The Dominion. FRIDAY, OCTOBER 18, 1912. THE RAILWAYS DRIFT.

Dominion, Volume 6, Issue 1574, 18 October 1912, Page 4

The Dominion. FRIDAY, OCTOBER 18, 1912. THE RAILWAYS DRIFT.

Foil some years we have printed | a monthly comment- upon the finances of the Working Railways Department, based upon the figures printed in the Gazette every fourth week. During the past two years the figures have shown a bad drift, and the drift, due to past Ministerial neglect, fostering a Departmental looseness and extravagance and incompetence which nothing and nobody can cure quickly, has become very serious, and is doubtless giving the Minister cause for real concern. Last night's Gazette gives the general totals for the four weeks ended September 14, and the twenty-four weeks (ended on the same, date) of the current railways year. We can best show the extent of the drift by comparing the figures for the 24 weeks of the current year with the corresponding period of last year. The North Island lines at this time of year usually have shown a lesser "net" return than the South Island lines, more than making up the leeway in the second half of the year (September 30 to April 1). The net revenues from the two systems for the first 24 weeks of each of the past four years are as under:—

North. South. X ,£ •' 1909 173,429 228,470 1910 238,450 238,2G5 1911 268,534 272,028 . 19)2 ...; 277,701 272,245 It is many months since we began to call attention to the fact that the net return from the Southern lines has become practically stationary, although the capital cost has increased each year, and with it the interest bill. The above table shows how ,the net revfenue of the smaller and less costly Northern system has gradually in the disadvantageous half of the year, the net revenue from the Southern lines. The year will end, as usual, with a much larger' net return from the North than from the South. There is to be noticed, however, a check in the rate of the North Island advance in net returns. This, when coupled with the sagging condition of the finances of the Southern system, is a very disturbing fact. For the whole railways system the net returns for the 24 weeks ,ended September 14 last are only £9000 odd greater than for the corresponding period in 1911. ,The corresponding increases in the two preceding years were £03,847 and £74,816 respectively. Those increases did not really meet the growth of the interest bill. | The increase of £9000 faljs lamentably short of meeting the growth of the interest consequent on the growth of the capital investments. All of which means that with half the year gone there is, as we anticipated there would be, plenty, of evidence that at the end of the year the position will be a bad one. If there is any special circumstance which cap explain or excuse the obvious drift to tho bad of the railway finances, it ought to be forthcoming. Mr. Heriues's legacy is not a bit better, in its way, than the legacy left to Mr. Allen, Minister of Finance. Both are bad. Neither can be got rid of in a hurry. But it is easier to cure the mismanagement of the railways than the mismanagement of tho general national finances. The railways position is simply this: that every month, every week, every day that passes is. increasing the burden of accumulated loss borne by the taxpayer. Reform is very urgent. There is comfort, of course, m the fact that the old Government has gone, and with it the old unwillingness to check the railways drift; but positive reform cannot come a day too soon. The real losses on tho railways, under strict accounting, have in recent years, as we have often shown, amounted to many thousands a year. Whatever they are due to, they must be ended.