DEAD MILLIONS

Hokitika Guardian, 8 May 1929, Page 3

DEAD MILLIONS

FACTOR IN RAILWAY LOSSES,

SOLUTION HARO TO FIND. WELLINGTON, May 6. Speculatoin has already commenced 'regarding the Prime Minister s plan for relieving the consolidated revenue of the annual direct payment to meet los'-es on short, unpayable lines. No hint of this method has been given, but not long ago, when receiving a deputation from the Amalgamated Society of Railway-men, which requested restoration of the wages cuts made during the former Government’s retrenchment, Sir Joseph Ward discussed -the question of railway capitalisation. it was argued by Mr L. M’Uvride. general secretary of the society, and former mem ’.cr for Napier, that the, railways should not continue to carry the burden of dead millions representing capital long since exhausted. Mr; M’llvride added 'that kv Somewhat j similar position existed in Victoria, j where a Royal Commission which in-; vestgated the position of the Victorian railways. recently recommended ■ the writing down of the railway capital to the extent of £10.570,863.

The Prime Minister: That is a very easy proposition, . hut I want to tell you not to forget one tiling; to write down that sixteen million you have' to create a fund for repayment in 32J- 'years. You cannot write it off by a stroke of the pen. Mr M’Jlvrido: That may he so, but it is not impossible, and our contention is that our railways, under a commercialised system, should not be called upon to pay that burden of interest. The Prime Minister: I quite agree, but if any of you gentlemen can pro. duee a recipe by which we can write off ten millions or so which we need not liorrow, T will be glad to hear it. Put the trouble is that avc cannot do so. Mr M’Uvridc: May 1 suggest that if the recommendation, of the Royal Commission in Victoria is given effect to. that von get the recipe from them. The Prime Minister: We Avill he glad to take the recipe. The point you are making is quite true, but the trouble is the remedy. It is exactly the same as if any of us owed a man £SOOO and we were paying him G per cent, interest of £3OO a year, but instead. we decided to only pay him £IOO and went to him and told him Wo had decide to write off £3OOO. He would reply: “Where is the rest of my interest coming from! Unless you can find something to earn it you are going to make mo lose capital and interest.” That is the trouble.