BRANCH RAILWAYS.

Manawatu Standard, Volume LII, Issue 50, 29 January 1932, Page 6

BRANCH RAILWAYS.

THE UNPROFITABLE LINES. ANOTHER SHORT TRIAL.

(By Telegraph—Special to Standard.) WELLINGTON, Jan. 29. The Railway Board at a recent meeting decided to postpone its final decision on the fate of a number of -branch railways which have been wording at a serious loss. The board is anxious to give the people of the districts concerned a full opportunity of demonstrating their belief in the value of railway communication, and they are to have until March 31 to show that they can provide sufficient patronage to warrant keeping the lines open for traffic. All the districts concerned have been canvassed -by representatives of the department, and tne issue placed clearly before the residents. The board is not insistent on full cost being paid. Interest on the capital investment has to be met whether the lines are working or not, but it is possible to avoid further losses if the present revenue as has been the case with several of. the branches, is not even sufficient to pay the bare operating costs. If interest charges are included, the loss on branch lines and isolated sections for the last complete year was £78CT,299 j but applying the test under which the lines are now being watched, that of operative losses, the deficiency in the same period was £203,604, while the isolated sections— Kaihu. Gisborne, Nelson and Picton—showed a working loss totalling £39,131. Since the close of the year further working economics have been effected, so that by a little additional effort to bring traffic to the railway there is a prospect.of some of these lines remaining in operation.