In this Final Report the subject of railways was not included.  Railways of course formed part of our inquiry, but they were dealt with in our Interim Reports.

To a large extent railways were more a matter of domestic than of Imperial concern, but as the development of the resources of the Dominions depended greatly upon the adequacy of railway transit, the subject came within the province of our inquiry.  I will not trouble the reader with statistics (which can be readily obtained elsewhere) beyond the following statement which represented, at the time we made our investigations, the railway mileage and the population in each Dominion compared with the United Kingdom:—­

Miles of Population.  Number of
Railway.  Inhabitants
per Mile of
Railway. 
Canada 35,600 8,075,000 280
Australia 18,000 4,500,000 250
South Africa 8,800 1,300,000{207a} 150{207b} New Zealand 2,900 1,052,000{207a} 370 Newfoundland 800 250,000 320
United Kingdom 23,500 46,000,000 1,950

It is clear that railway construction has not been neglected in the Dominions, and that, measured by population, the mileage is considerable.  Speaking generally, the Dominion railways are highly efficient and serve their purpose well.  Extensions were being projected and many were in course of construction for the further development of natural resources and of trade and commerce.

In Australia the railways, with the exception of certain lines belonging to the Commonwealth, are owned and worked by the several States.  We found them paying full interest on the cost of construction, and sound assets of the country.  The cost of working was, however, greatly increasing, due mainly to increase of salaries and wages.  How this stands since the war I do not know; but that expenses have further advanced goes without saying.  An important railway witness whom we examined expressed the opinion that increased expenditure could be recouped by increased rates.  Perhaps that is still true.  If it is, the railways of Australia are happier than most of the railways in Ireland.

The railways of New Zealand belong to and are worked by the Government.  For many years the Government, looking upon the railways as an adjunct to the settlement and development of the country, only expected them to return 3 per cent. interest on the capital expended.  In 1909 this policy, however, was modified, 3.75 to 4 per cent. being then regarded as a proper result, and this result was accomplished.  Water power in New Zealand is so abundant that the adoption of electricity for railway working has been engaging the attention of the Government.  Many, well qualified to judge, were satisfied that it would prove more economical than steam locomotion.

In both Australia and New Zealand, borrowing for railway construction had been by means of general loans raised for all kinds of Government expenditure.  We came to the conclusion that if loans for reproductive works, such as railways, had been segregated from others, it would have helped the raising of capital, and probably secured easier terms.