SPIRIT of the PRESS.

New Zealand Mail, Issue 753, 6 August 1886, Page 22

SPIRIT of the PRESS.

In view of the struggle that has taken place on the schedule of the Loan Bill respecting the proposals to begin the construction of various new lines before those already in progress shall have been completed to a payable point, it becomes specially interesting to ascertain how the New Zealand Government railways already opened are paying their way. We have now before us the official returns of traffic and expenses for the first three months pt of the current financial year. It must ~ be confessed that the figures are by*no means cheerful or encouraging. In twelve weeks the 1616 miles open this year yielded only £242,612 of gross receipts, as compared with £259,685 for the corresponding period of 1885 yielded by only 1487 miles. Here is a falling off of no less than £17,000 for twelve weeks in spite ef an increase of 159 miles in the length worked. Or to put it in another way, with 159 more miles at work our railways have brought in £17,000 less ; than in the first twelve weeks of last year. This is not an agreeable disi covery or one which is apt to inspire much eagerness to borrow many more millions to extend the lines still less to start entirely new railway schemes. But, it will perhaps be said, although the gross receipts are so much less, may not the neb profit he really greater owing to the reduction in working expenses ? Let us see. Last year for the first twelve weeks the working expenses amounted to £161,147. For the first twelve I weeks of this year the expenditure ! has been £167,229, or more than £6OOO greater. Consequently adding the excess of expenditure to the falling off in receipts, we arj xive at the unwelcome conclusion that the net profit has decreased by some £23,000, or at the rate of about f £IOO,OOO per annum. Next if we compare the present with the past two years, taking the average mileage open during each year, and expressing the result in the nearest “ round numbers,” we find that while the gross receipts for the year 1884-5, were at the rate of £7OO per mile, those of 1885-6 were about £650 per mile, those of the first quarter of the current year have been at the rate of barely £6OO per mile. In making this comparison it is necessary to take xhe average mileage, because each year closes with a larger number of miles open than in its predecessor, and if j the mileage only at the end of the ; year were taken aB the basis of com- ' putation it would, yield inaccurate results. For instance, the length at the close of the last financial year was 1613 miles, but for several months -of the vear it was only 1477 miles. fiere, then, we see a speedy falling off in yield at the rate of—roughly about £SO per mile annually. The loss was caused by the excessive lowering of the freight rates on the Canterbury and Otago lines, which lines not only caused the entire loss made, but actually more than the total loss for the whole Colony, the gains on other lines reducing the total | loss to the amount stated. But those decreased rates were supposed to bring a large improvement in traffic by the facilities afforded. Un- | happily the stern logic of facts and figures demonstrates that this expectation was wholly illusionary. So far I from any increase being shown there is a diminution of goods traffic by no less than 37,992 tons for j the twelve weeks, as against the like period of last year. The 1 -decrease on the Canterbury and ! Otago (Hurunui-Bluff) railways is lather more than that for the whole vColony. The Napier-Wanganui line a fair improvement, and were iheconnection made between these rail- ; ways—the latter ofwhich willbe united "with Wellington in a few months — Ahere is no doubt that a large increase 5n the receipts would at once result. Manifestly, then, this is a line which ought to be pushed on with all possible despatch, because it would unquestionably be a paying work and . would complete the main railway communication over half the island. It is railways of this class that should have priority of construction, and not those merely political lines that are undertaken only to satisfy local clamour for 41 a share of the plunder,” as it is often put, with cynical candour. The demand so often heard in Parliament during the last week, that certain districts should have their “share ” of the loan expenditure, and that works, which otherwise would never be undertaken, should be made to satisfy their claim, is one that should not be entertained for a moment. The principle .involved is a very dangerous one, and

cannot be sanctioned by the Colony without grave risk to its credit-. Experience has shown that all these “political” railways must need become a heavy charge on the general taxpayer. The Hurunui-Bluff Line, which now exhibits such poor results, would give very different returns were it not hampered by a host of unprofit able branches which had been constructed without the slightest justification. Those branches have been “suckers” instead of “feeders” to the main lines. It is to be hoped that a firm stand will be made against increasing their number.