THE RAILWAYS YEAR.

Dominion, Volume 4, Issue 1124, 11 May 1911, Page 4

THE RAILWAYS YEAR.

The gentlemen who supply the Hon. J. A. Millar with the material for his statements upon the railways finances have their limitations, although they manage to cover up a good many things in a clumsy fashion. _ Mk. Millar, of course, knows nothing of railroading, and has some very queer ideas even on die nontechnical principles of policy that should guide the administration of the system. He has good intentions, of course, and wishes to make ■ the railways pay. Unfortunately his principal officials can do as they please with such an inexperienced head, and appear able to make him say and believe almost anything they please. Wo have not the smallest doubt that the Minister really thinks it is true, as he stated in his Dunedin speech, that the genuine return from the system after paying expenses and interest amounted to £•1 Js. 3d. per cent on capital for the year 1910-11, and that the year has been satisfactory. We - showed last year that the apparent improvement in the results in 1909-10 was obtained by various devices (which we exposed in detail) that amounted to "tricky book-keeping, increased fares, and unsound railroading," and our criticism was never shaken. When the Railway Statement appears, with its detailed tables, it will bo made apparent, we have not the least doubt, that exactly the same devices have again been resorted to.

The following table contains the results of the year's working, as given by Mn. Millar, together with the 1909-10 totals:

ExpenKeceipts. dihire. Balance. «C =£ C 1909-10 3,219,7!)0 2,109,471 1,080,316 1910-U 3,191,182 2,303,272 1,100,910 Increases ... 211,392 133,802 110,600 The balance of £1,190,910, he says, is £'1 is. 3d. per cent on capital, a statement which, coupled with his further statement that this is an improvement of ss. 3d. per cent, means that he estimates the capital cost of opened lines at £29,311,707. But the total capital sunk is well over £31,000,000. The real "return per cent on capital" is therefore about £3 16s. per cent. But how Tias this result been achieved? Partly, no doubt, by another failure Lo do that amount of relaying which has for years been vainly recommended by the engineer. How little attention Mb. Millar gives to the recommendations of those officers who do know their business may be inferred from his quaint announcement, by way of preface to a promise to reduce grades, that "when in-Australia he noticed that grades snd curves had been reduced." Could anything be more fatuous? The reducing of grades and curves was urgently recommended by the engineering branch years ago. Mr. Millar seems to think it is a new idea! We arc given no particulars of how the increase of revenue was made up, but the greater part of it, of course, came from the increased fares that Mb. Millar, in defiance of his own and Sir Joseph Ward's many statements upon the 'evil of increasing rates, was not long in introducing. Estimated by the Government to take an extra £176,000 out of the pockets of the travelling public, it is well known that the higher tariff has much exceeded expectations. It is only by higher taxation and a reduced rate of maintenance that a leally bad result is covered up.

A further examination of this point may be deferred until .we get some fuller particulars from the Gazelle this week, which will also enable us to see how much has been taken from the railway-users in the North Island for the benefit of the people in the South Island. In the meantime it is worth noting that the Minister says that "any surplus over the railways he intended to return in reductions and improved conditions and wages for employees." Mr. Millar once said, emending Sir Joseph Ward's alleged policy of returning everything over 3 per cent,, that he would return everything over 3i per cent to the public. But what did he do in 1909? He raised the fares. Comment is unnecessary upon the fact, which speaks for itself, that he waits until election year to promise benefits to the public and to the discontented railway employees. It may bo suggested to Mr. Millar that if he his any real desire to "hand back to the public" any of the "profits," he might see his way to reduce fares and freights in " the North Island so as lo produce the same return per cent as he seems to think is a proper return in the South Island. It is a great misfortune that we have not a railroad expert in charge of the system, for his first discovery would bo the incompetence of those officials who, instead of endeavouring to improve the management, concentrate their energies instead upon issuing .statements to the Minister that, hide from the public the, real condition of the great enterprise in which we are j all shareholder;.