THE RAILWAY PROFIT.
BIG FALL APPARENT. RETURN OF ONE PER 'CENT ONLY. The railway returns have been issued, and show that the profit for the year was £405,000, in round figures ; the North Island system returned a surplus of £517,000, and the South a deficit of £lll,OOO. The profit last year was £1,271,000 and in 1920 £1,647,000. The profit in 1920-21 was sufficient to pay 3.42 per cent on the cost of opened lines, which is less the 3| per cent which the Department fixes as the percentage that should be paid. The cost of opened lines on March 31st, 1921, the latest figure available, was £37,235,000, and of opened and unopened lines £41,425,00. That is to say, the profit for the past year was a little more than one per cent, instead of the 31 per cent aimed at by the Department, and this without taking into account the capital locked up in the unopened lines. To put it in another way, the system should have earned £1,403,000 to pay the small rate of interest mentioned, and it earned only £405,000.
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Waipa Post, Volume XX, Issue 1243, 16 May 1922, Page 6
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182THE RAILWAY PROFIT. Waipa Post, Volume XX, Issue 1243, 16 May 1922, Page 6
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