MR. HERRIES.

Waikato Times, Issue 12189, 26 September 1911, Page 4

MR. HERRIES.

RAILWAY MATTERS AT MATAMATA. Under the above heading the Wellington Evening Post says :—Day by day some members of the House of Representatives have been expecting an illuminating analysis of the annual railway figures by Mr Herries, who has long been termed by some newspapers " the brains of the Opposition." Indeed it is whispered that «if the day dawns for a Massey Ministry, Mr Herries will hold the portfolio. Probably no other member of the Opposition has a better title from the viewpoint of knowledge at least, for Mr Herries has been at pains to keep himself well informed. Hence it comes as something of a shock to see this paragraph on an order paper :" Mr Herries to ask the Minister * of Railways, Whether, considering the large profits made by the railways this year, foe can see his way to place a station-master at the important station of Matamata?" Here' was a concession to gladden the Hon. J. A. Millar, and make him generous to Matamata and Matamata's champion. Yet Mr Millar has been ■ dour enough to deny stationmasterhood to Matamata, though he has '.admitted that Matamata's greatness warrants the appointment of a porter. Mr Herries is in large company when he asks for an inceeased expenditure on railways by reason of those alleged " large profits." What does Mr Herries understand by the term " profit ?" It seems that he is sharing in a common confusion of the words " revenue " and " profit." In an article last week analysing the Railway Statement we drew attention to the Ministerial slip in promoting " net revenue " to tba grade of " net profit." The " net revenue " proclaimed as 4.06 per cent, on the capital cost of the lines, does not include interest, which averages at least £3 1 Is fidi over all loans. We do not .admit that the " net revenue " for last year is 4.06 per cent. on the total money sunk in railways. As interest has to be paid on all line?, opened and unopened, " profit " should not begin till the full bill for interest has been met. Our belief is that revenue works out at about £3 15s per cent, on the total capital borrowed plus the funds transferred from general revenue, and thus the enterprise last year just about paid interest. We fail to I sea- " large profits " for the comforting of Matamata and similar places.