Our Railway Management

Southland Times, Issue 19036, 2 May 1903, Page 2 (Supplement)

Our Railway Management

Mr Stuiiuul Vaile. referring to v rcociii series of articles on the Now Zealand a critic aicming himself

railwajK by

"Fi.shplate." ami published in the I'okl (Wellington), writes :— "I am pleusoil to liiid that 'Fishplate,' Sir Williftm Kussell. and myself all agree as to how the railway uccounts ought to be taken. The it«m r>f £71.(593 in 1902 for 'services rerxlci'ed to olhei' (lo[iU!'lmentH," sgojus to have oscapeil 'Fishplate's' notice. This item is tteatuii as revenue actually eai'neil, hut it is dear that no money passed nnri that it was merely' 'an adjustment of accounts.' If 'Fishplate's: figures tiro pieced together ami this sum added to them it will ht: found that he makes the lons on our railways last year L\ ,00().i»9o 1 place it at 4:1 ,0O7,(i' : )."). There is. therefore, a difference of only .ClOOi) hotueen us." On this question of "Charging to capita]," Mr Yaile states that a very interesting discussion has quite recently taken place between tTuglish and American experts. 'The host men on both sides." he v. rites, "agree with me that all ihose items which we now ]my for out of eapttil under the heading Additions ;o Opci Lineb" ought to lie paid out of revenue. The object of charging to capital is rf course to make it appear Unit a larger nit ( > of interest was earned. Last year it vvus necessary to do this to the extent of JL777.9H!) in order to make it appear that our railways earned i; 3 Rs (Wl per cent., when, as a matter of fact, they did not earn one penny of interest — not even working -expenses." "I think," lie continues, "we have now abundant evidence that our al>ominabli? no-system of railway administration has <;ompletely broken down, and that we must have a radical change of policy if the country is to he saved from financial disaster. Unfortunately, so far. we have, heou engoged in a wild scramble as to which proyinre shall secure the largest share of expenditure In railway construction. The result is that up to the 31st March. 19O'J, the -southern end of the South Island linri secured £53 9s 2sd out of every AM 00 expended, and their shave will be still greater at the end of March last. I warn my southern fi lends that they urc working out iheir own destruction, li sonic great change i* not made soon the Otago Central, V .• Midland, and many branch lines will have to be closed. Three-fourths of tVe colony will not much longer consent Co pay for the heavy loss made by the other fourth. Taking interest at 4 per cent only, the actual loss made on our railway investments during iho Jast six years was ii 2.872.883. The loss on working our railways increases rupidly y<?ar by year. The more money wo in\est the moiv paying points— save the mark \ — we reach tho greater the loss. The increase of loss — the increase only — during the last six years on the Auckland section was from £2999 in 1897 bvur ia?(i. to £3*>,sSo in 1902 over the loss made in 1901 ; on the Wellington-Taranaki-Httwkes Hay section, from £01.410 in 1898 to £438,4f>2 in I'oo2 ; oji tho Hornnui-IMu/Y section from £29.270 in 1897 to £381 ,4fi7 in 1902. Surely, if any railway system hns rceched paying pornts it is tho two last systems. Vet there we make our greatest and most-rapidly-increasing- loss. This is conclusive proof that tho policy pursued must be wrong I again say that never in our history, has our railway administration been so disastrous as during the last six years, and more particularly Huring the last three years.'