Evening Post. FRIDAY, OCTOBER 29, 1909. THE UNREFORMED RAILWAY SYSTEM.

Evening Post, Volume LXXVIII, Issue 104, 29 October 1909, Page 6

Evening Post. FRIDAY, OCTOBER 29, 1909. THE UNREFORMED RAILWAY SYSTEM.

The first annual report of the Hon. J. A. Millar, in his capacity as Minister of Railways, is not a very exciting o.- a very encouraging document. He declares that "the results of the year's operations, when compared with those of the previous year, have, on the whole, been satisfactory." This is not very high praise when one remembers that the results of the- previous year were far from satisfactory, and that the new Minister has been confidently expected to put tne working of the department on a more businesslike footing. The report does not show that the department has as yet' got much benefit from new ideas or improved methods. The gross earnings are put at £2,929,526, which represents an increase of £167,588 on the figures of the previous year, but as the expenditure has advanced by almost the same amount — the figures being £2,761,938 for 1907-8 and £2,929,526 for 1908-9— the result is that the net profit on the working has remained practically stationary. An increase of £2532 on a total of £812,179 is a negligible quantity, and there is, unfortunately, no ground for supposing that the present figures represent the true state of the case any more accurately than the old ones. The book-keeping of the department continues as before, and the payment from capitnl account of items which should have been debited to working expenses makes it impossible to accept the declared profit ns representing what hus actually iuaa earned. But, though

we cannot be sure of the actual posi- j tion, it is clear that relatively to last year and to the preceding years, there has been a decided falling-off. Ten years ago the proportion of expenditure to revenue was only 63.26 per cent., but since then there has been an almost uniform increase year by year. For j the year 1907-8 the 70 per cent, limit, was exceeded for the first time. Last year the ratio of expenses to revenue increased from tho 70.59 of the previous year to 72.19. With regard to one branch of expenditure, the Minister's report says J that "the increased cost of maintenance [ is a natural corollary of the demand I created by the expanding traffic for engines of greater power, cars and waggons of increased carrying capacity, and faster train services. . . . Tho enhanced price of materials, increased rates of wages, and expenditure incurred on the works enumerated, have had a marked effect on the maintenance expenditure which has steadily increased during the past ten years." Nevertheless, the Minister confidently anticipates that "as a result of the expenditure incurred in connection with betterments during the past few years, a diminution of maintenance expenditure |is now within measurable distance." This is good news. The case of our railways would be sad, indeed, if one effect of our prosperity was to make them increasingly unprofitable. As a matter of fact, maintenance makes a rather better showing during the past year than either the traffic or the locomotive branches of the department. For the current year, which has made a good start, Mr. Millar estimates a gross levenuo of £3,050,000, and an expenditure of £2,143,500, which will repre- 1 sent a slight improvement c%» the last figures. But these estimates are apparently along the old lines, and the public is anxious to know when he is going to strike out along the new lino of which he has dropped a hint now and then. When he took charge of the de- j partment, he asked for a year to get a grip of the subject before undertaking any drastic changes. , The year has nob yet expired, but the country is entitled to know in what direction his mind i* working, and what, sort of reform it may expect during the next financial year. If his reform, scheme which ia to make the railways pay is not yet j fully formed, he can at least indicate some, of the leading features.