“We have the eight-hour day and we pay higher wages than do the European railways. Our men are better treated than those of any railroad I know. They are under the civil service and no man can be removed except for cause.”
“How about the profits? Do your railroads pay?” I asked.
“Yes, we usually manage to show a small surplus after meeting interest charges on the capital invested. But our revenue fluctuates from year to year, according to whether there is a good or a poor season for farming and sheep raising. In unfavourable seasons the carriage of fodder and the transfer of stock to better pastures at reduced rates mean smaller earnings and larger operating expenses. Extensions into thinly settled districts also cut down the net income, since several of these lines earn little more than the cost of maintaining them. Nevertheless, we are pushing out roads into the good territory, knowing that settlement will soon follow and that the new lines will ultimately become profitable.”
Another prominent official with whom I talked on this subject is a Queensland railroad man. Said he:
“As far as I can see, the government control of our railways has been an excellent thing for the state. It has given us profitable railways which could never have been built by private parties. Take our Rockhampton line, for instance. It begins at the coast and runs four hundred miles westward through a thinly populated country. When it was first completed there were places on that line where one could ride one hundred miles without seeing a town. But the railroad made the land on both sides of the track available for sheep raising. It is now taken up for pastures, and there are hundreds of flocks feeding upon it. Towns have sprung up along the line, and in time the road will pay well.”
“How about the profits on the Queensland roads?” said I.
“If there are any, they are never large,” was the reply, “you see we don’t want a big profit, for it is our principle to keep the rates for freight and passengers as low as we can. As the lines make more money we shall lower the rates and increase wages.”
“Are you satisfied with the narrow gauge?” I asked.
“Yes. It pays us better than the broad gauge. Our roads cost only about half as much per mile to build as those of New South Wales and they furnish all the transportation required.”
“Where do you get your equipment?” I asked.