A Better Outlook.

In the financial year which ended on the 31st March last, the most pleasing feature in the net revenue position was the steady improvement shown in the closing months. With 32 weeks of the year gone, the improvement, compared with the corresponding term in the previous year, was only £32,000, but in the remaining 20 weeks, this figure was brought up to £149,000. Thus the net revenue for the year has risen from £688,728 to £837,973.

The Department's calculations regarding economies made necessary through reduced business have come very close to the figures estimated, but the decline in traffic has been more serious than was anticipated. The outlook, however, is now better, and I anticipate that the improvement shown in the net financial position during recent months will be maintained, especially if the relative prices of New Zealand's primary products improve in the near future (as appears likely), and remembering always that very close relationship which exists between the prices obtained for primary products and the amount of business which the Department is called upon to do.

Back To The Rail.

Because of an increasing realisation amongst the public that duplicated transport services do not pay the country, there is now arising a distinct “back to the rail” movement, particularly in those districts served by branch lines which are not returning actual working expenses to the railways. The indications are that the public in the areas now served by these unprofitable branch lines, are realising more fully that there is a limit to the capacity of the taxpayers of the Dominion as a whole to subsidise such unprofitable lines where the national cost of the services is out of all proportion to the traffic offering. This applies more especially in those cases where the more profitable classes of our traffic are being eroded by opposition services. It is in the branch line districts that the “social service” value of the railways is most strongly felt—now that the possibility of losing their line altogether is before the minds of the residents. In many districts there is a strong drive to have everything sent by rail, and the cost to the community of keeping competitive services going is being computed,—with results which show an expense account clearly beyond what the country can actually afford.

Our endeavour always is to give a service commensurate with the needs,—one which will make the business offering for the trains run, pay for their operation. To the extent that our volume of traffic is increased, to that same extent can we give improved and increased service.

General Manager.