The Gisborne Times THURSDAY, NOVEMBER. 2, 1933. WHAT THE RAILWAYS STATEMENT REVEALS.

Gisborne Times, Volume LXXIII, Issue 12091, 2 November 1933, Page 4

The Gisborne Times THURSDAY, NOVEMBER. 2, 1933. WHAT THE RAILWAYS STATEMENT REVEALS.

How baclly the depression (coupled with motor transport rivalry) has treated the railways is very plainly shown in the Railways Statement for the year 1932-33. If one makes a comparison with the year 1929, One finds that the gross earnings have dropped from £8,747,975 to £6,034,403. On the other hand, however, the working expenses have been rigorously curtailed, the total for last year being £5,183,859 as’ against £0,849,383 four years earlier. Summed up, the position amounts to this: that, whereas the net earnings in 1929, came to £1,898,592, they declined last year to £850,544. As the interest charges last year canie to £2,230,655, it will be noted that the net earnings were sufficient to meet hut little more than one-third pf the amount. For the current year, it is estimated, that the gross earnings will improve by something over £500,000 and that the working expenses will, if anything, he a trifle lower. The Department, as was

;only to be expected, has, in recent ;years, lost heavily in passenger Patronage 1 and in the amount of tiahaIport business,, A: tortiporiaon with ithe 1929 fifeitros shows that passeoiger journeys have declined from 25,'574,843 to 18,366,654 (revenue from £2,124,746 to £1;207,29G) and transport of goods, etc., from 7;078,0Q4 tons to 4,945,592 tons (revenue from £4,840,12-5 to £3,745,777). It is, of course, certain that, even if there had not been any depression, th<J railways would have felt motor transport rivalry veiry appreciably. In the light of the figures presented, it is however, not a satisfactory feature of tim railways policy that heavy additions should continue to be made to the capital account for works which may not bring any additional revenue to the Department. What may be true is that some- slight reduction in operating costs may arise from the more costly improvements, but, whatever may be gained in that respect, is bound to be mor© than counter-balanced by interest and depreciation charges. The 'residents of this portion of the Dominion should he interested in the position disclosed in relation to the losses oh the "developmental” branch lines. It seems that, in the ease of such lines in th, e . North Island, tiio loss oh working aloho was £43,937, as against which £18,300 was sot ofT for '‘feeder value.** The working of the branch lines in the South Island resulted in a loss of £55,060, but as much as £36,100 was sot-off against that total for “feeder value.''’ When credit is taken in the matter of “feeder value,” but interest charges are reckoned, it appears that fho lines in question cost the Dominion last year £456,716. None of these linos tap such a rich potential source of railways revenue as would ho provided by Gisborne and its hinterland, if this important centre were- to be linked up with the railways system, but the Railways Board is quite willing to persevere with them because they have been constructed and require either to he used Or closed down. It may be agreed that every nerve is being strained to produce the best results from the lines in use, but, if the whole policy of railway communications could he overhauled by a disinterested commission, it is certain that a number of branch lines would he found to ho not required at all today and that the Government would be advised to concentrate upon th© arteria) lines ami the possibilities which present themselves (especially in the matter of “feeder value”) in relation to railways development in this important, hut .sadly neglected, portion of the Dominion.