STATE RAILWAYS.

Dominion, Volume 6, Issue 1864, 25 September 1913, Page 4

STATE RAILWAYS.

A GOOD YEAB.

EARNINGS ALMOST A RECORD.

WpRKING EXPENSES.

THE INCREASE EXPLAINED.

PROSPEROUS OUTLOOK,

The; Railways Statement for-tho year ended March 31, 1913, was laid upon tho table'of ,tho House of Representatives yesterday. In its opening parar graph tho Minister for 'Railways (tho Hon. 'H. Herries) announcos thai; the result of .tho'year.'S operations has been satisfactory. . Tho. revenuo has maintained tho buoyancy that has characterised it duriug recent years, and tho actual earnings-havo exceeded the estimate by £226,002, and tho earnings of tho preceding year by £294,493. Tho results may bo summarised thus: — " Year 1913. Year 1912. ; v ■£ . £ Total earnings... 3,971,002 3,876,509 Total expenditure 2,7.05,609 2,465,896 v' Net profit on . working ... 1,265,893 1,210,618 Mileage and Extensions. . ' The miloage of lino opeir for trhfflo on March 31, 1913, was.'" 2860 •miles, as : against 2808 miles the year. Tho average miles operated during tho year was 2840 ;miles. . " The :fo!lo\ving extensions were opened during thayear:—' • 51. ch. Westporfc-Te Kuha 5 61 Waikohu-Otoko 7 79 Te Wera-Poliokura 8 51 Mina-Parnassus' 8 51 . Kiwi-Glonhopo 12 45, Te Hana-Kaiwaka -8 67: ■ • ■ v: '' ■■ 52 34 The capital cost .of lines open'for. traffic,'including plant, and steamer's on Lake ; Wakatipu, has increased from £30,506J089 to £31,611,220. ■ I Tholnet revenuo (£1,265,393) is equal 'to a return,of, 4.04 per cent. on' tho capital ; ; invested in the open lines, and 3.74 per cent, on the. capital (£33,831,783) invested,.in opened and unopenod linos. ; ( Tho number of train miles run during the year wag 9,016,224, being an inoreaso of 644,537. ; Tho increased train mileage represents additional facilities to meet the requirements of tlio business and public convenience, and has cost over £193,000. . ' The addition: made the -train ser- . vices in the North Island account for 499,951 miles, and in the South Island services for 107,376 piles. •. Lato ArHvals. The following,figures,, which give tho record of .the late arrival of the principal / trains: 'iduriiijj the year, indicate that, notwithstanding various alterations made in the strain services and tho diffioultiesjenbountered'in'- -.connection with'aud floods,- slips, and other unfo^eeii : .ahd •unavoidable circumstances, the trains as a wUolo have maintained punctuality. . Average Late Arrival. ■: ,r ( . Min- : , Min. : For long-dlstan'co ' ; ' passengor ■" trains > .•.. 1.67 against 2.23 last y'r. For suburban , trains ..... 0.56 against 0.521a5t y'r. For long-distance '." ~ mixed trains 2.58 against 2.99 last y'r. Passenger. Traffio. -

The passenger traffic for tho year Increased very materially, the number actually carried being 13,123,879, an increase of 1,232,745 over the previous year. Season tickets issued number 265,259, an increaso of 28,302. _ Tho number of workers' twelve-trip tickets issued was 53,697, and of workers' weekly tickets over suburban lines 148,954, an increaso of 4621 twelve-trip and 19,430 workers' weekly tickets over the,previous year. Holiday excursion tickets issued numbered 964,695, an increase of 124,222 on •the traffic of tho.previous year; school, factory, and friendly societies' excursions numbered 133,897, a decrease of 928 on last' year's figures. Tho coaching traffic shows substantial increases under each of the headings under which the traffic is grouped. The increases are: Parcels, 129,966; horses, 1461; carriages, 103 j dOgs, 1232. In the goods and live stock traffic tho increases are: Drays, 285; cattlo and calves, 14,049 head; chaff, lime, etc., 21,528 tons; wool, 6128 tons; firewoodj 1636 tons; grain, 232,343 tohs; merchandise, 34,768 tons; minerals, 84,200 tons. Effect of Meat Strike, Thore were decreases in—sheop, 65,638 head ; pigs, 11,138 headj and timber, 23,353 tons. - Tho principal factor In connection witH the decrease in slioep traffio was tho labour trouble with the slaughtermen. This restricted the operations of tho various freezing companies to a very considerable extent, as shown by tho'falling-off of 272,000; head of sheep in tho* Wellington* Picton; and Inverca'rgill districts. In other districts the sheep business shows nii advance on that of. the previous year, Tho decrease, in the - numoer of pigs was caused-through a drop'in tho number raised:by dairy farmers, there being' more inducement for farmers to rear calves than pigs. The heavy drop in the timber traffic is chiefly in tho Westland and.CJu'istclmrch districts,.-and'is ascribed to tho financial stringency on tho West Coast causing: a: material decrease in .the export of timber to Canterbury ports'. : '

The Employees. Tho average nuipber of men employed on the' railways during the'year Was 14,213, against 13,523 for tlio previous year,..." ... ' ' During ..tho year 13 members of tho Second Division were promoted to the First Division; 462 members of tlio permanent staff resigned, 98 rotired on superannuation, 42 died,. 97. wero dismisses!,, and 1209 wero engaged. The'-sum of- £12,616 was paid* during the year under the Workers' Compensation, for' Accidents Act. ll Rolling Stock. Tho'rolling stock was augmented by the addition of twenty now engines.' Of tins number thirteen, comprising five largo tender engines, Class Ba, and eight.-heavy tank engines, Class Wg, were 'built, jn. tho Govornment railway workshops. Seven Class Ad 72-ton fourcylinder balanced compound tender en-gines-were completed under tho contract'with" Messrs. A. and G. Price, Ltd.,.of Thames. Thoro were 77 new bogie cars, five bogie' brake-vans, 1032 wagons, and 1267 -tarpaulins turned out of the railway workshops during tho year.In all 2182 modern steel axles were placed. under / cars, brake-vans, and wagons in substitution of the old iron jxles. The effect of this alteration is to increaso tho carrying capacity of sacli wagon by two tons, while giving greater stability .to tho wagon. Tho quantity of l'intsch gas manufactured at' tho railway gasworks was 9,994,930 cubio feet. On tho sections not provided with l'intsch gas the cars are lighted with acetylene gas, and praotioallji all the cars on tno small

sections aro now equipped with this system of lighting. I Track Improvement. During tho year 104J miles of track were refold; 83J miles of main lino with 701b. rails, 20 miles of branch lino with 531b. rails removed from main lines; and three-quarters of a mile of branch lino with now 651b. steel material. Ballast to tho extent of 290,000 cubic yards and 235,378 sleepers were put into tho track during tho year. Difficulties experienced by shipowners in .respect to labour prevented tho Department from getting delivery of sleepers contracted for, and this materially retarded relaying operations. Station Buildings. A considerable number of improvements have been carried out at various stations connected with tho railway system throughout the Dominion. They consist of increased accommodation at stations, additions to station_ buildings, erection of verandahs, extension of sidings. provision of water-services and stock-yards, social halls for staff, erection of turntables, cranes, bouses for staff, improved lighting at stations, workshops, strengthening bridges, sanitary conveniences, fire-provontion services, and many other works too numerous to particularise. Tho programme now in hand comprises works that are intended to givo increased facilities for meeting the public requirements and at the same time enable the Department to carry on its operations satisfactorily.

Signalling Apparatus. The signal and interlocking systems have been brought into operation dur- ■ ing tho year at Goro, Abbot's Creek, Black Jack's Point, Fendalton tramway crossing, Paeroa, Pokeno gradeeasement crossing, Otahuhu, and Westfield. Tho interlockiing has also been added to and rearranged at Abbotsford, Ohristcliurch, Pukerua; Thomdon, Taihape, and Remuern, Eighty-two electric- tablet instruments and'"lls miles of line havo been- brought into operation on tho sections Waipukurau-Napier, Grey-mouth-Dunollie, Henderson-Kaukapa-kapa, Morrinsville-Putaruru; and Waikumeto, Pok'ako, Kahahi, Porewa, Marakeke, Okahukura, Linton ballast-pit havo also been installedas tablet stations. Automatic tablot exchanges were fit- ' tod at. twonty-seven additional sta- ' tions. ' '■ . ■ Tho electric lock-and-block' system for-double-dine' working was brought into operation between Abbotsford and Abbot's Creek. Thirteen additional stations were. equipped with fixed semaphore signals, and the telegraph and : telephone- system increased Dy 493 . niiles/of wire. • - . Ono thousand five hundred and four miles Vof line (ire now controlled by tho electrio tablet system, 39J miles of double track by the electric lock-and-block system. - Tho_ railway telegraph and telephone facilities now comprise 2295 miles of poles and 6133 miles of wire. The expenditure on the various adjuncts to safety since 1901 has amounted to no less than £301,051. Tho whole of tho railway appliances and equipment, comprising rollingstock, macninery, track, bridges, buildings, and other structures, have been maintained in atj efficient and satisfactory condition. Details of Revenue. , Tho gross- revenue for the year amounted to £3,971,002. It exceeded the estimate by £226,002 and,-tho gross revenue 'for ''the'" preceding year ' : by £294,493,-; ~ .. : ..." Passenger revenue showsan increase of £128,614; season tickets, £14,244: coaching traffic, £11,875; goods and live-stock, £124,902; miscellaneous, rents and commission, £14,958. The receipts per train-mile' from the North Island- main lino and branches amounted to Bs. ljd., against Bs. 4d. for the previous year, a decline of 2jd. per train-mile in gross receipts. The net revenue per, train-mile was 2s. 7.30 d., against 2s. 10-76 d. last year, a decline of 3.46 d. From the South Island main lino and branches the gross receipts per train-mile, were 9s: 23d., 1 against Bs. 9}d. for tho previous year, an advance of s}d. per train-mile in gross receipts. , The net receipts per train-mile advanced by 3.05 d. For all lines the gross receipts were Bs. 9Jd., as against Bs. 9Jd. for last year, an increase of 0.25 d. per tram-mile. The not earnings amounted- to £446 per mile for the average number of miles open, and gave a -return of 4.04 per cent, on the capital cost. This return is the highest but one ever earned by our railways. The earnings of the Lake Walratipu steamers amounted to £7021, as against £6669 last year. Expenditure. _ The expenditure for the year, including the sum of £6618 incurred in connection. with- the Lake Wn.katipu steamers, amounted to £2,705,609, an increase. of £239,713 over tho previous year, arid absorbed-68.13 per cent, of tho revenue,_ as against 67.07 per cent, for the previous year. , Per cent. Expenditure of revenue. 1912-13.1911-12. m-15.1911-12. £ £ ' Traffic 763.937 670,632 19.40 18.27 Locomotive 1,059,292 962,482 26.71 ■ 25 96 .Maintenance ... 765,8f0 735,546 19 32 20.04 Management ... 104,902 101,239 2.64 2.76 , 2,698,991 2,459,899 63.09 67.03 Lake TVakatipu steamers 6.618 5,997 0.04 0.54 . .. 2,705,609 2,465,896 68.13 67.07 Tlio increased expenditure in the traffic branch is duo to the additional train-mileage, increases in salaries, and wages of tho staff, extension of tablot system, and extra staff required to carry on the increasing business and operate the safety appliancos installed. i Ini tho'locomotivo branch the increase' is duo te tho oxtra train-mileage, additional staff to meet requirements of the .business, advances in salaries ! and wages, and tho prices paid for fuel, stores, and material. Tho increaso in the cost of head and departmental offices is incidental to the inclusion in the Head Office vote of items that have previously been charged under the sectional heading, and to scale increases of salaries undo? the Classification. Act. ,

, Tho cost of maintenance of lines, buildings, structures, safety appliances, etc.,_ has .increased from £735,546 to £765,860, representing an averago of £270.61, against £263.46 per mile of railway for the previous year. _ The increased expenditure has been incurred on tho Whangarei-'Kawakawa section, £187; Gisborne, £1579: North Island main lino and branches, £27,414; South Island' main lino and branches, £3099; Westland, £1091; Pieton, £91. Tlio cost of maintenance has decreased on tho Kaihu section, £144; Westport, £1315: Nelson. £1688. In this branch also tho principal increase has resisted from advance in tho wages of tho staff. and' tho price of materials. Additions and improvements to lines, structures, rolling stock, etc., costing £50,319. which misrht reasonably linvo been debited to capital, have been mado during tho year and charged to working expenses.

Tho sum of £444,101 was expended under the. head "Additions to open lines," and' charged to Capital Account. Of this amount £279,524 was expended on rolling stock, tarpaulins, pneumatic coaling cranes, 'Westinghouse 'brake, Pintsch gas, steam heating-gear, (footwarmers, workshop machinery, mid steamer for Lake Vnkntipu service. Tiio rolling stock in respect to which tho charges were nindo consists of 20 locomotives, 71 carriages. 4 brako-vans, 40 bo"io and 927 four-wheeled wagons, and 1267 tarpaulins, completed on March 31, 1914; ami 44 locomotives, 99 carriages, 26 113 bogi" and 1438 four-wheeled wagons, and

I 2025 tarpaulins incomplete but in hand on that date.

Tlio sum of £16-1,577 was Bpent in additions to station buildings, extension of station-yards and. siding accomodation, water service, additional dwellings, purchase and reclamation of land, auditions to workshops, cranes, weighbridges, turntables, stoiio-crusher, bridgowork and subways, fire-prevention services, wharves, gasworks, extension of signal and interlocking system, tablet-installation, telegraph and telephone facilities, duplication of line, reduction in grades, and improvement of curves, ctc. Referring to tho duplication of lines, the report says:—"The expenditure under the Railways Improvements' Authorisation Act, 1904 —Dunediiv-Mos-giel duplication and deviation: of lino was £29,253 13s. 3d."

WORKINC RESULTS. A COMPARATIVE STATEMENT. Tho following is a summary of results of working, for year ending March 31, 1913, as compared with 1912: — Ye.it ended March 31, Particulars. 1912. 1913. Total miles open for traffic 2,808 2,860 Average miles open for year . 2,801 2,810 Capital cost of opened and unopened lines £32,689,179 .£33,831,783 Capital cost' of open lines ... -£31,611,220 Capital coet per mile of opett linos <210,864 ' <611,053 Gross earnings ... <63,676,509 <£3,971,003 Working expenses <62,465,896 J!2,705,609 Net profit on working <81,210,613 <£1,265,393 Percentage of profit to capital invested 8.98 4.01 Percentage of work-. ing expenses to' earnings 67.07 68.13 Earnings per average mile open <£1,311 ,£1,400 Working expenses per average mile open <£881 <£954 Net earnings per average mile open. <£433 <£446 d. d. Earnings per train mile 105.25 105.50 Working expenses . per train mile 70.52 71.84 Net earnings per train miie 34.73 33.66 Passengers, ordinary 11,891,134 13,123,879 Season tickets ... 236,957 265,259 Goods tonnage ... 5,599,756 5,957,005 Live stock tonnage 288,152 289,123 Train mileage ... 8,371,687 9,016,224 Locomotives 493 _513 Passenger cars ... 1,212 1,232 Wagons andbrake- < vans 18,521 19,515 References in tho statement to the Hutt Road, motor trams, and other matters, will be found elsewhere in this issue. Progress of Improvements. "Considerable progress has been made in connection with grade improvements in tho North Island. On tho Main Trunk line the improvements between Buckland and Tuakau, and at Pukelcohe, have been completed, and a commencement made at easing grades between Tuakau and Pokeno. On the Wanganui-Now Plymouth lino tho earthworks for the Manawapou Viaduct improvement are finished as far a3 practicable ponding completion of tho viaduct, construction of which is in hand. The reclamation of land in Mechanics Bay, Auckland, is in hand, and the sum of £11,089 was paid to tho Auckland Harbour Board for reclamation carried out by tlio board under agreement with tlio Railway Department. New Locomotives. , ■ "Messrs. Price (Limited)' delivered during tho year seven Ad locomotives constructed by them under contract, and have still to construct thirteen en : gines of tho same type under existing contract. , "Tho rolling-stock under conatruction in the railway workshops on March 31 consisted of 10 Class X 94-ton fourcylinder balanced compound, 1 Class Ba goods engine, and 20 Class We tank engines. The improvements and additions made to tlje rolling-stock during the past eighteen years have increased the tractive power by 259 per cent., seating-capacity by 208 per cent., wagon-capacity by 212 per cent. During tho same period the rolling-stock equipment has .been increased by 244 locomotives, 734 cars, 181 brake-vans, 1053 sheep-trucks, 9813 goods-wagons. "Special and sustained efforts aro made to build rolling-stock with dispatch, so as to keep pace with the demands of the existing and prospoctive traffic. Tho programme for 1913-14 comprises 65 bogie cars, 19 bogie brakevans, 68 bogie wagons, 522 four-wheeled wagons. The total rolling-stock actually under ■ order at the present time comprises 44 locomotives, 108 cars, 27 brake-vans, 113 bogio wagons, and 1475 four-wheeled wagons. New Regulations.' During last session an Act amending tho schodulo to the Government railway classification was passed. I havo since further reviewed the matter, and in accordance with tho intimation given to, tho representations of the Railway , staff last year propose to ask Parliament to further amend the schedule. . Tlio regulations under the Act have also beeu carefully considered and re- / vised to bring them moro closely into lino with the regulations applicable to other branches of the Public Service, so far as leave of' absenco and travelling ' allowances are concerned. Tho amended regulations will be gazetted shortly, and in addition to other improvements will contain provision for tho issues of a privilego ticket to a. superannuated member of-the railway service and his wife once a month.

Opportunities for Promotion. The regulations also' contain provisions under which members of the Second Division may qualify for transfer to the First Division if they elect to attend at stations in their own time or to utilise the opportunities that may be afforded tliem at other periods to acquire a knowledge of accounting and other dutios appertaining to the First Division. I trust members of the Second Division will ta.ke advantage of tho regulation which lias been made, with a view to giving greater scope for their advancement to positions in the First Division, it being fully recognised that men who have had practical'experience in tho Second Division and subsequently qualify themselves for promotion are as a rule decided i acquisitions to the First Division.

Increased Outlay Explained. "During the year," tho Minister continues, "I liavo mado investigation into tho causes that are responsible for tho percentage of working expenses to earnings being so high, and find that tho factors which in the main conduco to bring about the position are increased wages and shortening tlio hours of tho staff, increasing train services by running trains for experimental development,' many of which are unremunerativc, opening of new sections of railway in undeveloped country whero business is necessarily very restricted and unprofitable, additional staff, necessitated by tho expansion of interlocking and safety appliances, which has resulted in a large proportion of what wero unattended flag stations boing converted into tablet stations, many of which ure doublo-manned on account of'long hours. Tho more extended hours trains are now running on the Main Trunk systems also necessitates increased staff. Tho rates paid for fuel, stores, and materials of every description used by the Railway Department have advanced in sympathy with tho improvement that has taken place in working conditions and wages in foreign countries P.nd foreign and local industries.

My research into this aspect of tho railway quostion lias revealed tho fact that New Zealand is by no means singular in respect to tho advance of percentage of operating expenses to earnings. Every largo railway system shows the same upward tendency following on their general advance of wages and shortening of tho hours of staff, tho increaso in prico of coal and other materials, moro lavish train services without increasing tho tariff to bring in additional royonue, to correspond with the advanco in expenditure.

A Comparison. A comparison of tho percentage of working exponses in tho railways of other Australian States, as shown in Table 10, if compared with the similar table of last year, will show that the working expenses of all of these railways have increased with the exception of Tasmania, and in most cases the increases have been greater than those in New Zealand. New South Wales, for instanco, increased from 61.09 in 1911 to 64.23 in 1912, and the latest report of tho Commissioner gives tho percentage as 68.82 in 1913. In other countries the same conditions occur, and the New Zealand percentage, though higher than I would like to seo it, is not higher than that obtaining in other parts of the world. In tho Canadian railways, for instance, the percentago for 1912 was 68.7, and in tho United States railways 69.93, as against Now Zealand 68.13.

No Cause for Misgiving. The running of trains in excess of the immediate requirements for the purpose of developing tho country and inducing settloment, thus creating a traffic that will ultimately be remunerative, is sound in principle as a business proposition. So long, therefore, as the close scrutiny that has in tho past been kept on this and all other items of railway expenditure continues I am satisfied the oest results will follow, and an advanco in the rates of expenditure to earnings need be no cause for misgiving in so far as railway operations aro concerned. North and South Islands. The effect increased train mileage has on the financial results of working the railways is illustrated by the following figures relating to the North and South Island main linos and branches respectively. _ Tho North Island train ■mileage was increased by 499,951 miles during tho year, and tho South Island main lines by 107,376 miles. The earnings per train milo in the North Island declined from Bs. 4d. last year to Bs. lijd., a decrease of 2}d. por train milo, indicating that train services were in advanco of the traffic. Tho earnings of tho South Island lines advancod from Bs. 9Jd. te 9s. 23d., an increaso of 5Jd. per , train milo, indicating that traffio had more than kept pace with the increased train services. Tlio interest on capital earned by tho North Island main lino and branches receded from £4 19s. 7d. por cent, te £4 17s. sd. per cent., while that earned by tlio South Island main lino and branches advanced from £3 2s. per cent, to £3 Bs. per cent. Service Superannuation. The accumulated balanco to the credit of the Government Railways Superannuation Fund at March 31 amounted to £264,455, an increaso of £30,998 on tho previous year. Tho total income for the year was £102,951, and the amount outgoing was £71,953. Of the latter tho sum of £61,783 represented tho chargo involved in payment to 1261 boneficiaries, comprising 807 members of; the Service who havo either voluntarily resigned or who havo been retired on account of being medically unfit, 179 widows and 275 children dependents of deceased members of the Servico who had not retired on superannuation at the timo of tlieir death. Comparison of Traffic. The following statement shows a brief comparison of the traffio antj tho roll-ing-stock for dealing therewith when the Government resumed control of the railways in 1895 with that at March 31 of tho present year Per cent. March March of • 31, 31, in--1895. 1913. crease. Passengers (number) 3,903,578 13,123,879 236 Season tickets „ 28,623 205,259 820 Parcels „ 441,981 1,320,873 197 Horses „ 11,185 21,971 98 Carriages „ 750 2,904 287 Dogs „ 23,517 57,388 lit Drays „ 705 3,159 352 Cattle „ 40.890 221,595 412 Sheep „ 1,519,921 5,388,805 255 Pigs „ - 43,292 136,130 214 Chaff, lirao (tons) 36,972 213,322 497 Wool „ 103,328 147,735 43 Firewood „ ai,102 112,072 32 Timber „ , 198,578 095,0(50 250 Grain < „ 388,556 1,181.899 204 Merchandise 377.938 ' 845,934 124 Minerals „ 857,917 2,760,983 222 Total tonnage ... 2,048.391 5,957,005 191 Total Tevenue ... .£1,150,851 971,002 24-5 Iyocomntives (number) 269 513 91 Locomotives tractive power (lb.) 6,317,810 259 Passenuer-cais (number) ;. 498 1,282 158 Passenger-cars, anting accommoda- . tion 17,455 53,819 208 Brake-vans (number) 204 385 88 Sheep-wagoM (number) 390 1,413 270 Total wagons, all classes (number) -8,264 19,130 131 Wagon carrying capacity (tons) 50.801 158.447 ?12 Train mileage run 3,221.620 9,016,224 180 A Bright Outlook

"Having given careful consideration to the general circumstances of the Dominion." the Minister concludes, "as reflected bv tho railway traffic, I feel confident of continued.prosperity during tho next financial year, and estimate the revenue for the year ending March 31, 1914, at £4,200.000. and the expenditure at £2,931,250."