NEW ZEALAND 1 RAILWAYS

Timaru Herald, Volume CXXXVII, Issue 19308, 8 October 1932, Page 20

NEW ZEALAND 1 RAILWAYS

LOWEST GROSS EARNINGS FOR YEARS. AFFECTED BY TRADE |i DEPRESSION. i (Special to " The Herald.”) WELLINGTON. October 7. The gross earnings of the New Zea- i land Railways for the year ended ' March 31, 1932, were £6,508,948, a de- I crease of £1,062,589 (14.03 per cent.), I compared with the previous year, and i a decrease of £1,779,168 (21.4 per cent.) compared with the year ended March, 1931. These figures are given in the i annual report of the Railways Board i which was tabled in the House of Re- ' presentatives this evening. The gToss earnings were the lowest since 1920, when the revenue totalled £5,752,487. During the past year the railways suffered severely from the trade depression and the substantial decline in revenues is attributed mainly to this cause. The gross expenditure totalled £5,670,955, a decrease of £1,211,855.

Accumulated Loss. | The accumulated loss, which stood jat March 31, 1931, at £1,892,017, was written off against the depreciation reserve of £1,658,253, and the balance, £233,764, was charged against the general reserve. On March 31, 1932, the capital invested in the lines open for traffic, including the steamers and plant on Lake Wakatipu and other subsidiary services was £51,424,883, as compared ' with £60,545,154 on March 31, 1931. The additions to the capital account totali led £754,078, and comprised maintenance branch, £155,521, chiefly in bridge construction; signals branch, £30,934, in new telephone lines and extension of train control; Public Works Department, £193,981, expended on j Tawa Flat deviation; and £373,642, expended on the construction of new rolling-stock. During the year loan moneys amounting to £439.190 were repaid to the capital account, and the net addition to capital for the year was I £314,888.

The Government Railways Amendment Act, 1931, authorised the reduction of capital as at April 1 ,1931, by £10,400,000, which amount represented the estimated amount of accrued depreciation and losses of capital not otherwise provided for up to that date. The reduction made possible the writing-off of all assets which had at March 31, 1931, reached the full term of life fixed for the purpose of determining depreciation rates. During the year the sum of £236,724 was charged against revenue for renewals, and the amount expended from this fund was £171,875 for electric equipment, overhead lines and track renewals. The credit balance at March 31, 1932, in the Renewals Fund was £474,506. During the year the sum of £452,060 was charged against revenue on account of depreciation. No amounts will now be accumulated in the fund, as the depreciation is repaid to the Treasury four-weekly. Operating Expenses. The earnings from passenger traffic for the year decreased by 24.69 per cent., as compared with the previous year, while the earnings from goods traffic decreased by 10.42 per cent. The operating earnings per average mile open and per train-mile were as

Results of Working. The results of the year’s working are as follows, the figures for 1931 beinggiven in parentheses): Total miles open for traffic, 3,315 (3,322). Average miles open for year, 3,315 (3,303). Capital cost of opened and unopened lines, £59,055,701 (£68,679,025). Capital cost of open lines, £51.424,883 (£60,545,154). Capital cost per mile of open lines, £15,513 (£18,226). Gross earnings, £6,508,948 (£7,571,537). Working expenses, £5,670,955 (£6,882,810). Net earnings, £837,993 (£688,727). Interest charges, £2,221.465 (£2,255,345). Deficit, £1,383,472 (£1,566,618). Percentage of total working expenses to gross earnings. 87.13 (90.90). Percentage of net earnings to capital invested, 1.64 (1.16). Railway operating earnings, £5,788,965 (£6,781,388). Railway operating expenses, £5,301,653 (£6,406,143). Net railway operating earnings, £487,312 (£375,245). Percentage of railway operating to earnings, 91.58 (94.47). Operating earnings per average mile open, £1,746 (£2,053). Operating expenses per average mile open, £1,599 (£1,939). Net operating earnings per average mile open, £147 (£114). ! Operating earnings per train-mile, 136.63 d (144.240 d). Operating expenses per train-mile, 125.13 d (136.28 d). Net operating earnings per trainmile, 11.50 d (7.98 d). Passengers, ordinary, 6,503,566 (7,288,674). Season tickets, 459,063 (600,440). Total passenger journeys, 19,155,600 (22,813.708). Goods tonnage, 5,272,253 (6,409,831). Live stock tonnage, 552,558 (556,498). Train mileage, 10,168,720 (11,281,898). ; Engine mileage, 13,845,966 (15,618,776) I For the current year it is anticipated that the revenue will reach £5,983,000, and the expenditure £5,240,717.

Details of the figures are: 1932 1931 £ £ Gross revenue 6,508,948 7,571.537 Gross expenditure 5,670.955 6,882,810 Net revenue 837,993 688,727 Interest charges .. 2,221,465 2,255,345 Excess of interest charges over revenue 1,383,472 1,566,618

follow:— Per average Per mile open. Train-mile. £ £ 1932 .. .. 1.746 136.63 1931 .. .. 2,053 144.26 1930 .. .. 2,27-1 149.21 The operating expenses totalled £5,301,653, the details being Per cent of 1931-32. Operating £ Revenue. Mai n t e n a n c e— Way and works Mai n ten a nee— 997,629 17.23 Signals 107.584 1.86 Mai ntenanc e— Rolling-stock .. Examination, lub1,270,585 21.94 rication and lighting of vehicles 59,619 1.03 Transporta t i o n— Locomotive . .. Transporta t i o n— 1,195,151 20.64 Traffic 1,424.520 24.60 General charges .. Superann u a t i o n 69,280 1.20 subsidy 177.285 3.06 5,301,653 91.56