ON A BUSINESS FOOTING

Sun (Auckland), Volume IV, Issue 1014, 3 July 1930, Page 1

ON A BUSINESS FOOTING

‘•lt is a curious thing that the Min

Jster ot Railways is doing what the recently appointed Railway Commission most probably would have done,” jaid one prominent businessman. The service cuts, announced yesterday by the Hon. W. A. Veitch. have been made with the object ot' attempting to reduce the Railway Department's deficit. They are generally approved by Auckland businessmeu. Others again contend that S“me of the I ~u t3 a re so small that they could not affect the working of the department one way or the other. Some sound criticism came from Mr. Robert A. Laidlaw, general manager of the Farmers' Trading Company, who stated that Sir. Veitch is to be complimented on the action he has taken. However, Mr. Laidlaw considers that in order to effect a real economy in the service, the Minieter should a° further and reduce the staff. "While certain economies will be effected by reducing the actual running of trains,” he said, "the department is not economising by cutting down its staff. At present the onlysaving will be on the wear and tear ot rolling-stock and coal. LOGICAL CONCLUSION

"If the department dispenses with a certain number of its staff it would he doing only what a well-organised business would do. If the whole tiling were carried to its logical conclusion the department would be saving wages, which represent an enormous cost. “Immediately a commission attempted to discharge railwayraen it would be up against politics. So long as the railways are under political control there can be no real efficiency'. While we know that all transport systems the world over are in difficulties, principally because of motor competition, there is no doubt in my mind that better results could be obtained from the railways if they were under the control ot a commission consisting, say, of five businessmen who had absolute authority and who were assured of freedom from political interference. “If the railways were in the hands of private businessmeu a competent board would go to the shareholders and say, "We have a. lot of useless assets appearing in the balance-sheet —branch lines which should never have been built. They are of no value whatever. Let us face the facts, revalue our assets and write down the capital and close down the unprofitable branches.’ RAILWAYS AND POLITICS

“In order to do this,” Mr. Laidlaw continued, “and to put the railways on

a proper basis, the Government should take this action. The Government built useless branches for political purposes. Why should they be a burden on the railway management? Let them be written off and put on a special fund and then give a businessman’s commission an opportunity of

reducing staff and cutting down expenses accordingly, “Personally. I believe that our thoughtful railway officials would welcome the opportunity of handling the railways as a business proposition rather than as a politically controlled machine.”

“The policy is a good one. I cannot understand why the previous Minister of Railways did not do it earlier,” said Mr. M. Stewart, president of the Auckland Chamber of Commerce. “I understand that the Government h cutting out only the trains and hues which are not patronised. As business men we say. ‘Why run trains tvhich do not pay?’” Mr. Stewart remarked that in his opinion traffic on non-paying branch unes should be reduced to meet the

How Railways Should Be Run NO POLITICAL CONTROL Auckland Men’s Opinions REDUCE staffs; remove the railways from political control; appoint a commission to run them on a business footing. These are some of the suggestions made by Auckland business men, whose opinions concerning the curtailment of the service were gathered this morning.

actual requirements of those Hues. If any train were full, either of passengers or goods, it would pay, hut if not, the tariff was too low. Byreducing some services to only three times a week, the Government was apparently trying to meet only actual requirements. SMALLER TRAINS He suggested that perhaps one reason for the high operating costs of the railways was that trains were too big for the amount of travelling [ traffic. He wondered if it were necessary to carry-, every- day. such a number of carriages to the various terminals and back. Mr. Stewart said he knew that rolling-stock had to be ready for emergencies, but surely, with the various stations in constant telephonic communication, all requirements could be arranged before the trains left. In this way trains might bo reduced in size and only- the necessary cars and wagons sent to the various stations. Mr. H. A. Robertson, secretary of the Northern Suburban Rail and Highways League, does not altogether approve of the Minister’s action. He disapproves strongly of the curtailment of the 6 a.m. workers’ train from Kumeu to Auckland. This has been in vogue for three years, and has encouraged many- city men to take up farmlets and orchards at Kumeu and the surrounding districts. "These men have been lured there by- the promise of an early morning train and a suitable return train in the evening,” ho said. EFFECT ON KUMEU “Cutting out the Kumeu train is such a small thing as far as the railways are concerned, but it will have a serious effect on the progress of the district, which wilt now go hack.” Mr. Robertson considers that another drastic and unnecessary- step would be the curtailment ot the AuckSunday- service,, in the establishment of which he was the prime mover. He also considers that it would be unjust not to allow holders of season tickets to use them on Sundays. The annual tickets are purchased on the Understanding that they can be used on any day of the week, and as they provide the department with a large amount of money in advance, it would mean that many people would not buy them if the advantages were lessened. Mr. Robertson considers that smaller and more frequent trains would be more suitable for suburban traffic. “A WISE THING" “The Government is doing a wise thing in curtailing unremunerative railways, and especially dead-end lines,” said Mr. Albert Spencer, president of the Auckland Employers’ Association. “These Unes are not supported by the public and the Government cannot be a philanthropic concern. The same attitude would be adopted by business people. Hundreds of thousands of pounds can be saved by such economies.”

Mr. Spencer said further that settlement in newly-opened districts would not be affected by the removal of trains as efficient motor transport would attend to the requirements of settlers.

“The Railway Department is also heavily overstaffed,” Mr. Spencer concluded, and the pruning knife could well be used at both top and bottom. Some of the big salaries should be cut and the business co-ordinated to avoid excessive cost of administration.”