
 ment was applicable to railways in British territory only, and 
 to those only " under Government control," viz. Act xviii. of 
 1854. This practically did little more than give legal effect 
 to regulations such as were then in force on English railways, 
 as for instance the prepayment of fares, tickets, smoking, fraud, 
 and the liability of companies as to luggage and valuable 
 property. The usual clauses as to carriage of goods, trespass, 
 and obstruction were also included, and every railway was 
 required to erect and maintain good and sufficient fences on 
 each side of the line, and failing therein, to be liable to a fine 
 of fifty rupees for every offence, the procedure for the recovery 
 of fines and other penalties being laid down at length. The 
 Act gave no list of " definitions," nor was any procedure laid 
 down as to the inspection of railways, or as regards inquiry 
 into accidents. On the latter point, all that a railway company 
 was required to do was to report the occurrence of accidents 
 to the local Governments, and to submit a return of the same 
 in such form as the Government might deem necessary. The 
 last clause rccjuired that a copy of the Act, of the general 
 regulations, the time-tables, and tariff of charges, should be
 
 INDIAN RAILWAY LEGISLATION 227 
 
 published and exhibited in EngHsh and the vernacular of the 
 district at all stations. 
 
 The first difficulty of any importance in the working of this 
 Act is disclosed in a circular letter ^ from the Government of 
 India to local Governments, in which it is shown that there 
 was a defect in the Act as to the recovery of fines from a railway 
 company, and that an amendment of the Act on this point 
 was necessary. The opinion of local Governments was 
 invited with regard to this, and to any other defects that may 
 have appeared in the working of the Act, and a proposed draft 
 for the amendment of the same accompanied this circular 
 letter. Many suggestions were submitted in reply to this, the 
 substance of the principal of which were referred to in a 
 resolution of Government of India in the Public Works Depart- 
 ment in August 1865.^ The main points which seemed to 
 need attention in a new Act were as follows : — That it should 
 be applicable to all railways of every description, including 
 tramways worked by steam ; that it should apply to railways 
 in foreign as well as British territory. That whereas the old 
 Act made companies liable for loss or injury only when such 
 had been " caused by the gross negligence or misconduct " of 
 their servants, it should be laid down that loss or injury was 
 held sufficient proof of negligence somewhere, and that the 
 companies should be liable in all such cases. More stringency 
 was suggested also as to dealing with accidents, and for pro- 
 cedure in preventing the opening of a railway for traffic before it 
 had been declared fit for such purpose. There was also a strong 
 feeling shown in the correspondence as to the need for more 
 severe measures in dealing with cattle trespass, and the pro- 
 vision of a sufficient number of level crossings. In a brief 
 Act passed in 187 1 (Act xxv. of 1S71), this question of cattle 
 trespass was dealt with among some other minor matters ; 
 
 ^ No. S36-9 of the 3rd March 1S62, from Government of India Public 
 Works Department. 
 
 " Resolution 704-14, Railway, of 19th August 1S65.
 
 228 RAILWAY POLICY IN INDIA 
 
 and previously to this, in 1870, another short Act was passed 
 giving certain requisite definitions for the Act of 1854. An 
 important clause was inserted in the first of these Acts (187 1), 
 in which " the officers for the time being intrusted with the con- 
 trol of a railway " (meaning the principal officer or agent of a 
 company), should make " general rules and regulations for 
 the use, working, and general administration " of a railway, 
 and might vary these from time to time ; but that all such 
 rules, etc., should be submitted for the sanction of the 
 Governor-General in Council, and when sanctioned, published 
 for general information. Breach of such rules rendered persons 
 liable to a fine not exceeding fifty rupees, or in default, to 
 imprisonment which might extend to two months. 
 
 Another resolution of Government on the same subject had 
 been issued in November 1866,^ but meanwhile a draft Bill for 
 a new Act had been sent home for opinion to the Secretary 
 of State (then Lord Cranborne), viz. in March of the same 
 year, who replied commenting on it in December.- He fully 
 agreed in the necessity for a fresh enactment, and in having 
 " one comprehensive digest to refer to, instead of numerous 
 and fragmentary enactments." He held that one essential 
 consideration had been originally overlooked, which was that 
 all the existing railway companies had very extensive rights 
 and privileges secured to them under their contracts, and that 
 legislative interference with such contract rights might, inde- 
 pendently of any question of justice, not improbably subject 
 the Home Government to serious legal liability. One way of 
 meeting this, he suggested, was the insertion of a clause saving 
 existing contracts, but that this would impair the efficiency 
 of the Bill, and afford a large scope for litigation ; yet that it 
 was not easy to suggest any other course, unless the companies 
 would engage to be consenting parties. Another important 
 
 ^ No. 1096, Railway, of 3rd November 1866. 
 
 ^ No. 44, of December 1866, from Secretary of State to Government 
 of India.
 
 INDIAN RAILWAY LEGISLATION 229 
 
 point was that as the new Act was to apply to all Indian 
 railways, whether already sanctioned or hereafter to be con- 
 structed, it might be well to reserve the right to Government 
 of determining the gauge of a line, of having troops and mails 
 conveyed at convenient times, of reducing rates and fares, and 
 of " insisting on specially cheap trains for poor passengers." 
 He also thought it might be possible to adopt such clauses of 
 the English Act regulating the Clearing-House system as would 
 be suitable for India. This despatch was accompanied by the 
 opinions of the Home Boards of the different Indian railway 
 companies on the proposed Bill. The Government of India 
 replied in January 1868,^ sent a fresh draft of the proposed 
 Bill, and explained the grounds for the principal alterations. 
 The new Bill as modified proposed a far more complete and 
 inclusive enactment than that of 1854. There were clauses 
 for the acquisition of land, for mines under railways, for the 
 provision of sufficient crossings, the inspection and opening of 
 new lines, the carriage of troops and of mails, and revision of 
 the procedure for the recovery of fines. The amended Bill 
 was published in India for opinion generally, and in October 
 1869' the Government of India suggested to the Home 
 Government, that as there was likely to be delay in passing 
 the Bill, certain parts of it might be dealt with separately, as 
 being more or less urgently required. No action was, however, 
 taken in this direction, and correspondence continued mainly 
 on the question of the competency of the Government to tra- 
 verse the rights of the companies in any new legislation. 
 
 In the meantime the Government of India had resolved on 
 a new and important departure in the direction of the con- 
 struction and working of State railways, and this materially 
 altered the position of affairs. The result was the issue of a 
 Government resolution in 1871,^ in which this point was 
 
 ^ No. I, Railway, of 3rd January 1868, to Secretary of State for India. 
 
 - No. 109, Railway, dated 12th October 1869, to Secretary of State. 
 
 ^ No. 407, Railway, of 12th March 1S71.
 
 230 RAILWAY POLICY IN INDIA 
 
 particularly referred to. It stated that it was evident that 
 " the law of the land relating to railways should be the same 
 to whomsoever such railways may belong, and that the law 
 which governs the companies' lines must also govern the 
 railways of the State." Thus, such points as to the general 
 liability of railway administration as distinguished from that 
 of their servants, the imposition of fines, and other matters, 
 \Vhich were manifestly inapplicable to the State as the Bill 
 then stood, rendered it necessary to reconsider, and indeed to 
 reconstruct the greater portion of it. The resolution con- 
 templated what was termed " partial legislation " to begin 
 with, in the revision of the old Act, and indicated that this 
 could probably be carried out without difficulty, if it did not 
 injuriously affect the position of the companies under their 
 contracts. It was subsequently arranged that the desired Bill 
 should be drawn in England, in communication with the 
 companies, but it was stated by the Government of India later 
 on,^ that there did not appear to be any pressing need for 
 further legislation, considering that urgent points had been 
 met by the short Acts of 1870 and 187 1, and that it might be 
 as well to wait for further experience in the working of State 
 railways before further consideration of the new Railway Act. 
 It seemed also desirable that, as a matter of policy, any change 
 in railway law should not be promoted by the State just at 
 the time its own railways were about to be opened ; while it 
 still stood as the controlling authority over the guaranteed 
 lines. The subject was consequently allowed to remain in 
 abeyance for some time. 
 
 In 1875 ^" incident occurred on one of the guaranteed 
 lines (the Oude and Rahilkund Railway) which appears to 
 have led to a reopening of the question of further legislation, 
 more especially as the point involved was important. It 
 appears that a village near the railway was set on fire by, it was 
 
 ^ Despatch No. 22, Railway, of 27th January 1S73, to Secretary of 
 State for India.
 
 INDIAN RAILWAY LEGISLATION 231 
 
 alleged, the sparks from a locomotive engine, and the company 
 was sued for compensation by one of the sufferers. Damages 
 were decreed against the company, on the ground that it had 
 no statutable powers to use locomotives on the line, and that, 
 without such powers, it was liable for injury caused by engines 
 in setting fire to adjoining property, or otherwise. The judg- 
 ment was upheld on appeal in India, and the directors of the 
 company contemplated a further appeal to the Privy Council. 
 This was, however, deprecated by the Secretary of State, who 
 said that the point would be dealt with in the new Railway 
 Act. 
 
 In 1876 a new Bill was introduced in the Viceroy's Council 
 by Sir Andrew Clarke, then member in the Council for Public 
 Works, and on this further comments and suggestions were 
 received in due course ; but it was not until the 1 3th March 
 1879 that the Bill became law.^ Its provisions extended to 
 the whole of British India, and to the subjects of the Queen 
 in Native States. It came into force on the ist July 1879, 
 the Acts of 1854, 1867, 1870, and 1871 being repealed, and 
 it was laid down that nothing in the Carriers' Act of 1865 
 should apply to carriers by railway. The term " railway " was, 
 under certain clauses, to cover the case of lines under con- 
 struction, and a "railway administration" was to cover the 
 case of the managers of State lines, lines worked by Native 
 States or by companies. The difficulty above referred to as 
 to the powers to run locomotives, was dealt with in a short 
 clause, making it lawful to use " locomotive engines, or other 
 motive power," with the previous sanction of the Governor- 
 General in Council. Under Clause 5 no railway was to be 
 opened for the public carriage of passengers (not of goods) 
 until the railway administration gave notice of intention to 
 open, until the line had been duly inspected by an officer ap- 
 pointed for the purpose, and until he had reported that the 
 opening could be allowed without danger to the public. 
 
 ^ As Act No. iv. of 1879.
 
 232 RAILWAY POLICY IN INDIA 
 
 Rules were also laid down for reporting accidents, and 
 defining the classes into which they should be divided. The 
 power of a railway administration to frame general rules for 
 working a line was repeated from the old Act of 1854, the 
 sanction of the Governor-General in Council being still re- 
 quired. Under the head of " offences and procedure " the 
 provisions were considerably amplified, and amongst these 
 was a clause providing for the punishment of hackney car- 
 riage and omnibus drivers at railway stations, in case of 
 obstruction or misbehaviour. The Act gave power to the 
 Governor-General in Council to extend it, or any portion of 
 it, to " any tramway worked by steam." 
 
 The above Act was defective as regards the inspection of 
 railways, both before and after opening, and it was found 
 necessary to pass a short Act amending it in this respect in 
 1883 ;^ but as the provisions of this Act were subsequently 
 modified and enlarged in the Act of 1890 ^ (now in force) 
 detailed notice of them may be deferred until later. The 
 principal object of the Act was to empower the Governor- 
 General in Council to take action for the protection of the 
 public against dangers arising from the inefficient main- 
 tenance of a railway, and to appoint officers for the purpose of 
 making periodical inspections with this object. The absence 
 of powers of this nature in other countries, and especially in 
 the United Kingdom, has yet to be recognised by the travel- 
 ling public. The provisions of Sections 5 and 5B of this Act 
 enabled definite rules to be issued for the first time under 
 legal authority in a resolution of Government,^ for the inspec- 
 tion of all railways instead of for State lines only prior to their 
 being opened for passenger traffic. One month's notice was 
 to be given, the inspecting officer was to be supplied at the 
 same time with full information regarding the manner of 
 
 ^ Act iv. of 18S3. - Act ix. of 1S90. 
 
 ^ Circular No. 19, Railwny, of 30th August 1SS3.
 
 INDIAN RAILWAY LEGISLATION 233 
 
 construction of the line, and certificates as follows were required 
 to be given at the time of inspection : — 
 
 1. That no infringement in structures had been made of the 
 
 standard dimensions prescribed for the gauge of the line 
 by the Government. 
 
 2. That no engine or vehicle exceeded the maximum moving 
 
 dimensions prescribed. 
 
 3. That no infringement of such dimensions would be made 
 
 in future Avithout due sanction. 
 
 4. That no more than two engines would ever be allowed at 
 
 one time on any one track of a bridge. 
 
 5. That no alterations in the loads of rolling stock which 
 
 would involve line loads on bridges in excess of those 
 which might from time to time be prescribed for the gauge 
 by the Government would be permitted. 
 
 The resolution concluded by prescribing the nature of the 
 tests on girder bridges. 
 
 The above sketch leads up to the period more closely ante- 
 cedent to the Act of 1890, which, being now in force, 
 deserves to be noticed at some length. The need for further 
 legislation in the shape of a general railway law had been re- 
 cognised before the passing of the Act of 1883, mainly owing 
 to the questions which arose in the interchange of traffic, and 
 in the settlement of the differences which arose on this 
 account. So much had this been felt that some of the lead- 
 ing railways had pressed for a special enactment for arbitra- 
 tion. A draft Bill was eventually prepared, and sent home for 
 approval and criticism to the Secretary of State in November 
 1884, the draft being at the same time freely circulated in 
 India for opinion.^ The principal feature in this first draft 
 was the introduction of clauses allowing for the settlement of 
 disputes between railways by means of arbitration, but besides 
 this, the Bill of 1879 was more or less modified in nearly 
 every clause. The collection of opinion, criticism, and 
 
 ^ Circular No. 1036, Railway Traffic, of 5th November 1S84.
 
 234 RAILWAY POLICY IN INDIA 
 
 suggestion forms some bulky volumes extending over the years 
 1SS5 to 1890. The passing of the "Railway and Canal 
 Traffic Act" of 1888 for the United Kingdom, or rather the 
 discussions and debates on the measure before it had become 
 law, led to a substitution of the machinery of a Commission 
 for that of arbitration in the draft Bill, and to the renewal of 
 discussion on this important alteration. In discussing the 
 draft as it stood in July 1890,^ the Secretary of State appears 
 to have had misgivings as to the applicability of this method 
 under the peculiar conditions of the Indian railway system, 
 and in consideration of this fact that the Government had 
 large powers of control over all the lines, while being the 
 absolute owners of many of them, which would give excep- 
 tional scope for dealing with the action 'of the companies. 
 On this, and on other grounds, the Secretary of State gave a 
 somewhat partial sanction to the proposal. The Home 
 Boards of the guaranteed lines viewed it from the point of its 
 infringing their rights under their contracts, and that from the 
 fact that the Bill provided for a temporary and not a standing 
 tribunal, composed possibly to some extent of Government 
 officials, it was to be feared that questions in dispute might 
 not always be treated in the impartial and judicial way which 
 characterised the proceedings of the English Railway Commis- 
 sion. 
 
 The objections on the above grounds, together with the 
 multifarious proposals and modifications suggested from all 
 sides, were disposed of ultimately by a Select Committee ap- 
 pointed for the purpose by the Government of India, and on 
 the 2ist March 1890 the Bill was passed as Act ix. of 1S90, 
 and was to come into force on ist May of that year. The 
 Act as it stands represents so largely the policy of the Indian 
 Government as regards railways, that it has been considered 
 advisable to give it in extenso in the appendices. Some com- 
 ment may be offered also on its leading features. The first 
 
 ^ See Secretary of State's despatch, No. 75, Railway, 4lh July 1889.
 
 INDIAN RAILWAY LEGISLATION 235 
 
 chapter merely consists of the usual and any necessary defini- 
 tions. The second chapter, on the Inspection of Railways, 
 differs but little from the provisions of the Act of 1879. It 
 will be observed that Sub-section E (a) gives powers to make 
 periodical inspections of any railway ; while Sections 23 and 
 24 of the fourth chapter gives power to close a railway for 
 traffic if it is held to be unsafe, and to forbid the use of roll- 
 ing stock on similar grounds. The third chapter is practically 
 new. It establishes the powers and responsibilities of railway 
 administrations as regards the construction and maintenance 
 of the lines and the provision of accommodation works. The 
 want of enactment on this latter point was much felt by both 
 the railways and the public, more especially as regards road 
 crossings of a railway, either on the level or by over or under 
 bridges. The fourth chapter, relating to the opening of rail- 
 ways for traffic, will be observed to refer only to passenger 
 traffic. For goods traffic a railway administration may open a 
 line on its own responsibility. Section 22 has been amplified 
 by detailed rules for inspections, and for the procedure with 
 regard to them. Sections 23 and 24, which are extremely 
 important for the public safety, have been referred to above. 
 
 The fifth chapter is wholly new. It establishes railway 
 commissions for the settlement of disputes or claims between 
 companies, or between them and the public, and provides for 
 what are known as "traffic facilities.'' The provisions in this 
 chapter are largely copied from "The Railway and Canal 
 Traffic Act" of 1888 of the United Kingdom, the prominent 
 difference being that the Indian Commissions are to be merely 
 temporary tribunals, as already mentioned, which are to be 
 appointed as occasion may require, and only if the Governor- 
 General in Council may think fit. The contrast between this 
 and the standing Railway Commission in England is very 
 marked, and is, moreover, characterised by the anomaly that 
 in the Indian Act the decisions as to the necessity for ap- 
 pointing a Commission, as also the selectioh of its members,
 
 236 RAILWAY POLICY IN INDIA 
 
 is left in tlie hands of the Executive. As the owner of most 
 of the h'nes, and copartner in others, the Government in 
 India could hardly be regarded, from a legal point of view, as 
 able to exercise strictly impartial judgment in these important 
 initiatory steps, more particularly if, as might well happen, the 
 case to be dealt with was one in which the interests of the 
 State were involved. But although this view might be ad- 
 vanced theoretically, it is not likely that there would be the 
 slightest ground for apprehension on this score, should it be 
 found necessary to put in force this portion of the Act. 
 
 The sections of the sixth chapter deal with the working of 
 railways, and confer powers on a railway administration to 
 make general rules with this object, which rules must be 
 sanctioned by the Governor-General in Council. The sec- 
 tions on this head are practically similar to those in the Act 
 of 1S79, but new sections have been added, giving powers to 
 the State to determine arrangements or disputes regarding a 
 common terminus or junction, and the proportion of the cost 
 of the same to be borne by each line. The chapter also pro- 
 vides for the making of working agreements between railways, 
 for the establishment of ferries, for providing roadways for cart 
 traffic on bridges, and even for the construction of approach 
 roads to railway stations, and for charging tolls on these 
 works. A very important section provides that every railway 
 shall submit returns in prescribed forms regarding its capital 
 and revenue transactions, and its traffic. The remaining sec- 
 tions in this chapter refer to the carriage of goods and pas- 
 sengers. Under the former head some of the provisions, such 
 as Section 61, are copied or modified from the English Act of 
 1888. 
 
 Chapter VII. defines the responsibilities of railways as 
 carriers, and it is to be noticed that Section 82 exempts a 
 railway from responsibility for loss or damage in case of con- 
 tracting to carry by sea, under the conditions of the ordinary 
 bill of lading. The eighth chapter prescribes the duties of a
 
 INDIAN RAILWAY LEGISLATION 237 
 
 railway administration in the case of accidents, and under 
 Section 84 detailed rules have been laid down defining the 
 duties of all concerned and the classes of accidents which 
 are to be recognised. Chapter IX. deals with penalties and 
 offences of railway companies, railway servants, and travellers 
 or traders, and it is to be noticed that in Sections 87 to 98 
 the penalties refer to railway companies only, and thus 
 exclude the officials of State lines, whose misdemeanours are, 
 it is to be presumed, to be dealt with by the Government. 
 Chapter X. contains supplementary provisions, in which is to 
 be noticed specially Sections 137 and 138. On the whole 
 the Act appears to be a thoroughly workable and carefully- 
 considered piece of legislation, and so far no material defects 
 or omissions have been noticed. 
 
 The effect of the Act upon the position of the guaranteed 
 companies, in respect to their contracts with the Secretary 
 of State, had been duly considered by the Select Committee 
 which was appointed by the Government of India to advise on 
 the new provisions. They had arrived at the conclusion that 
 any saving clause regarding these contracts should not be in- 
 serted in the Bill. They held that such a clause might 
 bring each company under a different law, and would cer- 
 tainly cause grave inconvenience. " Each company might 
 claim to interpret the Act according to its view of its rights 
 under the contract, and the attempt to do this, even if not 
 successful, might very seriously impair the operation of those 
 parts of the proposed Act which deals with the creation of 
 traffic facilities and the prevention of undue preference." 
 As soon, however, as the Bill became law, four of the com- 
 panies, three of them being the only remaining of the old 
 guaranteed companies, lodged protests with the Secretary of 
 State against the infringements of their rights, and declared 
 (under legal advice) that the passing of the Act, as regards 
 the guaranteed companies, was ultra vires on the part of the 
 Governor-General in Council. Their principal objection was
 
 ,23S RAILWAY POLICY IN INDIA 
 
 to Chapter V. of the Act, which dealt with the subject of 
 traffic faciUties, undue preference, and the institution of a 
 Railway Commission for the settlement of claims or disputes 
 arising from these subjects ; while one company ^ held that the 
 Act was incompatible with the relations between the Secretary 
 of State and the railway companies, and was " an ill-advised 
 attempt to transplant into India legislation not adapted to its 
 conditions." It was held, on the other hand, that the " Rail- 
 way and Canal Traffic Act" of the United Kingdom was 
 compatible with the conditions under which British railway 
 companies existed, as they were merely statutory commercial 
 concerns, " with which the Government have neither privity 
 nor contract." These representations of the companies were 
 forwarded to the Government of India by the Secretary of 
 State,- together with opinions on the same by the legal 
 adviser to the India Office. In replying to this in 1891,^ the 
 Government of India took a firm position. They traversed 
 the view that the Act was ultra vires, and considered that 
 unless it could be shown that very unreasonable interference 
 with the companies' contracts had been enacted, the com- 
 panies had no reason to complain, and that they were satisfied 
 that no such interference could be shown, or would be likely 
 to occur. They deprecated the suggestion that a further 
 reference on the subject should be made to the law officers 
 of the Crown, and believed that the companies would soon 
 be led to the conclusion that the provisions of the Act were 
 no less beneficial to them than to the public. Up to the 
 present (1893) no further action on the general question has 
 been taken on either side. 
 
 The application of the Act to railways belonging to or 
 passing through Native States was a matter of more difficulty 
 and delicacy. In the case of a railway wholly isolated in one 
 
 ^ The Madras Railway Company. 
 
 2 No, 95, Railway, of 28th August 1890, from Secretary of State for 
 India. 
 
 3 Despatch 36, Railway, 29th April 1891, from Government of India.
 
 INDIAN RAILWAY LEGISLATION 239 , 
 
 State, the Government of India had no direct concern, other 
 than as the paramount power, with what was in fact adminis- 
 tration within foreign territory. But when, as in many cases, 
 such hnes formed part of through routes, it became evident 
 that civil and criminal jurisdiction for damage, or offences 
 under the Act, must lie with the Government of India, and 
 more particularly when a line passed through several con- 
 tiguous States. After considerable negotiation, conducted on 
 the part of nearly every Native State in the most friendly and 
 loyal spirit, this end has now been attained. 
 
 The general tenor and perhaps intention of railway legis- 
 lation in India has been to follow more or less closely the 
 example of the United Kingdom in this respect, and there are 
 but few indications, either in the enactments or in the pro- 
 ceedings of the Government, of any desire to go beyond this, 
 or to regard the circumstances and habits of the people as 
 requiring any special treatment, whether of restraint or pro- 
 tection in their dealings with railway administrations. If we 
 bear in mind the position of the Government of India as the 
 owner or potential owner of the whole of the Indian railways, 
 and remember that it holds far closer and more defined 
 relations, with the people than is the case with any European 
 Government, while possessing the complete initiative in legis- 
 lation, we may be surprised that it has not been tempted to 
 venture on exceptional measures. This abstention is to be 
 accounted for, however, in great degree by the fact that the 
 Government is possessed of ample executive power in the 
 control of its railways, and that thus many matters which else- 
 where might need to be supported by legal sanction, are dealt 
 with promptly and easily by a circular or resolution of the 
 Supreme Government. The only direction in which special 
 legislation is noticeable, and that not wholly with reference to 
 railways, is to be found in the Act relating to the acquisition 
 of land for this and other public purposes,^ but in this — a 
 ^ The Land Acquisition Act, 1870.
 
 240 RAILWAY TOLICV IN INDIA 
 
 measure of the greatest benefit to both buyer and seller — the 
 Government is the principal party in the transactions covered 
 by the enactment, and indeed may be regarded in most cases 
 as selling itself in one department and buying in another, the 
 only point to be dealt with being the equitable compensation 
 of the tenants.
 
 CHAPTER VII 
 
 CONCLUSION 
 
 It will have been gathered from the foregoing chapters that 
 railway policy in India has passed through some important 
 changes, and that it is even yet far from having reached 
 finality. To some extent the various phases of policy have 
 been due to the influence of changes in \}:\q. personnel oi the 
 Government, but the main cause is to be found in the serious 
 financial difficulties resulting from a silver standard, which 
 have made it necessary to have recourse to one expedient 
 after another in order to avoid any serious curtailment of 
 operations. The charge of weakness and vacillation which 
 from time to time has been laid at the door of Government 
 is, when all the circumstances have been duly weighed, not 
 only unreasonable, but unjust, and it would be much nearer 
 the truth to credit it with unusual courage and persistence in 
 having pushed on railway communication in the face of 
 embarrassments which might well have daunted others in a 
 similar position. The whole story, and more especially the 
 result so far, afford a striking testimony to the ability, and 
 above all the honesty of purpose of our Anglo-Indian states- 
 men. The motive throughout has been to obtain the much- 
 needed railway extension on terms the least burdensome to 
 the revenues of the Empire, and in avoiding as far as possible 
 the undue relief of the present taxpayer at the expense of his 
 successors. 
 
 R
 
 242 RAILWAY POLICY IN INDIA 
 
 Beginning in 1849, under Lord Dalhousie, with a system 
 of broad gauge lines under guaranteed companies, no material 
 change was made until the end of Lord Lawrence's tenure of 
 office in 1869-70, and when the trunk lines were virtually 
 completed. Then at length, and somewhat tardily, we find 
 that the burden of the contracts with the companies is clearly 
 recognised, and for the next ten years there is an era in 
 which the extension of the railway system is carried out 
 entirely and directly by State agency, and the metre gauge 
 introduced. From 1880, again, and up to the present time, 
 the policy of the Government has been forced by circum- 
 stances to be constantly changing, and in the financing of 
 railways, in the agencies for construction or working, and on 
 the question of gauge and other matters, there has been no 
 evidence of settled aim. The complication which now exists 
 in the meihods of constructing and working Indian railways 
 is not, as already noticed, entirely owing to financial reasons. 
 It is almost as largely referable to the frequent divergence of 
 opinion as to the relative advantages of direct State agency 
 compared with that of companies, coupled with a distinct 
 tendency, both in India and at home, to abandon the for- 
 mer and relieve the Government as far as possible of the 
 commercial part of its administration of the railways, 
 while reserving full powers of general supervision and con- 
 trol. 
 
 The various alterations in railway policy are well exemplified 
 in the list given in the Appendix C, which shows the different 
 agencies that are now employed both for construction and 
 management in the Indian railway system. They may be 
 classed as follows : — 
 
 1. State lines worked by the State. 
 
 2. State lines worked by companies. 
 
 3. Lines constructed and worked by guaranteed companies. 
 
 4. Lines constructed and worked by assisted companies. 
 
 5. Lines owned by Native States and worked by companies.
 
 CONCLUSION 243 
 
 6. Lines owned by Native States and worked by the Govern- 
 
 ment of India. 
 
 7. Lines owned and worked by Native States. 
 
 8. Foreign lines. 
 
 These comprise mileage under four different gauges, viz. the 
 standard gauge of 5^ feet, the metre gauge, the 2| feet gauge, 
 and the 2 feet gauge — the two latter being characterised as 
 '•special gauges"; but the 2h feet gauge is now regularly re- 
 cognised, and standard dimensions for it will be found in the 
 appendices. The total mileage open for traffic at the end of 
 1892 on each gauge was as follows : — 
 
 Miles. 
 
 Standard gauge . . . 10,346 
 
 Metre gauge .... 7,45 1 
 Special gauge . . . . 245 
 
 Total . . . i8,P4: 
 
 And in addition to this there was a small mileage, 53^ miles 
 only, of steam tramways outside municipal limits. The total 
 sum expended on Indian railways up to the end of 1892 was 
 23,408 lakhs of rupees.^ The average cost per mile of the 
 lines on each gauge is given in rupees in the table in the 
 appendices, together with other data relating to them. 
 
 Had it not been for the serious loss by exchange, the 
 Government of India might claim that the Indian railway 
 system is an unparalleled instance of successful national invest- 
 ment, for the average return on the capital expenditure on all 
 the railways in 1892 was 5.43 per cent, but unfortunately, 
 partly owing to the cause above mentioned, this is only the 
 statistical result of working, the net loss to the State in the 
 financial years 1892-93 being about i^S^ lakhs of rupees, 
 which, however, includes interest on lines under construction. 
 Had silver remained at par, the Indian railways would have 
 afforded a magnificent source of revenue to the Government, 
 
 ^ A "lakh" of rupees is 100,000, equivalent at 2s. to the rupee to 
 ;^ 1 0,000.
 
 244 RAILWAY POLICY IN INDIA 
 
 as the loss on exchange alone is estimated in that year to 
 be on 1532" lakhs. The principal cause of loss at present is 
 in the payment of interest at figures varying from 5 to 3 per 
 cent in sterling, on the guarantees, the older guaranteed lines 
 being entitled to payment at an exchange of is. lod., while it 
 has steadily fallen since 1872, and in 1892 the average rate has 
 been but little over is. 46. The sterling interest charges now 
 payable on Indian railways by the Government, which have to be 
 remitted to England, are equivalent to a payment of interest of 
 over 7.6 per cent on the total capital raised, if converted into 
 rupees at par. The load of the guarantee will, however, be 
 greatly lightened within the next twelve years by the expiry of 
 the contracts of two of the most important of the older guar- 
 anteed lines, and in 1907 the last of them, the Madras 
 railway, will fall into the hands of the State. Further relief 
 is to hoped for from the recent currency legislation, and if the 
 exchange value of the rupee can be got to is. 6d. the outlook 
 will be good indeed. 
 
 Were, however, the direct loss to the Government far 
 larger than it is now, it could not be held to be serious for so 
 vast a country, and especially for a railway system which has 
 shown steady and even rapid growth in its traffic and its 
 receipts. But it is not sufficient to estimate the value of 
 Indian railways to the State by their direct results. We must 
 attach an equal if not greater importance to their indirect 
 benefits. Those which are obvious to every one are the in- 
 creased facilities they afford in the general administration of 
 the country, in the greater mobility they give to our military 
 forces, the firmer grasp they allow to our tenure of the country 
 as a whole, and, lastly, in the protection they insure against 
 famine; but they do more than this, they are sweeping away 
 the mental cobwebs of centuries, they are binding together in 
 unity, in sympathy, and in trade, what scarcely more than 
 100 years ago were isolated kingdoms in constant strife and 
 enmity with each other, and slowly but surely spreading peace
 
 CONCLUSION 245 
 
 and prosperity over the land. The value of such results may 
 be soberly said to be incalculable. It must be observed, 
 however, that the considerable figure on the wrong side on the 
 account which the working of the Indian railways as a whole 
 now shows, would have been largely reduced had it not been 
 for large mileage of unproductive lines which it has been 
 necessary to make for military and famine protective reasons, 
 and would have been still further reduced were it not that so 
 large a proportion of the railways has been made over to 
 working companies which share in the net profits. 
 
 In all the contracts and engagements between the Govern- 
 ment and the working companies, the share of the State in 
 surplus profits is carefully guarded, and is always considerable, 
 varying between one-half and four-fifths ; but, nevertheless, the 
 annual sum paid or surrendered to the companies is in the 
 aggregate very large. In the year 1891-92 this amounted, 
 together with contributions to provident funds, to nearly 122 
 lakhs of rupees. It would not, however, be right to view this 
 as being an absolute loss to the State ; indeed, it might be 
 held to be a part only of the additional earnings of the lines 
 due to the zeal and capacity of the officers of the working 
 agencies, to their development of the traffic, and by the 
 exercise of due economy in administration. In this light it 
 may be regarded as a measure, or as some proportion of the 
 measure, of the advantages to be derived from the operation 
 of such lines on more rigorously commercial conditions than 
 could be expected at the hands of State officials. This can 
 clearly be no more than an assumption, which could only be 
 tested in the most crude way ; but judging from such data as 
 bear on the question, it might safely be asserted that if the 
 surrender of profits to the companies rested solely on 
 this ground it could not be fully justified. The really 
 weighty reason in support of this policy must be found 
 in the desire on the part of the Government to free itself from 
 the details and commercial phases of railway working and
 
 246 RAILWAY POLICY IX INDIA 
 
 administration, and more remotely, perhaps, in the recognition 
 of the political advantage of attracting the investments and 
 interests of English capitalists in this direction. 
 
 The share of the State in the net profits of the lines worked 
 by companies, and the whole of the profits from lines belong- 
 ing to and directly worked by the Government, are absorbed 
 in the general revenues of the country. Doubts have been 
 expressed from time to time as to the propriety or equity of 
 this procedure, and it has been urged that the profits from the 
 best paying lines are thus devoted, and at the expense of the 
 trading classes in their vicinity, to the assistance of lines in 
 less favoured localities. The present exigencies of Indian 
 finance would forbid the serious consideration of this question, 
 and the time seems as yet far distant when it can be held to 
 be within the sphere of practical politics ; but were it other- 
 wise, and if it was not necessary to husband and absorb every 
 possible source of income to meet the cost of the general 
 administration of the country, it would not be difficult to 
 establish a strong prima fade case against the present policy. 
 There are instances, such as that of the East Indian and other 
 railways, which are exceptionally profitable concerns, and are 
 paying a large revenue to the State. The trading and travelling 
 public from whom this revenue is derived might contend, and 
 not without reason, that the surplus i^rofits of such railways 
 should not be considered as revenue for general purposes, or 
 to be devoted as it might be to the support of railways else- 
 where, but should be held apart for the promotion of railway 
 extension within the sphere of the lines concerned, or regarded 
 as indicating that rates and fares should be reduced. The 
 first of these courses would be supported by the shareholders 
 in the working companies, but they would not so readily agree 
 to the latter, being equally interested with the Government in 
 obtaining as large profits as possible from the lines they are 
 operating, or, in other words, to take " all that the trade will 
 bear," so long as the rates are within the maxima agreed upon.
 
 CONCLUSION 247 
 
 This question cannot, however, be viewed in India from 
 the same standpoint as that which would be allowable in a 
 country where the railway system has been but little indebted 
 to the State for its existence or support. In India, on the 
 contrary, the railways have been financed almost entirely by 
 the assumption by the State of responsibility from their results 
 as investments ; and thus while the risk is an Imperial one, the 
 disposal of their surplus revenues must be considered, not in 
 the light of local interests, but in that of the Empire as a 
 whole, and as, moreover, a set off against the losses incurred by 
 the State in the early days of such railways. The whole country 
 paid its share for many a year of the interest on the capital of 
 the guaranteed lines, and with only the most remote benefits 
 from them, while the public who then used and profited by 
 them were indebted to the country at large. It would thus 
 seem fair enough that in the days of their prosperity they 
 should contribute towards helping in other directions. The 
 commercial classes and the shareholders must, consequently, be 
 content with the facilities and possibilities which the Indian 
 railways afford them under existing conditions, and bear 
 steadily in mind that without them their investments in the 
 country would either have been impossible or at least far less 
 profitable. 
 
 But whatever may be the views taken of the policy of the 
 Government in this respect, no intention could in any way be 
 imputed to it of having encouraged or approved the adoption 
 of high rates as means of increasing profits and obtaining 
 revenue from this source, even upon lines which have had 
 a complete monopoly of the traffic. On the contrary, as has 
 been shown in the preceding chapters, persistent endeavours 
 are evident from the very beginning towards inducing the 
 railway administrations to find their account in the carriage of 
 large quantities or numbers at low rates, rather than in small 
 quantities at high rates ; and in recommending or enforcing this 
 policy, the Government has been prepared to forego their own
 
 24S RAILWAY POLICY IX INDIA 
 
 share of profits, in the hope that the indirect benefits to trade 
 and to the people would justify the temporary loss. A steady 
 adherence to this policy has resulted in the attainment of rates, 
 apparently profitable, for the carriage of food-grains, minerals, 
 and the lowest class of passengers, which, it is believed, are 
 lower than in any other country. This, it must be borne in 
 mind, has been effected, not on railways of a temporary 
 character, but carried out, as must necessarily be done in a 
 tropical climate, in the most solid and permanent manner, and 
 maintained at the instance of the State, both as to works and 
 rolling stock, with a more rigorous attention to a proper 
 standard of efficiency, and to the safety of the public, than is 
 the case on many of the railways in the United Kingdom. 
 At the same time, it is by no means to be assumed that rates 
 and fares on Indian railways have yet reached their lowest 
 remunerative level ; indeed, there is good reason for the belief, 
 that in the class of goods above mentioned and in the third or 
 lowest class of passenger fares, further reductions are certainly 
 to be expected in the near future, and on sufficiently profitable 
 conditions. The movement in this direction must be neces- 
 sarily slow, however, and in the case of those railways which 
 have been made over to working companies, their copartner- 
 ship with the Government and the responsibility of their agents 
 for showing adequate returns render it necessary to proceed 
 with great caution. 
 
 Upon the question of gauge the action of the Government 
 will have been noticed to have shown less stability of policy 
 than in other directions. This may be accounted for, as in 
 other matters, from the frequent changes in the personnel of 
 the higher officials, and to a less degree from changes in the 
 Home Government. What is fully and apparently finally 
 discussed in one decade, is rediscussed, remodelled, or even 
 wholly altered in the next. This inevitable condition of things 
 in Indian affairs has both its advantages and disadvantages. 
 New men bring new ideas, and change must be always expected
 
 CONCLUSION 249 
 
 in the light of experience ; while India, linked as her fortunes 
 are to the changing phases of a representative Government, 
 has no reason to expect immunity from such influences. As 
 a whole the fluctuations in policy on the gauge question have 
 been distinctly beneficial to the country, and although the 
 alterations of view which were exhibited during the period of 
 the introduction of the metre gauge led to some waste of 
 money, it was in one sense justifiable waste, and in any case 
 was no great penalty for India to pay for a decision of such 
 importance. If, for instance, the standard 5^ feet gauge, 
 which was first adopted on Indian railways by Lord Dalhousie 
 in 1849, had been persistently adhered to throughout the 
 Empire for all further extension, we must have had, for financial 
 reasons, either a very much smaller system than at present, 
 or, with our existing mileage, have found our railways a crushing 
 burden on the revenues of the State. The introduction of the 
 metre gauge by Lord Mayo in 1870 was undoubtedly a move 
 in the right direction, the only doubt that has been expressed 
 being, whether it would not have been wise to have made a 
 still greater reduction from the broad gauge, and to have fixed 
 the narrow gauge at say 2 feet 9 inches or 2 feet 6 inches, 
 the latter being now recognised as one for purely feeder lines. 
 The narrow gauge would then have been so clearly suited only 
 for lines of limited traffic, that mistakes might have been avoided 
 of laying them down in areas where there was good reason for 
 expecting an ultimate development of traffic that would require 
 the standard gauge. However, the metre gauge was a distinct 
 boon to the country. It afforded a sufficient and much needed 
 means of communication to poorly populated and backward 
 districts, it was made more cheaply mile for mile than the 
 broad gauge, and it swept away the bugbear of the evils of 
 break of gauge which threatened to inflict on India a permanent 
 source of embarrassment. 
 
 In admitting the metre gauge as a secondary standard for 
 feeder and subsidiary railways, it was not supposed that the
 
 250 RAILWAY POLICY IN INDIA 
 
 growth of traffic on them would have been so pronounced, 
 nor perhaps was it foreseen that they w^ould, as has been the 
 case, be formed up into large systems, as important competing 
 and through routes. That this has happened, however, does 
 not afford fair ground for the condemnation of the principle 
 they represent, nor can it be rightly asserted, except perhaps 
 in one instance, that these lines have as yet been unable to 
 accommodate the business which has been drawn to them. 
 To have insisted on a uniform gauge of 5 feet 6 inches for the 
 whole Indian railway system would have been a very serious 
 mistake, and the advantages it would have offered were more 
 theoretical than practical. The great bulk of the traffic on 
 railways in India can be amply well accommodated by moving 
 it at slow speeds, while breaks of gauge, especially at compara- 
 tively long intervals, whether for goods or for passengers, is in 
 no respect considered as an inconvenience by the mass of the 
 people, so long as it implies cheapness. This gauge question 
 is the only point on which railway policy in India has been 
 seriously attacked, and no little ability has been exhibited and 
 wasted in the advocacy of uniformity. The character of the 
 earlier discussions was, though often evidently biassed by 
 surroundings, merely academic and certainly disinterested, but 
 some recent revivals of the controversy bear indications of 
 being prompted, or at least coloured, by the aims of competing 
 railways, and the arguments put forward have been duly 
 discounted in India on this ground. But in England the 
 opposition to break of gauge is always sure of an appreciative 
 audience, and there it may be readily conceded it would be an 
 evil incontestably serious ; but there also, unfortunately, the 
 tendency is to test every measure by an insular standard, and 
 to imagine that what is admirably suited to the conditions of 
 the United Kingdom must be equally applicable over the 
 whole Empire. Those who insist on the necessity of a uni- 
 form gauge are perhaps inclined to overlook the fact, that the 
 English railway system offers (and only recently) one of the few
 
 CONCLUSION 251 
 
 exceptions in this respect, and that in applying their arguments 
 to India they either ignore or do not reaUse its enormous extent, 
 the striking differences of conditions between its provinces, and 
 still greater contrast in the habits and aims of the people 
 compared with those of advanced European countries. Their 
 principles may be sound as applied to the circumstances of a 
 small, rich, and populous country, where the value of time and 
 the meaning of comfort and convenience are fully understood, 
 but they are unsound and misleading if sought to be extended 
 to widely different surroundings. Fortunately for India and 
 for Indian finance, this is the view that has been taken by her 
 statesmen. 
 
 In claiming that the Government of India can show a good 
 account of its stewardship in the matter of railway communica- 
 tion, it is not intended that their work in this respect should 
 be considered as approaching completion, on the contrary, the 
 task is still far from being fulfilled, and many thousands of 
 miles, on the three gauges, have yet to be made. The estimate 
 of the Famine Commission of 1880 was that India needed 
 20,000 miles of railway in order to effectually protect the country 
 against famine. This figure has not even yet been reached, 
 and the province of Orissa, where over one million lives were 
 lost in the famine of 1865-66, is still unprovided with a single 
 mile of railway. During this terrible time ships laden with 
 grain lay off the coast unable to land their cargoes, while the 
 people were dying of starvation, and no sufficient help could 
 reach them from the interior. Progress has, in fact, been slow, 
 but the Government has been forced to pursue a cautious 
 policy, and to keep steadily before them the necessity that 
 investment in this direction should not reach such limits as 
 might endanger the credit of the country, or even disturb the 
 financial equilibrium from year to year. Taking the period 
 from 1850 to 1892, it will be found that the yearly average of 
 new lines opened for traffic is no more than 430 miles ; while 
 the average annual expenditure on railways from all sources
 
 252 RAILWAY POLICY IX INDIA 
 
 during this period, has been about 557 lakhs of rupees, repre- 
 senting at a mean exchange of say 12 rupees to the pound 
 sterling a little over 4^^ millions. With a population, which 
 may be taken to have averaged 260 millions, this would 
 mean no more than an addition of one mile yearly for every 
 430,000 persons, and if the present open mileage be taken, of 
 all gauges, we have still only one mile of railway for every 
 16,000 persons. The estimate of the Famine Commission 
 referred only to the needs of the country in the event of the 
 failure of crops in any large area, and represented no more 
 than the framework of the structure. The rest has yet to be 
 filled in. On a moderate computation there are at least 3000 
 miles of trunk lines on the broad gauge which have still to be 
 made, without counting branch lines, and an almost indefinite 
 extension seems possible on the metre and 2h feet gauges. In 
 the North- West Provinces, in Bengal, and in Burma, from four to 
 five millions sterling could be laid out in each on narrow gauge 
 lines, which would with almost absolute certainty show an early 
 return of at least 4 per cent. In fact, if India can only obtain 
 some stability in her currency, and a more certain figure of 
 exchange, the field for the investment of English capital in 
 railways in that country would be second to none in the world. 
 All that would then be needed is that projects should be taken 
 up on sound advice, and carried out with strict economy in 
 the first instance, leaving them to be improved in character 
 and capacity as the traffic increased. It may, moreover, be 
 safely assumed that the policy of the (iovernment will be 
 directed in the future towards definite and hearty encourage- 
 ment of bona-fide private enterprise in Indian railways, and that 
 no schemes will be countenanced that do not show reasonable 
 prospect of being remunerative. 
 
 There is one particular and almost unique feature in the 
 relations of the Government with the railways in India. They 
 are, fortunately, free from the evil influences of political or 
 party jobbery ; even favouritism or bias from this source is
 
 CONCLUSION 253 
 
 entirely absent, and the machinery of " wire-puUing" and 
 " log-rolling," which seems destined to accompany the adop- 
 tion of any important measure under representative govern- 
 ments, have no existence. The fate of a policy or a project is 
 decided on no other ground than that of the best interests of 
 the State at large, and the history of Indian railways is thus 
 happily free from any trace of the imputations of bad faith or 
 official dishonesty which in some countries have disgraced 
 and embittered the connection between the Government and 
 private enterprise. The reins have been held, whether in high 
 or in low places, by men who could justly lay claim to a high 
 standard of ability and rectitude, and who, both in spirit and 
 in action, have deserved, if they have not earned, the respect 
 of the English investor. The charges not unfrequently made 
 against the Government of dilatoriness and vacillation in the 
 disposal of the proposals of promoters have doubtless had 
 some foundation, but it should be borne in mind that this 
 defect is largely and yet inevitably traceable to the system of 
 dual control by the Home and Indian Governments, and also 
 to the fact that the only motive which actuates official discus- 
 sions is the anxious and honourable desire to arrive at deci- 
 sions based on a complete investigation of the claims of all 
 concerned. The alleged, and perhaps in some cases the real, 
 evils of the State-ownership of railways, of which such highly 
 coloured pictures have been drawn, have happily as yet not 
 been exhibited in India, nor does it seem in any way likely 
 that they will be in the future. It has there been fully 
 established that under certain conditions this system can be 
 adopted without involving elements which are either unde- 
 sirable or impolitic, and so as to offer equal benefits both to 
 the State and to the investor. 
 
 The one serious defect of direct State action, whether in 
 the construction or the working of railways, lies in the almost 
 inevitable tendency to over-centralisation — a defect indeed 
 which, more or less, is to be observed in every form of
 
 254 RAILWAY rOLICY IN INDIA 
 
 Government administration. It depresses the zeal of local 
 officers, weakens their sense of responsibility and the habit of 
 prompt decision, and involves inordinate and often serious 
 delay in the despatch of public business. But tolerable as 
 this may be in the ordinary work of civil government, its effects 
 are far more injurious in the conduct of such essentially com- 
 mercial undertakings as railways. At the outset of State rail- 
 way operations in India this evil was certainly very pronounced, 
 and it was some time before it was recognised that the State 
 official should be endowed with no less powers than those 
 who were conducting the companies' lines. To the public 
 the effects of centralisation on State lines were equally objec- 
 tionable, and it would not be far wrong to refer the reversion 
 from purely State agency to the combination of this with the 
 agency of companies to this cause. Of late years a great deal 
 has been done to remove this objection to State railway 
 administration, and at present, indeed, the Government rail- 
 way manager is probably under less restrictions than the 
 agent of a railway company. There is, nevertheless, a linger- 
 ing suspicion among the commercial classes that the State 
 lines are worked with less sympathy for the trader than is the 
 case on the railways worked by companies — that there is less 
 desire to stimulate traffic, or to meet business competition 
 half-way. Placed as the Government officer is on the safe 
 pedestal of permanent service, and secure of this and of a 
 pension whatever may be the financial results of the line he is 
 operating, there may be some sort of ground for comparing 
 him unfavourably with his confrere in the service of a com- 
 pany, but on the whole the difference must be more theo- 
 retical than practical, and could scarcely amount to any 
 sensible effect on individual profits. 
 
 One point of importance must be noted before concluding 
 this chapter. The Government of India has been urged for 
 many years past to extend the construction of railways with 
 the main object of finding fresh markets for the English
 
 CONCLUSION 255 
 
 manufacturer. This must be held to imply that the Indian tax- 
 payer is to incur all the risk, and that the manufacturer is to reap 
 all the profit. It may also mean that the progress of manufac- 
 tures in India, which is now steadily increasing, will be more 
 or less retarded by the introduction of cheap European pro- 
 ducts. But it cannot be expected that the Government of 
 India should be prepared to further railway extension on such 
 grounds. As the custodian of the finances of India, and of 
 the interests of its people, it is bound rather to look for new 
 outlets for Indian produce than for new markets for English 
 manufactures. Their duty is to administer the resources of 
 the country for its benefit, and to regard the advantages to 
 other countries as of strictly secondary importance. In short, 
 if the expansion of English trade is to be dependent on a more 
 rapid or reckless extension of the Indian railway system, the 
 money should be found by those who expect to profit by 
 it. If we are to allow our Indian Empire to become a happy 
 hunting-ground for the iron and cotton manufacturers of Eng- 
 land, we must abandon the aims and principles which have 
 guided us hitherto in governing that great possession, and be 
 prepared to admit that we are no longer worthy to hold the 
 great trust that has been bequeathed to us by our prede- 
 cessors.
 
 APPENDIX A 
 
 STANDARD DIMENSIONS 
 TO BE OBSERVED ON RAILWAYS IN INDIA 
 
 5 feet 6 incJies Gauge 
 
 Note. — The maximum, minimum, and fixed dimensions and loads given 
 in this schedule may not be infringed under any circumstances without the 
 special sanction of the Government of India. Where it is proposed to 
 execute any work or to procure bridge girders, station machinery, rolling 
 stock, or other railway material which will infringe these dimensions or 
 loads, the sanction of the Government of India is to be obtained before 
 such work is commenced or order given. 
 
 I. FORMATION 
 
 Ft. In. 
 
 Single Line — 
 
 Minimum width of formation — 
 (i) In embankment . . . 20 o 
 
 (2) \x\ c\i\X\x\'g {excluding side drains') . 18 o 
 
 Double Line — 
 
 Miniminn width of formation — 
 
 (3) In embankment . . . 34 o 
 
 (4) In cutting (exc/teding side drains) . 32 o 
 
 (5) Standard distance centre to centre of tracks 
 
 (out of stations) . . . .140
 
 APPENDIX A 257 
 
 Curves — 
 
 Maximum angle of curvature — 
 
 (6) In ordinary country . . . 3° o' 
 
 (rad. = 1910 ft.) 
 
 (7) In difficult country . . . 6° o' 
 
 (rad. =955 ft.) 
 N.B. — The angle of curvature is taken as the 
 angle at the centre subtended by an arc of one 
 hundred feet in length. Thus the radius for a 
 one degree curve is 5729 -578 feet. 
 
 The maximum angle of curvature should inih' 
 be 2vorked to in special cases where the adoption 
 of an easier curve would be impracticable or in- 
 volve considerable e.xtra expense. Under very 
 exceptional circumstances, where it may appear 
 necessary that this rule should be relaxed, the 
 matter shoitld be referred to the Government of 
 India for orders. 
 
 The maximum angles of curvature given above 
 do not apply to curves in station yards. 
 
 II. BALLAST AND PERMANENT WAY 
 
 Ballast — ft. in. 
 
 (8) Minimum width of ballast at rail level . 1 1 o 
 
 (9) Minimum depth of ballast below sleepers . o 8 
 
 N.B. — These minimum dimensions may be re- 
 la.xed in the case of a line being opened to traffic 
 before the banks have settled. 
 
 Sleepers — 
 
 Minimum dimensions for timber cross 
 sleepers — 
 
 ( I o) Length . . . .96 
 
 (11) Breadth . . . .09 
 
 (12) Depth . . . .05 
 
 Sq. in. 
 
 (13) Minimum area in cross sections . . 50 
 
 No. 
 
 (14) Minimum number of cross sleepers per mile 1760 
 
 N.B. — On bridges where the cross sleepers rest 
 directly on longitudinal girders, the sleepers are to 
 be spaced not more than 2 feet 6 inches apart, centre 
 to centre, and are to be not less than 6 inches deep 
 exclusive of any notching which may be required on 
 the under side to allow for the cover plates, camber, 
 etc.
 
 't. 
 
 In. 
 
 O 
 
 4 
 
 O 
 
 ^f 
 
 258 RAILWAY POLICY IN INDIA 
 
 Rails — 
 
 (15) I\Iaximum clearance of guard rail for points 
 
 and crossings .... 
 
 (16) Minimum clearance of guard rail for points 
 
 and crossings .... 
 
 (17) Minimum clearance of guard rail for curves 
 
 and level crossings . . .02 
 
 N.B. — The maximum clearance for curves and 
 
 level crossings will vary according to the radius of 
 
 curve. 
 
 (18) Minimum depth of space for wheel flange, 
 
 from rail level . . . . o \\ 
 
 III. FIXED STRUCTURES— IN STATIONS 
 
 {See also Diagram No. i) 
 Platforms — 
 
 (19) Standard horizontal distance from centre of 
 
 track to face of platform wall or nosing 
 (if any) . . . . .56 
 
 A^.i?.— The upper edge of the nosing or coping 
 to platform wall is to be finished to form an arris 
 without any rounding or chamfer. 
 
 If the platform be on a curve, the horizontal 
 distance from centre of adjacent track is to be in- 
 creased as follows : — 
 
 Yox a curve of 8 degrees {"jibft. rad. ) allovv 5^ in. extra 
 6 .. {955fi-'>'ad.) ,, 4 in. ,, 
 4 .. {1432ft- ''ad.) ,, s^in. ,, 
 2 ,, (zSdsff.rad.) ,, i^in. ,, 
 and for other curves in proportion. 
 
 (.20) Standard height above rail level for passenger 
 
 platforms . . . • 3 ^ 
 
 (21) Alternative height above rail level for 
 
 passenger platforms at minor stations . i o 
 
 N.B. — Where passenger platforms are provided 
 their height above rail level must be either 3 feet o 
 inches or i foot o inches as specified above, no 
 other height being permissible. At places where 
 passengers are intended to get into or out from 
 trains, but at which no platform is provided, a piece 
 of ground for a length of not less than 800 feet, and 
 for a width of not less than 20 feet from outer rail, 
 is to be brought to a smooth even surface at rail 
 level, and properly finished with gravel or similar 
 material.
 
 so-. 
 
 DIAGRAM No. I.
 
 i
 
 APPENDIX A 259 
 
 (22) Standard height above rail level for goods, ft. In. 
 
 carriage, and horse landing platforms . 3 6 
 
 N.B. — The ends of all platforms must be ramped, 
 the slope being not steeper than i in 6. 
 
 Buildings — 
 
 (23) Minimum horizontal distance of any build- 
 
 ing from the edge of a passenger platform 30 o 
 
 N.B. — For an island platform, where it would be 
 undesirable to allow the full width here specified, a 
 plan showing the arrangements proposed is to be 
 submitted to the Government of India for special 
 sanction. 
 
 (24) Minimum horizontal distance from centre of 
 
 track to any structure in the vicinity of a 
 passenger platform (but not 07i a plat- 
 form), within a height of 12 feet from 
 rail level . . . .90 
 
 N.B. — This rule does not apply to point levers 
 between tracks, to water cranes, or to loading 
 gauges. [See items A^os. 38, 45, and j-j.) 
 
 For e.xtra allowance on sharp curves, see item 
 No. 19. 
 
 (25) Minimum horizontal distance from centre of 
 
 track to any structure not in the vicinity 
 of a passenger platform, from platform 
 level, if any, or from i foot above rail 
 level if there be no platform, to a height 
 of 1 1 feet 6 inches above rail level . 7 o 
 
 N.B. — Under the last entry, coal or any material 
 stacked by the side of any track is to be considered <- 
 
 a structure in the sense in which the word is here 
 used. 
 
 A projecting overhanging roof is permissible in 
 the case of a goods shed on a siding, if such roof 
 extends over the centre of a track at a height of not 
 less than 14 feet 6 inches above rail level ; or if it 
 does not infringe the outline of the figure for mini- 
 mum fixed structure out of stations. [Sec Diagram 
 No. 2.) 
 
 For extra allowance on sharp curves, see item 
 No. ig. 
 
 Pillars, Lamps, etc. — 
 
 (26) Minimum horizontal distance from edge of 
 platform to pillars, columns, lamps, or
 
 26o RAILWAY POLICY IN INDIA 
 
 similar isolated structures within a height p-r. in. 
 of 12 feet from rail level . . .60 
 
 Roofs, Over-bridges, etc. — 
 
 (27) Minimum height above rail level, at centre 
 
 of track, of tie-rods or underside of any 
 continuous roof or covering in passenger 
 stations . . . . .200 
 
 (28) Minimum height above rail level at centre 
 
 of track for passenger foot-bridges cross- 
 ing the line in stations . . . 186 
 
 (29) Minimum height above rail level for tele- 
 
 graph wires crossing the line, or above 
 surface of road where carried over roads 
 within the boundary of a station . . 20 o 
 
 IV. FIXED STRUCTURES— OUT OF STATIONS 
 
 {See also Diagfam No. 2) 
 
 Buildings, etc. — 
 
 (30) Minimum horizontal distance from centre of 
 track to any structure, out of stations, 
 from I foot above rail level to a height 
 of 1 1 feet 6 inches above rail level. {See 
 Diagram No. 2) . . . 7 o 
 
 N.B. — Under this entry any material stacked by 
 the side of the line is to be considered a structure 
 in the sense in which the word is here used. 
 
 Where the line is on a curve the horizontal dis- 
 tance of a fixed structure from the centre of adjacent 
 track is to be increased as follows : — 
 For a curve of 8 degrees (7i6ff. rad. ) allow 5J in. e.xtra 
 6 ,, (95jA '''«"'•) .. 4 in- .. 
 4 ,, {1.132ft. rad.) ,, 2iin. „ 
 2 ,, [2863 f I. rad.) ,, 1 1 in. ,, 
 and for other curves in proportion. 
 
 Over-bridges, etc, — 
 
 (31) Minimum height above rail level at centre 
 
 of track for over-bridges out of stations . 146
 
 DIAGRAM NO. 2.
 
 ^ 
 
 STANDARD DIMENSIONS OUT OF STATIONS. 
 
 
 
 
 T " 1 
 
 u 
 
 
 
 _ 
 
 r\
 
 APPENDIX A 261 
 
 (32) Minimum height above rail level for tele- ft. In. 
 
 graph wires crossing the line, or above 
 surface of road where carried over roads 
 at level crossings . . . 20 o 
 
 N.B. — The minimum horizontal distance, from 
 the centre Hne of nearest track, at which a telegraph 
 post may be erected, is the total height of the post 
 plus 7 feet. Also, where the line is in cutting, a 
 telegraph post erected on the berm must be at a dis- 
 tance from the edge of the cutting of not less than 
 the total height of the post. 
 
 Tunnels — 
 
 iZZ) For minimum dimensions, see Diagram No. 3. 
 
 V. STATION YARDS 
 
 Spacing of Track — 
 
 (34) Minimum distance centre to centre of tracks 15 6 
 Points and Crossings — 
 
 The folloiving {items Nos. 35, 36, a7id 2)7) are 
 recommended for general use, and are to 
 be adopted on all State railivays : — 
 
 (35) Mini7nuni radius of curve . . 800 o 
 
 ^ I in 6 
 
 (36) Standard crossings . <| i in 8|^ 
 
 ( I in 12 
 
 )' 120 
 
 (37) Standard lengt/is for tongue rails ■ \ 
 
 (38) Minimum horizontal distance from centre of 
 
 track to point handle, indicator, or any 
 part of point apparatus above rail level . 7 o 
 
 N.B. — A point handle may not, in any position, 
 be within 7 feet of the centre line of nearest track ; a 
 clear distance of 7 feet is also to be preserved from 
 centre of nearest track to any part of the point ap- 
 paratus, fi.xed or movable, above rail level. An 
 arrangement involving the placing of a point handle 
 between tracksshould be avoided as faras practicable ; 
 but where this arrangement is adopted, the point 
 handle must work parallel with the rails, not at right 
 angles thereto. 
 
 Accommodation — 
 
 (39) Minimum length for passenger platform (if 
 
 provided) . . . . 600 o
 
 262 RAILWAY POLICY IN INDIA 
 
 (40) IMinimum clear available length of through fx. In. 
 siding at any roadside station which may 
 be used as a crossing station . . 1600 o 
 
 N.B. — The " available length " of siding (whether 
 the line be curved or straight) terminates where the 
 distance between the centre line of the siding and the 
 centre line of an adjacent track begins to be less than 
 14 feet. 
 
 On any section of a railway having a ruling gradi- 
 ent heavier than i in 100, the length of platform and 
 sidings may (with the sanction of the Government of 
 India) be reduced to such an extent as may appear 
 advisable. But for each such special case the 
 sanction of Government is to be obtained to the pro- 
 posals before work is commenced. 
 
 VL STATION MACHINERY 
 
 Water Tanks — 
 
 Minimum height for bottom of tank above 
 rail level at -wafer cohtnui : — 
 
 (41) For watering engines . . . 20 o 
 
 (42) For washing out engines . . 30 o 
 
 (43) Minimum distance from centre of track to 
 
 face of tank house when adjacent to a 
 passenger platfonn . . . 30 o 
 
 C. ft. 
 
 (44) Minimum capacity of tank at any station . 1000 o 
 
 Water Cranes — 
 
 (45) Minimum distance in the clear from centre 
 
 of track to nearest part of water column Ft. in. 
 
 from I foot above rail level . . 70 
 
 (46) Standard height above rail level for discharge 
 
 orifice of water crane jib . . 120 
 
 (47) Standard internal diameter for piping from 
 
 tank to water crane . . .08 
 
 ■/V.B. — This diameter should be increased where 
 the same pipe serves two or more water columns 
 likely to be used at the same time. 
 
 Ash-pits, etc. — 
 
 (48) Minimum clear length at bottom for ash-pits 
 
 in station yards . . . 60 o
 
 APPENDIX A 263 
 
 (49) Standard average depth for ash-pits in ft. In. 
 
 station yards . . . • 3 o 
 
 (50) Standard depth for examining pits for car- 
 
 riages and waggons . . .26 
 Engine Running Sheds — 
 
 Minimum width for running sheds inside in 
 the clear : — 
 
 (51) For two hues of rail . . • 45 ° 
 
 (52) For one line of rail . . . 28 o 
 
 (53) Minimum distance centre to centre of tracks 
 
 in running sheds . . . 170 
 Running shed doorways : — 
 
 (54) Minimum width . . . 1 5 <^ 
 
 (55) Minimum height, if flat at top . 14 6 
 
 (56) Minimum height to crown of arch, if 
 
 with semicircular arch . . 160 
 
 (57) Standard average depth for wash-out pits in 
 
 running sheds . . . .26 
 
 (58) Standard average depth for repairing pits in 
 
 running sheds . . . .20 
 
 Turntables — 
 
 (59) Minimum diameter for engine turntables . 500 
 
 (60) Minimum diameter for carriage or waggon 
 
 turntables . . . . 18 o 
 
 Traversers — 
 
 (61) Minimum length for carriage or waggon 
 
 traversers .... 
 
 Weigh-bridges — 
 
 (62) Minimum length for weigh-bridges for 
 
 ordinary stock . . . 180 
 
 (63) Minimum weighing power^ for weigh-bridges Tons. 
 
 for ordinary stock . . . 24 
 
 Vn. LOCGOMOTIVE ENGINES. 
 Maximum moving Dimensions — 
 
 (64) The maximum moving dimensions laid down 
 
 for carriages and waggons apply also to 
 locomotive engines. 
 
 18
 
 264 
 
 RAILWAY POLICY IN INDIA 
 
 Weight on a Pair of Wheels — tons. 
 
 (65) Maximum under any circumstances . 15 
 
 (66) Maximum per foot of diameter . . 3.75 
 
 Weight per Foot run of Wheel base — 
 
 (67) Maximum for either engine or tender sepa- 
 
 rately, in the case of tender engines . . 3.0 
 
 (68) ALiximum for tank engines . . . 4.0 
 
 Weight per Foot run over Buffers — 
 
 (69) Maximum for engine and tender together, in 
 
 the case of tender engines . . 1.625 
 
 (70) Maximum for tank engines . . 1-875 
 Total gross Weight — 
 
 (71) Maximum for engine and tender together in 
 
 the case of tender engines . . 86 
 
 (72) Maximum for tank engines . . 60 
 
 A'.^. — The weights given above are the maximum 
 permissible under any circumstances, with engine in . 
 worlcing order and full load of fuel and water. 
 
 In exceptional cases, engines of weights in excess 
 of the specification given above may be used under 
 the special sanction of the Government of India. 
 Such special sanction must be obtained before the 
 engines are ordered, and the application for sanction 
 must be accompanied by a diagram of the proposed 
 engine, giving full particulars, and by a certificate 
 by the Government Inspector that the bridges on the 
 section over which the engines are intended to work 
 are of sufficient strength. 
 
 VIII. CARRIAGES AND WAGGONS. 
 
 Maximum moving Dimensions. {See also Diagram 
 No. i)-- 
 Maximum width : — 
 
 (73) From rail level to a height of 4 feet 
 
 4 inches above rail level 
 
 (74) From a height of 4 feet 4 inches above 
 
 rail level to a height of i i feet 6 
 
 inches above rail level 
 N.B. — These heights are to be taken with the 
 vehicle unloaded and buffer centres at the maximum 
 height of 3 feet 7^ inches from rail level. For further 
 details see Diagram No. i. 
 
 Ft. 
 10
 
 APPENDIX A 265 
 
 Maximum height from rail level : — Ft. In. 
 
 (75) For unloaded vehicle at centre . 136 
 
 (76) For unloaded vehicle at sides . . 116 
 Loading gauge for goods : — ■ 
 
 {77) Maximum width . . . 108 
 
 (78) Maximum height from rail level at 
 
 centre . . . .137 
 
 (79) Maximum height from rail level at sides 1 1 7 
 
 Maximum gross Weight — Tons. 
 
 (80) On any pair of wheels . . . 12 
 
 (81) Per foot run over buffers . . . 1.2 
 
 N.B. — The weights given above are the maximum 
 permissible under any circumstances, with the 
 vehicle fully loaded. The weight on a pair of 
 wheels includes the weight of the wheels, a.xles, 
 axle-boxes, and springs. 
 
 Wheel Base — 
 
 (82) Maximum rigid wheel base for passenger pt. in. 
 
 vehicles . . . . . 16 o 
 
 (83) Maximum rigid wheel base for goods 
 
 vehicles . . . .120 
 
 Buffers and Couplings — 
 
 (84) Standard distance apart for centres of buffers 6 5 
 
 (85) Maximum height above rail level for centres 
 
 of buffers for unloaded vehicles . . 3 7 2^ 
 
 (86) Minimum height above rail level for centres 
 
 of buffers for fully loaded vehicles . 3 42' 
 
 Height for Floors — 
 
 (87) Maximum height above rail level for floor of 
 
 any vehicle unloaded . . .44 
 
 (88) Minimum height above rail level for floor 
 
 of passenger vehicle fully loaded . 4 i 
 
 (89) Minimum height above rail level for floor of 
 
 goods vehicle fully loaded . . 3 8-J 
 
 Wheels and Axles — 
 
 (90) Standard wheel gauge, or distance apart for 
 
 all wheel flanges . . -53
 
 266 RAILWAY POLICY IN INDIA 
 
 (91) Standard diameter on the tread for new ft. In. 
 
 wheels . . . . ■ o 7 
 
 (92) Maximum projection for flange of worn tyre 
 
 below rail level . . . . ° ^f 
 
 (93) Minimum thickness on tread for tyres for 
 
 passenger stock when worn . . o 1 1- 
 
 (94) Minimum thickness on tread for tyres for 
 
 goods stock when worn . . .01 
 
 Roof Lamps — 
 
 (95) Standard diameter inside in the clear for 
 
 rings of carriage roof lamps . . o 8|- 
 
 (96) Standard diameter for carriage roof lamps 
 
 at level of ring . . . .08 
 
 STANDARD DIMENSIONS 
 TO BE OBSERVED ON RAILWAYS IN INDIA 
 
 Metre Gauge 
 
 ]\'OTE. — The maximum, minimum, and fixed dimensions and loads given 
 in this schedule may not be infringed under any circumstances without the 
 special sanction of the Government of India. Where it is proposed to 
 execute any work or to procure bridge girders, station machinery, rolling 
 stock, or other railway material which will infringe these dimensions or 
 loads, the sanction of the Government of India is to be obtained before 
 such work is commenced or order given. 
 
 I. FORMATION 
 Single Line — 
 
 Minimum width of formation — Ft. in. 
 
 (i) In embankment . . . 160 
 
 (2) \r\ cunm^^ {excluding side drains) . 14 o 
 
 Double Line — 
 
 Minimum width of formation — 
 
 (3) In embankment . . . 28 o
 
 APPENDIX A 267 
 
 Ft. In. 
 
 (4) In cutting (ex-duding side drains) . 26 o 
 
 (5) Standard distance centre to centre of tracks 
 
 (out of stations) . . . 120 
 
 Curves — 
 
 Maximum angle "of curvature — 
 
 (6) In ordinary country . . . 5° o' 
 
 (rad. = 1 146 ft.) 
 
 (7) In difficult country . . . 10° o' 
 
 (rad. = 573 ft.) 
 N.B. — ^The angle of curvature is taken as the 
 angle at the centre subtended by an arc of 100 feet 
 in length. Thus the radius for a one degree curve 
 is 5729.578 feet. 
 
 The maximum angle of curvature should only he 
 ivorked to in special cases where the adoption of an 
 easier curve would be impracticable or involve con- 
 siderable e.xtra expense. Under very exceptional 
 circumstances, where it may appear necessary that 
 this rule should be relaxed, the matter should be re- 
 ferred to the Government of India for orders. 
 
 The maximum angles of curvature given above 
 do not apply to curves in station yards. 
 
 II. BALLAST AND PERMANENT WAY. 
 
 Ballast — Ft. Li. 
 
 (8) Minimum width of ballast at rail level . 7 6 
 
 (9) Minimum depth of ballast below sleepers o 6 
 
 N.B. — These minimum dimensions may be re- 
 laxed in the case of a line being opened to traffic 
 before the banks have settled. 
 
 Sleepers — 
 
 Minimum dimensions for timber cross sleepers — 
 
 (10) Length . . .60 
 
 (11) Breadth . . . .07 
 
 (12) Depth . . . .041 
 
 Sq. in. 
 
 (13) Minimum area in cross section . . 36 
 
 No. 
 
 (14) Minimum number of cross sleepers per mile 1936 
 
 N.B. — On bridges where the cross sleepers rest 
 directly on longitudinal girders, the sleepers are to 
 be spaced not more than i ft. 6 in. apart, centre to 
 centre, and are to be not less than 5 inches deep ex- 
 clusive of any notching which may be required on 
 the underside to allow for the cover plates, camber, etc.
 
 268 RAILWAY POLICY IN INDIA 
 
 Rails — Ft. In. 
 
 (15) Maximum clearance of guard rail for points 
 
 and crossings . . . . o 1 1 
 
 (16) Minimum clearance of guard rail for points 
 
 and crossings . . . • 01^- 
 
 (17) Minimum clearance of guard rail for curves 
 
 and level crossings . . .02 
 
 N.B. — The viaximum clearance for curves and 
 
 level crossings will vary according to the radius of 
 
 curve. 
 
 (18) Minimum depth of space for wheel flange, 
 
 from rail level . . . . o l| 
 
 III. FIXED STRUCTURES— IN STATIONS 
 
 (ySce also Diag7'ain No. i.) 
 Platforms — 
 
 (19) Standard horizontal distance from centre of 
 
 track to face of platform wall or nosing (if 
 any) . . . . ■ 4 5 
 
 N.B. — The upper edge of the nosing or coping 
 to platform wall is to be finished to form an arris, 
 without any rounding or chamfer. 
 
 If the platform be on a curve, the horizontal dis- 
 tance from centre of adjacent track is to be increased 
 as follows : — 
 For a curve of 8 degrees {ji6ff. rad. ) allow 5 J in. extra 
 
 6 ,, {955 ff- >-'^d.) ,, 4 in. ,, 
 ,, ,, 4 ,, {r4j2ft. rad.) ,, 2^ in. ,, 
 
 2 ,, [sSOjfi. rad.) ,, i| in. ,, 
 and for other curves in proportion. 
 
 (20) Standard height above rail level for pas- 
 
 senger platforms . . .20 
 
 (21) Alternative height above rail level for pas- 
 
 senger platforms at minor stations . i o 
 
 N.B. — Where passenger platforms are provided 
 their height above rail level must be either 2 ft. o in. 
 or I ft. o in. as specified above, no other height 
 being permissible. At places where passengers are 
 intended to get into or out from trains, but at which 
 a platform is not provided, a piece of ground for a 
 length of not less than 800 feet and for a width of 
 not less than 20 feet from outer rail, is to be brought 
 to a smooth even surface at rail level, and properly 
 finished with gravel or similar material.
 
 DIAGRAM No. 1. 
 
 IGft. 7 in. from centre of 
 track nearest platform 
 
 i II 
 
 _| i_
 
 METRE GAUGE. 
 
 STANDARD DIMENSIONS IN STATIONS. 
 
 
 !ls
 
 APPENDIX A 269 
 
 Ft. In. 
 
 (22) Standard height above rail level for goods, 
 
 carriage, and horse landing platforms . 2 3 
 
 A^.B. — The ends of all platforms must be ramped, 
 the slope being not steeper than i in 6. 
 
 Buildings — 
 
 (23) Minimum horizontal distance of any building 
 
 from the edge of a /aj-j'£';/^^r platform . 30 o 
 
 A'.Z>. — For an island platform, where it would be 
 undesirable to allow the full width here specified, a 
 plan showing the arrangements proposed to be sub- 
 mitted to the Government of India for special 
 sanction. 
 
 (24) Minimum horizontal distance from centre of 
 
 track to any structure in the vicinity of a 
 passe/i^er platform (but not on a platform), 
 within a height of i 2 feet from rail level. 
 (See Diagram No. i ) . . 100 
 
 N.B. — This rule does not apply to point levers 
 between tracks, to water cranes, or to loading gauges. 
 {See items Nos. 38, 45, and 77. ) 
 
 For extra allowance on sharp curves, see item 
 No. 19. 
 
 (25) Minimum horizontal distance from centre of 
 
 track to any structure not in the vicinity of 
 a passenger platform, from platform level, if 
 any, or from i foot above rail level if there 
 be no platform, to a height of 1 1 ft. 6 in. 
 abo^•e rail level . . . .70 
 
 A^.B. — -Under the last entry, coal or any material 
 stacked by the side of any track is to be considered 
 a structure in the sense in which the word is here 
 used. 
 
 A projecting overhanging roof is permissible in 
 the case of a goods shed on a siding, if such roof 
 extends over the centre of the track at a height of 
 not less than 14 ft. 6 in. above rail level ; or if 
 it does not infringe the outline of. the figure for 
 minimum fi.xed structure out of stations. 
 
 (See Diagram No. 2.) 
 
 For extra allowance on sharp curves, see item 
 No. ig. 
 
 Pillars, La^nips, etc.— 
 
 (26) Minimum horizontal distance from edge of
 
 270 RAILWAY POLICY IX INDIA 
 
 platform to pillars, columns, lamps, or yt. In. 
 
 similar isolated structures within a height 
 of 1 2 feet from rail level . . 60 
 
 Roofs, Over-bridges, etc.— 
 
 (27) Minimum height above rail level, at centre 
 
 of track, of tie-rods or underside of any 
 continuous roof or covering in passe7iger 
 stations . . . . 20 o 
 
 (28) Minimum height above rail level at centre 
 
 of track for passenger foot-bridges cross- 
 ing the line in stations . . . 186 
 
 (29) Minimum height above rail level for tele- 
 
 graph wires crossing the line, or above 
 surface of road where carried over roads 
 within the boundary of a station . 20 o 
 
 IV. FIXED STRUCTURES— OUT OF STATIONS 
 (^Sce also Diagram lYo. 2.) 
 
 Buildings, etc. — 
 
 (30) Minimum horizontal distance from centre of 
 
 track to any structure, except a girder 
 carrying the track, and not designed for 
 
 5 ft. 6 in. gauge loads, out of stations, 
 from I foot above rail level to a height of 
 1 1 ft. 6 in. above rail level. {See Diagram 
 
 No. 2.) . . . . . 70 
 
 (30 a) Minimum horizontal distance from centre of 
 track from i foot above rail level, to 10 ft. 
 
 6 in. above rail level,, to any part of a 
 girder carrying the track, and not designed 
 
 for 5 ft. 6 in. gauge loads . . 6 6 
 
 Minimum horizontal distance from centre of 
 track from rail le\el to i foot above rail 
 level . . . . . .45 
 
 N.B. — Under this entry any material stacked by 
 the side of the line is to be considered a structure in 
 the sense in which the word is here used.
 
 DIAGRAM No. 2.
 
 flETRE GAUGE. 
 
 STANDARD DIMENSIONS OUT OF STATIONS.
 
 APPENDIX A 271 
 
 Where the line is on a curve the horizontal dis- 
 tance of a fixed structure from the centre of adjacent 
 track is to be increased as follows : — 
 For a curve of 8 degrees (7/6/?. rad. ) allows! in. extra 
 
 6 ,, [955 ft- rad.) ,, 4 in. ,, 
 >> >> 4 •> {1432ft. fad.) ,, 2^ in. ,, 
 
 2 ,, (2S6J ft. rad.) ,, i|in. ,, 
 and for other curves in proportion. 
 
 Over-bridges, etc. — Ft. i^. 
 
 (31) Minimum height above rail level a centre of 
 
 track for over-bridges out of stations . 14 6 
 
 (31 a) Minimum height above rail level at centre of 
 track for overhead bracing of girders carry- 
 ing the track, and not designed for 5 ft. 
 6 in. gauge loads . . . 126 
 
 (32) ?>Iinimum height above rail level for tele- 
 
 graph wires crossing the line, or above 
 
 surface of road where carried over roads 
 
 at level crossings . . . 20 o 
 
 JV.B. — The minimum horizontal distance, from 
 
 the centre line of nearest track, at which a telegraph 
 
 post may be erected, is the total height of the post, 
 
 plus seven feet. Also, where the line is in cutting, 
 
 a telegraph post erected on the berm must be at a 
 
 distance from the edge of the cutting of not less than 
 
 the total height of the post. 
 
 TUNNEL.S 
 
 (33) For minimum dimensions. {See Diagram 
 
 No. 3.) 
 
 V. STATION YARDS 
 
 Spacing of Tracks ^ — 
 
 i 
 
 (34) Minimum distance of tracks centre to 
 
 centre — 
 
 Track nearest platform to next track . 167 
 
 All other tracks in station yards . 156 
 
 ^ When platforms are built on opposite sides of the line their distance 
 
 apart face to face must be : — 
 
 26 ft. 6 in. if there are two tracks between, 
 42 ft. O in. if there are three tracks between, 
 57 ft. 6 in. if there zx&foiir tracks between, 
 
 and so on, adding 15 ft. 6 in. for each additional track.
 
 •■ — • 
 
 
 Ft. 
 
 In. 
 
 
 
 478 
 
 
 
 in 6 
 
 
 
 
 in Si 
 
 
 
 
 in 12 
 
 
 
 
 
 / 
 
 9 
 
 
 
 
 1 
 
 12 
 
 
 
 272 RAILWAY POLICY IN INDIA 
 
 Points and Crossings — 
 
 The folloiuing {items Nos. 35, 36, and 11^ 
 are rccoi/ii/iendcd for general tcse, and are 
 to be adopted on all State railways 
 
 (35) Mini nut ni radius of curve 
 
 (36) Standard crossings . < i 
 
 ( I 
 
 (37) Standard lengths for tongue rails 
 
 (38) Minimum horizontal distance from centre of 
 
 track to point handle, indicator, or any part 
 
 of point apparatus above rail level . 7 
 
 N.B. — A point handle may not, in any position, 
 be within 7 feet of the centre hne of nearest track ; a 
 clear distance of 7 feet is also to be preserved from 
 centre of nearest track to any part of the point ap- 
 paratus, fixed or movable, above rail level. An 
 arrangement involving the placing of a point handle 
 between tracks should be avoided as far as prac- 
 ticable ; but where this arrangement is adopted, the 
 point handle must work parallel with the rails, not at 
 right angles thereto. 
 
 ACCO]MMODATION — 
 
 (39) Minimum length for passenger platform (if 
 
 provided) .... 600 
 
 (40) Minimum clear a\ailable length of through 
 
 siding at any roadside station which may 
 
 be used as a crossing station . . 1600 
 
 N.B. — The " available length " of siding (whether 
 the line be curved or straight) terminates where the 
 distance between the centre line of the siding and the 
 centre line of an adjacent track begins to be less than 
 14 feet. 
 
 On any section of a railway having a ruling 
 gradient heavier than i in 100, the length of platform 
 and sidings may (with the sanction of the C}ovcrn- 
 ment of India) be reduced to such an extent as may 
 appear advisable. But for each such special case the 
 sanction of Government is to be obtained to the pro- 
 posals before work is commenced.
 
 APPENDIX A 273 
 
 VI. STATION MACHINERY 
 
 Ft. In. 
 
 Water Tanks — 
 
 Minimum height for bottom of tank above 
 rail level at water column : — 
 
 (41) For watering engines . . . 20 o 
 
 (42) For washing out engines . . 30 o 
 
 (43) Minimum distance from centre of track to 
 
 face of tankhouse when adjacent to a pas- 
 senger platfomi . . . . 30 o 
 
 c. ft. 
 
 (44) Minimum capacity of tank at any station . 1000 
 
 Water Cranes — 
 
 (45) Minimum distance in the clear from centre 
 
 of track to nearest part of water column Ft. in. 
 
 from I foot aboye rail level . . 7 o 
 
 (46) Standard height above rail level for discharge 
 
 orifice of water crane jib . . 12 o 
 
 (47) Standard internal diameter for piping ^from 
 
 tank to water crane . . .06 
 
 N. B. — This diameter should be increased where 
 the same pipe serves two or more water columns 
 likely to be used at the same time. 
 
 Ash-pits, etc. — 
 
 (48) Minimum clear length at bottom for ash-pits 
 
 in station yards . . . . 50 o 
 
 (49) Standard average depth for ash-pits in sta- 
 
 tion yards . . . • 3 6 
 
 (50) Standard depth for examining pits for car- 
 
 riages and waggons . . • 3 ° 
 
 Engine Running Sheds — 
 
 Minimum width for running sheds inside in 
 the clear : — 
 
 (51) For two lines of rail . . . 45 o 
 
 (52) For one line of rail . . • 28 o 
 
 (53) Minimum distance centre to centre of tracks 
 
 in running sheds . . • 170 
 
 T
 
 274 
 
 RAILWAY POLICY IN INDIA 
 
 Running shed doorways : — Ft. In. 
 
 (54) Minimum width . . . 15 o 
 
 (55) Minimum height, if flat at top. . 14 6 
 
 (56) Minimum height to crown of arch, if 
 
 with semicircular arch . . 160 
 
 (57) Standard average depth for wash-out pits in 
 
 running sheds . . . .30 
 
 (58) Standard average depth for repairing pits in 
 
 running sheds . . . • 3 ^ 
 
 Turntables — 
 
 (59) Minimum diameter for engine turntables . 36 o 
 
 (60) Minimum diameter for carriage or waggon 
 
 turntables . . . . 14 o 
 
 Traversers— 
 
 (51) Minimum length for carriage or waggon tra- 
 versers . . . . . 14 o 
 Weigh-bridges — 
 
 (62) Minimum length for weigh-bridges for ordi- 
 
 nary stock . . . . 14 o 
 
 (63) Minimum weighing power for weigh-bridges xon,. 
 
 for ordinary stock . . . 12 
 
 VII. LOCOMOTIVE ENGINES 
 
 Maximum moving Dimensions — 
 
 (64) The maximum moving dimensions laid down 
 
 for carriages and waggons apply also to 
 locomotive engines. {See also Diagram 
 i\o. I.) 
 
 Weight on a pair of Wheels — 
 
 (65) Maximum under any circumstances 
 
 (66) Maximum per foot of diameter 
 Weight per Foot run of Wheel Base — 
 
 (67) Maximum for either engine or tender sepa- 
 
 rately, in the case of tender engines 
 
 (68) Maximum for tank engines 
 
 2.67 
 
 2.67
 
 APPENDIX A 275 
 
 Weight per Foot run over Buffers — tons. 
 
 (69) Maximum for engine and tender together, 
 
 in the case of tender engines . . 1.125 
 
 (70) Maximum for tank engines . . 1.333 
 Total gross Weight — 
 
 (71) Maximum for engine and tender together, in 
 
 the case of tender engines . . 46 
 
 (72) Maximum for tank engines . .32 
 
 N.B. — The weights given above are the maximum 
 permissible under any circumstances, with engine in 
 working order and full load of fuel and water. 
 
 In exceptional cases, engines of weights in excess 
 of the specification given above may be used under 
 the special sanction of the Government of India. 
 Such special sanction must be obtained before the 
 engines are ordered, and the application for sanction 
 must be accompanied by a diagram of the proposed 
 engine giving full particulars, and by a certificate by 
 the Government inspector that the bridges on the 
 section over which the engines are intended to work 
 are of sufficient strength. 
 
 VIII. CARRIAGES AND WAGGONS 
 
 Maximum moving Dimensions. {See also Diagram No. i.)— 
 
 Maximum width : — 
 
 {73) From rail level to a height of 2 ft. 9 in. pt. in 
 
 above rail level . . .82 
 
 (74) From a height of 2 ft. 9 in. above rail 
 
 level to a height of 10 feet above rail 
 
 level . . . . .86 
 
 N.B. — These heights are to be taken with the 
 
 vehicle unloaded and buffer centres at the maximum 
 
 height of I ft. II in. from rail level. For further 
 
 details see Diagram No. i. 
 
 Maximum height from rail level : — 
 
 (75) For unloaded vehicle at centre . . 11 o 
 
 (76) For unloaded vehicle at sides . . 100 
 Loading gauge for goods : — 
 
 {77) Maximum width . . .88 
 
 (78) Maximum height from rail level at centre 1 1 i 
 
 (79) Maximum height from rail level at sides . 10 i
 
 276 RAILWAY POLICY IN INDIA 
 
 Maximum gross Weight — tons. 
 
 (80) On any pair of wheels ... 6 
 
 (81) Per foot run over buffers ... -8 
 
 N.B. — The weights given above are the maximum 
 permissible under any circumstances, with the vehicle 
 fully loaded. The weight on a pair of wheels in- 
 cludes the weight of the wheels, axles, axle-boxes, 
 and springs. 
 
 Wheel Base — 
 
 (82) Maximum rigid wheel base for passenger Ft. in. 
 
 vehicles . . . .120 
 
 (83) Maximum rigid wheel base for goods 
 
 vehicles . . . . 10 o 
 
 I5UFFERS AND COUPLINGS — 
 
 (84) Standard distance apart from centres of 
 
 buffers ..... — 
 
 (85) Maximum height above rail level for centres 
 
 of buffers for unloaded vehicles . . i i i 
 
 (86) Minimum height above rail level for centres 
 
 of buffers for fully loaded vehicles . i 9 
 
 Height for Floors — 
 
 (87) Maximum height above rail level for floor of 
 
 any vehicle unloaded (with 2 ft. 4 in. 
 
 wheels) . . . . .30 
 
 (88) Minimum height above rail level for floor of 
 
 passenger vehicle fully loaded (with 2 ft. 
 
 o in. wheels) . . . . - Si 
 
 (89) Minimum height above rail level for floor of 
 
 goods vehicle fully loaded (with 2 ft. o in. 
 wheels) . . . . .25 
 
 Wheels and Axles — 
 
 (90) Standard wheel gauge, or distance apart for 
 
 all wheel flanges ... 3 o| 
 
 (91) Standard diameter on the tread for new 
 
 wheels . . . . .24 
 
 (92) Maximum projection for flange of worn tyre 
 
 below rail level . . . . o i| 
 
 (93) Minimum thickness on tread for tyres for 
 
 passenger stock when worn . . 10
 
 APPENDIX A 277 
 
 Ft. In. 
 
 (94) Minimum thickness on tread for tyres for 
 
 goods stock when worn . . . o o|^ 
 
 Roof Lamps — 
 
 (95) Standard diameter inside in the clear for 
 
 rings of carriage roof lamps . . 08^ 
 
 (96) Standard diameter for carriage roof lamps at 
 
 level of ring . . . .08 
 
 PROPOSED STANDARD DIMENSIONS 
 TO BE OBSERVED ON RAILWAYS IN INDIA 
 
 2 feet 6 inches Gauge 
 
 Note. — The maximum, minimum, and fixed dimensions and loads given 
 in this schedule may not be infringed under any circumstances without the 
 special sanction of the Government of India. Where it is proposed to execute 
 any work or to procure bridge girders, station machinery, rolling stock, or other 
 railway material which will infringe these dimensions or loads, the sanction of 
 the Government of India is to be obtained before such work is commenced or 
 order given. 
 
 I. FORMATION 
 
 Single Line — 
 
 Minimum width of formation — ■ 
 (i) In embankment . . . 120 
 
 (2) In cutting {excluding side f in earth 12 o 
 
 drains) \ in rock i i o 
 
 Double Line — 
 
 Minimum width of formation — 
 
 (3) In embankment . . . 23 o 
 
 (4) \xi cwX.'ixxi'g {excluding side drains) . 23 o 
 
 (5) Standard distance centre to centre of tracks 
 
 (out of stations) . . . .120
 
 278 RAILWAY TOLICY IN INDIA 
 
 Curves — 
 
 Maximum angle of curvature — 
 (6) In ordinary country . . . 12° o' 
 
 (rad. =477^ feet.) 
 
 N.B. — The angle of curvature is taken as the 
 angle at the centre subtended by an arc of one 
 hundred feet in length. Thus the radius for a one 
 degree curve is 5729.578 feet. 
 
 The maximum angle of curvature should only be 
 worked to in special cases where the adoption of an 
 easier curve would be impracticable or involve con- 
 siderable extra expense. Under very exceptional 
 circumstances, where it may appear necessary that 
 this rule should be relaxed, the matter should be 
 referred to the Government of India for orders. 
 
 The maximum angles of curvature given above do 
 not apply to curves in station yards. 
 
 II. BALLAST AND PERMANENT WAY 
 
 Ft. In. 
 
 Ballast — 
 
 (i) Minimum width of ballast at rail level . 6 o 
 
 (2) Minimum depth of ballast below sleepers . o 6 
 
 A^. B. — These minimum dimensions may be relaxed 
 in the case of a line being opened to traffic before 
 the banks have settled. 
 
 Sleepers — 
 
 Minimum dimensions for timber cross 
 sleepers — - 
 
 (3) Length . . . . 5 o 
 
 (4) Breadth . . . .06 
 
 (5) Depth . . . .04 
 
 No. 
 
 (6) Minimum number of cross sleepers per mile 1936 
 
 N.B. — On bridges where the cross sleepers rest 
 directly on longitudinal girders, the sleepers are to 
 be spaced not more than i foot 6 inches apart, centre 
 to centre. 
 
 Rails — Ft. in. 
 
 (7) Maximum clearance of guard rail for points 
 
 and crossings . . . . ° ^ s' 
 
 (8) Minimum clearance of guard rail for points 
 
 and crossings . . . . o ^i
 
 APPENDIX A 279 
 
 (9) Minimum clearance of guard rail for cui-ves Ft. In. 
 
 and level crossings . . . o ^i 
 
 N.B. — The inaximian clearance for curves and 
 level crossings will vary according to the radius of 
 
 (10) Minimum depth of space for wheel flange, 
 from rail level .... 
 
 III. FIXED STRUCTURES— IN STATIONS 
 
 Platforms — 
 
 (i) No platform walls ; earth covered with cinders 
 or gravel to be made up to rail level 
 Buildings — 
 
 (2) Minimum horizontal distance of any build- 
 
 ing from centre of track at passenger 
 platform ... . : 
 
 (3) Minimum horizontal distance from centre of 
 
 track to any structure in the vicinity of a 
 passenger ^XaXiorm. (but not o?i a platform), 
 within a height of 10 feet from rail level 
 N.B. — This rule does not apply to point levers 
 
 between tracks, to water cranes, or to loading 
 
 gauges. 
 
 (4) Minimum horizontal distance from centre of 
 
 track to any structure not in the vicinity 
 
 of a passetiger platform, from platform 
 
 level, if any, or from i foot above rail 
 
 level if there be no platform, to a height 
 
 of 9 feet 6 inches above rail level 
 
 N.B. — Under the last entry, coal or any material 
 
 stacked by the side of any track is to be considered 
 
 a structure in the sense in which the word is here 
 
 used. 
 
 A projecting overhanging roof is permissible in 
 the case of a goods shed on a siding, if such roof ex- 
 tends over the centre of the track at a height of not 
 less than 12 feet above rail level. 
 
 Pillars, Lamps, etc. — 
 
 (5) Minimum horizontal distance from centre 
 
 of track to pillars, columns, lamps, or 
 similar isolated structures on platforms .
 
 28o RAILWAY POLICY IN INDIA 
 
 Roofs, Over-bridges, etc. — ft. In 
 
 (6) Minimum height above rail level, for 5 feet 
 
 from centre of track, of tie-rods or under- 
 side of any continuous roof or covering in 
 passenger stations . . . 166 
 
 (7) Minimum height above rail level for 5 feet 
 
 from centre of track for passenger foot- 
 bridges crossing the line in stations . 166 
 
 (8) Minimum height above rail level for tele- 
 
 graph wires crossing the line, or above 
 surface of road where carried over roads 
 within the boundary of a station . . 20 o 
 
 IV. FIXED STRUCTURES— OUT OF STATIONS 
 
 Buildings, etc. — 
 
 (i) Minimum horizontal distance from centre of 
 
 track to any structure, out of stations, from 
 
 I foot above rail level to a height of 9 feet 
 
 6 inches above rail level. {See Diagram 
 
 No. 2) . . . . .60 
 
 N.B. — Under this entry any material stacked by 
 the side of the line is to be considered a structure in 
 the sense in which the word is here used. 
 
 Where the line is on a curve the horizontal dis- 
 tance of a fixed structure from the centre of adjacent 
 track is to be increased as follows : — 
 For a curve of 1 2 degrees ( 4'j 7 )jft. rca?. ) alio w 8 i n . extra 
 8 ,, ( jibft.rad.) ,, s^in. ,, 
 ,, 4 ,, {i4j2ft.rad.) ,, zhin. ,, 
 
 2 ,, (2S6j/t.9-ad.) ,, i|in. ,, 
 and for other curves in proportion. 
 
 Over-bridges, etc. — 
 
 (2) Minimum height above rail level for 5 feet 
 
 from centre of track for over-bridges out 
 
 of stations . . . .120 
 
 (3) Minimum height above rail level for tele- 
 
 graph wires crossing the line, or above 
 surface of road where carried over roads 
 at level crossings . . . 20 o 
 
 N.B. — The minimum horizontal distance, from the
 
 APPENDIX A 281 
 
 centre line of nearest track, at which a telegraph post 
 may be erected, is the total height of the post plus 
 seven feet. Also, where the line is in cutting, a tele- 
 graph post erected on the berm must be at a distance 
 from the edge of the cutting of not less than the total 
 height of the post. 
 
 Tunnels — 
 
 V. STATION YARDS 
 
 Ft. In. 
 
 Spacing of Tracks — 
 
 (i) Minimum distance of tracks centre to centre — 
 
 Track nearest platform to next track . 140 
 
 All other tracks in station yards . . 120 
 
 Points and Crossings — 
 
 (2) Minimum radius of curve . . . 175 o 
 
 I I in 6 
 
 (3) Standard crossings . 1 " si 
 
 (4) Standard length for tongue rails . . 70 
 
 (5) Minimum horizontal distance from centre of 
 
 track to point handle, indicator, or any 
 part of point apparatus above rail level . 7 o 
 
 N.B. — A point handle may not, in any position, 
 be within seven feet of the centre line of nearest 
 track ; a clear distance of seven feet is also to be 
 preserved from centre of nearest track to any part of 
 the point apparatus, fixed or movable, above rail 
 level. An arrangement involving the placing of a 
 point handle between tracks should be avoided as 
 far as practicable ; but where this arrangement is 
 adopted, the point handle must work parallel with 
 the rails, not at right angles thereto. 
 
 Accommodation — 
 
 (6) Minimum clear available length of through 
 
 siding at any roadside station which may 
 be used as a crossing station . . 600 o 
 
 N.B. — The " available length " of siding (whether 
 the line be curved or straight) terminates where the 
 distance between the centre line of the siding and the 
 centre line of an adjacent track begins to be less than 
 10 feet. 
 
 The length of sidings may (with the sanction of 
 the Government of India) be reduced to such an 
 e.xtent as may appear advisable. But for each such 
 special case the sanction of Government is to be 
 obtained to the proposals before work is commenced.
 
 Ft. In. 
 
 14 
 
 
 
 20 
 
 
 
 9 
 
 
 
 C. ft. 
 
 
 500 
 
 
 
 282 RAILWAY POLICY IN INDIA 
 
 VL STATION MACHINERY 
 
 Water Tanks — 
 
 Minimum height for bottom of tank above 
 rail level at water cohimn : — 
 (i) For watering engines . 
 
 (2) For washing out engines 
 
 (3) Minimum distance from centre of track to 
 
 face of tank house 
 
 (4) Minimum capacity of tank at any station 
 Water Cranes — 
 
 (5) Minimum distance in the clear from centre Ft. in. 
 
 of track to nearest part of water column 
 
 from I foot above rail level . . 60 
 
 (6) Standard height above rail level for dis- 
 
 charge orifice of water crane jib . . 10 6 
 
 (7) Standard internal diameter for piping from 
 
 tank to water crane . . .04 
 
 Ash-pits, etc. — - 
 
 (8) Minimum clear length at bottom for ash-pits 
 
 in station yards . , . .150 
 
 (9) Standard average depth for ash-pits in station 
 
 yards . . . . .30 
 
 (10) Standard depth for examining pits for 
 
 carriages and waggons . . .30 
 
 Engine Running Sheds — • 
 
 Minimum width for running sheds inside in 
 the clear : — 
 
 (11) For two lines of rail . . . 30 o 
 
 (12) For one line of rail . . . 18 o 
 
 (13) Minimum distance centre to centre of tracks 
 
 in running sheds . . . 120 
 Running shed doorways : — 
 
 (14) Minimum width . . .90 
 
 (15) Minimum height, if flat at top . . 11 o 
 
 (16) Minimum height to crown of arch, if 
 
 with semicircular arch . . 130
 
 APPENDIX A 283 
 
 Ft. In. 
 
 (17) Standard average depth for wash-out pits in 
 
 running sheds . . . .30 
 
 (18) Standard average depth for repairing pits in 
 
 running sheds . . . .30 
 
 Turntables — 
 
 (19) Minimum diameter for engine turntables . 150 
 
 (20) Minimum diameter for carriage or waggon 
 
 turntables . . . . 12 o 
 
 Traversers — 
 
 (21) Minimum length for cai'riage or waggon 
 
 traversers . . . .120 
 
 Weigh-bridges — 
 
 (22) Minimum length for weigh-bridges for 
 
 ordinary stock . . . .120 
 
 (23) Minimum weighing power for weigh-bridges Tons. 
 
 for ordinary stock . . .10 
 
 VII. LOCOMOTIVE ENGINES 
 
 Maximum moving Dimensions — 
 
 (i) The maximum moving dimensions Laid down 
 for carriages and waggons apply also to 
 locomotive engines 
 
 Weight on a Pair of Wheels — 
 
 (2) Maximum under any circumstances . 6 
 
 (3) Maximum per foot of diameter . . 2-25 
 
 Weight per Foot run of Wheel Base — 
 
 (4) Maximum for either engine or tender 
 
 separately, in the case of tender engines . 1-5 
 
 (5) Maximum for tank engines . . .2 
 
 Weight per Foot run over Buffers — 
 
 (6) Maximum for engine and tender together, in 
 
 the case of tender engines . . 0-875 
 
 (7) Ma.ximum for tank engines . . i
 
 284 RAILWAY POLICY IN INDIA 
 
 Total gross Weight — tons. 
 
 (8) Maximum for engine and tender together, in 
 
 the case of tender engines . . 30 
 
 (9) Maximum for tank engines . . . 18 
 
 N.B. — The weights given above are the maximum 
 permissible under any circumstances with engine in 
 working order and full load of fuel and water. 
 
 In exceptional cases, engines of weights in excess 
 of the specification given above may be used under 
 the special sanction of the Government of India. 
 Such special sanction must be obtained before the 
 engines are ordered, and the application for sanction 
 must be accompanied by a diagram of the proposed 
 engine giving full particulars, and by a certificate by 
 the Government Inspector that the bridges on the 
 section over which the engines are intended to work 
 are of sufficient strength. 
 
 VIII. CARRIAGES AND WAGGONS 
 
 Ft. In. 
 
 Maximum moving Dimensions — 
 Maximum width : — 
 (i) From rail level to a height of 2 feet 2 
 
 inches above rail level . . 76 
 
 (2) From a height of 2 feet 9 inches above 
 
 rail level to a height of i o feet above 
 
 rail level . . . .80 
 
 N.B. — These heights are to be taken with the 
 vehicle unloaded and buffer centres at the maximum 
 height of I foot 11 inches from rail level. For 
 further details see Diagram No. i. 
 
 Maximum height from rail level : — 
 
 (3) For unloaded vehicle at centre . 100 
 
 (4) For unloaded vehicle at sides . . 9 3 
 Loading gauge for goods in open tracks : — 
 
 (5) Maximum width . . .82 
 
 (6) Maximum height from rail level at 
 
 centre . . . -83 
 
 (7) Maximum height from rail level at sides 7 3 
 Maximum gross Weight — Tons. 
 
 (8) On any pair of wheels ... 4 
 (9. Per foot run over buffers . . . 0*5
 
 APPENDIX A 285 
 
 N.B. — The weights given above are the maximum 
 permissible under any circumstances, with the vehicle 
 fully loaded. The weight on a pair of wheels includes 
 the weight of the wheels, axles, axle-boxes, and 
 springs. 
 
 Wheel Base — ft. In. 
 
 (10) Maximum rigid wheel base for vehicles . 9 o 
 Buffers and Couplings — ■ 
 
 (11) Central buffers .... — 
 
 (12) Maximum height above rail level for centres 
 
 of buffers for unloaded vehicles . . in 
 
 (13) Minimum height above rail level for centres 
 
 of buffers for fully loaded vehicles . i 9 
 
 Height for Floors — ■ 
 
 (14) Maximum height above rail level for floor of 
 
 any vehicle unloaded . . .25 
 
 (15) Minimum height above rail level for floor of 
 
 any vehicle fully loaded . . .23 
 
 Wheels and Axles — 
 
 ( 1 6) Standard wheel gauge, or distance apart for 
 
 all wheel flanges . . . ~ l\ 
 
 (17) Standard diameter on the tread for- new 
 
 wheels . . . . .18 
 
 (18) Maximum projection for flange of worn tyre 
 
 below rail level . . . .01 
 
 Roof Lamps — 
 
 ( 1 9) Standard diameter inside in the clear for rings 
 
 of carriage roof lamps . . . o Z\ 
 
 (20) Standard diameter for carriage roof lamps at 
 
 level of ring . . . .08
 
 APPENDIX B 
 
 THE INDIAN RAILWAY ACT 
 
 Reprinted from the Gazette of India, dated 22nd March 1890 
 
 GOVERNIMENT OF INDIA, LEGISLATIVE DEPARTMENT 
 
 The following Act of the Governor-General of India in Council 
 received the assent of his Excellency the Governor-General on 
 the 2 1 St March 1890, and is hereby promulgated for general 
 information : — 
 
 Act No. IX. of 1890 
 
 THE INDIAN RAILWAYS ACT, 1890 
 CONTENTS 
 
 CHAPTER I 
 
 Preliminary 
 
 Sects. 
 
 1. Title, extent and commencement. 
 
 2. Repeal. 
 
 3. Definitions. 
 
 CHAPTER II 
 
 Inspection of Railways 
 
 4. Appointment and duties of Inspectors. 
 
 5. Powers of Inspectors. 
 
 6. Facilities to be afforded to Inspectors.
 
 APPENDIX B 287 
 
 CHAPTER III 
 Construction and Maintenance of Works 
 
 Sects. 
 
 7. Authority of railway administrations to execute all neces- 
 
 sary works. 
 
 8. Alteration of pipes, wires, and drains. 
 
 9. Temporary entry upon land for repairing or preventing 
 
 accidents. 
 
 10. Payment of compensation for damage caused by lawful 
 
 exercise of powers under section 7, 8, or 9. 
 
 1 1 . Accommodation works. 
 
 12. Power for owner, occupier, or local authority to cause 
 
 additional accommodation works to be made. 
 
 13. Fences, screens, gates, and bars. 
 
 1 4. Over and under bridges. 
 
 15. Removal of trees dangerous to or obstructing the working 
 
 of a railway. 
 
 CHAPTER IV 
 Opening of Railways 
 
 16. Right to use locomotives. 
 
 1 7. Notice of intended opening of a railway. 
 
 18. Sanction of the Government a condition precedent to the 
 
 opening of a railway. 
 
 19. Procedure in sanctioning the opening of a railway. 
 
 20. Application of the provisions of the three last foregoing 
 
 sections to material alterations of a railway. 
 
 21. Exceptional provision. 
 
 22. Power to make rules with respect to the opening of 
 
 railways. 
 
 23. Power to close an opened railway. 
 
 24. Reopening of a closed railway. 
 
 25. Delegation of powers under this Chapter to Inspectors.
 
 288 RAILWAY POLICY IN INDIA 
 
 CHAPTER V 
 
 Railway Commissions and Traffic Facilities 
 
 Railiuay Commissions 
 
 Sects. 
 
 26. Constitution of Railway Commission. 
 
 27. Restriction of jurisdiction of Railway Commission to cases 
 
 specially referred. 
 
 28. Reference of cases to Railway Commission. 
 
 29. Constitution of Railway Commission in session. 
 
 30. Powers of Railway Commission. 
 
 31. Appeals from orders of Railway Commission. 
 
 32. Operation of orders of Railway Commission. 
 2)'^. Assessors. 
 
 34. Power of the Governor-General in Council to make rules 
 
 for the purposes of this Chapter. 
 
 35. Costs of proceedings under this Chapter. 
 
 36. Execution of order of Railway Commission and High 
 
 Court. 
 
 37. Evidence of documents. 
 
 38. Submission to the Governor-General in Council of special 
 
 reports by Railway Commission. 
 
 39. Dissolution of Railway Commission. 
 
 40. Finality of orders of Railway Commission subject to the 
 
 foregoing provisions of this chapter. 
 
 41. Bar of jurisdiction of ordinary Courts in certain matters 
 
 cognizable by Railway Commission. 
 
 Traffic Facilities 
 
 42. Duty of railway administrations to arrange for receiving 
 
 and forwarding^ traffic without unreasonable delay and 
 without partiality. 
 
 43. Undue preference in case of unequal rates for like traffic 
 
 or services. 
 
 44. Provisions for facilities and equal treatment where ships 
 
 or boats are used which arc not part of a railway. 
 
 45. Terminals. 
 
 46. Power of Railway Commission to fix terminals.
 
 APPENDIX B 289 
 
 CHAPTER VI 
 
 Working of Railways 
 
 General 
 Sects. 
 
 47. General rules. 
 
 48. Disposal of differences between railways regarding con- 
 
 duct of joint traffic. 
 
 49. Agreements with the Governor- General in Council for 
 
 construction or lease of rolling-stock. 
 
 50. Powers of railway companies to enter into working agree- 
 
 ments. 
 
 51. Establishment of ferries and roadways for accommodation 
 
 of traffic. 
 
 52. Returns. 
 
 Carnage of Property 
 
 53. Maximum load for waggons. 
 
 54. Power for railway administrations to impose conditions for 
 
 working traffic. 
 
 55. Lien for rates, terminals, and other charges. 
 
 56. Disposal of unclaimed things on a railway. 
 
 57. Power for railway administrations to require indemnity on 
 
 delivery of goods in certain cases. 
 
 58. Requisitions for written accounts of description of goods. 
 
 59. Dangerous or offensive goods. 
 
 60. Exhibition to the public of authority for quoted rates. 
 
 61. Requisitions on railway administrations for details of gross 
 
 charges. 
 
 Carriage of Passengers 
 
 62. Communication between passengers and railway servants 
 
 in charge of trains. 
 
 63. Maximum number of passengers for each compartment. 
 
 64. Reservation of compartments for females. 
 
 65. Exhibition of time-tables and tables of fares at stations. 
 
 66. Supply of tickets on payment of fares. 
 
 U
 
 290 RAILWAY POLICY IN INDIA 
 
 Sects. 
 
 67. Provision for case in which tickets have been issued 
 
 for trains not having room available for additional 
 passengers. 
 
 68. Prohibition against travelling without pass or ticket. 
 
 69. Exhibition and surrender of passes and tickets. 
 
 70. Return and season tickets. 
 
 71. Power to refuse to carry persons suffering from infectious 
 
 or contatrious disorder. 
 
 CHAPTER VII 
 Responsibility of Railway Administrations as Carriers 
 
 72. Measure of the general responsibility of a railway admin- 
 istration as a carrier of animals and goods. 
 
 y^. Further provision with respect to the liability of a railway 
 administration as a carrier of animals. 
 
 74. Further provision with respect to the liability of a railway 
 
 administration as a carrier of luggage. 
 
 75. Further provision with respect to the liability of a rail- 
 
 way administration as a carrier of articles of special 
 value. 
 
 76. Burden of proof in suits in respect of loss of animals or 
 
 goods. 
 yy. Notification of claims to refunds of over-charges and to 
 compensation for losses. 
 
 78. Exoneration from responsibility in case of goods falsely 
 
 described. 
 
 79. Settlement of compensation for injuries to officers, soldiers, 
 
 and followers on duty. 
 
 80. Suits for compensation for injury to through -booked 
 
 traffic. 
 
 81. Limitation of liability of railway administration in respect 
 
 of traffic on inland waters by vessels not being part of 
 railway. 
 
 82. Limitation of liability of railway administration in respect 
 
 of accidents at sea.
 
 APPENDIX B 291 
 
 CHAPTER VIII 
 Accidents 
 
 Sects. 
 
 83. Report of railway accidents. 
 
 84. Power to make rules regarding notices of and inquiries 
 
 into accidents. 
 
 85. Submission of return of accidents. 
 
 86. Provision for compulsory medical examination of persons 
 
 injured in railway accidents. 
 
 CHAPTER IX 
 
 Penalties and Offences 
 
 Forfeitures by Railway Companies 
 
 87. Penalty for default in compliance with requisition under 
 
 section 13. 
 
 88. Penalty for contravention of section 16, 18, 19, 20, 21, 
 
 or 24. 
 
 89. Penalty for not having certain documents kept or 
 
 exhibited at stations under section 47, 54, or 65. 
 
 90. Penalty for not making rules as required by section 47. 
 
 9 1 . Penalty for failure to comply with decision under section 48. 
 
 92. Penalty for delay in submitting returns under section 52 
 
 or 85. 
 
 93. Penalty for neglect of provisions of section 53 or 63 
 
 with respect to carrying capacity of rolling-stock. 
 
 94. Penalty for failure to comply with requisition under 
 
 section 62 for maintenance of means of communica- 
 tion between passengers and railway servants. 
 
 95. Penalty for failure to reserve compartments for females 
 
 under section 64. 
 
 96. Penalty for omitting to give the notices of accidents re- 
 
 quired by section 83 and under section 84. 
 
 97. Recovery of penalties. 
 
 98. Alternative or supplementary' character of remedies 
 
 afforded by the foregoing provisions of this Chapter.
 
 292 RAILWAY POLICY IN INDIA 
 
 Offences by Railway Serva7its 
 
 Sects. 
 
 99. Breach of duty imposed by section 60. 
 
 100. Drunkenness. 
 
 10 1. Endangering the safety of persons. 
 
 102. Compelling passengers to enter carriages already full. 
 
 103. Omission to give notice of accident. 
 
 104. Obstructing level crossings. 
 
 105. False returns. 
 
 Other Offences 
 
 106. Giving false account of goods. 
 
 107. Unlawfully bringing dangerous or offensive goods upon 
 
 a railway. 
 
 108. Needlessly interfering with means of communication in 
 
 a train. 
 
 109. Entering compartment reserved or already full, or resist- 
 
 ing entry into a compartment not full. 
 
 1 10. Smoking. 
 
 111. Defacing public notices. 
 
 112. Fraudulently travelling or attempting to travel without 
 
 a proper pass or ticket. 
 
 1 1 3. Travelling without pass or ticket, or with insufficient pass 
 
 or ticket, or beyond authorised distance. 
 
 1 14. Transferring return half of return ticket. 
 
 115. Disposal of fines under the two last foregoing sections. 
 
 116. Altering or defacing pass or ticket. 
 
 117. Being or suffering person to travel on railway with 
 
 infectious or contagious disorder. 
 
 118. Entering carriage in motion, or otherwise improperly 
 
 travelling on a railway. 
 J 1 9. Entering carriage or other place reserved for females. 
 
 120. Drunkenness or nuisance on a railway. 
 
 121. Obstructing railway servant in his duty. 
 
 122. Trespass and refusal to desist from trespass. . 
 
 123. Disobedience of omnibus drivers to directions of railway 
 
 servants. 
 
 124. Opening or not properly shutting gates.
 
 APPENDIX B 293 
 
 Sects. 
 
 125. Cattle-trespass. 
 
 126. Maliciously wrecking or attempting to wreck a train. 
 
 127. Maliciously hurting or attempting to hurt persons travel- 
 
 ling by railway. 
 
 128. Endangering safety of persons travelling by railway by 
 
 wilful act or omission. 
 
 129. Endangering safety of persons travelling by railway by 
 
 rash or negligent act or omission. 
 
 130. Special provision with respect to the commission by 
 
 children of acts endangering safety of persons travel- 
 ling by railway. 
 
 Procedure 
 
 131. Arrest for offences against certain sections. 
 
 132. Arrest of persons likely to abscond or unknown. 
 
 133. Magistrates having jurisdiction under Act. 
 
 134. Place of trial. 
 
 CHAPTER X 
 
 Supplemental Provisions 
 
 135. Taxation of railways by local authorities. 
 
 136. Restriction on execution against railway property. 
 
 137. Railway servants to be pubhc servants for the purposes 
 
 of Chapter IX. of the Indian Penal Code. 
 
 138. Procedure for summary delivery to railway administra- 
 
 tion of property detained by a railway servant. 
 
 139. Mode of signifying communications from the Governor- 
 
 General in Council. 
 
 140. Service of notices on railway administrations. 
 
 141. Service of notices by railway administrations. 
 
 142. Presumption where notice is served by post. 
 
 143. Provisions with respect to rules. 
 
 144. Delegation of powers of Governor-General in Council. 
 
 145. Representation of Managers and Agents of railways in 
 
 Courts. 
 
 146. Power to extend Act to steam-tramways.
 
 294 RAILWAY POLICY IN INDIA 
 
 Sects. 
 
 147. Power to exempt railways from Act. 
 
 148. Matters supplemental to the definitions of "railway" and 
 
 " railway servant." 
 
 1 49. Amendment of the Indian Penal Code. 
 
 150. Amendment of the Sindh-Pishin Railway Act, 1887. 
 
 THE FIRST SCHEDULE.— Enactments repealed. 
 THE SECOND SCHEDULE. —Articles to be declared and in- 
 sured. 
 
 The Indian Railways Act, 1890. 
 
 A?i Act to co7tsolidate^ anie7id^ and add to the Law relating to 
 Railways in India. 
 
 Whereas it is expedient to consolidate, amend, and add to 
 the law relating to railways in India : It is hereby enacted as fol- 
 lows : — 
 
 CHAPTER I 
 Preliminary 
 
 1. (i) This Act may be called the Indian Railways Act, 1890. 
 
 (2) It extends to the whole of British India, inclusive of 
 Upper Burma and (in so far as it has been or may be extended 
 under the provisions of the Sindh-Pishin Railway Act, 1887) of 
 British Baluchistan, and applies also to all subjects of Her 
 Majesty within the dominions of Princes and States in India in 
 alliance with Her Majesty, and to all Native subjects of Her 
 Majesty without and beyond British India and those dominions ; 
 and 
 
 (3) It shall come into force on the first day of May 1890. 
 
 2. (i) On and from that day the enactments specified in the 
 first schedule are repealed to the extent mentioned in the third 
 column thereof 
 
 (2) But all rules, declarations, and appointments made, 
 sanctions and directions given, forms approved, powers conferred.
 
 APPENDIX B 295 
 
 and notifications published under any of those enactments, or 
 under any enactment repealed by any of them, shall, so far as 
 they are consistent with this Act, be deemed to have been re- 
 spectively made, given, approved, conferred, and published under 
 this Act. 
 
 (3) Any enactment or document referring to any of those 
 enactments, or to any enactment repealed by any of them, shall, 
 so far as may be, be construed to refer to this Act or to the cor- 
 responding portion thereof 
 
 3. In this Act, unless there is something repugnant in the 
 subject or context, — 
 
 (i) "tramway" means a tramway constructed under the 
 Indian Tramways Act, 1886, or any special Act relating to tram- 
 ways : 
 
 (2) "ferry" includes a bridge of boats, pontoons, or rafts, a 
 swing-bridge, a flying bridge, and a temporary bridge, and the 
 approaches to, and landing-places of a ferry : 
 
 (3) " inland water " means any canal, river, lake, or navigable 
 water in British India : 
 
 (4) " railway " means a railway, or any portion of a railway, 
 for the public carriage of passengers, animals, or goods, and in- 
 cludes — 
 
 (a) all land within the fences or other boundary-marks indi- 
 cating the limits of the land appurtenant to a railway ; 
 
 (d) all lines of rails, sidings, or branches worked over for the 
 purposes of, or in connection with a railway ; 
 
 (c) all stations, offices, warehouses, wharves, workshops, 
 
 manufactories, fixed plant and machinery, and other 
 works constructed for the purposes of, or in connection 
 with a railway ; and 
 
 (d) all ferries, ships, boats, and rafts which are used on inland 
 
 waters for the purposes of the traffic of a railway, and 
 belong to or are hired or worked by the authority ad- 
 ministering the railway : 
 
 (5) " railway company " includes any persons, whether incor- 
 porated or not, who are owners or lessees of a railway, or parties 
 to an agreement for working a railway : 
 
 (6) " railway administration " or " administration," in the case
 
 296 RAILWAY POLICY IN INDIA 
 
 of a railway administered by the Government or a Native State, 
 means the Manager of the railway, and includes the Government 
 or the Native State, and, in the case of a railway administered by 
 a railway company, means the railway company : 
 
 (7) " railway servant " means any person employed by a rail- 
 way administration in connection with the service of a railway : 
 
 (8) "Inspector" means an Inspector of Railways appointed 
 under this Act : 
 
 (9) "goods" includes inanimate things of every kind : 
 
 (10) "rolling-stock" includes locomotive engines, tenders, 
 carriages, waggons, trucks, and trollies of all kinds : 
 
 (11) "traffic" includes rolling-stock of every description as 
 well as passengers, animals, and goods : 
 
 (12) "through trafific " means traffic which is carried over the 
 railways of two or more railway administrations : 
 
 (13) "rate" includes any fare,, charge, or other payment for 
 the carriage of any passenger, animal, or goods : 
 
 (14) "terminals" includes charges in respect of stations, 
 sidings, wharves, depots, warehouses, cranes, and other similar 
 matters, and of any services rendered thereat : 
 
 (15) "pass" means an authority given by a railway adminis- 
 tration, or by an officer appointed by a railway administration in 
 this behalf, and authorising the person to whom it is given to 
 travel as a passenger on a railway gratuitously : 
 
 (16) "ticket" includes a single ticket, a return ticket, and a 
 season ticket : 
 
 (17) " maund " means a weight of three thousand two hundred 
 tolas, each tola being a weight of one hundred and eighty grains 
 Troy : and 
 
 (18) " Collector " means the chief officer in charge of the land- 
 revenue administration of a district, and includes any officer 
 specially appointed by the Local Government to discharge the 
 functions of a Collector under this Act. 
 
 CHAPTER II 
 Inspection of Railways 
 4. (1) The Governor-General in Council may appoint persons.
 
 APPENDIX B 297 
 
 by name or by virtue of their office, to be Inspectors of Rail- 
 ways. 
 
 (2) The duties of an Inspector of Railways shall be — 
 
 (a) to inspect railways with a view to determine whether they 
 are fit to be opened for the public carriage of pas- 
 sengers, and to report thereon to the Governor-General 
 in Council as required by this Act ; 
 
 (3) to make such periodical or other inspections of any rail- 
 
 way or of any rolling-stock used thereon as the 
 Governor-General in Council may direct ; 
 
 (c) to make inquiry under this Act into the cause of any acci- 
 
 dent on a railway ; 
 
 (d) to perform such other duties as are imposed on him by 
 
 this Act or any other enactment for the time being in 
 force relating to railways. 
 
 5. An Inspector shall, for the purpose of any of the duties 
 which he is required or authorised to perform under this Act, be 
 deemed to be a public servant within the meaning of the Indian 
 Penal Code, and, subject to the control of the Governor-General 
 in Council, shall for that purpose have the following powers, 
 namely : — 
 
 (a) to enter upon and inspect any railway or any rolling-stock 
 used thereon ; 
 
 (d) by an order in writing under his hand addressed to the 
 railway administration, to require the attendance before 
 him of any railway servant, and to require answers or 
 returns to such incjuiries as he thinks fit to make from 
 such railway servant or from the railway administration ; 
 
 (c) to require the production of any book or document belong- 
 ing to, or in the possession or control of any railway ad- 
 ministration (except a communication between a railway 
 company and its legal advisers) which it appears to him 
 to be necessary to inspect. 
 
 6. A railway administration shall afford to the Inspector all 
 reasonable facilities for performing the duties and exercising the 
 powers imposed and conferred upon him by this Act.
 
 298 RAILWAY POLICY IN INDIA 
 
 CHAPTER III 
 
 Construction and Maintenance of Works 
 
 7. (i) Subject to the provisions of this Act and, in the case 
 of immo\-able property not belonging to the railway administra- 
 tion, to the provisions of any enactment for the time being in 
 force for the acquisition of land for public purposes and for com- 
 panies, and subject also, in the case of a railway company, to 
 the provisions of any contract between the company and the 
 Government, a railway administration may, for the purpose of 
 constructing a railway, or the accommodation or other works con- 
 nected therewith, and notwithstanding anything in any other 
 enactment for the time being in force, — 
 
 (a) make or construct in, upon, across, under, or over any 
 lands, or any streets, hills, valleys, roads, railways, or 
 tramways, or any rivers, canals, brooks, streams, or 
 other waters, or any drains, water-pipes, gas-pipes, or 
 telegraph lines, such temporary or permanent inclined 
 planes, arches, tunnels, culverts, embankments, aque- 
 ducts, bridges, roads, ways, passages, conduits, drains, 
 piers, cuttings, and fences as the railway administration 
 thinks proper ; 
 (S) alter the course of any rivers, brooks, streams, or water- 
 courses, for the purpose of constructing and maintain- 
 ing tunnels, bridges, passages, or other works over or 
 under them, and divert or alter, as well temporarily as 
 permanently, the course of any rivers, brooks, streams, 
 or water-courses, or any roads, streets, or ways, or raise 
 or sink the level thereof, in order the more conveniently 
 to carry them over or under or by the side of the rail- 
 way, as the railway administration thinks proper ; 
 (<:) make drains or conduits into, through, or under any lands 
 adjoining the railway for the purpose of conveying 
 water from or to the railway ; 
 ((f) erect and construct such houses, warehouses, offices, and 
 other buildings, and such yards, stations, wharves
 
 • APPENDIX B 299 
 
 engines, machinery, apparatus, and other works and con- 
 veniences as the raihvay administration thinks proper ; 
 (e) aUer, repair, or discontinue such buildings, works, and con- 
 veniences as aforesaid, or any of them, and substitute 
 others in their stead ; and 
 {/) do all other acts necessary for making, maintaining, alter- 
 ing, or repairing and using the railway. 
 (2) The exercise of the powers conferred on a railway adminis- 
 tration by sub-section (i) shall be subject to the control of the 
 Governor-General in Council. 
 
 8. A railway administration may, for the purpose of exercising 
 the powers conferred upon it by this Act, alter the position of any 
 pipe for the supply of gas, water, or compressed air, or the position 
 of any electric wire or of any drain not being a main drain : 
 
 {a) when the railway administration desires to alter the position 
 of any such pipe, wire, or drain, it shall give reasonable 
 notice of its intention to do so, and of the time at which 
 it will begin to do so, to the local authority or company 
 having control over the pipe, wire, or drain, or, when the 
 pipe, wire, or drain is not under the control of a local 
 authority or company, to the person under whose control 
 the pipe, wire, or drain is ; 
 
 (/;) a local authority, company, or person receiving notice under 
 proviso {a), may send a person to superintend the work, 
 and the railway administration shall execute the work 
 to the reasonable satisfaction of the person so sent, and 
 shall make arrangements for continuing during the 
 execution of the work the supply of gas, water, com- 
 pressed air, or electricity, or the maintenance of the 
 drainage, as the case may be. 
 
 9. (l) The Governor-General in Council may authorise any 
 railway administration, in case of any slip or other accident hap- 
 pening or being apprehended to any cutting, embankment, or other 
 work under the control of the railway administration, to enter 
 upon any lands adjoining its railway for the purpose of repairing 
 or preventing the accident, and to do all such works as may be 
 necessary for the purpose. 
 
 (2) In case of necessity the railway administration may enter
 
 300 RAILWAY POLICY IN INDIA 
 
 upon the lands and do the works aforesaid without having obtained 
 the previous sanction of the Governor-General in Council, but in 
 such a case shall, within seventy-two hours after such entry, make a 
 report to the Governor-General in Council, specifying the nature 
 of the accident or apprehended accident, and of the works necessary 
 to be done, and the power conferred on the railway administration 
 by this sub-section shall cease and determine if the Governor- 
 General in Council, after considering the report, considers that 
 the exercise of the power is not necessary for the public safety. 
 
 10. (i) A railway administration shall do as little damage as 
 possible in the exercise of the powers conferred by any of the 
 three last foregoing sections, and compensation shall be paid for 
 any damage caused by the exercise thereof 
 
 (2) A suit shall not lie to recover such compensation, but in 
 case of dispute the amount thereof shall, on application to the 
 Collector, be determined and paid in accordance, so far as may be, 
 with the provisions of sections 11 to 15, both inclusive, and 
 sections 18 to 42, both inclusive, of the Land-acquisition Act, 
 1870, and the provisions of sections 57 and 58 of that Act shall 
 apply to the award of compensation. 
 
 11. (i) A railway administration shall make and maintain the 
 following works for the accommodation of the owners and occupiers 
 of lands adjoining the railway, namely : — 
 
 (a) such and so many convenient crossings, bridges, arches, 
 culverts, and passages over, under, or by the sides of, or 
 leading to or from the railway as may, in the opinion 
 of the Governor-General in Council, be necessary for 
 the purpose of making good any interruptions caused 
 by the railway to the use of the lands through which the 
 railway is made, and 
 
 (/)) all necessary arches, tunnels, culverts, drains, water-courses, 
 or other passages, over or under or by the sides of the 
 railway, of such dimensions as will, in the opinion of 
 the Governor-General in Council, be sufficient at all times 
 to convey water as freely from or to the lands lying near 
 or affected by the railway as before the making of the 
 railway, or as nearly so as may be. 
 
 (2) Subject to the other provisions of this Act, the works
 
 APPENDIX B 
 
 301 
 
 specified in clauses {a) and {b) of sub-section (i) shall be made 
 during or immediately after the laying out or formation of the 
 railway over the lands traversed thereby, and in such manner as 
 to cause as little damage or inconvenience as possible to persons 
 interested in the lands or affected by the works. 
 
 (3) The foregoing provisions of this section are subject to the 
 following provisos, namely : — 
 
 {a) a railway administration shall not be required to make 
 any accommodation works in such a manner as would 
 prevent or obstruct the working or using of the railway, 
 or to make any accommodation works with respect to 
 which the owners and occupiers of the lands have 
 agreed to receive and have been paid compensation in 
 consideration of their not requiring the works to be 
 made ; 
 
 (b) save as hereinafter in this Chapter provided, a railway 
 administration shall not, except on the requisition of the 
 Governor-General in Council, be compelled to defray 
 the cost of executing any further or additional accom- 
 modation works for the use of the owners or occupiers 
 of the lands after the expiration of ten years from the 
 date on which the railway passing through the lands 
 was first opened for public traffic ; 
 
 {c) where a railway administration has provided suitable 
 accommodation for the crossing of a road or stream, 
 and the road or stream is afterwards diverted by the 
 act or neglect of the person having the control thereof, 
 the administration shall not be compelled to provide 
 other accommodation for the crossing of the road or 
 stream. 
 
 (4) The Governor-General in Council may appoint a time for 
 the commencement of any work to be executed under sub-section 
 (i), and if for fourteen days next after that time the railway 
 administration fails to commence the work, or, having commenced 
 it, fails to proceed diligently to execute it in a sufficient manner, 
 the Governor-General in Council may execute it and recover from 
 the railway administration the cost incurred by him in the 
 execution thereof
 
 302 RAILWAY TOLICY IN INDIA 
 
 12. If an owner or occupier of any land affected by a railway 
 considers the works made under the last foregoing section to be 
 insufficient for the commodious use of the land, or if the local 
 Government or a local authority desires to construct a public road 
 or other work across, under, or over a railway, he or it, as the 
 case may be, may at any time require the railway administration 
 to make at his or its expense such further accommodation 
 works as he or it thinks necessary, and are agreed to by the 
 railway administration, or as, in case of difference of opinion, may 
 be authorised by the Governor-General in Council. 
 
 13. The Governor-General in Council may require that, within 
 a time to be specified in the requisition, or within such further 
 time as he may appoint in this behalf, — 
 
 (a) boundary -marks or fences be provided or renewed by 
 a railway administration for a railway, or any part 
 thereof, and for roads constructed in connection there- 
 with ; 
 
 (d) any works in the nature of a screen near to or adjoining 
 the side of any public road constructed before the 
 making of a railway be provided or renewed by a 
 railway administration, for the purpose of preventing 
 danger to passengers on the road by reason of horses 
 or other animals being frightened by the sight or noise 
 of the rolling-stock moving on the railway ; 
 
 (c) suitable gates, chains, bars, stiles, or hand-rails be erected 
 
 or renewed by a railway administration at places where 
 a railway crosses a public road on the level ; 
 
 (d) persons be employed by a railway administration to open 
 
 and shut such gates, chains, or bars. 
 
 14. (i) Where a railway administration has constructed a 
 railway across a public road on the level, the Governor-General 
 in Council may at any time, if it appears to him necessary for the 
 public safety, require the railway administration, within such time 
 as he thinks fit, to carry the road either under or over the railway 
 by means of a bridge or arch, with convenient ascents and 
 descents, and other convenient approaches, instead of crossing the 
 road on the level, or to execute such other works as, in the 
 circumstances of the case, may appear to the Governor-General
 
 APPENDIX B 303 
 
 in Council to be best adapted for removing or diminishing the 
 danger arising from the level-crossing. 
 
 (2) The Governor - General in Council may require, as a 
 condition of making a requisition under sub-section (i), that the 
 local authority, if any, which maintains the road shall undertake 
 to pay the whole of the cost to the railway administration of com- 
 plying with the requisition, or such portion of the cost as the 
 Governor-General in Council thinks just. 
 
 15. (i) In either of the following cases, namely: — 
 
 (a) where there is danger that a tree standing near a railway 
 may fall on the railway so as to obstruct traffic, 
 
 (d) when a tree obstructs the view of any fixed signal, 
 the railway administration may, with the permission of any 
 Magistrate, fell the tree, or deal with it in such other manner as 
 will, in the opinion of the railway administration, avert the danger 
 or remove the obstruction as the case may be. 
 
 (2) In case of emergency the power mentioned in sub-section 
 (i) may be exercised by a railway administration without the 
 permission of a Magistrate. 
 
 (3) Where a tree felled or otherwise dealt with under sub- 
 section (i) or sub-section (2) was in existence before the railway 
 was constructed or the signal was fixed, any Magistrate may, 
 upon the application of the persons interested in the tree, award 
 to those persons such compensation as he thinks reasonable. 
 
 (4) Such an award, subject, where made in a presidency-town 
 by any Magistrate other than the Chief Presidency Magistrate, or 
 where made elsewhere by any Magistrate other than the District 
 Magistrate, to revision by the Chief Presidency Magistrate or the 
 District Magistrate, as the case may be, shall be final. 
 
 (5) A Civil Court shall not entertain a suit to recover com- 
 pensation for any tree felled or otherwise dealt with under this 
 section. 
 
 CHAPTER IV 
 Opening of Railways 
 
 16. (i) A railway administration may, with the previous 
 sanction of the Governor-General in Council, use upon a railway
 
 304 RAILWAY POLICY IN INDIA 
 
 locomotive engines or other motive power, and rolling-stock to be 
 drawn or propelled thereby. 
 
 (2) But rolling-stock shall not be moved upon a railway by 
 steam or other motive power until such general rules for the 
 railway as may be deemed to be necessary have been made, sanc- 
 tioned, and published under this Act. 
 
 17. (i) Subject to the provisions of sub-section (2), a railway 
 administration shall, one month at least before it intends to open 
 any railway for the public carriage of passengers, give to the 
 Governor-General in Council notice in writing of its intention. 
 
 (2) The Governor-General in Council may in any case, if he 
 thinks fit, reduce the period of, or dispense with the notice 
 mentioned in sub-section (i). 
 
 18. A railway shall not be opened for the public carriage of 
 passengers until the Governor-General in Council, or an Inspector 
 empowered by the Governor-General in Council in this behalf, has 
 by order sanctioned the opening thereof for that purpose. 
 
 19. (i) The sanction of the Governor- General in Council 
 under the last foregoing section shall not be given until an 
 Inspector has, after inspection of the railway, reported in writing 
 to the Governor-General in Council — 
 
 (a) that he has made a careful inspection of the railway and 
 
 rolling-stock ; 
 (l?) that the moving and fixed dimensions prescribed by the 
 
 Governor-General in Council has not been infringed; 
 
 (c) that the weight of rails, strength of bridges, general 
 
 structural character of the works, and the size of and 
 maximum gross load upon the axles of any rolling-stock, 
 are such as have been prescribed by the Governor- 
 General in Council ; 
 
 (d) that the railway is sufficiently supplied with rolling- 
 
 stock ; 
 
 (e) that general rules for the working of the railway when 
 
 opened for the public carriage of passengers have been 
 made, sanctioned, and pulDlished under this Act ; and 
 (/) that, in his opinion, the railway can be opened for the 
 public carriage of passengers without danger to the 
 public using it.
 
 APPENDIX B 305 
 
 (2) If in the opinion of the Inspector the railway cannot be so 
 opened without danger to the public using it, he shall state that 
 opinion, together with the grounds therefor, to the Governor-General 
 in Council, and the Governor-General in Council may thereupon 
 order the railway administration to postpone the opening of the 
 railway. 
 
 (3) An order under the last foregoing sub-section must set 
 forth the requirements to be complied with as a condition precedent 
 to the opening of the railway being sanctioned, and shall direct 
 the postponement of the opening of the railway until those require- 
 ments have been complied with, or the Governor-General in Council 
 is otherwise satisfied that the railway can be opened without danger 
 to the public using it. 
 
 (4) The sanction given under this section may be either 
 absolute, or subject to such conditions as the Governor-General in 
 Council thinks necessary for the safety of the public. 
 
 (5) When sanction for the opening of a railway is given 
 subject to conditions, and the railway administration fails to fulfil 
 those conditions, the sanction shall be deemed to be void, and the 
 railway shall not be worked or used until the conditions are fulfilled 
 to the satisfaction of the Governor-General in Council. 
 
 20. (i) The provisions of sections 17, 18, and 19 with respect 
 to the opening of a railway shall extend to the opening of the 
 works mentioned in sub-section (2), when those works form part of, 
 or are directly connected with a railway used for the public 
 carriage of passengers, and have been constructed after the 
 inspection which preceded the first opening of the railway. 
 
 (2) The works referred to in sub -section (i) are additional 
 lines of railway, deviation lines, stations, junctions, and crossings on 
 the level, and any alteration or reconstruction materially affecting 
 the structural character of any work to which the provisions of 
 sections 17, 18, and 19 apply or are extended by this section. 
 
 21. When an accident has occurred resulting in a temporary 
 suspension of traffic, and either the original line and works have 
 been rapidly restored to their original standard, or a temporary 
 diversion has been laid for the purpose of restoring communica- 
 tion, the original line and works so restored, or the temporary 
 diversion, as the case may be, may, in the absence of the Inspector, 
 
 X
 
 3o6 RAILWAY POLICY IN INDIA 
 
 be opened for the public carriage of passengers, subject to the 
 
 following conditions, namely : — 
 
 (a) that the railway servant in charge of the works undertaken 
 by reason of the accident has certified in writing that 
 the opening of the restored line and works, or of the 
 temporary diversion, will not in his opinion be attended 
 with danger to the public using the line and works or 
 the diversion ; and 
 (d) that notice by telegraph of the opening of the line and 
 works or the diversion shall be sent, as soon as may be, 
 to the Inspector appointed for the railway. 
 
 22. The Governor-General in Council may make rules defining 
 the cases in which, and in those cases the extent to which, the 
 procedure prescribed in sections i 7 to 20 (both inclusive) may be 
 dispensed with. 
 
 23. (i) When, after inspecting any open railway used for the 
 public carriage of passengers, or any rolling-stock used thereon, 
 an Inspector is of opinion that the use of the railway or of any 
 specified rolling-stock will be attended with danger to the public 
 using it, he shall state that opinion, together with the grounds 
 therefor, to the Governor-General in Council ; and the Governor- 
 General in Council may thereupon order that the railway be closed 
 for the public carriage of passengers, or that the use of the rolling- 
 stock so specified be discontinued, or that the railway or rolling- 
 stock so specified be used for the public carriage of passengers on 
 such conditions only as the Governor- General in Council may 
 consider necessary for the safety of the public. 
 
 (2) An order under sub-section (i) must set forth the grounds 
 on which it is founded. 
 
 24. ( I ) When a railway has been closed under the last fore- 
 going section, it shall not be reopened for the public carriage of 
 passengers until it has been inspected, and its reopening sanctioned, 
 in accordance with the provisions of this Act. 
 
 (2) When the Governor-General in Council has ordered under 
 the last foregoing section that the use of any specified rolling-stock 
 be discontinued, that rolling-stock shall not be used until an 
 Inspector has reported that it is fit for use, and the Governor- 
 General in Council has sanctioned its use. /
 
 APPENDIX B 307 
 
 (3) When the Governor-General in Council has imposed under 
 the last foregoing section any conditions with respect to the use 
 of any railway or rolling-stock, those conditions shall be observed 
 until they are withdrawn by the Governor-General in Council. 
 
 25. (i) The Governor-General in Council may, by general or 
 special order, authorise the discharge of any of his functions under 
 this Chapter by an Inspector, and may cancel any sanction or 
 order given by an Inspector discharging any such function, or 
 attach thereto any condition which the Governor- General in 
 Council might have imposed if the sanction or order had been 
 given by himself 
 
 (2) A condition imposed under sub-section (i) shall for all the 
 purposes of this Act have the same effect as if it were attached to 
 a sanction or order given by the Governor-General in Council. 
 
 CHAPTER V 
 
 Railway Commissions and Traffic Facilities 
 
 Railway Comi)iissioiis 
 
 26. (i) For the purposes of this Chapter the Governor-General 
 in Council shall, as occasion may in his opinion require, appoint a 
 Commission, styled a Railway Commission (in this Act referred to 
 as the Commissioners), and consisting of one Law Commissioner 
 and two Lay Commissioners. 
 
 (2) The Commissioners shall sit at such times and in such 
 places as the Governor-General in Council appoints. 
 
 (3) The Law Commissioner shall be such judge of the High 
 Court having jurisdiction in reference to European British subjects 
 under the Code of Criminal Procedure, 1882, in the place where 
 the Commissioners are to sit as, in the case of a High Court 
 estabHshed under the Statute 24 and 25 Victoria, chapter 104, 
 the Chief Justice or, in the case of the Chief Court of the Punjab, 
 the Senior Judge, or, in the case of the Court of the Recorder of 
 Rangoon, the Chief Commissioner of Burma may, on the request of 
 the Governor-General in Council, assign by writing under his hand. 
 
 (4) The Lay Commissioners shall be appointed by the Governor- 
 General in Council, and one at least of them shall be of e.xperience 
 in railway business.
 
 3o8 RAILWAY POLICY IN INDIA 
 
 27. The Commissioners shall take cognizance of such cases 
 only as are referred to them by the Governor-General in Council. 
 
 28. In any of the following circumstances, namely : — 
 
 (a) where complaint is made to the Governor- General in 
 Council of anything done or any omission made by a 
 railway administration in violation or contravention of 
 any provision of this chapter ; 
 (d) where any difference which is under the provisions of any 
 agreement required or authorised to be referred to 
 arbitration arises between railway administrations, and 
 the railway administrations apply to the Governor- 
 General in Council to have it referred to the Com- 
 missioners ; 
 (c) where any other difference, being a difference between 
 railway administrations, or one to which a railway 
 administration is a party, arises, and the parties thereto 
 apply to the Governor- General in Council to have it 
 referred to the Commissioners ; 
 
 the Governor-General in Council may, if he thinks fit, refer the 
 
 case to the Commissioners for decision. 
 
 29. The three Commissioners shall attend at the hearing of 
 any case referred to them for decision under this Chapter, and the 
 Law Commissioner shall preside at the hearing. 
 
 30. (i) In hearing any such case the Commissioners shall 
 have all the powers which may be exercised in the hearing of an 
 original civil suit by a High Court. 
 
 (2) The decision shall, if the Commissioners differ in opinion, 
 be in accordance with the opinion of the majority, and the final 
 order in the case shall be by way of injunction and not otherwise. 
 
 (3) At the hearing the Commissioners may permit any party 
 to appear before them either by himself or by any legal practitioner 
 entitled to practise in any High Court. 
 
 31. (i) An appeal shall not lie from any order of the Com- 
 missioners upon any question of fact on which two of the 
 Commissioners are agreed. 
 
 (2) Subject to the provisions of sub-section (i), an appeal 
 shall lie from an order of the Commissioners — 
 
 (a) where the Law Commissioner was the Recorder or
 
 APPENDIX B 309 
 
 Additional Recorder of Rangoon, to the High Court of 
 Judicature at Fort WiUiam in Bengal, and 
 {b) in any other case, to the High Court of which the Law 
 Commissioner was a member. 
 
 (3) Such an appeal must be presented within six months from 
 the date of the order appealed from, and shall be heard by a bench 
 of as many judges, not being fewer than three, as the High Court 
 may by rule prescribe. 
 
 (4) In the hearing of the appeal the High Court shall, subject 
 to the other provisions of this Chapter, have all the powers which it 
 has as an Appellate Court under the Code of Civil Procedure, and 
 may make any order which the Commissioners could have made. 
 
 32. Notwithstanding any appeal to the High Court from an 
 order of the Commissioners, the order shall, unless the Com- 
 missioners or the majority of them see fit to suspend it, continue 
 in operation until it is reversed or varied by that Court. 
 
 33. (i) The Commissioners, in the exercise of their jurisdiction 
 under this Chapter, may from time to time, with the general or 
 special sanction of the Governor-General in Council, call in one 
 or more persons of engineering or other technical knowledge to 
 act as assessors. 
 
 (2) There shall be paid to such persons such remuneration as 
 the Governor-General in Council upon the recommendation of the 
 Commissioners may direct. 
 
 34. The Governor-General in Council may make rules regulat- 
 ing proceedings before the Commissioners, and enabling the 
 Commissioners to carry into effect the provisions of this Chapter, 
 and prescribing fees to be taken in relation to proceedings before 
 the Commissioners. 
 
 35. The costs of and incidental to any proceedings before the 
 Commissioners or the High Court under this Chapter shall be in 
 the discretion of the Commissioners or the High Court, as the 
 case may be, and the paym.ent of costs awarded by the Com- 
 missioners may be enforced by the Court of which the Law 
 Commissioner was a judge, as if the payment had been ordered 
 by a decree of a High Court. 
 
 36. (i) The Court of which the Law Commissioner was a 
 judge may, if it appears on the application of any person who
 
 3IO RAILWAY POLICY IN INDIA 
 
 was a party to the proceedings before the Commissioners, or on 
 appeal before the High Court, or of the representativ^e of any such 
 person, that an injunction made under this Chapter by the Com- 
 missioners or by a High Court has not been obeyed by the party 
 enjoined, order such party to pay a sum not exceeding one 
 thousand rupees for every day during which the injunction is 
 disobeyed after the date of the order directing such pay- 
 ment. 
 
 (2) The payment of such sum may be enforced by the Court 
 which made the order as if that Court had given a decree for the 
 same, and the Court may direct that the whole or any part of the 
 sum shall be paid to the person making the application under 
 sub-section ( i ) or to the Government. 
 
 37. A document purporting to be signed by the Commissioners, 
 or any of them, shall be received in evidence without proof of the 
 signature, and shall, until the contrary is proved, be deemed to 
 have been so signed, and to have been duly executed or issued by 
 the Commissioners. 
 
 38. The Commissioners shall, as soon as may be after the 
 disposal of each case referred to them, submit to the Governor- 
 General in Council a special report on the case, and the Governor- 
 General in Council shall cause the report to be pubhshed in such 
 manner as he thinks fit for the information of persons interested 
 in the subject-matter thereof. 
 
 39. Except for the purpose of the last foregoing section, a 
 Railway Commission shall be deemed to be dissolved at the close 
 of the last of the sittings of the Commissioners for the decision of 
 the cases referred to them : — 
 
 Provided that, on the application of any person who was a 
 party to the proceedings before the Commissioners, or of the 
 representative of any such person, the Governor- General in 
 Council may, if he thinks fit, in any case in which the order 
 passed by the Commissioners is not open to appeal, reappoint 
 the Commissioners for the purpose of hearing an application for 
 a review of their decision, and of granting the same and rehearing 
 the case if they think that the case should be reheard. 
 
 40. Subject to the foregoing provisions of this Chapter, and 
 to any direction of Her Majesty in Council, an order of the
 
 APPENDIX B 
 
 3" 
 
 Commissioners shall be final, and shall not be questioned in or 
 restrained by any Court. 
 
 41. Except as provided in this Act, no suit shall be instituted 
 or proceedings taken for anything done or any omission made 
 by a railway administration in violation or contravention of any 
 provision of this Chapter, or of any order made thereunder by the 
 Commissioners or by a High Court. 
 
 Traffic Facilities 
 
 42. (i) Eveiy railway administration shall, according to its 
 powers, afford all reasonable facilities for the receiving, forwarding, 
 and delivering of traffic upon and from the several railways 
 belonging to or worked by it and for the return of rolling-stock. 
 
 (2) A railway administration shall not make or give any undue 
 or unreasonable preference or advantage to or in favour of any 
 particular person or railway administration, or any particular 
 description of traffic, in any respect whatsoever, or subject any 
 particular person or railway administration, or any particular 
 description of traffic, to any undue or unreasonable prejudice or 
 disadvantage in any respect whatsoever. 
 
 (3) A railway administration having or working railways which 
 form part of a continuous line of railway communication, or 
 having its temiinus or station within one mile of the terminus or 
 station of another railway administration, shall afford all due and 
 reasonable facilities for receiving and forwarding by one of such 
 railways all the traffic arriving by the other at such terminus or 
 station without any unreasonable delay, and without any such 
 preference or advantage or prejudice or disadvantage as aforesaid, 
 and so that no obstruction may be offered to the public desirous 
 of using such railways as a corftinuous line of communication, and 
 so that all reasonable accommodation may by means of such rail- 
 ways be at all times afforded to the public in that behalf. 
 
 (4) The facilities to be afforded under this section shall 
 include the due and reasonable receiving, forwarding, and deliver- 
 ing by every railway administration, at the request of any other 
 railway administration, of through traffic to and from the railway 
 of any other railway administration at through rates : —
 
 312 RAILWAY POLICY IN INDIA 
 
 Provided as follows : — 
 
 (a) the railway administration requiring the traffic to be for- 
 warded shall give written notice of the proposed through 
 rate to each forwarding railway administration, stating 
 both its amount and its apportionment, and the route by 
 which the traffic is proposed to be forwarded. The 
 proposed through rate for animals or goods may be per 
 truck or per maund ; 
 
 (d) each forwarding railway administration shall, within the 
 prescribed period after the receipt of such notice, by 
 written notice inform the railway administration requir- 
 ing the traffic to be forwarded whether it agrees to the 
 rate, apportionment, and route, and if it has any 
 objection, what the grounds of the objection are ; 
 
 (c) if at the expiration of the prescribed period no such 
 
 objection has been sent by any forwarding railway 
 administration, the rate shall come into operation at the 
 expiration of that period ; 
 
 (d) if an objection to the rate, apportionment, or route has been 
 
 sent within the prescribed period, the Governor-General 
 in Council may, if he thinks fit, on the request of any 
 of the railway administrations, refer the case to the 
 Commissioners for their decision ; 
 
 (e) if the objection is to the granting of the rate or to the 
 
 route, the Commissioners shall consider whether the 
 granting of the rate is a due and reasonable facility in 
 the interests of the public, and whether, regard being 
 had to the circumstances, the route proposed is a 
 reasonable route, and shall allow or refuse the rate 
 accordingly, or fix such other rate as may seem to the 
 Commissioners to be just and reasonable ; 
 (/) if the objection is only to the apportionment of the rate, 
 and the case has been referred to the Commissioners, 
 the rate shall come into operation at the expiration of 
 the prescribed period, but the decision of the Com- 
 missioners as to its apportionment shall be retrospective : 
 in the case of any other objection the operation of the
 
 APPENDIX B 313 
 
 rate shall be suspended until the Commissioners make 
 their order in the case ; 
 {g) the Commissioners in apportioning the through rate shall 
 take into consideration all the circumstances of the 
 case, including any special expense incurred in respect 
 of the construction, maintenance, or working of the route, 
 or any part of the route, as well as any special charges 
 which any railway administration is entitled to make in 
 respect thereof; 
 {h) the Commissioners shall not in any case compel any rail- 
 way administration to accept lower mileage rates than 
 the mileage rates which the administration may for the 
 time being legally be charging for like traffic carried by 
 a like mode of transit on any other line of communication 
 between the same points, being the points of departure 
 and arrival of the through route ; 
 (/) subject to the foregoing provisions of this sub-section, the 
 Commissioners shall have full power to decide that any 
 proposed through rate is due and reasonable, notwith- 
 standing that a less amount may be allotted to any 
 forwarding railway administration out of the through 
 rate than the maximum rate which the railway adminis- 
 tration is entitled to charge, and to allow and apportion 
 the through rate accordingly ; 
 {j) the prescribed period mentioned in this sub-section shall 
 be one month, or such longer period as the Governor- 
 General in Council may by general or special order 
 prescribe. 
 43. (i) Whenever it is shown that a railway administration 
 charges one trader or class of traders, or the traders in any local 
 area, lower rates for the same or similar animals or goods, or 
 lower rates for the same or similar services, than it charges to 
 other traders or classes of traders, or to the traders in another 
 local area, the burden of proving that such lower charge does not 
 amount to an undue preference shall lie on the railway adminis- 
 tration. 
 
 (2) In deciding whether a lower charge does or does not 
 amount to an undue preference, the Commissioners may, so far
 
 314 RAILWAY POLICY IN IND!A 
 
 as they think reasonable, in addition to any other considerations 
 afifecting the case, take into consideration whether such lower 
 charge is necessary for the purpose of securing, in the interests of 
 the public, the traffic in respect of which it is made. 
 
 44. Where a railway administration is a party to an agree- 
 ment for procuring the traffic of the railway to be carried on any 
 inland water by any ferry, ship, boat, or raft which does not 
 belong to or is not hired or worked by the railway administration, 
 the provisions of the two last foregoing sections applicable to a 
 railway shall extend to the ferry, ship, boat, or raft in so far as it 
 is used for the purposes of the traffic of the railway. 
 
 45. A railway administration may charge reasonable terminals. 
 
 46. (i) The Governor-General in Council may, if he thinks fit, 
 refer to the Commissioners for decision any question or dispute 
 which may arise with respect to the terminals charged by a 
 railway administration, and the Commissioners may thereupon 
 decide what is a reasonable sum to be paid to the railway 
 administration in respect of terminals. 
 
 (2) In deciding the question or dispute the Commissioners 
 shall have regard only to the expenditure reasonably necessary to 
 provide the accommodation in respect of which the terminals are 
 charged, irrespective of the outlay which may have been actually 
 incurred by the railway administration in providing that accom- 
 modation. 
 
 CHAPTER VI 
 
 Working of Railways 
 Ge7ieral 
 
 47. (i) Every railway company and, in the case of a railway 
 administered by the Government, an officer to be appointed by 
 the Governor-General in Council in this behalf, shall make general 
 rules consistent with this Act for the following purposes, namely : — 
 
 {a) for regulating the mode in which and the speed at which 
 rolling-stock used on the railway is to be moved or 
 propelled ; 
 
 {b) for providing for the accommodation and convenience
 
 APPENDIX B 315 
 
 of passengers and regulating the carriage of their 
 luggage ; 
 
 (c) for declaring what shall be deemed to be, for the purposes 
 
 of this Act, dangerous or offensive goods, and for 
 regulating the carriage of such goods ; 
 
 (d) for regulating the conditions on which the railway adminis- 
 
 tration will carry passengers suffering from infectious 
 or contagious disorders, and providing for the disinfection 
 of carriages which have been used by such passengers ; 
 
 (e) for regulating the conduct of the railway servants ; 
 
 (/) for regulating the terms and conditions on which the 
 railway administration will warehouse or retain goods 
 at any station on behalf of the consignee or owner ; and, 
 
 (g-) generally, for regulating the travelling upon, and the use, 
 working, and management of the railway. 
 
 (2) The rules may provide that any person committing a 
 breach of any of them shall be punished with fine which may 
 extend to any sum not exceeding fifty rupees, and that, in the case 
 of a rule made under clause {e) of sub-section (i), the railway 
 sen-ant shall forfeit a sum not exceeding one month's pay, which 
 sum may be deducted by the railway administration from his pay. 
 
 (3) A rule made under this section shall not take effect until 
 it has received the sanction of the Governor-General in Council, 
 and been published in the Gazette of India. 
 
 Provided that, where the rule is in the terms of a rule which 
 has already been published at length in the Gazette of India, a 
 notification in that Gazette referring to the rule already published 
 and announcing the adoption thereof shall be deemed a publication 
 of a rule in the Gazette of India within the meaning of this sub- 
 section. 
 
 (4) The Governor-General in Council may cancel any rule 
 made under this section, and the authority required by sub-section 
 ( I ) to make rules thereunder may at any time, with the previous 
 sanction of the Governor-General in Council, rescind or vary any* 
 such rule. 
 
 (5) Every rule purporting to have been made for any railway 
 under section 8 of the Indian Railway Act, 1879, and appearing 
 from the Gazette of India to be intended to apply to the railway
 
 3i6 RAILWAY POLICY IN INDIA 
 
 at the commencement of this Act, shall, notwithstanding any 
 irregularity in the making or publication of the rule, be deemed 
 to have been made and to have taken effect under this section. 
 
 (6) Every railway administration shall keep at each station on 
 its railway a copy of the general rules for the time being in force 
 under this section on the railway, and shall allow any person to 
 inspect it free of charge at all reasonable times. 
 
 48. Where two or more railway administrations, whose railways 
 have a common terminus or a portion of the same line of rails in 
 common, or form separate portions of one continued line of rail- 
 way communication, are not able to agree upon arrangements for 
 conducting at such common terminus, or at the point of junction 
 between them, their joint traffic with safety to the public, the 
 Governor -General in Council, upon the application of either or 
 any of the administrations, may decide the matters in dispute 
 between them, so far as those matters relate to the safety of the 
 public, and may determine whether the whole or what proportion 
 of the expenses attending on such arrangements shall be borne by 
 either or any of the administrations respectively. 
 
 49. Any railway company, not being a company for which 
 the Statute 42 and 43 Victoria, chapter 41, provides, may from 
 time to time make and carry into effect agreements with the 
 Governor-General in Council for the construction of rolling- 
 stock, plant, or machinery used on or in connection with rail- 
 ways, or for leasing or taking on lease any rolling-stock, plant, 
 machinery, or equipments required for use on a railway, or for 
 the maintenance of rolling-stock. 
 
 50. Any railway company, not being a company for which 
 the Statute 42 and 43 Victoria, chapter 41, provides, may from 
 time to time make with the Governor-General in Council, and 
 carry into effect, or, with the sanction of the Governor-General 
 in Council, make with any other railway administration, and 
 carry into effect, any agreement with respect to any of the fol- 
 lowing purposes, namely : — 
 
 (a) the working, use, management, and maintenance of any 
 
 railway ; 
 {d) the supply of rolling-stock and machinery necessary for 
 
 any of the purposes mentioned in clause (a), and of
 
 APPENDIX B 
 
 317 
 
 officers and servants for the conduct of the traffic of 
 the railway ; 
 {c) the payments to be made and the conditions to be per- 
 formed with respect to such working, use, management, 
 and maintenance ; 
 {d) the interchange, accommodation, and conveyance of 
 traffic being on, coming from, or intended for the re- 
 spective railways of the contracting parties, and the 
 fixing, collecting, apportionment, and appropriation of 
 the revenues arising from that traffic ; 
 {e) generally, the giving effect to any such provisions or 
 stipulations with respect to any of the purposes herein- 
 before in this section mentioned as the contracting 
 parties may think fit and mutually agree on : 
 Provided that the agreement shall not affect any of the rates 
 which the railway administrations parties thereto are from time to 
 time respectively authorised to demand and receive from any per- 
 son, and that every person shall, notwithstanding the agreement, 
 be entitled to the use and benefit of the railways of any railway 
 administrations, parties to the agreement, on the same terms and 
 conditions, and on payment of the same rates, as he would be if 
 the agreement had not been entered into. 
 
 51. Any railway company, not being a company for which the 
 Statute 42 and 43 Victoria, chapter 41, provides, may from time 
 to time exercise with the sanction of the Governor-General in 
 Council all or any of the following powers, namely : — 
 
 {a) it may establish, for the accommodation of the traffic of 
 its railway, any ferry equipped with machinery and 
 plant of good quality and adequate in quantity to work 
 the ferry ; 
 {b) it may work for purposes other than the accommodation 
 of the traffic of the railway any ferry established by it 
 under this section ; 
 (r) it may provide and maintain on any of its bridges road- 
 ways for foot-passengers, cattle, carriages, carts, or 
 other traffic ; 
 {d) it may construct and maintain roads for the accommoda- 
 tion of traffic passing to or from its railway ;
 
 3i8 RAILWAY POLICY IN INDIA 
 
 {e) it may provide and maintain any means of transport 
 which may be required for the reasonable convenience 
 of passengers, animals, or goods carried or to be 
 carried on its railway ; 
 {/) it may charge tolls on the trafific using such ferries, road- 
 ways, roads, or means of transport as it may provide 
 under this section, according to tariffs to be arranged 
 from time to time with the sanction of the Governor- 
 General in Council. 
 52. Every railway administration shall, in forms to be pre- 
 scribed by the Governor-General in Council, prepare half-yearly, 
 or at such intervals as the Governor-General in Council may 
 prescribe, such returns of its capital and revenue transactions 
 and of its traffic as the Governor-General in Council may require, 
 and shall forward a copy of such returns to the Governor-General 
 in Council at such times as he may direct. 
 
 Carnage of Property 
 
 53. (i) Every railway administration shall determine the 
 maximum load for every waggon or truck in its possession, and 
 shall exhibit the words or figures representing the load so deter- 
 mined in a conspicuous manner on the outside of every such 
 waggon or truck. 
 
 (2) Every person owning a waggon or truck which passes over 
 a railway shall similarly determine and exhibit the maximum load 
 for the waggon or truck. 
 
 (3) The gross weight of any such waggon or truck bearing on 
 the axles when the waggon or truck is loaded to such maximum 
 load shall not exceed such limit as may be fixed by the Governor- 
 General in Council for the class of axle under the waggon or 
 truck. 
 
 54. (i) Subject to the control of the Governor-General in 
 Council, a railway administration may impose conditions, not in- 
 consistent with this Act, or with any general rule thereunder, 
 with respect to the receiving, forwarding, or delivering of any 
 animals or goods. 
 
 (2) The railway administration shall keep at each station on 
 its railway a copy of the conditions for the time being in force
 
 APPENDIX B 
 
 319 
 
 under sub-section (i) at the station, and shall allow any person 
 to inspect it free of charge at all reasonable times. 
 
 (3) A railway administration shall not be bound to carry any 
 animal suffering from any infectious or contagious disorder. 
 
 55. (i) If a person fails to pay on demand made by or on 
 behalf of a railway administration any rate, terminal, or other 
 charge due from him in respect of any animals or goods, the rail- 
 way administration may detain the whole or any of the animals 
 or goods, or, if they have been removed from the railway, any 
 other animals or goods of such person then being in or thereafter 
 coming into its possession. 
 
 (2) When any animals or goods have been detained under 
 sub-section (i), the railway administration may sell by public 
 auction, in the case of perishable goods at once, and in the case 
 of other goods or of animals, on the expiration of at least fifteen 
 days' notice of the intended auction, published in one or more of 
 the local newspapers, or where there are no such newspapers, in 
 such manner as the Governor-General in Council may prescribe, 
 sufficient of such animals or goods to produce a sum equal to 
 the charge, and all expenses of such detention, notice, and sale, 
 including, in the case of animals, the expenses of the feeding, 
 watering, and tending thereof. 
 
 (3) Out of the proceeds of the sale the railway administration 
 may retain a sum equal to the charge and the expenses afore- 
 said, rendering the surplus, if any, of the proceeds, and such of 
 the animals or goods (if any) as remain unsold, to the person 
 entitled thereto. 
 
 (4) If a person on whom a demand for any rate, terminal, or 
 other charge due from him has been made, fails to remove from 
 the railway within a reasonable time any animals or goods which 
 have been detained under sub-section (i), or any animals or 
 goods which have remained unsold after a sale under sub- 
 section (2), the railway administration may sell the whole of 
 them, and dispose of the proceeds of the sale as nearly as may 
 be under the provisions of sub-section (3). 
 
 (5) Notwithstanding anything in the foregoing sub-sections, 
 the railway administration may recover by suit any such rate, 
 terminal, or other charge as aforesaid or balance thereof.
 
 320 RAILWAY POLICY IN INDIA 
 
 56. (i) When any animals or goods have come into the pos- 
 session of a raihvay administration for carriage or otherwise, and 
 are not claimed by the owner or other person appearing to the 
 railway administration to be entitled thereto, the railway adminis- 
 tration shall, if such owner or person is known, cause a notice to 
 be served upon him requiring him to remove the animals or 
 goods. 
 
 (2) If such owner or person is not known, or the notice 
 cannot be served upon him, or he does not comply with the 
 requisition in the notice, the railway administration may within 
 a reasonable time, subject to the provisions of any other enact- 
 ment for the time being in force, sell the animals or goods as 
 nearly as may be under the provisions of the last foregoing sec- 
 tion, rendering the surplus, if any, of the proceeds of the sale to 
 any person entitled thereto. 
 
 57. Where any animals, goods, or sale-proceeds in the pos- 
 session of a railway administration are claimed by two or more 
 persons, or the ticket or receipt given for the animals or goods is 
 not forthcoming, the railway administration may withhold delivery 
 of the animals, goods, or sale-proceeds until the person entitled 
 in its opinion to receive them has given an indemnity, to the 
 satisfaction of the raihvay administration, against the claims 
 of any other person with respect to the animals, goods, or sale- 
 proceeds. 
 
 58. (i) The owner or person having charge of any goods 
 which are brought upon a railway for the purpose of being 
 carried thereon, and the consignee of any goods which have been 
 carried on a railway, shall, on the request of any railway servant 
 appointed in this behalf by the railway administration, deliver to 
 such servant an account in writing signed by such owner or 
 person, or by such consignee, as the case may be, and containing 
 such a description of the goods as may be sufficient to determine 
 the rate which the railway administration is entitled to charge in 
 respect thereof. 
 
 (2) If such owner, person, or consignee refuses or neglects to 
 give such an account, and refuses to open the parcel or package 
 containing the goods in order that their description may be 
 ascertained, the railway administration may (a) in respect of
 
 APPENDIX B 
 
 321 
 
 goods which have been brought for the purpose of being carried 
 on the railway, refuse to carry the goods unless in respect thereof 
 a rate is paid not exceeding the highest rate which may be in 
 force at the time on the railway for any class of goods, or {b) in 
 respect of goods which have been carried on the railway, charge 
 a rate not exceeding such highest rate. 
 
 (3) If an account delivered under sub-section (i) is materi- 
 ally false with respect to the description of any goods to which it 
 purports to relate, and which have been carried on the railway, 
 the railway administration may charge in respect of the carriage 
 of the goods a rate not exceeding double the highest rate which 
 may be in force at the time on the railway for any class of 
 goods. 
 
 (4) If any difference arises between a railway servant and the 
 owner or person having charge, or the consignee, of any goods 
 which have been brought to be carried or have been carried on 
 a railway, respecting the description of goods of which an 
 account has been delivered under this section, the railway servant 
 may detain and examine the goods. 
 
 (5) If it appears from the examination that the description of 
 the goods is different from that stated in an account delivered 
 under sub-section (i), the person who delivered the account, or 
 if that person is not the owner of the goods, then that person 
 and the owner jointly and severally, shall be liable to pay to the 
 railway administration the cost of the detention and examination 
 of the goods, and the railway administration shall be exonerated 
 from all responsibility for any loss which may have been caused 
 by the detention or examination thereof 
 
 (6) If it appears that the description of the goods is not 
 different from that stated in an account delivered under sub- 
 section (i), the railway administration shall pay the cost of the 
 detention and examination, and be responsible to the owner of 
 the goods for any such loss as aforesaid. 
 
 59. (i) No person shall be entitled to take with him, or to 
 require a railway administration to carry, any dangerous or 
 offensive goods upon a railway. 
 
 (2) No person shall take any such goods with him upon a rail- 
 way without giving notice of their nature to the station-master, 
 
 Y
 
 322 RAILWAY POLICY IN INDIA 
 
 or other railway servant in charge of the place where he brings 
 the goods upon the raihvay, or shall tender or deliver any such 
 goods for carriage upon a raihvay without distinctly marking 
 their nature on the outside of the package containing them, 
 or othenvise giving notice in writing of their nature to the 
 railway servant to whom he tenders or delivers them. 
 
 (3) Any railway servant may refuse to receive such goods 
 for carriage, and, when such goods have been so received with- 
 out such notice as is mentioned in sub-section (i) having to his 
 knowledge been given, may refuse to cany them, or may stop 
 their transit. 
 
 (4) If any railway servant has reason to believe any such 
 goods to be contained in a package with respect to the con- 
 tents whereof such notice as is mentioned in sub-section (2) 
 has not to his knowledge been given, he may cause the 
 package to be opened for the purpose of ascertaining its 
 contents. 
 
 (5) Nothing in this section shall be construed to derogate 
 from the Indian Explosives Act, 1884, or any rule under that 
 Act, and nothing in sub-sections (i), (3), and (4) shall be con- 
 strued to apply to any goods tendered or delivered for carriage 
 by order or on behalf of the Government, or to any goods which 
 an officer, soldier, sailor, or police-officer, or a person enrolled 
 as a volunteer under the Indian Volunteers Act, 1869, may take 
 with him upon a railway in the course of his employment or 
 duty as such. 
 
 60. At every station at which a railway administration quotes 
 a rate to any other station for the carriage of traffic other than 
 passengers and their luggage, the railway servant appointed by 
 the administration to quote the rate shall, at the request of any 
 person, show to him at all reasonable times, and without payment 
 of any fee, the rate-books or other documents in which the rate 
 is authorised by the administration or administrations con- 
 cerned. 
 
 61. (i) Where any charge is made by and paid to a railway 
 administration in respect of the carriage of goods over its railway, 
 the administration shall, on the application of the person by whom 
 or on whose behalf the charge has been paid, render to the
 
 APPENDIX B 
 
 323 
 
 applicant an account showing how much of the charge comes 
 under each of the following heads, namely : — 
 
 (a) the carriage of the goods on the railway ; 
 
 (d) terminals ; 
 
 (c) demurrage ; and 
 
 (d) collection, delivery, and ether expenses ; but without par- 
 
 ticularising the several items of which the charge under 
 
 each head consists. 
 (2) The application under sub-section (i) must be in writing, 
 and be made to the railway administration within one month 
 after the date of the payment of the charge by or on behalf of the 
 applicant, and the account must be rendered by the administra- 
 tion within two months after the receipt of the application. 
 
 Carriage of Passengers 
 
 62. The Governor-General in Council may require any rail- 
 way administration to provide and maintain in proper order, in 
 any train worked by it which carries passengers, such efficient 
 means of communication between the passengers and the railway 
 servants in charge of the train as the Governor-General in Council 
 has approved. 
 
 63. Every railway administration shall fix, subject to the 
 approval of the Governor-General in Council, the maximum 
 number of passengers which may be cai-ried in each compartment 
 of every description of carriage, and shall exhibit the number so 
 fixed in a conspicuous manner inside or outside each compart- 
 ment, in English or in one or more of the vernacular languages 
 in common use in the territory traversed by the railway, or both 
 in English and in one or more of such vernacular languages, as 
 the Governor-General in Council, after consultation with the rail- 
 way administration, may determine. 
 
 64. (i) On and after the first day of January', 1891, every 
 railway administration shall in every train carrying passengers re- 
 serve for the exclusive use of females one compartment at least of 
 the lowest class of carriage forming part of the train. 
 
 (2) One such compartment so reserved shall, if the train is to 
 run for a distance exceeding fifty miles, be provided with a closet. 
 
 65. Every railway administration shall cause to be posted in
 
 324 RAILWAY POLICY IN INDIA 
 
 a conspicuous and accessible place at every station on its raihvaj^ 
 in English and in a vernacular language in common use in the 
 territory where the station is situate, a copy of the time-tables for 
 the time being in force on the railway, and lists of the fares 
 chargeable for travelling from the station where the lists are 
 posted to every place for which card-tickets are ordinarily issued 
 to passengers at that station. 
 
 66. (i) Every person desirous of travelling on a railway shall, 
 upon payment of his fare, be supplied with a ticket, specifying the 
 class of carriage for which, and the place from and the place to 
 which the fare has been paid, and the amount of the fare. 
 
 (2) The matters required by sub-section (i) to be specified on 
 a ticket shall be set forth — 
 
 {a) if the class of carriage to be spec fied thereon is the lowest 
 class, then in a vernacular language in common use in 
 the territory traversed by the railway, and 
 
 {b) if the class of carriage to be so specified is any other than 
 the lowest class, then in English. 
 
 67. (i) Fares shall be deemed to be accepted, and tickets to 
 be issued, subject to the condition of there being room available 
 in the train for which the tickets are issued. 
 
 (2) A person to whom a ticket has been issued and for whom 
 there is not room available in the train for which the ticket was 
 issued, shall on returning the ticket within three hours after the 
 departure of the train be entitled to have his fare at once re- 
 funded. 
 
 (3) A person for whom there is not room available in the class 
 of carriage for which he has purchased a ticket, and who is obliged 
 to travel in a carriage of a lower class, shall be entitled on deliver- 
 ing up his ticket to a refund of the difference between the fare 
 paid by him and the fare payable for the class of carriage in 
 which he travelled. 
 
 68. No person shall, without the permission of a railway ser- 
 vant, enter any carriage on a railway for the purpose of travelling 
 therein as a passenger unless he has with him a proper pass or 
 ticket. 
 
 69. Every passenger by railway shall, on the requisition ot 
 any railway servant appointed by the railway administration in
 
 APPENDIX B 
 
 325 
 
 this behalf, present his pass or ticket to the railway servant for 
 examination, and at or near the end of the journey for which the 
 pass or ticket was issued, or, in the case of a season pass or ticket, 
 at the expiration of the period for which it is current, deliver up 
 the pass or ticket to the railway servant. 
 
 70. A return ticket or season ticket shall not be transferable, 
 and may be used only by the person for whose journey to and 
 from the places specified thereon it was issued. 
 
 71. (i) A railway administration may refuse to carry, except 
 in accordance with the conditions prescribed under section 47, 
 sub-section (i), clause ((f), a person suffering from any infectious 
 or contagious disorder. 
 
 (2) A person suffering from such a disorder shall not enter or 
 travel upon' a railway without the special permission of the station- 
 master or other railway servant in charge of the place where he 
 enters upon the railway. 
 
 (3) A railway servant giving such permission as is mentioned 
 in sub-section (2) must arrange for the separation of the person 
 suffering from the disorder from other persons being or travelling 
 upon the railway. 
 
 CHAPTER VII 
 Responsibility of Railway Administrations as Carriers 
 
 72. (i) The responsibility of a railway administration for the 
 loss, destruction, or deterioration of animals or goods delivered to 
 the administration to be carried by railway shall, subject to the 
 other provisions of this Act, be that of a bailee under sections 
 151, 152, and 161 of the Indian Contract Act, 1872. 
 
 (2) An agreement purporting to limit that responsibility shall, 
 in so far as it purports to effect such limitation, be void unless 
 it — 
 
 (a) is in writing signed by or on behalf of the person sending 
 or delivering to the railway administration the animals 
 or goods, and 
 
 (3) is otherwise in a form approved by the Go\ernor-General 
 
 in Council.
 
 326 RAILWAY POLICY IN INDIA 
 
 (3) Nothing in the common law of England or in the Carriers 
 Act, 1865, regarding the responsibility of common carriers with 
 respect to the carriage of animals or goods, shall affect the re- 
 sponsibility as in this section defined of a railway administration. 
 
 73. (i) The responsibility of a railway administration under 
 the last foregoing section for the loss, destruction, or deterioration 
 of animals delivered to the administration to be carried on a rail- 
 way shall not in any case exceed, in the case of elephants or 
 horses, five hundred rupees a head, or in the case of camels or 
 horned cattle, fifty rupees a head, or in the case of sheep, goats, 
 dogs, or other animals, ten rupees a head, unless the person send- 
 ing or delivering them to the administration caused them to be 
 declared, or declared them, at the time of their delivery for car- 
 riage by railway to be respectively of higher value than five 
 hundred, fifty, or ten rupees a head, as the case may be. 
 
 (2) Where such higher value has been declared, the railway 
 administration may charge, in respect of the increased risk, a per- 
 centage upon the excess of the value so declared over the respec- 
 tive sums aforesaid. 
 
 (3) In every proceeding against a railway administration for 
 the recovery of compensation for the loss, destruction, or deteriora- 
 tion of any animal, the burden of proving the value of the animal 
 and, where the animal has been injured, the extent of the injury 
 shall lie upon the person claiming the compensation. 
 
 74. A railway administration shall not be responsible for the 
 loss, destruction, or deterioration of any luggage belonging to or 
 in charge of a passenger unless a railway servant has booked and 
 given a receipt therefor. 
 
 75. (i) When any articles mentioned in the second schedule 
 are contained in any parcel or package delivered to a railway ad- 
 ministration for carriage by railway, and the value of such articles 
 in the parcel or package exceeds one hundred rupees, the railway 
 administration shall not be responsible for the loss, destruction, or 
 deterioration of the parcel or package unless the person sending 
 or delivering the parcel or package to the administration caused 
 its value and contents to be declared, or declared them at the 
 time of the delivery of the parcel or package for carriage by rail- 
 way, and if so required by the administration, paid or engaged to
 
 APPENDIX B 327 
 
 pay a percentage on the value so declared by way of compensa- 
 tion for increased risk. 
 
 (2) When any parcel or package of which the value has been 
 declared under sub-section (i) has been lost or destroyed, or has 
 deteriorated, the compensation recoverable in respect of such loss, 
 destruction, or deterioration shall not exceed the value so declared, 
 and the burden of proving the value so declared to have been the 
 true value shall, notwithstanding anything in the declaration, lie 
 on the person claiming the compensation. 
 
 (3) A railway administration may make it a condition of carry- 
 ing a parcel declared to contain any article mentioned in the 
 second schedule, that a railway servant authorised in this behalf 
 has been satisfied by examination or otherwise that the parcel 
 actually contains the article declared to be therein. 
 
 76. In any suit against a railway administration for compensa- 
 tion for loss, destruction, or deterioration of animals or goods 
 delivered to a railway administration for carriage by railway, it 
 shall not be necessary for the plaintiff to prove how the loss, 
 destruction, or deterioration was caused. 
 
 77. A person shall not be entitled to a refund of an overcharge 
 in respect of animals or goods carried by railway, or to compensa- 
 tion for the loss, destruction, or deterioration of animals or goods 
 delivered to be so carried, unless his claim to the refund or com- 
 pensation has been preferred in writing by him or on his behalf 
 to the railway administration within six months from the date of 
 the delivery of the animals or goods for carriage by railway. 
 
 78. Notwithstanding anything in the foregoing provisions of 
 this Chapter, a railway administration shall not be responsible for 
 the loss, destruction, or deterioration of any goods with respect to 
 the description of which an account materially false has been 
 delivered under sub-section (i) of section 58 if the loss, destruc- 
 tion, or deterioration is in any way brought about by the false 
 account, nor in any case for an amount exceeding the value of the 
 goods if such \alue were calculated in accordance with the de- 
 scription contained in the false account. 
 
 79. Where an officer, soldier, or follower, while being or 
 travelling as such on duty upon a railway belonging to, and 
 worked by the Government, loses his life or receives any personal
 
 32S RAILWAY POLICY IN INDIA 
 
 injury in such circumstances that if he were not an officer, soldier, 
 or follower being or travelling as such on duty upon the railway, 
 compensation would be payable under Act No. XIII. of 1855 or 
 to him, as the case may be, the form and amount of the compen- 
 sation to be made in respect of the loss of his life or his injury 
 shall, where there is any provision in this behalf in the military 
 regulations to which he was immediately before his death, or is 
 subject, be determined in accordance with those regulations, and 
 not otherwise. 
 
 80. Notwithstanding anything in any agreement purporting to 
 limit the liability of a railway administration with respect to 
 traffic while on the railway of another administration, a suit for 
 compensation for loss of the life of, or personal injury to, a 
 passenger, or for loss, destruction, or deterioration of animals or 
 goods, where the passenger was or the animals or goods were 
 booked through over the railways of two or more railway 
 administrations, may be brought either against the railway 
 administration from which the passenger obtained his pass or 
 purchased his ticket, or to which the animals or goods were 
 delivered by the consignor thereof, as the case may be, or against 
 the railway administration on whose railway the loss, injury, 
 destruction, or deterioration occurred. 
 
 81. Where a railway administration under contract to carry 
 animals or goods by any inland water procures the same to be 
 carried in a vessel which is not a railway as defined in this Act, 
 the responsibility [of the railway administration for the loss, 
 destruction, or deterioration of the animals or goods during their 
 carriage in the vessel shall be the same as if the vessel were such 
 a railway. 
 
 82. (i) When a railway administration contracts to carry 
 passengers, animals, or goods partly by railway and partly by sea, 
 a condition exempting the railway administration from respon- 
 sibility for any loss of life, personal injury, or loss of or damage to 
 animals or goods, which may happen during the carriage by sea 
 from the act of God, the King's enemies, fire, accidents from 
 machinery, boilers and steam, and all and every other dangers and 
 accidents of the seas, rivers, and navigation of whatever nature and 
 kind soever, shall, without being expressed, be deemed to be part
 
 APPENDIX B 329 
 
 of the contract, and, subject to that condition, the railway 
 administration shall, irrespective of the nationality or ownership 
 of the ship used for the carriage by sea, be responsible for any 
 loss of life, personal injury, or loss of or damage to animals or 
 goods which may happen during the carriage by sea, to the 
 extent to which it would be responsible under the Merchant 
 Shipping Act, 1854, and the Merchant Shipping Act Amendment 
 Act, 1862, if the ship were registered under the former of those 
 Acts, and the railway administration were owner of the ship, and 
 not to any greater extent. 
 
 (2) The burden of proving that any such loss, injury, or 
 damage as is mentioned in sub-section (i) happened during the 
 carriage by sea shall lie on the railway administration. 
 
 CHAPTER VIII 
 
 Accidents 
 
 83. When any of the following accidents occurs in the course 
 of working a railway, namely : — 
 
 (a) any accident attended with loss of human life, or with 
 grievous hurt as defined in the Indian Penal Code, or 
 with serious injury to property ; 
 
 {/>) any collision between trains of which one is a train carry- 
 ing passengers ; 
 
 (c) the derailment of any train carrying passengers, or of 
 
 any part of such a train ; 
 
 (d) any accident of a description usually attended with loss of 
 
 human life, or with such grievous hurt as aforesaid, or 
 with serious injury to property ; 
 (c) any accident of any other description which the Governor- 
 General in Council may notify in this behalf in the 
 Gazette of India ; 
 the railway administration working the railway and, if the accident 
 happens to a train belonging to any other railway administration, 
 the other railway administration also shall, without unnecessary 
 delay, send notice of the accident to the local Government and
 
 330 RAILWAY POLICY IN INDIA 
 
 to the Inspector appointed for the railway ; and the station- 
 master nearest to the place at which the accident occurred or, 
 where there is no station-master, the railway servant in charge of 
 the section of the railway on which the accident occurred shall, 
 without unnecessary delay, give notice of the accident to the 
 Magistrate of the district in which the accident occurred, and to 
 the officer in charge of the police-station within the local limits 
 of which it occurred, or to such other Magistrate and police- 
 officer as the Governor - General in Council appoints in this 
 behalf. 
 
 84. The Governor - General in Council may make rules, 
 consistent with this Act and any other enactment for the time 
 being in force, for all or any of the following purposes, namely : — 
 
 (a) for prescribing the forms of the notices mentioned in the 
 last foregoing section and the particulars of the accident 
 which those notices are to contain ; 
 
 (d) for prescribing the class of accidents of which notice is to 
 be sent by telegraph immediately after the accident has 
 occurred ; 
 
 (c) for prescribing the duties of railway servants, police- 
 officers. Inspectors, and Magistrates on the occurrence 
 of an accident. 
 
 85. Every railway administration shall send to the Governor- 
 General in Council a return of accidents occurring upon its railway, 
 whether attended with personal injury or not, in such form and 
 manner and at such intervals of time as the Governor-General in 
 Council directs. 
 
 86. Whenever any person injured by an accident on a railway 
 claims compensation on account of the injury, any Court or 
 person having by law or consent of parties authority to determine 
 the claim may order that the person injured be examined by some 
 duly qualified medical practitioner named in the order, and not 
 being a witness on either side, and may make such order with 
 respect to the costs of the examination as it or he thinks fit.
 
 APPENDIX B 331 
 
 CHAPTER IX 
 Penalties and Offences 
 
 Forfeitu7-es by Railway Companies 
 
 87. If a railway company fails to comply with any requisition 
 made under section 1 3, it shall forfeit to the Government the sum 
 of two hundred rupees for the default, and a further sum of fifty 
 rupees for every day after the first during which the default 
 continues. 
 
 88. If a railway company moves any rolling-stock upon a 
 railway by steam or other motive power in contravention of 
 section 16, sub-section (2), or opens or uses any railway or work 
 in contravention of section 18, section 19, section 20, or section 
 21, or re-opens any railway or uses any rolling-stock in con- 
 travention of section 24, it shall forfeit to the Government the 
 sum of two hundred rupees for every day during which the motive 
 power, railway, work, or rolling-stock is used in contravention of 
 any of those sections. 
 
 89. If a railway company fails to comply with the provisions 
 of section 47, sub-section (6), section 54, sub-section (2), or 
 section 65, with respect to the books or other documents to be 
 kept open to inspection or conspicuously posted at stations on its 
 railway, it shall forfeit to the Government the sum of fifty rupees 
 for every day during which the default continues. 
 
 90. If a railway company fails to comply with the provisions 
 of section 47 with respect to the making of general rules, it shall 
 forfeit to the Government the sum of fifty rupees for every day 
 during which the default continues. 
 
 91. If a railway company refuses or neglects to comply with 
 any decision of the Governor-General in Council under section 48, 
 it shall forfeit to the Government the sum of two hundred rupees 
 for every day during which the refusal or neglect continues. 
 
 92. If a railway company fails to comply with the provisions 
 of section 52, or section 85 with respect to the submission of any 
 return, it shall forfeit to the Government the sum of fifty rupees 
 for every day during which the default continues after the
 
 332 RAILWAY POLICY IN INDIA 
 
 fourteenth day from the date prescribed for the submission of the 
 return. 
 
 93. If a raihvay company contravenes the provisions of section 
 53 or section 63, with respect to the maximum load to be carried 
 in any waggon or truck, or the maximum number of passengers 
 to be carried in any compartment, or the exhibition of such load 
 on the waggon or truck, or of such number in or on the com- 
 partment, or knowingly suffers any person owning a waggon or 
 truck passing over its railway to contravene the provisions of the 
 former of those sections, it shall forfeit to the Government the 
 sum of twenty rupees for every day during which either section 
 is contravened. 
 
 94. If a railway company fails to comply with any requisition 
 of the Governor-General in Council under section 62 for the pro- 
 vision and maintenance in proper order, in any train worked by it 
 which carries passengers, of such efficient means of communication 
 as the Governor- General in Council has approved, it shall for- 
 feit to the Government the sum of twenty rupees for each train run 
 in disregard of the requisition. 
 
 95. If a railway company fails to comply with the recjuirements 
 of section 64 with respect to the reservation of compartments for 
 females, or the provision of closets therein, it shall forfeit to the 
 Government the sum of twenty rupees for every train in respect 
 of which the default occurs. 
 
 96. If a railway company omits to give such notice of an 
 accident as is required by section 83 and the rules for the time 
 being in force under section 84, it shall forfeit to the Government 
 the sum of one hundred rupees for every day during which the 
 omission continues. 
 
 97. (i) When a railway company has, through any act or 
 omission, forfeited any sum to the Government under the foregoing 
 provisions of this Chapter, the sum shall be recoverable by suit in 
 the District Court having jurisdiction in the place where the act 
 or omission or any part thereof occurred. 
 
 (2) The suit must be instituted with the previous sanction of 
 the Governor-General in Council, and the plaintiff therein shall 
 be the Secretary of State for India in Council. 
 
 (3) The (jOvernor-Gcncral in Council may remit the whole or
 
 APPENDIX B 333 
 
 any part of any sum forfeited by the railway company to the 
 Government under the foregoing provisions of this Chapter. 
 
 98. Nothing in those provisions shall be construed to preclude 
 the Government from resorting to any other mode of proceeding 
 instead of, or in addition to, such a suit as is mentioned in the 
 last foregoing section, for the purpose of compelling a railway 
 company to discharge any obligation imposed upon it by this Act. 
 
 Offe7ices by Railway Servants 
 
 99. If a railway servant whose duty it is to comply with the 
 provisions of section 6o negligently or wilfully omits to comply 
 therewith, he shall be punished with fine which may extend to 
 twenty rupees. 
 
 100. If a railway servant is in a state of intoxication while on 
 duty, he shall be punished with fine which may extend to fifty 
 rupees, or where the improper performance of the duty would be 
 likely to endanger the safety of any person travelling or being 
 upon a railway, with imprisonment for a term which may extend 
 to one year, or with fine, or with both. 
 
 101. If a railway servant, when on duty, endangers the safety 
 of any person — 
 
 {a) by disobeying any general rule made, sanctioned, pub- 
 lished, and notified under this Act ; or 
 ip) by disobeying any rule or order which is not inconsistent 
 with any such general rule, and which such servant 
 was bound by the terms of his employment to obey, 
 and of which he had notice ; or 
 {c) by any rash or negligent act or omission, 
 he shall be punished with imprisonment for a term which 
 may extend to two years, or with fine which may extend to 
 five hundred rupees, or with both. 
 
 102. If a railway servant compels, or attempts to compel, or 
 causes any passenger to enter a compartment which already 
 contains the maximum number of passengers exhibited therein or 
 thereon under section 63, he shall be punished with fine which 
 may extend to twenty rupees. 
 
 103. If a station-master or a railway servant in charge of a 
 section of a railway omits to give such notice of an accident as
 
 334 RAILWAY POLICY IN INDIA 
 
 is required by section 83, and the rules for the time being in 
 force under section 84, he shall be punished with fine which 
 may extend to fifty rupees. 
 
 104. If a railway servant unnecessarily — 
 
 {a) allows any rolling-stock to stand across a place where 
 the railway crosses a public road on the level ; or 
 
 (1^) keeps a level-crossing closed against the public, 
 he shall be punished with fine which may extend to twenty 
 rupees. 
 
 105. If any return which is required by this Act is false in 
 any particular to the knowledge of any person who signs it, that 
 person shall be punished with fine which may extend to five 
 hundred rupees, or with imprisonment \\'hich may extend to 
 one year, or with both. 
 
 OtJicr Offences 
 
 106. If a person requested under section 28 to give an 
 account with respect to any goods gives an account which is 
 materially false, he, and if he is not the owner of the goods, 
 the owner also shall be punished with fine, which may extend 
 to ten rupees for every maund or part of a maund of the goods, 
 and the fine shall be in addition to any rate or other charge to 
 which the goods may be liable. 
 
 107. If in contravention of section 59 a person takes with 
 him any dangerous or offensive goods upon a railway, or tenders 
 or delivers any such goods for carriage upon a railway, he shall 
 be punished with fine which may extend to five hundred rupees, 
 and shall also be responsible for any loss, injury, or damage 
 which may be caused by reason of such goods having been so 
 brought upon the railway. 
 
 108. If a passenger, without reasonable and sufficient cause, 
 makes use of, or interferes with, any means provided by a 
 railway administration for communication between passengers 
 and the railway servants in charge of a train, he shall be 
 punished with fine which may extend to fifty rupees. 
 
 109. (i) If a passenger, having entered a compartment 
 which is reserved Ijy a railway administration for the use of 
 another passenger, or which already contains the maximum
 
 APPENDIX B 335 
 
 number' of passengers exhibited therein or thereon under section 
 63, refuses to leave it when required to do so by any railway 
 servant, he shall be punished with fine which may extend to 
 twenty rupees. 
 
 (2) If a passenger resists the lawful entry of another pas- 
 senger into a compartment not reserved by the railway adminis- 
 tration for the use of the passenger resisting, or not already 
 containing the maximum number of passengers exhibited therein 
 or thereon under section 63, he shall be punished with fine 
 which may extend to twenty rupees. 
 
 110. (i) If a person, without the consent of his fellow- 
 passengers, if any, in the same compartment, smokes in any 
 compartment except a compartment specially provided for the 
 purpose, he shall be punished with fine which may extend to 
 twenty rupees. 
 
 (2) If any person persists in so smoking after being warned 
 by any railway servant to desist, he may, in addition to incur- 
 ring the liability mentioned in sub-section (i), be removed by 
 any railway servant from the carriage in which he is travelling. 
 
 111. If a person, without authority in this behalf, pulls down 
 or wilfully injures any board or document set up or posted by 
 order of a railway administration on a railway, or any rolling- 
 stock, or obliterates or alters any of the letters or figures upon 
 any such board or document, he shall be punished with fine 
 which may extend to fifty rupees. 
 
 112. If a person, with intent to defraud a railway adminis- 
 tration, — 
 
 {a) enters in contravention of section 68 any carriage on a 
 
 railway ; or 
 {b) uses or attempts to use a single pass or single ticket 
 which has already been used on a previous journey, 
 or, in the case of a return-ticket, a half thereof which 
 has already been so used ; 
 he shall be punished with fine which may extend to one hundred 
 rupees in addition to the amount of the single fare for any distance 
 which he may have travelled. 
 
 113. (l) If a passenger travels in a train without having a 
 proper pass or a proper ticket with him, or, being in or having
 
 336 RAILWAY POLICY IN INDIA 
 
 alighted from a train, fails or refuses to present for examination 
 or to deliver up his pass or ticket immediately on requisition 
 being made therefor under section 69, he shall be liable to pay, 
 on the demand of any railway servant appointed by the railway 
 administration in this behalf, the excess charge hereinafter in this 
 section mentioned, in addition to the ordinary single fare for the 
 distance which he has travelled, or, where there is any doubt as to 
 the station from which he started, the ordinary single fare from the 
 station from which the train originally started, or if the tickets of 
 passengers travelling in the train have been examined since the 
 original starting of the train, the ordinary single fare from the 
 place where the tickets were examined, or in case of their 
 having been examined more than once, were last examined. 
 
 (2) If a passenger travels or attempts to travel in or on a car- 
 riage, or by a train, of a higher class than that for which he has 
 obtained a pass or purchased a ticket, or travels in or on a 
 carriage beyond the place authorised by his pass or ticket, he 
 shall be liable to pay, on the demand of any railway servant 
 appointed by the railway administration in this behalf, the excess 
 charge hereinafter in this section mentioned, in addition to any 
 difference between any fare paid by him and the fare payable 
 in respect of such journey as he has made. 
 
 (3) The excess charge referred to in sub-section (i) and 
 sub-section (2) shall, — 
 
 [a) where the passenger has, immediately after incurring the 
 charge, and before being detected by a railway ser- 
 vant, notified to the railway servant on duty with the 
 train the fact of the charge having been incurred, be 
 one rupee, two annas or eight annas ; and 
 (d) in any other case, be six rupees, one rupee, or three 
 rupees, 
 according as the passenger is travelling, or has travelled, or has 
 attempted to travel in a carriage of the highest class, or in a 
 carriage of the lowest class, or in a carriage of any other class 
 or kind : 
 
 Provided that such excess charge shall in no case exceed, — 
 (a) where the liability to pay it arises under sub-section (i), 
 the amount of the ordinary single fare which the
 
 APPENDIX B 337 
 
 passenger incurring the charge is hable to pay under 
 that sub-section ; or 
 {b) where such liability arises under sub-section (2), the 
 amount of the difference between the fare paid by the 
 passenger incurring the charge, and the fare payable 
 in respect of such journey as he has made. 
 (4) If a passenger liable to pay the excess charge and fare 
 mentioned in sub-section (i), or the excess charge and any 
 difference of fare mentioned in sub-section (2), fails or refuses 
 to pay the same on demand being made therefor, under one or 
 other of those sub-sections, as the case may be, the sum pay- 
 able by him shall, on application made to any Magistrate by 
 any railway servant appointed by the railway administration in 
 this behalf, be recovered by the Magistrate from the passenger as 
 if it were a fine imposed on the passenger by the Magistrate, and 
 shall, as it is recovered, be paid to the railway administration. 
 
 114. If a person sells, or attempts to sell, or parts or attempts' 
 to part with the possession of the return half of a return ticket 
 in order to enable any other person to travel therewith, or pur- 
 chases such half of a return ticket, he shall be punished with 
 fine which may extend to fifty rupees, and, if the purchaser of 
 such half of a return ticket travels or attempts to travel there- 
 with, he shall be punished with an additional fine, which may 
 extend to the amount of the single fare for the return journey 
 authorised by the ticket. 
 
 115. That portion of any fine imposed under section 1 1 2, 
 or the last foregoing section, which represents the single fare 
 therein mentioned shall, as the fine is recovered, be paid to the 
 railway administration before any portion of the fine is credited 
 to the Government. 
 
 116. If a passenger wilfully alters or defaces his pass or ticket 
 so as to render the date, number, or any material portion thereof 
 illegible, he shall be punished with fine which may extend to 
 fifty rupees. 
 
 117. (i) If a person suffering from an infectious or con- 
 tagious disorder enters or travels upon a railway in contravention 
 of section 71, sub-section (2), he and any person having charge 
 of him upon the railway when he so entered or travelled thereon, 
 
 z
 
 338 RAILWAY TOLICY IN INDIA 
 
 shall be punished with fine which may extend to twenty rupees, 
 in addition to the forfeiture of any fare which either of them 
 may have paid, and of any pass or ticket which either of them 
 may have obtained or purchased, and may be removed from the 
 railway by any railway servant. 
 
 (2) If any such railway servant as is referred to in section 
 71, sub-section (2), knowing that a person is suffering from any 
 infectious or contagious disorder, wilfully peimits the person to 
 travel upon a railway without arranging for his separation from 
 other passengers, he shall be punished with fine which may 
 extend to one hundred rupees. 
 
 118. (i) If a passenger enters or leaves, or attempts to enter 
 or leave, any carriage while the train is in motion, or elsewhere 
 than at the side of the carriage adjoining the platform or other 
 place appointed by the railway administration for passengers to 
 enter or leave the carriage, or opens the side-door of any 
 carriage while the train is in motion, he shall be punished with 
 fine which may extend to twenty rupees. 
 
 (2) If a passenger, after being warned by a railway servant 
 to desist, persists in travelling on the roof, steps, or footboard 
 of any carriage, or on an engine, or in any other part of a train 
 not intended for the use of passengers, he shall be punished with 
 fine which may extend to fifty rupees, and may be removed from 
 the railway by any railway servant. 
 
 119. If a male person, knowing a carriage, compartment, 
 room, or other place to be reserved by a railway administration 
 for the exclusive use of females, enters the place without lawful 
 excuse, or having entered it, remains therein after having been 
 desired by any railway servant to leave it, he shall be punished 
 with fine which may extend to one hundred rupees, in addition 
 to the forfeiture of any fare which he may have paid, and of 
 any pass or ticket which he may have obtained or purchased, 
 and may be removed from the railway by any railway servant. 
 
 120. If a person in any railway carriage, or upon any part 
 of a railway — 
 
 {a) is in a state of intoxication ; or 
 
 {b) commits any nuisance or act of indecency, or uses obscene 
 or abusive language ; or
 
 APPENDIX B 339 
 
 (r) wilfully and without lawful excuse interferes with the 
 comfort of any passenger, or extinguishes any lamp, 
 he shall be punished with fine which may extend to fifty rupees, 
 in addition to the forfeiture of any fare which he may have paid, 
 and of any pass or ticket which he may have obtained or pur- 
 chased, and may be removed from the railway by any railway 
 servant. 
 
 121. If a person wilfully obstructs or impedes any railway 
 servant in the discharge of his duty, he shall be punished with 
 fine which may extend to one hundred rupees. 
 
 122. (i) If a person unlawfully enters upon a railway, he 
 shall be punished with fine which may extend to twenty rupees. 
 
 (2) If a person so entering refuses to leave the railway on 
 being requested to do so by any railway servant, or by any other 
 person on behalf of the railway administration, he shall be 
 punished with fine which may extend to fifty rupees, and may be 
 removed from the railway by such servant or other person. 
 
 123. If a driver or conductor of a tramcar, omnibus, carriage, 
 or other vehicle while upon the premises of a railway disobeys the 
 reasonable directions of any railway servant or police-officer, he 
 shall be punished with fine which may extend to twenty rupees. 
 
 124. In either of the following cases, namely : — ' 
 
 (a) if a person, knowing or having reason to believe that an 
 engine or train is approaching along a railway, opens 
 any gate set up on either side of the railway across a 
 road, or passes or attempts to pass, or drives or takes, 
 or attempts to drive or take, any animal, vehicle, or 
 other thing across the railway, 
 (6) if, in the absence of a gate-keeper, a person omits to shut 
 and fasten such a gate as aforesaid as soon as he and 
 any animal, vehicle, or other thing under his charge have 
 passed through the gate, 
 the person shall be punished with fine which may extend to fifty 
 rupees. 
 
 125.- (i) The owner or person in charge of any cattle straying 
 on a railway provided with fences suitable for the exclusion of 
 cattle shall be punished with fine which may e.xtend to five rupees 
 for each head of cattle, in addition to any amount which may have
 
 340 RAILWAY POLICY IN INDIA 
 
 been recovered or may be recoverable under the Cattle-trespass 
 Act, I 87 1. 
 
 (2) If any cattle are wilfully driven, or knowingly permitted to 
 be, on any railway otherwise than for the purpose of lawfully 
 crossing the railway, or for any other lawful purpose, the person 
 in charge of the cattle, or, at the option of the railway administra- 
 tion, the owner of the cattle, shall be punished with fine which 
 may extend to ten rupees for each head of cattle, in addition to 
 any amount which may have been recovered or may be recover- 
 able under the Cattle-trespass Act, 1871. 
 
 (3) Any fine imposed under this section may, if the Court so 
 directs, be recovered in manner provided by section 25 of the 
 Cattle-trespass Act, 1871. 
 
 (4) The expression "public road" in sections 11 and 26 of 
 the Cattle -trespass Act, 1871, shall be deemed to include a 
 railway, and any railway servant may exercise the powers con- 
 ferred on officers of police by the former of those sections. 
 
 (5) The word "cattle" has the same meaning in this section 
 as in the Cattle-trespass Act, 1871. 
 
 126. If a person unlawfully — 
 
 {a) puts or throws upon or across any railway any wood, stone, 
 
 or other matter or thing, or 
 {b) takes up, removes, loosens, or displaces any rail, sleeper, 
 
 or other matter or thing belonging to any railway, or 
 (r) turns, moves, unlocks, or diverts any points or other 
 
 machinery belonging to any railway, or 
 {({) makes or shows, or hides or removes, any signal or light 
 
 upon or near to any railway, or 
 {c) does or causes to be done, or attempts to do any other act 
 or thing in relation to any railway, 
 with intent, or with knowledge that he is likely to endanger the 
 safety of any person travelling or being upon the railway, he shall 
 be punished with transportation for life, or with imprisonment for 
 a term which may extend to ten years. 
 
 127. If a person unlawfully throws or causes to fall or strike 
 at, against, into, or upon any rolling-stock forming part of a train 
 any wood, stone, or other matter or thing with intent, or with 
 knowledge that he is likely to endanger the safety of any person
 
 APPENDIX B 341 
 
 being in or upon such rolling-stock, or in or upon any other rolHng- 
 stock forming part of the same train, he shall be punished with 
 transportation for life, or with imprisonment for a term which may 
 extend to ten years. 
 
 128. If a person, by any unlawful act or by any Vvilful omission 
 or neglect, endangers or causes to be endangered the safety of any 
 person travelling or being upon any railway, or obstructs or causes 
 to be obstructed, or attempts to obstruct any rolling-stock upon 
 any railway, he shall be punished with imprisonment for a term 
 which may extend to two years. 
 
 129. If a person rashly or negligently does any act, or omits 
 to do what he is legally bound to do, and the act or omission is 
 likely to endanger the safety of any person travelling or being 
 upon a railway, he shall be punished with imprisonment for a term 
 which may extend to one year, or with fine, or with both. 
 
 130. (i) If a minor under the age of twelve years is with 
 respect to any railway guilty of any of the acts or omissions 
 mentioned or referred to in any of the four last foregoing sections, 
 he shall be deemed, notwithstanding anything in section 82 or 
 section 83 of the Indian Penal Code, to have committed an 
 offence, and the Court convicting him may, if it thinks fit, direct 
 that the minor, if a male, shall be punished with whipping, or may 
 require the father or guardian of the minor to execute, within 
 such time as the Court may fix, a bond binding himself, in such 
 penalty as the Court directs, to prevent the minor from being again 
 guilty of any of those acts or omissions. 
 
 (2) The amount of the bond, if forfeited, shall be recoverable 
 by the Court as if it were a fine imposed by itself. 
 
 (3) If a father or guardian fails to execute a bond under sub- 
 section (i) within the time fixed by the Court, he shall be punished 
 with fine which may extend to fifty rupees. 
 
 Pyoccdiivc, 
 
 131. (i) If a person commits any offence mentioned in sections 
 100, loi, 119, I 20, 121,1 26, 127, 1 28, or 129, or in section 1 30, 
 sub-section (i), he may be arrested without warrant or other 
 written authority by any railway servant or police-officer, or by any 
 other person whom such servant or officer may call to his aid.
 
 342 RAILWAY POLICY IN INDIA 
 
 (2) A person so arrested shall, with the least possible delay, 
 be taken before a Magistrate having authority to try him or commit 
 him for trial. 
 
 132. (i) If a person commits any offence under this Act other 
 than an offence mentioned in the last foregoing section, or fails or 
 refuses to pay any excess charge or other sum demanded under 
 section 113, and there is reason to believe that he will abscond, 
 or his name and address are unknown, and he refuses on demand 
 to give his name or address, or there is reason to believe that the 
 name and address given by him is incorrect, any railway servant 
 or police-officer, or any other person whom such railway servant 
 or police-officer may call to his aid, may, without warrant or other 
 written authority, arrest him. 
 
 (2) The person arrested shall be released on his giving bail, 
 or, if his true name and address are ascertained, on his executing 
 a bond without sureties for his appearance before a Magistrate 
 when required. 
 
 (3) If the person cannot give bail, and his true name and 
 address are not ascertained, he shall with the least possible delay 
 be taken before the nearest Magistrate having jurisdiction. 
 
 (4) The provisions of Chapters XXXIX. and XLII. of the Code 
 of Criminal Procedure, 1882, shall, so far as may be, apply to bail 
 given and bonds executed under this section. 
 
 133. No Magistrate other than a Presidency Magistrate, or 
 than a Magistrate whose powers are not less than those of a 
 Magistrate of the second class, shall try any offence under this Act. 
 
 134. (i) Any person committing any offence against this Act, 
 or any rule thereunder, shall be triable for such offence in any 
 place in which he may be, or which the local Government may 
 notify in this behalf, as well as in any other place in which he 
 might be tried under any law for the time being in force. 
 
 (2) Every notification under sub-section (i) shall be published 
 in the local official Gazette^ and a copy thereof shall be exhibited 
 for the information of the public in some conspicuous place at 
 each of such railway stations as the local Government may direct.
 
 APPENDIX B 343 
 
 CHAPTER X 
 
 Supplemental Provisions 
 
 135. Notwithstanding anything to the contrary in any enact- 
 ment, or in any agreement or award based on any enactment, the 
 following rules shall regulate the levy of taxes in respect of rail- 
 ways and from railway administrations in aid of the funds of local 
 authorities, namely : — 
 
 ( 1 ) A railway administration shall not be liable to pay any tax 
 in aid of the funds of any local authority unless the Governor- 
 General in Council has, by notification in the official Gazette, 
 declared the railway administration to be liable to pay the tax. 
 
 (2) While a notification of the Governor-General in Council 
 under clause ( i ) of this section is in force, the railway administra- 
 tion shall be liable to pay to the local authority either the tax 
 mentioned in the notification or, in lieu thereof, such sum, if any, 
 as an officer appointed in this behalf by the Governor-General in 
 Council may, having regard to all the circumstances of the case, 
 from time to time determine to be fair and reasonable. 
 
 (3) The Governor-General in Council may at any time revoke 
 or vary a notification under clause (i) of this section. 
 
 (4) Nothing in this section is to be construed as debarring any 
 railway administration from entering into a contract with any local 
 authority for the supply of water or light, or for the scavenging of 
 railway premises, or for any other service which the local authority 
 may be rendering or be prepared to render within any part of the 
 local area under its control. 
 
 (5) "Local authority" in this section means a local authority 
 as defined in the General Clauses Act, 1887, and includes any 
 authority legally entitled to or entrusted with the control or 
 management of any fund for the maintenance of watchmen or for 
 the conservancy of a river. 
 
 136. (i) None of the rolling-stock, machinery, plant, tools, 
 fittings, materials, or effects used or provided by a railway adminis- 
 tration for the purpose of the traffic on its railway, or of its stations 
 or workshops, shall be liable to be taken in execution of any decree
 
 344 RAILWAY POLICY IN INDIA 
 
 or order of any Court without the previous sanction of the Governor- 
 General in Council. 
 
 (2) Nothing in sub-section (i) is to be construed as affecting 
 the authority of any Court to attach the earnings of a railway in 
 execution of a decree or order. 
 
 137. (i) Every railway servant shall be deemed to be a public 
 servant for the purposes of Chapter IX. of the Indian Penal 
 Code. 
 
 (2) In the definition of " legal remuneration" in section 161 
 of that Code, the word " Government "' shall, for the purposes of 
 sub-section (i), be deemed to include any employer of a railway 
 servant as such. 
 
 (3) A railway servant shall not — 
 
 (a) Purchase or bid for, either in person or by agent, in his 
 own name or in that of another, or jointly or in shares 
 with others, any property put up to auction under section 
 55 or section 56, or, 
 
 (/;) In contravention of any direction of the railway administra- 
 tion in this behalf, engage in trade. 
 
 (4) Notwithstanding anything in section 21 of the Indian 
 Penal Code, a railway servant shall not be deemed to be a public 
 servant for any of the purposes of that Code except those mentioned 
 in sub-section (i). 
 
 138. If a railway servant is discharged or suspended from his 
 office, or dies, absconds, or absents himself, and he or his wife or 
 widow, or any of his family or representatives, refuses or neglects, 
 after notice in writing for that purpose, to deliver up to the railway 
 administration, or to a person appointed by the railway adminis- 
 tration in this behalf, any station, dwelling-house, office, or other 
 building, with its appurtenances, or any books, papers, or other 
 matters belonging to the railway administration, and in the 
 possession or custody of such railway servant at the occurrence 
 of any such event as aforesaid, any magistrate of the first class 
 may, on application made by or on behalf of the railway admin- 
 istration, order any police-officer, with proper assistance, to enter 
 upon the building and remove any person found therein, and take 
 possession thereof, or to take possession of the books, papers, or 
 other matters, and to deliver the same to the railway administration
 
 APPENDIX B 345 
 
 or a person appointed by the railway administration in that 
 behalf. 
 
 139. Any notice, determination, direction, requisition, appoint- 
 ment, expression of opinion, approval, or sanction to be given or 
 signified on the part of the Governor-General in Council, for any 
 of the purposes of, or in relation to this Act, or any of the powers 
 or provisions therein contained, shall be sufficient and binding if 
 in writing signed by a Secretary, Deputy - Secretary, Under- 
 Secretary, or Assistant Secretary to the Government of India, or 
 by any other officer or servant authorised to act on behalf of the 
 Governor-General in Council in respect of the matters to which 
 the same may relate, and the Governor-General in Council shall 
 not in any case be bound in respect of any of the matters afore- 
 said unless by some writing signed in manner aforesaid. 
 
 140. Any notice or other document required or authorised by 
 this Act to be served on a railway administration may be served, 
 in the case of a railway administered by the Government or a 
 Native State, on the manager and, in the case of a railway 
 administered by a railway company, on the agent in India of the 
 railway company — 
 
 (a) by delivering the notice or other document to the manager 
 or agent, or 
 
 (S>) by leaving it at his office, or 
 
 (f) by forwarding it by post in a prepaid letter addressed to 
 the manager or agent at his office, and registered under 
 Part III. of the Indian Post-Office Act, i866. 
 
 141. Any notice or other document required or authorised by 
 this Act to be served on any person by a railway administration 
 may be served — 
 
 (a) by delivering it to the person, or 
 
 (d) by leaving it at the usual or last known place of abode of 
 
 the person, or 
 (c) by forwarding it by post in a prepaid letter addressed to 
 
 the person at his usual or last known place of abode, 
 
 and registered under Part III. of the Indian Post-Office 
 
 Act, 1 866. 
 
 142. Where a notice or other document is served by post, it 
 shall be deemed to have been served at the time when the letter
 
 346 RAILWAY POLICY IN INDIA 
 
 containing it would be delivered in the ordinary course of post, 
 and in proving such service it shall be sufficient to prove that the 
 letter containing the notice or other document was properly 
 addressed and registered. 
 
 143. (i) A rule under section 22, section 34, or section 84, 
 or the cancellation, rescission, or variation of a rule under any of 
 those sections, or under section 47, sub-section (4), shall not take 
 effect until it has been published in the Gazette of India. 
 
 (2) Where any rule made under this Act, or the cancellation, 
 rescission, or variation of any such rule, is required by this Act to 
 be published in the Gazette of India, it shall, besides being so 
 published, be further notified to persons affected thereby in such 
 manner as the Governor-General in Council, by general or special 
 order, directs. 
 
 (3) The Governor-General in Council may cancel or vary any 
 rule made by him under this Act. 
 
 144. ( I ) The Governor-General in Council may, by notifica- 
 tion in the Gazette of India, invest, absolutely or subject to con- 
 ditions, any local Government with any of the powers or functions 
 of the Governor-General in Council under this Act with respect to 
 any railway, and may, by that or a like notification, declare what 
 local Government shall, for the purposes of the exercise of powers 
 or functions so conferred, be deemed to be the local Government 
 in respect of the railway. 
 
 (2) The provisions of section 139 with respect to proceedings 
 of the Governor-General in Council shall, so far as they can be 
 made applicable, apply to proceedings of a local Government 
 exercising the powers or discharging the functions of the 
 Governor-General in Council in pursuance of a notification under 
 sub-section (i). 
 
 145. (i) The manager of a railway administered by the 
 Government or a Native State, and the agent in India of a railway 
 administered by a railway company, may, by instrument in writing, 
 authorise any railway servant or other person to act for or repre- 
 sent him in any proceeding before any civil, criminal, or other 
 court. 
 
 (2) A person authorised by a manager or agent to con- 
 duct prosecutions on behalf of a railway administration shall.
 
 APPENDIX B 347 
 
 notwithstanding anything in section 495 of the Code of 
 Criminal Procedure, 1882, be entitled to conduct such prosecu- 
 tions without the permission of the Magistrate. 
 
 146. The Governor-General in Council may, by notification in 
 the Gazette of India, extend this Act or any portion thereof to any 
 tramway worked by steam or other mechanical power. 
 
 147. The Governor-General in Council may, by a like notifica- 
 tion, exempt any railway from any of the provisions of this Act. 
 
 148. (i) For the purposes of section 3, clauses (5) (6) and 
 (7), and sections 4 to 19 (both inclusive), 47 to 52 (both inclu- 
 sive), 59, 79, 83 to 92 (both inclusive), 96, 97, 98, 100, 10 1, 103, 
 104, 107, III, 122, 124 to 132 (both inclusive), 134 to 138 
 (both inclusive), 140, 141, 144, 145 and 147, the word "railway," 
 whether it occurs alone or as a prefix to another word, has reference 
 to a railway or portion of a railway under construction, and to a 
 railway or portion of a railway not used for the public carriage of 
 passengers, animals, or goods as well as to a railway falling within 
 the definition of that word in section 3, clause (4). 
 
 (2) For the purposes of sections 5, 21, 83, 100, loi, 103, 
 104, 121, 122, 125 and 137, sub-sections (i), (2) and (4), and 
 section 138, the expression "railway servant" includes a person 
 employed upon a railway in connection with the senace thereof 
 by a person fulfilling a contract with the railway administration. 
 
 149. In sections 194 and 195 of the Indian Penal Code, for 
 the words "by this Code or the law of England" the words "by 
 the law of British India or England " shall be substituted. 
 
 150. For that portion of the preamble to the Sindh-Pishin 
 Railway Act, 1887, which begins with the words "so far as it 
 apphes," and ends with the words " in its entirety," the words 
 "should apply in its entirety to that part of the Sindh-Pishin 
 section of the North -Western Railway which lies beyond the 
 Province of Sindh " shall be substituted.
 
 348 
 
 RAILWAY POLICY IN INDIA 
 
 THE FIRST SCHEDULE 
 
 Enactments Repealed 
 
 {See Section 2) 
 
 Number and 
 year 
 
 Title 
 
 Extent of repeal 
 
 Ads of the Governor-General in Council 
 
 III. 
 
 of 1865 
 
 Carriers Act, 1865 
 
 Section 7 (so far as it re- 
 lates to railways) and 
 section 10 
 
 IV. 
 
 of 1879 
 
 Indian Railway Act, 
 1879 
 
 The whole 
 
 IV. 
 
 of 1883 
 
 Indian Railway Act, 
 1883 
 
 The whole 
 
 XI. 
 
 of 1886 
 
 Indian Tramways 
 Act, 1886 
 
 Section 49 
 
 XX. 
 
 of 1886 
 
 Upper Burma Laws 
 
 So much as relates to Acts 
 
 
 
 Act, 1886 
 
 IV. of 1879 and IV. of 
 1883. 
 
 THE FIRST SCHEDULE 
 
 Enactment.s Repealed 
 
 {See Section 2) 
 
 Act of the Lieutenant-Governor of Bengal in Council 
 
 II. of 1882 
 
 Bengal Embankment 
 
 Section 16 and in section 
 
 
 Act, 1882 
 
 1 7 the proviso to the first 
 paragraph of that section, 
 the words "or under the 
 section last preceding " 
 and the words " or rail- 
 road " wherever they 
 occur.
 
 APPENDIX B 
 
 349 
 
 THE SECOND SCHEDULE 
 
 Articles to be Declared and Insured 
 
 {See Section 75) 
 
 (a) gold and silver, coined or uncoined, manufactured or un- 
 manufactured ; 
 
 {d) plated articles ; 
 
 {c) cloths and tissue and lace of which gold or silver forms 
 part, not being the uniform or part of the uniform of 
 an officer, soldier, sailor, police-officer, or person enrolled 
 as a volunteer under the Indian Volunteers Act, 1869, 
 or of any public officer, British or Foreign, entitled to 
 wear uniform ; 
 
 {d) pearls, precious stones, jewellery, and trinkets ; 
 
 {e) watches, clocks, and timepieces of any description ; 
 
 (/) Government securities ; 
 
 {g) Government stamps ; 
 
 {h) bills of exchange, hundis, promissory notes, bank-notes, and 
 orders or other securities for payment of money ; 
 
 (z) maps, writings, and title-deeds 
 
 (7) paintings, engravings, lithographs, photographs, carvings, 
 sculpture, and other works of art ; 
 
 {k) art pottery and all articles made of glass, china, or marble ; 
 
 (/) silks in a manufactured or unmanufactured state, and whether 
 wrought up or not wrought up with other materials ; 
 
 (;;/) shawls ; 
 
 (;/) lace and furs ; 
 
 {0) opium ; 
 
 {p) ivory, ebony, coral, and sandalwood ; 
 
 {q) musk, sandalwood-oil, and other essential oils used in the 
 preparation of zVr or other perfume ; 
 
 (r) musical and scientific instruments ; 
 
 (s) any article of special value which the Governor-General in 
 
 Council may, by notification in the Gazette of India, add 
 
 to this schedule. 
 
 S. HARVEY JAMES, 
 
 Secy, to the Govt, of India.
 
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 INDEX 
 
 Accidents (Act 1890), 329, 330 
 
 Acquisition of railways by the State, 
 6, 7, 15. 18 
 
 Acts, Indian Railway (1854), 226, 
 227, 230; (1870)228, 230 ; (1S71) 
 227, 228, 230; (1879) 231, 232, 
 233 ; (1883) 232, 233 ; (1890) 233 
 sqq. ; protests against, 237, 238 ; 
 application in native states, 238, 
 239 ; see also Appendix B, p. 286 
 sqq. 
 
 Afghan war, the, 77 
 
 Agencies for working railways, 45, 
 46, 52, 53, 56 
 
 Agreements, earliest, between Gov- 
 ernment and railway companies, 
 60 sqq. , 68 
 
 Ahmedabad-Ajmere line, 177 sqq. 
 
 American "pioneer" lines unsuit- 
 able for India, 100, loi 
 
 Amraoti Railway, fares on, 198 
 
 Andrew, Sir W. P., 223 
 
 Areas of extension for railway com- 
 panies proposed, 53, 54 
 
 Argyll, Duke of. Secretary of State, 
 23, 76, 93 ; his despatch of 1869, 
 99, 131 ; of 1873, 157 sqq., 172- 
 174 ; his views on the gauge 
 question, 1 00, 135, 142, 147 ; his 
 despatches on the gauge question, 
 
 147, 155. 157 
 Articles to be declared and insured 
 (Act 1890), 349 
 
 2 
 
 "Assisted" companies, 85, 86 
 
 Ballast (broad gauge), standard 
 dimensions of, 257 ; (metre 
 gauge), ditto, 267 ; (special gauge 
 2i ft.), ditto proposed, 278 
 
 Baring, Sir Evelyn, see Cromer, Lord 
 
 Bayley, Mr. E. C, 174 
 
 Bengal and North-Western Rail- 
 way, formation of, 42, 81 ; fares 
 on, 203 ; statistics of, 350 
 
 Bengal Central Railway Company, 
 formation of, 77, 80, 81 ; statis- 
 tics of, 350 
 
 Bengal-Nagpore Railway, 42, 50, 
 84, 85, 87, 182; fares on, 204; 
 statistics of, 350 
 
 Bezvada extension railway, statistics 
 of, 350 
 
 Bhavnagar - Gondal - Junagarh - Por - 
 bandar Railway, statistics of, 352 
 
 Bidder, Mr. G. P., consulting 
 engineer, 145 
 
 Board of Control, the, 3, 9, 10 
 
 Bogie stock used, 102 
 
 Bombay, Baroda,and Central Indian 
 Railway, 14, 17, 26, 45, 165, 176 
 sqq. ; fares on, 1 98, 204 ; goods 
 rates on, 207 ; statistics of, 351 
 
 Broad or standard gauge (5^ ft.), 
 41, 53. 73. 98, 99, 104, "9. 121, 
 
 126 sqq., 157, 177, 181 sqq.; 
 adoption of, 123, 124, 126 ; for
 
 354 
 
 RAILWAY POLICY IN INDIA 
 
 military lines, lOO, 162 sqq., 170, 
 
 181 ; mileage of, 243; standard 
 
 dimensions on, 256 sqq. 
 Broad gauge (6 ft. ), 121, 122 
 
 (7 ft-)) 120 
 
 Broad gauge lines, construction of, 
 
 loi 
 Burma Railway, statistics of, 351 
 
 Calcutta and South-Eastern Rail- 
 way, fares on, 198 
 
 Canning, Lord, Governor-General, 
 65, 125 
 
 Capital account of railway com- 
 panies, charges against, 70, 71 
 
 Carnatic Railway Company, 130 
 
 Carriage of passengers (Act 1890), 
 
 323-325 
 
 of property (Act 1S90), 2,'iSsqq. 
 
 Carriages and waggons (broad 
 gauge), standard dimensions of, 
 264-266; (metre gauge), ditto, 
 275-277; (special gauge, 2h ft.), 
 ditto proposed, 284, 285 
 Carriages, size of, 150, 151 
 Cattle-trespass, legislation on, 227 
 Cherra - Companyganj Railway, 
 
 statistics of, 351 
 Chittagong-Assam Railway, 88, 89 
 Clarke, Sir Andrew, R.E., 28, 178, 
 
 180 
 Clearing-house, proposed establish- 
 ment of a, 217 
 Colvin, Sir Auckland^ proposals of, 
 
 40, 50 
 Commissions, railway (Act 1890), 
 
 307 sqq. 
 Committee of engineers (1846), 7 
 
 on the gauge question, 
 
 144 
 
 of House of Commons (1857- 
 
 58), 14, 63, 64 
 
 of locomotive and carriage 
 
 superintendents, annual assembly 
 of, llZsqq. 
 
 Committee, select, on Railway Act 
 of 1890, 234 
 
 on railways (1884), re- 
 commendations of, 40, 41 
 
 Conferences of railway officers, 46, 
 no sqq. 
 
 Construction and maintenance of 
 railways (Act 1890), 298 sqq. 
 
 Consulting engineers, 62, 103, 104 
 
 Contracts with guaranteed com- 
 panies, profits, 25 
 
 Conway -Gordon, Colonel L., his 
 views on the gauge question, 
 183 ; his note on rates and fares, 
 218 
 
 Coolie trains, 195 
 
 Cranborne, Lord, Secretary of State, 
 228 
 
 Cranbrook, Lord, Secretaiy of State, 
 I So 
 
 Cromer, Lord (Sir Evelyn Baring), 
 31, 34; his views on railway 
 monopolies, 31, 32, 77 
 
 Cross, Lord, Secretary of State, his 
 despatch of 1889, 51, 52, 55 ; of 
 1891, 56 ; of 1S90, 184 
 
 Curves, minimum radius of, 102 ; 
 maximum angle of (broad gauge), 
 257 ; (metre gauge), ditto, 267 ; 
 (special gauge, 2h ft.), ditto pro- 
 jDosed, 278 
 
 Dalhousie, Lord, Governor- 
 General, 10, 33, 43, 59, 64, 118, 
 242, 249 ; his minute of 1850, 
 II, 12; of 1853, 13, 46; his 
 minutes on the gauge question, 
 il() sqq. 
 
 Davidson, Colonel E., quoted, 66 
 
 Delhi - Umballa - Kalka Railway 
 Company, 51, 84, 87, 88; statis- 
 tics of, 351 
 
 Dibru-Sadiya Railway, statistics of, 
 
 351 
 
 Dickens, General C. H., 92, 144,
 
 INDEX 
 
 355 
 
 145, 162 ; his note on the gauge 
 question, 166 sqq. 
 
 Dimensions, standard, see Stan- 
 dard dimensions. 
 
 Directorship of State railways esta- 
 blished, 105 ; also of railway 
 stores, 105 
 
 East Indian Railway Company, 14, 
 60, 68, 87, 118, 182, 211, 219, 
 246 ; formation of, 10 ; acquire- 
 ment of by Government, 78, 79 ; 
 fares on, 19S, 204 ; statistics of, 350 
 
 Eastern Bengal Railway, 14, 45 ; 
 fares on, 198, 204; statistics of, 350 
 
 i^lgin, Lord, Governor-General, his 
 , views on the gauge question, 126, 
 128 
 
 Elliott, Sir Charles, 51 
 
 Ellis, Hon. B. H., 169, 176, 178; 
 his minute on the gauge question, 
 170, 171, 174 
 
 Engine-drivers, 102 
 
 Engines for standard gauge lines, 
 loi ; for metre gauge lines, 102 ; 
 see also Locomotive engines. 
 
 English railways compared with 
 Indian, 2, 190 
 
 Exchange, fluctuation of, as affect- 
 ing railways, 49, 117, 243 
 
 Expenditure on railways since 1870, 
 25 ; in 1892-93, _57 
 
 average (from 1850 to 
 
 1892), 251, 252 
 "Experimental" railway, 2, 11 
 
 Famine Commission, mileage of 
 
 railways needed, 29, 251, 252 
 Famines of 1876-78, 29, 77 
 Festiniog Railway, 137, 149, 156 
 Fixed structures (broad gauge), 
 standard dimensions of, 258 sqq. ; 
 (metre gauge), ditto, 268 sqq. ; 
 (special gauge, 2i ft. ), ditto pro- 
 posed, 279, 280 
 
 Forfeitures by railway companies 
 (Act 1890), 331-333 
 
 Formation (broad gauge), standard 
 dimensions of, 256, 257 ; (metre 
 gauge), ditto, 266, 267 ; (special 
 gauge, 2 J ft.), ditto proposed, 
 277, 27S 
 
 Fowler, Mr. John, 144, 145, 152 
 
 Fox, Mr. C. D., consulting en- 
 gineer, 146 
 
 Funds for railway construction, 
 views of .Sir T. C. Hope, 35, 47, 48 
 
 Gaekwar's Dabhoi Railway, the, 
 
 statistics of, 352 
 • Mehsana Railway, the, statis- 
 tics of, 352 
 
 Petlad Railway, the, statistics 
 
 of, 352 
 Gauge, question of, 10, 11, 23, 24, 
 41, 52, 53> 54. 98, 99. "8 sqq., 
 248 sqq. ; committee of engineers 
 upon, 144; committee of House 
 of Commons on, 182, 183 ; pro- 
 posed legislation on, 183, 184 ; 
 see also broad gauge, metre gauge, 
 special gauge. 
 Goods rates, 205 sqq. ; Government 
 control of, 206 sqq. ; tables of, 
 207 ; maxima and minima of, 
 fixed, 219, 220; reductions of, 
 222, 248 
 Goods traffic, early anticipations of, 
 
 3, 4, 187 
 Government administration of rail- 
 ways, 116, 117 
 Government control of Indian rail- 
 ways, S-f'/'/., 33> 60 sqq., '^2,, 
 192, 206 sqq. 
 Grant, Sir J. P., views of, 65 
 Great Indian Peninsula Railway 
 Company, 14, 17, 26, 60, 118, 
 176, 182 ; fares on, 195, 198, 204, 
 goods rates on, 207 ; statistics of, 
 351
 
 356 
 
 RAILWAY POLICY IN INDIA 
 
 Great Southern Railway, fares on, 
 
 204. 
 Guarantee, system of, 6, 7, 9, 10, 
 
 13, 14, 16, 17, 18, 19, 20, 30, 
 
 33, 35, 50, 51, 52, 57, 59^'/'/-, 
 91 ^17^7., 118, 123, 177 
 limited, 33, 37, 42 
 
 Hardinge, Lord, Governor-Gene- 
 ral, I, 7 ; his minute of 1846, 7 
 
 Hartington, Lord, Secretary of 
 State, 30, 44 ; his dispatch of 
 1881, 77 
 
 Hawkshaw, Mr. John, consulting 
 engineer, 145, 146 
 
 Holkar Railway, fares on, 198 
 
 Hope, Sir Theodore C., views of, 
 
 29, 34, 35, 39, 40, 43, 48 
 House of Commons, committee of 
 (1857-58), 14, 63, 64 
 
 Indian Branch Railway Company, 
 16, 17, 18, 72, 73, 125, 128 ; 
 see also Oudh and Rahilkund Rail- 
 way Company. 
 
 Indian Midland Railway, 42, 50, 
 84; fares on, 204; statistics of, 350 
 
 Indian Tramway ComjDany, 72, 73, 
 129 
 
 Indus Valley Railway, 100, 135 ■?'/'/., 
 15s, 161, 1655^/7., 169, 170, 173, 
 176 
 
 Inspection of railways (Act 1890), 
 296, 297 
 
 JODHPUR-BiCKANEER Railway, sta- 
 tistics of, 352 
 Jodhpur Railway, statistics of, 352 
 Jorhiit Railway, statistics of, 351 
 
 Kennedy, Major J. P., consulting 
 
 engineer, 121 
 Khamgaon Railway, fares on, 198 
 Kimberley, Lord, Secretary of State, 
 
 217 
 
 Kolhapur Railway, statistics of, 352 
 
 Lahore - Rawalpindi Railway, 
 
 135 •*■?!?•, 155, 173 
 Laing, Mr. S., views of, 65, 66 
 Land, free gift of, to railway com- 
 panies, 5, 7, 8, 18, 33, 35, 38, 40, 
 
 51, 54, 74, 87, 90, 91 
 
 leasing of, 5, 18, 33, 60 
 
 Lansdowne, Lord, Governor-Gene- 
 ral, 53 
 Lawrence, Lord, Governor-peneral, 
 18, 74; his minutes on Railways 
 (1867, 1869), 18, 20, 22, 7W92, 94, 
 95, 130 sqq. , 142, 143; viewaon the 
 construction of railways, 22\ 33 
 Legislation, Indian railway, 2261 
 sec also under Acts 
 
 on gauge question, propos\^, 
 
 183, 184 
 
 Limit of borrowing, 350 lakhs, 4i,47N 
 Limited guarantee, 33, 37, 42 
 " Line clear" system, working of, 
 
 102 
 Loads, limits of, 102, 128 
 Local railway boards, suggested 
 
 institution of, 52 
 Locomotive engines (broad gauge), 
 standard dimensions of, 263, 264 ; 
 (metre gauge), ditto, 274, 275 ; 
 (special gauge, 2^ feet,) ditto pro- 
 posed, 283, 284 
 Lucknow-Cawnpore Railway, 126 
 Lytton, Lord, Governor-General, 30 
 
 Madras Railway, 14, 26, 68, 244 ; 
 fares on, 195, 198, 203,204; goods 
 rates on, 207 ; statistics of, 351 
 
 Maintenance of railways (Act 1890), 
 298 Sijq. 
 
 Mayo, Lord, Governor-General, 33, 
 76, loi, 135, 142, 143, 249; de- 
 spatches of 1869, 93, 95 sqq., 130, 
 131 ; his memorandum of 1870 
 on the gauge question, 147 sqq.
 
 INDEX 
 
 557 
 
 jMetre gauge (3 ft. 3I in.), adoption 
 of, 24, 28, 42, 43, 45, 53, 77, 99, 
 100, 104, 130, 131, 147, 154, 155, 
 178, 181 scjij., 242, 249, 250; for 
 military purposes, 154, 158 sqq., 
 
 162. sqq. ; mileage of, 243; stan- 
 dard dimensions on, 266 sqq. 
 
 Metre gauge lines, construction of, 
 
 lOI 
 
 Military railways, 46, 47, 99, lOO 
 
 Miller, Mr., American engineer, 
 his views on Indian railways, loi 
 
 Molesworth, Sir Guilford L., con- 
 sulting engineer, 104, 156, 162 ; 
 his report on the gauge question, 
 163 sqq. 
 
 Morvi Railway, statistics of, 352 
 
 Mutiny of 1857, 15, 69 
 
 Nalhati-Azimganj Railway, 126 ; 
 
 fares on, 198 
 Napier of Magdala, Lord, 100, 142, 
 
 143, and the gauge question, 162, 
 
 163, 173, 174 
 
 Narrow gauge, see Special gauge 
 Narrow gauge lines, first proposals 
 
 of Government, 23 
 Natives as railway servants, loi 
 Nizam's Railway, fares on, 198,204; 
 
 the statistics of, 352 
 Non -guaranteed railways, 72, 73 
 Norman, Sir Henry, his views on 
 
 the gauge question, 174 
 Northbrook, Lord, Governor-Gene- 
 ral, 100 ; his views on the gauge 
 question, 156, 169, 173, 174 
 Northcote, Sir Stafford, Secretary 
 of State, views of, 19, 75, 76 ; 
 his despatches of 1868, 92, 93 
 North -Western Railway, through 
 fares on, 223 ; statistics of, 350 
 
 Obstacles against Indian railways 
 
 assumed, 3 
 Offences (Act 1890), 331 sqq. 
 
 Offences by railway servants (Act 
 
 1890), 333 
 Officials, railway, staff of organised, 
 
 103 sqq. 
 Opening of railways (Act 1890) 
 
 303 -f'/'/- 
 Oudh Railway Company, 18 
 Oudh and Rahilkund Railway Com- 
 pany (formerly Indian Branch 
 Railway Company), 76, 91, 126; 
 fares on, 198, 204, 230; goods 
 rates on, 207 ; statistics of, 350 
 
 PASSENGERfares on Indian railways, 
 187 sqq. ; tables of, 188, 195, 
 198, 204, 225 ; compared with 
 English, 190 ; on State railways, 
 I95> 196; Government control of, 
 192 ; maxima and minima, 204, 
 225 ; reductions of, 198 sqq., 248 ; 
 through to England, 222, 223 
 
 Passenger traffic not anticipated, 3, 
 4, 187 
 
 Passengers, carriage of (Act 1890), 
 
 323-325 
 
 Penalties and offences (Act 1 890), 33 1 
 
 Permanent way (broad gauge), stan- 
 dard dimensions of, 257, 258 ; 
 (metre gauge), ditto, 267, 268 ; 
 (special gauge, 2i ft.), ditto i)ro- 
 posed, 278, 279 
 
 "Pioneer" (American) lines, un- 
 suitable for India, 100, loi 
 
 Plant, railway, types of, used, loi, 
 102 
 
 Procedure against offences (Act 
 1890), 341, 342 
 
 Productive works, 30, H, 35, 37, 
 40, 41 
 
 Profits, railway, paid to companies 
 by Government, 245 ; Govern- 
 ment share of, 245, 246 
 
 Property, carriage of (Act 1S90), 
 318 sqq. 
 
 Protective railways, 37,38,40, 41, 84
 
 358 
 
 RAILWAY POLICY IN INDIA 
 
 Protests ngainst Act of 1S90, 237, 
 238 
 
 Provident fund for railway em- 
 ployees, 46, 109, no 
 
 Punjab and Delhi Railway, fares 
 on, 198 
 
 Punjab Northern Railway, 100, 161, 
 163, 165, 166, 169, 174; fares 
 on, 198 
 
 Rahilkund and Kumaon Railway, 
 formation of. Si ; statistics of, 
 
 350, 351 
 
 Rails, weight of, 100, loi, 118 
 
 Railway companies, relations of, 
 with the Government, 252, 253 
 
 Railway service corps (military), 
 115 sqq. 
 
 Railways, Indian, first projected, 1, 
 2, 7, 8 ; compared with English, 2 ; 
 obstacles to, assumed, 3 ; Govern- 
 ment control of, 5 sqq., 33, 59 
 sqq., 192, 206 sqq. ; great trunk 
 lines of, 14 ; expenditure on, since 
 1870, 25 ; in 1892-93, 57 ; (aver- 
 age) from 1850-92, 251, 252 ; 
 and famines, 28, 29 ; proposals 
 for construction of, 30 sqq. ; for 
 military purposes, 46, 47, 99, 100, 
 244, 245 ; funds for construction 
 of, 45, 47, 48 ; agencies for work- 
 ing, 45, 46, 52, 53, 56 ; guaranteed 
 and assisted, 59 sqq. ; State con- 
 struction and administration of, 
 91 sqq. ; gauges of, lO, II, 23, 24, 
 41, 52 sqq. , 98 sqq. ,118 sqq. , 243, 
 248 sqq. ; details of construction 
 of, loi, 102; plant, etc. for, loi, 
 102 ; directorships of, established, 
 105 ; conferences of officials con- 
 cerning, 113 sqq. ; passenger fares 
 on, 187 sqq., 225; goods rates 
 on, 205 sqq. ; legislation on, 
 226 sqq. ; financial aspect of, 
 243 sqq. ; future extension of, 
 
 251, 252, 254, 255; standard 
 dimensions of, 256 sqq. ; Act 
 (1890), 294 sqq.; inspection of, 
 296, 297 ; construction and main- 
 tenance of, 290 sqq. ; opening of, 
 303 sqq. ; commissions on, 307 
 sqq. ; working.of, 214 sqq. ; statis- 
 tical list of, 350-352 
 
 Rajpura-Bhatinda Railway, statistics 
 of, 352 
 
 Rajputana-Malwa Railway, 43, 45, 
 I59> 165, 180 ; fares on, 198, 
 204 ; statistics of, 350 
 
 Rates and fares, 74, 80, 187 sqq., 
 246 sqq. ; tables of, 188, 195, 19S, 
 204 
 
 Rates, competitive, to Bombay and 
 Calcutta, 43, 44, 210 sqq. 
 
 Rendel, Sir A. M., consulting en- 
 gineer, 104, 144 
 
 Responsibility of railway administra- 
 tions as carriers (Act 1890), 325 
 sqq. 
 
 Revenue account of railway com- 
 panies, charges against, 70, 71 
 
 Ripon, Lord, Governor-General, 30, 
 31, 42 ; his proposals for railway 
 extension (1881), 33; (1883), 34 
 
 Roberts, Lord, his memoranda on 
 the gauge question, 162, 175 
 
 Rolling stock, types of, used, loi, 
 102 ; plans for improvement of, 
 II3> "4 
 
 Salisbury, Lord, Secretary of 
 State, 100 ; his views on the 
 gauge question, 175 
 
 Simms, Mr., consulting engineer, 
 5) 6, 7, 15 ; his proposals for con- 
 trol, 5 ; his views on the gauge 
 question, 118, 119 
 
 Sind, Punjab and Delhi Railway, 14, 
 45, 46, 161, 165, 173; fares on, 
 198, 204 
 
 Smith, Mr. Lee, 156
 
 INDEX 
 
 359 
 
 South Indian Railway Company, 
 55. 56, 130; fares on, 198, 199; 
 statistics of, 350 
 
 Southern Mahratta Railway Com- 
 pany, formation of, 42, 82, 83 ; 
 statistics of, 350 ; (Mysore section), 
 statistics of, 352 
 
 Special gauge (2 ft.), 185 ; mileage 
 of, 243 
 
 ■ — (2i ft.), 129, 130, 135, 
 
 136, 145, 149, 150, 153, 154, 
 
 181, 185, 249 ; mileage of, 243 
 
 (2 ft. 9 in.), 145, 149, 
 
 150, 153, 249 
 
 (4jt.), 126 
 
 (T^ft. 85 in. ), proposed, 
 
 10, 22, 23, 118 sqq., 125 sqq. 
 
 Speed, limits of, 102, 128 
 
 Staff of railway officials organised, 
 103 sqq. 
 
 Standard dimensions, loi, 102, 256 
 sqq. 
 
 Standard gauge, see Broad guage. 
 
 Stanley, Lord, Secretary of State, 
 123 
 
 State administration of railways, 
 defects of, 253, 254 
 
 Station machinery (broad gauge), 
 standard dimensions of, 262, 263 ; 
 (metre gauge), ditto, 273, 274 ; 
 (special gauge, 2.\ ft.), ditto pro- 
 posed, 282, 283 
 
 Station yards (broad gauge), stan- 
 dard dimensions of, 261, 262 ; 
 (metre gauge), ditto, 271, 272; 
 (special gauge, 2| ft.), ditto pro- 
 posed, 281 
 
 Stations, railway, construction of, 
 102 ; distances between, 102 
 
 Stephenson, Sir Macdonald, i, 60 
 
 Strachey, General R., 144, 145, 172 
 
 Supervision of railway engineers, 
 
 difficulties of, 13, 14 
 Supplemental provisions (Act 1S90), 
 
 343 m- 
 
 Tarkessur Railway Company, 84 ; 
 
 statistics of, 351 
 Technical section of public works 
 
 department, 115 
 Temple, Sir R., 169; his views on 
 
 the gauge question, 170, 174 
 Third - class traffic, preponderance 
 
 of, 189, 190, 196, 197 
 Thornton, Mr. W. T., 157 
 Tirhoot State Railway, absorption 
 
 of, 81 ; fares on, 198, 204 
 Traffic facilities (Act 1890), 311 
 Trevelyan, Sir C, his views on the 
 
 gauge question, 126, 127, 129 
 Trevor, Major -General J. S., first 
 
 director-general of railways, 106 
 
 Wardha Valley Railway, fares on, 
 1 98 
 
 Williams, Sir E. C. S., 18; his 
 note on the guarantee system, 92 ; 
 appointed director of State rail- 
 ways, 105; his views on the gauge 
 question, 1 72 ; his views on fares, 
 196 
 
 Wilson, Mr. J. E., 124, 125, 128 
 
 ~Six. James, Secretary to the 
 
 Board of Control, 10 
 
 Wood, Sir Charles, Secretary of 
 State, 17, 123, 177 ; despatch of 
 1864, 70 sqq. 
 
 Working of railways (Act 1890), 
 
 Yule, Colonel IT, his views on the 
 gauge question, 123, 124 
 
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