WORKING RAILWAYS.

Evening Star, Issue 14965, 27 August 1912, Page 6

WORKING RAILWAYS.

HON. MR HEKRIES'B FIRST STATEMENT. INCREASED REVENUE, BUT DECREASED PROFIT. IMPORTANT PROGRAMME OUTLINED. [From Otjr Parliamentary Reporter.] WELLINGTON, August 27. Several outstanding points make themselves manifest in the Ministerial Statement of the New Zealand Government Railways for the year ended March 31 last when compared with the previous year. For instance, though the net profit on working for the year was £1,210,613, as against £1,190,910, the percentage of profit to capital invested was 3.98, as against 4.06, while the percentage of working expenses to earnings was 67.07, as against 65.92 on the year ended March 31, 1911. Again, the net earnings per average mile for the financial year justended were £433, while in 1911 they were £435, the net earnings per train mile being 34.73 d for 1912, and 35d for l£ll. The total miles open for traffic in March 31 last were 2,808, as against 2,761 for the previous 12 months, the capital cost of opened and unopened lines being £32,689,179, as against £31,509,960 for 1911. The capita] cost per mile of open lines now stands' at £10,864, compared with' £10,723 last year. The gross earnings of the railways last year were £3,676,509, compared with £3,494,182 for the previous year, the working expenses l being £2,465,896 and £2,303,272 respectively. It is interesting to note that the railways carried: 690,521 more passengers last year than in the previous corresponding period, while the goods traffic increased by 44,464 tons'. . ADDITIONS TO ROLLING STOCK. The rapidity with which the business continues to increase makes it essential to continue building rolling stock as quickly as possible. Special efforts are therefore being put forth in this direction. The programme for 1912-13 comprises 10 engines, 67 bogie carriages, 8 bogie brake vans, 54 bogie waggons, and 837 fourwheeled waggons, so that altogether there are at the moment 64 locomotives, 120 carriages, 10 brake vans, 85 bogie waggons, and 1,937 four-wheeled waggons actually on order. The petrol motor car for trial on our lines is now almost completed, and will be placed in commission shortly. PROBLEMS TO BE SETTLED. "On taking over the control of the Department of Railways last month," says the Hon. Mr Herries, " I four.d myself confronted with several great problems that needed investigation, and, if possible, settling in a satisfactory way. The first was the question of the general managership." After referring to the coming retirement of Mr Ronayne. the Minister states that applications will be invited in London for the position of general manager. It is not intended to do away with Ministerial control over the railway policy, or to lessen the responsibility of the Minister to Parliament, but it is'hoDed_that by getting a general manager who has had experience of some of the ore at railway systems in the United Kingdom or abroad reform may be introduced into the railway system of New Zealand. The next burning question to be met is the question of' the relatione of the State to its employees on the railways. The State should "be proud of its employees in that department, as talcing then; as a whole they are a fine body of men. They had, however, certain grievances, which, in some cases, were justly founded, and last year they approached Parliament by petition. "''My predecessor, Mr Myers, I am glad to say, relicved_nie of a 'portion of this intricate question by meeting the executive of the Amalgamated Society of Railway Servants, and, by going "thoroughly into the matter with them, came to "an agreement which is satisfactory to both sides. T have also met the representatives of the Locomotive Engine-drivers, Firemen, and Cleaners' Association, and heard their views, and have no doubt that in their case a satisfactory solution will be arrived, at."

AN AMENDING BILL COMING. Remarks the Hon. Mr Hemes: "In th* case of the First Division, as soon as the question of the difference between the figures submitted by the department and by the Railway Officers' Institute is settled by the Public Accounts Committee, to whom it has been referred by resolution of the House of Representatives. I intend to meet the executive, and I have no doubt that in this case also a modus vivendi will bo arrived at. When these Agreements are come to, a Bill amending the Government Railways Act will be brought down and submitted to Parliament this session." BIG PROGRAMME FORESHADOWED. It will be necessary shortly to put in hand a number of important works that should be carried on on well-defined lines, and among these is the grade improvements foreshadowed in last year's Railway Statement. Up to the present time that portion of this most important work that i« in hand has been charged to the open lines vote, but as this provision is insufficient to meet the requirements and enable the work to be pushed on vigorously, it is hoped to deal with the matter comprehensively next session if the financial stringency is easier. INVESTIGATION NECESSARY. "Another question that is bound to give any Minister of Railways great concern is 'the question of the percentage of working expenses to earnings. _ In the tables given in this Statement this will be found to be 67.07 per cent.—an increase of 1.15 per cent, over last year, due, no doubt, to a lar,?e extent by the alteration of the classification by the Government Railways Act, 1911. This will probably be still further increased during the current year by the alteration of the classified rates which will be necessary by the agreements with the First and Second Divisons, mentioned above. This is, of course, unavoidable, as to give the employees a fair wage should be the desire of "every Minister. The- percentage of working to earnings is, however, so high in New Zealand, as compared with the Australian States, that other causes besides tlw increase of wages must be operating, which it will be my duty to investigate." A SIGNIFICANT COMPARISON.

Another problem which faces a new Minister, states the Ilc-n. .Mr Herries, is the disproportion of earnings of the two great lines of railways in the Dominion—the North Island main line and branches and the South Island main .line and branches. Tables are appended showing that while the North Island Trunk lines are now returning £4 19s 7d per cent, interest on the cost of construction, the South Island lines are only returning £o 2s per cent. Again, the r.et revenue p?r average mile open in the North Inland is £607, as against £oo3 in the South. The Minister goes on to state that though there has been a small increase in the. revenue of the South Island main line and branches during the last three years, it is not at all commensurate with the enormous increase in the revenue of the North Island main line and branches. "Of course the rapid increase of settlement and the activity consequent en opening up new country will account for a certain amount of the increases in the North Island, but the whole question requires investigation as to whether the results are due to circumstances over which the department has no control or whether tjiey are due to the management of the railways. In dealing with this matter, it is not in any way my intention to pit the North against the South, but I will be failing in my duty if I did not call hon. members' attention to the facts which I have mentioned. Unfortunately the net revenue of the most profitable line in the Dominion, situated in the South Island—namely, the Westport line—which last year returned £l2 Is lid per cent, on cost of construction, does not go to the Dominion, but goes as an endowment to the Westport Harbor Board under special Acts, and the Dominion at the same time is paying interest on the cost of construction.'

"I confidently anticipate that the prosperity that has existed of late years will continue to manifest itself during the next financial year," announces the Minister, in conclusion, " and I estimate the revenue for the year ending the 31st Mavch, 1913, at £3,745,000, and ,th? expenditure at £2.546.600."