The Daily News. FRIDAY, SEPTEMBER 30, 1921. THE RAILWAYS.

Taranaki Daily News, 30 September 1921, Page 4

The Daily News. FRIDAY, SEPTEMBER 30, 1921. THE RAILWAYS.

The latest returns concerning the revenue and expenditure of the railways in the Dominion disclose a serious position. In the period from April 1 to August 20, there was an increased revenue over that of the corresponding period last year of £139,515. That, of course, might be deemed satisfactory as far as it goes, were it not for the expenditure account exhibiting an increase of £578,296. The actual figures are as follow 1920 1921 Revenue .... £2.423,038 £2,562,<»3 Expenditure . £2,031,597 £2,609,8'83 Profit £391.441 Loss £47,330 These figures show that at August 20 this year the railways were £438,771 worse off than at ' the same time last year, and had it not been, for the increase in receipts the deficiency would have been £578,286. If to this sum be added interest at four per cent, on the capital outlay the result would be a deficit of about, two million sterling. Fortunately, the actual position is not quite so bad, but it is sufficiently serious, for despite the heavy increases in fares and freights, the Dominion’s most important enterprise, in which, over forty million sterling is invested, instead of paying its way and making a profit, is running at a dead loss and becoming a. liability. What has caused it? It is not difficult to ascertain. The revenue side ia quite satisfactory, considering the times. It is the high cost of operating, in which labor largely figures. For the railways to pay their way under such an enormous load is impossible.' It is not the increases in the wages of the 14,000 men that comprise the railway staff that is the trouble so much as the altered conditions of working. It has been sought to run the railways on the same lines as an ordinary factory, limiting the hours per day. and treating anything over those hours as overtime. The hours also have been reduced from 48 to 44. Formerly the hours were adjusted so that overtime was largely avoided. A man

would, say, take a train to Wellington and back, and then would be given a day off. The arrangement was a mutually satisfactory one. Now, anything over the eight hours is treated as overtime. The result is seen in the tremendous increase in the wages bill. The increase for the past year over 1919 was over £900,000, and since the hours were reduced from 48 to 44 the host is steadily increasing, and bids fair to be £1,500,000 more than for 1919. How can the railways pay with such an enormous loading? It is impossible. No one objects to the railway men being adequately paid for their services, but it is an open secret that some members of the service discharging duties Calling for no particular training or skill are drawing up to £4OO a year, some indeed up to £450, made possible by the altered conditions of work enabling them to claim big overtime payments. These inordinate charges cannot be passed on to the public, who regard the present fares and charges as flready too high. The returns show that the danger point has been reached in the matter of increased fares and charges, and if business is to improve the fares and charges must come down, not] go up. The railways at one time had things a great deal more their own way than they have now with improved roads and efficient motor traction, not to speak of the competition by sea. It must, be patent to anyone who has given the subject any consideration that either the staff must be cut down materially, and further “cuts” made in the services, or the departmental heads and the men get together and devise new conditions of work that will enable the department to carry on the present, or the old services, profitably. Unless something is done immediately to remedy matters the railway's will go to the wall, financially. Another thing that is handicapping the railways is the high cost, of coal, but the department cannot be blamed for this. It was forced to buy coal at high prices outside by the action of the New Zealand coal miners, who imagined they had a stranglehold upon the country and could force it. to come to terms, no matter how unreasonable or impossible they were. In this matter ths railways rendered a very great service to the country, for by getting in big supplies from outside, they undoubtedly prevented a strike and a hold-up of ths country’s industries. But the price has to be paid’, and so the expenditure of the working of the railways is increased. This trouble, however, will soon right itself, but the serious question is the ever increasing labor charges for which no adequate return is being given. No general manager in the world, however gifted or capable,, can hope to pay interest charges, let alone show a profit, under the conditions that have been obtaining during the past year or two. It is about time the public took an interest in the matter, and saw the effect of the concessions wrung from the Government in the last year or two.