Manawatu Evening Standard. THURSDAY, SEPT. 12, 1935. THE RAILWAYS.

Manawatu Standard, Volume LV, Issue 244, 12 September 1935, Page 6

Manawatu Evening Standard. THURSDAY, SEPT. 12, 1935. THE RAILWAYS.

Notwithstanding that it has been presented to Parliament more tnan five months alter the termination of the financial year, the annual report of the Kail ways hoard is a very interesting document for the general public. The financial results for the year were made kuown in May, but there are necessarily many points in the report which were not covered when that statement was made. The year closed with a contribution or £1,087,491 by the Department towards its interest bill, a splendid result in view of the fact that an increase in salaries and wages was made with the partial restoration of the cuts effected when economies were instituted, and the reduction of rentals from workers’ dwellings had also to be borne. This was the second successive year that the Department was able to conclude its period with the net revenue more than one million pounds, and the report justly claims that the result has been achieved by the strictest supervision and direction over the diversified interests of the system, and by its constant and unremitting efforts to render prompt and efficient railway service to the public. It is, moreover, the view that operating costs have been reduced to the very minimum, and that future improvement depends entirely upon efforts devoted to the further building up of the revenue. The capital of the railways at March 81 last stood at a little more than £54,000,000, and interest charges were £2,330,GU1), so that the net revenue was somewhat less than half this debt. This deficiency has to be mei by the taxpayers, a fact the Board stresses for the benefit of the public, while it adds that it is merely stating the obvious to say that all additional patronage extended to the railways means a decrease in the burden of interest to be found by the general body of taxpayers. Unfortunately, that fact is not always given the recognition it should receive. The Department is the largest employer of labour in New Zealand, having 16,189 employees whose wtTges bill last year amounted in the aggregate to £3,6 1 4,000, while “no transport system, either for passengers or goods, is called upon to establish and maintain travelling and terminal facilities, and to provide its own track, to the degree that is required of the railway system.” Naturally, the Board has to meet the revolution in modern traffic, and in order to hold its position and to consolidate the o-ains made it must make its service attractive to the general public. As the report points out, competition in any major industry is inevitable, and healthy competition is preferable to “the possible evils of unregulated monopolistic control in any industry,” but “unregulated and unbridled competition is fraught with grave dangers.” The importance of the point to the Department lies m the fact that 64 per cent, of its revenue is derived from goods traffic, the tariff for which is based on a classification system and not on a oenernl rate. This enables certain classes of heavy goods which the farming community require to be carried at specially low rates, and naturally the Board expects reciprocal Deament, for the reason, as it states that, if the conditions it has to nmet, particularly in parallel road competition, are accentu ated it is doubtful if the classified ’ rates can be maintained without diminished revenue, it •I an accepted fact that competition has awakened the Depart

ment to the complete realisation of its position, and in vigorously meeting the challenge it has made very good headway. A progressive policy of attracting people to use the railways has had excellent results, particularly in regard to excursions. A similar movement has been most successful at Home, and during recent holiday seasons the railways there carried a greatly increased number of passengers. At the same time, also, it is only fair that industries that have been specially catered for by the Department in its system of classified rates should reciprocate when their produce must be taken to the seaports.