FUNCTION OF THE RAILWAYS.

Manawatu Herald, Volume XLIX, Issue 3835, 23 August 1928, Page 2

FUNCTION OF THE RAILWAYS.

FOR SERVICE, NOT FOR PROFIT. Auckland, August 21. Interesting statements in regard to the functions of the railways were made by Mr. H. H. Sterling, the new general manager, at Matamata on Tuesday. The railways in this country, he said, were laid down for service and not for profit. They ivere designed to open up and aid in the development of the country. For many years the railways were required to find only 34 per cent, and the balance, instead of being devoted to sinking funds and depreciation, was used in giving more service or reducing the freights. With such a system it was not now possible to make the railways pay as a commercial proposition. What he intended to do was to see that the railways gave more and better service. As an example, it had cost the department £IOO,OOO to give a reduction of 40 per cent, in freight on fertilisers, which had enabled farmers to use larger quantities. Hence, in spite of the dry spell, production in Waikato w r as ahead of the total for the previous normal season. This increased production had meant much more than £IOO,000 to the country. “The test of the railways in future is going to be in service rendered,” concluded Mr. Sterling.