The Guardian (And Evening Star, with which is incorporated the West Coast Times.) FRIDAY, DECEMBER 28th, 1923. RAILWAY LOSSES.

Hokitika Guardian, 28 December 1923, Page 2

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) FRIDAY, DECEMBER 28th, 1923. RAILWAY LOSSES.

In « recent issue ol Lite (lovernment Gazette the revenue and expenditure cl toe New Zealand Government- Railways vim published. Ihe accounts coveted tho period from April Ist. to Nov. 10th., or 32 weeks. The revenue for the period amounted to £3,917,(539, and the expenditure to £3,302.738, shewing a surplus of revenue over expenditure of £dM,!!OJ, which looks teti.arkably good, more especially when compared with the corresponding term of last year when tho surplus revenue amounted to only £339,190. This year’s surplus revenue is £27.3,711 greater Hum the surplus shown last year and yet the railways are fur from being

a pajing proposition. The jail ways cost a lot of money to build, a greatdeal more tlian was necessary, but that [ is inevitable when a Government starts out to do a work. The Now Zealand railways have cost round about £ll,000.000 and the whole of this money has boon borrowed. A private railway company would look for a dividend on such capital, but if a dividend was not forthcoming the shaivhohle.is would simply have to go without it. 1 n the ease of the State the position is different. for the money with which the railways w«=-i<» imilt was liorrowotl nn.l ti.o lendeis want their interest paid regularly. The rate of interest may he safely assessed at -I per cent, and this rate in £14.000,000 is equal to £1,700, COU per minum. But the revenue figures are only for 02 weeks or 22-1 days and the proportion of interest payable in that period is £1,083,000. From that amount must he deducted £Ol-1.001, which is the excess of reveiiw over expenditure, there is a loss of £308,100. This means that, for every day of the 22-1 days or 32 weeks in respect to which the accounts have been made, there has been a loss of £2090, and the deficiency has been made good out of the Consolidated Fund, and that is just another way of saying that the money lias been obtained from the pockets of the taxpayers. State built and operated railways never pay for a variety of reasons, 7mt mainly lKKau.se political corruption is inseparable from pioliticnl undei takings. In the construction of the railways money is frittered away in a number of ways, ami the cost per mile is thus in dated beyond what is reasonable. The site of a railway is often subjected to political jobbery, which has to be rectified later on. In respect to operating the railways, the officials are subject to political control and are never free to exercise sound judgment or to effect necessary and desirable economy. The operations must be subordinated to the exigencies of the political situation and rim whims of the party in power. The carefully considered plans may. a many moment, be brushed aside if the political circumstances warrant same. It is not a question of whether .the plan is or is not needed for the benefit of the railways,' but whether it is politically safe to put it into operation. For„ the same reason the management cannot decide on any definite mode of procedure. pm! decisions nre long ip being arrived Pi, A« ft businosj eotnmufdty

ve tolerate a good deal of nonsense tiom the (iovernment railways. The inefficiency and the.want of organisation are seen at holiday times, especially in the larger citie-. The booking arrangements at Wellington this Christmas, it is said, beggar description. Men and women have had to stand in queues for hours to book a seat in a train. If a private railway company weic to carry on in such a way there would lie violent protests. There is nothing to be gained by protesting against the (lovernment railways, because politically managed lailways must always be inefficient, because polities and politiial coemption go together.