A BIG RAILWAY YEAR

Dominion, Volume 9, Issue 2835, 28 July 1916, Page 4

A BIG RAILWAY YEAR

The working profit on the Dominion's Railways last year constituted a record. The net profit was £4 14s. 4d. per cent, on tho capital expended on open lines,which means that after paying interest on the money borrowed to construct the railways, there is a margin on tho right side.. This is satisfactory, especially in war time, when every pound counts. The figures set out in the Minister's statement covering the year's operations show excellent results in almost every department. The net earnings per average mile show a jump from £408 in 1915 to £555 in 1916, and the percentage of working expenses to earnings shows a drop from 71.14 per cent, to 64.00. This is all as it should be, and despite a small falling off in goods traffic, tho figures generally disclose a very gratifying state of things, well calculated to gladden the heart of the Finance Minister. But while tho Minister of Railways.and the General Manager and his associates arc to be congratulated on the results they have been' able to show, there is one feature which is not satisfactory. That is, tho expenditure on maintenance. According to the tables attached to the Railways Statement, tile amount expended on maintenance out of revenue during the year was £740,349, as against £738,550 in 1915, and £763,207 in 1914. The 1916 maintenance expenditure, though actually larger than that of 1915, was less per mile. According to the report of the Chief Engineer of Railways, it was £251 per mile in 1916, as against £254 in 1915. This is' bad Dusiness. It means deterioration. No attempt is made to conceal this falling off. It is stated frankly enough in the Departmental reports, and the General Manager explains that it was 'due in part to the inability of the Department to obtain delivery of supplies of material from the United Kingdom, and to the necessity of the supplies in hand. -The chief item affected by this has been the relaying of lines, the .total mileage relaid being only 57i miles, as against the recognised standard of 100 miles per annum. This shortage will have to be raado up later, and it,must be borno in

mind that economics of this nature hi the end usually prove costly. The circumstances just now are, of course, exceptional, hut the slackening in maintenance _ expenditure must bo closely scrutinised, and not permitted to he carried too far or to be regarded as anything more than a temporary measure. Generally speaking, the position of the railways must be regarded as highly satisfactory, and the Minister and his Departmental heads are to be congratulated on the results they have been able to show.