THE RAILWAYS.

Manawatu Standard, Volume LII, Issue 255, 27 September 1932, Page 6

THE RAILWAYS.

Tiie further the financial year progresses the higher rises the nett revenue of the Railways Department—a factor which will give some consolation to those who are wondering how much the Consolidated Fund will have to find to square the next accounts of the department. A short time ago the figures up to that date were reviewed in this column and they showed that the Railway Board was steadily getting the operating expenses down, fit a greater rate than the decline in traffic revenue. It was pointed out, then, that there would be a limit to such a movement, when a rallying in the gross revenue would be required to maintain the rate of improvement or part of it. However, that point has not yet been reached, and, according to statements which have appeared in some South Island papers, additional branch lines in that part of the Dominion may be closed or the services thereon drastically curtailed, a step which, though regrettable, would unquestionably be reflected further in the nett revenue figures, since they would not be closed or curtailed unless the operating expenses were greater than the gross revenue from them. In the latest available figures for the current year, the gross revenue over all lines for 148 days since April 1, 1932, amounts to £2,226,635; in tlie same number of days last year it was £2,413,095. Expenses for this portion of the current year are £2,011,736, and last year £2,261,122. Thus, though the Department showed a- reduction of £186,460 in its gross revenue, it more than countered that by reducing its expenses by £249,386, and, therefore, its nett revenue for the period reviewed has been improved from £151,973 last year to £214,899 —just on £63,000. The tremendous burden incurred over many yeax-s in the capital account does not enter into these calculations, and even at the present rate of progress the Department must fall very far short of earning the full amount required. However, there is solace in the fact that the Department lias attained a standard of efficiency such as it never had before, and its equipment has been so thoroughly overhauled. that it is ready to cope with an. increase in business without having to find large items out of added expense. Given a recovery of business the accounts would be materially better than they are. One point to be taken into consideration, also is that the bulk of the dairy produce, fruit, live stock and summer passenger traffic has yet to come in to help the year’s figures.