The Dominion FRIDAY, SEPTEMBER 17, 1920. THE RAILWAYS YEAR

Dominion, Volume 13, Issue 304, 17 September 1920, Page 6

The Dominion FRIDAY, SEPTEMBER 17, 1920. THE RAILWAYS YEAR

The results of railway working detailed in the Statement laid before Parliament yesterday are in some respects remarkable when account is taken of the exceptional circumstances that arose during the financial year 1919-20._ _ Although services were cut to a minimum during a period of close on three months (July-September, 1919) the gross' revenue for the year totalled £5,702,487—an increase of £703,855 on the earnings of the previous year —and although expenditure increased by £796,492 as compared with 1918-19, the percentage of net revenue to capital invested shows only a slight decline—from 4.65 to 4.511 per cent. These figures are suggestive of sound administration as well as of the steadily-increasing traffic demands with which—apart from abnormal interruptions—tho railways arc called upon to cope. It is not, however, a matter for commendation that the revenue estimate for last year fell short by more than three-quarters of a million sterling of the amount actually collected. An actual estimate of revenue would anticipate as closely as possible the returns from normal' operation of the railways. Since there was no increase of rates last year to give rise to uncertainty, and the "cut" and other factors which could not have been foreseen deprived the Department of a considerable amount of revenue, it is evident that tho socalled estimate of revenue which after all w r as exceeded by threequarters of a million had no real reference to the facts of railway working. In view of the recent substantial increase in fares and freights, the Minister's revenue estimate of £6,000,000 for'the current year (an increase of less than £250,000 on the earnings of 1919-20) is evidently in the same class as that of last year. While there is every reason to believe that the revenue actually collected will again considerably exceed the estimate, expenditure also is rapidly expanding, and with effects that are not yet fully apparent. ■ It materially affects the financial position and outlook that there is a considerable amount of leeway to be overtaken in maintenance work, which is now much more costly than in pre-war years. In 1913-14 expenditure in this category per mile of railway was £267. The corresponding figure for 1919-20 is £281, but an actual comparison will only be afforded when maintenance work has been brought up to date. The General Manager, while he states that the equipment of the Pepartment has been efficiently maintained, adds that the length of track relaid during the year is much below the fixed standard, and that "great difficulty has been experienced in carrying out oven the most essential works owing to the shortage of suitable labour." .The Chief Mechanical Engineer reports on the same subject in part as follows:—

The difficulty in carrying on not only urgently-needed new work, but also ordinary maintenance work during the year ha? been evon greater than in preceding years. Although, at much increased cost, it lias been pcssible to obtain materials to some extent, yet owing to the shortage of labour it has been possible to make only a limited use of these materials. Last year only seven miles of track were relaid, as compared with 95j miles in 1914-15, which was then the smallest mileage relaid since 1904-5. Until war and after-war difficulties arose the aim of the Department was to re-lay at least 100 miles of track per annum. From these facts it is clear that although expenditure on maintenance per mile of railway is already greater than before the war, a much heavier increase in this outlay, must bo looked for when maintenance work is brought up to date. With increased wages and salaries, dearer coal, and increasing capital charges due to dearer money and the heavily-increased cost, of railway construction, additional outlay on maintenance will add substantially to the cost of operating the railways as time goes on. One of the most serious aspects of the railway outlook is touched briefly by the Minister in the observation that owing to the unavoidable postponement of the programme of impro/ements. planned In 1914 (by Mil. E. H. Hilev), there is a serious lack of accommodation, which results in congestion of traffic and is a serious obstacle to the successful operation of the railways. Mn. Hilky, it will be remembered, recommended the expenditure of a sum of £3,250,00.0 over a period of five years (from 1914) in improvements which he declared to be essential in order that the railways might cope efficiently with traffic demands. Before leaving the Dominion last year, he urged that a supplementary programme should bo put in hand and carried out simultaneously with the delayed programme of 1914. The actual position is that up to the end of last March only £035,265 had been expended in furtherance of the improvement scheme which was framed in 1914, and if normal circumstances had obtained should by this time have been completed. The result is tersely summed up by the General Manager:—" ... as a consequence the Department is now in a. position of having to deal with greatly increased traffic with out-of-date and inadequate facilities. During the five years 1915 to 1920 the revenue has increased by £1,647,030, ajul there is every indication that this rate of increase will be maintainor! It is therefore imperatively necessary that the railway-improvement scheme of 1914 should be vigorously pushed on." It is evidently a matter of extreme urgency that means should be found of giving full effect to this recommendation, and in doing so the Government will at once provide for the efficient operation of the railways and pursue the policy of sound economy which is ' manifestly demanded.