RAILWAY FINANCE.

Dominion, Volume 3, Issue 907, 29 August 1910, Page 4

RAILWAY FINANCE.

IS' THE MINISTER .IN ERROR? In'the course of a short editorial the Christchurcii "Press" .of Saturday last has something to say anent the remarks of the' Minister for Railways (the Hon. J. A. Millar) on the financial policy of his \Departineiit. The article states: —i "Mr. Millar said that tho cost of material and labour in relaying lines had been charged to working expenses, 'which was not done in regard to the Australian railways.' One hestitates to traverse such, a plain statement, but the annual report. of the Chief Commissioner 'of Railways in New South Wales gives tho impression that Mr. Millar has made a mistake. The commissioner, referring to the : increase of ,£323,585 in the total working expenses for the past year, as compared with the amount in 1908-9, explains that it is mainly owing to the large additional traffic, 'heavy repairs, ami renewals of rolling stock and permanent way,' etc. This additional . expenditure on ! the renewal of permanent way was certainly paid for out of revenue, whereas, even though '' tho same practice was adopted in New Zealand, a large sum of money—.f3lS,'ooo last year— annually expended on 'additions to open lines,' is-here charged to capital account. Nearly a quarter of a million that was so charged last year. was spent on such 'additions' as rolling stock, tarpaulins, a snow plough, and a motor-car for the Hanmer service.' The system of railway .finance by which such items- are charged against loan moneys is not one of which tho Minister for Railways or the Dominion has any cause to 1m proud."