RAILWAY REVENUE

Dominion, Volume 4, Issue 1048, 10 February 1911, Page 4

RAILWAY REVENUE

Tub Hon. J. A. Millar has been making some interesting 'statements in the South respecting the results (hat tho railways may be expected to L'how b,v tho end of the financial year. The gross rcveriuo for the ten months-ended January. 1)1,, he said, was £2,850,000, and he anticipated a final gross revenue for the twelve months ending March HI amounting to £3,250,000. Since £400)000. will bo a very modorate return for two of tho best mouths, we

may expect that this total will be considerably exceeded. Upon tho expenditure side Mr. Millar was vague, but lie anticipates that the ratio uf working expenses to. revenue will bo lower than last year, so that wc may expect tho books to show a final profit after the interest bill is paid. But until we have the BailWay Statement—wo shall not get it until September or October next, owing to the postponement of the session—wo shall bo unable* to say how far this result will : havo been duo to those means to which the Department resorted in order to make a decent showing for the year 190010, namely, the raiding of stores, the reduction of necessary maintenance, and the increase in fares. In tho meantime last night's l Gazette gives us the figures tor the four weeks ended January 5 last, completing forty weeks by the financial year, and from an analysis of those it is very'easy to seo_ whore the improvement'in the position has taken place. For the'four weeks the net revenue from all lines amounted to £158,914, an improvement of £17,632 upon the net revenue for the corresponding period of 1909-10. The.gross receipts went up by about £21,000, and the expenditure by about £3300. The figures for the two islands for the four weeks arc as follow: Net revenue. Increase. 1909-10 1010-11 percent. .£ j£ JJ North 77,542 , 89,429 11,887 15.3 South 61,740 67,485 5,745 9.3For the "40 weeks ended January .5, the comparison is as follows: Not revenue. . Increase. 1909-10. 1010-11 percent. North 356,912 464,492 107*580 30.1 South 377,036 419.457 42,421 11.2 Those percentage increases will probably be littlo altered by tho figures yet to come before tho 1 year ends. Tho fact is that the Northern system is still carrying tho Southern system on its back. Wc give the capital cost (opened and unopened lines) of the two systems, with interest (at 3j, per cent) for 52 weeks and for 40 weeks: Capital Interest Interest ■ '' • cost. 52 weeks. 40 weeks. £ '■"■■■ .£ ■■■ ■ ;S North 13.655,051 512,064 .393,695 South ,-. 16,499,494, .618,731 . 475,946 If wc set side by side the net earnings of the two systems for tho 40 weeks, and tho interest charges for that period, wo got this result: Net /Interest Profit or revenue. bill. loss. £ X ' North' 46-1,492 393,895 ' 70,597 profit South' 419,457 475,940 56,489 loss That is to say, the Southern lines are losing money which tho users of the Northern lines aro expected to make good and to supplement with further profits. Mr. Millar has never attempted to defend this policy, which looks this year like producing over 5. per cent from tho Northorn lines and substantially less than 3j per cent; from; the South. Wo do not;urgo that, ; in ordor ;to alter a position which >iis< not; only full of injustice, but also bad busi-. ness, ho should penalise the South..'. What we do suggest is that the figures we . havo quoted—and. for years they have tended the same way as wo havo proved a hundred times —aro conclusive evidence ..that the national interest, no .less than ordinary justice, roquircs ; (l) that tho working .of the over-railed Southern system shallbc honestly and efficiently revised, (2) that tho, development of th 6 North Island system shall no longer bo kopt back, and (3) that there shall bo such reductions of fares and freights on the Northern system as will stimulate and encourage production and communication while still securing that tho system shall pay-its i.way and provide v &■ margin, of;profit.- . <<■ ;,-..-• ■-..■