RAILWAY STATEMENT PRESENTED TO PARLIAMENT

Manawatu Times, Volume LV, Issue 7321, 3 September 1930, Page 8

RAILWAY STATEMENT PRESENTED TO PARLIAMENT

Costly New City Stations

Heavy Workshops Expenditure

The annual Railway Statement was presented in the House of Representatives yesterday afternoon by Hon. W. A. Veitch, Minister of Railways, and read as follows: —

“During the short period in which f have had tho honour of administcrLcg the department I have not had an opportunity of doing more than adopt such measures as have been accessary to effect immediate economy. No comprehensive changes in policy will bo instituted until tho report of the Royal Commission, which is nowinvestigating the department’s operations, has been considered. I submit hereunder the financial figures for tho year ended 31st March, 1930: — Tho gross income from all sources was £S,2SS,IIG, au increase of £39,07S on that of the previous year, while the expenditure was £7,358,859, au increase of £509,470. Tho uct earnings were £929,257, as compared with £1,399,055, a decrease of £470,395. “On the 31st March, 1930, the capital invested in the lines open for traffic including the steamers and plant on hake Wakfitipu and other subsidiary services, was £57 787,671, as compared with £5G,5G5,59S on the 31st March, 1929, an increase of £1,219,073 on the capital account of the previous year. “Tho increase in capital comprises £393,072, expended chiefly on rollingstock and signal-construction, and charged against capital account under ’Additions to open lines,’ and £824,496 expended under the Railways Improvement Authorisation Act, 1914, on work such as new workshops, etc. A sum of £699,177 was charged against revenue for depreciation and provision of renewals, and the amount expended from this fund was £339,635 for assets written off on renewals effected during the year. Tho accumulated credit balance in this fund at the 31st March, 1930, was £1,657,562. “The Finance Act, 1929, section 20, provides that interest will be charged on the total amount of capital moneys expended in respect of railways reduced by the sum of £5,100, 000. The interest charges, amounting to £2,132,324, have therefore been computed in terms of the Finance Act. Tlhc interest charges for the year cudcd 31st March, 1929, totalled £2,331,335, and the decrease in these charges for the year under review is £199,011. The deficit on account of revenue and expenditure on the year’s working w r as £1,203,067, to which must be added the sum of £S2O2, an adjustment of the branch-line debit for 1929, making a total deficit for the year of £1,211,269. an increase of £778,526 as compared with the results for the previous year. “The Finance Act of 1929 cancelled as from the Ist April, 1929, the credit which had been received since the Ist April, 1925, for the losses incurred in working certain branch lines and isolated sections, and this, together with the fact that the Railway Department was called upon to bear a higher proportion of the concession rates on fertilisers and lime, had a substantial effect on the deficit incurred in the past year’s operations. Branch Lines. “As indicated in my predecessor’s last report, a thorough investigation was being made into the whole of the tiain services, with particular reference to the branch lines. Since I assumed control comprehensive reports have been submitted, and in view of the heavy annual losses I was reluctantly compelled to authorise the closing down cf certain branch lines and isolated sections. In order to effect further economies in tram operation, certain passenger-train services have also been curtailed. I found that the department in this connection had been striving to regain lost passenger business by providing attractive services over long distances, and, although traiumileage had increased, there was still a decline in passenger revenue. The following table of figures will emphasise the position:—

Year Train-mile-'. . Increase over previous year. Passenger revenue •'including season tickets). Increase or decrease over previous year.

1924-25 9,083,(525 59,120 2,288,571 01,029 1525-2G — 10,319,407 1,235.784 2,537,047 245,476 10,723,804 404,457 2,304,180 232,807 192710,838,594 114,730 2,145,290 155,854 192811,113,452 274,85 S 2,124,740 20,550 192912,022,043 908,501 1,995,927 125,519 For the years 1924-25, 1926-27, 1927-28, 1928-29 and 1929-30 a decrease rs shown and for 1925-20 an increase. “The train-mileage increase was due to a fairly large extent, to the growth of goods traffic; but even with this favourable aspect a large proportion of the increased mileage was due to passenger service. In view of the financial position of the department the running of several of the passengertrains has had to be restricted, at least until the busy season commences. Costly New Stations. “It is anticipated that the opening of the new station at Auckland will take place towards the end of October. It is anticipated that the final cost of fLe station and yards, which includes interlocking, signalling, etc., will approximate £1,210,000, while the cost of the Westfield deviation, including several stations en route will bo £790,COO, making a total expenditure of £2,000,000. “The work of reorganising the Wellington station-yard, is .progressing satisfactorily. The completion of the Tawa Flat deviation works and.the rc-

1 arrangement of the railway facilities will synchronise with the completion of the new' station. The sum of £4GS,OOO lias already been spent on reclamation works and new yard accommodation, and it is estimated that £1,055,000 w r ill bo required to complete tho undertaking—i.e., station building and- yard.' This figure docs nor include the Tawa Flat deviation. At the 31st March, 1930, the sum of £670,000 had been expended on this work. It is estimated that a further sum of £545,000 will be required to complete it. The total cost, therefore, will be £1,215,000. Workshops Reorganisation. “This scheme, covering the four main centres, is now practically completed. The original estimates in connection with it have been considerably exceeded, and it is doubtful whether the annual savings contemplated will be effected. It may be appropriate to furnish the following figures, which will indicate the position when I assumed control of the department. On the lltli April, 1025, the acting chief mechanical engineer recommended the construction of — £ (1) Loco workshops in Auckland 540,05 S (2) Car and wagon shops at Lower Hutt 442,134 (3) Car and wagon shops at Addington 269,571 (4) Locomotive shops, Hillside 391,060 £1,042,853 “This estimate was afterwards increased to £1,696,000, at which figure tho scheme was approved. The final capital cost is now estimated at £2,297,865, or £601.865, In excess of the original estimate. This will increase the strain upon tho department’s finances ■and will necessitate economy in the conduct of operations in the shops. In his original estimate the acting chief mechanical engineer intimated that an annual saving of £270,000 would result from the new scheme; but it has yet to be proved whether this measure of economy will accrue as a set-off against tho heavy capital expenditure. Coal Supplies, “It is pleasing to note that, of the 470,251 tons purchased during the year, .-•55,214 tons, or 74.59 per cent off the total, comprised New Zealand coal. It is satisfactory to note the. large increase in the use of New Zealand coal since 1924-25. As a result of important tests Which have been carried out for some time past, there appears to be a very encouraging prospect of our being able to utilise a still greater proportion of New Zealand coal. Garratt Locomotives. “Tho three locomotives of the Garratt type which were imported from Great Britain are now in commission. Certain adjustments have been found necessary in order to fit the engines to our conditions. .Some progress has been made with tests and improvements ou these locomotives, and it is hoped that they will prove effective. There is no doubt about their tractive effort; most of the difficulty having arisen in connection with their coalconsumption. This can only be finally adjusted by exhaustive trials under working-conditions. No effort will be spared to bring them to a satisfactory slate of efficiency. Motive Power. “During the year one of the department’s mechanical engineers has been abroad looking into the latest developments regarding motive power including such matters as the application of tho Diesel engino to traction. This officer obtained a large amount of very valuable information, and the data which ho was able to obtain indicate that tho time lias not yet arrived in ■ the development of the application of the Diesel engine to traction when wo would he justified in adopting it. Results of Working. The following is a statement of the results of the working of the railways for the past five years: — Total miles open for .traffic. —1930, 3287; 1929, 3287: 1928,‘'3180; 1927, 3164; 1926, 3138. Average miles open for year.—l93o, 3287; 1020, 3254; 1928, 3178; 1927, 3157; 1926, 3103. •Capital cost of opened and unopened lines.—l93o, £65,526,089; 1929, £62,276,214; 1928, £55,797,458;. 1927, £56,028,477; 1926, £53,716,455. Capital cost of open, lines.—l93o, £57,787,671; 1929, £56,568,598; 1925, £51,157,37G; 1927, £49,183,916; 1926, £47,608,676. Capital cost of open lines.— 1930, £17,581; 1929, £17,210; 1928, £1G,097; 1927, £15,545; 1926, £15,172. Gross earnings.—1930, £8,279,914; 1929, £8,747,975; 1928, £8,524,538;; 1927, £5,434,654; 1926, £8,460,762. Working expenses.—l93o, £7,358,859; 1929, £6,849,383; 1928, £6,685,123; 1927, £6,490,850; 1926, £6,465,428. Net earnings.—£921,055; 1929, £1,898,592; .1925, £1,839,415; 1927, £1,943,774; 1926, £1,992,334. Interest charges.—l93o, £2,132,324; 1929, £2,331,335; .1925, £2,130,867; 1927, £2,043,4.33; 1926, £1,913,311. Appropriation for betterment, 1926. £58,000. Unappropriated surplus, 1926. £2l 023. Deficit.—.l93o, £1,211,269; 1929, £432,'74.3; 1928,. £291,452; 1927, £99,659. Percentage of total working expenses to gross earnings.—1930, S 8.88; 1929, 78.30; 1928, 78.42; 1927, 76.95; 1926, 76.45. . ' Percentage of net earnings to.capital

invested. —1930, 1.61; 1929, 3.40; 1925, 3.64; 1927, 3.99; 1926, 4.35. Railway operating earnings.—l93o, £7,473,993; 1929, £7,524,864; 1928, £7,343,845; 1927, £7,423,472; 1926, £7,589,274. Railway operating expenses—l93o, £6,848,026; 1920, £6,374,579; 1928, £6,302,119; 1927, £6,158,283; 1926, £6,164,570. Net Railway operating earnings.— 1930, £625,967; 1929, £1,150,285; 1928, £1,041,726: 1927, £1,265,189; 1926, £1,424,704. Percentage of Railway operating expenses to earnings.—l93o, 91.62; 1929, 84.71; 1928, 85.81; 1927, 82.96; 1926, 51.23. Operating earnings per average mile open.—l93o, £2274; 1929, £2312; 1928, £2310; 1927, £2351; 1926, £2446. Operating expenses per average mile open.—l93o, £2083; 1929, £1959; 1928, £1983; 1927, £1951; 1926, £I9S7. Net operating earnings per average mile open. —1930, £191; 1929, £350; 1928, £327; 1927, £400; 1926, £459. Operating earnings per train mile. — 1930, 149.216; 1929, 162.50 d; 1928, 162.62 d; 1927, 166.14 d; 1926, 176.510. Operating expenses per train mile. — 1930, 136.716; 1929, 137.666; 1925, 139.556; 1927, 137.826; 1926, 143.376. Net operating earnings per train mile —1930, 12.50; 1929, 24.84; 1925, 23.07; 1927, 25.32; 1926, 33.14. Passengers, ordinary.--1930, 8,498,441; 1929, 9,074,993; 1928, 9,299,157; 1927, 10,303,065; 1926, 11,813,450. Season tickets.—l93o, 667,432; 1929, 656,169; 1925, 632,763; 1927, 585,094; 1926, 600,292 Total passenger journeys.—>o3o, 25,413,621; 1929, 25,574,843; 1928, 23,379,665; 1927, 26,002,137; 1926, 27,653.41.4. Goods tonnage. —1930, 7,233,295; 1929, 7,056,680; 1928, 6,854,865; lfiT, 6,833,436; 1926, 6,808,603. Live stock tonnage. —1930, 566,407; 1929, 535,951; 1928, 511,897; 1927, 475,013; 1926, 447,539. Train mileage. —1930, 12,022,043; 1929, 11,113,482; 1928, 10,835,594; 1927, 10,723,804; 1926, 10,319,407. Engine mileage. —1930, 16,735,624; 1929, 16,150,146; 1928, 35,383,051; 1927. 15,212,086; 1926, 14,657,039. For the current year the Minister anticipates the revenue will reach £5,470,695, and the expenditure £6,378,003 •-/ , .. .