RAILWAY FINANCE.

Dominion, Volume 1, Issue 126, 20 February 1908, Page 9

RAILWAY FINANCE.

. . 'IS IT SOUND? A OCKLAND MERCHANT'S ;VIEW. , ' (Br •• TBUWBlPK—rnsss i,'ASBOOI AT.tOS.).. Aqoklard, February 19. ; In.'view of tho;.statement by Sir' Joseph, Ward regarding Now Zealand railway finance, a .Press'representative; waited yesterday upon Mr. B. Kent (of the Shipping'and Railways Committee of the Chamber or' Commerce) to' ascertain if ■ thoro roally is 'any. political' feel--iiig 'oii tho .part of: mpmbOrs, as agaihst'tlie Government. : . "... . A':, i As .'a'-,.matter of . fact," said :Mr/' Kent, ■" tho Chamberis neither for nor.against any Government, becauso wo aro a strictly nonpolitical'"body of merchants'and, professional gentlemen, and it is - bur .duty ;to look after .tho! eoininercial-interests. of Auckland, irrespective of' any, particular Government .that may be; in power. Tlio position is that, in: this instance- a amount of iriforriiation from. Professor Lo Rossignol about our. railways, was placod.in the. hands of tho com- : mitt'eo- of which: lam chairman for examination. . From ;tho .tabulated,.statement of,tho; i Professor aG to tho receipts isnd expenditure .pfour railways, he shows that wo have'made ft-'net loss of '£4,380,1.47 in tehycars. Now, thoro is no doubt whatever.-thnt that stater mont is incorrect, becauso it is" not right' or just- • to "charge' air replacements ; and new plant, to revonuo. account; ,and...that is;.what the Professor-has dorioj because in the same ton years ho has an item (and it is tho. only .with replacement and now : plant) oh £3,122,478., .This : .-is all placed against the rovonuo,. account. .. " Now,proposo :to,. .show -how .. utterly, wrong; such a method of calculation is. Sup- ' railway. from Auckland to Hamilton was-i laid with '401b. .rails, but'. in . the . course .1 of. -.years,' on .-, of..increased; traffic, ~ those--rails had- to bp replaced by others of : £X)lb., the difference between replacing • t-ho', 401b. rails with, those of. 901b. must bo put justly to capital/account. Many .'other ,-fillustrations: of/a similar...kind could •bo 'given,; .but 'that .one. is -sufficient;for mr purpose.Of course,; in allocating all such Amounts .to qapital account, thoro 'should,' be a sinking. fund ~so - that tho capital accouiit may,be gradually relieved of this extra plant chargp,:. -an',!.' tho...amount., thus . gradually ; p'l.aced oyer a . period .'"of years to rovonue iiccount..-; 7>Whethor or .not, that is 'done" by our Government-. I, am not- in a position to say.;, I: am; qiijte sure .that a perusal of that; repbr't-byySir '/Joseph;' AVa'rd : would convinco him that;it is drawn "up : in>a very* careful manner, 1 and I am sorry, this [misunderstand-,. .ing''hVs'arisen'.",*', r