Manawatu Evening Standard. THURSDAY, JUNE 11, 1931. THE RAILWAY BOARD.

Manawatu Standard, Volume LI, Issue 162, 11 June 1931, Page 6

Manawatu Evening Standard. THURSDAY, JUNE 11, 1931. THE RAILWAY BOARD.

With tlie constitution of the Board of Directors, the railways come under the new system of control from which much is hoped. Under the Act passed last session, the Board should have been appointed on June 1, but the difficulty of making' a selection from the large number of applicants no doubt has contributed to the delay. From that date the Minister and General Manager of Railways formally transferred all their powers, duties and functions, with certain exceptions, to the Board, which was not set up until eight days later. The situation thus created will, no doubt, be rectified by legislation later. Of the five appointments announced on Tuesday, Colonel Esson’s is temporary. His place as chairman will be assumed by the present General Manager, Mr TI. H. Sterling, on the latter’s retirement in September next. Mr Sterling, recognising that his position should be subject to review in the staff economies carried out, has made a financial sacrifice in accepting the position of chairman of the Board, both as regards his salary and retiringallowance. Then, again, his appointment removes the anomalous position in which the General Manager would have been in relation to the Board. Mr Sterling’s experience will be of advantage to the Board in carrying out a task bristling with difficulties. Sir James Gunson and Mr D. W. Reese are the two members appointed for three years in accordance with the Act. The former has been a prominent figure in Auckland’s public life and a successful business man. Mr Reese may be more widely known to New Zealanders through his interest in cricket, but in Christchurch he has extensive interests in engineering, _ shipping and timber. As a marine engineer lie has visited many other countries. Mr E. Newman will be congratulated throughout this district on his appointment. His sound knowledge of farming and wide public experience as well as that gained as a company director make him an ideal farmers’ representative. Mr G. W. Reid, the fifth member, whose appointment, together with Mr Newman’s is for two years, is a public accountant of Dunedin, and Dean of the Commerce Faculty of Otago University. The Board thus appears to have been sensibly chosen, embracing as it does business interests, a farmers’ representative, and an accountant, with Mr Sterling as the head. It should command the confidence of the public, thereby fulfilling one essential condition for its success, The railway returns for the past financial year tell of the serious task that confronts the Board. The surplus of revenue was £688,727, whereas the Prime Minister estimated a contribution of £1,380,000 to the Budget.

There were certain economies to offset the loss of revenue, but it was estimated that the increase this past year would be £90,000, whereas the actual decline was £710,000. The capital in respect of the railways, including the cost of uncompleted sections, is roughly £60,000,000, the annual interest charge being £2,750,000. From taxation, therefore, had to be drawn a sum of more than £2,000,000 to meet last year’s interest costs. There are indications of a still greater sum this year. This it will be the Board’s duty to reduce by the greatest amount possible, so that the taxpayer will be relieved of the pressing burden cast upon him by last year’s operation of the railways. In finance the Board will be guided by the advice of the Finance Minister, while it has power to close unprofitable lines and to report upon those under construction. In this latter respect the line between Wharanui and Parnassus in Marlborough and Canterbury will come up for review.