THE ZONE TARIFF IN HUNGARY.

New Zealand Herald, Volume XXVIII, Issue 8726, 17 November 1891, Page 3

THE ZONE TARIFF IN HUNGARY.

The Railway News of September 5 haa tha following:— Contradictory to the non-official statements respecting the working of the zone tariff of the Hungarian State lines, the Minister of Finance in Buda-Pesth mentioned, in a recent report on the financial position, that the Hungarian State Railways showed for the first six months of the current year a deficiency of 2,000,000fr., or, say, £J 80,000, iii comparison with the corresponding period of 1890. The gross receipts from. Ist April to 30th June—viz., £1,005,000 (plus £91,000)— included the returns of the North-Eastern system, which the Government acquired during the second half of '.he year, 1890, and an item of £88,500 should, therefore, be deducted for comparison's sake. The actual takings were consequently only £3000 in excess of the preceding period, whereas the working expenses rose on the other hand, in the second quarter, by £230,000 to £830,000, and the outlay for necessary repairs, etc., increased to the extent of £26,500. Thus the unfavourable points to be considered are : Receipts of the North-Eastern line, £58,500 ; increase of working expenses, £230,000 ; increase of repairs, etc., £26,500 : total, £345,000: less increase of gross receipts, £91,500; leaving on balance a decrease for the second quarter of £253,500. For the period of six months this loss is lessened by a net increase for the first quarter, viz.: Gross receipts, £970, increase £141,000 ; working expenses, £433,000, increase £34,500 ; net increase, £106,500 ; less additional repairs, etc., £37,000 ; for the first quarter, increase £70,500 -in net receipts. Deducting this profit from the loss of the second quarter, a net loss of £183,000, or in round figures, of two million ilorins is shown.

Against these figures it may be urged that the passenger traffic has undoubtedly assumed much larger proportions on account of the facilities offered by the zone tariff, though the important rise in the expenditure, both for working and keeping the lines in proper repair, etc., must be attributed to the greater traffic. The Hungarian State lines carried in 1888, 5,900,000; in 1869, 9,340,000 and in 1890, 15,080,000 passengers. The increase amounted, therefore, to 3,390,000 persons in 1889 over 1888. and to 9,120,000 in 1890 ovei 1888. These figures are somewhat misleading, as, firstly, the ordinary growth of the passenger traffic, say 10 per cent, a-year, should be deducted, which weald reduce the increase to, respectively, 2,790,000 and 7,8/0,000 persons ; and the new lines opened for traffic in 1889 and 1890 account, secondly, for an additional length of 346 and 595 miles, which; would produce, according to former experience, an average passenger traffic of 2200 to 2240 per mile, equal to a total oi 810,000 in 1889, and to 2,840,000 in 1890. The actual increase resulting from the introduction of the zone tariff was consequently 1,980,000 passengers iu 1889, and 5,030,000 passengers in IS9O, or equal to quite 70 per cent, for 1890 against 1888, after all matters are fully accounted for. That is, of course, great • progress, and undoubtedly a great boon for the people served by the railways. Financially.the trial, however, seems to be a failure, and railway companies in other countries will find no inducement to follow in the footsteps of the enterprising Magyar Government. But, notwithstanding the pecuniary loss, a State railway may rightly embark upon the new method, as the nation has after all to make good the deficiency. The Hungarian railway authorities are justified iu looking upon their lines in the same way as Englishmen regard the Post-office. If the latter had incurred a serious loss by the introduction of the penny postage the country would scarcely have suffered from it, at least not in proportion to the benefit it. derived from the reduced charge.