The Sun.
London, England, 1860-01-10 00:00:00

RAILIVAIr STATISTICS.

The railway traffic of the United Kingdom for
the past year shows, as usual, an increase over that
of all preceding years. It amounts, as nearly as
can be estimated from the returns, to £25,576,100,
showing an increase over those of 1858 of
£1,812,336, and over those of 1857 of £1,413,645.
The depression of trade and railway competition at
unremunerative rates in 1858 had the effect of
annihilating the ordinary increase of traffic, and,
for the first time in the history of railway traffic,
depressing the receipts £400,000 below those of the
preceding year.
In order to explain what is meant by the " ordi-
nary increase of traffic," it is necessary to state that.
during the 14 years preceding 1858 the increase in
the traffic receipts of railways in the United King-
dom
al_
averaged £1,380,000 per annum. In est.m
ing the actual loss of traffic in 1858,
80s0 cnoimu spta r becL
e
with the preceding year, the £1,380 ,0
added to the £400,000 deficiency o
rcomparedabout6 wpeithr
1857, making together £1,780,000,
the e
c r
cent. of the whole receipt this might appear a
small matter to persontsn u
mysteries of railway finance, but unacquainted e
effect with the
twas to
reduce the balance available for ordinary dividends
by 20 per cent.
The continual increase in the capital acconnts of
railway companies causes a perpetual increase in
the fixed charges against revenue, which must be
met before any dividend cm be declared on the or-
dinary capital. The fixed chargeslof some railway
companies are so heavy that a comparatively small
depression of trade deprives the ordinary share-
holders of dividend, and leaves others with very
Whatever might have been the financial difficul-
tiessmall ones.
of railway companies, they cannot be attributed
so much to a deficiency of traffic as to the lavish
expenditure of capital, the improvident leases, and
guarantees.
With the exception of/he year 1858, the traffic
receipts of railways in the United Kingdom show,
from 1842 to 1851 a constant annual increase, which
might have tempted many boards to overload their
companies with preference charges in the anticipa-
tion that at some futuie period the increase of traf-
fic on the railways would be more than sufficient to
meet all those heavy charges, and pay handsome
dividends-on the original capital. Had there been
five or six such years as 1858 to check those san-
guine anticipations of continued prosperity, it is
probable that railway property generally would
now be in a much better position than it is, so far as
having lighter preference charges, and more remu-
nerative dividends on the original shares.
The progressive development of railway traffic
must be considered as very satisfactory, for in the
year 1842 the traffic receipts on 1,630 miles of rail-
way in the United Kingdom amounted to £4,470,100,
while in the past year they amounted on 9,568
miles to £25,576,100, showing an increase in the
mileage of 7,938 miles, and in the receipts of
£21,105,400, being an advance at the average rate
of 467 miles, and of £1,241,500 per annum.
The expenditure of capital on railways advanced
rather faster than the traffic. In 1812 the expendi-
ture on the railways above referred to amounted to
£54,380,100, and in 1859 to £222,21D,100, showing
an increase of £267,839,000 in 17 years, being at
the average rate of £15,755,200 per annum. Of
course the expenditure in some of those years was
much more than double the average, and in others
less than one-half the average. In the year 1842 the
gross traffic receipts amounted to 8'22 per cent.
of the expenditure on capital account, and thence
they gradually rose to 9.13 per cent. in the year
1845. The percentage of gross traffic then de.