A Happy Recovery.

New Zealand Mail, Issue 889, 15 March 1889, Page 28

A Happy Recovery.

Whatever may be the outcome of 1 he current financial year as regards the whole of the New Zealand revenues, there is one branch at any rate which displays an improvement little short of phenomenal and which bids fair at the least to real iso the most Bauguine expectations, if not to exceed them materially. .Hnlu*r;o the biggest hole iu the irtasurei’s estimate appeared likely to ba made by the railway revenue. It was hopelessly iu arrear.as it seemed,when two-thirds of the year had goDe by. At that time the shortcoming was at the rate of £102,000 per annum. But now all that is changed. The gross receipts from the New

| Zealand railways for the financial yeah I were estimated by the Treasurer at j £1,040.000, and tbs 'expenditure was estimated at £(390,000, consequently the estimate of actual net railway revenue amounted to £350,000. As we explained recently,the Government railway estimates are based entirely on the net revenue, not on the gross receipts as formerly. The expenditure en 11 Working Railways ” now occupies a line to itself in the tables of estimated expenditure, appended to the Financial Statement, instead of being lurnpod in the departmental expenditure under the Minister for Public Works. The proportionate estimate for 10 mouths—or in other words, ten twelfths of the year’s estimate—would thus be (in round numbers, and omitting shillings and pence) as follows : —Gross receipts, £8(16,000; working expenses, £575,000; neb revenue, £291,000. The actual gross receipts for cho ten months from Ist April, 1888, to Ist February, 1889,amounted to £830,000. This is only £36,000 short of the proportionate estimate, whereas up to the end of eight months the shortcoming was at the rate of over £IOO,OOO for the full year. But the expenditure is £34,000 less than the sum estimated to be spent, the ratio of the working expenses relatively to the receipts earned being within a fraction the same us that calculated upon by the department in framing the respective estimates. The proportionate estimate of expenditure for ten months would be £575,000 : the actual outgoings amounted to £541,01)0, or £34,000 to the good. (Seeing then that the receipts were about £36,000 below the estimate, and the working expenses £34,000 below it, it obviously follows that the U9b railway revenue is only some £2OOO shoit of the Treasurer’s estimate. Ten months’ revenue at the rateof theestiraate would be£29i,o()o. The actual net revenue earned was £289,000. Aud at the rate of improvement now goiug on there is little doubt that the Treasurer’s estimate of net railway revenue for the financial year will be fully realised if it be not slightly exceeded. The details of the traffic returns show that tho gross receipts for tho ten months were £SOOO less than for the corresponding period of the previous year, but the working expenses showed a rlecreaso of very nearly £42,000, so the net revenue this year is £37,000 larger than last year. And this large reduction in the working expenses has been effected notwithstanding the fact that 20 more miles were worked. That so heavy a saving should have been possible has been due in a material degree to iho falling-off iu several branches of traffic. 'I hus fewer pas sengers by nearly 30,000 were carried, fewer live stock by 28,000, and slightly less wool, firewood and merchandise. But there weresmall increases in timber and parcels, and very large increases in grain and minerals, so that the net increase in the goods traffic amounted to over 140,000 tons, although the reductions made in some classes of freights prevented the Treasury from reaping the full benefit of the increased traffic. The rate of interest on the cost of the lines, represented by the net profits for the ten months, is2i per cent per annum. It will be seen from these figures that the railways have taken a remarkable turn for the better even before the great revolution in their management came into practical effect. Now that political interference is eliminated by statute, we may hope to see even better results. The Commissioners cannot accede to any Ministerial or political pressure in a wrong direction without committing a breach of trust and a public wrong of the gravest character. We do not believe that they are the. men to be subject to undue influence or pressure of any kind. In that belie p we look forward with very sanguine expectations to next year’s results. The later results for the current year promise even at this late hour to make up for earlier shortcomings, and to prove eminently favourable® notwithstanding the very gloomy aspect of the first eight months. It is most gratifying to see so marked an alteration for the better, and to recognise that any deficiency in (he riot, railway revenue is now exceedingly unlikely to be experienced.