The Dominion. FRIDAY, MAY 21, 1909. RAILWAYS AND SOUTH.

Dominion, Volume 2, Issue 513, 21 May 1909, Page 4

The Dominion. FRIDAY, MAY 21, 1909. RAILWAYS AND SOUTH.

There is an aspect of tho railways situation that calls for tho particular notice of the people in this island, ~\\ r o refer, of course, to thp fact that tho users of tho North Island lines are boing heavily penalised for tho benefit pf the people in tl\e South, and will be more heavily penalised in the future unless a drastic alteration is mado in tho methods of railways administration. Most people aro qwiire that .this inequality of treatment oxibts, but very few people realise the full measure of the inequality. For the financial year 1908-9 tho revenue on the North Island lines, to take tho Gazette figures, excooded tho expenditure by 4420,031. On/tho South Island lines tho oxcess' of rovenue was £394,079. By themselves these figures will'convey little to the public. But the'capital sunk in railway "construction" in the South Island amountod, on March 31, 1908 (the latest date for which the figures op the point arc available), to £15,351,691, while the corresponding sum in respect of this island amounted to £11,378,449. Although, therefore, the interest charges on the southern lines are vastly greater than on the northern lines, there, is a smaller sum in the way of "net profits on working" to go towards paying those charges in tho South than in the North. Until ' we know the extra capital spent in the ypar 1908-9 wo cannot know tho exact percontago of capital represented by the net earnings. Tho figures in this connection for tho yoar 1907-8, liowevor, appear in last ycar'B Railways Statement. ;Thp total ''cost of construction" : qn opened and unopened lines in the' North Island amounted on March 31, 1908, to £11,378,449, and in the South Island to .£15,351,091. Tho not revenue from all tho working lines in the year 1907-8 totalled #116,000 in the North Island, and £390,170 in the South Island. The northern lines, therefore, returned 3.05 par

cent, on capital, and tho southern lines only 2.58 per cent, thus: Capital cost. Net revenue Percentage £ ,£ > to 'capital. North 11,378,449 iIG.OOO 3.65 South 15,351,(i91 308,179 2.58 If, however, account,is had only of the actual cost of construction of openod linos (unopened lines, surveys, stock, and "miscellaneous" being left out of account), tho table will illustrate tho posi-tion-still more strikingly: Capital cost. Net revenue Percentage .'■■'' . £ ' £ to capital. Nor tli ■ 9,713,03-1 416,000 4.28 South .14,587,955 398,179 2.71 i The North Island lines, that is to say, pay 3| per cent.- interest on the capital expended on the working sections and £52,000 over. The South Island railways fail to do so by 1.04 per cent., o'r over £150,0C0. In other words, the users of the railways-in this island not only make no charge upon the Consolidated Fund, but have to contribute very heavily towards making up the southern deficit. The Prime Minister used to talk loftily of the generosity that prompted the Government .in fixing the "3 per cent, policy." All these years, however, the Government has been taking over 4 per cent, from the people in, tins, island. The ";i per cent, policy," it jis quite clear, has been merely the policy of robbing the North, to pamper the South.

It. is true that Mr. Millar has lately been effecting little economies in tho Southland turning a deaf .car to the greedy cries'of Canterbury for further favours at the expense of the people in tho North. But the Midland Railway goes on. Even .Mr.' Millar is reluctant to say tha,t that ghastly wild-cat scheme will pay. He says ho is not much ita pressed by the country in Cantorjiuty west of, Broken River, as vyell he might not be,'since it is rugged Alpine,scenery and bleak plateau—the dreariest and most dismal area in New Zealand. East of Broken River to Springfield tho railway lino is a chain of tunnels and dizty. bridges, with a rugged mountain on, one side and terrific precipices on the other, The Minister "looks for- tho bulk' of tie traffic to bo from, the timber and coal'of the \Yest Coasti" He recognises that tie freights on coal and timber will lie groater' than the steamer freights. '• The fact is, of course, that tho railway caijno.t r-un to pay its way unless the freight charges are so high as almost to be prohibitive. At the very most, the lino, will only supply a. limited area of Cantorbur;' with coal and timber. In offcct,\ this monstrous line, which tho pcqplo in thi i island will as, usual have to maintain, ii nothing moro than a sop to a scction'oj Canterbury'and the West Coast. Mn Miliar will requiro to apply -the prunirg knife in tlio South with amazing vigour if ho wishes to avoid increasing the heavy and unitist burden borno'by the North,