SERVICE BEFORE PROFIT.
FUNCTION OF THE RAILWAYS. AUCKLAND, August 21. Interesting statements in regard to the function of the railways were made by Mr H. H. Sterling, the general manager, at Matamata The railways in this country, he said, were laid down for service and not for profit. They were designed to open up and aid in the development of the country. For many years the railways were required to find only per cent., and the balance, instead of being devoted to sinking fund and depreciation, was used in giving more sen-ice or reducing freights. With such a system it was rot now possible to make the railways pay as a commercial proposition. What he intended to • do was to see that the i ail"'ays gave more and better service. As an example it had cost the department £lOO,OOO to give a reduction of 40 per cent, in freight on fertilisers, which had enabled the farmers to use larger quantities. Hence in spite of the dry spell production in the Waikato was ahead of the total for the previous normal season. This increased production had meant much more-than £lOO.OOO to the country. . . “.The test of the railways in future is going to be in the service rendered/’ concluded Mr Sterling.
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Bibliographic details
Otago Witness, Issue 3885, 28 August 1928, Page 60
Word Count
210SERVICE BEFORE PROFIT. Otago Witness, Issue 3885, 28 August 1928, Page 60
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