GOVERNMENT AND THE MANAWATU RAILWAY.

Press, Volume LXV, Issue 13379, 22 March 1909, Page 6

GOVERNMENT AND THE MANAWATU RAILWAY.

Holding, as -we do, that most industrial undertakings are better managed by private enterprise, we arc not at all surprised to find that there is already a good deal of disappointment over the result of the Government taking over the Wellington end Manawatu railway. If there is anything that the State ought to be a.ble to manage wetLl 'it is the business of transportation, especially when it is assured a virtual monopoly. So far as the Wellington and! Manawatu railway is concerned, however, settlers along the route are not only complaining of an increase of railway charges, but are ateo confronted with the prospect of an increase of the rate* levied: 'by tho local bodies. This is due to tho fact that while the company had to pay a very heavy share of such rates, the State railways are in law not liable for contributions to local bodies. It was stated by a deputation which waited: on the Minister that unless tho Government made some concession, the local bodies interested! would lose over £1000 per annum in the ehapo of general rates. Mr Mittar, in reply, said that the Government could not see its way to pay any of tho general rates. This is quite right., since no payments are made in respect of any of tho other Government railways. Mr Millar, however, stated 1 that he was not sure whether, under the Act, the Government was not legally Katie for special rates, and on this point lie is going to consult th© Grown Law Officers. Tho Government are also doing only their duty in bringing the charges of the Manawetu railway into line with those ruling on other sections of the Dominion's railways. There should be no favouritism and 710 preference. Nevertheless, even the most ardent Socialist must admit that the history of the Manawatu railway is a splendid record of what may be done by good management under private ownership. The company paid last year £5999 in rates' and taxes. It has kept tho railway in perfect condition as regards maintenance, has made full provision for depreciation, and after paying all interest charges has for some years past returned 7 per cent, dividend to its shareholders, whose capital interest in the undertaking has grown from* £1 to £3 per share. Tho Government made a great mistake, we think, in not securing the services of Mr W. M. Hannay, tho general manager of the company, to help them to put the State railways on a paying basis. At present tho receipts do not pay the interest on the cost of construction, no allowance is made for depreciation, and a considerable proportion of the repairs and maintenance has to be paid for out of borrowed money. It will be interesting to watch how the newlyacquired line fares under Government control. Owing to the practice of the Government hiding up the paying and non-paying sections in one general return, as in the case of the HumnuiBluff railway, it is almost impossible to find out what any particular section is, doing, as we have discovered to our cost in connection with the Lyttelton line. We hope Parliament will insist on the Manawatu and other sections being shown separately in the returns, and if this is done we venture to predict that the results will prove the marked superiority of private management of railways as compared with State control.