THE RAILWAY YEAR

Dominion, Volume 11, Issue 198, 10 May 1918, Page 4

THE RAILWAY YEAR

Taking clue account of the extent to which the operation of the railways of the Dominion is affected by war conditions, the Minister of Kailways and his Departmental officials have some reason for self-congratula-tion in the working results disclosed for the past financial year. At an 'immediate view, the net return for tho year of &i 12s. per cent, on tue capital invested in working railways is remarkably good. It represents a considerable drop from the record return of £o ba. lid. per cent, obtained in 1916-17, but for reasons detailed by_ tho Minister in a statement which appears in our news columns a direct comparison of net earnings during the past year and tho previous year would bo unfair. In particular tho very considerable sum which the Department is called upon to provide in tho shape- of a

war bonus to its employees and an additional allowanco to married men now appears as a debit in its working accounts, whereas last year the amount_ allotted under these heads was paid out of the Consolidated Fund and not by tlio Railways Department. At the same time, while railway revenue- is reduced by the reduction of services, and also as a result 'of the shortage of oversea shipping, the latest increase in [ rates—tho second imposed during the war period—was in operation for only tho last four months of tho year which ended on March 31. All things, considered, the net return of £4 12s. per cent, secured last year compares very well with tho larger corresponding return of tho previous year, _ but in regard to both these years it is obvious thai a high return on capital invested in working railways docs not mean the same thing as it would mean in years of normal operation. Account must bo taken of expenditure which in normal circumstances would have been made on renewals and_ upkeep, and which under war conditions has necessarily been withheld. Generally speaking, high standards of efficiency are observed by the Department in rtiwird to the maintenance of existing plant, equipment, and permanent way, but the difficulty of obtaining materials and the reduction of working htails have made some lower, ing ni! these standards during the war period inevitable. For instance, in his report for 1916-17, tho General Manager of Railways mentioned that during the twejve months only thirty miles of track had been relaid, although the ideal standard fixed for this work was 100 miles per annum. Ho appended the explanation that in view of tho abnormal conditions resulting from the war it was essential that existing stocks of material bo conserved to meet ordinary requirements. In the same report Mr. Himiy mentioned that considerable difficulty had been experienced in obtaining structural steel for bridges, although notwithstanding this a number had been strengthened for the running of heavier locomotives. Materials which tho Railways Department must import from abroad or do without arc becoming harder and harder to obtain as 1 tho war continues, and from this alone, even if account had not to bo taken also of an increasing 1 shortage of labour, it would follow that the item of postponed expenditure- on renewals and upkeep must assume correspondingly increased importance, and must attain cumu- 1 lative effect. Tho enforced reduction ! in expenditure needed to maintain ; tho railway equipment at recognised '. standards of course modifies to some - extent the otherwise good results 1 shown for the past year and in pre- ' viqus war years. I

One important matter affecting railway administration to which the Minister has drawn attention in connection with his review of operations for the past year is that the period of five years for which the present General Manager (Mk. Hii.ky) was appointed expires this year. If. actually expires in August next, hut it has heon'arranged that Me. Hilgy shall continue in nflico until the end of fho current finan-

cial year. Apparently there is no question of renewing his appointment since he is anxious to return to England. It is ama tier for very great regret that the intervention of the war made it impossible for'Mn. Hiu:v to carry out the working programme contemplated when he was appointed. He was brought, out by tho Government to review and, as far as might bo necessary, remodel our railway system in light of the experience gained in the larger field of operations of the OKI Country. The extensive- and far-reaching programme of railway improvements which Mi:. Hilkv. laid before the Government and Parliament suggested at once that his appointment was well advised, and that there was much scope for reorganisation, improvement, and the introduction of more modern methods. In successive reports the Manager has comprehensively reviewed the whole railway system, not overlooking the far from satisfactory conditions under which railways arc at jiycscnt authorised and constructed. J?ven to tho layman it is evident that many of .his proposals are of an eminently practical character, _ and calculated to improve the efficiency of our railways and increase their usefulness and earning power. Since, however, many of (he more important improvements he has recommended—notably the substitution of up-to-date stations and yards In Wellington and other centres for the inadequate facilities now existing— involve tho expenditure of a very large amount of borrowed money, their prosecution has of necessity been postponed until alter the war. To a great extent, though not by any means entirely, the General Manager has been restricted lo planning and outlining reforms. It is as we have said much to be regretted that Me. H?ley will not bo enabled to carry out the comprehensive programme of reorganisation and improvement he has laid down, but his departure—assuming this is unavoidable—certainly should not ho allowed to prejudice the energetic prosecution of this programme as soon as the state of the money market and conditions gcnorally_ permit. The question of importing a .successor to tho departing General Manager may not arise, but it should be laid clown very definitely that the reforms and improvements he has planned are not to bo pigeon-1 holed and neglected, but are to bo carried out at the earliest opportunity.