The Daily News. MONDAY, SEPTEMBER 3, 1917. THE RAILWAYS STATEMENT.

Taranaki Daily News, 3 September 1917, Page 4

The Daily News. MONDAY, SEPTEMBER 3, 1917. THE RAILWAYS STATEMENT.

If there is one department of the State's activities that should interest the people more than another it is the railways. In normal times the railways reflect the progress and prosperity of the couißry—or otherwise, but in this time of war, when the spirit of economy, sacrifice and enforced restriction are so dominant, it might be expected that the revenue would show a material decrease. It is therefore more gratifying to find that the earnings for the year constitute a record, being an advance of £-252,454 over those of the previous year, and £350,810 in excess of the estimate, whilo the net profit has risen from £1,637,473 in 1910 to £1,873,940 in the year ended March 31 last, although the expenditure was nearly £IG,OOO more, the mileage open being the same. This result shows that the railways in 1916-17 earned 5.30 per cent on the capital invested in lines open for traffic, and 4.91 per cent, on the gross capital of £3B, 137,173. It is also satisfactory to find that the percentage of working expenses ■was less than in the preceding year, being 80.97 against 04. So far as the v-rking expenses, are concerned in tho ! • ; -ilways the additions to rolling siik.., machinery and equipment must always be a heavy item, and last year the expenditure under this head reach-, ed £296,270, but there is something substantial to show for this outlay inasmuch as during the year 23 new locomotives, 29 carriages, 5S bogie and 332 four-wheeled wagons, and 250 tarpaulins weie completed and put into traffic . and 27 locomotives, 40 carriages. 16 brakevans, 205 bogie and 956 four-wheeled wagons, and 1050 tarpaulins were in hand on March 31. For so comparatively small a population as there is in. the Dominion it is- marvellous that so much is spent by the people in passenger and goods traffic—almost £2 per head, but it has to be remembered that | the increased fares and tariff have had an appreciable effect on the railway receipts, and this is shown by the fact that in 1915-16 the number of ordinary passenger* was 14,201,500, while those for last year were 14,173,115, a falling off of, 28,391 in the total number carried. The goods tonnage also shows a slight decrease, but this was only to be expected. In estimating the prospects for the current year, the Minister, in view of the dislocation of imports and exports consequence on the shipping shortage, deems it prudent to anticipate that the revenue will nob be higher than £4,200,000, while, as is the general practice, he provides for increased expenditure, a little of which would be most welcome, though very belated, in providing decent rolling stock on the Waitara line. Most people will probably be astonished to find that the Minister, now the railway revenue has risen since 1914 by twenty per cent., proposes to enter upon the comprehensive scheme of improvements suggested by the ge eral manager three years ago, on the ground that unless those works are completed by 1919 very serious disabilities will occur in dealing with the traffic. As we have already had to undergo the disabilities consequent on a restricted service ifc would seem quite feasible to risk deferring the general manager's scheme till after the war, and if there is any surplus railway revenue to de-

vote it to giving the back block settlers, who have neither roads nor railways, some facilities for obtaining the goods they need without having to pay ruinous charges for transport, and to enable them to market their produce at all times of the year. The Minister states: '1 am firmly convinced that not long utter hostilities cease thi3 country; with lt% great natural resources, wiu} cnter^

upon an era of unprecedented industrial I activity, and pur railways >wUl be called ; upon to deal with a. greatly increased business.. During ten years, 1905-1914, under normal conditions the railway revenue increased by over 83 per cent., and the tonnage by 48'% per cent. The experience of the last four years confirms my opinion that this rate of advancement will be maintained, if not exceeded, when normal conditions are restored. It i s obvious that facilities that were insufficient for the business in 1914 will be totally inadequate to deal with the 50-per cent, greater traffic that will be offering before the works can be completed live years Jicnee. Much valuable time has already been lost through unavoidable circumstances. This cannot be recovered, but the consequent disabilities can be rendered less acute by at once making such provision as will enable the improvements to bo commenced and hastened on vigorously and uninterruptedly as soon as materials and labor are available." The desire to bring the service up to date is, of course, praiseworthy, but the Minister should set an example of patience and economy. The railways may theoretically belong to the people, but there is no disputing the fact that there is a tendency to administer this State service far too autocratically. The railways are now paying their way not because of any special merit in their administration, but owing to the exceptional prosperity of the people. Until the war is over the Government should go slow in the direction of expenditure. They understand the process where it is a hindrance, so that at least they should be consistent. That, however, does not affect the satisfaction we should feel over the expanded revenue last year.