The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, SEPTEMBER 14, 1928. THE RAILWAYS.

Hokitika Guardian, 14 September 1928, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. FRIDAY, SEPTEMBER 14, 1928. THE RAILWAYS.

It would 'be a pleasing duty, did tho facts warrant it, says tho Lyttelton Times, to congratulate, tho Government, and especially tile Minister of Railways, on the results of the year’s working of the railway service. Unfortunately they do not. Indeed, it is no easy task to locate in the statement . presented. to Parliament this week, anything on which to build hopes that the worst lias passed. Mr Coates lias endeavoured from time to time to convey the impression that -the Railway Department is passing through a stage of transition, and that, at some future date, it will emerge with flying colours. If it is Mr Sterling’s task to bring about this state of things, then he cannot be envied his position. However looked at, the figures are depressing. During the last three years the country has invested about £8,000,000 in railway undertakings, at an ever-in-creasing cost per mile. In 1925 the capital cost per .mile open for traffic •was £14,448, but last yd(ar it had grown to £16,097, and that, of course, must make the task of placing the service on. a satisfactory financial footing the more difficult. In five years the annual interest bill has grown by nearly £500,000, and, in these days of intense competition, that sum is not easily earned. At first glance there would appear to he some grounds for consolidation in the apparent increase of the gross earnings, but it is to the credit of the Minister that he has prevented any misapprehension in this matter. The item, ho has explained, includes £489,568 transferred from the Consolidated Fund in respect to the ' “developmental” lines, hut as the amount had already appeared as general revenue in the national accounts, surely it should not be included as revenue by the Railway Department. If the sum’s transferred are deducted it will be found that the actual increase in gross earnings, for the year wa: only about £45,000. The higher level of expenditure can ho accounted for, to some extent, .by the increased appropriation set aside for depreciation and renewals, a development easily understandable in view of the extended service provided and the greater demand upon the permanent way and rolling stock. But such an explanation would not wholly cover the increase in operating expenses of about £150,009 last year, awl of £750,060 in the past three years. The figures given in tho statement warrant the most careful study. In 1926 there was a small surplus, after the transference from the Consolidated Fund for developmental lines of £359,540. The net revenue was said to equal 4.35 per cent of the capital invested in the system. Last year, despite the transference of £489,568 for developmental lines, there was a deficit of £291,452, and the percentage of net earnings to capital invested was reduced to 3.64. It is evident that something drastic will have to lie done, and the Lyttelton Times judges the advisability of experimenting with the oil-electric type of engine that has proved so successful in Canada, and has recently been put into service in tho north of England by the London, Midland and Scottish lino. It is claimed that this typo of engine reduces running costs to a minimum, and enables services formerly not paying their way to yield an adequate return. The experiment would not he costly, and it might prove to hr the solution/ of the branch line difficulty that at tho present time must he a serious problem lioth to the Department and to the Minister of Finance. The new General Miuiiiaei' has undertaken a task of immense magnitude, and if he can place the railway system of the Dominion on a sound financial basis then he will have deserved well of tho country.