RAILWAY EARNINGS.

New Zealand Herald, Volume LVII, Issue 17633, 20 November 1920, Page 6

RAILWAY EARNINGS.

The results of the higher tariff of fares and freight charges, introduced by the Railways Department on August 26, are shown for the first time in the railway working account for the four weeks ended October 16. The previous return included only three weeks' operations at the higher scale ; nevertheless it,showed that the North Island lines had immediately responded to the advance in rates, the net revenue from them showing a greater improvement than that from the South Island lines. This result again appears in the accounts for the four weeks ended October 16. The net earnings of the South Island railways for the period were £6553 compared with £6611 in the previous month. Those from the North Island system were £66,471, against £63,970 in the September period. During the 20 weeks in which the service was work" j ing on the old rates and paying the ! augmented salaries and wages— j arrears were discharged in the last month of this period per cent, of the gross revenue in the North Island was absorbed in working expenses ; the proportion for the last month was 78 per cent., which is an improvement, even though . a small one. On the other hand, the average for the first 20 weeks for the South Island was 90 per cent. : last month's expenditure was 96.59 per cent, of the revenue. Apologists for tie unprofitable returns from the South Island railways contend that because they carry fewer passengers and more goods and live stock than the North Island they are making a much better use of the service from the standpoint of production and national economy. This contention will not bear examination on the mileage basis; it entirely ignores the obvious fact that those who use the railways in the North Island aj-e paying for the service at a sufficient rate to cover the increasing loss on the South Island i lines.