NEW ZEALAND RAILWAYS.

Poverty Bay Herald, Volume XLIV, Issue 14442, 31 October 1917, Page 3

NEW ZEALAND RAILWAYS.

EFFECT OF WAR CONDITIONSY "Notwithstanding the fact that the year's operations were satisfactory on the whole, there was an 'absence of that buoyancy whioh, has hitherto . been so remarkable a feature of the railway business during the war, and the effects of nearly three' years of war manifested; themselves especially towards the close of the year," thus remarks Mr B. H. Hiley, general manager of -railways, m his annual statement.

-Passenger traffic gave clear indications of languishing, the direct result undoubtedly of the absence on service, of so many young men, the reduction m the , number of . oversea passengers arriving and! departing from New Zealand ports, and* a spirit of caution m regard to expenditure on unnecessary travel. The goods business is now showing unmistakable signs of the effect of the dearth of oversea' shipping andi the embargo placed 1 on exports overseas by the British Minister of Munitions, these causes affecting very seriously both the import and* export traffic and the railway busi...nesjs, at Jhe pojts. In view of the above *tendettaies to restrict business a considerable reduction m gross revenue both m passenger andT goods traffic must be anticipated for the * coming • year, whilst on tjie other hand, unfortunately, there will be considerable difficulty m effecting any equivalent economy m working owing to the ; rapidly. : rising - prices of railway material. As prices have .still; a strong upward tendency it is impossible to Calculate to what extent- railway expenditure wili be affected by the end of the year, and afterwards, liis very questionable whether the cessation of hostilities, will have the -immediate effect of cheapening the prices of engineering material, as were will be an urgent^ demand as soon as peace is declared for such material , for reconstruction purposes m Europ<?. There is, therefore, little prospect, of 'any reduction m railway-operating costs m the near future to compensate for the inevitable lqis» of revenue. . : , X In my special report of 1914 reference was made to the difficulties then being experie|iced as a result of the lack of facilities and) accommodation at various, important centres, and 1 a scheme of works was submitted having for its object the reihoval of disabilities under •yhich the Department and the users of the railways were alike laboring, lt was , estimated that five years; would be • required to complete the scheme, and emphasis was iaidi on the desirability of* making an early and comprehensive . start on the programme. Up to the 'present sufficient funds have not been Available to enable a satisfactory oom-mvi'-'-'nent to be made. YNotwithstandYng I.Vo unprecedented conditions result- •, * n 8 i}'° ir \ the war the railway business . has expanded by 20 per cent, m the four years that have elapsed since the original report was written} and I am strongly of opinion that at least the pre-war rate of progression will continue. It is indeed, to my mmd, practically a certainty, that as 'soon af« the difficulties now obtaining m respect to shipping are removed' andi peace cond 'tions again prevail a considerable impetus will be given to New Zealand staple products * and industries. This will undoubtedly result m greatly increased demand for railway transport, and very grave difficulties must arise through lack of facili.,ties for the efficient handling and carrying on of the traffic. It is apparent that r facilities that were insufficient to deal with the traffic m 1914 will be hopelessly inadequate m another five years' time when the traffic will be at least 50 per cent, greater than it was m 1914. It is ' impossible to now make up for the time lost', but if a ; sufficiency of funds is provi'd-d without further delay the Department will be' enabled to make all the preliminary arrangements required, and to vigorously prosecute the works without intermission immediately the materials and men are obtainable. The postponement of the financial arrangements until the last moment will accentuate the difficulty arising from time already lost. The, serious prosecution of the new works referred to immediately peace is deolared will afford an opportunity for the profitable and prompt employment of a large number of returnee, soldiers. .