THE RAILWAYS.

Press, Volume LXVIII, Issue 20647, 9 September 1932, Page 12

THE RAILWAYS.

IMPROVEMENT IN NET REVENUE. HEAVY REDUCTION OF COSTS: Tor the four-weekly period ended August 20th, the net revenue of the New Zealand Railways increased by £48,904, making the total net revenue for the period April Ist-August 20th greater by £62,104 than tho net revenue for the same period last year. A reduction in revenue over this period by £187,061 was more than met by a reduction of expenditure by £249,165, representing an average decrease for this portion of the year of ovor £12,000 a week. . , These figures were issued last.night by tho chairman of the New Zealand Eailways Board (Mr H. H. Sterling). Commenting on the general position of the railways, Mr Sterling said he thought the public might find a great deal of satisfaction in what had ' been accomplished during the past year. At the risk of repeating previous statements, ho would recall that an actual increase in the net revenue had been achieved during the year ended March 31st. During the present financial year in spite of substantial losses in revenue through strikes, particularly in the coal industry, the Board had been able to increase still further its net revenue. Up to tho end of the July period there had been an increase in the net revenue of £13,000 compared, with the previous year, notwithstanding the fact that the effects of the depression had continued to manifest themselves in a still further decrease in revenue. "The improvement in the net rovenue position has been achieved by a continued reduction in expenditure," said Mr Sterling, "this reduction amounting to more than the drop in revenue." THE EXCHANGE POSITION, • A LONDON VIEW. Of late months, says the financial editor of "The Times," a movement has been on foot in favour of an increase in the discount on tho New Zealand pound in the interests of the exporting industries of tho Dominions, and it had been thought possible that with the. lifting of the exchange regulations an attempt might have been made by certain banking interests to move the exchange against tho New Zealand pound. The removal of tho regulations, however, has so far not been followed by an increase in the discount quoted by the banks, and apart from a few Ntransactions outside tho banks at slightly above the fixed rate, business in exchange has continued at previous rates.

An increase in the discount in the •faco of an improved overseas balance would result in a rise in the cost of imports, a burden which would probably prove greater than in the case of Australia because New Zealand is less selfsupporting than the Commonwealth. Further, a larger sum would have to be the service of New Zealand's overseas debt, Government revenues from import duties would diminish, and, at the same time, the Government's credit would inevitably deteriorate. Tho plight of many primary producers in New Zealand is admittedly extremely bad, but there are powerful roasons why assistance should not be given them by a method which would interfere with other industries, and, in view of tho greater cost of imports, would serve to increase the difficulty of reducing production costs. Within recent weokß there has been a further at-, tempt to increase the heavy discount at which tho Australian pound stands in sterling, in spite of the fact that sterling is itself at a discount of about 25 per cent, in terms of gold currencies. The Commonwealth Bank, however, which controls the exchange, appears to have held firmly to the view that no increase in the discount is justified or desirable.

STOCK SALES. AUCKLAND ECONOMIES. ' CANVASSING ELIMINATED. An agreement has been reached by stock auctioneering,firms operating in North Auckland by which the canvassing of farmers for private sales of stock will cease. The new policy will come into operation at tho end of tho month (states the "New Zealand' Herald"). After remarking that under present circumstances tho stock departments of large auctioneering 'and mercantile firms had been operating-'at a loss, the manager of a prominent firm of stock agent 3 said that efforts had been made to. maintain outside staffs at the' previous level, even though reductions had been made in office personnel. The position had now become such that a ! reorganisation of outdoor staffs had | become necessary, and an agreement had been reached by the firms concerned. Previously representatives of I stock firms travelled ov«r the ' same ground in succession, and the small business they had been able to obtain was by no means sufficient to warrant the expense involved. Expensive and undue competition in obtaining private sales would now cease with the abolition of stock. canvassers, although there was nothing to prevent farmers wishing to sell privately from approaching firms. During the -past few months settlers had been almost continually interviewed by travelling representatives of stock firms, and many had regarded the visitors as a nuisance. A consequenco of the agreement would be that most farmers would offer their store and other stock at district sales by public auction, with the result that truer values would bo obtained, and the market would be stabilised, to the benefit of both the stock firms and the individual farmer. The system of canvassing which had become so prevalent had been satisfactory nei-' their to tho firms employing the men, as some companies had been forced into the practice against their will, nor to the farmor.

BEATH AND CO., LTD. DIVIDENDS DECtARED. Beath and Co., Ltd.,' aire paying a final dividend of 2i per cent, on preference shares and 4 per cent, ou ordinary shares, making 8 per cent, on ordinary shares for the twelve months ended August 19th. The dividends are payable on September '3oth. The net profit last year was 25314. The dividends were 5$ per cent, on preference and 8 per cent, on ordinary shares. The reserves were 536.079,