THE RAILWAYS

Dominion, Volume 12, Issue 55, 29 November 1918, Page 6

THE RAILWAYS

: GOOD YEAR IN. SPITE OF WAI CONDITIONS | HEAVY EXTRA EXPENSES ! THE DEFERRED 1914 PRC !, GRAMME ' i ■' ■ i ...,-■ I The annual Railways Statement v i. presented to the House of ,I?epresen j tives yesterday afternoon by the Mhi : ter (the Hon. W. H. Herries). I ■ following is the text of the Jiiniste I introductory summary:— \ j Notwithstanding the conditions exi | inR throughout the whole year, the gn ! receipts' amounted to an t i vanee of .£487,700 on the estimated n j enue. I Comparative Results, :■ Year 1918. Year 19: i ■ ,44 ! Total earnings 4,687,700 .4,800.5 ! Total' expenditure 3,042,907 2,926,5 ;" Net profit on workj ing ,£1,644,793 ■; J81.873,9 b:",,T.:'""■;■:•.-•Results'-of Working. ' The following is a. summary of the l '• ejulfe of working for the year endii j--March 31, 1918, as comnnred with 1917: |, - 1917. 1918. !■■ Total miles open I for traffic 2,970 2,9 i' Average • miles | ! open for year ... . 2,970 2,5 i'. Capital cost of ji opened and un- :■ opened lines i 35.187.173 .£38,798,11 i,Capital cost of . | open lines 435,378,664 ,£36,001,4; J Capital coat per ' '.-. mile of open > lines i 411,912 412,0! | Gross earnings ... .£4,800,810 44,6'87,71 j.Working expenses 42,926,864 43,042,9) I.Net profit on . ;:■ working 41,873,946 41,644,7! of pro- ":. "'tit'"- to capital , invested 5.30 4.1 ' Percentage of :' working expenses L to earnings 60.97 64.! •Earnings per aver- ;: age mile open... 41,619 41,51 '<: Working expenses '.'■ per i average j: mile open ". __ . 4987 41,0s i Net earnings per : -- average ■' mile \ open. .".: 4632 455 'Earnings per train i'.mile 125.75 d. - 150.50 c ; Working expenses i per train mile... 76.63 d. '97.54 ci r'N'et earnings per !', train mile 49.12 d. 52.96 d i Passengers, or-' t;'dinary 14,173,115 11,408,15 f Season tickets 355,832 322,48 i Goods tonnage '5,826,265 5,373,13 i ;Live stock' tonnage 412,908 .369,83 |-.Train mileage 9,146,331 7,468,64 i {Locomotives • -607 62' 'Passenger cars .... 1,480 1,481 ''.Wagons and brake i' vans 22,380 f 22,51' V Extensions opened during the year:— !:-' . M.ch. , Matawai-Motuhora 462 Waiuku branch 5 ' 0 |. WBangamomona-Kohuratahi i 50 ;';' Eaetihi branch. 8 38 ; . Bonuses to Staff, : With a view to mitigating to some exi'tent the disabilities under which the [lower-paid members of the Eaihvay_6ervice labour in respect to the enhanced : ; cost of living, a war allowance at the fiate of 415 per annum was granted .to : married members of the First Division in ! receipt .of salaries not exceeding 4220 ■per annum, and Is. per day to all mar'ried members of the Second' Division. | These allowances, became operative on rDecember "9"' 1917,'afid are in addition to ■ theVar bonus granted on April 1, 191G, jto members of the. Bail way staff- in receipt ; of not- more than 431,5 per .annum fnritTstil in, operation; '. ",The actual exitienditure involved in-the allowance and ibonus is 4230,034. •

! War Conditions. ; :■ The volume and movement of railway :business were detrimentally affocted by 'the retardation of overseas shipping consequent on the war conditions. Our local manufacturers wero unable to procure _ essential materials from abroad, freezing:'.works and stores were blocked, 'and-the movement of live stock and the products of other 6taplo industries were restricted, and the result; is reflected in ithe railway receipts for, the year. The Eear has been one of exceptional difculty to the Department, hut the same ipolicy has been carried out as was inaugurated at the commencement of the war. (1) To release for duty at the front as.many fit men as possible among the employees of the Department, consistent with carrying on'the absolutely essential business of the pominion; (2) satisfy the requirements of the Defence Department with respect to transport'of men and stores with promptness and dispatch; (3) to transport to the various ports of the Dominion as quickly as possible all munitions of war and foodstuffs purchased by the Imperial Government,'and all other goods required for .the-maintenance and support of the Allied armies or peoples; (4) to maintain a-strong "financial position; (5) subject to;:the-above conditions, to give the best service"'.possible'.'to tho people of the Dominion.' In.order to carry out the first item of the policy it was found imperatively necessary to curtail railway services. Accordingly, all non-essen-tial train services, especially those for pleasure or recreation, had to bo eliminated, and the travelling facilities generally considerably reduced. All. essential- business has, however, been carried bn without serious inconvenience or loss, [would further'point out that even if there had been no shortage of staff due to releasing men for war purposes, the serious shortage of coal during the year under roview would-have compelled .an' elimination of those train services that n-ere non-essential. When travelling conditions in New Zealand are compared with the real hardships imposed on. the users" of the railways in the Homeland in order to liberate men for military services the restrictions imposed in the Dominion sink into comparative insignificance. It is pleasing to record that the majority of the users of our railways have been patriotic and public-spirited Snough to regard such-inconveniences as :hey have had to suffer as a war service rendered to the Empire. I do not anticipate that any material , improvement irill' take place in' the shipping during ;he current year, and am constrained, iherefore, to take'a conservative view in •'orecasting the revenue and expenditure ;or the year ending March 31,'1919!'Hav-. ■ng regard to tho existing circumstances [ estimate the revenue at ■ ,£4,725,000 and ;he expenditure at ,£3,244,231..

Financial Position Excellent. ; With reference to the financial posiiion, I.am pleased to be able to say that ;he position is excellent, as will bo seen i'rorn a study of tho tables attached fo his report. The interest earned on'capiial invested, though not quite so high is that of 1 the previous record year, is >ery good, and compares favourably with ,he returns shown in the Australian Hates.. A study of tho comparative .tatements will, show that the financial •esults of. the working of tho New Zeaand railways during the war period are 'uperior in nearly every respect to those if the railways of the Australian States. )uring the year under revioiv the whole if the war bonus granted in the previous tear-.-was charged against tho working ixpenses of the Department, instead of leing paid hy the Treasury out of a eparate fund, as in the previous year. ?his amount and that portion of (ho alnwance to married men previously menioned which came into the financial year idded a sum of about £230,000 to tho expenditure of the year under review. To neet this extra expenditure a 10 per cent, ncrease was made on fores and freights, rith certain exceptions, which increase amo into operation on November 25, 817. Certain anomalies of long 6tandEt with respect to freights wero also idj'usted.. The greatest care has been aken to atrictly limit the expenditure

upon new works, additions to buildings, etc., and I regret lo say Hint many reasonable requests from users of the railways for improvements have had to be refused in consequence. The addition, of the bonus and allowances for married men, and the enormous increase in the cost of materials, as shown- in detail in the General Manager's report, made an increase in'expenditure inevitable, despite the utmost care. Notwithstanding these facts, the total increase, 171 gross expenditure in "four years of the war from March 31, 19U, to March 31. 1918, is only .£162,581, which is not a large sum considering the bonus given and the increase in the price of material, and compares very favourably with the increases ifc gross expenditure in such States as New Soiith Wales, Queensland, and South Australia. Notwithstanding the fact that prudence and the exigencies of the moment impel me to make a conservative estimate for the ensuing year, 1 desire to again. emphasise the desirability of making adequate -provision to enable the scheme of works outlined in the general manager's I special report of 1914 to be commenced I as soon as ft is practicable to obtain men and materials and pushed on vigorously until finished. Unless this is done it is obvious, from the development that has taken place in the railway traffic despite the four years of war conditions, that very serious congestion of business will inevitably occur as soon as normal conditions are again restored. I desire to place on record my sincere appreciation of the loyal and valuable services rendered by the railway staff during, a year :of exceptional difficulties. Superannuation Fund, The total'amount standing to the credit of the Government Railways Superannuation Fund at the end of the financial year was £373,098, a decrease of ,£4487 on the balance to the credit of the fund on March 31, 1917. The gross income for the year was .£123,927 65., fid., and the outgoing amount ,£128,414. Of the latt°r sum .£95,971 represented grants to 1046 members of the service who have retired voluntarily'or have been retired medically unfit, and 280 widows and 377 children who are dependants on deceased contributors to the fund who were members of the service at the time of their death, lhe income from the actual contributions of members totalled £81,250, or r? 1 . 7 '. 0 less tn '"- n the estimated annual liability. The receints are. however, augmented by the Government subsidy of £25,000, and amounts received bv way of interest on funds invested and fines'imposed under the regulations, and a donation: these amounted to £17,678. Financial Results of Working Last Four ' Years. Per- Net /centage EarnWorking ings ... Interest ex- per on penses Train- ' Cost of to mile , Net .. Open Earn- in Revenue Lines, ings. Pence, lear. , „£ • £ e .d. 1914-15 ... 1,185,002 310 7 71.14 30.21 ! 1915-16 ... 1,637.473 414 4 61.00 42.00 1916-17 ... 1,873,948 5 511 C 0.97 49.12 1917-18 ... 1,644,794 412 0 64.91 52.93 J Comparative Statement showing the Fi- i nancial Results ,of Working on the 1 Australasian State Railways-for the < last Four Tears (taken from the lat- I est Official Records). , 1 Percentage of Net Earnings to Capital. ( >" 3* 1" 3 " £ n • If '»' A < . k fc £ ' fc" Q m £'£ 1914-15 3.53 2.00 3.60 4.03 1.81 3.30 210 1915-16 4.72 3.13 3.45.-2.72 2.40 3.37 2.07 1916-17 5.30 3.56 3:50 2.17 3.06 2.46 1.04 1917-18 4.60 4.18 4,10 1.55 - - - Percentage of Working Expenses to Earnings. !>' i> 2 3 u . . < -Z 5 < ' § ® .2 « §. ■ i >< K >.x b w t- & 914-15 71.14 72.76 69.73 62.67 82.99 72.77 69 90 915-16 64.0064.94 70.71 73.29 78.63 72.39 71.44 916-17 60.97 63.83 70.59 78.14 75.89 77.15 84.92 917-1864.9163.82 60.34 84.75 - - -

GENERAL MANAGER'S REMARKS

'THE REDUCED TIME-TABLES.

Following are extracts from the report of the General Manager:—The train mileage for the year -(7,468,646 mi'lei) was 1,677,685 miles less than' the preceding year. Passenger and mixed trains decreased 1,264,710 miles, and goods trains 412,975 miles. The reduction on the North Island main lines and branches was 984,000 miles, and in the South Island 093,000 miles, due to drastic curtailment of services and severe restrictions of goods traffic for three, weeks in April and May, 1917, under the coalsaving time-table, and by a reduced service brought into operation on May 14, 1917, for the purpose of enabling the Department to continue releasing drafts of men for service with the military forces at the front. The curtailment of trains under the staff-saving scheme was less drastic than under the coal-saving timetable, but it nevertheless involved the suspension of one through express train each way between Auckland and Welling, ton, and between Christchurch and Inivercnrgill; reduction of week-day suburban services; the discontinuance .of Sun* day suburban trains,. and abolition of all excursion trains and trains to'and

from racecourses, sports : meetings, picnics, etc.; and limiting tlie hours during which the lines would he open so as to avoid night shifts as far as possible. The decrease in the goods train mileage is due partly to the falling off in goods and -live stock traffic, and partly to economy from grade easements and the use of larger engines. Train' services were

disorganised by floods and slips, involving in some cases suspension of trains and serious delays in others.

Passongcrs' Meals,

During the year the running of diningcars on the express trains was discontinued, and with a view of meeting the requirements of the travelling public the Department took, over the refreshment rooms at Mercer, Frankton Junction, Mnrton, P.almerston North, a„nd Ilawera in tho North Island, -and'Ashburton and Oaniaru in tho South Island. In addi-

tion, a refreshment room was opened at Christchurch. ami the Dunedin room was also reopened during the Christmas and Easter holiday periods. This alteration

has increased the capacity of each train on which dining-cars were previously run by one passenger-car. thereby jroviding accommodation for additional passengers. At the same time a total of sixteen cars were released for fitting up as Ordinary passenger vehicles, providing immediate seating accommodation for 500 passengers. Haulage charges were saved, and the public requirements in respect to meals better met.

Future Revenue and Expenditure, The restrictions en oversea shipping created by war conditions materially affected the volumo and movement of | railway traffic. Manufacturing industries were rtnablo to obtain essential materials from abroad, and freezing works and stores became glutted with meat and other local products for export. Although additional storage space was provided by some of the freezing companies, the mnrgin between the normal and increnscd accommodation was insufficient to counterbalance the loss cf room resulting from want of ships. Passenger traffic was also affected by the fall.ing-off in the number of oversea passengers arriving at and departing from New Zealand. The absence of so many young men on military service, and restrictions to travel imposed under the coal and staff-saving time-tables have also had nii adverse effect on the passenger business. Shortage of labour and inability to procure essential materials from abroad, have seriously restricted the operations of manufacturing and other important local industries. This condition is reflected in thi! decline of the railway goods business. Higher Prices. There has been a further hardening of prices in essential railway materials, and it is impossible at the' present juncture to form any opinion as to when this condition will alter. The extent to which the expenditure of the Railway Department is affected by the present prices will be apparent from a perusal of the following figures, which give the pre-war prices of 1914 and the rates ruling to-day for the same material, the Inst column indicating the increased cost to the'Rail- \

way Department at normiil ralo of consumption ;— In- ,, , . , crease. Material. Bates. ' Canvas for 1914. 1918. tarpaulins, £s. d. £s. d. £ ' per yard ... 0 1 1 0 5 2 2-1,500 Spring steel, . per ton 11 15 0 CO 0 0 G.COO Sleel plates, per ton ..... 810 0 8-1 0 0 28,400 Bar iron, per ton 10 0 0 24 0 0 23,G00 Cotton-waste, ' , Per ton 30 0 0 70 0 0 5,000 Boiler-tubes, per foot ... 0 0 5 0 2 1 .27,200 Galvanised iron, per ton 14 0 0 80 0 0 19,100 Pig-iron, per ton 4 0 0 16 0 0 .24,200 Drawbar spring, each 05 0 010 3 2,500 Cooper plate, per ton 90 0 0 236 0 0 3,400 Copper ingot, per (on SO 0 0 135 0 0 0,600 Tin ingot, por ton 170 0 0 300 0 0 2,200 Gas-making oil, per gallon... 0 0 10} 0 1 11} 3,600 Valvo oil, per gallon 01 11 03 0 1,400 Castor oil, per Kiillon 02 9 05 3 8,000 Linseed oil, per Ballon 03 0 07 8 5,600 Carbide of calcium, per ton 14 0 0 64 0 0 7.0C0 .£198,900 Although the foregoing: statement does not by any means exhaust the list of materials used by the in tarrying out.its everyday operations, it represents an additional war expenditure of =£193.000 per annum. There are many other lines of material used in large quantities in railway workshops, the prices of which have advanced in practically' the samo ratio as those in the examples triven above. While the present unsettled conditions exist it is practically impossible to forecast -with any certainty to what extent the railway expenditure will be affected by the end of the year and afterwards.

Coal, In common with other commodities the price of coal for locomotive purposes has materially advanced during the year. The increased expenditure for. West Coast coal (including steamer freights) delivered at main ports, such as Wellington, on the railway consumption of 150,000 tons per annum, was 430,000; on Newcastle coal it was 436,500; and on lig--1 nitcs it was 47000. Assuming that no further advance is made in the price of coal, the increased cost to the New railways 'on locomotive coal (lignite, West Coast and Newcastle) for tho year ending March 31, 1919,.wi1l be about 4200,000 greater than it was nl March 31, 1914, the cost (including freight) having in the interval risen by 62 per cent. The difficulty in obtaining coal for locomotive purposes has been most acuta throughout the year, and on more than one occasion the Department's stock of coal on hand has been reduced to perilously low dimensions in spite of the restricted time-table. It is a fact that had the train mileage not been reduced on account of the depleted staff, reduction on similar lines would have been forced upon the Department in order to conserve the available coal stock.

Railway Improvements, The amount expended during the year in connection with works authorised by the Railway Improvements Authorisa"tion Act, 1914, and charged to capital nccount was .£111,720. At the outset I regarded the improvements, sanctioned in the 1914 programme as urgent, and being a first 6tep towards bringing the railways up to date and into a state of thorough efficiency. It is a matter for regret that the war conditions have precluded the possibility of obtaining sufficient funds to enable a commencement on a comprehensive scale to be made on the scheme. The practical stagnation in progress on the authorised improvements, although' doubtless unavoidable on account of the war has been most disappointing to me,, and the prospect of' a continuation of the stagnation in respect of essential railway works will certainly be very disconcerting and a source of .wive- anxiety' to those responsible' for the future management and. working of the railways. I cannot too strongly urge the necessity of pushing on energetically with the 1914 programme at the earliest possible' moment. The prosecution of tlu'sc works on a largo scale immediately peace conditions become re-established will ope:) up a profitable revenue of employment to a large number ol returned soldiers.

Notwithstanding the ncute war conditions the cross annual earnings of the railways have increased by nearly ,£OBO,OOO in the period that has elapsed since the recommendations were made in 1914. The urgent need of making arrangements to complete the scheme within five years was stressed when the scheme was promulgated, and has been referred to in the railway report for each succeeding year.

. The five years' programme sanctioned in 1914 would, under normal conditions, now be Hearing completion, and the Department and the public now he reaping the advantage of tho increased facilities. It was proposed that on the completion of this programme in 1919 it should beimmediately succeeded by a second five yours' programme (1919-24), a steady and progressive scheme of advancement in operating facilities being necessary to enable the Department to deal adequately and economically with the inevitable development of business in a young country.

The completion of the 1914 programme cannot now be expected earlier than the year 1924. The Department will- be greatly in, need of the improvements embodied in this scheme as soon as the bli-iliting effect of war has lifted from New Zealand, and unless sanction is granted for a second programme of improvements to run concurrently with ithe 1914 programme Now Zealand railway facilities will ha insufficient to cope with the .business offering in the near future.

I propose to submit for consideration, on completion of my service with the Government a( tin termination of the current financial year, a memorandum embodying . a list of additional railway works which should be taken in hand as soon as circumstances will, permit, and also dealing with certain questions

in connection with railway organisation and administration which, in my opinion, should in the general interests of efficiency bo brought up for serious-ro-view at an early date.

Railwayman at the .Front'. At, the ond of Inst financial' year it was found necessary to revise the timetable for the purpose of releasing a thousand additional railwaj-men for military service. The Department has continued the practice of sending drafts into camp regularly. The number of men released for military purposes during the year was 1250. The staff have ably seconded (he efforts of the Department to meet public requirements under war conditions. Threo hundred and sixty of their comrades have made the supreme sacrifice at the front. Having regard, therefore,'to what they have done in the past, I am confident that they will continue to meet their obligations and zealously perform any duties devolving on them as a nalionnl service. As n consequence of the inroads mnde on the staff the'Departmeut is finding it increasingly difficult to provide for the everyday requirements of the business and to do more than carry out ropaijr, to rolling slock anil appliances. No new works ofi nnv magnitude can bo undertaken, and even repair work is retarded .by the difficulty of obtaining sufficient skilled labour and in somo cases inability to get material. The motion to table the report was adopted after considerable discussion.