1953-1954 — Page 12

21. Operating Account. Despite adverse trading condi- tions, operating revenue exceeded expenditure by approximately $1,440,000 as compared with $1,360,000 last year. Although the total revenue earned was less by $111,000, expenditure was pruned and reduced to $3,962,000 as compared with $4,153,000 in 1952. Goods traffic fell by $538,000 but to compensate for this loss passenger earnings rose by $561,000, which, with addi- tional coaching stock, could have been improved on. The most significant cut in operating expenditure came under locomotive running expenses which were reduced by $288,000. The saving was achieved through a reduction in the cost of fuel oil which made it more economical to burn oil rather than coal.

22. Profit and Loss Account. Interest on Government loans plus a further provision of $500,000 for Depreciation Reserves makes a total debit of $1,816,000 against this account. On the credit side the nett operating revenue plus the proceeds from the sale of surplus stores and scrap totals $1,484,000 and therefore the nett loss recorded for the year is $332,000. This amount has been transferred as a debit to the Surplus Appro- priation Account which now records a credit balance of $2,971,000.

MECHANICAL WORKSHOPS

23. General. All locomotives, carriages, wagons, rail and motor cars and other plant were maintained in an efficient state during the year under review.

In order to get equal wear on tyre flanges, all mainline locomotives were turned round once a month and carriages once every six months.

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24. Locomotives. The safety of the boilers of the 2-8-0 Austerity locomotives, the steel water space stays of which have not been changed to " copper stays have given cause for concern as these stays break quite often, partly due to corrosion and partly due to bending stress caused by the expansion of the firebox plate under heat. As a precautionary measure, all such boilers were given a hydrostatic pressure test every six months instead of the usual yearly period.

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