RAILWAY CHARGES

Dominion, Volume 20, Issue 17, 15 October 1926, Page 5

RAILWAY CHARGES

DAIRY COMPANIES PROTEST THREATEN TO PATRONISE MOTOR LORRIES Dominion Special. Palmerston North, October It. Strong objection to' the lower railway charges over long distances, for the transport of butter and cheese was made at a special meeting to-day of the Manawatu and West Coast Dairy Companies Association, on the ground that the produce which availed of these facilities was not so much exported as placed in unwelcome competition with that of other districts. A resolution was passed that in the opinion of the meeting the long distance freights should apply only to produce for expert, the chairman remarking that the position was not going to remain where it was, as the dairy companies were, going to go further in the matter until they secured reasonable redress. Mr. S. A. Broadbelt, who presided, explained that the meeting had been called as the result of a resolution passed at a recent meeting, and to discuss what future action to take in the matter. The resolution was one of strong protest by the association against the lower railage charges on long distances for the carriage of butter and cheese, which arrangements were deemed to have been made to the advantage of one dairy company, and which were a disadvantage to nil dairy companies in the Wellington province. As representatives of the dairy industry, they thought it was an unfair consideration to be granted dairy companies so far away from the seat of delivery. They recognised that the railways must be made to pay, “but thought it unjust that they should be made to do so in the way mentioned.’ “In regard to the. Wellington province, there is a large amount of produce which ' could be taken off the railways,” he said, “but the companies have remained loyal to the Department, although receiving few concessions. We think that the reduction of £1 a ton should have been made for companies further north.” He went on to say that probably the amount of produce shipped from the 310 miles south would not be a great amount. It ■ was possible for companies to-day to save from 3s. to 7s. a ton on carriage of produce on the road. Companies did not wish to turn to motor transport, but jf the Railway Department was.: going to make concessions to some large companics and not to those within the immediate vicinity; there was a possibility of produce being put on the road. The dairv companies generally should get a fairer classification than that which existed at the present time.

Mr. P. Hansen said his own company, which forwarded 500 tons of produce had lovallv supported the railways’ for 28 'years, but if these concessions were going to be allowed the speaker’s company would have to look to road transport. Endeavours had been made from time to time to secure concessions on the railway, but thev had been unsuccessful. “On the face of it, it would appear that the concessions were made solely to enable big companies to come and hit us,” remarked Mr. C. G. C. Dermer. , Mr. J. A. Nash, M.P., agreed, and said that the position was scandalous. If the concessions could be allowed in one quarter then the farmers of this district had a right to ask for concessions to the same ratio. He hoped that the meeting would come to a decision in the direction of a conference on the subject, and a deputation to the Minister of Railways for the purpose of securing redress. “It has been verv evident that there has been a tendency on the part of tlie

Railway Department to place charges on goods according to what it was felt they could bear, instead of on a tonnage basis,” said Mr. A. E. Ransom, M.P. for Dannevirke. “The system does not seem to be sound, and as the welfare of this country depends so vitally on the products of the soil, they should be given first consideration.” He gave an assurance that he would associate himself with any decision at which the meeting might arrive. Mr. J. Linklater, M.P., also offered his assistance, stating that he wished the farmers to have a fair deal. He said that the Railway Department was to be thanked for its assistance in the past. Mr. H. E. Pacey disagreed, and said that in addition ' to the increased charges on the dairy industry because of die necessity to make the railways pay, the incongruities contained in the revised tariff made the position worse. Mr. Nash said that his company, upon discovering that its manager had arranged for the motor transport of the produce of the factory, had immediately cancelled the arrangements out of a sense of loyalty to the railways. However, if no reform was effected in the existing conditions in regard to railway charges, his company would call for tenders straight out for twelve months or two years for the conveyance of its produce. In this connection he thought that to force the hand of the Department the dairy companies should join together and call for tenders in the same way. Mr. W. Marshall, commercial representative of the Railway Department, explained the reasons for the alteration of the tariff, and said the rates were so based as to give a fair return for services performed. The rates applied throughout ‘ New Zealand, and were open to any dairy company. It was very difficult to fix a rate suitable to all when there was such competition being accorded the railways by the motor traffic.

It was then resolved, on the motion of Mr. Nash, seconded by Mr. Hansen, “That in the opinion of this mfeeting the long-distance freights for dairy produce should apply only to that for export, and that Mr. Marshall be requested to bring this matter before the Railway Department and send a reply to this association at the earliest possible moment.”