THE RAILWAYS

Northern Advocate, 20 May 1929, Page 4

THE RAILWAYS

“THilike most railways, we are able

this year to show an actual increase in both the numbers of passengers carried by our services and the tonnage of goods conveyed.” So says Mr H. H. Sterling. Geenral Manager of Railways, in his annual report. This statement will give pleasure to the people of the Dominion as it must naturally have given Air Sterling, who is engaged upon the difficult task of making the railways -pay. It appears that the working revenue shows an appreciable increase of £181,48(5, a result that is all the more pleasing in face of the fact that, for the previous two years there was a falling-off. Mr -Sterling is able to

point to certain improvements in the general returns more particularly those relating to subsidiary activities in which the increased yield has amounted to, in round figures, £IOO,OOO more than

that of thro? years ago, and will exceed £8,300.000. This increase has not resulted from the growth of normal passenger traffic, but has been obtained by means of road feeding services. The outstanding feature of the growth in receipts is the satisfactory working of the goods traffic, the increase in which has progressed steadily since 19.17, the past year exhibiting better returns than for any recent year. Against, this record of improvement has to be placed the .persistent increase of working costs. This year Mr Sterling attributes the rise to the expenditure inherent in the working‘of many .miles of now track, principally in the North Island, where further extensions totalled nearly one hundred miles j as against an additional nine miles in the South Island. In spite of this handicap in the nett yield of the North Island system, its earning power during forty-eight, weeks averaged £5*96 per mile, \as against. £6lO in the preceding year, but the South Island system only returned £97 per mile, which was a small improvement, over its last annual results. It is suggested that, if the subsidiary revenue were fairly apportioned, the North Island railways would be found to have earned their share of the amount to be allocated for interest on capital outlay, but that the South Island railways would not reach two per cent."towards the interest. charges. This is a matter which should give Sir Joseph Ward food for thought when proposing to spend .some millions sterling on railway extensions in the South Island, which cannot but add to the burden carried by ratepayers. It is good to know that the General Manager is able to present a satisfactory report on the railways’ operations during the past year; it is to be hoped that his difficulties will not be increased by South Island adventures which'have nothing to justify them.