Revenue and Upkeep.

In explaining the results of last year's working of the railways, Mr. Wellsted mentioned that the net earnings were equal to 4.35 per cent, of the capital invested in lines open for traffic. It was interesting to note that last year every first-class seat earned £45, and every second-class seat earned £33/6/-. He said this provided an answer to the argument sometimes heard that the difference in fares between the two classes should be abolished; if that were done the fare would have to be higher than the present second-class fare to bring the revenue up to the same level.

Apart from interest on the capital invested in providing and forming the railway line, it costs the Department an average of £369 a year to maintain each mile of line, as compared with the relatively small annual license fee paid by road vehicles. Interest charges represented a deduction of 4/6;.27d. from every 20 shillings earned.