Under these circumstances the directors decided that they had no option but to renew the two fast tracks of the main line with 92-lb. rails forthwith-this to be the start of a similar renewal for the whole system-but it was not easy to see how so expensive a work was to be

paid for. We have seen (page 261) that it had become, very properly, the settled policy of the Board not to capitalise renewal charges of this character; but in the existing state of the Company's finances, it hardly seemed practicable to add to the heavy burden already borne by revenue for the up-keep of the permanent way. It was, however, reasonable to suppose that, once the heavier rails were laid down, the current maintenance expenditure would become less. Accordingly, it was decided to deal with the expense by means of a "permanentway renewal suspense account," to be gradually liquidated by the charging to revenue, every half-year or year, of a sum rather above the present ordinary expenditure on maintenance and renewal, and consequently considerably in excess (as it was hoped) of what that charge would become as soon as the heavier rails were in use.