GUTTING FREIGHTS.

Auckland Star, Volume LXI, Issue 255, 28 October 1930, Page 8

GUTTING FREIGHTS.

RAILWAYS' NEW ACTIVITY. COMPLAINT IN TARANAKI. EFFECT ON SHIPPING COMPANY. (By Telegraph.—Own Correspondent.) • N.EW PLYMOUTH, Monday. New Plymouth business men are to diswith the Harbour Board, at a special meeting shortly, the new policy of the Railway Department, in undercutting shipping freights. A prominent merchant stated that the department had reduced the carriage rate on sugar, from Auckland to New Plymouth by more than one-half, the reduction being from 86/5 to 42/ a ton. Hearing that the Northern Steamship Company, which runs the only regular coastal shipping service from Auckland to New Plymouth, had also offered to reduce the freight to 42/ a ton, the Department, he said, later offei'ed. to further reduce its rate to 38/, and declared openly that "it was determined to have the Tara'naki sugar trade." If this policy was carried to its logical conclusion, said tlie merchant, it must inevitably kill private transport. The merchant questioned whether the railways could make a profit at sucli low rates. Ho said that about 3000 tons of sugar were brought to New Plymouth each year by the Northern Company's vessel Hauturu. If the company lost the sugar trade it lost with it about £4000 a year, and .with such a drastic reduction in income it seemed highly improbable that the company would continue the service. The Railway Department, therefore, would have a monopoly of the trade from Auckland to New Plymouth and would be able to charge what freight rate it wished on all goods. If this trade was lost to the port the annual decrease in harbour "revenue would be £850. The reduction in freight costs of sugar would make no material difference to the consumer and any slight advantage would be far out-weighed by the loss of the steamer connection with Auckland. If the Railway Department Avas carrying sugar at a loss—and it seemed that it must be—then it was using the taxpayers' money. It was employing the Consolidated Fund to kill private enterprise. .'...' \- ... .'..-. i