THE VAILE RAILWAY SCHEME.

New Zealand Herald, Volume XXV, Issue 9134, 16 August 1888, Page 6

THE VAILE RAILWAY SCHEME.

[BY TELEGRAPH. —SPECIAL. CORBESPO>"DE?TT.]

Wellington, Wednesday. Owixg to a motion by Mr. R. Reeves (Inangahua) to give Mr. Vaile's system a trial for six or twelve months on some line of railway of about 20 miles in length, such as either the Pieton-Blenheim or KelsonBelgrove section, and the controversy over the Whangarei-Kamo Railway traffic, a memo, by Mr. Maxwell, the General Manager of Railways, to the Minister for Public Works was laid on 'the table cf the House to-day. Mr. Maxwell, who was directed by the Minister to report on the present conditions of revenue and expenses of the Whangarei-Kamo line compared with ISBS-6, when the coal mined were in full work, Bays the chief changes have arisen from the stoppage of coal and mineral traffic. During ISSS-86 the minerals dealt with were 29,883 tons, out of a total business of 33,416 tons. The mineral traffic has since fallen to 9374 tons for the twelve months ending 21st June last, owing to the partial stoppage of mines. This business having become so limited the hands previously necessary have been reduced. The number of employes is reduced from 25 to 12. The cost of repair of the track, stores, fuel, renewals of rolling stock, crane, &c, have, of course, been largely curtailed ; at the same time the fares have been increased. The merchandise traffic from the Railway Wharf to Whangarei town has increased during the last three months because less merchandise is carried by sailing craft up the river to Whangarei town and more is brought to the Railway Wharf by steamers, and is taken up by the railway to the town. This is said to be due to the steamers having reduced the rate of freight owing to the competition between the companies. The passenger traffic unfortunately fell off with the diminished coal trade, as must have been expected. The total passengers for the year ending 31st March, 18S6, were 22,275. For the twelvemonths ending 31st June, 1888, there were 10,740, a falling off of 11,525. Most of the traffic is between Whangarei and the wharf, and between Whangarei and Kamo. It has been found desirable to raise the passenger fares in some cases to increase the revenue, and to lower them slightly in other places where there was competition. The following figures give an example of how this has been done.

Particulars of passenger journeys between Whangarei and railway wharf, and between Whangarei and Kamo for the year ending 31st March, 1886. The wharf and Whangarei, 1437 journeys, fare 9d ; at present, fare 9d. 2790 ditto, fare 6d; present fare 9d. 2058 ditto, fare 44d ; present fare 6d. 1764 ditto, fare 4£d ; present fare 9d. 3012 ditto, fare 3d; present fare 6d. Whangarei and Kamo, 171 ditto, fare Is present 9d. 830 ditto, fare 8d ; present fare 6d. 346 ditto, fare 9d ; present fare 9d. 1786 ditto, fare 9d; present fare 6d. 286 ditto, fare 6d; present fare 9d. 1096 ditto, fare. 4d ; present fare 6d. —Total, 16,486. Some controversial correspondence has recently been carried on in the Auckland press respecting the working of this line, in which it is claimed that on this line the fares are framed on what is termed " Vaile's system." This can hardly be said to be the case, as Vaile's system, as explained before a Parliamentary committee in 886, claimed to go in for an enormous reduction in the passenger fares prevailing on the Government railways. On the Wangarei line the reverse course has been Allowed, and the fares have been raised for the journeys mostly taken where extra fares can be obtained. From the report and correspondence it appears also that a very singular error is entertained in some quarters. It seems to be supposed that the coal traffic handling costs nothing to perform, and that the 20,000 tons of lost mineral traffic could be resumed again without increasing the present expense, that is without incurring expense for engine power, track repairs, rolling stock, repairs to stores, crane working, clerical assistance, etc. The rates usually . charged • for coal and mineral traffic are barely sufficient to cover the cost of conveying and handling. Jf the 20,000 tons of traffic were again resumed, a corresponding , increase in the working expenses "must be expected. The line at present is making a little profit, as higher fares are obtained for the work now done 4haa was the case in 1885.