BUSINESS METHODS WANTED.

Dominion, Volume 3, Issue 788, 11 April 1910, Page 9

BUSINESS METHODS WANTED.

A SOUTH ISLAND MINISTRY. "It is : perhaps , only natural that South Island newspapers should bitterly resent any criticism of their railway system," said Mr. R. A. Wright, M.P. for Wellington South; when asked_ for his views upon the railway question. "Theyare interested parties. The more railways the .better, they think) whether profitable or not. Just here, however, it must not be forgotten that the railway system of New Zealand is the property of the people. As such the. .people are, justified in ■'critically-examining all railway returns with a view to preventing leakage and ■loss.; ;.'' • '-.. . ' -'■■•■ .■•■..'

"It is not denied that our railways are,-and hare been for years, carried on at:a huge loss , . This loss has occurred principally on the SoutTi Island section. The latest figures show approximately that while |the railways m the North Island will make a profit of '£10,000, those in the South will show a loss of about £80,000. This, too, in face of the fact that the North Island has only 1135 miles of railway, against 1574 miles in the South. Without ,in any way being parochial, we certainly are entitled to' discuss this discrepancy. Any business firm with branches all over New Zealand would view with' alarm-a continual annual los,'s from its southern branches. An investigation would speedily follow, and the source of weakness discovered.' "Tha Government, however, instead of acting in this businesslike way, by fostering and strengthening the paying branches, and curtailing the non-pay-ing, proceeds in the opposite way. Last year it appropriated £162,000 more for the South Island railways than for tho North. That is to say, the non-paying section of its systeii], is to be bolstered up, at the expense of. the paying section. Could anything be more manifestly unfair or unbusinesslike? ', "The question to be faced is: Why do the.southern railways show a loss? Is it; because the freight and passenger rates are too low?, According to Air. Vaile they are. -He says:. i Last year, if the. South Island users of onr railways had had to pay. the same' ordinary passenger fares and the samei goods' rates .'.. that, were■oharged in the North, then on the transit-of these two ; items alone they would have had ■■■'■.to pay into'the Treasury,£7l2,299.'-, '; ■' more than they did pay. ■''/■■ ,' j .'.'These., figures are. startling, and, if correct, answer, the .question conclusively.;- - •■. ;' ." '■ '"■ ■ ■ ■-.-■. : ;

"In this connection it will be remembered. that .some time ago tlie grain rates were.'reduced. , ; ' This reduction would cause' a , serious- shrinkage in the revenue returns from the South Island, as the,latter : is the granary, of-the Dominion. ■•".■"'lt' would be,: interesting" to know' what tie actual' .loss was. It might not be out of place also to inquire . why ' passengers can travel moire cheaply in the.South Island than in the : North. 'For example: The distance between' Invereargifl and ■ Bluff is 17 miles, the first-lass return 'fare ;bemg : 2s. 6d. •"• a'ritf' Hastings it is 12 miles, first-class fare being 3s. 2d: In other words, -one can travel 34 'miles in Southland -for 2s. :: 6d'.y while 24' miles 1 in■Ha'wke's'Bay' costs 3s.'. 2d: ; ' Again', the first-class return _fare. from- Dunedin ~ to.' Mosjpel Junction anti back, 20 miles, is Is. 10d., while'from .'Napier; to -Whakatu and back,-. 18 miles, "the faro is 2si" od. Is it any wonder the southern, railway system is not-paying?... . ' •■■■■■■ ..'' 'Nor 4s the : prospect of improvement in the South. 1 a very: rosy one. The. East and West Coast railway, the most, gigantic ..white"elephant conceived, is now being constructed. It cannot possibly pay. 'The only question is hop much will it annually lose? There is no evidence that it will open up any extent of good country; there is no , evidence that the passenger and goods traffic will be sufficient to make it pay; there., is evidence, of ..nothing -but a .tremendous outlay of public money upon which interest must be paid. ■'■■•'■" "It. is worth while noting, when comparing the expenditure on the North and South Island railway systems, that the: Ministry is mainly composed of South,lslanders. The North Island has but one European in the Cabinet who is a member of the Lower House.(the Hon. G. Fowlds) and one Native (the Hon. J. Carroll). It is true we have the Hon. Dr. Findlay, hut he is not responsible to any constituency, and in consequence need not be concerned. On the other hand the South' Island members of the Ministry are not only in the majority,-.but:hold all the important portfolios. There are the Prime Minister (Sir J. G. Ward), the Minister for Railways (the Hon. J. A; Millar), the Minister for Public 'Works (the Hon. R. M'Kenzie), tho Minister for Agriculture (tho Hon. T. Mackenzie), and the Minister for Internal Affairs (the Hon. Mr.. Buddo). ' Yes, it is a South Island. Ministry; This may account for the greater expenditure 1 on-the southern railways. . '.'■■'' "It is time a railways league '■ was formed for the purpose of: securing fair treatment for the North Island."