RAILWAY MANAGEMENT.

Hawera Star, Volume XLVIII, 26 June 1924, Page 9

RAILWAY MANAGEMENT.

IS IT BUSINESSLIKE?

GENERAL MANAGER SPEAKS OUT

The unfairness of expecting the railways to return a business-like profit when run under a most unbusiness-like, policy—a notable instance being the carriage of metal for competing motor roads at an unpayable rate—and the difficulty of showing profits in any concern run chiefly for the public benefit, were pointed out in a candid speech by the General Manager of Railways (Mr R. W. McVillv) at the railway officers’ smoke concert in Wellington, on Saturday night (reports the Dominion).

The president (Mr. J. R. Robertson). proposing “The Management,” referred to the part taken by the General Manager (Mr R. W. DieVilly) in the early affairs of the Railway Officers’ Institute, of which he was the first general secretary. It was significant of the co-operation amongst raihva.vmen that one who had taken such interest in his brother officers should have reached the top of the ladder. Outside critics, of course, could run the railways much better than Dir. DlcYilly, but those present had a better insight—as members of the working staff. The revenue earned bv the railwavs was now close on £7,000.000 (only £16,000 short), the expenditure £5,000,000; the tonnage carried just on 7,000,000 tons, and passengers carried well over 13,000,000. which gave some idea, of the magnitude of the concern to which they belonged. They were proud of their General Dlanager, both in his railway management and in his treatment of the staff. The amount of criticism by people who lacked inside knowledge was surprising. If such people recognised what a huge undertaking it was. the difficulties that had to be contended with, and that the railways were, in the first place, not on a sound commercial basis at all, and yet had to pay 3£- per cent., while lines... put in to serve party interests did not pay, they would realise something of the burden the General Dlanager had to carry - unaided. Nevertheless his dealings with the staff were characterised by courtesy and opportunities were freely given for investigation of unsatisfactory matters, and they could co-operate with him without losing as members of the institute. Their Assistant General Dlanager had also come from the ranks, and well deserves the position he had attained. Dir. MeVilly, in replying, dubbed the proposer of the toast ‘ ‘the Cicero of the R. 0.1.” in view of the pleasant way he had said what he had to say. “What constitutes the management of a big show like the railways?” asked Dir. MeVilly. “I am looking now at the management, as it merely consists of all those holding responsible positions co-operating with the heads in looking after the interests of the public. That is what you all do. You represent one of the most important departments of this country on which the industry and commerce of the country depend. Looking back to 1918, 1920, and 1921, when the gentlemen Avho supplied the black diamonds kept us short, we heard a lot from people about the mismanagement of the railways, but we never hear anything about the good things the railways have done. We are in charge of State railways, and yet we are told the railways ought to be run on business lines. What constitutes business lines? What is a business? Something that an individual puts money into and runs for his personal benefit. Can we run the railways for personal benefit? What, we are expected to do is to run them for the benefit of the State. I think, as a man who has spent 45 years on the railways, that the railways of this country, having regard to the policy under which they are run, the circumstances under which thev were created, perform a very useful service to this country. (Applause.)

“When we come to look at the result of a period of years what do we find? We were first told to get 3 per cent. We never failed to get that, but always got more. Then the policy altei'ed, and we were told to get 3iJper cent. It is perfectly true that as the result of the war we had two or three had years, hut no industry should be judged on two or three bad years. The -•result should be taken over a period of years, and if we so take the operations of the railways—the muchmaligned State concern—we find that not only has it given interest on the capital invested, hut it has given the Consolidated Fund £1,600,(MX) in excess of that. Mr. Robertson told you that the receipts last year were just upon £7,000,000. They were almost as high in 1919. Then we had the slump. “Our revenue, is gained despite the fact that we have a considerable amount of motor competition. The roads of the country are used in direct competition with the railways, yet we find the railways carrying tons of road metal (and the freight does not pay the cost of taking it) to he put on the roads which are used in competition with the railways. Policy is no concern of ours. Our duty is to carry out that policy; but the Railway Department should not he asked to supply the roads which are used in competition with it. The railways belong to the people of the country, and should be operated for the benefit of the people of the country.

“We get a return of £*3 16,s 6d (that is over 3j per cent.). The money has been earned despite the mismanagement of the Department. In the North Island the railways pay £6 7s 6d per cent. In the South, where they have level roads and sparsely populated country, the railways pay £2 2s 8d per cent. In other words, the southern lines are more of a burden. The location of railway lines has nothing to do with the Department, which is given a few lines of rail and some railway stations and told to make it pay. At the end of the year, if things are had, there is a cry of ‘mismanagement. ’ Mv job is to run the show to the best of my ability. That I have done. (Hear, hear.) I do not claim a great deal of brains, but bv dint of hard work T have gone up. What I have done you can do if you apply yorselves seriously. Railway life is not like most other occupations. It is serious work. Particularly in the traffic and locomotive sections the public safety is in your hands, and how well you carry it out is shown by the freedom from accident in this country. I preach merit. I have never had any time for anything else but merit, and I am talking merit to yon to-night when 1 sav that the man who works hardest, who delivers the goods, is bound to come to the top.”