RAILWAY NOT PAYING

New Zealand Herald, Volume LXX, Issue 21555, 28 July 1933, Page 8

RAILWAY NOT PAYING

THE NELSON SECTION II •- / Jf|§§ LOSS OF £IOO A WEEK FINAL TRIAL ON NEW RATES | . „. . ... [by telegraph—OWN correspoxdext] NELSOX, Thursday The future of the Nelson section of the railways was discussed at a conference to-day between representatives of the Railways department and Nelson local bodies jind business men. $ Mr. H. H. Sterling, chairman of the ' Railways Board, announced that it had been decided to readjust the freight I charges in an effort to give the sectioa a final chance to justify its existence. The various sections had to ba measured on a financial basis and it was found that the Nelson section, on that score was not very satisfactory. The board woidd not come to a final judgment until it found what was the bedrock position. The board had pared to the bone and had reduced the service to a position that if it was fur. c ther reduced the section would not justify its remaining open. During tho last financial year to March, 1933, said Mr. Sterling, the loss on operating the section was £5518, or over £IOO a week, and that was « position the board could not ignore. That figure did not include interest charges nor tho cost of the MurchisonGlenhope car service, which for some time was in operation. The board had been told that it could secure a nub. stantial portion of the traffic by a reduction of freight rates to 40s, of which 12s 6d a ton would be for motor from Glcnhope to Murchison, leaving only 27s 6d for rail carriage from Nelson. "The board does not want to closa tho line while there is a channel open offering room for the hope that it will pay," said Mr. Sterling, "and the hurdle at tho moment looks pretty hopeless." Even if the railway gained the bulk of the traffic, then it would be hard to make np the difference be. tween the.revenue brought by the pres* ent rates and the proposed new rates. The board had decided to give tha line a final trial under tbe new rates.'* The position would be reviewed after 12 months. If there was a substantial Improvement, the board would persevere further, but if there were not, then it could not see its way clear to carry on with the loss of over £IOO 4 week. The abstract of the railway working account for the four-weekly period ended June 24, which appeared in yesterday's Gazette, shows that the Nelson section returned an operating loss of £428. The revenue for the period was £754 and the expenditure £llß2.