Owing to exorbitant fares the people of Johannesburg are practically confined within the limits of the town and its immediate suburbs. They are compelled to pay high rents. £250 to £300 a year represents the present rent for an ordinary cottage. The passenger fares on the London and North-Western are from a 1-1/2d. to 1-3/4d. per mile first, 1-1/4d. second, and fractionally under a 1d. third. A great reduction is made on season tickets. Transvaal railway fares average 3d. per mile first, 2-1/2d. second, and 1-1/2d. third, and only a small reduction is made for season tickets. With high rents and high prices for food, rendered dear by cost of carriage, the workers, in order to live, must obtain high wages. High wages mean high-working costs for all industrial enterprises. Consequently only a few industries, and only the richer mines, can be worked at a profit. Ordinary industries which can carry only moderate working costs cannot be undertaken. Judging from the results of the past six years sweeping reductions are quite possible while still allowing for a paying railway revenue. Mr. Cooper-Key has shown, that the excess profits made by the Transvaal railways alone, after providing for reasonable interest on capital at the rate of 4-3/4 per cent., were:-- For 1896 £1,162,925. " 1897 1,111,964. " 1898 928,623. For the present year the excess profits on Transvaal railways, over a 4 per cent. interest on capital, will probably amount to not far short of £1,500,000. As might be expected after a consideration of the profits and earning capacity of South African railways, important extensions of the previous system are projected and in progress. In the Cape Colony there is a project to connect Saldanha Bay, the proposed new port, with the main line _viâ_ Hopefield. A southern line _viâ_ Oudtshoorn and Willowmore will bring Cape Town in closer contact with Mossel Bay and Port Elizabeth, and open up the southern districts of Cape Colony. Another line will join the Port Elizabeth midland line with the eastern system at King Williamstown. In the Orange River Colony the projected lines are from Springfontein to Koffyfontein; from Bloemfontein to Ladybrand and Ficksburg; from Harrismith to Heilbron or Vereeniging. The line from Bloemfontein to Ladybrand is already partly built. It will open up the wheat-growing section of the Orange River Colony.