THE RAILWAYS

Dominion, Volume 9, Issue 2834, 27 July 1916, Page 6

THE RAILWAYS

ANNUAL STATEMENT

BIG INCREASE IN PROFIT RETURN ON CAPITAL 4.72 PER CENT. The annual Railways Statement was presented to Parliament yesterday by the Hon. W. H. Hemes (Minister of Railways). The Statement is in many respects noteworthy, the most important feature in it being the sharp rise shown in the earnings of the railways and in the percentage of profit made. Following is the text of the Statement:— In presenting the Railways Statement for the year ended March 31, 1916, I have pleasure in announcing that, notwithstanding the exceptional circumstances, existing throughout the whole year, the gross receipts. amounted to JH,515,356, and exceeded the earnings for the previous year by .£412,899. The following gives a summary of the results:— Year 1916. Tear 1915. £ £ Total earnings 1548,356 4,105,457 I Total expenditure ... 2,910,883 2,920,<55 Net profit on working .'. J51,G37,173 0C1.185,002 The mileage of lines open for traffic on March 31 was 2970. The extensions opened during the year totalled 15 miles 30 chains. The capital cost of all lines open for traffic, including the steamers and plant on Lake Wakatipu, advanced from to «C 31,857,852. Revenue and Expenditure, The net revenue amounted to .£1,1>37.473, and is equal to a return of 4.72 on tho capital invested on the lines open for traffic and 4.39 on the capital (A' 37,335,0S0) invested on tho opened and unopened lines. Tho gross revenue (Xi,515,350) exceeded tho earning for tho previous year by .£442,899 and tho estimated revenue by ,£518,356. The gross receipts per train milo from the North Island main line and branches 'were 112.25 d., against 96.75 d. last year, an increase of 15.50 d. The South Island main line and branches produced a gross revenue of 117.25 d. per train mile, against 110.5 M. last year, an increase of 6.75 d. per train mile. The gross earnings per train milo from all lines amounted to 116.5'0d., against 10475(1. for, th/s previous year, an advance of 11.75 d. The cxpenditu.ro for the year (,£2,910,883) was .£9572 less than- the preceding year, and -£9117 less than tho estimated amount. The percentage of expenses to earnings was 61 per cent., against 71.14 per cent, last year, a decrease of 7.14 per cent

The sum of J5389,995 was expended under the bead of "Additions to open lines" in providing additional rolling stock, workshops machinery, car lighting, and Westinghouse brake, telegraph and telopbonc and tablet facilities,-duplica-tion of lines, purchase of land, etc.

/During the year ;t5 new locomotives, 53 carriages, 28 brake-vaus, 00 bogie and 653 four-wheeled wagons were completed and put into traffic, and 52 locomotives, 36 carriages, 3 brake-vans, 148 bogie and 613 four-wheeled wagons were on order on 'March 31. Results of Working. Tho following is a summary of results of working, for year ending March 31, 1916, as compared with 1915:— Year ended March 31. 1015. 1016. Total miles open for / / traffic :•. 2,055 , 2,070 Average miles open ; for year 2,917 2,959 Capital cost of opened and unopened lines £36,133,155 .£37,335,080 Capital cost of open lines £31, 133,825 £31,857,883 Capital cost per mile of opcu lines • £11;551 £11,737Uross earnings £1,105,457 £4,518,356 Working expenses ,£2,920,455 £2,910,883 Net profit on working £1,185,002 £1,637,473 Percentage of profit to capital invested 3.53 1.72 Percentage of working expenses to earnings 71.1t 64.0Q Earnings per averago milo open, £1,410 ■ £1,510 Working expenses per average mile open £1,002 £355 Net earnings per av- ■ erago mile open... £408 £555 Earnings per train milo 101.75 d. 116.50d-. Working expenses per train-milo ... 74.54 d. 74.50(1. Net earnings per , train-milo 30.2U1. , 42.00(1. Passengers, ordinary 13,505,772 14,201,500 Season tickets 302,912 330,622 Goods 'tonnage 6,075,282 5,960,562 Live-stock tonnage... 378,190 410,383 Train-mileago 9,383,420 9,350,522 Locomotives ' 557 585 Passengor-cars 1,397 1,452 Wagons and brakevans 21,226 . 21,994 In September last a war impost was made of Id. in each shilling on ordinary passenger-fares, and 10 per cent,.on the. rates for parcels and goods traffic (except timber). It is estimated that tho revenue from 'this source up to March 31 amounted to £220,000. Traffic Will Increase. It appears quite evident that the development of the natural resources which have been going on in the country forEomo years must result in a continuation of increase of the productivity in respect- to our staple products. The fact that the receipts from the railways during the two years of war are in advance of previous years gives ground for a feeling of the greatest confidence in regard to the future.' Looking back at tho railway returns over a period of years I find the record of one ypar broken by that, of the -following year. Having regard to this and the resourcefulness of the country, I anticipate a very, marked •increase in the railway traffic in the near future, and in order 'to provide for it a commencement, and in a comnrehensivc way; should bo made with the improvements outlined in the special renort of the General Manager ill 10)4. otherwise great difficulties will inevitably arise in dealing with the traffic. Railway business cannot be handled economically and satisfactorily by the Department unless proper facilities arc availnble. ' I estimate the revenue for the vear ending March 31, 1917. at. £1.450,000, "and tho expenditure at £3,015.000. Superannuation Fund. Tlip amount standing to the credit of the Government Railways Superannuation Fund 'it the end. of the financial year was £3G2,810, an increaw of £16,654 on the balance to credit to the fund on March 31,'1915. Tho total income for the year was £118.006. and the outfoinnr £102,252. Of the latter sum. £83.7011 represented payments to 972 members of the service who hive retired voluntarily «r by reason of 1-einor medically unfit. *:23 widows and 305 children d'nepdnnts on deceased contributors to the fund who had ,iiot retired on superannuation a t the time of their death. The income from actual contrib"ti""s of "iemhi"'s fot.ilWl £7fUn3, or .PT.Mfi l«ss tf'nn the. actual liability on MarM, 31. The, ro. pi-inl-a are. hiwove'\ siipnlemontod by the onl.cwl,- rer»ived fr"n\ the Government. £25.000, and amounts arcruing from interest on funds invested avd fines imposed under Hm regulations: lhp?e amounted I" £15.5(13.