RUNNING AT A LOSS

Poverty Bay Herald, Volume LXII, Issue 18770, 29 July 1935, Page 6

RUNNING AT A LOSS

EAST COAST RAILWAY TE PUKE-TANEATUA LINE PROSPECT OF CLOSING DOWN The possibility of closing down the Te Puke-Taneatua section of the East Coast railway was discussed by Sir James Gunsou, acting chairman of the Railways Board, during the recent visit of the members of the board and the general manager to the Bay of Plenty district Speaking at Tauranga Sir James pointed out that there was a substantial operating loss on this portion of the line and that state of affairs could not be allowed to continue. The State had, in effect, made a present of the line to the district and was unable to look for a full interest return on the cost "of construction, but the department did expect that the revenue would meet operating costs, particularly when the business \vas there to be done but was not being given to the railway. Naturally, the board was averse to closing any line, and if tire board were reluctantly forced to close the line between Te Puke and Taneatua, that decision would only be made after all possible efforts to secure to the railway the traffic to which it was entitled had failed. The matter was entirely in the hands of the s’ettlcrs and all interested in ’thfc Welfare of the district. As far as Xe Puke--was concerned, concluded Sir James, the position of the line and its operation was satisfactory. hut beyond that it was far from satisfactory and called for definite action : hut as he had already stated, no precipitate action would be taken.