RAILWAY DEPARTMENT

Otago Witness, Issue 3312, 5 September 1917, Page 9

RAILWAY DEPARTMENT

ANNUAL REPORT. (Fnon Ocr Own Correspondent.) WELLINGTON, August 28 In his annual statement the Minister of Railways says that, notwithstanding the abnormal conditions which have prevailed daring the year, the railway earnings, which constitute a record for tho dominion, amounted to £4.800.810. This is an advance of £252.454 on the earnings for tho year ended March 31, 1916, and £350,810 in excess of the estimated revenue. Tho following gives a summary of tho results : 1917. 1916. Total earnings ••• £4.800.810 £4.548.356 Total expenditure 2,926,864 2.910,883 Net profit on working 1,873,946 1,637,473 The mileage of lines open for traffic on March 31 was 2970. no new extensions being opened during tho year. The capital cost of all lines open for traffic, including tho steamers and plant on Lake Wakatipu, increased from £34,857,882 to £35,378,664. The net profit is equal to a return of 5.30 per cent, on the capital invested in tho lines open for traffic, as against 4.72 per cent, last year, and 4.91 per cent, on the gross capital (£38,187.173) invested in the opened and unopened lines. The gross receipts per train milo for all lines amounted to 125.75 d, as against 116.50 d for the previous year—an ii crease of 9.25 d per train mile. The receipts per train mile from tho North Island main lino and branches were 123.00 d, as against 112.25 d last year —an increase of 10.75 d. Tho South Island main lino and branches produced a gross return of ]24.75d per train mile, as against 117.25 d last year —an increase of 7.50 d per train mile. Tho net earnings per average mile- open was £642, as against £555 in 1916. The net earnings per train milo was 49.12 d, as against 42d in 1916. The expenditure for the year (£2,926,864) was £15,981 more than tho preceding year, but £118,136 under the estimate (£3,045,000). The percentage of working expenses _ to earnings was 60.97 per cent., as against 64.00 per cent, last year—a decrease of 3.03 per cent. The sum of £296 276 was expended under tho head "Additions to Open Lines," in providing additional rolling stock, workshops machinery, car lighting Westinghouse brakes, steam heating gear interlocking, telegraph, telephone, and tablet facilities, purchase of land, improvements to wharves, etc. Tho Minister goes on to say: "In view of the uncertainties created by the war conditions, more especially in regard to overseas shipping, tho dearth of which affects our imports, exports, and manufactures very seriously, it is quit.o impossible to make anything beyond a conservative forecast of the railway revenue and expenditure for tho year ending March 31, 1918. Having regard to these circumstances. I do not consider it prudent to anticipate a higher revenue than £4,200,000, or to fix tho expenditure at less than £2,943.500. Although constrained by the uncertainties and adverse conditions of tho moment to make a conservative estimate of the results of working for tho ensuing year, I deem it essential to emphasise the advisability of making amnltt provision to enrry on comprehensively and progressively tho improvements referred to in the special report made by the general manager in 1914. It was definitely stated at that time, and has been emphasised since, that, unless tho works enumerated were completed within five years, very serious disabilities would occur in dealing with tho railway traffic. At bhat date the revenue was verging on £4,000.000 per annum, and in the •succeeding four years it has advanced to £4.800,000 —an increase of £BOO,OOO, or 20 per cent, per annum. I am firmly convinced that, not long after hostilities cease, this country, with its groat natural resources, will enter upon an era of unprecedented industrial activity, and our railways will bo called upon to deal witfh a greatly increased business. During 10 years from ISOS till 1914, under normal conditions, the railway revenue increased by over S 3 per cent, and the expenditure by 48g per cent. The experience of tho last four years confirms my opinion that this rate of advance will bo maintained, if not exceeded, when normal conditions are restored. It is obvious that facilities that were insufficient for the business in 1914 will be totally inadequate to deal with the 50 per cent. greater traffic that will bo offering before tho works can be completed five years hence. Much valuable time has already been lost through unavoidable circumstances. This cannot be recovered but the consequent disabilities c ; in bo rendered Jess acute by at once making such provision as will enable tho improvements to be commenced and hastened on vigorously and uninterruptedly as soon as materials and labour are available.

The traffic figures for the North Island main lino find branches compared with the South Island mam lino and branches arc as follow: North Island revenue, £2.683.060 j increase, £179.863. The principal items of traffic were : Passengers, 8,436,175 ; increase, 115.735; season tickets, 223,044—increase, 18.730; parcels rcve:iue, £l4o.664—increase £6558: live stock, 3,s29,3B2—decrease, 272,512: goods, 1,923,619 tor.?.—increase, 2166 tons. The revenue per mile of railway increased from £2259 8s 5d to £2421 lis. and per train mile from 9s 4kl to 10s 3d. In the South Island the revenue was £1.682,638 —increase, £63.898. The principal items of trnffio were: Passenorers 4.727.908 —decrease. 95,599; eeason tickets, 120.142—increase. 5739; parcels revenue, £B9.o24—increase £224; live stock. 3,Bl4.797—increase 212.9*4: goods, 2,192,189 tons—decrease. 144.055 tons. The annual revenue per mile of railway increased from £1152 19s to £ll9B 9s 2d. and per train mile from 9s 9sd to 10s 4fd.