RAILWAYS HALF A MILLION DOWN

Sun (Auckland), Volume 1, Issue 49, 20 May 1927, Page 9

RAILWAYS HALF A MILLION DOWN

DROP IN NET EARNINGS INTEREST ABSORBS PROFITS (From Our Resident Reporter.? WELLINGTON, Thursday. fpHE Railway Department's accounts for the year ended on March 31 disclose a deflckt •# £544,848. A working profit of £1,498,552 is shown—less by £134,241 than the net earnings in 1925-26. The department has also received a subsidy from the Consolidated Fund, in respect of branch lines and isolated sections, of £445,222, making the balance available for the payment of interest £1,943,774. In 1925-26, the subsidy was £359,540, the total net revenue being thereby increased to £1,992,333. Following is a comparison of the receipts and working expenses for the last two years: 1925-26. 1926-27. Decrease. Receipts . £8,101,222 £7,989,422 £111,790 Expenses 6,465,429 6,490,880 *22,451 £1,632,793 £1.498.552 £134.241 Subsidy . 359,540 445.222 *55,652 Net Rev. . £1,992,333 £1,943,774 £48,559 •Increase. INTEREST OF OVER £2,000,000 The total capital charges paid by the Railway Department to the Consolidated Fund last year were £1,913,311. This year, according to the recent statement by the Minister of Finance, they have been increased by £130,100, making them £2,043,400. There has consequently been a loss cf about £ 544,848. Following is a summary for recent years of the net earnings, together with the amount by which the latter exceeded or fell short of capital charges: Net Earnings. Surplus. Deficit. 1919- .. £1,647,420 £147,620 —■ 1920- .. 1,271,930 1921- .. 405,864 . 1,021,156 1922- .. 1,225,305 1923- .. 1,580,445 31,802 1924- .. 1,567,109 1925- .. 1,632,793* rfO.olS 1926- .. 1,498,552* —044,54 S •Excluding subsidy on branch lines. Until the last two years, capital charges have been calculated at 3i| per cent. From 1925-26, the department has b.en charged 4 1-8 per cent, on the greater part of its capital, and the actual rate of interest in respect of capital raised under the Railways Improvement Authorisation Act. The latter was £5 3s 9d per cent, in 1925-26. NORTH REVENUE LOWER The operating receipts from the North Island railways were £4,420,834, a decline of £162,088, while working expenses increased by £21,186. The net revenue, £980,146, was therefore lower by £183,274. Operating revenue in the South Island was £3,002,637, a reduction of £3.716, but expenses totalling £2,717,596 showed a reduction of £27,475. The net earnings were £285,041, an increase of £23,757. From subsidiary services, the receipts were £565,961, and the expenditure £332,596, the net revenue of £233.365 showing an increase of £25,276. The total number of passengers carried was 10,305,065, as against 11,813,480 in the previous year. Season tickets issued were 585,904, as against 600.292. Livestock traffic was as follows: Cattle. 391.312 (391,823); sheep and Pigs, 8.910.747 (8.220,135). Timber traffic amounted to 664.124 tons, as against 771,576 tons. Other goods traffic amounted to 6,169,312 tons, as against 6.037,027 tons.