THE RAILWAYS

Hokitika Guardian, 8 October 1932, Page 5

THE RAILWAYS

ANNUAL REPORT FINANCIAL. ) The Railways Statement refers as follows to the financial position: On the 31st March, 1032, the capital invested in tho lines open for traffic, 1 the steamers and plant on l Lake Wakatipu and other subsidiary services, was £51,424,883, as compared - with £60,545,154 on 31st March,' I§3l. ■ The additions to the capital account, totalled £754,070, ana comprised Maintenance Branch, £155,521, chiefly m 'bridge construction; 'Signals Branch, £30,934, in new telephone lines and /extension of train control j Public Works Department. £193,981, expended on Tawa Flat devia\ ion ; and £373,642, expanded on the construction of new rolling-stock. During the year loan-moneys amounting to £439,190 were repaid to the capital account, and the net. addition to capital for £he year was £314,888. The Government Railways Amendment Act, 1931, authorized the reduction ot capital as at T-t April, 1931, by £lO,400,000, which amount represented the estimated amount of accrued depreciation r.nd losses of . (capital not otherwise provided for up to . that date. The redaction made possible the writing-off of ail assets which had at 31st March, (1931, reached flhe Tfull term of life fixed for the purpose of determining depreciation rates. The financial results of the operations for the year- ended 31st March, 1932, were as follows ;

£ Gross revenue < 6,508,948 Gross expenditure ... 5,670,955 Net revenue ... 837,993 Interest charges 2,221,465 Excess of interest charges over net revenue ... 1,383*472 ..The gross earnings for the year were £5.508,948, a decrease of £1,062,589 t(14.03 per cent.) compared with the previous year, and a decrease pf £l.779,168 (21.4 per cent.) compared with the year ended 31st March, 1930. The gross earnings were the lowest since the year ended March. 1920, when the revenue totalled £5,752,487. In 1920 the mileage of track operated was 2,996, as compared with 3,315 in the financial year just closed. (During the past year the railways suffered severely from,the trade depression and the (substantial decline in revenue is principally due to thi.s cause. , The gross expenditure totalled £5.670,955, a decrease of £1,211,855 (17.61 per cent.) compared with the previous year, and a decrease of £1,687,904 (-22.9 . per cent.) compared with the year ended 31st March, 1930. Interest charges totalled £2.221,465, decrease of £33*080 compared With 1 the previous year. , For the years /ended 3lst March, 1930 nud 1931, interest .*«* computed , on the total sum expended on the railways less £B,lvv,ooo as provided in ( the Finance Act, 1929. In the 'year under review the capital account has , been reduced hv £10,400,000 in term's of subsection (2) of sectipn 23 of the | Government Railways Amendment Act, 1931, such amount being inclusive oi the sum of £8,100,000 before mentioned. The reduction in intera-w charges is due to thi3 factor.

The accumulated loss which stood on the balance-sheet at 31st March, ,1931, at £1,892.017, was written off against the depreciation reserve £l>; 658,253, and the 'balance—viz., £233,764—was charged against the general reserve.