DO THE RAILWAYS PAY?

Taranaki Daily News, Volume LI, Issue 50, 18 February 1908, Page 2

DO THE RAILWAYS PAY?

THE PREMIER REPLIES TO CRITICISM. Pei' Press Association. Auckland, Monday, .Sir Joseph Ward, Premier, in reply, to criticisms of .New Zealand railway nnauce, said:— '

Professor It; liossiguol's assumption that there lias been sv loss of £4,380,14? 011 our railways during the iast ten years is entirely erroneous. It is manifestly wrong to include £3,122,478. expenditure on additions to opsn lines in capital coat oi lineß and. computß in."» teiest oil that slim, and at the same time to deduct 'additions to open lines' expenditure from the net profit of working. He having left the amount in capital, it may lie fairly assumed that the Professor was satisfied that the practice of including 'additions to open lines' expenditure in capital was correct and sound in principle. Clearly, therefore, lie had erred in deducting £3,122,378 from the net earnings. The, net loss shown by him must therefore be reduced by this £3.,122,378 which he has wrongly deducted. This leaves a difference of £1,257,01)1) required, according to ljm.Jtafeior's showing, to bring the-' HKerest on wnys lip to 3.73 per cent., whieh contends tliev should earn. given tlie public in fares and freights amount to £850,000, and the value of increased train services to £883,000—. these concessions representing money which the Government has returned to the users of the railways. Jointly tliev ; total i'1,71)3,000, or £475,0Q0 in excess of the amount tliat would liave been required to pay the 3% per cent, interest wluch the Professor assumes to be the average rate paid for the capital invested. _ This takes no account of tlw concessions in pay given to the railway staff, which amounted to another .€375,, (100. The net profit on the working, io I which reference is made, is shown clearly in the Railway Statement "" ''fTif i the ditleience reveluie^lnJ^^^^ expenditure which is available for interest purposes. The figures shown in railway reports and copied into- Professor le Rossignol's table, give the Irue results of the working of the railways and show that in 110 instance have oiir railways given a return of less than ■' I H ' r eeut., even when the capital cost' of the unopened lines have been included."

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