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The New Zealand Railways Magazine, Volume 5, Issue 7 (December 1, 1930)

[section]

The accumulating evidence of general decline in prices the world over and the lessened trade and partial slump conditions in many formerly thriving industries, have had an inevitable reaction on transport business to which the railways have been no exception. We have had to shorten sail to meet the high wind of adversity and weather the storm. This has entailed readjustments in every branch of the Service and has demanded, from all, patience and fortitude in the difficult task of reducing expenditure in conformity with the demands of a lessened and less resilient traffic. This task is now on the way to accomplishment, the latest figures indicating that our total expenditure during the last four-weekly period has been decreased by no less than £80,000.

Unfortunately, there has also been a decrease in our revenue, though for the period mentioned this decrease was £20,000 less than the decrease in expenditure. From a purely operating point of view this is undoubtedly a very creditable performance, but from the point of view of general financial results it is disappointing. An examination of the incidence of the decrease in revenue shows that it can only be ascribed to the prevailing depression which has resulted in a shrinkage of trade. For the results of such conditions we, as a transport concern, can no more be held responsible than, say, the Customs Department can be held responsible for a shrinkage in customs revenue due to the same cause. Nevertheless, it behoves all concerned to be active to reduce to a minimum, the effects on our business of such circumstances as I have mentioned.