THE RAILWAYS.

Auckland Star, Volume LI, Issue 118, 18 May 1920, Page 4

THE RAILWAYS.

The Railways have had a good year. Taking a conservative view, Mr. Massey estimated in his statement last session that the revenue would reach rive millions and the expenditure would be three and a-half millions. Instead of that the service earned five and three-quarter millions and the expenditure went up to over four millions. All things considered, especially ilje coal shortage and the consequent restrictions, this is a satis-j factory record. The earnings were £4,687,000 in 1918, £4,988,000 in 1919, and £5,752,000 in 1920. The total increase in expenditure between 1918 '■ and 1920 has been almost identical with the increase in earnings, but the "Dominion" estimates that there has been an appreciable decline in the percentage of net return on capital invested.. This return was 4.60 per cent in 3018; last year it rose to 4.65; and now it has declined to 4.55 per cent. As usual, the returns open up a number of fields of discussion. There is the higher earning power of the Northern lines as compared with the Southern. In the North Island 1269 miles earned a net revenue of £1,007,000, while in the South i Island 1727 miles earned only £549,000. The claim of the. North for a vigorous policy of extension is undeniable. Another point is the urgent need of more rolling stock and the speeding up of the terminal improvements outlined by Mr. Hiley. The returns show substantial increases in goods as well as passenger traffic, but. a* everyone who has to deal with the railways knows, the shortage jof trucks is acute, and serious for tlio development of business. Lastly, there is the question of railway charges. A I large increase in wages charges i-< inevitable, and unless the Department takes I leave of its senses these will have to come Unit, of railway revenue. Mr. Massey recently put out a memorandum from the Treasury, in which the secretary said the only means he could suggest for I meeting the increased demands of public I servants was the imposition of fresh taxation. The " Railway Review," i the organ of the A.S.R.S., lias some interesting comments on this. It argues quite rightly that increased wages charges for the railways should come out of railway and not general revenue, and it contends that railway charges arc too low. It alleges that the increase in NewZealand rates lias been lower than the ! increase in New South Wales rates, and I much lower than increases in other countries, which have ranged from 30 to ISO per cent. It charges ihe Department with tinduly favouring the farmer. "The rates charged for conveyance of aheep are substantially the same as in the days when sheep were worth 5/ a head.'" We wonder how much (if any) e-xaggeration there is in this criticism. Certainly it will be Mr. ilassey's duty to make the railways pay their way, without favour to any special class of the communit3'. To put a railway deficit on to the general taxpayer would be utterly unsound.