RAILWAY EARNINGS.

New Zealand Herald, Volume LXVIII, Issue 21029, 13 November 1931, Page 8

RAILWAY EARNINGS.

The latest account of the "Railway Department's operations exhibits a welcome variation from the tendency that has prevailed for so long. The persistent decline of earnings at a greater rate than the reduction of expenses appears to have been arrested, and the balance has been turned the other way. During the four weeks ended October 10, the department achieved a working profit of £3158, and though this is an insignificant contribution to the year's interest liability, it represents a substantial improvement upon the result for the September-October period of last year, when there was a deficiency of over £19,000. One previous return, that for May-June, showed a greater improvement, but it was only temporary. Two circumstances contribute to the importance of the latest account. During the four weeks ended July IS. gross revenue was £126,000 less than in the same period last year; in the August period the decline was £100,000: in the September period it was £96.000; the present return shows a, decline of only £75,000. Thus, for three successive periods, there has been substantial improvement in the. revenue position: in June-July, the earnings were only 77 per cent, of last year's total, whereas in September-October they were equivalent to 8-1 per cent. The latest advance is especially remarkable since the Railway Hoard's policy of cheaper passenger fares was in operation for three out of the four weeks. The introduction of the new tariff induced a visible increase in passenger traffic and the accounts prove that the new policy is justified by its results, even in a season when railway travelling is normally light. The additional traffic has been carried and the extra revenue earned without increasing wording expenses, for the month's payments were, with one exception, the lowest during the current year. Since April,, there has been a, steady reduction in working expenses, and if this progress can be continued during the remainder of the year with a complementary expansion of earnings, the new administration will be able to present a. very satisfactory account of its first term in office.