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Evening Star, Issue 15929, 8 October 1915, Page 4

It is a tomnlir-giy easy thing in a Minister of Finance to collect increased additional revenue from Railway Fares the railways, and the and Freights, facility has proved t.;o alluring for the New Zealand Go-eminent. The ordinary business principle of making income meet expenses justified—indeed, made incumbent —fionre increase in charge*. The following statement (font the Budget shows that the ■war has given rise to an augmented cost in running the railway;: Ibices of materials required for the maintenance and extension of the services have risen enormously. 1 may give a few instances; The cost of canvas has increased 100 p-er cent., rails 12 per cent., fastenings 9 per cent., steamer might on rails 102 per cent. Girders, ironwork, and general materials hade also increased greatly in price. in the locomotive branch an average increase ot 40, per cent. Ims taken place in respect to materials used in building and repairing engines, tars, and waggons. In view of the foregoing and the fact that indications point to still further advances, it- is evident that the. department cannot satisfactorily carry on its operations and provide per cent, on the capital invested unless the rates are raised to meet the emergent conditions arising nut of the war. To meet these extra expenses the railway charges ought to he raised. The burden should not fad upon the Consolidated Find. The Government, however, have looked to the railways to provide them money for vat nuiqsstes. The Minister expects an additional revenue of £560.000. Little objection could he taken to tins had all war profits been ibid drained into the Exchequer. The outcome of aban (Inning the hist principle nt direct taxation of war profits has been to force the Government, to adopt, measures of collecting the necessary revenue which defy all attempts to adjust the burden to the strength of the back. No lax furnishes a lietler illustration of this predicament titan the tax on travelling and the carriage of goods. Fates are raised 81 per cent, and freights 10 per cent. The uniform increases in freight charges will he a grave buden to industries that are languishing on account of the. war. 'the i net eased freight- on tire- carriage of wool will fall only on exceptional profits, hut- those profits should have been directly drawn upon without indiscriminately involving embarrassed tradesmen in the burden. Tlie. uniform increase, of hues of Id in the shilling means a greater relative burden, upon second class than upon first el aw passengers. Taxation td all kinds should be graduated. The proportion of wealth taken for the State should im-tease with the wealth. We recognise this principle as jrtt in our Income Tax. As a matter of fact, however, the Government were faced witii a peculiar difficulty which made any more .substantia! increase in first class fares calculated to defeat their very purpose of yielding revenue. These are times when non are economising. Lift the first class fares'to a very high level, and people will forsake the first class for the second class carriage. Were that- to be done to any great extent the Government might find their revenue from the railways actually declining despite the increase of rates. Clearly there is much more profit from first class than from second, class passengers. The Government meet- the difficulty by maintaining the old difference between lire fir.-t and second class faros. Unfortunately, however, the result is a disproportionate burden upon the relatively poor. Much are tile consequence* of neglecting to apply scientific principles of taxation.