Reply ' T H E purpose o f m y a r t i c l e was t o v e r y l i t t l e capital available, a n d c a r r y i n g capacities in the region of refute the contention t h a t the t h a t to concentrate w h a t is available 60 tons. (Proceedings of the Salts- capital cost of c a r r y i n g a m i l l i o n t o n o n the r a i l w a y s m i g h t mean aban- jobads Conference. The T r a n s p o r t of goods over 300 miles by road, is d o n i n g other w o r t h w h i l e projects. Technology Association. Stock- twice t h a t required by the r a i l w a y s . I t m i g h t be, t h a t r a t h e r t h a n spend h o l m . ) A g r a p h s h o w i n g the f a l l in T h i s was the basic premise of the Rs 11.05 crores on the R a i l w a y s , it t o n mile costs, as t o t a l laden vehi- Member, T r a n s p o r t a t i o n , the R a i l - is preferable to spend Rs 4.89 on cle w e i g h t increases appeared in my w a y B o a r d . The same figures were r o a d transport, a n d use the Rs 6.16 a r t i c l e i n the 'Economic W e e k l y o f advanced by S h r i Neogi, Member, crores thus saved on other projects. January 3rd, T r a n s p o r t a t i o n , P l a n n i n g Commis- T h i s possibility i s w h a t s t i m u l a t e d T h e essence o f M r B e c k m a n ' s sion, in J u l y 1957, and presumably t h i s m y interest i n the t r a n s p o r t alloca- a r g u m e n t is t h a t the difference in was a f u n d a m e n t a l premise in the t i o n . My studies suggest t h a t by eco- ton m i l e cost between the t w o forms a r g u m e n t t h a t finally gave the K a i l - n o m i s i n g on the r a i l w a y s it should of t r a n s p o r t compensate the i n i t i a l l y ways Rs 1,125 crores out of a t o t a l be possible to find funds f o r a d a i r y higher o u t l a y required by the r a i l - P l a n expenditure of Rs 4,800 crores. i n d u s t r y in K e r a l a , f o r a s h i p y a r d ways. T h i s is o n l y a p a r t i a l l y v a l i d M y i n t e n t i o n i n choosing the in Cochin, a t y r e f a c t o r y in K o t t a - approach. Road t r a n s p o r t a n d the example of a large q u a n t i t y of a y a m , a n d f o r the innumerable other r a i l w a y s do not provide precisely the heavy c o m m o d i t y such as i r o n ore, excellent projects t h a t have been same service. Road rates h o l d a a n d a l o n g haul, was not to demon- sacrificed to expand the r a i l w a y s . contribution to greater speed, strate the a l l r o u n d superiority of I n a n y case M r Beckman's " f i n a n - promptness, r e l i a b i l i t y , security, con- r o a d t r a n s p o r t under a l l c i r c u m - cial analysis" is incomplete. He has venience, f l e x i b i l i t y a n d cleanliness. stances, but to show t h a t even under shown t h a t g i v e n the alternatives— If the r a i l w a y s were to charge ex- conditions most favourable to the r o a d t r a n s p o r t at a capital cost of a c t l y the same rate as road opera- r a i l w a y s , the converse of the pre- Rs 4.89 crores, w i t h a t o n mile cost tors, in the case of the great m a j o - mise advanced by the Member, of 11.6 nP on the one hand, a n d the r i t y of commodities they w o u l d lose T r a n s p o r t a t i o n , the R a i l w a y B o a r d , r a i l w a y s w i t h a c a p i t a l cost of 11.05 traffic heavily. and supported by the Member, crores of Rupees, a n d a t o r mile As the purpose of my a r t i c l e was Transportation, Planning Commis- cost of 9 nP on the other—and to question the v a l i d i t y of a set of sion, is l i k e l y to be true. assuming t h a t the q u a n t u m o f r a i l - figures advanced by the Member, 1 am of course a w a r e t h a t there w a y traffic w i l l not change i f the T r a n s p o r t a t i o n , the R a i l w a y B o a r d , are conditions under w h i c h trans- r a i l w a y s raise t h e i r charge to the I am reluctant to enter upon Mr p o r t by r a i l offers m a n y significant r o a d levels, there are advantages in Beckman's f i n a l argument, w h i c h advantages - b u t my concern was choosing the r a i l w a y s . assumes the correctness of another only w i t h relative c a p i t a l costs. B u t there is another course of set of flrures f r o m the same source. Since Mr B e c k m a n does n o t disagree a c t i o n w h i c h M r B e c k m a n has not Mr B e c k m a n notes a difference of w i t h me on this point, a n d as I have considered. Suppose one could spend 17 nP between the t o n miIe costs of satisfied m y s e l f about the correct- Rs 11.05 crores on r o a d t r a n s p o r t ? r o a d t r a n s p o r t a n d r a i l w a y move- ness of his a r i t h m e t i c , I w i l l m e r e l y T h i s w o u l d p e r m i t the use of the m e n t In I n d i a . T h i s is based on refer to certain p r a c t i c a l a n d tech- most powerful a n d modern t r u c k s , figures quoted by the Member T r a n s - nological considerations t h a t w i l l a n d the most advanced t r a i l e r tech- p o r t a t i o n , the R a i l w a y B o a r d E a s t - affect his conclusions. niques, a n d the construction of such ern R a i l w a y Magazine,' A p r i l 1956) I n M r B e c k m a n i s o f course v e r y h i g h q u a l i t y roads a s w o u l d g r e a t l y w h i c h he indicated t h a t the cost f o r correct when he m a i n t a i n s t h a t l i k e l y p r o i o n g vehicle a n d t y r e life, a n d road t r a n s p o r t i n I n d i a a t 3 7 n P p r o f i t a b i l i t y is an excellent guide to s i g n i f i c a n t l y reduce repair b i l l s . (The w h i l e c l a i m i n g the r a i l w a y s a b i l i t y investment. However, calculations of f i g u r e s quoted i n m y a r t i c l e o f A p r i l to c a r r y goods at between 20 a n d l i k e l y r e t u r n are a great deal m o r e 25 were, as specifically stated, f o r I I n P per t o n mile. complicated t h a n he seems to i m a - t r u c k operation over l o w q u a l i t y However, the I n d i a n R o a d T r a n s - gine. R a i l w a y returns cannot be g r a v e l roads.) T h i s w o u l d lead to a p o r t Development Association has created by s i m p l y r a i s i n g charges. sharp f a l l In t o n mile costs, to levels claimed t h a t the cost of experienced In fact there is h a r d l y a r a i l w a y close to a n d perhaps lower t h a n the p r i v a t e r o a d operators in I n d i a Is as system in the w o r l d w h i c h earns the r a i l w a y cost ! T h i s w o u l d seriously l o w as 18 nP per t o n m i l e , a n d t h a t 7-9 per cent r e t u r n , in t h e expecta- undermine M r B e c k m a n ' s conclu- even this can be reduced if the pre- t i o n o f w h i c h M r B e c k m a n sug- sions. sent restrictions on vehicle u t i l i z a - gests i n v e s t m e n t in r a i l w a y s . On I n c i d e n t a l l y , the cost figures used t i o n , a n d the use of t r a i l e r s were the other h a n d m o s t successful r o a d in my a r t i c l e of A p r i l 25 refer to a removed. operators m a k e c o n s i d e r a b l y m o r e truck trailer combination in actual The f i n a l c o m m e n t o n M r Beck- t h a n 8 per cent, even a f t e r p a y i n g use. w i t h a c a r r y i n g capacity of 24.5 man's " f i n a n c i a l analysis" Is p r o v i d - heavy taxes. tons. Development w o r k has been e d b y actual trends i n Sweden. U n - T h e n it can happen t h a t there is done on vehicle combinations w i t h impressed b y the m a n y advantages 684
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