RAILWAY PROFITS.

Auckland Star, Volume LV, Issue 114, 15 May 1924, Page 8

RAILWAY PROFITS.

(To the Editor.) Sir,—While the railway strike is still fresh in our minds, there is one point ' of special interest in connection with the annual returns just issued 'that ' seems to have been overlooked. The I men have been agitating for increased [ pay to meet the admitted rise in the cost of living , , but have been asked to sacrifice, in return, the reduction of four hours they were granted a year or two ago. Quite naturally, they strenuously oppose going back to worse conditions in the shape of longer hours, which is a distinctly retrograde step. We are told I the railways cannot be run profitably on a 44-hour basis. If we examine the returns we find the Noivth Island system made a record profit, well over the interest rate. And yet it is run on the 44-hour basis! Unfortunately, the South Island system spoiU the picture. But what is the remedy? Give the management a free hand to reorganise the Southern system without political interference, and put it on a business footing. The unprofitable services could be curtailed gradually without any disturbance of the labour market. The railway.? are continually absorbing fresh hands to replace men retiring, leaving, or dying. While the Southern services were being reduced to a business level by curtailments, no fresh men need be engaged, so that the position would right itself automatically. Further, the North Island system is continually expanding and ab- I sorbing more men, so if preferable, some ! could be transferred North, if they so ; desire. The whole thing could be done so i gradually that there need be no disturb- ' ' aiico anywhere- With the South Island system paying as well as the North, there would be sufficient money to pay , the required rate of interest, besides , the money required to bring railwayi men's wages up to the old standard they are asking for, and on the 44-hour basis, too. We should then have a contented service, and the required rate of interest jon the money invested in the railways, j J I am, etc., J. RELLUF. I