RAILWAY BUSINESS

Dominion, Volume 10, Issue 3193, 18 September 1917, Page 5

RAILWAY BUSINESS

— — ♦ FUTURE PROSPECTS OUTLOOK NOT ENCOURAGING The General Manager of Railways, in his annual report, discusses the prospects of the railway business for the year:— Notwithstanding the fact that the year*r operations were satisfactory on tno whole, tne-re was an absence of that buoyancy which has hitherto been so remarkable a feature of the railway business during the war, and the effects of nearly three years 'of war manifested themselves, especially towards the dose of the year. Passenger traffic gave clear indications of languishing, the direct result undoubtedly of the absence on servico of so many young men, the reduction in the number of oversea passengers arriving a,t and departing from New Zealand ports, and a spirit of caution in regard to expenditure on unnecessary travel.

The goods business is now showing unmistakable signs of tho effect \of the dearth of oversea shipping and the embargo placed on exports overseas by the British Minister of Munitions, these causes affecting very seriously both the import and export traffic and the railway business at the ports. In view of the above tendencies to restrict business a considerable reduction in gross revenue both in passenger and goods traffic, must be anticipated for the coming year, whilst on the other hand,' unfortunately, there will bo considerable difficulty in effecting any equivalent economy in working owing to tho rapidly, rising prices of railway material. The serious effects of the enhanced! prices on expenditure can be appreciated to some extent by a study of the quotations given below of the increased cost of a few typical lines of commodities used extensively in the Locomotive Branch. In the examples given present prices are compared with normal prices in 1914:— Canvas for tarpaulins, 1914, Is. Id. per yard, advanced to 3s. per yard; increased "cost to Railway Department at normal rate of consumption, .£11,500 per annum. Spring steel, Jill 15s. .£SO pec ton; increased cost, .£5300 por annum. Steel plates, £& 10s. to ,£SO per ton; increased cost, .£16,200 per annum. Bar iron, £10 to .£2O per ton; increased' cost, ,£IG,BBO per annum. Cotton-waste, .£3O to i6O per ton; increased cost, ,£4500 per annum. Boiler-tubes, sd. to Is. 9d. per foot;" increased- cost, .£21,800 per annum. Iron, galvanised, i!3O to per ton; increased cost, i>16,000 per annum. Pig iron, M to .Ell per ton; increased cost, ,£14,000 per annum. Draw-bar springs, ss. to 103. 3d. per spring; increased cost, £2500 per annum. Copper plate, J£9o to .£23e per ton; increased cost, ■ .£3IOO per annum. Copper ingot, 280 to .£135 per ton; increased cost, i£6600 per annum. Tin, .£l7O to £239 per ton; increased cost, JEI2OO per annum. ■Alnniiniuni, .£96 to .£220 per ton. • •-. There are a number of other lines of material used in the railway workshops in large quantities the prices of which have risen practically in the same ratio as the examples quoted above, and as prices have still a strong upward tendency it is impossiblo to calculate to what extent railway expenditure will be affected by the end of the year, and afterwards. It is very questionable whether the cessation of hostilities will nave the immediate effect of cheapening the prices of engineering matenal, as tnere will bo an urgent demand as 60on as peace is declared for such material for reconstruction purposes in Europe There is, therefore, little prospect of any reduction in railway operating costs in ths near future to compensate for, the inevitablo loss of revenue. The increase in the price of coal in JNew Zealand for locomotive purposes is also a most serious factor in sstimating tile trend of railway operating expenditure in the future.. Since 1914 the price or West Coast coal (including increased, steamer freights) delivered at the main ports, such as' Wellington, etc., has increased so as to represent a difference in cost to the railways on an annual consumption of 150,000 tons of over iSC,000 per annum. The increased cost to tho railways of lignite coal ovor 1911 nrices represents on an annual consunipC of IX tons about .£IO,OOO. The increased price to the railways on 120,000 tons of Newcastle coal represents an increased cost of iICS.OOO per anmiim. - The total increased cost to tlio ?>ew Zealand railways of locomotivo coal (West Coast, lignite, and Newcastle) at present prices as compared with prices in IJI* represents an additional payment on tnw item alone of £123,000 per nnimra. _ It is noteworthy when comparing tho ratio of workhiK expenses to rovenuo on the New Zealand railways with tho Australian railways that whilst the average co=t of locomotive coal in New soutu Wales (according to figures contained in, an official report dated July 20, 1917) w 9s. 9d. per ton, tho average cost of hard, coal for tho New Zealand railways Isudeil ,at tho main ports (Wellington, Lytelton, etc.) is £1 12s. per ton,. a difference of £1 2e. 3d. per ton. This difference represents, on the normal yearly consumption on tho Now Zealand railways of 270,000 tons of hard coal, an increa3od annual expenditure on coal of tbout £300.000.