RAILWAYS WORKING.

New Zealand Herald, Volume LXIII, Issue 19512, 16 December 1926, Page 14

RAILWAYS WORKING.

DECREASE IN PASSENGERS. EFFECT OF BUS TRANSPORT. GOODS TRAFFIC INCREASES. GREATER INTEREST CHARGES. [by telegraph.--own correspondent. ] WELLINGTON. Wednesday. A comprehensive review by the Railways Board of the operations of the railways during the past six months is ' contained in the December issue of the railways magazine. Special reference is made tc the results of the diversion of traffic to the road. With half the current financial year already past figures bearing on the results of operations up to this stage furnish material for. a general review on broad lines of the present position in regard to traffic revenue and expenditure They alsc supply a measure whereby the approximate final results of the year's working may be gauged. Up to October 16, 1926, the number of passengers carried was considerably less than for the corresponding period last year. This decrease, occurring as it does in suburban traffic where motorbuses on account of their greater mobility are well placed for competing, may be regarded is part of the definite loss which all railways systems have suffered since the development of an alternative method of transit. , ■ While recognising the convenience to the public which such survices afford the change increases • th« problem of making the railways pay, for it must not be forgotten that much of the capital expenditure upon railways is sunk in permanent way, rolling stock, and equipment specially designed for suburban traffic. The diversion of a considerable portion of this traffic to the roads therefore makes some of our capital unproductive. While such' a course as cutting the losses and discontinuing the services cannot be resorted to, for faith must be kept with the workers who have been induced to settle in suburban areas because of the low railway charges for conveying them to and from their work in the cities, on traffic of this kind profit can only be made on a big turnover. When, therefore, tho dependants of these Workers,' dependants whose occasional trips to town helped to balance the suburban traffic account, decided to desert the railway for a service more convenient to their purposes the loss became definitely pronounced. The decrease of £41,000 in passengeir revenue may be attributed to this cause. Utilising Own Buseu. The course which might liave been pursued, and which is now being experimented with, of putting our own buses on the road, was not one which economic considerations would in ordinary circumstances dictate, for obviously even if we collected all the passengers offering, seeing that we already have a service capable of dealing with the traffic of the suburbs, the net return after meeting the cost entailed in buying arid working bus services could- hob make the double service equivalently remunerative. ' One worthy point of note is that dur-' ing the last two months tho rate of decrease in passengers carried has slackened somewhat.. - This is a hopeful. sign. Season tickets, which fell back early in the year, have since held their position. Trip bearer tickets have maintained their popularity. Livestock and Goods Carried. In livestock a gratifying increase qn a steadily ascending scale has been recorded for each period this year. Good services and keenness on the part of the staff have contributed to this result' Timber has dropped but the tonnage of other goods shows a healthy tendency to j grow, being already gver one hundred thousand tons _ greater than last year's total for a similar period. ■ With all revenue accounted for the first half of this year shows a net operating_ gain of £50,000 .compared with the similar term last year. This is, bowever, more than counterbalanced by the increase in interest charges, an increase Which amounts to a sum greater by £109.000 than for the corresponding | period last year, leaving the' accounts down £59,000 in the ■ present 1 comparison. > . , . The heavy increase in interest is •chiefly due to the capital account being increased by the taking over of newlyconstructed lines from the Public Works Department, lines which cannot yet pay. an operating return at all equivalent to the interest charges involved. Recent interruptions to the traffic through 'heavy floods in various parts of both while tending to reduce traffic will still further add to the expenses of this yeas',s work, while we have no exhibition this year to add to the prosperity of our summer season. A Policy of Economy., In view of this position a policy of economy must be followed in administration, while every effort will require to be made to stimulate traffic during the remainder of the year. The board would once more remind members that their individual interests are bound up in the financial results of the year's working,, and that their united efforts are necessary' to ensure that every opportunity for gliining additional passengers, parcels, or goods traffic will be availed of. The board feels that it must, in the course of management, follow those directions along which the best promise i 3 given for improvements in the financial position of the service. Experimenting with rail cars, feeder services, combined rail and motor bookings, motor'services, etc., is being carried out as necessary in an endeavour to protect the business we now possess and build up new traffic. The outlook, however, is obscures, and demands the closest attention by all concerned to make the best of the position.