RECORD RAILWAY RESULTS

Dominion, Volume 9, Issue 2764, 6 May 1916, Page 6

RECORD RAILWAY RESULTS

. The past year has been a big one with the New Zealand Railways service. The summary of the year's operations, which appears in this week's Gazette, disclosed record figures, and there are in addition, other features which afford reason for congratulation. The .total revenue for the year amounted to £4,548,355, an increase of -over £442,000, compared with the previous best of last year. -The expenditure, on. the'other hand, £2,910,882, showed a drop of "a little less than' £10,000, a condition of things which would seem to point to more economic management and a step in theright direction. The net profit on working for the year was £1,637,473, which is £452,570 better than the.return for the previous - year. The North Island railways'again show to much better advantage' than ' the' south, the North Island' Main Trunk lino being responsible for .an in J , creased revenue, of £344,694, as against an increase. ..of £98,205 on, the Main 'Trunk line in the. south.. .The net profit of "the North IslandMain Trunk line was £974,384, white the' Main Trunk lino in the south," which was constructed at' practically' the same capital cost, showed a net profit of £495,830. It is not possible on the information supplied to stiito exactly the..per'centage:.cjf'.profit to capital" invested. The return published does not disclose the addition to capital cost during the year. The amount, . however,' can- be- : mated with sufficient, certainty to, afford a closer . idea of the approximate position. ■ Last year the capital cost of . open lines was" shown" in" the ' Bailways Statement: to be - £34,133,825. Taking previous l year;? as a guide the additions'during" the past year should not' 'have ' increased . the amount beyond £35,500,000. Assuming this to be'the Cass, and.it is,a fairly safe'assumption, the net earnings for the past' year amount to 4.61 per cent, on v the capital cost .of our working railways. VThis is -byfar the best return on record. To appreciate this.-we may . quote the' percentage of profit to capital' invested for the past t<?n years:— Year.' Percentage. . 1907 v 3.45 ; 1908 3.33 1909 3:13 1910 3.80 1911 4.06 * 1912 3.98 ; 1913 '4.M 1914 3.61 1915 3.53 -. i *1916 : 4.01 "Estimated. •

It ■is possible .tliat the figures foi 1916 may prove to be a little more or' a little less than shown above, but. it is safe to predict that the Stato Railways for the ;past year have earned at least <U- per cent, on capital cost. ' This is not only a long way the best on record, but it comes . at' a most opportune time. The Minister (Mr. Herries), the General Manager (Mil. Hiley), and his assistant (Mr. M'Villy), and staff are to be congratulated on the results disclosed, more especially on the marked reduction . in the percentage of working expenses to earnings. The Railways. have not only paid their Avay during .the year, but for once have shown a useful margin* on the'right side. *