HIGHER COSTS

Evening Post, Volume CVI, Issue 54, 12 September 1928, Page 10

HIGHER COSTS

RAILWAY OPERATION FINANCIAL POSITION Some indication of the causes of tho adverso financial position of the Railways is given in tho Railways statement which is now beforo Parliament. Exclusive of annual season tickets issued to members of tho Legislature, which were not included in the returns prior to 192G, the average revenue per season ticket journey was 3.5 din 1928 as compared with 3.7 in 1914. The number of passengers carried at season-ticket rates was 42 per cent, of the total in 1914, 47 per cent, in 1921, and 63 per cent, in 1928, while the sea-son-ticket revenue for the correbponding years was 10 per cent., 7 per cent., and 12 per cent, respectively of the total passenger revenue. The decline in revenue has not been followed by a commensurate' decrease in expenditure. On the contrary, it has been necessary to provide increased and faster train services, together with improved facilities and rollingstock, in the endeavour to meet competitive conditions and retain a fair share of the business. ' The passenger train mileage increased by 27 per cent, —from 3,082,000 in 1921 to 2,725,000 in 1928; while the revenue per train mile decreased from 207 dto 131d —equal to 37 per cent. Every endeavour has been made to reduce costs, but the total running-expenses have increased considerably. Higher train speeds have resulted in greater expenditure on maintenance of track. Improved standards in the comfort of passenger accommodation have been followed by a constant increase in capital cost, mainteuanco expenses, and tare weight of carriages, with a reduction in carrying capacity. In order to encourage traffic, selling and publicity organisations have been built up, improved booking facilities have been provided, and every avenue for exploiting the business has been thoroughly explored. While there is no doubt that this policy has been abundantly justified, it is unquestionable that the cost of carrying a much smaller volume of passenger traffic has increased, both actually and relatively, and the financial position of the railways has been seriously weakened.