RAILWAY EARNINGS.

New Zealand Herald, Volume LIX, Issue 18130, 30 June 1922, Page 6

RAILWAY EARNINGS.

Although the results of eight weeks are probably not a positive criterion of railway operations, tho accounts for the April and May periods disclose an improvement that is certainly welcome. Briefly, the position is that there are net earnings amounting to £155,838, compared with £64,098 in the corresponding period of last year. The accounts had the benefit this year of the Easter traffic, but this does not explain the increase in working profits, which are actually due to a reduction of expenses, greater than the falling off in revenue. The earnings for the two periods total £1,067,846, a decline of £92,149, while the working expenses were £912,017, which is less by £193,889 than for the corresponding period of last year. If this" is the result of actual economies in administration it is indeed creditable. The only reason for questioning the figures is that no explanation has been given of the source from which payments were made for the larg6 stocks of coal on hand at the beginning of April. If the cost of these supplies was charged in last year's railway account the result would be that ».ae apparent loss was unreasonably magnified, but if payment was made by the Treasury, without provision for recovery from the Railway Department as the stocks are consumed, a very different position would arise. The department would now be using " free " coal—paid for out of taxation. It is impossible to discover from the railway accounts which method is followed, Taking the returns on their face value they disclose a remarkable recovery in the South Island, where the net earnings for the two periods were £62,797, against a loss of £7770 in the corresponding period of last year. In the North Island the net earnings were £93,041, in comparison with £71,868 in April and May of 1921. But there is still room for improvement. These comparisons are made with a year that ended with a deficit of £984,800. In the first eight weeks of the previous year the net earnings were £284,290 —not far short of double this year's resuhV-and that year, 1920-21, ended with a deficit of £118,736. The management of the department still awaits the stimulating hand of the reformer, which has frequently been flourished, but has not yet struck.