The Dominion. MONDAY, AUGUST 1, 1910. RAILWAYS WITHOUT POLITICS

Dominion, Volume 3, Issue 883, 1 August 1910, Page 6

The Dominion. MONDAY, AUGUST 1, 1910. RAILWAYS WITHOUT POLITICS

It seems almost a pity that the Hon. J. A. Millar, as Minister for Eailways, has been unable to extend his survey of railways outside New Zealand,,beyond some of the Australian States. For we presume, by his reticence on the subject, that Mr. Millar is not closely conversant with railway systems other than" those of Australia and Now Zealand. There are others, however, well worthy of consideration, though probably 'inconvenient as subjects of reference- and comparison. For example, Mr. Millar might do many worse things than, in the seclusion of his. closet, study the latest issued report, of tho Contral South African Eailways. The outstanding features of the Central South African Railways are: (a) That they havo been free from Ministerial and political influence; (b) that they, have been the means of lowering the rates of the Govern-ment-controlled railways; and (c) that during the year which ended in December last their' profits, after discharging working expenses, gave a return upon capital of something like £12 13s. per cent. Sir Joseph Ward's "political 3 per cent, limit" appears rather insignificant .compared with figures such as these. It is interesting to learn that the last Government of Cape Colony looked altogether askance at a return of 3 per cent., classifying lines which yielded such returns as unpayable. The Cape Times of May 27 sets forth that, the previous day, a deputation waited upon the Commissioner of Public Works—Mr. J. W. Satjer, how Union Minister for Railways and Harbours—asking that improved conveyance and travelling facilities be extended to the Calcdon line. Mr. Sauer, says the report, "was sympathetic, but reminded the deputation that even' with the present service the Calcdon line paid only 3 per cent. However, if tho receipts continued to improve, it might be.that the Calcdon people would obtain increased travelling facilities." . . ;

The Central South African Railways included the railway systems of the Transvaal and '■' the. Orange Freo State. At the conclusion of the war an Intercolonial Council was established to advise the High Commissioner and Governors on the financial _ administration of the railways, police, and other subjects common to the two ex-Re-publics. The Council, with Lord Milnek at its head, unnecessary to say, was-absolutely,outside the pale of all degrees and varieties of politics. Sir Percy Girouard, now Governor of British East Africa, was Railway Commissioner. ' With the beginning of. his administration carao an era of reform. The two systems remained directly .under the Intercolonial Council until May, 1908,-when they were placed under'a joint Railway Board of five members, three from.the Transvaal and two from the Orange River Colony— now Orange Free State—appointed by the respective-Governments. The Board was freed from the wants and the wiles of the politician, Yearly it prepared its own Budget, which went before the two Parliaments, but did not require the sanction- of either. Sir T. R;;"Price'was;general manager,- and; it is'his report 1 that, at the present moment, is so singularly interesting to' New Zealand. The earnings of the Central South African Railways during the calendar year 1909 amounted to .£5,064,421, and the expenditure (exclusive of renewals) to £1,778,818, leaving a surplus' of £3,285,603. These totals, as stated, represent a return upon capital, after deducting working expenses, of about £12'135. per cent, and this, - when thrown into the common stock with tbe other systems of South Africa, enables a return upon capital expenditure to be shown of over £7 per cent. "This result," says the Gape Ttmes,. "has been achieved in spite of heavy reductions in rates effected since 1903, and is attributable to the enormous growth of all classes of traffic during the past twelve months, and, secondarily, to the remarkable reductions effected in working expenditure" Tho ratio of expenses to earnings on the Central South African Railways has always been far below the ratio of ■he neighbouring politically-con-trolled railways. A striking illustration of the benefits of non-political railways, compared with political, is presented by South Africa. The non-political Central South African Railways has reduced not only the cost of freight and the fares of passengers, but also, and in the most signal manner, the grand totals of expenditure. Thus, last year, in the adjoining Cape Colony, whose railways until the advent of union were under the sole jurisdiction of tho Government, tho ratio of expenses to earnings was 66 .per cent., while the ratio on the Central South African Railways, under the l administration of a Railway Board, was, for the same period, 110.l per cent., or not much more than half. We are not, on this occasion, entering upon any analysis of South. Africa's railway statistics by way of comparing them with New Zealand's high revenues and excessive working expenses. Our chief object 'is again to emphasise tho urgent need that exists for the Dominion railways being freed from political pressure and run on business lines in' the interests of everyone. In South Africa to-day the railway systems of the four united colonies have been vested in the Union and are controlled and managed by a Board consisting of three Commissioners and the Minister for Railways, who is President of the Board. "The railways, ports, and harbours of the Union," declares _the Constitution, "shall be administered on business principles due regard -being had to agricultural and industrial development within tho Union, and the promotion, by means of cheap transport, or the settlement of an agricultural and industrial population in the inland portions of the Union." Tho Commissioners arc appointed by the Govcrnor-Gonoral-in-Council, hold office for live years, and cannot be dismissed before the end of that period, except by the Govornor-Gon-oral-in-Council. They are thus independent alike of members and of' Ministries. All proposals for the construction of new railways have to be submitted to the Board which then advises Parliament. Should Parliament decide to build a line against the expressed opinion of the Board, Parliament must specifically provide for whatever shortage of revenue may accrue. The authority of the Board remains thus, practically, supreme.