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The Board'S Message.
Looking Ahead.

In this, the last issue of our Magazine prior to the close of the current financial year, the Board, taking a long view and examining the trend of traffic over a number of years together with the likelihood of transport developments, feels justified in sounding a note of confidence regarding the prospects of Railway operations within the Dominion.

Just as the wartime period of high prices and wages forced industrialists to adopt labour aiding appliances and mass production, so the stimulus of motor competition the world over has encouraged a revision of railway methods and the introduction of new ways for dealing with present railway traffic, besides justifying experiment in mechanical and managerial improvements likely to attract new kinds of business to the rail. Thus, in fact, have railways been induced by the healthy impulse of competitive pressure to comply with the economic law of substitution.

Some commentators have concluded that just as the railways displaced the stage coach for the conveyance of passengers, so the motor would eliminate the locomotive as an effective transportation agent. This view, however, mistakenly assumes that the Railway, like the horse of the stage coach days, has reached its maximum efficiency. But, whereas a horse can travel only at a certain speed and pull a certain load, while its capacity in regard to both speed and tonnage cannot—after a certain point has been reached—be increased the steam engine is constantly accomplishing more. Thus railways have found an effective reply to the recently developed competition, by introducing more powerful, speedier, and more economical locomotives, and devising better operating methods and appliances.

It is this inherent capacity for adaptation to circumstances which explains the renewed public confidence in railways recently reported from all the principal railroading countries, and the disposition now shown by investors to encourage further capital expenditure upon existing railroad systems.

To some extent any increased traffic obtained from a fuller utilisation of present facilities costs less than the average rate per unit of transport and in all projected developments the Board applies a test as to whether the proposed changes are such as promise the handling of an increased passenger traffic or goods tonnage at an equal or lower unit cost in time, fuel and material.

It must be borne in mind that many improvements, although desirable in themselves, are barely warranted by existing traffic—the cost of their adoption adding more to the interest charges to be met than the saving which lower operating costs makes immediately possible. Yet, in view of the general tendency—notably in goods traffic and in long distance passenger travelling—for business to increase, such changes are frequently warranted if conditions likely to exist some years hence are taken into consideration. A hand-to-mouth policy in regard to expenditure on developmental work, whilst decidedly tempting if the sole method of comparison is to be between the current year and the immediately preceding one, cannot achieve the best final results. Expenditure on Workshops reorganisation, grade easements, remodelling shunting yards, signalling developments, improved station accommodation and facilites, etc., cannot be immediately fully remunerative. Time is required to build up the traffic to a point where maximum use may be extracted from the modernised facilities provided.

These are points to which at the present stage the Board feels justified in drawing the attention of public and staff alike.

Pursuing the policy which appeals to the Board as most likely to assist in fostering passenger traffic to replace that lost through suburban road competition, further efforts are being made to create new traffic by the institution of excursions to suitable localities. As an example of what is being done it may be mentioned that specially low rates will be provided this winter to Mt. Cook and Franz Josef Glacier, two popular resorts which are at their best during winter. Special advertising on the subject is being arranged. The Board feels sure that if members of the Service will supplement these and other advertising efforts to broadcast the facts regarding excursions of the kind, a traffic may be built up which will greatly aid the present effort to “keep the rolling-stock moving” and assist to obtain more substantial returns during the winter months than in the past has been customary. By means such as these may our existing facilities be more fully utilised and the financial position of the Department improved.