"A SCANDAL”

Dominion, Volume 21, Issue 194, 18 May 1928, Page 3

"A SCANDAL”

UNFAIR COMPETITION

ALLEGED * J ’ Dominion Special Service. . Auckland, May 17. Unfair competition on the part of the Government Railways, made possible by the general taxpayer meeting the losses on certain cut rates, was alleged by Air. Charles Rhodes, chairman of directors of the Northern Steamship Company,. Ltd., at the annual meeting. It was fully recognised by the company, said Mr. Rhodes, that when rail connections, and what was even more important motor services, became more fully established fewer persons would travel by steamers, and the directors were alive to the possibility that some day the company might have very few passenger services. That, however, would not be an unmixed evil for them. They would be relieved of the costly service in maintaining passenger accommodation and stewards, which was only worth while when large numbers travelled. “These facts,” he said, “are mentioned to give shareholders some assurance that their capital,is not invested in-a decaying . business.. Just at present, however, we are faced by decidedly unfair competition on the part of the Government Railways. Rates for transport by rail to coastal places have been reduced in some cases to as much as one-third or onequarter of what inland towns pay for the same distance. The taxpayers of New Zealand are thus forced to pay railway losses incurred by this absurd competition, designed apparently to injure the very trade and public service a Government might be expected to uphold. Economic and cheap transport .is a service to the general public, while transport below cost for a few at the expense of the general taxpayer is a scandal.