The sun., 1907-09-15
ri.

Let us look next at the Australian con-
tinent. where Of the existing lines ofrailway
which are availabls for general traf.ic
there are now only 0tO miles not ow ned by
the State. Here again the experiment
has by no means proved an unqua lifted
success The interference of politicians
has been checked rather than abolished
by the appointment OF railway commission
ers. matters having been made unpleassn M
IL not intolerable for those members of
the commissions who resisted too strenu-
ously the proposals. Of certain political mana
gers. The danger which may arise from
the fact Of large body Of workers being
In direct employment Of the State was
exemphfed in 1908 by the strike OF engine
drivers and fremen which took place In
Melbourne. At that time the question
became one as TO whether the railway
men were TO be the masters Of the country
or its servants.
When one begins to inquire as to the
financial results Of Aust ralian RAILWAYS
one 10 warned not TO regard them from the
same standpoints from which State rail
ways have to be studied In Europe. The
notion that State railways should be the
milch COW Of the national or colonial treas
ury Ia not accepted in Australia, which
holds. on the contrary, that railways should
meet public requirements without refer
ence to the question whether they weld
a net income. II Ia true that Of late yeprs
some Of the State lines in Australia have
claimed to be making small profits instead
Of annual deficits to which they had pre-
viously confessed, but In estimating the
financial results Of their working We should
bear in mind that many loans were fioatcd
below par. so that the nominal Ia not tho
actual rate Of interest. The true method
OF computing net returns is to take the
rnte Of interest payable on the actual sum
obtained by the State for its outstanding
loans. On this basis Of computation the
only State which made an advanta geous
exhibit In 1904 was Western Australia.
where the lines returned a profit OF about
ono per cent. after defraying interest
charges on the capital cost.
The State railways OF New Zealand have
also been put forward as examples worthy
Of emulation. but Mr.. Pratt fails TO see
how conditions In New Zealand can be
compared with those Of any country in
the Old World. The average cost of the
New Zealand railways was less than 60 600
q mile, as against about E4s.0oO a mile
in England and fi5.Oo0 In Ireland. Assum-
ing for tho sake OF argument that rates
and fares In New Zealand are lower than
they are In Britain. as they might well he
in the circumstances. We still have to re-
member that owing 10 the light character
Of the permanent way 1t is impossible
to obtain in the former country any approac h
to such rates Of speed as are common in
England and Scotland. Moreover, the
second class carriages In New Zealand arc
not equal to the third class carriages on
the main lines Of the British railways.
The truth Is that in New Zealand as in
Australia tho State railways arc regarded
more as an adjunct to the settlement and
development Of the country than as q rev.
enue earning machine
What are the financial results Of the
railways worked on such principlesp II
u admitted that for many years the Nav
Zealand railways were run at Q loss. A
New Zealand public man has estimated that