RAILWAY LOSSES.

Wairarapa Age, 20 January 1922, Page 5

RAILWAY LOSSES.

£4600 A DAY. ANOTHER CUT IMMINENT. (“The Age” Special.) Parliament Buildings, Jan. 19.—The possibility of a further early cut in the railway services was suggested by the Prime Minister in moving the second reading of the Retrenchment Bill to-night. He said that a few weeks before the Christmas holidays, as the railways were losing £4600 a day, the Acting-Minister of Railways suggested to Cabinet that a further cut muss take place to reduce expenses. As they were within three weeks of the holidays it was decided not to make, a cut at that time, as tne Government hoped matters would improve. They did improve during the holidays, but not to a very great extent, and he had been very seriously disappointed. Mr Witty: Why not reduce fares? Mr Massey: I don’t know that it would increase the revenue. He went on to suggest «tlint people were not travelling because ihey had no money to spend. One of the results of retrenchment would undoubtedly be to reduce both freights and fares, but rot yet—not for some time. Mr T. W. Rhodes: It is reducing the use of the railways. Mr Masgey: Yes. I know the argument, and Am. willing to admit there is something in it. We cannot go on losing £4OOO a day, and we are losing over that sum now. We have to make a cut and reduce expenditure. I an sorry to have to say it, because it is not in the interests of the country, but. the railways must be made to pay expenses.

LOSS ON SOUTH ISLAND LINES Wellington, Jan. 19.—T0-night’s “Gazette” gives the railway working account to the termination of the period December 10. This shows that while the revenue for the North Island lines exceeded the expenditure by £189,414, the South Island lines showed a loss of £215,787, showing a Dominion loss on the railways of £26,373.—(P.A.) COAL CONTRACT CANCELLED. Auckland, Jan. 19.-jyThe Taupiri Extended mine at Huntly was idle today owing to a notification by the Railway Department that it could not continue purchasing 500 tons of steam coal as under its existing contract. In reply to representations by the Hon. E. W. Alison (chairman of directors of the company), the Department states that owing to the large stocks of coal in hand and to arrive, the contract could not be continued. This slatement refers, of course, to the extensive commitments made by the Government owing to the miners’ late “go-slow” policy. It is expected that the Rotowaro mine will be idle to-morrow. The company states that the termination of the contract will necessitate each of its mines being idle one day a week.— (P.A.)