Of these lines, the railways constructed under the Tramways and Light Railways Acts cover 603 miles, of which 322 are narrow gauge, involving a liability on various baronies which have guaranteed interest on capital to the amount of L36,000 per annum.  To bring these light railways up to a proper standard and equipment; to widen the gauge in many cases; to provide new sheds, stations, and rolling stock, and redeem the guarantees, a sum of about L5,000,000 would probably be necessary.  In addition, projects for no less than eighty-three new railways were brought before the Commission;[95] and it is admitted on all hands, and the Commission find, that practically none of these railway extensions would be undertaken by private enterprise, and that these developments need the credit, help, and direction of the State.  Even the necessary improvement of the existing light railways cannot now be undertaken, for under the system of legislation under which they were constructed, there is no means of raising new capital.[96]

Now, what is advocated by the Majority Report is the—­

“compulsory purchase by the State of these railway systems great and small, to be then worked and managed by an Irish elected authority as one concern, mainly with a view of developing Irish industries by reduction of rates and otherwise, and not strictly on commercial principles."[97]

This was the scheme supported by the Parliamentary Party, written up unceasingly by the Freeman’s Journal, and held out under the term “Nationalisation of Railways,” as one of the special boons which Home Rule will bring to Irish traders and farmers.

But mark how the operation is to be carried out.  The Commission reported that the sum required should be raised by a railway stock charged primarily on the Consolidated Fund of the United Kingdom, with recourse to Irish rates to make up possible deficiencies, and further, that there should be an annual grant from the Exchequer of not less than L250,000 to the Irish railway authority.  Seeing that the Commissioners refer to “the financial terms prescribed by the Act of 1844” (Regulation of Railways Act, 7 & 8 Vict. c. 85, ss. 2-4), and that a cash payment to shareholders was provided for by that Act, it is to be presumed that the Commissioners intended Irish shareholders to be paid in cash.  The Act of 1844 provided for payment to the companies of a sum in cash equal to twenty-five years’ purchase of the previous three years’ annual profits; but this was the minimum only, for it was provided that the companies could, under arbitration, claim additional payment in respect of future “prospects.”

Now twenty-five years’ purchase of the divisible profits, which at the date of the Commission, were L1,690,000, would amount to over L42,000,000, and if in addition sums had to be raised for “prospects,” purchase of lines paying no dividend, special provision for prior stocks standing at a premium, redemption of guarantees, and the large sums required for the extensions and improvements we have mentioned, a sum not less than L50,000,000, and probably nearer L55,000,000, would be required.[98]