RAILWAY ECONOMIES.

Horowhenua Chronicle, 27 May 1931, Page 2

RAILWAY ECONOMIES.

WILL PLACE DEPARTMENT IN SOUND POSITION. CHEERING NEWS FROM MINISTER INVERCARGILL, Last Night. The financial position of the railways was dealt with by the Minister of Railways (Hon. W. A. Veitch) during the course of a discussion with a deputation from the Invercargill Chamber of Commerce this afternoon. Ho said the financial position was very much better than the general public believed, and if! the economic state of the country returned to normal, it would be found that the economics effected in the Railway Department would place the railways in a very sound position. Mr. Veitch referred to the real, live interest railwaymen were taking in solving the problems of the railways. He said that since June last, when ho took over control of the department, economies had been instituted at the rate of £1,000,000 a year, They would not show more than half a million, but the answer to that was that some had only been in operation for a few months. “When we get a full year, even if more economies are not made —and they will be —we will show a reduction ot £1,000,000 in our costs," he said. The reduction in railway revenue was considerable, the Minister stated, but it could not be expected that the country would always be in the hollow_of a slump, and if the economies were kept up when trade returned to normal, the losses on the railways would be reduced to £300,000 instead of £1,300,000. Mr. J. Gilkison: Does that allow, for interest? Mr. Veitch: Yes., So you sec that although the figures look bad, there is nothing bad about it. We only need continue rigid economy and the railways will be in a splendid condition. Motor competition had only stopped railway expansion, he said, and had not reduced railway business. Before the slump, the railways were increasing slightly. The Minister said the Railways Board would be appointed and would take charge on Juno 1. He added that stationmasters would be expected to come into much closer contact with the business world, and the idea was to make every stationmaster a commercial officer. Ho had nothing against the commercial department, but the commercial officers moved about, and ho believed it would be better to have an agent established in each centre. He did not think that there would be any very early changes.