IMPROVING RAILWAY REVENUE

Auckland Star, Volume XL, Issue 203, 26 August 1909, Page 5

IMPROVING RAILWAY REVENUE

STATEMENT BY HON. J. A- MILLAR. Speaking to a "Dominion" reporter, the Hon. J. A. Millar, Minister for Railways, stated that the railway revenue for the four months from April 1 to July 24 ehowed an increase of £143,000. The Increase had, he continued, been effected for an additional expenditure of £73,000, or approximately 50 per cent of the increase in revenue. It was worthy of note also that the period covered was the worst in the year. Neither the Main Trunk nor the Manawatu lines came into the previous year's figures. Mr Millar went on to say that the increase was due in a largo measure to the fact that there had been a remarkably good grain season in the south, and partly to various economies which had been effected. It was his intention to make still further reductions in the matter of expenditure, but he did not anticipate that the railways of New Zealand could be worked at a cost of 50 per cent of the earnings. Speaking approximately, the railways had, in recent years, earned 3J per cent on capital cost, and he did not see why the net return should not be brought up to at least 3i per cent. "If," added Mr Millar, "we bring the expenses down to 64 per cent or 65 per cent of the revenue that will then (on our anticipated revenue for the year) leave pretty well one million towards payment of interest."