THE Temuka Leader SATURDAY, JANUARY 14th, 1922. RAILWAYS.

Temuka Leader, Issue 10284, 14 January 1922, Page 2

THE Temuka Leader SATURDAY, JANUARY 14th, 1922. RAILWAYS.

The annual report of the General Manager is in precis form made public, and his language and his forms of expression are, Ave think, calculated to mislead. Take this for example : ‘‘Mr McVilly says that, taking interest at 3? per cent., which is the rate the Department is required by the Government policy to earn on the capital (£37,235,254) invested in the lines, the year's operations show a deficit of £124,375.” He does not point out that interest is being paid on £3,034,375 of borrowed money on unfinished lines, and that reckoned on a 4 per cent, basis. There is no note of personal responsibility hi the whole report. The raihvays are machines, and the working mechanical. We have scrutinised it for references to mercantile competition of the railways as against motor lorry traffic. We have, found not one word. For fifty* miles through South Canterbury, the ratepayers have to pay rales to keep it]) roads Avhich arc being cut up by lorry trathe, and at the same itnuy these same ratepayers have to payi (he deficit mi the railway line running parallel to the same roads.. Our General Manager says not a Avord on this, or railway policy. He charges the South island Avifh ■sections run at a loss of £o27,*Jfi7. Even* one who has given thought to the amount of capital expenditure on raihvays knows that the two big propositions in the South Island should be put in a suspense account. We refer to the Otago Central, and the Midland Railway. Personally, from an accountancy point of view, wc Avould cut nut of capital account nearly the Avhole cost of the Otago Central. Witli the Midland Railway it is different. When completed. it will return some graduated improving interest on the money expended. But, and here is the great lug question, “Why should those two sections of railway, one in Otago, Avliieli does not now pay one per cent, on its construction, and (he, other incomplete, Avhich as yet pays nothing, ho put on the railway hooks to show a deficit for the Booth Island of That is our point, or at least, one of them.