REDUCTION OF LOSSES.

New Zealand Herald, Volume LXVIII, Issue 20768, 10 January 1931, Page 11

REDUCTION OF LOSSES.

OPERATION OF RAILWAYS. GAIN IN NOVEMBER PERIOD. SMALL PROFIT FOR YEAR. [BY TELEGRAPH.—OWN CORRESPONDENT. ] WELLINGTON, Friday. A provisional statement of railway operating results in the four weeks ended December 6 was issued by the Minister of Railways on December 29. This showed that in comparison with the corresponding period in 1929, operating revenue had declined by £74.000, and expenses by £76,000. According to the complete account, 1 ! published in the Gazette, the actual reductions were respectively £74,400 and £76,003. In addition, net receipts from miscellaneous services incieased by £162, so that the total improvement for t'he month was £1765. The programme of economies, of which the first instalment was introduced on July 13, has been !in operation during five accounting periods. The effect on tho results is shown in the following summary:— Revenue Expenses Net Decreaso. Decrease. (Jain. August 1G . . £'52.272 £35,821 £16,445* September 13. 51.239 45.517 5,692* October 11 . 6G,81(> (38,653 1,837 November S . 63,99-2 85.13S 21,146 December 6 , 77,427 79.191 1,764 Totals .£311,746 £314,353 £2,607 iNet loss. Tho gain for the 20 weeks has been duo to the increaso in net revenue from miscellaneous services, amounting to £2608, ahove tho net decline in railway operating revenue of £5576. Railway returns in the North Island show an improvement of £4157; those in the South Island, a retrogression of £9732. During the last period the earnings of tho North Island * railways were £302,457, or £42,144 less than last year, while expenses were reduced by £45,004 to £273,285. There was consequently a working profit of £29,172, as against £26,282 last year. Earnings of the South Island railways declined by £32,287 to £192,139 and expenses by £30,999 to £200,038. The net result was a working loss of £7899, as against a loss last year of £6611. Net miscellaneous revenue,increased by £16.317 to £56,798. Following is a comparison of the work ing receipts and expenses and net revenue for corresponding periods in the last six years ,„ 3r \ . Net Weeks. Receipts. Expenses. Revenue. 1925 . . £5,051,346 £4,293,751 £757.595 1926 .. 5,254.641 4.500,695' " 753.916 1927 . . 5.193,032 4.590,532 602.500 1928 . . 5.270,408 4.710,001 560.407 192; l-. . 5,374.157 5,088.918 285.209 1930 . . 5,063,454 4,854,993 ' 208.461

This year's gross receipts .ire only £12,108 higher than in 1925, but expenses are £561,242 greater. In spite of tho reduction in expenses in comparison with last year, the net revenue is lower than in any previous year.