THE RAILWAYS EARNINGS.

New Zealand Herald, Volume LX, Issue 18297, 13 January 1923, Page 8

THE RAILWAYS EARNINGS.

The statement of the Railway Department's working account published yesterday is particularly interesting, as it marks the completion of the more difficult period in the year's operations. The last four months of the year are the more profitable, since they comprise the holiday traffic and the movement of the bulk of the year's production. Last yeai, for instance, the department's account showed a loss on working at the middle of December of £26,000, and in the remaining 16 weeks of the year,: its net earnings were £432,000, though this figure was certainly improved sis a result of the first measures of economy. For the current year, the outlook is more hopeful. In the last period, the North Island has increased its proits to the highest level for the year, but the South Island, after , the profitable period of the November carnival, has fallen back into the old state of running at a loss. Nevertheless the result for thirty-six weeks is that the net earnings from the North Island are double those of the previous. year,while' the South Island shows a small profit; instead of a deplorable loss, the combination yielding £418,000 toward the year's interest bill. It is significant that the gain has been wholly

on the Expenditure side. Working I expenses are lower by £580,000, ! while revenue is lela by £142,000. ' When a comparison is made of the general Conditions pre-' vailing during the two periods, it is apparent that Vthe recovery in the railway earnings has been due more to the negative method of curtailing services than to any positive attempt to exploit the greater prosperity of the country. It may be anticipated that the final result for the year will be a profit of £1,000,000, leaving £474,000 to be contributed from taxation toward the interest charges. That subsidy might have been very much smaller had the department, which was content to make excuses when times" were bad, followed the example of private enterprise in better times, of forgetting the past and seizing the opportunity to gain business and to earn profits. . " '•