RAILWAY FINANCE.

Otago Witness, Issue 2815, 26 February 1908, Page 38

RAILWAY FINANCE.

! ANOTHER STATEMENT. I AUCKLAND. February 18. 1 In view of rho starement by Sir Joseph Ward regarding' Now Zealand raihvav I finance, a press representative waited today upon Mi B. Kent (of the Shipping and Railways Committee of the Chamber of Commerce) to j'ceitam if there realK is any political feeling on the part of members as against the Government. "A« a matter of fact." said Mr Kont. " the chamber is neither for nor against any Government, because we are a strictly non-political body of merchants and professional gentlemen, and it ,s our duty to look after the commercial interests of Auckland, irrespective of any particular Govornment that may bo in power. The position is that in this instance a certain iimoum of information fiom Professor Le RosMarnol about our railways was placed in the hands of the committee of which I am chairman for exami nation. From the tabulated statement of the Piofessor as to tho receipt-, and expenditure of our railways. he shows that we have made a net loss of £4.350.147 in 10 years. Now, there i^ no doubt whatever that statement is fonet-t. because it is not right or just to chaig3 all replacements and new plant to re-venue account, and that is what the Professor has done, because in t'lie same 10 years he ha= an item (and it is the only iiom dealing with replacement and new plant) of £3.122.473. Thi- is all placed against revenue account. Now. I propose to show how utierlv wrong such a method of calculation i*» Supposing our railway from Auckland to Hamilton wa-s laid with 401b raih. hut in the course of year?, on account of increased traffic, those rails had to be replaced by others of 901b. the difference between replacing the 401b rails with those of 90!b must be put justly to capital account. Many other illustrations of a .similar kind could be given, but that one is sufficient for mv purpose. Of course, in allocating all such amounts to capital account there should be a sinking fund, so that the capital account may be graduall.v relieved of this extra plant charge, and the amount thus gradually placed over a period years to revenue account. Whether or not that i 3 done by our | Government I am not in a position to say. j I am quite sure that a perusal of that report by Sir Joseph Ward would convince him that it is drawn up in a very careful manner, and I am sorry this misunderstanding has arisen."

A firo enjrinp ouppliod to Wirhnm pariah. in E-scx in 1829, has been sold by tho ci ; mict council fnr £3