EDITORIALS.

New Zealand Mail, Issue 765, 29 October 1886, Page 22

EDITORIALS.

Haxjt-teaeiiY balancings of accounts are very nice things when all has gone well during the period of six months. When an undertaking has been prosperous, when profits have been, large and,expenses small, and when everything seems to promise favourably for the future, then a half-yearly balance is a thing of beauty, if not a “joy for ever.” But when the results of the balancing are to show that expected receipts have not been realised, that losses have been sustained and that expenses have increased, then the balancing time is a day of wrath, of heaviness, and of woe. It is to be feared that the last halfyearly balancing of the New Zealand Government Railways will come within the latter class. Although the official returns are not yet issued, a closely approximate calculation has been made as to the results of the half year which ended on the 30th ult. It appears that the six months’ gross reeeipts for the railways of the whole Colony have amounted, approximately, to £405,000, or about £35,000 less than for the corresponding moiety of the year 1885, notwithstanding that the length of railways open has increased by 165 miles. The Colonial Treasurer in his Financial Statement estimated the Railway Revenue for the year at £1,150,000. If we halve this sum we obtain £575,000 as the proportionate estimate for six months. But the actual receipts were only some £465,000; consequently the railway revenue for the half year fell short of the proportionate estimate by about £110,01)0, or at the rate of £220,000 deficiency, under that head, for the full year. It is not to be supposed, however, that the year’s deficiency in railway revenue, as against estimate, will reach this enormous sum. On the contrary there is good reason to hope for a great improvement during the summer and holiday months. The April-September halfyear is usually the worse of the two halves. It includes all the winter months and only a part of the grain season, whereas the September-March half-year takes in all the spring and summer months, most of the chief annual holidays, such as Christmas, Boxing Bay, the New Year, the Prince of Wales’ Birthday, and sometimes Easter. These tell largely on the passenger revenue, and there is no reason to doubt that they will on this occasion operate in checking somewhat the downward course which our railways have been pursuing of late. That is to say, we do not suppose the railways will continue to go to the had at the rate of £220,000 per annum as they have done during the last six months. It is possible even that the present deficiency may not be increased, but we fear that this can hardly be deemed probable. The question is: Can the railways be expected to yield £575,000 gross revenue daring the half year ? If so, then the deficit on that head for the year will remain at £IIO,OO0 —a sufficiently formidable sum —hut should the lines fail to realise the £575,000, then the deficiency of £IIO,OOO will be pro tanto augmented. It is most likely that the actual outcome will be mid way between these two extremes of possibilities; that the revenue will still fall somewhat short of the estimate, but that the total shortcoming at the end of the year will probably be lesß than £150,000, and perhaps may not exceed £120,000. But even this, it will justly be said, is a tremendous deficiency. So it is, but it will take no one by surprise—no one, that is, who has carefully watched the working of the railways. Everybody. who knew anything about such matters,, also knew perfectly well that the estimate was wildy over-sanguine, and will not, therefore, be disappointed at a result which, to those who are unprepared for it, may appear quite appalling. The mistake consisted in calculating on a return that was utterly unlikely to be realised. Unfortunately the deficient receipts are not counterbalanced by reduced expenditure, for the working expenses for the half year show an increase of some £7OOO. The actual traffic has kept up well, there being a large improvement in the items —passengers, parcels, &c., live stock and minerals. But the goods traffic, as a whole, exhibits a considerable decrease, mostly in the classes —grain, merchandise, and timber. The diminished receipts with increased mileage are not very encouraging from the revenue point of view; it is rather unsatisfactory to derive less revenue the more miles of railway we open. The explanation is,

we suspect, in the present instance, that the extra mileage represents so many miles of unprofitable District Railways which have been taken over by the Colony, or rather saddled on its shoulders, and so the extra length open does not really represent re-venue-yielding lines. We fear these unremunerative additions will handicap our whole railway system for some time to come. But even putting aside that source of weakness, there has been a serious falling off on the part of the New Zealand Railways generally, and the Colonial Treasurer will require to make up his mind that he will have to provide for a very heavy deficit as against his Budget estimate.