SETBACK FOR RAILWAYS

New Zealand Herald, Volume LXVI, Issue 20341, 23 August 1929, Page 9

SETBACK FOR RAILWAYS

LOSS ON MONTH'S ACCOUNT.

LOW RETURN IN THE NORTH.

SOUTH ISLAND LOSS HEAVY. [BY TELEGRAPH. —OWN COIinESrONDENT.] ' WELLINGTON, Thursday. A phenomenal contraction in working profits is shown by the' Railway .Department's account for the four weeks ended July 20. The operating profit from the North Island railways was only i',562; there was a loss of £31,283 on the South Island railways; and allowing for the net revenue of £24,142 from other services, llio result for the period was a loss of £8579.

This is the first time for nearly five years that a loss on the working account has been disclosed. The last occasion was the four weeks period ended October 11, 1924, when there was a loss of £1844. The July return last year showed a working profit of £25,206. Compared with it the present return shows a. decline in receipts and a larger increase in expenses. The gross earnings were £547,432, which is £6471 less "than last year, while the expenses increased by £27,314 to £556,011.

Earnings by the North Island railways amounted to £290,115, an increase "of £6650, but expenses increased bv £16,775 to £289,553. The working profit was therefore only £562, as against £10,688 last year. On the South Island system operating revenue was £197,085, showing a decline , of £15,871, and expenses were £228,368, an increase of £8529. The deficiency was £31,283, as against £OBO3 last vea:*. There was an increase of £741 in the net revenue from miscellaneous services. Following is a summary of tho net revenue for tho four periods of the current financial year:— North South Other Island. Island. Services. Totals. April 27 £45.254 £41,985 £20,12(1 £)O7/>fis May 25 . 55,032 49,0CT 16,447 121,740 Juno 22 . 10,312 11,888 21,399 .62,599 July 20 . 502 *3],283 22,142 *8.579 Totals £ 120,700 £72,257 £BO,lll £273,131 •Excess of-working expenses" \ Tho working profits for the 16 weeks arc £31,751 lower than the corresponding total last year and £74,504 less than" in 1927. The reduction comprises a decline of £38,143 in the net revenue of" tire North Island railways and increases of £5976 in the South Island profits andof £416 in the net revenue from miscellaneous services.