RAILWAYS FINANCE.

Dominion, Volume 4, Issue 1107, 21 April 1911, Page 4

RAILWAYS FINANCE.

«- Mr. Millar is a very long time making ap his mind to tell the public the results of the country's linaneial working during the year elided March 31 last; but perhaps he is waiting until lie is able to announce the expenditure simultaneously with the revenue. When he is giving the railway returns, we suggest that he might establish a good precedent by giving those particulars for which we usually have to wait for six months, but for which we ought not to need to wait for six weeks. Mere totals are of no value as a guide to the character of the management. They are useful, however, in showing such a broad and simple fact as the relative value of the two islands as railway fields. The Gazelle of April 6 gives the results up to March 4, and these are most instructive. They cover a period of 4S weeks out of the 52 weeks in the year. Tho total net revenue, according to the Department, amounted for that period to £1,100,165, as compared with £957,672 for tho corresponding period of the preceding year (1909-10). Of this total the North Island lines, although vastly the .smaller system, contributed £578,56:!, and the South Island lines £521,002. The revenue per mile of rail was £-503 from the Novth Island and £325 from, the South Island. Tho North Island, as a railway field, is thus 54 per cent better than the South Island. Very instructive too is a table showing tho tendency of the Northern superiority to grow still more great and intense: Net Net revenue, revenue. 1009-10. 1310-11. (18 weeks.) (18 weeks.) Increase. «£ c£ «£ North 578,503 106,052 South 485,102 521,002 ' 3G.510 Already fai 1 in the lead, both relatively and absolutely, the Northern system, despite the fact that the Southern system is almost half as large again,. is > increasing its lead. The percentage increases in the above table are : North, 22 per cent; South, 7'; per cent. When we come to examine the relation of net revenue t) interest on capital (open and unopened lines), we get a result that should make the users of the railways in the North Island do some thinking. Tho capital cost of the Northern system is £13,655,054 and of the Southern system £16,499,494. Net revenue Interest Profit or 48 weeks. 48 weeks. loss. t£ «£ <£ Nbrt'i 578,503 472,674 105,889 profit South 521,002 571,135 49,533 loss The year, it is now apparent, his ended with a loss of about £50,000 on the Southern system and a profit of over £110,000 on the Northern system.