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Hokitika Guardian, 2 July 1930, Page 4

In the reported plight of the New Zealand Railways, tne report of the Royal Commission which ts to return its iinilnigs on the administration some time in August, will be awaited with peculiar interest. The enormous drift taking place in the finances' oi me organisation is .sucii that it might be expected it would not be dihicuit to discover wnere the greatest leakage or loss is, and remedial measures might be taken by the internal management to check the growing loss. jL-.c-e is,■ however, apparently, a mixture of political and administrative contiol, and there is the-apparent difficulty iu co-ordinating management to discover where the fault lies, and Recommend some process of reorganisation to save the situation, In former years the railways were conducted under ix General (Manager, and the gentleman responsible at that time is now included in the Commission. Air Me* Yilly will bo able to bring his expert knowledge to bear in assisting to unravel the position. Following Mr McVilly’s retirement from the General Managers hip, a Raihvtay ‘Board of three members was set up, and held sway for a considerable period, and later the present highly-paid General .Manager was selected and appointed uv the Reform Government. 'Hie financial situation has not mended, despite the fact that the management Uas had the advice and assistance of experts from England, who recommended many reforms, which in the main appear to have been given effect, to. The work of the present Commission is therefore highly important, some material change has to be made in the present system of management, for it cannot continue as at present aggregating losses, and affording no hope of any recovery. It would appear that in the main items o, revenue on the principal lines, both passenger returns and 'freight are satisfactory. There are some branch lines on which it is admitted heavy losses are being incurred with little prospect of improvement in revenue. Over short distances in many localities, the railways have a formidable opponent in the motor, and in such instances something might be done to readjust the local situation. If the motor is giving a useful and suitable service to the public, it will be difficult to penalise it in any way to check that service of which the public readily avail themselves. On the other hand there is the matter of upkeep of the roads carrying the traffic and which, outside the petrol and tyre taxes, is not charged for, and only a portion of the dutv returns- to the roads. It is a problem therefore to deal equably with this aspect. There are suggestions that the new workshop schemes were very cos ? tly and are inconvenient for economical working, and that sooner than later there must be a return to the old system, modified no doubt, but giving greater local service. The aids to draw business for the railways are also considered expensive, and some' curtailment will be necessary. The same remark applies to staffing. The scope of the Commission should also include a record of time-tables, for some are indifferent—notably the Hole itikn-Grevmoiith express connection service, which actually tends to jeopardise revenue.