The place of the railway in the suburban transport of Auckland City

Abstract

The railways of New Zealand are under State ownership and control and hence they constitute a problem rather different from that of private enterprise. Though opinions may differ, they are, in effect, a public service utility. In the past they have been built, not mainly for profit, but rather to provide a necessary service and so, therefore, many lines do not now "pay" from a strictly accountancy viewpoint. The railway business is one which responds strongly to the law of increasing returns. It costs little more to run a full train than an empty one; nor is this the only phase of railway working where this law applies. In order to procure the best results, the service provided should be as fully utilised as possible, and to obtain this latter end, such service must be adequate and attractive. In other words, the goods offered for sale must be readily acceptable to the buyer. The old "take it or leave it" attitude is no longer sufficient. Competition has played an undoubted part in the introduction of more businesslike methods; much still remains to be done.