The Timaru Herald. THURSDAY, FEBRUARY 6, 1930. THE RAILWAY ACCOUNTS.

Timaru Herald, Volume CXXV, Issue 18492, 6 February 1930, Page 8

The Timaru Herald. THURSDAY, FEBRUARY 6, 1930. THE RAILWAY ACCOUNTS.

It must tie gratifying to tile South Canterbury Chamber of Commerce that its efforts to bring the rank and file of its membership into closer touch, not only with the working of the organisation, but with the vital problems confronting the business community which from time to time come up for discussion, have met with such popular support. The general meeting of members held last evening was perhaps one of the most successful held within recent years, and it is obvious that the Council of the Chamber of Commerce, in proceeding along lines suggested from time to time, in order to create and maintain interest in the work of that body, has taken an eminently sane course in inviting authoritative speakers to address the members. Although many of the points dealt with last night by the general manager of the New Zealand Railways, in what was a interesting and lucid address, are by no means new, the speaker made a vigorous appeal for more generous support by the whole community of the railways. Mr Sterling dwelt at considerable length with problems confronting the railway authorities in relation to goods traffic, but strangely enough he did not say that as far as the revenue-earning capacity of the railways in the carriage of goods and live stock is concerned, there had been no decline; indeed the position as disclosed in The New Zealand Official Year Book shows that the Railway Department has not only held its jiosition, but the revenue earned under this heading for the year ended March 31, 1928, was the highest on record, being £4,846,125 compared with £4,680,135 the year previously, and £2,956,237 in 1920. Moreover, under the heading labour, demurrage, etc., the earnings of the railways for the year ended Mhrch 31, 1928, was also a record, being £175,853, which is a considerable increase compared with the previous year, and largely in excess of the year 1920, when only £105,072 was earned. It is in the handling of passenger traffic that the shrinkage of revenue has been experienced, the receipts for the year 1928 being £2,124,746 compared with £2,37,047 for the year previously. Under the existing system of keeping the railway accounts, however, it is not easy to ascertain just where the railways stand, nevertheless, the latest issue of The Pocket Compendium ,of Sttltistics for 1930, compiled by thp Census and Statistics Office, gives the following particulars of the position of the railway accounts:

It will be seen from these figures that while railway revenue increased by £412,340 in five years the Departmental expenditure increased by £829,163, in the same period, and this does not take into account heavier interest charges on the capital cost of the railways which has increased from £50,833,500 in 1925, to £62,276,214 last year. It is freely admitted that railways generally are passing through difficult times, but it is difficult to explain Mr Sterling’s failure to mention, in view of the stress he laid on the community service rendered by the railways, that from 1925-26 the railways have been assisted by subsidies transferred from the Consolidated Funds, aggregating something like £1,500,000 in four years, to make good losses on operation of certain developmental lines. Taking the accounts over a period of four years we find that the percentage of net revenue to capital invested has shown a gradual decline from £4 6s lid per cent, in 1920, to £3 9s Od per cent, last yeah, which is the lowest save Only on three other occasions, within the last twenty years. Not unnaturally the general manager is anxious to exploit additional sources of revenue. 'The popularising of excursions, although, as the general manager points out are merely “bread and butter” operations, have not only increased the Department’s revenue but should serve to popularise the railways. The amazing feature of this new move on the part of the Department is that the officials were so slow in making up their minds to try out the idea as a revenue-producing Scljettie. Years ago we endeavoured to convince the Railway Department that in Timaru there is a potential mine of new revenue ,if only the railways would rise to the Occasion and organise popular excursions at rates that would attract the masses. The success of the scheme is now admitted by the general manager, and it should be the policy of the Department to exploit every seaside and scenic attraction in the Dominion, with the same end in view. The proposal propounded by the general manager last night, by which the Department aims at increasing its revenue from tile transport of goods, will require careful consideration before being put into operation. To suggest that the Railway authorities should re-

fuse to carry a customer’s goods, unless that customer deals exclusively with the railways is inviting vigorous opposition, but we do not see that the Railway authorities can justify moving in such a dangerous direction, in view of its own policy, which the general manager stated last night is likely to be expanded in the near future, of offering differential rates (often operating to the detriment of certain Communities, as in the case of Timaru and the north), to meet regional competition. It is Mr Sterling’s task to strive to ppt the railways on a sounder basis. Generally speaking, it can be said that the whole service is imbued with the same purpose, but unfortunately the political element intrudes, and white the general • manager is showing commendable activity among prospective customers, in the quest of new and more payable business, the Government of the day is embarking on costly railway construction which must inevitably add immensely to the problem facing the railway management in its efforts to run Ihe service on business lines.

Year ending Revenue Expenditure March 31. £ £ 1925 . 7,112,524 5,545,416 1926 7,589,274 6,164,570 1927 7,423,472 6,158,283 1928 7,343,845 6,302,117 1929 7,524,864 6,374,579