RAILWAY RETRENCHMENT

Evening Star, Issue 17823, 21 November 1921, Page 6

RAILWAY RETRENCHMENT

GENERAL MANAGER’S ANNOUNCE” MEHT. MEN’S CO-OPERATION ASKED. [Per United Press Association.] WELLINGTON, November 21. The announcement that retrenchment » to take place in the Railway Department was made by the General manager, Mr R. W M’Villv at a social of Die Locomotive Engine Drivers, Firemen, and Cleaners Association on Saturday night. Air MTilly stated that the. department had come to a point where the revenue was falling and was going back rapidly. Last year, for the first time, tor aboutUn years they failed to get that return fiom the working of the lines that "as c quired bv tho Government a policy. iim> year the revenue had increased by only something like £79,500, and the expcncii tu/e had grown by £670,000. Tho la hg off of passenger traffic was about 4fa0,000 passengers, or 12,000 car loads, for , EC \ C " months of this financial year n stock there had been a drop of 4 000 Uutk loads, ami in general merchandise 2,000 truck loads. Last month they weio clonn £50.000 compared with October ot laM year, and for the three weeks of tho present period they had gone down -another £55,000. In 1914 the revenue was and the expenditure £2,808,000, leading £1,200,000 with which to pay interest on tho capita! invested. In 1921 the revenue was £6,908,000, but the expend!ture totalled £5.636,000, which gave them an interest of only £2 8s per cent, on capital expenditure. W ages m J^ 14 "® Tt £1,966,525, and in 1921 £3,600,000, an increase of £1,639,475. The expemture tor 1921 was almost equal to the total revenue for the vear ended March 01, Tj2o. ihe position‘was that the revenue had availed! by lust under 20 per cent., but the expenditure had gone up 37.87 per cent. _ Idle expenditure was increasing at a luslCT ratio than the revenue, and tney had reached a point where, the overlapping South Islands lines were unfortunately a drag. For the seven months of this financial year tho figures of the South Island section showed a loss, as between revenue and working expenses (leaving out capital altogether), of £II,OOO. The only lino in the country that was giving a return in excess of what they required, and taking capital into account, was the Westport Railway. He had had to call the representatives of the riulwaynien's bodies together io put the position ”to them. He was sympathetic. but they had to get down to ‘ tin tacks.’’ There would have to bo a mutual understanding, and an all-round alteration had to be made to make both moot. He wanted the railwaymeu in this time 01 adversity and stress to give the department loyal assistance, and desired them to understand and appreciate the necessity of the retrenchment that had taken pjlace. Before Mr ALL illy spoke, Air AI Arley (general secretary to the E.F.C.A.) said he thought it .best'for the men to face the facts and meet the Government as well as they could. He believed they could- make an amicable arrangement. RAILWAYMEN’S RESOLUTION. “DISTINCT BREACH OF CONTRACT.” [Per United Press Association.] AUCKLAND, November 21. The question of tho reduction of wages was considered by tho Auckland branch of the Amalgamated Society of Railway Servants, ail’d a resolution passed _ expressing the opinion that as the Arbitration Court had‘stabilised wages, until May, 1922, the reduction would bn a distinct breach of contract. A second resolution passed was that the A.S.R.S. Executive Council should not accept any reduction of wages or extension of hours without referring tho matter to tho rank and file of tho "service in order that a ballot on the proposals may be taken.