N.Z. RAILWAY FINANCE.

Auckland Star, Volume XXXIX, Issue 42, 18 February 1908, Page 4

N.Z. RAILWAY FINANCE.

INTERVIEW WITH, MBv B. KENT.

CHAMBER OF COMMERCE'POSI- . TION DEFINED.

NOT ANTAGONISTIC TO i THE •■ .-■> -:.." GOVERNMENT; ?'-.

In view of the statement published yes-terday-from Sir Joseph Ward regarding New Zealand railway finance, a representative of the "Auckland Star"'waited this morning upon Mr. B. Kent (of the Shipping and Railways Committee of the Chamber of Commerce) to .ascertain if there really is any political feeling on the part of membek** as against the Government. "Aβ a matter of fact, , * said Mr. Kent, "the chamber is neither for nor against any Government, because we are a strictly non-political body of merchants and professional gentlemen, and it is our duty to look after the commercial interests of Auckland irrespective of any particular Government that may be in power." "Then with regard to this matter of railway finance, your committee simply reported dispassionately on the matter submitted to you?" "The position is, that in this instance, a certain amount of information from Professor Le Rossignol about our railways was placed in the hands of the committee of which 1 am chairman, for examination. Our committee, after going into the matter very carefully, have reported against the gentleman's methods of dealing, with railway accounts." "The Premier seems to have considered your report as being against the j Government railway policy." "I am sorry fer that, but the Premier has done himself an injustice when he charged the Auckland Chamber of Commerce, 'with having stepped in and taken sides with both Professor Lβ Rossignol and Mr. Samuel Vaile.' We have done no such a thing, and I can only explain Sir Joseph W.ard's attitude to the chamber in this matter, that being an exceptionally busy man, he has not-been properly advised of the true position as far as the Chamber of Commerce is concerned." "Your report seems to have made that pretty clear." "Well, I thought so; from the- tabulated statement of the professor as to' the receipts and expenditure of our railways, he shows that we have made a net loss of £4,380,147 in 10 years. Now there is no doubt whatever that statement is grossly incorrect, because it is not right or just to charge &11 replacements and new plant to revenue account, and that is what the Professor has done, because in the same 10 years . he has an item (and it is the only item dealing with replacement and new plant) of £3,122,478. This is all placed against revenue account. Now I propose to dhow how utterly wrong such a method of calcula-. tion is. Supposing our railway from Auckland to Hamilton was laid with 40 Ib rails, but in the course of years, on account of increased traffic those rails had to be replaced by others of OOlbs. The difference between replacing the 40 lb rails with those of uOlbe must be put justly- to capital account. Many other illustrations of a similar kind could be given, but that one Is sufficient' for my: purpose. Of course, in allocating*-all such amounts to capital acconnt, there should be a sinking fund, so that the capital account may 'be gradually relieved of this extra plant charge, and the amount thus gradually placed over a period of years to revenue account Whether or not that is done by our Government I am not in a position to say. I am quite sure that a perusal of that report by Sir Joseph Ward would convince him that it is drawn up in a very careful manner, and I am sorry this misunderstanding has arisen."