MARKED INCREASE

Wairarapa Times-Age, 9 July 1942, Page 3

MARKED INCREASE

IN RAILWAY EARNINGS POINTS FROM THE ANNUAL STATEMENT. INCREASING WAR PRODUCTION IN WORKSHOPS. The financial results of the year’s working may be regarded as very satisfactory, states the Railways Statement, presented to the House of Representatives by the Minister of Railways, Mr Semple. The gross revenue reached a new high level of £11,938,338, eclipsing the previous record figure established last year (£11,160,218) by no less a sum than £778,120 (6.97 per cent) and maintaining the progressive gain in earnings which has been so marked a feature of railway working since 1935. Expenditure for the twelve months was £10,056,034 (1940-41, £9,465,574) and the net revenue £1,882,304 (194041, £1,694,644). These figures represent an increase of £590,460 (6,24 per cent) and £ 187,660( 11.07 per cent) respectively, compared with 1940-41. On a percentage basis the net return on capital was 2.90 per cent compared with 2.64 per cent in the preceding twelve months and 1.96 per cent in 1940. The net railway operating earnings were £1,481,288 (1940-41, £1,287,400), the percentage of railway operating expenses to earnings being 85.73 in 1941-42 and 86,72 in the previous year. For the current year it is anticipated that the revenue will reach £12,100,000 and the expenditure £10,352,000. Both earnings and expenditure were affected by the abnormal conditions arising from the war. Revenue benefited by the diversion to rail of road traffic, the shipping difficulties and as the outcome of the Government’s policy of co-ordinating rail and road transport and, was further augmented by the carriage of military personnel and large quantities of war supplies and equipment. Expenditure was higher by reason of an increase in maintenance and transportation expenses. The manufacturing facilities of the railways workshops are being used increasingly for the production of war materials and a wide diversity of munitions, ranging from universal carriers, beaverettes, Bren-gun carriers, trench mortars, and casings for bombs to such smaller items as campkitchen utensils, which are being produced on an ever-increasing scale. During the twelve months under review no less than 2176 special trains were made available for the conveyance of about 1,250,000 members of the armed forces.