MAKING THE RAILWAYS PAY.

Wanganui Chronicle, Volume L, Issue 12392, 13 December 1909, Page 5

MAKING THE RAILWAYS PAY.

INCREASE .OF REVENUE.

A HOPEFUL MINISTER.

In speaking oil the railway finances late on Friday night, the Minister for Railways (Hon. J. A. Millar) said that the policy of the Government was to make the railways pay their own rate of interest. At this time of the year, with eight months of the financial year gone, the railways he said,' were in a position better to the extent of £138.000 than they were at the same period of the previous twelve months. The policy pursued had been one of economy. The Government intended, as already announced, to increase the long-distance fares, and, altogether, would .be in a position to reduce expenses by 4 percent. So far as he was concerned, he said criticism of the railway administration would have to be based on the present financial year's working, he having taken office only two months before the date to which the last railways statement was made up. Taking the loss last year at £220,000, he thought that with* thy extra £100,000 which the increase in long-distance fares was expected to bring in for revenue, and with a net increase of £138,000 in the revenue for the eight months of the year, he could see a return of 3f per cent, on the capital invested. He believed that next year the working expenses of our railways would not be ever 69 per cent, of the revenue—that was, if he was able to bring things out close to the estimated revenue and expenditure. If we could work our railways on a basis of 68£ per cent., the ratio of working expenses to revenue, they would earn the 3| per cent, on the cnnital cost, for which he was striving.