RAILWAY ECONOMY

Taranaki Daily News, 22 December 1930, Page 9

RAILWAY ECONOMY

SAVINGS ABOUT, £600,000.

EFFECT OF HIGHER TARIFF.

An intensive campaign of economy is now in progress in the Railway Department, and it is believed that the savings which will be made will not be far short of the estimate made .by the Railway. Commission. In. all, something like £600,000 will be cut from the Railway Department’s annual bill. The full measure of the problem to be faced will be available soon, for the figures for the past year’s operations have been completed to December 6, and a prompt statement will be available showing how the railways' hav ( e fared during 1930. The increased tariff rates, operative since November 16, will have’ been in force sufficiently long for an indication to- be gained of their effect upon revenue. It is not considered that the Department faces any danger of'increased competition from the higher level of tariff rates on, goods, for the increases were' mainly in lines where the higher level will still be insufficiently attractive to gain the notice of competition. • Such lines as coal, 1 gravel and bricks would have to be charged much higher rates before motor competition would have a chance of making much headway against the railways. ■■ In one important item the altered policy of the Department has produced immediate results. The Railways Commission pointed out that the “Railways Magazine” was being run at a loss, and recommended that unless it could be made to pay it should be discontinued. The necessary change has been brought about, and the magazine’s last issue carried sufficient advertising to pay. for it-