On Lord Mayo's arrival in Calcutta, he found awaiting him an elaborate Minute which Lord Lawrence had lately placed on record regarding the past history and the future extension of Indian railways. The narrative which the great civilian Viceroy thus left for his successor was full of encouragement, but by no means one of unmingled self-complacency. From the end of 1853, when we had twenty-one and a-half miles of railway in India, until the beginning of 1869, when Lord Lawrence left the country, only about 4000 miles of railway had been opened. These lines had been constructed by private companies, under a guarantee from the Indian Government. 'The money'--to use the words of the Duke of Argyll--'was raised on the credit and authority of the State, under an absolute guarantee of five per cent., involving no risk to the shareholders, and sacrificing on the part of Government every chance of profit, while taking every chance of loss.' In the absence of any inducements to economy, the guaranteed railways had cost 17,000 pounds a mile, and were worked under a system of double supervision--expensive, dilatory, and complicated. It was become evident that the costliness of this plan rendered an adequate development of railways in India financially impossible. {177} Lord Mayo, assisted by General Strachey, resolved to supplement the expensive system of guaranteed lines by a network of State railways. Instead of guaranteeing five per cent. interest, the Government has raised the capital for these State railways at three to four per cent. Instead of an initial cost of 17,000 pounds per mile for broad-gauge lines, it determined to construct narrow-gauge lines, at about 6000 pounds per mile. For the old costly double management, the new system substituted a single firm control. Into the vexed question of the break of gauge it is not needful for me here to enter. It must suffice to say that Lord Mayo perfectly realised its disadvantages. His plan was to construct a system of narrow-gauge railways on a sufficient scale to allow of long lengths of haulage without break of gauge. Later experience has affirmed the practical convenience of the broader gauge. But, excepting in a few isolated spots, the system of State railways dates from Lord Mayo's Viceroyalty; and it is the system which, under various modern developments, is now absorbing within itself the whole railway system of India.