The Hindu Business Line : Train of thoughts, 60 years old

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Chennai March 5 Lalu's fourth Rail Budget, presented towards the end of February, promises to yield a surplus of Rs 20,000 crore, even after an across-the-board passenger fare reduction. Happier times, these are, for the giant organisation, compared to years of fare hikes and deficits.

Free India's first Railway Budget began on such a note, when Dr John Matthai, Minister for Transport, presented it on November 29, 1947 in the Indian Dominion Legislature. All classes suffered fare increases: first class fares by 6 pies per mile, second class by 4 pies, inter class by about 2½ pies and third class, by 2 pies, on mail trains.

Higher fares

On ordinary trains, fares went up by one pie. These hikes were to yield about Rs 9 crore, while the deficit was a yawning Rs 12 crore, mainly due to the addition of Rs 22½ crore in the wage bill, "resulting from the implementing of the Pay Commission's recommendations".

Gross traffic receipts that Dr Matthai estimated were Rs 107 crore. Sixty years later, the gross traffic earnings that Lalu projected in the Rail Budget 2007 was about 666 times, at Rs 71,218 crore.

Dr Matthai had to explain how the earnings from goods traffic took a hit because a large proportion of the goods carrying capacity of the Railways had been absorbed by `the lower rated coal and foodgrains traffic'. Also affecting the revenues was military traffic, which was `substantially high due largely to the rail movement of armed forces consequent on the Partition of the country'.

Partition woes

On the problems due to Partition, Dr Matthai delivered an extempore speech. The edition dated November 21, 1947, from The Hindu Archives informs that the Minister explained the differences between the two countries on the division of capital liability.

India's suggestion was that the split be Rs 660 crore and Rs 150 crore, between India and Pakistan, respectively. Pakistan suggested the ratio, Rs 757 crore and Rs 53 crore. At that value, for 7,000 miles of Indian Railway assigned to Pakistan, "they would have got it at practically scrap value," opined Dr Matthai.

"I express heartfelt gratitude towards 14 lakh railway employees who in the face of stiff competition have conquered all odds with an indomitable spirit displaying matchless zeal, vigour and teamwork," reads a snatch from Lalu's speech of February 26.

Fallout

His predecessor, Dr Matthai, though, had to handle massive movement of personnel, post Partition, which `dislocated and disorganised the railway services'. The six-decade-old news report informs: "Approximately, 1,26,000 persons had opted for India from Pakistan. Out of this, 1,08,400 had arrived in India and 1,04,000 had already received their posting orders... The number of people from India, who had opted for Pakistan, was approximately 83,000... "

Lalu's speech made no mention of ticket-less travel. But Dr Matthai had to rue how ticket-less travel cost the Railways Rs 8 crore annually. The problem was getting out of control, he cautioned.

"It was possible for the railways to take various measures, such as additional inspecting staff, proper fencing of stations, increased facilities at booking offices and so on, but he personally thought that the problem had gone much beyond the limit of railway measures and it had to be tackled now as a problem of law and order, because, if it was allowed to continue unchecked, it was going to sap the sense of law on which only ordered society could function... " reads the 1947 news report.